法拉第未来 (FFAI) 2026年第二季度业绩电话会：营收增长，机器人目标为2,000台

核心要点

• 法拉第未来（Faraday Future）公布2026财年第二季度营收为83.6万美元，较上年同期的5.4万美元增长超1500%，较2026财年第一季度的51.2万美元增长64%。
• 第二季度净亏损从1.247亿美元同比收窄69%至3896万美元。归属于法拉第未来股东的净亏损为3603万美元。
• 截至第二季度末，具身人工智能（EAI）机器人累计销量与出货量达242台，截至7月底达394台。公司表示，交付要求发货前付款，并实现了正向的产品毛利率。
• 管理层维持全年出货2,000台EAI机器人的目标。此外，公司还计划在今年年底前将机器人技能组合扩展至100种，并将开发者社区规模扩大至200名成员。
• 截至2026年6月30日，总负债约为2.78亿美元。管理层计划在未来三到四个季度内将负债降至1亿美元以下。
• 公司在第二季度获得了7000万美元的新机构承诺资金，并表示该资金结合其轻资产部署模式，将支撑其截至2026年底的第一阶段EAI机器人运营目标。

关键财务数据

业务与运营表现

EAI机器人推动了营收增加。累计销量与出货量从季度末的242台增加到7月底的394台。部署的产品包括人形机器人和仿生机器人，教育、工业应用以及安防巡检被确定为重点优先市场。

法拉第未来围绕“四核全栈人工智能生态系统”重组了其机器人战略：EAI大脑（EAI Brain）、EAI设备（EAI Devices）、行业生产力解决方案与开发者平台（Industry Productivity Solutions and Developer Platform）以及EAI数据工厂（EAI Data Factory）。

在EAI大脑方面，公司完成了涵盖人工智能交互、视觉-语言-动作（VLA）模型、机器人操控和全身运动控制的初步技术框架。管理层表示，其全身运动模型在标准仿真基准测试中实现了约98%的运动跟踪成功率。

EAI数据工厂已产生初步样品付款。管理层表示，某一主要客户的潜在订单价值最高可超过40万美元，同时与某头部数据公司的定价谈判仍在进行中。公司还接触了20多家供应商，并与两家合作伙伴就东南亚数据采集站点达成了初步协议。

开放开发者平台推出了通用版和青少年版，提供SDK和API接入以及四种开发者工具。目前正在积极接触20多家合格的开发者机构和行业合作伙伴。

管理层还概述了分三个阶段推进的“美国制造”（Built in USA）计划。该计划从位于美国的人工智能、数据和开发者基础设施逐步推进到本土组装，并最终实现在美国本土制造整机机器人及某些零部件。

管理层展望

管理层维持了以下2026财年的运营目标：

• 年底前出货2,000台EAI机器人。
• 截至8月底，每月合格真实世界数据采集时长产能达到2,100小时，截至12月底达到20,000小时。
• 全年采集50,000小时的真实世界数据。
• 将机器人技能组合扩展至100种技能。
• 将开发者社区规模扩大至200名成员。
• 在未来三到四个季度内将总负债降至1亿美元以下。

公司计划优先考虑具备明确商业化潜力且单体经济效益（unit economics）正向的机器人产品。管理层预计商业化设备出货和机器人生态系统变现将支持营收增长和毛利率改善。

法拉第未来表示，其汽车业务仍是EAI战略的一部分，但执行和资金部署仍将取决于能否获得专项资金以及战略合作伙伴的进展。

风险与关注事项

尽管营收增加且成本下降，法拉第未来仍继续报告大幅亏损和现金消耗。上半年运营现金消耗为5650万美元，而第二季度在83.6万美元营收的情况下，毛亏损仍达1070万美元。

在实现正向经营现金流之前，公司仍依赖外部融资。在第二季度的融资收益中，有4250万美元保存在受存款账户控制协议约束的账户中，并在2026年6月30日被列为受限资金。

管理层将股权稀释和历史遗留负债列为主要关注点。公司修改了可转换融资条款，取消了认股权证，并表示在法律和合同要求允许的前提下，拟为未偿还的可转换票据设立每股至少5美元的转换下限。

FFAI于2026年7月24日完成了1比150的反向股票拆细（合股），随后重新符合Nasdaq的最低买盘价要求。减负债、本土制造和机器人出货目标仍取决于执行、融资可得性及合作伙伴支持。

股东问答环节亮点

管理层表示，美国联邦通讯委员会（FCC）2026年7月出台的涵盖某些外国制造的先进机器人设备的政策，可能会支持法拉第未来的“美国制造”战略。公司计划在开展更广泛的本土制造之前，评估本地机器人组装、汉福德工厂的潜在改造以及其他美国场地。

为了保持其在具身智能领域的早期地位，管理层强调构建一个连接机器人部署、真实世界数据采集、模型开发、新技能以及进一步设备部署的飞轮。计划出货的2,000台机器人旨在扩大公司在不同城市和应用场景下的数据基础。

在融资和股权稀释方面，管理层表示意在减少对高成本短期债务的依赖，在可行的情况下探索股权结构，并考虑对机器人业务部门进行独立融资或潜在公开上市。新资金将主要用于支持机器人业务开发，而非偿还历史负债。

业绩电话会议完整文字记录

完整财报电话会议逐字稿

管理层陈述

Operator

Greetings. Welcome to Faraday Future Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to John Schilling, Director of Public Relations, Communications and Government Affairs. Thank you. You may begin.

John Schilling

Good evening, everyone, and thank you for joining Faraday Future's Second Quarter 2026 Earnings Call. My name is John Schilling, Global Director of Public Relations, Communications and Government Affairs at Faraday Future. Today, I am joined by our Global CEO, YT Jia.

Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review our SEC filings for a detailed discussion of these risks. We undertake no obligation to update forward-looking statements, except as required by law. Following prepared remarks, we will address a selection of stockholder questions submitted in advance.

With that, I'll turn the call over to YT, our Founder and Global CEO.

Yueting Jia

Thank you, John, and thank you for joining us here today. In today's call, I will provide an update on FF's second quarter 2026 results key progress from the second quarter through today and our outlook for the next stage of growth. The second quarter validated our core growth model where EAI devices serve as the entryway, real-world data as the fuel and the EAI Brain and developer platform as a driving engine. FF made a pivotal transition moving from strategic framework into execution, scaled delivery and commercial scenario deployment.

Centered around our core pillars, we have established an initial closed-loop flywheel. Device deployment feeds real-world scenario data, which drives EAI Brain training, leading to skills and solution upgrades and ultimately fueling further device deployment on EAI robotics business. As of the end of the first quarter, second quarter and July 2026, cumulative sales and shipments totaled 22,242 and 394 units, respectively, demonstrating a continued upward trend in volume.

Given the strong momentum, our annual shipment target has been updated to 2,000 units. To drive broader adoption, we also launched the EAI robotics education ecosystem for both B2C consumer and B2B education markets. By integrating robot bodies, AI programming curricula, developer tools, skills ecosystems and real interaction data led by entry-level products like FX Navi, we are lowering the barrier to Physical AI learning and empowering young learners to evolve from AI users into AI creators.

Based on this progress, the company has completed the strategic upgrade to its Four-Core Full-Stack AI Ecosystem in the second quarter, further defining its development road map around 4 core pillars, the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform and the EAI Data Factory. All 4 pillars are now in active implementation. With the EAI Devices business already in commercial deployment and the EAI Brain, Data Factory and Industry Productivity Solutions and developer platform establishing their initial operating foundations.

At the same time, these efforts position us well to proactively prepare for potential future ICTS-related regulatory developments. Meanwhile, we continue to advance our Built In USA strategy, accelerating the development of U.S. domestic robotics manufacturing capabilities and a trusted robotics industry value chain. Leveraging the strategic market window created by the recent FCC policy, we are accelerating the establishment of a U.S.-centered robotics ecosystem further strengthening FFAI's strategic leadership position in the U.S. embedded AI robotics industry.

Looking ahead, we remain committed to advancing the development of America's embedded AI robotics industry and reinforcing the United States global leadership in embedded AI and robotics. Now let me now walk through our product technology and business update. In the second quarter of 2026, we upgraded our robotic strategy to continue establishing targeted commercial execution. Our strategy evolved from 3-in-1 ecosystem to the Four-Core Full-Stack AI Ecosystem by adding Industry Productivity Solutions and Developer Platform as the fourth core alongside the EAI Brain, EAI Devices and EAI Data Factory.

Let's dive into each of these core solutions individually. Let's begin with the EAI Brain. Under our One Brain, Multiple Forms architecture, the EAI Brain serves as the core intelligence layer. During the quarter, we made significant progress across multiple fronts. We completed the initial development of our core technology framework for the embedded AI robot Brain, establishing a comprehensive stack that encompasses AI interaction, vision language action, VLA models, robotic manipulation and whole body motion control.

Leveraging NVIDIA GR00T, we are continuously advancing VLA model fine-tuning and training on real robot data. Following the NVIDIA SONIC road map, we are making steady progress in whole body motion control R&D. In the latest phase of testing, our whole body motion model achieved a motion tracking success rate of approximately 98% on standard simulation benchmarks, validating FFAI's ability to rapidly integrate cutting-edge global AI technologies and enable cross-platform migration and autonomous adaptation across different robot form factors.

In parallel, we completed the initial basic capabilities for our universal teleoperation swam control platform, enabling unified management across diverse hardware configurations. On the algorithmic side, world model training on Dream Zero reached key phase milestones to improve predictive control. We also launched our official robot control app on the iOS App Store and successfully completed an automated control demonstration for our self-developed security software. Collectively, these efforts have preliminarily established the foundational architecture and core enablers, including teleoperation and fleet management necessary to support large-scale robot deployment in the future.

Turning to the physical touch point of our technology, the EAI Devices. We believe FF has established an early commercial leadership position in the U.S. embedded AI robotics market supported by growing sales and deployments across multiple robot form factors. As of the end of the second quarter, cumulative sales and shipments totaled 242 units, increasing to 394 units by the end of July. All deliveries maintained our strict standard of payment before delivery with positive product gross margins. We have also advanced the tradition cooperation with the Triple I Group and Sequoia Education Group to deploy robots in educational settings.

On the distribution side, RobotShop, one of the leading robotic-focused e-commerce platforms, completed procurement evaluations and confirmed drop shipping support, while channel expansion with DSMA progressed. We recently launched our 3-phase Built in USA acceleration program in alignment with recent FCC guidance on robot compliance. Moving from localized AI platform to assembled in the U.S.A. and ultimately made in the U.S.A., this initiative strengthens our domestic supply chain.

To directly catalyze hardware sales, AIxCrypto Holdings, Inc., an independent public listed company controlled by FF AIxC designated RoboShare as its top operating priority for the second half of the year. Debuted at Automate 2026, AIxC provides the protocol, identity and settlement layers, while FFAI acts as a lead hardware and asset foundation. This model unlocks continuous utilization, extended use and network value after the sale. We have also onboarded our previously sold and newly purchased robots onto RoboShare under custody agreements, allowing us to effectively transform our robots into income-generating assets, lowering total cost of ownership for buyers and directly driving new FFAI terminal sales.

Moving on to the EAI Data Factory, the financial engine and fuel of our 4-pillar AI ecosystem. This core layer has formed a complete commercial closed loop, generating initial sample payments and positioning the segment for significant profit growth. Our primary customers' potential order value could reach over $400,000 at the high end and price negotiations remain ongoing with a top-tier data company. To expand operational scale, we engaged over 20 supplier partners and reached initial agreements with 2 partners for Southeast Asia data collection sites.

On the software side, the centralized collection tools were completed and deployed on the robotics units, where centralized collection and upload software was demonstrated at Automate in June. HQ collection expanded across 3 scenarios using futurist Faber S1 and Faber T1 units, supported by self-developed remote teleoperation software optimized for Faber.

Finally, turning to Industry Productivity Solutions and the Developer Platform, converting our Full-Stack AI into tailored complete solutions. The Industry Productivity Solution strategy will initially focus on 4 major market segments: education, industrial applications, security and inspection and other existing markets. We will accelerate the development and delivery of complete solutions tailored to the distinct real-world needs of each industry. Within Education, we established California's first education innovation lab in cooperation with leading partner institutions. For the Developer Platform, we completed a full business closed loop, deploying our EAI Soul framework, Brain Block modular architecture, open SDK and API interfaces in the second quarter.

We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both General and Youth Developer Editions alongside Four-Core developer tools. Redwood Education joined as a flagship ecosystem partner, generating hardware sales and establishing a benchmark organization for educational development. The developer community now covers key segments, including individual developers, educational institutions, secondary development companies, youth developers and security/inspection solution providers. The platform has built a robust ecosystem pipeline with over 20 qualified developer organizations and industry partners under active engagement.

Subsequent to the quarter, the Developer Platform continued its expansion and multiple developers identified clear needs for robot purchases, testing and real-world deployment. The developer platform is progressively building an end-to-end business conversion pipeline from developer acquisition and skill solution development to robot sales and scaled deployment. On product planning, the road map has been refined to include general use and dedicated skill stores, end-to-end technical validation and system optimization have been completed across the full workflow from onboarding and tools to skill development, publishing, deployment and robot execution. These efforts have notably enhanced functionality, stability and developer experience, laying a solid foundation for scaling developer onboarding, accelerating skill creation and expanding the ecosystem.

Now let me walk through our financial results for the second quarter and the first 6 months of 2026. For the second quarter of 2026, total revenue reached $836,000, representing an increase of over 1,500% compared to $54,000 in the second quarter of 2025 and a 64% increase compared to $512,000 generated in the first quarter of 2026. For the first 6 months of 2026, cumulative revenue grew to $1.35 million compared to $370,000 in the prior year period. This growth was primarily driven by scaling product deliveries within our EAI Robotics segment, where we continue to achieve positive product gross margins.

This top line momentum reflects accelerating commercial adoption across our robotics portfolio. By exceeding our first half shipment targets, we are demonstrating clear market traction and validating the strength of our Device, Data, Brain evolutionary flywheel. Our total cost of revenue and operating expenses saw material optimization during the period. Cost of revenue for the second quarter totaled $11.54 million, down 57% compared to $26.91 million in the second quarter of 2025, marking a year-over-year reduction of $15.37 million. For the first 6 months of 2026, cost of revenue was $23.4 million compared to $48.3 million in the first 6 months of 2025.

Driven by this structural cost optimization and higher revenue contribution, our quarterly gross loss narrowed substantially to $10.7 million from $26.9 million in the second quarter of 2025. As a result of these operational efficiencies and cost controls, our net loss for the second quarter narrowed by 69% year-over-year to $38.96 million, an $85.71 million improvement compared to the $124.7 million net loss reported in the second quarter of 2025. Net loss attributable to Faraday Future stockholders was $36.03 million for the quarter.

For the first 6 months of 2026, our cumulative net loss stood at $81.3 million compared to $135 million in the same 6-month period of 2025. These improvements reflect management's commitment to strict financial discipline under our Five Key Transformations framework and stockholder-first philosophy, systematically driving down operating burn while building a clear path towards sustainable profitability.

Turning to our balance sheet. As of the end of the second quarter, total liabilities were approximately $278 million, representing a decrease of approximately $61 million from $340 million at the end of the second quarter of 2025. During the 3 months ended June 30, 2026, the company completed 2 additional financing transactions. On April 17, 2026, the company issued the secured notes for an aggregate purchase price of $45 million and an aggregate original principal amount of approximately $45.8 million.

On May 15, 2026, the company issued the 2026 May convertible SPA notes for aggregate funded proceeds of $25 million and an aggregate unpaid principal balance of $27 million. Of the aggregate proceeds from these financings, $42.5 million was deposited into accounts subject to deposit account control agreements and was classified as restricted cash as of June 30, 2026. Excluding the liability for these new funding, the actual debt reduction exceeded $100 million. Total stockholders' equity remained positive at $1.41 million as of June 30, 2026.

Importantly, during the quarter, we successfully completed $20 million in debt resolution. Vigorously resolving these liabilities is a deliberate effort to free our robotics business from historical baggage and legacy debt burdens, allowing it to travel light with a lean capital footprint and align market valuation with its stand-alone intrinsic worth. In terms of cash flows, net cash used in operating activities for the first 6 months of 2026 was $56.5 million. Concurrently, net cash provided by financing activities for the first 6 months of 2026 reached $76.37 million, up $21.3 million year-over-year compared to $55.1 million in the first 6 months of 2025.

Let's move on to our capital markets updates. During the second quarter and subsequent weeks of July, we executed a series of decisive capital markets initiatives aimed at securing near-term operating liquidity, simplifying our capital structure and keeping our listing status. On the financing front, we successfully secured $70 million in cumulative new institutional commitments in the second quarter, combined with our asset-light robotics deployment model. This funding provides the capital runway required to support our Phase 1 EAI robotics operational targets through the end of 2026.

In July, we took aggressive steps to restructure existing agreements and curb potential equity dilution. On July 8, we executed warrant termination agreements with investors to permanently cancel roughly 5.36 million Class A warrants. This brings our cumulative permanent warrant cancellations to approximately 49.9 million units since December 2025, substantially streamlining our capital structure and eliminating future overhang.

Furthermore, on July 9, we amended and restated our $82 million convertible note agreement. The revised structure splits the remaining second closing into 8 manageable tranches tied to incremental funding milestones of at least $5 million each, eliminates warrant issuances for the vast majority of participating investors and removes VWAP-based pricing conditions. This amendment accelerates the drawdown of committed capital while significantly curbing dilution risks. Subsequent to quarter end, we received $1.5 million in gross proceeds under this facility and converted $3.9 million in principal and $0.6 million in interest into 127,490 Class A shares. We further commit that subject to compliance with applicable laws and contractual obligations, we will set a conversion floor price of $5 per share for all outstanding convertible notes.

To date, with the exception of certain notes for which a floor cannot be fixed, such amendments are effective with respect to notes representing about 90% of our target. Regarding our listing status to satisfy Nasdaq's minimum bid price requirement and protect our listing status for our stockholders, the Board approved a 1-for-150 reverse stock split, which became effective on July 24, 2026. Following this corporate action, we formally received confirmation from Nasdaq that the company has regained full compliance with the minimum bid price requirement.

Going forward, we remain committed to optimizing our financing structure, aligning our capital structure with our operational milestones and rebuilding long-term market confidence.

Now let's discuss our recent progress on our AI system and corporate governance. In the second quarter of 2026, we continued to advance our company-wide AI governance framework. Solidifying our foundation as an AI-native intelligent enterprise. By accelerating our AI-first culture and upgrading our AI-driven product, production, technology and intelligence system, we refined our management structure to cover AI application governance, risk classification, token cost visualization and complete life cycle data management.

Furthermore, we deepened AI integration across core operational processes, driving measurable progress in workflow automation, productivity evaluation, task tracking, and cross-departmental knowledge management to continuously optimize organizational efficiency. On compliance and internal controls, we systematically elevated our risk management, cybersecurity governance and information disclosure systems. These optimization strengthen privacy controls, improve cross-functional auditability and enhance the reliability and transparency of our financial reporting. By reinforcing these corporate governance controls, we ensure regulatory adaptability and strategic alignment as we scale our business and build long-term trust in the capital markets.

With that, let's dive into the outlook for the rest of 2026. As we move through the rest of the year, we are executing across our Five Key Transformations spanning finance, strategy, technology and business, capital and AI system. With our robotic strategy upgraded to a Four-Core Full-Stack AI Ecosystem, our focus centers on scaling commercial revenue, reducing total liabilities and establishing a disciplined path towards long-term financial sustainability.

Moving into the second half of 2026, our financial strategy is focused on establishing a sustainable revenue model and achieving balanced optimization through 3 primary pillars: revenue and ecosystem growth: accelerate the growth of all businesses across our Four-Core Full-Stack AI Ecosystem strategy, driving continued revenue expansion and steady improvement in overall gross margin driven primarily by commercial device shipments and accelerating monetization of our EAI robotics ecosystem. Liability reduction: we reemphasized our clear debt resolution target to reduce total company liabilities to under $100 million within the next 3 to 4 quarters, providing continued support for the growth of our robotics business.

Operating cash flow optimization: we are building a differentiated growth model based on our strategic upgrades to continuously optimize operating cash flow. This approach supports near-term cash flow generation with limited additional capital investment while backing our long-term ecosystem expansion. Second, on our strategic outlook, the FCC's new policy marks a pivotal shift in the U.S. embedded AI robotics industry, ushering in a new competitive era defined by domestic manufacturing, trusted supply chains, enterprise AI, EAI, real-world data and open ecosystems.

FF is uniquely positioned to capitalize on this historic strategic opportunity through its 7 core competitive advantages, the Full-Form factor, FF EAI Robot World built around 6 major product series and the One Brain, Multiple Forms and Multiple Forms, Multiple Capabilities strategies. The Four-Core Full-Stack AI Ecosystem, integrating the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform and EAI Data Factory is a 5+1 ecosystem-based direct sales and user co-creation system key customer touch points.

Its compliance capabilities as a U.S.-based company is data-driven evolutionary flywheel powered by large-scale deployment and real-world data, its asset-light operationally lean financial model focused on positive product gross margins and payment before delivery discipline and its differentiated capital value supported by FF's Nasdaq-listed platform and the potential stand-alone value unlocking path for its robotics business.

Looking ahead, FF is committed not only to delivering superior robotic products, but also to building the most open, comprehensive and continuously evolving enterprise AI robotic ecosystem platform in the United States. By continuously strengthening our technology and business flywheels through real-world scenarios, real-world data and real-world value, we aim to drive the upgrade and advancement of the U.S. embedded AI robotic industry and generate sustainable long-term value for our customers, partners, stockholders and the broader industry.

Third, on our product, technology and business outlook. At the operational level, the company remains committed to its full year shipment target of 2,000 robots while accelerating momentum in data services and industry solutions to further expand delivery scale and drive commercialization around the Four-Core Full-Stack AI. On the EAI Devices front, we are accelerating deployment across key verticals, including education, industrial and security/inspection, continuously expanding the robotics product portfolio and scaling commercial deliveries.

The EAI automotive business remains one of FF's core businesses and an important component of the company's overall EAI strategy. The company will proceed with a highly disciplined and prudent approach, strictly aligning the pace of execution and capital deployment with the availability of dedicated funding and will not accelerate the business unless and until sufficient funding has been secured. Meanwhile, FF will align its execution with the development plans and the progress of its strategic partners.

On the EAI Brain front, the company expects to further deepen the integration of NVIDIA's technology stack with FF's proprietary EAI Brain robotics platform and data infrastructure over the course of this year. We will continue advancing the group training and validation on embedded AI capabilities, including complex grasping and multi-step manipulation while driving SONIC technology from simulation-based training towards full body robot control on real hardware and cross-platform migration across different robot form factors.

On the EAI Data Factory front, the company will further close the complete loop encompassing real-world robot data collection, training, evaluation, deployment and continuous learning. This will accelerate the formation of a self-reinforcing flywheel: Device to Data to Brain to Solution to Device, and build an embedded AI technology framework that is quantifiable, continuously iterable and scalable across diverse robot morphologies, providing core technical support for the ongoing evolution of our autonomous EAI Brain, industry solutions, and the broader Four-Core Full-Stack AI Ecosystem.

The EAI Data Factory is expected to reach monthly production capacity of 2,100 qualified real-world data collection hours by the end of August, 20,000 hours by the end of December and a total of 50,000 hours of data collection for the full year.

On the Industry Productivity Solutions and Developer Platform front, we are building standardized, replicable and scalable industry solutions to enhance customer value and return on investment or ROI, with planned geographic expansion across California, Texas and the Eastern U.S. within the year. Concurrently, we are continuously strengthening the developer ecosystem by opening up robot capabilities, skills and industry application platforms to attract more developers and partners to co-build the robotics application ecosystem.

For the Developer Platform, we completed a full business closed loop, deploying our EAI Soul framework, Brain Block modular architecture, open SDK and API interfaces in the second quarter. We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both General and Youth Developer Editions alongside four core developer tools. For the remainder of 2026, we are continuing to streamline our product portfolio to prioritize robotic products with clear commercialization potential and positive unit economics, supported by expanding demand across our key use cases, specifically education. By the end of 2026, we aim to ship 2,000 EAI robot units, expand our portfolio to 100 skills and grow our developer community to 200 members. Together with real-world data collection across multiple use cases, these efforts will lay a solid foundation for larger-scale shipments and broader data collection in the years ahead.

Fourth, turning to our capital outlook. FF is seizing a major opportunity in the robotics market and our EAI ecosystem is making solid progress, yet our improved fundamentals and robotic potential are not reflected in our stock price, which remains driven by market sentiment. We believe the root cause is that the market continues to price FF on historical burdens and dilution concerns, not on our prospects. To address this, we are executing a comprehensive capital value restoration program focused on unlocking robotic value, optimizing capital structure, resolving legacy debt and strengthening operations.

First, we are exploring stand-alone financing and public listing opportunities for our robotics segment. This would secure dedicated growth capital for our AI ecosystem while reducing dilution at the FFAI level, delivering direct value to our stockholders. Second, we do not want legacy debt from our post-IPO automotive history to constrain our early-stage high-growth robotic strategy. As mentioned in the finance outlook with supplier and creditor support, we plan to reduce total liabilities to below $100 million over 3 to 4 quarters, improving our balance sheet and supporting robotics growth.

New funds raised will be primarily deployed to support robotics business development rather than to service historical liabilities. Third, we are exercising strict financing discipline. Subject to counterparty negotiations, we intend to accelerate our exploration of the shift from convertible notes to equity structures, prioritizing higher offering prices and reducing discounts and warrant coverage. For notes, we are locking in conversion floors and cutting daily conversions to protect equity. ATM sales will occur at higher, more favorable prices. Fourth, and fundamentally, we are driving robotics revenue growth and controlling costs to reduce external financing needs and advance our long-term debt reduction targets.

Lastly, let's look at our AI system outlook. Looking ahead, we are accelerating our transition into an AI native enterprise across our management, financial and compliance systems. In our management system, we are expanding AI deployment across end-to-end operations, including R&D, manufacturing, supply chain and user acquisition, moving from AI-assisted workflows toward the full process automation and intelligent decision-making to maximize operating leverage. Within our financial and compliance system, we are embedding AI capabilities to enable dynamic real-time decision guidance, token cost tracking and auditable financial workflows.

Simultaneously, we are systematically refining our internal controls, cybersecurity and information disclosure frameworks. These measures ensure complete regulatory adaptability, safeguard operational integrity and reinforce long-term capital market confidence. We are entering a pivotal phase of commercial execution, regulatory alignment and capital discipline, powered by our Four-Core Full-Stack AI Ecosystem. Our Phase 2 Built in USA manufacturing road map and our comprehensive capital value restoration plan, we are actively driving organic revenue growth, reducing legacy liabilities and unlocking the intrinsic market value of our physical AI business.

We firmly believe that the rigorous execution of our Five Key Transformations will systematically elevate our operational leverage, strengthen capital market trust and decisively realign our valuation with the long-term intrinsic value of our technology platform.

To conclude, I will now hand the call over to John for the Q&A session.

John Schilling

Thank you, YT. We would now like to open the floor for Q&A.

One, what strategic opportunities does the FCC's new policy present for FF?

Yueting Jia

On July 28, 2026, the U.S. Federal Communications Commission, FCC added advanced robotic equipment, including humanoid and quadruped robots manufactured outside the United States to its covered list. Foreign manufacturers and component suppliers will face substantially higher compliance costs, extended timelines and increased legal risks, which in turn will incentivize them to seek deeper collaboration with U.S.-based companies.

Management believes that this regulatory shift is highly aligned with FF's Built in USA strategy and presents a critical structural opportunity for the company. As the first U.S. company to achieve commercial deliveries of both humanoid and bio-inspired robots, FF has already established and continuously iterated its core R&D and operations for the EAI Brain, Data Factory, Industry Productivity Solutions and Developer Platform entirely within the United States. Data collection and storage are strictly conducted in compliance with domestic requirements, giving FF inherent advantages in data security, cybersecurity and model training.

Leveraging its industry bridge strategy, FF effectively connects the U.S. market, global capital, cutting-edge technologies and mature international supply chains. Capitalizing on this policy window, the company has formally launched the Built in USA acceleration program for its EAI robotics business to be executed in 3 phases: Phase 1, preliminary deployment completed, the EAI Brain, Industry Productivity Solutions and Developer Platform and Data Factory are now operational, laying the technical groundwork for ongoing core development and proactively preparing for potential future ICTS-related regulations.

Phase 2, accelerate U.S. local assembly of robot units and FCC compliant components assembled in U.S.A. with the goal of achieving domestic production on a shorter timeline and greater efficiency. This includes evaluating the conversion of our Hanford facility and exploring new site selections. Phase 3, ultimately achieve U.S. manufacturing made in U.S.A. of complete robot units and certain components that fall under the FCC covered list.

John Schilling

Two, as the embodied AI industry rapidly evolves, how does FF plan to sustain its first-mover advantage?

Yueting Jia

With the continued refinement of industry standards, declining costs and expanding application scenarios, the robotics sector is expected to enter a phase of accelerated growth. FF has built a closed-loop ecosystem centered on 3 core pillars: hardware, the brain and open platform and data factory. This ecosystem operates through a positive flywheel deployment, real-world data collection, model evolution, skill enhancement and incremental deployment, continuously elevating intelligence levels and driving towards large-scale commercialization.

High-quality real-world data is essential for training embedded AI. Our 2026 shipment target is 2,000 robots, encompassing both humanoid and bio-inspired models distributed across multiple cities and diverse user scenarios to capture rich authentic operational data. From our initial deliveries at the end of February through the end of July, we have cumulatively sold and shipped 394 units, and we remain in a steady ramp-up phase. Our data assets are growing consistently, and we are leveraging this early data advantage to continuously refine the technical architecture of both the robotic brain and cerebellum, building a replicable and scalable ecosystem tailored to the U.S. market.

Furthermore, the recently announced FCC robotics policy has opened a critical market window that will help FF reinforce its first-mover position, accelerate market share expansion and strengthen brand recognition and customer loyalty.

John Schilling

Three, before achieving positive operating cash flow, how does FF plan to balance financing needs and share dilution?

Yueting Jia

The company intends to progressively reduce its reliance on expensive short-term debt and transition toward a funding structure anchored in operating cash flow, industrial partnerships and long-term capital. Specific measures include operational optimization. By executing our strategic plan, we aim to increase revenue scale while tightening cost and expense controls, thereby steadily improving operating cash flow and lessening dependence on external financing. We have established core financial targets covering gross margin, operating cash flow and debt reduction.

Financing mix adjustment. Subject to negotiations with relevant counterparties, we will seek to replace convertible note financings with equity-based structures where feasible and explore stand-alone financing for our robotics business to further reduce dilution at the FFAI level. Any new capital raise will be primarily deployed to support robotics business development rather than to service historical liabilities. Setting our conversion floor in compliance with applicable laws and contractual obligations, we plan to establish a minimum conversion price of no less than $5 per share for our outstanding convertible notes.

This mechanism provides a clear ceiling on potential dilution from such instruments and helps stabilize market expectations. Through these measures, the company aims to gradually shift from a financing-driven model to one powered by operating cash flow.

John Schilling

Four, why has the company set a debt reduction target at this stage?

Yueting Jia

We, together with our investors who are bullish on FF's robotics business and our industry partners do not wish to see this early-stage high-growth robotics strategy constrained by the historical liabilities stemming from our post-IPO legacy and automotive operations since 2021. We firmly believe that the true value and commercial potential of our EAI robotics business are significantly higher than what is currently reflected in Faraday Future's market capitalization.

To unlock this value, our debt resolution program advances along 2 parallel tracks, combining operating debt reduction with capital structure liability optimization. Through rigorous financial reconciliations, legal settlements, commercial negotiations and warrant cancellations, we are systematically clearing historical operating burdens while establishing long-term debt management and internal control mechanisms.

Building on the $20 million in debt resolution completed during the second quarter, these integrated efforts continuously improve our net equity position as we advance towards our road map target of reducing total liabilities to under $100 million over the next 3 to 4 quarters. Removing these legacy obligations across both operating and capital levels creates a cleaner, highly flexible balance sheet that enables our robotics business to move forward with a lighter legacy burden, accelerate commercial deployment and unlock long-term value for our stockholders.

Operator

This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.