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Luminar Technologies (LAZR)
NASDAQ:LAZR
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Luminar Technologies
(NASDAQ:LAZR)
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Rating:42Neutral
Price Target:
$2.00
▼(-0.99% Downside)
Luminar Technologies faces significant financial challenges, with negative margins and declining revenues being the most impactful factors. Technical analysis and valuation also indicate weaknesses, while the earnings call provides a mixed outlook with both achievements and hurdles. The overall score reflects a high-risk investment profile.
Positive Factors
Technical Milestone
Achieving this technical milestone enhances Luminar's competitive edge in LiDAR technology, crucial for autonomous vehicle applications, and strengthens its market position.
Cost Reduction Initiatives
Reducing operating expenses through strategic exits from non-core areas can improve margin sustainability and financial health over the long term.
Diversification
Diversifying into commercial markets with attractive unit economics can stabilize revenue streams and reduce dependency on the automotive sector.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in maintaining sales momentum, which could impact long-term growth and market confidence.
Unfavorable Sensor Economics
Unfavorable economics in sensor sales suggest operational inefficiencies, which may hinder profitability and strain financial resources.
Revised 2025 Guidance
Revising revenue guidance downward reflects potential difficulties in meeting growth targets, affecting investor expectations and strategic planning.
Luminar Technologies (LAZR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$138.90M
Dividend YieldN/A
Average Volume (3M)4.48M
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth-5.22%
EPS Growth84.74%
CountryUS
Employees580
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-1.49
Shares Outstanding63,891,880
10 Day Avg. Volume6,256,432
30 Day Avg. Volume4,477,202
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-0.77
Price to Sales (P/S)2.24
P/FCF Ratio-0.60
Enterprise Value/Market Cap3.65
Enterprise Value/Revenue6.98
Enterprise Value/Gross Profit-23.11
Enterprise Value/Ebitda-9.48
Forecast
1Y Price Target
$2.33Price Target Upside15.35% Upside
Rating ConsensusHold
Number of Analyst Covering4
Luminar Technologies Business Overview & Revenue Model
Company DescriptionLuminar Technologies, Inc., an automotive technology company, provides sensor technologies and software for passenger cars and commercial trucks in North America, the Asia Pacific, Europe, and the Middle East. It operates in two segments, Autonomy Solutions and Components. The Autonomy Solutions segment designs, manufactures, and sells laser imaging, detection, and ranging sensors, as well as related perception and autonomy software solutions primarily for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi, and adjacent industries. The Component segment develops ultra-sensitive pixel-based sensors. This segment also designs, tests, and provides consulting services for non-standard integrated circuits for use in automobile and aeronautics sector, as well as government spending in military and defense activities. The company was founded in 2012 and is headquartered in Orlando, Florida.
How the Company Makes MoneyLuminar Technologies generates revenue primarily through the sale of its LiDAR products and related software solutions to automotive manufacturers and technology companies involved in the development of autonomous vehicles. The company's key revenue streams include direct sales of its LiDAR sensors, software licensing agreements, and long-term contracts with major automotive OEMs (Original Equipment Manufacturers). Significant partnerships with leading car manufacturers, such as Volvo and Daimler, contribute to its earnings by securing multi-year supply agreements and joint development initiatives. Additionally, Luminar is actively pursuing opportunities in adjacent markets, such as robotics and security, which may further diversify its revenue sources.
Luminar Technologies Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Luminar's technical achievements, cost-saving initiatives, and strategic shift towards commercial markets. However, the call also revealed significant revenue declines, production challenges, and revised financial guidance, indicating substantial hurdles ahead.Q2-2025 Updates
Positive Updates
Technical Milestone Achieved
In Q2, Luminar achieved a major technical milestone with a key OEM, successfully demonstrating the ability to detect objects as small as 8 centimeters at distances over 175 meters, which is considered an industry best.
Cost Reduction Initiatives
Luminar is exiting non-core initiatives like data and insurance businesses, expecting to reduce operating expenses by nearly $23 million in annual savings by 2026.
Strengthened Balance Sheet
Reduced the face value of 2026 convertible notes by approximately $440 million since August last year, and secured a $200 million convertible preferred facility.
Diversification into Commercial Markets
Luminar is placing a sharper focus on near-term revenue opportunities in markets like trucking, security, and defense, where they see attractive unit economics and technological advantages.
Negative Updates
Revenue Decline
Q2 revenue was $15.6 million, down 17% sequentially and 5% year-over-year, due to lower-than-expected NRE revenue and reduced shipments to Volvo.
Challenges with EX90 Program
Significant reduction in EX90 production volume estimates, negatively affecting Q2 revenue and the 2025 outlook, with IHS forecasts declining by approximately 15,000 units.
Unfavorable Sensor Economics
Current sensor economics are unfavorable due to lower-than-expected volumes, selling sensors at prices lower than production costs.
Revised 2025 Guidance
Lowered 2025 revenue guidance to $67 million to $74 million, down from the previous $82 million to $90 million, primarily due to lower sensor shipment expectations and exiting non-core data contracts.
Company Guidance
During the Luminar Second Quarter Financial Update Call for Fiscal Year 2025, several key metrics were discussed to guide the company's future. Revenue for Q2 was reported at $15.6 million, showing a 17% sequential decline and a 5% year-over-year decrease. The company revised its 2025 revenue guidance down to $67 million to $74 million, primarily due to a reduction in production volume estimates and strategic exits from noncore business areas, such as data contracts. Luminar achieved a major technical milestone with an OEM, showcasing its ability to detect objects as small as 8 centimeters at over 175 meters, which is crucial for production readiness. The company plans to reduce operating expenses by nearly $23 million annually by 2026 and expects to close the fiscal year with $80 million to $100 million in cash and marketable securities. Additionally, Luminar aims to lower the outstanding balance of its 2026 convertible notes to below $100 million by year-end, having already reduced them by $440 million since August of the previous year.Luminar Technologies Financial Statement Overview
Summary
Luminar Technologies is facing significant financial challenges, with negative gross and net profit margins, declining revenues, and high operational inefficiencies. The balance sheet is unstable with negative equity and high leverage, while cash flow issues persist with negative cash generation and growth.Income Statement
Luminar Technologies has faced significant challenges in its income statement. The company has consistently reported negative gross profit margins, indicating that the cost of goods sold exceeds revenue. The net profit margin is also deeply negative, reflecting substantial losses. Revenue growth has been inconsistent, with a notable decline in the TTM period. The EBIT and EBITDA margins are significantly negative, highlighting operational inefficiencies and high costs relative to revenue.20
Very Negative
Balance Sheet
The balance sheet reveals a precarious financial position for Luminar Technologies. The company has negative stockholders' equity, indicating liabilities exceed assets, which is a significant risk factor. The debt-to-equity ratio is negative, reflecting this imbalance. Return on equity is volatile and negative, suggesting poor returns on shareholders' investments. The equity ratio is also negative, further emphasizing financial instability.15
Very Negative
Cash Flow
The cash flow statement shows persistent negative operating and free cash flows, indicating cash outflows exceed inflows from operations. The free cash flow growth rate is negative, suggesting deteriorating cash generation capabilities. However, the free cash flow to net income ratio is positive, indicating that cash losses are somewhat aligned with accounting losses. The operating cash flow to net income ratio is negative, reflecting challenges in converting accounting profits to cash.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.50M | 75.39M | 69.78M | 40.70M | 31.94M | 13.95M |
| Gross Profit | -21.92M | -25.69M | -72.69M | -60.28M | -14.15M | -11.00M |
| EBITDA | -53.39M | -242.80M | -551.71M | -443.47M | -239.85M | -364.90M |
| Net Income | -120.41M | -273.14M | -571.27M | -445.94M | -237.99M | -362.30M |
Balance Sheet | ||||||
| Total Assets | 265.49M | 365.21M | 512.37M | 687.33M | 883.54M | 510.35M |
| Cash, Cash Equivalents and Short-Term Investments | 107.63M | 182.67M | 289.82M | 488.87M | 792.12M | 485.65M |
| Total Debt | 451.66M | 534.65M | 660.66M | 635.13M | 619.46M | 1.18M |
| Total Liabilities | 513.46M | 586.00M | 737.12M | 713.73M | 685.55M | 361.61M |
| Stockholders Equity | -247.97M | -220.79M | -224.75M | -26.41M | 197.99M | 148.74M |
Cash Flow | ||||||
| Free Cash Flow | -219.38M | -281.72M | -269.22M | -226.30M | -154.85M | -77.84M |
| Operating Cash Flow | -215.65M | -276.63M | -247.30M | -208.23M | -148.42M | -75.64M |
| Investing Cash Flow | 48.37M | 42.46M | 236.63M | 27.99M | -194.19M | -271.79M |
| Financing Cash Flow | 164.09M | 178.26M | 80.20M | -79.35M | 463.59M | 529.85M |
Luminar Technologies Technical Analysis
Negative
2.02
Price Trends
2.36
Negative
2.88
Negative
4.24
Negative
Market Momentum
>-0.01
Negative
45.92
Neutral
36.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAZR, the sentiment is Negative. The current price of 2.02 is above the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.36, and below the 200-day MA of 4.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 36.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAZR.
Luminar Technologies Risk Analysis
Luminar Technologies disclosed 72 risk factors in its most recent earnings report. Luminar Technologies 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
Luminar Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | 4.49B | 261.07 | -2.60% | ― | 36.76% | ― | |
55 Neutral | 341.32M | -4.06 | -80.08% | ― | 17.32% | 37.70% | |
55 Neutral | 94.27M | -0.82 | -339.23% | ― | -23.62% | 71.09% | |
46 Neutral | 777.36M | -5.82 | 52.98% | ― | 12.52% | 22.68% | |
44 Neutral | 853.36M | -2.76 | -153.25% | ― | 111.39% | -74.39% | |
42 Neutral | $138.90M | ― | 146.24% | ― | -5.22% | 84.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
LAZR
Luminar Technologies
2.02
-11.48
-85.04%
AEVA
Aeva Technologies
15.15
11.86
360.49%
INVZ
Innoviz Technologies
1.70
0.87
104.82%
LIDR
AEye Inc
2.36
1.22
107.02%
ECX
ECARX Holdings
2.08
0.17
8.90%
HSAI
Hesai Group Sponsored ADR
28.77
24.08
513.43%
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.