Business Context and Reporting Period
Company: Aeva Technologies, Inc. (AEVA)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Business Overview: Aeva designs and manufactures 4D LiDAR-on-chip solutions using proprietary Frequency Modulated Continuous Wave (FMCW) technology. The company targets automotive (ADAS/autonomous driving), industrial automation, smart infrastructure, and security markets. As of December 31, 2025, the company had 239 full-time employees and operates as a single operating segment.
Key Financial Metrics
| Metric | 2025 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Revenue | $18,079 | $9,065 |
| Cost of Revenue | $18,739 | $12,855 |
| Gross Loss | $(660) | $(3,790) |
| Operating Loss | $(127,597) | $(158,372) |
| Net Loss | $(145,428) | $(152,261) |
| Cash and Cash Equivalents | $72,291 | $28,864 |
| Marketable Securities | $49,608 | $83,143 |
| Total Liquidity (Cash + Securities) | $121,900 | $112,007 |
| Convertible Notes (Long-term Debt) | $96,693 | $0 |
| Warrant Liabilities | $29,711 | $8,258 |
Key Ratios & Margins:
- Gross Margin: -3.7% (2025) vs -41.8% (2024)
- Net Loss Per Share (Basic & Diluted): $(2.55) (2025) vs $(2.85) (2024)
Material Changes vs. Prior Period
- Revenue Growth: Revenue nearly doubled, increasing 99% to $18.1 million, driven by higher unit sales and non-recurring engineering (NRE) services.
- Operating Expenses: Total operating expenses decreased 18% to $126.9 million. Research and Development (R&D) expenses dropped 17% to $85.4 million due to reductions in payroll, stock-based compensation, and material costs.
- One-Time Items: The 2024 period included a $11.5 million litigation settlement expense related to Delaware Stockholder Litigation, which was absent in 2025. The 2025 period included a $21.5 million non-cash loss from the change in fair value of warrant liabilities.
- Debt Issuance: In November 2025, the company issued $100 million in 4.375% Convertible Senior Notes due 2032, resulting in a new long-term debt balance of approximately $96.7 million (net of issuance costs).
- Strategic Partnership: In August 2025, the company closed a $32.5 million private placement with LG Innotek Co., Ltd. (LGIT) and entered a Joint Development Agreement (JDA). Accounting treatment resulted in a $3.8 million provision for anticipated losses on the JDA contract.
Guidance, Outlook, and Risks
Management Commentary & Outlook:
- The company expects to continue incurring operating losses until broad-based commercial deliveries begin, which are not expected to occur in 2026.
- Liquidity is supported by $121.9 million in cash/securities and a $125 million Standby Equity Purchase Agreement (Facility Agreement) with Sylebra, which remains available through November 2026.
- In December 2025, Aeva was selected by a top European passenger OEM as its exclusive LiDAR supplier for a global series-production vehicle platform to enable Level 3 automated driving. However, no definitive volume production agreement has been signed, and revenue from this win is not guaranteed.
Key Risks & Contingencies:
- Commercialization Risk: The company has a history of losses and has primarily sold prototypes and NRE services. There is no assurance that development programs will be commercialized or that volume orders will be received.
- Supply Chain & Manufacturing: The company is transitioning to an outsourced manufacturing model, which introduces risks regarding quality control, supply chain disruptions, and reliance on third-party manufacturers.
- Market Adoption: Adoption of LiDAR technology, particularly in automotive, remains uncertain and faces competition from alternative sensing modalities (cameras, radar).
- Legal: While the Delaware Stockholder Litigation was settled for $14.0 million (paid in full by year-end), the company remains subject to potential intellectual property claims and product liability risks.
Investor Verification Checklist
- Commercialization Timeline: Verify the status of the European OEM design win and the timeline for converting it into a definitive volume production agreement.
- Liquidity Runway: Confirm the company's burn rate and the sufficiency of the $121.9 million cash balance plus the $125 million equity facility to fund operations through 2026 and beyond.
- LGIT Partnership: Review the terms of the Joint Development Agreement with LGIT and the accounting impact of the $3.8 million loss provision on future revenue recognition.
- Debt Obligations: Assess the impact of the new $100 million convertible notes, specifically the interest payment terms (cash vs. stock) and potential dilution upon conversion.
- Customer Concentration: Note that the top three customers accounted for 64% of revenue in 2025, creating significant concentration risk.