Innoviz Technologies Ltd. (NASDAQ:INVZ) reported third-quarter 2026 revenue of $12.1 million, representing a 21% decline from $15.3 million in the corresponding period of 2025, as delays in customer programme schedules affected the timing of engineering revenue recognition.
The LiDAR technology supplier reported an adjusted loss of $0.07 per share, in line with analyst expectations, while revenue fell below the consensus estimate of $21.33 million.
Innoviz shares declined 27.44% in premarket trading on Wednesday following the announcement.
The company also issued full-year 2026 revenue guidance of $44 million to $46 million, substantially below the analyst consensus forecast of $70.23 million.
Alongside its quarterly results, Innoviz announced an operational realignment expected to reduce its workforce by approximately 20% and generate annualised cost savings of around $17.5 million.
Innoviz generated revenue of $12.1 million during the third quarter, compared with $15.3 million in the same period of 2025.
The decrease of approximately $3.2 million reflected changes in the timing of customer-related engineering revenue.
Reported revenue was approximately $9.23 million below the analyst consensus estimate of $21.33 million.
The company attributed the revenue shortfall primarily to delays in non-recurring engineering (NRE) revenue recognition after a customer adjusted the timing of a programme.
Non-recurring engineering revenue generally relates to development and engineering activities undertaken for specific customer programmes.
Innoviz expects to recognise the full value of the affected NRE activities during 2027.
The company did not disclose the individual customer involved or the total monetary value of the delayed engineering revenue in the supplied announcement.
Innoviz reported an adjusted loss of $0.07 per share for the third quarter, matching the analyst consensus estimate.
Although adjusted earnings were in line with expectations, the company’s revenue fell substantially below market forecasts.
The company also reported operating expenses of $19.7 million, compared with $18.1 million in the corresponding period of 2025.
The increase of approximately $1.6 million represented a 9% rise in operating expenditure.
The higher expenses occurred alongside the year-over-year decline in quarterly revenue.
Innoviz did not provide additional details in the supplied announcement regarding the individual expense categories contributing to the increase.
Innoviz issued revenue guidance of between $44 million and $46 million for fiscal 2026.
The midpoint of the forecast is $45 million, compared with the analyst consensus estimate of $70.23 million.
The midpoint is approximately $25.23 million, or 35.9%, below market expectations.
The revised outlook reflects the effect of customer programme timing changes on expected revenue recognition during 2026.
The company expects the delayed non-recurring engineering revenue to be recognised in 2027 rather than the current financial year.
Innoviz did not provide a specific full-year 2027 revenue forecast in the supplied announcement.
The timing of customer programmes remains relevant to the company’s future reported revenue.
Innoviz outlined its strategy of serving two principal markets: automotive technology and defense and homeland security.
The company develops LiDAR sensing solutions used to detect and measure objects and surrounding environments.
Its automotive activities focus on sensing technologies for vehicle applications, while its defense operations are being developed under the Perciz brand.
Management said the company’s business strategy has been adjusted to support activities across these two markets.
The company also reported progress in its defense operations, including the shipment of initial customer orders and discussions with defense contractors.
Innoviz did not disclose the revenue contribution from the Perciz business or provide separate financial forecasts for its automotive and defense operations.
Innoviz Chief Executive Officer and Founder Omer Keilaf said the company had undertaken changes to its business structure and market focus during the preceding year.
“Over the past year, we took decisive steps to diversify our business and strengthen our path to long-term growth and profitability,” Keilaf said.
“We have repositioned Innoviz around two synergistic end-markets: automotive, and defense and homeland security under our Perciz brand.”
The comments accompanied the company’s announcement of additional operational restructuring measures.
Management identified automotive and defense applications as the two principal areas of its business strategy.
The company expects its revised operating structure to support activities across these markets while reducing annual operating costs.
Innoviz reported that its defense business had begun shipping initial customer orders.
The company also disclosed engagement with multiple defense contractors in Israel and international markets.
These activities form part of its efforts to develop the Perciz brand and expand the application of its LiDAR technologies beyond automotive markets.
In September 2026, MAFAT, Israel’s Directorate of Defense Research and Development, recognised the maturity and performance of Innoviz’s LiDAR solutions for defense applications.
The company identified the recognition as a development in its defense technology activities.
However, Innoviz did not disclose specific contract values, customer names or expected revenue associated with these engagements in the supplied announcement.
The timing and financial contribution of future defense orders remain dependent on customer procurement and programme schedules.
Innoviz announced an operational realignment that is expected to reduce its workforce by approximately 20%.
The company estimates that the measures will generate annualised cost savings of approximately $17.5 million.
The restructuring forms part of its efforts to adjust operating expenditure and align resources with its revised business strategy.
The planned workforce reduction follows third-quarter operating expenses of $19.7 million, an increase of 9% from the previous year.
The company did not specify the number of employees affected, the expected completion date or any associated restructuring charges in the supplied announcement.
The estimated annual savings represent management’s expectations once the operational changes have been implemented.
The actual financial effect will depend on the timing and execution of the restructuring measures.
Innoviz reported total liquidity of $54.4 million as of September 30, 2026.
The company disclosed the figure alongside its quarterly financial results and restructuring announcement.
The available liquidity provides financial resources for ongoing operations, technology development and other corporate activities.
Innoviz did not provide a comparison with its previous quarter-end liquidity position in the supplied announcement.
The company also did not disclose a specific cash runway estimate or additional financing plans.
Future liquidity requirements will depend on operating expenditure, customer payments, revenue recognition and the implementation of the announced cost-reduction measures.
Innoviz shares fell 27.44% in premarket trading after the company reported quarterly revenue below analyst expectations and issued a full-year forecast substantially below consensus estimates.
The third-quarter results showed a 21% decline in revenue to $12.1 million, while the adjusted loss of $0.07 per share matched market expectations.
Management attributed the revenue shortfall primarily to the postponement of non-recurring engineering revenue following a change in customer programme timing.
The company expects to recognise the delayed revenue in 2027 and has announced workforce reductions intended to lower annualised costs by approximately $17.5 million.
Innoviz also reported initial customer shipments in its defense business and continued engagement with defense contractors.
The company’s subsequent financial results will provide further information on the timing of delayed engineering revenue, progress in its automotive and defense operations, and the financial effects of its restructuring programme.
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