Mobileye Global (NASDAQ: MBLY) stock dropped slightly in the premarket session on Thursday after it reported its fiscal third-quarter 2025 results.
The Intel (NASDAQ:INTC) spinoff autonomous firm reported a quarterly revenue growth of 4% year-on-year to $504.00 million, beating the analyst consensus estimate of $480.86 million, driven by substantial EyeQ volumes across its customer base (including China-based OEMs), steady ramp-ups of new ADAS programs, and robust volume for vehicles with the first-generation SuperVision system compared to the first half run-rate.
An 8% increase in EyeQ volumes, resulting from higher customer demand, partially offset by lower SuperVision volumes on a year-over-year basis.
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Adjusted EPS of 9 cents was in line with the analyst consensus estimate.
EyeQ and SuperVision revenue was $478 million, up from $457 million a year ago.
The Average System Price was $51.7, down from $53.3 in the prior year. The number of systems shipped rose to 9.2 million from 8.6 million a year ago.
Margins
Gross margin fell by 55 bps to 48%. Adjusted gross margin declined by 124 bps to 67% due to a modest reduction in EyeQ ASP, mainly due to higher volumes in China, which carry lower ASP, and a higher EyeQ-related cost per unit given a different mix of EyeQ products sold.
The adjusted operating margin was 15%, down from 16% a year ago.
As of September 27, Mobileye held $1.75 billion in cash and equivalents and generated a quarterly operating cash flow of $167 million.
Mobileye CEO Amnon Shashua stated that continued stability in automotive production gives the company the confidence to raise its full-year outlook, removing the cautious approach it had previously adopted due to macroeconomic uncertainty.
Looking ahead, Shashua sees tremendous opportunities as Mobileye executes its strategy. He highlighted the company’s focus on launching its advanced EyeQ6 High-based products on time, deepening engagement with strategic customers, and preparing to commercialize its driverless robotaxi service beginning in 2026.
Outlook
Mobileye raised fiscal 2025 revenue to $1.845 billion-$1.885 billion (up from prior guidance of $1.765 billion- $1.885 billion) versus the $1.847 billion analyst consensus estimate. It now expects adjusted operating income of $263 million to $286 million (up from its prior forecast of $210 million to $286 million).
Price Action: Mobileye stock is down 0.98% to $14.17 in premarket trading at the last check on Thursday.
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