If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start 2026, consider joining Out Fox The Street .indie Semiconductor, Inc. ( INDI ) continues to paint an incredible future in auto tech., but the company just can't get any revenue momentum. indie Semi. even has some high-profile robotics customers, yet the stock slumped to end 2025. MyStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is ...

About indie Headquartered in Aliso Viejo, CA, indie is empowering the automotive revolution with next generation semiconductors, photonics and software platforms. We focus on developing innovative, high-performance and energy-efficient mixed-signal SoCs and system solutions for ADAS systems in addition to adjacent industrial applications. Our sensors span all major modalities including Radar, LiDAR, Ultrasound, and Computer Vision, while our embedded system control, power management and interfacing solution ...

Core Insights - Mixel's MIPI IP has been successfully integrated into indie's automotive radar processor and MMIC products, enhancing their capabilities in advanced driver-assistance systems (ADAS) [1][2] - The partnership between Mixel and indie focuses on developing high-performance automotive solutions, particularly in radar technology, which is crucial for safety features in vehicles [2][4] Company Overview - Mixel is a leading provider of mixed-signal IPs, offering a wide portfolio that includes MIPI D-PHY, MIPI M-PHY, and automotive SerDes solutions, with a strong emphasis on automotive applications [8] - Silvaco, the parent company of Mixel, specializes in TCAD, EDA software, and silicon IP solutions, supporting semiconductor design and digital twin modeling across various markets [7] - indie is an innovator in automotive solutions, focusing on high-performance mixed-signal SoCs for ADAS and other industrial applications, with a strong presence among Tier 1 automotive partners [9] Product and Technology Highlights - Mixel provided indie with ASIL-B compliant MIPI D-PHY CSI-2 TX and RX IPs, along with certified automotive functional safety deliverables, ensuring compliance with stringent automotive standards [3][4] - The integration of Mixel's IPs supports a range of automotive applications, including collision detection and automated emergency braking, which are essential for modern vehicle safety [2][3] Strategic Collaboration - The long-standing partnership between Mixel and indie is characterized by mutual confidence in engineering capabilities, aiming to expand their collaboration in MIPI technology and beyond [4][5] - Mixel's extensive automotive experience and ISO 26262 certifications enhance its reliability as a partner for indie in developing advanced automotive solutions [4][5]

Core Insights - indie Semiconductor, Inc. (NASDAQ:INDI) is gaining attention as a potential investment opportunity, with UBS resuming coverage and raising its price target to $5 from $4.50, while Benchmark Co maintains a Buy rating with an $8 target [1][2] Financial Performance - The company reported third-quarter revenue of $53.7 million and a non-GAAP gross margin of 49.6%, indicating strong financial health [3] - Operating loss narrowed to $11.3 million compared to $16.8 million in the same quarter last year, reflecting improved operational efficiency [3] Strategic Developments - indie Semiconductor's strategic backlog has increased to $7.4 billion, showcasing robust design-win momentum in Advanced Driver Assistance Systems (ADAS) and growth in industrial markets such as quantum computing and robotics [2][3] - The company successfully designed a Robotaxi for a North American self-driving OEM and launched DFB laser products with significantly lower frequency noise for quantum computing applications [4] Product Focus - The company specializes in automotive-grade semiconductors and software solutions for driver assistance systems, in-cabin user experience, and vehicle electrification, with a focus on edge sensors like LiDAR, radar, ultrasound, and computer vision [5]

Revenue Performance - Total revenue for Q3 2025 was $53.7 million, a decrease of $0.3 million or 1% compared to $54.0 million in Q3 2024, primarily due to a $0.2 million decrease in product revenue and a $0.1 million decrease in contract revenue [165]. - Product revenue accounted for 95% of total revenue in both Q3 2025 and Q3 2024, while contract revenue accounted for 5% in both periods [165]. - Total revenue for the nine months ended September 30, 2025, was $159.4 million, a slight increase of $0.7 million or 0% compared to $158.7 million in 2024, driven by a $2.3 million increase in product revenue, partially offset by a $1.6 million decrease in contract revenue [177]. - Product revenue accounted for 95% of total revenue in 2025, amounting to $151.2 million, up 2% from $148.9 million in 2024 [176]. Operating Expenses - Operating expenses for Q3 2025 totaled $92.0 million, a decrease of $11.9 million or 11% from $103.9 million in Q3 2024 [166]. - Operating expenses for the nine months ended September 30, 2025, totaled $279.7 million, a decrease of $15.2 million or 5% from $294.9 million in 2024 [178]. Research and Development - Research and development expenses decreased by $8.0 million or 17% to $38.0 million in Q3 2025, primarily due to a reduction in personnel costs from restructuring initiatives [167]. - Research and development expenses decreased by $18.3 million or 13% to $118.6 million in 2025, primarily due to a reduction in personnel costs and share-based compensation [179]. Interest Income and Expense - Interest income increased by 66% to $1.7 million in Q3 2025, compared to $1.0 million in Q3 2024, due to higher cash balances [170]. - Interest expense rose to $4.3 million in Q3 2025, a 99% increase from $2.2 million in Q3 2024, primarily due to the addition of the 2029 Notes [171]. - Interest income increased by $2.8 million or 82% to $6.1 million in 2025, attributed to higher cash balances from the 2029 Notes issuance [182]. - Interest expense rose to $13.4 million in 2025, up 109% from $6.4 million in 2024, mainly due to the addition of the 2029 Notes [183]. Cash Flow and Financing Activities - For the nine months ended September 30, 2025, net cash used in operating activities was $42.8 million, reflecting a net loss of $119.5 million [199]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $30.2 million, primarily due to the acquisition of emotion3D for $17.7 million [201]. - Net cash used in financing activities for the nine months ended September 30, 2025 was $35.9 million, mainly from $26.8 million in payments for repurchase of the 2027 Notes [203]. Acquisitions and Divestitures - The acquisition of emotion3D was completed for a total consideration of $17.7 million in cash, with additional contingent considerations valued at $7.3 million [160]. - The acquisition of emotion3D was completed on September 26, 2025, with an initial cash consideration of $17.7 million and contingent considerations valued at $7.3 million [196]. - The potential divestiture of Wuxi is expected to generate approximately $135 million in gross transaction consideration, subject to regulatory approvals [155]. Currency and Risk Management - The foreign currency translation exchange gain for the nine months ended September 30, 2025 was $0.8 million, compared to a loss of $0.1 million in 2024 [209]. - The cumulative foreign currency translation loss related to foreign subsidiaries was $10.3 million as of September 30, 2025, up from $8.5 million in 2024 [209]. - The company plans to enter into additional foreign currency forward contracts to mitigate currency risk as international operations grow [209]. - The company does not believe that investment or interest rate risks currently pose material exposures to its business or results of operations [212]. Future Outlook - The company expects future capital requirements to depend on sales growth, spending on business initiatives, and overall economic conditions [189]. - The company expects to make additional capital expenditures in the future to support growth, including licenses for various intangible assets [202]. - Future estimated cash payments for contractual obligations total $427.3 million, with $30.98 million due within one year [205]. - As of September 30, 2025, the company had raised gross proceeds of $90.2 million from its ATM Agreement, with $59.8 million available for future issuances [190]. - As of September 30, 2025, the company's cash and cash equivalents, including restricted cash, totaled $171.2 million [210]. Revenue Contribution by Region - Wuxi accounted for 43% of indie's consolidated revenue for the three months ended September 30, 2025, and 40% for the nine months ended September 30, 2025 [158].

Core Insights - indie Semiconductor, Inc. reported a quarterly loss of $0.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -16.67% [1] - The company generated revenues of $53.68 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.69% and down from $53.97 million a year ago [2] - The stock has increased approximately 18.5% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Financial Performance - Over the last four quarters, indie Semiconductor has not surpassed consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $62.1 million, and for the current fiscal year, it is -$0.25 on revenues of $221.85 million [7] Market Outlook - The estimate revisions trend for indie Semiconductor was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Electronics - Semiconductors industry is currently in the top 34% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] Competitor Insights - QuickLogic, another company in the same industry, is expected to report a quarterly loss of $0.21 per share, reflecting a year-over-year change of -250%, with revenues anticipated to be $2.1 million, down 50.8% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported Q3 2025 total revenue of $53.7 million, consistent with expectations and showing solid quarter-over-quarter performance [6][15] - Non-GAAP gross margin was 49.6%, while non-GAAP operating loss was $11.3 million, improving from $14.5 million in the previous quarter and $16.8 million a year ago [15] - The company exited the quarter with total cash of $171.2 million, down from $202.9 million in Q2 2025, which included $17.7 million related to a recent M&A transaction [15][16] Business Line Data and Key Metrics Changes - The strategic backlog increased to $7.4 billion from $7.1 billion a year ago, with a stronger product mix contributing to higher gross margins [8][15] - The radar segment saw significant advancements, including the launch of a next-generation radar solution by a tier one partner, enhancing long-range detection capabilities [9] - The power group reported broader market adoption of the 10-watt Qi 2.0 wireless charging platform, with production starting at Ford in Q1 2026 [11] Market Data and Key Metrics Changes - The automotive market is expected to grow by 0.46% in 2026, with production projected at approximately 91 million vehicles, driven by increased semiconductor content per vehicle [5] - China's automotive market continues to dominate global production, representing over one-third of worldwide vehicle production, where the company's ADAS solutions are gaining traction [10] Company Strategy and Development Direction - The company is expanding into adjacent markets such as quantum computing and humanoid robotics, indicating a diversification strategy [6][8] - The acquisition of Emotion3D aims to enhance the company's capabilities in AI perception software for automotive applications, expected to contribute positively to revenue in the future [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term supply chain disruptions due to substrate shortages but expects resolution by Q1 2026, with revenue recovery anticipated [18][24] - The company remains optimistic about growth in 2026, driven by radar and vision programs, despite current operational challenges [27][39] Other Important Information - The company is actively working on second sourcing strategies to mitigate supply chain risks and enhance production capabilities [20][46] - The divestment of Wuxi is expected to improve the company's margin profile and lower the break-even revenue threshold [17][19] Q&A Session Summary Question: Can you explain the supply shortages and their resolution timeline? - Management indicated that the supply shortage was unexpected and is anticipated to resolve by Q1 2026, with revenue recovery expected [24] Question: What is causing the gross margin declines into Q4? - The decline is attributed to a mix of products, with higher-margin products being affected by the inability to meet market demand [25] Question: What is the visibility on radar ramp and customer engagement? - The company is preparing for a significant ramp in radar production, with strong customer engagement and expectations for high-volume market share [38] Question: Can you provide insights on the quantum laser market and design wins? - The company has begun shipping production in the quantum laser market, with rapid acceleration expected [31] Question: What are the primary contributors to backlog growth? - The backlog growth is primarily driven by expansions in radar and vision programs, along with some contributions from quantum-related optics products [32][36] Question: How will the acquisition of Emotion3D impact revenue and gross margin? - While immediate revenue synergies are not expected in Q4, contributions are anticipated to increase in 2026 [39]

Financial Performance - Q3 2025 revenue was $53.7 million, with a Non-GAAP gross margin of 49.6%[2] - The company reported a GAAP operating loss of $38.3 million in Q3 2025, an improvement from a loss of $49.9 million a year ago[2] - Non-GAAP operating loss for Q3 2025 was $11.3 million, compared to $16.8 million in the same period last year[2] - The net loss attributable to indie Semiconductor, Inc. for Q3 2025 was $38.3 million, or $0.19 per share[15] - GAAP revenue for the three months ended September 30, 2025, was $53,676 million, slightly down from $53,965 million in the same period of 2024, a decrease of about 0.5%[20] - Non-GAAP gross margin for the three months ended September 30, 2025, was 49.6%, compared to 50.4% for the same period in 2024, indicating a decline of 0.8 percentage points[20] - GAAP loss from operations for the three months ended September 30, 2025, was $(38,342) million, an improvement from $(49,903) million in the same period of 2024[21] - Non-GAAP net loss for the three months ended September 30, 2025, was $(13,259) million, compared to $(17,739) million in the same period of 2024, reflecting a reduction of approximately 25.5%[21] - Adjusted EBITDA for the three months ended September 30, 2025, was $(9,111) million, an improvement from $(14,814) million in the same period of 2024[21] - Non-GAAP net loss per share attributable to indie Semiconductor, Inc. for the three months ended September 30, 2025, was $(0.07)[21] Guidance and Forecast - Q4 2025 revenue guidance is between $54 million and $60 million, with a midpoint estimate of $57 million[5] - The supply shortage of package substrates is expected to negatively impact Q4 revenue by approximately $5 million[5] Strategic Developments - The strategic backlog increased to $7.4 billion, driven by design wins in ADAS and industrial markets[3] - The Gen8 radar product, incorporating indie's radar chipset, was launched by a Tier 1 partner[6] - The company commenced supply to market leaders in humanoid robotics in both the U.S. and China[7] - The first connectivity ICs were shipped to a leading North American EV manufacturer for production in the first half of 2026[7] Asset and Liability Management - Total assets decreased from $941,386 million on December 31, 2024, to $855,065 million on September 30, 2025, representing a decline of approximately 9.2%[17] - Total current liabilities decreased from $84,880 million on December 31, 2024, to $79,159 million on September 30, 2025, a reduction of approximately 6.4%[17] - Cash and cash equivalents decreased from $274,248 million on December 31, 2024, to $160,873 million on September 30, 2025, a decline of about 41.1%[17] - Stockholders' equity decreased from $445,395 million on December 31, 2024, to $392,914 million on September 30, 2025, a decline of approximately 11.8%[17] Non-GAAP Financial Measures - The company does not report GAAP gross profit or gross margin due to certain costs related to contract revenues being expensed as incurred, impacting the calculation of non-GAAP gross profit[25] - Non-GAAP operating loss excludes acquisition-related and other non-recurring professional expenses, totaling significant amounts that do not reflect ongoing operations[25] - Adjusted EBITDA is calculated by excluding various non-recurring items, including acquisition-related expenses and share-based compensation, to provide a clearer view of operational performance[35] - Non-GAAP net loss per share is derived by dividing non-GAAP net loss by a non-GAAP share count that includes weighted average Class A and Class V common stock[26] - The company emphasizes that non-GAAP financial measures should not be considered in isolation and may have limited value for comparisons between companies due to different calculation methods[34] - Restructuring costs related to workforce reduction and other one-time expenses are excluded from non-GAAP measures as they do not reflect ongoing performance[31] - The company acknowledges that forward-looking estimates of non-GAAP financial measures may differ materially from actual results due to uncertainties and unanticipated events[36] - Non-cash interest expenses related to the amortization of debt discounts are excluded from non-GAAP calculations as they do not influence operational decision-making[32] - The impact of inventory cost realignments introduced during COVID is deemed non-recurring and excluded from ongoing performance evaluations[29] - Management believes that including certain categories in non-GAAP presentations provides investors with a more transparent view of the company's capital structure[26]

Group 1 - The acquisition of Vienna-based AI perception software developer emotion3d marks a significant transition for indie Semiconductor, Inc. (NASDAQ: INDI), moving from a pure hardware developer to incorporating software capabilities [1] - This strategic move is expected to enhance indie Semiconductor's product offerings and competitive positioning in the semiconductor industry [1] Group 2 - The company aims to leverage emotion3d's technology to improve its AI-driven solutions, which could lead to increased market share and revenue growth [1]

Company Overview - indie Semiconductor, Inc. (INDI) shares increased by 18.6% in the last trading session, closing at $5.56, with a notable volume of shares traded compared to normal sessions [1] - Over the past four weeks, INDI's stock has gained 21.2% [1] - The company is experiencing strong momentum in Advanced Driver Assistance Systems (ADAS) technologies and is expanding into photonics and quantum markets [1] Financial Performance - The upcoming quarterly report for indie Semiconductor is expected to show a loss of $0.06 per share, which is a year-over-year change of +33.3% [2] - Expected revenues for the quarter are $54.05 million, reflecting a slight increase of 0.2% from the same quarter last year [2] - The consensus EPS estimate for indie Semiconductor has remained unchanged over the last 30 days, indicating stability in earnings expectations [3] Industry Context - indie Semiconductor is part of the Zacks Electronics - Semiconductors industry, which includes other companies like Amkor Technology (AMKR) [3] - Amkor Technology's consensus EPS estimate for its upcoming report is $0.42, representing a year-over-year decrease of -14.3% [4] - Both indie Semiconductor and Amkor Technology currently hold a Zacks Rank of 3 (Hold), indicating a neutral outlook [3][4]