Innoviz Technologies (NASDAQ:INVZ) lowered its full-year revenue guidance after an automotive customer delayed a production launch, and said it would cut approximately 20% of its workforce as it seeks to expand sales of its LiDAR technology to defense customers.
The company reported third-quarter revenue of $12.1 million, below its expectations. Chief Executive Officer Omer Keilaf said the shortfall primarily reflected a customer’s decision to move its start-of-production timeline into 2027, delaying associated non-recurring engineering, or NRE, milestones.
Innoviz now expects full-year revenue of $44 million to $46 million. Keilaf said the company expects to recover the full value of the delayed engineering revenue next year.
Automotive delay and cost reductions
During the question-and-answer session, Keilaf said the delayed program had been expected to launch this year and would now ramp up later in 2027. He did not identify the customer or provide a precise launch date.
“The delays are unrelated to the LiDAR,” Keilaf said, attributing them to internal challenges at the automaker. He added that Daimler and Audi programs remained on their planned schedules. In prepared remarks, he said projects with Volkswagen, Daimler Truck and Mobileye were progressing.
Innoviz plans to implement an operational realignment in the fourth quarter that it expects to produce approximately $17.5 million in annualized savings. Chief Financial Officer Eldar Cegla said about $12 million of the savings would come from the roughly 20% workforce reduction, with the balance from operating and capital expenditure savings against the current run rate. The company expects the savings to take effect in the first quarter of 2027.
Management said the changes, combined with the planned expansion into defense, support its cash runway well into 2028. In response to an analyst’s question, Keilaf said the company’s planning did not include fundraising or use of an at-the-market equity offering in that calculation.
Defense business expected to grow
Approximately 10% of third-quarter revenue came from Perciz, Innoviz’s homeland security and defense business, according to Cegla. For the full year, the company expects Perciz to account for roughly 6% to 7% of revenue.
Keilaf said Innoviz expects volume orders in the first half of 2027 and anticipates defense will contribute 20% to 30% of revenue next year. Asked how much of that business was booked, he pointed to a pipeline of customer opportunities and indications for next year but did not provide a booked amount. He said the company would provide updates when programs are awarded.
Innoviz is working with defense primes and integrators on applications including counter-drone systems and perimeter security, Keilaf said. The company has delivered hundreds of units for testing and integration and is supplying customers including Kela and Drive, he said.
Keilaf also described an awarded vehicle-based counter-drone proof of concept expected to conclude at the beginning of next year. He said it could become a significant program, while noting that further opportunities remained subject to awards.
The company’s internal analysis estimates that the aggregate LiDAR opportunity in homeland security and defense could reach $7 billion to $8 billion by 2030. Keilaf said defense products carry average selling prices an order of magnitude higher than automotive products.
Cash use and program pipeline
Innoviz reported a negative gross margin of 10.3% for the third quarter, which Cegla attributed to lower revenue. Cash used in operations and capital expenditures was $21.4 million, mainly because of the timing of payments related to the production ramp-up, he said. Average cash burn over the past four quarters was $15 million.
The company ended the quarter with approximately $54.4 million in cash equivalents, short-term deposits and marketable securities and no long-term debt, according to Cegla.
For the full year, Innoviz expects two to three new programs and $20 million to $30 million in planned new NRE payments. Cegla said the pipeline also included mature opportunities worth more than $30 million in NREs, but their timing was difficult to predict and they could close before year-end or in 2027.
On automotive opportunities, Keilaf said Innoviz was pursuing multiple requests for information and quotations, primarily involving Level 4 robotaxis. The company is selling LiDAR units for evaluation, though he said the discussions were taking longer than hoped.
About Innoviz Technologies (NASDAQ:INVZ)
Innoviz Technologies Ltd. (NASDAQ: INVZ) develops lidar sensors and perception software for the automotive industry. Its technology is designed to help vehicles detect and interpret their surroundings for advanced driver-assistance systems (ADAS) and autonomous driving applications. The company’s solutions are intended to provide three-dimensional sensing, object detection and mapping capabilities in a range of driving environments. Innoviz’s product portfolio includes the InnovizOne and InnovizTwo lidar platforms, along with related perception software and supporting technologies.
