Please note this conference is being recorded. I will now turn the conference over to John Schilling, Director of Public Relations and Communications. Thank you. You may begin.
Good evening, everyone, and thank you for joining Faraday Future's first quarter 2026 earnings call. My name is John Schilling, Global Director of Public Relations, Communications, and Government Affairs here at Faraday Future. Today I am joined by our Global CEO, YT Jia. Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review our SEC filings for a detailed discussion of these risks. We undertake no obligation to update forward-looking statements except as required by law. Following prepared remarks, we will address a selection of stockholder questions submitted in advance. With that, I'll turn the call over to YT, our founder and Global CEO.
Thank you, John, and thank you to those joining us here today. I would like to thank the company and the board for their trust in acknowledging and appointing me as Global CEO. In today's call, I will provide an update on FF's first quarter 2026 results, key progress from the first quarter through today, and our outlook for the next stage of growth. FF will officially evolve into a U.S.-based physical AI ecosystem company, focusing on two product engines within its EAI robotics business, EAI humanoid and bionic robots, and EAI automotive robots. Committed to an AI-first philosophy by building a three-in-one ecosystem consisting of device, brain, and open source, and open developer platform, and data.
FF aims to create an evolutionary flywheel of scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and larger scale delivery with the goal of maximizing commercial value. In terms of business model, FF generates platform revenue through agent skill revenue sharing, platform service fees, and enterprise solutions. At the same time, through EAI Brain licensing, FF can extend its general intelligence capabilities to more robots and intelligent devices, creating scalable licensing revenue. More importantly, every skill call, agent operation, and device deployment will continuously accumulate real-world data, which will flow back to the EAI Brain through the data factory. This creates an evolutionary flywheel and builds EAI ecosystem infrastructure that will be difficult to replicate in the Physical AI era.
From a strategic execution standpoint, our first phase will focus primarily on humanoid and bionic robotics, with EAI automotive robotics serving as a complementary business. I also want to reiterate something very clearly regarding our vehicle robotics business. We will only fully launch that business once we have secured strategic or long-term investment and sufficient funding to support scaled production and delivery. Until then, we will continue moving forward in a disciplined way with low cost, low capital intensity, low risk, and a strong focus on maximizing stockholder value. Let me now walk through our business update. The first quarter of 2026 was a pivotal period for our robotics business as our Three-in-One EAI ecosystem strategy began forming a tangible commercial closed loop. EAI Device update. devices serve as a physical gateway to our strategy.
We're accelerating deployment of FF's robotic devices across vertical use cases, capitalizing on our first-mover advantage as the first U.S. company to deliver humanoid and bionic robots. On February 4, we officially released three series of EAI robot products: Futurist, Master, and Aegis. During the event, the company announced a cumulative non-binding, non-refundable paid pre-orders for our robot products of over 1,200 units. The delivery of our EAI robots started in late February with positive product gross margins. The total shipments have reached 68 units by the end of April. This provides a new asset-light, high-margin revenue source that is expected to support short-term cash flow while reinforcing our long-term ecosystem strategy. We are also actively expanding our dealer network to concurrently support the sales of both EAI EVs and EAI robots.
Following the NADA Dealer Summit, we signed MOUs with several mainstream U.S. dealerships for both FX Super One and robot sales, and we continue to explore diversified sales models, including customized leasing programs. EAI Brain and open source and open developer platform update. Brain smarts our products. Leveraging an open-source foundation model and our Data Factory, we are building a proprietary EAI Brain that bridges simulation and real robot data training. This creates a closed loop of efficient sim- to- sim and sim-to-real deployment and continuous model self-evolution. Targeting manipulation autonomy by year-end. To date, we have successfully built a cross-platform architecture for our self-developed EAI Interactive Brain with commercial demos now running across multiple sectors. Our proprietary Data Portal, cloud platform, and the robot management backend V1.0 are live, laying the smart management groundwork for large scale operations.
Open source and open developer platform is the enabling system for our strategy. By opening our platform to global developers, we significantly expand the value and diversity of our ecosystem, speed up the flywheel, and establish one of FF's most important levers for creating a differentiated competitive moat. We held our EAI Developer Platform Strategy Launch in San Francisco, officially initiating the era of EAI robot education tailored for AI natives. We achieved the first practical application of OpenClaw on our robots and are successfully testing its expansion across various scenarios. Data Factory update. Data fuels our strategy. As the first U.S. company to deliver humanoid and bionic robots, we are moving aggressively to build a first mover advantage in the data business with the goal of fully commercializing our Data Factory to close the loop.
We closed the R&D-to-sales loop in just two months after we launched our Three-in-One strategy in February. Our data factory, powered by our proprietary Data OS, replaces the costly custom-built data collection model, and we've signed and begun delivery on our first sales order within two months of launch. The data factory consists of two components: centralized and decentralized. For centralized data factory, we developed a full stack in-house software suite covering collection, validation, upload, and conversion on par with industry benchmark tools and with the core tool chain fully under our control. The first centralized supermarket shelf scenario is deployed at our L.A. headquarters, and our teleoperation data business is in active market outreach. For decentralized data factory, we built our own data collection software, eliminating the need to purchase costly third-party robot hardware just to access basic software licenses.
The full pipeline from collection and processing to FF Cloud upload is up and running, and we've collected the first batch of pilot real-world data across our EAI devices. We've signed MOU with Boston International Business School to jointly establish the BIBS-FF AI Robotics Institute, the first industry-driven physical AI and robotics institute in the U.S. Let's dive into the first quarter of 2026 financial results. Robotics emerged as the company's new revenue engine in its inaugural quarter of deliveries. For the first quarter of 2026, the company generated revenue of $512,000, representing a 62% increase from $316,000 in the same period last year, which itself nearly matches full year 2025 revenue of $536,000.
This includes both device sales and ecosystem revenue, with ecosystem revenue, including skills, software capability packs, et cetera, accounting for 26% of total revenue. The continuous delivery of robots is a pivotal milestone, allowing the company to begin realizing positive product gross profit. Please note that some in-transit robots are not yet included in this first quarter revenue. The income and corresponding cost for these units will be recognized when they have been officially delivered. Our loss from operations narrowed 18% year-over-year from $43.8 million in Q1 2025 to $35.9 million in Q1 2026, of which approximately $11 million consisted of non-cash items, including depreciation, amortization, goodwill impairment, and share-based compensation.
After adjusting for non-cash items and working capital movements, net cash used in operating activities, the company's actual operating cash burn was $31.5 million for the quarter. G&A expenses declined 33% year-over-year from $13.7 million in Q1 2025 to $9.2 million in Q1 2026, primarily driven by a substantial reduction in professional fees, reflecting the company's continued discipline in optimizing its cost structure. Turning to our balance sheet. Our stockholders' equity grew 148% quarter-over-quarter, standing at $19.2 million at the end of Q1 2026, marking the second consecutive quarter of positive equity growth.
Q3 2025's large asset impairment was a non-cash accounting adjustment. Since that trough, equity has rebounded for two consecutive quarters from - $39.5 million to $19.2 million, a $59 million improvement over six months, driven by debt to equity conversions, vendor settlement, and voluntary warrant termination. We believe FF is one of the few U.S.-listed companies to engineer a return to positive stockholders' equity with continued growth within just two quarters of a major strategic impairment. Let's discuss capital markets update. In the first quarter and subsequent weeks of 2026, the company secured critical funding and made strategic adjustments to our capital structure to support our EAI vision. In April 2026, we amended and upsized our existing share purchase agreement with a third party designated by AIxCrypto, bringing total committed equity financing to $12 million.
The amendment replaced anti-dilution provisions with fixed warrants tied to operational milestones, a structure we believe better serves both the company and our existing stockholders while injecting meaningful capital to support continued execution of our EAI strategy. In April, the company successfully received $45 million in new financing from American Institutional Investors. Given EAI Robotics' asset-light operating model and relatively modest near-term capital requirements, we are deploying these funds to build a differentiated growth model, supporting short-term cash flow generation with limited additional investment while reinforcing the long-term expansion of our EAI ecosystem. This financing provides a solid financial foundation for supporting the initial production ramp-up for the EAI robotics strategy while preserving optionality for further capital structure optimization and strategic investment in subsequent phases. On the regulatory front, we reached a major milestone on March 18th when the SEC formally concluded its investigation of over four years.
The SEC decided not to take any punishment or legal action against the company or leadership. The investigation has constrained our development, and its conclusion serves as a powerful counterattack against illegal short sellers. Regarding our listing status, we received a notice from NASDAQ on March 20th regarding a 180-day remediation period to satisfy stock price compliance. To get there, we are accelerating business execution, advancing strategic initiatives, and fighting illegal short selling. To restore market confidence and protect stockholders' interest, we have launched a collective stockholding plan for executives and employees and initiated legal action against illegal short selling and the dissemination of false misleading information. We have also maintained high-frequency engagement with the capital markets, including a New York institutional investor meeting and a series of capital and industry conferences. Now let's discuss our recent progress on system building.
We are fundamentally transforming our AI system by upgrading our governance concept from PPTIA to AI-PPTI. We have also introduced the overarching governance philosophy of AI first. Through this new management concept and an upgraded AI talent organization system, AI is transitioning from a simple auxiliary tool into a key infrastructure that drives business growth and decision optimization. Our corporate governance system is also undergoing major changes, specifically by strengthening our closed-loop management from financing to performance. To maintain strategic continuity, take better responsibility for investors' investment results, and enhance internal and external trust and cohesion. Another exciting event came from our government affairs. FF's robotics business has received support from both the State of California and the local city government, where FF is headquartered.
California State Treasurer Fiona Ma expressed strong support for multiple areas of collaboration, including the inclusion of FF products in California's GSA government procurement list, the EAI transformation of K12 and higher education, and the integration of EAI industry chain resources. 2026 Outlook. With the SEC's four-year investigation officially concluded, we believe we are entering a fundamentally new stage of development. This new chapter is defined by greater strategic clarity, improved operational flexibility, and renewed momentum across our entire business. The removal of this long-standing external overhang allows us to fully focus on execution, innovation, and long-term value creation. As we move forward, management is undertaking a comprehensive Five Key Transformations initiative across our strategy, business, system, finance, and capital. We will fully implement the EAI Three-in-One strategy and our Industrial Bridge Strategy.
Our near-term focus will be on building a robotics ecosystem-driven revenue base and achieving a clear path towards sustainable profitability, which lays a solid foundation for the long-term value realization of the Three-in-One strategy. At the same time, through continuous AI system-level transformation, we aim to further enhance operational efficiency and overall business performance, ultimately prioritizing stockholder value creation. Together, these initiatives are designed to strengthen our foundation, accelerate the commercialization of our AI and mobility ecosystem, enhance financial discipline, and rebuild long-term market confidence. In the following sections, I will discuss in greater detail our strategic outlook and these five key transformation initiatives. First, our outlook on EAI strategy. At the core of this next chapter in our strategy evolution, the company is evolving from a traditional capital-driven growth model toward a more disciplined and sustainable framework centered on revenue validation and long-term ecosystem development.
The large-scale deployment of positive gross margin robotics products is positioned as our primary growth engine while we continue to advance our long-term ecosystem of EAI devices, the EAI Brain and open source platform, and the EAI centralized and decentralized data factory. Looking ahead, under the guidance of our Three-in-One strategy, we intend to firmly focus on scaling robotics deployment and monetization with positive gross margins while advancing our AIEV initiatives with a disciplined and cost-efficient approach. Our overall business model is shifting toward revenue generation, operational efficiency, and ecosystem expansion, with robotics serving as the first major growth driver. In the near-term, we plan to focus on achieving commercial breakthroughs, expanding user adoption, and building a broader ecosystem around its EAI Brain, developer platform, and data infrastructure.
As deployment volumes increase, we expect to establish a scalable growth flywheel driven by recurring revenue generation and the initial maturation of its integrated three-in-one business model. Over time, we aim to build diversified monetization channels across products, platforms, software, and data services. Second, on our product, technology, and business outlook. In the near term, by 2026, we intend to streamline our product portfolio and prioritize robotics products with clear commercialization potential and positive monetization opportunities. With the growing demand across our four major product lines and key use cases, including education, security and inspection, reception and guidance, performances, and university research, together with the upcoming launch and delivery of our new K12 education products, we have officially raised our 2026 annual shipping target to 1,500 units and will host our educational ecology and product launch conference in early June.
FF believes that robotics education will become the largest use case in the first phase of the robotics industry's B2C market. We are building the first large-scale EAI robotics education system in the U.S., and we aim to be a major force in the very first year of America's EAI robotics education ecosystem. In terms of products, we expect to initially focus on humanoid robotics while progressively expanding into additional categories, including quadruped robotics and other intelligent form factors. We believe this phased approach will allow us to refine products within specific use cases, establish repeatable deployment models, and develop standardized, scalable solutions over time. Third, looking at our systems and organization. As previously discussed, we are advancing a comprehensive AI-driven transformation aimed at upgrading our governance philosophy, operational infrastructure, and organizational capabilities.
Under this AI-PPTI framework, AI is no longer viewed as a standalone tool, but as a core operating capability embedded across the organization. At the policy level, we are strengthening governance mechanisms around data management, AI usage standards, information security, compliance, and model oversight to support scalable and responsible AI adoption. At the process level, we are redesigning workflows to enable more standardized, intelligent, and automated operations, allowing AI to play a larger role in analysis, coordination, and execution across key business functions. At the tools and information technology levels, we are building a more unified AI-native operating environment, including enterprise AI platforms, cloud infrastructure, data systems, and intelligent collaboration tools. At the same time, we are evolving our organizational structure and talent strategy to better align technical capabilities with business execution.
We are investing in multidisciplinary talent and strengthening collaboration between operation and technical teams to support long-term AI integration across the enterprise. Fourth, our financial outlook. On the financial front, we are strengthening our strategic finance function. This year, we started building an AI-powered finance system, not only to improve data accuracy and timeliness, but more importantly, to roll out financial guidance in a planned step-by-step manner. We will build strategic financial empowerment on three levels. Mindset shift. Move from business recording to business collaboration and value co-creation, and from data provision to information analysis and decision guidance. AI empowerment. Embed the AI brain into accounting and core finance functions. Process redesign. Under the new AI plus human management model, redesign the financial management and operational analysis processes to match the new model and keep them dynamically optimized.
By the end of 2026, we expect to achieve the following financial goals. Improvement across the three financial statements with a steadily improving balance sheet structure, scaled revenue from the device business, and a closed-loop revenue model for the brain and data businesses, delivering positive unit gross margin for devices and high-margin ecosystem revenue, and a safe and stable cash flow. Financial information disclosed in a timely, consistent manner, fully meeting SEC compliance requirements. A financial analysis system tailored to FF's EAI business, providing real-time guidance for decisions. Finally, our capital outlook. From a capital perspective, we are shifting to a long-term, value-oriented capital structure. At the initial stage of this transformation, we will rely on internally generated revenue and operating cash flow as our primary financial foundation. We will strengthen investor communication to help stabilize market sentiment and rebuild long-term investor confidence.
Meanwhile, we plan to upgrade our financing approach by gradually reducing dependence on high-cost short-term debt. We continue to optimize its capital structure and is currently actively engaging with strategic investors and long-term capital to secure the remaining funding required for the mass production of the FX Super One. We are also committed to regaining stock price compliance within Nasdaq's compliance period. Our preferred approach is to let the price recover naturally through operational improvements. Conclusion, at a high level, we are positioning Faraday Future for a new phase driven by internally generated growth, stronger strategic partnerships, and a significantly upgraded AI-driven technology ecosystem. We strongly believe that the Five Key Transformations will materially improve execution and competitiveness while decisively realigning the company's market valuation with the long-term intrinsic value of its technology platform and future business opportunities.
To conclude, I will now hand the call over to John for the Q&A.
Thank you, YT. As we wrap up, I would like to briefly highlight the materials included in the appendix. In the appendix, you'll find our unaudited balance sheets and financial statements as of and for the three months ended March 31, 2026, providing additional detail on our financial position. These materials offer helpful context to support everything we have shared today. With that, we would now like to open the floor up for Q&A. Question: During your 2025 earnings call in April, you set a 2026 robot shipment target of 1,000 units. Now you've raised it to 1,500 units. What gives you the confidence to hit this new target?
First, we are the first U.S. company to deliver both humanoid and bionic robots. That's a meaningful first-mover position in a blue ocean market. Our product lines already cover the most important use cases: EAI education, security patrolling, reception and performance applications, and university research. Second, the numbers are tracking well. We've shipped 68 robots as of April 30th, and we're progressing toward our 200 unit delivery target by the end of Q2. That gives us strong visibility into the full-year ramp. Third, demand is broadening, especially in EAI education. With our K-12 education product launching shortly, we expect a meaningful new pull on top of what's already there. Also, in early June, we will host FF's education ecosystem and product launch event.
We are building the first large-scale EAI robotics education system in the U.S., and we aim to be a major force in the very first year of America's EAI robotics education ecosystem.
Question: Will FF still execute its vehicle delivery plan this year?
Yes. Vehicles remain a core part of FF's strategy. What we've adjusted is the timing. Today, we have two core embodied AI product engines, humanoid and bionic robots, and EAI vehicles as robots. In phase one, robotics is the priority, with vehicles playing a supporting role. Why this sequence? Robotics requires far less capital than vehicles, generates revenue and gross margin faster, and plays directly to FF's existing strengths in AI and integrated hardware software capabilities. For FX Super One specifically, full-scale mass production and delivery will begin once we secure strategic or long-term investor funding sufficient to support the ramp. Until then, we will proceed prudently, minimizing cost and investment, prioritizing safety, and maximizing stockholder value. This does shift the Super One delivery timeline.
The updated plan is once funding is in place, the Super One 800V BEV is expected to reach its first, second, and the third phases of delivery within six to nine months, 12-15 months, and 21-24 months, respectively. The Future AI Hybrid Extended-Range model is expected to reach its three delivery phases within nine to 12 months, 21-24 months, and 24-28 months. This adjustment gives us several very real benefits. We can concentrate resources on robotics during its critical ramp up, substantially reduce near-term cash outflows, accelerate the formation of an operational closed loop, and significantly lower our financial risk.
Question. You announced on May 10th that YT Jia has been appointed sole Global CEO, and Jerry Wang as Global Executive Chairman, and that Matthias Aydt has resigned. What does this transition mean for the company's strategic direction, and why now?
Thank you for the question. This transition is really about getting FF into the best shape we can. Clear alignment, sharper accountability, faster execution, which sets us up for the next phase of our EAI strategy. Let me be very clear. Our strategic direction is not changing. We continue evolving into a US-based physical AI ecosystem company with EAI robotics as the priority business in the first phase. We've shipped 68 robots as of April 30th with positive contribution margins. We've raised our 2026 shipping target to 1,500 units. In the new organization structure, Jerry oversees finance, legal, government affairs, and strategic cooperation, and risk management. I oversee product, EAI R&D, supply chain, manufacturing, quality, UES, and VLE. We jointly lead strategy, capital market, and the corporate operations.
This transition creates a tight closed loop from how we raise capital all the way to how we deliver business results. Capital strategy and real-world business performance are now directly linked. It strengthens our execution at exactly the moment FF needs it most, and it directly reflects our commitment to putting stockholders first. I also want to take a moment to personally thank Matthias for his leadership as a co-CEO. With more than four decades of automotive industry experience, he played a central role in moving the FX Super One program forward, strengthening our Hanford manufacturing foundation, and executing the Bridge Strategy with global partners. Through some of the most transformative moments in this company's journey, he has been a steady and trusted partner. I look forward to his continued contributions to FF in the next phase.
Question. Revenue for Q1 2026 was $512,000. How should investors think about your revenue trajectory for the rest of the year, given how early stage this commercialization is?
This is a fair question. I would answer it in three parts. First, Q1 is a starting point, not a baseline. In Q1, we began generating robotic sales revenue with positive product gross margin. Our full year 2026 target is cumulative shipments of more than 1,500 EAI robots, and we are tracking toward 200 cumulative units by the end of Q2. That gives investors clear visibility on the shape of the ramp through the rest of the year. Revenue contribution will scale meaningfully as deliveries accelerate. Second, investors should track several leading indicators alongside absolute revenue. One. Cumulative shipment growth quarter over quarter. Two. Product gross margin stability and improvement. Three. Pre-order momentum, which we have 1,200 pad pre-orders on launch day. Four. New revenue lines coming online.
For example, our data factory just signed its first sales order, opening up a high margin asset light repeat purchase data business on top of hardware sales. Third, at the strategic level, Q1 marks the start of our device data brain flywheel. That's why FF should be understood not as a hardware company, but as a three-in-one EAI ecosystem platform. We believe this is only the beginning of the long-term value creation curve for our EAI ecosystem.
Thank you, YT, and thank you everyone for your time. This concludes our investors Q&A session. We appreciate all the questions submitted and apologize if we couldn't get to all of them today. We remain committed to maintaining open communication with our investors. That concludes today's conference call. Thank you for your participation.
Thank you. This does conclude the conference. You may now disconnect.