Company streamlines organization, expands AI-enabled operations and strengthens commercial execution
Recent Operating Highlights:
- Streamlined the organization and reduced management layers as part of a broader initiative to lower operating costs, increase accountability, and improve execution.
- Expanded the use of AI-assisted tools across engineering and business operations to automate repeatable work, accelerate workflows, and increase productivity.
- Implemented changes to sales leadership and commercial processes, increasing emphasis on opportunity qualification, pipeline accountability, and customers aligned with the DriveMod Tugger.
- Continued aligning product development with the requirements of larger industrial customers, including interoperability, enterprise deployment capabilities, and greater customer control over autonomous vehicle workflows.
MOUNTAIN VIEW, Calif., Aug. 12, 2026 /PRNewswire/ -- Cyngn (NASDAQ: CYN) today announced financial results for its second quarter ended June 30, 2026 and outlined a series of organizational and commercial initiatives designed to improve operating efficiency, sharpen execution, and position the company for scalable growth.
During the quarter, Cyngn continued to see interest in its autonomous vehicle solutions; however, the pace of commercial execution was delayed relative to the Company's expectations. In response, Cyngn made changes to sales leadership and implemented a more disciplined commercial process focused on opportunity qualification, pipeline accountability, sales execution, and customers and applications that closely align with the capabilities and value proposition of the DriveMod Autonomous Tugger.
Cyngn also took steps to reduce its operating cost structure and simplify the organization. The Company consolidated responsibilities, reduced management layers, and realigned resources around its highest-priority product, customer, and commercial initiatives. These actions are intended to create a leaner organization with greater accountability, faster decision-making, and a higher proportion of resources directly focused on product development, customer deployments, and revenue generation.
These initiatives are consistent with a broader shift taking place across the technology sector as companies increasingly redesign their organizations around smaller teams, flatter management structures, and AI-enabled productivity. Several of the world's largest technology and financial services companies have announced organizational restructuring or workforce reductions during 2026 while increasing their focus on operating efficiency, AI adoption, and concentrating resources on higher-priority growth opportunities.
As part of this evolution, Cyngn has expanded the use of AI-assisted tools across engineering and business operations. The Company is using these technologies to automate repeatable tasks, accelerate software development and analysis, improve internal workflows, and enable employees to operate more efficiently. Cyngn believes these tools can allow a leaner organization to maintain or improve output while directing a greater portion of its resources toward differentiated technology and commercial execution.
On the product side, Cyngn continues to concentrate development on capabilities required for broader enterprise adoption of autonomous industrial vehicles. This includes interoperability with customer systems, enterprise deployment and fleet-management requirements, and capabilities that provide customers with greater flexibility and control over autonomous workflows. The Company believes this increasingly focused product strategy, together with a more efficient operating structure and disciplined commercial organization, strengthens Cyngn's ability to convert customer interest into scalable deployments faster and at a larger scale.
As part of its ongoing commitment to strong corporate governance, Cyngn engaged Baker Tilly US, LLP, a top-ten U.S. accounting firm, as its independent registered public accounting firm, and Kaufman & Canoles, P.C., a leading business law firm, as outside legal counsel, positioning the Company's financial reporting and legal infrastructure to support its continued growth.
The Federal Communications Commission added new imports of foreign-made humanoid and quadruped robots to its national security Covered List. Cyngn believes this shift in the regulatory landscape reflects a broader effort to strengthen domestic industrial robotics capabilities and reduce reliance on foreign-made autonomous technology. This regulatory shift specifically limits the ability of Chinese manufacturers to sell autonomous robotic products into the U.S. market. As a U.S.-based developer and manufacturer of autonomous industrial vehicles, Cyngn is well positioned to serve customers seeking domestically developed automation solutions amid this evolving policy environment.
Q2 2026 Six Month Financial Review:
Year-to-date second quarter revenue was $249 thousand compared to $80.9 thousand in the six months ended June 30, 2025. Similar to prior year, year-to-date 2026 revenue consisted of EAS software subscriptions from DriveMod tugger vehicle deployments.
Total costs and expenses for the six months ended June 30, 2026 were $13.9 million, an increase of $3.1 million or 29% from $10.8 million for the six months ended June 30, 2025. This increase was due to a $2.0 million increase in research and development (R&D), primarily due to personnel costs driven by the change in accounting estimate related to capitalized software. In addition, the company experienced a $1.1 million increase in general and administrative (G&A) expenses, primarily driven by an increase in board of director's pay in lieu of the equity component of the director compensation program for 2025 and an increase in marketing and advertising expenses. There was an increase of $117.6 thousand in cost of revenue due to the deployment costs being recognized over the life of the awarded contracts. For the six months ended June 30, 2026, other income (expense), net was $0.9 million compared to $1.4 million for the six months ended June 30, 2025. The decrease in other income was primarily driven by the fair value measurement of warrants issued in the first quarter of 2025.
Net loss for the six months ended June 30, 2026 was $(12.8) million compared to $(9.4) million in the six months ended June 30, 2025. Net loss per share for the six-month period was $(1.02), based on basic and diluted weighted average shares outstanding of approximately 12.6 million. This compares to a net loss per share of $(5.90) for the six months ended June 30, 2025, based on approximately 1.6 million basic and diluted weighted average shares outstanding.
Q2 2026 Three Month Financial Review:
Revenue in Q2 2026 was $144.5 thousand compared to $33.7 thousand in the second quarter of 2025. Similar to prior year, second quarter of 2026 revenue consisted of EAS software subscriptions from DriveMod tugger vehicle deployments.
Total costs and expenses in the second quarter were $6.9 million, an increase of $1.4 million or 25% from $5.5 million in the second quarter of 2025. This increase was due to a $1.2 million increase in research and development (R&D), primarily due to personnel costs driven by the change in accounting estimate related to capitalized software. In addition, there was an increase of $72 thousand in cost of revenue due to the deployment costs being recognized over the life of the awarded contracts. General and administrative (G&A) expenses remained consistent year over year. For the second quarter of 2026, other income (expense), net was $0.4 million compared to $0.05 million in the second quarter of 2025. The increase in other income was primarily driven by income from short-term investments.
Net loss for the second quarter was $(6.4) million compared to $(5.4) million in the corresponding quarter of 2025. Second quarter net loss per share was $(0.45), based on basic and diluted weighted average shares outstanding of approximately 14.1 million in the quarter. This compares to a net loss per share of $(2.70) in the second quarter of 2025, based on approximately 2.0 million basic and diluted weighted average shares outstanding.
Balance Sheet Highlights:
Cyngn's unrestricted cash and short-term investments as of June 30, 2026 totaled $39.7 million compared to $34.7 million as of December 31, 2025. At the end of the same period, working capital was $41.3 million and total stockholders' equity was $44.6 million, as compared to year-end working capital of $35.7 million and total stockholders' equity of $38.8 million, respectively as of December 31, 2025. The Company had no debt as of June 30, 2026 and December 31, 2025 and to date, no member of the current management team has sold any shares of the Company's stock.
CYNGN INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 144,459 | $ | 33,726 | $ | 249,032 | $ | 80,878 | ||||||||
Costs and expenses | ||||||||||||||||
Cost of revenue | 88,983 | 16,944 | 146,333 | 28,758 | ||||||||||||
Research and development | 3,153,551 | 1,970,125 | 6,042,803 | 4,077,034 | ||||||||||||
General and administrative | 3,655,928 | 3,548,522 | 7,755,670 | 6,691,984 | ||||||||||||
Total costs and expenses | 6,898,462 | 5,535,591 | 13,944,806 | 10,797,776 | ||||||||||||
Loss from operations | (6,754,003) | (5,501,865) | (13,695,774) | (10,716,898) | ||||||||||||
Other income (loss), net | ||||||||||||||||
Interest income, net | 21,594 | (197,992) | 43,664 | (123,173) | ||||||||||||
Change in fair value of warrant liabilities | ‒ | ‒ | ‒ | 1,136,677 | ||||||||||||
Other income, net | 377,899 | 251,545 | 810,841 | 343,435 | ||||||||||||
Total other income (loss), net | 399,493 | 53,553 | 854,505 | 1,356,939 | ||||||||||||
Net loss | $ | (6,354,510) | $ | (5,448,312) | $ | (12,841,269) | $ | (9,359,959) | ||||||||
Net loss per share attributable to common stockholders, | $ | (0.45) | $ | (2.70) | $ | (1.02) | $ | (5.90) | ||||||||
Weighted-average shares used in computing net loss per | 14,109,819 | 2,017,228 | 12,567,770 | 1,586,453 | ||||||||||||
CYNGN INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
June 30, | December 31, | |||||||
2026 | 2025 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 2,228,211 | $ | 990,023 | ||||
Short-term investments | 37,471,239 | 33,736,091 | ||||||
Accounts and other receivables | 1,345,455 | 1,544,213 | ||||||
Inventory | 1,656,645 | 2,039,655 | ||||||
Prepaid expenses and other current assets | 1,255,536 | 885,800 | ||||||
TOTAL CURRENT ASSETS | 43,957,086 | 39,195,782 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 3,710,626 | 3,268,196 | ||||||
Right of use asset, net | 5,536,958 | 5,971,800 | ||||||
Intangible assets, net | 452,717 | 466,223 | ||||||
Other non-current assets | 1,311,971 | 1,151,214 | ||||||
TOTAL NON-CURRENT ASSETS | 11,012,272 | 10,857,433 | ||||||
TOTAL ASSETS | $ | 54,969,358 | $ | 50,053,215 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 168,602 | $ | 217,439 | ||||
Deferred revenue | 555,368 | 395,348 | ||||||
Current operating lease liability | 844,728 | 312,365 | ||||||
Accrued expenses and other current liabilities | 1,120,896 | 2,615,734 | ||||||
TOTAL CURRENT LIABILITIES | 2,689,594 | 3,540,886 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Non-current deferred revenue | 1,710,044 | 1,262,667 | ||||||
Non-current operating lease liability | 5,977,917 | 6,495,256 | ||||||
TOTAL NON-CURRENT LIABILITIES | 7,687,961 | 7,757,923 | ||||||
TOTAL LIABILITIES | 10,377,555 | 11,298,809 | ||||||
Commitments and Contingencies (Note 13) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, Par $0.00001; 400,000,000 shares authorized as of June | 144 | 80 | ||||||
Additional paid-in capital | 274,255,399 | 255,576,797 | ||||||
Accumulated deficit | (229,663,740) | (216,822,471) | ||||||
TOTAL STOCKHOLDERS' EQUITY | 44,591,803 | 38,754,406 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 54,969,358 | $ | 50,053,215 | ||||
CYNGN INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2026 | 2025 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (12,841,269) | $ | (9,359,959) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 625,516 | 603,116 | ||||||
Stock-based compensation | 762,772 | 993,131 | ||||||
Realized gain on short-term investments | (18,168) | (85,117) | ||||||
Accretion on short-term investments | (817,877) | (231,207) | ||||||
Loss on disposed assets | 1,246 | 10,426 | ||||||
Change in fair value of warrant liability | ‒ | (1,136,677) | ||||||
Change in assets and liabilities: | ||||||||
Accounts and other receivables | 198,758 | (583,572) | ||||||
Inventory | 383,010 | (835,481) | ||||||
Prepaid expenses, operating lease right-of-use assets, and other assets | (530,492) | (1,534,109) | ||||||
Accounts payable | (48,837) | (71,509) | ||||||
Deferred revenue | 607,397 | (6,918) | ||||||
Accrued expenses, lease liabilities, and other current liabilities | (1,479,815) | (532,487) | ||||||
Net cash used in operating activities | (13,157,759) | (12,770,363) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property and equipment | (615,911) | (352,853) | ||||||
Acquisition of intangible asset | (4,933) | (1,186,659) | ||||||
Purchase of short-term investments | (47,063,318) | (30,805,799) | ||||||
Proceeds from maturity of short-term investments | 44,164,215 | 23,230,501 | ||||||
Net cash used in investing activities | (3,519,947) | (9,114,810) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from at-the-market equity financing, net of issuance costs | 9,166,427 | ‒ | ||||||
Proceeds from public issuance of common stock, net of offering costs | 8,749,467 | 29,611,678 | ||||||
Issuance costs for public issuance of common stock and pre-funded warrants and | ‒ | (1,025) | ||||||
Net cash provided by financing activities | 17,915,894 | 29,610,653 | ||||||
Net increase in cash and cash equivalents | 1,238,188 | 7,725,480 | ||||||
Cash and cash equivalents at beginning of period | 990,023 | 23,617,733 | ||||||
Cash and cash equivalents at end of period | $ | 2,228,211 | $ | 31,343,213 | ||||
Supplemental disclosure: | ||||||||
Acquisition of right-of-use asset in exchange for new operating lease obligation | $ | ‒ | $ | 6,411,127 | ||||
About Cyngn
Cyngn develops and deploys autonomous vehicle technology for industrial organizations like manufacturers and logistics companies. The Company addresses significant challenges facing industrial organizations today, such as labor shortages and costly safety incidents.
Cyngn's DriveMod technology empowers customers to seamlessly bring self-driving technology to their operations without high upfront costs or infrastructure installations. DriveMod is currently available on Motrec MT-160 Tuggers.
The DriveMod Tugger hauls up to 12,000 lbs, travels inside and out, and targets a typical payback period of less than 2 years.
Investor Contact:
Natalie Russell
CFO
[email protected]
Media Contact:
Luke Renner
Head of Marketing
[email protected]
Where to Find Cyngn:
- Website: https://cyngn.com
- X: https://x.com/cyngn
- LinkedIn: https://www.linkedin.com/company/cyngn
- YouTube: https://www.youtube.com/@cyngnhq
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the Securities and Exchange Commission (SEC), including, without limitation the risk factors discussed in the Company's annual report on Form 10-K filed with the SEC on March 26, 2026. Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Cyngn undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Cyngn
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