Q4 Performance Reflects Volume Normalization
Mobileye Global Inc. (NASDAQ: MBLY) reported fourth-quarter 2025 revenue of $446 million, down 9% year over year. The decline reflected lower EyeQ system-on-chip volumes as customers normalized inventory levels exiting the year. Average system price increased modestly to $50.8, driven by a higher mix of SuperVision-related revenue.
GAAP gross margin fell to 45% from 49% a year earlier. The contraction was mainly due to fixed amortization costs on a lower revenue base and a less favorable EyeQ product mix. GAAP operating loss widened to $140 million, compared with a loss of $86 million in the prior-year quarter. Diluted GAAP EPS was a loss of $0.16 versus a loss of $0.09 in Q4 2024.
On a non-GAAP basis, adjusted EPS was $0.06, down from $0.13 a year earlier. Adjusted operating margin declined to 9% from 21%, reflecting both gross margin pressure and higher operating expenses.
Full-Year 2025 Shows Solid Growth and Cash Generation
For the full year, Mobileye reported revenue of $1.89 billion, representing 15% growth year over year. Growth was supported by expanding content per vehicle and continued adoption of advanced driver-assistance systems (ADAS) across global OEMs.
Despite reporting a GAAP net loss of $392 million for the year, results improved significantly from the prior year, which included a large goodwill impairment. On a non-GAAP basis, adjusted operating income reached $280 million, up from $193 million in 2024.
Cash generation was a key highlight. Operating cash flow totaled $602 million, up 51% year over year. The company ended 2025 with $1.8 billion in cash and cash equivalents, providing balance sheet flexibility to fund R&D and strategic initiatives.
Business Development and Diversification Efforts
Mobileye continued to strengthen its long-term revenue visibility. Its expected automotive revenue pipeline over the next eight years reached $24.5 billion, up 42% from the prior update. The increase reflects follow-on ADAS wins with existing customers, new OEM additions, and broader deployment within Volkswagen Group brands.
A notable development was a high-volume Surround ADAS program win with a major U.S. OEM. The program is expected to deploy the EyeQ6 High processor across multiple vehicle segments within a software-defined vehicle architecture. Combined expected volume from the company’s first two Surround ADAS customers totals approximately 19 million units.
The company is also expanding beyond automotive applications. Mobileye agreed to acquire Mentee Robotics, extending its technology platform into humanoid robotics. Management positions the move as part of a broader “Physical AI” strategy, leveraging shared capabilities in perception, planning, and safety-oriented AI systems.
Autonomous Driving and Industry Trends
In autonomous driving, Mobileye continues to advance its robotaxi roadmap with Volkswagen Autonomous Mobility. The partnership targets commercial robotaxi services across six cities by 2027, with longer-term ambitions for large-scale fleet deployment. Progress toward safety driver removal remains a key milestone expected to support commercialization.
Industry-wide, ADAS demand remains supported by regulatory pressure, safety ratings, and OEM focus on cost-efficient, single-ECU solutions. At the same time, near-term production volatility and inventory adjustments remain a constraint on quarterly comparisons.
Outlook
For 2026, Mobileye guided to revenue of $1.9 billion to $2.0 billion, implying flat to low-single-digit growth year over year. The outlook incorporates modest near-term growth but points to stronger momentum early in the year. Overall, results underscore short-term margin pressure alongside improving cash flow, expanding design wins, and a strategy increasingly diversified beyond traditional ADAS.
