committing millions of dollars to activate new sites all over the state. We're excited that Orlando is already moving forward with developing a vertiport in the central terminal area of one of the country's busiest commercial airports. In Dubai, at the Marina, the second of four vertiports being built by our partners is nearly complete, and we continue to see meaningful progress on infrastructure in markets like Japan, the wider UAE, Korea, and Australia. To make the most of this momentum, we still have to deliver our part, the aircraft and the service. And I'm pleased to report excellent progress there too. We now have five of our electric air taxis in the air, including our first FAA conforming aircraft. And we have 12 more aircraft in various stages of the production process, including two set for delivery this year. As we've said before, manufacturing is hard. Anyone who has tried to do it at scale will tell you that. And building conforming aircraft represents a step change in complexity. We are putting in the hard miles now so that we're ready to make the most of all of the opportunities I've just described. Over the last quarter, we've worked tirelessly to remove bottlenecks and improve processes. And during the first six months of this year, as just one example, we reduced the non-conformance rate in our manufacturing processes by nearly 40%. This represents excellent progress as we move from R&D builds to low-rate production. During the quarter, we also took a significant step forward in our relationship with Toyota, forming a joint venture that lays the groundwork for high volume commercial production, helping to significantly reduce the risk of one of the greatest challenges ahead of us. We're incredibly grateful to have had Toyota, the world's largest automaker, at our side for more than seven years, leaning into that challenge and working with us to bring the best of automotive manufacturing to aviation. We'll share more about our plans for the Strategic Alliance in due course, but I'm pleased to say that a senior Toyota manufacturing leader is set to join our Marina team shortly as we continue to work ever more closely together. By investing together in the people, facilities, and systems required for production, we will create a more capital-efficient path to scale and a manufacturing system designed from the outset to deliver exceptional quality and consistency at volume. I'd like to end where I started with the EIPP program. As I've said, the program promises to be an important opportunity to accelerate commercialization and a critical part of that will be the safe and effective integration of our aircraft into the national airspace. In April, we announced a partnership with ASI focused on this work, and I'd like to congratulate ASI on being recently selected by the FAA to provide the central software infrastructure for managing traffic across the U.S. national airspace system. ASI is effectively building an operating system for airspace, the invisible infrastructure that will allow us to scale access to our skies. It's an honor to be partnered with them, and we look forward to collaborating on airspace integration as part of our EIPP work. It's incredibly exciting to see all of these pieces coming together, and I hope everything we've shared today gives you a real sense of just how close we are and how ready we are for commercialization. We're building the infrastructure, we're building the aircraft, we're building the customer base, and we're building our operational experience. and on top of it all, we just had our strongest quarter yet in terms of progress on the fifth and final stage of type certification. Taken together, everything I've described today is how we will unlock the third dimension of mobility and turn electric vertical flight from an extraordinary technology into an everyday reality, giving people their time back and fundamentally changing the way we move. And with that, I'll hand it over to Rodrigo.

Thank you, JoeBen, and good evening, everyone. As JoeBen said in the beginning of the call, the revenue raise is a big part of today's story and Blade is a big part of the reason. The way Blade delivered is exactly what's giving us the confidence to increase guidance. On a more personal note, it was great to see many of you at Farnborough last month. What struck me There was the energy in the room, wasn't just talk. It was a response to real execution, progress on certification, on manufacturing, and on building the commercial foundation for the EIPP. What I would like to do now is put numbers to that progress and walk you through how we're deploying capital against it with the usual discipline. Let me start with the second quarter financial results. We ended the second quarter with approximately $2.3 billion in cash, cash equivalents, and short-term investments. Our Q2 use of cash, cash equivalents, and short-term investments totaled approximately $202 million compared to $195 million in the first quarter, which included the net cash impact of our Ohio facility purchase. Excluding that one-time Ohio investment, our first half 2026 use of cash was $365 million, which is within our guidance range of $340 to $370 million. Additional detail is available in our Q2 shareholder letter. Total property and equipment investment in the quarter was approximately $29 million compared to $78 million last quarter. With the Ohio Purchase behind us, CAPEX declined sequentially, though it remains elevated versus prior years as we build out manufacturing capacity. Revenue for Q2 was $39 million, primarily from Blade passenger business, and up $14 million from the prior quarter. Blade delivered a standout quarter, supported by the seasonal summer ramp, favorable weather, and elevated demand around major events. We are pleased with that momentum. It exceeded our expectations. and it's reflected in the risk guidance we'll walk you through shortly. Total operating expenses for Q2 were $300 million compared to $258 million in Q1. The 42 million increase was primarily driven by 23 million of continued investment to support certification, manufacturing ramp, and commercial readiness, 11 million in costs related to increasing revenue, and 8 million in other expenses. On a gap basis, we reported a Q2 net loss of $245 million compared to $110 million in the prior quarter. Most of that increase was related to a $108 million non-cash unfavorable change in the fair value of warrants and earn-out shares. The rest was a $27 million increase in loss from operations. Keep in mind that fair value revaluation is driven primarily by changes in our share price and can introduce meaningful non-cash volatility from quarter to quarter. Adjusted EBITDA, a non-GAAP metric that we reconcile to net income in our shareholder letter, was a loss of $197 million in Q2 compared to a loss of $179 million in Q1. The $19 million change quarter-by-quarter reflects the revenue and expense dynamics I just described. Stepping back for a moment, The mix of our spending is shifting to preparation for commercial operations as well as aircraft production. In the first half, capital expenditures were $107 million, including $62 million for Ohio and $15 million for Hollister, where we have invested in expanded flight test capabilities. We expect capital spending to run below the first half pace in the back half, though still elevated relative to prior years as we keep investing in manufacturing and commercial infrastructure. And we will continue to size that spend to respect the milestones. As we advance our U.S. go-to-market through EIPP, We are investing in the foundation required to carry passengers, part 135 operations, maintenance and training in the systems that turn an aircraft into a running service. It is an exciting time. We see the EIPP as complementary to certification, a parallel path to build, improve the commercial side of the business while certification continues on its own track. We are spinning as we hit milestones not before. On manufacturing, our joint venture with Toyota lets our teams work side by side to scale production. It also lets us share the investment required to build that capability, leveraging Toyota's decades of production expertise. As we finalize the remaining supply agreements, we continue to expect Toyota's $250 million direct investment in Joby to close later this year or early next. Now onto our guidance. Our approach to capital remains disciplined and milestone-driven. As we move through the back half of the year, We are managing spend to optimize for certification progress, production ramp, and increasingly, commercial readiness through the EIPP. For the second half of 2026, we expect to use $385 to $415 million in cash, primarily to support certification, manufacturing, EIPP, and commercialization. The step up from the first half reflects deliberate investment in commercial readiness as we scale into operations. And as always, we can stage a portion of that spend to match our progress, keeping our usual capital discipline. On revenue, GivenBlade's continued strength and healthy demand for air mobility, we are raising our four-year guidance to a range of $115 to $125 million for a prior $105 to $115 million range. With $63 million in revenue already recognized in the first half and blade typically peaking in the third quarter, we feel good about delivering on this increased range. Thank you for your continued support and operator. Please open the call for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Andre Shepard with Cantor Fitzgerald. Please proceed with your question.

Hey, everyone. Good afternoon. Congratulations on the quarter and all the great progress. And it was great to see everyone at the Farmborough Airshow a few weeks ago. First question I guess I have is just coming back to the EIPP. So again, a lot of great progress here and, you know, initial flights in September. and First Passengers in 2026. Very exciting. I guess my question here maybe for you, JoeBen, is how are you thinking about utilizing your current fleet across these projects and including maybe your aircrafts in production? How do you expect to deploy these across the different projects? And then maybe secondly, and I realize this might be a bit early, but do we have a sense of revenue-generating opportunities that may come from the EIPP? Thank you.

Thank you, Andreas. It was wonderful to see you in Farnborough. I'll take the first part of that and then pass it to Rodrigo. The EIPP is really a spectacular opportunity that's been provided to us, and we're really excited about it, really excited about beginning that in Texas with our existing fleet and expanding that over the months to come and out into 2027 as we bring more and more aircraft online. As I mentioned in my prepared remarks, we have our first conforming aircraft flying and we have 12 more that are in production. That's an increase of four additional aircraft this quarter into our production queue. And the reason we're leaning so hard into manufacturing is the incredible opportunity that we see in front of us, both with the EIPP and as Rodrigo spoke about with and the incredible performance of the Blade Division. With that, I'll hand it to Rodrigo.

Yes, thanks, Jorben, and good to see you, Andres, that informed the role. Look, it's premature to provide far guidance on the numbers today, but the reason we're so excited about this program is because it's giving us the opportunity to monetize every single aircraft that comes off our production. for the foreseeable future. So think about the EIPP markets at once. So we're talking about Texas, Florida, New York. That alone could absorb the whole production for quite some time. And let's not forget about California, our backyard here. So number one, we want to maximize that opportunity. And that's why we're so focused on production growth. And we started that not yesterday. We started much earlier than that. Don't forget, we intend to start passenger operations in Dubai as well. That will be on top. And I think Blade is showing us that vertical lift, you know, what it can do. We saw a record quarter and you were actually to experience that benefit while you're there in the UK.

Wonderful. Thank you both. That's very helpful. Really appreciate that color. Maybe just as a quick follow-up, JoeBen, maybe a bit of an unconventional question, but at the Farnborough Airshow, you highlighted hydrogen as an exciting kind of new propulsion system. And so I guess my question there is maybe can you elaborate on that? How material is that to the story? I know it's maybe not talked about enough, but that was a bit differentiated. So just curious on how you're thinking about that and maybe some potential opportunities there that you're considering. Thank you.

Thank you so much, Andres. So hydrogen has been something we began pulling the thread on back six plus years ago. Just to set the context, hydrogen has three times the specific energy of jet fuel. And with our fuel cell systems, we can convert that chemical energy into propulsion about twice as efficiently as a small turbine converts jet fuel into propulsion. And As a result, you can do really game-changing things with aircraft design. If you think about this in the context of a long-haul aircraft, take an A320 versus an A350. So the A350 flies twice as far with twice as many passengers. It weighs four times as much. It takes off with more weight in jet fuel than weight in passengers. and that aircraft also costs four times as much. So it costs twice as much per passenger, weighs twice as much per passenger, and that's all down to the fuel being very, very heavy. And so if you have a lighter weight fuel, you can do really game-changing things with aircraft. We think this is the biggest disruption in aviation since the invention of the turbine engine back in the 1930s. And we think that by being one of the world leaders, if not the world leader, we're going to see really significant upside over the years to come.

Excellent. Very well said. Thank you so much. Congrats again on the quarter, everybody. We'll pass it on.

Thank you. Our next question comes from the line of Savvy Sith with Raymond James. Please proceed with your question.

Hey, good afternoon, everyone. Just on Blade, perhaps, you know, I was kind of curious what you're seeing given the kind of the fuel increase here and Braid still relying on fuel. Just what you're seeing in terms of kind of pass through and kind of the ability for demand to kind of absorb that and any high level thoughts on, you know, margins this year versus maybe the potential there as kind of fuel might pull back.

So, Savi, I think your question, and this is Rodrigo here, about the demand. Look, number one, if I look at business, Blade itself, the acquisition has been a home run. You saw that in the quarters here. We just had the highest number of seats sold in Q2 in our history, and most importantly, the highest numbers of new flights from NYC in New York since 2023. What that's telling you is The demand for vertical lift is very high. So Blade has been a home run acquisition for us. We are lapping the first year pretty soon. And they have reaccelerated their growth. That's coming from the focus from the management in the high demand that we have for the service. And it's been a very valuable infrastructure that we acquired. So if you think about what we did here, we acquired the already built infrastructure, a loyal and growing customer base that loves the benefits from vertical lift in a decade of know-how. So we put this all together. This is a very growing demand for us. Look, now in terms of the, I guess your question is more like for the operating costs, I would say flight margin has improved and you're not seeing a direct impact that will be flowing through the bottom line. Right now we are running a business that is not consuming cash and in fact is contributing on the growth. And also I think the team is doing a pretty good job in terms of selling the capacity that is available to the demand that's quite high.

If that's helpful, I appreciate that. And maybe if I could briefly follow up on Andre's question on the EIPP side, just on the aircraft that you plan to use, is that the certification conforming aircraft that you plan to use in those flight tests? Or are you able to kind of use some of the kind of prior generation aircraft as well as you kind of progress through that flying process?

Thank you so much, Savi. We're going to use a mix of different aircraft, both aircraft from our existing fleet as well as producing as many aircraft as we possibly can off of our company-conforming production line.

That's helpful. Thank you.

Thank you. And as a reminder, if anyone has any questions, you may press star 1 on your telephone keypad to join the question and answer queue. Our next question comes from the line of James Kirby with JP Morgan. Please proceed with your question.

Hey, good afternoon. Thanks a lot for the time. I just wanted to ask on the scale and ramp, JoeBen, I appreciate the color you answered in the previous question on the four incremental and development aircraft quarter of a quarter. Is that a right cadence to think of for the back half of the year? I think you mentioned two are expected to be delivered. later this year. So is the right way to think about that is that you expect to end the year with seven aircraft flying?

Yeah, thank you so much. We are, as I mentioned, ramping our manufacturing as aggressively as we can. We've been making really phenomenal progress on the non-conformance rate, which translates directly into improvements in efficiency and improvements in output. And so we are going to continue to add new aircraft into the front end of the build queue because there is a lag between when we start a build and when the aircraft comes out the back end. As I mentioned, we're targeting at least two aircraft to come off the line over the back half of the year and hoping to over-deliver.

Got it. That's really helpful. And then for my second question, just in light of recent industry announcements on the defense side, maybe just wanted to give you a chance to really just clarify. I know you've been asked on almost every call on the end markets for defense, but maybe just where the defense sits into the Joby ecosystem and particularly where you prioritize it with the EIPP obviously ramping in the coming months.

Yeah, thanks a lot for the question. This is Paul. Obviously, there's been a lot of conversation across the industry around hybrid VTOL for defense. And, you know, we have been working on this category for going on two years. And not just working on it, but actually demonstrating improved range, improved capability, in conjunction with moving to a hybrid platform on real aircraft that are flying. And we think that puts us in a really strong position to take advantage of the opportunities that we see before us across multiple different customers across the DOW. Now look, the mission types for vertical lift vehicles for those customer sets are really wide. There are areas in strike, areas in ISR, areas in infill and exfill, particularly for passenger carrying versions that I think are all super exciting for the core capabilities that we're demonstrating. And I think one of the things that you're seeing more broadly in defense is that it used to be that specs sort of delivered on capabilities, but actually the reverse is largely true now, or at least there's an interplay between the two. And it's demonstrating capabilities that allow you to shape the specifications that the customer wants. So that's why we've been doing the work and why we think we're going to be well positioned to take full opportunity of all of those defense customer use cases.

Thanks, Paul.

Thank you. Our next question comes from the line of Amit Dial with HC Wainwright. Please proceed with your question.

Thank you, Graf and everyone. Thank you for taking my questions. With respect to the EIPP program that's about to start for you guys, are there any aspects of running the EIPP program that could give you certification credits, or should we think of these as separate efforts with no overlap?

Thank you so much. We do see the potential for there being the potential to accelerate our overall certification program on the back of a lot of the flight testing and experience that we gain through the EIPP program. Just as a recap, we're working Very closely with the FAA as well as local municipalities as we conduct our flights and operations under the IPP program. And that close coordination, we think, has the potential to pay dividends.

Thank you. And then my follow up, I guess, is around the ATOMS partnership. Should we assume this partnership implies that you could be shouldering some of the capex that goes into developing the vertiports? I just want to see if this potentially adds some additional burden on your balance sheet or if that is not a correct assumption.

Thanks for the question. So it is a co-investment vehicle, and both parties are going to contribute capital. But most importantly, when it comes to the way in which it's structured, is that Adams has built up a number of financing relationships over a long period of time, given their work in real estate development and operation for many, many years now. So we get to be the beneficiary of a lot of the relationships and the credibility that they've already sort of built out. JB already mentioned sort of in the outset how we're going to sort of lean on the Adams team for site identification, procurement, and in turn sort of build out an operations. And that in turn means that we have a smaller share of the lift for all of the sites that we develop. But I think the most important thing really is the opportunity to kind of help to define a brand new asset class with two important new modes of transportation entering U.S. cities over this year and the coming years. That is autonomous vehicles on the ground and EV tall aircraft in the air. We're going to need this sort of new infrastructure. And I think if we can go out and demonstrate its viability in conjunction with the smart folks over at Adams, we really can define this new asset class that us and others can continue to develop in more markets and at greater scale over time.

Thank you for that. Just can I maybe ask one question on the aircraft that you are planning to deliver this year? Who are those going to, if you can share any color on that?

As I mentioned at the outset, we have far more demand for aircraft than we have the production or we're able to produce at the moment. And so we're ramping production. We have not specifically decided the destinations for those two aircraft. Dubai and the UAE remain Very high on our priority list, but we will make strategic decisions as those aircraft come off the line.

Thank you, guys. That's all I have. I appreciate it.

Thank you. Our next question comes from the line of Austin Mueller with Canaccord Genuity. Please proceed with your question.

Hi. Good afternoon, JoeBen, Rodrigo, and Paul. So, Of the conforming aircraft that are currently in the assembly phase, do we have any timetable on when some of those are going to come off the line? I know one of them is already in ground testing, but when those would come off the line and start conducting flight tests? Because our thinking should be that it's 12 months from when TIA flight testing starts to start, correct?

Thanks, Austin. So just to kind of recap it for folks, we have... The first step is doing the work on stage five. And as we reported, this is the final stage of certification. We reported record progress on stage five this quarter. So really thrilled with the work the team's doing there. That is about running the component level testing, the system level testing, and writing those test reports. making great progress on that. The second piece is preparing the flight test plans that first Joby pilots will get in and fly on those aircraft. and then it is about the third leg of the stool is we need to expand the flight envelope on that first conforming aircraft. We've done that work already on our prior series of aircraft, which are for all intents very similar to our FAA conforming aircraft. and so we're in a sense repeating those exercises. The other element that we're now working on in parallel is this work on the EIPP and we see that as an incredible opportunity, but also an additional burden on the team. And so we think that it has the potential in the short term, it's additional effort. But as I said earlier, it has the potential to accelerate our overall certification program. But the short term may be some extra load.

Okay, and can you comment on the incremental $250 million equity investment that's expected from Toyota? Does that go to you now, or would that go within the JV?

Hey, Austin, Rodrigo here, and I look forward to seeing you in the conference next week. Short answer is it's coming, and it's going to go directly to Joby, Inc. Should expect that by the end of the year or early next year.

Awesome. I'll pass it back there. Thank you.

Thank you. Our next question comes from the line of Chris Pierce with Needham and Company. Please proceed with your question.

Hey, everyone. I just want to, can you help me sort of level set what to expect in September and through the rest of the year in Texas? Like, should this look like the Electric Skies event? Should this look like one flight? Or could this be, you know, high, not high frequency, but, you know, an aircraft there flying on a semi-regular basis and Are these passengers, you know, kind of one-off type passengers or are they able to book through the Joby app or the Uber app? I just want to kind of know what we should be looking for at the start and how it progresses.

Yeah, thank you. Just as a recap, this is staged, so it will begin with Joby pilots on board and then progress to passengers and then further on down the road paying passengers. And so that's the progression you should expect. with the flights, specifically the flights in Texas. We're planning that over the course of a week. And we plan to do a number of flights that allow us to really get comfortable operating in the Dallas-Fort Worth airspace. We see this as a tremendous opportunity, and and Texas is a really, really exciting market for us and for the industry as a whole.

Okay, perfect. That makes sense. Thanks for that. So we shouldn't expect... That's fine. I get it. Okay, perfect. And then I want to talk about ramping production, I guess. How should we think about, you know, when you might turn Ohio on, when investors might be able to, you know, have boots on the ground and sort of really see the higher tempo production as you move beyond sort of and many more. Thank you.

The ramp in Ohio for the components we're manufacturing there has already gotten going. And the team is doing a spectacular job of producing conforming components out of that facility. And we are also ramping at our facilities in San Carlos and in Marina. We expect to continue to ramp each of those facilities in parallel as we increase our manufacturing volume over the quarters to come. So if you're interested in seeing our manufacturing operations, we would love to have you. We think we're doing a really remarkable job, and it's really fun to come see you.

Okay, and then just flipping back to Andres' question, I believe you talked about, sorry if this came up on the call, but Dubai, you're still anticipating passenger flight there this year, or that's sort of because of the conflict that's sort of, not lower priority, but just that's a lower likelihood event, or has anything changed in that regard?

So our partners there are as leaned in as ever. This is the RTA and the GCA, as well as our infrastructure partners. The first vertiport is done. The second one is close to completion. The third is progressing well. And That is really significant because the degree to which the government there is leaned in on making this new mode of transportation a reality. I was over there about a month ago, and we think that Dubai, the UAE, and the region as a whole is a really remarkable and exciting opportunity, and we can't get We can't wait to get back to flying there. As a reminder, we have an aircraft over there, and we're really – we can't wait to get going.

Okay, perfect. Thank you, and good luck.

Thank you. Our next question comes from the line of Christine Lewag with Morgan Stanley. Please proceed with your question.

Good morning, everyone, or I guess good afternoon. By the way, it was great to fly Blade at Farnborough last month. Our roughly 15-hour flight certainly beat, 15-minute flight, excuse me, beat the two-hour drive back to central London. So I guess, you know, pivoting to Blade then, can you provide an update in terms of how you're viewing that business strategically, specifically how much of Blade's current operations are focused on retaining and servicing the existing customer base versus potentially expanding that customer base ahead of Farnborough? and how do you think about balancing that near-term operating discipline versus accelerating blade as a demand generation platform?

Thanks a lot, Christine. This is Paul. So, I mean, as you saw from the numbers and as you saw from the guide, you know, we're feeling really good about the existing blade footprint and really the demand signal that we're getting from those core markets. The principal issue that we've had in terms of scaling up beyond that existing demand is aircraft availability, which is obviously something that we hope to solve with a better, quieter aircraft in relatively short order. Blade has had tons of opportunity to sort of potentially expand its overall footprint. And we're evaluating those on a pretty regular basis. Obviously, some of that work is happening in the EIPB markets that will be Joby launch sites as well. But we're kind of taking each of them in turn and evaluating the core merits about whether or not it makes sense to do or not. But as I said, in terms of the The core of the business, we couldn't be more pleased with both the signal that we were getting directly from customers, the operational experience that Rob and the broader team sort of bring, given their work on this for years and years. And finally, the insight on the kinds of journeys, not just airport to airport, but airport to non-airport that really make this whole thing work.

Great, super helpful. Thank you, Paul.

Terrific. Thank you. And thank you to all the analysts who asked questions today. Earlier this week, we invited members of our community to submit questions as well. And I think we have time for at least one of those now. The first question actually is about modernizing ATC. The question is, will Joby have any involvement with ASI's FAA contract to modernize the air traffic control system?

Paul?

Yeah, so we started our partnership with ASI earlier this year, and we were very excited that they were selected by the FAA for one important component of the broader ATC modernization, the sort of SMART program. We will be working with ASI in short order to essentially trial their tools in the existing airspace, both with blade operations and with Joby eVTOL operations. We see it as a very important sandbox with a small number of aircraft and a limited geography to essentially prove out the additional performance that we can bring in terms of flight frequency from sort of key locations. And that's really the role that we're going to play in conjunction with ASI on that effort. But look, more broadly, when you think about the ATC modernization, and there are other pieces of that that are coming, including CAPs, ground infrastructure, all of it is really in service, I think, of allowing us to increase Thank you for joining us. which were progressing well with our super pilot autonomy stack that we acquired via the X-Wing acquisition. So the ATC modernization is an opportunity to both increase the revenue opportunity of current and future piloted operations and then over time really expand the scope and scale of autonomous operations which are both super exciting for the long-term business.

Great, thank you. Thank you everyone for joining us today. We greatly appreciate your support. We'll talk to you soon.