Aeva Q2 2026 earnings: Gross profit turns positive but core losses persist

Aeva (Nasdaq: AEVA) reported Q2 2026 revenue of $6.1 million, up about 11% from $5.5 million a year earlier, while GAAP loss per share narrowed to $1.23 from $3.49. Gross profit turned positive, but non-GAAP operating loss widened as research and development and administrative spending increased. The results, released August 5, cover the quarter ended June 30, 2026.

Core financial results

Revenue growth came entirely from professional services, which more than doubled and offset lower product revenue. Cost of revenue fell to $3.9 million from $8.2 million, allowing gross profit to swing to $2.2 million from a $2.7 million loss.

That improvement did not translate into a meaningful reduction in operating loss because operating expenses rose 14% to $36.7 million. GAAP net loss narrowed sharply, but the comparison was heavily influenced by non-operating fair-value adjustments rather than an equivalent improvement in the underlying business.

Gross margins are calculated from the reported revenue and gross-profit figures. Non-GAAP operating loss excludes stock-based compensation and any loss on a joint development agreement.

Business and revenue mix

Professional-services revenue increased to $3.6 million from $1.3 million, while product revenue declined to $2.5 million from $4.2 million. Services therefore accounted for approximately 59% of quarterly revenue, compared with about 24% in the prior-year quarter.

The company also reported several commercial and development milestones:

• Aeva launched an Optical Connectivity business using its high-power optical-source technology for AI data centers. It signed a joint development agreement for a Near-Packaged Optics solution intended for a hyperscaler, with initial deployment targeted for the second half of 2027 and a production ramp targeted for 2028.
• Bendix selected Aeva’s 4D LiDAR and perception software for development of its next-generation commercial-vehicle ADAS solution.
• Aeva continued work on programs involving Daimler Truck, a top-10 European passenger-vehicle OEM, and NVIDIA DRIVE Hyperion.
• SICK launched its first industrial sensor powered by Aeva’s Eve technology.

These milestones broaden the company’s potential markets, but most of the automotive and optical-connectivity updates concern development work or future deployment rather than current commercial-scale revenue.

Gross profit recovery was absorbed by higher operating expenses

Gross profit improved by $4.9 million year over year, but operating expenses increased by $4.5 million. As a result, GAAP operating loss narrowed by only $0.4 million to $34.6 million.

Research and development expense rose to $24.9 million from $22.8 million, while general and administrative expense increased to $10.2 million from $8.0 million. Stock-based compensation, which is included across cost of revenue and operating expenses, increased to $8.5 million from $6.0 million.

The large improvement in GAAP net loss also requires context. Aeva recorded a $44.7 million loss from changes in the fair value of warrant liabilities, compared with an $88.5 million loss a year earlier. The prior-year quarter also included a $70.0 million fair-value loss on a share-subscription liability that did not recur. Excluding these items and stock-based compensation, non-GAAP net loss widened to $26.4 million from $24.5 million.

Non-GAAP loss per share nevertheless narrowed to $0.41 because weighted-average shares increased to 64.7 million from 55.2 million. The lower per-share loss therefore does not by itself indicate that the adjusted net loss improved.

Cash flow and balance sheet

Aeva reported $302.9 million of available liquidity at June 30, consisting of $177.9 million in cash, cash equivalents, and marketable securities plus a $125.0 million available facility. The facility is part of available liquidity but is not cash already on the balance sheet.

For the first six months of 2026, rather than the second quarter alone, operating cash use was $57.0 million, compared with $60.6 million in the prior-year period. The company also spent $2.4 million on property and equipment.

A follow-on stock offering generated $115.0 million of gross proceeds, with $5.8 million of related transaction costs. This financing helped increase combined cash and marketable securities from $121.9 million at the end of 2025 to $177.9 million at June 30, even though cash and cash equivalents alone declined to $43.2 million as funds shifted into marketable securities and supported operations.

The balance sheet also included $96.9 million of convertible notes and $74.0 million of warrant liabilities. The latter increased from $29.7 million at the end of 2025 and can create substantial GAAP earnings volatility through fair-value remeasurement.

Leadership transition

CFO Saurabh Sinha will leave Aeva on September 5, 2026, to pursue another opportunity outside the sensing industry. VP Corporate Controller Rupesh Maheshwari will become interim CFO while the company searches for a permanent successor, with Sinha supporting the transition before his departure.

Recent insider transactions

The supplied six-month insider summary reports 1,708,554 shares acquired across 10 transactions and 923,439 shares sold across 14 transactions, resulting in net purchases of 785,115 shares. Total insider holdings were listed at 11.48 million shares, with net purchases equal to 7.30% under the source’s calculation.

The 10 most recent reported transactions were concentrated in July sales by the CEO, CTO, and CFO, along with two June stock awards. These records are presented objectively and do not establish insiders’ views of the company’s prospects.

Risks investors need to watch

• Operating costs remain high relative to revenue. Aeva generated $6.1 million of revenue but recorded a $34.6 million GAAP operating loss, and its non-GAAP operating loss widened year over year.
• Revenue growth depends heavily on services. Professional services produced all of the quarterly growth, while product revenue declined about 39%. Investors will need to monitor whether product commercialization begins to contribute more consistently.
• Major programs have long or uncertain commercialization timelines. The optical-connectivity deployment is targeted for the second half of 2027, with production ramping in 2028. Development agreements and customer selections may not automatically result in commercial-scale shipments.
• Financing can create dilution and accounting volatility. Weighted-average shares increased about 17% year over year following equity financing, while warrant-liability remeasurement continued to produce large changes in GAAP net income.
• The CFO transition adds execution risk. Aeva is conducting a search for a permanent finance chief while continuing to fund development and scale manufacturing.

Summary

Aeva’s second-quarter revenue increased as professional services expanded, and lower cost of revenue moved gross profit into positive territory. However, higher operating expenses absorbed nearly all of that improvement, leaving the adjusted operating and net losses slightly worse. The strengthened liquidity position provides additional funding capacity, while the main issues to follow are product-revenue conversion, spending discipline, the commercialization of automotive and optical-connectivity programs, and the transition to a permanent CFO.