20-F: Innoviz Technologies Reports Strong Revenue Growth, New LiDAR Products

Innoviz Technologies announced a significant increase in revenue and gross profit for 2025, driven by NRE sales and new product launches, while continuing to reduce net losses.

Summary

• Revenues increased by 127% to $55.1 million in 2025, up from $24.3 million in 2024, primarily due to increased sales of Non-Recurring Engineering (NRE) services and LiDAR sensors.
• Gross profit turned positive, reaching $12.9 million (23% gross margin) in 2025, compared to a gross loss of $1.2 million (-5% gross margin) in 2024.
• Net loss decreased to $67.8 million in 2025 from $94.8 million in 2024, reflecting improved operational efficiency.
• Research and development expenses decreased by 23% to $56.5 million in 2025, mainly due to decreased payroll and stock-based compensation.
• Launched InnovizThree, a third-generation LiDAR sensor designed for slimmer dimensions, lower power consumption, and reduced cost, first demonstrated at CES in January 2026.
• Announced the integration of InnovizSMARTer LiDAR with NVIDIA Jetson Orin Nano for real-time 3D perception processing and data compression at the sensor level.
• Daimler Truck North America LLC selected Innoviz as a future series production supplier for SAE Level 4 autonomous Class 8 semi-trucks in September 2025.
• Entered into a Master Manufacture and Supply Agreement with Fabrinet in March 2025 for high-volume manufacturing of InnovizTwo LiDARs at Fabrinet's facility in Thailand.
• Issued and sold 9,252,639 ordinary shares under an At-The-Market (ATM) program for net proceeds of approximately $13.3 million during 2025.
• Issued 28,776,978 ordinary shares and 23,021,582 warrants in a registered direct offering in February 2025, generating net proceeds of approximately $37.3 million.
• The company regained compliance with Nasdaq's minimum bid price requirement in July 2025, after previously receiving a delisting notice in March 2025.
• A putative class action lawsuit against former Collective Growth Corporation officers and directors, related to events preceding Innoviz's business combination, was dismissed with prejudice in November 2025, but the plaintiff filed a notice of appeal in January 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively due to significant revenue growth, a return to gross profitability, and strategic product launches and partnerships, despite continued net losses and the ongoing PFIC uncertainty.

Positives

• Revenue increased significantly by 127% to $55.1 million in 2025, indicating strong market traction and sales growth.
• Gross profit turned positive to $12.9 million (23% margin) in 2025 from a loss in 2024, demonstrating improved cost efficiency and product profitability.
• Net loss decreased by 28.5% to $67.8 million in 2025, showing progress towards profitability.
• Successful launch of InnovizThree, a third-generation LiDAR sensor with improved performance, reduced cost, and enhanced integration flexibility.
• Strategic design win with Daimler Truck North America LLC for SAE Level 4 autonomous Class 8 semi-trucks validates the company's technology for commercial automotive applications.
• Expansion of manufacturing capacity through a new agreement with Fabrinet for high-volume production of InnovizTwo LiDARs in Thailand.
• Integration of InnovizSMARTer LiDAR with NVIDIA Jetson Orin Nano enhances edge computing capabilities for real-time 3D perception.
• Regained compliance with Nasdaq's minimum bid price requirement, mitigating immediate delisting concerns.
• Reduction in Research and Development expenses by 23% while continuing to innovate, suggesting more efficient R&D spending.

Negatives

• Despite significant revenue growth and improved gross profit, the company continues to report a substantial net loss of $67.8 million in 2025.
• Financial income, net, decreased significantly by 99% to $0.1 million in 2025 from $7.3 million in 2024, primarily due to foreign currency exchange differences and decreased bank deposit interest income.
• The company believes it was a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes for its taxable years ending December 31, 2023 and 2024, and its PFIC status for 2026 and future years is uncertain, which can have adverse tax consequences for U.S. Holders.
• The company remains substantially dependent on a limited number of customers (Customer A accounted for 81% of revenues in 2025), posing a risk if these programs are terminated or delayed.
• The ongoing lawsuit against former Collective Growth directors, despite initial dismissal, is subject to appeal, potentially incurring further costs and management distraction.
• Headcount reductions in both 2024 (13%) and 2025 (9%) indicate ongoing operational optimization efforts, which could impact employee morale or capacity.

Risks

• Limited operating history and evolving business model make evaluating future prospects difficult and increase investment risk.
• Continued pricing pressures from automotive OEMs and their cost reduction initiatives may result in lower than anticipated margins or incremental losses.
• Failure to successfully develop non-automotive markets could limit revenue diversification and affect revenue growth.
• High price or low yield in unique component design and development may affect competitive pricing or lead to losses.
• Significant risks associated with being a direct supplier to automotive customers, including additional operating costs, increased liabilities, and indemnification responsibilities.
• Substantial investment in research and development may reduce profitability or increase losses and may not generate revenue.
• Need to obtain additional funds in the future, which may not be available on favorable terms or at all, potentially affecting business plan execution.
• Significant delays in the design, production, and launch of LiDAR products could harm business, prospects, financial condition, and operating results.
• Substantial dependence on a limited number of customers, with termination or alteration of programs by major customers materially and adversely affecting the business.
• Challenges and complexities in designing and manufacturing LiDARs on a mass-production scale to meet stringent quality requirements.
• Significant challenges in transitioning to and ramping up mass production with contract manufacturers, potentially delaying commercialization and increasing costs.
• Risk of cancellation or postponement of contracts, or failure to meet customer requirements for Start of Production (SOP) or deployment, due to long design win to implementation cycles.
• If market adoption of LiDAR for autonomous vehicles does not continue to develop or develops more slowly than expected, or if diversification into non-automotive markets fails, the business will be adversely affected.
• Competition from large companies with substantial negotiating power, exacting product standards, and potentially competitive internal solutions.
• Strategic initiatives to grow the business may prove more costly than anticipated and may not generate sufficient revenue to achieve profitability.
• Rapid technological change in the market requires continuous product development and innovation, and failure to do so could adversely affect market adoption.
• Entry into non-automotive applications requires addressing distinct regulatory and operational considerations that may delay commercialization.
• Product liability, warranty, and other claims if vehicles deploying LiDAR technology are involved in accidents or fail to perform as expected, potentially damaging reputation and increasing costs.
• Termination or non-materialization of strategic, development, and supply arrangements into long-term contract partnerships.
• Operating in a highly competitive market against established competitors and new entrants with substantially greater resources.
• Reliance on third-party suppliers and susceptibility to supply shortages, long lead times, and supply changes, which could disrupt the supply chain.
• Adverse conditions in the automotive industry or global economy could negatively affect results of operations.
• Difficulties in expanding operations and integrating future acquisitions could adversely affect business and share price.
• Failure to maintain compliance with Nasdaq's continued listing requirements could result in delisting of ordinary shares.
• Volatility in the market price and trading volume of ordinary shares and warrants.
• Fluctuations in quarterly and annual results of operations, which could cause share price to fluctuate or decline.
• Exposure to securities litigation, class action, and derivative lawsuits, resulting in substantial costs and diversion of management attention.
• Changes in tax laws or exposure to additional income tax liabilities could affect future profitability.
• Changes in product mix may impact financial performance if sales include more lower gross margin products.
• Dependence on the services of Omer Keilaf, the Founder, CEO, and Director, with his loss adversely affecting the business.
• Ability to attract and retain highly skilled personnel and senior management is critical for success.
• Currency exchange rate fluctuations, particularly between USD and ILS, affect results of operations.
• Unforeseen eye safety issues related to LiDAR lasers could result in injuries, legal claims, and reputational damage.
• Business is subject to risks from natural catastrophic events, global pandemics, and man-made problems like network security breaches and war.
• Inability to adequately protect or enforce intellectual property rights or prevent unauthorized copying/reverse engineering.
• Third-party claims of intellectual property infringement or misappropriation could result in costly litigation or licenses.
• Use of third-party artificial intelligence (AI) tools presents operational, data security, and intellectual property risks.
• Subject to numerous laws and governmental regulations concerning manufacturing, use, distribution, and sale of products, including automotive safety, data privacy, and export controls.
• Political, economic, security, and other conditions in Israel could materially and adversely affect the business.
• Potential claims for remuneration or royalties for assigned service invention rights by employees.
• Tax benefits available to the company require meeting various conditions and may be terminated or reduced.
• Difficulty in enforcing U.S. judgments against the company or its non-U.S. officers and directors in Israel.
• Rights and responsibilities of shareholders are governed by Israeli law, which may differ from U.S. corporations.
• U.S. holders of ordinary shares and/or warrants may suffer adverse tax consequences if the company is treated as a passive foreign investment company (PFIC).

Future Outlook

Innoviz expects continued substantial investment in R&D and commercialization efforts, anticipating significant losses in future periods before incremental revenues balance them. The company aims to fund operations through sales, registered direct offerings, and the ATM program, expecting current funds to be sufficient for at least the next 12 months. Future growth depends on maintaining technological leadership, expanding OEM partnerships, developing a comprehensive automotive portfolio, and penetrating non-automotive markets, particularly in Level 2+, Level 3, and Level 4 autonomous programs planned for 2028 and beyond. The company also plans to continue investing in software capabilities, including AI algorithms and edge-processing ECUs.

Management Comments

• Our business is now substantially dependent on our design wins with Cariad SE for the Volkswagen brands, as well as programs through our partnership with Mobileye Vision Technologies Ltd. and our recently announced program with Daimler Truck North America LLC.
• We are currently expanding our third-party manufacturing capacity through contract manufacturers to meet anticipated demand.
• InnovizThree is intended to enable seamless integration behind the windshield or on the rooftop, providing OEMs with extended design flexibility.
• High-resolution LiDAR has emerged as the most reliable methods for digitizing the physical world into accurate, real-time 3D representations that can drive decision-making.
• We believe we are uniquely positioned at this inflection point, providing automotive-grade high-resolution LiDAR systems designed to enable Physical AI to scale safely, securely, and globally.
• We believe LiDAR is essential to achieving this smart redundancy alongside cameras and radar.
• Each generation of our products has delivered meaningful cost reductions and performance improvements, which we believe reduces technical and execution risk for OEM partners.
• We believe our existing partnerships and adherence to industry-leading safety and manufacturing standards can be leveraged to penetrate additional OEMs.
• We expect those funds to be sufficient to continue to execute our business plan for at least the next 12 months.

Industry Context

StockSavvy.ai notes that Innoviz Technologies is strategically positioning itself at the forefront of the 'Physical AI' revolution, where high-resolution LiDAR is becoming critical for autonomous systems. The company's focus on automotive-grade solutions and expansion into non-automotive markets like smart infrastructure and robotics aligns with broader industry trends emphasizing safety, reliability, and diversified application of advanced sensing technologies. The design wins with major automotive players like Volkswagen, Mobileye, and Daimler Truck demonstrate strong validation of its technology in a highly competitive landscape, where rivals like Valeo SA, Hesai, Aeva, Robosense, Seyond, and Ouster are also vying for market share. The emphasis on cost reduction and compact form factors with InnovizThree addresses key integration challenges for OEMs, particularly in electric vehicles, and positions Innoviz favorably against competitors using more expensive 1550nm systems or less mature FMCW architectures. The company's comprehensive certifications (ISO26262, IATF 16949, etc.) provide a significant competitive advantage in an industry with stringent quality requirements.

Comparison to Industry Standards

• Innoviz's ~905nm Time-of-Flight (ToF) architecture is presented as a cost-efficient and scalable alternative to ~1550nm systems, which generally require more expensive laser sources and InGaAs detectors, consume more power, and have larger form factors (e.g., some systems from Luminar Technologies, which uses 1550nm).
• The ToF architecture is also positioned as having meaningful advantages over Frequency-Modulated Continuous-Wave (FMCW) alternatives, which are described as having higher system complexity and less maturity for automotive-grade, high-volume deployment (e.g., some emerging FMCW LiDAR companies like Aeva).
• Innoviz's achievement of comprehensive automotive-grade certifications (ISO26262, IATF 16949, ISO/SAE 21434, ASPICE CL1, ISO/IEC 17025:2017, and ISO/IEC 27001:2022) provides a significant advantage over many newer or smaller competitors that may require years to obtain such validations, placing it on par with established Tier-1 suppliers like Valeo SA in terms of quality management.
• The design wins with BMW, Volkswagen (Cariad SE), Mobileye, and Daimler Truck North America LLC demonstrate product maturity and automotive-grade readiness, positioning Innoviz favorably against competitors without comparable OEM validation for mass-production Level 2+, Level 3, and Level 4 programs.
• The company's proprietary signal processing ASIC is claimed to achieve industry-leading point-cloud quality, delivering real-time, low-latency processing with enhanced signal-to-noise ratio and lower power consumption compared to FPGA-based designs, which are often used by other LiDAR developers.
• Innoviz's LiDAR products are designed to enable higher-performance ADAS at price points that can displace current camera and radar-based solutions, which have achieved substantial market share (e.g., Mobileye's camera-only solutions or Bosch's radar systems).
• The InnovizSMART platform's automotive-grade performance, PoE support, long-range detection, blockage resilience, and uniform resolution are presented as competitive advantages in non-automotive markets, where customers increasingly demand reliability and safety validation, similar to industrial-grade sensors from companies like Velodyne or Ouster.

Management Changes

Corporate Governance

Legal Proceedings

• A putative class action lawsuit was filed on March 28, 2024, in the Delaware Court of Chancery against several former officers and directors of Collective Growth Corporation, alleging materially incomplete and misleading disclosures related to Innoviz's Business Combination in April 2021.
• The lawsuit asserts claims for breach of fiduciary duty and unjust enrichment.
• On November 19, 2025, the court granted the Defendants' motion to dismiss with prejudice.
• The plaintiff filed a notice of appeal on November 19, 2025, and briefing on the appeal was completed on February 27, 2026.
• The company, with legal counsel, is unable to estimate the likelihood of an outcome, favorable or unfavorable, and has not recorded an estimated liability in the financial statements.

Related Party Transactions

• Registration Rights Agreement (December 2020): Innoviz, certain equityholders of Innoviz and Collective Growth, Perception, and Antara entered into an agreement for shelf registration of registrable securities. Innoviz agreed to pay certain expenses and indemnify shareholders against certain liabilities.
• Put Option Agreement (December 2020): Innoviz and Antara entered into an agreement for Antara to subscribe for $70 million in Innoviz ordinary shares in the PIPE. In consideration, Innoviz issued 3,784,753 warrants and 3,002,674 ordinary shares to an Antara affiliate, with an agreement to issue additional shares if earnout shares are issued to Perception Capital Partners, LLC.
• Agreements with Directors and Officers: Includes grants of restricted share units, performance share units, and options to purchase ordinary shares to executive officers, as well as exculpation, indemnification, and insurance agreements.
• Rights of Appointment: Perception Capital Partners, LLC has the right to appoint one director to Innoviz's board as long as it beneficially holds at least 50% of the ordinary shares it owned at the Business Combination closing date. Mr. Sheridan was appointed as the Perception Director.

Stakeholder Impact

• Shareholders: Potential for increased value due to strong revenue growth, improved gross margins, and strategic partnerships. However, continued net losses, the uncertainty of PFIC status for U.S. holders, and potential dilution from capital raises (ATM program, registered direct offering) could impact investment returns. The ongoing legal proceeding, though dismissed, presents a lingering risk.
• Employees: Headcount reductions in 2024 and 2025 indicate operational optimization, which could affect morale, but the company continues to invest in R&D and attract skilled personnel. The Israeli-based operations are subject to geopolitical risks in the region.
• Customers (OEMs and Tier-1 partners): Benefit from Innoviz's expanding product portfolio (InnovizThree, InnovizSMARTer), increased manufacturing capacity through Fabrinet, and validated automotive-grade technology. The direct supplier model aims to improve technical engagement and pricing.
• Suppliers: The company's reliance on third-party suppliers, including limited or single-source providers, exposes them to supply chain disruptions, shortages, and price fluctuations, which could impact their operations.
• Creditors: Improved financial performance with reduced net losses and a positive gross profit could enhance the company's creditworthiness, though continued reliance on capital raises suggests ongoing funding needs.

Next Steps

• Continue to invest substantially in research and development activities to maintain technological leadership and introduce new products.
• Expand OEM partnerships, particularly for mass-production Level 2+, Level 3, and Level 4 programs planned for 2028 and beyond, with design decisions expected in 2026.
• Develop a comprehensive automotive portfolio, including InnovizTwo Long-Range, InnovizTwo Shortto Mid-Range, and InnovizThree, to address various market needs.
• Expand into non-automotive markets with InnovizSMART to leverage shorter sales cycles and higher per-unit price points for near-term revenue.
• Penetrate the Level 2+ ADAS market with InnovizTwo, offering upgradability to Level 3 via software updates.
• Continue developing the software stack, including improved AI algorithms and an edge-processing ECU for point cloud processing.
• Monitor and respond to the appeal in the Sheadrick Richards lawsuit.
• Manage the ATM program to secure additional funding as needed, subject to market conditions and trading windows.
• Continue to monitor and adapt to evolving regulatory frameworks for autonomous vehicles and non-automotive applications globally.
• Maintain and renew ISO/IEC 27001:2022 certification and complete TISAX security assessments.

Key Dates

Recommendation

Innoviz Technologies demonstrates significant operational progress with substantial revenue growth and a positive shift in gross profit, indicating strong market acceptance for its LiDAR solutions and strategic partnerships with major automotive players. The launch of new, cost-efficient products like InnovizThree and expanded manufacturing capabilities are positive indicators for future scalability. However, the company continues to incur significant net losses, and the uncertainty surrounding its Passive Foreign Investment Company (PFIC) status for U.S. investors presents a notable tax risk. While the recent capital raises provide liquidity, the stock's volatility and dependence on a limited customer base warrant caution. A 'hold' recommendation reflects the promising technological advancements and market traction, balanced against the ongoing financial losses, geopolitical risks, and the need for sustained execution to achieve profitability.

Keywords

LiDAR, Autonomous Driving, ADAS, InnovizThree, InnovizTwo, InnovizSMART, Automotive Sensors, Physical AI, Daimler Truck, Volkswagen, Mobileye, Fabrinet, SEC Filing, 20-F, Financial Results, Technology, Israel, OEM, Tier-1 Supplier