indie Semiconductor Q1 Earnings Call Highlights

Key Points

• Q1 revenue was $55.5 million, about $0.5 million above the prior outlook midpoint and up ~3% year‑over‑year, while non‑GAAP operating loss improved; management completed a $170.5 million convertible note refinancing (net ~$165M), ended the quarter with $184.7M cash, expects Q2 revenue of $59–65M (midpoint $62M), and is pursuing a planned ~$135M sale of its Wuxi stake pending Chinese approvals.
• indie won a $25 million production order for a tier‑one partner’s Gen8 77 GHz 4TX/8RX radar, has secured additional back‑end/test capacity and second‑source foundry arrangements for ramp, and expects radar to "contribute meaningfully" this year across mainstream vehicle segments.
• The DRAM‑less iND880 vision processor has moved into production (eMirror at NIO), is drawing a pipeline described as "tens of millions" annually, and management said its momentum could potentially exceed radar revenue this year while easing DRAM supply constraints and lowering system BOMs.

indie Semiconductor NASDAQ: INDI reported first-quarter 2026 revenue of $55.5 million, topping the midpoint of its prior outlook by about $0.5 million and increasing roughly 3% year-over-year, as the automotive chip supplier cited improving market conditions and continued demand for higher semiconductor content per vehicle.

Management cites measured automotive recovery amid supply chain friction

CEO and co-founder Don McClymont said the broader automotive semiconductor market is showing a “measured recovery,” with channel inventories “largely normalizing” and demand described as “cautious but improving.” He added that global vehicle production remains “range-bound,” but secular trends—such as the shift toward software-defined vehicles, expanding ADAS adoption, and increasing exterior and in-cabin sensing—continue to drive semiconductor content per vehicle.

McClymont also pointed to ongoing geopolitical tensions and shifting trade dynamics that are affecting supply chains across the industry, contributing to higher logistics costs and “selective capacity constraints.” In the question-and-answer session, he said the environment remains tight due to demand tied to AI, adding that it will require “a watchful eye… for the foreseeable future,” though he said indie is “comfortable now with the diversification of the supplier base.”

$25 million radar production order and ramp preparations

McClymont highlighted a new $25 million production order tied to a tier-one partner’s Gen8 radar solution based on indie’s 77 GHz radar technology. He described the offering as “the first 4TX 8RX radar available in the industry” and said the order is driven by support for two OEMs—one European and one Asian—following design, testing, and qualification work over “many months.”

He said indie is positioned to ramp production, noting the company has secured additional back-end and test capacity “across multiple suppliers” in preparation for the ramp ahead. He also said indie is advancing a second-source foundry strategy to improve manufacturing flexibility and, in some cases, to meet “no China, no Taiwan” requirements from certain industry participants.

Asked about timing, McClymont declined to provide a specific delivery schedule for the $25 million order, characterizing it as “the first of many” as the project progresses. He did say indie has “a bunch of wafers in the line” and expects radar to “contribute meaningfully” this year.

When asked about where the radar content is landing, McClymont said it is “largely mainstream,” with multiple radars per vehicle in many cases. He said the company expects adoption “from low to mid-tier through high tier, through even commercial vehicles,” and added that the technology is not limited to higher levels of autonomy. “These are products that… you’ll find on something like a Volkswagen Golf or a Toyota Corolla,” he said.

Vision momentum and DRAM-less iND880 draws broader interest

In vision, McClymont said the iND880 vision processor has begun production supporting eMirror camera functionality at NIO, which he called a “premium Chinese EV OEM.” He said the program moved from design to production in about six months, which he attributed to execution and collaboration. He also said a camera mirror system program referenced in the prior quarter with the largest Chinese OEM is entering volume production.

McClymont pointed to multiple vehicle models shown with indie technology at the Beijing Auto Show, including:

• Buick GL8
• AITO M9
• NIO ES9
• Cadillac VISTIQ

He said these models are entering production in 2026.

A focal point for customer engagement, he said, is iND880’s DRAM-less architecture, which eliminates the need for external memory. McClymont said this helps customers navigate DRAM supply constraints, adding that in some cases customers “are unable to source memory at all,” and where DRAM is available, pricing can be “two, three, four times” normal levels. He said the architecture also reduces bill of materials, lowers system resource demands on downstream AI processors, and improves throughput and latency.

During Q&A, McClymont said indie is seeing “pipeline of tens of millions of dollars per year in annual revenue” for iND880-related opportunities and that momentum is moving “very, very fast.” He added it is “maybe even possible” the iND880 could exceed radar revenue “in this year.”

Photonics, quantum, LiDAR, and embodied AI initiatives

McClymont said indie is seeing growing interest in quantum and robotics and is pursuing new opportunities with emerging companies in high-growth markets. He cited third-party forecasts for robotics market growth and described engagement as accelerating across embodied AI applications, including autonomous mobile robots, humanoids, and drones.

In photonics, he said indie introduced what it called the “world’s first commercially available ultraviolet distributed feedback (DFB) laser at 399 nm,” describing the wavelength as matched to the atomic cooling transition of ytterbium used in neutral atom quantum computing architectures. He said indie’s visible DFB laser family spans near ultraviolet to green wavelengths and that the company is engaged with several quantum computing companies on next-generation laser source needs.

In LiDAR, McClymont said indie is starting to see adoption of FMCW technology across multiple markets. He said integration partners are completing designs incorporating indie’s iND83301 SoC, replacing FPGA-based processing and delivering claimed reductions of 80% in power consumption and 40% in solution size, along with improved cost positioning. He added indie is seeing traction beyond automotive, including engagement with a producer of autonomous mobile robots for warehouse management.

On drones, McClymont said iND880 is among the products being evaluated and referenced a derivative that includes additional functionality “including an AI processor.” He also said the company is seeing interest in its LiDAR processor and, through an automotive tier-one customer, “demand for the radars going on these things too,” adding that content levels are high and ASPs are “good.”

Financial results, refinancing, and Q2 outlook

CFO Naixi Wu said Q1 revenue of $55.5 million reflected strength in the company’s core business, which totaled about $34.1 million and grew more than 20% sequentially, driven by momentum in its core ADAS portfolio. Revenue from Wuxi was approximately $21.4 million, which Wu said was consistent with expectations.

Non-GAAP operating expenses were $37.3 million, leading to a non-GAAP operating loss of $11.1 million, improving from a $15.1 million loss in the comparable 2025 period. With net interest expense of $2.8 million, Wu said the non-GAAP net loss was $13.9 million, or a loss of $0.06 per share on 223 million shares, which she said was consistent with prior guidance.

Wu also detailed a refinancing transaction: indie issued a 4% convertible senior note due 2031 with aggregate principal of $170.5 million, generating net proceeds of about $165 million after fees and costs. The company used about $108 million of the proceeds to repurchase a significant portion of its 2027 notes, retaining the remainder for working capital and general corporate purposes. Wu said the refinancing extends the maturity profile by about four years, lowers the coupon, and enhances financial flexibility. The company ended the quarter with total cash and cash equivalents, including restricted cash, of $184.7 million—up $29 million from the fourth quarter of 2025.

On the planned divestiture of indie’s equity interest in Wuxi indie Micro, Wu reiterated that the company signed a definitive agreement in October 2025 to sell its entire interest to UFA for approximately $135 million in cash at closing, net of taxes and fees. She said the transaction has been advancing through the required regulatory approval process in China, including review by the Shenzhen Stock Exchange and the CSRC, and that the company remains “optimistic” it will close later this year, consistent with prior updates.

For the second quarter of 2026, Wu said indie expects total revenue of $59 million to $65 million, with $62 million at the midpoint. The company expects Wuxi to contribute $25 million in Q2, and core business revenue of about $37 million at the midpoint, representing about 8% sequential growth and roughly 20% year-over-year growth in its core ADAS, photonics, and adjacent business. Non-GAAP operating expenses are expected to be $38 million, with net interest expense of about $3.1 million and no tax expense. Assuming the midpoint of revenue and 227 million shares, Wu said the company expects to improve net loss per share to $0.05.

In response to a question about Wuxi trends, McClymont attributed prior headwinds to the China market—particularly the lower end of the EV market—driven by a change in Chinese government subsidy policy that impacted results through Q1. He said indie expects “a good bit of a bounce back” next quarter and believes those issues are resolving, adding that while unit trends face headwinds, increasing content per vehicle is helping offset them, which he said is evident in the company’s vision strength in China.

About indie Semiconductor NASDAQ: INDI

indie Semiconductor, Inc is a fabless semiconductor company headquartered in San Jose, California, that specializes in advanced chip solutions for the automotive industry. The company designs and develops microcontrollers, sensor processing units, application processors and power management integrated circuits tailored for electric vehicles (EVs), advanced driver assistance systems (ADAS), infotainment and digital clusters. indie's product portfolio aims to deliver high performance, energy efficiency and functional safety to meet stringent automotive requirements.

Originally formed as Integrated Memory Systems in 2021 through a business combination with a special purpose acquisition company, the firm rebranded to indie Semiconductor in early 2022.

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