Innoviz Technologies Q1 Earnings Call Highlights
Innoviz Technologies (NASDAQ:INVZ) reported first-quarter 2026 revenue of $7.1 million and reiterated its full-year revenue outlook, while emphasizing new momentum in defense, homeland security and autonomous vehicle programs.
Chief Executive Officer and Co-Founder Omer Keilaf said some non-recurring engineering, or NRE, milestones shifted into future quarters after customers requested additional content. He said purchase orders are in place for the delayed revenue and that the company expects to recognize it in coming quarters.
“Our outlook for the full year remains unchanged as we continue to target revenues of $67 million-$73 million,” Keilaf said. He added that the company’s longer-term outlook is also unchanged, citing Innoviz’s view that LiDAR is “indispensable to the rise of Physical AI.”
Defense and homeland security become new focus areas
A major theme of the call was Innoviz’s entry into the defense and homeland security market. Keilaf described the segment as a “rapidly expanding and high-margin space” that requires performance, reliability and resilience.
Innoviz said its InnovizSMART and newly launched InnovizTwo Ultra Long-Range products are now available for defense and security applications. Keilaf said the company is in active discussions with “tens of potential customers and system integrators” and has a dedicated team focused on the end market.
The company highlighted several potential use cases, including:
- Perimeter intrusion and border surveillance;
- Mapping and situational awareness;
- Drone detection and tracking;
- Autonomous defense systems and obstacle avoidance.
Keilaf said Kela, an Israeli defense company, announced its intent to field Innoviz LiDARs across its unified situational operations platform, including drone detection and perimeter security. He also said Innoviz reached an agreement with a large holding group that plans to incorporate Innoviz LiDARs into its defense and homeland security offerings. According to Keilaf, Innoviz has already received a prepayment and completed an installation for that customer, which he said is expected to announce Innoviz as its LiDAR partner.
During the question-and-answer session, Goldman Sachs analyst Mark Delaney asked about the revenue and profitability potential of non-automotive programs. Keilaf said the opportunities are based on InnovizSMART solutions and that average selling prices are “significantly higher” than in automotive. He pointed to drone defense as an area with a high sense of urgency, saying he has received frequent calls on the topic in recent months.
Automotive programs continue toward production
Innoviz also said its automotive programs are progressing with customers including Volkswagen Group, Mobileye and Daimler Truck. Keilaf said the Daimler Truck program, in collaboration with Torc, is receiving units to support milestones through start of production.
Keilaf discussed Mobileye’s plans to deploy the Volkswagen ID. Buzz on the Uber platform in Los Angeles by the end of the year and with Beep in Orlando. He said each vehicle is planned to include nine InnovizTwo LiDARs: three long-range and six short- to mid-range sensors. Innoviz also supports Holon and other customers through the Mobileye Drive Level 4 platform, and Keilaf said the platform is showing “strong momentum.”
On Level 3 automation, Keilaf said Innoviz is advancing toward start of production on Mobileye Chauffeur programs, including with Audi.
The company also announced a development agreement with a leading autonomous driving technology company to evaluate combining Innoviz LiDAR with on-sensor perception software for future autonomous vehicle programs. Keilaf said that as autonomous vehicle programs move toward series production, automakers increasingly require perception capabilities to execute directly on the sensor and independently of the broader vehicle architecture.
Innoviz also signed a letter of intent with LOXO, a Swiss autonomous last-mile delivery company. Keilaf said LOXO and Innoviz are in advanced stages of testing the InnovizTwo long-range LiDAR for LOXO’s autonomous vehicle platform. Subject to successful testing, LOXO intends to nominate Innoviz as its LiDAR supplier, with multiple LiDARs per vehicle. Keilaf said Innoviz could potentially replace an FMCW LiDAR in the platform.
New LiDAR products highlighted
Innoviz recently launched the InnovizTwo Ultra Long-Range, or ULR, LiDAR, which Keilaf said can deliver sensing up to 1 kilometer. He said the product is designed for applications including terrain, borders, runways, large installations, autonomous vehicles, perimeter security and drone detection.
Keilaf also discussed InnovizThree, which the company unveiled earlier this year. He said the product includes an option for color image data alongside 3D data and is designed for behind-the-windshield automotive installation. In response to a question from AmerX analyst Casey Ryan, Keilaf said color was added to InnovizThree to help optimize integration behind the windshield, where packaging can be challenging because cameras are already located there.
In response to a question from Oppenheimer analyst Colin Rusch about the competitive landscape and LiDAR evolution, Keilaf said LiDAR has improved substantially over the past decade, with range increasing from 50 meters to 1 kilometer, resolution improving and costs declining. He said future developments could include smaller form factors, lower costs and more compute integration inside the LiDAR.
Financial results and 2026 outlook
Chief Financial Officer Eldar Cegla said first-quarter revenue was $7.1 million, with some revenue pushed into future quarters due to NRE milestone variability. He said unit shipments made a significant contribution to the quarter and reached a record high.
Innoviz ended the quarter with approximately $60.1 million in cash equivalents, short-term deposits and marketable securities, and Cegla said the company continues to have no long-term debt. Cash used in operations and capital expenditures was approximately $15.8 million, reflecting higher working capital needs tied to the production ramp at Fabrinet and the shift in NRE payments.
Gross margin was approximately negative 22% in the quarter, which Cegla attributed to revenue mix and lower absorption of fixed costs associated with unit production. He said fixed cost absorption is expected to improve later this year as volumes ramp.
Innoviz reiterated its 2026 targets, including revenue of $67 million to $73 million, new NRE payments of $20 million to $30 million in addition to existing plans, and the addition of two to three new programs this year. The company also expects non-automotive Physical AI applications to account for up to 10% of 2026 revenue, compared with approximately 1% in 2025.
Keilaf said Innoviz shipped a record number of units in the first quarter, equal to about half of what it shipped during all of 2025, and expects shipments to accelerate further in the second half of the year.
About Innoviz Technologies (NASDAQ:INVZ)
Innoviz Technologies Ltd. (NASDAQ: INVZ) is a developer of high-performance solid-state LiDAR sensors and perception software designed to support advanced driver assistance systems (ADAS) and autonomous driving applications. The company’s core business focuses on providing automotive-grade LiDAR hardware, along with software algorithms that enable accurate 3D mapping, object detection and environmental perception in real time. Innoviz’s technology is tailored for integration into passenger vehicles, commercial fleets and other mobility platforms seeking improved safety and autonomy.
Founded in 2016 and headquartered in Rosh Ha’ayin, Israel, Innoviz has emerged as a key supplier to leading global automakers and Tier 1 suppliers.
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