Q2 2026 Arbe Robotics Ltd Earnings Call

August 6, 2026

Speaker #1: Good day, and welcome to the Arbe Robotics second quarter 2026 earnings results. All participants will be in a listen-only mode, should you need assistance, please signal conference specialists by pressing the star key followed by zero.

Operator 2: Good day. Welcome to the Arbe Robotics Q2 2026 earnings results. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Kenny Green. Please go ahead.

Operator: Good day. Welcome to the Arbe Robotics Q2 2026 earnings results. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Kenny Green. Please go ahead.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone.

Speaker #1: And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Kenny Green.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good day to all of you, and welcome to Arbe's conference call to discuss the results of the second quarter of 2026. Before we begin, I would like to remind all our listeners that certain information provided on this call may contain forward-looking statements and the safe harbor statement outlined in today's earnings press release also pertains to this call.

Kenny Green: Thank you. Good day to all of you. Welcome to Arbe's conference call to discuss the results of the Q2 2026. Before we begin, I would like to remind all our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings press release also pertains to this call. If you have not received a copy of the release, please view it in the investor relations section of Arbe's website. Today, we are joined by Ram Machness, Arbe's CEO, Tove Mimrenco, President and Co-Founder, and Karine Pinto-Flomenboim, Chief Financial Officer. Following management's formal remarks, we will open the call for the question and answer session. With that, I'd now like to hand the call over to Ram Machness. Ram, please go ahead.

Speaker #2: If you have not received a copy of the release, please view it in the Investor Relations section of Arbe's website. Today, we are joined by Ron Martinet, Arbe's CEO, Cosme Marenko, president and co-founder, and Karine Pinto from Enbaum, chief financial officer.

Kenny Green: Today, we are joined by Ram Machness, Arbe's CEO, Tove Mimrenco, President and Co-Founder, and Karine Pinto-Flomenboim, Chief Financial Officer. Following management's formal remarks, we will open the call for the question and answer session. With that, I'd now like to hand the call over to Ram Machness. Ram, please go ahead.

Speaker #2: Following management's formal remarks, we will open the call for the question-and-answer session. And with that, I would now like to hand the call over to Ron Martinet.

Speaker #2: Ron, please go ahead.

Speaker #3: Thank you, Kenny. Good morning, everyone, and thank you for joining us to review Arbe's second quarter 2026 results. I am pleased with the solid progress we made in the second quarter.

Ram Machness: Thank you, Kenny. Good morning, everyone. Thank you for joining us to review Arbe's Q2 2026 results. I am pleased with the solid progress we made in the Q2. Our strategy of focusing on broader markets for our radar technology with high demand and more immediate revenue potential is clearly delivering results. We grew our revenue by meeting our customer demand for immediate solutions using our technology, and we started to see the positive impact of our reduced expenses on our bottom line. Today, I will go through the main development of the quarter. Our biggest step forward in this quarter was in the defense and homeland security market. A leading global defense and homeland security integrator selected our technology for three projects. We signed a framework agreement. As we progress, we expect to add more projects over time.

Speaker #3: Our strategies are focusing on broader markets for our radar technology, with high demand and more immediate revenue potential is clearly delivering results. We grew our revenue by meeting our customers' demand for immediate solutions using our technology, and we started to see the positive impact of our reduced expenses on our bottom line.

Speaker #3: Today, I will go through the main development of the quarter. Our biggest step forward in this quarter was in the defense and homeland security market.

Ram Machness: Today, I will go through the main development of the quarter. Our biggest step forward in this quarter was in the defense and homeland security market. A leading global defense and homeland security integrator selected our technology for three projects. We signed a framework agreement. As we progress, we expect to add more projects over time.

Speaker #3: A leading global defense and homeland security integrator selected our technology for three projects. Besides a framework agreement and as we progress, we expect to add more projects over time.

Speaker #3: In a short turnaround time, we shipped complete radar systems for our own production line, for the immediate operational needs. Our radars are used to in part of a defense and homeland security markets in many unique ways.

Ram Machness: In a short turnaround time, we shipped complete radar systems from our own production line for their immediate operational needs. Our radars are used in part of a defense and homeland security markets in many unique ways. They are used in fixed installations and vehicle-mounted systems at both short and long ranges. These multiple use cases demonstrate how our versatile radar platform technology can support different needs. The project of Forterra, a supplier of autonomous systems with the US Department of War, continues to progress. Our Tier 1, Sensrad, supplies Forterra with high-definition imaging radar based on our chipset, and that radar is integrated into Forterra's auto drive perception suite. It helps the vehicle recognize its surroundings, detect obstacles, and navigate unstructured contested environments where GPS do not work.

Speaker #3: They are used in fixed installations and vehicle-mounted systems, as both short and long ranges. These multiple use cases demonstrate how our versatile radar platform technology can support different needs.

Speaker #3: The project of Fortera is a supplier of autonomous systems with the U.S. Department of War continues to progress. Our Tier 1 sensor supplies Fortera with high-definition imaging radar based on our chipset and that radar is integrated into Fortera's auto-drive perception suite.

Ram Machness: Our Tier 1, Sensrad, supplies Forterra with high-definition imaging radar based on our chipset, and that radar is integrated into Forterra's auto drive perception suite. It helps the vehicle recognize its surroundings, detect obstacles, and navigate unstructured contested environments where GPS do not work.

Speaker #3: It helps the vehicle recognize its surroundings, detect obstacles, and navigate unstructured, contested environments where GPS do not work. More broadly, we see further strong demand for our radar technology, with multiple defense and homeland security channels for varied applications, and we have shipped out systems for further evaluation.

Ram Machness: More broadly, we see further strong demand for our radar technology with multiple defense and homeland security channels for various applications, and we have shipped out systems for further evaluation. Many of these opportunities have significant business potential. Furthermore, since our product is clearly addressing multiple urgent operational needs, we see an effort by our potential customers to reduce cycle times towards full integration and deployment in the field. Beyond defense, we also continue to make progress in other broader radar applications. Sensrad, a Tier 1 supplying imaging radar based on our chipsets for defense and commercial applications, announced a new collaboration with VirtuRail. Sensrad announced that VirtuRail is now integrating the radar into its automated service vehicles for underground tunnel construction. We continue to supply chipsets to Sensrad, supporting its customers, Forterra, Keani, and Rockit.

Speaker #3: Many of these opportunities have significant business potential, and furthermore, since our product is clearly addressing multiple urgent operational needs, we see an effort by our potential customers to reduce cycle time towards full integration and deployment in the field.

Speaker #3: Beyond defense, we also continue to make progress in other broader radar applications. Sensors, a Tier 1 supplying imaging radar based on our chipsets for defense and commercial applications, announced a new collaboration with Virtu Radar.

Ram Machness: Beyond defense, we also continue to make progress in other broader radar applications. Sensrad, a Tier 1 supplying imaging radar based on our chipsets for defense and commercial applications, announced a new collaboration with VirtuRail. Sensrad announced that VirtuRail is now integrating the radar into its automated service vehicles for underground tunnel construction. We continue to supply chipsets to Sensrad, supporting its customers, Forterra, Keani, and Rockit.

Speaker #3: Sensors announced that Virtu Radar is now integrating the radar into its automated service vehicles for underground tunnel construction. We continue to supply chipsets to sensors, supporting its customers Fortera, Tiani, and Watchit.

Speaker #3: Arbe is also directly engaged in other non-automotive programs at various stages of evaluation, including a number of potential applications with unmanned ground vehicles and other applications.

Ram Machness: Arbe is also directly engaged in other non-automotive programs at various stages of evaluation, including a number of potential applications with unmanned ground vehicles and other applications. In those applications of unmanned ground vehicles, the image coming from our high-definition imaging radar is so rich that it is possible to drive based only on the radar output. With regards to our activities in the automotive market, last quarter we followed follow-on orders from a global robotaxi player for our Phoenix radar systems. Phoenix scales give full 360-degree sensing to support Level 4 autonomy. During Q2, we showed further progress, and our radar systems were integrated into their vehicles. I am pleased to say that these vehicles have now started on-road trials. We continue to engage in active bid processes with additional robotaxi players with very positive feedback. Turning to China.

Speaker #3: In those applications of unmanned ground vehicles, the image coming from our high-definition imaging radar is so rich that it is possible to drive based solely on the radar output.

Speaker #3: With regard to our activities in the automotive market, last quarter we reported all on order from a global robotaxi player for our Phoenix radar systems.

Ram Machness: With regards to our activities in the automotive market, last quarter we followed follow-on orders from a global robotaxi player for our Phoenix radar systems. Phoenix scales give full 360-degree sensing to support Level 4 autonomy. During Q2, we showed further progress, and our radar systems were integrated into their vehicles. I am pleased to say that these vehicles have now started on-road trials. We continue to engage in active bid processes with additional robotaxi players with very positive feedback. Turning to China.

Speaker #3: Phoenix scaled to give full 360 degrees sensing to support levels for autonomy. During the second quarter, we showed further progress, and our radar systems were integrated into their vehicles.

Speaker #3: I am pleased to say that these vehicles have now started on road trials. We continue to engage in active bid processes with additional robotaxi players with very positive feedback.

Speaker #3: Turning to China, Hywind, our Tier 1 in China, is leading supplier in this market and offers a portfolio of radar systems built on our chipsets.

Ram Machness: HiRain, our Tier 1 in China, is leading supplier in this market and offers a portfolio of radar systems built on our chipsets. In December, we announced that HiRain's radar, based on our chipset, was selected for a Level 4 program with a large Chinese automaker. During the quarter, we continued to ship chipsets to support this customer. HiRain advised us that they are now progressing towards the start of production, which is planned in the next few months. Alongside the HiRain's 48x48 system, HiRain is developing a second lower-spec platform based on our chipset. This platform has 24x12 channels at a lower cost point for a wider range of vehicles. These two platforms give us a direct path into the Chinese market, which is the largest and fastest-moving market for Level 2+ and Level 3 vehicles.

Speaker #3: In December, we announced that Hywind's radar built on our chipsets was selected for a level 4 program with a large Chinese automaker. During the quarter, we continue to ship chipsets to support this customer.

Speaker #3: Hywind advised us that they are now progressing towards the start of production which is planned in the next few months. Alongside the high-end 48 by 48 systems, Hywind is developing a second, lower-spec platform based on our chipsets.

Ram Machness: Alongside the HiRain's 48x48 system, HiRain is developing a second lower-spec platform based on our chipset. This platform has 24x12 channels at a lower cost point for a wider range of vehicles. These two platforms give us a direct path into the Chinese market, which is the largest and fastest-moving market for Level 2+ and Level 3 vehicles.

Speaker #3: This platform has 24 by 12 channels at a lower cost point for a wider range of vehicles. These two platforms give us a direct path into the Chinese market, which is the largest and fastest-moving market for level 2 plus and level 3 vehicles.

Speaker #3: Hywind is also competing in undergoing due diligence in other meaningful RFIs and RFQs for the radar product portfolio based on our technology. This involves evaluations and field trials.

Ram Machness: HiRain is also completing and undergoing due diligence in other meaningful RFIs and RFQs for their radar product portfolio based on our technology. This involves evaluation and field trials. We are closely supporting HiRain with all these evaluations as they progress through various stages of selection. We also continue to make steady progress with global OEMs. OEMs are actively testing advanced radar solutions with the goal to update their sensing suite to support higher level of autonomy. We feel that we are in good position as Arbe is regarded as the leading ultra-high-resolution radar provider for level 3 autonomy and above at a lower enough cost that will allow for a proliferation of our technology to high-volume programs at various OEMs. Let me say a few words on our revenue growth this quarter before we go into the numbers.

Speaker #3: We are closely supporting Hywind with all these evaluations as they progress to a various stages of selection. We also continue to make steady progress with global audience.

Speaker #3: OEMs are actively testing advanced radar solutions with a goal to update their sensing suite to support higher level of autonomy. We feel that we are in good position as Arbe is regarded as the leading ultra-high-resolution radar provider for level 3 autonomy and above, at a lower enough cost that will allow for a proliferation of our technology to high-volume programs at various OEMs.

Ram Machness: OEMs are actively testing advanced radar solutions with the goal to update their sensing suite to support higher level of autonomy. We feel that we are in good position as Arbe is regarded as the leading ultra-high-resolution radar provider for level 3 autonomy and above at a lower enough cost that will allow for a proliferation of our technology to high-volume programs at various OEMs. Let me say a few words on our revenue growth this quarter before we go into the numbers.

Speaker #3: Let me say a few words on our revenue growth this quarter before we go into the numbers. While still modest, this trend is in the right direction, and our sales this quarter grew on three fronts.

Ram Machness: While still modest, this trend is in the right direction, our sales this quarter grew on three fronts. We sold more chipsets to our tier 1s, we sold radar systems into defense and civilian programs, and we earned revenue from engineering and development work for our customers. This revenue mix shows that our new strategy of end-market diversification is gaining traction. Some of the systems that we sold are being used by our integrator partners to compete on various projects. Any wins by them will potentially translate to significant revenue down the road. Previously, Arbe was just an automotive chipset supplier, with many years between a design win and a program maturing to full production. Today, we are a supplier of both chipsets as well as complete end-to-end radar systems with much shorter cycles.

Speaker #3: We sold more chipsets to our Tier 1s, we sold radar systems into defense and civilian programs, and we earned revenue from engineering and development work for our customers.

Speaker #3: This revenue mix shows that our new strategy of end-market diversification is gaining traction. Some of the systems that we sold are being used by our integrator partners to compete on various projects.

Ram Machness: Some of the systems that we sold are being used by our integrator partners to compete on various projects. Any wins by them will potentially translate to significant revenue down the road. Previously, Arbe was just an automotive chipset supplier, with many years between a design win and a program maturing to full production. Today, we are a supplier of both chipsets as well as complete end-to-end radar systems with much shorter cycles.

Speaker #3: Any wins by them will potentially translate to significant revenue down the road. Previously, Arbe was just an automotive chipset supplier with many years between a design win and a program maturing to full production.

Speaker #3: Today, we are a supplier of both chipsets as well as complete end-to-end radar systems, with much shorter cycles. With our focus on varied end-markets with urgent needs, we sell directly to customers who need our products now.

Ram Machness: With our focus on varied end markets with urgent needs, we sell directly to customers who need our product now. This lets us generate revenue in the near and medium term while still competing for the automotive OEM programs with their long-term significant revenue potential. At the end of 2025, we also announced steps to lower expenses and enhance operational efficiencies. Indeed, we have leveraged AI to automate many processes and lower our costs. We have reduced our cost base by about 15% for Q1 level, and we expect to see the full effect by Q3, where our cash burn is targeted to fall to below $7 million per quarter due to the expected lower expenses and revenue growth.

Speaker #3: This lets us generate revenue in the near and medium term while still competing for the automotive OEM programs with their long-term significant revenue potential.

Speaker #3: At the end of 2025, we also announced steps to lower expenses and enhance operational efficiencies and indeed we have leveraged AI to automate many processes and lower our costs.

Ram Machness: Indeed, we have leveraged AI to automate many processes and lower our costs. We have reduced our cost base by about 15% for Q1 level, and we expect to see the full effect by Q3, where our cash burn is targeted to fall to below $7 million per quarter due to the expected lower expenses and revenue growth.

Speaker #3: We have reduced our costs based by about 15% for first quarter levels, and we expect to see the full effect by the third quarter.

Speaker #3: Where our cash burn is targeted to fall to below $7 million per quarter due to the expected lower expenses and revenue growth. We ended the quarter with around $42 million in cash on the balance sheet and given our expected reduced quarterly burn rate, we believe we have a sufficient runway to fully execute on our strategy.

Ram Machness: We ended the quarter with around $42 million in cash on the balance sheet. Given our expected reduced quarterly burn rate, we believe we have a sufficient runway to fully execute on our strategy. Looking back, our H1 of 2026 reflects the early stages of this transition, and we expect meaningful growth in the H2 of the year into 2027. Karine will share our detailed outlook shortly. With that, I'll hand over the call to our president and co-founder, Kobi Marenko. Kobi, please go ahead.

Speaker #3: Looking back, our first half of 2026 reflects the early stages of this transition, and we expect meaningful growth in the second half of the year into 2027.

Speaker #3: Karine will share our detailed outlook shortly. With that, I'll hand over the call to our President and Co-Founder, Kobi Marenko. Kobi, please go ahead.

Speaker #2: Thank you, Ram, and good morning, everyone. As we announced, this is the last quarter with Arbe for Karine, our chief financial officer. Karine has served in that role for close to five years.

Kobi Marenko: Thank you, Ran, good morning, everyone. As we announced, this is the last quarter with Arbe for Karine, our chief financial officer. Karine has served in that role for close to five years. During that time, she built our finance organization, led much of our fundraising, and managed our reporting as a public company on two exchanges. On behalf of the board, the management team, and everyone at Arbe, I would like to thank Karine for all that she has done for the company and to wish her much success in her next role. Karine's last day with Arbe is today. During the transition period, I will temporarily oversee our financial functions together with the team. I am also pleased to share that Assaf Pereg will join Arbe as our incoming chief financial officer, effective 30 August 2026.

Speaker #2: During that time, she built our finance organization, led much of our fundraising, and managed our reporting as a public company on two exchanges. On behalf of the board, the management team, and everyone at Arbe, I would like to thank Karine for all that.

Kobi Marenko: On behalf of the board, the management team, and everyone at Arbe, I would like to thank Karine for all that she has done for the company and to wish her much success in her next role. Karine's last day with Arbe is today. During the transition period, I will temporarily oversee our financial functions together with the team. I am also pleased to share that Assaf Pereg will join Arbe as our incoming chief financial officer, effective 30 August 2026.

Speaker #2: She has done for the company and to wish her much success in her next role. Karine's last day with Arbe is today. During the transition period, I will temporarily oversee our financial functions together with the team.

Speaker #2: I am also pleased to share that a soft period will join Arbe as our incoming chief financial officer effective August 30, 2026. A soft brings close to two decades of financial leadership experience with both Nasdaq-listed public and private technology companies in Israel and internationally.

Kobi Marenko: Assaf brings close to two decades of financial leadership experience with both Nasdaq-listed public and private technology companies in Israel and internationally. He joined us from Ibex Medical Analytics Ltd., previously held finance roles at Nano Dimension, Aquarius Engines, Becomize, and Cyberint. We look forward to welcoming him on the team. With that, let me turn the call over to Karine to review her last financials.

Speaker #2: He joined us from IBEX Medical Analytics Ltd. and previously held finance role at Nanodimension Aquarius Engine become technological solutions in cyberint technologies. We look forward to welcoming him on the team.

Speaker #2: With that, let me turn the call over to Karine to review her last financials.

Speaker #1: Thank you, Kobe and hello everyone. Let me review our financial results for the second quarter of 2026 in more detail. Revenue for the second quarter of 2026 totaled $0.7 million, compared to $0.3 million in Q2 2025.

Karine Pinto-Flomenboim: Thank you, Kobi, hello, everyone. Let me review our financial results for Q2 2026 in more detail. Revenue for Q2 2026 totaled $0.7 million, compared to $0.3 million in Q2 2025. This was our third consecutive quarter of revenue growth. Backlog as of 30 June 2026 was $1 million. Gross loss for Q2 2026 was around break even, compared to a gross loss of $0.2 million in Q2 2025. Total operating expenses for Q2 2026 were $9.8 million, down from $11.3 million in Q2 2025. The lower expenses were primarily driven by lower share-based compensation expenses, reflecting both the lower grant date fair value of equity awards issued during the period and the ongoing vesting of previously granted awards, some of which have now fully vested.

Speaker #1: This was our third consecutive quarter of revenue growth. Backlog as of June 30, 2026 was $1 million. Gross loss for Q2 2026 was around break even, compared to a gross loss of $0.2 million in Q2 2025.

Speaker #1: Total operating expenses for Q2 2026 were $9.8 million, down from $11.3 million in Q2 2025. The lower expenses were primarily driven by lower share-paid compensation expenses, reflecting both the lower grant date fair value of equity award issued during the period and the ongoing vesting of previously granted awards.

Karine Pinto-Flomenboim: Total operating expenses for Q2 2026 were $9.8 million, down from $11.3 million in Q2 2025. The lower expenses were primarily driven by lower share-based compensation expenses, reflecting both the lower grant date fair value of equity awards issued during the period and the ongoing vesting of previously granted awards, some of which have now fully vested.

Speaker #1: Some of which have now fully vested. The increased expenses due to the unfavorable exchange rate impact were fully offset by the decrease in headcount as part of the cost reduction measures taken this quarter, which are expected to be fully reflected by next quarter.

Karine Pinto-Flomenboim: Increased expenses due to the unfavorable exchange rate impact were fully offset by the decrease in headcount as part of the cost reduction measures taken this quarter, which are expected to be fully reflected by next quarter. Even as we manage costs carefully, we remain committed to investing in and advancing our AI capabilities. Operating loss for Q2 2026 was $9.8 million, compared to an operating loss of $11.5 million in Q2 2025. Adjusted EBITDA, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $8.7 million in Q2 2026 compared to a loss of $8.9 million in Q2 2025. We believe that this non-GAAP measurement is important in management's evaluation of our use of cash and in planning and evaluating our cash requirements for the coming period.

Speaker #1: Even as we manage cost carefully, we remain committed to investing in and advancing our AI capabilities. Operating loss for the second quarter of 2026 was $9.8 million, compared to an operating loss of $11.5 million in the second quarter of 2025.

Speaker #1: Adjusted EBITDA, a non-gap measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $8.7 million, in Q2 of 2026.

Karine Pinto-Flomenboim: Adjusted EBITDA, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $8.7 million in Q2 2026 compared to a loss of $8.9 million in Q2 2025. We believe that this non-GAAP measurement is important in management's evaluation of our use of cash and in planning and evaluating our cash requirements for the coming period.

Speaker #1: Compared to a loss of $8.9 million in the second quarter of 2025. We believe that this non-gap measurement is important in management's evaluation of our use of cash and in planning and evaluating our cash requirements for the coming period.

Speaker #1: Net loss for the second quarter of 2026 was $9.1 million, reduced from a net loss of $10.2 million in the second quarter of 2025.

Karine Pinto-Flomenboim: Net loss for Q2 2026 was $9.1 million, reduced from a net loss of $10.2 million in Q2 2025. Net loss in Q2 2026 included $0.7 million of financial income compared to $1.3 million of financial income in Q2 2025. As of 30 June 2026, Arbe held $41.9 million in cash equivalents, and short-term bank deposits. Shareholders' equity was $40.5 million. Turning to our outlook. Management reaffirms the full year 2026 outlook, which we provided in February 2026. Arbe continues to expect full year revenue in the range of $4 million to $6 million and an adjusted EBITDA in the range of $28 million loss to $31 million loss. Finally, as I conclude nearly 5 years at Arbe, I wanted to express how meaningful this journey has been for me.

Speaker #1: Net loss in Q2 2026 included $0.7 million of financial income, compared to $1.3 million of financial income in Q2 2025. As of June 30, 2026, Arbe held $41.9 million in cash, cash equivalents, and short-term bank deposits.

Speaker #1: Shareholders' equity was $40.5 million. Turning to our outlook, management reaffirms the full year 2026 outlook which we provided in February 2026. Arbe continues to expect full year revenue in the range of $4 million to $6 million and an adjusted EBITDA in the range of $28 million loss to $31 million.

Karine Pinto-Flomenboim: Turning to our outlook. Management reaffirms the full year 2026 outlook, which we provided in February 2026. Arbe continues to expect full year revenue in the range of $4 million to $6 million and an adjusted EBITDA in the range of $28 million loss to $31 million loss. Finally, as I conclude nearly 5 years at Arbe, I wanted to express how meaningful this journey has been for me.

Speaker #1: Finally, as I conclude nearly five years at Arbe, I wanted to express how meaningful this journey has been for me. Together, we strengthened the company's balance sheet and funded development through rounds of successful fundraising.

Karine Pinto-Flomenboim: Together, we strengthened the company's balance sheet and funded development through rounds of successful fundraising, streamlined our cost structure for greater efficiency, and built the reporting and governance infrastructure required of a public company, all while laying the groundwork of Arbe's next step towards full productization. I have great confidence in Arbe's continued success under the strong leadership of Ram and the talented team here. I would like to thank Kobi, Ram, our board, and the entire Arbe team for going through this journey together with me, which made our achievements possible, and also our investors and analysts for the open dialogue we've had over the years. I leave Arbe moving in the right direction with a strong financial position, a lower cost base, and a growing revenue trend. I'm also leaving it in very good hands, and I look forward to continue following the company's progress from afar.

Speaker #1: Streamlined our cost structure for greater efficiency and built the reporting and governance infrastructure required of a public company. All by laying the groundwork of Arbe's next step toward full productivation.

Speaker #1: I have great confidence in Arbe's continued success under the strong leadership of Ram and the talented team here. I would like to thank Kobe, Ram, our board, and the entire Arbe team for going through this journey together with me, which made our achievements possible and also our investors and analysts for the open dialogue we had over the years.

Karine Pinto-Flomenboim: I would like to thank Kobi, Ram, our board, and the entire Arbe team for going through this journey together with me, which made our achievements possible, and also our investors and analysts for the open dialogue we've had over the years. I leave Arbe moving in the right direction with a strong financial position, a lower cost base, and a growing revenue trend. I'm also leaving it in very good hands, and I look forward to continue following the company's progress from afar.

Speaker #1: I leave Arbe moving in the right direction with a strong financial position, a lower cost base, and a growing revenue trend. I'm also leaving it in very good hands, and I look forward to continue following the company's progress from afar.

Speaker #1: Now, we will be happy to take your questions. Operator?

Karine Pinto-Flomenboim: Now, we will be happy to take your questions. Operator?

Speaker #3: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchstone phone.

Operator 2: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question for today will come from Matthew Paciulli with Canaccord Genuity. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question for today will come from Matthew Paciulli with Canaccord Genuity. Please go ahead.

Speaker #3: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Speaker #3: And our first question for today will come from Matthew Pacquelli with Canaccord Genuity. Please go ahead.

Speaker #4: Hi everyone. Thank you for taking my questions and Karine best of luck in your next role. Maybe just to start off, on the recent defense selection, I believe you mentioned there's kind of three separate projects here.

Matthew Paciulli: Hi, everyone. Thank you for taking my questions, and Karine, best of luck in your next role. Maybe just to start off, on the recent defense selection, I believe you mentioned there's kind of 3 separate projects here. Could you just provide us some additional insights as to what these volumes should look like and how the partnership could expand over time?

Speaker #4: Could you just provide us some additional insights as to what these volumes should look like, and how the partnership could expand over time?

Speaker #2: Yeah. So the partnership agreement is a long-term agreement, and right now, to begin with, three specific projects were defined. But the agreement is a framework agreement that will be extended to several applications as well.

Ram Machness: Yeah. The partnership agreement is a long-term agreement, and right now, to begin with, 3 specific projects were defined. The agreement is a framework agreement that will be extended to several applications as well. On this specific one, we were requested not to mention the exact application. I can say in general that we see on the defense sector several applications that are very relevant on radars that are not necessarily specific to this agreement. When we talk about defense applications, for example, the unmanned ground vehicles and mission vehicles, that's something very common and makes a lot of sense to use an imaging radar, since it has a very good perception of the surroundings, and it doesn't have the disadvantages of cameras like dust, of course, night issues, and weather issues. Many applications that are using radar and imaging radar for unmanned ground vehicles.

Speaker #2: On this specific one, we were requested not to mention the exact application, but I can say in general that we see on the defense sector several applications that are very relevant on radars, that are not necessarily specific to this agreement.

Speaker #2: When we talk about defense applications, for example, the unmanned ground vehicles and mission vehicles, that's something very common and makes a lot of sense to use an imaging radar since it has very good perception of the surrounding and it doesn't have the disadvantages of cameras like dust, of course, night issues, and weather issues.

Ram Machness: When we talk about defense applications, for example, the unmanned ground vehicles and mission vehicles, that's something very common and makes a lot of sense to use an imaging radar, since it has a very good perception of the surroundings, and it doesn't have the disadvantages of cameras like dust, of course, night issues, and weather issues. Many applications that are using radar and imaging radar for unmanned ground vehicles.

Speaker #2: So many applications that are using radar and imaging radar for unmanned ground vehicle this is one example of a very common use case in the defense applications.

Ram Machness: This is 1 example of a very common use case in the defense applications. Another one would be some perimeter security. That's another application that is very common in the defense sector, and there are actually several more applications that are very relevant.

Speaker #2: Another one would be some perimeter security that's another application that is very common in the defense sector. And there are actually several more applications that are very relevant.

Speaker #4: Great, appreciate the color. And maybe just on the robotaxi front, similarly, it seems like you're making some nice progress here. If you can perhaps just dive into some detail around what these selection processes look like, what milestones you still need to achieve, and maybe just from a timing perspective, what we should anticipate there.

Matthew Paciulli: Great. Appreciate the color. Maybe just on the robotaxi front. Similarly, it seems like you're making some nice progress here. If you can perhaps just dive into some detail around what these selection processes look like, what milestones you still need to achieve, and maybe just from a timing perspective, what we should anticipate there.

Speaker #2: Yeah. So we have our radars right now. Several vehicles equipped with our radars. This is a 360-degree view of the coming from our radar.

Ram Machness: Yeah. We have our radars right now, several vehicles equipped with our radars. This is a 360-degree view coming from our radar. The launch of the development of the perception stack based on our radar is now beginning. We expect everything to roll out toward end of the year and the beginning of next year. That's with one of the robotaxi providers. There are more coming that are right now in earlier stages.

Speaker #2: And the launch of the development of the perception stack based on our radar is now beginning. And we expect things to roll out towards end of the year and beginning of next year.

Speaker #2: And that's with one of the robotaxi providers that are more coming and that are in right now in earlier stages.

Speaker #4: Great. Thank you.

Matthew Paciulli: Great. Thank you.

Speaker #3: Again, if you have a question, please press star, then 1. This will conclude our question and answer session. I would like to turn the conference back over to Ram Machnis for any closing remarks.

Operator 2: Again, if you have a question, please press star, then one. This will conclude our question and answer session. I would like to turn the conference back over to Ram Machness for any closing remarks. Please go ahead.

Operator: Again, if you have a question, please press star, then one. This will conclude our question and answer session. I would like to turn the conference back over to Ram Machness for any closing remarks. Please go ahead.

Speaker #3: Please go ahead.

Speaker #2: Thank you. On behalf of the entire management team at Arbe, I would like to thank you, our shareholders, for the continued interest in the long-term support for our business.

Ram Machness: Thank you. On behalf of the entire management team at Arbe, I would like to thank you, our shareholders, for the continued interest, the long-term support for our business. I believe that Arbe is now very well situated for the future, having planted the seeds beyond passenger automotive, which, as you saw today, are beginning to sprout. Finally, I would like to thank Karine for her hard work, leadership, and partnership over the past five years. Wish her much luck in her future roles. I would also like to welcome Assaf, our new CFO. We are all very much looking forward to working with him to bring Arbe to the next stage. To our investors and analysts, we look forward to updating you on our progress next quarter. With that, we end our call. Have a great day.

Speaker #2: I believe that Arbe is now very well situated for the future, having planted the seeds beyond passenger automotive, which, as you saw today, are beginning to sprout.

Speaker #2: Finally, I would like to thank Karine for her hard work, leadership, and partnership over the past five years, and wish her much luck in her future roles.

Ram Machness: Finally, I would like to thank Karine for her hard work, leadership, and partnership over the past five years. Wish her much luck in her future roles. I would also like to welcome Assaf, our new CFO. We are all very much looking forward to working with him to bring Arbe to the next stage. To our investors and analysts, we look forward to updating you on our progress next quarter. With that, we end our call. Have a great day.

Speaker #2: I would also like to welcome Asaf, our new CFO, and we are all very much looking forward to working with him to bring Arbe forward. And to our investors and analysts, we look forward to updating you on our progress next quarter.

Speaker #2: And with that, we end our call. Have a great day.

Operator 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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