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 itself from legacy 3D LiDAR, which uses Time-of-Flight (ToF) technology, by measuring instant velocity for every pixel in addition to depth, reflectivity, and inertial motion. This proprietary FMCW design offers advantages such as immunity from interference, superior long-range performance up to 500 meters, high sensitivity, high dynamic range, better performance in inclement weather, and improved laser safety margins due to low power continuous beams. The company's technology is integrated onto a silicon photonics chip module, leveraging proven semiconductor manufacturing processes, and includes a custom digital signal processing (DSP) ASIC and 4D Perception software for fast object detection, classification, tracking, and vehicle state estimation without additional inertial motion sensing hardware ¹.

Aeva's business model primarily involves selling product prototypes and non-recurring engineering (NRE) services for research and development and testing purposes to customers in automotive and industrial markets. The company expects its solutions to be incorporated into final products such as automobiles, industrial equipment, consumer devices, and security systems. Revenue is generated from these sales, with a mix of point-in-time recognition for product sales and over-time recognition for NRE services. The company is expanding its manufacturing capacity through third-party manufacturers to meet anticipated demand for production-grade products. A significant portion of Aeva's revenue is generated from the development of automotive applications, with North America being the largest geographical market ².

The company 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 Aeva's CoreVision™ LiDAR-on-chip module and Aeva X1™ system-on-chip (SoC) LiDAR processor. Aeva Atlas™ Ultra is a newer 4D LiDAR sensor designed 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 vehicle integration ³.

In industrial automation, 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. Eve 1V is a high-precision, non-contact motion sensor for industrial speed, length, and position measurement, delivering accurate, repeatable motion data without physical contact, thereby eliminating wear and slippage common in traditional encoders ⁴. For smart infrastructure, Aeva Atlas™ Orion is a high-performance 4D LiDAR sensor meeting NEMA-TS2 standards, designed for intelligent transportation systems and security applications. It offers durable, long-range perception, detecting vehicles up to 500 meters and vulnerable road users up to 200 meters, with a single-box PoE++ design for cost-efficient deployment ⁵.

For the fiscal year ended December 31, 2025, Aeva reported total revenue of $18.079 million ⁶, an increase of 99% from $9.065 million in 2024 ⁷. The cost of revenue was $18.739 million ⁸, resulting in a gross loss of $(0.660) million ⁹. Operating expenses totaled $126.937 million ¹⁰, leading to an operating loss of $(127.597) million ¹¹. The net loss for the year was $(145.428) million ¹², with a diluted EPS of $(2.55) ¹³. Interest income decreased by $5.0 million, or 64%, to $2.738 million ¹⁴. The company had cash and cash equivalents of $72.291 million ¹⁵ and marketable securities of $49.608 million ¹⁶, totaling $121.899 million ¹⁷ in cash, cash equivalents, and marketable securities as of December 31, 2025. Total liabilities were $166.486 million ¹⁸, including convertible notes of $96.693 million ¹⁹ and warrant liabilities of $29.711 million ²⁰.

Comparing 2025 to 2024, revenue increased by $9.014 million ²¹, or 99% ²². Cost of revenue increased by $5.884 million ²³, or 46% ²⁴. Gross loss improved by $3.130 million ²⁵, or 83% ²⁶, from $(3.790) million in 2024 to $(0.660) million 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. The change in fair value of warrant liability resulted in a $(21.453) million ³⁶ expense in 2025, compared to $(1.486) million ³⁷ in 2024, an increase of 1344% ³⁸. Net loss improved by $6.833 million ³⁹, or 4% ⁴⁰, from $(152.261) million in 2024 to $(145.428) million in 2025. North America's revenue contribution increased from 86% in 2024 to 74% in 2025 ⁴¹, while Europe's contribution increased from 5% to 21% ⁴². Asia's contribution decreased from 7% to 3% ⁴³, and Oceania increased from 2% to 2% ⁴⁴.

During 2025, Aeva entered into a strategic collaboration with LG Innotek Co., Ltd. (LGIT) on May 13, 2025, which included a Share Subscription Agreement and a Joint Development Agreement (JDA) ⁴⁵. Under the Share Subscription Agreement, LGIT made a strategic investment of $32.5 million ⁴⁶ in exchange for 3,509,719 shares of common stock at $9.26 per share ⁴⁷, with the private placement closing on August 20, 2025 ⁴⁸. The JDA involves Aeva providing non-recurring engineering services to LGIT for a total consideration of $7.5 million ⁴⁹, though no revenue will be recognized for these services as all proceeds were allocated to the LG Subscription Agreement ⁵⁰. In November 2025, Aeva issued $100.0 million ⁵¹ aggregate principal amount of 4.375% Convertible Senior Notes due 2032 in a private placement, with net proceeds of $96.7 million ⁵². The company also fully paid the $14.0 million ⁵³ accrued liability for the Delaware Stockholder Litigation settlement and recovered $2.5 million ⁵⁴ 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. The macroeconomic conditions, including inflation, interest rates, consumer confidence, fuel and energy costs, and supply chain disruptions, may negatively impact pricing, margins, and market share. The company expects to continue incurring operating losses until broad-based commercial deliveries of its products begin, which are not expected in 2026 ⁵⁵.

A major growth area for Aeva is the automotive industry, particularly the transition to SAE Level 3, Level 4, and Level 5 autonomous driving systems. The company believes its 4D LiDAR's long range and fast detection capabilities position it well for the autonomous trucking industry, which is expected to grow, especially in North America, driven by demand from logistics and construction sectors and stringent government safety rules. In December 2025, Aeva was selected by a top European passenger original equipment manufacturer as its exclusive LiDAR supplier for a global series-production vehicle platform to enable Level 3 automated driving ⁵⁶. This represents a significant design win, though there is no assurance of a definitive volume production agreement or expected return on investment ⁵⁷.

Beyond automotive, Aeva is actively pursuing market opportunities in industrial automation, consumer device applications, robotics, and security markets. The company believes its 4D LiDAR technology can offer robots, industrial metrology machines, and other automation equipment clearer, more accurate, and cost-effective perception. The Aeva Eve™ 1 line, including Eve 1D for high-precision laser displacement and Eve 1V for non-contact motion sensing, targets these industrial applications. For smart infrastructure and security, Aeva Atlas™ Orion is designed for intelligent transportation systems and security applications, detecting vehicles up to 500 meters and vulnerable road users up to 200 meters ⁵⁸. 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 ⁵⁹.

Operationally, Aeva expects its results of operations, including revenue and gross margins, to fluctuate quarterly as customers progress through research and development projects and move towards commercialization of LiDAR-based solutions. The development cycles for products can range from several months to years depending on the industry. The company's ability to achieve profitability is dependent on existing relationships progressing to production and meeting required volumes and cost targets. Delays in customer programs could hinder revenue targets and profitability, potentially necessitating additional debt or equity capital ⁶⁰. The company is transitioning to an outsourced manufacturing business model, relying on third-party manufacturers for both manufacturing and assembly of its products, which is expected to have benefits but also carries risks of delays, increased costs, and potential harm to customer relationships in the near term ⁶¹.

Aeva plans to continue incurring substantial research and development (R&D) costs to enhance existing products and develop new ones, as these expenditures are expensed as incurred and will adversely affect future results of operations ⁶². The company had $121.9 million ⁶³ in cash, cash equivalents, and marketable securities as of December 31, 2025. It also has an available equity facility of up to $125.0 million ⁶⁴ through November 8, 2026, under a Standby Equity Purchase Agreement with Sylebra, which it intends to draw upon if needed ⁶⁵. All conditions to request an advance under this facility were met as of December 31, 2025 ⁶⁶.

Management explicitly flagged several structural headwinds and execution risks. The market adoption of LiDAR technology, including Aeva's 4D LiDAR, is uncertain, and a significant portion of revenue is generated from automotive applications, where commercialization is not guaranteed. There is a risk that other sensing modalities or new disruptive technologies could gain market acceptance over LiDAR. The long period from a design win to implementation, potentially seven or more years in the automotive market, exposes the company to risks of contract cancellation or postponement and unsuccessful integration. The company's forward-looking estimates of financial metrics, such as "Order Book," may prove inaccurate due to these uncertainties. Furthermore, Aeva is highly dependent on its two founders, Soroush Salehian Dardashti and Mina Rezk, and the loss of either could adversely affect the business ⁶⁷.

Geographic, regulatory, and macro factors also pose constraints. International sales expose Aeva to risks such as exchange rate fluctuations, political and economic instability, trade sanctions, tariffs, and varying regulatory requirements. The company relies heavily on third-party manufacturing operations outside the United States, which are subject to foreign currency fluctuations, local economic conditions, political instability, and reduced intellectual property protection in some countries. Changes in trade policies, tariffs, and import/export regulations could adversely affect Aeva's business. Government vehicle safety regulations are a key driver, but changes in these requirements or the imposition of additional emissions and safety requirements on vehicle manufacturers could delay the adoption of autonomous and ADAS features, impacting Aeva's business ⁶⁸.

Aeva faces material risks including its early stage of development, history of losses, and reliance on prototypes and non-recurring engineering services, with no assurance of commercialization or sustained profitability. The lengthy period from design win to implementation, potentially seven or more years in automotive, exposes the company to cancellation or postponement risks. Forward-looking estimates, such as "Order Book," may prove inaccurate due to significant business and economic uncertainties. Supply chain disruptions, particularly from limited or single-source suppliers and geopolitical conflicts, could adversely impact component availability and costs. The complexity of Aeva's products could lead to unforeseen delays or expenses from undetected defects, errors, or reliability issues, potentially damaging reputation and incurring product liability claims. Continued pricing pressures and cost reduction initiatives from automotive OEMs may result in lower margins. Substantial R&D costs are expected to continue, which could increase losses and may not result in revenue. Market adoption of LiDAR, including Aeva's 4D LiDAR technology, is uncertain, and alternative sensing technologies could gain preference. The company may not have sufficient resources to fund operating costs, R&D, and capital expenditures, potentially requiring additional capital that may not be available on acceptable terms. International sales and manufacturing operations expose Aeva 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. Cybersecurity risks to operational systems, security systems, infrastructure, integrated software, and customer data could lead to intellectual property loss, data breaches, and operational disruptions. As of December 31, 2025, Aeva had $607.4 million ⁶⁹ of U.S. federal and $356.1 million ⁷⁰ of state net operating loss carryforwards, which may be subject to limitations under Section 382 and 383 of the Internal Revenue Code, potentially affecting future cash flows ⁷¹.

Management's message to shareholders emphasizes the company's vision to bring perception to broad applications through its proprietary FMCW 4D LiDAR-on-chip technology and software. They highlight the differentiation of their solution over legacy 3D LiDAR by measuring instant velocity for every pixel, offering superior long-range performance up to 500 meters, immunity from interference, and enhanced safety. Management acknowledges the company's early stage, history of losses, and reliance on prototypes and non-recurring engineering services, with profitability dependent on successful commercialization and market adoption of their products, which are not expected to occur in 2026 ⁷². Key strategic priorities include expanding manufacturing capacity through third-party manufacturers to meet anticipated demand, continuing substantial investments in research and development to enhance existing products and develop new ones, and leveraging strategic partnerships such as the one with LG Innotek Co., Ltd. to penetrate new industrial and consumer markets. Management also noted the significant design win with a top European passenger OEM as its exclusive LiDAR supplier for a global series-production vehicle platform to enable Level 3 automated driving ⁷³. The company believes its existing liquidity, including cash and cash equivalents and marketable securities totaling $121.9 million ⁷⁴ as of December 31, 2025, combined with the ability to draw up to $125.0 million ⁷⁵ from the Standby Equity Purchase Agreement through November 8, 2026, will be sufficient to fund operating and capital expenditure requirements for at least 12 months from the date of issuance of the consolidated financial statements ⁷⁶.