Mobileye expands into robotics with $900M deal as 2025 revenue climbs

Mobileye Global (NASDAQ:MBLY) is significantly broadening its technological footprint, announcing a definitive agreement to acquire Mentee Robotics for approximately $900 million.

The move marks a strategic expansion into the burgeoning field of "Physical AI," aiming to combine Mobileye’s established automotive computer-vision expertise with humanoid robotics.

The Jerusalem-based company reported full-year 2025 revenue of $1.89 billion, a 15% increase over the previous year.

However, the fourth quarter saw a 9% year-over-year revenue decline, which management attributed to a combination of customer inventory rebalancing and stronger-than-expected automotive production at year-end.

Despite the quarterly revenue softening, Mobileye’s operating model demonstrated resilience, generating $602 million in net cash from operations in 2025—a 51% surge from 2024 levels.

Looking ahead, Mobileye issued 2026 revenue guidance ranging from flat to 5% growth.

While the annual outlook suggests a period of stabilization, the company expects a robust start to the new year with approximately 19% revenue growth projected for the first quarter of 2026.

This momentum is supported by a new high-volume Surround ADAS program win with a major U.S. automaker and an expanded robotaxi partnership with Volkswagen.

On a GAAP basis, Mobileye reported a diluted loss per share of $0.16 for the fourth quarter, while non-GAAP adjusted diluted EPS came in at $0.06.

Meanwhile, the company ended 2025 with a strong liquidity position of $1.8 billion in cash and equivalents, providing a substantial cushion for its upcoming acquisition and continued R&D investment.