Mobileye Global Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 27, 2026. Mobileye Global Inc. is a leader in advanced driver assistance systems (ADAS) and autonomous driving technologies. The company operates primarily through two segments: Mobileye (ADAS/Autonomous Driving) and Moovit (Mobility-as-a-Service, reported as "Other"). During the period, the company completed the acquisition of Mentee Robotics, a humanoid robotics firm, and announced plans for a vertically integrated robotaxi business. Operations in Israel continue amidst ongoing regional geopolitical conflicts, with approximately 2.4% of employees on reserve duty as of mid-July 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Revenue | $508 million | $506 million | $1,066 million | $944 million |
| Gross Profit | $235 million | $252 million | $510 million | $459 million |
| Gross Margin | 46% | 50% | 48% | 49% |
| Operating Income (Loss) | $(30) million | $(74) million | $(3,926) million | $(191) million |
| Net Income (Loss) | $(21) million | $(67) million | $(3,839) million | $(169) million |
| EPS (Basic & Diluted) | $(0.03) | $(0.08) | $(4.70) | $(0.21) |
| Cash and Equivalents | $1,311 million (as of June 27, 2026) | |||
| Operating Cash Flow (YTD) | $210 million (2026) vs $322 million (2025) |
Material Changes vs. Prior Period
- Goodwill Impairment: The YTD 2026 results include a massive non-cash goodwill impairment charge of $3,788 million recorded in Q1 2026. This was triggered by a 35% decline in share price and increased geopolitical risk premiums affecting the fair value of the "Mobileye" reporting unit. There was no impairment in the prior year period.
- Revenue Growth: YTD revenue increased 13% to $1.066 billion, driven by a 10% increase in EyeQ SoC sales and a 181% surge in SuperVision revenue. Q2 revenue was flat year-over-year ($508M vs $506M).
- Acquisition of Mentee Robotics: Completed on February 3, 2026, for a total consideration of approximately $900 million (cash and stock). This added $498 million in goodwill and $128 million in intangible assets.
- R&D Incentive: A new Israeli "R&D Law" enacted in March 2026 provided a $110 million refundable tax credit/incentive, recognized as a reduction to R&D expenses for the six months ended June 27, 2026.
- Share Repurchases: The company repurchased 2.5 million shares for $23.5 million in Q2 2026 under a new $250 million program authorized in April 2026.
Guidance, Outlook, and Risks
- Outlook: Management expects capital expenditures to increase in 2026 due to next-generation product development. The company anticipates gross margins may decrease as a percentage of revenue due to higher hardware content in full system solutions (e.g., SuperVision), though gross profit per unit is expected to rise.
- Geopolitical Risks: Ongoing conflicts in the Middle East (Israel, Iran, Lebanon) pose risks to operations, supply chains, and employee availability. The company notes that hostilities may escalate, though operations have not been materially affected to date.
- Supply Chain: Increased demand for AI components has led to shortages and price increases for EyeQ SoCs and ECUs. The company relies on single or limited suppliers (STMicroelectronics, Quanta Computer) and is diversifying with TSMC.
- Legal Proceedings: A U.S. class action lawsuit regarding inventory build-up was dismissed and the appeal was denied by the Second Circuit in December 2025. A patent infringement suit by Facet Technology Corp. remains stayed pending PTAB appeals.
- Non-GAAP Performance: Excluding the goodwill impairment, amortization, and share-based compensation, Adjusted Operating Income for the six months ended June 27, 2026, was $250 million (23% margin), compared to $165 million (17% margin) in the prior year period.
Investor Verification Checklist
- Verify the sustainability of the $110 million R&D tax incentive and its impact on future R&D expense recognition.
- Assess the sensitivity of the goodwill impairment to further declines in market capitalization or increases in geopolitical risk premiums.
- Monitor supply chain constraints for EyeQ SoCs and ECUs, specifically the impact of AI industry demand on lead times and pricing.
- Review the integration progress and commercial viability of the Mentee Robotics acquisition and the planned robotaxi business.
- Track the mix shift toward lower-margin full system solutions (SuperVision) versus higher-margin SoC-only sales.