Indie Semiconductor Inc - Ordinary Shares - Class A Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is Indie Semiconductor Inc - Ordinary Shares - Class A a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $688.47m | Revenue (TTM) = $231.15m
Market Cap = $688.47m | Estimated Revenue = $271.92m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $965.56m | Revenue (TTM) = $231.15m
Enterprise Value = $965.56m | Forward Revenue = $271.92m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Indie Semiconductor Inc - Ordinary Shares - Class A Stock Analysis
Analyst Opinions
14 Analysts have issued a Indie Semiconductor Inc - Ordinary Shares - Class A forecast:
Analyst Opinions
14 Analysts have issued a Indie Semiconductor Inc - Ordinary Shares - Class A forecast:
Indie Semiconductor Inc - Ordinary Shares - Class A Events
Past Events
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AUG
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Q2 2026 Earnings Call
about 2 months ago
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MAY
7
Q1 2026 Earnings Call
5 months ago
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FEB
19
Q4 2025 Earnings Call
8 months ago
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NOV
6
Q3 2025 Earnings Call
11 months ago
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Indie Semiconductor Inc - Ordinary Shares - Class A — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon, and welcome to indie's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.
Thank you, operator. Good afternoon, and welcome to indie's Second Quarter 2026 Earnings Call. Joining me today are Donald McClymont, indie's CEO and Co-Founder; Naixi Wu, indie's CFO; and Mark Tyndall, EVP of Corporate Development and Investor Relations. Donald will provide opening remarks and discuss business highlights. Naixi will then provide a review of indie's Q2 results and business outlook.
Please note, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by our quarterly reports on Form 10-Q as well as other public reports filed with the SEC.
Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures such as non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. For a complete reconciliation with GAAP and the definition of the non-GAAP reconciling items, please see our Q2 earnings press release in addition to presentation summarizing our quarterly results and more details on non-GAAP measures as posted on our website in advance of this call at www.indie.inc.
I'll now turn the call over to Donald.
Thanks, Ashish, and welcome, everyone. I'm very pleased to report that indie delivered a quarter of solid growth and performance with revenue of $64 million, up 24% year-over-year and above the midpoint of our guidance. Before turning to our business achievements, let me provide some context on the market environment. Overall, the automotive semiconductor market continues to recover steadily, driven by improving vehicle production and sustained demand for electric vehicles. China continues to be a leader in the automotive ecosystem, fueled by strong domestic demand and the growing presence of China vehicle brands in global markets. On a regional basis, China remained indie's strongest end market, followed by the U.S. and Europe.
Outside of automotive, the emergence of physical AI and robotics is expanding the market opportunity for our high-performance SoCs as these applications require higher levels of processing, environmental sensing and real-time intelligence. These favorable market dynamics are reflected in our second quarter results, and we believe will intensify over the long run.
Let me now turn to our recent business progress and key achievements during the past quarter. I'm excited to share that our 77 gigahertz radar chipset solution is gaining outsized traction through the deployment of our Tier 1 partner's Gen 8 radar product, with new wins soon expected with leading OEMs in North America and China, continuing to underline the leadership position that our radar technology enables. You may recall that on our last earnings call, we shared that indie was awarded an initial $25 million production order for our radar chipset. And since then, a design win was announced with a leading Tier 1 supplier supporting Volvo. These achievements highlight the continued market adoption of our radar solution and the increasing pace of customer engagement as we ramp production volumes. This partner is important for indie and one through which we are actively looking to expand our success into adjacent physical AI markets.
As a reminder, radar is now a foundational sensor within automotive with use cases across ADAS, autonomous driving, self-parking, in-cabin monitoring and other emerging functions such as automatic door opening and road surface monitoring. Radar represents significant growth for indie with most implementations averaging 4 to 5 radars per car with opportunities for higher deployment numbers as application adoption continues.
Our solution is enabling for all these types of systems as it offers superior resolution, longer detection range and enhanced object detection and classification across a wide range of weather and lighting conditions, all at a price point to enable the complete automotive spectrum from high-end fully autonomous vehicles to $20,000 entry-level cars. Industry forecasts underscore this momentum with key market research projecting the global automotive radar market to grow at an 18% CAGR through 2032, representing one of the fastest-growing segments within ADAS and vehicle sensing ecosystem.
According to Yole Group by 2030, they expect up to 5 radar configurations per vehicle to become standard globally, driven by NCAP requirements, regional regulation and OEM differentiation strategies. And we are not standing still. As the sole supplier of radar chips in the 120 gigahertz frequency band, we are now seeing applications evolve due to even greater performance and lower cost point that we can provide by using this frequency, driven by the ability to integrate antennas into the chip package. This enables new use cases, both in the car and as a key perception technology for physical AI.
The 120 gigahertz radar brings unique benefits supporting higher spatial resolution, more precise range measurements, micro movement and environmental detection, ideal for industrial, robotic and smart infrastructure applications. The 120 gigahertz solution has been successfully evaluated by several Tier 1s and OEMs across a wide range of physical AI applications.
At the same time, our Photonics business is accelerating and becoming a core pillar of our product portfolio with its revenue stream increasing solidly. Quantum is one of the fastest-growing areas within Photonics. At less than $1 billion in 2025, the quantum photonics market is expected to exceed $14 billion, growing at a CAGR of 34% through 2035 according to SNS Insider. In fact, we achieved a record quarter for Quantum bookings while continuing to receive recurring orders for our LXM lasers used in quantum key distribution applications. Recent showcasing of our LXM and DFB laser portfolio have opened many new opportunities with new and current customers.
indie is gaining meaningful traction through several customer-funded development programs, including one from a leading quantum customer and an additional project involving 2 Japanese companies. These engagements are particularly important because they highlight the differentiation of our photonic light source platform, allowing us to advance innovation and position us well for future production revenue as quantum applications move towards commercialization.
Beyond Quantum, demand for our photonics portfolio continued to strengthen. We delivered a significant increase in sales bookings, reflecting growing customer demand and confidence in our technology. We also saw increased demand for our optical fiber components driven by the expanding adoption of AI and security solutions, creating demand for enterprise data infrastructure, which enables organizations to harness data securely, efficiently and at scale. Taken together, these results demonstrate the demand for our photonic solutions and reinforce our confidence in the long-term growth opportunities ahead.
Moving to our Vision portfolio. Our latest addition is the iND881, an Edge AI SoC engineered for low power consumption and real-time responsiveness, delivering capabilities purpose-built for demanding Edge perception tasks. Building on the success of our flagship iND880, the iND881 not only delivers the image processing excellence of its predecessor, but also incorporates a powerful heterogeneous AI engine, further expanding functionality not only for our automotive core business, but also for industrial and consumer applications such as smart cameras for AMRs and humanoids as well as high-speed smart industrial cameras that require real-time processing and low latency capabilities.
In the recent AutoSens and InCabin USA event in Detroit, we showcased the strong engagement and customer acclaim, an industry-first solution that combines DMS, OMS and emitter functionality within a single mirror unit. Powered by our iND881 SoC, the platform sets a new standard for integration and system efficiency. No other competing SoC on the market today can deliver this level of functionality in a single device. This differentiation is generating great customer interest with multiple design engagements currently underway with leading OEMs and Tier 1 suppliers.
Our vision processing solutions are becoming the preferred industry platform for e-mirror solutions, further establishing indie as a leader in this space as we continue to secure new design wins with major automotive manufacturers and Tier 1 suppliers. With surging DRAM prices, we have capitalized on the opportunity to approach new and existing customers with our cost-optimized iND880 DRAMless architecture. By eliminating the need for external memory, the iND880 helps customers navigate any DRAM supply constraints. In many cases, our customers are unable to source memory at all and using the 880 allows them to alleviate line-down situations.
Our iND880 vision processor continues to deliver success for customers, having secured several new design wins with leading Chinese OEMs in addition to Cadillac with a wide range of vehicle classes ranging from large SUVs, sedans and electric SUVs. With its ability to enable advanced camera and vision processing for ADAS applications, the iND880 remains extremely attractive to our customer base is being evaluated across multiple vehicle programs, setting up a healthy opportunity pipeline. The iND88X family is also gaining increased traction with many physical AI customers with China providing a large number of design wins.
Two of our key wins are with leading humanoid robot manufacturers, Unitree and Agibot, which according to Omdia Research, each shipped more than 5,000 robots in 2025. The success of our emotion3D acquisition underscores the value of our hardware plus software strategy, which is now beginning to deliver recurring royalties to our revenue stream. By bringing together emotion3D's proven AI vision algorithms and our highly integrated automotive SoCs, we have established a differentiated one-stop shop platform for advanced in-cabin sensing that extends well beyond silicon alone.
Our traction within in-cabin perception and driver and occupant monitoring is now further underpinned by the field-proven combination of indie's emotion3D software and vision processing SoCs, providing a pre-integrated DMS/OMS platform that is an attractive solution for customers looking to accelerate their time to market and reduce development risk. By offering our customers software hardware or a combination of both in a pre-integrated perception stack, we also provide ultimate flexibility in design approach.
In recognition of our emotion3D software capabilities, we recently received the Supplier Excellence Award from Mahindra in their XEV 9S program. Through deep collaboration between Mahindra and our software team, we delivered AI-powered in-cabin software that enhance the safety, comfort and user experience, bringing advanced in-cabin intelligence to market.
Last quarter, we announced that indie had entered into a definitive agreement to acquire the CMOS image sensor Group from ams OSRAM AG. Imaging is a key component of sensor-rich platforms with high-performance visual applications such as humanoids, cobots and industrial automation. By leveraging these intelligent and high-performance sensors, we continue to build our foundational strategy to support rapid growth in the emerging physical AI market. Our transaction remains under review by regulatory authorities, and we anticipate closure prior to year-end.
Turning to the previously announced potential divestiture of our equity interest in Wuxi indie Micro. While the exact timing of closing remains subject to the completion of its regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates.
With that, I'll turn the call over to Naixi to walk through our financial results.
Thank you, Donald, and good afternoon, everyone. Indie's second quarter revenue was $64 million, exceeding the midpoint of our outlook by $2 million, representing an increase of 24% compared to the prior year period. Revenue from our core business was approximately $36 million, a sequential growth of over 5%, reflecting the continued momentum in our ADAS portfolio, while revenue from our Wuxi subsidiary was $28 million. Non-GAAP operating expenses during the quarter totaled $37.9 million, consistent with our outlook. As a result, our second quarter non-GAAP operating loss was $8.9 million compared to a loss of $14.5 million in the comparable period in 2025, demonstrating our continued progress towards achieving profitability. With net interest expense of $2.8 million, our net loss was $11.7 million, and the loss per share was $0.05 on a base of 227.6 million shares, consistent with our guidance last quarter. Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures.
Turning to the balance sheet. We exited the quarter with total cash and cash equivalents, including restricted cash of $149 million, a net decrease of $35.7 million sequentially. This decline was primarily driven by our non-GAAP operating loss with additional cash used to build inventory in preparation for upcoming demand, increasing accounts receivable in line with our revenue growth and ongoing CapEx investment.
Moving to our outlook for the third quarter of 2026. We expect to deliver total revenues between $67 million to $73 million. At the midpoint of this range, we anticipate our core business to reach approximately $40 million and our Wuxi subsidiary to contribute roughly $30 million in the third quarter. We expect to continue to improve our non-GAAP operating expenses to $37 million for Q3, down from approximately $38 million in Q2. Coupled with expected net interest expense of approximately $3.2 million and no tax expenses, we expect our net loss per share to decrease to approximately $0.04, assuming the midpoint of revenue range and the base of 230 million shares. In summary, our second quarter results reflect broad-based momentum across radar, vision and photonics, and we remain focused on delivering continued growth.
With that, I'll turn the call back to Donald for closing remarks.
Thank you, Naixi, indie's business remains solid as evidenced by our strong second quarter results with accelerating top line growth heading into the third quarter. Our radar and vision programs continue to gain traction with leading OEMs and Tier 1 partners, and our expansion into Quantum and Physical AI is opening new avenues for outsized growth. With the pending CMOS image sensor acquisition further strengthening our portfolio, indie's technology leadership and expanding product breadth is positioning us to capitalize on these emerging opportunities. We believe indie offers one of the broadest and most differentiated product portfolios in the industry to meet the diverse needs of these markets. We are confident in our business as our radar and vision design wins continue to ramp. That concludes our prepared remarks. Operator, please open the line for questions.
[Operator Instructions] And we'll hear from Craig Ellis with B. Riley Securities.
2. Question Answer
Donald, congratulations on the revenue momentum at midyear. I wanted to follow up on the Volvo win. Can you help us understand the timing with which that converts to revenue in its size? And on the subject of radar, how are we tracking versus what I think has been an expectation for around $35 million to $50 million in revenue this year for that product?
So I mean, we won't break down exact details of individual design wins for each customer. But that being said, Volvo has some significant volume. It has a high penetration rate as it's basically a luxury car manufacturer, so pretty much all of their models will feature this technology. So it's a very decent-sized design win for us. It's far from our only design win. And although it is the one that is the most public at the moment. In terms of where we see ourselves going for the rest of the year, obviously, radar is still going to be a big driver for all of our growth through '26, '27 and '28 and '29, in fact. So it will be a big portion of the growth perspective that we have in the outlook.
That's great. And then the follow-up relates to the DRAMless product, the iND880. There's been a lot of reporting out of Asia and China within the last 3 months that the manufacturing situation is getting even more painful than it was when you spoke to us 3 months ago about the cost of DRAM and its availability. So can you help us understand the degree to which that's converting to revenue this year or the extent to which and the extent to which it's giving you pipeline visibility for the coming years?
Yes. I mean it's a chunk of the growth that we see. It has come to us very swiftly because of the expediency and the nature of the situation. People have to ship somehow, and that means that regular design cycles go out the window. So we have seen things convert very quickly within a few weeks or a quarter at max. And yes, that's driving some pretty significant good news for us at the moment in a few markets, not only automotive, but also in the physical AI, which also is kind of a surprising and very nice upside for us that these products can be used in the other applications.
Next, we'll move to Cody Acree with Benchmark StoneX.
Congrats on the progress. Donald, maybe just following up on Craig's question on radar and if you can just include vision, can you help frame your ramp expectation, maybe the slope or scale of the ramp that you envision over the next few quarters for both those programs?
Yes. I mean they're both going to ramp very steeply. We should see the slope of the ramp accelerating from where we are right now. You should see that, of course, already in the guide for Q3. We are super excited about it on both fronts. We are seeing so much traction for both the product families, bringing us into new OEMs and even into new markets in some cases. So it's super exciting. We have applications, as I mentioned before, outside of automotive as well, in humanoid robotics and also even in drones, we're seeing our technologies being used. So it's super exciting.
And then maybe can you just help frame or give any details to the size of your current non-auto revenue in Physical AI, Quantum, photonics, what have you, what are the details you can provide? And then maybe how significant do you expect that non-auto business to grow to either the end of this year or end of next would help.
Well, we don't really subsegment, and it's still, let's say, nascent. I'd say perhaps the physical AI market is a little near. We quoted some numbers for the leading customers of ours who manufactured thousands of robots in the last sort of 12 months. And we are seeing predictions of these markets going into multiple millions across many applications in robotics, not just humanoids, but AMRs also. Quantum is a little harder to call, but I would say just at this very moment, there's a lot of buzz about it. Some of the guys out there are beginning to deploy qubit numbers in above 100,000 units. And it is getting close to the point where Quantum Advantage should reach a tipping point. So I mean it's really hard to put a number on it, but I mean, it is an exciting market. It's an exciting time to be alive and see our products going into these amazing new machines.
Next, we'll hear from Anthony Stoss with Craig-Hallum.
I just wanted to also follow up on the iND880, last quarter, you mentioned that you thought it would be more revenues potentially in 2026 than the radar. If you can shed more detail if it's going into low-end cars. I know it's heavily exposed to the China market. Just your sense on the building of the number of models per quarter and what you think the kind of the steepness of the ramp looks like in Q4? And then I had a follow-up.
Yes. I mean we are a little more indexed to China for this particular application, but we do now have wins with North American Tier 1s who are very significant volume in this application space. We're seeing application being deployed in low mid-tier and above and probably dozens of models by now.
Okay. And shifting gears, topic of gross margins. In the past, you've talked about trying to get to or expecting to get to 55% plus gross margins down the road. And I think not too long ago, you were hoping for 50% gross margins late this year. Where do you think that now shakes out? Do you still have hopes for a 50% gross margin quarter in Q4?
We don't typically guide gross margin, but we -- through the divestiture of Wuxi, which I would say is potentially a drag on gross margin, we're in a good spot where we can get to our corporate goals.
And we'll move on to Jon Tanwanteng with CJS Securities.
I was wondering if you could quantify the number of wins you had in the quarter, driven solely by the DRAM shortages that are out there and kind of what -- how many engagements do you have in the pipeline? And if you could provide a little further detail what kind of average revenue those kind of engagements have on an annual basis?
Well, 880 has an ASP of around $10 and sometimes there are 1 or 2 deployed per application. It would be hard to give you an accurate number of how many design wins. It's kind of similar to the question of numbers of models that was asked just before there. So it's in the same range, dozens of design wins.
Okay. Great. And then just a question on cash flow. I know you've been building inventory for the ramp. How should we think of that burn going forward, especially in front of the growth that you're seeing?
Yes. I mean in terms of cash usage, we did invest a lot in inventory. We have some pretty steep ramps ahead of ourselves and the supply chain has been very tight. So we're very focused on that. Nominally, the cash usage should follow our net profit or loss on a quarterly non-GAAP basis. So that should give you a reasonable indication. There's some below-the-line costs, a little bit of CapEx and so forth, but that's basically what we're expecting.
Moving on, we'll hear from Natalia Winkler with UBS.
So the first one I had was on physical AI. Would it be possible for you guys to help us understand kind of the content, whether it's per robot per application? Maybe how does that compare to the automotive market? And maybe as a part of that, as you guys pursue some of those physical AI socket, like do you have to go to a different -- completely different supply chain? Or could some of your existing relationships with Tier 1s be helpful to get these design wins?
I mean taking the last one first, both are applicable. Some of the traditional Tier 1s all over the world are beginning to turn their focus a little bit towards physical AI away from automotive. And it's perhaps a more profitable market. And the -- I mean, the sort of net reasoning for that is you can consider a humanoid robot or any kind of robot as a car with legs or a car as a robot with wheels and many of the electronic implementations are applicable for both. So from our perspective, we have direct relationships with, let's say, module manufacturers, which would be analogous of Tier 1s for the Physical AI business. And we have direct relationships, obviously, with our Tier 1 customers who are, in some cases, actually already entering into certain aspects of the robotics market. So we're able to leverage both is the answer.
And then in terms of the content per robot opportunity, I guess, per device.
I mean the ASPs are typically significantly higher because the volumes are still small. So it's probably really too early to say what the dollar content for a robot could be. I mean we have applicable parts that could be used in high-end applications of a robot where they have multiple sensors ranging from vision, radar, LiDAR even. I mean -- and some of the processing that goes on the back end of that could easily be $100 per robot.
And we'll move on to Joshua Buchalter with TD Cowen.
Congrats on the results. I wanted to ask about the 880 wins in China. Any details you can provide on what types of architectures it's being integrated into? And anything you can give on the pros and cons of integrating the 880 without DRAM into a central ADAS processor? Does that make it easier, harder? I'm just curious to hear your thoughts on that.
So we get used in stand-alone systems, things like electronic mirror systems, OMS, DMS, and we also get used as a preprocessor that goes in front of maybe a central ADAS processor. So what that does is we have the ability to process video, if you like, on the fly. So we don't dump frame by frame into large external memories, which is currently where the problem is. There's a net side effect of that in the video latency in our implementation is significantly easier and it alleviates significantly the processing required for a central ADAS processor. Sometimes we just hear it from our customers that they're choking on having to process the raw video streams, and we can take that burden off them and they can go to use the processing for things that are more valuable perception and such as that. So in our opinion, certainly, it makes the implementation much easier and also in the opinions of many of the engineers at our customers.
Got it. That's really helpful. And then for my follow-up, maybe just can you help us understand what hurdles are left with the Wuxi divestiture that need to be cleared before you can complete the deal?
I mean just -- we're in the throes of regulatory still. It's like there's an ongoing dialogue. It's very constructive Q&A process. And we set the expectations that this deal would close in Q4 of this year. And I think we remain optimistic about that.
And that will conclude today's question-and-answer session. I would now like to turn the floor back to management for closing remarks.
Thanks, everybody, for attending. I hope to see a few of you at the conferences in the coming weeks and months, and see you next quarter.
Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.
Indie Semiconductor Inc - Ordinary Shares - Class A — Q2 2026 Earnings Call
Indie Semiconductor Inc - Ordinary Shares - Class A — Q1 2026 Earnings Call
1. Management Discussion
Good afternoon, and welcome to the indie Semiconductors' First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.
I will now turn the call over to Ashish Gupta, Investor Relations.
Mr. Gupta, please go ahead.
Thank you, operator. Good afternoon, and welcome to indie's First Quarter 2026 Earnings Call. Joining me today are Don McClymont, indie's CEO and Co-Founder; Naixi Wu, indie's CFO; and Mark Tyndall, EVP of Corporate Development and Investor Relations.
Don will provide opening remarks and discuss business highlights. Naixi will then provide a review of indie's Q1 results and business outlook. Please note that we'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties.
These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by our quarterly reports on Form 10-Q as well as other public reports filed with the SEC.
Finally, the results and guidance discussed today are based on consolidated nonfinancial GAAP measures such as non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. For a complete reconciliation to GAAP and definition of the non-GAAP reconciling items, please see our Q1 earnings press release in addition to a presentation summarizing our quarterly results in more details on non-GAAP measures as posted on our website in advance of this call at www.indie.inc.
I'll now turn the call over to Donald.
Thanks, Ashish, and welcome, everybody. Indie delivered a solid first quarter with revenue of $55.5 million, approximately $0.5 million above the midpoint of our guidance and up 3% year-over-year. Before turning to our business achievements, let me provide some context on the market environment.
Looking at the broader automotive semiconductor market, we see a measured recovery with channel inventories largely normalizing and demand environments characterized as cautious but improving. Underlying global vehicle production remains range-bound, while secular content drivers, including the continued transition to software-defined vehicles, expanding ADAS adoption, increasing exterior and in-cabin sensing requirements are fueling demand for semiconductor content per vehicle as was always our thesis.
This is a backdrop against which indie continues to advance our radar, vision and photonics portfolios, supporting growth that will consistently outpace the market. On a macro level, geopolitical tensions and shifting trade dynamics continue to impact the global supply chain affecting peers, customers and suppliers alike. These dynamics have contributed to elevated logistics costs and selective capacity constraints across the industry.
However, even against this backdrop, Indie is maintaining a positive trajectory, successfully managing through these challenges. indie is experiencing tremendous growth in interest and activity in quantum and robotics. We continue to forge new opportunities with some of the trendsetting emerging companies in these high-growth markets with our expanding photonics portfolio in Quantum and our vision processing and sensor ICs and embodied AI.
As noted by the International Federation of Robotics, the broader robotics market, which spans industrial robots, mobile robots, cobots, humanoids and drones is forecast to grow from approximately $88 billion in 2026 to over $218 billion by 2031, a CAGR of nearly 20%.
Within that opportunity, the Yole Group states that the global humanoid robotic market is set to increase from $600 million in 2025 to $6 billion in 2030 at a CAGR of 56% and then accelerate to $51 billion by 2035, a CAGR of 55% between 2030 and 2035.
Let me now turn to our recent business progress and key achievements during the past quarter. I'm extremely pleased to share that our Tier 1 partner, who recently launched their Gen 8 radar solution built on indie's 77 gigahertz radar technology, representing the first 4TX/8RX radar available in the industry, has committed to a new production order of $25 million, driven by support for 2 key OEMs, one European and one Asian.
This milestone is particularly rewarding as this order confirms previously communicated production expectations and multi-OEM acceptance following successful design, testing and qualification over the past many months.
We are now positioned to ramp production efficiently, having secured additional back end and test capacity across multiple suppliers in preparation for the ramp ahead. In parallel, we are advancing our second source foundry strategy to support the manufacturing flexibility and in some cases, to support a no China, no Taiwan requirement demanded by certain industry players.
Moving to our Vision portfolio. The iND880 vision processor has begun production, supporting eMirror camera functionality at NIO, a premium Chinese EV OEM. This program moved from design to production in approximately 6 months, a testament to our team's technical readiness, execution discipline and close collaboration with customers and partners. And further reinforces our commitment to reducing time to market and accelerating deployment.
In addition, the camera mirror system when we referenced last quarter with the largest Chinese OEM is now entering volume production. Additionally, at the prestigious Beijing Auto Show, several exciting new models featured indie technology, including the Buick GL8, the AITO M9, the NIO ES9 and the Cadillac LYRIQ to name a few.
These models are now entering the production phase in 2026. A defining advantage of the iND880 and increasingly a focal point in our customer engagements is a DRAMless architecture. By eliminating the need for external memory, the iND880 helps customers navigate any DRAM supply constraints. In many cases, our customers are unable to source memory at all and using the 880 allows them to alleviate line-down situations.
If DRAM can be sourced, it comes at a price premium measured in multiples rather than percentages. 880, therefore, massively reduces overall bill of materials in addition to lowering system resource demands on downstream AI processors and improving image signal processing throughput and real-time latency.
What was originally an attractive design point for China OEMs has rapidly broadened into a global value proposition. We are now seeing accelerating engagement and likely commitments from U.S. customers often on compressed time lines as the architectural benefits of going memory less are recognized across the industry.
We expect this to remain a meaningful growth driver for our vision portfolio through 2026 and beyond. By way of update on our perception software portfolio, following the integration of emotion 3D, we recently announced a strategic partnership with Mahindra, a leading Indian OEM to supply our OMS/DMS perception suite for the electric Origin SUV series.
Additionally, we expect commitments from U.S.-based customers in the near future to add to our momentum. Our photonics portfolio continues to gain meaningful traction in the rapidly expanding quantum technology market. During the quarter, we announced the world's first commercially available ultraviolet distributed feedback or DFB laser at 399 nanometers, a wavelength precisely matched to atomic cooling transition of ytterbium, the element used in the neutral atom quantum computing architecture that leads the industry today in physical qubit count.
Our broader visible DFB laser family now spans wavelengths from the near ultraviolet to green, addressing the cooling, trapping and excitation requirements across the four atomic species that account for the substantial majority of cold atom quantum computing development.
We are actively engaged with several of the leading quantum computing companies on next-generation laser source requirements, and we believe our differentiated photonics platform positions indie as a key enabling supplier to the quantum ecosystem as it scales over the coming decade.
In the LiDAR space, we are finally beginning to see the adoption of FMCW technology into multiple markets. Our integration partners are completing designs, which incorporate indie's iND83301 SoC into their products, replacing FPGA-based processing and delivering an 80% reduction in power consumption, a 40% reduction in solution size and a market-making cost position. We are seeing traction not only from the automotive industry, but from multiple areas in embodied AI.
A key producer of AMR or autonomous mobile robots for warehouse management is engaged. Generally speaking, the embodied AI market is generating demand for many of our sensing products centered around vision, but including LiDAR and radar with applications also ranging from AMR through humanoids to drones. Our sensing technologies allow robots to better understand and navigate unpredictable environments. And enable the transition from more traditional industrial robot implementations to more advanced truly autonomous units.
The pace of engagement is electrifying. We expect that it will begin to lead the automotive market in driving new technology as opposed to leveraging existing technologies.
With that, I will turn the call over to Naixi to walk through our financial results.
Thank you, Donald, and good afternoon, everyone. Indie's first quarter revenue was $55.5 million, exceeding the midpoint of our outlook by $0.5 million, representing an increase of approximately 3% compared to the prior year period.
Revenue from our core business was approximately $34.1 million, a sequential growth of over 20%, reflecting the continued momentum in our core ADAS portfolio. Revenue from WuXi was approximately $21.4 million, consistent with our expectations. Non-GAAP operating expenses during the quarter totaled $37.3 million, consistent with our outlook. As a result, our first quarter non-GAAP operating loss was $11.1 million compared to $15.1 million in the comparable period in 2025, demonstrating our continued progress towards achieving profitability.
With net interest expense of $2.8 million, our net loss was $13.9 million and loss per share was $0.06 on a base of 223 million shares, consistent with our guidance last quarter. Please refer to the presentation located on our website for a more detailed breakdown of our non-GAAP measures.
Turning to the balance sheet. During the quarter, we issued a 4% convertible senior notes due 2031 with an aggregate principal amount of $170.5 million or a net proceeds of approximately $165 million after fees and operating costs. We used these net proceeds to repurchase a significant portion of our 2027 notes for a total of approximately $108 million.
The remaining proceeds are retained for working capital and general corporate purposes. This refinancing extends our debt maturity profile by approximately 4 years, lowers our coupon and enhances our financial flexibility to support our growth strategy. As a result of the debt issuance and repayment activity I just discussed, along with routine operating activities, we exited the quarter with total cash and cash equivalents, including restricted cash of $184.7 million, a net increase of $29 million from the fourth quarter of 2025.
Turning to the previously announced potential divestiture of our equity interest in Wuxi indie Micro. As you may recall, we entered into the definitive agreement in October 2025 to sell our entire interest in Wuxi to UFA for approximately $135 million, payable net of taxes and fees in cash at closing.
Following UFA's shareholder approval in November 2025, the transaction commenced its required regulatory approval process in China, including review by the Shenzhen Stock Exchange and the CSRC, and has continued to advance since then. While the exact timing of closing remains subject to the completion of that regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates.
Moving to our outlook for the second quarter of 2026. We expect to deliver total revenue between $59 million to $65 million with $62 million at the midpoint. We anticipate a revenue contribution from Wuxi in the second quarter of $25 million with our core business contributing approximately $37 million at the midpoint, representing approximately an 8% growth sequentially or about 20% year-over-year growth in our core ADAS, photonics and adjacent business.
We expect our non-GAAP operating expenses to be $38 million for Q2, relatively flat compared to Q1. Below the line, we expect net interest expense of approximately $3.1 million with no tax expenses. Assuming the midpoint of the revenue range and with a base of 227 million shares, we expect to improve our net loss per share to $0.05. From a financial perspective, our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indeed is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026.
With that, I'll turn the call back to Donald for closing remarks.
Thank you, Naixi. indie's business remains very solid as evidenced by strong first quarter results and positive outlook for the second quarter. Radar and vision programs remain firmly on track, highlighted by success of multiple OEMs. With the addition of Quantum and embodied AI, indie's technology leadership and expanding product portfolio positions us extremely well to drive growth.
We believe no other semiconductor company offers a product portfolio as well suited as indie's to meet the diverse needs of these emerging markets. We are confident in our business as our radar and vision design wins continue to ramp. That concludes our prepared remarks.
Operator, please open the line for questions.
[Operator Instructions] And we'll take our first question from Cody Acree with Benchmark StoneX.
2. Question Answer
Congrats on the progress. Donald, maybe we can start with your $25 million order. Can you maybe just walk us through your expected delivery schedule? How does that pace through the rest of the year?
Well, I mean, first of all, we are super excited to receive the order, especially as it came in sort of one big discrete chunk, and it underlines the commitment of our Tier 1 customer to the end customers that they have committed to them at this point. So we're super excited about that.
I mean, obviously, we knew about the situation ahead of time, but the fact that we were allowed to publicly discuss this and highlight this fact was super exciting for us. And hopefully, that gives an indication to the market that the impending reality of what we're doing here with this huge project is coming to fruition.
In terms of how we schedule it out, I mean, it's not the only order we have, and it's not the only order that we'll get. And it is sort of, let's say, tied to a couple of key customers to make sure the thinking behind it is really to make sure that we can secure capacity and all that stuff and having the orders on the books is hugely advantageous and helpful in that respect. And we talked about that in the prepared remarks that it was one of the tools that we used to go do that.
So we don't expect that we'll give details of when this particular order is running out. But it's going to be the first of many as we drive towards maximizing the revenue that we get out of this project.
Are those wafers already in the path of the work in process? And can you just talk about delivery schedules for revenue ramp?
I mean we have a bunch of wafers in the line, of course. We've talked about that in the past as well, and we have secured capacity for those guys too. We do expect that it will contribute meaningfully in this year. And obviously, we're just reconfirming that really.
And you talked about wafer packaging, I mean, back-end packaging test and substrate availability and then your diversification of your foundry strategy. Can you just update us on the progress, what's left to be done? And is that now substantially behind you?
I mean the market is very tight right now because of the demand from AI. It's not going to be something that we can just leave to run automatically. It's going to be something that we're going to have to have a watchful eye over for the foreseeable future. But I think we're comfortable now with the diversification of the supplier base that we have and with our ability to, therefore, deliver to that.
We'll take our next question from Suji Desilva with ROTH Capital.
Congratulations on the initial PO, Donald. Can you maybe give us some sense of the initial customer -- end customers of your customer and what the auto models they're using this for? Is it premium mainstream, L2+ or advanced L3, L4? Any color that you'd have about where this is landing would be helpful.
Well, I mean, it's largely mainstream. We're supplying a number of radars per vehicle in most cases. The kind of vehicles that we're supplying to range from low to mid-tier through high tier or even commercial vehicles. And we'll see our products adoption being really deep and large in the penetration of it being very widespread.
We -- we're not certainly married to Level 3, Level 4 or anything really higher end. These are products that will -- you'll find on something like a Volkswagen Golf or Toyota Corolla. So it will be deeply penetrated.
That's very helpful. And can you help us understand how this Tier 1 layers in beyond the initial 2 customers to this PO? Is there -- are there more customers behind it? Or will these 2 customers first ramp initially?
How will that progress in your pipeline?
No. I mean there are a bunch of customers expected to ramp at varying times through all jurisdictions in the field, ranging from China through Europe, through U.S. So this is just specifically that this purchase order really was driven to provide a commitment to the 2 OEMs that we talked about in the script. It's not -- by far -- it's far from limited to those two.
We'll take our next question from Anthony Stoss with Craig-Hallum.
Pretty close on the pronunciation. Donald, I wanted to hone in on the iND880. Can you maybe share a range of the pipeline or the opportunity, the design wins you have? And then I'd love to hear if you think the iND880 solution might generate more revenue for you than Radar in 2026?
It's -- yes, I mean, we've been super surprised and excited by the resonance of this. I mean we knew the commercial value of it, but actually seeing it and feeling it took a little longer to get to some of the customers who are a little more conservative and maybe believe that they would be able to source what they needed in memory and of course, turned out not to be the case.
I mean we're seeing pipeline of tens of millions of dollars per year in annual revenue. And it is moving very, very fast indeed because of just the needs must. I mean the memories are hard to source. And if you can get them, they're going for 2, 3, 4x the normal price. So yes, it is maybe even possible that it might exceed radar in this year.
Got it. And then in your prepared remarks and in the press release, you talked about drones. Would the same iND880 be going into that? Or what kind of solutions from indie would be going into a lot of these drones that you're talking about?
I mean we have a bunch of activities ongoing. 880 is one of the products that are being looked at right now. There's a derivative of it, which is also able to have some other functionality, including an AI processor, which we've talked about briefly in the past that may also get used.
They are beginning to look at LiDAR processor and even through our automotive Tier 1 customer, we're seeing demand for the radars going on these things, too. So there's a very high level of content. The market is moving extremely quickly and the dollar value of ASPs are good.
We'll take our next question from Jon Tanwanteng with CJS Securities.
This is Will on for John. Last quarter, you had some headwinds in the Wuxi business. Can you just talk more about the underlying trends there and how they're developing?
Yes. I mean there were some headwinds in the China market, particularly at the lower end of the e-vehicle market, really driven by a change in the subsidy policy of the Chinese government, which we saw hit through Q1. And as we highlighted in last quarter's earnings and we reiterated here, we are expecting a good bit of a bounce back in the next quarter. So we believe that those issues are resolving. Generally speaking, in the China market, we see some unit headwinds but the content per vehicle is increasing significantly and so we believe that's offsetting and we are seeing that in the strength, particularly of our vision portfolio in China at the moment.
Thank you. There are no further questions on the line at this time. I'll turn the meeting back over to Donald.
Well thanks everybody. Thanks for your time and looking forward to seeing you at the investor conferences over the course of the quarter.
Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.
Indie Semiconductor Inc - Ordinary Shares - Class A — Q1 2026 Earnings Call
Indie Semiconductor Inc - Ordinary Shares - Class A — Q4 2025 Earnings Call
1. Management Discussion
Good afternoon, and welcome to indie Semiconductor's Fourth Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.
Thank you, operator. Good afternoon, and welcome to indie Semiconductor's Fourth Quarter 2025 Earnings Call. Joining me today are Don McClymont, indie's CEO and Co-Founder; Naixi Wu, indie's CFO; and Mark Tyndall, EVP of Corporate Development and Investor Relations. Don will provide opening remarks and discuss business highlights. Naixi will then provide a review of indie's Q4 results and business outlook.
Please note that we'll be making forward-looking statements based on our current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For material risks and other important factors that could affect our financial results, please review our risk factors and annual report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by our quarterly reports on Form 10-Q as well as other public reports filed with the SEC.
Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures such as non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. For a complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q4 earnings press release in addition to a presentation summarizing our quarterly results and more details on our non-GAAP measures as posted on our website in advance of this call at www.indie.inc.
I'll now turn the call over to Donald.
Thanks, Ashish, and welcome, everybody. indie delivered a solid fourth quarter with revenue of $58 million, exceeding the midpoint of our outlook by $1 million and up 8% sequentially. Let me provide some context on the market environment before turning to our business achievements.
First, on our markets, the automotive industry is entering a pivotal new phase as ADAS, or advanced driver assistance systems, and automated driving and safety functionality are rapidly maturing beyond optional or premium features and into standardization at L2 and above. OEMs across all vehicle classes are recognizing that consumers expect a baseline of active safety features, including lane assist, automatic emergency braking, blind spot detection and collision warnings. These trends reveal a market undergoing structural transformation where software-defined intelligence, regulatory readiness and scalable sensor technology are reshaping the competitive landscape. This continues to present a significant opportunity for indie to capitalize on by leveraging its technology investments for the readiness of these mass market ADAS segments.
Additionally, the humanoid robotics market is rapidly transitioning from research labs to industrial and real-life applications. This creates exciting opportunities that we're actively pursuing today, and we plan to expand our activities here going forward. Our ADAS and automotive technologies align perfectly with humanoid sensing requirements by providing the robot eyes and ears. To that end, we are already seeing strong adoption of our radar, vision and even interface solutions by industry leaders, both in the U.S. and China. For example, our vision products have been deployed by companies, including Figure AI and Unitree amongst others. Powered by breakthrough advances in embodied AI, evolving workforce needs and decreasing manufacturing costs through shared automotive components, this dynamic industry is accelerating towards becoming a major global economic driver by the 2030s.
Let me now turn to our recent business progress and key achievements during the past quarter. Beginning with radar, our Tier 1 partner, who launched their Gen 8 77-gigahertz radar solution in Q4, is rapidly gaining strong commercial traction with even more global OEMs, including car manufacturers from Northern and Central Europe, North America, Japan, China and India with models ranging from entry-level through mid-tier high-end passenger cars and all the way to high-value commercial vehicles. The indie-based solution delivers far superior performance and cost basis compared to competing and previous generation products, additionally earning a claim at CES this January.
We began initial shipments to our Tier 1 partner in December as planned and are scaling production to fulfill the massive opportunity estimated at well above 50 million units annual demand once we are beyond the ramp-up phase. To support this ramp and mitigate allocation issues, we're expanding our production capabilities, including porting designs to second source foundries here in the U.S., satisfying local supply sourcing demands. We are also securing additional back end and test capacity at multiple suppliers to be prepared for the ramp. With these measures in place, indie will be well positioned to fulfill the growing demand.
Looking ahead, we are now in the midst of the definition of our next-generation radar platforms, which will deliver further competitive advantage in performance, cost and functionality significantly beyond current levels. Overall, I'm extremely pleased with the progress of the current generation radar rollout and expect momentum to build through '26 and beyond.
Within our vision portfolio, we see continued momentum with design wins for our industry-leading image signal processor SoCs, including our iND880 and our AI-based edge processor. Our DRAM-less architecture is creating new opportunities for us, as it allows our customers to overcome the current memory supply issues while reducing the bill of materials and lowering system resource demands on AI processors. With this technology, we have secured new design wins in e-mirror and camera mirror systems at leading Tier 1s across passenger vehicles and trucks with production beginning in late '26 and continuing for several years.
Within the China market, we have recently secured a design win with the leading electric vehicle manufacturer with our iND880 for our camera mirror system, which is expected to start ramping towards the middle of 2026. This is a very critical design win for indie as we believe it will open more strategic opportunities going forward for our ADAS portfolio at this key customer.
In Q4, indie completed the integration of emotion3D, creating a powerful ecosystem that unites AI-based perception algorithms with our hardware SoC capabilities, offering flexible stand-alone or integrated solutions within the cabin for driver and occupancy monitoring. Additionally, we have recently announced a strategic partnership with Mahindra, a leading Indian passenger and commercial vehicle manufacturer for the supply of our perception software for their Electric Origin SUV series, including XEV 93 and BE 6.
From our photonics business unit, we were awarded a design win, including NRE for a distributed feedback laser for a LiDAR application outside of the automotive market, potentially opening new opportunities in diverse market applications where high-precision, high-speed 3D spatial information for real-time detection is critical. In addition, we have secured our largest booking of LXM lasers to date, supporting key customers in quantum communications and sensing as our success continues in this adjacent quantum market.
Within our power group, the Qi 2.0 wireless charging platform production with Ford remains on track for the first half of 2026 with adoption from multiple subsequent OEMs expected to follow. indie is already gaining significant traction for our Qi 2.2 25-watt wireless charging solution, which offers seamless scalability via firmware upgrade. Moving to the Qi 2.2 solution enables faster power delivery, stronger magnetic alignment and broader device interoperability without replacing hardware, making this a highly attractive solution for customers and partners. This product is already demonstrating strength as evidenced by a leading Tier 1 wireless charging partner upscaling to our Qi 2.2 platform with another North American OEM.
Recall on our previous call, we highlighted the shortage of package substrates prevalent in the industry caused by ever-increasing demand for AI chips. We are pleased to report we have made meaningful progress by qualifying second source package and substrate vendors. However, we expect the broader supply environment to remain constrained, and we will need to remain laser focused to manage the situation through 2026.
I will now turn the call over to Naixi for a review of our Q4 results and business outlook.
Thank you, Donald, and good afternoon, everyone. indie's fourth quarter revenue was $58 million, exceeding the midpoint of our outlook by $1 million, representing sequential growth of approximately 8% and flat compared to the prior year period, bringing our full year revenue to $217.4 million. The non-GAAP operating expenses during the quarter totaled $36.8 million, consistent with our outlook, thereby achieving our goal of $8 million to $10 million savings. As a result, our fourth quarter non-GAAP operating loss was $10.1 million compared to $11.3 million last quarter and $14.2 million a year ago, demonstrating our continued progress towards achieving profitability.
With net interest expense of $2.3 million, our net loss was $12.4 million and loss per share was $0.07 on a base of 220.4 million shares. Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures.
Turning to the balance sheet. We exited the quarter with total cash and cash equivalents, including restricted cash of $155.7 million, a $15.5 million decrease versus the third quarter, of which $6.8 million was used for our semi-annual interest payment on the outstanding convertible notes.
As you may recall, in the fourth quarter, we announced that indie had entered into a definitive agreement with United Faith Auto-Engineering Co., Ltd., UFA, a publicly listed company in China, to sell our entire outstanding equity interest in Wuxi indie Micro for gross proceeds of approximately $135 million, payable in cash upon closing, net of applicable taxes and fees. The transaction continues to progress towards closing.
As part of the customary closing conditions, UFA obtained its requisite shareholder approval in late 2025. The transaction remains subject to regulatory approval in China, including both Shenzhen Stock Exchange and CSRC. While the timing of the closing remains uncertain, we continue to be optimistic that it will occur by the late 2026 time line we previously communicated.
Moving to our outlook for the first quarter of 2026. We expect to deliver total revenues between $52 million to $58 million with $55 million at the midpoint. We anticipate a decline in first quarter revenue from Wuxi to $21 million due to a lower demand from reduced EV subsidies and the Chinese New Year shutdown. However, we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint.
We expect our non-GAAP operating expenses to be $37 million for Q1, relatively flat to Q4 2025. Assuming a net interest expense of approximately $2.6 million with no tax expenses, we expect a $0.07 net loss per share based on 223 million shares at the midpoint of the revenue range.
From a financial perspective, with our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indie is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026.
With that, I will turn the call back to Donald for closing remarks.
Thank you, Naixi. Our core business remains solid as evidenced by strong fourth quarter results. Radar and vision programs remain firmly on track, highlighted by our Tier 1 partners' recent release of their advanced Gen 8 radar product, growing commercial adoption and our first radar chipset shipments late in the quarter. With the addition of high-growth adjacent markets such as quantum sensing and humanoid robotics, indie's technology leadership and expanding product portfolio positions us well to drive growth. We believe no other semiconductor company offers a product portfolio as well suited as indie's to meet the diverse sensing needs of these emerging markets.
That concludes our prepared remarks. Operator, please open the line for questions.
[Operator Instructions] Our first question is from Cody Acree with The Benchmark Company.
2. Question Answer
Congrats on the progress. Naixi, just one point of clarification. Can you give me the Wuxi revenue for Q4?
Yes, it was around $29.7 million.
And could you just maybe go through the reasons again for the sequential decline? And then what do you expect that to do looking into Q2?
The decline mostly has to do with the upcoming Chinese New Year shutdown and the reduced EV subsidies that the local people are getting.
And any color on expected ramp into Q2?
I mean we do expect it to recover in Q2. As of course, you know, we're in the process of selling that business, but yes, we do expect it to bounce a little bit in Q2.
Okay. Great. And Donald, maybe can you just provide any further color on the slope of the ramp of your radar programs that you're expecting for the balance of '26?
Well, I mean, since last we talked, we've made phenomenal progress together with the customer. We see the traction through the OEMs just getting ever stronger, so we feel absolutely phenomenal about where we are with the program. In fact, we're also really beginning now the discussions on what comes next for the next generation. But I mean, the OEM traction has just been off the charts, and it gives us a good problem to solve. We need to focus now on making sure that our supply chain is robust enough to support the ramp that we expect. But we feel we're in a really good spot right now.
And just a follow-up there. The constraints that you're feeling still on substrates and packaging, what impact do you expect that to have in the first quarter?
I mean it had a little bit of a trailing impact into the first quarter. I mean we -- the product portfolio basically, in the type of products that had substrate exposure, did have some risk mitigation, so some products that we had inventory of shipped. Probably there was maybe a little bit less than $1 million of demand that is still questionable that we might get or not based on supply, but we've made some significant progress versus Q4 where it affected around $5 million in that quarter.
Our next question is from Suji Desilva with ROTH Capital Partners.
Congratulations on the progress here on the Tier 1. Donald, you've given us backlog numbers in the past. Any update there? Any new design wins to talk about? I know you have at least 2 big programs coming, but any color there would be helpful.
Yes. I mean, as you know, we only really update our strategic backlog once a year. You can see from the script that we did make some progress on the sales side and add some new discrete designs out with the larger programs. We do expect that the sell-through into the OEMs from the large radar program also will increase over time, and we've seen a lot of momentum in that during the last quarter. But no quantifiable update right now.
Okay. All right. And then aside from Wuxi in China, can you talk about the progress there in terms of design wins and traction for your products for the core part of the business?
Yes. I mean we're doing well in all regions. I mean, again, I mentioned in the script that we have exposure to OEMs based over all parts of Europe, also in Asia, China, even India actually as part of that. So I mean, we're feeling very good about where we are generally worldwide.
Our next question is from Jon Tanwanteng with CJS Securities.
This is [ Will ] on for Jon. Is there any update on the size of the opportunity within robotics and drones or in the quantum space and if or when those can become significant contributors?
Well, the robotics space is hard to call, but I mean, we are just seeing a phenomenal amount of activity in that space. And the products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications. So we are very optimistic about it. We do feel that it can be a very material market as we progress through the rest of this decade.
In terms of quantum, that's a little bit easier for us to quantify. We are beginning to make some significant traction in that space. We shipped about $1 million worth of optical products in that application in 2025, and we expect maybe around a trebling of that through 2026. So we are seeing increased momentum in that space also.
And in regards to the supply chain constraints, can you add some more color on how you're thinking about the time line to a full resolution?
I mean it's -- the tightness is really driven by the uptick in AI demand, and so we don't see that really going away anytime soon. From our perspective, just operationally, we're expanding our supply base to make sure that we have significant mitigation for all of the programs that are key to us, and we made some pretty good progress in the last 90 days to address that.
We are seeing signs that several suppliers are making investments to improve capacity, likely something that would begin to take effect in 2027. But I mean, at this point, we feel decent about where we are. We've -- as I said, we've made some good progress in bringing on new suppliers. And we hope that we can manage through this '26 year without really taking any bumps on our side while we get through to '27. But that's basically the best visibility we have right now.
Our next question is from Anthony Stoss with Craig-Hallum.
Donald, in the past, I think you talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between, I think it was $30 million to $50 million. Perhaps you can give us an update on that. And then also love to hear kind of thoughts on just OpEx for the rest of this year on a quarterly basis.
Well, I mean, in terms of the radar volume, it's still in that same ZIP code. Nothing really has changed in the short term. What we are seeing is just gathering momentum with newer OEMs, which we hadn't really anticipated would be early adopters, and it turns out that they are going in that direction.
That means that we will have like a steady and steep ramp over the course of '26, '27, '28 and '29 even as some of these design wins, of course, are for longer-term models, which are out in time. But I mean, generally speaking, the momentum has been strong behind the program. And I think you can assume on OpEx side that it's basically going to be about flat. Maybe a couple of lumps here and there as we invest in tooling, but no more than $1 million plus/minus.
Got you. And then if I could sneak in one more outside of the Wuxi Group just within your core business, what percentage of that core still remains in China?
Probably in the 25% to 30% range, perhaps. Maybe not quite as high as that anymore, actually. I'm not sure. I -- yes, it's a little bit less than that now probably.
Our next question is from Craig Ellis with B. Riley Securities.
Donald, congratulations on the 20% core business growth in the first quarter. Can you just help us understand what the top 2 or 3 drivers are to that growth? And is radar on that list? Or are we in just smaller volumes in 1Q?
I mean radar is still relatively small volume in the last quarter and this quarter. But in any design and any -- and especially in a program of this magnitude, the first products that you ship are very much the most important. It cleans the pipe and improves the existence that the designs are real and the products are working.
We have seen continued progress also in our vision chips. Basically, the drivers are coming from the ADAS side. Our iND880 processor has been super successful. And now that we're beginning to bring to market a version of that chip, which also has an AI edge processor integrated in it, we're seeing continued momentum in that space also.
And then a follow-up to the prior question just on the arc of radar through time, and it sounds like it just continues to scale from what could be $30 million to $50 million through 2029. But I think we've talked about this business being a $100 million business in the past on an annualized basis. Are you starting to get visibility on when we could get that? And would that be 2028? Or would it be potentially sooner or really when you get out to 2029?
I mean, I think, the answer to your question is, yes, we are getting continued visibility improvement in this as we progress through the whole process of deployment. I mean we're -- it's probably a little early to call exactly when -- what date that we cross $100 million. But I mean, we are feeling increasingly confident and positive about where we're going with this right now. And I mean, it's kind of driving us crazy, the amount of support work that we're having to do and the amount of supply chain expansion that we're having to do in order to prepare for it. So I mean, if that gives you an indication of where we think we are, then I hope that's sufficient.
Our next question is from Cody Acree with The Benchmark Company.
I think Cody actually already asked his question.
Yes. Yes. Actually, I just had a quick follow-up, Donald. Sorry, I was on mute. Just your comment lastly about increasing your supply side. Last quarter, you mentioned your efforts to double source for some of your customer requests. Can you just update us on the progress there? And just what are you looking forward to on spending for that?
I mean from packaging side, we enabled a new substrate supplier and also a new packaging house. So basically, now we have 4 combinations of substrate and packaging house that we can use. We do expect that we will also, for some of the very large volume programs such as the radar program, bring on second source foundries, particularly as we need to have China for China, non-China for non-China supply base in that space.
And I think -- and I mean, in answer to your question, the short term, we have had a little bit of increased OpEx, which we signaled in the last quarter in order to cover some of that, which has now run through the books. And at this point, we're basically seeing our OpEx remaining reasonably flat through '26. There may be a couple of bumps in the road as we spend on tooling, but it's -- each bump is probably, I mean, less than $1 million.
There are no further questions at this time. I would like to hand the floor back over to Donald McClymont for any closing comments.
Well, thanks, everybody, for attending, and I hope to see you at the conferences in the next few weeks.
This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
Indie Semiconductor Inc - Ordinary Shares - Class A — Q4 2025 Earnings Call
Indie Semiconductor Inc - Ordinary Shares - Class A — Q3 2025 Earnings Call
1. Management Discussion
Greetings, and welcome to indie's Q3 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Ashish Gupta, Investor Relations. Thank you. You may begin.
Thank you, operator. Good afternoon. Welcome to indie's Third Quarter 2025 Earnings Call.
Joining me today are Donald McClymont, indie's CEO and Co-Founder; Mark Tyndall, EVP of Corporate Development and Investor Relations; and Naixi Wu, indie's new CFO, whose appointment was announced earlier today. Donald will provide opening remarks and discuss business highlights. Mark will then provide a review of indie's Q3 results and Q4 outlook.
Please note that we'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by our quarterly reports on Form 10-Q as well as other public reports with the SEC.
Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures such as non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. For a complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q3 earnings press release, which was issued in advance of this call, can be found on our website at www.indie.inc.
I'll now turn the call over to Donald.
Thanks, Ashish, and welcome, everybody. Firstly, I'm very pleased to announce that Naixi Wu has been appointed Chief Financial Officer for indie effective immediately. Naixi has been with indie for the past 4.5 years and has demonstrated exceptional leadership, integrity and execution skills within our finance organization, especially during the past months in a period where we successfully executed on multiple complex transactions.
Beginning her career in PwC's assurance practice, Naixi has built an exemplary track record in finance, holding various senior leadership roles in financial and SEC reporting at CalAmp, Westfield and RealD. Indie's finance team consistently demonstrates seamless collaboration and strong performance, combining expertise and focus to achieve desired business results and goals.
Naixi's elevation to Chief Financial Officer is a natural progression in her leadership journey at indie, working alongside our capable and dedicated finance team, indie's financial foundation will continue to strengthen. During the next months, you will have the opportunity to meet Naixi at roadshows and investor events.
Let me now review our financial performance within the context of the overall automotive market before discussing indie's key business achievements. Starting with market dynamics, we see an automotive market trending slightly better than feared across almost all regions, with China representing indie's strongest performance during the quarter. Automotive market analysts are also maintaining a positive outlook for growth trends with 2026 production now expected to increase by 0.46% from 2025 levels to approximately 91 million vehicles.
This is further underpinned by the continued increase of semiconductor devices and sensor content per vehicle to support the upsurge in ADAS and automated driver safety and feature adoption, which we increasingly see across our customer base. For indie, we achieved third quarter total revenue of $53.7 million, in line with our outlook, but representing solid quarter-over-quarter performance with growth above the market. We have also just completed an annual review of our strategic backlog, which remains a very important and strong indicator for the future potential of our business looking out over the next 10 years.
Recall, last year's backlog was $7.1 billion. This year, we have expanded into several adjacent markets, including quantum compute and quantum communications and also into humanoid robotics where several of our products are relevant, particularly and initially our vision processors. We now have content at leading robotics providers, figure.ai and Unitree, who seamlessly use our automotive products for their application.
During the last 12 months, due entirely to industry turbulence, we suffered some program cancellations, particularly and although we are still heavily engaged with the customer, we made the decision to remove Ficosa business from the calculation as upheaval at the OEM end customer has made the timing of revenue realization less clear.
However, these cancellations were more than offset by new business wins that we achieved in the same period. The strategic backlog is now at $7.4 billion compared to $7.1 billion as of a year ago. However, if we exclude Wuxi, which represented $1.3 billion, the resulting strategic backlog will be $6.1 billion. The composition of our backlog has strengthened materially due to the higher gross margin product mix following the divestment of Wuxi. ADAS and optical products will drive significantly higher gross margin profile going forward.
Let me now turn to our recent business progress and key achievements. Beginning with radar, in late October, our Tier 1 radar partner, a leader in the market for whom we developed our 77 gigahertz chipset, publicly launched the next-generation Gen8 radar solution to power the future of ADAS for their global OEM customers. The Gen8 radar is their primary offering on a go-forward basis. This represents a momentous milestone in the program.
Our differentiated chipset enables the Tier 1 to deliver industry-leading performance across multiple dimensions, long-range detection beyond 300 meters with ultrafine 4D angular resolution, enhanced capability in close range scenarios for applications such as automated parking, front automatic emergency braking and significantly expanded field of view, enabling new driving scenarios like autopilot in complex urban environments.
The solution demonstrates superior object detection and classification across a broad range of parking and driving scenarios, with the Tier 1 noting a 30% performance improvement over their prior generation. Final validation in real-world environments is concluding as we prepare for production shipments. Computer vision capabilities within the automotive market continue to be a differentiator for ADAS and automated safety and a key driver for indie.
We are seeing additional penetration of our vision solutions among key customers with our industry-leading iND880 advanced camera processor. During the quarter, we secured a design win for image signal processing for multi-camera operation in a leading self-driving Robotaxi OEM in North America for deployment in 2026. Additionally, we have captured multiple new design wins with leading electric vehicle manufacturers in China, spanning multiple applications.
According to S&P Global Mobility, China's automotive market continues to lead the global market in terms of growth contribution and regional dominance. China now represents more than 1/3 of the worldwide motor vehicle production, where indie's advanced ADAS solutions are rapidly gaining adoption. From our power group, our 10-watt G2.0 wireless charging platform continues to gain broader market adoption.
Highlights include start of production scheduled at Ford for Q1 2026 on the first platform with multiple subsequent vehicles expected to follow. We secured design wins at India's largest car manufacturer initially for 3 vehicle models with additional awards also expected to be forthcoming.
In addition, we saw production start at an Indian joint venture of one of Europe's top OEMs. Looking further out and rounding out the portfolio, we are now actively promoting our G2.0 15- and 25-watt solutions, which are gaining very positive market traction.
We have also provided the first custom samples of the connectivity IC to a leading electric vehicle manufacturer in North America, where production is expected to start in the first half of 2026. Our momentum with photonics continues with several highlights, including a design win, which will include an NRE payment for our LiDAR application and a design win in the drone segment for our [ SLG ] product.
The operational alignment establishing the new photonic business unit has resulted in meaningful impact on our sales funnel. For applications outside of automotive, while the revenue is not reflected in our short-term results, we are expecting strong growth with minimal additional impact on operating expenses. Last quarter, indie announced 2 additional new distributed feedback or DFB laser products, complementing our LXM-U laser launched earlier this year.
The market response has been compelling with exceptional stability for quantum key distribution and quantum computing applications. This technology leadership in photonics generated through automotive LiDAR development is exposing indie to exciting new customers across quantum and industrial sensing markets.
I'll now turn the call over to Mark for a review of our Q3 results and Q4 outlook.
Thank you, Donald, and good afternoon, everyone. Indie's third quarter revenue was $53.7 million with non-GAAP gross margin of 49.6%, in line with our outlook. Non-GAAP operating expenses totaled $37.9 million, consistent with our outlook. As a result, our third quarter non-GAAP operating loss was $11.3 million compared to $14.5 million last quarter and $16.8 million a year ago, demonstrating our continued progress towards achieving profitability. With net interest expense of $2 million, our net loss was $13.3 million and loss per share was $0.07 on a base of 217.4 million shares.
Turning to the balance sheet. We exited the quarter with total cash, including restricted cash of $171.2 million, down $31.7 million from $202.9 million in the second quarter. The reduction in cash includes $17.7 million paid in connection with a recent M&A transaction.
Turning to the M&A transaction. On September 26, 2025, ahead of the original schedule, indie closed the acquisition of emotion3D, a company based in Vienna, Austria, specializing in advanced AI perception software algorithms for automotive in-cabin sensing and ADAS. Their expertise in software combines perfectly with our vision processor SoC portfolio, adding a software royalty to the offering.
Together, we are already engaging with major Tier 1 and OEM customers where we expect we can secure and announce the first awards in the coming months. Additionally, on October 28, we announced that Indie entered into an asset purchase agreement with United Faith Auto-Engineering, a publicly listed company in China to sell our entire outstanding equity interest in Wuxi indie micro for gross proceeds of approximately $135 million, payable in cash, net of applicable local taxes of roughly 10% upon closing.
However, I do want to set realistic expectations regarding the closing time line. The transaction is subject to customary closing conditions for a transaction of this type, including shareholder approval from United Faith and receipt of all required regulatory approvals in China, including both Shenzhen Stock Exchange and CSRC.
Based on precedent transactions and discussions with our advisers, we expect closing in late 2026, though the exact timing will be determined by the regulatory approval process. Between now and closing, once it is determined that the transaction meets the requisite criteria under applicable accounting guidance, the Wuxi operation will be reported as discontinued operations within our consolidated financial statements.
Further, the sale of Wuxi will improve our margin profile and lower our quarterly breakeven threshold while simultaneously strengthening our balance sheet. While we exit our equity position in Wuxi, China remains an important market for indie, supported by our strong independent and well-established sales channel, including local regional support.
Moving to the outlook for the fourth quarter of 2025. With ever-increasing demand in the semiconductor market driven by AI, we are beginning to see some short-term disruptions to the back end of our manufacturing flow. Specifically, there are shortages in the supply of packaged substrates, which will impact our ability to deliver the full demand for Q4. In spite of that, we expect to continue to grow and deliver revenue within the range of $54 million to $60 million or $57 million at the midpoint, with an estimated shortfall of about $5 million due to the substrate shortage.
We expect this supply issue to be resolved during Q1 2026. Based on the anticipated product mix, we expect our non-GAAP gross margin to be in the range of 47%, driven by unfavorable product mix and margin pressure on the Wuxi business. We continue the execution of certain targeted initiatives aimed at reducing operating expenses and accelerating our path to profitability.
I'm pleased to report that we remain on track. Progress in Q3 has been encouraging and is consistent with our communicated targets. We continue to expect to achieve our stated objectives within the anticipated time frame. This reflects strong execution across the organization and continued commitment to operational discipline and long-term value creation.
However, as we now move closer to the production ramp of Radar and some of our large and vision design wins, our customers are demanding an enhanced second sourcing strategy with requirements for production localization. This is requiring additional OpEx investment in the next quarters to qualify these products in fabs and test houses outside of Taiwan and China.
Taking these into account, for Q4, we now expect our non-GAAP OpEx to be $36.5 million, down $1.5 million from Q3. Below the line, we expect net interest expense of approximately $2.2 million with no tax expenses. Assuming the midpoint of the revenue ranges and with a base of 220 million shares, we expect a $0.07 net loss per share.
From a financial perspective, with our strong focus on operating expenses, further optimization of our capital structure and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indie is well positioned to continue developing differentiated products for the automotive, ADAS and adjacent industrial markets. This balanced approach will support our return to strong and profitable growth as design wins ramp as we enter 2026.
With that, I'll turn the call back to Donald for closing remarks.
Thanks, Mark. Our core business is solid and growing as evidenced by our third quarter results and positive outlook. Radar and vision programs remain on track as evidenced by our Tier 1 partners' recent release of their advanced Gen8 radar product and the fundamental trend of increasing semiconductor content in vehicles continues unabated.
With the addition of new high-growth markets such as Quantum and robotics, indie's technology leadership and expanding product portfolio ensure we are well positioned to drive continued growth. No other semiconductor company has a product portfolio as advanced as indie's to meet the diverse needs of these markets.
That concludes our prepared remarks. Operator, please open the line for questions.
[Operator Instructions] First question we have is from Cody Acree of The Benchmark Company.
2. Question Answer
Maybe if we can, Donald, dig into your supply shortages a bit. Can you maybe just explain how this happened, when this happened, when you started to see this? And when does this unwind? And do you get this revenue back as supply starts to become available?
I mean going in reverse order, for sure, we get the revenue back. It's just an inconvenience at the moment because of the short-term shortage. It's something that came fairly suddenly to the market. It wasn't something that we were able to anticipate. It was kind of a shock to the market there.
Several other companies out there who have been placed in the same situation. If you look at the reports of some of the other companies, Intel, in particular, they called this out a few weeks ago. So it's something that we expect will resolve in Q1, and it's just basically a short-term thing that we've got to work through.
And can you talk about your gross margin declines into Q4? You mentioned Wuxi. What's happening there sequentially?
It's just mix really. The products that we sell that use this particular kind of package are very high margin. And so because we have a small shortfall in the market that we can't deliver to, that's the biggest impact on the margin mix. And then because of that, Wuxi is a larger percentage of the roll-up and causes the margin percentage decay.
Excellent. And then lastly, on the Radar side. Can you just talk about what's happened in the last 90 days? And what's your visibility? And what does this ramp look like as we look into next year?
Yes. I mean it's been a world win for us. We've had so much activity in the last 90 days. It caused us to accelerate our plans to bring up the second sourcing procedures for what we're bringing into play here. It costs us a little bit of short-term OpEx in the short run, but it's a great problem to have.
We're having to prepare to deploy into multiple geographical regions with multiple different supply chain requirements, basically China for China, not China for not China. And the sort of level of support and effort that we're having to put into this now is enormous the fact that the customer also announced the product is a ringing endorsement of where we are in the process. These things don't go public unless there's a high degree of certainty that stuff is going to happen. So it's been a crazy 90 days, I would say, Cody, as we've gone through the process of launching now.
Any thoughts on next year's contribution?
I mean I think we're not really going to make any change to our outlook on life for '26. We still feel that there could be a very aggressive ramp in '26. That together, coupled with our vision processors, we're preparing, again, as I said, because of the supply chain issues that we're having to address.
We're having -- we're preparing to prepare for a big ramp. We're already in the manufacturing process. So we feel that we've got a lot of good stuff coming for '26.
The next question we have is from Suji Desilva of ROTH Capital Partners.
Best of luck in the new role, Naixi. So the products you've been talking about for the quantum laser market, can you talk about if there's any visibility to design wins? Or is that still in the kind of development phase? Any comment there on timing of when that...
No, I mean we've actually been shipping production already. I mean the year-to-date or the projection for the whole year is probably a little bit less than $1 million worth of business. Given that it didn't start at the beginning of the year, it started late Q2, really, it's accelerating very rapidly.
And I think if you look at the reports of the public quantum guys, you're seeing them raising their numbers. So it's a new market for us. We're learning as we go, but it does seem very exciting, very dynamic. It's quite a fragmented market. So we have to cover quite a lot of bases and customers and so forth. But certainly, the deployments can go quite very quickly to ship parts off the shelf basically off the rack.
Okay. Great. And then the backlog growth you saw year-over-year, can you talk about what programs are driving the increases in backlog? Is it more Radar vision opportunity or expansion of scope of programs? Or any thoughts there?
I mean, expansion of scope of the Radar program for sure, and then some heavier vision programs, which we added to the portfolio.
Okay. And lastly, on the Vision programs, can you talk about the timing of when those would start to contribute to revenue? I think there are ones coming on very quickly, but comments on the.
Yes. I mean Vision is also ramping now, and we have some fairly significant volume in it already. We've added a bunch of new wins in China, which ramped very quickly. And there are certain sort of dynamics in the market that, in many cases, the programs that are new to us should ramp actually pretty quickly through '26. So we've -- again, it's been a one quarter.
The next question we have is from Craig Ellis of B. Riley Securities.
Donald, congratulations on the growth in the backlog year-on-year. I wanted to start there and just see if you could give us some color on what some of the primary contributors are to backlog Radar versus ADAS? And then I think you mentioned that there's some non-auto stuff in there, maybe photonics and quantum. Help us understand how big that is.
Yes. So primarily, it is centered around our ADAS products, both Radar and Vision. We had some bigger discrete wins at Vision, which we'll talk about in the fullness of time once we're able to.
There is -- we have added a little bit for the quantum-related optics products, still small. But now that we have running revenue, of course, we're kind of compelled to anyway. we're still quite conservative on the market growth and the amount of money that we have in there or assumed in there.
It's very small compared to what we're committing to on the ADAS products. But we are excited about the market. It's moving extremely quickly. And that coupled with the fact that we're now seeing a lot of interest from the humanoid robotics market for our product base means that there are some dynamic market growth factors there, which we hadn't anticipated and are unexpected positives, I would say.
Coming back to Radar and just going a little bit deeper on where Wuxi was. It's nice to hear that your primary customer has identified that the product will ramp. Can you help us understand beyond just color on multi-geography ramp potential, what type of customers they may be engaged with that could give us a sense of the type of volume we would be talking about when this starts going out in volume?
I mean they are one of the largest vendors on the planet in the space. And so their product portfolio addresses everything from the highest volume passenger cars through commercial vehicles through high-end vehicles and heavy industry. So it's a very, very high-volume market indeed.
We expect to get a very significant market share of the entire radar market through this program. And again, that's why we're preparing our supply chain and really had to double down during the last quarter in terms of bringing up second sources earlier than we thought we would.
Got it. And then if I could squeeze in one more for Mark, the software acquisition, any visibility on the degree to which that could contribute in either fourth quarter or through the year next year and benefit gross margin?
Yes. So yes, so the acquisition is off to a very good start, Craig, integration ongoing. We've already engaged with the customers -- with the main Tier 1 customers for camera, OMS, BMS, combining our device with their software. So it's probably too early to have a synergy, revenue in Q4. But certainly, next year, we will see some sales synergy there. It's already running in the order of approximately $1 million a quarter for 2025, and that should increase going through 2026.
The next question we have is from Anthony Stoss of Craig-Hallum.
I wanted to focus in on your comments about the North American Robotaxi partner for a 2026 launch. Is that Radar, LiDAR? Anything you can give there? And then I have a couple of follow-ups.
It's our new vision processor.
Got it. And then I think in the last quarterly call, you talked about expanding relationship with BYD, and I think there's a Vision program that was supposed to launch this quarter, Q4. Maybe you can just update us. I know you made some comments about Chinese wins on the call, but love to hear more.
Yes. I mean we're engaged with all of the name brand Chinese OEMs. We have wins with many of them, and we're making the prescribed progress that we expected through this quarter. So I mean, we're generally pretty happy with the way the market is. And I mean, the sales channel that remains in China, net of Wuxi is doing a phenomenal job of deploying our new products into that space. And so we do expect significant revenue from that geography as time progresses.
Got it. And then my last question also related to the Radar ramp. you talked about bringing up a second supplier earlier than anticipated. Is your partner, are the automakers moving more towards intermodal changes out and putting in [ ADAS NAV ] solution? Or why do you need to bring out a second supplier so quickly?
I mean, heavily, it's been driven by geographical compatibility. So we do need and for certain OEMs to ensure that we have a supply chain that is not including China and Taiwan. And we were well positioned to do that, but we had to accelerate some of our plans and spend some of the manufacturing tooling during this quarter and next quarter in order to make that happen.
The next question we have is from Jonathan Tanwanteng of CJS Securities.
I was wondering what gives you confidence that the substrate and packaging issue will be resolved by Q1, number one?
And number two, have you thought about the indirect impacts of shortages across the industry and if that might impact auto numbers overall and not just including substrates, but also like the aluminum plant outage. We've heard third things about Xperia and China. Are those considered in the outlook and if those might flow through you in some way?
Well, taking the first part. I mean we -- I mean, we're in the process of bringing up several second sources. As I mentioned before, just as a matter of form, we have to accelerate our procedure, particularly for these organic substrates that are used in the flip chip packages that we use.
So the discussions and ongoing engagement with the new vendors has been going well. I would say this is, let's say, a corner of the industry specific, where the vendors who are heavily exposed to large language model ICs from NVIDIA and Co are redirecting capacity over there. Even some very large brand names are struggling to get what they want. So it was just a kind of a fallout of that.
So you're right, it's an indirect impact. I don't necessarily see that we have a long-term impact from anything that is out there right now, the [ Nia ] thing aside with Volkswagen, particular, of course, that was public. But I do expect that, that will rectify itself in short order. It doesn't feel like a general industry shortage like we saw post pandemic.
Okay. Great. That's helpful. And then just to dig a little deeper there. Is the pricing in ramping more sources for chip substrate going to be an issue, especially if your volumes next year are going to be better than maybe you thought with these -- your customers requiring second sources for your production?
Yes. I mean the second source helps us give price leverage into our supply chain. So I mean, it was something we would have done in the fullness of time anyway. We were -- our hand was forced really by some unexpected positive news really to do it earlier. And it really should give us leverage as we go forward as we're able to play wafer foundry suppliers off against each other and likewise with packaging and test houses that make up the back end of the product.
Okay. Great. If I could sneak in one more. What is the margin and OpEx without Wuxi look like? And what does the breakeven level look like in revenue?
I mean we don't really segment it out. I mean we did give directionally indication that the Wuxi business was significantly lower margin than the rest. As we go forward and deploy our ADAS products, we're still committed to getting to the 60% gross margin level of the target model that we set ourselves.
At this time, there are no further questions. And I would like to turn the floor back over to management for closing remarks.
Well, thanks, everybody. Thanks for attending the call and looking forward to seeing you at the conferences over the coming week, where you'll meet myself and Mark and Naixi.
Ladies and gentlemen, that concludes this conference. Thank you for joining us. You may now disconnect your lines.
Financial data from Indie Semiconductor Inc - Ordinary Shares - Class A
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 231 231 |
6%
6%
100%
|
|
| - Direct Costs | 144 144 |
12%
12%
62%
|
|
| Gross Profit | 87 87 |
2%
2%
38%
|
|
| - Selling and Administrative Expenses | 82 82 |
3%
3%
35%
|
|
| - Research and Development Expense | 150 150 |
9%
9%
65%
|
|
| EBITDA | -101 -101 |
12%
12%
-44%
|
|
| - Depreciation and Amortization | 43 43 |
9%
9%
18%
|
|
| EBIT (Operating Income) EBIT | -144 -144 |
7%
7%
-62%
|
|
| Net Profit | -150 -150 |
4%
4%
-65%
|
|
In millions USD.
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Indie Semiconductor Inc - Ordinary Shares - Class A Stock News
Company Profile
indie Semiconductor, Inc. provides automotive semiconductor and software solutions for Advanced Driver Assistance Systems (ADAS) including LiDAR, connected car, user experience and electrification applications. Its technologies represent the core underpinnings of both electric and autonomous vehicles, while the advanced user interfaces transform the in-cabin experience to mirror and seamlessly connect to the mobile platforms. The company was founded by Donald McClymont, Ichiro Aoki, Scott Kee, and David Kang on February 9, 2007 and is headquartered in Aliso Viejo, CA.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Mcclymont |
| Employees | 800 |
| Founded | 2007 |
| Website | www.indiesemi.com |


