Total revenue was SEK89.6m, +30% y/y but 8% below our estimates of SEK97.6m. Mainly, Automotive Solutions came in lower than we had estimated, partly due to less NRE revenues compared to last year. EBITDA was SEK -23m and EBITDA-CAPEX was SEK -48m, missing our estimates of SEK -4m and SEK -28m respectively. OPEX was higher than we had estimated, mainly stemming from salary revisions in R&D. However, with a typical six-month lag from start of production to full production for each car model, the increased pace of cars reaching production should bolster growth from Q3 and onwards.

Smart Eye's estimated timing for break-even (on cash-flow basis) has been pushed forward by one quarter - from Q4'24/Q1'25, to the new estimate being Q1-Q2'25. With SEK192m in available cash, we still consider Smart Eye's balance sheet solid.

On the back of the Q2 report, we increase estimates on costs while lowering sales estimates, leading to reducing our 2026e EBITDA estimates by 20%. Following this, we reduce our fair value range from SEK50-210 to SEK45-190, with Base Case lowered from SEK155 to SEK140. At SEK90 per share, we estimate Smart Eye to be trading at 9.2x FCF on 2026e and 5.7x FCF on 2027e.