Aurora Innovation, Inc.
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
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, 2026 · Filed Oct 28, 2026
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 2026-06-30; filed 2026-07-29.
0001828108-26-000077
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001828108-26-000094
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 45 previous paragraphs and 45 current paragraphs.
25 unchanged; 20 reworded; 0 added; 0 removed; 0 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.
Reworded paragraphs (20)
Previous wording
Revenue increased by $1 million, or 100%, to $2 million in the three months ended June 30, 2026 from $1 million in three months ended June 30, 2025, primarily due to increased utilization, geographical expansion, and higher fuel surcharges.
Current wording
Revenue increased by $2 million, or 200%, to $3 million in the three months ended September 30, 2026 from $1 million in the three months ended September 30, 2025, primarily due to increased utilization, geographical expansion, and higher fuel surcharges.
Previous wording
Cost of revenue increased by $2 million, or 40%, to $7 million in the three months ended June 30, 2026 from $5 million in the three months ended June 30, 2025, primarily due to an increase in terminal, personnel, and fuel expenses due to increased utilization and geographical expansion. Non-cash stock based compensation in cost of revenue was not significant.
Current wording
Cost of revenue increased by $2 million, or 33%, to $8 million in the three months ended September 30, 2026 from $6 million in the three months ended September 30, 2025, primarily due to an increase in personnel and fuel expenses due to increased utilization and geographical expansion. Non-cash stock-based compensation in cost of revenue was not significant.
Previous wording
Research and development expenses increased by $21 million, or 11%, to $211 million in the three months ended June 30, 2026 from $190 million in the three months ended June 30, 2025, primarily driven by an increase in hardware development costs, cloud computing costs, non-cash stock-based compensation costs, and personnel 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 $47 million and $44 million in the three months ended June 30, 2026 and 2025, respectively.
Current wording
Research and development expenses increased by $24 million, or 13%, to $203 million in the three months ended September 30, 2026 from $179 million in the three months ended September 30, 2025, primarily driven by an increase in personnel costs, hardware development costs, cloud computing costs, and 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 $43 million and $41 million in the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Selling, general and administrative expenses increased by $14 million, or 39%, to $50 million in the three months ended June 30, 2026 from $36 million in the three months ended June 30, 2025, primarily driven by an increase in personnel costs including 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 $13 million and $11 million in the three months ended June 30, 2026 and 2025, respectively.
Current wording
Selling, general and administrative expenses increased by $11 million, or 29%, to $49 million in the three months ended September 30, 2026 from $38 million in the three months ended September 30, 2025, primarily driven by an increase in personnel costs including 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 $11 million and $10 million in the three months ended September 30, 2026 and 2025, respectively.
Previous wording
The change in fair value of derivative liabilities resulted in expense of $16 million and income of $16 million in the three months ended June 30, 2026 and 2025, 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 resulted in income of $13 million and $5 million in the three months ended September 30, 2026 and 2025, respectively, primarily due to the change in the market price for the underlying instrument during each period.
Previous wording
Other income, net decreased by $1 million, or 8%, to $12 million in the three months ended June 30, 2026, from $13 million in the three months ended June 30, 2025, 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 38%, to $10 million in the three months ended September 30, 2026, from $16 million in the three months ended September 30, 2025, primarily due to a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.
Previous wording
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current wording
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Previous wording
Revenue increased by $2 million, or 200%, to $3 million in the six months ended June 30, 2026 from $1 million in the six months ended June 30, 2025, primarily due to increased utilization, geographical expansion, and higher fuel surcharges, as well as the full six months of commercial operations in the current period, compared to a partial period of operations following the commercial launch of Aurora Driver for Freight in April 2025.
Current wording
Revenue increased by $4 million, or 200%, to $6 million in the nine months ended September 30, 2026 from $2 million in the nine months ended September 30, 2025, primarily due to increased utilization, geographical expansion, and higher fuel surcharges, as well as the full nine months of commercial operations in the current period, compared to a partial period of operations following the commercial launch of Aurora Driver for Freight in April 2025.
Previous wording
Cost of revenue increased by $8 million, or 160%, to $13 million in the six months ended June 30, 2026 from $5 million in the six months ended June 30, 2025, primarily due to the full six months of commercial operations in the current period compared to a partial period of operations following the commercial launch of Aurora Driver for Freight in April 2025, and an increase in terminal, personnel, and fuel expenses due to increased utilization and geographical expansion. Non-cash stock based compensation in cost of revenue was not significant.
Current wording
Cost of revenue increased by $10 million, or 91%, to $21 million in the nine months ended September 30, 2026 from $11 million in the nine months ended September 30, 2025, primarily due to the full nine months of commercial operations in the current period compared to a partial period of operations following the commercial launch of Aurora Driver for Freight in April 2025, and an increase in terminal, personnel, and fuel expenses due to increased utilization and geographical expansion. Non-cash stock-based compensation in cost of revenue was not significant.
Previous wording
Research and development expenses increased by $34 million, or 9%, to $406 million in the six months ended June 30, 2026 from $372 million in the six months ended June 30, 2025, primarily driven by an increase in non-cash stock-based compensation costs, cloud computing costs, hardware development costs, and personnel 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 $83 million and $73 million in the six months ended June 30, 2026 and 2025, respectively.
Current wording
Research and development expenses increased by $58 million, or 11%, to $609 million in the nine months ended September 30, 2026 from $551 million in the nine months ended September 30, 2025, primarily driven by an increase in cloud computing costs, hardware development costs, personnel costs, and 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 $126 million and $114 million in the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Selling, general and administrative expenses increased by $29 million, or 45%, to $94 million in the six months ended June 30, 2026 from $65 million in the six months ended June 30, 2025, primarily driven by an increase in personnel costs including costs previously recognized in research and development now included in selling, general and administrative due to a realignment of resources as well as non-cash stock-based compensation. Selling, general and administrative expenses included non-cash stock-based compensation of $23 million and $16 million in the six months ended June 30, 2026 and 2025, respectively.
Current wording
Selling, general and administrative expenses increased by $40 million, or 39%, to $143 million in the nine months ended September 30, 2026 from $103 million in the nine months ended September 30, 2025, primarily driven by an increase in personnel costs including costs previously recognized in research and development now included in selling, general and administrative due to a realignment of resources as well as non-cash stock-based compensation. Selling, general and administrative expenses included non-cash stock-based compensation of $34 million and $26 million in the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The change in fair value of derivative liabilities resulted in expense of $17 million and income of $7 million in the six months ended June 30, 2026 and 2025, 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 expense of $4 million and income of $12 million in the nine months ended September 30, 2026 and 2025, respectively, primarily due to the change in the market price for the underlying instrument.
Previous wording
Other income, net increased by $9 million, or 36%, to $34 million in the six months ended June 30, 2026, from $25 million in the six months ended June 30, 2025, primarily due to remeasurement of non-marketable equity securities resulting in unrealized gains during the period partially offset by a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.
Current wording
Other income, net increased by $3 million, or 7%, to $44 million in the nine months ended September 30, 2026, from $41 million in the nine months ended September 30, 2025, primarily due to remeasurement of non-marketable equity securities resulting in unrealized gains during the period partially offset by a decrease in interest income earned on cash equivalents and investments as a result of lower market rates.
Previous wording
As of June 30, 2026, our principal sources of liquidity were $136 million of cash and cash equivalents and $1,081 million of short-term investments, exclusive of restricted cash of $18 million. Investments consist of primarily U.S. Treasury securities as well as corporate bonds and commercial paper.
Current wording
As of September 30, 2026, our principal sources of liquidity were $141 million of cash and cash equivalents and $893 million of short-term investments, exclusive of restricted cash of $17 million. 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, 2026, we offered and sold 30 million shares of Class A common stock through the ATM Program, raising $221 million in equity capital and receiving net proceeds of $215 million after transaction costs.
Current wording
During the three months ended September 30, 2026, we offered and sold 6 million shares of Class A common stock through the ATM Program, raising $41 million in equity capital and receiving net proceeds of $41 million after transaction costs.
Previous wording
During the six months ended June 30, 2026, we offered and sold 33 million shares of Class A common stock through the ATM Program, raising $236 million in equity capital and receiving net proceeds of $229 million after transaction costs.
Current wording
During the nine months ended September 30, 2026, we offered and sold 39 million shares of Class A common stock through the ATM Program, raising $277 million in equity capital and receiving net proceeds of $270 million after transaction costs.
Previous wording
Net cash used in operating activities was $384 million for the six months ended June 30, 2026, an increase of $98 million from $286 million for the six months ended June 30, 2025 primarily due to the settlement of the annual bonus in cash rather than Class A common stock, and hardware development programs to support our scaling plan.
Current wording
Net cash used in operating activities was $554 million for the nine months ended September 30, 2026, an increase of $119 million from $435 million for the nine months ended September 30, 2025 primarily due to the settlement of the annual bonus in cash rather than Class A common stock, and hardware development programs to support our scaling plan.
Previous wording
Net cash provided by investing activities was $100 million for the six months ended June 30, 2026, compared to net cash used in investing activities of $99 million in the six months ended June 30, 2025. The change was primarily due to higher maturities relative to purchases of investments in the six months ended June 30, 2026 compared to higher purchases relative to maturities of investments in the six months ended June 30, 2025, partially offset by increased payments for the purchases of trucks and hardware to support the expansion of our fleet.
Current wording
Net cash provided by investing activities was $251 million for the nine months ended September 30, 2026, compared to net cash used in investing activities of $518 million in the nine months ended September 30, 2025. The change was primarily due to higher maturities relative to purchases of investments in the nine months ended September 30, 2026 compared to higher purchases relative to maturities of investments in the nine months ended September 30, 2025, partially offset by increased payments for the purchases of trucks and hardware to support the expansion of our fleet.
Previous wording
Net cash provided by financing activities was $203 million for the six months ended June 30, 2026, a decrease of $177 million from $380 million for the six months ended June 30, 2025, primarily due to decreased proceeds from the ATM Program and the exercise of stock options.
Current wording
Net cash provided by financing activities was $226 million for the nine months ended September 30, 2026, a decrease of $602 million from $828 million for the nine months ended September 30, 2025, primarily due to decreased proceeds from the ATM Program and the exercise of stock options.
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, 2026 and 2025.
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, 2026 and 2025.