Aeva reported a strong second quarter with $6.1 million of revenue and reinforced liquidity of $302.9 million after a $115 million June equity raise, while holding its non-GAAP operating loss near $26 million. The defining event was the launch of the Aeva Optical Connectivity Business and a signed joint development agreement to integrate its high-power optical source and silicon-photonics technology into a Near-Package Optics solution for a major hyperscaler, an opportunity management framed as multiple millions of units and multiple hundreds of millions of dollars annually once qualified in 2027-2028. Automotive momentum continued with Daimler Truck production-intent shipments, the start of manufacturing on the automated Jabil line, a Bendix Level 2+ ADAS win, and SICK AG's first commercial Eve-based sensor. The quarter also brought a CFO transition, with Saurabh Sinha departing in September and Rupesh Maheshwari stepping in as Interim CFO.

What went well
  • Delivered another strong revenue quarter of $6.1 million, driven by continued strong sensor shipments and NRE that was higher than the prior year.
  • Strengthened the balance sheet in June with a follow-on equity offering raising $115 million in gross proceeds, bringing total available liquidity at the end of Q2 to $302.9 million.
  • Launched the Aeva Optical Connectivity Business and signed a key joint development agreement with a leading provider of high-speed optical engines to integrate Aeva's technology into a Near-Package Optics solution for a major hyperscaler.
  • Advanced automotive programs: continued scaling shipments of production-intent Atlas sensors to Daimler Truck and began manufacturing on the fully automated assembly line at Jabil in North America.
  • Bendix, the North American leader in commercial-vehicle ADAS, selected Aeva's 4D LiDAR and perception software for its next-generation Level 2+ ADAS series-production system.
  • SICK AG commercially launched its first industrial sensor using Aeva's Eve precision sensing system, and the city of Fargo, North Dakota selected Aeva CityOS following the earlier Atlanta deployment.
What went wrong
  • Announced a CFO transition: Saurabh Sinha will depart in September and VP Corporate Controller Rupesh Maheshwari will step in as Interim CFO while a permanent successor search is underway.
  • Non-GAAP operating loss was $26 million, close to prior-year levels, as the company continues to operate at a loss.
  • Q2 gross cash use (operating cash flow less capex) was $31.4 million, higher than Q1's $28.1 million.
  • The newly signed optical-connectivity opportunity carries no near-term revenue, with only potential initial volumes in 2027 and a ramp in 2028.
  • Liquidity was reinforced through a dilutive follow-on equity offering rather than from operating cash generation.

Management Commentary

Read the Q2 2026 summary ↗
Andrew Fung
Senior Director of Investor Relations and Corporate Development, Aeva Technologies

Thank you. Welcome, everyone, to Aeva's Second Quarter 2026 earnings conference call. Joining on the call today are Soroush Salehian, Aeva's Co-founder and CEO, and Saurabh Sinha, Aeva's CFO. Ahead of this call, we issued our second quarter 2026 press release and presentation, which we will refer to today and can be found on our Investor Relations website at investors.aeva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For a further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Aeva's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for or in isolation from, GAAP results. The webcast replay of this call will be available on our company website under the investor relations link. With that, let me turn the call over to Soroush.

Soroush Salehian
Co-Founder and CEO, Aeva Technologies

Thanks, Andrew. Good afternoon, everyone. Q2 was another strong quarter at Aeva. We continue to build on our leadership position with more milestones delivered to our customers and partners and important expansion into new areas, leveraging our same core technology developed in the last decade. In particular, we announced today our entrance into a very exciting new market beyond sensing applications that I will talk more about in a bit. Reflecting our commercial momentum, we achieved another strong revenue quarter with continued strong sensor shipments and NRE higher than the previous year. With demand for Aeva's technology continuing to grow, we are progressing on the targets we set this year to scale our manufacturing. We are working on ramping across our supply chain—from our CM partners to foundries and component suppliers—to support higher volumes to meet demand.

We also strengthened our balance sheet in June with a follow-on equity offering that brought our total available liquidity to over $300 million at the end of Q2. We believe this further differentiates and positions Aeva to support our current customers to commercial deployment and expand our commercial traction across the board. I would now like to highlight recent achievements and business developments. First, we are excited to announce the launch of the Aeva Optical Connectivity Business, which is our expansion to a new market that leverages Aeva's high optical power source and silicon photonics technology to enable next-generation AI data centers. Aeva has spent the past decade developing and proving out our proprietary laser-based technology for the automotive and industrial applications.

Because our technology is built on the same foundational technology used in the telecom industry, it uniquely positions Aeva to repurpose it without significant development to pursue the massive data center market opportunity as the major AI compute companies like NVIDIA, AMD, and hyperscalers such as Amazon, Microsoft, Google, transition to optical connectivity, where we believe Aeva can provide differentiated solutions to achieve the increasing performance, power efficiency, and scalability requirements for AI data centers. Earlier this year, we published a paper detailing the industry-leading performance of Aeva's high-power optical source technology. Since then, we have moved quickly to meet growing interest from leaders in AI infrastructure in Aeva's capabilities. In just a few short months, we have been working with a number of AI chip companies and optical solution providers to hyperscalers to validate some of those capabilities, and the results so far have been very encouraging.

We have been able to demonstrate how Aeva's technology can deliver—across stringent key metrics—the required high optical power, low noise, reliability, and power efficiency in a scalable solution to address the rapidly growing bandwidth and power demands of multiple next-generation AI data center architectures, including Near-Package Optics and Co-Packaged Optics (or CPO). I am thrilled to share today that we have just signed a key joint development agreement with a leading provider of high-speed optical engines to integrate Aeva's technology into a Near-Package Optics solution for a major hyperscaler with planned commercial deployments as soon as feasible, with the potential to start initial volumes in 2027 and ramping in 2028. This is a significant validation of the performance, maturity, and scalability of Aeva's technology. We believe it will advance the business we're launching today, including our other ongoing engagements across the industry.

The potential scale for this market is large, and we believe a deployment like with this deal, once qualified at the hyperscaler, has the potential to exceed multiple millions of units annually, with revenues in the multiple hundreds of millions of dollars per year. To support the significant potential for optical connectivity, we plan to leverage Aeva's existing manufacturing and foundry supply chain for volume production. We've also established a dedicated team with Pradeep Srinivasan, Aeva's VP of Photonics, taking an expanded role as Senior VP of Optical Connectivity. Pradeep has been instrumental in developing and industrializing Aeva's silicon photonics IP, and together with the team, will enable Aeva to accelerate the development, deployment, and adoption of optical connectivity. With our technology, team, and the growing commercial interest, we are very excited about the future of optical connectivity and plan to share more updates on this as we progress.

Now moving to automotive. We also made really good progress across our key automotive programs this past quarter. On Daimler Truck, we continue to scale shipments of production-intent Aeva Atlas sensors to the OEM for their AV stack validation ahead of series production. Importantly, we've begun manufacturing at our fully automated assembly line at Jabil in North America—a major milestone towards Aeva's readiness and ability to scale up manufacturing for automotive and others, including Daimler Truck's production program. In passenger vehicles, we've also progressed on milestones with the delivery of our Aeva Atlas Ultra systems and continued integration work for joint stack development with a top 10 European passenger OEM production program, as well as with NVIDIA on the NVIDIA DRIVE Hyperion platform. Our collaboration with Bendix has also progressed to a critical next stage.

Bendix has selected to use Aeva's 4D LiDAR and perception software and integrate them into its next-generation ADAS series production system for key added safety functionality for trucks, such as collision mitigation across a broader range of scenarios and nighttime driving. Bendix is the leader in commercial vehicle ADAS. Its current Bendix Fusion, which is a vision-and radar-based system, is the market-leading collision mitigation and active safety solution in North America. It is available on most of the 300,000 Class 8 trucks that are sold annually in North America alone.

With Bendix having the goal to make its next-generation ADAS system standard feature for the flagship OEMs of their major OEMs—names like Paccar or International—this selection not only highlights how the industry continues to adopt LiDAR to improve performance, but it's also a strong validation of the manufacturability and the cost effectiveness of Aeva's solutions in Level 2+ ADAS applications, where LiDAR has traditionally not penetrated yet. Now turning to factory automation, we reached an important milestone with another customer launch of Aeva product, our Eve sensor. This quarter, SICK AG, one of the largest industrial sensor providers globally, commercially launched its first industrial sensor using Aeva's Eve precision sensing system.

This is part of our long-term strategic collaboration with SICK to leverage Aeva's advantages, such as immunity to ambient light and sensor-to-sensor interference, to deliver more precise and reliable measurements across a broader range of environments at scale. In addition to SICK, we continue to see strong interest for our precision technology from leaders in manufacturing and factory automation and are working towards converting these engagements to commercial awards in the near term. Separately, in defense, we continue to support Forterra's autonomous ground vehicle, or AGV, programs as they transition from Time-of-Flight to Aeva's 4D LiDAR for long range and velocity detection, as well as for vehicle positioning and stealth operational capability in GPS-denied environments. This quarter, we also progressed on other opportunities with major defense companies and organizations beyond ground applications, including, for example, on aerial autonomy. We look forward to sharing more on these in the coming months.

Last but not least, in smart infrastructure, we continue to see good traction with the recently introduced Aeva CityOS, our AI-powered platform for real-time intelligent traffic management. Following our first large-scale deployment in the Atlanta, Georgia area, the city of Fargo, in North Dakota selected us to deploy CityOS to improve roadway safety and traffic management, leveraging 4D LiDAR's ability to operate in inclement weather—such as snow, fog, and rain—and in all lighting conditions. Aeva's ITS team is also active with other DOTs and municipalities, and we believe that our differentiated solution will continue to penetrate for additional deployments. In summary, we achieved a lot this past quarter, and our differentiated technology and balance sheet positioned us to further solidify a leadership position in the industry as we execute on our commercial momentum.

Before I turn the call to Saurabh to walk through our Q2 financial results, I want to say a few words on the CFO transition we announced today. Saurabh, who joined Aeva six years ago as our CFO, will be moving on in September to pursue a new opportunity outside the sensing industry. I want to personally thank him for his many contributions to Aeva, including his role in helping to take the company from early public stage to where we are today. We wish him all the best on his next role. We have already initiated a search for a permanent successor, which will be announced separately once complete. In the interim, Rupesh Maheshwari, our VP Corporate Controller, will step in as Interim CFO.

Rupesh brings more than 20 years of accounting and finance leadership experience at large and growing technology companies, will work alongside Saurabh to ensure a successful and seamless transition. Let me now turn the call over to Saurabh.

Saurabh Sinha
CFO, Aeva Technologies

Thank you, Soroush, for your kind words, and good afternoon, everyone. On to Aeva's Q2 results. As demand for our unique technology continues to grow, Aeva's financials also reflect the building momentum of the business, our expansion to an exciting new market opportunity, and the continued financial discipline as we execute on our plan. Revenue was $6.1 million in Q2, driven by continued strong product shipments and contribution from NRE as we delivered sensors and achieved milestones with a growing group of customers. non-GAAP operating loss was $26 million this quarter, which is close to prior year levels and reflects our target to maintain operating expenses at similar levels to up slightly year-over-year while continuing to scale the business. Q2 growth cash use, which we define as operating cash flow, less capital expenditure, was $31.4 million.

In June, we raised gross proceeds of $115 million in a follow-on equity offering. This brought our total available liquidity at the end of Q2 to $302.9 million. With this liquidity position and our differentiated technology, we believe Aeva is uniquely positioned in the industry to continue building our momentum—including into exciting new markets such as optical connectivity—and meet more of the growing demand for Aeva's technology. Finally, as this will be my last earnings call at Aeva, I wanted to say that it has truly been an honor to serve as Aeva's CFO over the past six years. I am very proud of what we have built as a team, and I look forward to following the growing momentum and continued success of the company. Let me now turn it back to Soroush for his closing remarks.

Soroush Salehian
Co-Founder and CEO, Aeva Technologies

Thank you, Saurabh. In closing, I'd like to thank the Aeva team for delivering on our key achievements in Q2. Aeva's unified perception platform continues to gain the trust of a growing list of leaders across multiple markets. Our ability to launch optical connectivity and realize commercial traction so quickly is another indication of the scalability of our technology and the execution of our team. As we continue to expand, we remain laser-focused on the objectives we set out at the beginning of this year. Achieve milestones on existing programs while adding new wins, scaling manufacturing to support increasing demand, and maintaining financial discipline as we grow. We have made strong progress on the first half of the year and are well-positioned to deliver on these objectives in 2026. With that, let's now turn to Q&A.

Analyst Q&A

Colin Rusch — Analyst, Oppenheimer & Co
Thanks so much, guys. Saurabh, congratulations on the transition. Guys, can you talk about—with this development agreement—what the key technical hurdles are that you're going to be addressing here over the next 12 to 18 months to really get ready for commercial ramp?
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, Colin, this is Soroush. Happy to answer that. Obviously, this is, I would say, a major customer win for us here and rapid progress—I would call it lightning speed—in the past few months for us to get to here. I think the key focus has been for us, first, showing that we have the capability and working and validating that with the actual end customers, including the chip companies, as well as the hyperscalers that I mentioned on the call. We have been engaged with the key players in this period as well.
Key for us is we see a massive opportunity using the same core technology in terms of what we call high power optical sources, using our laser-based solutions, as well as our silicon photonics technology that we have spent the past 10 years—the past decade—developing and really proving it out for automotive, industrial, and those applications. Now we're leveraging this to launch this new business, Optical Connectivity, for an integration of the solution into the hyperscaler and data center environment. Key focus for us is, we've seen the feedback really very encouraging because the validation is there. We have a ton of data on reliability in field testing. Importantly, we have a different approach.
I can get into this a little bit more later, the approach allows us to effectively provide and meet the very strict requirements, providing high optical power, low noise, reliability, power efficiency, and importantly, scalability to really meet what needs to be done. The key focus, what I'm trying to get to is The technology is proven. Obviously, we have to do some development to make sure, for example, with this customer and this joint development, that the solution and our high-power sources and photonic solutions integrate properly—some joint development integration work together on that. We're doing that as fast as possible because the hyperscaler wants to deploy this immediately. Right? With that, we go into the qualification. Once qualified, then this is going to go into scale.
The timing here—I mentioned on the call briefly—is in the next number of months. The next few months here, we're doing these activities, this joint integration, then we'll do the qualification. The goal and what the hyperscaler wants to do is, as early as second half, next year, 2027, to start the initial deployments, and then from there, scale up into production for 2028. That's the short answer. The potential, obviously, here is massive because, this is a very top three or four hyperscaler with millions and millions of units that they're deploying.
Colin Rusch — Analyst, Oppenheimer & Co
Can I just pick on that last comment there. Certainly, that volume of units is substantially more than you would've been able to produce in your other end markets. I'm just curious about potential impact on cost structure for you guys in terms of being able to reduce cost and pass that on or drive market share in some of your other applications, and the capacity of your partners to help you scale up to those volumes.
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Absolutely. I think this is a crucial point, because what we have done with the product here is focus on solutions at the chip level that are very cost-effective. As a matter of fact, when we look at what's out there, a lot of the focus has so far been on using and investing heavily in the laser sources to achieve high power. Without getting into too much of the technical details, to do that, there are certain trade-offs you have to make. The size of the dyes get bigger. We need to align multiple of these to get a number of wavelengths or a lot of power out. These things get larger. More alignment is needed. All this impacts, at the end of the day, the yields, which hits the cost, and as well as the repeatable scalability of the solution. Our approach is quite different.
That allows us, in a way, to have smaller size dyes and ability to actually provide the high power optical way without having to have as many, let's say, chips per the solution. We see that allows for much higher yield, much higher repeatability, and reliability as well. That's, I think, one of the key differentiations for us. Obviously, as we go into millions, the cost structure already set. We have existing foundries, and that's where our focus is next, is on the foundries, on the manufacturing partners to scale the volume. These foundries already are very capable. We have secured some of the capacity we already need to deploy in the market and are working to increase that given this massive pull and potential, with this new deal that we have.
That's going to be the focus. Costs already are at a very competitive way, given what I mentioned. We, of course, are going to be using that economies of scale to also then drive down the cost and really help with the next generation of sensing side as well for all of our other products as well.
Colin Rusch — Analyst, Oppenheimer & Co
Thanks so much, guys.
Matthew Paciulli — Analyst, Canaccord Genuity
Hi, guys. Congrats again on a great quarter and best of luck, Saurabh. Maybe just to continue on to Colin's question, could you just give us a little detail around what you expect the revenue model to be for the optical connectivity business? How should we think about it from an ASP perspective and some details around that would be appreciated.
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, Matt. Happy to answer that. At a high level, I would say I mentioned on the call, obviously we just signed this deal and we are very excited about it. The key focus here is, we see the potential for ramp-up, starting in 2027, the back half, second half of 2027, and then wrapping into 2028. I mentioned a little bit on the call, but at a high level, the way we see this, the volume forecast from the hyperscaler is quite massive, right. In a short answer, I think whatever supply that we can provide, I think we have an opportunity to sell that. That's what I would say. What that means is the expectation is this wrapping from the start into 2028 with minimum of millions of units, that go in production. We're talking about multiple millions of units.
That would result, translate into multiple hundreds of millions of dollars of revenue. Both of these figures are annually, multiple millions of units annually and multiple hundreds of millions of dollars annually, revenue-wise, opportunity-wise for us. That's why it's a massive opportunity. I think the key for us is being able to do that without a ton of significant development or reconfiguration, is where we see the ROI as being quite interesting for the company and why we're launching this new business. That also should give you a rough sense, obviously, on the ASPs, but that's where I would stop in terms of the numbers.
Matthew Paciulli — Analyst, Canaccord Genuity
Great. Thank you. Then maybe just to switch gears. You've made a lot of progress with Bendix. If you could just give us a little more color around what that program will look like, the content per vehicle, what the ASPs are, to the extent that you can share, would appreciate that.
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, sure. You're right. I think the team has been firing on multiple cylinders. I think automotive is progressing really well as well. Not only are we executing our existing programs—trucking, Daimler Truck, top-10 European passenger OEM—but also we are making additional traction with new opportunities. Bendix is the market leader for commercial vehicle ADAS technology, right? We have been working with them for some time. We have now advanced into a critical next phase, which effectively they have selected us for leveraging our 4D LiDAR to provide new functionality for Level 2+ ADAS on commercial vehicles. These functionalities specifically are aimed to enable new types of emergency brakings, like passenger emergency braking or nighttime driving and such. Just better functionality for the end customer.
Bendix is part of a large Tier 1, and it's a market leader in North America for ADAS solutions. There's about 300,000 Class 8 trucks, and with their Bendix Fusion system, which today so far has been vision and radar-based, they have a majority market share on that. A lot of their customers already use their product on their flagship vehicle models as standard. The other customers are the likes of Paccar, Navistar International and all of that, where they are shipping in volume already for many, many years. There, I think the opportunity for us is a significant one. It uses the same exact sensing product, Atlas, intended for trucking with Daimler. We're going to be using the same exact automated line in Jabil and just using that capacity and economy of scale to then ship that product in there.
From obviously content per vehicle, I would say, think of it as it's somewhere similar between, it's an ADAS product between a passenger to a commercial vehicle product. It's not going to be $ thousands, but it's also not very, very small. Part of that is because we're helping to augment the system and with the aim to actually replace not just add a new sensor, but also replace other modalities between radar and camera. That's kind of what we see. I think Bendix, just so you know, also is targeting to make this as a standard feature for the flagship OEMs in terms of the ADAS functionality for the next solution.
Joseph Moore — Analyst, Morgan Stanley
Yeah, thank you. Kind of wondering on this optical connectivity, you talk about starting a group around optical connectivity. How much resource do you want to put into this? Is this a major pivot for the company, do you think? I know you're going to continue to invest in your automotive and industrial businesses, just do you need to scale up R&D around this opportunity given the size of it?
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Hey, Joe. Yeah, this is Soroush. Happy to answer that. Obviously this is an important launch and investment for us. The key here is we are really reusing, as I mentioned, all the core components we have already developed in the silicon photonics and the high-power sources, also our manufacturing partners and capabilities we have already established with our foundries, with our CMs—folks that actually do the module assembly. We're going to be leveraging a lot of the work that's already been done and all the investments that have already been done. That means we don't need to invest a ton of capital and also importantly, a lot of development resources and time to go and make something completely from scratch. That's why I think we are able to move very quickly, right? That's number one.
Number two, I think from a resource standpoint and investment standpoint, of course, we are serious about this. We are going to be investing some, and we are hiring in this area. I think, obviously with Mina's leadership, as well as with Pradeep now being promoted, I have full confidence in the team to now go and execute on this and scale up this business. We're going to be making sure that we help that. With this team, we're going to have resources that are dedicated, so we also make sure that we have both keep the focus and priority on the existing programs and automotive with the top-10 passenger OEM, with Daimler, but also have separate basically resources that can work on this Optical Connectivity so that we don't distract or lose focus on the other side. Short answer, yes, we will invest.
It won't be massive amounts. We're going to take it serious.
Joseph Moore — Analyst, Morgan Stanley
Great. Thank you. Is there a difference in content between NPO and CPO as you migrate the technologies?
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, that's a good question, Joe. The way we think about this is we're forming this team and this group to generate product and solutions for Optical Connectivity in general, right? It's going to be a combination of optical sources, including optical laser sources, on-chip integrated sources, as well as over time, looking at additional capabilities with what's called ELSFPs, External Laser Small Form-factor Pluggables. I think that those have obviously massive opportunities, different levels of ASPs, and we're very excited about that. I think this is an area where both of these, for Near-Package Optics and Co-Packaged Optics, actually use the exact same core tech and source that we have developed and some of the silicon photonics, with some additional integration that we need to do on the back end of it. That's why we're able to use the same.
With this deal that we have, obviously intention initially is Near-Package Optics, but also working on other things for co-package and others as well.
Casey Ryan — Analyst, AmerX
Hi, gentlemen. First time for me, but very exciting series of updates. Can I just ask you, in the defense space, do you see that as being a market for just new and newly developed platforms, or do you see some sort of larger retrofit in current weapons platforms or vehicle platforms that could all be enabled with self-driving features?
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, happy to answer that. I think we see actually across the board both. We are working already with companies like Forterra that have ground vehicles on the ground. Some of those are retrofits, which is basically taking a vehicle and retrofit them with an autonomy kit. That autonomy kit includes three or four Aeva LiDARs for 360-degree coverage. I think there we're making a lot of good progress. Very excited about that. The vehicles are already being deployed to the military. They're already starting to be commissioned and used, which is, I think, pretty fast for the defense space, given we just announced this beginning of the year. That has resulted, because of some of the advantages we have—we talked about this—besides velocity sensing, long range, but also ability to see, operate in GPS-denied environments, but also not have any issues with night-vision goggles.
So, no interference with that compared to what they've been using so far or prior to us. We are seeing some additional traction in others. I think both on the ground, but also specific some of the applications in the aerial space that the team is working on. I think I'm also excited about that, which I think could result into more meaningful opportunities to piggyback on this. It's not going to be a one-off thing. We are seeing the demand from defense to also grow. As we are locking those down, we'll also be sharing that in the coming months.
Casey Ryan — Analyst, AmerX
Okay. Yeah, terrific. That's helpful color on that space. Then I just wanted to ask, I understand that Class 8 for trucking is where probably the biggest CapEx dollars are and the most road miles are spent. I'm just wondering, we are seeing some autonomy and progress in Class 6 and 7 and lower classes. Do you think Aeva has a place in those markets as well? I assume the answer is yes, but I'd be curious if that looks different than what Class 8 offers as an opportunity.
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Yeah, I think we have. Obviously, we're engaged in multiple programs and opportunities, not specific only to Class 8, different kinds of vehicles and different classes. The way that I would think about it is, it's a common platform. It's being used for whatever you need to do autonomy, and if you need to do autonomy in a bigger vehicle versus smaller vehicle. Once you have something that's qualified, especially with large players that set the industry standard, like Daimler Truck or others, I think that allows us to also get these other programs. The team is working with others. Some of them include for things around on-road, but also off-road or yard sale or things like that, yard environments. Those not all have the same class of vehicles. That's the way I would look at it.
Obviously, when we first got into autonomy, it was initially about long-range sensing and velocity. For us, as we have gotten the automotive capability and proven technology and product out, we are seeing more demand from others as well, which I think is just going to be tucked into the programs.
Richard Shannon — Analyst, Craig-Hallum
Great, guys. Thanks for letting me ask a couple questions. First off, just love to say, Saurabh, congratulations on your new job. We're going to miss you. It's been good working with you for the last five years. I jumped on the call late here, so apologies if I'm completely repeating a prior question here, but the JDA you signed with an optical connectivity is very interesting to me. I guess I'd love to understand, since you phrase this as a JDA, what needs to happen here in order to be fully qualified and to hit the time frames by which you're expecting to deploy in the second half of 2027? Also following on one of the questions I did hear, is this solution expected to be in ELSFP format or something more component in nature?
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Richard, happy to answer that. We talked a little bit about it, but I can expand a little bit on it. With the solution we have with optical connectivity and this deal is obviously a massive deal and opportunity for us. We're very excited about it. We've moved at lightning speed here. I think the key effort here really is we're going to be working together on integrating our core optical technology, including hyper optical sources and photonics technology, into this optical engine. That's going to be going to the hyperscaler. The capabilities really is around, obviously, optical data transfer, specifically for Near-Package Optics. That's the first applications where we see there's a lot of volume that's being allocated, I think that's why we see also near-term opportunity being quite interesting. The hyperscaler wants to go as fast as possible.
The effort here is working together with the chips and the integrated solution and the optical engine, qualifying that with the hyperscaler in the next number of months with the goal that by second half of next year, we have initial release and initial volumes going into 2028 for production ramp. That's what we are pushing for now. The team is already kicking the efforts up. I think importantly, we're going to be using the core technology and the chips that we have without making a ton of changes, and that's something that's important and crucial in our ability to move fast here. That's part of the JDA, is integrating that into that way to make that happen.
Richard Shannon — Analyst, Craig-Hallum
Okay, fair enough. A follow-on question on the topic of SICK here. Sounds like they had a first product launch here. Would love to get a sense of the overall contribution that you expect with them over time. I would assume that we're going to see more product launches from them in the future. If you could just characterize how we should kind of look for them over the medium to long term. Thank you.
Soroush Salehian — Co-Founder and CEO, Aeva Technologies
Happy to answer that. SICK obviously has been a strategic partner of ours in collaboration in the past number of years. We're very pleased to see that this is resulting into actual product launches and portfolios. SICK is already releasing the first product using our Eve sensors with the 1D, which is basically the standoff distance sensing, displacement sensing. The feedback so far has been very promising from the end customers. We do expect that over time to scale in the next 12 to 18 months, both additional volumes. Also, as you mentioned, we have been working on other products together, which will help to replace some of the other things. Like things that measure speed, for example, encoders, different types of speed measurement devices.
There are actually portfolio products that SICK has that we are also working to use, leveraging the same exact sensor, Eve suite, but in a different configuration, what we call 1V, which is measuring velocity. That's also the other piece that we're working together on, and we hope that that's going to be maybe one of the follow-ons as we are wrapping up and one thing to look out for. Separately from that, we are engaged also with others in the space that have shown a lot of interest. I think that is going to help to create, I think, a nice segment for us. As we are able to talk more about that, we will do so in the near term as well.
Source: Aeva Technologies, Inc. earnings call transcript (2026-08-05). Management commentary and analyst Q&A are reproduced as delivered; speaker roles as stated on the call.

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