Joby Aviation Aktie

Greetings, and welcome to Joby Aviation's First Quarter 2026 Financial Results Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Teresa Thuruthiyil. Please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's first quarter 2026 financial results conference call. I'm Teresa Thuruthiyil, Joby's Head of Investor Relations. We will begin today with prepared comments from JoeBen Bevirt, Founder and Chief Executive Officer; and Rodrigo Brumana, Chief Financial Officer. For the Q&A portion of today's call, we will also be joined by our Executive Chairman, Paul Sciarra.

Please note that our discussion today will include statements regarding future events and financial performance as well as statements of belief, expectation and intent. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to our filings with the SEC and the safe harbor disclaimer contained in today's shareholder letter.

The forward-looking statements included in this call are made only as of the date of this call. And the company does not assume any obligation to update or revise them. Also during the call, we will refer both to GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our Q1 2026 shareholder letter, which you can find on our Investor Relations website, along with a replay of this call.

With all of that said, it's my pleasure to turn the call over to JoeBen.

Thank you, Teresa, and thank you, everyone, for joining us today. It's been less than 10 weeks since we last spoke. But despite the short window, I'm pleased to report that it's been another exceptional quarter of progress across all core areas of Joby's business. Perhaps the biggest news of the quarter was the selection of states that will participate in the White House-backed eIPP program. This program paves the way for us to bring our aircraft and service directly to U.S. communities this year ahead of FAA type certification. And to speak frankly, we were awarded this dream slate of opportunities.

We were selected as part of 5 applications covering 11 states, including Texas, New York and Florida. Each of the selected programs is now in the process of finalizing an OTA agreement with the FAA and the Department of Transportation. These agreements are flexible R&D contracting mechanisms that enable faster and less restrictive collaboration than traditional federal contracts. They will define the scope, roles and time lines for what happens next, but our work has already begun.

In New York, we're progressing with the installation of Joby charging infrastructure at both Eastside heliports. And the Port Authority of New York and New Jersey recently released a solicitation for a vertiport on the LaGuardia Airport Terminal C parking garage roof. In Texas, we've secured our MRO facility to support operations in the region. And in Florida, we've been working with Orlando International Airport on the development of a dedicated vertiport for air taxis.

In other states like North Carolina, Utah, we're planning how to begin autonomous cargo flights using our Superpilot technology. Importantly, we're also already showing that we have the technical and operational maturity required to participate in the program.

Alongside flying our first FAA conforming aircraft for TIA this quarter, we conducted a series of demonstration flights in the Bay Area and New York. During those flights, we landed at 2 major international airports, Oakland and JFK. We flew to 3 Manhattan heliports. We operated within Class B airspace, which surrounds our nation's busiest airports. And we demonstrated our ability to charge in a range of different environments.

The New York flights, in particular, took our demonstrations to the next level by connecting JFK with the Wall Street Heliport, the West 30th Street Heliport and the East 34th Street Heliport. We not only demonstrated real-life use cases flown by our Blade customers today. We also completed the first ever flight of an eVTOL aircraft between an international airport and a downtown Heliport.

And as they say, if you can make it in New York, you can make it anywhere. Whether it's flying past the Statute of Liberty or the Golden Gate Bridge, these flights demonstrated without question that we have the aircraft, the team, the tools and the experience required to make the most of the eIPP program. But that maturity hasn't come overnight.

Our first transition flight with this design was way back in 2017. The success you are seeing today is the culmination of years of careful work in developing, testing and producing mature VTOL-capable aircraft. And that maturity will be key to delivering real VTOL passenger operations as part of the eIPP program.

But to do that, you also need infrastructure. And I'm pleased to report we're making excellent progress on that front, too. Our New York demos highlighted the incredible value of the landing sites and lounges we gained access to as part of our Blade acquisition, which includes America's 3 busiest heliports.

In L.A., we announced a partnership with the Ruben Brothers to bring a vertiport to the iconic towers at Century Plaza. In the Bay Area, we announced a partnership with the SAP Center to develop a vertiport in a key San Jose location. And in Dubai, we celebrated the completion of the first ever purpose-built commercial vertiport located right next to Dubai International Airport. It will serve as the operational hub for our services in the region.

These are the first of multiple infrastructure developments and partnerships you'll be hearing about as our recent demonstration flights and eIPP opportunities accelerate conversations with partners around the world.

Over the last few years, we have set ourselves apart. Thanks to the maturity of our aircraft design and our progress through certification. But as we scale production to meet the demands of our early markets and the eIPP program, it's clear that our head start on manufacturing will be equally important.

The experience we are already building in certifiable production processes, production efficiency, supply chain optimization and inventory management are all going to be just as important as the technical and certification lead we've built over the last few years.

By producing more aircraft, we'll be able to serve more markets and more customers, enabling us to access progressively lower unit costs ahead of our peers. To put our ramp into context, we are adding a third shift to our composites layup team and our automated fiber placement team. We're training batches of new technicians each month. And our composites team is already producing 2.5x the volume of parts it was producing this time last year.

But it's not just about volume. It's also about quality and to some extent, speed. We aren't building prototype parts anymore. We're building conforming parts for a conforming aircraft. And we're seeing incredible results as we ramp production.

As we move from producing composite parts for our first conforming aircraft to our fifth conforming aircraft, we have the time required to produce parts while simultaneously improving quality. Today, we're producing parts for our ninth conforming aircraft. And we continue to do all of this with Toyota at our side.

We're embedding the knowledge and experience of the Toyota production system as we go, including practices such as Gemba Walks, where you observe work directly on the factory floor and Obeya rooms that centralize project information to accelerate decision-making and foster collaboration. This kind of day-to-day collaboration and knowledge sharing is invaluable as we ramp production. And we're incredibly fortunate to be learning directly from such an experienced automaker.

On certification, we remain focused on the fifth and final stage of the type certification process and are making strong progress. During the quarter, we successfully completed our SR3 audit with the FAA, a milestone years in the making. The audit reviewed our aircraft design and safety requirements, test results and development standards and confirmed that the test results we are producing meet the FAA's expectations for the final phase of certification.

This achievement, along with so much of what we've discussed today, is testament to the incredible work our teams have done over the last 5 years. And I'd like to take this opportunity to thank Didier for his remarkable contributions. He will be with us through early July and will continue to support us as an adviser after that. As we look ahead, we are promoting a number of our leaders to optimize our organizational efficiency and velocity.

Looking more broadly across our product platform. We also completed full transition flights with our turbine electric VTOL aircraft during the quarter, including a 148-mile flight at our max takeoff weight of 2,400 kilograms. As a reminder, this aircraft is built on our standard electric S4 platform and introduces a gas turbine for increased range and payload.

Achieving transition is one of the hardest technical challenge faced in the development of this technology. But by using our existing platform, our own core technologies and our experienced team, we've been able to deliver it in record time. That allowed us to demonstrate its maneuverability and endurance to the U.S. Army last month alongside our partner, L3Harris.

There are live contract opportunities in this space today with clear capability gaps and strong demand for this type of system. That same operational experience and aircraft maturity is key to the partnership we announced with ASI or Air Space Intelligence last month. ASI has quietly built a reputation as a true leader in airspace modernization with their high fidelity 4D modeling and AI tools. And they are 1 of 3 companies currently competing to provide the software foundation for the FAA's brand-new air traffic control system.

While our aircraft was designed to operate comfortably within the current system, we have always believed there are better ways to deliver higher volume eVTOL operations. And we are very excited about the ongoing work to modernize air traffic control led by Secretary Duffy.

Alongside ASI, we plan to run real-life demonstrations of how scaled operations can be safely integrated into complex and high-traffic airspace later this year. This work is also an important step towards fully autonomous eVTOL operations.

With our Superpilot stack, we already have the technology to do this. What's been missing is an airspace management system that allows for fully digital deconfliction of the airspace. Our work with ASI should help pave the way for this important next step. And if it's successful, it should mean safer, lower-cost aerial transportation for eVTOL and every other aircraft that uses U.S. airspace.

We closed out the first quarter with a very strong balance sheet, incredible progress across all areas of our business and the clearest path we've ever had to beginning passenger operations. With our recent New York and San Francisco demos behind us and the eIPP program ahead of us, communities across America aren't just reading about the future of flight or hearing about it on calls like these anymore. They're seeing it in the skies above their own cities.

And as I said to our team, when we rang the opening bell at the New York Stock Exchange last week, just half a mile from where our aircraft landed an hour later. We are quite literally ringing in the next golden age of flight.

Rodrigo, over to you.

Thank you, JoeBen, and good evening, everyone. As JoeBen just described, Q1 was a quarter of steady progress. Last week in New York, I had the privilege of meeting many of you in person, including investors and analysts joining this call today. Together, we witnessed something remarkable. Successful flight demonstrations connecting Wall Street in Midtown to JFK in minutes, real aircraft flying real routes, all made possible through our Blade infrastructure in partnership with the FAA, local government and key infrastructure partners. It was a glimpse of the future. And I could not be more excited to be a part of this team.

The moments like that don't happen by accident. They are the result of years of deliberate investment and disciplined execution. And from a finance perspective, my job is to ensure that continues by funding certification, scaling manufacturing and supporting commercial launch, while preserving the financial flexibility to execute. What you saw in New York last week and in the Bay Area the month before is the combination of deliberate investment and disciplined execution, producing tangible progress in the market.

Now let me walk you through our first quarter financial results in more detail. We entered 2026 with a strong momentum on the balance sheet. We ended the first quarter with approximately $2.5 billion in cash, cash equivalents and short-term investments, including $1.3 billion in net proceeds raised during the quarter from our equity and convertible offerings and warrants exercised by Delta Airlines.

Our Q1 use of cash, cash equivalents and short-term investments, excluding net proceeds from Q1 capital raises, totaled approximately $195 million. This includes $32 million of net purchase cost for our new Ohio manufacturing facility after financing. The gross purchase price was $62 million. And we financed roughly half of that at attractive terms, bringing the net cash impact for the quarter to $32 million. Excluding that onetime purchase, consistent with how we communicated our first half guidance, Q1 cash use was $163 million compared to $157 million in Q4. Additional detail is available in our Q1 shareholder letter.

Total property and equipment investment in the quarter was approximately $78 million. Of that, $62 million reflects the gross Ohio purchase with the remaining $16 million supporting facility build-out, tooling and production equipment for our manufacturing ramp. Overall, Q1 spend is in line with our first half 2026 guidance of $340 million to $370 million, excluding the onetime Ohio purchase exactly as previewed and we remain on track within that range.

Step back for a moment, the capital deployment you see this quarter reflects the choice to lead, not to follow. We are running a multiyear manufacturing ramp, an active type certification program, a global operations build-out and integration of Blade, all in parallel. Few companies in our industry are in a position to execute all 4 at once. We can because of years of foundational investment. And we can do it sustainably because of the strength of our balance sheet.

On a GAAP basis, we reported a Q1 net loss of $110 million, a $12 million improvement compared to the $122 million net loss in Q4. The sequential improvement was driven by a $33 million noncash favorable change in the fair value of warrants and earn-out shares and $4 million in higher interest income, partially offset by a $27 million increase in loss from operations. As a reminder, the fair value revaluation of warrants and earn-out shares is driven primarily by changes in our share price and can introduce meaningful noncash volatility from quarter-to-quarter.

Revenue for Q1 was $24 million, which was mostly Blade. Compared to Q4, revenue decreased $7 million, reflecting the absence of the onetime revenue we recognized in Q4 for the flight demonstrations in Japan. Blade performance in Q1 was strong. And we are now heading into the seasonal ramp with Q2 typically building as weather improves to a Q3 peak. Service levels and customer demand remained consistent. And Q1 puts us on a solid trajectory for our full year revenue guidance of $105 million to $115 million.

Total operating expenses for Q1 were $258 million compared to $238 million in Q4. The $20 million increase was primarily driven by continued investment to support certification, manufacturing ramp and commercial readiness. Adjusted EBITDA, a non-GAAP metric that we reconcile to net income in our shareholder letter was a loss of $179 million in Q1 compared to a loss of $154 million in Q4. The $24 million sequential change reflects the revenue and expense dynamics I just described.

Taken together, the capital deployed in Q1 reflects deliberate investment in the capabilities that set Joby apart, advancing certification, scaling manufacturing in California and Ohio and building the foundation for commercial launch. Q1 was a quarter of steady execution. And as the flights in New York and in the Bay Area demonstrated, our progress is increasingly visible, not just on the certification pathway, but in the skies above our largest cities. We have the balance sheet to leave and the discipline to do it well.

Thank you for your continued support. And Operator, please open the call for questions.

[Operator Instructions] The first question we have is from Kristine Liwag of Morgan Stanley.

JoeBen, Paul, Rodrigo, Teresa, it was really inspiring to see the Joby aircraft land in front of me my own eyes at the West 30th Street vertiport last week. So thank you for that. I guess with the very visible progress of Joby with eIPP, can you talk about what kind of conversations you're having with incremental customers? Because as you guys touched on your prepared remarks, the future is here. All the years of hard work that you've had is really coming to fruition and you have these capabilities occurring now.

And so as these kind of firm up in what people could see the true mission of this, can you talk about those customer conversations? And how quickly do you think those potential orders could materialize?

Thank you, Kristine. So first, I think the experience for folks in New York was really indicative. And the excitement was really indicative of the progress that we're making and the opportunities ahead of us. There are so many customers who are really excited about beginning to use our service.

I think the next element of that, I think you're referring to is sales of aircraft. And as Paul has talked about a number of times before, that's certainly a lever that we can choose to pull as we desire. There is a huge amount of demand from many international markets. And we may dial that depending upon the market.

And then I think the third area where we're really seeing momentum and opportunity to capitalize on the demonstrations we've been doing and the momentum around eIPP is around infrastructure. And I think that the -- really accelerating those infrastructure conversations and getting more and more takeoff and landing locations built out is a strong opportunity.

And then I would just -- back to your question about aircraft sales. I might turn it over to Paul to touch on the opportunities on the defense side.

Sure. Thanks for the question, Kristine. Yes, I mean, as we've talked about, we've got a pretty deep pool of sort of potential aircraft sales opportunities outside of the U.S. I mean we've talked specifically about Saudi Arabia, also about Japan with our partnership there. So all of those folks are really looking for the same things that we were able to demonstrate in New York, which is an aircraft that is mature. That can sort of meet the mission. And that is essentially supported by both maintenance and pilot training to make those aircraft sort of useful in their markets. So I think the work that we did in New York is certainly positive for the momentum that we're seeing on the sales side of things.

The next question we have is from James Kirby of JPMorgan.

Just for the eIPP, how are you thinking about sequencing the initial aircraft for the program by both location and operation? Is a decision tree that is based off potential revenue opportunity or maybe where infrastructure is already in place? Or is there a regulatory angle to that? Just kind of initial thoughts. I know it's early, just on how you're looking to scale the eIPP.

Thanks so much, James. So I think it's both of those elements. It's about infrastructure. And you have some states that are really moving very rapidly at deploying additional infrastructure and that's -- we're thrilled about that. And then there's also opportunities like in New York, where we already have existing infrastructure and an existing customer base and being able to bring the acoustic signature, the really remarkable acoustic signature of our aircraft to places that are currently quite impacted by helicopter noise, we think, is a massive opportunity. So we do see substantial demand across these eIPP markets. And we're very excited to be ramping our manufacturing as aggressively as we can to deliver on that opportunity.

The next question we have is from Andres Sheppard of Cantor Fitzgerald.

Congratulations on all the great progress. And I echo those thoughts earlier. It was very exciting to see the aircraft in a natural environment. JoeBen, I guess my question, just to build from the last one is around the eIPP. Curious to get your vision on kind of how you see the program starting and kind of ramping up from there.

We know, obviously, it will run for 3 years. We know it will start this summer. We know some of the projects have been selected. There might be a few additional ones. But what we don't know exactly, I guess, is kind of how the program will start. Is it going to be each project at the same time, multiple aircrafts at the same time or kind of rotating. So just curious on kind of how you see the program starting and kind of ramping up and really developing and maturing over these 3 years.

I think our -- the best crystal ball we've got at the moment is that we'll be signing or that agreements will start being signed in Q3. And that as we move into the back half of the year, we'll start to do operations. I would expect operations both for our eVTOL aircraft as well as for our autonomous platforms. And on the eVTOL side, we are, as I mentioned before, ramping manufacturing as aggressively as we can to be able to field as many aircraft into the eIPP markets as we can as we look into the back half of this year and the first half of next year. We'd really like to get those fleets in New York, Florida and Texas built out.

[Operator Instructions] The next question we have is from Savi Syth of Raymond James.

I know you started flying the first kind of conforming aircraft. I was just curious when you think you'll start kind of full credit testing of the aircraft and what things need to transpire to get there?

Thank you so much, Savi. So we are thrilled to have that aircraft in the air. And just as a reminder, this was a monumental lift to build this aircraft with FAA DERs and [ VARs ] intimately involved in the process. Having that aircraft in the air is absolutely fantastic. That's one piece.

The second piece is we need all of the conforming test articles to have been built and then tested and then many of those test reports written and submitted. So those are 2 parallel work streams that we're working on. The next step for the FAA -- or for our first conforming aircraft is for Joby pilots to begin doing testing. And in parallel to that, to get FAA pilots into the simulator and get them trained up.

So really, you can think of 3 parallel work streams. One is the components and parts getting tested. Two is Joby pilots flying the conforming aircraft and doing all the test points in advance of the FAA pilots doing them. And then third is the FAA pilots getting trained in the simulator.

The next question we have is from Chris Pierce of Needham & Company.

Just looking back to the eIPP and production. I mean it seems like the partners in the states are moving as fast as one could hope. I just want to get a sense of are there any bottlenecks you could potentially see on your side, manufacturing, raw materials, production, even pilots that you need to have at the ready in these locations? I just want to kind of get a sense of what you're doing to kind of head off all potential bottlenecks to get as many aircraft out there as possible.

Yes. Thank you so much, Chris. Great question. And I'd like to echo your shout out to the states and the FAA and the DOT for the absolutely phenomenal work that they're doing on this program. We are working very hard on all 3 elements that you mentioned: one, supply chain; two, ramping manufacturing; and three, we made a very early investment in our flight simulator and having that installed now and preparing that for beginning to train the FAA pilots is really speaks to the Joby team and the incredible foresight.

As a reminder, we built that in partnership with CAE. So CAE is the world leader in flight simulators. Joby develops all the flight dynamics and the flight controls that run on that. And CAE provided the hardware. It was an amazing partnership. And we're so excited to start training pilots in it.

[Operator Instructions] The next question we have is from Austin Moeller of Canaccord Genuity.

So just my first question here. What is the status of the production activity time line in Ohio? And do you plan to add shifts there over time as well?

Thanks so much, Austin. The ramp of the team in Ohio is going really, really well. As a reminder, folks, we're doing propeller blade manufacturing there. And we're really pleased with the bring up of that facility. That was the first facility that we purchased in Ohio. We're adding additional components and systems that we're starting to build in that first facility.

In addition, as a reminder, we bought an additional 730,000 square foot facility across the street. And that facility is beginning to get the build-out and preparing that facility for our -- beginning to put production processes into that facility. So it's 2 parallel work streams. One, building the workforce and adding more and more capabilities for our team in Ohio. And the second is building out that larger facility. So really, really pleased with the momentum and the maturity that we're seeing out of the team in Ohio.

The next question we have is from Amit Dayal of H.C. Wainwright.

Congrats on all the progress and good to see the flights starting to take place now. With respect to passenger flights, you've indicated potentially this could take place by the end of this year. I think earlier expectations of these might materialize in the Middle East. But with the situation over there, do you think these flights potentially take place here in the U.S.?

Thank you so much, Amit. So it is very exciting for us to now have 2 shots on goal for passenger flights this year, both in Dubai and as well as in our different eIPP markets. And so I think that's looking very strong that we'll see passenger flights later this year. And for me, this is a dream come true. This is something I've been waiting for, for a really, really long time.

At this time, I'll be handing the call over to Teresa. Thank you, Teresa. Please go ahead.

Thank you, Irene, and thanks to all the analysts who asked questions today. Earlier this week, we invited members of our Reddit community to submit questions. We received a bunch of different questions about eIPP, future stops on our Electric Skies tour and conforming aircraft. So let's jump into a couple of them.

First question asks, how far along are the other FAA conforming aircraft that are in production? How many are in production? What does the timeline look like for FAA pilot testing? JoeBen, do you want to give us a summary of that one?

Yes. So first, in terms of the number in production, as I said in my prepared remarks, we now have parts for 9 aircraft that are beginning to be built. And we have 5 aircraft that we will be using for TIA flight testing. And all of those are progressing well through our manufacturing operation. So this is indicative of the manufacturing ramp.

As I said, we have spooled up our third shift for our composites operation and really seeing great momentum. And just to like put a fine point on it. We are ramping as fast as we can, but with the focus on quality. We really want to drive MCRs, which are nonconformances to 0. We want to be making as many of our parts with 0 defects as we possibly can.

The name of the game in aviation manufacturing is making parts with incredible consistency and quality. And it's incredible to have the Toyota team that has a deep expertise and ethos steeped in quality. The Toyota production system is known around the world for the incredible quality and efficiency that it drives in the manufacturing processes and having Toyota shoulder to shoulder with us has been absolutely phenomenal.

JoeBen, thank you. The next question is about eIPP and the question asked. The purpose of eIPP is for AAM companies, cities and regulators to garner useful information earlier in the development process than would have been previously possible. Can you share any useful information Joby or regulators have learned from Joby's New York City and SSA area tours, including any unexpected public reactions?

Yes, thanks. So the key pieces this really showcased and built on the deep relationships that we've built, whether that's with the EDC and the Port Authority in New York, whether that's with the FAA and the DOT. And the Joby team just knocked it out of the park.

The operations went flawlessly. And we are so grateful for -- I'm so grateful for the Joby team and for the relationships that we've built and the maturity of our processes and with the regulators. I think the thing that stood out for me the most, and I think was really remarkable about the flights was people getting to hear our aircraft for the first time and specifically not hear our aircraft when it flies by overhead.

New York has large numbers of helicopters operating. And the difference in the acoustic profile between a helicopter where you can hear it from a long way away. And our aircraft where it can fly directly overhead and you can't even hear it in a city like New York is really exciting.

And we can't wait to bring our aircraft to New York, to Florida, to Texas. And we're so grateful for the DOT and the FAA for the remarkable work that they've done on the eIPP and very grateful for the states and their incredible execution on this program.

Yes, it really was joy to have the community so involved in these flights that we did last week in New York City. Thank you, everyone, for joining us today. We greatly appreciate your support. Operator, over to you.

Thank you. This concludes today's conference. And thank you for joining us. You may now disconnect your lines.

Greetings, and welcome to the Joby Aviation Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Teresa Thuruthiyil, Head of Investor Relations. Teresa, please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. I'm Teresa Thuruthiyil, Joby's Head of Investor Relations. We will begin today with prepared comments from JoeBen Bevirt, Founder and Chief Executive Officer; and Rodrigo Brumana, Chief Financial Officer.

For the Q&A portion of today's call, we'll also be joined by our Executive Chairman, Paul Sciarra, and Blade's CEO, Rob Wiesenthal. Please note that our discussion today will include statements regarding future events and financial performance as well as statements of belief, expectation and intent.

These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to our filings with the SEC and the safe harbor disclaimer contained in today's shareholder letter.

The forward-looking statements included in this call are made only as of the date of this call, and the company does not assume any obligation to update or revise them. Also during the call, we'll refer both to GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our Q4 2025 shareholder letter, which you can find on our Investor Relations website, along with a replay of this call. With all of that said, it is my pleasure to turn the call over to JoeBen.

Thank you, Teresa, and thank you, everyone, for joining us today. 2026 will mark a key inflection point for Joby. After a year full of rigorous full transition flight testing and meaningful progress across every part of our business, we've begun to shift our focus from how and when we'll go to market to how many aircraft we can produce and where to deploy them.

We are seeing unprecedented demand for what we are building, and we continue to benefit from remarkable support from governments, real estate developers and infrastructure partners around the world. We plan to carry our first passengers this year in the UAE as part of our 6-year exclusive access to the Dubai market. And here in the U.S., we expect the government's eIPP program to provide us with the opportunity to demonstrate our service in several locations also this year.

Supporting that ambition, I'm pleased to confirm that the first FAA conforming aircraft is now ready to fly, and we have all of the aircraft we intend to use for TIA testing in production. Reaching this point is the result of years of for credit testing at both the equipment and system levels and is proof that our rigorous approach to design and certification is paying off.

On certification, more generally, we continue to make excellent progress, posting a record 18-point increase on the FAA side of the Stage 4 of certification. This progress is evidence of both the FAA's commitment to certifying eVTOL aircraft and the maturity of our design. It sets us up to focus on the fifth and final stage of the type certification process as we look ahead to FAA pilots flying our aircraft later this year.

And as we build momentum towards market entry, demand for our aircraft and our service has never been higher. Just this quarter, we completed a demo flight alongside Toyota at Mount Fuji and confirmed our participation in an Nomura-led real estate consortium that's working to bring air taxis to Tokyo.

We signed an MOU with Red Sea Global and The Helicopter Company, a PIF-backed local operator to establish a test stone for pre-commercial operations in Saudi Arabia. We signed a letter of intent to sell aircraft and services valued at up to $250 million to Kazakhstan.

And in Dubai, we completed our first point-to-point flight and announced the first 4 nodes in our initial network with 2 of those vertiports nearing completion at Dubai International Airport and the American University of Dubai.

At home in the U.S., we signed an agreement with Metropolis to develop 25 Vertiport sites, and we partnered with communities nationwide to support applications for the eVTOL Integrated Pilot Program, or eIPP, championed by the White House. This program has the potential to materially accelerate the commercialization of advanced air mobility in the U.S. and has already created tremendous interest across the country, including in key markets like Ohio, Florida and Texas.

Next week, we are expecting the DOT to choose at least 5 locations where mature aircraft designs like ours will be able to launch operations this year, helping make eVTOL real for the American public. The program is expected to allow commercial cargo and medical services as well as passenger operations, which could also be delivered commercially in due course.

The eIPP program could not be a better time for Joby as we fly our conforming aircraft and enter the final stage of certification. It's also one of the key reasons that we've decided to scale manufacturing now so that we're ready to serve the incredible demand ahead.

In January, we signed an agreement to purchase a 728,000 square foot production facility in Dayton, Ohio. This facility will complement our recent growth in California and will support our plans to again double production to 4 aircraft per month in 2027. Dayton was home to the world's first aircraft factory, and we're proud to carry that legacy forward as we build the next generation of aircraft just down the road from Wright-Patterson Air Force Base, famous for its commitment to aerospace innovation.

Over the last 6 months, we've raised nearly $1.8 billion, which combined with our existing cash balance, gives us the capital we need to deliver on our plans for scaling production. And I'm pleased to say we enjoyed the support of investors, old and new, including continued support from long-term shareholders like Baillie Gifford as well as funds and accounts managed by Counterpoint Global at Morgan Stanley Investment Management for which we're deeply grateful.

Their conviction in what we're achieving was matched by many of our other key partners during the quarter. With Delta Airlines, we met a key warrant milestone on the road to commercialization, after which they exercised the first tranche of their warrants as part of our deepening partnership. And just this morning, in Dubai, we debuted the Joby Uber in-app experience, showcasing how riders will be able to seamlessly book a Joby air taxi using the Uber app, building on last year's announcement that our Blade service will also be integrated into the Uber platform.

Meanwhile, we continue to plan for a strategic manufacturing alliance with Toyota as we look ahead to scaling production. With the expansion of our California facilities, we redesigned our assembly footprint and production processes to align with Toyota production system principles.

Through a nearly 50% reduction in the movement of people and parts, we're streamlining our composite materials production flows, improving efficiency and positioning our system for scalable growth. This quarter, we also flew our turbine electric autonomous VTOL aircraft for the first time, just 3 months after we announced the concept alongside a new partnership with L3Harris.

This demonstrator builds on our fully electric air taxi platform and integrates a hybrid turbine powertrain alongside our Superpilot autonomy stack. Getting the aircraft airborne in such a short period of time is testament to the vertical integration that sits at the heart of Joby, and we look forward to taking part in operational demonstrations with government customers planned for this year.

With all of this progress, 2026 promises to be a very special year for Joby and for our wider sector. America has been a world leader in aerospace innovation since the Wright Brothers' first flight. And in this, our 250th year, we have the opportunity to once again set the pace and the standard for the world.

The U.S. government continues to lean in with bipartisan Aviation Innovation and Global Competitiveness Act helping ensure the FAA applies the critical certification and integration resources needed to bring advanced air mobility to market. The U.S. has also taken bold steps to modernize and accelerate upgrades to the nation's air traffic control system.

While we've designed the Joby aircraft to integrate seamlessly into today's airspace, these improvements will help ensure the system is ready for us to scale our service. A couple of weeks ago, we demonstrated the potential of advanced air mobility in our home market with an aircraft bearing the logo of America 250, we flew from our base in Marina across the Monterey Bay, past our headquarters in Santa Cruz to land back where it all began for Joby in the Santa Cruz Mountains.

That's a journey that I personally drive on a regular basis and which takes at least an hour longer and often much more on the ground. That simple demonstration was a powerful reminder of how quickly advanced air mobility can make a meaningful difference in people's everyday lives, and we look forward to completing similar flights in other cities across America this year as part of the eIPP program.

Much like the early aviation pioneers who traveled from town to town showcasing the promise of flight, we'll be bringing advanced air mobility directly to communities across the country. By conducting flight demonstrations in early markets, engaging local leaders and giving residents a firsthand look at our aircraft, we aim to build excitement, deepen understanding and lay the groundwork for our future service.

Before I hand it over to Rodrigo, I'd like to thank the incredible Joby team and our new Blade team members for a remarkable 2025. And as we look ahead to welcoming FAA pilots to fly our aircraft, carrying our first passengers and scaling our manufacturing, I'm confident that 2026 will be another landmark year for Joby.

Thank you, JoeBen, and good evening, everyone. Q4 capped a year of substantial technical progress, and we entered 2026 with a stronger balance sheet and a clear capital framework. My focus is simple: fund certification, scale manufacturing and support commercial launch while securing our financial runway and preserving flexibility.

As JoeBen said, Joby is at an inflection point in its 18-year history and committed to changing the way people move around. Given the maturity of our program, government support, global demand for our technology and our plans to ramp manufacturing, we took the opportunity to strengthen our balance sheet during the fourth quarter and after. We raised approximately $1.8 billion in net proceeds across Q4 and Q1, and we have positioned the company with the capital required to drive the next phase of execution and scale.

This additional capital bolsters our balance sheet, giving us additional flexibility to advance certification, manufacturing ramp and commercial readiness without being reactive to short-term market conditions. At the same time, we will continue to allocate capital deliberately. Balance sheet strength does not eliminate discipline, it reinforces it.

Now I'll present our fourth quarter and full year financial results in more detail. We ended the fourth quarter of 2025 with cash, cash equivalents and short-term investments totaling $1.4 billion, including $586 million raised through the quarter, reflecting net proceeds from our equity offering and ATM sales. After the quarter ended, we completed a financing that provided net proceeds of approximately $1.2 billion, further strengthening our cash reserves and positioning us well as we enter 2026.

The fundraising attracted both existing shareholders such as Baillie Gifford and Morgan Stanley Investment Management and new shareholders with several institutions committing capital across both the equity and the convertible offerings.

Our Q4 use of cash, cash equivalents and short-term investments totaled $157 million compared to $147 million in Q3. The $10 million increase was primarily driven by continued investment in certification and manufacturing readiness, including higher program spend to support TIA-related activity, market development activities, along with normal working capital movements and timing of supplier payments.

Included in the quarter was approximately $40 million of property and equipment investment, reflecting facility build-out, tooling and production equipment as well as a $3 million investment in our first fully conforming FAA qualified flight simulator developed in partnership with CAE. The simulator is a mandatory component of certification in Part 135 approval.

And because aircraft cannot be sold without an improved pilot training solution, it is directly tied to our ability to generate future revenue. Importantly, FAA qualified simulators take years to develop and require deep aircraft data integration. We begun this work in 2022 to ensure the time of delivery would be aligned with our entry into service time line.

We plan to add a second full motion simulator later this year as we expand the Joby Flight Academy and build a strong pipeline of pilots to support high-volume commercial operations. This is a great example of how we are deploying capital thoughtfully, holistically and with a long-term perspective.

For the full year 2025, use of cash, cash equivalents and short-term investments totaled $539 million, which was within our full year guidance, a testament to our capital deployment discipline. The use of cash in 2025 includes the impact of the Blade acquisition and integration costs.

On a GAAP basis, we reported a Q4 net loss of $122 million, a $280 million improvement compared to $401 million net loss in Q3. The quarter-over-quarter improvement was largely driven by $302 million related to a favorable noncash warrant and earn-out revaluation, partially offset by $25 million in higher loss of operations and the netting of miscellaneous items.

As a reminder, the fair value revaluation of warrants and earn-out shares is driven primarily by changes in our share price and can introduce significant noncash volatility each quarter.

Revenue for the fourth quarter was $31 million, an $8 million increase from Q3, mostly driven by recognizing a full quarter of Blade revenue. The Blade portion of Q4 revenue was $21 million and other revenue was $10 million, reflecting a onetime nonrecurring revenue of about $8 million pertaining to our demonstration flights in Japan for the Toyota event in December.

Total operating expenses for the fourth quarter, which include Blade, were $238 million compared to $204 million in Q3. The $34 million quarter-over-quarter increase was primarily driven by higher certification manufacturing spend, continued staffing to support program milestones and a full quarter of Blade operating expenses.

Adjusted EBITDA, a non-GAAP metric that we reconcile to net income in our shareholder letter, was a loss of $154 million in the fourth quarter compared to a loss of $133 million in the third quarter or a $21 million increase in loss on a quarter-over-quarter basis. The sequential change reflects the revenue and expense dynamics I described before.

As we move into 2026, our approach to capital is disciplined and milestone driven. We are managing our spending to optimize for certification progress, production ramp and commercial readiness. With our full year 2025 results complete, we are updating how we guide cash usage. For 2026, we will guide on a half year basis, which better reflects where we are with the program. We are transitioning from early-stage production into repeatable manufacturing.

As we move up the production S-curve, investment decisions increasingly depend on rank performance, supplier readiness, tooling deployment and operational sequencing. We see this as a natural and positive phase of scale.

For the first half of 2026, we expect to use $340 million to $370 million in cash, excluding approximately $33 million for onetime purchase of the Ohio building we plan to use for manufacturing. The majority of first half cash usage supports core S4 certification and manufacturing readiness.

A smaller portion represents investments that can be sequenced based on milestone progress and commercialization timing. Our recent fundraising enhanced our cash position to execute this plan at pace. As JoeBen stated, we have many timely opportunities this year, including carrying our first passengers in Dubai and opportunities to begin commercialization in the United States in up to 5 states as part of the eIPP program.

As certification progresses, production ramps and commercialization accelerates, we have the flexibility to stage levels of spend while maintaining capital discipline. Following our acquisition of Blade's passenger business last year, we are now providing full year revenue guidance.

For 2026, we expect total revenue in the range of $105 million to $150 million with the vast majority generated by Blade. The Blade passenger business has operated seamlessly since closing with consistent service levels and customer demand. 2026 will remain a year of testing, learning and continued integration into Joby's broader commercial strategy.

As a reminder, the Blade passenger business is highly seasonal with revenue typically peaking in the third quarter during the summer months. We are focused on maintaining operational consistency as we prepare over time to expand the service to incorporate electric air taxis. As we enter 2026, our priorities are clear: advance certification, scale manufacturing responsibly, prepare for commercial launch, deploy capital deliberately.

We believe this approach allows Joby to continue to lead the market with both speed and discipline. Thank you for your continued support. Operator, please open the call for questions.

[Operator Instructions] Our first question is coming from Andres Sheppard from Cantor Fitzgerald.

This is Anand on for Andres. Regarding your revenue guidance for this year, I was wondering, can you give us a sense of how this is comprised? Is this almost all from Blade? And should we expect some seasonality around quarters?

Yes. Thanks for the question. Yes, mostly Blade, like I said in the prepared remarks. And in terms of seasonality, it will peak during the summer months, particularly in Q3. One way to think about it, when you look at historically, Q2 plus Q3 together will be typically around 60% to 65% of the revenue mix.

Got it. And secondly, you're guiding cash use of about $355 million at the midpoint for the first half, and I realize you're not guiding for the year, but I'm wondering if you can help share how we should think about the second half since you're ramping up production? Should we expect a higher cash burn in the second half?

Well, we're transitioning from a prototype manufacturing into a repeatable scaled production. That's primarily the reason that we are guiding. Let me elaborate. We are entering a production S-curve and productivity improves with each unit we produce. But we are very early in that ramp and forecasting the exact slope is challenging and less precise.

Because of that, we do have visibility into the first half, so we're providing a high integrity first half baseline instead of a full year with early stage and less precise assumptions. As we progress and accumulate serial production data, we'll gain greater precision on the second half, and we will update later in the year as we get the ramp developed.

Our next question is coming from Chris Pierce from Needham & Company.

There seems to be this idea out there that the S4 could may be underwhelmed from a passenger or luggage payload perspective. I just kind of wanted to give you a chance to kind of comment around that.

And when you take your test flights, are you putting extra weight in there to confirm sort of the payload that the aircraft can carry? Or is it kind of coming from a mathematical equation at this time? And then how does Bags VIP fit into this equation as well?

Thanks, Chris. This is JoeBen. So the -- we're really pleased with the way the aircraft has come together. Again, the aircraft that we are preparing to fly is the first aircraft that -- in the eVTOL category that has been built and is preparing for TIA flight tests. And we think this is a monster milestone both for Joby and for the industry.

In terms of the capabilities, we've designed this aircraft for service around the metropolitan cities that we're hoping to serve, operating it, for example, layered into the Blade service. And we are very excited about its ability to serve that market.

And in terms of the payload of the aircraft, that is something that we expect to -- we designed the aircraft for a pilot and for passengers, and that's our target. It may take us a bit of time to evolve into that, but we are very pleased with the performance and very excited about beginning the TIA flight test.

Okay. On the eIPP commentary that you gave, I just want to understand, is there a chance for passenger flight in the U.S.? Or is that something investors shouldn't be looking for? Or is that sort of up in the air based on what you hear back in the next couple of weeks from the FAA?

We've been hearing very positive inclinations on that. Again, that may phase in over time. But we see the eIPP as a massive opportunity, and we're very, very excited to be hearing more news very shortly on that from the FAA.

[Operator Instructions] Our next question is coming from Kristine Liwag from Morgan Stanley.

This is Jason on for Kristine tonight. So Joby has been working closely with the FAA on air traffic control to be able to support higher volume in the airspace once we see eVTOLs receive FAA certification.

Can you discuss your role in helping to solve this issue with the FAA and maybe provide some context on what's been solved already versus what work remains in progress?

Thanks a lot, Jason. This is Paul. I'll pick this one up. Look, we are very excited about the now sort of bipartisan effort to modernize the way that air traffic control is managed. As you know, there was $12.5 billion that's been allocated as a sort of first tranche against that. And look, I think the majority of that is going to go to shoring up the existing system that we have.

But the push that we've been making alongside others in the industry is to ensure that there is an opportunity for some of that money to go to next-gen air traffic control, essentially a system that would start with computers deconflicting the airspace and then the human steps in only if there's some sort of issue that's going on.

We think that has huge implications for commercial aviation across the U.S. I mean, we really do think that we should treat our airspace as a national asset and maximizing its utility should be the name of the game. If we can bring down separations, that will increase safety, increase volume for both us and everyone else that's operating that airspace.

And we do think that eVTOL has an important role to play. This is a category that is going to be operating from nontraditional airports where you don't have to worry about legacy equipage because there's not a big existing fleet.

So therefore, we think it's the perfect test ground for some of these new air traffic control concepts. And we've been working with partners across the industry, including some of the folks that have been sort of tasked with the overall ATC modernization effort to work on the right sort of approach on that front.

Now look, we think there's tons of runway with the existing aircraft, train pilots and seat using the existing airspace. But if we have an opportunity to help push the ball forward on a better air traffic control system, we absolutely want to be a part of that.

Our next question is coming from Austin Moeller from Canaccord Genuity.

So just my first question here. I guess you're expecting to fly the first conforming aircraft shortly. I know there were 5 others still in different phases of construction. So I'd love an update on what phases of assembly those are all in.

Austin, thank you for the question. This is JoeBen again. Really pleased with the momentum that the manufacturing team is building. You're going to -- you can expect to see those -- the cadence of those coming off the line with increasing regularity over the next few quarters.

But really, really pleased to see the maturity of the manufacturing line and the maturity of the conforming processes improving each and every day, and huge shout out to the team, so proud of the work that they've done and the work they're doing and also a shout out to all the DERs and DARs who have been doing phenomenal work and also to the Toyota team members who are working shoulder to shoulder alongside of us, both here and abroad.

Okay. And as we think about the FAA pilot starting 4 credit tests later this year, how should we be thinking about the FAA accepting the remaining 3% of the means of compliance? Would that happen around the same time period as that? How should we think about the cadence there?

I think those elements are decoupled. But I think the really key element to highlight and something that maybe we don't spend as much time on is how vitally important all of the component and system level ground testing is. So in parallel to building the conforming aircraft for flight test, which gets a lot of attention, the team and the vertical integration that we've built on our testing process is a real superpower that we have, and the team has just been knocking it out of the park.

So this is on the manufacturing side and on the testing side, manufacturing, building conforming test articles. And these test articles are frequently substantially harder to build than the flight articles because they have designed-in defects that have to get very prescriptively built that are different than the normal manufacturing flow.

And then those test articles with those designed-in defects get tested according to very rigorous test plans that we've already agreed to with the FAA. Another thing that is really worth pointing out is the 18-point increase on the FAA side of Stage 4. This was a monumental achievement, the most progress that the FAA has ever delivered in the quarter for us. We're so, so grateful.

It is a testament to the massive lean in and the attention that we've been getting and also all the hard work that the Joby certification team has done upfront to prepare all of these -- all the certification work and the test plans.

Our next question today is coming from David Zazula from Barclays. Our next question is coming from Savi Syth from Raymond James.

If I might, with the commercial operations as stated in Dubai, I was wondering if you could share kind of general time lines and milestones that are being targeted for this year.

Thank you so much, Savi. So the work is going really well in Dubai. The partnership with the RTA and the work with all of the regulatory bodies in Dubai and the UAE has been going very, very well. As you may have heard, we had a phenomenal event in Dubai today where we announced the integration -- our integration of the Joby air taxi service into the Uber app.

And that was a really phenomenal example of the lean-in that we're seeing from all of our partners, so Uber, Delta and Toyota, are leaned into to a degree which they've never been leaned in before. I think this is one of the things that really makes Joby special is the strength of the partners we have and the degree to which they're behind us and excited about what we're building and excited to be shaping the future of transportation together.

Okay. And maybe if I could follow up on just the payload comments in that it may take time to evolve. Is that a software kind of evolution? Or is that like just a battery evolution to solve for that?

I would say that there are both elements there and as well as other upgrades that we expect to happen over time.

Next question today is coming from Amit Dayal from H.C. Wainwright.

So JoeBen, just on the UAE passenger flight expectations for the end of the year, like what certification requirements need to be followed to accomplish that?

So this work is layering on top of all the work that we're doing for our FAA certification. So completing all of those component and system ground tests that I'm talking about and also building aircraft that are conforming and which we're ready to put paying passengers in. So we have all the pieces in place. As I said, the relationship with the regulators in Dubai and the UAE are really strong. And we think we're in a great position there.

So yes, we think that -- we're very, very excited. And I would also highlight that in addition to Dubai this year, one of the reasons we're ramping manufacturing is because of the incredible demand that we expect to see from the eIPP local markets here in the U.S.

Understood. And then with respect to the vertical build-out here or in the UAE and other markets, how much of the CapEx will be shouldered by folks who are already sort of the developers, I guess? And do you need to -- or does Joby need to contribute to some of that investment as well?

It's Paul. On the UAE specifically, all of the infrastructure is being built out in conjunction with the folks over at RTA. So you've seen, I think, the 2 sites that are currently well underway in terms of development. And there are a number of more that are also sort of coming online in that particular market.

When it comes to the broader infrastructure question in markets outside of the UAE, look, we've got a firm footing of existing infrastructure that we can take advantage of from day 1. Actually, post the Blade acquisition, Blade has staffed 10-plus locations, many of which are in the eIPP geographies. So -- or what we expect to be the sort of eIPP geographies. So that's a really great place to sort of begin those operations.

Now we announced additional partners where there will be opportunities to leverage their resources just this quarter. So Metropolis was announced, and we're going to be developing 25 additional sites with them. That's a large parking garage owner. They have almost 5,000 parking garages across the U.S. with many of those in these eIPP markets that we're going to be targeting in the short term.

So we're going to be working with them to build the next leg of scale of infrastructure sort of beyond that. There may be certain sites where we're using our own capital, but we're going to be really thoughtful and lean far more on the developer ecosystem.

And what's been really exciting, I should mention, particularly post-eIPP is that we now have sort of approximate date certain for eVTOL operations in some of these geographies. So we've had a real pull from developers or potential real estate partners that want to kind of get ahead of that sort of rollout, so more news soon on that front.

Our next question today is coming from David Zazula from Barclays.

Sorry about the difficulties earlier. Could you talk about the aircraft deployment plan this year, including for those in production, where you're planning on deploying and what the expected use is?

Thank you, David. So as I spoke about, I think the massive challenge that sits before us is the manufacturing ramp that we're engaged in. And it's going to be a very significant lift. This is to get the TIA aircraft built and then to deliver aircraft for Dubai and aircraft for the eIPP program.

But the most important piece, as I touched on, was completing the build on all the test articles. And so that really takes precedence on the manufacturing line is ensuring that each of those test articles is coming out in a timely way because that's the gate to getting FAA pilots onto the aircraft.

So that's kind of the sequencing you can think about, but it is a huge lift that the manufacturing team is working through is to get that manufacturing ramped to build those test articles and then to build the aircraft for Dubai and the eIPP.

Very helpful. And then could I ask on the Uber side? How has the integration been on the Blade front? Have there been any challenges there? And then what do you think about the commercial opportunity with respect to that integration in this year and maybe into next?

It's Rob's Wiesenthal, CEO of Blade. Thanks for the question. When this integration gets deployed, which we hope first half this year, when you want to get to the airport, you just have to kind of think about your Blade, not how you get to the departure lounge. It's simple and seamless.

And you just literally, you book your Blade on the Uber app and an Uber ground vehicle picks you up and brings you straight to a Blade lounge, you check in and you're off on your 5- to 10-minute flight in New York to JFK or Newark.

And we not only expect that this is going to result in growth for Blade airport, but as important, in the not-too-distant future, that helicopter icon on that vehicle selector, which will be a helicopter to start will be swapped for Joby eVTOL. And this is a competitive advantage that no other eVTOL OEM has. So we're really excited about it.

I'd like to turn the floor back over to Teresa for further questions.

Thanks, Kevin, and thanks to all the analysts who asked questions today. This week, we invited members of our Reddit community to send in questions as well. We covered many of these already, but I'd like to get in at least one more if we can. And that question is, what's going on with respect to military and medical applications? How is Joby involved? Paul, do you want to take this one, please?

Sure. Yes. So when we think about the overall eIPP footprint that's really set to get announced in just a few weeks, we know that there are going to be 3 components of that. One is going to be cargo, one is going to be medical and the other is going to be passenger. And we intend to obviously deliver aircraft against each of those use cases in as many of the eIPP sites as we're able to deliver against.

We think the medical opportunity is a significant interesting sort of adjacency and frankly, one that has important community impact. So we want to make sure that we prioritize it alongside, obviously, these other 2 opportunities as well.

Regarding the defense opportunity, look, we announced that we would be developing a hybrid autonomous version of the S4 aircraft for defense customers last summer. We progressed to beginning the flight testing of that variant over the fall, and we continue to work on preparing for on-site customer demonstration shortly, followed by off-site customer demonstrations at their facilities in the fall.

I can say that the partnership between Joby and L3 is going great. And I think one of the big significant developments is that we've spent a lot more time with the core customers. So that includes folks like Army, Marines and then to our Navy. And I think we've gotten, and that is not just us, but also the folks at L3, increasing confidence that there are important capability gaps that this aircraft has an opportunity to fill.

What I think is also important to note, and this kind of goes against some of the commentary that folks have been talking about, it's really about finding the right aircraft to fill those capability gaps. Folks don't care if it's a variant of a commercial product. And in fact, the focus of the Pentagon is around dual-use technologies that can be very flexibly fielded. So we think we're in a very strong position with a proven aircraft, with proven manufacturing that is ready to ramp and a strong partner on the missionization front to deliver on this increasingly interesting opportunity.

We reached the end of our question-and-answer session. And ladies and gentlemen, that does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Greetings, and welcome to Joby Aviation's Third Quarter 2025 Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to introduce your host, Teresa Thuruthiyil, Head of Investor Relations for Joby Aviation. Teresa, please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's Third Quarter 2025 Financial Results Conference Call. I'm Teresa Thuruthiyil, Joby's Head of Investor Relations. We will begin the discussion with comments from JoeBen Bevirt, Founder and Chief Executive Officer; and Rodrigo Brumana, Chief Financial Officer. For the Q&A portion of today's call, we'll also be joined by our Executive Chairman, Paul Sciarra; and Blade CEO, Rob Weisenthal.

Please note that our discussion today will include statements regarding future events and financial performance, as well as statements of belief, expectation and intent. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to our filings with the SEC and the safe harbor disclaimer contained in today's shareholder letter. The forward-looking statements included in this call are made only as of the date of this call, and the company does not assume any obligation to update or revise them.

Also, during the call, we'll refer both to GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our Q3 2025 shareholder letter, which you can find on our Investor Relations website, along with a replay of this call.

And with all of that said, I'll now turn the call over to JoeBen.

Thank you, Teresa, and thank you, everyone, for joining us today as we discuss our third quarter 2025 results. The past few months have been momentous for our team, as well as demonstrating the remarkable potential of our aircraft by flying in front of hundreds of thousands of people here at home and overseas, we've also moved the ball meaningfully down the field on certification, and we've passed one of the most important milestones in Joby's history today.

As we announced this morning, we have now begun power on testing of the first of several aircraft we will build for TIA or type inspection authorization. Entering TIA is widely understood as marking the final stage of the certification process and is a very strong indicator of a company's ability to reach type certification. This is the moment when our certification strategy, our intended type design and our manufacturing processes all converge into one physical asset. Let's take each of these in turn.

First, our certification strategy. It might sound simple, but our certification strategy is the result of more than a decade of working alongside the FAA to develop a certification basis, the means of compliance for our aircraft, certification plans and test plans. These are the documents we've been talking about quarter after quarter in these calls, and they are absolutely required to get to TIA.

Second, having a stable design is the result of years of focused engineering and testing using the same design and putting it through thousands of hours of testing on the ground and in the air. If you continue to make changes to your design, you can't enter TIA with a high degree of confidence that you'll complete it expediently.

Finally, on manufacturing processes. This aircraft is one of a series that we are producing under Joby's FAA-approved quality management system. Each of the TIA aircraft, including this one, will be built with FAA conforming components as required by our FAA-approved test plans. Each of the relevant components will be built to FAA DER or designated engineering representative approved designs and then inspected and signed off by FAA-designated airwaves representatives or DAR. This process adds a lot of overhead to the build processes. It's not fast or easy, but it is what's required to start TIA flight testing.

Bringing all of these elements together is a huge achievement and I'm incredibly grateful to the team at Joby and at the FAA for the years of hard work that led up to this moment. We continue to plan for this aircraft to take to the skies later this year, flown by Joby pilots, clearing the way for FAA pilots to start for credit testing next year.

As I mentioned earlier, having a mature and stable design is central to being able to move with certainty and pace through the certification process. And over the past quarter, we've been able to build on that maturity, demonstrating a remarkable cadence of flight testing and demonstration flights as well as continuing to fly several times a day out of Marina where we've demonstrated climbing, descending, accelerating and decelerating all at max rates. We also flew our first A to B mission flying down to Monterey and back. A few weeks later, we participated in the California International Air Show, completing a 20-minute flight that saw us take off vertically, [indiscernible] completed a demonstration that included multiple transitions between forward flight and hover and returned to Marina for a vertical landing.

And we did all this while a separate Joby team completed 2 full weeks of regularly scheduled flights in Osaka as part of the World Expo, demonstrating the aircraft to hundreds of thousands of attendees, including the Japanese Prime Minister and the Governor of Osaka.

The operational rigor and consistency we've demonstrated in completing these flights is a testament to the remarkable team we've built and the maturity of our aircraft. It is also preparation for our future commercial service.

Speaking of which, it was a privilege to fly rider cup fans back and forth from Manhattan to Long Island this quarter via our Blade service. 2.5-hour drives were replaced with 12-minute flights, highlighting the potential of vertical lift to a key audience suppliers. Our Blade team excels at delivering operations at scale, combined with the highest levels of customer service. This operational experience, combined with the maturity of our eVTOL platform puts us in a great position to take on the opportunity presented by the U.S. government's recently announced EIPP program.

Through an executive order, the President has directed the Department of Transportation and the FAA to ensure that mature eVTOL aircraft can begin operations in select markets in the U.S. ahead of full FAA certification.

We are already in advanced conversations with a wide range of state and local government entities who are submitting applications for the program, and we believe that having a TIA-ready aircraft as well as a wide set of operational experience will put us in a very strong position to deliver the high levels of safety the FAA will require to participate in this precertification program.

We see the EIP program pulling early demand for our aircraft forward. Taken alongside the demand we're also seeing from a range of international early adopters, it's clear we'll need to keep accelerating production if we are to keep up with the incredible demand we're seeing for our product. The level of production we are preparing for has never been seen in the aviation industry, and we're incredibly grateful to be working closely with Toyota as we plan and execute for scale. And we've already produced 15x more FAA conforming parts so far this year in Marina than we did in all of 2024.

As well as growing in Marina and adding more than 100 manufacturing roles this past quarter, we've now begun production of propeller blades at our Dayton, Ohio facility. This is a great example of our approach to scaling, where we'll perfect manufacturing processes at home in California before scaling them alongside Toyota.

Before I hand it over to Rodrigo to talk about our financials, I wanted to touch on my excitement for the future of Joby. Our core focus is and always has been the development of our core S/4 platform. That's the aircraft you see flying every day. We've put a huge amount of work into designing it from the ground up, and we've built it in a vertically integrated way. As I've said many times before, this vertically integrated approach is our superpower. Because now that our platform is mature, we're able to move with incredible pace to adapt it to a wide range of use cases and technologies.

Last year, we adopted it to fly with liquid hydrogen, completing a 561-mile flight with water as the only byproduct. I'm confident that hydrogen will play a very significant role in the future of aviation, supporting a wide range of new applications and aircraft types and the experience we've already built in this field puts Joby at the very forefront of innovation.

This year, we announced we would work with L3Harris to develop a turbine electric variant for defense use cases. And I'm pleased to say just 3 months after that announcement, we're already ground testing this aircraft with the hybrid system in the loop, and flight testing is set to begin imminently. In fact, just yesterday, we had the FAA on site working with us to grant [indiscernible] for this vehicle. L3Harris has been a great partner on this journey, and we remain on track to demonstrate the full capabilities of this aircraft in the coming quarters and compete for some of the $9 billion the U.S. Department of War has requested for the acquisition of Resilient, autonomous and hybrid aircraft in the FY '26 budget.

Joby's approach to vertical integration puts us in a unique position to move from concept to demonstration and from demonstration to deployment at a pace that's almost unheard of in today's aerospace industry. And it demonstrates the value of dual-use technologies, allowing us to get new tools into the hands of America's troops as quickly and cost efficiently as possible against the rapidly evolving national defense landscape. That advantage also counts when it comes to autonomy. While our initial air taxi product will launch with a fully qualified commercial pilot on board, I believe, a future where we are able to take the pilot out of the loop is approaching more rapidly than I expected even 6 months ago.

For decades, the principal barrier to commercial autonomy hasn't been technical or regulatory. It's been the way our commercial air traffic control system works. The current system still requires a human being on a radio to speak with another human being to deconflict airspace, file flight plans and confirm departures and arrivals. The current administration has indicated its intent to invest in modernizing this approach, making much needed investment in the infrastructure that controls our skies and laying the foundation for commercial air autonomy to take off much like the adoption of autonomous ground vehicles has.

At Joby, we're making sure we're ready for that step when it happens. Over the summer, the team we brought on board from X-Wing demonstrated our Superpilot AI technology stack as part of a landmark Department of War exercise over the Pacific Ocean. Using a conventional Cessna 208 aircraft, our team logged more than 7,000 miles of autonomous operations across more than 40 flight hours in and around Hawaii, managed primarily from Anderson Air Force Base in Guam, more than 3,000 miles away. Once again, illustrating our commitment to not just talking about innovation, but demonstrating it.

The same technology is set to be supercharged by our recent announcement with NVIDIA. Joby will be the aviation launch partner for NVIDIA's IGX Thor platform, which uses their black well architecture to help ingest extraordinary amounts of data in real time to support an even more performance and safe autonomy stack for our aircraft.

Integrating this level of compute will help us maximize the potential of autonomous flight. We'll be able to deliver autonomous mission management that enables the aircraft to determine, request and follow optimal flight plans while adapting to changes in weather, air traffic control instructions or unexpected events.

It will also support onboard compute processes for high rate data from radar, LiDAR and vision sensors as well as supporting sensor fusion, combining data from a range of sensors to deliver reliable and accurate aircraft state estimation and situational awareness in the most challenging environments. It also establishes a foundation to develop features that enhance operational insight, reliability and performance, including predictive system, health monitoring and digital twin modeling.

We'll be deploying Superpilot on the aircraft we're developing with L3Harris, allowing us to deliver to the government the same tech stack they've already seen successfully deployed on conventional planes. But this time, on a low altitude, VTOL capable aircraft. The testing we complete on this defense-focused vehicle will also feed forward into a commercial AI autonomy stack that we plan to have ready and tested just as soon as the commercial air traffic control system is ready for it.

The level of technological and regulatory progress we're seeing today is unprecedented. And it is matched by an incredible commitment to aerial innovation at both the state and federal level. We've positioned Joby to make the most of these opportunities, and I've never been more excited about the company and the technologies we're building. Rodrigo, over to you.

Thank you, JoeBen, and good evening, everyone. During the third quarter of 2025, we made several important advancements further positioning Joby to create durable long-term value for our shareholders. When we spoke last quarter, I identified 3 areas of focus, implementing a disciplined capital strategy, scaling methodically and translating our technical and regulatory progress into long-term value.

Let's talk about capital strategy first. At Joby, we are shaping a new industry in bringing an entirely new technology to market. This requires substantial efforts across engineering, regulation, partnerships, infrastructure and manufacturing. To achieve this, we are strengthening our balance sheet. At the end of the quarter, we had approximately $978 million in cash and short-term investments. In October, we added net proceeds of approximately $576 million further strengthening our position. This gives us the financial strength to continue to lead the industry and bring new innovations to markets across the globe.

Next is the scaling. We are investing now to build capacity for global air taxi demand. We are methodically scaling manufacturing, and we are very fortunate to have Toyota with us on that journey. As JoeBen said, propeller blades are a critical component in the highest part count on our aircraft. We have started to leverage our Ohio facility to begin ramping our production of propel blades. Ohio has the skewed labor, the supply chain network in this space to scale our production as we grow.

Scaling also means preparing our global operations. Following our acquisition of Blade, we are already running a network of high-frequency routes in New York and Europe, connecting major airports like JFK in prime locations like [indiscernible] Manhattan to the Hamptons. These routes are the blueprint for electrified air taxi service, proving the model today, so we can transition seamlessly once our aircraft is certified. At the same time, in addition to our successful flight demonstrations in Japan with ANA, we also expanded our global partnership with Uber to include Blade services. This opens up a powerful opportunity over time to connect thousands of daily Uber users with the experience of vertical lift well ahead of Joby's commercial launch.

Meanwhile, in Montreal, we formally accepted our first flight simulator developed in conjunction with CAE, a global leader in pilot training systems. This fully immersive simulator is a prerequisite for commercial pilot training, it marks an important milestone in preparing Joby for scaled operations. These efforts are building the foundation for our global network, beginning with Dubai next year and expanding to new markets around the world during our regulatory commercial and technical progress into long-term value.

Now I'll present our Q3 financial results in more detail. We ended the third quarter of 2025 with cash and short-term investments, totaling $978 million. During the quarter, we raised $101 million through our ATM facility and an additional $33 million from warrants that were exercised.

As I said earlier, after the quarter ended, we received net proceeds of $576 million through an equity offering, further increasing our cash reserves. Our Q3 use of cash, cash equivalents and short-term investments totaled $147 million, $35 million higher than last quarter. That was primarily due to an extra payroll run in Q3 versus Q2, growth in operating expenses, working capital changes and onetime costs related to our Blade acquisition, which accounted for $6 million. This spending also included about $30 million on property and equipment, up $1 million from last quarter.

We remain on track to hit the upper end of our full year 2025 guidance of $500 million to $540 million in use of cash, cash equivalents, in short-term investments, and that includes the impact of our Blade acquisition.

On a GAAP basis, we reported a Q3 net loss of $401 million, $77 million increase from Q2, largely driven by $262 million in noncash items, of which $229 million was a noncash charge related to [indiscernible] an earn-out revaluation. The remaining noncash items were related to stock-based compensation, depreciation and amortization, all within the normal ranges. The large noncash revaluation charge related to warrants in earn-out shares was due to the increase in our share price, which negatively impacts the calculation and gets updated every single quarter.

Revenue for the quarter was $23 million, including $14 million in revenue from Blade from August 29 through September 30 and $9 million from other revenue, which includes the completion of all required deliverables as part of our Agility Prime defense contract as well as other engineering services. We do not expect Agility Prime revenue to continue as the work has been completed.

Total operating expenses for the quarter, including about 1 month of late were $204 million, up about $36 million from the prior quarter. The increase was largely driven by the inclusion of Blade operating expenses and acquisition-related costs, coupled with higher staffing and program spend to support key milestones, including progress on the final assembly of our first TIA aircraft.

Adjusted EBITDA, a non-GAAP metric that we reconcile to our net income in our shareholder letter was a loss of $133 million in the third quarter. This was just about $1 million higher than the prior quarter, reflecting the revenue booked in Q3, offset by the increase in spending I called out before. Compared to the same period last year, our adjusted EBITDA loss was $12 million higher, driven by the growth in our team to support aircraft design, manufacturing and certification along with early commercialization investments.

As we look ahead, our focus remains on disciplined execution, advancing certification, scaling production and preparing for commercial launch. With a robust balance sheet, proven technology, mature program, flying aircraft and world-class partners, we are operating from a position of strength. We look forward to many folks at the Dubai Airshow in 2 weeks where our aircraft has been cleared by both, the General Civil Aviation Authority and the Dubai Civil Aviation Authority to fly full transition every single day.

Thank you for your continued support. And operator, please open the call for questions.

[Operator Instructions] Our first question today is coming from Kristine Liwag from Morgan Stanley.

I just wanted to follow up on your progress with your international partners. I was wondering with the early adopters, are you planning to provide commercial service with the Joby aircraft prior to getting FAA certification? Or are you waiting for FAA certification to start flying globally?

Kristine, this is JoeBen. Great to speak to you. We -- I assume you're speaking about Dubai in terms of the international partner, we will -- we're making incredible progress in Dubai. We have aircraft that's there and flying right now. And as Rodrigo mentioned in the prepared remarks, we have permission from the GCA and the Dubai Civil Aviation Authority to be conducting daily flights at the Dubai Airshow. So that's incredibly exciting.

And I think what you're going to expect to see over the course of 2026 is more and more flying there as we deploy more takeoff and landing locations. And we're seeing incredible momentum and amazing support from the local regulators. So in short, the answer to your question is, yes, we continue to expect to be operational in Dubai prior to FAA-type certification.

I see. Great. And for a follow-up, you guys highlighted your progress on autonomous systems with Superpilot, which sounds really interesting. So is this going to be a software that's also going to be added to the Joby Aircraft. And because from my understanding, the Joby aircraft initially would be VFR. So are you adding the IFR capabilities with autonomous systems? Or are you also going to add an expansion to IFR before going to full autonomous, like can you please help me understand the bridging there?

Yes. So thank you so much. This is a huge -- a bunch of -- huge accomplishments on the autonomy front and something that we're really, really excited about. The first, just to reiterate, the Superpilot, the [indiscernible] Superpilot enabled [indiscernible] and flew 7,000 miles around the Pacific as part of the reform pack exercise earlier this year. That demonstrates the operational maturity. We operated that aircraft in a whole bunch of different [indiscernible] of airspace. And really showcased how robust that autonomy platform is. As it comes -- when it comes to taking that autonomy platform and putting it into the -- the S4 platform, that's going to be something that we will do progressively. It's a very step-by-step approach that we're taking. But we do think that it's going to have really significant benefits when it comes to -- on both the safety side and the operational efficiency side. So we're really excited about that.

And we think that, that is built on the foundation of these changes that are -- we're expecting in the air traffic control framework, as I talked about in my prepared remarks. So we're really, really pleased with both the regulatory side of things and the technical side of things, also thrilled to be working closely with NVIDIA and bringing the phenomenal compute capabilities that they've developed to aviation. And yes, [indiscernible] across all the different dimensions on the autonomy progress.

Our next question today is coming from Austin Moeller from Canaccord Genuity.

As part of the EIPP, are there any avenues for you to generate revenue in any way in that test phase with those aircraft? And as a second part, could you generate revenue from flying aircraft in a JV partnership overseas during this test phase?

Austin, this is Paul. So with respect to IPP, this is kind of what's going on and sort of how we think it's going to play out. So right now, we have a number of different applications that we are close to that are in the process of getting filed with the Department of Transportation. Those are going to get filed basically through the end of the year. In the early part of next year, they will then down select to 5 with those starting, we think, in the middle of next year.

Now look, this is a really exciting opportunity for us because it allows us to put aircraft into operation here in the U.S., I think on a far faster time scale at scale, then we might have thought. And it's really one of the things that's driving the focus that J.B. mentioned in the prepared remarks around scaling production to now meet this kind of faster demand than we were expecting.

When we've -- based on what we know now, the application set is pretty broad. A number of them include passenger transport, cargo transport, medevac and certain of them, we think are going to have an opportunity to have a sort of commercial bet. So without having 100% confidence at this point, but we do think there are going to be interesting revenue-generating opportunities that come out of the IPP program.

Regarding your question with respect to JVs, I think the revenue that you may see from those sorts of partnerships would be preorders and/or prepayments for aircraft that were going into those JVs. We announced, obviously, the partnership with ANA in Japan. That is one that could sort of look like that. But I think the real question now is ensuring that we're able to build enough aircraft to meet this broader, faster demand that we saw. So that's why manufacturing is sort of the focus.

Okay. And just a follow-up. Are you going to be able to fly the conforming aircraft in TIA testing as long as the means of compliance remains at 97%? Or does it not matter for proceeding with flight testing in that space?

Yes. Thanks, Austin. So just to be really, really clear here, we are so excited about the progress we're making on building these aircraft for TIA testing. This is the culmination of all the work that we've been doing over more than a decade, and it builds on an incredible foundation of work from both Joby and from the FAA. And as I spoke about, this is heavy lifting from FAA DRs -- FAA, DARs to ensure that as each of these aircraft is getting built that they're getting built in a really meticulous way. So this is a huge moment to be beginning the power on testing of this aircraft.

I will also add that we are building a total 5 aircraft for TIA testing. And all 5 of those are in the production process as we speak. So the momentum we're seeing on manufacturing and scaling manufacturing is really fantastic. The reason this is so important is these are the aircraft that FAA pilots will get in and fly for credit, and that is the -- those are the final stages of our OTC process, like we're doing the heavy lifting. We're doing the work that's required to get us through OTC and it's happening right now. So just can't tell you how proud I am in the manufacturing team, how proud I am of the certification team, how grateful I am to the FAA and their lean in, they're working shoulder to shoulder with us. They were here yesterday, giving us [indiscernible] moving through the [indiscernible] process on the hybrid aircraft, and they're not getting paid, right? So the commitment, the lean in, the passion from these aviation professionals is just really unprecedented and we can't say how grateful we are to all of them.

[Operator Instructions] Our next question is coming from Andres Sheppard from Cantor Fitzgerald.

Congratulations on the quarter. JoeBen, I wanted to maybe go back to the first question just around commercialization. So it sounds like we're still targeting commercialization ahead of FAA certification in the Middle East. Are we able to get more clarity on kind of how you see that unfolding or just in terms of timing or number of aircraft. I think in the past, you had mentioned passenger flights potentially by the spring. So just wondering, is that time line for next year? Is that still on track? Or do we perhaps see maybe pushing into the right slightly?

Andres, great to catch up with you. So the -- the progress we're seeing and the momentum, as I mentioned, in Dubai, was really fantastic, both with the [indiscernible] with the device -- Civil Aviation Authority with the RTA. We've got all the regulators leaned in. Skyports is doing a phenomenal job on moving forward with infrastructure. We have a team there, and we're building out that team, staffing that team, doing the training and putting all the pieces in place, and I'm really excited and grateful for the progress that we're making day in and day out.

In terms of -- we expect to be ramping that operation through the course of this next year. I think the real critical bottleneck is going to be -- and the demand you asked about is very, very substantial there. The bottleneck is going to be how fast we can ramp manufacturing, as Paul was talking about, to meet that demand. And this is where I'm so proud of the team and the progress we're making on scaling production and scaling it alongside Toyota, whether that's in Marina, whether that is the progress we're making in Dayton on Blades. And I think this is the real central pillar of the work that we have in front of us is to scale the manufacturing as aggressively as we can, and we're making great progress.

Got it. Okay. And I guess as a maybe a follow-up for Rodrigo. Are you able to maybe help us understand like how should we think about Blades revenues for Q4 and for the -- I guess, throughout next year, I mean is $22 million in quarterly revenue and 55% gross margin, is that the norm or what's the best way to think about that for maybe next quarter and throughout next year?

Andres, thanks for the question, Rodrigo here. Well, we are not providing any guidance specific for next quarter or next year. However, we would like to point you to what has been said publicly and Blade had a number right before the acquisition on August 29. So essentially, we are not deviating from it.

Number two, let's just remind you that Q4 is when the low season starts. So Q4 is one of the lowest quarter there, and we are happy to have Rob here just to add a little more context here, Rob.

Andres, it's Rob Wiesenthal, speaking. It's been -- performance has been pretty good this summer as you've probably been reading. But I think what's also important to announce is kind of the kind of expansion opportunities that we've taken advantage of. Shortly before this call, we announced a pilot program for our very first commuter route to the public, serving New York suburbanites, who live in Westchester, Bedford Rye, [indiscernible] flights that go between [indiscernible] Airport in Manhattan that turns a 1.5-hour drive during rush hour into a 12-minute flight. You can fly with the commuter pass versus little as $125. It'll be a 5-day a week service. It's actually our very first public commuter route.

And that's important because the industry has been very much focused on airport flights, which is clearly an important use case. We've been doing it for over 6 years, but it was really time for us to kind of expand our service offerings to include commuter roots. And once the Joby aircraft is certified, we expect new landing zones to be approved and activated, which will offer even more convenience to people who work in big cities. And we're going to see more of this in the future. We already have pods of communities [indiscernible] New Jersey on the Jersey Shore where people fly to work there in back every morning, that's a 2-hour drive that comes a 15-minute flight. So we're very excited about the prospects of expansion under Joby's ownership and things are off to a great start.

Next question today is coming from Savi Syth from Raymond James.

Just a follow-up on one of Austin's questions earlier, just around certification and the shutdown as well. Just the TIA -- the flight that your aircraft that you're building and doing ground testing right now, is that the one that would be flying? Do the propellers kind of get added back? And then what exactly can you do with that aircraft in TIA testing while the government just shut down? It sounds like, as you pointed out, [indiscernible] coming in and doing certain things. But I was curious what you can and cannot achieve during this time?

Savi, this is Paul. So thus far, we've got an incredible lean-in from the FAA even during the shutdown. That included, as JB mentioned, I think, in the prepared remarks, having their FAA airworthiness folks here on site to do the checkout for the hybrid version of the aircraft. That's actually still ongoing today. And these are folks that are showing up without getting paid. So we're really obviously sort of grateful for their work on this -- in this sort of difficult period.

When it comes to the progression of the TIA aircraft, look, we're going to be doing the power on checkout, progressing then to Joby piloted flights and then moving from there to FAA highlighted flight testing for credit on that vehicle. Right now, we don't necessarily anticipate that the FAA flight test pilot portion of that testing is going to be delayed by the shutdown, but this is obviously still a very much evolving process. And we have been very pleased with the lean that we've gotten. But like if this shutdown persists longer and longer, there's certainly some uncertainty on how that's going to play out. But from the Joby standpoint, we just want to make sure that we're ready with the right aircraft, ready with the training for those pilots and then ready to begin the FAA flight testing just as soon as we can.

That's very helpful, Paul. And maybe if I can just follow up on that then. I think the rule of time is once you start TIA flight testing, it's about 1 year, 1.5 years from there to full certification. Just how much of that happens with kind of the Joby pilot, which versus kind of when do the FAA pilots going to step in and do that part of the testing?

So this fall, I guess I'll pick that off. Look, the timing of the TIA flight test portion is sort of variable depending on the program. And we've obviously got a plan that we're sort of working with FAA that includes 5 different aircraft that are going to be flown in various levels of parallelization to try to speed that process up as quickly as we can. As JB mentioned, all 5 of those aircraft are in some part of production at this moment. And obviously, the first one of those is sort of in this power on stage as we get ready for its first flights.

With respect to how much time is spent with the Joby pilots versus the FAA pilots. As a general rule, we want to make sure that we are doing the things that we need to do for FAA for credit flight testing internally before we do them with FAA pilots in sea. Much of that work has already been done on other versions of these aircraft. So it's really about making sure that we have those TIA aircraft ready at the right time. And in turn, we line that up with the availability of the FAA flight testing pilots. And that's going to be the sort of synchronization that we have to manage, starting basically now.

Our next question today is coming from Bill Peterson from JPMorgan Chase & Company.

This is Mahima on for Bill. I was curious, how should we think about the pace at which you'll move across the Stage V certification progress once TIA testing starts? And should we really start to see that acceleration beginning next year as soon as you get the FAA pilots on board?

Thanks, Mahima. So we're really excited to get into TIA, as Paul talked about. The other element and a key piece to be cognizant of is the way we built our reporting on Stage 5 is that we will get points on the board when we submit those test results. So there's a huge amount of work that's happening on the Joby side as we take the approved test plan and we build the part that is going to get tested or the aircraft is going to get tested and then we run the testing on it. And then we write the test report. We submit that and then we get credit on Stage 5. So it may be that a lot of the progress that happens on Stage 5 is when we're very, very close to the finish line.

I think the important thing is that in addition to making incredible progress on manufacturing of the 5 TIA aircraft, the team is also making incredible progress on the manufacturing of the test articles, and those test articles are very challenging from a manufacturing standpoint because each one of them is different from a -- from a production part. It has intentional changes that we're putting into those parts that have been specified by the FAA DERs. And so this is really fantastic work by the manufacturing team, and we're making incredible progress on it, which puts us in a great position, both for the TIA flight test, but also in terms of completing all of the component level testing required to complete Stage 5.

That's really helpful context. Maybe as a follow-up. You started manufacturing propeller bleeds in Dayton, but are there any other conforming parts you expect to also transition to Dayton in the near term? And then how quickly could you ramp up that capacity you'll need to support certification efforts?

Yes. Thank you. So really thrilled with the team in Dayton and the quality of workforce that we've been able to build there and the speed at which we've been able to onboard those folks and have them contributing in a huge way. We were also thrilled with the support that we've received from the state and local government in Dayton. And we see massive opportunities to continue to expand our footprint, both in our existing facility and as we look forward in the Dayton region more generally.

In addition, and again, following the model that I spoke about, where we perfect the process here at our pilot facility in California, and then we're able to scale it alongside our partners with Toyota -- our partnership with Toyota, I would love to just highlight how vitally important Toyota is and help strong relationship that we have with Toyota right now. We have never been closer to Toyota. Toyota has never been more leaned in. And we think that they are an unparalleled partner for us as we look to take aviation to a scale that has never been seen before.

[Operator Instructions] Our next question is coming from Edison Yu from Deutsche Bank.

I wanted to ask about the hybrid for defense. How should we think about the design? Is that something you just kind of put an engine on the existing airframe? Do you need to redo the airframe, is the supply chain going to get more complicated. Just how to think about the process and design for hybrid?

Thanks, Edison. This is Paul. So look, our approach is really in line with the sort of principles of dual use. Where possible, we want to take full advantage of the proven airframe that we have developed and tested over the last 5, 6 years. And we also want to be able to take advantage of the manufacturing lines that we already have ready to produce those components down the wall.

So I think the right way to think about that aircraft is a sort of variant of the existing vehicle that is then in turn missionized for different customer use cases. What I think is really exciting, though, is that we've been able to move from concept to soon sort of demonstration of that vehicle at a very rapid pace, basically sort of 3 months from when we announced the L3 partnership to the preparations for flight testing that are happening right now. In turn, we think we're going to be able to move from demonstration to flexible deployment with those customers very quickly because we've got a manufacturing line that we do not have to scale up or retool where most of the components are essentially the same manufacturing line that we're using for the broader sort of commercial vehicle.

And that speed is something that in our conversations to date, the customers are really looking for. They are not so happy with the sort of traditional procurement process, long spec writing, competitions and then sort of moving to these sort of restrictive contracts. They are instead looking for things that get new technology into the hands of warfighters far more quickly. And we think we've got an opportunity with this platform in conjunction with L3 to deliver exactly that.

Our next question is coming from Chris Pierce from Needham & Company.

I was just curious, and if you fast forward a year from now, like what's the best possible outcome for the Blade transaction? Is it just more passenger throughput in New York? Or what Rob talked about? Is it adding routes so you can see kind of customer demand to get through to consider air taxi at a higher rate? But if you fast forward a year, what would you consider to make a success out of this to get people enthusiastic about air taxi in the business?

It's [indiscernible]. I think if you step back and you look at the thesis of the acquisition, it was to derisk and accelerate the deployment of the Joby aircraft into commercial service. So we're going to continue working on projects where we can achieve profitable growth in new routes, expansion of existing schedules. We recently expanded our JFK schedule to include another note on the East side and also deepened our Newark efforts. And in Europe, we have been focusing there as well on opportunities.

So I think the focus on profitable growth to continue getting more data, acquiring more customers, getting more infrastructure access. And I think that's going to be terrific. That's really going to educate us and help us deploy these aircraft once they're certified and to do it in a way and it is speed that I don't think the competition can match. It's a real head start versus the competition in every market Joby wants to enter.

Next question is coming from Amit Dayal from H.C. Wainwright.

Just with respect to all the comments on the call today, keeping in mind where we are with manufacturing readiness and all of the testing going on. What is the earliest we can take advantage of the CIPP initiative? Is 227 a reasonable time frame? Or could it be potentially earlier than that where some of these aircraft get into operation?

Amit, this is Paul. I'll try to pick that up. I'm not sure I totally heard it, so I'm going to sort of repeat what I understood the question to be. So your question was when do we think we can start first operations under EIPP? And the answer to that is that we now have with the EIPP program once the down select happens early next year, we've got a date certain for the start of those operations, and that's essentially mid next year. That is a really exciting opportunity and one that I think Joby is sort of uniquely positioned to take advantage of. Our understanding under IPP is that it's going to require aircraft to be at a high level of maturity. Our understanding is that means it has to be in the TIA process. It's also going to require the operational know-how to put those aircraft into service in the real world. We already have a lot of that from the demo flights that we've done, and we get to really supercharge that with Rob's team of Blade that obviously knows a lot about high tempo vertical takeoff and landing operations already.

But finally, you also need to make sure that we have the aircraft. So part of the focus now around scaling production is to meet this demand that is now higher next year than I think we were initially anticipating. So our focus with both the expansion of the Marina facility, the continued rollout into Dayton and obviously, doing both of those things in close conjunction with Toyota is to make sure that we really ramp production to meet this opportunity. because from our perspective, an opportunity to get these aircraft operating in the U.S. as quickly as possible, benefits Joby, and it certainly benefits the broader industry, and we think we're in pole position to kind of make that happen.

Terrific. This is Teresa again. Thank you, Amit, and Kevin, and thanks to all the analysts for your questions today. This quarter, we're doing something a little different. We also invited our broader community to submit questions on X and Reddit. We were thrilled with the volume and the thoughtfulness of the engagement. We selected a few representative questions to ask and answer now.

First, what actually is coming right back to you, Paul, it says, when do you expect to start the integration of autonomous capabilities into S4?

Thanks, Teresa. So as J.B. mentioned in the prepared remarks, the first instantiation on a Joby developed aircraft of autonomy is very likely to be the hybrid aircraft that I mentioned earlier on in the call. This is one that's obviously focused on defense applications. We think that's a perfect test bed for the stock. One, because it's already been well tested with its customer on conventional aircraft. And two, because there's not the same sort of regulatory rigor around certification for these sorts of platforms. So it's the right place to begin to extend the existing super pilot capabilities to low altitude, be tall capable to prove that out as soon as we can and in a wide range of mission sets, so that we're ready if and when there is an opportunity to translate that to the commercial side of things to move very, very quickly.

So long and short, that's going to be, I think, the first example of how we begin to roll this out on a Joby [indiscernible].

Terrific. Thank you. Another question also coming in from X. How do you see the future product offerings as both Joby and Blade actively scale operations, particularly in Dubai? Rodrigo, would you like to start with on that one?

Sure. Let me take that. Just as we mentioned before, Blade helps to derisk and accelerate the deployment of Joby aircraft into commercial service, and that includes Dubai. So the knowledge we have in the roots on infrastructure, the flyer base, we are not starting [indiscernible]. We're not starting from scratch. Anybody else tries to do this. They're starting with zero knowledge. We have flown hundreds of thousands of people over the past decade.

And then if you take a look at our European operations, 1/3 of our European flyers are from the Middle East. So it's a brand that's well known there. The Middle East consumer consistently embrace premium brands from the West that provide exceptional experiences that have trust. So I think we're in terrific shape to help get that launch out in front of the public and have something that people really enjoy and find us extremely reliable.

Terrific. Thank you. Okay. I think we could maybe get one more in, and there's this one fun one. In fact, it asks for how about something fun. Five years into passenger flight. That kind of crazy things can you see Joby involved in that will blow our minds now? JoeBen?

Thanks, Teresa. So I think the key thing to focus on is that vertical integration is Joby Superpower. This is something that we have invested in heavily for many years, and it puts us in an incredible position to be able to develop just game-changing aircraft, all built on the foundation of the incredible technology foundation stack that we've built.

I'll add 2 other dimensions. One we've talked about, which is autonomy. Autonomy is going to unleash many new and exciting applications for aviation. And by leading the world in aviation autonomy, we think we're in a really strong position.

The final dimension is hydrogen. Hydrogen, as I think many of you have heard me speak about, it has 3x the specific energy of jet fuel. With fuel cells, we're able to convert the chemical energy and hydrogen into propulsion twice as efficiently as a small turbine can convert jet fuel into propulsion. And what that means is that you can build aircraft with game-changing new capabilities. And so as we look to the 5-year horizon, we think the future for Joby and the future for the technology stack that we're building has never been more promising, and I'm so excited to bring these transformations to the world.

Awesome. Thank you, everyone, for joining us today. We greatly appreciate your support.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation.

Greetings, and welcome to the Joby Aviation Second Quarter Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Teresa Thuruthiyil, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's Second Quarter 2025 Financial Results Conference Call. I'm Teresa Thuruthiyil, Joby's Head of Investor Relations.

We will begin the discussion with remarks from JoeBen Bevirt, Founder and Chief Executive Officer; and Rodrigo Brumana, Chief Financial Officer. Paul Sciarra, our Executive Chairman, will be joining us later for Q&A. Please note that our discussion today will include statements regarding future events and financial performance as well as statements of belief, expectation and intent.

These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to our filings with the SEC and the safe harbor disclaimer contained in today's shareholder letter. The forward-looking statements included in this call are made only as of the date of this call, and the company does not assume any obligation to update or revise them.

Also during the call, we'll refer both to GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our Q2 2025 shareholder letter, which you can find on our Investor Relations website, along with the replay of this call.

And with all of that said, I'll now turn the call over to JoeBen.

Thank you, Teresa, and thank you, everyone, for joining us today. The last quarter was one of our best yet. We're delivering at an exceptional level on all fronts, on certification, on manufacturing and on commercialization. And we have so much to talk about that I'm going to get straight into it. The progress we've reported this quarter is unparalleled, supported by an incredible team, years of planning and a wealth of flight testing. To put our flight testing into context, in July alone, we completed 76 separate flights with 4 different aircraft in 3 different locations around the world.

These included both piloted and remotely piloted flights with vertical takeoffs, full transitions and vertical landings. And the amount of flight testing matters because it's the core of our certification effort. It's the way you drive maturity into an aircraft program, whether for commercial or defense use, and it's the way you wring out technical issues to mitigate extensive changes later in the certification process. Our team is delivering day in and day out, and they know that if you're in the business of flying aircraft, you have to actually fly aircraft.

In Stage 4 of certification, we're now 70% complete on the Joby side and more than 50% complete on the FAA side, up 10 points from last quarter and we're gearing up for Stage 5. During this stage, Joby and FAA pilots will fly our aircraft to validate all of our certification work ahead of receiving a type certification. And I'm pleased to say, as we announced this morning, the first of 5 aircraft for TIA flight testing is headed to final assembly, and we remain on track to start flying our TIA aircraft with Joby pilots this year and to begin TIA certification flights with FAA pilots early next year.

For context, this is a milestone you don't reach at the flip of a switch. There are very few, if any certification processes that are as involved as the steps required to reach type inspection authorization. It's multivariable, time-intensive and relies on not just your own execution, but also that of the FAA. We've been at this for more than a decade. Developing, iterating and collaborating on paper and in practice. We've taken a concept and turned it into a conforming design with approved test plans and the ability to manufacture under a quality management system, all in alignment with the FAA.

We're now putting the keystone in the arch. Alongside our certification progress, the global regulatory momentum is undeniable. Here in the U.S., the White House, DOT and FAA are setting the pace for next-generation aviation. For eVTOL, the executive order on drone dominance directs the FAA and DOT to establish programs for state and local governments to partner with companies like ours on early operations. Globally, Australia, New Zealand, Canada, the U.S. and the U.K., markets with huge long-term opportunity for Joby came together to streamline international validation of FAA type certification for aircraft like ours. This took years of public-private collaboration that we expect to pay dividends in the years to come. I was also particularly excited that the FAA finalized the MOSAIC and BVLOS rules, which opened a world of opportunity for new personal aircraft, new propulsion systems and new ways of flying.

I've been on this mission with Joby for more than 15 years. We're witnessing a global sea change in regulatory landscape that I believe will define the next century of Aviation. And in doing so, I believe we are defining the very fabric of how we will live. Each of the ingredients that I have just spoken about, the maturity of our platform, the rigorous aircraft testing and the progress we're making on certification, all contribute to our success on commercialization. This quarter was pivotal. We completed flight testing in Dubai. We reached a definitive agreement to acquire Blade's passenger business. We signed agreements for aircraft with long-term partners Abdul Latif Jameel and ANA.

And with L3 Harris, we're exploring opportunities to leverage our existing technology platform for defense applications. Let's start with Dubai. Earlier this summer, we achieved another industry first, we completed a multiweek campaign in the UAE with 21 piloted flights, including vertical takeoff, transition to wing-borne flight and vertical landing. And we did this in challenging real-world conditions. We delivered sustained operations in temperatures nearing 110 degrees Fahrenheit.

We gained invaluable insights about the performance of our aircraft as we prepare to move from flight testing to exhibition flights and on to commercial service. With the acquisition of Blade, we're accelerating our readiness for commercial eVTOL operations globally, including in Dubai. Over the last decade, Rob and the team at Blade have built a scaled VTOL business. Operational expertise and a premium customer experience. But the Blade acquisition delivers much more than operational experience. On day 1 post-certification, Joby will have the infrastructure team and routes to start electrified service in key U.S. and international markets.

This gives us a defensible first-mover advantage and creates a competitive edge that will be difficult to replicate. We'll also have access today to a deep and loyal customer base, with a demonstrated high willingness to pay to save time. Last year alone, Blade moved more than 50,000 passengers. The plan is simple. We take the existing Blade operations, and we add eVTOL. This will allow us to expand route maps, fly higher tempo operations given the lower note profile and increase margins with lower operating costs than helicopters. And while we're waiting for our eVTOL to come online, we'll be able to build Joby's market-leading operational software in to Blade to drive efficiency and improve customer experience.

We have 3 paths to commercialization. In addition to the owned and operated service, we're pursuing direct sales and regional partnerships. Yesterday, we announced plans to establish a joint venture with our partner, ANA. The plan is to deploy more than 100 aircraft in the region as well as build an air taxi service ecosystem. We need pilot training, vertiports and maintenance just as much as we need the aircraft. Through this collaboration, we see potential to build a playbook to replicate in other markets. Similarly, we're making progress on distribution.

With long-standing investor Abdul Latif Jameel, we announced we're exploring the sale of up to 200 aircraft in Saudi Arabia valued at approximately $1 billion. Abdul Latif Jameel has deep ties in the Middle East, and we look forward to growing this relationship. Finally, we announced a new collaboration with L3Harris to develop a hybrid variant of our existing aircraft to pursue low-altitude defense opportunities. To be clear, defense and dual-use technology has always been a core to Joby's strategy, a point demonstrated by our long history with the DoD.

We already set the pace for VTOL and Defense being the first and only company to deliver eVTOL aircraft to a government customer facility, which we've now done twice. And we're the only company to have already shown electric VTOL aircraft can be hybridized for longer range with our record-breaking 561-mile hydrogen electric flight last summer. We're leveraging that history, adapting our existing platform with turbine electric propulsion and missionization. We're now ready to set the pace again with flight tests of this new variant expected to start this fall and operational demonstrations expected in early 2026 with government customers.

With our existing production capability, we're confident we can move quickly from demonstration to deployment, a testament to the value of a dual-use approach. We also see this work benefiting our commercial operations. The work we'll do to mature vehicle level economy and turbine electric powertrains can feed back into our commercial business, allowing for commercial products that are faster and longer range. This work comes at a critical time in the retooling of U.S. and Allied Defense. The DoD has requested $9.4 billion in the FY '26 budget to advance uncrewed and remotely operated aircraft, and we see significant opportunity for Joby and our partners.

As our path to certification and commercialization becomes increasingly clear, our next challenge will be scaling production capacity to meet demand. And as I've said before, this is not an easy task, but it is one that we're well placed to tackle. I'm incredibly proud of the progress we've already made to establish conforming production lines and with our first TIA aircraft moving to final assembly, I'm confident we're leading the way. The expansion of our Marina facility is an important step on the road to scale. It will double our production capacity to 2 dozen aircraft per year.

And our Dayton facility is now coming online. This dual-site strategy is designed to scale horizontally and eventually produce up to 500 aircraft per year. As an engineer, I care very deeply about manufacturing, and I love walking the manufacturing floors to see where we can drive process and efficiency improvements from the current line, including adding automation to reduce cost and increase efficiency and throughput. We're only at the beginning of the S curve. So while early improvements will be significant, they won't be easy. But the base we are building from is strong. We're leading the way on production conforming lines we're leading the way on ramping production, and of course, we have Toyota, the world's leading automaker at our side.

Rodrigo, over to you.

Thanks, JoeBen, and hello, everyone. I'm thrilled to be joining Joby at such a pivotal time. What brought me here is simple. This is a company building a reality that does not exist today. Joby will make air travel an everyday reality. But that's not an easy task. The team is solving hard problems with rigor from certification to manufacturing to global deployment. What stood out to me is the rare alignment of vision, execution and capital. We have a strong balance sheet, long-term partners and a team that understands how to turn bold ideas into tangible outcomes. In every conversation I had before joining whether with engineers, test pilots or operating leaders, I saw the same thing: quiet excellence and relentless focus.

In my first few weeks on the job, I witnessed the team coming together to deliver the historic Dubai flights with precision, intensity and pride. It showed me what this company is made of. As a newcomer, I can say with high conviction, this is the real deal. As CFO, my focus is very clear. Number one, ensure we scale methodically; number two, stay discipline with capital; and number three, translate our technical and regulatory progress into long-term value.

Now shifting to our Q2 financial results. We ended the second quarter of 2025 with cash and short-term investments totaling $991 million. We closed the first $250 million tranche from Toyota and received an additional $41 million through our ATM facility. Our Q2 2025 use of cash totaled $112 million, $10 million lower than last quarter, primarily due to having one less payroll run in the quarter, partially offset by growth in operating expenses. This spending also included about $12 million on property and equipment.

We remain on track with our full year 2025 guidance of $500 million to $540 million in use of cash, excluding any potential impact from our proposed acquisition of Blade's passenger business. On a GAAP basis, we reported a Q2 net loss of $325 million, which includes $168 million operating loss and a $157 million nonoperating loss, both impacted by noncash items. The net loss was $242 million higher than the prior quarter, primarily due to an increase in our share price, reflecting an unfavorable noncash revaluation of warrants, earn out shares and the Toyota first tranche investment we received.

Total operating expenses for the quarter were $168 million, up about $5 million from the prior quarter. The increase was driven by higher staffing and program spend to support key milestones, including progress on the final assembly of our first TIA aircraft. Adjusted EBITDA, a non-GAAP metric that we reconcile to our net income in our shareholder letter was a loss of $132 million in the second quarter. This was about $4 million higher than the prior quarter, reflecting the increased spending I mentioned before. Compared to the same period last year, our adjusted EBITDA loss was $24 million higher, reflecting growth in our organization to support the design, manufacture and the certification progress of our aircraft and early investments related to commercialization.

As JoeBen said before, 2025 has been and will continue to be a pivotal year for Joby and for this new industry. You should expect us to keep flying in diverse conditions and locations forging new partnerships and laying the groundwork for support across regulations, infrastructure and operations. You should see the closing of our Blade acquisition and the integration of their operating know-how as a key advantage in preparing for commercial service. You should see us continue maturing our low-rate manufacturing efforts into scaled production capabilities and leveraging our best-in-class partner, Toyota, to do this together.

You should also stay tuned as we develop hybrid aircraft for U.S. defense combining Joby's VTOL and autonomy capabilities with L3Harris' expertise. Joby remains the only company to deliver eVTOLs to a U.S. Air Force base and fly full transition piloted and unpiloted missions of full-scale eVTOL aircraft today. I want to be realistic about the amount of work we have in front of us. It is not going to be easy. We are building a reality that does not exist today. Our path will be challenging, but we embrace it and are executing with tangible results as we shape our future lines of revenue.

Now with our 3 paths to generating revenue in mind, let's recap. Number one, as an air taxi operator, direct-to-consumer business, we made an exciting acquisition that is expected to accelerate our time line. We have a strong backing from local and global regulators, and we continue to demonstrate our commitment to bring flying to everyday life. Number two, for partner service, our relationship with ANA in Japan provides an opportunity to collaborate on air taxi ecosystem in the key markets.

And number three, under the banner of aircraft sales, we look forward to sharing more about our distribution relationship with Abdul Latif Jameel for electric aircraft and with L3Harris for autonomous and hybrid aircraft. We look forward to continue sharing our progress with you. At this time, operator, please open the call for questions.

[Operator Instructions] And the first question comes from the line of Austin Moeller with Canaccord Genuity.

So just my first question here. Now that you've bought Blade, are you preparing to -- or are you planning to provide S4 eVTOLS to the local charter operators that own those helicopters and have a similar model to Blade? Or are you still planning to operate and own the aircraft yourselves?

Thanks a lot, Austin, this is JoeBen. We're going to remain flexible on that. Here in the U.S., we do have a preference for retaining the long-term free cash flow and the long-term revenues from the passenger service. But we do see Blade's asset-light model as being a valuable one. I think as you look at our partnership with ANA, where our operation in Japan will be co-owned. That also gives us the opportunity to pull forward revenue.

And then, of course, with our distribution partnership with Abdul Latif Jameel in Saudi Arabia, where we could be potentially selling aircraft and again, that would be another way to pull forward revenue. So we do see a balance, and we see the model that Blade has as giving us flexibility and thank you for highlighting that opportunity.

Okay. And just a follow-up on the TIA aircraft that you're constructing. Are you able to discuss what the specs of that are, like the maximum takeoff weight or if you stretch the fuselage at all? And the 6 aircraft that you're building for TIA testing, they're all expected to have different percentages of conforming parts to perform specific tests, correct?

Yes. So a couple of clarifications there. One, the aircraft is nearly identical to the aircraft that we've been flying before. But I really want to pound the table on how exciting this moment is. This is the culmination of more than a decade of hard work from the Joby team and close collaboration with the FAA. In order to build this aircraft, we had FAA DARs in -- on the factory floor with us regularly doing inspections.

And they're inspecting the build of the aircraft against our quality systems. They're -- and again, this has to be -- this is the final -- this is the finish line, right? We are -- the aircraft that we're building is -- before we can even start building it, we had to have a design that met all of the certification standards that we'd agreed to through Phase 1, 2, 3 and 4 of the certification program. So all the progress that we've been reporting to you each quarter against Stage 1, against Stage 2, against 3 and 4, that has all built to this moment.

All of the work that we've done maturing our manufacturing systems and processes that has built to this moment. And so as I said in my prepared remarks, this is us putting the keystone in the arch. This is preparing for this really magical moment when this aircraft takes to the air and then with Joby pilots, and then we do 4 credit flight flights for certification credit with the FAA pilots on board. And so we're so proud and I really want to emphasize what a big deal this is for the whole Joby team. And yes, really just so grateful and it's a huge day for us today.

The next question comes from the line of Kristine Liwag with Morgan Stanley.

You've had a very, very jampacked quarter. So congrats on all these milestones. I mean, with the acquisition of the Blade network, can you talk about how you're thinking about your first initial commercial service in the U.S.? How did that change now that you own Blade? And where would you see your first initial cities where you're serving in the U.S. after this acquisition?

Thank you so much, Kristine. So we do see incredible demand and incredible opportunities in markets across the country and around the world. But this acquisition of Blade really supercharges our operations in New York with an incredible existing operations team with amazing vertiport infrastructure, with exclusive lounges, with a loyal customer base. And we're just absolutely thrilled with the way that we believe this will allow us to really ramp our operations in New York much faster than we had previously planned on.

Being based in New York, very excited to see that come to fruition. And following up on the certification regarding, I guess, airspace usage. So have you sorted with the municipalities in New York about the ability to use the Joby aircraft and these vertiports? Is that all sorted? Are you just waiting for the aircraft certification now? Or are there additional approvals you need before you enter into service there?

So we do expect any additional work on the airspace side beyond what the Blade operations currently entail. We work very closely with air traffic controllers in multiple markets across the country, and we've been doing really groundbreaking planning into -- for new vertiports. I'd also love to highlight the incredible work that the FAA is doing.

And that Secretary Sean Duffy has spoken about on enhancing and modernizing our air traffic control framework. So we think that's really fantastic and exciting. I want to remind folks that once we get type certification, we also need to take and put our Joby aircraft onto a Part 135 operating certificate before we begin passenger service. We do have the opportunity to do air tours prior to the aircraft going on the 135, but that is an additional step in -- on top of the type certification.

Great. That's wonderful. And just following up lastly on the type certification. You said you're 75% of the way through for Stage 4. Can you talk about the remaining 25%? What is there left to do? And what would the Stage 5 process look like?

Yes. Just one correction. On the Joby side, we're 70% complete. And so the remaining 30% will come in over the next year or so as we progress the final pieces there. But the -- I want to be really clear that we do not need to be at 100% on Stage 4 prior to beginning the TIA work. So some of those Stage 4 pieces are not required for the TIA flight test. So we do -- we're at a very, very strong place, both on the Joby side and on the FAA side to deliver on our goals of beginning the TIA flight test with FAA pilots on board early next year.

So the momentum is just absolutely phenomenal, and we're so grateful to the FAA for the incredible lean in that they've shown for many quarters in a row here, just really going above and beyond.

Congratulations again on your progress.

[Operator Instructions] And the next question comes from the line of Bill Peterson with JPMorgan.

Really a lot of terrific progress in the last quarter. I'd like to start off with the first question on Blade and maybe expanded from some of the prior questions. So I guess, what is the specific plans for expanding the passenger business currently in New York and Southern Europe? Do you see any additional opportunities for passenger to expand in other parts in the world or other cities in the U.S.?

And again, this is assuming with helicopters first? And what does the team plan to do with the Blades jet and other business that seems like on face value, maybe has a little bit less synergies?

Thanks a lot, Bill. This is Paul. So we do actually see opportunities to continue to expand Blade's existing business even ahead of certification of our aircraft. But look, that wasn't the reason for the acquisition. The reason for the acquisition is that the big limitation of that business has been -- essentially the sort of vehicles that they were using. We think we've got an opportunity to both expand the route map, lower cost or sort of increase margin and in turn, fly higher temporal operations given the lower noise profile of our vehicle. So those, I think, are really the pieces that are going to be important to kind of more rapidly taking full advantage of the important groundwork that Rob and the team at Blade have laid.

Okay. And then for my second question, given the call around the DoD's budget request for $9.4 billion for autonomous and hybrid aircraft, what do you think this can translate in terms of opportunity for Joby? I guess, could this help fund R&D work or specific contracts or something else we should be looking at?

Thanks a lot, Bill. This is Paul again. So 2 pieces to your question. Look, along the way, there's always opportunities for R&D funding to essentially offset some of the work that's necessary to deliver on the vehicles that we're talking about. That's been a strategy that we've used very effectively over the course of our engagements with DoD, over the last 6 or 7 years. But most importantly, and I think what you should see in the announcement with L3 is that we're sort of taking the next step in terms of missionizing this aircraft for the right use cases kind of against key contracts, whether existing or future that are matched against the capability gaps for different branches.

And we're really pleased to be working with L3 on that front, because of the depth of their engagement with many of these customers, they have a very strong understanding of kind of where those gaps are. And over the course of both the flight demonstrations in the fall and even more importantly, the demonstrations with customers early next year, that's going to I think be the opportunity to sort of open up the commercialization effort in a very significant way with the DoD.

The next question comes from the line of Chris Pierce with Needham & Company.

You guys recently updated us on the Marina facility. I was wondering when -- and sorry if I missed this, but when might we hear more about the Ohio facility and more scaled production. I understand you don't want to produce these things at scale until you know you're further down the road with certification. So this is a sort of a backdoor way to ask about certification timing.

But I guess when might we hear about Ohio manufacturing cadence margins on the OEM side of the business? Just kind of details around that would be helpful for modeling.

Yes. Thank you, Chris. So as I mentioned, previously, the -- we're really trying to think about this in a multi-site horizontal scaled approach. First, with Marina, we are thrilled with the time line that we were able to build and begin to populate our manufacturing -- our larger manufacturing facility there, doubling our -- more than doubling our manufacturing footprint in Marina. And also really pleased with the work that the team is doing to mature and accelerate the build rate of both the components and the aircraft. Just today, got a report that we had manufactured 18,000 components in July alone. So it shows that we're -- Joby manufacturing globally is just hitting its stride and becoming more and more efficient and more and more productive.

With regard to your question about Ohio, we're thrilled with the acquisition of our first building there and the build out of that. We're thrilled to be building our team in Ohio, doing training, and can't wait for parts to start coming out of that facility. And also extremely excited about opportunities to continue to expand our Ohio footprint and the incredible support we've received from both Dayton and the State of Ohio and JobsOhio. They've been absolutely spectacular partners for us.

Okay. Appreciate the detail. On Slide 8, when you talked about Dubai, you're talking about this 1 vertiport in the first quarter of '26. Does that get back to Part 135 in touring, where it might be a kind of something you can do with passengers in the first quarter of '26, but then you need further build-out in like hotels or things like that? Or is there already infrastructure to land these things with passengers? Like I just want to get a sense of what needs to go beyond what's in the letter to kind of start higher tempo passenger flight in Dubai?

It's a great question. I think one of the amazing things about our -- the flights that we did over there is that some of our key partners and potential partners were able to come and see flights. And including many folks on the real estate and real estate development side, and the amount of interest and the excitement from real estate developers, both in Dubai and around the world has never been greater.

The ability to have a quiet electric aircraft, land at your development and deliver folks, for example, from the airport to the Palm in a matter of minutes rather than nearly an hour, that's a game changer. And so we do see really significant momentum in opening up additional takeoff and landing locations. Additionally, as I believe you're aware, our partner for building the vertiports in Dubai is Skyports, and they're making fantastic progress alongside RTA, the Roads and Transport Authority in planning and building out the network of vertiports in Dubai.

And so we -- as you mentioned, the first vertiport that broke ground at DXP, the airport there is making great progress, and we're really excited to bring additional nodes online in the Dubai network and thrilled with the momentum we're seeing in Dubai overall.

Okay. And then just lastly on Blade. Is it fair to say that Blade didn't have any exclusive properties but you gained a potential first-mover advantage? Or am I -- is there more to it than that?

So Blade, one has a number of exclusive launches. Two, the real estate available at many of these vertiports is quite limited. And so it's valuable to have a place for passengers to wait out of the sun, out of the rain while they're getting ready to board their flight. So we do feel like the -- although many of these sites are public access, having a lounge and a facility at those locations is extraordinarily valuable.

Two, the Blade also has a large network of takeoff and landing locations in Europe and as well as the greater New York area. And we think that, that network of takeoff and leading locations is an incredibly valuable and underappreciated asset, and we're -- we couldn't be more thrilled to be able to count that as a Joby asset now.

[Operator Instructions] And the next question comes from the line of Savi Syth with Raymond James.

Is definitely an action-packed quarter here. If I can go back to the aircraft, can I clarify kind of if you're out of policy completely, and this is just kind of the execution side. So like the MOC cert plans are approved without placeholders? Or is this kind of being built at risk a little bit?

I would say that we are very much in the final -- yes, I would say that we're substantially out of policy, if not completely out of policy. The real focus right now with the FAA is on finalizing all of our TIA flight test plans. And really, really thrilled with the lean in from the FAA on that front. Of course, there's still the 50% of Stage 4 that the FAA has to approve.

But again, the progress and they're just putting points on the board day after day. So we're yes, we feel extraordinarily good about where we are with the FAA and as well as where we are in terms of the design and manufacture of this aircraft. We think this is a huge, huge milestone that we announced today and just thrilled with the execution of the testing team. I don't know that I emphasize that enough.

We didn't just finish building this airframe. We finish testing this airframe. So it's like -- it's going into final assembly, and it's got lots of green checkmarks.

That's great. And then maybe along those lines, can I -- as we kind of look forward to the start of testing. I know kind of each aircraft, I think you said you'll build 5 will be designed to test something different. I wonder if you can kind of talk a little bit about like maybe what the first aircraft will be designed to test and what we can kind of look forward to.

Yes. So there are multiple TIA tests that we're working on getting -- the test plans that we're working on getting approval with the FAA and each one of those -- each of the test plans has a specific 1 of those 5 aircraft that it's going to get -- that we plan to test it against. There is some flexibility, but we we're targeting it.

And the other thing I should emphasize is that we've started building parts for all 5 of those aircraft. So some of them are -- this one, for example, has now completed the testing. We have multiple others where the airframes are undergoing -- going through the airframe assembly process. And we're building components and systems for many of them. So we're in full swing, and I couldn't be more proud of the work that our incredible manufacturing team is doing across the sites in San Carlos, Marina, and soon Ohio.

So absolutely thrilled and grateful to everybody on the Joby manufacturing team.

I appreciate that, JoeBen. If I might ask a quick follow-up on previous kind of question on the defense side. Have you kind of identified any specific programs of record? And I'm just kind of curious how meaningful that can be? I know you quoted a big DoD number, but was curious how much realistic kind of opportunity that could be pursued here.

Thanks, Savi. This is Paul. So I mean scoping up. This is a big moment, I think, for rethink in terms of what the future of military aviation looks like. Recent conflicts have certainly shown that the sort of paradigm of large expensive crewed helicopters for a wide variety of missions may not be the right one on a go-forward basis.

So we think we've got an opportunity in conjunction with L3 to essentially build something that is cheaper, quieter, autonomous and essentially flexible for a wide range of use cases. So we called out a few, I think, in the announcement, including contested Logistics, counter-UAS or counter drone and in turn, electronic warfare. And fortunately, we are partnered with someone that has incredible payloads across each of those sort of functions.

To answer your question, there are core existing programs that we are going after, but some of this is also about shaping programs in light of that big rethink that I mentioned at the front end. And what I think is very important in this sort of moment is being able to translate very quickly from demonstration into deployment. And that's where I think this dual-use approach, essentially leveraging the same technologies and the same manufacturing lines that we're using for the commercial side really pays dividends, both to us as a company and in turn, to our customers in defense.

The next question comes from the line of Amit Dayal with H.C. Wainwright.

Congrats on all the progress this quarter. With respect to the certification time line, do you have a sense of whether it's like next 2 or 3 quarters? Or is it a little bit longer before you are completely set up to get into operations?

Yes. Thank you for the question, Amit. Just to be clear, what we're guiding to is that we're on schedule to begin flying the TIA aircraft with Joby pilots by later this year and to begin flying with FAA pilots on board by early next year. And so that's the -- those are the flights that the FAA pilots fly to confirm that we are compliant and that's what gives us points on the board for Stage 5. And once those are complete, then we're in the final stretch of Stage 5 and type certification.

Understood. And then is the Blade deal closed for you guys? I just wanted to see when we can potentially see contribution from the Blade operations in your financials? Is it 4Q, maybe we can see that?

Yes, Amit, Rodrigo here. Look, we just signed and it will take a few weeks to close. So more guidance when we get there. But right now, we are just like in the process of announcing it. And then, as you know, very typical, we'll take a few weeks to close.

Thank you. Ladies and gentlemen, that is all the time we have for today. We thank you for your participation in today's conference call. You may now disconnect your lines. Thank you.