Q2 2025 LeddarTech Holdings Inc Earnings Call
Thank you for standing by and welcome to the letter Teck's second quarter 2025 financial results Conference call. All lines have been placed on mute to prevent any background noise. There will not be a question and answer session on todays call I'd now like to turn the call over to Mike Bishop with the company's Investor Relations you may begin.
Operator: Thank you for standing by and welcome to the LeddarTech Second Quarter 2025 Financial Results Conference call. All lines have been placed on mute to prevent any background noise.
Operator: There will not be a question and answer session on today's call.
Mike Bishop: I'd now like to turn the call over to Mike Bishop with the company's investor relations. You may begin. Thank you and good morning. Today, Frantz Saintellemy, LeddarTech's President and Chief Executive Officer, and Chris Stewart, our Chief Financial Officer, are with me. As a reminder, LeddarTech is an automotive software company that delivers a unified multimodal AI platform software that serves the growing market ranging from mainstream advanced driver assistance systems, or ADAS, to full autonomous driving, or AD, applications.
Thank you and good morning.
Speaker Change: From St Illini letter tax President and Chief Executive Officer, and Chris Stewart, Our Chief Financial Officer are with me.
Speaker Change: As a reminder, letter Teck is in automotive software company that delivers a unified multimodal AI platform software solution that serves the growing market ranging from mainstream advanced driver assistance systems or Adas to full autonomous driving or E applications.
Mike Bishop: Before we begin, I remind everyone that this call may contain forward-looking statements based on management's current expectations and beliefs. These four looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from our expectations. and should be considered in conjunction with the cautionary statements contained in our business update release and the company's Form 20-F filed with the FCC.
Speaker Change: Before we begin I remind everyone that this call may contain forward looking statements based on management's current expectations and beliefs.
Speaker Change: These forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from our expectations.
Speaker Change: And should be considered in conjunction with the cautionary statements contained in our business update release and the Companys form 20-F filed with the SEC.
Speaker Change: During today's call management may provide certain information that will constitute non <unk> financial measures such as adjusted operating expenses and adjusted EBITDA reconciliations to <unk> measures and the additional information are also included in today's business update release available on the company's Investor Relations web.
Mike Bishop: During today's call, management may provide certain information that will constitute non-IFRS financial measures, such as adjusted operating expenses and adjusted EBITDA. Reconciliations to IFRS measures and the additional information are also included in today's business update release available on the company's investor relations website at investors.leddartech.com.
Speaker Change: Site at investors that letter Tech Dot com.
Frantz Saintellemy: I will now turn the call over to Frantz. Thanks, Mike, and thank you, everyone, for joining today's call. In the past six months, LeddarTech has made remarkable progress in business development, positioning us for sustained commercial success in the rapidly evolving ADAS and autonomous driving market. At LeddarTech, we are delivering what we believe to be the industry's most advanced, efficient, and scalable AI-based perception software for ADAS and autonomous driving. Lidar Vision is a high-performance, AI-powered, multimodal sensor fusion and perception software platform that processes raw data from cameras, radar, and lidar at the earliest stage, enabling superior accuracy and robustness in even the most challenging driving conditions, transforming how vehicles understand and react to their environment.
France: I will now turn the call over to France.
Speaker Change: Thanks, Mike and thank you everyone for joining today's call.
Speaker Change: In the past six months Metrotech has made remarkable progress in business development.
Speaker Change: <unk> asked the sustained commercial success in the rapidly evolving.
Speaker Change: And that's one of them is driving markets.
Speaker Change: We are delivering what we believe to be the industry's most advanced efficient and scalable AI based perception software for Adas and autonomous driving.
Speaker Change: I don't envision is a high performance AI powered multimodal sensor fusion and perception software platform that processes, Rob that's up from cameras radar and lidar at the earliest stage, enabling superior accuracy and robustness in even the most challenging driving conditions.
Speaker Change: Transforming how vehicles understand and react to their environment.
Frantz Saintellemy: Unlike traditional approaches that fuse sensor data late in the processing pipeline, we leveraged low-level raw data fusion, giving us a much more contextual, accurate, and robust perception. This software-first strategy has allowed us to reduce sensor count and system cost while improving performance. Achieve high-resolution, 360-degree perception on lower-cost edge processors. and to deliver scalable functionality from L2 ADAS to L4 autonomous systems. Importantly, our technology is ready for integration into next generation ADAS and AD systems. It has been extensively road-tested and validated. We've completed over 110 live on-road demonstrations using our Leddar Navigator vehicle fleet. showcasing our full stack AI software in real traffic scenarios.
Speaker Change: Unlike traditional approaches that he was censored data late in the processing pipeline.
Speaker Change: We leveraged low level raw back to fusion, giving us a much more contextual accurate and robust perception.
Speaker Change: This software first strategy has allowed us to reduce sensor count and system costs, while improving performance.
Speaker Change: Achieve high resolution 360 degree perception on lower cost edge processors.
Speaker Change: And to deliver scalable functionality from L to Adas.
For autonomous systems.
Our technology is ready for integration into next generation Adas and <unk> systems.
Speaker Change: It has been extensively road tested and validated.
Speaker Change: We've completed over 110 live unload demonstration using our letter navigator.
Speaker Change: Vehicle fleet.
Speaker Change: Showcasing our full stack AI software in real traffic scenarios.
Frantz Saintellemy: We also conducted live demonstrations of production-ready technology at CES in January, and the feedback has been overwhelmingly positive. The ultimate validation came in February when we announced that we secured a significant design win with a major commercial trucking OEM. This win marks a pivotal milestone as we transition from validation to commercialization. To clarify, the deal is for a current line of vehicles, and work has already begun on integration and productization for the 2028 model year. We are now in the final stages of platform selection with additional OEMs with decisions expected later this year. Our sales pipeline has grown substantially, with dozens of active opportunities now representing over $2 billion in potential lifetime revenue, reflecting the strong market demand for our platform.
Speaker Change: We also conducted live demonstrations of production ready technology at <unk>.
Speaker Change: Yes in January and the feedback has been overwhelmingly positive.
Speaker Change: The ultimate validation came in February when we announced that we secured a significant design win with a major commercial trucking Oems.
Speaker Change: This win marks a pivotal milestone as we transition from validation to commercialization.
Speaker Change: To clarify.
Speaker Change: The deal is for a current line of vehicles and work has already begun integration and product innovation for the 2028 model year.
Speaker Change: We are now in the final stages of platform selection with additional Oems with decisions expected later this year.
Speaker Change: Our sales pipeline has grown substantially with dozens of active opportunities now representing over $2 billion in potential lifetime revenue rich.
Speaker Change: <unk> the strong market demand for our platform.
Frantz Saintellemy: We've conducted roadshows and live demonstrations across Europe and China to build the pipeline, and we are closely tracking the design-win process.
Speaker Change: We've conducted roadshows and live demonstrations across Europe, and China to build the pipeline and we are closely tracking the design win process.
Speaker Change: Partnerships remain core to our strategy.
Frantz Saintellemy: Partnerships remain core to our strategy. and our accelerating business development. Let me highlight a couple of key developments with some of our strategic partners. First, Texas Instruments. Our partnership with Texas Instruments, signed late last year, includes a $10 million in prepaid royalties, reflecting deep confidence in the commercial potential of our platform. We have bundled Leddar Vision with TI's TDA processor platform, creating the industry's first open ADAS and AD software plus hardware solution for L2 to L4 applications. And with ARM, we have optimized the Leddar Vision for their AE automotive processors, integrated with cloud-based software-defined vehicle workflows via SOFI, enabling rapid development and validation.
Speaker Change: Our accelerating business development.
Speaker Change: Let me highlight a couple of key developments with some of our strategic partners.
Speaker Change: First Texas instruments, our partnership with Texas instruments signed late last year includes a $10 million in prepaid royalty, reflecting deep confidence in the commercial potential of our platform.
Speaker Change: We have bundled led our vision with Ti TVA processor platform, creating the industry's first open Adas and <unk>.
Speaker Change: Software plus hardware solution for al two to four applications.
Speaker Change: And with arm, we have optimized the letter a vision for their E automotive processors integrated with cloud based software defined vehicle workflows.
Speaker Change: Sophie, enabling rapid development and validation.
Frantz Saintellemy: Black Sesame and NVIDIA are another example. Our software is now ported into five major SoC suppliers, providing customers with the flexibility to deploy on the platform of their choice. Engineering partnerships with the likes of AVL, SEV, and TT Tech Auto, recently acquired by NXT, are extending our reach with tailored integrations and joint development opportunities. These strategic alliances are not just extending our market access, they are driving immediate customer engagement, accelerating design wins, and enabling the swift commercialization of our technology, ensuring we meet the growing demand for scalable ADAS solutions across industries.
Speaker Change: Blacks SME and Nvidia are another example, our software is now ported into five major SSD suppliers, providing customers with the flexibility to deploy on the platform of their choice.
Speaker Change: Engineering partnerships with the likes of ABL, SUV and TC Tech Auto recently acquired by NXT are extending our reach with tailored integrations and joint development opportunities.
Speaker Change: These strategic alliances are not just expanding our market access we are driving immediate customer engagements accelerating design wins and enabling the swift commercialization of our technology, ensuring we meet the growing demand for scalable Adas solutions across industries.
Frantz Saintellemy: Now, I'm excited to announce LeddarSim, our groundbreaking multimodal simulation solution for real-world neural reconstruction of driving scenarios. LedarSim dramatically reduces the cost and time required for training and validating ADAS and AD systems, a major industry challenge. The cost of data collection and annotation has traditionally been a significant barrier to introduction of more complex new ADAS features and AD functionality. For example, launching a new L2 plus system typically requires collecting and annotating around 5 million frames of real world data. With LeddarSim, we believe we can achieve the same performance with as little as one-tenth of the road data, reducing costs by nearly 90%.
Speaker Change: Now I'm excited to announce let our simm, our groundbreaking multi modal simulation solution for real world Neuro reconstruction of driving scenarios.
Speaker Change: Let our spin dramatically reduces the cost and time required for training and validating Adas and <unk> systems are major industry challenge.
Speaker Change: The cost of data collection and allocation has traditionally been a significant barrier to introduction of more complex, new Adas features and functionalities.
Speaker Change: For example, launching our new <unk> plus system typically requires collecting and annotating around 5 million frames of real world data with.
Speaker Change: With <unk>, we believe we can achieve the same performance with as little as 110th of the road data reducing costs by nearly 90%.
Speaker Change: Let our Sim allows developers to leverage a relatively small amount of real world data to stimulate a wide variety of operational designed domains.
Frantz Saintellemy: LeddarSim allows developers to leverage a relatively small amount of real-world data to simulate a wide variety of operational design domains. This means we can simulate the multitude of corner cases these systems must be trained on before release to production. Unlike competing solutions that use synthetic data with a gaming engine behind them, LeddarSim uses real-world multi-sensor data to reconstruct multimodal scenarios with near zero simulation gap. We developed the Leddar sim to facilitate training and validation for our Leddar Vision protocol.
Speaker Change: This means we can stimulate the multitude of corner cases. These systems must be trained on before released to production.
Speaker Change: Unlike competing solutions that use synthetic data with a gaming engine behind them, let our Sim users real world multi sensor data to reconstruct multimodal scenarios with near zero simulation gap.
Speaker Change: We've developed the led our Sim to.
Speaker Change: Military training and validation for our led our vision product line.
Frantz Saintellemy: but its productization opens a new multibillion-dollar market, creating a high-margin, scalable SaaS, or software-as-a-service revenue opportunity for LeddarTech. Beginning today, we're offering free trials and paid evaluation licenses to a select number of early access customers with broad availability expected later this year. The advantages for our customers are clear, reduced data collection, reduced annotation costs and accelerated development time. We believe LedarSim could act as a catalyst to drive faster progress across the ADAS and AD market spectrum.
Speaker Change: But it's product validation opens a new multibillion dollar market, creating a high margin scalable SaaS or software as a service revenue opportunity for a later day.
Speaker Change: Beginning today, we're offering free trials and paid devaluation licenses to a select number of early access customers with broad availability expected later this year.
Speaker Change: The advantages for our customers are clear.
Speaker Change: Data collection reduced allocation costs and accelerated development time.
Speaker Change: We believe letter steam could act as a catalyst to drive faster progress across the Adas market spectrum.
Frantz Saintellemy: We've been very active at industry events and trade shows. In addition to CES, at Embedded World and Tech AD Europe, customer interest was extremely high. At Hanover MASS 2025, we've conducted 360-degree virtual reality demonstrations, detailed product presentations, and customer meetings. These events help demonstrate product readiness and generate valuable customer interaction.
Speaker Change: We've been very active at industry events and trade shows in addition to CES at embedded world in <unk> Europe customer interest was extremely high.
Speaker Change: At Hanover matched 2025, we conducted 360 degree virtual reality demonstration detailed product presentation and customer meetings.
Speaker Change: These events help demonstrate product readiness and generate valuable customer interactions with these exciting developments in mind I will now hand, it over to Chris who will take us through the financial highlights for the second quarter of 2025.
Christopher Stewart: With these exciting developments in mind, I'll now hand it over to Chris who will take us through the financial highlights for the second quarter of 2025, reflecting the strong performance we've seen alongside these innovations. Thanks Frantz and good morning everyone. I will provide an overview of our second quarter 2025 financial results and then highlight what we are focused on as we head into the second half of 2025.
Chris: Flexing the strong performance we've seen alongside these innovations.
Chris: Thanks, Ron and good morning, everyone I will provide an overview of our second quarter 2025 financial results and then highlight what we are focused on as we head into the second half of 2025.
Christopher Stewart: Note that all dollar figures are Canadian dollars unless otherwise noted as this is our functional currency. For the fiscal second quarter ended March 31st, 2025, revenue from continuing operations totaled $239,000, up 96% from the $122,000 recorded in the year-ago quarter. With LiDAR now excluded, our revenue is primarily derived from non-recurring engineering or NRE services and paid proof-of-concept projects with Leddar Vision. With the fiscal second quarter ended March 31st, 2025, EBITDA loss was $8.4 million compared to a $14 million loss in the fiscal second quarter of 2024. The lower loss was primarily due to lower stock-based compensation and financing related.
Chris: And that all dollar figures are Canadian dollars unless otherwise noted as this is our functional currency.
Chris: For the fiscal second quarter ended March 31, 2025 revenue from continuing operations totaled $239000 up 96% from the 122000 recorded in the year ago quarter.
Chris: With Lidar now excluded our revenue is primarily derived from non recurring engineering or <unk> services can paid proof of concept projects with better vision customers.
Chris: For the fiscal second quarter ended March 31, 2025, EBITDA loss was $8 4 million.
Chris: Compared to a $14 million loss in the fiscal second quarter of 2020 for.
Chris: The lower loss was primarily due to lower stock based compensation and financing related expenses, partially offset by higher R&D expense as we are no longer capitalizing a substantial portion of R&D as we were in the prior period.
Christopher Stewart: Partially offset by higher R&D expense as we are no longer capitalizing a substantial portion of R&D as we were in the prior period. suggested EBITDA in Q2 was a loss of $12 million compared to a loss of $8.7 million in the year ago quarter. The higher loss was primarily attributable to higher R&D expense, given that we are no longer capitalizing. We continue to tightly manage and optimize operating expenses, being mindful of our current balance. Net loss from continuing operations for the fiscal second quarter was $16 million, compared with a $17 million loss in the fiscal second quarter of 2024.
Chris: Adjusted EBITDA in Q2 was a loss of $12 million compared to a loss of $8 7 million in the year ago quarter.
Chris: The higher loss was primarily attributable to higher R&D expense given that we are no longer capitalizing R&D expense.
Chris: We continue to tightly manage and optimize operating expenses being mindful of our current balance sheet.
Chris: Net loss from continuing operations for the fiscal second quarter was $16 million compared with a $17 million loss in the fiscal second quarter of 2024.
Christopher Stewart: The decrease in net loss was primarily due to lower stock-based compensation and financing expenses offset by the previously mentioned higher R&D expenses. According to the balance sheet, we ended the quarter with $9.2 million in cash and $105 million in short and long-term debt. During the quarter, we sold approximately 600,000 shares on our standby equity purchase agreement, raising approximately $1.5 million. Our weighted average share count for the quarter was 37.6 million shares. On April 1st, 2025, we announced that we had entered into amendments to both our bridge loan and our Desjardins credit facility. Those amendments require that the company produce a plan for refinancing, recapitalizing, or other suitable transaction by May 16, 2025.
Chris: The decrease net loss was primarily due to lower stock based compensation and financing expenses offset by the previously mentioned higher R&D expense.
Chris: Turning to the balance sheet, we ended the quarter with $9 2 million in cash and $105 million, a short and long term debt.
Chris: During the quarter, we sold approximately 600000 shares on a standby equity purchase agreement.
Chris: <unk> approximately $1 5 million.
Chris: Our weighted average share count for the quarter was 37 6 million shares.
Chris: On April one 2025, we announced that we had entered into amendments to both our bridge loan and our <unk> credit facility.
Chris: Those amendments require that the company produce a plan for a refinancing recapitalizing or other suitable transaction by may 16th 2025.
Christopher Stewart: For that end, we have engaged a financial advisor to do a comprehensive review of the options that are available to the company.
Chris: Or is that and we have engaged a financial advisor to do a comprehensive review of the options that are available to the company.
Christopher Stewart: We are currently exploring all alternatives to secure the financing necessary to continue to pursue our strategic Turning now to our outlook for the second half of 2025, we are focused on three key objectives. First, we are working to secure the capital we need to strengthen our balance sheet. Second, we are focused on executing on the design-in activities for our announced OEM design win. And third, we will progress our commercial pipeline with the goal of achieving additional design wins this year.
Chris: We are currently exploring all alternatives to secure the financing necessary to continue to pursue our strategic goals.
Chris: Turning now to our outlook for the second half of 2025, we are focused on three key objectives. First we are working to secure the capital we need to strengthen our balance sheet.
Chris: Second we are focused on executing on the design in activities for our announced OEM design win.
Chris: And third we will progress our commercial pipeline with the goal of achieving additional design wins this year.
France: Finally note that we expect to report fiscal third quarter 2025 results for the quarter ended June 32025 in mid August, but will not hold a conference call to discuss those results. Our plan remains to hold conference call updates in conjunction with both our mid year and end of year 2025 results I will now turn the call over to France.
Christopher Stewart: Finally, note that we expect to report fiscal third quarter 2025 results for the quarter ended June 30, 2025, in mid-August, but will not hold a conference call to discuss those results. Our plan remains to hold conference call updates in conjunction with both our mid-year and end-of-year 2025 results.
Frantz Saintellemy: I will now turn the call over to Frantz for closing comments. I would like to thank everyone for joining the call today. In closing, with LeddarSingh offering a game-changing solution for training and validation. and the growing demand for our LEDAR vision, we are excited about the future. We are confident that we are well-positioned to lead in the ADAS and autonomous driving space and to continue creating long-term value. Thank you.
France: For closing comments.
France: I would like to thank everyone for joining the call today in closing with letters, saying offering a game changing solution for training and validation and the growing demand for our led our vision. We are excited about the future.
France: We are confident that we are well positioned to lead in the Adas and autonomous driving space and to continue creating long term value.
France: Thank you.
France: This concludes today's conference call you may now disconnect.
Operator: This concludes today's conference call. You may now disconnect.
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France: Okay.
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