Amprius Technologies, Inc. (AMPX) Earnings Call Transcript & Summary

Good morning. Welcome to the Amprius Technologies Second Quarter 2026 Earnings Conference Call. Joining us for today's presentation are the company's CEO, Tom Stepien; and CFO, Ricardo Rodriguez. [Operator Instructions] Please note that this presentation contains forward-looking statements, including, but not limited to, statements regarding the company's financial and business performance, business strategy, future product development or commercialization, new customer adoption, and new applications, the company's growth and the growth of the markets in which it operates and the timing and ability of Amprius to expand its manufacturing capacity, scale its business and achieve a sustainable cost structure. These statements involve known and unknown risks, uncertainties and other important factors that may cause Amprius' results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. For a more complete discussion of these risks and uncertainties, please refer to Amprius' filings with the Securities and Exchange Commission. This presentation includes a non-GAAP financial measure, which is adjusted EBITDA. This non-GAAP financial measure does not replace the presentation of Amprius' GAAP financial results and should only be used as a supplement to, not a substitute for Amprius' financial results presented in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies. A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure is included in our press release, a copy of which is filed with the SEC and posted on our website. Finally, I would like to remind everyone that this conference call is being webcast. A recording will be made available for replay on the company's Investor Relations website at ir.amprius.com. In addition to the webcast, the company has also posted a press release that accompanies these results, which can also be found on the Amprius Investor Relations website. Before turning the call over to management, I want to highlight a few near-term IR events. Amprius will be attending the Canaccord Conference and partaking in the UBS Energy Transition Call Series next week. The team will also be attending the H.C. Wainwright Conference and the Evercore ADAS, AV, and AI Forum in September. We hope to connect with many of you at these upcoming events. I'll now turn the call over to Amprius Technologies CEO, Tom Stepien, for his comments. Sir, please proceed.

Welcome, everyone, and thank you for joining us this morning. I'm pleased to report that Amprius continues to experience robust demand for energy dense silicon anode lithium-ion batteries. And in the second quarter of 2026, we achieved another record revenue as we show on Slide 3. We believe the characteristics of our cells make them a particularly strong fit for one of the fastest-growing markets in the world, battery-powered unmanned aerial vehicles, UAVs, also known as drones. Our second-generation SiCore silicon anode battery continues to gain broad adoption for drones and other applications. Given the strong quarter and promising new business, we have the confidence to increase our 2026 revenue forecast for the second consecutive quarter. Anyone who reads the news understands that low-cost drones are playing an asymmetric role in military conflicts around the world, changing the nature of modern warfare. As Barron's magazine recently reported, inexpensive drones are "upending the defense sector." We believe that this has been made possible in no small measure by the availability of high-performance batteries like those produced by Amprius. As you are likely aware, the Trump administration's proposed fiscal 2027 defense budget calls for more than $50 billion in outlays for the Defense Autonomous Warfare Group, an arm of the Department of War focused on drones and related hardware. The specific ask is for 24,000% year-over-year increase. While the U.S. Congress has yet to pass the 2027 spending authorization and the actual budget might be smaller than the original request, it is nonetheless clear that the Pentagon will be making a major and growing outlay for autonomous capabilities for years to come. Our current contract with the Defense Innovation Unit gives us a front-row seat in this arena. This is good news for Amprius, our customers and partners and for our shareholders. While we expect that the budget details will be sorted out in the months ahead, there are other positive signs from the defense sector for Amprius. For instance, the Department of War's drone dominance program has invited 19 drone manufacturers to a competitive demonstration event at Fort Carson, Colorado later this month. Half of the participants are using Amprius cells, and we have had at least initial conversations with the rest. The Department of War has said that at the completion of the Colorado event, they will place orders for 60,000 drones from the top performers. This is one more indication that the opportunity in military UAVs is in its early stages. You may recall that our contract with the Defense Innovation Unit to develop and scale National Defense Authorization Act, NDAA compliant silicon anode battery cells was increased for a third time in the March quarter and now totals $18.1 million. This funding supports expansion of a pilot line at our headquarters in Fremont, California. I'm happy to report that we now have received nearly half of the equipment required for the pilot line, which is undergoing installation. The remaining equipment is scheduled to arrive later this month and in September with production expected to begin in December 2026. Our opportunity in military drones goes beyond U.S. borders. I'm happy to report that we've received a $24 million order from a new European customer, a drone manufacturer that uses our SA124 SiCore cylindrical cells. We started to deliver our batteries to this customer in Q2 and will continue to do so for the next 3 quarters. We're excited about this opportunity and expect to have more to talk about on this topic in the months ahead. I also want to report some recent news from our customer, Redwire, a leading aerospace and defense technology company providing space infrastructure, autonomous systems, and mission-critical solutions for the commercial, civil and national security customers worldwide. Redwire first purchased our high energy density batteries in 2024. We're happy to see that their demand is growing. Redwire recently announced more than $40 million in purchase orders from the U.S. Marine Corps for the Stalker Block 30, a Group 2 drone designed for long-range reconnaissance. Stalker excels in missions where long-endurance is critical, and that's exactly what our SiCore cells enable. We look forward to Redwire's continued success. While we are excited about the rapid adoption of drones in the defense industry, we also continue to see substantial opportunities for commercial drones. In May, you may remember, we announced an agreement to provide high-density silicon anode cells to Matternet, the world's only FAA-Type Certified drone delivery platform. Amprius' silicon anode cells deliver up to twice the energy density of conventional graphite-based batteries, a critical advantage in aviation where low battery weight and high energy density directly improve aircraft range, payload and economics. Drones, both military and commercial, are a big part of the Amprius story, but they are not our only strategically important end market. Earlier this year, we announced a $21 million order from a premier electric mobility customer in China to power a suite of light electric vehicles, including scooters, 3-wheelers and motorcycles. Today, I'm excited to tell you about a new e-mobility customer win. We have signed a 3-year contract with Stark Future, a Barcelona-based premium electric motorcycle manufacturer. Stark's bikes are impressive with cutting-edge technology, world-class design, and amazing engineering. We showcased one of their bikes at our CES booth in January 2026. We expect revenues from our relationship to Stark to be at least $100 million through 2029, with shipments expected to start early next year. Let's turn to Slide 4 and discuss our go-to-market strategy. A little less than half of our sales shipped directly to end-use customers, companies that sell drones for various applications, small electric vehicles and companies in the satellite value stream. We have more than 500 direct customers, and this figure grows every quarter. The other portion of our purchase orders come from PAC partners, companies who buy our cells and package them together with appropriate electronics and sometimes a battery management system. These modules and packs are then sold to end-use customers. Our PAC partner program allows us to expand our reach and simplifies customer relationships for many end market applications. Today, we list 9 PAC partners on our website and more will be added over time. This program is a light lift for our sales team and allows us to scale without adding direct sales headcount. We expect this flywheel effect to allow us to continue strong growth through this rapidly expanding channel. Let's turn to Slide 5, and let me take a few minutes to provide an update on our capital-efficient contract manufacturing strategy. Our California pilot line gives us the ability to win new customers, allowing us to quickly deliver new cell chemistries to customers. We often do this side-by-side with our customers in joint development programs. We also use our Fremont facility to deliver small volumes of cells. We leverage our worldwide contract manufacturing partners to produce sales at volume. We have 4 manufacturing partners in China. Over the last several years, they have provided us with excellent quality and reliable delivery. Our China CMs have helped Amprius tremendously, and they will continue to be important partners in our future. We have added several partners in South Korea. In May 2025, we announced our first partner, Libest, located in Daejeon, about a 2-hour drive from downtown Seoul. Libest has been delivering Amprius commercial cells since September 2025. We recently added JR Energy and Top Material as South Korean partners. Together, these 3 CMs give us the ability to produce batteries that are compliant with NDAA rules. I met with all 3 partners in Korea 10 days ago and can confirm that our relationships are solid, our incentives are aligned, and we are expanding well together. I also want to underscore that we believe we are well on track to reach full NDAA compliance with domestically produced cells in 2027. South Korea gives us NDAA-compliant supply today, while Nanotech Energy, the U.S. contract manufacturer we announced earlier this year, provides additional U.S. capacity. We expect to talk about additional U.S. partners in the months ahead. Our partner-focused approach to manufacturing avoids substantial capital expenditures while keeping our management team focused on what matters most, extending our technical innovations and delivering these innovations to customers rapidly. Leveraging manufacturing partners rather than investing heavily in new facilities allows Amprius to scale quickly and efficiently while maintaining strategic flexibility. I want to provide a brief update on our senior management team. Last month, Ronnie Tao, a 5-year Amprius veteran, who until recently served as our VP of Sales, moved into a new role as Chief Business Officer. Ronnie will focus on expanding our reach into new markets, initially targeting robotics, where we see substantial opportunity for our high-energy density offerings. Ronnie's energy is infectious and his recall of technical details is remarkable, ideal qualities to drive growth into new segments. Three weeks ago, Anne Torricelli joined Amprius as our new VP of Sales. Anne has nearly 2 decades of experience working in energy technology sales and business development roles. She was most recently Managing Director of Energy Storage Solutions for Gotion, a top 5 worldwide lithium-ion battery manufacturer. Her multicultural background, excellent communication skills, and savvy organizational traits are a model profile to lead sales for a fast-growing international company like Amprius. We're thrilled to welcome Anne to the team. A few additional thoughts before I pass the microphone to Ricardo Rodriguez, our CFO. I continue to see wide and varied growth opportunities for Amprius in multiple markets and several geographies. As I noted earlier, there are sizable opportunities for us in drones, not only in defense, but also for commercial delivery, public safety, security, and a growing number of other applications. The massive commitment to drones from the Department of War is a positive sign, but it's not the only one, and we expect drones to expand across many parts of the economy in years ahead. As highlighted by our new relationship with Stark in Spain, there is also a fast-growing opportunity for battery-powered mobility, including robotics. We are focusing some of our key executives on this emerging market for personal and commercial robots, including delivery bots, humanoid, and industrial mobile robots. It is early, and there is no meaningful robotics revenue in our numbers today. But our ability to offer power and energy balance cells plays well in the unstructured environments in which these machines operate. We expect to have more to say about this segment in the months ahead. Another opportunity that exists for us is in satellites and space, where our high energy density cells directly improve launch economics. Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight extremely valuable. Finally, we believe there is tremendous potential for our batteries in eVTOL, electric vertical takeoff and landing aircraft for autonomous point-to-point regional transport for both passengers and cargo. It's early in development of eVTOL vehicles, but they are coming sooner than many think. Let me now turn over the call to Ricardo to review our Q2 results in detail.

Thank you, Tom, and good morning, everyone. I'm happy to start on Slide 6. In the second quarter, we delivered $34 million of revenue, up 19% from the first quarter and 2.3x year-over-year. This was our sixth consecutive quarter of sequential growth, and it puts our annual revenue run rate at $136 million. We expect this to continue growing, so more on this later. For the first half of the year, revenue was $62.6 million, up 137% year-over-year. SiCore accounted for 98% of our revenue in Q2. Regionally, EMEA drove 68% of our revenue, with the rest of our revenue coming from the U.S. and Asia. Cost of goods sold was $24.8 million, up 9% against 19% revenue growth that enabled gross profit of $9.3 million and a gross margin of 27%, right in line with our expectations and improving from 20% in the first quarter and 9% in the same quarter last year. For the first half, gross margin was 24%, improving from negative 4% in the first half of 2025. Total OpEx was $13.6 million in the quarter, up $1.2 million sequentially and $5.4 million year-over-year. We continue investing in our go-to-market and R&D efforts as these continue to pay off as our team wins in the market. Our operating loss in Q2 was $4.3 million compared to $6.7 million in the first quarter and $6.8 million in the same quarter of last year. Other income was $1.1 million, consisting of $472,000 of interest income and $700,000 of government grant income tied to our work with the Defense Innovation Unit. Our GAAP net loss attributable to common shareholders for the second quarter was $5.1 million or negative $0.04 per share based on 143.5 million weighted average shares outstanding. That is 20% narrower than the same quarter last year. For the first half, our net loss was $10.1 million compared to $15.7 million in the first half of 2025. Our GAAP net loss includes a onetime noncash $1.9 million adjustment reflecting the change in fair value of the public warrants during our exchange for stock on May 6 of this year. Excluding this $1.9 million gives us non-GAAP adjusted net loss of $3.2 million or negative $0.02 per share for Q2 and $8.2 million or $0.06 per share for the first half of 2026. Adjusted EBITDA in the second quarter was negative $1 million or negative 3% margin compared to negative $1.8 million in the first quarter and negative $2.1 million in the same quarter last year. As a reminder, we define adjusted EBITDA as net income or loss before interest, taxes, depreciation, amortization, stock-based compensation and other items that we do not believe are indicative of our core operating performance. In the second quarter, these adjustments were limited to the $1.9 million related to the warrant exchange, $2.5 million of stock-based compensation, $800,000 of depreciation and amortization and $1.1 million of interest and other income. For the first half of the year, adjusted EBITDA was negative $2.8 million against negative $7.3 million in the first half of last year. On a trailing 12-month basis, adjusted EBITDA is negative $800,000 with a negative 1% margin. We are within a rounding error of breakeven on a full year basis if we look at the last 12 months. Now turning over to cash flow and the balance sheet. We ended the second quarter with $74.5 million of cash and no debt, an increase of $12.2 million during the quarter. Our operations only used $2.9 million of cash in the quarter. Accounts receivable grew by $5.4 million and inventory grew by $3.3 million, partially offset by lower prepaid inventory and higher payables. Before those working capital movements, our operations generated cash for the first time. Accounts receivable ended at $40.7 million and inventory at $11.5 million. Both are deliberate. Receivables reflect a fast-growing shipment profile weighted towards the second half of the quarter and inventory position to support the ramp of the third quarter. Capital expenditures were $1.8 million, all at our Fremont facility, supporting the electrode coating build-out and primarily funded by the Defense Innovation Unit. First half CapEx was $2.8 million against the less than $10 million that we framed out for the year in March, and we are tracking well inside that. Financing activities provided $16.8 million, consisting of $12.3 million from warrant exercises and $4.5 million from option exercises. We currently do not have an at-the-market offering program. Every dollar of equity capital we took in this quarter came from holders choosing to exercise into the business as we continue to focus on minimizing dilution. Working capital at quarter-end was $113.2 million, compared to $59.8 million for the second quarter of last year, and total stockholders' equity was $125.6 million. Before I turn the call back to Tom, I want to frame our outlook for the rest of the year using Slide 7 as the backdrop. In March, we set an initial 2026 outlook of more than $125 million of revenue, over 25% gross margin and our first full year of positive adjusted EBITDA. In May, after a first quarter of $28.5 million of revenue, we increased guidance to more than $130 million for the year. Today, we are increasing our revenue forecast again. With what we know today, we expect full year revenue of at least $140 million and gross margins of at least 28%. We see upside to gross margins in the second half of the year as we focus on ensuring that the fixed cost of our contract manufacturing partners do not increase with higher volumes. We are reiterating adjusted EBITDA of more than $4 million, a net loss of $10 million or less and a loss of $0.08 or less per diluted share, assuming 143.5 million weighted average diluted shares. These updated GAAP profit guidance estimates consider the $1.9 million adjustment for the fair value of the warrants in Q2 of this year. Looking further ahead, nothing about the plan that we laid out in March has changed, except for how much of it is now visible in the numbers and in reality. As we close out the decade, we are still targeting more than $600 million of contracted capacity, gross margins above 30% and adjusted EBITDA margins of at least 20%. The resourceful culture and low fixed cost structure that brought us within rounding error of breakeven over the last 12 months are the same ones that will get us there. With that, I'm happy to turn the call back to Tom for his closing remarks. Thank you very much for your attention and continued support.

Thanks, Ricardo. We remain excited about the opportunities ahead and look forward to meeting many of you at upcoming investor events. Thank you for your continued interest and support of Amprius. And with that, let me turn it over to the operator for questions.

[Operator Instructions] The first question comes from Colin Rusch with Oppenheimer.

Congratulations on the progress here. As we see some of the incremental regionalization, the NDAA compliance mandates starting to flow through, I just want to get a sense of how much dexterity the technology platform has in terms of using alternate inputs on the anode side as well as on the electrolyte side, whether you're moving towards like a semi-solid-state or solid-state electrolyte at some point and your ability to actually integrate some of those material advances that we're seeing in the ecosystem.

Yes, Colin, thank you. This is Tom. We have 5 chemistry platforms, a power-based one, energy-based one, balanced one. We have very good dexterity, as you say. We have had long serving suppliers over the last several years. And as a part of NDAA, we've qualified 2 sets of 11 new suppliers for the anode, cathode, separator and 7 other binders, et cetera, that go into our batteries. We have a primary set of new suppliers and a secondary set of. We are happy with those new suppliers. We are holding them in the cells that are being made in South Korea and the U.S. So it's working well. It's tricky because we have to qualify them. We have to get these suppliers under contract. So it's keeping us busy on the supply chain and operational side of things as well as the technical side. The pilot line here Fremont helps because we get quick turns and quickly validate some of those new components. But we're pretty nimble in that area. We'd always like to go faster, of course, but we're happy with where we are, and we're on track, as we said in the call, to be fully not just NDAA-compliant, but U.S. NDAA-compliant here in 2027.

Excellent. And then I guess shifting to the customer base. Given that level of range from the platform, over the last 1.5 years, you've done a great job of actually getting a lot of these customers organized a little bit more methodical in terms of their purchasing patterns. But I want to get a sense of, as you move forward, leveraging the technology road map that you have some of the range of possibilities and scale that you guys can leverage into both driving incremental sales as well as operating margin, how we should think about that kind of playing out over the next 12 to 24 months?

Yes. So the PAC program certainly helps as we tried to say in the call, giving us some leverage in the flywheel effect as we tried that certainly helps. Anne joining us is a very organized methodical person who has run large sales groups. That's part of we like her. I think that will help. And then I think that the breadth of our offerings allows us to without a lot of brain damage to serve some of these new segments, right? And that's early in robotics and eVTOL, of course. But we have a couple of joint development programs underway. And it appears that some of the tweaks we're making side-by-side with these future customers are relatively small and can be done rapidly to get exactly what these customers need, energy, power, et cetera. So that, I think, will help us go deeper as well as wider on the customer side of things. On the margins, do you want to think about that?

Yes. The margins really depend on both the regional mix and the product mix. And we do see, in essence, our sales are the most accretive for us. And as we launch the NDAA-compliant pouch cells, we think that will be accretive and will help us get to our margin targets just as expected, right? When we reported Q3 last year, we said the margins were going to be lumpy, and that happened in Q1 as they went to 20% on a GAAP basis and 22% if we strip out the onetime costs from the Colorado facility. And then here in this quarter, the revenue mix was pretty favorable with quite a bit of our sales in Europe and pouch cells really holding their share of the mix. So as we look at these other markets like robotics, eVTOLs, we have a team now looking at data centers potentially. I do think that all of those are going to be pursued in an accretive way.

The next question comes from Mark Shooter with William Blair.

Tom, we thought the L3Harris order and the Nanotech contract manufacturing, we saw that was like a creative way to find and leverage some small U.S. manufacturing capacity that's available for these domestic supply chain sensitive customers. As stricter domestic requirements from the DoW and the FCC for both military and commercial drones, they kick in on '27, '28. Do you see this as an inflection point for domestic drone manufacturing or even for the cells? Like will you have to ramp up more in the U.S. manufacturing? And if so, how -- what do you see for available avenues to do so?

Yes. So we have pretty good visibility certainly through the next several quarters. And of course, on a planning basis, we look through the rest through the end of 2027 and then 2028 with increasing certainty. We know when these stricter requirements kick in. We're happy with where we are in Korea with the 3. We need to go faster. We need to go deeper. Nanotech has delivered cells. We need to, of course, flow more through them. We're actively working with other U.S. manufacturing, as we said in the call, not quite ready to announce anybody yet, but stay tuned there. So look, we always want the boat to go faster here, but we are pleased with the demand. We think we are in a leadership role technically. We need to earn that every day. We need to deliver to L3's requirements and others. We're happy with where we are with, of course, always wanting to do more than sitting on our laurels.

Great. I appreciate the color. And Ricardo, one for you. Congrats again on the beat and raise this quarter. Can you give us a little bit of color on what you're seeing that gives you the confidence to raise both revenue and the margin guidance? So what are you seeing?

Yes. So the revenue rate was pretty easy just given the demand profile, right? And as the team develops a tighter relationship with some of the pack houses, as we mentioned, and several of the OEMs, we are seeing more consistent order flow flowing to our customers. And so that gives us quite a bit of visibility into the demand picture for not just the second half of the year, but even starting to get into next year. And so I mean, frankly, the demand side, there's even upside from the guidance update. But we think that updating the guide to what we updated it to makes sense just given the supply picture and how the supply chain needs to evolve here in order to deliver product, particularly in Q4 and into next year. The margin piece is actually was another easy raise, right? So if you look at our margins during the first half of the year and you strip away $0.5 million of expenses from Colorado in Q1 and roughly $1.8 million in tariffs that will no longer be there that we had to pay here in the first half and that we've pretty much gotten refunded at this point, then our margins would have been 27% for the first half. And so to raise that to at least 28% in the second half, as I mentioned in my remarks, we're getting a better understanding of the fixed cost elements inside of our contract manufacturing partners. And it would be unfair to let those fixed costs scale up at higher volumes, especially at the higher volumes that are implied in the guide here for the second half. And so raising it to at least 28%, we think makes sense. We do need to continue having a favorable mix of at least 60% of the revenue coming from Europe, at least 60% of the revenue coming from accretive out sales, and we see that playing out here for the rest of the year.

The next question comes from Eric Stine with Craig-Hallum.

Can we just go back? You talked about NDAA-compliance and it sounds like you've made progress on the 11 needed components, both primary and secondary suppliers. But I know that one of the things, and you mentioned it is getting those suppliers under contract. So maybe I know last quarter, you indicated that you had made some progress in that regard, but would love an update.

Yes. We make progress on a weekly basis with the suppliers. I met with several when I was in Korea a couple of weeks ago. There have been obvious -- lots of discussions since getting back. We have a team working on it. We have some outside folks who are actually helping accelerate. We'll get them all buttoned up here this quarter under contract. Some of this is just legal reviews tend to take time. We're comfortable with the cost and the timing. In general, these new suppliers are large international companies that are actually larger revenue-wise than risk. So we are comfortable with their ability to deliver, but you got to go through all of the operational things just to get them all lined up, aligned on the schedules. They're shipping products to different manufacturers in different countries, it's not technically hard, but it's a little bit complex just on the planning side.

Okay. Okay. That's great. And then maybe second one for me. I mean, obviously, defense is and should be a primary focus here on this call. But I would just like to talk about the commercial side. I do see that recently DoorDash got this Part 135 certification from the FAA for drone delivery. And just curious, I know that, that company is one of it's like 8 to 9 companies that have it. But going forward, do you envision this as being a company-by-company certification? Does the FAA potentially do something that opens it up more broadly? Because I know that, I mean, certainly a very sizable commercial drone opportunity as well.

Yes. So we have a start with Matternet as we talked about in our last call, and that is a foothold, and we're starting to expand. I don't know that the FAA would certify batteries. I think they tend to do that on a vehicle-by-vehicle basis. We're not FAA experts here. But that's part of what the change we did with Ronnie and Anne. The new delivery drones won't necessarily help us make the next quarter. Certainly planting seeds and getting in and understanding what they require and comparing that to our current suite of is something we're asking Ronnie to do so that we can turn those seeds that we plant into revenue in future quarters. So we're on it. We'd like that boat to go faster also. But we believe that, gosh, should those delivery vehicles be able to use our batteries, can they deliver to the whole block? Can -- so can they go longer? Can they deliver a greater payload. A lot of these payloads are limited to a couple of kilos. Well, we probably could double that. So we believe the promise is there. We have work to do to earn the trust of DoorDash, who you mentioned and others.

Our next question comes from Austin Bohlig with Needham & Company.

Congrats on the great results. Tom, first, just maybe wanted to dive into like the key geographies and outlook that's kind of driving the upside. Would you kind of characterize this as more momentum domestically in the U.S. or internationally?

So international has been strong. Europe has been very strong. And we talked about last quarter, it was 75%. It was a little bit less, I think, Europe this quarter. So that's a really solid base. We are happy with Redwire, as we mentioned in the remarks, and others that seem to be coming on. We see some of the slowdown from the fiscal government 2026, whether it's drone dominance programs or other spend that we're starting to see in our last call, 90 days ago, we referenced a couple of our customers that were receiving money from that. So it's starting, it's getting a little bit better balance. We also see a better balance. That's part of what we like about Stark is that there's a better balance also with not just drones, but e-mobility is starting to come on in an increasing way. So over time, I think we'll see a better balance between Europe and U.S., Asia, e-mobility and drones and then even within drones, not just defense, but delivery, public safety as we've talked about.

Okay. Well, and I just kind of to piggyback off that, so super excited opportunity. You're working with half of the drone dominance customers. Like could you maybe walk through maybe kind of like the content per drone with this opportunity? I know you included some slides in your deck, but just would love to get a little bit more clarity on what the opportunity could be here just with this one program.

Yes. So we did include -- Ricardo did a nice job of putting some of those slides in because we got that question last time, which is, okay, about with these different types of drones, what are typical size batteries and then what is the potential cell content. So Slide 10 and 11 in the deck, I think, was really helpful. And if you look at that, obviously, with the larger Group 3 drones, the Group 4 and 5 drones tend to be fuel-based, 1, 2, 3 are battery-based. Group 3 drones use more content than Group 1 drones. So I would direct listeners to that slide.

There's Slide 10 and 11 in the deck.

Yes. But the nice thing is that we -- they tend to be pretty sticky, right? So once we do earn the trust of these customers, and sometimes it takes a couple of quarters to earn that trust, we -- they tend to stay with our batteries. They look to us because we're sometimes up to 50% better, 80% better in some cases for the flight time, which is super important in the scoring of these shootouts. So that's our view of DDP and some of the other opportunities.

Okay. Great. And I guess just kind of my last one for Ricardo. Just thinking about the incremental OpEx you guys think you might need as revenues scale here, and we'll see these revenues flow to the bottom line.

Yes, we had a bulk of the OpEx increases here in Q2 on the -- which pulled ahead some of the investments that we want to make in our go-to-market efforts. I do think that in Q3, that will continue. We'll probably add another $1 million of OpEx per quarter. And then for Q4, we're looking at holding it flat and then really testing ourselves to see how much we can maintain the growth with that level of OpEx. The bulk of the resources that we would be adding would be really on just managing the supply chain beyond what we've already invested on go-to-market.

The next question comes from Ryan Pfingst with B. Riley.

Tom, you talked about robotics a bit earlier. I just wanted to dig in a little bit more there. Curious what Amprius is doing today that will help the company position itself with customers as that market starts to scale commercially.

Yes. Step one is to get smarter. We attended Automate in Chicago 6, 8 weeks ago, our first booth at a robotics show. Some of the takeaways for us are that ourselves perform really well with robots that are in unstructured environment. So think of the dog like robots and even some of the humanoids that aren't necessarily inside of a very organized factory or another example we're not pursuing is in a warehouse robot that can go around the corner and plug itself in. You don't necessarily need high energy density or the right power energy mix for those applications. But if you are unstructured, if there's uncertainty in whatever you're doing in a robot perspective, that's where you value the energy and power mix. We've analyzed some of the current required on some of these robots. And if you're lifting, there's a spike in current, okay, you need a certain type of battery to do that. Certainly, if you are wandering around in again, unstructured areas, you don't have the certainty of when you're going to be able to charge next. So longer run time, high energy density is prized by robots like that. So it allows us -- that learning allows us to focus. And again, some of the executive changes we've made to focus and understand where we can win, where do we play and how do we win as part of some of the change we made with Ronnie so that the seeds that he'll be planting here will turn into revenue as that market does expand and get.

Appreciate that. And then maybe turning to another adjacent market. Ricardo, you just mentioned earlier that you have a team looking at data centers. Can you talk a little bit more about that? And just remind us where Amprius could fit in, in that ecosystem?