Aeva Technologies, Inc.

Aeva Technologies, Inc. operates in the sensing and perception industry, focusing on Frequency Modulated Continuous Wave (FMCW) 4D LiDAR-on-chip technology and proprietary software applications. The company aims to enable the adoption of LiDAR across various applications, including automated driving, manufacturing automation, smart infrastructure, robotics, and consumer devices. Aeva's core technology differentiates from legacy 3D LiDAR (Time-of-Flight or ToF) by measuring instant velocity for every pixel in addition to depth, reflectivity, and inertial motion, offering immunity from interference and extended range up to 500 meters. The company's solutions are generally expected to be incorporated into final products such as automobiles, industrial equipment, consumer devices, and security systems, following rigorous, multi-year product design and engineering validation processes.

Aeva's competitive positioning is rooted in its innovative product design, substantial real-world collected road data, and intellectual property portfolio, which includes approximately 296 issued patents and 127 pending patent applications worldwide as of December 31, 2025 ¹. The company believes its proprietary FMCW design, integrated silicon photonics technology, custom digital processing application-specific integrated circuit (ASIC), and 4D Perception software provide advantages over ToF-based and other FMCW LiDAR solutions. While the filing acknowledges competition from established players and new entrants developing both LiDAR and alternative technologies, it does not name specific competitors or disclose market share figures.

The core business model involves generating revenue primarily through the sale of perception solutions (sensing systems) and non-recurring engineering (NRE) services. These sales are typically for prototype units used in customers' research, development, evaluation, pilot, or testing programs. Revenue from product sales is recognized at a point in time, generally upon shipment or delivery, while NRE services revenue is recognized over time as services are performed. The company's customer base spans automotive and industrial markets, with a significant portion of revenue derived from development programs. In fiscal year 2025, Aeva's top three customers accounted for 64% of revenue ², and as of December 31, 2025, three customers accounted for 72% of accounts receivable ³.

Aeva offers several product lines tailored for different market applications. For the automotive sector, Aeva Atlas™ is a high-performance FMCW 4D LiDAR designed for mass production and automotive-grade requirements, powered by CoreVision™ LiDAR-on-chip module and the Aeva X1™ system-on-chip (SoC) LiDAR processor. Aeva Atlas™ Ultra is a newer 4D LiDAR sensor for SAE Level 3 and 4 automated driving systems, offering up to three times the resolution of the standard Atlas, configurable fields of view up to 150 degrees, and a 35% slimmer design for easier integration. In industrial automation, the Aeva Eve™ 1 line, starting with Eve 1D, provides high-precision laser displacement sensing for non-contact, micrometer-level measurements in factory and process automation. Aeva Eve™ 1V is a motion sensor for industrial speed, length, and position measurement, designed to replace traditional encoders. For smart infrastructure, Aeva Atlas™ Orion is a 4D LiDAR sensor meeting NEMA-TS2 standards, offering durable, long-range perception for outdoor environments, capable of detecting vehicles up to 500 meters and vulnerable road users up to 200 meters.

For the fiscal year ended December 31, 2025, Aeva reported total revenue of $18.079 million ⁴, an increase from $9.065 million ⁵ in the prior year. The cost of revenue was $18.739 million ⁶, resulting in a gross loss of $0.660 million ⁷. Operating expenses totaled $126.937 million ⁸, leading to an operating loss of $127.597 million ⁹. The net loss for the period was $145.428 million ¹⁰, translating to a diluted EPS of $(2.55) ¹¹. As of December 31, 2025, the company had cash and cash equivalents of $72.291 million ¹² and marketable securities of $49.608 million ¹³, totaling $121.899 million ¹⁴ in cash, cash equivalents, and marketable securities. Total liabilities were $166.486 million ¹⁵, including convertible notes of $96.693 million ¹⁶ and warrant liabilities of $29.711 million ¹⁷. The company's accumulated deficit stood at $757.289 million ¹⁸.

Comparing fiscal year 2025 to 2024, total revenue increased by $9.014 million ¹⁹, or 99% ²⁰. Cost of revenue increased by $5.884 million ²¹, or 46% ²². The gross loss improved by $3.130 million ²³, or 83% ²⁴, from $(3.790) million ²⁵ in 2024 to $(0.660) million ²⁶ in 2025. Research and development expenses decreased by $17.243 million ²⁷, or 17% ²⁸, to $85.424 million ²⁹. General and administrative expenses increased by $1.569 million ³⁰, or 5% ³¹, to $34.828 million ³². Selling and marketing expenses decreased by $0.471 million ³³, or 7% ³⁴, to $6.685 million ³⁵. Interest income decreased by $4.974 million ³⁶, or 64% ³⁷, to $2.738 million ³⁸. The change in fair value of warrant liability resulted in a negative impact of $(19.967) million ³⁹ in 2025 compared to 2024, reaching $(21.453) million ⁴⁰. Net loss improved by $6.833 million ⁴¹, or 4% ⁴², from $(152.261) million ⁴³ in 2024 to $(145.428) million ⁴⁴ in 2025. North America's revenue contribution increased from 86% ⁴⁵ in 2024 to 74% ⁴⁶ in 2025, while Europe's share grew from 5% ⁴⁷ to 21% ⁴⁸. Revenue recognized at a point in time decreased from 63% ⁴⁹ to 61% ⁵⁰, and revenue recognized over time increased from 37% ⁵¹ to 39% ⁵².

During the reported period, Aeva achieved a significant operational development in December 2025, when it was selected by a top European passenger original equipment manufacturer as its exclusive LiDAR supplier for its global series-production vehicle platform to enable Level 3 automated driving. In May 2025, the company entered into a strategic collaboration with LG Innotek Co., Ltd. (LGIT), which included a Share Subscription Agreement for the sale of 3,509,719 ⁵³ shares of common stock for aggregate gross proceeds of approximately $32.5 million ⁵⁴, closing on August 20, 2025. Concurrently, a Joint Development Agreement (JDA) was established with LGIT to provide non-recurring engineering services for a fixed consideration of $7.5 million ⁵⁵. In November 2025, Aeva issued $100.0 million ⁵⁶ aggregate principal amount of 4.375% Convertible Senior Notes due 2032 ⁵⁷ in a private placement, with net proceeds of $96.7 million ⁵⁸. The company also settled the Delaware Stockholder Litigation for a total cost of $14.0 million ⁵⁹, recovering $2.5 million ⁶⁰ from an insurance carrier.

Aeva's future performance and success are substantially dependent on its ability to capitalize on opportunities, which are subject to significant risks and challenges. The company anticipates that its pricing and margins will vary by market and application due to market-specific product and commercial requirements, supply and demand dynamics, and product lifecycles. Future performance hinges on achieving economies of scale and efficiently producing cost-effective perception solutions that are competitively priced. Delays in current and future customers' programs could prevent the company from achieving revenue targets and profitability within anticipated timeframes.

A major growth area for Aeva is the automotive industry, particularly the transition to Level 3, Level 4, and Level 5 autonomous vehicles. The company believes its 4D LiDAR solution, with its long range and fast detection capability, is well-positioned for autonomous trucking, which is expected to grow, especially in North America. For passenger cars, Aeva expects the shift to higher levels of autonomy to significantly drive demand for LiDAR technology. A key strategic initiative is the selection in December 2025 by a top European passenger original equipment manufacturer as its exclusive LiDAR supplier for a global series-production vehicle platform enabling Level 3 automated driving. This design win, while not yet a definitive volume production agreement, represents a significant step towards commercialization in the automotive sector.

Another growth vector is the expansion into new markets beyond automotive, including industrial automation, consumer device applications, robotics, and security markets. Aeva's 4D LiDAR technology is expected to offer robots, industrial metrology machines, and other automation equipment enhanced perception capabilities. The Aeva Eve™ 1 line, including Eve 1D and Eve 1V, is specifically designed for high-volume industrial automation, enabling non-contact, micrometer-level measurements and highly accurate motion sensing. The Atlas™ Orion sensor is targeted at smart infrastructure, intelligent transportation systems, and security applications, providing durable, long-range perception for outdoor environments. The strategic collaboration with LG Innotek Co., Ltd. (LGIT), initiated in May 2025, aims to bring Aeva's 4D LiDAR into new industrial and consumer markets through a joint development agreement.

Operationally, Aeva expects to continue incurring operating losses due to ongoing investments in its business, particularly in product development. The company is in the initial stages of transitioning to an outsourced manufacturing business model, relying exclusively on third-party manufacturers for both manufacturing and assembly of its products. This transition is expected to bring benefits but also carries near-term risks of revenue loss, increased costs, and potential harm to customer relationships. The company's research and development efforts are focused on enhancing existing products and developing new ones, with R&D activities primarily located in the United States and India.

Regarding capital allocation, Aeva had $121.9 million ⁶¹ in cash, cash equivalents, and marketable securities as of December 31, 2025. The company also has an available equity facility of up to $125.0 million ⁶² through November 8, 2026, under a Standby Equity Purchase Agreement with Sylebra, which it intends to draw upon if needed. Each draw under this facility can range from $25.0 million ⁶³ to $50.0 million ⁶⁴ in preferred stock, subject to certain conditions, including achieving a minimum of one new passenger auto-OEM or commercial OEM program award with at least a 50,000 unit volume ⁶⁵ and the common stock trading below $38 ⁶⁶. All conditions to request an Advance under the Facility Agreement were met as of December 31, 2025. In November 2025, the company issued $100.0 million ⁶⁷ aggregate principal amount of 4.375% Convertible Senior Notes due 2032 ⁶⁸, with net proceeds of $96.7 million ⁶⁹. The company currently intends to make interest payments on these notes in shares of its common stock. Capital expenditures for property, plant, and equipment were $4.609 million ⁷⁰ for the year ended December 31, 2025.

Management explicitly flagged several structural headwinds and execution risks. The period from a design win to implementation is long, potentially spanning seven or more years in the automotive market, leading to significant resource investment before revenue realization and risks of cancellation or postponement. Market adoption of LiDAR, including Aeva's 4D LiDAR technology, is uncertain, and other sensing modalities could gain acceptance. The market for LiDAR outside of automotive applications is relatively new and unproven. The company relies on a small number of customers, with the top three accounting for 64% ⁷¹ of revenue in 2025, posing a risk if these relationships are terminated or if customers face financial difficulties. Continued pricing pressures and cost reduction initiatives from automotive OEMs may result in lower than anticipated margins. The company expects to incur substantial R&D costs that may not result in revenue.

Geographic, regulatory, and macro factors identified as constraints include operational, financial, and regulatory risks associated with international sales and manufacturing operations outside the United States, such as exchange rate fluctuations, political instability, trade sanctions, tariffs, and varying regulatory requirements. The company is subject to stringent governmental export and import control laws and regulations, and changes in trade policy could adversely affect its business. Automotive safety and autonomous driving markets are subject to evolving government regulations, which could render technologies obsolete or impose new compliance costs. The company is also subject to environmental laws and regulations, and the Electronic Product Radiation Control Provisions of the Federal Food, Drug, and Cosmetic Act enforced by the FDA, which could impose substantial costs or limit product distribution if not complied with.

Aeva faces material risks including its early stage of development, a history of net losses, and dependence on the successful commercialization of customer development programs, which may not occur or may be significantly delayed, impacting profitability. The company's limited operating history makes future prospects difficult to evaluate, and strategic growth initiatives may prove more costly than anticipated without sufficient offsetting revenue. Market adoption of LiDAR, particularly Aeva's 4D LiDAR technology, is uncertain, with competition from alternative sensing technologies and internal development programs by customers. Long development cycles in the automotive industry (up to seven or more years) mean substantial resource investment before revenue realization, with risks of contract cancellation or postponement. Supply chain management for manufacturing at scale is unproven, and reliance on limited or single-source suppliers for key components exposes the company to shortages, long lead times, and price fluctuations, exacerbated by geopolitical conflicts, trade sanctions, and inflation. Product complexity could lead to undetected defects, errors, or reliability issues, resulting in delays, increased costs, product liability claims, and reputational damage. Pricing pressures from automotive OEMs could lead to lower margins. The company expects substantial R&D costs that may not generate revenue. Aeva's ability to fund operating costs and future R&D is dependent on its current cash balance of $121.9 million ⁷² and an available equity facility of up to $125.0 million ⁷³, but there is no assurance this will be sufficient. Fluctuations in quarterly operating results are expected due to the nature of prototype sales and NRE services. The transition to an outsourced manufacturing model carries risks of reduced control over quality, costs, supply, and timing. International sales and manufacturing expose the company to operational, financial, and regulatory risks, including exchange rate fluctuations, political instability, and trade barriers. The company is highly dependent on its two founders, Soroush Salehian Dardashti and Mina Rezk, and the loss of their services could severely disrupt operations. Product liability or warranty claims, especially in AD and ADAS applications, could result in significant direct or indirect costs. Inability to accurately forecast inventory needs could lead to excess inventory write-downs or product shortages. Declining average selling prices for products could negatively affect revenue and margins if cost reductions are not achieved. Adverse conditions in the automotive industry or global economy could impact demand. Reliance on a small number of customers (top three accounted for 64% ⁷⁴ of 2025 revenue) poses a significant risk if these relationships are lost or customers face financial distress (three customers accounted for 72% ⁷⁵ of accounts receivable as of December 31, 2025). Failure to anticipate changing customer preferences or adapt to technological changes could result in competitive disadvantage. Cybersecurity risks to operational systems, infrastructure, and data could lead to intellectual property loss, data breaches, and operational disruptions. The company has $607.4 million ⁷⁶ of U.S. federal and $356.1 million ⁷⁷ of state net operating loss carryforwards, but their utilization may be limited by Section 382 and 383 of the Internal Revenue Code. Strategic partnerships may not yield anticipated benefits. Compliance with governmental export and import control laws, trade policies, and evolving automotive safety and autonomous driving regulations could adversely affect the business. Legal and regulatory proceedings, including intellectual property infringement claims, could result in substantial costs and diversion of management resources. The company's convertible notes of $100.0 million ⁷⁸ aggregate principal amount may decrease business flexibility and access to capital, and interest payments in common stock could dilute existing stockholders.

Management's overall tone emphasizes the company's vision to bring perception to broad applications through its proprietary FMCW 4D LiDAR-on-chip technology and software, highlighting its differentiation from legacy 3D LiDAR by offering instant velocity measurements, long-range performance up to 500 meters, and immunity from interference. They acknowledge the company's early stage, history of losses, and the significant investments required for research and development and commercialization. Management believes that existing liquidity, including cash and cash equivalents, marketable securities, and the Standby Equity Purchase Agreement, will be sufficient to fund operating and capital expenditure requirements through at least 12 months from the date of issuance of the consolidated financial statements. A key strategic priority is the successful commercialization of products, particularly in the automotive sector, as evidenced by the selection by a top European passenger OEM as its exclusive LiDAR supplier for a global series-production vehicle platform to enable Level 3 automated driving. Another strategic priority is expanding into new markets such as industrial automation, consumer devices, robotics, and security, supported by strategic collaborations like the one with LG Innotek Co., Ltd. Management also stresses the importance of effectively managing the supply chain and transitioning to an outsourced manufacturing model to achieve economies of scale and meet anticipated demand.