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indie Semiconductor, Inc. (INDI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 revenue grew 3.3% year over year to $54.1M with non-GAAP gross margin of 49.5%; GAAP LPS was $0.18 and non-GAAP LPS was $0.08 .
  • Results were essentially in line but modestly below S&P Global consensus: revenue $54.1M vs $54.7M estimate* and EPS ($0.08) vs ($0.081) estimate*; non-GAAP gross margin landed within expectations (49–50% range communicated prior) .*
  • Management initiated a restructuring plan targeting $32–$40M annualized OpEx reduction by Q4’25 and lowered quarterly breakeven revenue from roughly $80M (prior view) to ~$65M; non-GAAP OpEx expected to step down through 2H with full impact in Q4’25 .
  • Q2 revenue outlook of $50–$53M (midpoint $51.5M) is roughly in line with S&P Global revenue consensus of ~$51.5M*; catalysts shift to 2H’25 as radar and vision ramps begin, alongside visible OpEx savings .*

What Went Well and What Went Wrong

What Went Well

  • Design-win momentum held up despite a tougher auto backdrop: iND880 wins at Valeo (North American OEM), eMirror win at a Korean OEM, additional China wins (Mercedes China eMirror, BYD in-cabin monitoring), and an additional Toyota in-cabin monitoring deployment via Bosch .
  • Management reiterated large revenue potential from radar and vision: “each of the radar and vision portfolios will generate well in excess of $100 million incremental annual revenue” .
  • Cost discipline and restructuring plan: OpEx actions target $8–$10M quarterly reduction by Q4’25 ($32–$40M annualized), dropping breakeven to ~$65M revenue per quarter; core ADAS programs not impacted .

What Went Wrong

  • Macro and tariff-driven uncertainty pressured OEM production plans and market sentiment; management noted weaker-than-expected demand at certain OEMs and a slower start to the year in China .
  • Sequential revenue softness (Q1 $54.1M vs Q4 $58.0M) and negative non-GAAP EBITDA ($13.1M) reflected mix and timing; EPS and revenue were marginally below S&P consensus estimates* .*
  • Higher-than-normal cash usage ($37.6M net reduction in total cash including restricted cash to $246.9M) largely due to timing of payables/receivables, which management expects to normalize .

Financial Results

P&L and Margins (GAAP and non-GAAP)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($M)$54.0 $58.0 $54.077
Non-GAAP Gross Margin %50.4% 50.4% 49.5%
Non-GAAP Operating Loss ($M)$(16.8) $(14.2) $(15.060)
Non-GAAP EPS (LPS)$(0.09) $(0.07) $(0.08)
GAAP EPS (LPS)n/an/a$(0.18)

Revenue Mix (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Product Revenue ($M)$48.578 $50.420
Contract Revenue ($M)$3.775 $3.657
Total Revenue ($M)$52.353 $54.077

KPIs and Balance Sheet

KPIQ3 2024Q4 2024Q1 2025
Non-GAAP EBITDA ($M)n/an/a$(13.136)
Cash + Restricted Cash ($M)$107.2 $284.5 $246.9
Cash and Equivalents ($M)n/a$274.248 $236.608
Shares (Weighted Avg, Basic)199.9M (for LPS calc) 205.7M (for LPS calc) 191.464M (GAAP) / 211.459M (non-GAAP share count)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q2 2025n/a$50–$53 (midpoint $51.5) New
Non-GAAP Gross Margin %Q2 2025n/a48–50% New
Non-GAAP OpEx ($M)Q2 2025n/a~$39.8 (R&D ~$29, SG&A ~$10.8) New
Net Interest Expense ($M)Q2 2025n/a~$1.8 New
Cash TaxesQ2 2025n/aNo cash tax expense New
Non-GAAP EPS (LPS)Q2 2025n/a$(0.08) on ~215.2M shares New
Quarterly Breakeven RevenueRun-rate~$80M (prior view) ~$65M (post-restructure) Lowered (positive)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
ADAS radar/vision ramps77GHz radar on track for 2025; strong iND880 wins; rising China traction Radar production late 2025; multiple vision ramps; small radar revenue in 2H’25 Radar and vision on track to ramp in 2H’25–2026; sizable revenue potential per line Stable-to-positive execution; timing sensitivity
Supply chain & tariffs/macroMixed macro; regulatory tailwinds; China relative strength Macro uncertainty accelerating; tariff risk rising Limited direct tariff impact; broader OEM uncertainty; U.S. price inflation risk Macro headwinds elevated
Product performanceiND880 award, strong testing; design wins across OEMs Vision/radar progressing; first 120GHz samples tested New wins (Valeo, Bosch/Toyota, Mercedes China, BYD); >$100M/yr potential per portfolio Positive
Regional dynamicsChina EV tailwinds, strong demand China relatively stronger near-term China start-of-year slower but trajectory “still pretty strong”; BYD a growth driver Mixed but constructive
R&D/OpEx disciplineInitiated cost review to pull forward profitability Early OpEx run-rate improvements; convertible notes strengthened cash Restructuring: $32–$40M annualized OpEx reduction; Q4’25 quarterly OpEx ~$33M Improving cost structure

Management Commentary

  • Strategic posture: “Our Q1 results demonstrate an enduring business resilience, with growth through 2025 and beyond underpinned by an innovative product portfolio, strong and growing design-win activity, and multiple anticipated product ramps for our class-leading ADAS solutions.” — CEO Donald McClymont .
  • Tariffs/macro: “New U.S. trade policies and resulting tariffs… have had minimal direct impact on indie’s operations to date… While our direct exposure is limited, tariffs are impacting overall market sentiment and creating uncertainty across the automotive industry.” — CEO .
  • ADAS revenue potential: “We anticipate that each of the radar and vision portfolios will generate well in excess of $100 million incremental annual revenue.” — CEO .
  • Cost actions and breakeven: “We expect… a quarterly reduction of approximately $8 million to $10 million per quarter or approximately $32 million to $40 million on an annualized basis… This reduced level of OpEx will allow us to reach breakeven at a revenue base of approximately $65 million per quarter.” — Mark Tyndall .

Q&A Highlights

  • Ramp timing vs magnitude: Management confident in ultimate ramp size for radar/vision but cautious on slope/timing amid macro uncertainty; start points and target models remain fixed .
  • Restructuring scope: Minimal impact to strategic backlog; small near-term revenue impact ($2–$3M in 2H) as lower-margin product lines are exited; ADAS programs unaffected .
  • Profitability path: On track for EBITDA breakeven in Q4; quarterly OpEx expected around ~$33M by Q4’25 as measures fully phase in .
  • China dynamics: Channel inventories manageable; China business “still pretty strong” with BYD highlighted; supply is “China for China” limiting tariff effects .
  • Specific program update: Radar with Ficosa experiencing some end-customer challenges implying likely delay, but program still largely on track .

Estimates Context

  • Q1 2025 vs S&P Global consensus:
    • Revenue: $54.077M actual vs $54.728M estimate* — essentially in line to slight miss .*
    • Primary EPS: ($0.08) non-GAAP LPS vs ($0.081) estimate* — essentially in line .*
  • Q2 2025 guidance vs S&P Global consensus:
    • Revenue guide $50–$53M (midpoint $51.5M) vs ~$51.5M consensus* — in line .*
    • Primary EPS: management outlook implies ($0.08) LPS; S&P consensus at (~$0.078)* — in line .*
  • Estimate counts: Q1: 7 for revenue and EPS; Q2: 6 for revenue and EPS.*
    Values retrieved from S&P Global.*

Financial and Estimates Tables

Actuals vs S&P Global Consensus (Q1 2025)

MetricQ1 2025 ActualQ1 2025 ConsensusSurprise
Revenue ($M)$54.077 $54.728*~$(0.651)M (slight miss)
Primary EPS (non-GAAP)$(0.08) $(0.081)*~+$0.001

Q2 2025 Guidance vs S&P Global Consensus

MetricCompany GuidanceStreet Consensus
Revenue ($M)$50–$53; mid $51.5 ~$51.483*
Primary EPS$(0.08) framework (mgmt outlook) $(0.078)*
Values retrieved from S&P Global.*

Additional Q1 Context: Other Press Releases

  • Strategic manufacturing collaboration with GlobalFoundries (22FDX) for 77/120 GHz radar SoCs, targeting step-change in performance and system cost; first 120 GHz customer samples available; supports ADAS adoption .

Key Drivers of the Quarter

  • Why results landed where they did:
    • Macro/tariff overhang slowed OEM builds and clouded visibility, tempering near-term production ramps (revenue slightly under consensus)* .
    • Mix effects and slightly lower contract revenue share, alongside the usual early-year seasonality, weighed on profitability (non-GAAP EBITDA $(13.1)M) .
    • Cash usage driven by timing-related payables/receivables that management expects to normalize, easing cash burn into Q2+ .
  • Why the setup may improve:
    • 2H’25 ADAS ramps (radar/vision) and restructuring-driven OpEx step-downs lower the bar to breakeven ($65M rev/quarter) — a more attainable threshold than prior ~$80M .

Key Takeaways for Investors

  • Execution still intact: Design-win velocity across ADAS remained strong (Valeo, Bosch/Toyota, China wins), supporting the 2H ramp narrative .
  • Cost pivot is meaningful: Annualized OpEx reductions of $32–$40M with Q4’25 quarterly OpEx near ~$33M should drive operating leverage as revenue ramps .
  • Breakeven bar lowered: Quarterly revenue breakeven reduced to ~$65M from ~$80M previously, improving visibility to profitability as ADAS ramps materialize .
  • Macro is the swing factor: Tariff-driven uncertainty and OEM production adjustments are the primary near-term risk to timing/slope of ramps; management sees limited direct tariff exposure .
  • Near-term positioning: Q2 guide is in line with the Street; focus shifts to monitoring ADAS program milestones, OpEx trajectory, and cash normalization in receivables/payables .
  • Medium-term thesis: ADAS radar/vision revenue potential per line “well in excess of $100M” supports a multiyear growth runway, with GF collaboration reinforcing manufacturability and cost roadmaps .
  • Watch list: Updates on Ficosa radar timing, CFO search progress, and any incremental restructuring benefits or program-specific milestones .