NOTE 9 - SEGMENT INFORMATION An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer (“CEO”). The Company’s organizational structure and management reporting supports two operating segments: Mobileye and Moovit. The CODM evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Operating segments do not record inter-segment revenue. Mobileye is presented as a reportable operating segment and Moovit, which is a mobility-as-a-service company, is presented within “Other” as per ASC 280, Segment Reporting. The CODM uses segment performance to allocate resources to segments in the annual budget and forecasting process and also uses that measure to assess the segment performance. Segment performance is the operating income (loss) reported excluding the amortization of acquisition-related intangible assets, share-based compensation expense, R&D Law incentive grant related to ordinary income from sold RSUs, acquisition related expenses and impairment of goodwill. The measure of assets has not been disclosed for each segment as it is not regularly provided to the CODM. The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in Note 2 to the audited consolidated financial statements for the fiscal year ended December 27, 2025. The following are segment results for each period as follows: | | | | | | | | | | | | Three Months Ended June 27, 2026 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 498 | | $ | 10 | | $ | 508 | Cost of revenues | | | 174 | | | 1 | | | — | Research and development, net | | | 152 | | | 5 | | | — | Sales and marketing | | | 5 | | | 4 | | | — | General and administrative | | | 11 | | | 1 | | | — | Segment performance | | $ | 156 | | $ | (1) | | $ | 155 | Amortization of intangible assets | | | — | | | — | | | (114) | Share-based compensation | | | — | | | — | | | (88) | R&D Law incentive grant related to ordinary income from sold RSUs | | | — | | | — | | | 17 | Financial income (expense), net | | | — | | | — | | | 13 | Income (loss) before taxes on income | | | — | | | — | | $ | (17) | Depreciation of property and equipment | | $ | 22 | | $ | — | | $ | 22 |
| | | | | | | | | | | | Three Months Ended June 28, 2025 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 497 | | $ | 9 | | $ | 506 | Cost of revenues | | | 159 | | | 1 | | | — | Research and development, net | | | 215 | | | 7 | | | — | Sales and marketing | | | 4 | | | 2 | | | — | General and administrative | | | 11 | | | 1 | | | — | Segment performance | | $ | 108 | | $ | (2) | | $ | 106 | Amortization of intangible assets | | | — | | | — | | | (111) | Share-based compensation | | | — | | | — | | | (69) | Financial income (expense), net | | | — | | | — | | | 13 | Income (loss) before taxes on income | | | — | | | — | | $ | (61) | Depreciation of property and equipment | | $ | 18 | | $ | — | | $ | 18 |
| | | | | | | | | | | | Six Months Ended June 27, 2026 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 1,047 | | $ | 19 | | $ | 1,066 | Cost of revenues | | | 360 | | | 3 | | | — | Research and development, net | | | 397 | | | 13 | | | — | Sales and marketing | | | 14 | | | 6 | | | — | General and administrative | | | 21 | | | 2 | | | — | Segment performance | | $ | 255 | | $ | (5) | | $ | 250 | Amortization of intangible assets | | | — | | | — | | | (227) | Share-based compensation | | | — | | | — | | | (172) | R&D Law incentive grant related to ordinary income from sold RSUs | | | — | | | — | | | 17 | Acquisition related expenses | | | — | | | — | | | (6) | Goodwill impairment | | | — | | | — | | | (3,788) | Financial income (expense), net | | | — | | | — | | | 27 | Income (loss) before taxes on income | | | — | | | — | | $ | (3,899) | Depreciation of property and equipment | | $ | 42 | | $ | — | | $ | 42 |
| | | | | | | | | | | | Six Months Ended June 28, 2025 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 925 | | $ | 19 | | $ | 944 | Cost of revenues | | | 293 | | | 3 | | | — | Research and development, net | | | 427 | | | 14 | | | — | Sales and marketing | | | 14 | | | 5 | | | — | General and administrative | | | 21 | | | 2 | | | — | Segment performance | | $ | 170 | | $ | (5) | | $ | 165 | Amortization of intangible assets | | | — | | | — | | | (222) | Share-based compensation | | | — | | | — | | | (134) | Financial income (expense), net | | | — | | | — | | | 31 | Income (loss) before taxes on income | | | — | | | — | | $ | (160) | Depreciation of property and equipment | | $ | 36 | | $ | — | | $ | 36 |
Total revenues based on the country that the product was shipped to were as follows: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 27, | | June 28, | | June 27, | | June 28, | U.S. dollars in millions | | 2026 | | 2025 | | 2026 | | 2025 | USA | | $ | 114 | | $ | 109 | | $ | 244 | | $ | 220 | China | | | 122 | | | 101 | | | 235 | | | 201 | Germany | | | 72 | | | 88 | | | 149 | | | 162 | South Korea | | | 49 | | | 53 | | | 115 | | | 86 | Slovakia | | | 35 | | | 19 | | | 83 | | | 33 | Poland | | | 31 | | | 29 | | | 59 | | | 57 | United Kingdom | | | 27 | | | 33 | | | 49 | | | 69 | Hungary | | | 14 | | | 28 | | | 40 | | | 45 | Czech Republic | | | 12 | | | 20 | | | 32 | | | 27 | Thailand | | | 10 | | | 9 | | | 20 | | | 11 | Rest of World | | | 22 | | | 17 | | | 40 | | | 33 | Total | | $ | 508 | | $ | 506 | | $ | 1,066 | | $ | 944 |
We generate the majority of our revenue from the sale of our EyeQTM SoCs to OEMs primarily through sales to Tier 1 automotive suppliers. EyeQTM SoC sales represented approximately 90% and 92% of our revenue for each of the three months ended June 27, 2026 and June 28, 2025, respectively, and 91% and 93% of our revenue for each of the six months ended June 27, 2026 and June 28, 2025, respectively. Major Customers Revenue from major customers that amount to 10% or more of total revenue: | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 27, | | June 28, | | June 27, | | June 28, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Percent of total revenues: | | | | | | | | | | Customer A | | 28 | % | 28 | % | 27 | % | 32 | % | Customer D | | 16 | % | 12 | % | 16 | % | 13 | % | Customer C | | 15 | % | 17 | % | 16 | % | 15 | % | Customer B | | 14 | % | 21 | % | 15 | % | 19 | % |
Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance: | | | | | | | | As of | | | | June 27, | | December 27, | | | | 2026 | | 2025 | | Percent of total accounts receivables balance: | | | | | | Customer A | | 33 | % | 39 | % | Customer D | | 19 | % | 13 | % | Customer C | | 15 | % | 14 | % | Customer B | | 11 | % | * | |
* Less than 10%
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