Q2 2025 Aurora Innovation Inc Earnings Call

Telephone keypad as a reminder, this conference is being recorded it is now my pleasure to introduce your host Stacy Feit, Vice President of Investor Relations. Thank you you may begin.

Thanks, Latanya good afternoon, everyone and welcome to our second quarter of 2025 business review call, we announced our results earlier. This afternoon, our shareholder letter and a presentation to accompany this call are available on our Investor Relations website at IR Dot Aurora Dot Tech. The shareholder letter was also furnished with our form 8-K filed today with the SEC.

On the call with me today are Chris <unk>, co founder and CEO and David Day CFO.

Chris will provide an update on the progress we have made across the key pillars of our business and David will recap our second quarter financial results. We'll then open the call for Q&A.

A recording of this conference call will be available on our Investor Relations website at IR Dot Aurora Dot Tech shortly after this call has ended.

I'd like to take an opportunity to remind you that during the call. We will be making forward looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed projected or implied during this call. In particular those described in our risk factors included in our annual report on Form 10-K for the year ended December 30.

<unk> 2024, and other documents filed with the SEC as well as the.

Current uncertainty and unpredictability in our business the markets in economy. Additional information will also be set forth in our quarterly report on Form 10-Q for the quarter ended June 32025, you should not rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of the date hereof.

And Aurora disclaims any obligation to update any forward looking statements, except as required by law.

Our discussion today may include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results information regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results may be found in our shareholder letter, which was furnished with our form 8-K filed today with the SEC and May all.

So be found on our Investor Relations website.

Our discussion today May also include reference to forward looking free cash flow.

non-GAAP financial measure to the extent that this forward looking financial measures provided is presented on a non-GAAP basis without a reconciliation due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation with that I'll now turn the call over to Kristen. Thanks Stacy.

The second quarter marked a pivotal moment in transportation history.

Aurora opened a new chapter with the launch of the first driverless commercial trucking operations on public roads in the U S.

From a commercial launch at the end of April through the end of June the Aurora driver already logged more than 20000 safe driverless miles.

And just last week, we completed the validation and began travels operation at night, which materially increases utilization potential of our self driving trucks.

This unlocks a game changing component of the road drivers value proposition this progress propels Aurora and the freight industry into a new era.

We're executing our crawl walk run approach to driverless operations, ensuring a seamless product experience that delivers undeniable value to our customers and deepen trust across our stakeholders.

We started with one truck and as earlier. This month now have three driverless trucks operating between Dallas and Houston.

During the second quarter, our driverless trucks had already driven the equivalent of more than eight coast to coast trips importantly, we've maintained nearly 100% on time performance operating critically with the flow of traffic, while upholding a perfect safety record.

And while we added a front seat observer at the request of our partner given certain prototype parts and their base vehicle is crucial to note that the real driver remains fully responsible for all driving tasks with no intervention is needed.

This performance continues to prove the advanced capabilities and safety of the Aurora driver.

To provide a window into this progress will be showcasing the Aurora driver in action. During this initial phase of our operations via Aurora driver live you can access the live stream via the link on page four of our presentation or via the live tab under on our Youtube channel at Aurora driver.

There youll see our driverless trucks traversing the route between Dallas, and Houston, demonstrating the safety reliability and growing maturity of the Aurora driver.

This special series builds on our commitment to industry, leading transparency offering a first of its kind a glimpse into the future of freight transportation.

As we continue to prove the promise of the road driver. We're now focused on increasing customer value to become an essential partner and the freight industry with validation of Knight Driverless operations. Just three months. After launch we're now operating driverless trucks day and night this more than doubles truck utilization potential checked.

The video on page, seven which showcases the Aurora drivers Super human perception and distinct safety advantage during night time operations.

With this core capability in place earlier than anticipated. Our team is now working to validate driverless operations in more challenging weather conditions by the end of the year.

And at that point, we expect the Aurora driver will be capable of handling almost all observed weather conditions in the sunbelt.

In addition, our land expansion plan remains on track, we expect to validate driverless operations between Fort worth in El Paso, and further extension of this length of Phoenix by the end of the year.

We opened our terminal in Phoenix in June and now have two customers.

<unk> and Hirschberg piloting autonomous trucking on the Fort Worth Phoenix Lane.

Notably <unk> is already leveraging our full network to maximize value for its operations with loads travelling from Houston to Dallas to a paso and onto Phoenix.

Self driving trucks have the potential to cut single driver transit time, and a half on the Fort worth Phoenix Route.

That exceeds hours of service limitations for traditional truck drivers.

This is a powerful use case that demonstrates how expanding driverless operations can unlock significant value for our free customers.

We've included a case study on page 10 of the presentation to quantify the significant revenue and profit growth at carrier could generate through the adoption of the Aurora driver on the Fort worth to Phoenix Lane.

Also note our terminal in Phoenix represents an infrastructure light approach with a design that closely resembles how aurora will integrate with future customer endpoints and optimized for speed to market. This.

This is an important evolution to enable our plan to deliver freight directly to customer endpoints.

With the Aurora driver now regularly pulling driverless loads for customers, we're operating from a fundamentally stronger position.

For years, we've been building relationships and educating partners about the promise of our technology today.

Today, we're no longer selling an idea we're delivering a real products that will ultimately transform our customers' businesses.

We're seeing qualified lead surge to support our scaling ambitions in 2026 and 2027.

We believe this reflects the growing recognition of <unk> leadership in autonomous trucking and the urgency our customers feel to integrate safer more efficient driverless trucks into their operations.

Our technology directly addresses structural challenges that plagued the freight industry, including an aging workforce systematic driver shortages hours of service constraints and rising labor costs, which were recently cited at approximately a dollar per mile by the American Transportation Research Institute.

By integrating the <unk> driver carriers and private fleets have the potential to supplement their traditional drivers to help more freight boosting revenue and expanding margins.

Our team is now working to validate driverless operations in more challenging weather conditions by the end of the year.

We believe this will also create new opportunities for their employees to advance in high growth careers. We are proactively building this future through workforce.

Future workforce through partnerships with organizations like on the road garage a leader in workforce development.

Together, we've launched an apprenticeship and upscaling initiatives designed to prepare technicians for the unique demands of autonomous vehicles trainees gain expertise in AAV terminal operations advanced diagnostics calibration and maintenance of complex systems like Lidar radar and redundant vehicle controls.

Chris Urmson: To maximize value for its operations with loads traveling from Houston to Dallas to El Paso and on to Phoenix. Self-driving trucks have the potential to cut single driver transit time in half on the Fort Worth-Phoenix route, a lane that exceeds hours of service limitations for traditional truck drivers. This is a powerful use case that demonstrates how expanding driverless operations can unlock significant value for our freight customers. We've included a case study on page 10 of the presentation to quantify the significant revenue and profit growth a carrier could generate through the adoption of the Aurora driver on the Fort Worth to Phoenix lane. Also note, our terminal in Phoenix represents an infrastructure light approach with a design that closely resembles how Aurora will integrate with future customer endpoints and optimize for speed to market.

To maximize value for its operations with loads. Traveling from Houston to Dallas to El Paso and on to Phoenix.

Self-driving trucks have the potential to cut single-driver transit time in half on the Fort Worth-Phoenix route.

Initiatives like this will create pathways to future ready careers and help support the long term operational demands autonomous freight.

A lane that exceeds hours of service limitations for traditional truck drivers.

Rising insurance costs, which have increased seven 5% annually over the last five years presented another structural challenge.

This is a powerful use case that demonstrates how expanding driverless operations can unlock significant value for our freight customers.

The prevalence of nuclear verdicts in the freight industry are a key contributor to this trend.

The Aurora driver offers a powerful way to Derisk operations in this environment. Your driver never gets distracted or fatigued and has superhuman capabilities with a 360 degree view of its surroundings and unlimited span of attention.

We've included a case study on page 10 of the presentation to quantify the significant revenue and profit growth at carrier, could generate through the adoption of the Aurora driver, on the Fort Worth to Phoenix Lane.

Furthermore, the Aurora drivers rich data can support more accurate fault attribution and accelerate claims resolution.

Chris Urmson: This is an important evolution to enable our plan to deliver freight directly to customer endpoints. With the Aurora driver now regularly pulling driverless loads for customers, we're operating from a fundamentally stronger position. For years, we've been building relationships and educating partners about the promise of our technology. Today, we're no longer selling an idea; we're delivering a real product that will ultimately transform our customers' businesses. We're seeing qualified leads surge to support our scaling ambitions in 2026 and 2027. We believe this reflects the growing recognition of Aurora's leadership in autonomous trucking and the urgency our customers feel to integrate safer, more efficient driverless trucks into their operations.

Also note that our terminal and Phoenix represent an infrastructure-light approach with a design that closely resembles how Aurora will integrate with future customer endpoints and optimize for speed to market.

This is an important Evolution to enable our plan to deliver Freight directly to customer end points.

We believe this will be groundbreaking for an industry grappling with persistently rising insurance costs and will pave the way for safer roads as well as a more resilient cost effective freight network.

With your Aurora driver. Now regularly pulling driverless loads for customers, we're operating from a fundamentally stronger position.

As we work to unlock these benefits for our customers. We continue to advance the key enablers that will support our path to scale and self funding.

For years, we've been building relationships and educating Partners about the promise of our technology.

Today we're no longer selling an idea. We're delivering a real product that will ultimately transform our customers businesses.

On the hardware front, our teams continue to work on our second and third generation commercial hardware kits to support our scaling and profitability ambitions.

We're seeing qualified leads surge to support our scaling Ambitions in 2026 and 2027.

We expect our second generation kit to drive a step function reduction in our hardware costs, which is a critical milestone on our path to self funding.

Chris Urmson: Our technology directly addresses structural challenges that plague the freight industry, including an aging workforce, systematic driver shortages, hours of service constraints, and rising labor costs, which were recently cited at approximately $1 per mile by the American Transportation Research Institute. By integrating the Aurora driver, carriers and private fleets have the potential to supplement their traditional drivers to haul more freight, boosting revenue and expanding margins. We believe this will also create new opportunities for their employees to advance in high-growth careers. We're proactively building this future workforce through partnerships with organizations like On the Road Garage, a leader in workforce development. Together, we've launched an apprenticeship and upskilling initiative designed to prepare technicians for the unique demands of autonomous vehicles. Trainees gain expertise in AV terminal operations, advanced diagnostics, calibration, and maintenance of complex systems like LIDAR, radar, and redundant vehicle controls.

We believe this reflects the growing recognition of Aurora's leadership in autonomous Trucking, and the urgency, our customers feel to integrate safer, more efficient, driverless trucks into their operations.

Following receipt of samples for testing from our contract manufacturer fabric that we have now completed the first vehicle builds with this prototype kits and will begin on road data collection for testing in the coming weeks.

We also continue to make great progress with continental and our third generation commercial hardware kit.

Our technology directly addresses. Structural challenges that plague the freight industry including an agent work force, systematic driver, shortages hours of service, constraints and Rising labor costs which were recently cited at approximately a dollar per mile by the American Transportation Research Institute.

We believe will unlock true scale on the order of tens of thousands of trucks.

As they highlighted at the recent capital markets day Continental is energized by our commercial launch and continues to believe this hardware as a service partnership can generate a high margin multibillion dollar recurring revenue stream for them.

By integrating the Aurora driver, carriers and private fleets have the potential to supplement their traditional drivers to halt more freight, boosting revenue and expanding margins.

They have begun delivering <unk> samples of our hardware.

Number of hardware components to support embedded firmware and software development and earlier this month the Aurora in Continental teams achieved a key milestone by finalizing the design of the integrated sensor pods and the Aurora driver compute module.

We believe this will also create new opportunities for their employees to advance. In high growth careers, we're proactively building this future through Workforce part, uh, uh, future Workforce through Partnerships with organizations like on the road garage a leader in Workforce Development.

Together, we've launched an apprenticeship and upskilling initiative designed to prepare technicians for the unique demands of autonomous vehicles.

We expect to receive our first complete prototypes of the continental generation hardware hit by the end of the year to begin engineering validation testing.

We also continue to make great progress with our OEM partners on purpose built self driving platforms designed for high volume production.

Chris Urmson: Initiatives like this will create pathways to future-ready careers and help support the long-term operational demands of autonomous freight. Rising insurance costs, which have increased 7.5% annually over the last five years, present another structural challenge. The prevalence of nuclear verdicts in the freight industry is a key contributor to this trend. The Aurora driver offers a powerful way to de-risk operations in this environment. The Aurora driver never gets distracted or fatigued and has superhuman capabilities with a 360-degree view of its surroundings and unlimited span of attention. Furthermore, the Aurora driver's rich data can support more accurate fault attribution and accelerate claims resolution. We believe this will be groundbreaking for an industry grappling with persistently rising insurance costs and will pave the way for safer roads as well as a more resilient, cost-effective freight network.

Trainees gain expertise in AV terminal operations, advanced diagnostics calibration, and maintenance of complex systems like LiDAR, radar, and redundant vehicle controls.

We recently received the latest pedigree of volatile P&L autonomous trucks and integrated the Aurora driver for on road autonomy testing in preparation for driverless operations.

Initiatives like this will create Pathways to Future. Ready careers and help support the long-term. Operational demands autonomous Freight.

We expect to receive 20 of these trucks by the end of the year.

Rising insurance costs have increased 7.5% annually over the last five years, presenting another structural challenge.

And <unk> recently completed the build of the first prototypes of their scalable autonomy enabled truck platform.

The prevalence of nuclear verdicts in the freight. Industry are a key contributor to this trend.

These trucks are now undergoing testing at their facilities.

The Aurora driver offers a powerful way to de-risk operations in this environment.

On the regulatory front earlier this month U S Representative Vince Fong of California introduced the America drives Act a landmark piece of legislation to establish a federal framework, specifically for self driving trucks.

Your road driver never gets distracted or fatigued and has superhuman capabilities with a 360 degree view of its surroundings and unlimited span of attention.

Furthermore, the Aurora driver's Rich data can support more accurate fault, attribution and accelerate claims resolution.

The legislation would provide federal preemption of any state laws, requiring a traditional driver in the commercial vehicle.

It would also modernize safety protocols by codifying that are flashing cab mounting wording beacon may be used instead of traditional warning devices like reflective triangles for disabled commercial vehicles.

We believe this will be groundbreaking for an industry grappling with persistently Rising Insurance costs and will pave the way for safer roads as well as a more resilient cost-effective Freight Network.

Chris Urmson: As we work to unlock these benefits for our customers, we continue to advance the key enablers that will support our path to scale and self-funding. On the hardware front, our teams continue to work on our second and third-generation commercial hardware kits to support our scaling and profitability ambitions. We expect our second-generation kit to drive a step-function reduction in our hardware costs, which is a critical milestone on our path to self-funding. Following receipt of B samples for testing from our contract manufacturer, Fabernet, we have now completed the first vehicle build with this prototype kit and will begin on-road data collection for testing in the coming weeks. We also continue to make great progress with Continental on our third-generation commercial hardware kit that we believe will unlock true scale on the order of tens of thousands of trucks.

This is consistent with our proposal.

We believe this proposed legislation will solidify the United States position as a leader in autonomous technology. We're encouraged by this momentum and we will continue to work with policymakers to help realize the <unk> safety and economic benefits of autonomous trucking.

With an already supportive regulatory backdrop, the combination of the Aurora driver in our partnerships creates a flywheel that delivers value across the entire ecosystem.

As you can see on page 13 of the presentation as our fleet grows it generates more data, which accelerates capability expansion and drives adoption.

Following receipt of B samples for testing from our contract manufacturer fabric. We have now completed the first vehicle build with this prototype kit and will begin on-road data collection for testing in the coming weeks.

Larger production volumes drive down the cost of self driving hardware, increasing profitability and further accelerate adoption.

Chris Urmson: As they highlighted at the recent Capital Markets Day, Continental is energized by our commercial launch and continues to believe this hardware-as-a-service partnership can generate a high-margin, multi-billion dollar recurring revenue stream for them. They have begun delivering A samples of a number of hardware components to support embedded firmware and software development. And earlier this month, the Aurora and Continental teams achieved a key milestone by finalizing the design of the integrated sensor pods and the Aurora driver compute module. We expect to receive our first complete prototype of the Continental generation hardware kit by the end of the year to begin engineering validation testing. We also continue to make great progress with our OEM partners on purpose-built self-driving platforms designed for high-volume production. We recently received the latest pedigree of Volvo VNL autonomous trucks and integrated the Aurora driver for on-road autonomy testing in preparation for driverless operations.

We also continue to make great progress with continental and our third generation commercial Hardware kit and we that we believe will unlock true scale on the order of tens of thousands of trucks.

Large fleets cover more of the road network, increasing the network benefit they provide thereby driving further adoption.

We completed the monumental task of turning the crank for the first time in that first turn is always the most difficult.

As they highlighted at the recent Capital Markets Day, Continental is energized by our commercial launch and continues to believe this hardware-as-a-service partnership can generate a high-margin, multi-billion dollar recurring revenue stream for them.

The full significance of our commercial launch will become abundantly clear as our progress accelerates with our powerful mutually reinforcing flywheels now in motion, we're confident with the progress, we're making will be difficult to replicate and will translate into significant long term value for the motoring public customers and our shareholders with that I will now.

Finalizing. The design of the integrated sensor pods. And the Aurora driver compute module,

Pass it to Dave who will review our financial results.

We expect to receive our first complete prototype of the Continental generation Hardware kit by the end of the year to begin engineering, validation testing.

Thank you, Chris let's discuss our financial results for which we have provided a summary on page 10 of the slide deck for reference.

We also continue to make great progress with our OEM Partners on purpose-built. Self-driving platforms designed, for high volume production.

With the launch of <unk> operations during the second quarter of 2025, we.

We began recognizing revenue, which totaled $1 million across driverless and vehicle operators supervised commercial loads for her spark Uber freight Warner Fedex Snyder and global autonomy solutions among others.

Chris Urmson: We expect to receive 20 of these trucks by the end of the year. And PACCAR recently completed the build of the first prototypes of their scalable autonomy-enabled truck platform. These trucks are now undergoing testing at their facilities. On the regulatory front, earlier this month, US Representative Vince Fong of California introduced the America Drives Act, a landmark piece of legislation to establish a federal framework specifically for self-driving trucks. The legislation would provide federal preemption of any state laws requiring a traditional driver in the commercial vehicle. It would also modernize safety protocols by codifying that a flashing cab-mounting warning beacon may be used instead of traditional warning devices like reflective triangles for disabled commercial vehicles. This is consistent with our proposal. We believe this proposed legislation will solidify the United States' position as a leader in autonomous technology.

We recently received the latest pedigree of Volvo vnl, autonomous trucks and integrated. The Aurora driver for on-road autonomy, testing in preparation for driverless operation,

We expect to receive 20 of these trucks by the end of the year.

And pack our recently completed the build of the first prototypes of their scalable autonomy enabled truck platform.

The Aurora driver achieved a record number of commercial miles driven during the quarter.

These trucks are now undergoing testing at their facilities.

Second quarter of 2025 operating loss, including stock based compensation totaled $230 million, excluding stock based comp of $55 million R&D.

On the regulatory front earlier this month, US Representative, Vince Fong of California introduced. The America drives Act

A landmark piece of legislation to establish a federal framework specifically for self-driving trucks.

R&D totaled $146 million.

SG&A was $25 million and cost of revenue was $5 million.

The legislation would provide Federal preemption of any state laws, requiring a traditional driver in the commercial vehicle.

We used approximately $144 million in operating cash during the second quarter.

Capital expenditures totaled $7 million. This cash spend was meaningfully below our externally communicated targets, reflecting continued strong fiscal discipline.

It would also modernize safety protocols by codifying that a flashing cap. Mounting wording Beacon. May be used instead of traditional warning devices, like reflective triangles for disabled commercial vehicles.

This is consistent with our proposal.

Chris Urmson: We're encouraged by this momentum and will continue to work with policymakers to help realize the immense safety and economic benefits of autonomous trucking. With an already supportive regulatory backdrop, the combination of the Aurora driver and our partnerships creates a flywheel that delivers value across the entire ecosystem. As you can see on page 13 of the presentation, as our fleet grows, it generates more data, which accelerates capability expansion and drives adoption. Larger production volumes drive down the cost of self-driving hardware, increasing profitability, and further accelerating adoption. Large fleets cover more of the road network, increasing the network benefit they provide, thereby driving further adoption. We completed the monumental task of turning the crank for the first time, and that first turn is always the most difficult. The full significance of our commercial launch will become abundantly clear as our progress accelerates.

During the second quarter, we issued 57 million shares of class a common stock through our at the market program for net proceeds of $331 million.

We believe this proposed legislation will solidify the United States position as a leader. In autonomous technology, we're this momentum and will continue to work with policy makers, to help realize the immense safety and economic benefits of autonomous Trucking.

We used $44 million of the net proceeds to fund the tax liability associated with the vesting of our employees restricted stock units during the second quarter.

With an already supportive regulatory backdrop, the combination of the Aurora driver and our Partnerships creates a flywheel that delivers value across the entire ecosystem.

In turn we ended the second quarter with a very strong balance sheet, including increased liquidity of $1 3 billion in cash and short term investments.

As you can see on page 13 of the presentation, as our Fleet, grows it, generates more data which accelerates capability expansion and drives adoption.

With this additional capital as well as efficiencies we found in the business and cash preservation decisions. We have made we now expect this liquidity to fund our operations into the second quarter of 2027.

Larger production volumes drive down the cost of self-driving hardware, increasing profitability and further accelerating adoption.

And our continued opportunistic approach to fund raising we are expanding our at the market program as it is proven to be an effective and efficient mechanism. The additional capacity can support future fundraising as well as funding of tax liabilities associated with the vesting of our employee our issues over time.

Large fleets cover more of the road Network, increasing the network benefit. They provide thereby driving further adoption. We completed the Monumental task of turning the crank for the first time. And that first turn is always the most difficult.

Chris Urmson: With our powerful, mutually reinforcing flywheels now in motion, we're confident that the progress we're making will be difficult to replicate and will translate into significant long-term value for the motoring public, customers, and our shareholders. With that, I'll now pass it to Dave for review of our financial results.

For the remainder of 2025, we continue to expect quarterly cash use of $175 million to $185 million on average. This reflects an increase in capital expenditures and continued development of our new hardware programs as we prepare to scale our business for the balance of the year, we will continue to.

The full significance of our commercial launch will become abundantly clear as our progress accelerates with our powerful mutually reinforcing flywheels. Now in motion, we're confident that the progress we're making, will be difficult to replicate and we'll translate into significant long-term value for the motoring public customers. And our shareholders with that, I'll now pass it today for review, our financial results.

David Maday: Thank you, Chris. Let's discuss our financial results, for which we have provided a summary on page 10 of the slide deck for reference. With the launch of driverless operations during the second quarter of 2025, we began recognizing revenue, which totaled $1 million across driverless and vehicle operator-supervised commercial loads for Hershbach, Uber Freight, Warner, FedEx, Schneider, and Volvo Autonomous Solutions, among others. The Aurora driver achieved a record number of commercial miles driven during the quarter. Second quarter of 2025, operating loss, including stock-based compensation, totaled $230 million, excluding stock-based comp of $55 million. R&D totaled $146 million. SG&A was $25 million, and cost of revenue was $5 million. We used approximately $144 million in operating cash during the second quarter. Capital expenditures totaled $7 million. This cash spend was meaningfully below our externally communicated target, reflecting continued strong fiscal discipline.

Thank you, Chris. Let's discuss our financial results for which we have provided a summary on page 10 of the slide deck for reference.

On expanding our driverless operations as well as key cost reduction levers.

With the launch of driverless operations during the second quarter of 2025.

To support achieving our initial scaling and profitability ambitions with that we'll now open the call to Q&A.

Thank you we will now conduct a question and answer session.

We began recognizing revenue, which totaled $1 million across driverless and vehicle operator. Supervised commercial loads for Herschbach, Uber Freight, Warner, FedEx, Schneider, and Volvo Autonomous Solutions, among others.

Like to ask a question. Please press star one on your telephone keypad.

The roar driver achieved a record number of commercial miles driven during the quarter.

<unk> tone will indicate your line is in our question queue you.

You May press star two to remove yourself from the queue.

Second quarter of 2025 operating loss, including stock-based compensation totaled, 230 million.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again Thats star one to ask a question at this time, one moment, while we poll for questions.

Scooting stock-based comp.

A 55 million R&D totaled, 146 million sgna, was 255 million, and cost of Revenue was $5 million.

Our first question comes from George <unk> of Canaccord Genuity. Please proceed.

We used approximately 144 million dollars in operating cash during the second quarter.

Hey, good afternoon, everyone and thank you for taking my questions.

I wanted to ask about the Volvo trucks.

The press release, you said, you expect to receive 20% of trucks.

David Maday: During the second quarter, we issued 57 million shares of Class A common stock through our at-the-market program for net proceeds of $331 million. We used $44 million of the net proceeds to fund the tax liability associated with the vesting of our employees' restricted stock units during the second quarter. In turn, we ended the second quarter with a very strong balance sheet, including increased liquidity of $1.3 billion in cash and short-term investments. With this additional capital, as well as efficiencies we found in the business and cash preservation decisions we have made, we now expect this liquidity to fund our operations into the second quarter of 2027. In our continued opportunistic approach to fundraising, we are expanding our at-the-market program as it has proven to be an effective and efficient mechanism.

Capital expenditures totaled, 7 million. This cash spend was meaningfully below our externally communicated Target, reflecting continued, strong, fiscal discipline.

By the end of the year do you expect to be operating those trucks and do you expect them to have an observer and then when they launch thank you.

during the second quarter, we issued 57 million shares of class a common stock, through our at the market program for net proceeds of 331 million,

Yes, Thanks George.

So yes, we expect those trucks to be here by the end of the year.

We're going to initially using those for development and bring up so no. We don't expect to be operating those without an observed by the end of the year.

We use 44 million of the net proceeds to fund the tax liability associated with the vesting of our employees restricted stock units during the second quarter.

We'll be we're continuing to work closely with Volvo.

And we'll wait for them to be comfortable announcing the timeline for us to launch initially with them Drybulk fleet.

In turn, we ended the second quarter with a very strong balance sheet, including increased liquidity of $1.3 billion in cash and short-term investments.

Thank you.

Just as a follow up on commercial momentum.

With this additional Capital as well as efficiencies we found in the business and cash preservation. Decisions. We have made. We now expect this liquidity to fund our operations into the second quarter of 20.

Since your launch.

Couple of few months ago have you seen additional incoming interest from other commercial partners that may be.

Shouldnt expanding their service with you or maybe even launching thank you.

David Maday: The additional capacity can support future fundraising as well as funding of tax liabilities associated with the vesting of our employee RSUs over time. For the remainder of 2025, we continue to expect quarterly cash use of $175 to $185 million on average. This reflects an increase in capital expenditures and continued development of our new hardware programs as we prepare to scale our business. For the balance of the year, we will continue to focus on expanding our driverless operations as well as key cost reduction levers to support achieving our initial scaling and profitability ambitions. With that, we'll now open the call to Q&A.

Yes, it's actually been really exciting I talked about it is we believe we've gone from selling the selling the promise and the belief into selling the real thing.

Low capacity can support future fundraising as well as funding of tax liabilities associated with the vesting of our employee RSU overtime.

And that's shown up in our sales funnel.

Having lots of exciting conversations with carriers and fleet operators.

And so we don't have more we can share today, but the excitement is real and I think people get.

The transformational impact this can have on their business, whether it's improving the safety of their fleet or improving both the bottom top line bottom line and top line. So yes, I think people get it.

For the remainder of 2025, we continue to expect quarterly cashews of 175 to 185 million on average. This reflects an increase in capital expenditures and continued development of our new hardware programs. As we prepare to scale our business for the balance of the year, we will continue to focus on expanding our driverless operations, as well as key cost reduction levers to support achieving our initial scaling and profitability ambitions with that.

Thanks.

Will now open the call to Q&A.

Operator: Thank you. We will now conduct a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in a question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one to ask a question at this time. One moment while we pull for questions. Our first question comes from George Yannickes at Canaccord Community. Please proceed.

The next question comes from Colin Rusch with Oppenheimer. Please proceed.

Thanks. So much you guys can you talk a little bit about the early returns around the wind and rain performance and how youre tracking and evolving that functionality.

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is on a question Q.

You may press star 2 to remove yourself from the queue.

What we can be looking at as you as you guys continue to work on that.

Okay.

Yes, Thanks Paul.

I think.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star Keys. Once again, that's star 1 to ask a question at this time, 1 moment while we pull for questions,

Candidly I think if we put you in the truck today driving in the rain you'd ask US why we haven't launched it yet right the operation and capability of it is very good.

Our first question comes from George yiannoukas canaccord kanu, please proceed.

George Gianarikas: Hi, good afternoon, everyone, and thank you for taking my questions. I wanted to ask about the Volvo trucks. In your press release, you said you expect to receive 20 of the trucks by the end of the year. Do you expect to be operating those trucks, and do you expect them to have an observer in them when they launch? Thank you.

Hi, good afternoon everyone and thank you for taking my questions.

Behaves well on the road and really it's about the fact that we just put safety first and foremost that we want to go through the process of really thoroughly validating.

Um,

I wanted to ask about the Volvo trucks. You know, in your press release, you said you expect to receive 20 of the trucks.

Refining anything that we identify through that validation process and just having the utmost confidence that when we declare something driverless and operated as such that I'd put my family out on the road and you'd feel comfortable with your family out on the road around it so it works well today.

By the end of the year, do you expect to be operating those trucks?

And, uh, do you expect them to have an observer in them when they launched? Thank you.

Chris Urmson: Yeah, thanks, George. So yes, we expect those trucks to be here by the end of the year. We're going to initially be using those for development and bring-up. So no, we don't expect to be operating those without an observer by the end of the year. We're continuing to work closely with Volvo, and we'll wait for them to be comfortable announcing the timeline for us to launch initially with them driverlessly.

Continuing to work towards timeframe, we've laid out by the end of the year.

And it's exciting to see the the.

Yeah, thanks George. Um, so yes we expect those trucks to be here by the end of the year. Uh we're going to initially be using those for development and bring up so. No, we don't expect to be operating those without an observer by the end of the year. Uh,

Crank that we've talked about this.

We'll be we're continue to work closely with Volvo. Uh,

Machine for validating and releasing software turning over and the way, we'd hoped and continuing to be able to do that faster and faster.

and we'll wait for them to be comfortable announcing the timeline for us to launch initially with them, uh, driverless

George Gianarikas: Thank you. And maybe just as a follow-up on commercial momentum, I mean, since your launch a few months ago, have you seen additional incoming interest from other commercial partners that may be interested in expanding their service with you or maybe even launching? Thank you.

Thanks, So much and then looking at the CW technology and the manufacturing of it can you talk a little bit about where you're at with yields.

Thank you. And maybe just as a follow-up on Commercial momentum, I mean, since your launch

With your manufacturing partners and how we should think about.

The potential gains for cost reduction on that as you guys get closer to a higher volume launch.

A couple of months ago, have you seen additional incoming interests from other commercial partners that may be interested in expanding their service with you or maybe even launching? Thank you.

Chris Urmson: Yeah, it's actually been really exciting. I talk about it as we've gone from selling the promise and the belief into selling the real thing. And that's shown up in our sales funnel. We're having lots of exciting conversations with carriers and fleet operators. And so we don't have more we can share today, but the excitement is real, and I think people get the transformational impact this can have on their business, whether it's improving the safety of their fleet or improving both their bottom line and top line. So yep, I think people get it.

Yes, so as we've talked about theirs.

We can talk about two different dimensions that so one is we see significant steps in cost as we move from.

Yeah, it's actually been really exciting. I, I talked about it is, you know, we we've gone from telling the pro selling the promise and the belief into selling the the real thing.

Building and manufacturing and assembling in house moving to.

<unk> our contract manufacturer and then moving to the hardware as a service partnership we have with continental.

And each one of those generations is going to drive discrete cost downs.

One of the Big reasons, why we're so excited about working with <unk>.

Continental for the long term, it's just they really understand how to deliver automotive quality hardware at scale on time.

And that's shown up in our sales funnel. Uh, we're having lots of exciting conversations with with carriers and, and Fleet operators. Uh, and so we we don't have more, we can share today, but the excitement is real, and I think people get, um, the transformational impact this can have on their business, whether it's improving the safety of their Fleet, or, you know, improving both their bottom top and line, uh, bottom line, and Top Line. So, yep. Uh, I think people get it.

George Gianarikas: Thanks.

Thanks.

Operator: The next question comes from Colin Rouge with Oppenheimer. Please proceed.

And do that with high quality yields and so that process is all moving along well the working relationship is strong and we feel very good about that in the specific case of the FMC W. Lidar.

The next question comes from Colin. Rouge with Oppenheimer? Please proceed.

George Gianarikas: Thanks so much, you guys. Can you talk a little bit about the early returns around the wind and rain performance and how you're tracking and evolving that functionality and what we can be looking at as you guys continue to work on that part of the business?

We've talked in the past about moving from discrete optical components, which is what our systems have today to lidar and a chip which is what we are bringing up already today and this is a place where we've been investing for the last several years.

Thanks so much. You guys can you talk a little bit about the the early returns around the the Wind and Rain uh, performance and and how you're you're tracking and evolving uh, that functionality, um, and what we can be looking at as you as you guys continue to work on that.

Chris Urmson: Yeah, thanks, Colin. I think just candidly, I think if we put you in the truck today driving in the rain, you'd ask us why we haven't launched it yet, right? The operation and capability of it is very good. You know, it behaves well on the road. And really, it's about the fact that we just put safety first and foremost, that we want to go through the process of really thoroughly validating, refining anything that we identify through that validation process and just having the utmost confidence that when we declare something driverless and operate it as such that I'd put my family out on the road and you'd feel comfortable with your family out on the road around it. So it works well today. We're continuing to work towards the timeframe we've laid out by the end of the year.

Yeah, thanks Paul. Um,

Not just in the design of the optics, but also in the.

Deposition process, the fab process to do this efficiently and effectively I don't have to yield numbers I can share today, but what I can tell you is that development programs on track and we see that as a meaningful cost down opportunity.

I think, uh, just candidly, I think if we put you in the truck today, driving in the rain, you'd asked us why we haven't launched it yet, right? The operation and capability of it is very good. Um, you know it behaves well on the road. Uh and really it's it's about the fact that we just put safety first and foremost that

In that in the first light technology.

Alright, thanks, so much guys.

Thanks for the question.

Our next question comes from Andres Sheppard with Cantor Fitzgerald. Please proceed.

Hello, everyone.

Congratulations on the quarter. Thanks, so much for taking my questions and congratulations on the first revenues.

Thank you.

Chris Urmson: And it's exciting to see the crank that we've talked about, this machine for validating and releasing software turning over in the way we'd hoped and continue to be able to do that faster and faster.

All right.

It's nice to have.

At least at our to go with our al It may not be a PEO.

It's only going to grow from here exactly.

Exactly right question.

Just a quick question on maybe the near term ramp up of trucks in operation. So you disclosed today you now have three boom trucks in operation.

We want to go through the process of really thoroughly validating, uh, refining, anything that we identify through that validation process and just having the utmost confidence that when we declare something driverless and operate it as such, that I'd put my family out on the road, and you'd feel comfortable with your family out on the road, around it. So, it works. Well today, uh, we're continuing to work, uh, towards the time frame. We've laid out by the end of the year, um, and it's exciting to see the, the, the crank that we've talked about this, this machine for validating and releasing software training over in the way. We'd hoped and continue to be able to do that, uh, faster and faster,

George Gianarikas: Thanks so much. And then looking at the FMCW technology and the manufacturing of it, can you talk a little bit about where you're at with yield with your manufacturing partners and how we should think about the potential cadence for cost reduction on that as you guys get closer to a higher volume launch?

As we get closer to year end and towards the tenths of truck. Just curious if you can give us a sense of how you're thinking about that.

Production on that. Uh, if you guys get closer to a higher volume launch,

Chris Urmson: Yeah, so as we've talked about, we can talk about two different dimensions of this. So one is we see significant steps in cost as we move from building and manufacturing and assembling in-house to moving to Fabernet as our contract manufacturer and then moving to the hardware-as-a-service partnership we have with Continental. And each one of those generations is going to drive discrete cost downs. One of the big reasons why we're so excited about working with Continental for the long term is just they really understand how to deliver automotive quality hardware at scale, on time, and do that with high-quality yields. And so that process is all moving along well. The working relationship is strong, and we feel very good about that.

Ramp up in terms of vehicles operational it and maybe Q3 and Q4, yes any color direction.

Yes.

We continue to follow our crawl walk run model and.

And right now just given the fleet size that we have we're balancing the growth of driverless operations with the bandwidth for development and testing that we want to really unlock.

The capabilities that enable.

The expansion across the Sunbelt next year and so as we said really this year is primarily focused on that capability expansion and unlock.

Proving out the process for releasing software rapidly as we believe we are starting to.

And making sure we're set up for scale next year. So it's really going to be driven by how do we maximize the probability of success on that that capability expansion point, well continue to build and grow traction with our customers.

Chris Urmson: In the specific case of the FMCW LIDAR, we've talked in the past about moving from discrete optical components, which is what our systems have today, to LIDAR on a chip, which is what we're bringing up already today. And this is a place where we've been investing for the last several years, not just in the design of the optics, but also in the deposition process, the fab process to do this efficiently and effectively. I don't have yield numbers I can share today, but what I can tell you is that development program's on track, and we see that as a meaningful cost-down opportunity in the first light technology.

Yeah, so as we've talked about there's uh we we can talk about 2 different dimensions of this. So 1 is we see significant steps in cost as we move from uh building and Manufacturing and assembling in-house to moving to uh, fabrin as our contract manufacturer and then moving to the the hardware as a service. Uh, partnership. We have with continental and each 1 of those Generations is going to drive discrete cost Downs, um, you know, 1 of the big reasons why we're so excited about working with, uh, Continental for the long term. It's just they really understand how to deliver Automotive Quality Hardware at scale on time. Um, and do that with with high-quality yields and so that process is all moving along. Well, the working relationship is strong and and we feel very good about that in the specific case of the fmcw lidar. Um, we've talked in the past about moving from

Davis this more you'd add to that.

That's right the only other thing I'd say Andreas it's like we're going to we're going to measure and try to report and think about our success of driving more in terms of mileage than it is in trucks because one of the things that we can do is obviously as we can operate now day and night on driverless, we can take one truck and operate it on multiple multiple.

Run throughout the day, so for US we want to build the mileage we want to build the proof.

Discrete Optical components which is what our systems have today to lidar on a chip, which is what we're bringing up already today. And this is a place where we've been investing for the last several years. Uh, not just in the the design of the Optics but also in the um uh deposition process, the Fab process to to do this efficiently and effectively. Uh I don't have yield numbers, I can share today.

Point and again 2025 is all about delivering the technology promise. So for US success is being able to operate in almost all conditions that you would see at the sunbelt and demonstrate that we are able to do that effectively.

But what I can tell you is that development programs are on track, and we see that as a meaningful cost-down opportunity in that, in the first slide, technology.

George Gianarikas: Great. Thanks so much, guys.

Chris Urmson: Thanks for the question.

Great. Thanks so much, guys.

Thanks for the question.

Operator: Our next question comes from Andrea Shepherd with Cantor Fitzgerald. Please proceed.

Got it that's super helpful. I. Appreciate you both Super helpful and maybe just a quick follow up I wanted to go back to the rain and heavy wind preparations, which is encouraging to hear that you feel comfortable enough that the vehicle could already do that today.

Our next question comes from Andrea Shepard with cancer. Fitzgerald, please proceed.

George Gianarikas: Hey, everyone. Congratulations on the quarter. Thanks so much for taking our questions in. Congratulations on the first revenues.

Hey everyone, uh, congratulations on the quarter. Thanks so much for taking our questions and congratulations on the first revenues.

Chris Urmson: Thank you. It's nice to have at least an R to go with our L. It may not be a P.

Without maybe getting too technical but just curious like what.

<unk> what differences.

George Gianarikas: It's only going to grow from here.

Um, thank you. It's nice to have a, a, you know, at least an R to go with RL. It may not be a p.

Rain and heavy wind like what lessons you have learned from that and ultimately what I'm getting at is this is maybe where the case of lidar.

Chris Urmson: Exactly right.

George Gianarikas: Just a question on maybe the near-term ramp-up of trucks in operation. So, right, you just closed today. You now have three, I believe, trucks in operation. As we get closer to year-end and towards the tents of trucks, just curious if you can give us a sense of how you're thinking about that ramp-up in terms of vehicles operational in maybe Q3 and Q4. Any color or direction there would be?

It becomes much more superior than the non liner. So just any color there any lessons learned I mean, what was that process like what is that process like.

Yes.

Yes, yes.

Like I said, it's not that I just want to be careful.

We are not ready to launch it rained today, but I think at some.

Chris Urmson: Yeah, we continue to follow our crawl, walk, run model. And right now, just given the fleet size that we have, we're balancing the growth of driverless operations with the bandwidth for development and testing that we want to really unlock the capabilities that enable the expansion across the Sun Belt next year. And so, as we said, really this year is primarily focused on that capability expansion and unlock, proving out the process for releasing software rapidly as we believe we're starting to, and making sure we're set up for scale next year. So it's really going to be driven by how do we maximize the probability of success on that capability expansion point while continuing to build and grow traction with our customers. I don't know, Davis, there's more you'd add to that.

It's only going to grow from here. Um, exactly, right. That's a question. Just a quick question on maybe the the near-term ramp up of uh trucks in operation. So right, you disclose today, you now have 3, I believe trucks in in in operation as we get closer to the year ends and towards the the 10th of trucks, just curious, if you can give us a sense of how you're thinking about that ramp up in terms of vehicles, operational and maybe Q3 and and Q4. Yeah, any color Direction. There will be

Writing in the truck you would wonder why.

Because if you got it in a truck today.

It would behave very similarly to the way that it does in the daylight or at night and that it would be super boring and just kind of drive down the road.

As we.

Areas, where we expect.

Are probably.

<unk>.

The kind of the most challenging things to both validated and ensure we're getting the forms particularly things like the same places that we've talked about in the past with.

Daytime driving so.

Pedestrians lying in the road.

Right it turns out that doesn't happen very often.

In fact, I don't think I've ever seen one in my driving lifetime.

But if it does we want to make sure we handle it well and appropriately and that was one of the last capabilities that we were able to get two ago with daytime and gradually more challenging at night and then you can imagine with rain, it's incrementally more challenging again.

George Gianarikas: No, I think that's right. The only other thing I'd say, Andreas, is like we're going to measure and try to report and think about our success of driving more in terms of mileage than it is in trucks because one of the things that we can do is obviously is we can operate now day and night on driverless. We can take one truck and operate it on multiple runs throughout a day. So for us, we want to build the mileage. We want to build the proof points. And again, 2025 is all about delivering the technology promise. So for us, success is being able to operate in almost all conditions that you'd see at the Sun Belt and demonstrate that we are able to do that effectively. Got it. That's super helpful. I appreciate you both. Super helpful. And maybe just a quick follow-up.

Yeah, we we continue to to follow our crawl, walk run model and and right now just given the the fleet size that we have, we're balancing the growth of uh driverless operations with the bandwidth for development and testing that we want to really unlock uh, the capabilities that enable uh, the the expansion across the Sunbelt next year. And so, as we said, really, this year is primarily focused on that capability expansion and unlock, uh, proving out the process for releasing software rapidly as we we believe we're starting to uh, and making sure we're set up for scale next year. So it's really going to be driven by, you know, how do we maximize the the probability of success on that, that capability expansion Point, uh, while continue to build and grow traction with our our customers? I don't know. Davis, that's more. You'd add to that. I know. I think it's I think that's right. The only other thing I'd say Andreas is like we're going to we're going to measure and and try to

You are right that when we operate.

In more challenging environments, whether it's in the rain or whether it's in dust.

Having a complementary set of sensors is very powerful.

Because they could each see through different conditions, they each give different kinds of data and we believe that's really an important aspect.

Of building, a robust and safe system and again, we're not really interesting building a thing that we can give a demo in.

Report and think about our successive driving more in terms of mileage than it is in trucks. Um, because you know, 1 of the things that we can do is uh, obviously as we can operate now day and night on driverless. We can take 1 truck in, operate it on multiple, uh, multiple runs throughout a day. So, for us, we want to build the mileage. We want to build the proof, uh, points, and again, 2025 is all about, delivering the technology promise. So, for us, success is being able to operate in almost all

Yes.

We're building a technology that ultimately will transform freight and transportation.

Conditions that you'd see at the Sun Belt and demonstrate that we are able to do that effectively.

Means it needs to work it needs to be able to turn your back trust it.

George Gianarikas: I wanted to go back to the rain and heavy wind preparations, which is encouraging to hear that you feel comfortable enough that the vehicle could already do that today. Without maybe getting too technical, but just curious, like what lessons, what differences, you know, rain and heavy wind, like what lessons you have learned from that? And ultimately, what I'm getting at is this is maybe where the case of LIDAR becomes much more superior than non-LIDAR. So just any color there, any lessons learned? I mean, what was that process like? What is that process like? And any progress that you can share?

And that's where the bar, we're holding to for further drivers releases that were putting out today.

Excellent that's super helpful. I really appreciate it. Thank you so much congrats again, we'll pass it on.

Got it. That's super helpful. I, I appreciate you both uh super helpful and maybe just um a quick follow-up. I I wanted to go back to the the rain and and heavy wind preparations which is encouraging to hear that, you know, you feel comfortable enough that the vehicle could already do that today.

Thank you.

Without maybe getting too technical, but just curious: what lessons? What differences?

Question comes from Ravi Shanker with Morgan Stanley. Please proceed.

Hi, everyone. Thanks for taking the question. This is Nancy on for Ravi Shanker.

You know, rain and and heavy winds, like what lessons you have learned from that. And ultimately, what I'm getting at is this is maybe where the case of lidar

Helpful to hear about other catalysts that for the third quarter and back half of the year, specifically the timing of that second route and next major milestones on your partnerships with both mobile and <unk>.

Chris Urmson: Yeah, yeah. And you know, like I said, it's not that I just want to be careful. We are not ready to launch in rain today, but I think as someone riding in the truck, you would wonder why, right? Because if you got in the truck today, it would behave very similarly to the way that it does in the daylight or at night, in that it would be super boring and just kind of drive down the road and walk. Areas where we expect are probably the kind of the most challenging things to both validate and ensure we're getting the performance, particularly things like the same places that we've talked about in the past with daytime driving. So, you know, pedestrians lying in the road, right? It turns out that doesn't happen very often. In fact, I don't think I've ever seen one in my driving lifetime.

Yeah, and I don't think we're going to provide.

More resolution that we have already.

What we're really pushing for through the end of the year is unlocking the ability so that in 2006 were able to rapidly enroll.

Routes across the Sun belt, and so by the end of the year, we hope to be able to operate in and we intend to be able to operate in.

What is that process like and and progress? Thanks, yeah, yeah. You know, like I said it's not that. I I just want to be careful. Uh, we are not ready to launch in rain today, uh, but I think it's a as someone riding in the truck you would wonder why uh, right because if you got in the truck today, it would behave very similarly to the way that it does in in the daylight or at night in that, it would be super boring and just kind of drive down the road and more.

uh,

As we?

Day and night in the rain, we intend to unlock.

Areas where we expect our, uh, probably, uh,

Fort worth to El Paso, El Paso to Phoenix from Fort worth of Phoenix as routes to do that Theres. Some discrete capabilities that we know we need we've talked in the past about the custom border patrol station, that's between El Paso and Fort worth.

the the kind of the most challenging things to both validate it and ensure, we're getting the performance particularly things like the, the same places that we we've talked about in the past with, uh,

That we handle autonomously today, but we will want to validate performance for that.

Chris Urmson: But if it does, we want to make sure we handle it well and appropriately. And that was one of the last capabilities that we were able to get to go with in daytime and incrementally more challenging at night. And you can imagine with rain, it's incrementally more challenging again. You're right that when we operate in more challenging environments, whether it's in the rain or whether it's in dust, that having a complementary set of sensors is very powerful because they can each see through different conditions. They each give different kinds of data. And we believe that's really an important aspect of building a robust and safe system. And again, we're not really interested in building a thing that we can give a demo in. We're building a technology that ultimately will transform freight and transportation. And that means it needs to work.

And then there is there is kind of surprising like little things.

Really from learning from our experience with customers. So for example for those of you arent deeply familiar on the freight space is a thing called a super single tire.

What that is is where instead of putting two tires in tandem on an actual you put one larger one that has various tradeoffs in economics and fuel efficiency and whatnot.

Daytime driving. So you know, pedestrians lying in the road. Uh, right, it turns out that doesn't happen very often. Uh, in fact, I don't think I've ever seen 1 in in my driving lifetime. Uh, but if it does we want to make sure we handle it. Well and appropriately. And that was 1 of the last capabilities that we were able to get to go with uh, a daytime and and gradually more challenging at night. And you can imagine with rain, it's incrementally more challenging again.

um, you're right that when we operate uh, in more challenging environments, whether it's uh in the rain or whether it's in dust,

And it turns out that.

We didn't really understand prior to launch that for some of our customers that was important we'd ask them and in fact, they've said.

That having a complementary set of sensors is very powerful.

Wasn't really.

But as we've been beginning to operate drivers we found out that it actually is more important.

And so part of what we'll be doing in the near future is finalizing the validation for what happens when we're running super single tires, and making sure in the case.

Uh, because they can each see through different conditions. They each give different kinds of data, uh, and we believe that's really an important aspect of building a robust and safe system. And and again, we we're not really interested in building a thing that we can give a demo in

Chris Urmson: It needs to be able to turn your back, trust it. And that's where the bar we're holding to for the driverless releases that we're putting out today.

Blow out a puncture that we can detect and respond to that appropriately.

And so it's great to be able to kind of both have a clear roadmap for where we're going and then because we have.

Uh, we're building a technology that ultimately will transform Freight and transportation and that means it needs to work. It needs to be able to turn your back, trust it. Uh, and that's where we're at the bar. We're holding to, for, for the driverless releases that we're putting out today.

George Gianarikas: Excellent. That's super helpful. I really appreciate it. Thank you so much. Congrats again. We'll pass it on.

Vehicles in operation.

We're able to get feedback from them.

Chris Urmson: Thank you. Thanks.

Excellent. That's super helpful. I really appreciate it. Uh, thank you so much. Congrats again, we'll pass it on.

Operator: The next question comes from Robbie Schenker with Morgan Stanley. Please proceed.

Customers and kind of tune the near term milestones so that we maximize the value for them.

Thank you, thanks.

The next question comes from Robbie Chancre with Morgan Stanley. Please proceed.

Nancy Hip: Hi, everyone. Thanks for taking the question. This is Nancy Hipp on for Robbie Schenker. It would be helpful to hear about other catalysts set for the third quarter and back half of the year, specifically the timing of that second route and next major milestones on your partnerships with both Volvo and PACCAR.

That's all really helpful. Thank you and then if I could squeeze in one more question it'd be helpful. If you could give us a little bit of insight into her relationship with Uber poster.

Poster of debt offering against your stake in some of their other autonomous autonomous.

How critical are they to deployment.

Hi everyone. Thanks for taking the question. This is Nancy hat on for Robbie chancre. Um, it would be helpful to hear about other catalysts that for the third quarter and back half of the Year. Specifically the timing of that second round. And um next major Milestones on your Partnerships with uh both Global and Packer.

Chris Urmson: Yeah, and I don't think we're going to provide more resolution than we have already. You know, what we're really pushing for through the end of the year is unlocking the ability so that in '26, we're able to rapidly unroll routes across the Sun Belt. And so by the end of the year, we hope to be able to operate in, and we intend to be able to operate in day and night in the rain. We intend to unlock the Fort Worth to El Paso, El Paso to Phoenix, and Fort Worth to Phoenix as routes. To do that, there's some discrete capabilities that we know we need. We've talked in the past about the custom border patrol station that's between El Paso and Fort Worth. That's a thing that we handle autonomously today, but we'll want to validate performance for that.

<unk> been a great partner and continues to be and as you know Dara has been on the board and we continue to have a close working personal relationship.

<unk> is focused on ride hailing and we're focused on trucking.

And so in the near term I think.

The importance there is kind of.

Relatively disconnected.

<unk> Uber freight is one of our pile.

Pilot customers, our large customers for <unk> operations, and we continue to work with them and continue to grow business there.

Over the long term.

We see the capability, we've built to safely operate vehicles on the public roads as something that will ultimately unlock.

Automated passenger vehicles as well and at some point, we'll engage in that space, but right now we're really focused on delivering the promise of trucking and building that business.

Chris Urmson: And then there's kind of surprising little things that are really from learning from our experience with customers. So, for example, for those of you who aren't deeply familiar in the freight space, there's a thing called a super single tire. And what that is, is where instead of putting two tires in tandem on an axle, you put one larger one that has various trade-offs and economics and fuel efficiency and whatnot. And it turns out that we didn't really understand prior to launch that for some of our customers that was important. We'd asked them, and in fact, they'd said it wasn't really. But as we've been beginning to operate driverlessly, we found out that it actually is more important.

Yeah, and and I don't think we're going to provide, uh, more resolution than we have already. You know, what we're really pushing for through the end of the year is unlocking the ability. So that in 26, we're able to rapidly unroll, uh, routes across the Sun Belt. And so, by the end of the year, we hope to be able to operate in. And we tend to be able to operate in, uh, day and night in the rain. We intend to unlock, uh, the Fort Worth to El Paso, El Paso to Phoenix and Fort Worth of Phoenix as routes to do that. There's some, you know, discreet capabilities that we, we know we need, we've talked in the past about the custom border patrol station, that's between, uh, El Paso and Fort Worth. That's a thing that we handle autonomously today, but we'll want to validate performance for that. Uh, and then there's there's kind of surprising like, little things uh, that are really from learning from our experience with customers. So, for example,

Okay, great. Thank you so much.

Thanks Nancy.

The next question comes from Chris <unk> with Needham. Please proceed.

Hey, good afternoon, thanks for taking the question.

Just for clarity.

For those of you who aren't deeply familiar with the freight space, there's a thing called a super single Tire. Uh, and what that is is where instead of putting 2 Tri tires in tandem, on an actual, you put 1 larger 1 that has, you know, various trade-offs and economics and fuel efficiency and whatnot.

And I'm not sure how much of this you can go into but on the <unk> earnings call. They talked about the importance of validated production in your letter and in your comments you talked about production on their end of prototype parts and the new trucks and you have a lot of medium there about your production with.

You are.

Chris Urmson: And so part of what we'll be doing in the near future is finalizing the validation for what happens when we're running super single tires and making sure in the case of a blowout or puncture that we can detect and respond to that appropriately. And so it's great to be able to kind of both have a clear roadmap for where we're going, and then because we have vehicles in operation, we're able to get feedback from them from customers and kind of tune the near-term milestones so that we maximally meet the value for them.

Contract manufacturing and with Continental.

How can you I guess I just wanted to get a sense of what how to think about this relationship is are these surprising to you are you pulling forward production. It is sort of everything is in line with how you expected as far as your production partners.

I guess kind of want to get a sense, if you could talk to that relationship and what the time production.

And it turns out that um, you know, we didn't really understand prior to launch that for some of our customers that was important we'd asked them and in fact they'd said it wasn't really um but as we've been beginning to operate drivers so we've we found out that it actually is more important. Uh and so part of what we'll be doing in in the near future is finalizing the validation for uh what happens when we're running super single tires and making sure in the case of a a blowout or puncture that we can detect and respond to that appropriately.

<unk>.

Yeah, well first let me begin by saying, we continue to really value the relationship we have with <unk>.

And continue.

To get to push forward in there and it's wonderful to see them moving forward.

Their autonomy enabled truck platform.

Uh, and so it's great to be able to kind of both have a clear road map for where we're going. And then, because we have, you know, vehicles in operation, we're able to get feedback from them, from customers, and kind of tune the near-term milestones so that we maximally meet the value for them.

I think the right way to think about this is there is a truck and there is a driver.

Nancy Hip: That's all really helpful. Thank you. And then if I could squeeze in one more question, it'd be helpful if you could give us a little bit of insight into your relationship with Uber post their debt offering against your stake and some of their other autonomous bets. How critical are they to deployment?

And we work with our OEM partners to specify and then they go and develop and design.

The platform the vehicle itself the truck and that has a variety of components in it.

Insight into your relationship with Uber, uh, post their debt offering against your stake and some of their other autonomous autonomous debts. Um, you know how critical are they to deployment?

Chris Urmson: Uber's been a great partner and continues to be. And as you know, Dara's been on the board, and we continue to have a close working personal relationship. Uber is focused on ride-hailing, and we're focused on trucking. And so in the near term, I think the importance there is kind of relatively disconnected. Of course, Uber Freight is one of our pilot customers, a launch customer for driverless operations, and we continue to work well with them and continue to grow business there. Over the long term, we see the capability we've built to safely operate vehicles on the public roads as something that will ultimately unlock automated passenger vehicles as well. And at some point, we'll engage in that space. But right now, we're really focused on delivering the promise of trucking and building that business.

And the vehicles, we're operating today.

Still have some prototype parts from our OEM partners in them.

In contrast, and in parallel with that.

Driver parts that we operate and our <unk>.

<unk>.

Sure.

The parts, we develop and build with fiber net and we will be building with continental are really around the development process of that driver on the driver of course works across multiple different Oems. So today, we work with <unk> and Volvo and the future of course, we hope to work with with other Oems as well and so that's maybe I apologize for the confusion if there is any there but.

We Uber's been a great partner and continues to be and as you know, Dar has been on the board and, you know, we continue to, to have a closed, uh, working personal relationship. Um, uh, Uber is focused on ride hailing and we're focused on Truckin. Uh, and so in the near term, I think that, you know, the, the, the importance there is kind of

We are tracking and supporting our OEM partners as they mature their platforms and then in parallel we are advancing the development of the Aurora driver and bringing that to production.

With the second generation coming online next year, and then working with continental to bring that third generation online in 'twenty seven.

Okay perfect. Thanks for the detail and then you try to hit on my next question you want to work with other OEM partners in the future. How do you see this autonomous trucking developing you see an OEM, having multiple autonomous partners and then the.

Relatively disconnected. Uh, of course, Uber Freight is 1 of our, uh, pilot customers, uh, a large customers for driverless operations and we continue to work with with them and uh, continue to grow business there, uh, over the long term. You know, we see the capability. We've built to safely operate vehicles in on the public roads as something that will ultimately unlock, uh, uh automated passenger vehicles as well. And at some point, we'll engage in that space. But right now, we're really focused on delivering the promise of trucking and building that business.

Nancy Hip: Okay, great. Thank you so much.

Okay, great. Thank you so much.

Chris Urmson: Thanks, Nancy.

Operator: The next question comes from Chris Pierce with Needham. Please proceed.

Thanks Nancy.

The next question comes from Chris Pierce with nem, please proceed.

George Gianarikas: Hey, good afternoon. Thanks for taking the question. Just for clarity, and I'm not sure how much of this you can go into, but on the PACCAR earnings call, they talked about the importance of validated production. In your letter and in your comments, you talked about production on their end of prototype parts in the new trucks, and you have a lot of media in there about your production with your contract manufacturer and with Continental. How can you, I guess I just want to get a sense of how to think about this relationship. And are these surprising to you? Are you pulling forward production? Is this sort of everything's in line with how you expected as far as your production partners? I just kind of want to get a sense if you could talk to that relationship and how you define production.

The logistics company customer makes the choice or do you see how do you see the business developing over time, given the industry. That's had a lot of dual sourcing from all sides.

Hey, good afternoon. Thanks for taking the question.

Yes, I think.

Our aspiration is to drive every truck that's out there.

And we will continue to advance as quickly and rapidly as we can to accomplish that by building the best technology, the best product to providing the best service for customers.

Um, just for clarity. And I'm not sure how much of this you can go into, but on the Paca earnings call, they talked about the importance of validated production. In your letter and in your comments, you discussed production on their end of prototype parts in their new trucks, and you have a lot of media in there about your production.

That said, it's a trillion dollar market.

And.

Everyone's going to want and hoped for.

Another comp another player in the space.

And we look forward to competing with them today Aurora is the only company in the world that can drive true.

Chris Urmson: Yeah. Well, first, let me begin by saying we continue to really value the relationship we have with PACCAR and continue to kind of push forward in there. And it's wonderful to see them moving forward their autonomy-enabled truck platform. I think the right way to think about this is there's a truck and there's a driver. And we work with our OEM partners to specify, and then they go and develop and design the platform, the vehicle itself, the truck. And that has a variety of components in it. And the vehicles we're operating today still have some prototype parts from our OEM partners in them. In contrast and in parallel with that, the driver parts that we operate and are building, the parts we develop and build with Fabernet and will be building with Continental are really around the development process of that driver.

Your your contract manufacturer and with Continental. Well, how can you I guess I just want to get a sense of what, how to think about this relationship and is are the are these surprising to you? Are you pulling forward production? Is this sort of everything's in line with how you expected as far as your production Partners, I just kind of want to get a sense if you could talk to that relationship and what how you have to find production?

<unk> on the road, a freeway speeds and do that safely.

Driver Leslie and will continue to accelerate based on the tools, we put in place to validate and released new software and we will welcome the competition when it gets there.

Okay. Thanks for everything.

The next question.

The next question comes from Doug <unk> with Evercore ISI. Please proceed.

Hey, Tim how are you congrats on the great quarter.

Wanted to first ask on the ramp from from the two trucks to the 10 plus by year end is the idea that each of those trucks has a dedicated customer whether theres customers with two or three year customers with one.

Now, we, well, first, let me Begin by saying we continue to really value the relationship we have with Pacar uh, and continue to, to kind of push forward in there and it's wonderful to see them moving forward. Uh, their autonomy and Abel truck, uh, platform. I think the right way to think about this is, there's a truck and there's a driver, uh, and we work with our OEM Partners to, uh, specify and then they go and and develop and design, uh, the platform, the vehicle itself, the truck and that has a variety of components in it.

And the vehicles were operating uh, today.

Uh, we still have some prototype parts from our OEM partners in them.

Or how is that rollout sort of happening.

Yes, thanks for the question, Doug So really.

We're going to us.

in contrast and in, in parallel, with that, uh, the driver parts that we operate, uh, in our building the part, we

I guess the short answer is no.

At this point, we don't really.

Tend to allocate a specific truck to a specific customer.

Chris Urmson: And the driver, of course, works across multiple different OEMs. So today we work with PACCAR and Volvo. In the future, of course, we hope to work with other OEMs as well. And so that's maybe, I apologize for the confusion if there is any there, but we're tracking and supporting our OEM partners as they mature their platforms. And then in parallel, we're advancing the development of the Aurora driver and bringing that to production with the second generation coming online next year and then working with Continental to bring that third generation online in '27.

We're going to provide the capability to move goods from AWP for the different customers and we will fill that need.

With truck as appropriate as we as we move forward.

Okay understood. That's helpful and then diving deeper on the math here. If you don't have to trucks on the road right now.

Per quarter running.

Each day 200 miles will call. It you've got about 60 days. So it's 12000 miles per quarter per truck is that the type of math that you would start to share in the future or that makes sense to sort of.

the parts we develop and build with fabrinet and we'll be building with Continental really around the development process of that driver. And the driver, of course Works across multiple different, oems. So today we work with Pacar and Volvo in the future. Of course, we hope to work with with other oems as well. And so that's maybe I apologize for the confusion if there is any there. But we're, you know, we're we're tracking and supporting our oil and partners as they mature their platforms and then in parallel we're advancing the development of the Aurora driver and bringing that to production, uh, with the second generation, uh, coming online next year, and then working with uh, content until to bring the that third generation online in 27,

George Gianarikas: Okay, perfect. Thanks for the detail. And then you sort of hit on my next question. You want to work with other OEM partners in the future. How do you see this autonomous trucking developing? Do you see an OEM having multiple autonomous partners and then the logistics company customer makes a choice, or do you see, how do you see the business developing over time, given this is an industry that's had a lot of dual sourcing from all sides?

Calculate the miles driven in the future.

Yes, I think.

It's David Doug Good to hear from you.

I think generally if you are.

We're talking about an individual lane, that's right, we kind of think about it a little bit differently. So if you think about it this way.

Daytime had like an eight hour restriction and we can driving range. So youre able to operate in a certain percentage of time in.

Chris Urmson: Yeah. Yeah, I think our aspiration is to drive every truck that's out there. And we'll continue to advance as quickly and rapidly as we can to accomplish that by building the best technology, the best product, and providing the best service for customers. That said, it's a trillion-dollar market, and everyone's going to want and hope for another player in the space. And we look forward to competing with them. Today, Aurora is the only company in the world that can drive trucks on the road at freeway speed and do that safely, driverlessly. And we'll continue to accelerate based on the tools we put in place to validate and release new software. And we'll welcome the competition when it gets there.

Okay, perfect. Thanks for the details. And then you sort of hit on my next question. You know, you want to work with other OEM Partners in the future. How do you see this autonomous Trucking, developing do you see an oem having multiple autonomous partners and then the, the logistics company customer makes a choice? Or do you see, how do you see the business developing over time? Give us an industry. That's had a lot of dual sourcing from all sides. Yeah.

For us when when the time was available and it wasn't raining, we do a round trip, which was like 400 miles.

For truck as we unlock night time, then you can kind of double that as you go to longer range. You can go even further.

It really is somewhat lane dependent and then youre capability dependent for US our focus has been on just bromine that drive less number of miles each quarter, which will continue to demonstrate and being able to technically operate in almost all of the conditions that are required for the sunbelt, so being able to exceed dollars of service being able to drive it.

Yeah, I I think you know, our aspiration is to drive every truck that's out there um and we'll continue to advance as quickly and rapidly as we can to accomplish that by building the best technology, the best product and providing the best service for customers. Uh that said it's a trillion dollar market. Um, and

Day, and night, and then rain and wind and I think at that point, then we'll start thinking more about like utilization, but we do expect that our trucks to have higher utilization than kind of the average.

Everyone's going to want and hope for uh another compet, you know, another player in the space. Uh, and we look forward to competing with them today, Aurora is the only company in the world that can drive trucks on the road at freeway speeds and do that safely. Uh, driverless and, you know, we'll continue to accelerate uh, based on the tools we put in place to validate and release new software and we'll welcome the competition when it gets there.

George Gianarikas: Okay. Thanks for everything.

Thanks for everything.

Operator: The next question comes from.

As soon as we're able to operate day and night and rain and so we'll continue to demonstrate that overall. So we do think mileage as opposed to trucks is really the right way to measure this.

Chris Urmson: Thank you.

Operator: The next question comes from Doug Dutton with Evocor ISI. Please proceed.

The next question. The next question comes from Doug Dutton with everco isi, please proceed.

Chris Urmson: Hey, team. How are you? Congrats on the great quarter. Just wanted to first ask, on the ramp from the two trucks to the 10-plus by year-end, is the idea that each of those trucks has a dedicated customer, whether there's customers with two or three or customers with one, or how is that rollout sort of happening? Yeah, thanks for the question, Doug. So really, we're going to, I guess the short answer is no. At this point, we don't really intend to allocate a specific truck to a specific customer. We're going to provide the capability to move goods from A to B for the different customers, and we'll fill that need with a truck as appropriate as we move forward. Okay, understood. That's helpful.

Of course, okay. Thank you for the helpful color there just trying to make sense of the model here I appreciate it guys.

Thank you.

The next question comes from Mark Delaney with Goldman Sachs. Please proceed.

Hey team, how are you congrats on the great quarter? Um, just wanted to first ask on the rant from from the 2 trucks to the 10 plus by year, end is the idea that each of those trucks has a dedicated customer whether there's customers with 2 or 3 or customers with 1 or or how is that roll out sort of happening?

Hi, Jamie.

And with Don for Mark Delaney.

Maybe going back to this.

Safety kind of observer in the vehicle.

Kind of what needs to happen for both Aurora and Packer to feel comfortable kind of removing that person and is there some sort of timeline that you can share on when you guys expect that to happen.

Yes from a <unk> perspective, we are comfortable today in that observers in the vehicle really out of respect and appreciation for our partnership with <unk>.

Yeah, uh, thanks for the question, Doug so really. Um, we're going to uh, I guess the short answer is no. Uh, at this point we don't really uh, intend to allocate a specific truck to a specific customer. Uh, we're going to provide the capability to move goods from A to B for the different customers, and we'll fill that need uh with a truck as appropriate, as we as we move forward.

Chris Urmson: And then diving deeper, just on the math here, if you have two trucks on the road right now, per quarter running each day 200 miles, we'll call it, you got about 60 days, so it's 12,000 miles per quarter per truck. Is that the type of math that you would start to share in the future or that makes sense to sort of calculate the miles driven in the future? Yeah, I think it's Dave, Doug. Good to hear from you. I think generally, you know, if you were talking about an individual lane, that's right. We kind of think about it a little bit differently. So if you think about it this way, you know, daytime had like an eight-hour restriction, and we can't drive in rain. So you're able to operate in a certain percentage of time.

With Pat car.

From hackers.

Let them speak for themselves, but I think what they have shared and what I can share is.

That it's really about their process and the fact that these trucks have prototype parts of them.

And so for them to ultimately bring these.

Okay, understood that's helpful and then diving deeper just on the math here. If you, you know, have 2 trucks on the road right now, per quarter running, you know, each day 200 miles, we'll call it. You got about 60 days so it's 12,000 miles per quarter per truck. Is that the type of math that you would start to share in the future or that that makes sense to sort of um you know calculate the miles driven in the future.

Trucks to production and operate them drivers flee we expect that to correlate with when they launch their autonomy enabled truck platform.

Understood. That's helpful and then maybe one on the financial side.

One of the slides quoted like a buck 84 per mile for cost with your system is that ballpark assumption for revenue and then.

Chris Urmson: And you know, for us, when the time was available and it wasn't raining, we'd do a round trip, which was like 400 miles for a truck. As we unlock nighttime, then you can kind of double that. As you go to longer lanes, you can go even further. It really is somewhat lane-dependent and then your capability-dependent. For us, our focus has been on just growing the driverless number of miles each quarter, which we'll continue to demonstrate, and being able to technically operate in almost all of the conditions that are required for the Sun Belt. So being able to exceed hours of service, being able to drive at day and night and in rain and in wind. And I think at that point, then we'll start thinking more about like utilization.

Does that kind of change if there is still the safety observer in the vehicle or as the ODT continues to expand does that get larger how should we think about that.

Yes.

<unk>.

So.

I think youre looking at the part which is the carrier perspective example, and that was really the focus on being able to drive.

Beyond the hours of service limitation that you normally add so from a revenue standpoint, we just kind of use the average revenue that was out there and then from a cost perspective, we used a lot of the <unk> data and then just provided some discounts for what we are able to provide it's not a a model specifically for our costs, but like generally speaking.

Yeah, I think, um, uh, it's Dave, uh, Doug. Um, good to hear from you. Uh, I I think like generally, you know, if you were talking about an individual Lane, that's right. We we kind of think about it a little bit, uh, differently. So if you think about it this way, um, you know daytime had like an 8 Hour restriction and we can't drive in rain. So you're you're able to operate in a certain percentage of time and you know, for us when when the time was available and it wasn't raining, we do a round trip which was like 400 miles uh for a truck. As we unlock nighttime, then you can kind of double that. As you go to longer Lanes, you can go even further. Uh, it really is somewhat Lane dependent and then your capability dependent for us, our Focus has been on just growing the driverless number of miles each quarter, which we will continue to demonstrate and being able to technically operate in almost all of the conditions that are required for the Sun Belt. So being able to exceed hours of service, being able to drive it day and night and in rain

Chris Urmson: But we do expect that our trucks to have higher utilization than kind of the average as soon as we're able to, you know, operate day and night and in rain. And so we'll continue to demonstrate that overall. So we do think mileage as opposed to trucks is really the right way to measure this. Of course. Okay. Thank you for the helpful color there. Just trying to make sense of the model here. Appreciate it, guys. You bet. Thank you.

We do expect that we are going to lower the cost of operations for our carriers, we're going to be able to do that in the near term.

Really based on fuel efficiency, we are getting really better fuel efficiency by driving this autonomous trucks, we will be able to do it on driver costs.

And in wind and I think at that point, then we'll start thinking more about like utilization, but we do expect that our trucks to have higher utilization, then kind of the average um as soon as we're able to, you know, operate day and night and then rain and so we'll continue to demonstrate that overall. So we do think mileage. Um, as opposed to trucks is is really the right way to measure this.

You think about driver costs do you think about like our indicative das price range, which we provided before and you look at the current driver costs on average which are now at roughly a one dollar per mile.

Of course. Okay thank you for the uh helpful color there uh just trying to make sense of the model here. Appreciate it guys.

You bet. Thank you.

Operator: The next question comes from Mark Delaney with Goldman Sachs. Please proceed.

The next question comes from Mark Delaney with Goldman Sachs, please proceed.

George Gianarikas: Hi, team. You have Emmanuel Dunn for Mark Delaney. Maybe going back to this safety kind of observer in the vehicle, kind of what needs to happen for both Aurora and PACCAR to feel comfortable kind of removing that person? And is there some sort of timeline that you can share on when you guys expect that to happen?

There is an opportunity for us to drive the Tcl benefit down but the other most important thing is it's the utilization. So it's the revenue side as well you are able to take a truck and generate more revenue on a daily and on an annual basis. So it's just a way to think about how to predict it I don't know that I would go and take those specific numbers in <unk>.

Any, um, made me going back to this.

Them into a model because that's very specific to an individually.

Chris Urmson: Yeah, from Aurora's perspective, we are comfortable today, and that observer is in the vehicle really out of respect and appreciation for our partnership with PACCAR. From PACCAR's, we'll let them speak for themselves, but I think what they've shared and what I can share is that it's really about their process and the fact that these trucks have prototype parts in them. And so for them to ultimately bring these trucks to production and operate them driverlessly, we expect that to correlate with when they launch their autonomy-enabled truck platform.

Uh, safety kind of observer in the the vehicle, it kind of what needs to happen for both the Aurora and and and park to feel comfortable kind of removing that person. And is there some sort of timeline that you can share on when you guys expect that to happen.

And just on.

And just around the part around the.

<unk> right.

Perry element.

And the cost frozen practices de Minimis right.

Running a small number of trucks.

It is what it is and it's just not that big a deal. It has no impact on our roadmap our plans for growth or anything.

Understood. Thank you for the color.

Cool.

The next question comes from Scott Group with Wolfe Research. Please proceed.

Yeah, from Aurora's perspective, we are comfortable today and that Observer is in the vehicle really out of respect and appreciation for our partnership with uh with Pat car uh from pitars. Uh we'll let them speak for themselves. But I think what they've shared and what I can share is uh, that it's really about their process and the fact that these trucks have uh prototype Parts in them. Uh and so for them to ultimately bring these Pro uh, trucks to production and and operate them driverle. We expect that to correlate with when they launched their autonomy enabled truck platform.

George Gianarikas: Understood. That's helpful. And then maybe one on the financial side, one of the slides quoted like a buck 84 per mile for cost with the Aurora system. Is that ballpark a good assumption for revenue? And then does that kind of change if there's still the safety observer in the vehicle, or as the ODD continues to expand, does that get larger? How should we think about that?

Hey, guys. This is coal on for Scott.

It's good to see progress with the next generation.

Of hardware in the press release.

Is there any way to frame up how we are progressing relative to your original expectations either from the fibernet perspective, or the continental generation.

Understood that that's helpful. And then uh maybe 1 on the financial side uh 1 of the slides quoted like a a buck 84 per mile for cost with the Aurora system is that ballpark a good assumption for revenue and then

Yes.

<unk>.

I guess at the high order that we haven't shifted our expectations.

Does that kind of change if there's still the the safety Observer and the vehicle? Or as the the odd continues to expand does that, you know, get larger. How should we think about that?

Chris Urmson: Yeah, I think so. I think you're looking at the part, which is the carrier perspective example, and that was really the focus on being able to drive beyond the hours of service limitation that you normally had. So from a revenue standpoint, we just kind of used the average revenue that was out there. And then from the cost perspective, we used a lot of the ATRI data and then just provided some discounts for what we are able to provide. It's not a model specifically for our cost, but like generally speaking, we do expect that we are going to lower the cost of operations for our carriers. We're going to be able to do that in the near term, really based on fuel efficiency. We are getting really better fuel efficiency by driving these autonomous trucks. We will be able to do it on driver cost.

Right I think we've been fairly consistent about talking about that second generation of hardware coming online in 'twenty six and the continental generation in the third generation hardware as a service.

Components coming online in 'twenty seven.

We're literally working with these systems on a daily basis.

The fact, we have the samples from <unk>.

Truck and we're in the process of bringing up.

<unk>.

Validation, there is really exciting and kind of aligned with.

What we would hope.

And then the.

Cartilage partnership with Continental is just moving forward.

Got through that.

The norming informing and were sold at the end of the storming phase of that partnership.

Okay. That's helpful and maybe just on the prototype trucks that you've called out.

Chris Urmson: You think about driver cost, you think about like our indicative DAS price range, which we provided before, and you look at the current driver costs on average, which are now at roughly a dollar per mile. Like there is an opportunity for us to drive the TCO benefit down. But the other most important thing is it's the utilization. So it's the revenue side as well. You're able to take a truck and generate more revenue on a daily and on an annual basis. So it's just a way to think about how to predict it. I don't know that I would go and take those specific numbers and put them into a model because that's very specific to an individual lane. And just around the part around the observer on board, right, this is both a temporary element and the cost for us in practice is de minimis.

Which hardware generation is going to go into those and maybe expand on how you see that actually playing out over the next 12 months.

Im sorry, I don't know that I, followed the question I apologize.

So.

With the prototype trucks that your OEM partners are delivering is this going to be the fabric that hardware going into that is it going to be.

What hardware is actually going to be in those trucks.

Yes.

Depending on exactly when and which truck some of it will be our existing first generation hardware, which we're using to do kind of bring up a validation of the interface. Some of it will be with the second generation hardware and some will ultimately have components are kits from the third generation cargo said, it's really.

We do expect that we are going to lower the cost of operations. For our carriers we're going to be able to do that in the near term. Um really based on fuel efficiency, we are getting really better fuel efficiency. Uh, by driving, this autonomous trucks, we will be able to do it on driver cost. Um, you think about driver cost, you think about, like our indicative Dash price range, uh, which we provided before? And you look at the current driver costs on average, which are now at roughly a dollar per mile. Like there is an opportunity for us to drive, the TCO benefit down. But the other most important thing is, it's the utilization. So it's the revenue side as well. You're able to take a truck and generate more revenue on a daily and on an annual basis. So, uh, it's just a way to think about how to, uh, predict it. I don't know that I would go and take those specific numbers and put them into a model because that's very specific to a an individual Lane.

Chris Urmson: Right? That we're running a small number of trucks. It is what it is, and it's just not that big a deal. It has no impact on our roadmap or plans for growth or anything.

And and just uh and just around the part around the um, Observer on board, right? This is both a temporary element uh and the cost for us in practices to minimize.

Driven by internal engineering execution and.

Right. You know, we're running a small number of trucks.

And need.

Okay. Thanks, I'll turn it back.

Thank you.

It is what it is, and it's just not that big a deal. It has no impact on our roadmap or plans for growth or anything.

George Gianarikas: Understood. Thank you for the caller.

Thank you ladies and gentlemen at this time. This does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a great day.

Minister. Thank you for the caller.

Chris Urmson: Cool.

Cool.

Operator: The next question comes from Scott Group with Wolf Research. Please proceed.

The next question comes from, Scott group with wolf research, please proceed.

Chris Urmson: Hey, guys. This is Cole on for Scott. It's good to see progress with the next generation of hardware in the press release. Is there any way to frame up how we're progressing relative to your original expectations, either from the Fabernet perspective or the Continental generation? Yeah, I guess at the high order that we haven't shifted our expectations. Right? I think we've been fairly consistent about talking about that second generation of hardware coming online in '26 and the Continental generation, the third generation hardware as a service components coming online in '27. We're literally working with these systems on a daily basis. The fact we have the samples from Fabernet in a truck and we're in the process of bringing up and validation there is really exciting and kind of aligned with what we would hope.

Hey guys, this is, uh, Cole on for Scott. Um, it's good to see progress with the Next Generation of hardware and the press release. Um, is there any way to frame up how we're progressing relative to your original expectations, either from the fabric perspective or the Continental generation?

Yeah. Uh,

I guess at the high order that we haven't shifted our expectations. Uh, right. I think we've been fairly consistent. I'm not talking about that second generation of hardware coming online in 2026 and the Continental generation. The third generation hardware is a service.

Chris Urmson: And then you know the partnership with Continental is just moving forward. You know we've got through the norming and forming, and we're solidly into the storming phase of that partnership. Okay, that's helpful. And maybe just on the prototype trucks that you've called out, which hardware generation is going to go into those and maybe expand on how you see that actually playing out over the next 12 months? I'm sorry, I don't know that I followed the question. I apologize. So with the prototype trucks that your OEM partners are delivering, is this going to be the Fabernet hardware going into it? Is it going to be what hardware is actually going to be in those trucks?

Uh, components coming online in Q2 2025. Uh, we're literally, uh, working with these systems on a daily basis. Uh, the fact we have the samples from Fabrinet, uh, in a truck and we're in the process of bringing up and, uh, and validation. There is really exciting and kind of aligned with, uh, what we would hope. Uh, and then, you know, the car partnership with Continental is just moving forward. Um, you know, we've got through the norming and forming and we're solidly into the storming phase of that partnership.

Ship.

Okay, that's helpful. And maybe just on the prototype trucks that you've called out, which hardware generation is going to go into those? And maybe expand on how you see that actually playing out over the next 12 months?

I'm sorry, I don't know that. I followed the question, I apologize.

Chris Urmson: Yeah, you know depending on exactly when and which truck, some of it will be our existing first-generation hardware, which we're using to do kind of bring up a validation of the interface. Some of it will be with the second-generation hardware, and some will ultimately have components or kits from the third-generation hardware set. It's really driven by internal engineering execution and need. Okay, thanks. I'll turn it back. Thank you.

So in the with the Prototype trucks, that your OEM partners are delivering, is this going to be the fabric Hardware going into the? Is it going to be like what Hardware is actually going to be in those trucks?

Yeah. It you know, depending on exactly when and which truck some of it will be our existing first generation Hardware which we're using to do kind of bring up and validation of the interface. Some of it will be with the second generation hardware and some will ultimately have components or kits from the the third generation Hardware set. It it it's really, you know, driven by internal engineering execution and uh and and need

Okay. Thanks, I'll turn it back.

Thank you.

Operator: Thank you. Ladies and gentlemen, at this time, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

Thank you, ladies and gentlemen. At this time, this does conclude today's teleconference. You may disconnect your lines this time. Thank you for your participation and have a great day.