Mobileye releases Q2 2025 results, updates full-year 2025 outlook

Mobileye Global Inc. (“Mobileye”) today released its financial results for the three months ended June 28, 2025.

“The business performed very well in Q2, both on the revenue growth and cost management side. Stronger visibility on industry supply-demand alignment since late-April supports our decision to raise the full-year outlook, while we continue to maintain a conservative stance given the broader macro environment,” said Mobileye President and CEO Prof. Amnon Shashua. “Substantial progress on our advanced product programs raises our confidence that upcoming launches will lead to an inflection in Mobileye’s growth trajectory in 2027, with Drive anticipated to join SuperVision as material growth drivers in that year.”

Second Quarter 2025 Business Highlights

• Revenue growth of 15% year-over-year in Q2 was higher than our prior outlook and it was broad-based, including strong EyeQ volumes across our customer base (including China-based OEMs), steady ramp-ups of new ADAS programs, and good end-demand for vehicles with the first-generation SuperVision system. We continue to win new programs at a high rate and incremental traction on Surround ADAS signals strong potential for a next generation of higher-content ADAS for mass-market vehicles.

• Simultaneous execution of our four advanced products with various brands of the Volkswagen Group continues to meet performance and safety KPI’s laid out at the start of each program. Volkswagen unveiled and demonstrated the autonomous driving version of the ID.Buzz in June and we are on-track to begin fully driverless deployments in the US in 2026. SuperVision and Chauffeur test vehicles now include production-level hardware and significant portions of the next generation AI-heavy software stack and are demonstrating better-than-predicted performance in multiple geographies.

• Positive proof-points on consumer acceptance of driverless robotaxis continues to push demand for the Mobileye Drive system, both from the vehicle platform side (i.e., OEMs) and the demand-generation side (i.e., mobility providers). Our lead vehicle platform provider Volkswagen announced a strategic partnership with Uber to deploy robotaxis beginning in Los Angeles, we made progress on completing the ecosystem for the Lyft / Marubeni engagement, and we continue to see strong interest from mobility providers across Europe.

• Mobileye’s in-house designed imaging radar is a key differentiator within Mobileye’s eyes-off product bundles (Chauffeur and Drive) and achieved its first design win in Q2 as an enabler of highway-speed L3 eyes-off performance. This important proof-point, along with additional signs of technological maturity, drove increased interest in the Chauffeur solution as a scalable enabler of L3 consumer AV, seen as high-value proposition by OEMs.

Second Quarter 2025 Financial Summary and Key Highlights (Unaudited)

• Revenue of $506 million increased by 15% compared to the second quarter of 2024, primarily due to a 28% increase in EyeQ volumes, resulting from higher customer demand and the normalization of excess inventory by the Company’s Tier 1 customers previously used to satisfy demand during 2024, partially offset by lower SuperVision volumes on a year-over-year basis.

• Gross Margin increased by approximately 2 percentage points in the second quarter of 2025 as compared to the prior year period. The increase was primarily due to similar levels of amortization of intangible assets on a higher revenue base.

• Adjusted Gross Margin remained relatively flat in the second quarter of 2025 as compared to the prior year period. The positive mix effect of higher EyeQ revenue (relative to SuperVision) was offset by a slight reduction in EyeQ ASP mainly due to higher volumes in China.

• Operating Margin improved from (21)% in the second quarter of 2024 to (15%) in the second quarter of 2025. The increase was primarily due to higher Gross Margin and lower operating expenses as a percentage of revenue.

• Adjusted Operating Margin increased by 3 percentage points in the second quarter of 2025 as compared to the prior year period. The increase was primarily due to lower operating expenses as a percentage of revenue.

• Operating cash flow for the six months ended June 28, 2025 was $322 million. Cash used in purchases of property and equipment was $28 million for that same period. In July 2025, we used $100 million of cash to repurchase stock from Intel.

Updated Financial Guidance for the 2025 Fiscal Year

Our updated guidance reflects a 4% increase in expected Revenue, at the midpoint, due to an increased outlook for both EyeQ and SuperVision shipments for the remainder of 2025 resulting from higher-than-expected volume in the second quarter of 2025 and increased visibility into industry supply-demand dynamics in the third quarter of 2025. Our updated guidance also reflects a decrease in Operating Loss (GAAP) and an increase in Adjusted Operating Income (Non-GAAP), at the midpoint, of 11% and 14%, respectively, due to the typical incremental margin on higher revenue and stable expectations for operating expenses. The foregoing reflects Mobileye’s updated expectations for Revenue, Operating Loss and Adjusted Operating Income results for the full year 2025. This guidance incorporates our best estimates of production impacts related to current tariffs imposed on complete vehicles imported into the United States and tariffs on imported vehicle components used in US vehicle production, but assuming no further tariff developments or increases.

We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges related to intangible assets consisting of developed technology, customer relationships, and brands as a result of Intel’s acquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; and, 2) Share-based compensation expense. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this release.

Earnings Conference Call Webcast Information

Mobileye will host a conference call today, July 24, 2025, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the webcast will be made available shortly after the event’s conclusion.

Non-GAAP Financial Measures

This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS, which are financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue. We define Adjusted Operating Income (Loss) as operating loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles and share-based compensation expenses. Operating margin is calculated as Operating Income (Loss) divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expense, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts. The adjustment for income tax effects consists primarily of the deferred tax impact of the amortization of acquired intangible assets. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the period by the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive.

We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating our business and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independently of business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

SOURCE: Mobileye