Microvision (NASDAQ:MVIS) executives used the company’s fourth-quarter and full-year 2025 earnings call to outline what Chief Executive Officer Glen DeVos described as a shift in the lidar industry from a technology-led “Lidar 1.0” era to a value- and economics-driven “Lidar 2.0” market. Management argued that success in the next phase will hinge on scalable product portfolios, software-driven cost reduction, disciplined design-to-cost execution, and automotive-grade delivery, rather than standalone hardware specifications.
Management frames “Lidar 2.0” strategy
DeVos said “Lidar 1.0” was characterized by hardware-first competition and assumptions that volume would eventually solve pricing and adoption challenges, a dynamic he said contributed to fragile revenue models, high burn rates, and consolidation. In contrast, he positioned “Lidar 2.0” as centered on delivering customer value through deployable solutions, scalable economics, and software-enabled capabilities.
Portfolio expanded with acquisitions; focus on three verticals
DeVos said that through the acquisitions of Luminar and Scantinel, MicroVision now has what he called a more complete lidar portfolio across wavelengths and architectures, with the ability to serve automotive, industrial, and security and defense markets. He described the company’s offerings as spanning short-range and long-range sensing, time-of-flight and FMCW approaches, and both solid-state and scanning solutions.
Among product highlights discussed on the call:
- MOVIA short-range solid-state sensors, including MOVIA S, which DeVos said is seeing “anticipated interest” since its launch at IAA last September and is in multiple customer trials for industrial and automotive applications.
- Iris and Halo long-range sensors acquired from Luminar, described as suited for high-speed use cases and positioned for automotive as well as security and defense.
- 1550-nanometer FMCW sensor acquired from Scantinel, described as ultra-long-range with initial applications in automotive and security and defense.
- Software products including MOSAIK and Sentinel, which management said provide end-to-end capability “from silicon to point cloud to perception” and can be integrated through an open software framework.
DeVos also emphasized security and defense as an expanding priority. He said the company completed a proof-of-concept phase for drone and ground-based autonomy platforms in the fourth quarter of last year and is now in a business development and customer engagement phase, working with its defense advisory board. He pointed to ongoing shipments of MOVIA L to a European customer as a validation of demand for solid-state sensing in those applications, and said MicroVision plans to publicly showcase its capabilities in coming months.
Commercial traction and operational consolidation
Management said the Luminar acquisition was intended to accelerate revenue by bringing active commercial programs and customer relationships. DeVos said he has been meeting personally with Iris and Halo customers and that MicroVision shipped Iris units within the first month after the acquisition as contracts and purchase orders were transferred and production schedules reestablished. He said the acquisition added approximately 30 customer relationships and expanded MicroVision’s ability to cross-sell products across legacy MicroVision and acquired customer bases.
DeVos and Interim Chief Financial Officer Stephen Hrynewich also discussed operational changes following the acquisitions. DeVos said MicroVision has decided to consolidate its Redmond engineering, manufacturing, and supply chain operations into Orlando, which will serve as the company’s U.S.-based manufacturing site for its full product lineup and be particularly important for security and defense requirements. On the Q&A, DeVos said MicroVision “really only acquired two locations” from Luminar: Orlando and a Colorado site for ASIC design (the Black Forest Engineering team). He said the company did not assume responsibility for Luminar facilities in other countries, though personnel from some regions were brought over.
Financial results: revenue declined; impairment charges recorded
Hrynewich reported fourth-quarter revenue of $0.2 million, primarily from industrial hardware sales, compared with $1.7 million in the same period of 2024. Full-year 2025 revenue was $1.2 million versus $4.7 million in 2024. He attributed the decline to a prior “last time buy” related to deliveries of legacy sensors under a contract with an agricultural equipment customer.
Fourth-quarter 2025 operating expenses were $25.3 million, including non-cash charges of $13.4 million related to asset impairment and $1.5 million of depreciation and amortization, offset by a $1.5 million net credit in share-based compensation tied primarily to forfeited performance stock units following an executive departure. On an adjusted basis excluding those non-cash items, cash-based operating expenses were $11.9 million. Hrynewich said the increase versus the prior quarter was primarily due to adding an aerial systems team to strengthen competitiveness in security and defense.
For the full year, operating expenses were $65.5 million, including $13.4 million of asset impairment, $5.8 million of depreciation and amortization, and $0.7 million of share-based compensation. Cash-based operating expenses were $45.5 million. Management said operating expenses declined $14.4 million, or 24%, from 2024, driven by reduced purchased services and prior headcount reductions.
Cash used in operations was $15.4 million in the fourth quarter, compared to $15.1 million in Q4 2024. For full-year 2025, cash used in operations was $58.7 million versus $68.5 million in 2024, which management attributed primarily to lower operating expenses. Capital expenditures were $0.2 million in Q4 and $0.7 million for the full year, with the year-over-year increase tied to tooling purchases for MOVIA S production targeted to begin in early Q4.
Hrynewich said the company recorded $29.4 million in non-cash asset impairment and adverse purchase commitment charges in Q4, including $16 million in cost of revenue related to inventory and commitments for MOVIA L, and $13.4 million in operating expenses primarily tied to perception software and equipment for its long-range MAVIN sensor. He said the write-downs were based on several factors, including progress on next-generation short-range solutions and market readiness of the long-range solution the company recently acquired.
Related to the Redmond-to-Orlando consolidation, Hrynewich said MicroVision anticipates evaluating impacts to 2026 financial statements and expects $8 million to $12 million in asset impairment charges tied to the Redmond office and operating lease, plus $1 million to $2 million in people-related restructuring charges.
2026 outlook: $10 million-$15 million revenue; margins expected to be positive
DeVos provided calendar 2026 guidance calling for revenue of $10 million to $15 million, reflecting a combination of MicroVision’s prior outlook and “continuing Luminar revenue streams.” He said the range reflects the company’s ability to retain and convert Luminar contracts into ongoing MicroVision revenue.
He guided to cash used in operations plus capital expenditures of $65 million to $70 million for 2026, which he said would be a modest increase from 2025 due primarily to the Luminar and Scantinel acquisitions and the addition of the Virginia-based aerial systems team.
During Q&A, Hrynewich said the revenue mix is expected to be “mostly in the industrial space,” with the balance from automotive. On margins, he said the company “definitely should be positive,” while noting MicroVision was still working through cost evaluation tied to purchase price accounting.
Management also discussed longer-term market timing. Hrynewich said automotive revenue is expected to be more meaningful later in the decade, while industrial and security and defense are expected to help bridge nearer-term commercialization. DeVos said current automotive RFIs and RFQs are targeted for “2029, 2030 start of ramping,” with scale volumes more meaningful in the “2030, 2031 timeframe.” He also pointed to MOVIA S as a key industrial growth driver starting with the planned launch in the back quarter of 2026 and continuing into 2027, while describing security and defense as nascent but potentially attractive due to higher average selling prices.
On liquidity, Hrynewich said MicroVision ended Q4 with $74.8 million in cash, cash equivalents, and investment securities, and had $43 million available under its at-the-market facility. He also said that after year-end the company issued two new senior secured convertible notes totaling $43 million in principal, using proceeds to repay $19.5 million in outstanding principal and interest on an existing note, with remaining funds available for general operations.
About Microvision (NASDAQ:MVIS)
MicroVision, Inc (NASDAQ: MVIS) is a technology company specializing in laser scanning and sensing solutions. Founded in 1993 and headquartered in Redmond, Washington, MicroVision develops its proprietary PicoP® scanning technology, which integrates miniature lasers and microelectromechanical systems (MEMS) mirrors to create high-resolution projection displays and three-dimensional sensing systems. Over the years, the company has built a portfolio of patents and intellectual property focused on precision optics and laser-based signal processing.
At the core of MicroVision’s offerings is its display platform, which enables compact, energy-efficient projection for augmented reality (AR) headsets, head-up displays (HUDs) in automotive environments, and consumer electronics applications such as pico projectors.
