Aurora Innovation, Inc.
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
AUR$4.41+9.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001828108-25-000139
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-28.
0001828108-25-000157
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 43 current paragraphs.
23 unchanged; 19 reworded; 1 added; 2 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Revenue was $2 million in the nine months ended September 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025.
Removed paragraphs (2)
Previous report
Recent Developments
Previous report
In April 2025, we launched Aurora Driver for Freight and began driverless operations of trucks hauling customer loads between Dallas and Houston, Texas. We commenced recognizing revenue during the three months ended June 30, 2025.
Reworded paragraphs (19)
Previous wording
We expect that the Aurora Driver will ultimately be commercialized in a Driver as a Service (“DaaS”) business model, in which customers or third parties will purchase, manage, and maintain fleets directly, while subscribing to the Aurora Driver and a suite of related services. We do not intend to own nor operate a large number of vehicles ourselves. Throughout commercialization, we expect to earn revenue on a fee per mile basis. We intend to partner with OEMs, Tier 1 automotive suppliers, fleet operators, and other third parties to commercialize and support Aurora Driver-powered vehicles. We expect that these strategic partners will support activities such as vehicle and hardware manufacturing, financing and leasing, service and maintenance, parts replacement, facility ownership and operation, and other commercial and operational services as needed. We expect this DaaS model to enable an asset-light and high margin revenue stream for Aurora, while allowing us to scale more rapidly through partnerships. During the start of commercialization, though, we are operating our own logistics and mobility services, where we own or lease and operate a fleet of vehicles equipped with our Aurora Driver and provide transportation services to customers through driverless operations as well as with vehicle operators as needed. This level of control is useful during early commercialization as we define operational processes and playbooks for our partners.
Current wording
We expect that the Aurora Driver will ultimately be commercialized in a Driver as a Service (“DaaS”) business model, in which customers or third parties will purchase, manage, and maintain fleets directly, while subscribing to the Aurora Driver and a suite of related services. We do not intend to own nor operate a large number of vehicles ourselves. Throughout commercialization, we expect to earn revenue on a fee per mile basis, or a comparable pricing mechanism. We intend to partner with OEMs, Tier 1 automotive suppliers, fleet operators, and other third parties to commercialize and support Aurora Driver-powered vehicles. We expect that these strategic partners will support activities such as vehicle and hardware manufacturing, financing and leasing, service and maintenance, parts replacement, facility ownership and operation, and other commercial and operational services as needed. We expect this DaaS model to enable an asset-light and high margin revenue stream for Aurora, while allowing us to scale more rapidly through partnerships. During the start of commercialization, though, we are operating our own logistics and mobility services, where we own or lease and operate a fleet of vehicles equipped with our Aurora Driver and provide transportation services to customers through driverless operations as well as with vehicle operators as needed. This level of control is useful during early commercialization as we define operational processes and playbooks for our partners.
Previous wording
Cost of revenue was $5 million in the three months ended June 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025. Non-cash stock based compensation in cost of revenue was not significant.
Current wording
Cost of revenue was $6 million in the three months ended September 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025. Non-cash stock based compensation in cost of revenue was not significant.
Previous wording
Research and development expenses increased by $20 million, or 12%, to $190 million in the three months ended June 30, 2025 from $170 million in the three months ended June 30, 2024, primarily driven by an increase in personnel costs and hardware development costs, partially offset by expenses recognized as cost of revenue due to commercial launch in April 2025. Research and development expenses included non-cash stock-based compensation of $44 million and $32 million in the three months ended June 30, 2025 and 2024, respectively.
Current wording
Research and development expenses increased by $10 million, or 6%, to $179 million in the three months ended September 30, 2025 from $169 million in the three months ended September 30, 2024, primarily driven by an increase in non-cash stock-based compensation costs, partially offset by costs now recognized as cost of revenue after commercial launch in April 2025 as well as costs now recognized as selling, general and administrative due to a realignment of resources. Research and development expenses included non-cash stock-based compensation of $41 million and $30 million in the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Selling, general and administrative expenses increased by $8 million, or 29%, to $36 million in the three months ended June 30, 2025 from $28 million in the three months ended June 30, 2024, primarily driven by an increase in personnel costs. Selling, general and administrative expenses included non-cash stock-based compensation of $11 million and $6 million in the three months ended June 30, 2025 and 2024, respectively.
Current wording
Selling, general and administrative expenses increased by $11 million, or 41%, to $38 million in the three months ended September 30, 2025 from $27 million in the three months ended September 30, 2024, primarily driven by an increase in personnel costs, costs previously recognized in research and development now included in selling, general and administrative due to a realignment of resources, and non-cash stock-based compensation. Selling, general and administrative expenses included non-cash stock-based compensation of $10 million and $5 million in the three months ended September 30, 2025 and 2024, respectively.
Previous wording
The Change in fair value of derivative liabilities was income of $16 million and $1 million in the three months ended June 30, 2025 and 2024, respectively, primarily due to the change in the market price for the underlying instrument during each period.
Current wording
The change in fair value of derivative liabilities was income of $5 million and expense of $28 million in the three months ended September 30, 2025 and 2024, respectively, primarily due to the change in the market price for the underlying instrument during each period.
Previous wording
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current wording
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Previous wording
Cost of revenue was $5 million in the six months ended June 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025. Non-cash stock based compensation in cost of revenue was not significant.
Current wording
Cost of revenue was $11 million in the nine months ended September 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025. Non-cash stock based compensation in cost of revenue was not significant.
Previous wording
Research and development expenses increased by $36 million, or 11%, to $372 million in the six months ended June 30, 2025 from $336 million in the six months ended June 30, 2024, primarily driven by increases in non-cash stock-based compensation, hardware costs for development fleets, and personnel costs, partially offset by expenses recognized as cost of revenue due to commercial launch in April 2025. Research and development expenses included non-cash stock-based compensation of $73 million and $63 million in the six months ended June 30, 2025 and 2024, respectively.
Current wording
Research and development expenses increased by $46 million, or 9%, to $551 million in the nine months ended September 30, 2025 from $505 million in the nine months ended September 30, 2024, primarily driven by increases in non-cash stock-based compensation, hardware costs for development fleets, and personnel costs, partially offset by expenses recognized as cost of revenue due to commercial launch in April 2025. Research and development expenses included non-cash stock-based compensation of $114 million and $93 million in the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Selling, general and administrative expenses increased by $10 million, or 18%, to $65 million in the six months ended June 30, 2025 from $55 million in the six months ended June 30, 2024 primarily driven by increases in personnel costs. Selling, general and administrative expenses included non-cash stock-based compensation of $16 million and $11 million in the six months ended June 30, 2025 and 2024, respectively.
Current wording
Selling, general and administrative expenses increased by $21 million, or 26%, to $103 million in the nine months ended September 30, 2025 from $82 million in the nine months ended September 30, 2024 primarily driven by increases in personnel costs, non-cash stock based compensation, and costs previously recognized in research and development now included in selling, general and administrative due to a realignment of resources. Selling, general and administrative expenses included non-cash stock-based compensation of $26 million and $16 million in the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The Change in fair value of derivative liabilities resulted in income of $7 million and $13 million in the six months ended June 30, 2025 and 2024, respectively, primarily due to the change in the market price for the underlying instrument.
Current wording
The change in fair value of derivative liabilities resulted in income of $12 million and expense of $15 million in the nine months ended September 30, 2025 and 2024, respectively, primarily due to the change in the market price for the underlying instrument.
Previous wording
Other income, net decreased by $2 million, or 13%, to $13 million in the three months ended June 30, 2025, from $15 million in the three months ended June 30, 2024, primarily due to a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.
Current wording
Other income, net decreased by $6 million, or 13%, to $41 million in the nine months ended September 30, 2025, from $47 million in the nine months ended September 30, 2024, primarily due to a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.
Previous wording
As of June 30, 2025, our principal sources of liquidity were $206 million of cash and cash equivalents and $1,103 million of short-term investments, exclusive of restricted cash of $16 million. Investments consist of primarily U.S. Treasury securities as well as corporate bonds and commercial paper.
Current wording
As of September 30, 2025, our principal sources of liquidity were $87 million of cash and cash equivalents, $1,160 million of short-term investments, and $357 million of long-term investments, exclusive of restricted cash of $15 million. Short-term and long-term investments consist of primarily U.S. Treasury securities as well as corporate bonds and commercial paper.
Previous wording
During the three months ended June 30, 2025, we offered and sold 57 million shares of Class A common stock through the ATM Program, raising $340 million in equity capital and receiving net proceeds of $331 million after transaction costs.
Current wording
During the three months ended September 30, 2025, we offered and sold 80 million shares of Class A common stock through the ATM Program, raising $473 million in equity capital and receiving net proceeds of $460 million after transaction costs.
Previous wording
During the six months ended June 30, 2025, we offered and sold 67 million shares of Class A common stock through the ATM Program, raising $410 million in equity capital and receiving net proceeds of $399 million after transaction costs.
Current wording
During the nine months ended September 30, 2025, we offered and sold 147 million shares of Class A common stock through the ATM Program, raising $883 million in equity capital and receiving net proceeds of $859 million after transaction costs.
Previous wording
Net cash used in operating activities was $286 million for the six months ended June 30, 2025, a decrease of $40 million from $326 million for the six months ended June 30, 2024 primarily due to the annual bonus being settled in equity in the current year.
Current wording
Net cash used in operating activities was $435 million for the nine months ended September 30, 2025, a decrease of $34 million from $469 million for the nine months ended September 30, 2024 primarily due to the annual bonus being settled in equity in the current year.
Previous wording
Cash Flows (Used In) Provided by Investing Activities
Current wording
Cash Flows Used In Investing Activities
Previous wording
Net cash used in investing activities was $99 million for the six months ended June 30, 2025 compared to net cash provided by investing activities of $221 million for the six months ended June 30, 2024. The change was primarily due to increased purchases of investments partially offset by increased maturities of investments.
Current wording
Net cash used in investing activities was $518 million for the nine months ended September 30, 2025, an increase of $273 million from $245 million for the nine months ended September 30, 2024. The change was primarily due to increased purchases of investments partially offset by increased maturities of investments.
Previous wording
Net cash provided by financing activities was $380 million for the six months ended June 30, 2025, an increase of $374 million from $6 million for the six months ended June 30, 2024, primarily due to proceeds from the ATM program as well as increased proceeds from the exercise of stock options, partially offset by the tax payments in connection with the net settlement of RSUs.
Current wording
Net cash provided by financing activities was $828 million for the nine months ended September 30, 2025, an increase of $353 million from $475 million for the nine months ended September 30, 2024, primarily due to proceeds from the ATM Program as well as increased proceeds from the exercise of stock options, partially offset by the tax payments in connection with the net settlement of RSUs.
Previous wording
Aurora may be party to various claims within the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. We assess the need to record a liability for litigation and other loss contingencies, with reserve estimates recorded if we determine that a loss related to the matter is both probable and reasonably estimable. No material losses were recorded in the three and six months ended June 30, 2025 and 2024.
Current wording
Aurora may be party to various claims within the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. We assess the need to record a liability for litigation and other loss contingencies, with reserve estimates recorded if we determine that a loss related to the matter is both probable and reasonably estimable. No material losses were recorded in the three and nine months ended September 30, 2025 and 2024.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Launch of Aurora Driver for Freight
Previous report — wording carried elsewhere
Revenue was $1 million in the six months ended June 30, 2025 due to the commercial launch of Aurora Driver for Freight in April 2025.
Previous report — wording carried elsewhere
Other income, net decreased by $6 million, or 19%, to $25 million in the six months ended June 30, 2025, from $31 million in the six months ended June 30, 2024, primarily due to a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.