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Aurora Innovation (AUR)
NASDAQ:AUR
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Aurora Innovation
(NASDAQ:AUR)
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Rating:50Neutral
Price Target:
$4.50
▼(-5.66% Downside)
The score is held down primarily by extremely weak financial performance (tiny revenue scale, large losses, and heavy ongoing cash burn). The latest earnings call provides meaningful upside catalysts (ambitious 2026 growth targets, fleet scaling plans, and cost-reduction/breakeven gross margin targets), but these are offset by back-end-loaded guidance and continued high expected cash usage. Technicals are broadly neutral with longer-term downtrend pressure, and valuation metrics are not supportive given negative earnings and no dividend.
Positive Factors
Commercial First-Mover Advantage
Aurora has converted proof-of-concept to revenue-generating commercial operations, creating a first-mover foothold. Sustained real-world operations produce safety, mapping, and utilization data that strengthen technical validation, customer relationships, and barriers to entry over the next 2–6 months.
OEM & Supply Partnerships and Industrialization
Established OEM and upfitter relationships underpin industrial scale-up and mitigate single-platform risk. Partnering on hardware and upfitting smooths validation and volume production, enabling hardware-cost declines and faster fleet growth—durable supports to unit economics and commercialization.
Low Leverage and Year-End Liquidity
Balance sheet strength and large asset base provide financial flexibility to fund multi-year development and commercialization. Low debt reduces near-term solvency risk and, combined with stated liquidity, supports execution of 2026 scale plans without immediate refinancing pressure.
Negative Factors
Tiny Commercial Revenue Base
Absolute revenue remains minimal relative to operating scale, indicating commercial traction is nascent. With most revenue derived from pilots and early routes, the business model is not yet proven at scale, leaving material execution and adoption risk over the next several quarters.
High Cash Burn and Large Operating Losses
Sustained, multi-hundred-million-dollar quarterly cash burn pressures runway and necessitates ongoing financing or drawdown of liquidity. Persistent negative operating cash flow constrains reinvestment choices and raises dilution or financing risk during the multi-quarter commercialization phase.
Execution Risk from OEM & Supply Timelines
Growth and targeted hardware-cost reductions rely on OEM validations, upfitter throughput, and third‑party hardware schedules. Delays or sequencing issues at partners can materially postpone revenue ramp and margin improvement, making the company's scaling path sensitive to external supply execution.
Aurora Innovation (AUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.24B
Dividend YieldN/A
Average Volume (3M)15.43M
Price to Earnings (P/E)―
Beta (1Y)2.22
Revenue GrowthN/A
EPS Growth5.46%
CountryUS
Employees1,800
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.11
Shares Outstanding1,640,974,000
10 Day Avg. Volume15,841,228
30 Day Avg. Volume15,432,843
Financial Highlights & Ratios
PEG Ratio1.99
Price to Book (P/B)3.30
Price to Sales (P/S)2353.92
P/FCF Ratio-11.54
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.05K
Enterprise Value/Gross Profit-653.96
Enterprise Value/Ebitda-10.86
Forecast
1Y Price Target
$10.46Price Target Upside119.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.47
Revenue Forecast (FY)$16.54M
Aurora Innovation Business Overview & Revenue Model
Company DescriptionAurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate passenger vehicles, light commercial vehicles, and trucks. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.
How the Company Makes MoneyAurora Innovation makes money through partnerships and collaborations with automotive manufacturers and logistics companies to integrate its autonomous driving technology into their vehicles. The company licenses its Aurora Driver platform to these partners, who use it to enhance the capabilities of their fleets. Revenue is also generated through pilot programs, where Aurora collaborates with clients to test and refine its technology in real-world scenarios. Additionally, significant partnerships with companies in the transportation sector contribute to its earnings by providing access to extensive data and operational insights that further enhance the development and deployment of its autonomous systems.
Aurora Innovation Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized major technological and commercial milestones — first driverless operations on public roads, 250k driverless miles (nearly 3x prior), expanded operating domain and mapping automation, new customer agreements, and clear OEM progress — alongside ambitious 2026 growth targets (2026 revenue guidance up ~400% at midpoint, >200 trucks exiting 2026, ~$80M run-rate). However, these operational positives sit against a small current revenue base ($3M recognized in 2025), sizable operating losses (Q4 operating loss $238M), and significant cash burn (FY2025 operating cash use $581M) with reliance on continued OEM timelines and financing tools (ATM). Overall the strength of the operational execution, customer wins, partnerships, and a solid liquidity position led management to present an optimistic scaling plan that materially outweighs the financial and execution risks described.Q4-2025 Updates
Positive Updates
Commercial Launch and First-Mover Advantage
Launched the first driverless commercial trucking operations on U.S. public roads, establishing a clear first-mover position and converting proof-of-concept into revenue-generating commercial operations.
Driverless Miles Milestone
Aurora Driver passed 250,000 driverless miles in January — described as nearly triple the cumulative miles achieved through early October — demonstrating accelerated operational mileage.
Expanded Addressable Market and Lane Growth
Expansion of driverless capabilities and opening of seven additional driverless lanes will nearly triple the current addressable market to over 3.6 billion vehicle miles traveled (VMT); notable new lanes include a 1,000-mile multistate Fort Worth–Phoenix lane and bidirectional El Paso–Phoenix travel.
Safety and Reliability
Maintained 100% on-time performance and a perfect driverless safety record with zero Aurora Driver-attributed collisions reported during the period.
Weather Robustness and Generalization
Latest software release enables driverless operations in inclement weather (rain, fog, heavy wind) and unlocked generalized driving skills that management states are sufficient to begin Sunbelt expansion in 2026.
Customer Wins and Endpoint Operations
Started supervised autonomous freight delivery to multiple customer sites (including Hirschbach, Driscoll’s, Detmar, Phoenix carrier) and announced an agreement with Detmar Logistics to haul sand ~20+ hours/day on a 60-mile route (80% on I-20), effectively doubling that customer’s capacity.
OEM & Supply Partnerships and Industrialization Progress
Multi-OEM strategy: Volvo VNL autonomous trucks have come up a pilot line with second-generation hardware; International LT program targeted for 2026 to enable observerless driverless operations; Rausch selected as upfitter to produce ~20 trucks/week; third-generation hardware partnership with Aeva MoVeo planned to scale to tens of thousands of trucks.
Mapping Automation with Verifiable AI
Cloud-based algorithms and verifiable AI can automatically generate semantic components of the Aurora Atlas, substantially accelerating map production and enabling faster lane expansion and endpoint mapping with reduced human assistance.
Revenue Growth Guidance and Run-Rate Targets
Guidance for 2026 revenue of $14.0M–$16.0M (midpoint up ~400% year-over-year vs. recognized 2025 revenue), back-end loaded with Q4 expected to contribute >50% of full-year revenue. Expect to exit 2026 with >200 driverless trucks, equating to an estimated ~$80.0M revenue run-rate for Aurora’s Transportation-as-a-Service operations.
Hardware Cost Reduction Target
Expect second-generation commercial kit to drive a 50%+ reduction in hardware costs, with further decreases expected from third-generation (Aeva MoVeo) scale and supply-chain leverage.
Strong Year-End Liquidity Position
Ended FY2025 with liquidity of nearly $1.5B in cash and short- and long-term investments, with the company stating this supports the path to positive free cash flow in 2028.
Negative Updates
Very Small Absolute Revenue Base
Recognized revenue of only $3.0M in fiscal 2025 (total year adjusted revenue $4.0M including pilot revenue), leaving a small commercial revenue base despite operational milestones.
Large Operating Losses
Reported a fourth quarter operating loss of $238.0M (which included $48.0M of stock-based compensation), signaling substantial near-term unprofitability.
High Cash Burn
Used approximately $146.0M in operating cash in Q4 and $581.0M for fiscal 2025. Company forecasts average quarterly cash use of ~$190.0M–$220.0M in 2026, indicating continued high cash consumption during scale-up.
Back-Loaded Revenue and Execution Risk
2026 revenue guidance is heavily back-end loaded (over half of full-year revenue expected in Q4), making achievement sensitive to timely delivery of observerless fleet, ramping utilization, and truck supply.
Operational Constraints from Weather (Historical)
Inclement weather constrained Driver operations in Texas roughly 40% of the time during 2025, highlighting historical availability challenges that management is addressing with software improvements.
Dependence on OEM & Supply Timelines
Scaling depends on OEM validation and industrialization (Volvo, PACCAR, International) and timely delivery of second- and third-generation hardware kits; management acknowledged platform-specific validation steps and potential sequencing/risk from OEMs.
Exposure to External Cost Risks
Management noted potential cost exposure to tariffs and foreign exchange variation (e.g., China and Thailand supply chain exposures) which could affect hardware costs despite contracted part costs.
Small ATM Proceeds and Ongoing Financing Needs
Net proceeds from ATM issuance were $15.0M in Q4 used to fund RSU tax liabilities; company plans to rely on the ATM and potential additional mechanisms to manage RSU taxes and cash bonuses, implying ongoing financing activity may be required.
Company Guidance
The company guided 2026 revenue of $14–16 million (≈400% YoY growth at the midpoint), noting 2026 will be back‑end loaded with Q4 contributing over half of full‑year revenue, and expects to exit 2026 with more than 200 driverless trucks in operation (≈$80 million revenue run‑rate for its Transportation‑as‑a‑Service business); management expects the second‑generation commercial kit (fleet launch in Q2, scaling to ~20 trucks/week in Q3) to drive a 50%+ reduction in hardware costs and target breakeven gross margin on a run‑rate basis exiting 2026. They expect average quarterly cash use of ~$190–220 million in 2026, believe current liquidity of nearly $1.5 billion is sufficient to reach positive free cash flow in 2028, and will use the ATM for RSU tax liabilities through 2027; FY2025 metrics included $3 million recognized revenue ($4 million adjusted including pilots), Q4 revenue of $1 million (a 25% sequential increase), Q4 operating loss of $238 million including $48 million of stock‑based comp (ex‑SBC ≈$190 million), R&D $155 million, SG&A $30 million, cost of revenue $6 million, operating cash use of $146 million in Q4 and $581 million for FY2025, and capex of $8 million in Q4 / $31 million for FY2025.Aurora Innovation Financial Statement Overview
Summary
Financial profile remains very weak: revenue is minimal (~$3M in 2025) with negative gross profit and very large net losses (~-$816M). Cash burn is substantial with deeply negative operating cash flow (~-$581M) and free cash flow (~-$612M). The balance sheet is comparatively stronger (low leverage; ~$84M debt vs ~$2.14B equity), but ongoing losses are eroding returns (ROE about -38%).Income Statement
Revenue remains extremely small and inconsistent (including multiple years at zero), despite a rebound to ~$3M in 2025. Profitability is very weak: gross profit is negative and losses are substantial, with net income around -$816M in 2025 and similarly large losses in prior years. While losses improved versus the 2022 trough, margins remain deeply negative, indicating the business is still far from operating break-even.12
Very Negative
Balance Sheet
The balance sheet is a relative bright spot: leverage is low with debt-to-equity around ~0.04 in 2025 and debt of ~$84M against ~$2.14B of equity, providing financial flexibility. Total assets are substantial (~$2.34B). The key weakness is ongoing negative returns on equity (about -38% in 2025), showing equity is being eroded by continued losses even though solvency risk from debt is limited.63
Positive
Cash Flow
Cash generation is weak, with operating cash flow negative across all periods (about -$581M in 2025) and free cash flow also deeply negative (about -$612M in 2025). There is modest improvement versus 2024, but the company continues to fund large cash burn. Free cash flow tracks net losses closely, suggesting limited non-cash add-backs and a business still reliant on external funding or existing liquidity to sustain operations.20
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.00M | 0.00 | 0.00 | 68.00M | 82.00M |
| Gross Profit | -14.00M | -676.00M | -716.00M | -609.00M | -615.00M |
| EBITDA | -871.00M | -765.00M | -814.00M | -716.00M | -715.00M |
| Net Income | -816.00M | -748.00M | -796.00M | -1.72B | -755.00M |
Balance Sheet | |||||
| Total Assets | 2.34B | 2.14B | 2.23B | 2.00B | 3.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 1.22B | 1.20B | 1.10B | 1.61B |
| Total Debt | 157.00M | 121.00M | 122.00M | 136.00M | 147.00M |
| Total Liabilities | 203.00M | 263.00M | 250.00M | 217.00M | 348.00M |
| Stockholders Equity | 2.14B | 1.88B | 1.99B | 1.78B | 3.34B |
Cash Flow | |||||
| Free Cash Flow | -612.00M | -645.00M | -613.00M | -523.00M | -611.34M |
| Operating Cash Flow | -581.00M | -611.00M | -598.00M | -508.00M | -563.29M |
| Investing Cash Flow | -245.00M | -172.00M | 8.00M | -852.00M | 249.88M |
| Financing Cash Flow | 834.00M | 492.00M | 831.00M | 11.00M | 1.54B |
Aurora Innovation Technical Analysis
Positive
4.77
Price Trends
4.36
Positive
4.55
Positive
5.26
Negative
Market Momentum
0.08
Negative
58.39
Neutral
89.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUR, the sentiment is Positive. The current price of 4.77 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 4.36, and below the 200-day MA of 5.26, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 89.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AUR.
Aurora Innovation Risk Analysis
Aurora Innovation disclosed 67 risk factors in its most recent earnings report. Aurora Innovation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aurora Innovation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.66B | -19.06 | -3.27% | ― | 7.61% | 88.66% | |
50 Neutral | $9.24B | -10.93 | -40.65% | ― | ― | 5.46% | |
50 Neutral | $778.64M | -2.42 | -192.35% | ― | 89.90% | 5.13% | |
48 Neutral | $195.26M | -2.74 | -71.46% | ― | 46.09% | 46.01% |
* Technology Sector Average
AUR
Aurora Innovation
4.77
-2.24
-31.95%
AEVA
Aeva Technologies
12.54
8.72
228.27%
INVZ
Innoviz Technologies
0.94
0.15
19.26%
MBLY
Mobileye Global, Inc. Class A
9.05
-7.49
-45.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.