Agility Robotics’ IPO Marks Milestone in Humanoid Robotics

Agility Robotics is entering a new phase by bringing its humanoid robots to Wall Street. The Oregon-based company, known for robots like Digit that transport materials in factories and warehouses, will soon be listed on Nasdaq. This move makes it the first US-focused humanoid robot company to go public.

Last year, Agility Robotics generated $1.8 million in revenue but posted a $138.1 million net loss. A significant portion of the revenue came from five robots bought by one of its investors. The firm is going public via a merger with Churchill Capital Corp XI, a special-purpose acquisition company (SPAC) led by Michael Klein, a former Citigroup executive. The merger was finalized recently, and the combined entity will trade under the ticker AGLT.

New Metrics and Funding

Agility Robotics’ CEO Peggy Johnson commented on the milestone, highlighting the opportunity to establish new standards within the humanoid market. Johnson, who has held leadership roles at Magic Leap, Microsoft, and Qualcomm, emphasized the potential for setting benchmarks in humanoid robotics.

The merger places Agility’s equity at around $2.5 billion. The company anticipates raising $465 million in gross capital before expenses. This includes $100 million already secured. The popularity of SPAC mergers surged during 2020 and 2021 but declined with rising interest rates in 2022. These mergers are regaining interest as the IPO landscape recovers.

Johnson indicated that the company chose the SPAC route to collaborate with Klein, known for his role in taking nuclear power company Oklo and electric vehicle maker Lucid public.

Industry Position and Market Impact

Agility stands out for its active deployments. Although their deployments remain small in scale, they represent a considerable step for commercial humanoid robotics, according to George Chowdhury, a principal analyst at ABI Research.

Thus far, Agility has deployed its Digit robot in nine customer facilities including Amazon, Toyota, and GXO. The company’s backers include major players like Amazon, Foxconn, Nvidia, SoftBank, and DCVC.

Aside from a $38 million non-cash expense related to employee stock awards, Agility has spent $99.8 million in cash operating its business. The CEO noted the expectations of incurring further losses and higher expenses moving forward.

Looking to the Future

Agility’s new model, Digit 5, aims to safely work near humans without safety barriers. They have secured over $300 million in orders for 1,000 robots from a single client. The agreements involve usage payments spanning three years but depend on timely delivery and promised features. Deliveries are planned for early 2027, with full availability by the end of that year.

The public offering reflects varying valuations for humanoid robot companies. Agility’s $2.5 billion valuation pales next to competitors like Figure AI at $39 billion, Apptronik at $5.5 billion, and Neura Robotics at $7 billion. Tesla is also in the mix with its Optimus project, though it lacks a standalone valuation.

Chowdhury highlights a trend where companies offering ready-to-ship hardware face lower market valuations compared to those focusing on future developments.

Washington’s recent restrictions on foreign-made robots might provide US-based manufacturers like Agility Robotics an advantage. In July, the FCC banned new foreign-made advanced robotic devices. Agility currently manufactures its robots in Oregon, establishing a presence within the US market.

Chinese firms dominate the humanoid robot sector, accounting for a significant majority of shipments last year. Unitree, a Chinese company that went public on the Shanghai stock exchange, is valued at approximately $40 billion. This makes Agility’s entrance even more vital for showcasing US strength in the field.