indie Semiconductor, Inc. Class A Common Stock 2026 Q2 Earnings Call

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, Naixi Wu, indie 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'll 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.

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 December 31, 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.indie.inc. I'll now turn the call over to Donald.

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. 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 remains indie's strongest end market, followed by the U.S. 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.

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. I am excited to share that our 77 GHz 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.

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 four to five radars per car, with opportunities for higher deployment numbers as application adoption continues.

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 key 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. According to Yole Group, by 2030, they expect up to five radar configurations per vehicle to become standard globally, driven by NCAP requirements, regional regulation, and OEM differentiation strategies. We are not standing still.

As the sole supplier of radar chips in the 120 GHz frequency band, we are now seeing applications evolve due to even greater performance and lower cost point that we can provide to be 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 GHz 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 GHz 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.

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 achieved a record quarter for Quantum bookings while continuing to receive recurring orders for our LXM lasers using 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.

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.

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 and InCabin USA event in Detroit, we showcased to strong engagement and customer acclaim an industry-first solution that combines DMS, OMS, and eMirror 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.

This differentiation is generating great customer interest with multiple design engagements currently underway with leading OEMs and tier one suppliers. Our vision processing solutions are becoming the preferred industry platform for eMirror 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. 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.

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.

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 and design approach.