Innoviz Technologies Ltd.

Innoviz reported Q2 2026 revenue of $18.1 million, an all-time record, and said the quarter benefited from higher NRE recognitions tied to milestones approaching SOP. Management said gross margin in the quarter returned to positive levels and expects gross margin to be positive for the full year. Cash used in operations and capex was approximately $15.2 million, and the company ended the quarter with approximately $48.5 million in cash, cash equivalents, short-term deposits and marketable securities, excluding the additional $30 million gross proceeds from the July 29 transaction. For 2026, Innoviz reiterated revenue guidance of $67 million to $73 million, expects up to 10% of revenue from nonautomotive physical AI applications, targets new NRE payment plans of $20 million to $30 million in addition to existing plans, and expects the bulk of second-half revenue in Q4.

Omer Keilaf framed the quarter as a turning point for the business, emphasizing that Innoviz is now moving into defense and homeland security under the new Perciz brand while continuing to advance automotive programs. He repeatedly highlighted that the company’s automotive-grade functional safety and production readiness translate well to defense use cases, and said the defense opportunity could be a multibillion-dollar TAM with ASPs an order of magnitude higher than auto. His tone was optimistic and confident, but he also stressed that the company is still early in this market and focused on converting customer testing and pilot deployments into larger awards.

Eldar Cegla focused on the financial impact of milestone-based NRE and the improving margin profile. He said Q2 revenue hit a record $18.1 million, gross margin turned positive, and cash used in operations plus capex was about $15.2 million. He noted no long-term debt and a quarter-end cash balance of about $48.5 million, then pointed to the additional $30 million gross proceeds from the July 29 transaction, which he said will support commercialization of Perciz and provide operational runway into 2028. He also reiterated that defense/security should become a meaningful segment with quicker cycles and improved profitability.

Analysts pressed management on how much of the defense/security pipeline is now effectively booked and whether Innoviz can reach its goal of roughly 10% non-auto revenue in 2026. Keilaf said the company has already booked about halfway to its defense target and expressed high confidence in reaching the 10% mix, while also saying the defense contribution could rise to roughly 20% to 30% in 2027. On the automotive side, he said the new top-10 OEM perception-stack work is a new relationship focused on development, with revenue tied mainly to NRE and LiDAR sales, and that feedback on the ID. Buzz program has been very positive. He also said the company is not giving specific revenue size for the new OEM project and that the Mobileye/VW ID. Buzz rollout is on track to expand to six cities by year-end.