During the quarter, Cyngn announced a follow-on order from an existing Fortune 100 heavy equipment manufacturer, extending DriveMod into an additional assembly-line material handling application. Building on an established customer relationship, the order illustrates Cyngn's strategy of expanding autonomous operations beyond initial deployments as manufacturers identify additional workflows suitable for automation.
Cyngn also advanced initiatives to strengthen commercial execution and operating efficiency. Following changes to its sales organization, the Company implemented a more disciplined approach to customer qualification, pipeline accountability, and identifying applications aligned with the DriveMod Tugger. These efforts were accompanied by a streamlined organizational structure and expanded use of AI-assisted tools across engineering and business operations, with the objective of improving productivity and concentrating resources on priority initiatives.
The Company continued strengthening its capabilities to support enterprise customers. Cyngn announced its achievement of ISO 27001 certification in September and completed its inaugural SOC 2 Type II examination with zero exceptions in October, ahead of its previously announced year-end target. Together with its portfolio of 24 issued U.S. patents, these milestones reflect continued investment in the technology and security infrastructure supporting the Company's autonomous vehicle platform.
In October, Cyngn also formally announced the launch of DriveMod EasyLaunch™, a simplified deployment program offering qualifying customers one autonomous tugger, one route, and a single monthly payment without an upfront capital investment or long-term commitment. The program is designed to lower barriers to initial adoption while providing customers with a practical starting point for expanding autonomous material handling across additional workflows.
Q3 2026 Nine Month Financial Review:
Year-to-date third quarter revenue was $405.5 thousand compared to $150.9 thousand in the nine months ended September 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 nine months ended September 30, 2026 were $20.5 million, an increase of $1.2 million or 6% from $19.3 million for the nine months ended September 30, 2025. This increase was due to a $1.2 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. In addition, there was an increase of $281.2 thousand in cost of revenue due to the deployment costs being recognized over the life of the awarded contracts.
This was offset by a $317.8 thousand decrease in research and development (R&D), primarily due to personnel costs driven by the change in accounting estimate related to capitalized software, partially offset by an increase in contractor fees and occupancy costs. For the nine months ended September 30, 2026, other income (expense), net remained consistent at $1.3 million compared to $1.3 million for the nine months ended September 30, 2025.
Net loss for the nine months ended September 30, 2026 was $(18.8) million compared to $(17.8) million in the nine months ended September 30, 2025. Net loss per share for the nine-month period was $(1.41), based on basic and diluted weighted average shares outstanding of approximately 13.3 million. This compares to a net loss per share of $(5.20) for the nine months ended September 30, 2025, based on approximately 3.4 million basic and diluted weighted average shares outstanding.
Q3 2026 Three Month Financial Review:
Revenue in Q3 2026 was $156.5 thousand compared to $70 thousand in the third quarter of 2025. Similar to prior year, third quarter of 2026 revenue consisted of EAS software subscriptions from DriveMod tugger vehicle deployments.
Total costs and expenses in the second quarter were $6.6 million, a decrease of $1.9 million or (23%) from $8.5 million in the third quarter of 2025. This decrease was primarily due to a $2.3 million decrease in research and development (R&D), primarily due to personnel costs driven by the change in accounting estimate related to capitalized software. This was partially offset by a $195.1 thousand increase in General and administrative (G&A), 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 occupancy costs.
In addition, There was an increase of $163.6 thousand in cost of revenue due to the deployment costs being recognized over the life of the awarded contracts. For the third quarter of 2026, other income (expense), net was $446.1 thousand compared to ($21.6) thousand in the third quarter of 2025. The increase in other income was primarily driven by income from short-term investments.
Net loss for the third quarter was $(6.0) million compared to $(8.4) million in the corresponding quarter of 2025. Third quarter net loss per share was $(0.41), based on basic and diluted weighted average shares outstanding of approximately 14.7 million in the quarter. This compares to a net loss per share of $(1.20) in the third quarter of 2025, based on approximately 7.0 million basic and diluted weighted average shares outstanding.
Cyngn's unrestricted cash and short-term investments as of September 30, 2026 totaled $34.9 million compared to $34.7 million as of December 31, 2025. At the end of the same period, working capital was $34.3 million and total stockholders' equity was $39 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 September 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.
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.
