Q2 2026 Amprius Technologies Inc Earnings Call & Business Updates

August 5, 2026

Speaker #1: Good morning. Welcome to the Amprius Technologies second quarter 2026 earnings conference call. Joining us for today's presentation are the company's CEO, Tom Stepien, and CFO, Ricardo Rodriguez.

Rachel Smith: Good morning. Welcome to the Amprius Technologies Q2 2026 earnings conference call. Joining us for today's presentation are the company's CEO, Tom Stepien, and CFO, Ricardo Rodriguez. At this time, all participants are in listen-only mode. Following management's remarks, we will open the call for questions. Please note that this presentation contains forward-looking statements, including, but not limited to, statements regarding the company's financial and business performance, business strategy, future product development or commercialization, new customer adoption and new applications, the company's growth and the growth of the markets in which it operates, and the timing and ability of Amprius to expand its manufacturing capacity, scale its business, and achieve a sustainable cost structure.

Operator: Good morning. Welcome to the Amprius Technologies Q2 2026 earnings conference call. Joining us for today's presentation are the company's CEO, Tom Stepien, and CFO, Ricardo Rodriguez. At this time, all participants are in listen-only mode. Following management's remarks, we will open the call for questions. Please note that this presentation contains forward-looking statements, including, but not limited to, statements regarding the company's financial and business performance, business strategy, future product development or commercialization, new customer adoption and new applications, the company's growth and the growth of the markets in which it operates, and the timing and ability of Amprius to expand its manufacturing capacity, scale its business, and achieve a sustainable cost structure.

Speaker #1: At this time, all participants are in listen-only mode. Following management's remarks, we will open the call for questions. Please note that this presentation contains forward-looking statements, including but not limited to statements regarding the company's financial and business performance, business strategy, future product development or commercialization, new customer adoption and new applications, the company's growth, and the growth of the markets in which it operates, and the timing and ability of Amprius to expand its manufacturing capacity, scale its business, and achieve a sustainable cost structure.

Speaker #1: These statements involve known and unknown risks, uncertainties, and other important factors, and may cause Amprius's results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.

Rachel Smith: These statements involve known and unknown risks, uncertainties, and other important factors that may cause Amprius' results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. For a more complete discussion of these risks and uncertainties, please refer to the Amprius' filings with the Securities and Exchange Commission. This presentation includes a non-GAAP financial measure, which is adjusted EBITDA. This non-GAAP financial measure does not replace the presentation of Amprius's GAAP financial results and should only be used as a supplement to, not a substitute for, Amprius's financial results presented in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Operator: These statements involve known and unknown risks, uncertainties, and other important factors that may cause Amprius' results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. For a more complete discussion of these risks and uncertainties, please refer to the Amprius' filings with the Securities and Exchange Commission. This presentation includes a non-GAAP financial measure, which is adjusted EBITDA. This non-GAAP financial measure does not replace the presentation of Amprius's GAAP financial results and should only be used as a supplement to, not a substitute for, Amprius's financial results presented in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Speaker #1: For a more complete discussion of these risks and uncertainties, please refer to the Amprius's filings with the Securities and Exchange Commission. This presentation includes a non-GAAP financial measure, which is adjusted EBITDA.

Speaker #1: This non-GAAP financial measure does not replace the presentation of Amprius's GAAP financial results and should only be used as a supplement to, not a substitute for, Amprius's financial results presented in accordance with GAAP. It may not be comparable to calculations of similarly titled measures by other companies.

Speaker #1: A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is included in our press release. A copy of which is filed with the SEC and posted on our website.

Rachel Smith: A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is included in our press release, a copy of which is filed with the SEC and posted on our website. Finally, I would like to remind everyone that this conference call is being webcast. A recording will be made available for replay on the company's investor relations website at ir.amprius.com. In addition to the webcast, the company has also posted a press release that accompanies these results, which can also be found on the Amprius investor relations website. Before turning the call over to management, I want to highlight a few near-term IR events. Amprius will be attending the Canaccord Conference and partaking in the UBS Energy Transition Call Series next week. The team will also be attending the H.C. Wainwright Conference and the Evercore ADAS, AV, and AI Forum in September.

Operator: A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is included in our press release, a copy of which is filed with the SEC and posted on our website. Finally, I would like to remind everyone that this conference call is being webcast. A recording will be made available for replay on the company's investor relations website at ir.amprius.com. In addition to the webcast, the company has also posted a press release that accompanies these results, which can also be found on the Amprius investor relations website. Before turning the call over to management, I want to highlight a few near-term IR events. Amprius will be attending the Canaccord Conference and partaking in the UBS Energy Transition Call Series next week. The team will also be attending the H.C. Wainwright Conference and the Evercore ADAS, AV, and AI Forum in September.

Speaker #1: Finally, I would like to remind everyone that this conference call is being webcast. A recording will be made available for replay on the company's investor relations website at ir.amprius.com.

Speaker #1: In addition to the webcast, the company is also posted a press release that accompanies these results, which can also be found on the Amprius investor relations website.

Speaker #1: Before turning the call over to management, I want to highlight a few near-term IR events. Amprius will be attending the Canaccord Conference and partaking in the UBS Energy Transition Call Series next week.

Speaker #1: The team will also be attending the HC Wainwright Conference and the Evercore ADAS, AV, and AI Forum in September. We hope to connect with many of you at these upcoming events.

Rachel Smith: We hope to connect with many of you at these upcoming events. I will now turn the call over to Amprius Technologies' CEO, Tom Stepien, for his comments. Sir, please proceed.

Operator: We hope to connect with many of you at these upcoming events. I will now turn the call over to Amprius Technologies' CEO, Tom Stepien, for his comments. Sir, please proceed.

Speaker #1: I will now turn the call over to Amprius Technologies' CEO, Tom Stepien, for his comments. Sir, please proceed.

Speaker #2: Welcome, everyone, and thank you for joining us this morning. I'm pleased to report that Amprius continues to experience robust demand for our energy-dense silicon anode lithium-ion batteries and, in the second quarter of 2026, we achieved another record revenue, as we show on slide 3.

Thomas Stepien: Welcome, everyone, and thank you for joining us this morning. I'm pleased to report that Amprius continues to experience robust demand for our energy-dense silicon anode lithium-ion batteries. In the Q2 2026, we achieved another record revenue as we show on slide three. We believe the characteristics of our cells make them a particularly strong fit for one of the fastest-growing markets in the world, battery-powered unmanned aerial vehicles, UAVs, also known as drones. Our second-generation SiCore silicon anode battery continues to gain broad adoption for drones and other applications. Given the strong quarter and promising new business, we have the confidence to increase our 2026 revenue forecast for the Q2 consecutive quarter. Anyone who reads the news understands that low-cost drones are playing an asymmetric role in military conflicts around the world, changing the nature of modern warfare.

Tom Stepien: Welcome, everyone, and thank you for joining us this morning. I'm pleased to report that Amprius continues to experience robust demand for our energy-dense silicon anode lithium-ion batteries. In the Q2 2026, we achieved another record revenue as we show on slide three. We believe the characteristics of our cells make them a particularly strong fit for one of the fastest-growing markets in the world, battery-powered unmanned aerial vehicles, UAVs, also known as drones. Our second-generation SiCore silicon anode battery continues to gain broad adoption for drones and other applications. Given the strong quarter and promising new business, we have the confidence to increase our 2026 revenue forecast for the Q2 consecutive quarter. Anyone who reads the news understands that low-cost drones are playing an asymmetric role in military conflicts around the world, changing the nature of modern warfare.

Speaker #2: We believe the characteristics of ourselves make them a particularly strong fit for one of the fastest-growing markets in the world: battery-powered unmanned aerial vehicles.

Speaker #2: UAVs, also known as drones. Our second-generation Sidecor silicon anode battery continues to gain broad adoption for drones and other applications. Given the strong quarter and promising new business, we have the confidence to increase our 2026 revenue forecast for the second consecutive quarter.

Speaker #2: Anyone who reads the news understands that low-cost drones are playing an asymmetric role in military conflicts around the world, changing the nature of modern warfare.

Speaker #2: As Barron's Magazine recently reported, inexpensive drones are "upending the defense sector," we believe that this has been made possible in no small measure by the availability of high-performance batteries like those produced by Amprius.

Thomas Stepien: As Barron's magazine recently reported, inexpensive drones are upending the defense sector. We believe that this has been made possible in no small measure by the availability of high-performance batteries like those produced by Amprius. As you are likely aware, the Trump administration's proposed fiscal 2027 defense budget calls for more than $50 billion in outlays for the Defense Autonomous Warfare Group, an arm of the Department of War focused on drones and related hardware. The specific ask is for a 24,000% year-over-year increase. While the US Congress has yet to pass the 2027 spending authorization, and the actual budget might be smaller than the original request, it is nonetheless clear that The Pentagon will be making a major and growing outlay for autonomous capabilities for years to come. Our current contract with the Defense Innovation Unit gives us a front-row seat in this arena.

Tom Stepien: As Barron's magazine recently reported, inexpensive drones are upending the defense sector. We believe that this has been made possible in no small measure by the availability of high-performance batteries like those produced by Amprius. As you are likely aware, the Trump administration's proposed fiscal 2027 defense budget calls for more than $50 billion in outlays for the Defense Autonomous Warfare Group, an arm of the Department of War focused on drones and related hardware. The specific ask is for a 24,000% year-over-year increase. While the US Congress has yet to pass the 2027 spending authorization, and the actual budget might be smaller than the original request, it is nonetheless clear that The Pentagon will be making a major and growing outlay for autonomous capabilities for years to come. Our current contract with the Defense Innovation Unit gives us a front-row seat in this arena.

Speaker #2: As you are likely aware, the Trump administration's proposed fiscal 2027 defense budget calls for more than $50 billion in outlays for the Defense Autonomous Warfare Group, an arm of the Department of War focused on drones and related hardware.

Speaker #2: The specific ask is for 24,000% year-over-year increase. While the U.S. Congress has yet to pass the 2027 spending authorization, and the actual budget might be smaller, then the original request it is nonetheless clear that the Pentagon will be making a major and growing outlay for autonomous capabilities for years to come.

Speaker #2: Our current contract with the Defense Innovation Unit gives us a front-row seat in this arena. This is good news for Amprius, our customers and partners, and for our shareholders.

Thomas Stepien: This is good news for Amprius, our customers and partners, and for our shareholders. While we expect that the budget details will be sorted out in the months ahead, there are other positive signs from the defense sector for Amprius. For instance, the Department of War's Drone Dominance program has invited 19 drone manufacturers to a competitive demonstration event at Fort Carson, Colorado, later this month. Half of the participants are using Amprius cells, and we have had at least initial conversations with the rest. The Department of War has said that at the completion of the Colorado event, it will place orders for 60,000 drones from the top performers. This is one more indication that the opportunity in military UAVs is in its early stages.

Tom Stepien: This is good news for Amprius, our customers and partners, and for our shareholders. While we expect that the budget details will be sorted out in the months ahead, there are other positive signs from the defense sector for Amprius. For instance, the Department of War's Drone Dominance program has invited 19 drone manufacturers to a competitive demonstration event at Fort Carson, Colorado, later this month. Half of the participants are using Amprius cells, and we have had at least initial conversations with the rest. The Department of War has said that at the completion of the Colorado event, it will place orders for 60,000 drones from the top performers. This is one more indication that the opportunity in military UAVs is in its early stages.

Speaker #2: While we expect that the budget details will be sorted out in the months ahead, there are other positive signs from the defense sector for Amprius.

Speaker #2: For instance, the Department of War's drone dominance program has invited 19 drone manufacturers to a competitive demonstration event at Fort Carson, Colorado, later this month.

Speaker #2: Half of the participants are using Amprius cells. And we have had at least initial conversations with the rest. The Department of War has said that at the completion of the Colorado event, it will place orders for 60,000 drones from the top performers.

Speaker #2: This is one more indication that the opportunity in military UAVs is in its early stages. You may recall that our contract with the Defense Innovation Unit to develop and scale national defense authorization act, NDAA, compliance silicon anode battery cells was increased for a third time in the March quarter, and now totals 18.1 million.

Thomas Stepien: You may recall that our contract with the Defense Innovation Unit to develop and scale National Defense Authorization Act, NDAA, compliant silicon anode battery cells was increased for a third time in the Q1 and now totals $18.1 million. This funding supports expansion of a pilot line at our headquarters in Fremont, California. I'm happy to report that we now have received nearly half of the equipment required for the pilot line, which is undergoing installation. The remaining equipment is scheduled to arrive later this month and in September, with production expected to begin in December 2026. Our opportunity in military drones goes beyond US borders. I'm happy to report that we've received a $24 million order from a new European customer, a drone manufacturer that uses our SA124 SiCore cylindrical cells.

Tom Stepien: You may recall that our contract with the Defense Innovation Unit to develop and scale National Defense Authorization Act, NDAA, compliant silicon anode battery cells was increased for a third time in the Q1 and now totals $18.1 million. This funding supports expansion of a pilot line at our headquarters in Fremont, California. I'm happy to report that we now have received nearly half of the equipment required for the pilot line, which is undergoing installation. The remaining equipment is scheduled to arrive later this month and in September, with production expected to begin in December 2026. Our opportunity in military drones goes beyond US borders. I'm happy to report that we've received a $24 million order from a new European customer, a drone manufacturer that uses our SA124 SiCore cylindrical cells.

Speaker #2: This funding supports expansion of a pilot line at our headquarters in Fremont, California. I'm happy to report that we now have received nearly half of the equipment required for the pilot line, which is undergoing installation.

Speaker #2: The remaining equipment is scheduled to arrive later this month and in September, with production expected to begin in December 2026. Our opportunity in military drones goes beyond U.S.

Speaker #2: borders. I'm happy to report that we've received a 24 million order from a new European customer, a drone manufacturer that uses our SA-124 Sidecor cylindrical cells.

Speaker #2: We started to deliver our batteries to this customer in Q2, and will continue to do so for the next three quarters. We're excited about this opportunity and expect to have more to talk about on this topic in the months ahead.

Thomas Stepien: We started to deliver our batteries to this customer in Q2 and will continue to do so for the next three quarters. We're excited about this opportunity and expect to have more to talk about on this topic in the months ahead. I also want to report some recent news from our customer, Redwire, a leading aerospace and defense technology company providing space infrastructure, autonomous systems, and mission-critical solutions for the commercial, civil, and national security customers worldwide. Redwire first purchased our high energy density batteries in 2024. We're happy to see that their demand is growing. Redwire recently announced more than $40 million in purchase orders from the US Marine Corps for the Stalker Block 30, a Group 2 drone designed for long-range reconnaissance. Stalker excels in missions where long duration is critical, and that's exactly what our SiCore cells enable. We look forward to Redwire's continued success.

Tom Stepien: We started to deliver our batteries to this customer in Q2 and will continue to do so for the next three quarters. We're excited about this opportunity and expect to have more to talk about on this topic in the months ahead. I also want to report some recent news from our customer, Redwire, a leading aerospace and defense technology company providing space infrastructure, autonomous systems, and mission-critical solutions for the commercial, civil, and national security customers worldwide. Redwire first purchased our high energy density batteries in 2024. We're happy to see that their demand is growing. Redwire recently announced more than $40 million in purchase orders from the US Marine Corps for the Stalker Block 30, a Group 2 drone designed for long-range reconnaissance. Stalker excels in missions where long duration is critical, and that's exactly what our SiCore cells enable. We look forward to Redwire's continued success.

Speaker #2: I also want to report some recent news from our customer Redwire. A leading aerospace and defense technology company providing space infrastructure, autonomous systems, and mission-critical solutions for the commercial, civil, and national security customers worldwide.

Speaker #2: Redwire first purchased our high-energy density batteries in 2024. We're happy to see that their demand is growing. Redwire recently announced more than 40 million in purchase orders from the U.S.

Speaker #2: Marine Corps for the Stalker Block 30, a Group 2 drone designed for long-range reconnaissance. Stalker excels in missions where long-durance is critical, and that's exactly what our Sidecor cells enable.

Speaker #2: We look forward to Redwire's continued success. While we are excited about the rapid adoption of drones in the defense industry, we also continue to see substantial opportunities for commercial drones.

Thomas Stepien: While we are excited about the rapid adoption of drones in the defense industry, we also continue to see substantial opportunities for commercial drones. In May, you may remember, we announced an agreement to provide high-density silicon anode cells to Matternet, the world's only FAA-type certified drone delivery platform. Amprius' silicon anode cells deliver up to twice the energy density of conventional graphite-based batteries, a critical advantage in aviation where low battery weight and high energy density directly improve aircraft range, payload, and economics. Drones, both military and commercial, are a big part of the Amprius story, but they are not our only strategically important end market. Earlier this year, we announced a $21 million order from our premier electric mobility customer in China to power a suite of light electric vehicles, including scooters, three-wheelers, and motorcycles. Today, I'm excited to tell you about a new e-mobility customer win.

Tom Stepien: While we are excited about the rapid adoption of drones in the defense industry, we also continue to see substantial opportunities for commercial drones. In May, you may remember, we announced an agreement to provide high-density silicon anode cells to Matternet, the world's only FAA-type certified drone delivery platform. Amprius' silicon anode cells deliver up to twice the energy density of conventional graphite-based batteries, a critical advantage in aviation where low battery weight and high energy density directly improve aircraft range, payload, and economics. Drones, both military and commercial, are a big part of the Amprius story, but they are not our only strategically important end market. Earlier this year, we announced a $21 million order from our premier electric mobility customer in China to power a suite of light electric vehicles, including scooters, three-wheelers, and motorcycles. Today, I'm excited to tell you about a new e-mobility customer win.

Speaker #2: In May, you may remember, we announced an agreement to provide high-density silicon anode cells to MatterNet, the world's only FAA-type certified drone delivery platform.

Speaker #2: Amprius's silicon anode cells deliver up to twice the energy density of conventional graphite-based batteries. A critical advantage in aviation, where low battery weight and high energy density directly improve aircraft range, payload, and economics.

Speaker #2: Drones, both military and commercial, are a big part of the Amprius story. But they are not our only strategically important end market. Earlier this year, we announced a $21 million order from a premier electric mobility customer in China to power a suite of light electric vehicles, including scooters, three-wheelers, and motorcycles.

Speaker #2: Today, I'm excited to tell you about a new e-mobility customer win. We have signed a three-year contract with Stark Future, a Barcelona-based premium electric motorcycle manufacturer.

Thomas Stepien: We have signed a three-year contract with Stark Future, a Barcelona-based premium electric motorcycle manufacturer. Stark's bikes are impressive, with cutting-edge technology, world-class design, and amazing engineering. We showcased one of their bikes at our CES booth in January 2026. We expect revenues from our relationship to Stark to be at least $100 million through 2029, with shipments expected to start early next year. Let's turn to slide four and discuss our go-to-market strategy. A little less than half of our sales ship directly to end-use customers, companies that sell drones for various applications, small electric vehicles, and companies in the satellite value stream. We have more than 500 direct customers, and this figure grows every quarter. The other portion of our purchase orders come from pack partners, companies who buy our cells and package them together with appropriate electronics and sometimes a battery management system.

Tom Stepien: We have signed a three-year contract with Stark Future, a Barcelona-based premium electric motorcycle manufacturer. Stark's bikes are impressive, with cutting-edge technology, world-class design, and amazing engineering. We showcased one of their bikes at our CES booth in January 2026. We expect revenues from our relationship to Stark to be at least $100 million through 2029, with shipments expected to start early next year. Let's turn to slide four and discuss our go-to-market strategy. A little less than half of our sales ship directly to end-use customers, companies that sell drones for various applications, small electric vehicles, and companies in the satellite value stream. We have more than 500 direct customers, and this figure grows every quarter. The other portion of our purchase orders come from pack partners, companies who buy our cells and package them together with appropriate electronics and sometimes a battery management system.

Speaker #2: Stark's bikes are impressive. With cutting-edge technology, world-class design, and amazing engineering. We showcased one of their bikes at our CES booth in January 2026.

Speaker #2: We expect revenues from our relationship to Stark to be at least 100 million through 2029, with shipments expected to start early next year. Let's turn to slide 4 and discuss our go-to-market strategy.

Speaker #2: A little less than half of our cells ship directly to end-use customers. Companies that sell drones for various applications, small electric vehicles, and companies in the satellite value stream.

Speaker #2: We have more than 500 direct customers, and this figure grows every quarter. The other portion of our purchase orders come from PAC partners. Companies who buy our cells and package them together with appropriate electronics and sometimes a battery management system.

Speaker #2: These modules and PACs are then sold to end-use customers. Our PAC partner program allows us to expand our reach and simplifies customer relationships for many end-market applications.

Thomas Stepien: These modules and packs are then sold to end-use customers. Our pack partner program allows us to expand our reach and simplifies customer relationships for many end-market applications. Today, we list nine pack partners on our website, and more will be added over time. This program is a light lift for our sales team and allows us to scale without adding direct sales headcount. We expect this flywheel effect to allow us to continue strong growth through this rapidly expanding channel. Let's turn to slide five, let me take a few minutes to provide an update on our capital efficient contract manufacturing strategy. Our California pilot line gives us the ability to win new customers, allowing us to quickly deliver new cell chemistries to customers. We often do this side by side with our customers in joint development programs.

Tom Stepien: These modules and packs are then sold to end-use customers. Our pack partner program allows us to expand our reach and simplifies customer relationships for many end-market applications. Today, we list nine pack partners on our website, and more will be added over time. This program is a light lift for our sales team and allows us to scale without adding direct sales headcount. We expect this flywheel effect to allow us to continue strong growth through this rapidly expanding channel. Let's turn to slide five, let me take a few minutes to provide an update on our capital efficient contract manufacturing strategy. Our California pilot line gives us the ability to win new customers, allowing us to quickly deliver new cell chemistries to customers. We often do this side by side with our customers in joint development programs.

Speaker #2: Today, we list nine PAC partners on our website, and more will be added over time. This program is a light lift for our sales team and allows us to scale without adding direct sales headcount.

Speaker #2: We expect this flywheel effect to allow us to continue strong growth through this rapidly expanding channel. Let's turn to slide 5, and let me take a few minutes to provide an update on our capital-efficient contract manufacturing strategy.

Speaker #2: Our California pilot line gives us the ability to win new customers, allowing us to quickly deliver new cell chemistries to customers. We often do this side by side, with our customers in joint development programs.

Speaker #2: We also use our Fremont facility to deliver small volumes of cells. We leverage our worldwide contract manufacturing partners to produce cells at volume. We have four manufacturing partners in China.

Thomas Stepien: We also use our Fremont facility to deliver small volumes of cells. We leverage our worldwide contract manufacturing partners to produce sales at volume. We have four manufacturing partners in China. Over the last several years, they have provided us with excellent quality and reliable delivery. Our China CMs have helped Amprius tremendously, and they will continue to be important partners in our future. We have added several partners in South Korea. In May 2025, we announced our first partner, Libest, located in Daejeon, about a two-hour drive from downtown Seoul. Libest has been delivering Amprius commercial cells since September 2025. We recently added JR Energy and Top Material as South Korean partners. Together, these three CMs give us the ability to produce batteries that are compliant with NDAA rules.

Tom Stepien: We also use our Fremont facility to deliver small volumes of cells. We leverage our worldwide contract manufacturing partners to produce sales at volume. We have four manufacturing partners in China. Over the last several years, they have provided us with excellent quality and reliable delivery. Our China CMs have helped Amprius tremendously, and they will continue to be important partners in our future. We have added several partners in South Korea. In May 2025, we announced our first partner, Libest, located in Daejeon, about a two-hour drive from downtown Seoul. Libest has been delivering Amprius commercial cells since September 2025. We recently added JR Energy and Top Material as South Korean partners. Together, these three CMs give us the ability to produce batteries that are compliant with NDAA rules.

Speaker #2: Over the last several years, they have provided us with excellent quality and reliable delivery. Our China CMs have helped Amprius tremendously and they will continue to be important partners in our future.

Speaker #2: We have added several partners in South Korea. In May 2025, we announced our first partner, Libest, located in Daejeon, about a two-hour drive from downtown Seoul.

Speaker #2: Libest has been delivering Amprius commercial cells since September 2025. We recently added JR Energy and Top Material as South Korean partners. Together, these three CMs give us the ability to produce batteries that are compliant with NDAA rules.

Speaker #2: I met with all three partners, in Korea 10 days ago, and can confirm that our relationships are solid, our incentives are aligned, and we are expanding well together.

Thomas Stepien: I met with all three partners in Korea 10 days ago and can confirm that our relationships are solid, our incentives are aligned, and we are expanding well together. I also want to underscore that we believe we are well on track to reach full NDAA compliance with domestically produced cells in 2027. South Korea gives us NDAA compliant supply today, while Nanotech Energy, the US contract manufacturer we announced earlier this year, provides additional US capacity. We expect to talk about additional US partners in the months ahead. Our partner-focused approach to manufacturing avoids substantial capital expenditures while keeping our management team focused on what matters most, extending our technical innovations and delivering these innovations to customers rapidly. Leveraging manufacturing partners rather than investing heavily in new facilities allows Amprius to scale quickly and efficiently while maintaining strategic flexibility.

Tom Stepien: I met with all three partners in Korea 10 days ago and can confirm that our relationships are solid, our incentives are aligned, and we are expanding well together. I also want to underscore that we believe we are well on track to reach full NDAA compliance with domestically produced cells in 2027. South Korea gives us NDAA compliant supply today, while Nanotech Energy, the US contract manufacturer we announced earlier this year, provides additional US capacity. We expect to talk about additional US partners in the months ahead. Our partner-focused approach to manufacturing avoids substantial capital expenditures while keeping our management team focused on what matters most, extending our technical innovations and delivering these innovations to customers rapidly. Leveraging manufacturing partners rather than investing heavily in new facilities allows Amprius to scale quickly and efficiently while maintaining strategic flexibility.

Speaker #2: I also want to underscore that we believe we are well on track to reach full NDAA compliance with domestically produced cells in 2027.

Speaker #2: South Korea gives us NDAA compliant supply today, while nanotech energy the U.S. contract manufacturer we announced earlier this year provides additional U.S. capacity. We expect to talk about additional U.S.

Speaker #2: partners in the months ahead. Our partner focused approach to manufacturing avoids substantial capital expenditures while keeping our management team focused on what matters most, extending our technical innovations and delivering these innovations to customers rapidly.

Speaker #2: Leveraging manufacturing partners rather than investing heavily in new facilities, allows Amprius to scale quickly and efficiently while maintaining strategic flexibility. I want to provide a brief update on our senior management team.

Thomas Stepien: I want to provide a brief update on our senior management team. Last month, Ronnie Tao, a five-year Amprius veteran who until recently served as our VP of Sales, moved into a new role as Chief Business Officer. Ronnie will focus on expanding our reach into new markets, initially targeting robotics, where we see substantial opportunity for our high energy density offerings. Ronnie's energy is infectious, and his recall of technical details is remarkable, ideal qualities to drive growth into new segments. Three weeks ago, Anne Torricelli joined Amprius as our new VP of Sales. Anne has nearly two decades of experience working in energy technology sales to business development roles. She was most recently Managing Director of energy storage solutions for Gotion, a top five worldwide lithium-ion battery manufacturer.

Tom Stepien: I want to provide a brief update on our senior management team. Last month, Ronnie Tao, a five-year Amprius veteran who until recently served as our VP of Sales, moved into a new role as Chief Business Officer. Ronnie will focus on expanding our reach into new markets, initially targeting robotics, where we see substantial opportunity for our high energy density offerings. Ronnie's energy is infectious, and his recall of technical details is remarkable, ideal qualities to drive growth into new segments. Three weeks ago, Anne Torricelli joined Amprius as our new VP of Sales. Anne has nearly two decades of experience working in energy technology sales to business development roles. She was most recently Managing Director of energy storage solutions for Gotion, a top five worldwide lithium-ion battery manufacturer.

Speaker #2: Last month, Ronnie Tao, a five-year Amprius veteran, who until recently served as our VP of Sales, moved into a new role as Chief Business Officer.

Speaker #2: Ronnie will focus on expanding our reach into new markets, initially targeting robotics, where we see substantial opportunity for our high-energy density offerings. Ronnie's energy is infectious, and his recall of technical details is remarkable.

Speaker #2: Ideal quality to drive growth into new segments. Three weeks ago, and Torricelli joined Amprius as our new VP of Sales. Anne has nearly two decades of experience working in energy technology sales and business development roles.

Speaker #2: She was most recently managing director of Energy Storage Solutions for Gotion, a top five worldwide lithium-ion battery manufacturer. Her multicultural background, excellent communication skills, and savvy organizational traits are a model profile to lead sales for fast-growing international company like Amprius.

Thomas Stepien: Her multicultural background, excellent communication skills, and savvy organizational traits are a model profile to lead sales for a fast-growing international company like Amprius. We're thrilled to welcome Anne to the team. A few additional thoughts before I pass the microphone to Ricardo Rodriguez, our CFO. I continue to see wide and varied growth opportunities for Amprius in multiple markets and several geographies. As I noted earlier, there are sizable opportunities for us in drones, not only in defense, but also for commercial delivery, public safety, security, and a growing number of other applications. The massive commitment to drones from the Department of War is a positive sign, but it is not the only one. We expect drones to expand across many parts of the economy in years ahead. As highlighted by our new relationship with Stark in Spain, there is also a fast-growing opportunity for battery-powered mobility, including robotics.

Tom Stepien: Her multicultural background, excellent communication skills, and savvy organizational traits are a model profile to lead sales for a fast-growing international company like Amprius. We're thrilled to welcome Anne to the team. A few additional thoughts before I pass the microphone to Ricardo Rodriguez, our CFO. I continue to see wide and varied growth opportunities for Amprius in multiple markets and several geographies. As I noted earlier, there are sizable opportunities for us in drones, not only in defense, but also for commercial delivery, public safety, security, and a growing number of other applications. The massive commitment to drones from the Department of War is a positive sign, but it is not the only one. We expect drones to expand across many parts of the economy in years ahead. As highlighted by our new relationship with Stark in Spain, there is also a fast-growing opportunity for battery-powered mobility, including robotics.

Speaker #2: We're thrilled to welcome Anne to the team. A few additional thoughts before I pass the microphone to Ricardo Rodriguez, our CFO. I continue to see wide and varied growth opportunities for Amprius in multiple markets and several geographies.

Speaker #2: As I noted earlier, there are sizable opportunities for us in drones, not only in defense, but also for commercial delivery, public safety, security, and a growing number of other applications.

Speaker #2: The massive commitment to drones from the Department of War is a positive sign, but is not the only one, and we expect drones to expand across many parts of the economy in years ahead.

Speaker #2: As highlighted by our new relationship with Stark in Spain, there is also a fast-growing opportunity for battery-powered mobility, including robotics. We are focusing some of our key executives on this emerging market for personal and commercial robots, including delivery bots, humanoid, and industrial mobile robots.

Thomas Stepien: We are focusing some of our key executives on this emerging market for personal and commercial robots, including delivery bots, humanoid, and industrial mobile robots. It is early, and there is no meaningful robotics revenue in our numbers today. Our ability to offer power and energy balanced cells plays well in the unstructured environments in which these machines operate. We expect to have more to say about this segment in the months ahead. Another opportunity that exists for us is in satellites and space, where our high energy density cells directly improve launch economics. Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight extremely valuable. Finally, we believe there is tremendous potential for our batteries in eVTOL, electric vertical takeoff and landing aircraft, for autonomous point-to-point regional transport for both passengers and cargo.

Tom Stepien: We are focusing some of our key executives on this emerging market for personal and commercial robots, including delivery bots, humanoid, and industrial mobile robots. It is early, and there is no meaningful robotics revenue in our numbers today. Our ability to offer power and energy balanced cells plays well in the unstructured environments in which these machines operate. We expect to have more to say about this segment in the months ahead. Another opportunity that exists for us is in satellites and space, where our high energy density cells directly improve launch economics. Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight extremely valuable. Finally, we believe there is tremendous potential for our batteries in eVTOL, electric vertical takeoff and landing aircraft, for autonomous point-to-point regional transport for both passengers and cargo.

Speaker #2: It is early, and there is no meaningful robotics revenue in our numbers today, but our ability to offer power and energy balanced cells plays well in the unstructured environments in which these machines operate.

Speaker #2: We expect to have more to say about this segment in the months ahead. Another opportunity that exists for us is in satellites in space, where our high-energy density cells directly improve launch economics.

Speaker #2: Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight extremely valuable. Finally, we believe there is tremendous potential for a batteries in EV toll, electric vertical takeoff and landing aircraft.

Speaker #2: For autonomous point-to-point regional transport for both passengers and cargo. It's early in the development of EV toll vehicles, but they are coming sooner than many think.

Thomas Stepien: It is early in the development of eVTOL vehicles, they are coming sooner than many think. Let me now turn over the call to Ricardo to review our Q2 results in detail.

Tom Stepien: It is early in the development of eVTOL vehicles, they are coming sooner than many think. Let me now turn over the call to Ricardo to review our Q2 results in detail.

Speaker #2: Let me now turn over the call to Ricardo, to review our Q2 results in detail.

Speaker #1: Thank you, Tom, and good morning, everyone. I'm happy to start on slide six. In the second quarter, we delivered 34 million dollars of revenue, up 19% from the first quarter, and 2.3 times year over year.

Ricardo Rodriguez: Thank you, Tom, and good morning, everyone. I'm happy to start on slide six. In the second quarter, we delivered $34 million of revenue, up 19% from Q1 and 2.3 times year over year. This was our sixth consecutive quarter of sequential growth, and it puts our annual revenue run rate at $136 million. We expect this to continue growing. More on this later. For H1 of the year, revenue was $62.6 million, up 137% year over year. SiCore accounted for 98% of our revenue in Q2. Regionally, EMEA drove 68% of our revenue, with the rest of our revenue coming from the US and Asia. Cost of goods sold was $24.8 million, up 9% against 19% revenue growth.

Speaker #1: This was our sixth consecutive quarter of sequential growth, and it puts our annual revenue run rate at 136 million dollars. We expect this to continue growing, so more on this later.

Speaker #1: For the first half of the year, revenue was of 62.6 million dollars, up 137% year over year. Sycor accounted for 98% of our revenue in Q2.

Speaker #1: Regionally, EMEA drove 68% of our revenue, with the rest of our revenue coming from the U.S. and Asia. Cost of goods sold was 284.8 million dollars, up 9% against 19% revenue growth.

Speaker #1: That enabled gross profit of 9.3 million dollars. And the gross margin of 27%. Right in line with our expectations. And improving from 20% in the first quarter and 9% in the same quarter last year.

Ricardo Rodriguez: That enabled gross profit of $9.3 million and a gross margin of 27%, right in line with our expectations and improving from 20% in Q1 and 9% in the same quarter last year. For H1, gross margin was 24%, improving from -4% in H1 of 2025. Total OpEx was $13.6 million in the quarter, up $1.2 million sequentially and $5.4 million year over year. We continue investing in our go-to-market and R&D efforts as these continue to pay off as our team wins in the market. Our operating loss in Q2 was $4.3 million, compared to $6.7 million in Q1 and $6.8 million in the same quarter of last year.

Speaker #1: For the first half, gross margin was 24%, improving from negative 4% in the first half of 2025. Total opex was 13.6 million in the quarter, up 1.2 million sequentially, and 5.4 million year over year.

Speaker #1: We continue investing in our go-to-market and R&D efforts as these continue to pay off as our team wins in the market. Our operating loss in Q2 was 4.3 million dollars, compared to 6.7 million dollars in the first quarter, and 6.8 million in the same quarter of last year.

Speaker #1: Other income was 1.1 million, consisting of 472,000 dollars of interest income and 700,000 dollars of government grant income tied to our work with the Defense Innovation Unit.

Ricardo Rodriguez: Other income was $1.1 million, consisting of $472,000 of interest income and $700,000 of government grant income tied to our work with the Defense Innovation Unit. Our GAAP net loss attributable to common shareholders for Q2 was $5.1 million, or -$0.04 per share, based on 143.5 million weighted average shares outstanding. That is 20% narrower than the same quarter last year. For H1, our net loss was $10.1 million, compared to $15.7 million in H1 of 2025. Our GAAP net loss includes a one-time non-cash $1.9 million adjustment, reflecting the change in fair value of the public warrants during our exchange for stock on 6 May of this year.

Speaker #1: Our gabinet loss attributable to common shareholders for the second quarter was 5.1 million dollars, or negative 4 cents per share. Based on 143.5 million weighted average shares outstanding.

Speaker #1: That is 20% narrower than the same quarter last year. For the first half, our net loss was 10.1 million, compared to 15.7 million in the first half of 2025.

Speaker #1: Our gabinet loss includes a one-time, non-cash, 1.9 million dollar adjustment, reflecting the change in fair value of the public warrants during our exchange for stock on May 6th of this year.

Speaker #1: Excluding this 1.9 million dollars, gives us non-gap adjusted net loss of 3.2 million, or negative 2 cents per share, for Q2, and 8.2 million or 6 cents per share for the first half of 2026.

Ricardo Rodriguez: Excluding this $1.9 million gives us non-GAAP adjusted net loss of $3.2 million or -$0.02 per share for Q2 and $8.2 million or $0.06 per share for H1 of 2026. Adjusted EBITDA in Q2 was -$1 million or a -3% margin compared to -$1.8 million in Q1 and -$2.1 million in the same quarter last year. As a reminder, we define adjusted EBITDA as net income or loss before interest, taxes, depreciation, amortization, stock-based compensation, and other items that we do not believe are indicative of our core operating performance. In Q2, these adjustments were limited to the $1.9 million related to the warrant exchange, $2.5 million of stock-based compensation, $800,000 of depreciation and amortization, and $1.1 million of interest and other income.

Speaker #1: Adjusted EBITDA in the second quarter was negative 1 million dollars, or negative 3% margin, compared to negative 1.8 million in the first quarter and negative 2.1 million in the same quarter last year.

Speaker #1: This is a reminder we define adjusted EBITDA as net income or loss before interest, taxes, depreciation, amortization, stock-based compensation, and other items that we do not believe are indicative of our core operating performance.

Speaker #1: In the second quarter, these adjustments were limited to the 1.9 million dollars, related to the warrants exchange, 2.5 million dollars of stock-based compensation, 800,000 dollars of depreciation and amortization, and 1.1 million dollars of interest and other income.

Speaker #1: For the first half of the year, adjusted EBITDA was negative $2.8 million, compared to negative $7.3 million in the first half of last year. On a trailing 12-month basis, adjusted EBITDA is negative $800,000, with a negative 1% margin.

Ricardo Rodriguez: For H1, adjusted EBITDA was -$2.28 million against -$7.3 million in H1 of last year. On a trailing 12-month basis, adjusted EBITDA is -$800,000 with a -1% margin. We are within a rounding error of breakeven on a full year basis if we look at the last 12 months. Turning over to cash flow and the balance sheet. We ended Q2 with $74.5 million of cash and no debt, an increase of $12.2 million during the quarter. Our operations only used $2.9 million of cash in the quarter. Accounts receivable grew by $5.4 million and inventory grew by $3.3 million, partially offset by lower prepaid inventory and higher payables. Before those working capital movements, our operations generated cash for the first time. Accounts receivable ended at $40.7 million and inventory at $11.5 million.

Speaker #1: We are within a rounding error of break-even on a full-year basis if we look at the last 12 months. Now turning over to cash flow and the balance sheet.

Speaker #1: We ended the second quarter, with 74.5 million dollars of cash and no debt. An increase of 12.2 million dollars during the quarter. Our operations only used 2.9 million dollars of cash in the quarter.

Speaker #1: Accounts receivable grew by 5.4 million dollars, and inventory grew by 3.3 million. Partially offset by lower prepaid inventory and higher payables. Before those working capital movements, our operations time.

Speaker #1: Accounts receivable and debt at 40.7 million, and inventory at 11.5 million. Both are deliberate. Receivables reflect a fast-growing shipment profile, weighted towards the second half of the quarter, and inventory is positioned to support the ramp of the third quarter.

Ricardo Rodriguez: Both are deliberate. Receivables reflect a fast-growing shipment profile weighted towards H2 of the quarter, and inventories positioned to support the ramp of Q3. Capital expenditures were $1.8 million, all at our Fremont facility, supporting the electrode coating build-out and primarily funded by the Defense Innovation Unit. H1 CapEx was $2.8 million against the less than $10 million that we framed out for the year in March, and we are tracking well inside that. Financing activities provided $16.8 million, consisting of $12.3 million from warrant exercises and $4.5 million from option exercises. We currently do not have an at-the-market offering program. Every dollar of equity capital we took in this quarter came from holders choosing to exercise into the business as we continue focused on minimizing dilution.

Speaker #1: Capital expenditures were $1.8 million, all at our Fremont facility, supporting the electrode coating build-out and primarily funded by the Defense Innovation Unit. First half capex was $2.8 million, against a less than $10 million that we framed out for the year in March.

Speaker #1: And we are tracking well inside that. Financing activities provided 16.8 million dollars, consisting of 12.3 million dollars from warrant exercises and 4.5 million dollars from option exercises.

Speaker #1: We currently do not have an at-the-market offering program. Every dollar of equity capital we took in this quarter came from holders choosing to exercise into the business, as we continue focused on minimizing dilution.

Speaker #1: Working capital at quarter end was 113.2 million dollars, compared to 59.8 million dollars for the second quarter of last year. And total stockholders' equity was of 125.6 million dollars.

Ricardo Rodriguez: Working capital at quarter end was $113.2 million, compared to $59.8 million for Q2 of last year, and total stockholders' equity was of $125.6 million. Before I turn the call back to Tom, I want to frame our outlook for the rest of the year using slide seven as the backdrop. In March, we set an initial 2026 outlook of more than $125 million of revenue, over 25% gross margin, and our first full year of +adjusted EBITDA. In May, after a Q1 of $28.5 million of revenue, we increased guidance to more than $130 million for the year. Today, we are increasing our revenue forecast again. With what we know today, we expect full year revenue of at least $140 million and gross margins of at least 28%.

Speaker #1: Before I turn the call back to Tom, I want to frame our outlook for the rest of the year, using slide 7 as the backdrop.

Speaker #1: In March, we set an initial 2026 outlook of more than 125 million dollars of revenue, over 25% gross margin, and our first full year of positive adjusted EBITDA.

Speaker #1: In May, after our first quarter of 28.5 million dollars of revenue, we increased guidance to more than 130 million dollars for the year. Today, we are increasing our revenue forecast again.

Speaker #1: With what we know today, we expect full-year revenue of at least 140 million dollars and gross margins of at least 28%. We see upside to gross margins in the second half of the year, as we focus on ensuring that the fixed cost of our contract manufacturing partners do not increase with higher volumes.

Ricardo Rodriguez: We see upside to gross margins in H2 as we focus on ensuring that the fixed costs of our contract manufacturing partners do not increase with higher volumes. We are reiterating adjusted EBITDA of more than $4 million, a net loss of $10 million or less, and the loss of $0.08 or less per diluted share, assuming 143.5 million weighted average diluted shares. These updated GAAP profit guidance estimates consider the $1.9 million adjustment for the fair value of the warrants in Q2 of this year. Looking further ahead, nothing about the plan that we laid out in March has changed, except for how much of it is now visible in the numbers and in reality.

Speaker #1: We are reiterating adjusted EBITDA of more than 4 million dollars, and net loss of 10 million dollars or less, and a loss of 8 cents or less for diluted share, assuming 143.5 million weighted average diluted shares.

Speaker #1: These updated gap profit guidance estimates consider the 1.9 million dollar adjustment for the fair value of the warrants in Q2 of this year. Looking further ahead, nothing about the plan that we laid out in March has changed.

Speaker #1: Except for how much of it is now visible in the numbers and in reality. As we close out the decade, we are still targeting more than 600 million dollars of contracted capacity gross margins above 30%, and adjusted EBITDA margins of at least 20%.

Ricardo Rodriguez: As we close out the decade, we are still targeting more than $600 million of contracted capacity, gross margins above 30%, and adjusted EBITDA margins of at least 20%. The resourceful culture and low fixed cost structure that brought us within rounding error of breakeven over the last 12 months are the same ones that'll get us there.

Speaker #1: The resourceful culture and low fixed cost structure that brought us within a rounding error of break-even over the last 12 months are the same ones that will get us there.

Speaker #1: With that, I'm happy to turn the call back to Tom for his closing remarks. Thank you very much for your attention and continued support.

Ricardo Rodriguez: With that, I'm happy to turn the call back to Tom for his closing remarks. Thank you very much for your attention and continued support.

Speaker #2: Thanks, Ricardo. We remain excited about the opportunities ahead and look forward to meeting many of you at upcoming investor events. Thank you for your continued interest and support of Amprius.

Thomas Stepien: Thanks, Ricardo. We remain excited about the opportunities ahead and look forward to meeting many of you at upcoming investor events. Thank you for your continued interest and support of Amprius. With that, let me turn it over to the operator for questions.

Tom Stepien: Thanks, Ricardo. We remain excited about the opportunities ahead and look forward to meeting many of you at upcoming investor events. Thank you for your continued interest and support of Amprius. With that, let me turn it over to the operator for questions.

Speaker #2: And with that, let me turn it over to the operator for questions.

Speaker #3: Thank you. We will now take questions from the company's covering analysts. If you would like to ask a question, please press star 1 on your telephone keypad.

Operator 2: Thank you. We will now take questions from the company's covering analysts. 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 the question queue. You may press star two if you would like to remove your question 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 at this time. One moment while we poll for the first question. The first question comes from Colin Rusch with Oppenheimer. Please proceed.

Operator: Thank you. We will now take questions from the company's covering analysts. 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 the question queue. You may press star two if you would like to remove your question 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 at this time. One moment while we poll for the first question. The first question comes from Colin Rusch with Oppenheimer. Please proceed.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #3: 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 at this time.

Speaker #3: One moment while we pull for the first question. The first question comes from Colin Rusch with Oppenheimer. Please proceed.

Speaker #4: Thanks so much, guys. And congratulations on the progress here. You know, as we see some of the incremental regionalization, the NDAA compliance, you know, mandates starting to flow through, I just want to get a sense of, you know, how much dexterity the technology platform has, in terms of using alternate, you know, inputs on the anode side, as well as on the electrolyte side.

Colin Rusch: Thanks so much, guys, and congratulations on the progress here. As we see some of the incremental regionalization, the NDAA compliance mandates starting to flow through, I just want to get a sense of how much dexterity the technology platform has in terms of using alternate inputs on the anode side as well as on the electrolyte side, whether you're moving towards a semi-solid state or solid state electrolyte at some point, and your ability to actually integrate some of those material advances that we're seeing out in the ecosystem.

Speaker #4: You know, whether you're moving towards like a semi-solid state or solid-state electrolyte at some point. You know, and your ability to actually integrate some of those material advances that we're seeing on the ecosystem.

Speaker #5: Yeah, Colin, thank you. This is Tom. We have five chemistry platforms: a power-based one, energy-based one, balanced one. We have very good dexterity, as you say.

Thomas Stepien: Yeah. Colin, thank you. This is Tom. We have five chemistry platforms, a power-based one, energy-based one, and balanced one. We have very good dexterity, as you say. We have had long-serving suppliers over the last several years. As a part of NDAA, we've qualified two sets of 11 new suppliers for the anode, cathode, separation, and seven other binders, et cetera, that go into our batteries. We have a primary set of new suppliers and a secondary set. We are happy with those new suppliers. We are folding them into the cells that are being made in South Korea and the US. It's working well. It's tricky because we have to qualify them. We have to get these suppliers under contract. It's keeping us busy on the supply chain and operational side of things, as well as the technical side.

Tom Stepien: Yeah. Colin, thank you. This is Tom. We have five chemistry platforms, a power-based one, energy-based one, and balanced one. We have very good dexterity, as you say. We have had long-serving suppliers over the last several years. As a part of NDAA, we've qualified two sets of 11 new suppliers for the anode, cathode, separation, and seven other binders, et cetera, that go into our batteries. We have a primary set of new suppliers and a secondary set. We are happy with those new suppliers. We are folding them into the cells that are being made in South Korea and the US. It's working well. It's tricky because we have to qualify them. We have to get these suppliers under contract. It's keeping us busy on the supply chain and operational side of things, as well as the technical side.

Speaker #5: We have had long-serving suppliers over the last several years. And as a part of NDAA, we've qualified two sets of 11 new suppliers. For the anode, cathode, separator, and seven other binders, et cetera, that go into our batteries.

Speaker #5: We have a primary set of new suppliers, and a secondary set of. We are happy with those new suppliers. We are folding them in to the cells that are being made in South Korea and the US.

Speaker #5: So it's working well. It's tricky, because we have to qualify them. We have to get these suppliers under contract. So it's keeping us busy on the supply chain and operational side of things.

Speaker #5: As well as the technical side, the pilot line here in Fremont helps, because we get quick turns and quickly validate some of those new components.

Thomas Stepien: The pilot line here in Fremont helps because we get quick turns and quickly validate some of those new components. We're pretty nimble in that area. We'd always like to go faster, of course, but we're happy with where we are, and we're on track, as we said on the call, to be fully not just NDAA compliant, but US NDAA compliant here in 2027.

Tom Stepien: The pilot line here in Fremont helps because we get quick turns and quickly validate some of those new components. We're pretty nimble in that area. We'd always like to go faster, of course, but we're happy with where we are, and we're on track, as we said on the call, to be fully not just NDAA compliant, but US NDAA compliant here in 2027.

Speaker #5: But we're pretty nimble in that area. We'd always like to go faster, of course, but we're happy with where we are, and we're on track.

Speaker #5: As we said in the call, to be fully, not just NDA compliant, but US NDA compliant here in 2027.

Speaker #3: Excellent. And then,

Colin Rusch: Excellent. Then, I guess, shifting to the customer base. Given that level of range from the platform, over the last year and a half, you've done a great job of actually getting a lot of these customers organized and a little bit more methodical in terms of their purchasing patterns. I want to get a sense of as you move forward, leveraging the technology roadmap that you have, some of the range of possibilities and scale that you guys can leverage into both driving incremental sales as well as operating margin, how we should think about that kind of playing out over the next 12 to 24 months.

Speaker #4: I guess shifting to the customer base. You know, given that level of range from the platform, you know, it you know, over the last year and a half, you've done a great job of actually getting a lot of these customers organized and a little bit more methodical in terms of their purchasing patterns.

Speaker #4: But I want to get a sense of, as you move forward, you know, leveraging the technology roadmap that you have, some of the range of possibilities, and scale that you guys can leverage into both driving incremental sales as well as operating margin.

Speaker #4: How should we think about that, kind of playing out over the next, you know, 12 to 24 months?

Speaker #5: Yeah. So the PAC partner program certainly helps, as we tried to say in the call, giving us some leverage in the flywheel effect, as we tried to that certainly helps.

Thomas Stepien: The pack partner program certainly helps, as we tried to say on the call, giving us some leverage and the flywheel effect. That certainly helps. Anne joining us is a very organized, methodical person who has run large sales groups. That's part of why we liked her. I think that will help. Then I think that the breadth of our offerings allows us to, without a lot of brain damage, serve some of these new segments, right? It's early in robotics and eVTOLs, of course, but we have a couple joint development programs underway. It appears that some of the tweaks we're making side by side with these future customers are relatively small and can be done rapidly, to get exactly what these customers need, energy, power, et cetera.

Tom Stepien: The pack partner program certainly helps, as we tried to say on the call, giving us some leverage and the flywheel effect. That certainly helps. Anne joining us is a very organized, methodical person who has run large sales groups. That's part of why we liked her. I think that will help. Then I think that the breadth of our offerings allows us to, without a lot of brain damage, serve some of these new segments, right? It's early in robotics and eVTOLs, of course, but we have a couple joint development programs underway. It appears that some of the tweaks we're making side by side with these future customers are relatively small and can be done rapidly, to get exactly what these customers need, energy, power, et cetera.

Speaker #5: And joining us is a very organized, methodical person who has run large sales groups. That's part of what we liked her. I think that will help.

Speaker #5: And then I think the breadth of our offerings allows us to, without a lot of brain damage, serve some of these new segments, right?

Speaker #5: And as early in robotics and EV tools, of course. But we have a couple of joint development programs underway, and it appears that some of the tweaks we're making side by side with these future customers are relatively small and can be done rapidly to get exactly what these customers need.

Speaker #5: Energy power, et cetera. So that I think will help us go deeper as well as wider, on the customer side of things. On the margins, do you want to think about that?

Thomas Stepien: That, I think, will help us go deeper as well as wider on the customer side of things. On the margins, do you want to speak about that?

Tom Stepien: That, I think, will help us go deeper as well as wider on the customer side of things. On the margins, do you want to speak about that?

Speaker #5: Yeah, the margins really depend on both the regional mix and the product mix. And we do see in essence pouch cells are the most accretive for us.

Ricardo Rodriguez: The margins really depend on both the regional mix and the product mix, we do see, in essence, pouch cells are the most accretive for us. As we launch the NDAA-compliant pouch cells, we think that will be accretive and will help us get to our margin targets just as expected, right? When we reported Q3 last year, we said the margins were going to be lumpy, and that happened in Q1 as they went to 20% on a GAAP basis and 22% if we strip out the one-time cost from the Colorado facility. Then here in this quarter, the revenue mix was pretty favorable with quite a bit of our sales in Europe and pouch cells really holding their share of the mix.

Speaker #5: And as we launch the NDAA compliant pouch cells, we think that will be accretive and will help us get to our margin targets just as expected, right?

Speaker #5: You know, when we reported Q3 last year, we said the margins were going to be lumpy and that happened in Q1, as they went to, you know, 20% on a gap basis and 22% if we strip out the one-time cost from the Colorado facility.

Speaker #5: And then here in this quarter, the revenue mix was pretty favorable, with quite a bit of our sales in Europe, and pouch cells really holding their share of the mix.

Speaker #5: So as we look at these other markets, like robotics, EV tools, I mean, we have a team now looking at data centers potentially. I do think that all of those are going to be pursued in an accretive way.

Thomas Stepien: As we look at these other markets like robotics, eVTOLs, we have a team now looking at data centers potentially. I do think that all of those are going to be pursued in an accretive way.

Ricardo Rodriguez: As we look at these other markets like robotics, eVTOLs, we have a team now looking at data centers potentially. I do think that all of those are going to be pursued in an accretive way.

Speaker #4: Excellent. Thanks so much, guys.

Colin Rusch: Excellent. Thanks so much, guys.

Speaker #5: Absolutely.

Thomas Stepien: Absolutely.

Tom Stepien: Absolutely.

Speaker #4: Thanks, Colin.

Mark Shooter: Thanks, Colin.

Ricardo Rodriguez: Thanks, Colin.

Speaker #3: The next question comes from Mark Shuto with William Blair. Please proceed.

Operator 2: The next question comes from Mark Shooter with William Blair. Please proceed.

Operator: The next question comes from Mark Shooter with William Blair. Please proceed.

Speaker #6: Hey, Tom and Ricardo. Great quarter. In progress thus far.

Mark Shooter: Hey, Tom and Ricardo. Great quarter and progress thus far.

Speaker #5: Thanks, Mark.

Thomas Stepien: Thanks, Mark.

Tom Stepien: Thanks, Mark.

Speaker #6: Yeah, of course. Tom, you know, we thought the L3 Harris order in the nanotech contract manufacturing, we saw that as like a creative way to find and leverage some small US manufacturing capacity that's available.

Mark Shooter: Yeah, of course. Tom, we thought the L3Harris order and the Nanotech contract manufacturing, we saw that as a creative way to find and leverage some small US manufacturing capacity that's available for these domestic supply chain sensitive customers. As stricter domestic requirements from the DOD and the FAA for both military and commercial drones, they kick in around 2027 and 2028. Do you see this as an inflection point for domestic drone manufacturing or even for the cells? Will you have to ramp up more in the US manufacturing? If so, what do you see for available avenues to do so?

Speaker #6: You know, for these domestic supply chain sensitive customers. As stricter domestic requirements from the DOW and the FCC for both, like, military and commercial drones, as they kick in around 2027 and 2028, do you see this as an inflection point for domestic drone manufacturing or even for the cells?

Speaker #6: Like, will you have to ramp up more in the US manufacturing? And if so, what do you see for available avenues to do so?

Speaker #5: Yeah, so we have pretty good visibility, certainly through the next several quarters. And of course, on a planning basis, we look through the rest of—through the end of 2027, and then 2028 with increasing certainty.

Thomas Stepien: Yeah. We have pretty good visibility certainly through the next several quarters, and of course, on a planning basis, we look through the end of 2027 and then 2028 with increasing certainty. We know when these stricter requirements kick in. We're happy with where we are in Korea with the three. We need to go faster. We need to go deeper. Nanotech has delivered cells. We need to, of course, flow more through them. We're actively working with other US manufacturing, as we said on the call, not quite ready to announce anybody yet, but stay tuned there. Look, we always want the boat to go faster here, but we are pleased with the demand. We think we are in a leadership role technically. We need to earn that every day. We need to deliver to L3's requirements and others.

Tom Stepien: Yeah. We have pretty good visibility certainly through the next several quarters, and of course, on a planning basis, we look through the end of 2027 and then 2028 with increasing certainty. We know when these stricter requirements kick in. We're happy with where we are in Korea with the three. We need to go faster. We need to go deeper. Nanotech has delivered cells. We need to, of course, flow more through them. We're actively working with other US manufacturing, as we said on the call, not quite ready to announce anybody yet, but stay tuned there. Look, we always want the boat to go faster here, but we are pleased with the demand. We think we are in a leadership role technically. We need to earn that every day. We need to deliver to L3's requirements and others.

Speaker #5: We know when these stricter requirements kick in. We're happy with where we are in Korea, with the three. We need to go faster. We need to go deeper.

Speaker #5: Nanotech has delivered cells. We need to, of course, float more through them. We're actively working with other US manufacturing as we said in the call, not quite ready to announce anybody yet, but stay tuned there.

Speaker #5: So look, we always want the boat to go faster here. But we are pleased with the demand we think we are in a leadership role technically.

Speaker #5: We need to earn that every day. We need to deliver to L3's requirements and others. We're happy with where we are. With, of course, always wanting to do what Dubois than sitting on our laurels.

Thomas Stepien: We're happy with where we are, with of course always wanting to do more than sitting on our laurels.

Tom Stepien: We're happy with where we are, with of course always wanting to do more than sitting on our laurels.

Speaker #4: Great, Tom. I appreciate the color. And Ricardo, you know, wonderful for you. Congrats again on the beat and raise. This quarter. Can you give us a little bit of color on what you're seeing that gives you, you know, the confidence to raise both revenue and the margin guidance?

Mark Shooter: Great, Tom. I appreciate the color. Ricardo, one for you. Congrats again on the beat and raise this Q. Can you give us a little bit of color on what you're seeing that gives you the confidence to raise both revenue and the margin guidance? What are you seeing?

Speaker #4: So what are you seeing?

Speaker #5: Yeah, so the revenue raise was pretty easy, just given the demand profile, right? And as the team develops a tighter relationship with some of the PAC houses, as we mentioned, and several of the OEMs, we are seeing more consistent order flow going to our customers.

Thomas Stepien: Yeah. The revenue raise was pretty easy, just given the demand profile, right? As the team develops a tighter relationship with some of the pack houses, as we mentioned, and several of the OEMs, we are seeing more consistent order flow flowing to our customers. That gives us quite a bit of visibility into the demand picture for not just the H2 of the year, but even starting to get into next year. Frankly, the demand side, there's even upside from the guidance update. We think that updating the guide to what we updated it to makes sense, just given the supply picture and how the supply chain needs to evolve here in order to deliver product, particularly in Q4 and into next year. The margin piece actually was another easy raise, right?

Ricardo Rodriguez: Yeah. The revenue raise was pretty easy, just given the demand profile, right? As the team develops a tighter relationship with some of the pack houses, as we mentioned, and several of the OEMs, we are seeing more consistent order flow flowing to our customers. That gives us quite a bit of visibility into the demand picture for not just the H2 of the year, but even starting to get into next year. Frankly, the demand side, there's even upside from the guidance update. We think that updating the guide to what we updated it to makes sense, just given the supply picture and how the supply chain needs to evolve here in order to deliver product, particularly in Q4 and into next year. The margin piece actually was another easy raise, right?

Speaker #5: And so that gives us quite a bit of visibility into the demand picture for not just the second half of the year, but even starting to get into next year.

Speaker #5: And so I mean, frankly, the demand side, there's even upside from the guidance update. But we think that updating the guide to what we updated it to make sense just given the supply picture and how the supply chain needs to evolve here.

Speaker #5: In order to deliver product particularly in Q4. And then to next year. The margin piece is actually was another easy raise, right? So if you look at our margins during the first half of the year, and you strip away half a million dollars of expenses from Colorado in Q1, and roughly 1.8 million dollars in tariffs that will no longer be there, that we had to pay here in the first half, and that we've pretty much gotten refunded at this point, then our margins would have been 27% for the first half.

Thomas Stepien: If you look at our margins during the H1 of the year, you strip away half a million dollars of expenses from Colorado in Q1, and roughly $1.8 million in tariffs that will no longer be there, that we had to pay here in the H1, and that we've pretty much gotten refunded at this point, then our margins would have been 27% for the H1. To raise that to at least 28% in the H2, as I mentioned in my remarks, we're getting a better understanding of the fixed cost elements inside of our contract manufacturing partners. It would be unfair to let those fixed costs scale up at higher volumes, especially at the higher volumes that are implied in the guide here for the H2. Raising it to at least 28% we think makes sense.

Ricardo Rodriguez: If you look at our margins during the H1 of the year, you strip away half a million dollars of expenses from Colorado in Q1, and roughly $1.8 million in tariffs that will no longer be there, that we had to pay here in the H1, and that we've pretty much gotten refunded at this point, then our margins would have been 27% for the H1. To raise that to at least 28% in the H2, as I mentioned in my remarks, we're getting a better understanding of the fixed cost elements inside of our contract manufacturing partners. It would be unfair to let those fixed costs scale up at higher volumes, especially at the higher volumes that are implied in the guide here for the H2. Raising it to at least 28% we think makes sense.

Speaker #5: And so to raise that to at least 28% in the second half, as I mentioned in my remarks, we're getting a better understanding of the fixed cost elements inside of our contract manufacturing partners.

Speaker #5: And, you know, it would be unfair to let those fixed costs scale up at higher volumes. Especially at the higher volumes that are implied in the guide here for the second half.

Speaker #5: And so, raising it to at least 28%, we think makes sense. We do need to continue having a favorable mix of, you know, at least 60% of the revenue coming from Europe, at least 60% of the revenue coming from accretive pouch cells, and we see that playing out here for the rest of the year.

Thomas Stepien: We do need to continue having a favorable mix of at least 60% of the revenue coming from Europe, at least 60% of the revenue coming from accretive pouch cells. We see that playing out here for the rest of the year.

Ricardo Rodriguez: We do need to continue having a favorable mix of at least 60% of the revenue coming from Europe, at least 60% of the revenue coming from accretive pouch cells. We see that playing out here for the rest of the year.

Speaker #4: That's great. I appreciate the color. I'll hop back into you.

Mark Shooter: That's great. I appreciate the color. I'll hop back in queue.

Speaker #5: Absolutely.

Thomas Stepien: Absolutely.

Tom Stepien: Absolutely.

Speaker #3: The next question comes from Eric Stein with Craig Hallum. Please proceed.

Mark Shooter: Thanks, Mark.

Operator 2: The next question comes from Eric Stine with Craig-Hallum. Please proceed.

Operator: The next question comes from Eric Stine with Craig-Hallum. Please proceed.

Speaker #4: Hi, Tom. Hi, Ricardo. Good morning, Eric.

Eric Stine: Hi, Tom. Hi, Ricardo.

Thomas Stepien: Hey, Eric.

Tom Stepien: Hey, Eric.

Mark Shooter: Good morning, Eric.

Speaker #5: Good morning. Can we just go back?

Eric Stine: Good morning. Can we just go back? You talked about NDAA compliance, it sounds like you've made progress on the 11 needed components, both primary and secondary suppliers. I know that one of the things, and you mentioned it, is getting those suppliers under contract. Maybe, I know last Q you indicated that you had made some progress in that regard, but would love an update.

Speaker #7: You talked about NDA compliance, and it sounds like you've made progress on the 11 needed components, both primary and secondary suppliers. But I know that one of the things, and you mentioned it, is getting those suppliers under contract.

Speaker #7: So maybe I know last quarter you indicated that you had made some progress in that regard, but would love an update.

Speaker #5: Yeah, we make progress on a weekly basis with the suppliers. I met with several when I was in Korea a couple of weeks ago. There have been, obviously, lots of discussions since getting back.

Thomas Stepien: Yeah. We make progress on a weekly basis with the suppliers. I met with several when I was in Korea a couple weeks ago. There have been lots of discussions since getting back. We have a team working on it. We have some outside folks who are actually helping accelerate. We'll get them all buttoned up here this Q under contract. Some of this is just legal reviews tend to take time. We're comfortable with the cost and the timing. In general, these new suppliers are large international companies that are actually larger revenue-wise than Amprius. We are comfortable with their ability to deliver, but you got to go through all of the operational things just to get them all lined up, aligned on the schedules. They're shipping products to different manufacturers in different countries.

Tom Stepien: Yeah. We make progress on a weekly basis with the suppliers. I met with several when I was in Korea a couple weeks ago. There have been lots of discussions since getting back. We have a team working on it. We have some outside folks who are actually helping accelerate. We'll get them all buttoned up here this Q under contract. Some of this is just legal reviews tend to take time. We're comfortable with the cost and the timing. In general, these new suppliers are large international companies that are actually larger revenue-wise than Amprius. We are comfortable with their ability to deliver, but you got to go through all of the operational things just to get them all lined up, aligned on the schedules. They're shipping products to different manufacturers in different countries.

Speaker #5: We have a team working on it. We have some outside folks who are actually helping accelerate we'll get them all buttoned up here this quarter under contract.

Speaker #5: Some of this is just legal reviews tend to take time we're comfortable with the cost and the timing. In general, these new suppliers are large international companies that are actually larger revenue-wise.

Speaker #5: So we are comfortable with their ability to deliver. But you got to go through all of the operational things just to get them all lined up, aligned on the schedules.

Speaker #5: They're shipping products to different manufacturers in different technically hard, but it's a little bit complex just on the planning side.

Thomas Stepien: It's not technically hard, but it's a little bit complex just on the planning side.

Tom Stepien: It's not technically hard, but it's a little bit complex just on the planning side.

Speaker #4: Okay. Okay, that's great. Thanks for that update. And then maybe second one for me. I mean, obviously, defense is and should be a primary focus here on this call.

Eric Stine: That's great. Thanks for that update. Maybe second one for me, obviously, defense is and should be a primary focus here on this call, but I would just like to talk about the commercial side. I do see that recently DoorDash got this Part 135 certification from the FAA for drone delivery. Just curious, I know that that company is one of, it's like eight to nine companies that have it. Going forward, do you envision this as being a company-by-company certification? Does the FAA potentially do something that opens it up more broadly? I know that, certainly, a very sizable commercial drone opportunity as well.

Speaker #4: But I would just like to talk about the commercial side. I do see that recently DoorDash got this part 135 certification from the FAA.

Speaker #4: You know, for drone delivery. And, you know, just curious, I know that that company is one of—it's like eight to nine companies that have it.

Speaker #4: But going forward, do you envision this as being a company-by-company certification? Does the FAA potentially do something that opens it up more broadly? Because I know that, I mean, certainly a very sizable commercial drone opportunity as well.

Speaker #5: Yeah. So we have a start with Matternet, as we talked about in our last call. And that is a foothold. And we're starting to expand.

Thomas Stepien: Yeah. We have a start with Matternet, as we talked about in our last call, and that is a foot cold, and we're starting to expand. I don't know that the FAA would certify batteries. I think they tend to do that on a vehicle-by-vehicle basis. We're not FAA experts here. That's part of what the change we did with Ronnie and Anne. The new delivery drones won't necessarily help us make the next quarter. Certainly, planting seeds and getting in and understanding what they require and comparing that to our current suite of is something we're asking Ronnie to do so that we can turn those seeds that we plant into revenue in future quarters. We're on it. We'd like that boat to go faster also. We believe that, gosh, shouldn't those delivery vehicles be able to use our batteries?

Tom Stepien: Yeah. We have a start with Matternet, as we talked about in our last call, and that is a foot cold, and we're starting to expand. I don't know that the FAA would certify batteries. I think they tend to do that on a vehicle-by-vehicle basis. We're not FAA experts here. That's part of what the change we did with Ronnie and Anne. The new delivery drones won't necessarily help us make the next quarter. Certainly, planting seeds and getting in and understanding what they require and comparing that to our current suite of is something we're asking Ronnie to do so that we can turn those seeds that we plant into revenue in future quarters. We're on it. We'd like that boat to go faster also. We believe that, gosh, shouldn't those delivery vehicles be able to use our batteries?

Speaker #5: I don't know that the FAA would certify batteries. I think they tend to do that on a vehicle-by-vehicle basis. We're not FAA experts here.

Speaker #5: But that's part of what the change we did with Ronnie and Ann. The new delivery drones won't necessarily help us make the next quarter.

Speaker #5: Certainly planting seeds and getting and understanding what they require and comparing that to our current suite of is something we're asking Ronnie to do so that we can turn those seeds that we plant into revenue in future quarters.

Speaker #5: So we're on it. We'd like that boat to go faster. Also, but we believe that, gosh, shouldn't those delivery vehicles be able to use our batteries?

Speaker #5: Can they deliver to the whole block? Can the so they can they go longer? Can they deliver a greater payload? A lot of these payloads are limited to a couple kilos.

Thomas Stepien: Can they deliver to the whole block? Can they go longer? Can they deliver a greater payload? A lot of these payloads are limited to a couple kilos. Well, we probably could double that. We believe the promise is there. We have work to do to earn the trust of DoorDash, who you mentioned, and others.

Tom Stepien: Can they deliver to the whole block? Can they go longer? Can they deliver a greater payload? A lot of these payloads are limited to a couple kilos. Well, we probably could double that. We believe the promise is there. We have work to do to earn the trust of DoorDash, who you mentioned, and others.

Speaker #5: Well, we probably could double that. So we believe the promise is there. We have work to do to earn the trust of DoorDash, who you mentioned, and others.

Speaker #4: Okay. Thank you.

Eric Stine: Okay. Thank you.

Speaker #5: Thank you.

Thomas Stepien: Thank you.

Tom Stepien: Thank you.

Speaker #3: The next question comes from Austin Boley with Needham and Company. Please proceed.

Operator 2: The next question comes from Austin Bohlig with Needham & Company. Please proceed.

Operator: The next question comes from Austin Bohlig with Needham & Company. Please proceed.

Speaker #4: Thanks for taking my question and congrats on the great results. Tom, first, just maybe wanted to dive into like the key geographies and outlook that's kind of driving the upside would you kind of characterize is this as more momentum, domestically in the US, or internationally?

Austin Bohlig: Thanks for taking my question, congrats on the great results. Tom, first, just maybe wanted to dive into the key geographies and outlook that's driving the upside. Would you characterize this as more momentum domestically in the US or internationally?

Speaker #5: So international has been strong. Europe's been very strong. And we talk about last quarter it was 75%. It was a little bit less, I think, Europe.

Thomas Stepien: International has been strong. Europe's been very strong. We talk about last quarter was 75%. It was a little bit less, I think, Europe, this quarter. That's a really solid base. We are happy with Redwire, as we mentioned in the remarks, and others that seem to be coming on. We see some of the flow down from the fiscal government 2026, whether it's Drone Dominance programs or other spend that we're starting to see. In our last call 90 days ago, we referenced a couple of our customers that were receiving money from that. It's starting, and it's getting a little bit better balance. We also see a better balance, that's part of what we like about Stark, is that there's a better balance also with not just drones, but eMobility is starting to come on in an increasing way.

Tom Stepien: International has been strong. Europe's been very strong. We talk about last quarter was 75%. It was a little bit less, I think, Europe, this quarter. That's a really solid base. We are happy with Redwire, as we mentioned in the remarks, and others that seem to be coming on. We see some of the flow down from the fiscal government 2026, whether it's Drone Dominance programs or other spend that we're starting to see. In our last call 90 days ago, we referenced a couple of our customers that were receiving money from that. It's starting, and it's getting a little bit better balance. We also see a better balance, that's part of what we like about Stark, is that there's a better balance also with not just drones, but eMobility is starting to come on in an increasing way.

Speaker #5: This quarter, so that's a really solid base. We are happy with Redwire, as we mentioned in the remarks. And others that seem to be coming on.

Speaker #5: We see some of the flow down from the fiscal government 2026, whether it's drone dominance programs or other spend. There were starting to see our in our last call, 90 days ago, we referenced a couple of our customers that were receiving money from that.

Speaker #5: So it's starting as getting a little bit better balance. We also see a better balance. That's part of what we like about Stark. Is that there's a better balance also.

Speaker #5: With not just drones, but e-mobility is starting to come on in an increasing way. So over time, I think we'll see a better or balance between Europe and US.

Thomas Stepien: Over time, I think we'll see a better balance between Europe and US, Asia, eMobility and drones, and even within drones, not just defense, but delivery, public safety, as we've talked about.

Tom Stepien: Over time, I think we'll see a better balance between Europe and US, Asia, eMobility and drones, and even within drones, not just defense, but delivery, public safety, as we've talked about.

Speaker #5: Asia, e-mobility and drones. And then even within drones, not just defense, but delivery public safety as we've talked about.

Speaker #4: Okay. Well, and I just kind of to piggyback off that, so super excited opportunity. You're working with half of the drone dominance customers. Like, could you maybe walk through maybe kind of like the content per drone with this opportunity?

Austin Bohlig: Well, just to piggyback off that, super excited opportunity. You're working with half of the Drone Dominance customers. Could you maybe walk through the content per drone with this opportunity? I know you included some slides in your deck, just would love to get a little bit more clarity on what the opportunity could be here just with this one program.

Speaker #4: I know you included some slides. In your deck, but just would love to get a little bit more clarity on what the opportunity could be here just with this one program.

Speaker #5: Yeah. So we did include Ricardo did a nice job putting some of those slides in because we got that question last time, which is, okay, about with these different types of drones, what are a typical size batteries and then what is the potential cell content?

Thomas Stepien: Yeah. We did include, Ricardo did a nice job of putting some of those slides in because we got that question last time, which is okay about with these different types of drones, what are typical size batteries, and what is the potential cell content? Slide 10 and 11 in the deck, I think was really helpful. If you look at that, obviously with the larger group 3 drones, the group 4 and 5 drones tend to be fuel-based. 1, 2, 3 are battery-based. Group 3 drones use more content than group 1 drones. I would direct listeners to that slide.

Tom Stepien: Yeah. We did include, Ricardo did a nice job of putting some of those slides in because we got that question last time, which is okay about with these different types of drones, what are typical size batteries, and what is the potential cell content? Slide 10 and 11 in the deck, I think was really helpful. If you look at that, obviously with the larger group 3 drones, the group 4 and 5 drones tend to be fuel-based. 1, 2, 3 are battery-based. Group 3 drones use more content than group 1 drones. I would direct listeners to that slide.

Speaker #5: So slide 10 and 11 in the deck. I think was really helpful. And if you look at that, obviously with the larger group three drones, the group four and five drones tend to be fuel-based.

Speaker #5: One, two, three are battery-based. Three, group three drones use more content than group one drones. So I would direct listeners to that slide 10 and 11 in the deck.

Ricardo Rodriguez: Yeah. There's slides 10 and 11 in the deck.

Thomas Stepien: Yeah.

Tom Stepien: Yeah.

Speaker #5: Yeah.

Ricardo Rodriguez: Yeah.

Speaker #4: Yeah. But the nice thing is, is that they tend to be pretty sticky, right? So once we do earn the trust of these customers—and sometimes it takes a couple of quarters to earn that trust—they tend to stay with our batteries.

Thomas Stepien: The nice thing is that they tend to be pretty sticky, right? Once we do earn the trust of these customers, and sometimes it takes a couple quarters to earn that trust, they tend to stay with our batteries. They look to us because we're sometimes up to 50% better, 80% better in some cases, for flight time, which is super important in the scoring of these shootouts. That's our view of DDP and some of the other opportunities.

Tom Stepien: The nice thing is that they tend to be pretty sticky, right? Once we do earn the trust of these customers, and sometimes it takes a couple quarters to earn that trust, they tend to stay with our batteries. They look to us because we're sometimes up to 50% better, 80% better in some cases, for flight time, which is super important in the scoring of these shootouts. That's our view of DDP and some of the other opportunities.

Speaker #4: They look to us because we're sometimes up to 50% better, 80% better in some cases, for flight time, which is super important in the scoring of these shootouts.

Speaker #4: So that's our view of DDP and some of the other opportunities. Okay, great. And I guess just kind of my last one for Ricardo, just thinking about the incremental opex you guys think you might need as revenue scale here and we'll see these revenues flow to the bottom line.

Austin Bohlig: Okay, great. I guess just kind of my last one for Ricardo, just thinking about the incremental OpEx you guys think you might need as revenues scale here, and we'll see these revenues flow to the bottom line.

Speaker #5: Yeah, we had a bulk of the opex increases here in Q2 on the which, you know, pulled ahead some of the investments that we want to make in our go-to-market efforts.

Ricardo Rodriguez: Yeah, we had a bulk of the OpEx increases here in Q2, which pulled ahead some of the investments that we want to make in our go-to-market efforts. I do think that in Q3, that'll continue. We'll probably add another $1 million of OpEx per quarter. For Q4, we're looking at holding it flat and then really testing ourselves to see how much we can maintain the growth with that level of OpEx. The bulk of the resources that we would be adding would be really on just managing the supply chain beyond what we've already invested on go to market.

Speaker #5: I do think that in Q3 that'll continue will probably add another million dollars of opex per quarter. And then for Q4, we're looking at holding it flat.

Speaker #5: And then really testing ourselves to see how much we can maintain the growth with that level of opex. The bulk of the resources that we would be adding would be really on just managing the supply chain beyond what we've already invested on go-to-market.

Speaker #4: Okay, awesome. We'll keep up the great work. Thank you, guys.

Austin Bohlig: Okay, awesome. Well, keep up the great work. Thank you, guys.

Speaker #5: Thanks. Awesome. Thank you.

Thomas Stepien: Awesome. Thank you.

Tom Stepien: Awesome. Thank you.

Ricardo Rodriguez: Awesome.

Speaker #3: The next question comes from Ryan Finks with B. Riley. Please proceed.

Operator 2: The next question comes from Ryan Finks with B. Riley. Please proceed.

Operator: The next question comes from Ryan Finks with B. Riley. Please proceed.

Speaker #4: Good morning, guys. Thanks for taking the questions.

Ryan Finks: Good morning, guys. Thanks for taking the questions.

Ryan Pfingst: Good morning, guys. Thanks for taking the questions.

Speaker #5: Hey, Ryan.

Ricardo Rodriguez: Hey, Ryan.

Speaker #4: Morning, Ryan. Hey, Ricardo. Morning, Tom. Tom, you talked about robotics. A bit earlier, just wanted to dig in a little bit more there. Curious what Amprius is doing today.

Thomas Stepien: Morning, Ryan.

Tom Stepien: Morning, Ryan.

Ryan Finks: Hey, Ricardo. Morning, Tom. Tom, you talked about robotics a bit earlier. Just wanted to dig in a little bit more there. Curious what Amprius is doing today that will help the company position itself with customers as that market starts to scale commercially.

Ryan Pfingst: Hey, Ricardo. Morning, Tom. Tom, you talked about robotics a bit earlier. Just wanted to dig in a little bit more there. Curious what Amprius is doing today that will help the company position itself with customers as that market starts to scale commercially.

Speaker #4: That'll help the company position itself with customers as that market starts to scale commercially.

Speaker #5: Yeah. Step one is to get smarter. We attended Automate in Chicago, six to eight weeks ago. It was our first booth at a robotics show. Some of the takeaways for us are that our cells perform really well with robots that are in unstructured environments.

Thomas Stepien: Yeah. Step one is to get smarter. We attended Automate in Chicago, six, eight weeks ago, our first booth at a robotics show. Some of the takeaways for us are that our cells perform really well with robots that are in unstructured environments. Think of the dog-like robots and even some of the humanoids that are not necessarily inside of a very organized factory. For another example, we are not pursuing is in a warehouse robot that can go around the corner and plug itself in. You do not necessarily need high energy density or the right power high energy mix for those applications. If you are unstructured, if there is uncertainty in whatever you are doing from the robot perspective, that is where you value the energy and power mix. We have analyzed some of the current required on some of these robots. If you are lifting, there is a spike in current.

Tom Stepien: Yeah. Step one is to get smarter. We attended Automate in Chicago, six, eight weeks ago, our first booth at a robotics show. Some of the takeaways for us are that our cells perform really well with robots that are in unstructured environments. Think of the dog-like robots and even some of the humanoids that are not necessarily inside of a very organized factory. For another example, we are not pursuing is in a warehouse robot that can go around the corner and plug itself in. You do not necessarily need high energy density or the right power high energy mix for those applications. If you are unstructured, if there is uncertainty in whatever you are doing from the robot perspective, that is where you value the energy and power mix. We have analyzed some of the current required on some of these robots.

Speaker #5: So think of the dog-like robots and even some of the humanoids that aren't necessarily inside of a very organized factory or another example. We're not pursuing is in a warehouse robot that can go around the quarter and plug itself in.

Speaker #5: You don't necessarily need high-energy density or the right power energy mix for those applications. But if you are unstructured, if there's uncertainty in whatever you're doing, and a robot perspective, that's where you value the energy and power mix.

Speaker #5: We've analyzed some of the current required on some of these robots and if you're lifting, there's a spike in current. Okay, you need a certain type of battery to do that.

Tom Stepien: If you are lifting, there is a spike in current. Okay, you need a certain type of battery to do that. Certainly, if you are wandering around in, again, unstructured areas, you don't have the certainty of when you're going to be able to charge next. Longer runtime, higher energy density is prized by robots like that. That learning allows us to focus. Again, some of the executive changes we've made to focus and understand where we can win, where do we play and how do we win, as part of some of the change we made with Ronnie, that the seeds that he'll be planting here will turn into revenue as that market does expand and begin.

Thomas Stepien: Okay, you need a certain type of battery to do that. Certainly, if you are wandering around in, again, unstructured areas, you don't have the certainty of when you're going to be able to charge next. Longer runtime, higher energy density is prized by robots like that. That learning allows us to focus. Again, some of the executive changes we've made to focus and understand where we can win, where do we play and how do we win, as part of some of the change we made with Ronnie, that the seeds that he'll be planting here will turn into revenue as that market does expand and begin.

Speaker #5: Certainly, if you are wandering around in, again, unstructured areas, you don't have the certainty of when you're going to be able to charge next.

Speaker #5: So longer runtime, higher energy density is prized by robots like that. So it allows us that learning allows us to focus and again, some of the executive changes we've made to focus and understand where we can win where do we play and how do we win as part of some of the change we made with Ronnie.

Speaker #5: So that the seeds that he'll be planting here will turn into revenue as that market does expand and get.

Speaker #4: Appreciate that. And then maybe turning to another adjacent market, Ricardo, you just mentioned earlier that you have a team looking at data centers. Could you talk a little bit more about that and just remind us where Amprius could fit in in that ecosystem?

Ryan Finks: Appreciate that. Maybe turning to another adjacent market, Ricardo, you just mentioned earlier that you have a team looking at data centers. Could you talk a little bit more about that and just remind us where Amprius could fit in in that ecosystem?

Ryan Pfingst: Appreciate that. Maybe turning to another adjacent market, Ricardo, you just mentioned earlier that you have a team looking at data centers. Could you talk a little bit more about that and just remind us where Amprius could fit in in that ecosystem?

Speaker #5: Yeah, it's a pretty initial look, but if you look at the power requirements of in the of some of the CPUs in there, it only keeps increasing.

Ricardo Rodriguez: Yeah, it's a pretty initial look, but if you look at the power requirements of some of the CPUs in there, it only keeps increasing. While they're using some super capacitors to sort of flatten the lines of the high power draws from these chips, you may need actually a high power cell that's pretty close immediately behind those super capacitors to help, in essence, flatten the load in the system, right? That's where we see a huge opportunity for basically a high power cylindrical cell that can be very close to the rack, literally providing one to 60 seconds of runtime, recharging, and then being there ready again for whenever the power's not available. Yeah, we do see that's an opportunity there for the taking. We're having some initial discussions with some of the integrators of these racks and the infrastructure around the compute.

Speaker #5: And while they're using some supercapacitors to sort of flatten the line of the high-power draws from these chips, you may need actually a high-power cell that's pretty close immediately behind those supercapacitors to help, in essence, flatten the load in the system, right?

Speaker #5: And so that's where we see a huge opportunity for basically a high-power cylindrical cell that can be very close to the rack, literally providing one to 60 seconds of runtime recharging and then being there ready again for whenever the power is not available.

Speaker #5: And so yeah, we do see that that's an opportunity there for the taking. We're having some initial discussions with some of the integrators of these racks and the infrastructure around the compute.

Speaker #5: And yeah, so we'll come back when and report when we've got customer traction there.

Ricardo Rodriguez: Yeah, we'll come back and report when we've got customer traction there.

Speaker #4: I appreciate it, guys.

Ryan Finks: I appreciate it, guys.

Ryan Pfingst: I appreciate it, guys.

Speaker #5: Absolutely.

Ricardo Rodriguez: Absolutely.

Speaker #1: Thanks, Ryan.

Thomas Stepien: Thanks, Ryan.

Tom Stepien: Thanks, Ryan.

Speaker #3: And the next question comes from Tim Moore with ClearStreet. Please proceed.

Operator 2: The next question comes from Tim Moore with Clear Street. Please proceed.

Operator: The next question comes from Tim Moore with Clear Street. Please proceed.

Speaker #2: Thanks. And nice execution of the quarter. Yeah, you're destined to get very high operating leverage on your SG&A expense over the next few years.

Tim Moore: Thanks, nice execution in the quarter. You're destined to get very high operating leverage on your SG&A expense over the next few years. I just wanted to follow up on the thread of your gross margin guidance hike, which is really more impressive, I think, than your revenue raise. Just going back to your 2030 financial targets, above 30% gross margin, how should we think about that maybe possibly getting moved up a year earlier? I mean, you're going to get some tailwinds on efficiency and shipping and logistics costs, which will probably improve a lot. I know you mentioned earlier there should be pouch cell accretion from the margin profile as you grow out pouch cells more to probably offset maybe some of the couple other of the non-military margin profiles.

Speaker #2: So I just want to follow up on the thread of your gross margin guidance hike, which was really more impressive, I think, than your revenue raise.

Speaker #2: So just going back to your 2030 financial targets above 30% gross margin, how should we think about that maybe possibly getting moved up a year earlier?

Speaker #2: I mean, you're going to get some tailwinds on efficiency and shipping and logistics costs, which have probably improved a lot. I know you mentioned earlier there should be pouch cell accretion from the margin profile as you grow out pouch cells more, to probably offset maybe some of the other non-military margin profiles.

Speaker #2: So if you can just maybe talk about the puts and takes on could you get to 30% plus gross margin in 2029?

Tim Moore: if you could just maybe talk about the puts and takes on could you get to 30% plus gross margin in 2029?

Speaker #5: I mean, we'll always try to do it sooner. And I think the elements are definitely there. For the taking, right? But we also just want to be cognizant of what we're signing up for.

Ricardo Rodriguez: We will always try to do it sooner. I think the elements are definitely there for the taking, right? We also just want to be cognizant of what we're signing up for. As you've seen us in the way that we've guided this year, our goal is to deliver what we promise and a little bit more. I do see your point on the 30% potentially having more opportunity to frankly be higher and also to get pulled ahead. One of the things that we're managing here over the next, let's say, 12 to 24 months, is the full NDAA compliance, and that comes with a different cost structure that we frankly need to get paid for. Executing that and giving ourselves room to execute that is why we've put the 30% plus gross margin target out by 2030.

Speaker #5: And as you've seen us in the way that we've guided this year, our goal is to deliver what we promise and a little bit more.

Speaker #5: And so I do see your point on the 30% potentially having more opportunity to frankly be higher and also to get pulled ahead. But one of the things that we're managing here over the next, let's say, 12 to 24 months is the full NDAA compliance.

Speaker #5: And that comes with a different cost structure that we frankly need to get paid for. And so executing that and giving ourselves room to execute that is why we've put the 30% plus gross margin target out by 2030.

Speaker #5: And but yeah, I mean, we'll pull it ahead. If we can. And the main driver, frankly, Tim, is just revenue mix, right? So if we are able to sell more customized pouch cells, we'll be able to get there sooner.

Ricardo Rodriguez: Yeah, we'll pull it ahead if we can. The main driver, frankly, Tim, is just revenue mix, right? If we are able to sell more customized pouch cells, we'll be able to get there sooner. If we go and hunt some of the cylindrical cell opportunities, which again, can be accretive if we're careful, then I think that'll help us get there. Yeah, no, we'll definitely do everything we can here to pull that ahead. Again, sort of the same caution that I gave to everybody when we reported Q3 last year, it won't be totally straight up and to the right.

Speaker #5: And if we go and hunt some of the cylindrical cell opportunities, which again, can be accretive if we're careful, then I think that'll help us get there.

Speaker #5: But yeah, no, I mean, we'll definitely do everything we can here to pull that ahead. But again, I mean, sort of the same caution that I gave to everybody when we reported Q3 last year, it won't be totally straight up into the right.

Speaker #5: There will be a quarter or two where as we manage the mix or if North America revenue increases and we haven't totally gotten started getting paid for some of the expenses to become NDAA compliant, the margins could actually take a slight step back in that given quarter, right?

Ricardo Rodriguez: There will be a quarter or two whereas we manage the mix or if North America revenue increases and we haven't totally gotten started getting paid for some of the expenses to become NDAA compliant, the margins could actually take a slight step back, in that given quarter, right? It'll be a journey, but I'm hoping that with the way we've performed here, three quarters under our belt of delivering gross margins and telling people what it's going to be, and then coming in and delivering something that's slightly ahead of that. Hopefully, we got the trust to execute through this lumpiness over the next two years or so as we become fully NDAA compliant.

Speaker #5: So it'll be a journey, but I'm hoping that with the way we've performed here, three quarters under our belt of delivering gross margins and telling people what it's going to be and then coming in and delivering something that's slightly ahead of that, hopefully we got the trust to execute through this lumpiness over the next two years or so as we become fully NDAA compliant.

Speaker #2: That's really helpful color, Ricardo. I appreciate. My second question, my only other one, is just on the whole pouch cells. Given that you're almost fully NDAA compliant, and you've got Nanotech for the cylindricals, just shifting my thoughts to pouch cell manufacturing domestically, would you without giving away too much, are you getting close to maybe purchasing an existing facility in the US to retool to convert to pouch cell manufacturing?

Operator 1: That's really helpful color, Ricardo. I appreciate. My second question, my only other one, is just on the whole pouch cells. Given that you're almost fully NDAA compliant, and you got Nanotech for the cylindricals, just shifting my thoughts to pouch cell manufacturing domestically, without giving away too much, are you getting close to maybe purchasing an existing facility in the US to retool, to convert to pouch cell manufacturing? I'm sure there's some excess capacity from lithium batteries out there by a handful of players I can think of, for EVs that you could retool. That would really help your US manufacturing. Just kind of curious around that and potential timing.

Tim Moore: That's really helpful color, Ricardo. I appreciate. My second question, my only other one, is just on the whole pouch cells. Given that you're almost fully NDAA compliant, and you got Nanotech for the cylindricals, just shifting my thoughts to pouch cell manufacturing domestically, without giving away too much, are you getting close to maybe purchasing an existing facility in the US to retool, to convert to pouch cell manufacturing? I'm sure there's some excess capacity from lithium batteries out there by a handful of players I can think of, for EVs that you could retool. That would really help your US manufacturing. Just kind of curious around that and potential timing.

Speaker #2: I'm sure there's some excess capacity from lithium batteries out there by a handful of players I can think of for EVs that you could retool.

Speaker #2: I mean, that would really help your US manufacturing just kind of curious around that and potential timing.

Speaker #5: Yeah, Tim. I mean, you're basically reading our mind, right? It's no secret that we're out there looking for a partner to do that for us.

Ricardo Rodriguez: Yeah, Tim. You're basically reading our mind, right? It's no secret that we're out there looking for a partner to do that for us, and there's plenty of capacity from folks who leaned into EVs maybe too aggressively here over the past couple of years. We would just say stay tuned.

Speaker #5: And there's plenty of capacity from folks who leaned into EVs maybe too aggressively here over the past couple of years. And so we would just say stay tuned.

Speaker #4: Yeah. And just to clarify, Tim, it likely will not be Amprius purchasing the facility. Our model is, as everyone knows, to work with partners.

Thomas Stepien: Yeah, and just to clarify, Tim, it likely will not be Amprius purchasing the facility. Our model is, as everyone knows, to work with partners. Whatever we do, whether it's in the US or other geographies, will very likely be done with partners. As Ricardo says, there's lots of partners in the US, and there is capacity available. Watch this spot.

Tom Stepien: Yeah, and just to clarify, Tim, it likely will not be Amprius purchasing the facility. Our model is, as everyone knows, to work with partners. Whatever we do, whether it's in the US or other geographies, will very likely be done with partners. As Ricardo says, there's lots of partners in the US, and there is capacity available. Watch this spot.

Speaker #4: We would, whatever we do, whether it's in the US or other geographies, will very likely be done with partners. But as Ricardo says, there's lots of partners in the US and there is capacity available.

Speaker #4: So watch this spot.

Speaker #5: The other bit is that if you look at the capex that goes into producing our cells, it's not all alike, right? So, for example, the last thing people need is another building producing cells.

Ricardo Rodriguez: The other bit is that if you look at the CapEx that goes into producing our cells, it's not all alike, right? For example, the last thing people need is another building producing cells. You have the equipment inside of these facilities to produce the cells. We're seeing that the investment on the equipment can basically be about a third of what it takes building-wise. We learned in Colorado what it would've taken to build a building around a cell line. I do think that if you get your business model to work out, the payback on that equipment inside of the building, which ideally we don't need to pay for, you can get that back within two to three years if you manage to fill the capacity. Right?

Speaker #5: Then you have the equipment inside of these facilities to produce the cells. We're seeing that the investment in equipment can basically be about a third of what it costs building-wise.

Speaker #5: We learned in Colorado what it would have taken to build a building around a cell line. And then I do think that if you get your business model to work out, the payback on that equipment inside of the building, which ideally we don't need to pay for, you can get that back within two to three years if you manage to fill the capacity, right?

Speaker #5: And so we're getting quite a few signals on the capacity, the demand being there very clearly as we talked to the DOW. And yeah, we just need to put the pieces together to deliver that.

Ricardo Rodriguez: We're getting quite a few signals on the capacity, the demand being there very clearly as we talk to the DOD, and yeah, we just need to put the pieces together to deliver that.

Speaker #2: No, that's great color. And thanks for clarifying. It won't be a purchase because you just got rid of Colorado. But that makes sense. A third as much capex.

Tim Moore: No, that's great color, and thanks for clarifying. It won't be a purchase because you just got rid of Colorado, but that makes sense that there is much CapEx. That's it for my questions. Thank you.

Speaker #2: So that's it for my questions. Thank you.

Speaker #4: Tim, thank you.

Thomas Stepien: Tim, thank you.

Tom Stepien: Tim, thank you.

Speaker #1: Thank you. The next question comes from Chip Moore with Roth MKM. Please proceed.

Operator 2: Thank you. The next question comes from Chip Moore with ROTH MKM. Please proceed.

Operator: Thank you. The next question comes from Chip Moore with ROTH MKM. Please proceed.

Speaker #3: Hey, morning, Tom and Ricardo. Thanks for taking the question.

Chip Moore: Hey. Morning, Tom and Ricardo. Thanks for taking the question.

Thomas Stepien: Hey, Chip. Morning, Chip.

Tom Stepien: Hey, Chip. Morning, Chip.

Speaker #5: Hey, Chip. Morning.

Speaker #3: Hey, guys. I wanted to go back to drum dominance program. Half of those finalists using Sycor, and it sounds like you're talking to everybody.

Chip Moore: Hey. Hey, guys. I wanted to go back to Drone Dominance program. Half of those finalists using SiCore, and it sounds like you're talking to everybody, just the real testament to the performance. Maybe expand on the competitive environment and the alternatives out there and what you're seeing.

Speaker #3: Just the real testament to the performance. Maybe expand on the competitive environment and the alternatives out there and what you're seeing.

Speaker #4: Yeah. So look, it's very competitive. We tend to win because of the energy density, and it really depends on some of the scoring, right?

Thomas Stepien: Yeah. Look, it's very competitive. We tend to win because of the energy density. It really depends on some of the scoring, right? These shootouts, the gauntlets, as they're called, are scored on a couple of different fronts, a couple different metrics. Some of it is a duration, how far, how long these drones can fly. There's videos on the Drone Dominance website that go through mock buildings and things like that. In general, higher energy density is better. There is a cylindrical pouch mix. If you really want a fully optimized drone, you tend to use pouch because you get greater energy density. Pouch packs and pouch cells are a little bit harder to integrate compared to cylindrical cells. There's a dynamic going on there. That's exactly what our sales folks are focused on.

Tom Stepien: Yeah. Look, it's very competitive. We tend to win because of the energy density. It really depends on some of the scoring, right? These shootouts, the gauntlets, as they're called, are scored on a couple of different fronts, a couple different metrics. Some of it is a duration, how far, how long these drones can fly. There's videos on the Drone Dominance website that go through mock buildings and things like that. In general, higher energy density is better. There is a cylindrical pouch mix. If you really want a fully optimized drone, you tend to use pouch because you get greater energy density. Pouch packs and pouch cells are a little bit harder to integrate compared to cylindrical cells. There's a dynamic going on there. That's exactly what our sales folks are focused on.

Speaker #4: These shootouts, the gauntlets, as they’re called, are scored on a couple of different fronts—a couple of different metrics. One is duration: how far, how long, these drones can fly.

Speaker #4: There's videos on the drone dominance websites that go through mock buildings and things like that. So in general, higher energy density is better. There is a cylindrical pouch mix if you really want a fully optimized drone.

Speaker #4: You tend to use pouch because you get greater energy density. Pouch packs and pouch cells are a little bit harder to integrate compared to cylindrical cells.

Speaker #4: So there's a dynamic going on there. But that's exactly what our sales folks are focused on. Like we tried to describe in earlier question about delivery drones.

Thomas Stepien: Like we tried to describe in an earlier question about delivery drones. Look, all of these vehicles, even certain types of robots, even these satellites, gosh, why are they not using our cells? Is a question that we start with and then try to understand that and dig in so that we can learn. We have a reasonably malleable platform. I mentioned the five different chemistries that we have. Gosh, we should be able to get something in front of these in order to win their trust, to win their business. That is how we think about it. We got work to do. We are happy that we are in about half of the 19 for the upcoming gauntlet here at the end of the month. We have more work to do.

Tom Stepien: Like we tried to describe in an earlier question about delivery drones. Look, all of these vehicles, even certain types of robots, even these satellites, gosh, why are they not using our cells? Is a question that we start with and then try to understand that and dig in so that we can learn. We have a reasonably malleable platform. I mentioned the five different chemistries that we have. Gosh, we should be able to get something in front of these in order to win their trust, to win their business. That is how we think about it. We got work to do. We are happy that we are in about half of the 19 for the upcoming gauntlet here at the end of the month. We have more work to do.

Speaker #4: Look, all of these vehicles even certain types of robots even these satellites gosh, why are they not using our cells is a question that we start with.

Speaker #4: And then try to understand that and dig in so that we can learn. We have a reasonably malleable platform. I mentioned the five different chemistries.

Speaker #4: That we have gosh, we should be able to get something in front of these in order to win their trust, to win their business.

Speaker #4: That's how we think about it. We got work to do. We're happy that we're in about half of the 19 for the upcoming gauntlet here at the end of the month.

Speaker #4: But we have more work to do.

Speaker #3: So it's, yeah, no, that's helpful. Tom, and for my follow-up, maybe on go-to-market, at a high level, just talk about visibility or any differences pack partners versus OEMs.

Chip Moore: Always. Yeah. No, that is helpful, Tom. For my follow-up, maybe on go to market, can you at a high level just talk about visibility or any differences, pack partners versus OEMs, and as we think about that flywheel, how do you see that mix evolving, say, over the next two, three years?

Speaker #3: And as we think about that flywheel how do you see that mix evolving, say, over the next two, three years?

Speaker #5: Yeah. So the pack partners are really

Thomas Stepien: Yeah. The pack partners are really an extension of our team. Some drone companies and other vehicles rely on pack partners and ask those companies to make a recommendation. We like to be at the top of the list for those partners, right? We are trying to build out this ecosystem, as all growing companies do. I referenced the nine that are on our website, and there is a gold, silver, bronze type thinking as we go deeper and get closer to those partners. In terms of visibility, it is getting better, right? Some of the companies are not able to give us multi-quarter purchase orders because frankly, they do not have the visibility.

Tom Stepien: Yeah. The pack partners are really an extension of our team. Some drone companies and other vehicles rely on pack partners and ask those companies to make a recommendation. We like to be at the top of the list for those partners, right? We are trying to build out this ecosystem, as all growing companies do. I referenced the nine that are on our website, and there is a gold, silver, bronze type thinking as we go deeper and get closer to those partners. In terms of visibility, it is getting better, right? Some of the companies are not able to give us multi-quarter purchase orders because frankly, they do not have the visibility.

Speaker #4: An extension of our team. Some drone companies and other vehicles rely on pack partners, and that's those companies to make a recommendation. We like to be at the top of the list for those partners, right?

Speaker #4: And we're trying to build out this ecosystem. Growing companies do. I reference the nine that are on our website and there's a gold, silver, bronze type thinking as we go deeper and get closer to those partners.

Speaker #4: In terms of visibility, it's getting better, right? Some of the companies aren't able to give us multi-quarter purchase orders because frankly, they don't have the visibility.

Speaker #4: But as you get more companies like Redwire, which we mentioned during the call, and a couple of companies from the last call, as those companies start to get under contract with whoever they are supplying their vehicles to, then the visibility to us increases.

Thomas Stepien: As you get more companies like Redwire, we mentioned during the call, and a couple of companies from the last call, as those companies start to get under contract with whoever they are supplying their vehicles to, the visibility to us increases. It is getting better. We have obviously very good visibility here in Q3 and in Q4, it gets a little bit grainy as you go out to 2027. That has been natural, I think, over the last year or so. It has gotten better. Just like the last question, Chip, we have work to do there. It is certainly going in the right direction.

Tom Stepien: As you get more companies like Redwire, we mentioned during the call, and a couple of companies from the last call, as those companies start to get under contract with whoever they are supplying their vehicles to, the visibility to us increases. It is getting better. We have obviously very good visibility here in Q3 and in Q4, it gets a little bit grainy as you go out to 2027. That has been natural, I think, over the last year or so. It has gotten better. Just like the last question, Chip, we have work to do there. It is certainly going in the right direction.

Speaker #4: So it's getting better. We still we have obviously very good visibility here in Q3 and in Q4, but it gets a little bit grainy as you go out to 2027.

Speaker #4: That's been natural, I think, over the last year or so. It's gotten better. But just like the last question, Chip, we have work to do there.

Speaker #4: But it's certainly going in the right direction.

Speaker #3: Definitely. Thanks very much.

Chip Moore: Definitely. Thanks very much.

Speaker #4: Thank you.

Thomas Stepien: Thank you.

Tom Stepien: Thank you.

Speaker #1: The next question comes from Derek Soderbergh with Cantor Fitzgerald. Please proceed.

Operator 2: The next question comes from Derek Soderberg with Cantor Fitzgerald. Please proceed.

Operator: The next question comes from Derek Soderberg with Cantor Fitzgerald. Please proceed.

Speaker #2: Yeah. Hey, guys. Thanks for taking the questions. I might have missed it, but hey, hey. What's sort of your current backlog? I know backlog isn't necessarily the best metric to look at as you guys ship quite a lot in the quarter, sort of book and ship.

Derek Soderberg: Yeah. Hey, guys. Thanks for taking the questions.

Thomas Stepien: Hey, Derek.

Tom Stepien: Hey, Derek.

Derek Soderberg: I might have missed it, but, hey, what's sort of your current backlog? I know backlog isn't necessarily the best metric to look at as you guys ship quite a lot in the quarter, sort of book and ship. Starting there, I'm trying to understand kind of the margin mix between the defense versus UAV cylindrical, and then, the light electric vehicle opportunity. What's sort of the range on margins there? I've got a follow-up.

Speaker #2: Starting there and then just on the I'm trying to understand kind of the margin mix between the defense versus UAV cylindrical and then the light electric vehicle opportunity.

Speaker #2: What's sort of the range on margins there? And then I've got to follow up.

Speaker #5: Yeah, the backlog—we really don't have much to add, Derek, so I hate to disappoint here. I mean, we do have quite a bit of visibility.

Ricardo Rodriguez: Yeah. On the backlog, we really don't have much to add there. I hate to disappoint here. We do have quite a bit of visibility, but I think the word backlog has historically been misused. When it comes to open POs, we feel pretty good about where we stand as we work our way here through Q3. We see a similar dynamic to what we've seen in the last 2 quarters as we get the POs and then basically work to deliver as much of that product within the quarter as time runs out on us. The margin range, I think, ranges basically from the low 20s to the high 30s. If you take on the lower end, the commoditized or a slightly more commoditized cylindrical cell that is easily swappable versus a highly customized pouch cell. I think that range also varies by region.

Speaker #5: But I think the word "backlog" has historically been misused. When it comes to open POs, I mean, we feel pretty good about where we stand as we work our way here through Q3.

Speaker #5: And we see a similar dynamic to what we've seen in the last two quarters as we get the POs and then basically work to deliver as much of that product within the quarter as time runs out on us.

Speaker #5: The margin range, I think, basically runs from the low 20s to the high 30s, if you take on the low end the commoditized, or a slightly more commoditized, cylindrical cell that is easily swappable versus a highly customized pouch cell.

Speaker #5: I think that range also varies by region. So I mean, in China, there are some folks that are where the lower end of the range is will start in the single digits.

Ricardo Rodriguez: In China, there are some folks where the lower end of the range will start in the single digits, we are being careful to not play there. For higher-end pouch cells, I do think the upper end of the range is a little bit lower in China, we're just being very careful of how we play that. These ranges are not just for the form factor, but also for the regions. When it comes to whether the application is defense or non-defense, I think there the same range applies. I don't think there's much pricing discrimination between the end markets.

Speaker #5: And we are being careful to not play them. So and then for higher-end pouch cells, I do think the upper end of the range is a little bit lower in China.

Speaker #5: And we're just being very careful of how we play that. So these ranges are not just for the form factor, but also for the regions.

Speaker #5: When it comes to whether the application is defense or non-defense, I think there the same range applies. I don't think there's much pricing discrimination between the end markets.

Speaker #2: Got it, that's super helpful. And then just as my follow-up, how much of the cycle revenue today is that cylindrical SyCore? And then just looking at the $24 million European drone order for those cylindrical SyCore, how much of that do you expect to ship in 2026 versus 2027?

Derek Soderberg: Just as my follow-up, how much of the SiCore revenue today is that cylindrical SiCore? Just looking at the $24 million European drone order for those cylindrical SiCore, how much of that do you expect to ship in 2026 versus 2027? Any incremental detail there would be helpful. Thanks, guys.

Speaker #2: Any incremental detail there would be helpful. Thanks, guys.

Speaker #5: Yeah, so maybe I'll just start with the $24 million order. That should be done over the next two and a half quarters, safely. And then, on the mix between pouch and cylindrical, we haven't broken that out for folks.

Ricardo Rodriguez: Yeah. Maybe I'll just start with the $24 million order. That should be done over the next two and a half quarters safely. On the mix between pouch and cylindrical, we haven't broken that out for folks. We do see that as kind of competitive intel.

Speaker #5: We do see that as kind of competitive intel.

Speaker #2: Got it. Super helpful. Thanks.

Derek Soderberg: Got it. Super helpful. Thanks.

Speaker #4: Thanks, Derek.

Ricardo Rodriguez: Thanks, Derek.

Speaker #1: The next question comes from Ted Jackson with Northland Securities. Please proceed.

Operator 2: The next question comes from Ted Jakten with Northland Securities. Please proceed.

Operator: The next question comes from Ted Jakten with Northland Securities. Please proceed.

Speaker #3: Thanks for sneaking me in. Best for last is the way I look at it.

Ted Jenks: Thanks for sneaking me in. Best for last is the way I look at it.

Ted Jackson: Thanks for sneaking me in. Best for last is the way I look at it.

Speaker #5: Absolutely.

Ricardo Rodriguez: Absolutely.

Speaker #4: 100%.

Thomas Stepien: 100%.

Tom Stepien: 100%.

Speaker #3: So my question is going to be pretty straightforward. You have China capacity, you have South Korean capacity, you've got the beginnings of capacity in the US.

Ted Jenks: My question is going to be pretty straightforward. You have China capacity, a South Korean capacity. You've got the beginnings of capacity in the US. Could you give us a refresh with regards to what is the production capacity in China? What is the production capacity in South Korea? What is the production capacity in US? Maybe even refine it between cylinder and pouch. I assume you could maybe think about it like, what do you have now, and where do you think it can go?

Ted Jackson: My question is going to be pretty straightforward. You have China capacity, a South Korean capacity. You've got the beginnings of capacity in the US. Could you give us a refresh with regards to what is the production capacity in China? What is the production capacity in South Korea? What is the production capacity in US? Maybe even refine it between cylinder and pouch. I assume you could maybe think about it like, what do you have now, and where do you think it can go?

Speaker #3: Could you give us a refresh with regards to what is the production capacity in China? What is the production capacity in South Korea? What is the production capacity in US and maybe even refine it between cylinder and pouch?

Speaker #3: And then I mean, I assume you could maybe think about it like what do you have now and where do you think it can go?

Speaker #4: Yeah. We total it up in the deck, Ted, to greater than two gigawatt hours a year. And in earlier call, we broke that out.

Thomas Stepien: Yeah. We total it up in the deck, Ted, to greater than 2 gigawatt hours a year. In an earlier call, we broke that out. On an average cell, that's working out to be something like 12 to 15 million cells per quarter. Sometimes it's easier to think about cell units. We don't break that out by CM. We did name the 3 CMs that we have in Korea, and we did mention that we're working, and be able to share pouch manufacturers in the US. We always, of course, want supply to be ahead of demand so that we never leave a nickel on the table. That's the goal that we're working. There's a lot of work that's done underneath, right? The duck's legs are working, you see visible evidence. We're hard at work on that.

Tom Stepien: Yeah. We total it up in the deck, Ted, to greater than 2 gigawatt hours a year. In an earlier call, we broke that out. On an average cell, that's working out to be something like 12 to 15 million cells per quarter. Sometimes it's easier to think about cell units. We don't break that out by CM. We did name the 3 CMs that we have in Korea, and we did mention that we're working, and be able to share pouch manufacturers in the US. We always, of course, want supply to be ahead of demand so that we never leave a nickel on the table. That's the goal that we're working. There's a lot of work that's done underneath, right? The duck's legs are working, you see visible evidence. We're hard at work on that.

Speaker #4: And on an average cell that's working out to be something like 12 to 15 million cells per quarter. Sometimes it's easier to think about cell units.

Speaker #4: We don't break that out by CM. We did name the three CMs that we have in Korea, and we did mention that we're working and will be able to share.

Speaker #4: Pouch manufacturers in the US. So we always, of course, want supply to be ahead of demand. So that we never leave a nickel on the table.

Speaker #4: And that's the goal that we're so there's a lot of work that's done underneath, right, the ducks' legs are working you see. Visible evidence.

Speaker #4: So we're hard at work on that. It's pretty balanced in China on cylindrical pouch. That balance is coming into play in Korea. We're currently unbalanced in the US, right?

Thomas Stepien: It's pretty balanced in China on cylindrical pouch. That balance is coming into play in Korea, but we're currently unbalanced in the US, right? We have a cylindrical identified, but we haven't shared yet any of the pouch guys. It'll get in balance. Again, the goal is always to have just a bit more of the capacity so that we can meet this demand. Part of where we also win, frankly, is with speed, right? We could be nimble, whether it's at our pilot line here to win new designs or nimble because, gosh, we can get cells in meaningful quantities to customers before some deadline that other competitors can't. That's where we can win.

Tom Stepien: It's pretty balanced in China on cylindrical pouch. That balance is coming into play in Korea, but we're currently unbalanced in the US, right? We have a cylindrical identified, but we haven't shared yet any of the pouch guys. It'll get in balance. Again, the goal is always to have just a bit more of the capacity so that we can meet this demand. Part of where we also win, frankly, is with speed, right? We could be nimble, whether it's at our pilot line here to win new designs or nimble because, gosh, we can get cells in meaningful quantities to customers before some deadline that other competitors can't. That's where we can win.

Speaker #4: We have a cylindrical identified, but we haven't shared yet any of the pouch guys. It'll get in balance and again, the goal is always to have just a bit more of the capacity so that we can meet this demand.

Speaker #4: Because part of where we also win, frankly, is with speed, right? We can be nimble, whether it's at our pilot line here to win new designs, or nimble because, gosh, we can get cells in meaningful quantities to customers before some deadline.

Speaker #4: That other competitors can't. That's where we can win.

Speaker #5: I mean, Ted, the other element to the answer is that there is some nuance to this, right? So I mean, our contract manufacturing partners don't want to have idle capacity there sitting for us.

Ricardo Rodriguez: Ted, the other element to the answer is that there is some nuance to this, right? Our contract manufacturing partners don't want to have idle capacity there sitting for us, and in one way or another, we would be paying for it. If you look at what goes on in the company within a given week, month, or quarter, we're basically playing this game of Tetris with the supply, where the demand comes in in a certain mix of flavors. Then within the time period, we work to ship as much as possible, given our various different supply sources and the different SKUs that we have. Sometimes we do have to be pretty dynamic here with what we're asking our contract manufacturing partners to make. This picture is evolving mainly in South Korea as we develop more flexibility there.

Speaker #5: And in one way or another, we would be paying for it. But if you look at what goes on in the company, within a given week, month, or quarter, we're basically playing this game of Tetris with the supply, where the demand comes in a certain mix of flavors.

Speaker #5: And then within the time period, we work to ship as much as possible given our various different supply sources and the different SKUs that we have.

Speaker #5: And sometimes we do have to be pretty dynamic here with what we're asking our contract manufacturing partners to make. And this picture is evolving, mainly in South Korea, as we develop more flexibility there.

Speaker #5: We're also looking at ways to just creatively produce cylindrical cells and the AA compliant market to, in essence, increase our coverage of what the scheme of Tetris looks like and how flexible we can be.

Ricardo Rodriguez: We're also looking at ways to just creatively produce cylindrical cells in NDAA-compliant markets to, in essence, increase our coverage of what the scheme of Tetris looks like and how flexible we can be. That's how, within the given time period, we basically match supply with whatever flavor the demand comes in.

Speaker #5: But that's how we within the given time period, we basically match supply with whatever flavor the demand comes in.

Speaker #3: That brings up a follow-up question that wasn't on my list, but can you walk through typically what's the lead time for you to kind of plan for capacity with the manufacturer?

Ted Jenks: That brings up a follow-up question that wasn't on my list. Can you walk through, typically, what's the lead time for you to plan for capacity with a manufacturer? You know what I'm saying? You're clearly getting business and orders in place. What's the trade-off between when you think you're going to get a piece of business and then when you're able to contract out that capacity? What are the dynamics with regards to understanding the capacity from your contract manufacturers? There's clearly a two-way set of communication as you guys are doing this dance to coordinate production and for them to coordinate their capacity utilization. That's my last question. Sorry for going for so long.

Ted Jackson: That brings up a follow-up question that wasn't on my list. Can you walk through, typically, what's the lead time for you to plan for capacity with a manufacturer? You know what I'm saying? You're clearly getting business and orders in place. What's the trade-off between when you think you're going to get a piece of business and then when you're able to contract out that capacity? What are the dynamics with regards to understanding the capacity from your contract manufacturers? There's clearly a two-way set of communication as you guys are doing this dance to coordinate production and for them to coordinate their capacity utilization. That's my last question. Sorry for going for so long.

Speaker #3: So you know what I'm saying? You're clearly in business and orders in place. What's the sort of trade-off between when you think you're going to get a piece of business and then when you're able to contract out that capacity?

Speaker #3: What are the dynamics with regards to understanding the capacity from your contract manufacturers? Because there's clearly a two-way set of communication as you guys are doing this dance to coordinate production.

Speaker #3: And for them to coordinate, kind of, their capacity utilization. That's my last question—sorry to go on so long.

Speaker #5: No, that's a good question. So this lead time depends, right? For something like full NDA compliance and setting up capacity here in the US, or what we've done in South Korea over the past year, the lead time can be a year or two.

Ricardo Rodriguez: No, that's a good question. This lead time depends, right? For something like full NDAA compliance and setting up capacity here in the US or what we've done in South Korea here over the past year, the lead time can be a year or two. We are working pretty well in advance of the need by getting an understanding of the demand first, then going out and farming it out and having the right commercial relationships to get that done. If we are only talking about flexibility within region, then we can be pretty flexible and have things up and running and make the switches within a quarter and a half max. That's how we've managed ourselves to be pretty flexible here over the last three to four quarters.

Speaker #5: So we are working pretty well in advance of the need by getting an understanding of the demand first, and then going out and farming it out, and having the right commercial relationships to get that done.

Speaker #5: If we are only talking about flexibility within region, then we can be pretty flexible and have things up and running and make the switches within a quarter, quarter and a half max.

Speaker #5: And that's how we've managed to be pretty flexible here over the last three or four quarters.

Speaker #3: Okay. Well, congrats on the quarter. Thanks for squeaking me in.

Ted Jenks: Okay. Well, congrats on the quarter. Thanks for squeezing me in.

Ted Jackson: Okay. Well, congrats on the quarter. Thanks for squeezing me in.

Speaker #5: Absolutely. Thank you.

Ricardo Rodriguez: Absolutely.

Thomas Stepien: Thanks, Ted.

Tom Stepien: Thanks, Ted.

Ricardo Rodriguez: Thank you.

Speaker #2: Thank you. The next question comes from Amit Dayal with HC Wainwright. Please proceed.

Operator 2: Thank you. The next question comes from Amit Dayal with H.C. Wainwright. Please proceed.

Operator: Thank you. The next question comes from Amit Dayal with H.C. Wainwright. Please proceed.

Speaker #1: Thank you, guys. Good morning. Tom, just in regards to your comments around the 2027 spending authorization, it looks like this could get done by December.

Amit Dayal: Thank you, guys. Good morning. Tom, just regards to your comments around the 2027 spending authorization, looks like this could get done by December. Contribution from this, should we expect it to come through beginning in Q1 2027 itself, or is there some lag between when this is approved and when you start seeing orders from this approval?

Speaker #1: Contribution from this, should we expect it to come through beginning in 1Q27 itself, or is there some lag between when this is approved and when you start seeing orders from this approval?

Speaker #4: Yeah, thanks for the question, Amit. So, there likely will be a lag—that's what we've seen before, right? So, a couple of the customers that we talked about last call, and even Redwire this call, that's obviously 2026 defense money.

Thomas Stepien: Yeah. Thanks for the question, Amit. There likely will be a lag. That's what we've seen before, right? A couple of the customers that we talked about last call and even Redwire this call, that's obviously 2026 defense money, and the fiscal year ends here, what, in six, seven weeks. It's only toward the tail end of the fiscal year. There was six, nine-month lag from budget being available to the flow-down to Amprius. If the budget gets figured out here on the timeline you mentioned, some of that will trickle in probably mid-2027, with the other ones falling in after that. There's an error bar on that, I would imagine. There'll be some lag, at least a quarter, I would imagine.

Tom Stepien: Yeah. Thanks for the question, Amit. There likely will be a lag. That's what we've seen before, right? A couple of the customers that we talked about last call and even Redwire this call, that's obviously 2026 defense money, and the fiscal year ends here, what, in six, seven weeks. It's only toward the tail end of the fiscal year. There was six, nine-month lag from budget being available to the flow-down to Amprius. If the budget gets figured out here on the timeline you mentioned, some of that will trickle in probably mid-2027, with the other ones falling in after that. There's an error bar on that, I would imagine. There'll be some lag, at least a quarter, I would imagine.

Speaker #4: And the fiscal year ends here, what, in six, seven weeks? So it's only toward the tail end of the fiscal year. So there was a six- to nine-month lag from the budget being available to the flow down to Amprius.

Speaker #4: So if the budget gets figured out here, on the timeline you mentioned, some of that will trickle in probably mid-2027, with the other ones falling in after that.

Speaker #4: So there's an error bar on that, I would imagine. But there'll be some lag, at least a quarter, I would imagine. We believe as we talked about that huge 24,000% increase in the ask some of that's going to come through maybe not all of it.

Thomas Stepien: We believe, as we talked about that huge 24,000% increase in the ask, some of that's going to come through, maybe not all of it. It certainly bodes well, and we want to do the best we can to deliver with speed to those customers.

Tom Stepien: We believe, as we talked about that huge 24,000% increase in the ask, some of that's going to come through, maybe not all of it. It certainly bodes well, and we want to do the best we can to deliver with speed to those customers.

Speaker #4: But it certainly bodes well, and we want to do the best we can to deliver with speed to those customers.

Speaker #1: Understood, thank you. And then maybe, Ricardo, just on the receivable side—it has grown to over $40 million. Are you comfortable with the ability to collect, etc.?

Amit Dayal: Understood. Thank you. Maybe Ricardo, just on the receivable side, it has grown to over $40 million. Are you comfortable with your ability to collect, et cetera? Is this creating any working capital pressure as you are continuing to grow at a pretty rapid pace?

Speaker #1: Is this creating any working capital pressure as you continue to grow at a pretty rapid pace?

Speaker #5: No, not really. I mean, we going into this year, we always looked at us needing roughly 20 to 25 million dollars of working capital to enable a doubling of revenues.

Ricardo Rodriguez: No, not really. Going into this year, we always looked at us needing roughly $20 to 25 million of working capital to enable a doubling of revenues. The receivables basically look the way they look just because of when you take the snapshot as you close the quarter. If you were to look at the balance sheet a month after we closed the quarter, you would see that a lot of the receivables have been collected. We feel comfortable with the AR aging, and actually, the bulk of the AR aging is being driven by customers that we've had a long-standing relationship with who are pretty large, so, yeah, I think we're fine with the working capital element.

Speaker #5: And then it just—I mean, the receivable basically looked the way it did just because of when you take the snapshot as you close the quarter.

Speaker #5: But if you were to look at the balance sheet a month after we closed the quarter, you would see that a lot of the receivables have been collected.

Speaker #5: And so we feel comfortable with the AR aging, and actually, the bulk of the AR aging is being driven by customers that we've had a longstanding relationship with, who are pretty large. And so, yeah, I think we're fine with the working capital element.

Speaker #5: We also built up a little bit of inventory and that was planned here as we look at enabling the ramp of the second half of the year.

Ricardo Rodriguez: We also built up a little bit of inventory, and that was planned here as we look at enabling the ramp of the H2. From a working capital perspective, we're fine.

Speaker #5: And so, from a working capital perspective, we're fine.

Amit Dayal: Understood. Thank you, guys. That's all I have. Appreciate it.

Speaker #1: Understood. Thank you, guys. That's all I have. Appreciate it.

Speaker #5: Thanks, Amit. Thank you.

Ricardo Rodriguez: Thanks, Amit.

Speaker #2: Thank you. At this time, I would like to turn the call back to management for closing comments.

Thomas Stepien: Thank you.

Tom Stepien: Thank you.

Operator 2: Thank you. At this time, I would like to turn the call back to management for closing comments.

Operator: Thank you. At this time, I would like to turn the call back to management for closing comments.

Speaker #4: To all our customers, shareholders, employees, and partners, thank you for your continued support. We are at an opportune moment today several markets require advanced batteries and Amprius cells lead the industry on multiple dimensions.

Thomas Stepien: To all our customers, shareholders, employees, and partners, thank you for your continued support. We are at an opportune moment. Today, several markets require advanced batteries, and Amprius cells lead the industry on multiple dimensions. That intersection is a powerful one, and we expect to continue to drive technical innovation, execute with discipline, and deliver meaningful results. Thank you for your time and attention this morning.

Tom Stepien: To all our customers, shareholders, employees, and partners, thank you for your continued support. We are at an opportune moment. Today, several markets require advanced batteries, and Amprius cells lead the industry on multiple dimensions. That intersection is a powerful one, and we expect to continue to drive technical innovation, execute with discipline, and deliver meaningful results. Thank you for your time and attention this morning.

Speaker #4: That intersection is a powerful one, and we expect to continue driving technical innovation, executing with discipline, and delivering meaningful results. Thank you for your time and attention this morning.

Speaker #2: Thank you. This does conclude today's teleconference. You may disconnect. Your lines at this time thank you for your participation and have a great day.

Operator 2: Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

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

Q2 2026 Amprius Technologies Inc Earnings Call & Business Updates

Request DemoDemo

Amprius

Earnings