Einride (NASDAQ:ENRD) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below.
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Summary
Einride has entered the public markets with significant momentum, reporting a 26% revenue growth in H1 2026 and expecting this growth rate to more than double in the second half.
The company announced a partnership with Tesla to deploy 500 Tesla Semis, which will triple their fleet size, and completed their first acquisition of Flipturn to enhance their charging network capabilities.
Einride has made substantial progress in autonomous technology, increasing driverless hours by 64% year over year, and is on track to achieve cash flow breakeven by 2028 with a fleet size of 1,500-2,000 vehicles.
Full Transcript
OPERATOR
Good day, and thank you for standing by. Welcome to the Einride First Half 2026 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session, and to ask a question during the session, please press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again.
Please note that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Alexey Maltas, Head of Legal, U.S. Please go ahead.
Alexey Maltas, Head of Legal, U.S.
I'm pleased to be joined today by our CEO, Ruzva Charlie, and our CFO, Anubhav Verma. Following their prepared remarks, we will open the call to questions. Please note that some of the information you'll hear today will include forward-looking statements, such as, but not limited to, statements regarding our product development, business model, performance comparisons to our competitors, market opportunity, potential product sales and future demand, business and strategic opportunities, customer and partner engagement, projections of future operations and financial results, availability of funds, as well as statements containing words like potential, believes, expects, plans, or other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our SEC filings. These filings describe risk factors that could cause our actual results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call, and, except as required by law, we undertake no obligation to update this information.
In addition, we will present certain financial measures on this call that will be considered non-IFRS measures. For reconciliations of each non-IFRS financial measure to the most directly comparable IFRS financial measure, as well as for all the financial data presented on this call, please refer to the information included in our press release and in our Form 6-K dated and submitted to the SEC today, both of which can be found on our corporate website at Einride Tech Investors.
This conference call also will be available for audio replay at Einride Tech Investors. Now I'd like to turn the call over to Ruzva Charlie.
Anubhav Verma, CFO
Thanks, Rosval. I'm excited to share with you our H1 2026 results. As a foreign private issuer, our standard reporting cadence would be a half-year reporting cycle. However, beginning in 2027 we intend to move to a regular cadence of reporting our results on a quarterly basis. For Q3 of this year, we intend to provide a business update and select key figures in the fall. The central theme of our strong H1 results is growth. With our strong momentum, we're now well positioned to continue sustainable long-term growth with our customers through the following drivers.
Number one, we're scaling the business with capital-efficient fleet expansion. We're well on track to triple our fleet size in the near term. This rapid growth is a direct response to our customer demand and underpins the revenue acceleration we discussed earlier. This fleet expansion will be funded through asset-backed debt facilities provided by third parties, resulting in zero equity dilution for our shareholders. We can continue to match asset-backed leverage directly with revenue-generating assets.
In doing so, we preserve our capital and position the company for profitable, sustainable growth. Second, the top-line revenue conversion is expansion fueled by the customer demand. We're seeing strong, repeatable conversion across our sales funnel, moving efficiently from JVPs into revenue. This conversion gives us revenue visibility and validates the underlying unit economics of our freight capacity as a service model. Third, over the past year we deepened our R&D investments to accelerate our R&D efforts towards the further expansion of our autonomous vehicle capabilities.
With these drivers, we are targeting a cash flow breakeven point in 2028. While our FaaS model will be the primary growth driver in the near term, we are simultaneously expanding our technology licensing model for the Einride Driver and Einride Saga AI. We expect these revenue streams to scale up progressively, and the recent work within Defense and our partnership with DAF are examples of the strides we have made so far. In short, we're managing our balance sheet with discipline today, funding our growth efficiently, and investing in the scaling of a high-margin technology platform.
Revenue on a constant currency basis grew from 21 million in H1 2025 to 27 million in H1 2026, up 26%. This top-line performance was driven by expansion within our existing customer portfolio as clients expanded capacity, alongside new customer deployments across our networks. Looking ahead to the second half, we expect our constant currency revenue growth rate to roughly double, taking H2 revenue in the $39 to $42 million range. This acceleration will be fueled primarily by two catalysts: number one, the continued ramp-up of our Amazon deployments and second, the initial deployment phase of our Tesla Semi fleet.
Consequently, we are on track to exit December this year with an annualized revenue run rate of $85 to $95 million. On a constant currency basis, this would result in over 80% increase year over year as compared to December last year, and this trajectory represents the systematic conversion of signed revenue contracts disclosed previously in the year. Now let's talk about our cost structure. Contribution margin is a measure we track closely. It provides a good view on the contracting model and operational development in the deployment portfolio.
It reflects how we are able to drive operational productivity and optimization on our platform. We define contribution margin as our revenue less direct cost of transportation, which primarily includes all variable costs such as driver costs, electricity, maintenance, and insurance, and excludes all vehicle capital costs and certain direct FTE expenses. For H1, our contribution margin stood at 21%. As our revenue expands and fleet utilization climbs in the second half of this year, we expect contribution margin to land between 21% and 23% for the second half of this year.
As we look forward, the combination of higher utilization and progressively lower vehicle acquisition costs will strengthen our operating leverage, ensuring that as revenues scale, they scale even more profitably. Turning to adjusted EBITDA, which has been normalized for one-time transaction expenses related to the business combination, during the past year we have increased investments in tech and R&D to accelerate autonomous development. Furthermore, we have invested in IPO preparedness and central corporate infrastructure and compliance on our path to public markets.
We also made investments in our commercial teams to further drive the growth that has translated into tripling of our pipeline. As of June 30, 2026, adjusted EBITDA was a negative 34.6 million for H1 2026 on a constant currency basis compared to a negative 21 million last year. Looking ahead to the second half of the year, as we continue to invest in our commercial customer ramp, we expect H2 2026 adjusted EBITDA to be between negative 35 and 37 million on a constant currency basis.
As mentioned previously, we are executing on our plan to reach cash flow breakeven point in the second half of 2028 with a deployed fleet of 1,500–2,000 vehicles. The total R&D expenditure on a constant currency basis stood at 20.4 million in H1 2026 compared to 13 million in H1 2025. Following last year's ramp-up, we made foundational investments in R&D to accelerate autonomous vehicles and platform development. These investments directly accelerate two major strategic initiatives: number one, accelerating our autonomous development and number two, advancing the implementation of quantum computing technology into our platform, which will optimize network efficiency and unlock operational leverage across our customer footprint. To close out, three things I'd like you to take away from today: we had a robust H1 performance, setting the stage for the company to double the growth rate in H2 this year. Driven primarily by existing signed contracts, including Amazon and other customers, JVPs and new customers will drive the growth in 2027 and beyond. Number two, with our strategic partnership with Tesla for 500 Semis, we will be tripling our fleet through third-party financing with zero dilution to shareholders.
With their improved hardware and mileage, it will unlock new routes and higher utilization to accelerate conversion of JVPs into revenue. And lastly, our capital-efficient model for growth enables us to scale faster and paves the path for a cash flow breakeven point in 2028. With strong and improving unit cost economics, we're positioned to drive profitability at scale. With that, we'll open the line up for analyst questions. Operator.
OPERATOR
Thank you, sir. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Once again, it's star 11 to ask a question. We are now going to proceed with our first question, and our first questions come from the line of Itai Mikhaili from TD Cowen. Please ask a question.
Itai Mikhaili, Analyst at TD Cowen
Great, thanks. Hi everyone and congrats on your first earnings call. Maybe just as a first question, just hopefully you could talk a bit more about the Tesla Semi economics and kind of how you think how that compares with the other trucks in the fleet and how we should think about the impact go forward to contribution margins and maybe even unlocking part of the 800 million ARR that you have through the deployment of that incremental fleet. Terrific, thank you. As a follow-up, thank you for the color on 2028, the cash flow break even. Hopefully you could maybe have a few more details in terms of thinking about maybe revenue per truck, how you're thinking about utilization and kind of contribution margin in 2028 as well as maybe a little bit on kind of OPEX growth and even a little bit it looks like there's a little bit of licensing revenue you expect by then as well. So any of those details would be super helpful.
Thank you.
Anubhav Verma, CFO
Yep, of course. Thanks, Itai. So the way we think about the utilization: today roughly our trucks operate at $300,000 per year. We expect that with the deployment, with the inclusion of Teslas in our fleet, this number will climb up and, obviously driven by more customers on our Saga AI platform, we will be able to drive this number up. And obviously the incremental growth in the revenue per truck will be dropping down to the contribution margin because that's really driven by—because we have fixed costs—so that will drop down to the bottom line.
What is very helpful here, as the cost of vehicles, electric vehicles, improve, the net profit, including the hardware cost, will also work in our favor for the net cash profit to further ramp up in 2028. So those are the two drivers for cash flow breakeven from the operating side because our platform, the electric vehicle platform, has gotten better. And lastly, I would say in terms of increasing our investment—so, look, our R&D cost structure is pretty competitive and we might need to ramp up some R&D investments in the coming years.
But we expect that with the increasing utilization and the number of trucks in our fleet, we expect to hit cash flow breakeven driven by these factors. So that's why we have a path to breakeven in 2028.
Itai Mikhaili, Analyst at TD Cowen
Terrific. That's all very helpful, thank you.
OPERATOR
We are now going to proceed with our next question and the questions come from the line of Chris McNally from Evercore. Please ask your question.
Chris McNally, Analyst at Evercore
Congrats, particularly on the Tesla announcement, which I know will probably be covered well over the course of the call. So maybe we could focus on the AV side where, you know, somewhat ironically it's been the legacy Class 8 OEMs which have been one of the industry bottlenecks. The traditional—
OPERATOR
Sorry, Chris, we can't really hear. Could you speak up a bit? Sorry about that.
Chris McNally, Analyst at Evercore
Sorry about that. My question's on the AV side where somewhat ironically it's been the legacy Class 8 OEMs as one of the industry bottlenecks. I think the traditional OEMs have been rather slow for production-ready redundant chassis thus far, and it's a bigger issue with trucking than AV rideshare because of the cost of the validation. It's going to sit on you and upfitters for the time being. My question, Ruth Bae, could you talk a little bit about how you're thinking about that bottleneck with your cabless AV pod as a separate issue and then really relate that to the DAF partnership, which sounds like it's a step in the right direction for highly Class 8. Thanks so much.
Good path together with that and just the follow-up, to paraphrase. So the upfit will be sort of stage one. You know, you'll determine who the outfitter is for someone like DAF probably going forward soon, but then that will theoretically develop the relationship when an OEM is ready for their production, assemble validated AV vehicles. Is that a fair way of discussing it? Yeah. The second part is that that would be an evolution into when an OEM is ready for a production ready vehicle.
Thank you team. Sorry about that.
OPERATOR
We are now going to proceed with our next question and our next questions come from the line of Jesse Sebelson from BTIG. Please ask your question.
Jesse Sebelson, Analyst at BTIG
Hey everyone, congrats on your closing the transaction and moving forward here with your first earnings call. I'm curious on just the scaling of the fleet. You mentioned the Tesla deliveries is 500 to triple. It sounds like roughly the fleet might be around 250. And then you mentioned, I think, the first wave of a contract with Amazon. I'm not sure if that's 75 or just a portion of it. Can you tell us where the fleet is today and where we expect the fleet to be by the end of this fiscal year?
Okay, great. And then in terms of just thinking about the contribution margin versus the gross margin here, 21% contribution margin minus 50% gross margin must imply there's a lot of fixed costs in this gross line that maybe need to be covered through scaling. Can you just elaborate on the difference there and what needs to happen to improve gross margin to get to a level where we'll be at a cash flow break-even rate in 2028? Thank you.
Anubhav Verma, CFO
Yes, Jesse. So in the gross margin line there is depreciation and amortization of roughly about 95 million SEK or thereabouts. So the way I want you to think about this is obviously as we ramp up customers, there are fixed costs that are in the system, and as we ramp up the revenue, scale much faster than the costs. So what we expect in the future is this contribution margin of 20% where we are today to trend towards the 35% number which we have also guided the markets in the long term, what we believe the business can perform.
So we expect we'll have a trajectory going from 20% to 35%. And in my prior comment I also mentioned about, as the vehicle costs or the vehicle acquisition costs come down, the net cost will also come down after the contribution margin. So essentially the gross margin will start trending towards 20% going forward. And that's what we estimate to happen in the next short to medium term as we improve utilization. Because remember, every extra dollar of revenue comes down to the bottom line.
Jesse Sebelson, Analyst at BTIG
Thank you.
OPERATOR
We are now going to proceed with our next question. And the questions come from the line of Matt Paciulli from Canaccord Genuity. Please ask your question.
Matt Paciulli, Analyst at Canaccord Genuity
Hi everyone, thank you for taking my questions and congrats on all the success the quarter. Maybe just on the joint business plans you have. So you're kind of targeting this 85 to 95 million of ARR by December of the year. What are the kind of key bottlenecks to accelerating that, and how should we think about those conversions falling over the coming months and as we move into early 2027? Great. And maybe just on the path to 1,500–2,000 trucks that you've outlined for your cash flow break-even, you'll be at kind of 750 is the number I believe you've mentioned by the end of 2027. Where do those incremental kind of thousand-ish trucks come from? And then maybe just to double up on the cash flow break-even. Is that exclusively through just having trucks on your platform or do autonomy and your other revenue streams really help to drive that further?
And is it a factor of that? Great, thank you.
OPERATOR
We are now going to proceed with our next question and the questions come from the line of Ryan Sigdal from Craig-Hallum Capital Group. Please ask your question.
Ryan Sigdal, Analyst at Craig-Hallum Capital Group
Hey, good day guys. On the Tesla, just a few follow-ups. Maybe talk through: first phase implies something 150 by year end. What are the next phases as we think about getting all of those deployed next year? And then terms on the third-party financing, if you can share them. And then lastly, do you have any customers that are specifically requesting the Tesla Semi trucks, or do you plan to just opportunistically, based on saga, deploy these across all of your various routes?
Anubhav Verma, CFO
And regarding the terms of the financing, we'll be posting some more information in our 6-K that will be published shortly. So I'm excited about this financing, Ryan, because this is a 100% asset-backed equipment loan with no equity down for the truck. It's a facility that we can draw down with the delivery of the trucks as the delivery rolls around in our schedule. The effective interest rate is roughly around 14%, which again signals the evolution of the financing markets in this particular asset class as well.
As the technology improves, as the hardware improves, the financeability of these assets also improves as the range and the hardware become better. So this would be a four-year facility with each draw. Like I said, there will be more information, but I'm excited about the terms and the fact that the fleet can be funded with zero equity.
Ryan Sigdal, Analyst at Craig-Hallum Capital Group
Then just on the DAF announcement partnership, can you explain what each side is doing here? Because I guess it sounds like an upfit agreement first, maybe that eventually moves to a factory line-side integration in the future. But with the upfit, are you guys effectively buying trucks, upfitting them, deploying them, and handling the costs, or what is each side doing here? And then what are the key milestones we should be watching for over the coming quarters?
Roozbi Charlie, CEO
Yeah, I mean to start with, I think the first phase that we're in right now is the sort of initial testing and initial interfacing between the two, being also verified by TNO in terms of the safety case and the integration of the language in which the platforms speak to each other, basically. And then for next year there will be the commissioning of the trucks, and then following that we'll go into the sort of scale deposits we're working through together with DAF in terms of the exact timing and exact details of how that scaling is going to look and the economic models around it.
But right now we're focused on doing the commissioning, doing the testing, doing the commissioning, getting the first set of vehicles out on the road, and then in parallel also working on the public road verification for the platform. I'm not aware of that together with DAF. So we are the first partner, as far as I'm aware, that they're working on like this on the, on the, on the electric side. So, sorry, but this is their electric platform as well.
Thank you.
OPERATOR
As a reminder to ask a question, please press Star one one on your telephone and wait for your name to be announced. To withdraw your question, please press Star one one again. We are now going to proceed with our next question, and the questions come from the line of Mike Latimer from Northland Capital Markets. Please ask your question.
Mike Latimer, Analyst at Northland Capital Markets
Great. Good morning. Congrats on the first earnings call here. You mentioned the pipeline tripled. Can you just give a little bit more detail on what you're seeing there? You know, is it coming in, how diverse is it, you know, what regions it's coming from, you know, what use cases are there, you know, tied to more marketing — or just a little more detail on why the pipeline's growing so quickly?
Roozbi Charlie, CEO
Yeah, absolutely. I would say it's a combination of a few things. I would say that it is, you know, quite concerted efforts in terms of investments into our sales team and sort of, you know, and marketing, etc. Related to that, I would say that we see a stronger development on the US side also following the Amazon announcement. I think the sort of conclusion, I think a lot of the market drew from that is, if these guys can handle the complexity of Amazon's network, they can handle ours.
So we had quite a lot of, you know, inbound and sort of increasing that following the Amazon announcement as well. But also I would say growing across our verticals, and it's also, you know, as we go live with more and more customers and continue scaling with more customers both in Europe and the US, that also has an effect on — especially within the verticals that we're focusing on. So I would say it's a combination of good continued momentum with existing customers and also concerted efforts on our side.
Mike Latimer, Analyst at Northland Capital Markets
Great, great. And then maybe just in terms of the time to convert customers from pilots to deployment and also just the deployment timeframes, how do you see those trending over the next year or so?
Roozbi Charlie, CEO
Yeah, I mean, so generally speaking — and then I could comment a bit more specifically on what we're seeing right now. Generally speaking, the land-and-expand sales strategy that we sort of had — get in with the large transport buyers, analyze the data, set that plan, and then gradually scale together with them — is also partly set because the initial sales cycle is long. Right? If you're selling to a PepsiCo or an Amazon or others, you're going to have a long initial sales cycle.
But what we see across the customer base is that the customers continue to scale with us. It's worth investing that time. I do see — to comment mostly on the trends sort of more near term — I would say we've definitely seen deployment cycles and deployment time come down quite significantly over the past 12–18 months, as driven by both the availability of hardware as we build out our charging infrastructure. You're deploying into a network where you already have infrastructure set up.
You're deploying into regions where you have a context already. So we're sort of shortening lead times there. So I would say generally trending in a good way when it comes to the time between, you know, sort of sale and deployment.
Mike Latimer, Analyst at Northland Capital Markets
Great, thanks a lot. Best of luck this year.
Roozbi Charlie, CEO
Thank you so much.
OPERATOR
We are now going to proceed with our next question, and the questions come from the line of Colin Rouge from Oppenheimer and Company. Please ask your question.
Colin Rouge, Analyst at Oppenheimer & Co.
Thanks so much, guys. You know, with the Tesla agreement, can you talk about any sort of performance guarantees that you're getting from them in terms of uptime, as well as any contributions around maintenance and charging — any other infrastructure access that you'll get in that agreement? Great. And then in terms of the military opportunity, obviously you guys are in a unique position to support a variety of applications. Can you talk about just the pipeline of opportunities you're looking at, how you see that converting into actual sales agreements, and then the potential revenue ramp?
Roozbi Charlie, CEO
Yeah, so I would say that we're getting pretty good — I can't go into all of the details of the comparison. We are working with them on the charging side and choosing the locations in which, you know, based on what we see on our customers' data, where we're being deployed, and the buildout of their charging infrastructure network. So we're in good sort of collaboration on that side, and I would say sort of, you know, pretty decent terms when it comes to downtime and provisions like that, without necessarily going through all of the details, unfortunately.
Yeah, no, that's a question. I think we're sort of in the early, early phases of that effort. We started actually from a, you know, from a sort of, you know, making our Android driver available — taking it basically outside of our own vehicle platforms and with the ambition of deploying it into other vehicle platforms. That was about 12 months ago or so. And on the back of that we had a pilot contract with a NATO-allied organization to sort of work on a couple of vehicle platforms.
We then took that to the Swedish resilience initiative we're working on as well. So I would say we're in the initial phases of that. I expect to see, in terms of revenues, that progressively we'll start seeing some revenues for next year, and then gradually scaling into becoming a more and more important part of the business.
Colin Rouge, Analyst at Oppenheimer & Co.
Great. Thanks so much, guys.
Roozbi Charlie, CEO
Thank you.
OPERATOR
Thank you. We have no further questions at this time. So I'll now hand back to Roozbi Charlie, CEO, for closing remarks.
Roozbi Charlie, CEO
Perfect. Thank you. Thank you, everyone, for joining us on this first earnings call. As a public company, we very much look forward to hosting you again for our Q3 update in the fall. So please keep a lookout for that when that comes. Thank you so much for today.
OPERATOR
This concludes today's conference call. Thank you all for participating. You may now disconnect your line. Thank you.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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