indie Semiconductor, Inc. Q3 FY2025 earnings call

• Naixi Wu appointed CFO effective immediately, with strong finance background. • Automotive market trending better than feared, China was strongest segment. • Third quarter revenue $53.7 million, in line with outlook. • Strategic backlog at $7.4 billion, expanded into adjacent markets. • Radar: Tier 1 launched Gen8 radar, final validation ongoing. • Vision: Secured design wins for Robotaxi and Chinese EVs. • Power: Wireless charging platform gaining adoption in multiple regions. • Photonics: Design wins in LiDAR and drone, new business unit impacting sales funnel. • ADAS and optical products driving higher gross margin profile.

Indie achieved third quarter total revenue of $53.7 million. The strategic backlog is now at $7.4 billion compared to $7.1 billion a year ago. Excluding Wuxi, the strategic backlog is $6.1 billion. Revenue comes from various segments including Radar, Vision, Power, Photonics, etc. Radar: Tier 1 partner launched Gen8 radar solution. Vision: Secured design wins for self-driving Robotaxi OEM and new wins in China. Power: G2.0 wireless charging platform gaining adoption. Photonics: Design wins in LiDAR and drone segments. Adjacent markets like quantum compute, quantum communications, and humanoid robotics also contribute.

• Q4 revenue expected to be in range of $54 million to $60 million ($57 million midpoint) with $5 million shortfall due to substrate shortage, resolved in Q1 2026. • Non-GAAP gross margin expected in range of 47% due to product mix and Wuxi impact. • Non-GAAP OpEx for Q4 expected $36.5 million, down $1.5 million from Q3. • Net interest expense expected ~$2.2 million, no tax expenses. • Expected $0.07 net loss per share at midpoint of revenue range.

• Short-term supply shortage of packaged substrates impacting Q4 revenue, resolving in Q1 2026. • Unfavorable product mix and margin pressure from Wuxi business affecting gross margin. • Need for additional OpEx investment for second sourcing and production localization for Radar and vision design wins.

Q: Dig into supply shortages, when it happened, when it unwinds, and if revenue is recouped?

A: Shortage came suddenly, expected to resolve in Q1, revenue will be recouped.

Q: Talk about gross margin declines into Q4, impact of Wuxi?

A: Impact from mix, products using certain packages are high margin, shortfall affects margin mix, Wuxi's larger percentage causes margin decay.

Q: Radar activity in last 90 days, visibility, ramp into next year?

A: Significant activity, accelerated second sourcing, short-term OpEx, but great problem to have, expecting aggressive ramp in 2026.

Q: Visibility on quantum laser design wins?

A: Already shipping production, year-to-date ~$1 million, market growing rapidly.

Q: Backlog growth drivers, Radar vs ADAS?

A: Primarily ADAS products, bigger discrete wins at Vision, small contribution from quantum-related optics.

Q: Timing of Vision programs contributing to revenue?

A: Vision ramping now, new wins in China ramping quickly, programs expected to ramp through 2026.

Q: Primary contributors to backlog, Radar vs ADAS, non-auto?

A: Centered around ADAS products, some quantum-related optics, small, but excited about humanoid robotics market.

Q: Substrate and packaging issue resolution confidence, indirect impacts?

A: Engaging with second sources, corner of industry specific, expected to rectify in short order, no long-term impact seen.

Q: Margin and OpEx without Wuxi, breakeven?

A: Wuxi was lower margin, committed to 60% gross margin target, but not segmented out directionally.