Q2 2026 Indie Semiconductor Inc Earnings Call

August 6, 2026

Speaker #1: Good afternoon, and welcome to Indie's second quarter 2026 earnings call. Currently, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Operator: Good afternoon, and welcome to indie's Q2 2026 earnings call. Currently, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I will now like to turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.

Speaker #1: As a reminder, this conference is being recorded. I will now like to turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.

Speaker #2: Thank you, operator. Good afternoon, and welcome to Indie's second quarter 2026 earnings call. Joining me today are Donald McClymont, Indie's CEO and co-founder, Naishi Wu, Indie CFO, and Mark Tyndall, EVP of Corporate Development and Investor Relations.

Ashish Gupta: Thank you, operator. Good afternoon, and welcome to indie's Q2 2026 earnings call. Joining me today are Donald McClymont, indie's CEO and Co-founder, Naixi Wu, indie's CFO, and Mark Tyndall, EVP of Corporate Development and Investor Relations. Donald will provide opening remarks and discuss business highlights. Naixi will provide a review of indie's Q2 results and business outlook. Please note we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

Speaker #2: Donald will provide opening remarks and discuss business highlights. Naishi will then provide a review of Indie's Q2 results and business outlook. Please note we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties.

Speaker #2: These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

Speaker #2: For material risks and other important factors that could affect our financial results, please review our risk factors and our annual report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC.

Ashish Gupta: For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended 31 December 2025, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. The results and guidance discussed today are based on consolidated non-GAAP financial measures such as non-GAAP operating loss, non-GAAP net loss, and non-GAAP net loss per share. For a complete reconciliation with GAAP and the definition of the non-GAAP reconciling items, please see our Q2 earnings press release in addition to a presentation summarizing our quarterly results and more details on non-GAAP measures as posted on our website in advance of this call at www.indisemi.com. I'll now turn the call over to Donald.

Speaker #2: Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures, such as non-GAAP operating loss, non-GAAP net loss, and non-GAAP net loss per share.

Speaker #2: For a complete reconciliation with GAAP and the definition of the non-GAAP reconciling items, please see our Q2 earnings press release in addition to presentation summarizing our quarterly results and more details on non-GAAP measures as posted on our website in advance of this call at www.indee.inc.

Speaker #2: And I'll turn the call over to Donald.

Speaker #3: Thanks, Ashish, and welcome, everyone. I'm very pleased to report that Indie delivered a quarter of solid growth and performance, with revenue of $64 million up 24% year over year, and above the midpoint of our guidance.

Donald McClymont: Thanks, Ashish, and welcome everyone. I'm very pleased to report that indie delivered a quarter of solid growth and performance with revenue of $64 million, up 24% year over year, and above the midpoint of our guidance. Before turning to our business achievements, let me provide some context on the market environment. Overall, the automotive semiconductor market continues to recover steadily, driven by improving vehicle production and sustained demand for electric vehicles. China continues to be a leader in the automotive ecosystem, fueled by strong domestic demand and the growing presence of China vehicle brands in global markets. On a regional basis, China remained indie's strongest end market, followed by the US and Europe. Outside of automotive, the emergence of physical AI and robotics is expanding the market opportunity for our high-performance SoCs, as these applications require higher levels of processing, environmental sensing, and real-time intelligence.

Speaker #3: Before turning to our business achievements, let me provide some context on the market environment. Overall, the automotive semiconductor market continues to recover steadily, driven by improving vehicle production and sustained demand for electric vehicles.

Speaker #3: China continues to be a leader in the automotive ecosystem, fueled by strong domestic demand and the growing presence of China vehicle brands in global markets.

Speaker #3: On a regional basis, China remained Indie's strongest end market, followed by the US and Europe. Outside of automotive, the emergence of physical AI and robotics has expanded the market opportunity for our high-performance SOCs, as these applications require higher levels of processing environmental sensing and real-time intelligence.

Speaker #3: These favorable market dynamics are reflected in our second quarter results, and we believe will intensify over the long run. Let me now turn to our recent business progress and key achievements during the past quarter.

Donald McClymont: These favorable market dynamics are reflected in our Q2 results, and we believe will intensify over the long run. Let me now turn to our recent business progress and key achievements during the past quarter. I'm excited to share that our 77 gigahertz radar chipset solution is gaining outsized traction through the deployment of our Tier 1 partner's Gen 8 radar product, with new wins soon expected with leading OEMs in North America and China, continuing to underline the leadership position that our radar technology enables. You may recall that on our last earnings call, we shared that indie was awarded an initial $25 million production order for our radar chipset, and since then, a design win was announced with a leading Tier 1 supplier supporting Volvo.

Speaker #3: I'm excited to share that our 77 gigahertz radar chipset solution is gaining outsized traction through the deployment of our tier-one partners Gen 8 radar product.

Speaker #3: With new wins soon expected with leading OEMs in North America and China, we continue to underline the leadership position that our radar technology enables. You may recall that in our last earnings call, we shared that Indie was awarded an initial $25 million production order for our radar chipset, and since then, a design win was announced with a leading tier-one supplier supporting Volvo.

Speaker #3: These achievements highlight the continued market adoption of our radar solution, and the increasing pace of customer engagement as we ramp production volumes. This partner is important for Indie, and one through which we are actively looking to expand our success into adjacent physical AI markets.

Donald McClymont: These achievements highlight the continued market adoption of our radar solution and the increasing pace of customer engagement as we ramp production volumes. This partner is important for indie and one through which we are actively looking to expand our success into adjacent physical AI markets. As a reminder, radar is now a foundational sensor within automotive, with use cases across ADAS, autonomous driving, self-parking, in-cabin monitoring, and other emerging functions such as automatic door opening and road surface monitoring. Radar represents significant growth for indie, with most implementations averaging 4 to 5 radars per car, with opportunities for far higher deployment numbers as application adoption continues.

Speaker #3: As a reminder, radar is now a foundational sensor within automotive, with use cases across ADAS, autonomous driving, self-parking, in-cabin monitoring, and other emerging functions such as automatic door open, opening, and road surface monitoring.

Speaker #3: Radar represents significant growth for Indie, with most implementations averaging four to five radars per car, with opportunities for far higher deployment numbers as application adoption continues.

Speaker #3: Our solution has enabling for all these types of systems as it offers superior resolution, longer detection range, and enhanced object detection and classification across a wide range of weather and lightning conditions, all at a price point to enable the complete automotive spectrum from high-end fully autonomous vehicles to 20,000 dollar entry-level cars.

Donald McClymont: Our solution is enabling for all these types of systems as it offers superior resolution, longer detection range, and enhanced object detection and classification across a wide range of weather and lighting conditions, all at a price point to enable the complete automotive spectrum from high-end, fully autonomous vehicles to $20,000 entry-level cars. Industry forecasts underscore this momentum, with P&S Intelligence projecting the global automotive radar market to grow at an 18% CAGR through 2032, representing one of the fastest-growing segments within ADAS and vehicle sensing ecosystem. According to Yole Group, by 2030, they expect up to 5 radar configurations per vehicle to become standard globally, driven by NCAP requirements, regional regulation, and OEM differentiation strategies. We are not standing still.

Speaker #3: Industry forecasts underscore this momentum, with P-market research projecting the global automotive radar market to grow at an 18% CAGR through 2032, representing one of the fastest growing segments within ADAS and vehicle sensing ecosystem.

Speaker #3: According to Yoel Group, by 2030, they expect up to 5 radar configurations per vehicle to become standard globally, driven by in-cap requirements, regional regulation, and OEM differentiation strategies.

Speaker #3: And we are not standing still. As the sole supplier of radar ships in the 120 gigahertz frequency band, we are now seeing applications evolve due to even greater performance and lower cost point that we can provide, using this frequency.

Donald McClymont: As the sole supplier of radar chips in the 120 gigahertz frequency band, we are now seeing applications evolve due to even greater performance and lower cost point that we can provide using this frequency, driven by the ability to integrate antennas into the chip package. This enables new use cases both in the car and as a key perception technology for physical AI. 120 gigahertz radar brings unique benefits supporting higher spatial resolution, more precise range measurements, micro movement, and environmental detection, ideal for industrial, robotic, and smart infrastructure applications. The 120 gigahertz solution has been successfully evaluated by several Tier 1s and OEMs across a wide range of physical AI applications. At the same time, our photonics business is accelerating and becoming a core pillar of our product portfolio, with its revenue stream increasing solidly. Quantum is one of the fastest-growing areas within photonics.

Speaker #3: Driven by the ability to integrate antennas into the chip package. This enables new use cases both in the car and as a key perception technology for physical AI.

Speaker #3: 120 gigahertz radar brings unique benefits, supporting higher spatial resolution, more precise range measurements, micro-movement, and environmental detection, ideal for industrial, robotic, and smart infrastructure applications.

Speaker #3: The 120 gigahertz solution has been successfully evaluated by several tier ones and OEMs across a wide range of physical AI applications. At the same time, our photonics business is accelerating, and becoming a core pillar of our product portfolio, with its revenue stream increasing solidly.

Speaker #3: Quantum is one of the fastest growing areas within photonics, at less than $1 billion in 2025, the quantum photonics market is expected to exceed $14 billion, growing at a CAGR of 34% through 2035, according to an SNS insider.

Donald McClymont: At less than $1 billion in 2025, the quantum photonics market is expected to exceed $14 billion, growing at a CAGR of 34% through 2035, according to an SNS Insider. In fact, we achieve a record quarter for quantum bookings while continuing to receive recurring orders for our LXM lasers used in quantum key distribution applications. Recent showcasing of our LXM and DFB laser portfolio have opened many new opportunities with new and current customers. Indie is gaining meaningful traction through several customer-funded development programs, including one from a leading quantum customer and an additional project involving two Japanese companies. These engagements are particularly important because they highlight the differentiation of our photonic light source platform, allowing us to advance innovation and position us well for future production revenue as quantum applications move towards commercialization. Beyond quantum, demand for our photonics portfolio continued to strengthen.

Speaker #3: In fact, we achieve a record quarter for quantum bookings, while continuing to receive recurring orders for our LXM lasers, used in quantum key distribution applications.

Speaker #3: Recent showcasing of our LXM and DFB laser portfolio have opened many new opportunities with new and current customers. Indie is gaining meaningful traction through several customer-funded development programs, including one from a leading quantum customer, and an additional project involving two Japanese companies.

Speaker #3: These engagements are particularly important, because they highlight the differentiation of our photonic light source platform, allowing us to advance innovation and position as well for future production revenue as quantum applications move towards commercialization.

Speaker #3: Beyond quantum, demand for our photonics portfolio continued to strengthen, we delivered a significant increase in sales bookings, reflecting growing technology. We also saw increased demand for our optical fiber components, driven by the expanding adoption of AI and security solutions, creating demand for enterprise data infrastructure which enables organizations to harness data securely, efficiently, and at scale.

Donald McClymont: We delivered a significant increase in sales bookings, reflecting growing customer demand and confidence in our technology. We also saw increased demand from our optical fiber components, driven by the expanding adoption of AI and security solutions, creating demand for enterprise data infrastructure, which enables organizations to harness data securely, efficiently, and at scale. Taken together, these results demonstrate the demand for our photonic solutions and reinforce our confidence in the long-term growth opportunities ahead. Moving to our vision portfolio, our latest addition is the iND881, an edge AI SoC engineered for low power consumption and real-time responsiveness, delivering capabilities purpose-built for demanding edge perception tasks.

Speaker #3: Taken together, these results demonstrate the demand for our photonic solutions and reinforce our confidence in the long-term growth opportunities ahead. Moving to our vision portfolio, our latest addition is the IND881.

Speaker #3: An edge AI SOC engineered for low power consumption and real-time responsiveness, delivering capabilities purpose-built for demanding edge perception tasks. Building on the success of our flagship IND880, the IND881 not only delivers the image processing excellence of its predecessor, but also incorporates a powerful heterogeneous AI engine, further expanding functionality not only for our automotive core business, but also for industrial and consumer applications such as smart cameras for AMRs and humanoids, as well as high-speed smart industrial cameras that require real-time processing and low latency capabilities.

Donald McClymont: Building on the success of our flagship iND880, the iND881 not only delivers the image processing excellence of its predecessor, but also incorporates a powerful heterogeneous AI engine, further expanding functionality not only for our automotive core business, but also for industrial and consumer applications such as smart cameras for AMRs and humanoids, as well as high-speed smart industrial cameras that require real-time processing and low latency capabilities. In the recent AutoSens & InCabin USA event in Detroit, we showcased to strong engagement and customer acclaim an industry-first solution that combines DMS, OMS, and e-mirror functionality within a single mirror unit. Powered by our iND881 SoC, the platform sets a new standard for integration and system efficiency. No other competing SoC on the market today can deliver this level of functionality in a single device.

Speaker #3: In the recent auto sense and in-cabin USA event in Detroit, we showcased to strong engagement and customer acclaim an industry-first solution that combines DMS/OMS and emitter functionality within a single mirror unit, powered by our IND881 SOC, the platform sets a new standard for integration and system efficiency.

Speaker #3: No other competing SOC on the market today can deliver this level of functionality in a single device. This differentiation is generating great customer interest with multiple design engagements currently underway with leading OEMs and tier one suppliers.

Donald McClymont: This differentiation is generating great customer interest with multiple design engagements currently underway with leading OEMs and Tier 1 suppliers. Our vision processing solutions are becoming the preferred industry platform for e-mirror solutions, further establishing indie as a leader in this space as we continue to secure new design wins with major automotive manufacturers and Tier 1 suppliers. With surging DRAM prices, we have capitalized on the opportunity to approach new and existing customers with our cost-optimized iND880 DRAMless architecture. By eliminating the need for external memory, the iND880 helps customers navigate any DRAM supply constraints. In many cases, our customers are unable to source memory at all, and using the 880 allows them to alleviate line down situations.

Speaker #3: Our vision processing solutions are becoming the preferred industry platform for emitter solutions, further establishing Indie as a leader in this space as we continue to secure new design wins with major automotive manufacturers and tier one suppliers.

Speaker #3: With surging DRAM prices, we have capitalized on the opportunity to approach new and existing customers with our cost-optimized IND880 DRAMless architecture. By eliminating the need for external memory, the IND880 helps customers navigate any DRAM supply constraints, in many cases our customers are unable to source memory at all, and using the 880 allows them to alleviate line down situations.

Speaker #3: Our IND880 vision processor continues to deliver success for customers, having secured several new design wins with leading Chinese OEMs in addition to Cadillac, with a wide range of vehicle classes, ranging from large SUVs, sedans, and electric SUVs, with its ability to enable advanced camera and vision processing for ADAP, DAS applications, the IND880 remains extremely attractive to our customer base, as being evaluated across multiple vehicle programs setting up a healthy opportunity pipeline.

Donald McClymont: Our iND880 vision processor continues to deliver success for customers, having secured several new design wins with leading Chinese OEMs in addition to Cadillac, with a wide range of vehicle classes ranging from large SUVs, sedans, and electric SUVs. With its ability to enable advanced camera and vision processing for ADAS applications, the iND880 remains extremely attractive to our customer base as being evaluated across multiple vehicle programs, setting up a healthy opportunity pipeline. The iND88x family is also gaining increased traction with many physical AI customers, with China providing a large number of design wins. Two of our key wins are with leading humanoid robot manufacturers, Unitree and AGIBOT, which according to Omdia research, each shipped more than 5,000 robots in 2025.

Speaker #3: The IND88X family is also gaining increased traction with many physical AI customers, with China providing a large number of design wins. Two of our key wins are with leading humanoid robot manufacturers Unitree and Agibot, which, according to Omdia Research, each shipped more than 5,000 robots in 2025.

Speaker #3: The success of our emotion 3D acquisition underscores the value of our hardware plus software strategy. Which has now beginning to deliver recurring royalties to our revenue stream.

Donald McClymont: The success of our emotion3D acquisition underscores the value of our hardware plus software strategy, which is now beginning to deliver recurring royalties to our revenue stream. By bringing together emotion3D's proven AI vision algorithms and our highly integrated automotive SoCs, we have established a differentiated one-stop shop platform for advanced in-cabin sensing that extends well beyond silicon alone. Our traction within in-cabin perception and driver and occupant monitoring is now further underpinned by the field-proven combination of indie's emotion3D software and vision processing SoCs, providing a pre-integrated DMS, OMS platform that is an attractive solution for customers looking to accelerate their time to market and reduce development risk. By offering our customers software, hardware, or a combination of both in a pre-integrated perception stack, we also provide ultimate flexibility in design approach.

Speaker #3: By bringing together emotion 3D's proven AI vision algorithms and our highly integrated automotive SOCs, we have established a differentiated one-stop shop platform for advanced in-cabin sensing that extends well beyond silicon alone.

Speaker #3: Our traction within in-cabin perception and driver and occupant monitoring is now further underpinned by the field-proven combination of Indie's emotion 3D software and vision processing SOCs, providing a pre-integrated DMS/OMS platform that is an attractive solution for customers looking to accelerate their time to market and reduce development risk.

Speaker #3: By offering our customers software hardware or a combination of both in a pre-integrated perception stack, we also provide ultimate flexibility in design approach. In recognition of our emotion 3D software capabilities, we recently received the supplier excellence award from Mahindra in their XEV9S program.

Donald McClymont: In recognition of our emotion3D software capabilities, we recently received the Supplier Excellence Award from Mahindra in their XUV900 program. Through deep collaboration between Mahindra and our software team, we delivered AI-powered in-cabin software that enhances safety, comfort, and the user experience, bringing advanced in-cabin intelligence to market. Last quarter, we announced that indie had entered into a definitive agreement to acquire the CMOS image sensor group from ams-OSRAM AG. Imaging is a key component of sensor-rich platforms with high-performance visual applications such as humanoids, cobots, and industrial automation. By leveraging these intelligent and high-performance sensors, we continue to build our foundational strategy to support rapid growth in the emerging physical AI market. Our transaction remains under review by regulatory authorities, and we anticipate closure prior to year-end.

Speaker #3: Through deep collaboration between Mahindra and our software team, we delivered AI-powered in-cabin software that enhances safety, comfort, and the advanced in-cabin intelligence to market.

Speaker #3: Last quarter, we announced that Indie had entered into a definitive agreement to acquire the CMOS image sensor group from AMS OSRAM AG. Imaging is a key component of sensor-rich platforms, with high-performance visual applications such as humanoids, cobots, and industrial automation.

Speaker #3: By leveraging these intelligent and high-performance sensors, we continue to build our foundational strategy to support rapid growth in the emerging physical AI market. Our transaction remains under review by regulatory authorities, and we anticipate closure prior to year-end.

Speaker #3: Turning to the previously announced potential divestiture of our equity interest in Wu Xi Indie Micro, while the exact timing of closing remains subject to the completion of its regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates.

Donald McClymont: Turning to the previously announced potential divestiture of our equity interest in Wuxi indie Micro, while the exact timing of closing remains subject to the completion of its regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates. With that, I'll turn the call over to Naixi Wu to walk through our financial results.

Speaker #3: With that, I'll turn the call over to Naishith to walk through our financial results.

Speaker #1: Thank you, Donald, and good afternoon, everyone. Indie's second quarter revenue was $64 million, exceeding the midpoint of our outlook by 2 million, representing an increase of 24% compared to the prior year period.

Naixi Wu: Thank you, Donald, and good afternoon, everyone. indie's Q2 revenue was $64 million, exceeding the midpoint of our outlook by $2 million, representing an increase of 24% compared to the prior year period. Revenue from our core business was approximately $36 million, a sequential growth of over 5%, reflecting the continued momentum in our ADAS portfolio, while revenue from our Wuxi subsidiary was $28 million. Non-GAAP operating expenses during the quarter totaled $37.9 million, consistent with our outlook. As a result, our Q2 non-GAAP operating loss was $8.9 million compared to a loss of $14.5 million in the comparable period in 2025, demonstrating our continued progress towards achieving profitability. With net interest expense of $2.8 million, our net loss was $11.7 million, and the loss per share was $0.05 on the base of 227.6 million shares, consistent with our guidance last quarter.

Speaker #1: Revenue from our core business was approximately $36 million, a sequential growth of over 5%, reflecting the continued momentum in our ADAS portfolio, while revenue from our Wu Xi subsidiary was $28 million.

Speaker #1: Non-GAAP operating expenses during the quarter totaled $37.9 million, consistent with our outlook. As a result, our second quarter non-GAAP operating loss was $8.9 million compared to a loss of $14.5 million in the comparable period in 2025.

Speaker #1: Demonstrating our continued progress towards achieving profitability. With net interest expense of $2.8 million, our net loss was $11.7 million, and the loss per share was $0.05 on the base of $227.6 million shares, consistent with our guidance last quarter.

Speaker #1: Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures. Turning to the balance sheet, we exit the quarter with total cash and cash equivalents, including restricted cash of $149 million, a net decrease of Of 35.7 million sequentially .

Naixi Wu: Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures. Turning to the balance sheet. We exit the quarter with total cash and cash equivalents, including restricted cash of $149 million, a net decrease of $35.7 million sequentially. This decline was primarily driven by our non-GAAP operating loss, with additional cash used to build inventory in preparation for upcoming demand, increasing accounts receivable in line with our revenue growth, and ongoing CapEx investment. Moving to our outlook for Q3 2026, we expect to deliver total revenues between $67 to 73 million. At the midpoint of this range, we anticipate our core business to reach approximately $40 million and our Wuxi subsidiary to contribute roughly $30 million in Q3.

Speaker #1: This decline was primarily driven by our non-GAAP operating loss , with additional cash used to build inventory in preparation for upcoming demand , increasing accounts receivable in line with our revenue growth and ongoing CapEx investments .

Speaker #1: Moving to our outlook for the third quarter of 2026, we expect to deliver total revenues between $67 million and $73 million, with the midpoint of this range.

Speaker #1: We anticipate our core business to reach approximately 40 million in our witchy subsidiary to contribute roughly 30 million in the third quarter . We expect to continue to improve our non-GAAP operating expenses to 37 million for Q3 , down from approximately 38 million in Q2 .

Naixi Wu: We expect to continue to improve our non-GAAP operating expenses to $37 million for Q3, down from approximately $38 million in Q2. Coupled with expected net interest expense of approximately $3.2 million and no tax expenses, we expect our net loss per share to decrease to approximately $0.04, assuming the midpoint of revenue range and the base of 230 million shares. In summary, our Q2 results reflect broad-based momentum across radar, vision, and photonics, and we remain focused on delivering continued growth. With that, I'll turn the call back to Donald for closing remarks.

Speaker #1: Coupled with expected net interest expense of approximately $3.2 million and no tax expenses, we expect our net loss per share to decrease to approximately $0.04.

Speaker #1: Assuming the midpoint of the revenue range and the base of 230 million shares. In summary, our second quarter results reflect broad-based momentum across radar, vision, and photonics, and we remain focused on delivering continued growth. With that, I'll turn the call back to Donald for closing remarks.

Speaker #2: Thank you Nike . In these business remains solid as evidenced by our strong second quarter results with accelerating top line growth heading into the third quarter .

Donald McClymont: Thank you, Naixi. Indie's business remains solid, as evidenced by our strong Q2 results, with accelerating top-line growth heading into Q3. Our radar and vision programs continue to gain traction with leading OEMs and Tier 1 partners, and our expansion into quantum and physical AI is opening new avenues for outsized growth. With the pending CMOS image sensor acquisition further strengthening our portfolio, Indie's technology leadership and expanding product breadth is positioning us to capitalize on these emerging opportunities. We believe Indie offers one of the broadest and most differentiated product portfolios in the industry to meet the diverse needs of these markets. We are confident in our business as our radar and vision design wins continue to ramp. That concludes our prepared remarks. Operator, please open the line for questions.

Speaker #2: Our radar and vision programs continue to gain traction with leading OEMs and tier one partners , and our expansion into quantum and physical AI is opening new avenues for outsized growth .

Speaker #2: With the pending CMOs image sensor acquisition further strengthening our portfolio in these technology , leadership and expanding product breath is positioning us to capitalize on these emerging opportunities .

Speaker #2: We believe Indi offers one of the broadest and most differentiated product portfolios in the industry to meet the diverse needs of these markets.

Speaker #2: We are confident in our business as our radar and vision design wins continue to ramp . That concludes our prepared remarks . Operator , please open the line for questions

Speaker #3: Thank you . We will now be conducting a question and answer session . If you would like to ask a question , please press star one on your telephone keypad .

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. We ask that you please limit yourself to one question and one follow-up. One moment while we pull for questions. We will hear from Craig Ellis with B. Riley Securities. Please go ahead.

Speaker #3: The confirmation tone will indicate your line is in the question queue . You may press star two to remove yourself from the queue .

Speaker #3: For participants using speaker equipment , it may be necessary to pick up the handset before pressing the star keys . We ask that you please limit yourself to one question and one follow up One moment while we pull for questions And we'll hear from Craig Ellis with B Riley Securities .

Speaker #3: Please go ahead .

Speaker #4: Yeah . Thanks for taking the question . And Donald , congratulations on the revenue momentum at midyear . I wanted to follow up on the Volvo win .

Craig Ellis: Yeah. Thanks for taking the question, and Donald, congratulations on the revenue momentum at midyear. I wanted to follow up on the Volvo win. Can you help us understand the timing with which that converts to revenue and its size? On the subject of radar, how are we tracking versus what I think has been an expectation for around $35 to 50 million in revenue this year for that product?

Speaker #4: Can you help us understand the timing with which that converts to revenue and its size ? And and on the subject of radar , how are we tracking versus what I think has been an expectation for around 35 to 50 million in revenue this year for that product .

Speaker #2: So , I mean , we won't break down exact details of individual design wins for for each customer . But that being said , Volvo has some significant volume .

Donald McClymont: We won't break down exact details of individual design wins for each customer. That being said, Volvo has some significant volume. It has a high penetration rate as it's basically a luxury car manufacturer, so pretty much all of their models will feature this technology. It's a very decent-sized design win for us, and although it is the one that is the most public at the moment. In terms of where we see ourselves going for the rest of the year, obviously radar is still going to be a big driver for all of our growth through 2026, 2027, 2028, and 2029, in fact. It will be a big portion of the growth perspective that we have in the outlook.

Speaker #2: It has a high penetration rate as it's basically a luxury car manufacturer . So pretty much all of their , their models will feature this technology .

Speaker #2: So it's , it's a , it's a very decent sized design win for us It's far from our only design win . And although it is the one that is the most public at the moment in terms of where we see ourselves going for the rest of the year , obviously radar is still going to be a big driver for all of our growth through 26 , 27 and 28 and 29 .

Speaker #2: In fact , so it'll be a it'll be a big portion of , of the growth perspective that we have in the , in the outlook .

Speaker #4: That's great . Thank you . And then the follow up relates to the , the Dram product , the NDI 880 . There's been a lot of reporting out of Asia and China within the last three months that that the the manufacturing situation is getting even more painful than it was when you spoke to us three months ago about the cost of Dram and its availability .

Craig Ellis: That's great. Thank you. Then the follow-up relates to the DRAMless product, the iND880.

Craig Ellis: There's been a lot of reporting out of Asia and China within the last three months that the manufacturing situation is getting even more painful than it was when you spoke to us three months ago about the cost of DRAM and its availability. Can you help us understand the degree to which that's converting to revenue this year, or the extent to which it's giving you pipeline visibility for the coming years? Thank you.

Speaker #4: So can you help us understand the degree to which that's converting to revenue this year or the extent to which and the extent to which it's giving you pipeline visibility for the coming years ?

Speaker #4: Thank you .

Speaker #2: Yeah . I mean , it's , it's a I mean , it's a chunk of the , of the growth that we see has has come to us very , very swiftly because of the , the , the expediency and the nature of , of the situation .

Donald McClymont: Yeah, it's a chunk of the growth that we see. It has come to us very swiftly because of the expediency and the nature of the situation. People have to ship somehow, that means that regular design cycles go out the window. We have seen things convert very quickly within a few weeks or a quarter at max. Yeah, that's driving some pretty significant good news for us at the moment in a few markets. Not only automotive, but also in the physical AI, which also is a surprising and very nice upside for us that these products can be used in the other application.

Speaker #2: People have to ship somehow . And that means that regular design cycles go out the window . So we have seen things convert very quickly within , within a few weeks or a quarter at max and yeah , that's , that's driving some , some pretty significant good news for us at the moment in a few markets , not only automotive , but also in , in the physical AI , which also is a kind of a surprising and very nice upside for us that , that these products can be used in the other application

Speaker #3: Next, I'll move to Cody Acree with Benchmark. Stone, ex—

Operator: Next, we'll move to Cody Acree with Benchmark StoneX.

Speaker #5: Thank you guys for taking my questions and congrats on the progress . Donald . Maybe just following up on Craig's question on radar and if you can just include vision , can you help frame your ramp expectation ?

Cody Acree: Thank you guys for taking my questions and congrats on the progress. Donald, maybe just following up on Craig's question on radar, if you can just include vision, can you help frame your ramp expectation, maybe the slope or scale of the ramp, that you envision over the next few quarters for both those programs?

Speaker #5: Maybe the slope or scale of the ramp that you envision over the next few quarters for both those programs

Speaker #2: Yeah , I mean , they're both going to ramp very steeply . We should see the slope of the ramp accelerating from where we are right now .

Donald McClymont: Yeah, they're both going to ramp very steeply. We should see the slope of the ramp accelerating from where we are right now. You should see that, of course, already in the guide for Q3. We are super excited about it on both fronts. We are seeing so much traction for both the product families, bringing us into new OEMs, and even into new markets in some cases. It's super exciting. We have applications, as I mentioned before, outside of automotive as well, in humanoid robotics and even in drones. We're seeing our technologies getting used, it's super exciting.

Speaker #2: You should see that , of course , already in the in the guide for Q3 , we are super excited about it on both fronts .

Speaker #2: We are seeing , you know , so much traction for both the product families bringing us into new OEMs and even into new markets .

Speaker #2: In some cases . So it's , it's super exciting . We have we have applications , as I mentioned before , outside of automotive as well , in , in humanoid robotics and also in , even in drones , we are seeing our technologies getting used .

Speaker #2: So it's super exciting .

Speaker #5: Thanks for that , Donald . And then maybe can you just help frame or give any details to the size of your current Non-auto revenue in fiscal AI , quantum photonics , what have you , whatever details you can provide , and then maybe how significant do you expect that Non-auto business to , to grow to either the end of this year , end of next would help ?

Cody Acree: Thanks for that, Donald. Then maybe can you just help frame or give any details to the size of your current non-auto revenue in physical AI, quantum photonics, what have you, whatever details you can provide. Then maybe how significant do you expect that non-auto business to grow to, either the end of this year or end of next would help.

Speaker #2: Well , we don't we don't really subsegment and it's still , let's say nascent . I'd say Perhaps the physical AI market's a little nearer , you know , we quoted some numbers for the leading customers of ours who manufactured thousands of robots in the last 12 months .

Donald McClymont: Well, we don't really sub-segment. It is still, let's say, nascent. I'd say perhaps the physical AI market's a little nearer. We quoted some numbers for the leading customers of ours who manufactured thousands of robots in the last sort of 12 months. We are seeing predictions of these markets going into multiple millions across many applications in robotics, not just humanoids, but AMRs also. Quantum is a little harder to call, but I would say just at this very moment, there's a lot of buzz about it. Some of the guys out there are beginning to deploy qubit numbers of above 100,000 units, and it is getting close to the point where quantum advantage should reach a tipping point. It's really hard to put a number on it, but it is an exciting market.

Speaker #2: And , you know , we are seeing predictions of these markets going into multiple millions across many applications and robotics , not just humanoids , but amrs also , quantum is a little harder to call , but I would say just at this very moment , there's a lot of buzz about it .

Speaker #2: Some of the the guys out there are beginning to deploy qubit numbers of in above 100,000 units , and it is getting close to the point where quantum advantage should reach a tipping point .

Speaker #2: So , I mean , it's really hard to put a number on it , but I mean , it is an exciting market .

Speaker #2: It is an exciting time to be alive and see our products going into these , these amazing new machines

Donald McClymont: It's an exciting time to be alive and see our products going into these amazing new machines.

Speaker #3: Next, we'll hear from Anthony Stoss with Craig-Hallum.

Operator: Next, we'll hear from Anthony Stoss with Craig-Hallum.

Speaker #6: Good afternoon everybody . Donald . Just wanted to also follow up on the NDI 880 last quarter . You mentioned that you thought it would be more revenues potentially in 2026 than the radar .

Anthony Stoss: Good afternoon, everybody. Donald, just wanted to also follow up on the iND880. Last quarter, you mentioned that you thought it would be more revenues potentially in 2026 than the radar.

Speaker #6: If you can shed more detail , if it's going into low end cars , I know it's heavily exposed to the China market .

Anthony Stoss: If you can shed more detail, if it's going into low-end cars. I know it's heavily exposed to the China market.

Speaker #6: Just your sense on the building of the number of models per quarter and what you think you know , the kind of the steepness of the ramp looks like in Q4 ?

Anthony Stoss: Just your sense on the building of the number of models per quarter and what you think the steepness of the ramp looks like in Q4, then I had a follow-up.

Speaker #6: And then I had a follow up .

Speaker #2: Yeah . I mean , we are a little more indexed to China for this particular application , but we do now have wins in with North American tier ones who are very significant volume in this application space .

Donald McClymont: Yeah, we are a little more indexed to China for this particular application, but we do now have wins with North American Tier 1s who are very significant volume in this application space. We're seeing the application being deployed in low mid-tier and above, probably dozens of models by now.

Speaker #2: We are we're seeing the application being deployed in , in low , mid tier and above . And , and probably dozens of models by now .

Speaker #6: Okay . And my shifting gears , topic of gross margins in the past , you've talked about trying to get to or expecting to get to 55% plus gross margins down the road .

Anthony Stoss: Okay. Shifting gears, topic of gross margins. In the past, you've talked about trying to get to or expecting to get to 55% plus gross margins down the road. I think, not too long ago, you were hoping for 50% gross margins late this year. Where do you think that now shakes out? Do you still have hopes for a 50% gross margin quarter in Q4?

Speaker #6: And I think not too long ago, you were hoping for 50% gross margins late this year. Where do you think that now shakes out?

Speaker #6: Do you still have hopes for a 50% gross margin quarter in Q4 ?

Speaker #2: Well , we don't typically guide gross margin , but we through the divestiture of Wuxi , which I would say is tangentially a drag on gross margin .

Donald McClymont: We don't typically guide gross margin, but through the divestiture of Wuxi, which I would say is tendentially a drag on gross margin, we're in a good spot where we can get to our corporate goals.

Speaker #2: You know , we're we're in a good spot where we can we can get through our to our corporate goals

Speaker #3: And we'll move on to John Tan with CJ s securities

Operator: We'll move on to Jonathan Tanwanteng with CJS Securities.

Jonathan Tanwanteng: Thank you for taking my questions. I was wondering if you could quantify the number of wins you had in the quarter, driven solely by the DRAM shortages that are out there, how many engagements do you have in the pipeline? If you could provide a little further detail, what kind of average revenue those kinds of engagements have on an annual basis?

Speaker #7: Thank you for taking my questions . I was wondering if you could quantify the number of wins you had in the quarter , driven solely by the Dram shortages that are out there and kind of how many engagements do you have in the pipeline ?

Speaker #7: And if you could provide a little further detail , what kind of average revenue those those kinds of engagements have on an annual basis

Speaker #2: Well , has an ASP of around $10 . And sometimes there are 1 or 2 deployed per per application . I would be hard put to give you an accurate number of how many design wins .

Donald McClymont: Well, the 880 has an ASP of around $10, and sometimes there are one or two deployed per application. It would be hard to give you an accurate number of how many design wins. It's kind of similar to the question of numbers of models that was asked just before there. It's in the same range, dozens of design wins.

Speaker #2: It's kind of similar to the question of numbers of models that was asked just before . Their . So it's it's in it's in the same range .

Speaker #2: Dozens of design wins

Speaker #7: Okay , great . Thank you . And then just a question on cash flow . I know you've been building inventory for the ramp .

Jonathan Tanwanteng: Okay, great. Thank you. Then, just a question on cash flow. I know you've been building inventory for the ramp.

Speaker #7: How should we think of that burn going forward, especially in front of the growth that you're seeing?

Jonathan Tanwanteng: How should we think of that burn going forward, especially in front of the growth that you're seeing?

Speaker #2: Yeah . I mean , in terms of cash , cash usage , we did invest a lot in inventory . We have some pretty steep ramps ahead of ourselves .

Donald McClymont: Yeah. In terms of cash usage, we did invest a lot in inventory. We have some pretty steep ramps ahead of ourselves, and the supply chain has been very tight, so we're very focused on that. Nominally, the cash usage should follow our net profit or loss on a quarterly non-GAAP basis. That should give you a reasonable indication. There's some below the line costs, a little bit of CapEx and so forth, but that's basically what we're expecting.

Speaker #2: And the supply chain has been very tight . So we're very focused on that . Nominally , the cash usage should should follow our Our net profit or loss per On a quarterly non-GAAP basis .

Speaker #2: So that should give you a reasonable indication . There's some below the line costs a little bit of CapEx and so forth . But that's that's basically what we're expecting

Speaker #3: Moving on . We'll hear from Natalia Winkler with UBS .

Operator: Moving on, we'll hear from Natalia Winkler with UBS.

Speaker #8: Hi . Thank you very much for taking my question . So the first one I had was on physical AI . Would it be possible for you guys to help us understand kind of the content ?

Natalia Winkler: Hi. Thank you very much for taking my question. The first one I had was on physical AI. Would it be possible for you guys to help us understand kind of the content, whether it's per robot, per application, maybe how does it compare to the automotive market? Maybe as a part of that, as you guys pursue some of those physical AI sockets, do you have to go to a completely different supply chain, or could some of your existing relationships with Tier 1s be helpful to get these design wins?

Speaker #8: Whether it's for robot for application , maybe . How does it compare to the automotive market ? And maybe as a part of that , you guys pursue some of those physical AI sockets .

Speaker #8: Do you have to go to a different , completely different supply chain , or could some of your existing relationships with tier one be helpful to get these design wins ?

Donald McClymont: Taking the last one first, both are applicable. Some of the traditional Tier 1s all over the world are beginning to turn their focus a little bit towards physical AI away from automotive, and it is perhaps a more profitable market. The sort of net reasoning for that is you can consider a humanoid robot or any kind of robot as a car with legs or a car as a robot with wheels. Many of the electronic implementations are applicable for both. From our perspective, we have direct relationships with, let's say, module manufacturers, which would be analogous of Tier 1s for the physical AI business. We have direct relationships, obviously, with our Tier 1 customers who are, in some cases, actually already entering into certain aspects of the robotics market. We are able to leverage both is the answer.

Speaker #2: I'm taking the last one first . Both . Both are applicable . Some of the the traditional tier ones , you know , all over the world are beginning to turn their focus a little bit towards physical AI , away from automotive and it's perhaps a more profitable market .

Speaker #2: And the I mean , there's sort of net reasoning for that is you can consider a humanoid robot or any kind of robot as a , as a car with legs or a car as a robot with wheels .

Speaker #2: And many of the , the , the electronic implementations are applicable for both . So from our perspective , we have direct relationships with , let's say module manufacturers , which would be analogous of tier ones for the physical AI business .

Speaker #2: And we have direct relationships , obviously with our tier one customers who are in some cases actually already entering into certain aspects of the robotics market .

Speaker #2: So, we're able to leverage both as the answer.

Speaker #8: Thank you . And then in terms of the content for robotic opportunity , I guess for a device , I don't know .

Natalia Winkler: Thank you. Then in terms of the content, per robotic opportunity, I guess per device, I don't know.

Speaker #2: Oh , I mean , the ASPs are typically significantly higher because the volumes are still small . So it's probably really too early to , to say what the dollar content for robot could be .

Donald McClymont: The ASPs are typically significantly higher because the volumes are still small. It is probably really too early to say what the dollar content for a robot could be. We have applicable parts that could be used in high-end applications of a robot where they have multiple sensors ranging from vision, radar, lidar even. Some of the processing that goes on on the back end of that could easily be $100 per robot.

Speaker #2: I mean , we have applicable parts that could be used in high end applications of a , of a robot where they have multiple sensors ranging from vision , radar , lidar , even , I mean , and some of the processing that goes on , on the back end of that could easily be $100 per robot

Speaker #3: And we'll move on to Joshua with T D Cowan .

Operator: We will move on to Joshua Buchalter with TD Cowen.

Speaker #9: Hey , guys , thank you for taking my question and congrats on the results . I wanted to ask about the 880 wins in China .

Joshua Buchalter: Hey, guys. Thank you for taking my question and congrats on the results. I wanted to ask about the iND880 wins in China. Any details you can provide on what types of architectures it's being integrated into? Anything you can give on the pros and cons of integrating the iND880 without DRAM into a central ADAS processor? Does that make it easier, harder? I'd just be curious to hear your thoughts on that. Thank you.

Speaker #9: Any details you can provide on what types of architectures it's being integrated into and any anything you can give on the pros and cons of integrating the 880 without Dram into a central Adas processor .

Speaker #9: Does that make it easier or harder? Just curious to hear your thoughts on that. Thank you.

Speaker #2: So we get used in standalone systems , things like electronic mirror systems , OMS , DMs , and we also get used as a pre-processor that goes in front of maybe a central processor .

Donald McClymont: We get used in standalone systems, things like e-mirror systems, OMS, DMS, and we also get used as a pre-processor that goes in front of maybe a central ADAS processor. What that does is we have the ability to process video, if you like, on the fly. We don't dump frame by frame into large external memories, which is currently where the problem is. There's a net side effect of that in that the video latency in our implementation is significantly easier, and it alleviates significantly the processing required for a central ADAS processor. Sometimes we just hear of them from our customers that they're choking on having to process the raw video streams, and we can take that burden off them, and they can go to use their processing for things that are more valuable, perception and such as that.

Speaker #2: So what that does is it we have the ability to , to process video , if you like , on the fly . So we don't dump frame by frame into large external memories , which , which is , you know , currently where the problem is .

Speaker #2: There's a net side effect of that in that the video latency in our implementation significantly easier , and it alleviates significantly the processing required for a central processor .

Speaker #2: You know , we sometimes we just hear of them from our customers that they're choking on having to process the raw video streams .

Speaker #2: And we can take that burden off them and they can use their processing for , for things that are more valuable perception and , and such as that .

Speaker #2: So in our opinion , certainly it makes it the implementation much easier . And also in the opinions of many of the engineers that our customers

Donald McClymont: In our opinion, certainly it makes the implementation much easier and also in the opinions of many of the engineers that are customers.

Speaker #9: Got it . Thank you for the call . That was really helpful . And then for my follow up , maybe just can help us understand what hurdles are left with the Wushi divestiture that that need to be cleared before you can complete the deal ?

Joshua Buchalter: All right. Thank you for the comment. That was really helpful. For my follow-up, can you help us understand what hurdles are left with the Wuxi divestiture that need to be cleared before you can complete the deal? Thank you.

Speaker #9: Thank you .

Speaker #2: I mean , it just we're in the in the in the throes of regulatory still , it's like there's an ongoing dialogue . It's very constructive .

Donald McClymont: We're in the throes of regulatory still. There's an ongoing dialogue. It's very constructive Q&A process. We set the expectations that this deal would close in Q4 of this year. I think we remain optimistic about that.

Speaker #2: Q and A process . And , you know , we set the expectations that this deal would close in Q4 of this year .

Speaker #2: And I think we remain optimistic about that

Speaker #3: And that will conclude today's question and answer session. I would now like to turn the floor back to management for closing remarks.

Operator: That will conclude today's question and answer session. I would now like to turn the floor back to management for closing remarks.

Speaker #2: Thanks , everybody , for attending . Hope to see a few of you at the at the conferences in the in the coming weeks and months and see you next quarter .

Donald McClymont: Thanks everybody for attending. Hope to see a few of you at the conferences in the coming weeks and months. See you next quarter.

Operator: Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.

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