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indie (INDI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 6, 2026

Source: earnings call transcript

Executive summary

indie Q2 FY26 — Strong Revenue Growth Driven by Radar, Vision, and Photonics

indie Semiconductor delivered solid Q2 FY26 results, exceeding revenue guidance, driven by strong performance in its radar, vision, and photonics portfolios. The company is expanding its market reach into physical AI and robotics, leveraging its automotive technologies. Strategic acquisitions and divestitures are progressing through regulatory review, with management optimistic about their closure later this year.

Highlights

5

  • Revenue of $64 million, up 24% year-over-year and above the midpoint of guidance.

  • Non-GAAP operating loss improved to $8.9 million from $14.5 million in Q2 2025.

  • Achieved a record quarter for Quantum bookings and significant increase in Photonics sales bookings.

  • Secured new design wins for 77 GHz radar with leading OEMs in North America and China, including Volvo.

  • iND880 DRAMless vision processor capitalized on DRAM shortages, securing new design wins with Chinese OEMs and Cadillac.

Concerns

5

  • Non-GAAP operating loss of $8.9 million for the quarter.

  • Net loss of $11.7 million, or $0.05 per share.

  • Total cash and cash equivalents decreased by $35.7 million sequentially to $149 million.

  • Supply chain has been very tight, necessitating inventory build.

  • Regulatory reviews for the CMOS image sensor acquisition and Wuxi divestiture are ongoing.

Guidance & targets

CategoryTargetConfidence
Total Revenue
$67 million to $73 million
high materiality
High
Core Business Revenue
approximately $40 million
medium materiality
High
Wuxi Subsidiary Revenue
roughly $30 million
medium materiality
High
Non-GAAP Operating Expenses
$37 million
medium materiality
High
Net Interest Expense
approximately $3.2 million
low materiality
High
Net Loss Per Share
approximately $0.04
high materiality
High
CMOS Image Sensor Acquisition Closure
prior to year-end
high materiality
Medium
Wuxi indie Micro Divestiture Closure
later this year
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Core Business
Sequential growth reflecting continued momentum in the ADAS portfolio.
$36 million—over 5%—
Wuxi Subsidiary
Contribution from the Wuxi subsidiary.
$28 million———

Orderbook & backlog

Quantum bookings record quarter Q2 FY26
Photonics sales bookings significant increase Q2 FY26
Radar chipset production order $25 million prior quarter

Initial production order, with design win announced supporting Volvo.

Product announcements

ProductTypeDetails
iND881 Edge AI SoClaunch
120 gigahertz radar solutionlaunch

Deals & partnerships

ams OSRAM AG Acquisition of the CMOS image sensor Group.

Imaging is a key component of sensor-rich platforms for high-performance visual applications such as humanoids, cobots, and industrial automation.

Wuxi indie Micro Divestiture of indie's equity interest.

Transaction is progressing well, consistent with prior updates.

Volvo Design win for 77 gigahertz radar chipset solution.

Awarded through a leading Tier 1 supplier. Highlights continued market adoption and increasing customer engagement.

Leading quantum customer Customer-funded development program for photonics.

Highlights the differentiation of indie's photonic light source platform.

Two Japanese companies Customer-funded development program for photonics.

Highlights the differentiation of indie's photonic light source platform.

Mahindra Supplier Excellence Award for AI-powered in-cabin software in XEV 9S program.

Through deep collaboration, indie delivered AI-powered in-cabin software enhancing safety, comfort, and user experience.

Risks & headwinds

Cash burn from operations and investments Q2 FY26

Total cash and cash equivalents decreased by $35.7 million sequentially.

Mitigation:Additional cash used to build inventory for upcoming demand, increasing accounts receivable in line with revenue growth, and ongoing CapEx investment.

Supply chain tightness Q2 FY26

Supply chain has been very tight.

Mitigation:Focused on building inventory in preparation for steep ramps ahead.

DRAM supply constraints Q2 FY26

Customers are unable to source memory at all.

Mitigation:Capitalized on the opportunity with cost-optimized iND880 DRAMless architecture, which alleviates line-down situations for customers.

Regulatory review for strategic transactions expected to close prior to year-end / later this year

CMOS image sensor acquisition and Wuxi divestiture remain under review by regulatory authorities.

Mitigation:Ongoing dialogue and constructive Q&A process with regulators; management remains optimistic about closure.

What to watch in Q3 FY26

Wuxi indie Micro divestiture closure

later this year (Q4 FY26)
Current Under regulatory review
Target Closed

Why it matters

Completion of the divestiture is expected to remove a potential drag on gross margin and streamline the business.

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.

Find out whether INDI delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you provide timing and size details for the Volvo win and how radar revenue is tracking against the $35M-$50M expectation for the year?

Donald McClymont stated that Volvo represents significant volume due to its high penetration rate across models, making it a decent-sized win. He reiterated that radar will be a major driver for growth through FY26-FY29, but did not provide specific revenue figures for the Volvo win or the full-year radar expectation.

“So 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, in fact.”

asked by Craig Ellis · answered by Donald McClymont

2 min read 5 chapters

Detailed narrative

Automotive Market Recovery and Physical AI Expansion

The automotive semiconductor market is steadily recovering, driven by improving vehicle production and sustained EV demand. China remains indie's strongest end market, followed by the U.S. and Europe. Beyond automotive, the emergence of physical AI and robotics is expanding market opportunities for high-performance SoCs, requiring higher processing, environmental sensing, and real-time intelligence.

Radar Technology Leadership and New Applications

indie's 77 GHz radar chipset solution is gaining significant traction, with new wins expected with leading OEMs in North America and China, including a previously announced $25 million production order and a design win supporting Volvo. Radar is a foundational sensor for ADAS, autonomous driving, and in-cabin monitoring. The company is also developing 120 GHz radar for physical AI, offering higher resolution and precise measurements for industrial, robotic, and smart infrastructure applications.

Photonics Business Acceleration

The Photonics business is accelerating, with revenue increasing solidly. The quantum photonics market is expected to grow at a 34% CAGR through 2035. indie achieved a record quarter for Quantum bookings and continues to receive recurring orders for LXM lasers used in quantum key distribution. Customer-funded development programs, including one with a leading quantum customer and two Japanese companies, highlight the differentiation of indie's photonic light source platform.

Vision Portfolio Innovation and Design Wins

The iND881 Edge AI SoC, building on the iND880, offers low power consumption and real-time responsiveness for demanding Edge perception tasks in automotive, industrial, and consumer applications. The iND880 DRAMless architecture has capitalized on DRAM shortages, securing new design wins with Chinese OEMs and Cadillac across various vehicle classes. This solution helps customers navigate DRAM supply constraints and alleviate line-down situations.

Hardware Plus Software Strategy and Strategic Transactions

The emotion3D acquisition underscores indie's hardware plus software strategy, delivering recurring royalties and a differentiated one-stop-shop platform for advanced in-cabin sensing. The company received a Supplier Excellence Award from Mahindra for its AI-powered in-cabin software. The acquisition of the CMOS image sensor Group from ams OSRAM AG and the divestiture of Wuxi indie Micro are progressing through regulatory review, expected to close prior to year-end and later this year, respectively.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.