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 and impairment of goodwill. Starting in 2025, the measure of segment performance used by the CODM changed and as a result, the Company’s segment performance measure was updated to also exclude share-based compensation expenses (that were previously included in segment performance). The change aligns with segment information that is now regularly provided to the CODM and reflects how the CODM assesses segment performance and makes strategic decisions about the business. Prior period amounts have been recast as a result of the change in segment measure. 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 28, 2024. The following are segment results for each period as follows: | | | | | | | | | | | | Three Months Ended September 27, 2025 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 494 | | $ | 10 | | $ | 504 | Cost of revenues | | | 165 | | | 2 | | | — | Research and development, net | | | 235 | | | 7 | | | — | Sales and marketing | | | 8 | | | 2 | | | — | General and administrative | | | 10 | | | 1 | | | — | Segment performance | | $ | 76 | | $ | (2) | | $ | 74 | Amortization of intangible assets | | | — | | | — | | | (111) | Share-based compensation | | | — | | | — | | | (72) | Financial income (expense), net | | | — | | | — | | | 17 | Income (loss) before taxes on income | | | — | | | — | | $ | (92) | Depreciation of property and equipment | | $ | 18 | | $ | — | | $ | 18 |
| | | | | | | | | | | | Three Months Ended September 28, 2024 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 475 | | $ | 11 | | $ | 486 | Cost of revenues | | | 153 | | | 2 | | | — | Research and development, net | | | 227 | | | 6 | | | — | Sales and marketing | | | 6 | | | 3 | | | — | General and administrative | | | 10 | | | 1 | | | — | Segment performance | | $ | 79 | | $ | (1) | | $ | 78 | Amortization of intangible assets | | | — | | | — | | | (111) | Share-based compensation | | | — | | | — | | | (79) | Goodwill impairment | | | — | | | — | | | (2,695) | Financial income (expense), net | | | — | | | — | | | 14 | Income (loss) before taxes on income | | | — | | | — | | $ | (2,793) | Depreciation of property and equipment | | $ | 16 | | $ | — | | $ | 16 |
| | | | | | | | | | | | Nine Months Ended September 27, 2025 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 1,419 | | $ | 29 | | $ | 1,448 | Cost of revenues | | | 458 | | | 5 | | | — | Research and development, net | | | 662 | | | 21 | | | — | Sales and marketing | | | 22 | | | 7 | | | — | General and administrative | | | 31 | | | 3 | | | — | Segment performance | | $ | 246 | | $ | (7) | | $ | 239 | Amortization of intangible assets | | | — | | | — | | | (333) | Share-based compensation | | | — | | | — | | | (206) | Financial income (expense), net | | | — | | | — | | | 48 | Income (loss) before taxes on income | | | — | | | — | | $ | (252) | Depreciation of property and equipment | | $ | 54 | | $ | — | | $ | 54 |
| | | | | | | | | | | | Nine Months Ended September 28, 2024 | U.S. dollars in millions | | Mobileye | | Other | | Total | Revenues | | $ | 1,134 | | $ | 30 | | $ | 1,164 | Cost of revenues | | | 376 | | | 5 | | | — | Research and development, net | | | 603 | | | 21 | | | — | Sales and marketing | | | 24 | | | 11 | | | — | General and administrative | | | 29 | | | 3 | | | — | Segment performance | | $ | 102 | | $ | (10) | | $ | 92 | Amortization of intangible assets | | | — | | | — | | | (333) | Share-based compensation | | | — | | | — | | | (203) | Goodwill impairment | | | — | | | — | | | (2,695) | Financial income (expense), net | | | — | | | — | | | 44 | Income (loss) before taxes on income | | | — | | | — | | $ | (3,095) | Depreciation of property and equipment | | $ | 46 | | $ | — | | $ | 46 |
Total revenues based on the country that the product was shipped to were as follows: | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 27, | | September 28, | | September 27, | | September 28, | U.S. dollars in millions | | 2025 | | 2024 | | 2025 | | 2024 | USA | | $ | 111 | | $ | 114 | | $ | 331 | | $ | 223 | China | | | 118 | | | 108 | | | 319 | | | 307 | Germany | | | 77 | | | 88 | | | 239 | | | 184 | South Korea | | | 54 | | | 58 | | | 140 | | | 150 | United Kingdom | | | 27 | | | 32 | | | 96 | | | 87 | Poland | | | 27 | | | 21 | | | 84 | | | 52 | Hungary | | | 20 | | | 25 | | | 65 | | | 60 | Slovakia | | | 22 | | | 3 | | | 55 | | | 13 | Czech Republic | | | 17 | | | 11 | | | 44 | | | 27 | Thailand | | | 11 | | | 2 | | | 21 | | | 4 | Rest of World | | | 20 | | | 24 | | | 54 | | | 57 | Total | | $ | 504 | | $ | 486 | | $ | 1,448 | | $ | 1,164 |
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 89% and 86% of our revenue for each of the three months ended September 27, 2025 and September 28, 2024, respectively, and 91% and 83% of our revenue for each of the nine months ended September 27, 2025 and September 28, 2024, respectively. Major Customers Revenue from major customers that amount to 10% or more of total revenue: | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 27, | | September 28, | | September 27, | | September 28, | | | | 2025 | | 2024 | | 2025 | | 2024 | | Percent of total revenues: | | | | | | | | | | Customer A | | 27 | % | 28 | % | 30 | % | 26 | % | Customer B | | 17 | % | 19 | % | 18 | % | 18 | % | Customer C | | 15 | % | 17 | % | 15 | % | 15 | % | Customer D | | 13 | % | * | | 13 | % | 10 | % | Customer E | | * | | 11 | % | * | | 12 | % | Customer F | | * | | * | | * | | 10 | % | *Less than 10% | | | | | | | | | |
Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance: | | | | | | | | As of | | | | September 27, | | December 28, | | | | 2025 | | 2024 | | Percent of total accounts receivables balance: | | | | | | Customer A | | 39 | % | 35 | % | Customer C | | 14 | % | 13 | % | Customer D | | 10 | % | * | | Customer B | | 10 | % | 23 | % | *Less than 10% | | | | | |
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