indie Semiconductor(US:INDI)2025-11-07 21:35Revenue 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].