Innoviz Technologies Ltd. (INVZ): Business Model Canvas [Dec-2025 Updated]

You're looking at a company making the critical shift from drawing board to the assembly line, and honestly, that transition is where most tech firms stumble. As your analyst, I've mapped out the current operational blueprint for Innoviz Technologies Ltd. (INVZ) as they ramp up InnovizTwo production, backed by key partnerships with giants like Daimler Truck and existing OEM wins. The numbers for late 2025 show a clear focus: they are targeting $50-$60 million in revenue this year, supported by a healthy $79.4 million cash cushion as of Q2, while aggressively booking $30-$60 million in Non-Recurring Engineering fees to fund the next phase. This canvas breaks down exactly how they plan to turn those high-performance LiDAR units into sustainable revenue streams, so let's see the mechanics.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that are turning Innoviz Technologies Ltd.'s technology into real-world revenue streams as of late 2025. It's all about securing those high-volume, automotive-grade commitments, and the data shows they're locking in significant design wins.

The manufacturing backbone is set with Fabrinet, Innoviz Technologies' chosen partner for high-volume production of the InnovizTwo platform. Innoviz Technologies announced the shipment of the first InnovizTwo LiDAR units from this high-volume production line managed by Fabrinet in July 2025. This move is designed to cost-effectively scale production with a partner that has automotive-grade facilities globally.

The strategic collaborations are translating directly into financial milestones; year-to-date revenues through Q3 2025 reached $42.4 million, which is approximately 2.3x the levels from the same period in 2024. This volume ramp is supported by projections of an order of magnitude more units shipped in Q3 2025 than in Q2 2025, with some projections suggesting a 10x increase in unit shipments in Q3 to support upcoming automotive SOPs.

Here's a breakdown of the key OEM and platform integrations driving this volume:

The commercial vehicle win with Daimler Truck and Torc Robotics for Level 4 autonomous Class 8 trucks is a major validation point, positioning the InnovizTwo Short-Range LiDAR as a critical component for their Freightliner Cascadia integration. This follows an earlier selection by an unnamed major commercial vehicle OEM for a future L4 series production deal.

The development pipeline is also rich, evidenced by the Statement of Development Work (SoDW) agreement with a Top 5 passenger automotive manufacturer for an L3 program. This relationship is financially underpinned by an expanded Non-Recurring Engineering (NRE) payment plan with key customers, now totaling approximately $95 million, with cash payments expected between 2025 and 2027.

The integration with autonomous platforms is key, showing deep ecosystem alignment. You see this in the acceleration of LiDAR unit deliveries to Volkswagen Autonomous Mobility for the ID. Buzz AD shuttles, which are built on the Mobileye Drive™ platform. The company is also seeing momentum with the NVIDIA Hyperion platform.

Other partnership activities include:

• Deepening collaborations with Mobileye, Volkswagen, Moya, and Holland to support L4 autonomous shuttle and taxi fleet ramp-up.
• Supplying initial InnovizTwo sensors to a major commercial vehicle OEM's data collection fleet in 2025, alongside software modification development.
• The first-half 2025 revenues of $27.1 million outpaced all of 2024, with full-year guidance raised to $50-$60 million.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Key Activities

You're looking at the core engine of Innoviz Technologies Ltd. (INVZ) right now, which is all about moving from engineering milestones to scalable, automotive-grade production. The key activities reflect this pivot, balancing the upfront engineering work that funds operations with the actual delivery of the InnovizTwo sensor.

Here's a quick look at where the money and effort are focused for fiscal year 2025:

High-volume manufacturing and quality control of InnovizTwo LiDAR units.

The focus here is scaling production capacity, which is critical for meeting the demands of your design wins. Innoviz Technologies selected Fabrinet as the manufacturing partner to handle this ramp, using their automotive-grade facilities. You saw the first units ship from this high-volume production line as of July 2025. Also, remember the ongoing acceleration of deliveries to Volkswagen Autonomous Mobility for the ID. Buzz AD shuttles; those shuttles each use 9 InnovizTwo LiDARs, supporting their planned 2026 fleet deployments. The unit shipments in Q3 2025 were reported as significantly higher than in Q2, which shows the ramp is gaining pace.

Non-Recurring Engineering (NRE) services for custom OEM integration.

This activity is your near-term cash flow stabilizer. NREs fund the deep engineering work required for custom integration before mass production revenue kicks in. The company raised its FY 2025 NRE bookings target to a range of $30 million to $60 million. Furthermore, the multi-year NRE payment plan with key customers was expanded to approximately $95 million total, with cash payments expected between 2025 and 2027. Honestly, these NREs are essential to strategically funding operations as you approach the start of production (SOP) for several projects in 2026 and 2027.

Advanced R&D for next-generation products like InnovizThree.

You can't just rely on the current product; you have to keep developing. Innoviz Technologies unveiled the InnovizThree product, which is a key R&D output. This next-gen unit boasts a 60% size reduction and improved power efficiency over its predecessor. This work is happening while the company is still executing on the current pipeline. If onboarding takes 14+ days, churn risk rises, and the same principle applies to R&D timelines for future products.

Perception software stack development and integration support.

The hardware is only half the story; the software stack is what makes it useful for autonomy. A major activity here is the development work stemming from new agreements. For instance, in June 2025, Innoviz Technologies signed a Statement of Development Work (SODW) with a top 5 passenger automotive OEM to develop specific modifications to the InnovizTwo LiDAR for that OEM's Level 3 global production vehicle program, slated for SOP in 2027. Separately, they were selected by a major commercial vehicle OEM for the series production of Level 4 Class 8 autonomous trucks.

Global sales and business development to secure new program wins (target 1-3 in 2025).

This is the activity that fuels the entire model. The stated goal for fiscal year 2025 is to secure 1 to 3 new program wins. The company is working with two out of the top five global auto OEMs, who together represent close to one-fifth of the global auto market share. Securing these wins, like the L3 passenger OEM deal and the L4 truck OEM deal, is what converts NRE revenue into long-term product sales revenue.

Finance: draft 13-week cash view by Friday.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Key Resources

You're looking at the core assets Innoviz Technologies Ltd. needs to execute its strategy, the stuff that makes their value proposition possible. Honestly, for a company scaling up in the automotive space, these resources are what separate the players from the contenders.

The foundation here is definitely the intellectual property and the hardware itself. You have the Proprietary solid-state LiDAR technology, specifically the InnovizTwo platform, which is moving into high-volume manufacturing through the partnership with Fabrinet. Plus, you've got the newer InnovizThree model, which was introduced in the third quarter of 2025, showing continued product evolution.

The next big resource is the hard-won validation in the automotive sector. Innoviz Technologies is positioned as a leading Tier-1 direct supplier, which means they've cleared the massive hurdles for automotive-grade qualification. They initiated shipments from Fabrinet's high-volume production line, supporting planned Start of Production (SOP) milestones for several key projects in 2026. Furthermore, they secured a Statement of Development Work with a top-five global OEM for an InnovizTwo modification targeting SOP in 2027, and they were selected by a major commercial vehicle OEM for L4 Class 8 autonomous truck production.

Here's a quick look at the tangible financial resources that keep the lights on and fund the ramp:

The intellectual property is also a critical, though less liquid, resource. Innoviz Technologies maintains a Global patent portfolio protecting core LiDAR and perception technology. As of early 2023, this portfolio included a total of 102 patents globally, with 21 granted and over 76% active. These patents cover system-level and component-level aspects, including LiDAR systems, laser, scanner, receivers, optical devices, and perception technology.

You can also list the key production and development agreements as resources that de-risk future scaling:

• Automotive-grade Tier-1 supplier qualification status.
• Partnership with Fabrinet for mass production of InnovizTwo.
• Development agreement with a top-five global OEM for 2027 SOP.
• Selection for L4 Class 8 autonomous truck series production.

The company has also been actively managing its operational expenses, which is a resource in itself. Operating expenses in Q2 2025 were $18.5 million, a 20% decrease from $23.3 million in Q2 2024. Also, cash burn in Q2 2025 was only $7.3 million, down from $20.7 million in Q1 2025.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Innoviz Technologies Ltd. is pushing to the market as of late 2025. It's all about delivering proven, automotive-grade sensing where it matters most.

Automotive-grade, high-performance LiDAR for L3/L4 autonomy

Innoviz Technologies Ltd. is a Tier-1 direct supplier focused on high-performance, automotive-grade LiDAR sensor platforms. The company has secured significant design wins that validate this value proposition for advanced autonomy levels. For instance, Innoviz Technologies Ltd. was selected by Daimler Truck and Torc Robotics to be the Short-Range LiDAR supplier for series production SAE Level 4 autonomous Class 8 semi-trucks, announced on December 2, 2025. Innoviz Technologies Ltd. began shipping its InnovizTwo sensors to this major commercial vehicle OEM for their L4 data collection trucking fleet. Furthermore, a Statement of Development Work (SoDW) agreement was signed with a Top 5 passenger automotive manufacturer in June 2025 to supply advanced LiDAR units for that OEM's L3 highly automated series-production program, which targets a SOP (Start of Production) of 2027. The Volkswagen partnership involves supplying nine InnovizTwo LiDAR units per ID. Buzz AD autonomous shuttle, with deployments expected to start in 2026 across Europe and the U.S..

The performance metrics underpinning this are key to meeting strict automotive standards:

Low-cost, mass-producible solution for passenger vehicle integration

The strategy here is cost reduction through scale and smart manufacturing partnerships. Innoviz Technologies Ltd. is using a fabless model, outsourcing mass production to Fabrinet to ensure cost-efficient scaling and reduce capital expenditure risks. Historically, the cost per unit for LiDAR in the automotive sector has seen a reduction of approximately 90% since 2015. To put that in perspective, less than a decade ago, an advanced system could cost upwards of $75,000, but Innoviz Technologies Ltd.'s approach targets affordable systems costing hundreds, not thousands, of dollars. The company is working to meet its FY 2025 revenue target of $50-60 million, which is more than 2x 2024 levels, signaling increased volume.

Complementary perception software stack for enhanced safety and vision

Innoviz Technologies Ltd. provides its hardware alongside a complementary software stack. This integration is crucial for turning raw sensor data into actionable insights for autonomous systems. For the Volkswagen L4 program, the hardware is indispensable as the Mobileye Drive™ platform processes the InnovizTwo LiDAR data for Level 4 autonomy. The company's overall offering is described as LiDAR sensor platforms and perception software.

InnovizSMART: Auto-grade LiDAR adapted for non-automotive industrial use

The introduction of InnovizSMART brings the rugged, automotive-grade sensor into industrial markets, showing ongoing traction. This product is tailored for smart applications like security, mobility, aerial, robotics, and Intelligent Traffic Management (ITS). The performance of this sensor, when fused with partner software like Cron AI's SenseEdge, is notable:

• Returns 5.76 million points-per-second with a single reflection.
• Has the capability to output two reflections, effectively doubling the point rate.
• Features a 450-meter range capability for long-distance detection.

Innoviz Technologies Ltd. is actively deploying this, with collaborations announced for installations throughout intersections in the City of Atlanta, Georgia, expected in the coming weeks following an August 20, 2025 announcement.

Direct Tier-1 supplier engagement, simplifying the supply chain for OEMs

Innoviz Technologies Ltd. emphasizes its role as a leading Tier-1 direct supplier to global automotive manufacturers. This direct engagement model is intended to simplify the supply chain for OEMs by providing an integrated hardware and software solution that meets strict automotive expectations for performance and safety. The company is working towards its FY 2025 target of securing 1-3 new program wins. The financial structure supports this development work, with the FY 2025 NRE (Non-Recurring Engineering) bookings target raised to $30-$60 million. As of September 30, 2025, the company maintained liquidity of approximately $74.4 million.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Customer Relationships

You're looking at how Innoviz Technologies Ltd. builds and maintains its relationships with the big players in the automotive and commercial vehicle space. It's all about deep technical partnership and securing long-term volume commitments. Innoviz Technologies Ltd. positions itself as a leading Tier-1 direct supplier of automotive-grade LiDAR sensor platforms and software stacks.

Dedicated joint development teams for deep OEM integration (SODW agreements)

The commitment starts early, often with a Statement of Development Work (SoDW) agreement. Innoviz Technologies Ltd. signed one such SoDW with a Top 5 passenger automotive manufacturer in June 2025. This agreement involves developing specific hardware and software modifications for the InnovizTwo LiDAR platform to ensure seamless integration into that OEM's vehicle system.

• Beginning of development work: Q2 2025.
• Initial supply: Several hundred InnovizTwo LiDAR units over the months following the agreement.
• Target Start of Production (SOP): 2027 for the Level 3 highly automated program.

Tier-1 direct supplier model, offering high-touch technical support

Innoviz Technologies Ltd. operates as a Tier-1 direct supplier, which means a higher level of engagement and responsibility in the supply chain. To support this, the company has invested in internal capabilities that give customers confidence in quality and speed. They are one of the few LiDAR companies with accredited in-house testing capabilities.

The company's hardware qualification testing laboratories received the ISO/IEC 17025:2017 certification as of September 2025. This international standard validates their competence, which is crucial for meeting stringent automotive OEM demands.

Long-term, multi-year production contracts with SOP targets in 2026/2027

The customer relationships are clearly geared toward multi-year, high-volume production, moving beyond just development phases. Innoviz Technologies Ltd. has publicly stated preparedness for multiple program SOPs starting in 2026, with volume production ramping in 2027. This is supported by a multi-year Non-Recurring Engineering (NRE) payments plan with key customers, which expanded to approximately $95 million, with over $40 million expected in 2025.

Here's a look at the key production timelines secured as of late 2025:

Strategic collaboration on data collection fleets for new programs

A key step before full series production involves supporting customer data collection efforts. Innoviz Technologies Ltd. is actively supplying sensors for this purpose, which is a strong indicator of a deepening relationship and commitment from the OEM side. The company reported record H1 2025 revenues of an amount that surpassed full-year 2024 levels, partly driven by these development and initial supply activities.

• Daimler Truck/Torc: Initial InnovizTwo sensors were planned for supply by the end of 2025 to support the OEM's Level 4 autonomous trucking data collection fleet in North America.
• Top 5 Passenger OEM: The SoDW agreement facilitates a smooth ramp toward a planned data collection campaign.

The Q2 2025 revenue was $9.7 million, contributing to the H1 2025 total revenue exceeding 2024's full-year revenue.

Finance: review the cash burn rate against the NRE milestones by next Tuesday.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Channels

You're looking at how Innoviz Technologies Ltd. gets its high-performance LiDAR sensors and software into the hands of customers, which is a mix of direct relationships and manufacturing scale. It's not just one path; it's tailored for the high-stakes automotive world and the emerging industrial sector.

Direct sales organization for global automotive and commercial vehicle OEMs.

Innoviz Technologies Ltd. operates as a Tier-1 direct supplier, meaning they deal straight with the big Original Equipment Manufacturers (OEMs) for their core automotive business. This direct channel is crucial for securing the large, multi-year production commitments they are targeting. For instance, they were selected by a major commercial vehicle OEM for future series production of L4 Class 8 autonomous trucks, and they have already started shipping units to that OEM for their data collection fleet. Furthermore, a development agreement was signed in June 2025 with a Top 5 passenger automotive OEM for their Level 3 global production vehicle program, which is slated for Start of Production (SOP) in 2027. This direct engagement model is also evident in their work with Volkswagen, where Innoviz Technologies Ltd. is accelerating LiDAR deliveries to equip hundreds of ID. Buzz AD autonomous shuttles, with each shuttle requiring 9 InnovizTwo LiDARs.

High-volume production line managed by Fabrinet for unit fulfillment.

To handle the volume required by these OEM deals, Innoviz Technologies Ltd. wisely partnered with Fabrinet (NYSE: FN) as the chosen manufacturing partner for the InnovizTwo LiDAR product platform. This partnership is designed to enable efficient, cost-effective, automotive-grade mass production. A key milestone was hit in July 2025 when the first InnovizTwo LiDAR units shipped from Fabrinet's high-volume production line. Fabrinet's facility successfully passed rigorous audits under the German automotive VDA 6.3 standard, which is a big signal of quality assurance for their automotive customers. As of July 2025, units are shipping from both Fabrinet and the company's headquarters to support various customers.

Distribution channels for non-automotive and industrial applications (InnovizSMART).

The company is actively expanding its reach beyond just vehicles with the introduction of InnovizSMART. This product line leverages their automotive-grade LiDAR for industrial applications. They are seeing ongoing traction with InnovizSMART in these non-automotive spaces. The target areas for this channel include Security, Mobility, Aerial, Robotics, and Traffic Intelligence. This diversification helps spread the revenue base, which is a smart move.

Direct shipments of development units to new and existing customers.

A significant portion of the early-stage revenue comes from direct engagement funding through Non-Recurring Engineering (NRE) services, which involves direct shipments of development units. These NRE payments are essential for funding operations leading up to the expected SOP for several customer projects in 2026. The NRE payment plan with key customers was expanded to approximately $95 million, up from an initial $80 million, with expected cash payments spanning 2025 through 2027. Specifically, over $40 million of the original plan was expected in 2025. By the end of Q3 2025, the company had already booked over $20 million in NREs year-to-date, leading them to raise the full-year 2025 NRE bookings target to $30-$60 million. These NRE revenues are incremental to the revenues from ongoing LiDAR unit sales.

Here's a quick look at the financial flow supporting these channel activities as of late 2025:

The direct sales approach for automotive OEMs, backed by the high-volume manufacturing capability with Fabrinet, is clearly the primary fulfillment channel for the big contracts. The InnovizSMART segment provides a necessary diversification channel, and the NRE structure helps fund the development units needed to secure those future high-volume automotive orders.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Customer Segments

You're looking at the core groups Innoviz Technologies Ltd. is targeting with its LiDAR platforms as of late 2025, which is a mix of established automotive programs and emerging industrial traction.

The financial performance in 2025 clearly shows the impact of securing and progressing these segments, with year-to-date revenues significantly outpacing the prior year.

Innoviz Technologies Ltd. is focused on several distinct customer groups, leveraging its automotive-grade hardware across different autonomy levels and new markets.

Global Passenger Automotive OEMs for Level 3 (L3) autonomy programs.

• Secured a Statement of Development Work (SODW) agreement in June 2025 with a Top 5 passenger automotive OEM.
• This L3 program is for a global production vehicle slated for SOP in 2027.
• Progress continues with existing L3 customer programs, including one with VW.

Commercial Vehicle OEMs (e.g., Daimler Truck) for Level 4 (L4) autonomous trucking.

This segment saw a major win announced in late 2025, confirming a Tier-1 supplier role for series production.

• Selected by Daimler Truck and Torc Robotics as the Short-Range LiDAR supplier for series production SAE Level 4 autonomous Class 8 semi-trucks, announced December 2, 2025.
• Innoviz Technologies Ltd. is planned to supply first units of its InnovizTwo sensors to support the OEM's data collection trucking fleet this year (2025).
• The deployment is planned across highway and regional routes in North America.

Autonomous Mobility Providers (Robotaxis, shuttles) requiring L4 sensors.

The company is encouraged by the acceleration in this area, with specific production volumes already in motion.

• Progress is being made on L4 automotive programs, supported by the 'dramatic acceleration of robotaxi deployments around the world.'
• Accelerated LiDAR shipments to Volkswagen for their ID. Buzz AD autonomous shuttles.
• Each ID. Buzz AD shuttle will be equipped with 9 InnovizTwo LiDARs.

Industrial and Non-Automotive sectors (security, logistics, smart cities).

Innoviz Technologies Ltd. is actively expanding its reach beyond automotive with a specific product line.

• Introduced the InnovizSMART, which brings auto-grade LiDAR to industrial applications.
• Targeted industrial areas include Security, Mobility, Aerial, Robotics, and Traffic Management.
• The company is seeing ongoing traction with InnovizSMART in non-automotive applications.

Finance: draft 13-week cash view by Friday.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Cost Structure

You're looking at the cost side of Innoviz Technologies Ltd.'s business as they push toward volume production. Honestly, the cost structure is heavily weighted toward the future and scaling up current products right now.

The investment in future technology remains a significant cost driver. This covers high R&D expenditure on future LiDAR generations, like the unveiled Innoviz Three, and the associated perception software development. For instance, Research and Development expenses in the second quarter of 2025 were $13.2 million. This shows a clear commitment to staying ahead, even while managing current operational costs.

Manufacturing and Cost of Goods Sold (COGS) are becoming more prominent as they ramp InnovizTwo production. You see this reflected in the gross margins, which were approximately 15% in the third quarter of 2025. This margin is expected to vary based on the timing of the product ramp and Non-Recurring Engineering (NRE) payment fluctuations. Shipments from Fabrinet's high-volume production line increased roughly an order of magnitude in Q3 2025, directly impacting COGS as they fulfill orders, such as those for Volkswagen's ID. Buzz AD shuttles.

Operating expenses are being managed aggressively, focusing on commercialization efforts now that key development milestones are met. To be fair, the focus on efficiency is showing up in the numbers. Here's a quick look at the recent operating expense trend:

Personnel costs are a component of those operating expenses, and they've been actively managed. Innoviz Technologies disclosed plans to reduce its employee headcount by approximately 9% as part of a strategic realignment in the first half of 2025. This move was part of a broader effort to streamline operations and accelerate the path to profitability.

The financial impact of that realignment is concrete. The optimization actions are expected to reduce the annualized cash outlay by approximately $12 million. They anticipated achieving the full run-rate savings by the end of the second quarter of 2025. This cost control is evident in the cash burn figures; cash use in operations and capital expenditure in Q2 2025 was only about $7.3 million, though the cash used in Q3 was approximately $14 million. The company ended Q2 2025 with approximately $79.4 million in liquidity.

You should keep an eye on a few key cost-related items going forward:

• Continued high investment in R&D for next-generation platforms like Innoviz Three.
• Variable COGS tied to the scaling of InnovizTwo production volumes.
• The impact of the 9% workforce cut on future operating expense levels.
• The realization of the full $12 million annualized cash outlay reduction.

Finance: draft 13-week cash view by Friday.

Innoviz Technologies Ltd. (INVZ) - Canvas Business Model: Revenue Streams

You're looking at how Innoviz Technologies Ltd. actually brings in the money as we move through late 2025. It's a mix of upfront engineering work and the eventual hardware sales, which is typical for this kind of deep-tech automotive supplier.

The company reiterated its full-year 2025 revenue guidance, setting the expectation at $50-$60 million. Honestly, that's a big jump, representing more than 2x the revenue seen in the full year 2024, which closed out at $24.3 million.

A significant part of the near-term revenue comes from Non-Recurring Engineering (NRE) fees. These are payments for the design, adaptation, testing, and validation work needed to integrate their LiDAR into a customer's specific platform. Innoviz Technologies Ltd. raised its NRE bookings target for 2025 to a range of $30-$60 million. This is supported by cash payments from expanded NRE payment plans; for example, Q1 2025 revenues hit a record $17.4 million, driven significantly by these NRE services.

Here's a quick look at the key financial targets and results driving the revenue streams:

The core of the business, naturally, is the sales of the LiDAR units themselves. You see revenue coming from two main product lines:

• Sales of the automotive-grade LiDAR units, specifically InnovizOne and InnovizTwo, flowing to automotive OEMs and Tier-1 customers.
• Sales of InnovizSMART units, which target non-automotive and industrial applications.

For the automotive side, the deployment schedule is key. Innoviz Technologies Ltd. is accelerating LiDAR shipments to Volkswagen Autonomous Mobility for the ID. Buzz AD shuttle, which uses 9 InnovizTwo LiDARs per vehicle on the Mobileye Drive platform. Also, the InnovizOne is powering the L3 Personal Pilot in the BMW 7 Series. The InnovizSMART product is positioned for smart applications like security, robotics, and traffic management, opening up non-automotive revenue channels.

To be fair, the NRE payments are crucial for near-term cash flow, but the long-term value is in the unit sales ramping up. The expanded NRE payment plan now sits at approximately $95 million, with the majority of those cash payments expected across 2025 and 2026, which will supplement the unit sales revenue.