11 unchanged sentences
These technologies can be harnessed to deliver mission-critical capabilities at the edge and in the cloud, advancing the safety of road users, and revolutionizing the driving experience and the movement of people and goods globally.
−Removed: As of March 28, 2026, our solutions had been installed in approximately 1,400 vehicle models (including local country, year, and other vehicle model variations), and our System-on-Chips (“SoCs”) had been deployed in more than 248 million vehicles.
+Added: As of June 27, 2026, our solutions had been installed in approximately 1,400 vehicle models (including local country, year, and other vehicle model variations), and our System-on-Chips (“SoCs”) had been deployed in more than 258 million vehicles.
We are actively working with more than 50 Original Equipment Manufacturers (“OEMs”) worldwide on the implementation of our ADAS solutions.
−Removed: In the three months ended March 28, 2026, we shipped approximately 10.8 million of our systems, the substantial majority of which were EyeQ TM SoCs.
−Removed: This represents an increase from the approximately 8.5 million of our systems that we shipped in the first three months of 2025.
+Added: In the six months ended June 27, 2026, we shipped approximately 20.9 million of our systems, the substantial majority of which were EyeQ TM SoCs.
+Added: This represents an increase from the approximately 18.1 million of our systems that we shipped in the six months ended June 28, 2025.
We were founded in Israel in 1999.
9 unchanged sentences
military bases in the region.
−Removed: On April 8, 2026, the United States and Iran agreed to a two-week ceasefire.
+Added: Although the United States and Iran have announced ceasefire and de-escalation arrangements from time to time, including a memorandum of understanding entered into on June 17, 2026 that contemplates the termination of military operations on multiple fronts, hostilities have resumed and may continue or escalate.
How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region last and become is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict.
−Removed: To date, our operations have not been materially affected, although as of April 15, 2026 approximately 7.0% of our employees have been called to reserve duty in the Israel Defense Forces.
+Added: To date, our operations have not been materially affected, although as of July 15, 2026 approximately 2.4% of our employees have been called to reserve duty in the Israel Defense Forces.
However, since these are events beyond our control, their continuation or cessation may affect our expectations.
We continue to monitor political and military developments closely and examine the consequences for our operations and assets.
−Removed: Acquisition of Mentee Robotics
−Removed: On February 3, 2026, the Company and Mobileye Vision Technologies Ltd.
−Removed: (a wholly-owned indirect subsidiary of the Company) acquired 100% of the issued and outstanding stock of Mentee Robotics (such transaction, the “Acquisition”), pursuant to a share purchase agreement dated as of January 5, 2026, by and among the Company, Mobileye Vision Technologies Ltd., Mentee Robotics, the shareholders of Mentee Robotics, and Shareholder Representative Services LLC, as the exclusive representative of the Mentee Robotics shareholders.
−Removed: The Share Purchase Agreement provided for an aggregate purchase price of $900 million, which consisted of (i) approximately $612 million in cash (subject to certain adjustments,) and (ii) 26,279,824 shares of Class A common stock of the Company.
−Removed: The entirety of such Class A common stock was allocated to the founders of Mentee Robotics, which include Prof.
−Removed: Shashua, our President and CEO, and Prof.
−Removed: Shai Shalev-Shwartz, our Chief Technology Officer.
Our Business Model
We currently derive substantially all of our revenue from our commercially deployed ADAS solutions, including our Premium ADAS solutions.
−Removed: We are now approaching the start of production of an advanced set of solutions, including Mobileye Surround ADAS™, Mobileye SuperVision™, Mobileye Chauffeur™ and Mobileye Drive™.
+Added: We are now approaching the start of production of an advanced set of solutions, including Mobileye Surround ADAS TM , Mobileye SuperVision TM , Mobileye Chauffeur TM and Mobileye Drive TM .
These solutions are propelled by our EyeQ TM 6 SoC and subsequent EyeQ TM generations, our next-generation software solutions, and our software-defined imaging radars.
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We have co-developed six generations of our automotive grade SoC, EyeQ TM , with STMicroelectronics, including EyeQ TM 5 and EyeQ TM 6.
−Removed: We have also established relationships with several suppliers, such as Quanta Computer, to develop and assemble our ECUs, including the design for our Mobileye SuperVision™, which includes our EyeQ TM 5 SoCs manufactured by STMicroelectronics.
−Removed: As part of an effort to establish redundancy and better control of our supply chain, we have sought additional qualified suppliers, and we have recently entered into an agreement with TSMC (Taiwan Semiconductor Manufacturing Company Ltd.) pursuant to which it will manufacture components of our imaging radar and some of our future generations of our EyeQ™ product, and potentially other future products.
+Added: We have also established relationships with several suppliers, such as Quanta Computer, to develop and assemble our ECUs, including the design for our Mobileye SuperVision TM , which includes our EyeQ TM 5 SoCs manufactured by STMicroelectronics.
+Added: As part of an effort to establish redundancy and better control of our supply chain, we have sought additional qualified suppliers, and we have recently entered into an agreement with TSMC (Taiwan Semiconductor Manufacturing Company Ltd.) pursuant to which it will manufacture components of our imaging radar and some of our future generations of our EyeQ TM product, and potentially other future products.
Our close partnership with Intel exists on multiple fronts.
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ADAS volumes have grown faster in recent years than the overall automotive market as ADAS penetration rates have increased, and we believe that we will continue to benefit from that trend.
−Removed: Our revenue of $558 million in the three months ended March 28, 2026 was up 27% year-over-year.
+Added: Our revenue of $1,066 million in the six months ended June 27, 2026 was up 13% year-over-year.
Continued or future constraints on global automotive production resulting from the effects of economic uncertainty, both global and in specific markets in which we operate, may be a limiting factor on our ability to increase revenue.
7 unchanged sentences
In addition, the timing and extent of commercialization of humanoid robotics solutions remains uncertain with respect to scalability, economic viability and regulatory approval.
−Removed: As a result, our expansion into adjacent markets, including through the acquisition of Mentee Robotics, may adversely affect our results of operations, margins and cash flows, particularly in the near to medium term.
+Added: In June 2026, we announced plans to establish a vertically integrated robotaxi business that would expand our role beyond supplying autonomous-driving technology to owning and operating an autonomous ride-hailing service.
+Added: This expansion is in its initial stages, and may require significant management attention, Company resources, capital investment and operating expenses, as well as involve certain uncertainties.
+Added: As a result, our expansion into adjacent markets and new business models, including through the acquisition of Mentee Robotics and our planned vertically integrated robotaxi business, may adversely affect our results of operations, margins and cash flows, particularly in the near to medium term.
Trade policies, sanctions and import and export controls.
3 unchanged sentences
These actions were accompanied by ongoing bilateral and multilateral negotiations, interim trade agreements, pauses, delays and retaliatory measures by certain countries, resulting in significant uncertainty regarding the scope, timing and duration of applicable tariffs and export controls.
−Removed: In addition, sector-specific measures announced during 2025, including tariffs on certain raw materials, and export controls affecting the semiconductor supply chain, have increased complexity and risk across global automotive and technology markets.
+Added: In addition, sector-specific measures announced during 2025, including tariffs on certain raw materials, export controls affecting the semiconductor supply chain and evolving AI-related export control developments, have increased complexity and risk across global automotive and technology markets.
As of the date of this report, there remains a high degree of uncertainty surrounding U.S.
67 unchanged sentences
Further, in 2025 and in 2026 the AI industry has generated increased demand for components necessary for the production of our solutions, including EyeQ™ SoCs and ECUs for our SuperVision™, Mobileye Chauffeur™ and Mobileye Drive™ solutions.
−Removed: This new demand has resulted in and may continue to result in incrased competition for and shortages of components necessary for our solutions, substantial increases in prices for such components and suppliers requiring us to increase lead times and purchase greater quantities of such components in advance in order to ensure we secure sufficient supply.
+Added: This new demand has resulted in and may continue to result in increased competition for and shortages of components necessary for our solutions, substantial increases in prices for such components and suppliers requiring us to increase lead times and purchase greater quantities of such components in advance in order to ensure we secure sufficient supply.
Such shortages of components, as well as the increases in pricing, order requirements and lead times, has and may continue to impact our ability to supply solutions to our customers in order to meet demand as well as impact OEMs’ ability to purchase our solutions.
1 unchanged sentence
To mitigate these supply chain constraints, management continues to monitor inventory levels on an ongoing basis.
−Removed: Although we cannot fully predict the length and the severity of the impact these pressures will have on a long-term basis, we do not anticipate that our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity on a long-term basis.
+Added: Although we cannot fully predict the length and the severity of the impact these pressures will have on a long-term basis, we do not currently anticipate that our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity on a long-term basis.
Equity compensation expenses.
In connection with the Mobileye IPO, we established an equity incentive plan for purposes of granting share-based compensation awards to certain members of our senior management, to our non-employee directors and to employees, to incentivize their performance and align their interests with ours.
−Removed: Historically, grants of share-based compensation to our employees were made pursuant to Intel’s employee equity incentive plans, and such historical grants will continue to be based on their original vesting schedules.
Equity compensation has been, and will continue to be, an important part of our future compensation strategy and a significant component of our future expenses, which we expect to increase over time.
6 unchanged sentences
Because of the complex nature of our products and the need to customize and validate a product and to integrate it into the OEM’s overall ADAS system, we also have strong direct relationships with the OEMs.
−Removed: EyeQ TM SoC sales represented approximately 92% and 94% of our revenue for the three months ended March 28, 2026 and March 29, 2025, respectively.
−Removed: Sales of our SuperVision™ product represented half of the reminder of our revenue for the three months ended March 28, 2026 and less than half of the remainder of our revenue for the three months ended March 29, 2025.
−Removed: Revenue from the sale of our EyeQ TM products is recognized at the time of product shipment from our facilities, as determined by the agreed-upon shipping terms.
+Added: EyeQ TM SoC sales represented approximately 90% and 92% of our revenue for the three months ended June 27, 2026 and June 28, 2025, respectively, and 91% and 93% of our revenue in the six months ended June 27, 2026 and June 28, 2025, respectively.
+Added: Sales of our SuperVision™ product represented over half of the remainder of our revenue for the three and six months ended June 27, 2026, and less than half of the remainder of our revenue for the three and six months ended June 28, 2025.
+Added: Revenue from the sale of our EyeQ TM products and SuperVision™ products is recognized at the time of product shipment from our facilities, as determined by the agreed-upon shipping terms.
Our sales to any single Tier 1 automotive supplier typically cover more than one OEM and more than one production program from any OEM.
Cost of Revenue
−Removed: Cost of revenue consists primarily of expenses associated with the manufacturing cost of our EyeQ TM SoCs and our SuperVision™ product, and amortization of acquired intangible assets, identified as developed technology.
+Added: Cost of revenue consists primarily of expenses associated with the manufacturing cost of our EyeQ TM SoCs and our SuperVision™ product, and amortization of acquired intangible assets, identified as developed technology and developed IP.
Additional costs are royalty fees for the intellectual property that is included in the EyeQ TM SoC, personnel-related expenses, logistics and insurance costs and allocated overhead costs.
2 unchanged sentences
Research and Development Expenses, net
−Removed: Research and development expenses primarily consist of expenses associated with personnel related expenses, facilities, equipment and supplies for research and development activities, materials, parts and other prototype development, cloud computing services, consulting and other professional services, amortization of acquired intangible asset related to developed IP, quality assurance within the development programs, and allocated overhead costs.
+Added: Research and development expenses primarily consist of expenses associated with personnel related expenses, facilities, equipment and supplies for research and development activities, materials, parts and other prototype development, cloud computing services, consulting and other professional services, quality assurance within the development programs, and allocated overhead costs.
We enter into best-efforts nonrefundable non-recurring engineering (“NRE”) arrangements pursuant to which we are reimbursed for a portion of the research and development expenses attributable to specific development programs.
2 unchanged sentences
All intellectual property generated from these arrangements are exclusively owned by us.
+Added: On March 29, 2026, the Israeli Knesset enacted the “Law for the Encouragement and Incentivization of Research and Development, 2026” (the “R&D Law”).
+Added: The R&D Law introduces a refundable tax credit regime which applies to qualifying research and developments expenditures incurred in tax years beginning on or after January 1, 2026.
+Added: The R&D Law provides eligible companies with an incentive calculated as a percentage of qualifying research and development expenditures incurred in Israel.
+Added: Subject to applicable statutory requirements and other conditions, the incentive may be offset against Israeli income taxes or Israeli qualified domestic minimum top-up taxes (“QDMTT”).
+Added: Alternatively, an unused grant may be received in cash after the prescribed carryforward period, or an eligible company may make an irrevocable election to receive the incentive as a cash grant rather than a credit.
+Added: Such incentives are recognized as a reduction of research and development expenses once there is reasonable assurance that the Company complies with required conditions and the incentive will be received.
We intend to continue our significant investment in research and development activities to attain our strategic objectives.
9 unchanged sentences
Goodwill Impairment
−Removed: Goodwill impairment expenses consist of a non-cash impairment loss recognized for the goodwill of the “Mobileye” reporting unit in the three months ended March 28, 2026, as a result of the impairment analysis the Company performed during the first quarter of 2026.
+Added: Goodwill impairment expenses consist of a non-cash impairment loss recognized for the goodwill of the “Mobileye” reporting unit in the six months ended June 27, 2026, as a result of the impairment analysis the Company performed during the first quarter of 2026.
Financial Income (Expense), net
6 unchanged sentences
Subsequently, multiple sets of administrative guidance have been issued.
−Removed: Many non-US tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States), with the adoption of additional components in later years, or announced their plans to enact legislation in future years.
−Removed: In Israel, the regulations of Pillar Two Model Rules became effective for tax years beginning after January 1, 2026.
−Removed: The Pillar Two Model Rules does not have a material effect on our income tax provision for the 2026 fiscal year.
−Removed: We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions in which we operate.
+Added: Many non-U.S.
+Added: tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States), with the adoption of additional components in later years, or announced their plans to enact legislation in future years.
+Added: In Israel, the regulations implementing the Pillar Two Model Rules became effective for tax years beginning after January 1, 2026.
+Added: The Pillar Two Model are not expected to have a material effect on our income tax provision for fiscal year 2026.
+Added: We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-U.S.
+Added: tax jurisdictions in which we operate.
The Company is a constituent entity of its Parent for Pillar Two Model Rules purposes.
−Removed: On March 29, 2026, the Israeli Knesset approved the Law for the Encouragement and Promotion of Research and Development, 2026 (the “Incentive Law”).
−Removed: The Incentive Law introduces a framework of incentives for research and development activities, to be provided either as a tax credit or as a cash grant in lieu thereof, and is intended to align with the OECD Pillar Two framework.
−Removed: As of the date of approval of these financial statements, the Company is assessing the potential impact of the Incentive Law on its operations, including its effect on the Company’s results of operations and eligibility for incentives.
+Added: On March 29, 2026, the Israeli Knesset approved the R&D Law.
+Added: The R&D Law introduces a refundable tax credit regime calculated as a percentage of qualifying research and development expenditures incurred in Israel, beginning on or after January 1, 2026, and is intended to align with the OECD Pillar Two framework.
+Added: Subject to applicable statutory requirements and other conditions, eligible companies may offset the incentive against Israeli income taxes or QDMTT.
+Added: Alternatively, an unused grant may be received in cash after the prescribed carryforward period, or an eligible company may make an irrevocable election to receive the incentive as a cash grant rather than a credit.
+Added: Such incentives are recognized as a reduction to research and development expenses once there is reasonable assurance the conditions will be met and the benefit will be received.
The Israeli operations of Mobileye, Moovit and Mentee Robotics are taxable in the United States as a branch entity.
8 unchanged sentences
Three Months Ended
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: Six Months Ended
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
dollars in millions
13 unchanged sentences
Three Months Ended
+Added: Six Months Ended
dollars in millions
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
Cost of revenue
4 unchanged sentences
Three Months Ended
+Added: Six Months Ended
dollars in millions
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
+Added: Cost of revenue
Research and development, net
2 unchanged sentences
Total share-based compensation
−Removed: Comparison of the Three Months ended March 28, 2026 and March 29, 2025
−Removed: In the three months ended March 28, 2026, revenue increased by $120 million, or 27%, compared to the three months ended March 29, 2025, mainly due to an increase of $100 million, or 24%, in EyeQ TM SoC revenue, primarily attributable to a 28% increase in volume attributable to higher EyeQ demand, as well as to the normalization of safety stock levels at our Tier 1 customers, as a result of a certain draw down which took place in the fourth quarter of 2025.
+Added: (3) Includes the R&D Law incentive grant related to ordinary income from sold RSUs which reflects the actual sale of shares of common stock issued upon conversion of restricted stock units and is recognized as a reduction to research and development expenses:
+Added: Three Months Ended
+Added: Six Months Ended
+Added: dollars in millions
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
+Added: Research and development, net
+Added: Comparison of the three and six months ended June 27, 2026 and June 28, 2025
+Added: In the three months ended June 27, 2026, revenue increased by $2 million compared to the three months ended June 28, 2025.
+Added: This increase in revenue was primarily due to an increase of $15 million in SuperVision TM mostly attributable to an 81% increase in volume resulting from higher customer demand, partially offset by a decrease of $10 million in EyeQ TM SoC revenue, mostly attributable to higher sales to Chinese OEMs with lower Average System Price.
+Added: Average System Price, calculated as the sum of revenue related to EyeQ TM and SuperVision TM systems divided by the number of systems delivered, decreased by approximately 2%, primarily due to the higher portion of EyeQ TM sales to Chinese OEMs, partially offset by a higher percentage of SuperVision TM related revenue as compared to the second quarter of 2025.
+Added: In the six months ended June 27, 2026, revenue increased by $122 million, or 13%, compared to the six months ended June 28, 2025.
+Added: This increase was primarily due to an increase of $90 million, or 10%, in EyeQ TM SoC and $34 million or 181% in SuperVision TM revenue attributable mainly to a 15% and 164% increase in volumes respectively, resulting mainly from higher customer demand.
+Added: Average System Price decreased by 1%, mainly due to the higher portion of EyeQ TM sales to Chinese OEMs, partially offset by a higher percentage of SuperVision TM related revenue as compared to the six months ended June 28, 2025.
Cost of Revenue
−Removed: In the three months ended March 28, 2026, our cost of revenue increased by $52 million, or 23%, compared to the three months ended March 29, 2025, due to an increase of $52 million in manufacturing costs, mainly resulting from the increase in sales of EyeQ TM systems, in addition to an increase in sales of SuperVision TM systems.
+Added: In the three months ended June 27, 2026, our cost of revenue increased by $19 million, or 7% compared to the three months ended June 28, 2025.
+Added: The increase is attributed to manufacturing costs, mainly resulting from the increase in sales of SuperVision TM systems as well as higher cost resulting from different generation mix of EyeQ TM SoC.
+Added: In the six months ended June 27, 2026, our cost of revenue increased by $71 million, or 15%, compared to the six months ended June 28, 2025.
+Added: The increase is attributed to manufacturing costs, mainly resulting from the increase in sales of EyeQ TM SoC and SuperVision TM systems.
Gross Profit and Margin
−Removed: In the three months ended March 28, 2026, our gross profit increased by $68 million, or 33%, compared to the three months ended March 29, 2025.
−Removed: This increase was mainly driven by the increase in sales of EyeQ TM systems.
−Removed: Our gross margin increased from 47% for the three months ended March 29, 2025, to 49% for the three months ended March 28, 2026.
−Removed: This increase was primarily due to the lower impact of amortization of intangible assets as a percentage of revenue, partially offset by a higher EyeQ-related cost per unit given the different mix of EyeQ products sold.
+Added: In the three months ended June 27, 2026, our gross profit decreased by $17 million, or 7% compared to the three months ended June 28, 2025.
+Added: The decrease was primarily due to a modest reduction in EyeQ TM ASP, as well as an increase in amortization of intangible assets associated with the acquisition of Mentee Robotics, which was slightly offset by an increase in SuperVision TM revenue.
+Added: In the six months ended June 27, 2026, our gross profit increased by $51 million, or 11%, compared to the six months ended June 28, 2025.
+Added: The increase was primarily due to the increase in EyeQ TM and SuperVision TM revenue, slightly offset by an increase in amortization of intangible assets associated with the acquisition of Mentee Robotics.
+Added: In the three months ended June 27, 2026, our gross margin decreased to 46% compared to 50% in the three months ended June 28, 2025.
+Added: This decrease was due to a modest reduction in EyeQ TM ASP, mainly attributable to higher volume sold to Chinese OEMs, which carry lower ASP, in addition to a higher portion of SuperVision TM revenue with lower margin given the greater hardware content included.
+Added: In the six months ended June 27, 2026, our gross margin decreased to 48% compared to 49% in the six months ended June 28, 2025.
+Added: This decrease was primarily due to a modest reduction in EyeQ TM ASP, mainly attributed to higher volume sold to Chinese OEMs, which carry lower ASP.
Research and Development Expenses, net
−Removed: Research and development expenses, net, in the three months ended March 28, 2026, increased by $48 million, or 17%, compared to the three months ended March 29, 2025.
−Removed: This increase was primarily due to an increase in payroll and related expenses, resulting from an increase in salary expenses and unfavorable fluctuation of New Israeli Shekels against U.S dollars.
−Removed: In addition, stock based compensation expense increased, mainly given the additional equity awards granted as part of the acquisition of Mentee Robotics.
+Added: Research and development expenses, net, in the three months ended June 27, 2026, decreased by $75 million, or 27%, compared to the three months ended June 28, 2025.
+Added: This decrease was primarily due to a $110 million R&D Law incentive grant recognized this quarter for the entire first half of 2026, which was partially offset by higher payroll and related expenses mainly due to the effect of exchange rate fluctuations of the U.S.
+Added: Dollar against the New Israeli Shekel, as well as higher share-based compensation expenses.
+Added: Research and development expenses, net, in the six months ended June 27, 2026 decreased by $27 million, or 5%, compared to the six months ended June 28, 2025.
+Added: This decrease was mainly due to a $110 million R&D Law incentive grant recognized this quarter for the entire first half of 2026, partially offset by an increase in payroll and related expenses mainly due to the effect of exchange rate fluctuations of the U.S.
+Added: Dollar against the New Israeli Shekel, in addition to an increase in average research and development headcount, higher share-based compensation expenses, higher cloud compute expenses and higher occupancy expenses including depreciation.
Sales and Marketing Expenses
−Removed: Sales and marketing expenses in the three months ended March 28, 2026, decreased by $2 million, or 6%, compared to the three months ended March 29, 2025, mainly given lower marketing expenses.
+Added: Sales and marketing expenses in the three months ended June 27, 2026, increased by $2 million or 8% compared to the three months ended June 28, 2025, mainly due to higher marketing expenses.
+Added: Sales and marketing expenses in the six months ended June 27, 2026, remained flat compared to the six months ended June 28, 2025.
General and Administrative Expenses
−Removed: General and administrative expenses in the three months ended March 28, 2026, increased by $13 million, or 72%, compared to the three months ended March 29, 2025.
−Removed: This increase was primarily related to transaction costs associated with the acquisition of Mentee Robotics, as well as to higher stock based compensation, resulting mainly from the acquisition of Mentee Robotics.
+Added: General and administrative expenses in the three months ended June 27, 2026 increased by $12 million or 63% compared to the three months ended June 28, 2025 due to higher share-based compensation expenses associated primarily with the acquisition of Mentee Robotics.
+Added: General and administrative expenses in the six months ended June 27, 2026 increased by $25 million or 68%, compared to the six months ended June 28, 2025.
+Added: This increase was due to transaction costs and share-based compensation expenses associated primarily with the acquisition of Mentee Robotics.
Goodwill Impairment
−Removed: Goodwill impairment expenses were $3,788 million in the three months ended March 28, 2026 and zero in the three months ended March 29, 2025.
+Added: Goodwill impairment expenses were zero and $3,788 million in the three and six months ended June 27, 2026, respectively, and zero in the three and six months ended June 28, 2025.
During the first quarter of 2026, the Company performed an interim quantitative goodwill impairment analysis for the “Mobileye” reporting unit, resulting in a non-cash impairment loss.
1 unchanged sentence
Financial Income (expense), net
−Removed: Financial income, net, in the three months ended March 28, 2026, was $14 million compared to $18 million in the three months ended March 29, 2025.
−Removed: This decrease was mainly due to a decrease in interest earned on investment in money market funds due to cash used for the acquisition of Mentee Robotics and a decrease derived from the impact of fluctuations in foreign exchange rates, partially offset by an increase in interest earned on short term bank deposits.
+Added: Financial income, net, in the three months ended June 27, 2026 remained flat compared to the three months ended June 28, 2025, mainly as a result of a decrease in interest income earned on investment in money market funds due to cash used for the acquisition of Mentee Robotics in February 2026, which was offset by the impact of fluctuations in foreign exchange rates.
+Added: Financial income, net, in the six months ended June 27, 2026 decreased by $4 million, or 13%, compared to the six months ended June 28, 2025, due to a decrease in interest income, which was partially offset by the impact of fluctuations in foreign exchange rates.
Benefit (Provision) for Income Tax
−Removed: Benefit for income tax in the three months ended March 28, 2026, was $64 million compared to a provision for income tax of $(3) million in the three months ended March 29, 2025.
−Removed: This $67 million change is mainly due to the deferred tax effect of goodwill impairment to the Mobileye reporting unit.
+Added: In the three months ended June 27, 2026 provision for income tax was $4 million, compared to $6 million in the three months ended June 28, 2025.
+Added: The decrease of $2 million in tax provision was primarily due to the reduction in deferred tax liability resulting from the goodwill impairment to the Mobileye reporting unit which was recorded in the first quarter of 2026, partially offset by a lower loss before income taxes in foreign jurisdictions.
+Added: In the six months ended June 27, 2026, benefit for income tax was $60 million, compared to a provision for income tax of $9 million in the six months ended June 28, 2025, mainly due to the deferred tax effect of $67 million attributed to goodwill impairment to the Mobileye reporting unit which was recorded in the first quarter of 2026.
Liquidity and Capital Resources
1 unchanged sentence
Cash generated by operations is our primary source of liquidity for funding our strategic business requirements.
−Removed: Our primary uses of funds have been for funding increases in headcount in our research and development departments, investments attributable to new product development, as well as for funding our capital expenditures, and the recent acquisition of Mentee Robotics, a humanoid robotics company.
−Removed: Our capital expenditures for purchase of property and equipment have related mainly to data storage and other computer related equipment, expenditure related to research and development projects including data farming and cloud compute and to leasehold improvements, and were $30 million and $14 million for the three months ended March 28, 2026 and March 29, 2025, respectively.
+Added: Our primary uses of funds have been for funding increases in headcount in our research and development departments;
+Added: investments attributable to new product development;
+Added: the recent acquisition of Mentee Robotics, a humanoid robotics company;
+Added: the repurchase program authorized by our Board of Directors in April 2026 to repurchase up to $250 million of Mobileye’s outstanding Class A common stock (the “Repurchase Program”), as well as for funding our capital expenditures.
+Added: Our capital expenditures for purchase of property and equipment have related mainly to data storage and other computer related equipment, expenditure related to research and development projects including data farming and cloud compute, and to leasehold improvements, and were $51 million and $28 million for the six months ended June 27, 2026 and June 28, 2025, respectively.
Cash paid for the acquisition of Mentee Robotics, net of cash acquired, was $591 million .
6 unchanged sentences
The following table sets forth certain consolidated statements of cash flow data:
−Removed: Three months Ended
+Added: Six Months Ended
dollars in millions
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: June 27, 2026
+Added: June 28, 2025
Net cash provided by operating activities
Net cash used in investing activities
−Removed: Net cash provided by financing activities
+Added: Net cash used in financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
1 unchanged sentence
Operating activities
−Removed: For the three months ended March 28, 2026 compared to the three months ended March 29, 2025, the $34 million decrease in cash provided by operating activities was mainly due to a higher increase in trade accounts receivable and a lower decrease in inventory compared to prior year period, due to the increase in sales and the relatively low accounts receivable balance as of the end of 2025.
−Removed: This was partially offset by an increase in accounts payable, accrued expenses and related party payable compared to a decrease in prior year period.
+Added: For the six months ended June 27, 2026 compared to the six months ended June 28, 2025, the $112 million decrease in cash provided by operating activities was mainly due to a higher increase in trade accounts receivable and a lower decrease in inventory compared to the six months ended June 28, 2025, due to the increase in sales and the relatively low accounts receivable balance as of the end of 2025.
+Added: This was partially offset by a higher increase in accounts payable, accrued expenses and related party payable compared to prior year period.
Investing activities
−Removed: Net cash used in investing activities in the three months ended March 28, 2026 and the three months ended March 29, 2025 was $699 million and $25 million, respectively.
−Removed: The three months ended March 28, 2026 include $591 million net cash paid for the acquisition of Mentee Robotics.
−Removed: In both periods net cash used in investing activities include capital expenditures and debt investments.
+Added: Net cash used in investing activities in the six months ended June 27, 2026 and June 28, 2025 was $719 million and $39 million, respectively.
+Added: The six months ended June 27, 2026 include $591 million net cash paid for the acquisition of Mentee Robotics.
+Added: In both periods net cash used in investing activities included capital expenditures and debt investments .
Financing activities
−Removed: Net cash provided by financing activities in the three months ended March 28, 2026 and the three months ended March 29, 2025 was $0 million and $3 million, respectively, consisting of share-based compensation recharge with Intel.
+Added: Net cash used in financing activities in the six months ended June 27, 2026 was $24 million consisting of repurchases of common stock.
+Added: Net cash used in financing activities in the six months ended June 28, 2025 was zero.
Liability in respect of employee rights upon retirement
Israeli labor laws and agreements require severance payments upon dismissal of an employee or upon termination of employment in other circumstances.
−Removed: The severance pay liability with respect to Israeli employees is calculated pursuant to Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date.
+Added: The severance pay liability with respect to Israeli employees is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date.
Our liability for all of our Israeli employees is covered by monthly deposits with severance pay funds.
The value of the deposited funds is based on the cash surrender value of these policies and includes profits (or loss) accumulated through the balance sheet date.
−Removed: The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to Israeli Severance Pay Law or labor agreements.
+Added: The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to the Israeli Severance Pay Law or labor agreements.
The majority of our liability for severance pay is covered by the provisions of Section 14 of the Israeli Severance Pay Law (“Section 14”).
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As a result, we do not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as assets on the consolidated balance sheets.
−Removed: Severance pay liability was $78 million as of March 28, 2026 and December 27, 2025.
+Added: Severance pay liability increased from $78 million as of December 27, 2025, to $83 million as of June 27, 2026, mainly due to the impact of fluctuations in foreign exchange rates.
Lease liabilities
We have lease agreements for vehicles and offices.
−Removed: We lease office space in various locations in Israel and around the world including USA, Germany and China.
+Added: We lease office space in various locations in Israel and around the world including Germany and China.
All leases are operating leases with fixed payment terms where some of the leases include annual increases to lease payments based on an index or a rate.
−Removed: Lease liabilities, representing the present value of future lease payments, have increased from $62 million as of December 27, 2025 to $63 million as of March 28, 2026, reflecting mainly new lease contracts, partially offset by the progress in lease payments for existing arrangements.
−Removed: We have several bank guarantees aggregating approximately $22 million as of March 28, 2026 (denominated in New Israeli Shekels) mainly in connection with lease agreements and import of vehicles.
+Added: Lease liabilities as of June 27, 2026, representing the present value of future lease payments, have remained flat compared to December 27, 2025, due to new lease contracts offset by the progress in lease payments for existing arrangements.
+Added: We have several bank guarantees aggregating approximately $24 million as of June 27, 2026 (denominated in New Israeli Shekels) mainly in connection with lease agreements and import of vehicles.
Non-GAAP Financial Measures
−Removed: Our management uses Adjusted Gross Profit and Margin, Adjusted Operating Income (Loss) and Margin and Adjusted Net Income (Loss), collectively, as key measures in operating our business.
+Added: Our management uses Adjusted Gross Profit (Loss) and Margin, Adjusted Operating Income (Loss) and Margin and Adjusted Net Income (Loss), collectively, as key measures in operating our business.
We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance.
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In addition, we also believe these adjustments enhance comparability of our financial performance against those of other technology companies.
−Removed: Our non-GAAP financial measures reflect adjustments for amortization charges for our acquisition-related intangible assets, share-based compensation expenses, acquisition-related expenses, impairment of goodwill and the related income tax effects where applicable.
+Added: Our non-GAAP financial measures reflect adjustments for amortization charges of our acquisition-related intangible assets, share-based compensation expenses, R&D Law incentive grant related to ordinary income from sold RSUs, acquisition-related expenses, impairment of goodwill and the related income tax effects where applicable.
We exclude amortization charges for our acquisition-related intangible assets for purposes of calculating certain non-GAAP measures, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions.
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We believe that the exclusion of goodwill impairment is appropriate because it does not reflect our core operating performance, and excluding such non-cash impairment loss facilitates a useful evaluation of our performance and comparisons to past operating results.
+Added: We believe that the exclusion of the R&D Law incentive grant related to ordinary income from sold RSUs is consistent with our treatment of share-based compensation expenses in our non-GAAP measures, as it relates to incentives associated with equity-based compensation that are excluded from our non-GAAP results.
Acquisition-related expenses include professional fees and other costs incurred in connection with business combinations.
1 unchanged sentence
Adjusted Gross Profit and Margin
−Removed: We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense.
+Added: We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expenses.
Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue.
1 unchanged sentence
Three Months Ended
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: Six Months Ended
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
dollars in millions
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However, as a result of a higher expected selling price for such systems, we expect our gross profit per unit will increase on a dollar basis.
−Removed: Our Adjusted Gross Margin decreased from 69% for the three months ended March 29, 2025 to 66% for the three months ended March 28, 2026.
−Removed: This was mainly due to a higher EyeQ™-related cost per unit given the different mix of EyeQ™ products sold.
−Removed: The decrease was also related to higher percentage of revenue attributable to Supervision TM .
+Added: Our Adjusted Gross Margin decreased from 69% in both the three and six months ended June 28, 2025 to 66% in both the three and six months ended June 27, 2026.
+Added: This decrease was primarily due to a modest reduction in EyeQ TM ASP, mainly attributable to higher volume sold to Chinese OEMs, which carry lower ASP, and a higher portion of SuperVision TM revenue with lower margin given the greater hardware content included.
Adjusted Operating Income (Loss) and Margin
−Removed: We define Adjusted Operating Income (Loss) as operating income (loss) presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles and share-based compensation expenses, acquisition-related expenses and impairment of goodwill.
+Added: We define Adjusted Operating Income (Loss) as operating income (loss) presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses, the R&D Law incentive grant related to ordinary income from sold RSUs acquisition-related expenses and impairment of goodwill.
Operating Margin is calculated as operating income (loss) divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income (Loss) divided by total revenue.
1 unchanged sentence
Three Months Ended
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: Six Months Ended
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
dollars in millions
−Removed: Operating Income (Loss) and Margin
+Added: Operating Income (Loss) and Operating Margin
Amortization of acquired intangible assets
Share-based compensation expense
+Added: R&D Law incentive grant related to ordinary income from sold RSUs
Acquisition related expenses
1 unchanged sentence
Adjusted Operating Income (Loss) and Margin
−Removed: Our Operating Loss increased by $3,779 million in the three months ended March 28, 2026 compared to the three months ended March 29, 2025, mainly due to the goodwill impairment loss recognized this quarter.
−Removed: Our Adjusted Operating Income increased by $36 million in the three months ended March 28, 2026 compared to the three months ended March 29, 2025, mainly due to higher Adjusted Gross Profit, partially offset by an increase in operating expenses.
−Removed: Our Adjusted Operating Margin increased from 13% for the three months ended March 29, 2025 to 17% for the three months ended March 28, 2026, due to lower operating expenses as a percentage of revenue, partially offset by lower Adjusted Gross Margin.
+Added: Our Operating Loss decreased from $74 million in the three months ended June 28, 2025 to $30 million in three months ended June 27, 2026, mainly due to a decrease in operating expenses attributed to a R&D Law incentive grant recognized this quarter for the entire first half of 2026, partially offset by higher share-based compensation expenses.
+Added: Our Operating Loss increased from $191 million in the six months ended June 28, 2025 to $3,926 million in the six months ended June 27, 2026, mainly due to a goodwill impairment loss recognized in the first quarter of 2026.
+Added: Our Adjusted Operating Income increased by $49 million in the three months ended June 27, 2026 compared to the three months ended June 28, 2025, mainly due to a decrease in operating expenses attributed to a R&D Law incentive grant recognized this quarter for the entire first half of 2026, partially offset by a decrease in Adjusted Gross Profit.
+Added: Our Adjusted Operating Income increased by $85 million in the six months ended June 27, 2026 compared to the six months ended June 28, 2025, mainly due to higher adjusted gross profit and lower operating expenses attributed to a R&D Law incentive grant recognized this quarter for the entire first half of 2026,
+Added: Our Adjusted Operating Margin increased from 21% for the three months ended June 28, 2025 to 31% for the three months ended June 27, 2026.
+Added: Our Adjusted Operating Margin increased from 17% for the six months ended June 28, 2025 to 23% for the six months ended June 27, 2026.
+Added: The increase in both periods was mainly due to a lower operating expenses as a percentage of revenue, partially offset by lower Adjusted Gross Margin.
Adjusted Net Income (Loss)
−Removed: We define Adjusted Net Income (Loss) as net income (loss) presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles and share-based compensation expenses, acquisition-related expenses, impairment of goodwill and the related income tax effects.
+Added: We define Adjusted Net Income (Loss) as net income (loss) presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses, the R&D Law incentive grant related to ordinary income from sold RSUs, acquisition-related expenses, impairment of goodwill and the related income tax effects.
Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts.
2 unchanged sentences
Three Months Ended
−Removed: March 28, 2026
−Removed: March 29, 2025
+Added: Six Months Ended
+Added: June 27, 2026
+Added: June 28, 2025
+Added: June 27, 2026
+Added: June 28, 2025
dollars in millions
2 unchanged sentences
Share-based compensation expense
+Added: R&D Law incentive grant related to ordinary income from sold RSUs
Acquisition related expenses
2 unchanged sentences
Adjusted Net Income (Loss)
−Removed: Our net loss increased by $3,716 million in the three months ended March 28, 2026, compared the three months ended March 29, 2025, primarily due to the goodwill impairment loss recognized this quarter.
−Removed: We had an Adjusted Net Income of $96 million in the three months ended March 28, 2026 compared to an Adjusted Net Income of $63 million in the three months ended March 29, 2025, primarily due to the increase in Adjusted Gross Profit, partially offset by an increase in operating expenses.
+Added: The three months ended June 27, 2026 ended with a Net Loss of $21 million compared to a $67 million Net Loss in the three months ended June 28, 2025.
+Added: The decrease in Net Loss is mainly due to a reduction in operating expenses attributed to a R&D Law incentive grant recognized this quarter for the entire first half of 2026, partially offset by higher share-based compensation expenses.
+Added: Our Net Loss increased by $3,670 million in the six months ended June 27, 2026, compared to the six months ended June 28, 2025.
+Added: The increase in Net Loss is mainly due to a goodwill impairment loss recognized during the first quarter of 2026.
+Added: Our Adjusted Net Income increased by $53 million in the three months ended June 27, 2026, compared to the three months ended June 28, 2025.
+Added: Our Adjusted Net Income increased by $86 million in the six months ended June 27, 2026, compared to the six months ended June 28, 2025.
+Added: The increase in both periods was mainly due to an increase in Adjusted Operating Income.
Critical Accounting Policies and Estimates
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Note 2, “Significant Accounting Policies” of the Notes to the condensed consolidated Financial Statements in Part I, Item 1 of this Form 10-Q and in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the 2025 Annual Report on Form 10-K, as filed with the SEC on February 12, 2026 (the “2025 Form 10-K”) describe the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements.
−Removed: There have been no material changes to the Company’s critical accounting estimates since the 2025 Form 10-K.
+Added: There have been no material changes to the Company’s critical accounting estimates since the 2025 Form 10-K, except for the addition of a new critical accounting estimate regarding Refundable Research and Development Incentives detailed below.
As noted in the 2025 Form 10-K critical accounting policies, we regularly test our goodwill and intangible assets to make a judgment on whether facts and circumstances indicate that the carrying amount may not be recoverable and an impairment may be required.
12 unchanged sentences
We also assessed the reasonableness of the estimated fair value of the reporting unit by comparison to its market capitalization, including consideration of expected acquirer synergies, control premium, and the current market.
−Removed: The results of the impairment analysis indicate that the fair value of the Mobileye reporting unit is below its carrying amount and therefore a non-cash impairment loss of $3,788 million, was recognized in the Condensed Consolidated Statements of Operations.
−Removed: A 1% increase in the discount rate and a 0.5% decrease in terminal growth rate would result in an additional impairment of $682 million and $141 million, respectively.
+Added: The results of the impairment analysis indicate that the fair value of the Mobileye reporting unit is below its carrying amount and therefore a non-cash impairment loss of $3,788 million was recognized in the first quarter of 2026.
+Added: A 1% increase in the discount rate and a 0.5% decrease in terminal growth rate would have resulted in an additional impairment of $682 million and $141 million, respectively.
Our impairment conclusion is sensitive to the market capitalization in that a further sustained decline in the Company’s market capitalization may require additional analysis to support the reasonability of our implied control premium, and may require further adjustments to certain key assumptions underlying our valuation.
+Added: Research and Development Incentives
+Added: The R&D Law, enacted on March 29, 2026, introduced a refundable tax credit regime which applies to qualifying research and developments expenditures incurred in tax years beginning on or after January 1, 2026.
+Added: The R&D Law provides eligible companies with an incentive calculated as a percentage of qualifying research and development expenditures incurred in Israel.
+Added: Subject to applicable statutory requirements and other conditions, the incentive may be offset against Israeli income taxes or Israeli QDMTT.
+Added: Alternatively, an unused grant may be received in cash after the prescribed carryforward period, and an eligible company may make an irrevocable election to receive the incentive as a cash grant rather than a credit.
+Added: Because the incentive may be received in cash and is determined based on qualifying research and development expenditures, the Company accounts for this benefit using a government grant accounting model applied by analogy.
+Added: The benefit is recognized as a reduction of the related research and development expense when there is reasonable assurance that the Company will comply with the applicable conditions and that the benefit will be received.
+Added: The recognition and measurement of the incentive require judgment, including in assessing the Company’s eligibility, determining whether the recognition criteria have been met, identifying and measuring qualifying research and development expenditures incurred in Israel and estimating the amount expected to be approved by the relevant Israeli authorities.
+Added: Changes in these judgments, or in regulations, interpretations, administrative guidance or determinations under the R&D Law (including in respect of any change in Intel’s status as a controlling shareholder and any resulting impact on the Company’s eligibility for, or the amount of the incentive) could affect the amount and timing of the incentive recognized and, consequently, research and development expenses in the Company’s consolidated financial statements.
Cautionary Note Regarding Forward-Looking Statements
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● future products and technology, and the expected availability and benefits of such products and technology;
+Added: ● our planned vertically integrated robotaxi business, including the development, launch, operation, scaling, regulatory approval and commercial acceptance of autonomous ride-hailing services, may not proceed as expected;
● the humanoid robotics industry and its accompanying technology may not develop as expected;
16 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.