Vuzix (VUZI) investor relations material

Executive summary

• Achieved all manufacturing and performance milestones for the second Quanta tranche, securing $5M and bringing total Quanta investment to $15M of a planned $20M.

• Commenced volume shipments of waveguides to a first tier-1 OEM customer and engaged with multiple new Tier 1 OEMs across enterprise and consumer markets.

• Launched the LX1 enterprise smart glasses, targeting warehousing and logistics, with initial customer sampling underway and production rollout scheduled before year end.

• Revenue grew 19% year-over-year, driven by a 74% rise in product sales, despite ongoing cost control measures.

• Strategic partnerships with Quanta, Himax, and other ODMs are expanding market reach and accelerating commercialization.

Financial highlights

• Q2 2025 revenue was $1.3M, up 19% year-over-year, driven by increased smart glasses sales, especially the M400.

• Engineering services revenue declined to $0.3M from $0.5M year-over-year.

• Gross loss increased to $0.8M from $0.3M due to inventory reserves and higher overhead.

• Net loss narrowed to $7.7M ($0.10/share) from $40.6M ($0.62/share) in Q2 2024, mainly due to the absence of a $30.1M impairment charge.

• Cash and cash equivalents at June 30, 2025 were $17.5M, with positive working capital of $20.3M.

Outlook and guidance

• Anticipates receiving the final $5M Quanta tranche before year-end, having met all technical requirements.

• Expects business with the new OEM customer to ramp through 2025 and into 2026; Quanta-related program ramping expected mainly in 2026.

• Defense sector programs to see first production orders in the second half of 2025, with visibility into 2026.

• LX1 production and broader availability to enterprise customers expected before year-end, with strong initial demand.

• Management expects improved margins from volume manufacturing and sales of waveguides as the new plant ramps up.