Faraday Future Intelligent Electric (NASDAQ:FFAI) reported sharply higher second-quarter revenue and a narrower net loss as the company expanded commercial deliveries of its embodied AI robotics products and outlined plans to scale its robotics ecosystem.
For the second quarter of 2026, revenue totaled $836,000, up more than 1,500% from $54,000 a year earlier and 64% from $512,000 in the first quarter, Global CEO Yueting Jia said during the company’s earnings call. First-half revenue reached $1.35 million, compared with $370,000 in the prior-year period.
Losses Narrow as Costs Decline
Faraday Future’s second-quarter cost of revenue fell 57% year over year to $11.54 million from $26.91 million. Cost of revenue for the first six months of 2026 was $23.4 million, compared with $48.3 million in the first half of 2025.
The company’s quarterly gross loss narrowed to $10.7 million from $26.9 million a year earlier. Net loss declined 69% to $38.96 million, improving by $85.71 million from a net loss of $124.7 million in the second quarter of 2025. Net loss attributable to Faraday Future stockholders was $36.03 million.
For the first half of 2026, Faraday Future reported a cumulative net loss of $81.3 million, compared with $135 million in the same period of 2025. Jia attributed the improved results to cost controls and operational efficiencies under the company’s “five key transformations” framework.
Total liabilities stood at approximately $278 million at June 30, down about $61 million from $340 million at the end of the second quarter of 2025. The company completed $20 million in debt resolution during the quarter and said it aims to reduce total liabilities below $100 million within the next three to four quarters.
Net cash used in operating activities was $56.5 million for the first six months of 2026. Net cash provided by financing activities totaled $76.37 million, up from $55.1 million in the first half of 2025.
Robotics Shipments and Ecosystem Expansion
Faraday Future said cumulative robotics sales and shipments totaled 242 units at the end of the second quarter and increased to 394 units by the end of July. Based on what it described as growing momentum, the company raised its full-year shipment target to 2,000 robot units.
The company is pursuing a four-part, full-stack AI ecosystem that includes an EAI Brain, EAI Devices, an EAI Data Factory, and industry productivity solutions and a developer platform. Jia said the strategy is intended to create a feedback loop in which deployed robots produce real-world data that improves models, skills and future product deployments.
During the quarter, Faraday Future said it completed initial development of a core technology framework for its robot brain, covering AI interaction, vision, language, action, vision-language-action models, robotic manipulation and whole-body motion control. It said it is using NVIDIA Project GR00T for model fine-tuning and training on real-world robot data.
The company said its whole-body motion model achieved an approximately 98% motion-tracking success rate on standard simulation benchmarks. It also launched a robot-control application on Apple’s iOS App Store and demonstrated automated patrol capabilities using its self-developed security software.
Faraday Future said it expanded its robotics activities in education through partnerships with Triple I Group and Sequoia Education Center, while Redwood Education joined its developer ecosystem as a flagship partner. The company said its developer platform has more than 20 qualified developer organizations and industry partners under active engagement.
- The company plans to grow its developer community to 200 members by year-end.
- It aims to expand its portfolio to 100 robot skills by the end of 2026.
- Its EAI Data Factory is expected to reach monthly capacity of 2,100 qualified real-world data collection hours by the end of August and 20,000 hours by year-end.
- The company expects to collect 50,000 total hours of data during 2026.
Financing and Listing Actions
During the quarter, Faraday Future completed two financing transactions. On April 17, it issued secured notes with an aggregate purchase price of $45 million and original principal amount of approximately $45.8 million. On May 15, it issued convertible SPA notes with aggregate funded proceeds of $25 million and an aggregate unpaid principal balance of $27 million.
The company said it secured $70 million in cumulative new institutional commitments during the second quarter. Of the proceeds from the financing transactions, $42.5 million was deposited into accounts subject to deposit account control agreements and classified as restricted cash at June 30.
In July, the company terminated approximately 5.36 million Class A warrants, bringing total permanent warrant cancellations since December 2025 to about 49.9 million units. It also amended an $82 million convertible-note agreement, dividing the remaining second closing into eight funding tranches of at least $5 million each and eliminating warrant issuances for most participating investors.
Subsequent to the quarter, Faraday Future received $1.5 million in gross proceeds under that facility and converted $3.9 million in principal and $0.6 million in interest into 127,490 Class A shares. Management said it intends, subject to legal and contractual requirements, to establish a $5-per-share conversion floor for outstanding convertible notes where possible.
The company also completed a one-for-150 reverse stock split effective July 24. Jia said Nasdaq subsequently confirmed that Faraday Future regained compliance with the exchange’s minimum bid-price requirement.
U.S. Manufacturing Strategy and Outlook
Management said a July 28 Federal Communications Commission policy placing certain advanced robotics equipment manufactured outside the United States on its covered list could create an opportunity for Faraday Future’s “Built in U.S.A.” strategy. The company plans a three-phase approach: operating its AI platform in the U.S., expanding domestic assembly of robot units and compliant components, and ultimately pursuing U.S. manufacturing of complete robot units and certain components.
Faraday Future said it is evaluating conversion of its Hanford facility for robotics assembly and considering additional sites. It plans to focus commercial deployments on education, industrial applications and security inspection, with anticipated expansion across California, Texas and the Eastern U.S.
While the company said its EAI automotive business remains a core operation, Jia said it will pursue that business “with a highly disciplined and prudent approach,” tying execution and capital deployment to the availability of dedicated funding.
About Faraday Future Intelligent Electric (NASDAQ:FFAI)
Faraday Future Intelligent Electric (NASDAQ:FFAI) is an American electric vehicle (EV) manufacturer focused on the development and production of high-performance intelligent electric vehicles. Leveraging a proprietary modular platform, the company aims to deliver a seamless and connected driving experience by integrating advanced hardware with its in-house software architecture. Faraday Future’s vehicles are designed to offer luxury appointments, customizable digital displays, and autonomous driving capabilities, positioning the company in the premium segment of the EV market.
Since its founding in 2014, Faraday Future has unveiled its flagship FF 91 model, showcasing rapid acceleration, long-range battery performance, and over-the-air software updates.
