indie Semiconductor, Inc. — Call Transcript 2026

Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 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 call is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead. Thank you operator. Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 earnings call. Joining me today are Don McClymont, indie's CEO and Co-Founder, Naixi Wu, indie's CFO, and Mark Tyndall, EVP of Corporate Development and Investor Relations. Don will provide opening remarks and discuss business highlights. Naixi will then provide a review of indie's Q4 results and business outlook. Please note that we'll be making forward-looking statements based on our 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 and annual report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. 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. For a complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q4 earnings press release in addition to a presentation summarizing our quarterly results and more details on our non-GAAP measures as posted on our website in advance of this call at www.indiesemi.com. I'll now turn the call over to Don. Thanks, Ashish, and welcome, everybody. Indie delivered a solid fourth quarter with revenue of $58 million, exceeding the midpoint of our outlook by $1 million and up 8% sequentially. Let me provide some context on the market environment before turning to our business achievements. First, on our markets, the automotive industry is entering a pivotal new phase as ADAS, or Advanced Driver-Assistance Systems, and automated driving and safety functionality are rapidly maturing beyond optional or premium features and into standardization at L2 and above. OEMs across all vehicle classes are recognizing that consumers expect a baseline of active safety features, including lane assist, automatic emergency braking, blind spot detection, and collision warnings. These trends reveal a market undergoing structural transformation, where software-defined intelligence, regulatory readiness, and scalable sensor technology are reshaping the competitive landscape. This continues to present a significant opportunity for indie to capitalize on by leveraging its technology investments for the readiness of these Mass-Market ADAS Segments. Additionally, the humanoid robotics market is rapidly transitioning from research labs to industrial and real-life applications. This creates exciting opportunities that we're actively pursuing today, and we plan to expand our activities here going forward. Our ADAS and automotive technologies align perfectly with humanoid sensing requirements by providing the robot eyes and ears. To that end, we are already seeing strong adoption of our radar vision and even interface solutions by industry leaders both in the U.S. and China. For example, our vision products have been deployed by companies including Figure AI and Unitree, among others. Powered by breakthrough advances in embodied AI, evolving workforce needs, and decreasing manufacturing costs through shared automotive components, this dynamic industry is accelerating towards becoming a major global economic driver by the 2030s. Let me now turn to our recent business progress and key achievements during the past quarter. Beginning with radar, our Tier 1 partner, who launched their Gen 8 77 GHz radar solution in Q4, is rapidly gaining strong commercial traction with even more global OEMs, including car manufacturers from Northern and Central Europe, North America, Japan, China, and India, with models ranging from entry-level through mid-tier, high-end passenger cars, and all the way to high-value commercial vehicles. The indie-based solution delivers far superior performance and cost basis compared to competing and previous generation products. Additionally, earning acclaim at CES this January. We began initial shipments to our Tier 1 partner in December as planned and are scaling production to fulfill the massive opportunity, estimated at well above 50 million units and annual demand once we are beyond the ramp-up phase. To support this ramp and mitigate allocation issues, we're expanding our production capabilities, including porting designs to second-source foundries here in the U.S., satisfying local supply sourcing demands. We are also securing additional back-end and test capacity at multiple suppliers to be prepared for the ramp. With these measures in place, indie will be well-positioned to fulfill the growing demand. Looking ahead, we are now in the midst of the definition of our next-generation radar platforms, which will deliver further competitive advantage in performance, cost, and functionality significantly beyond current levels. Overall, I'm extremely pleased with the progress of the current generation radar rollout and expect momentum to build through 2026 and beyond. Within our vision portfolio, we see continued momentum for with design wins for our industry-leading image signal processor SoCs, including our IND880 and our AI-based edge processor. Our DRAM-less architecture is creating new opportunities for us, as it allows our customers to overcome the current memory supply issues, while reducing the bill of materials and lowering system resource demands on AI processors. With this technology, we have secured new design wins in e-mirror and camera mirror systems of leading tier ones across passenger vehicles and trucks, with production beginning in late 2026 and continuing for several years. Within the China market, we have recently secured a design win with the leading electric vehicle manufacturer with our IND880 for a camera mirror system, which is expected to start ramping towards the middle of 2026. This is a very critical design win for indie, as we believe it will open more strategic opportunities going forward for our ADAS portfolio at this key customer. In Q4, indie completed the integration of emotion3D, creating a powerful ecosystem that unites AI-based perception algorithms with our hardware SoC capabilities, offering flexible standalone or integrated solutions within the cabin for driver and occupancy monitoring. Additionally, we have recently announced a strategic partnership with Mahindra, a leading Indian passenger and commercial vehicle manufacturer, for the supply of our perception software for their electric origin SUV series, including XEV 9e and BE 6. From our Photonics business unit, we were awarded a design win, including NRE, for a distributed feedback laser for a LiDAR application outside of the automotive market, potentially opening new opportunities in diverse market applications where high precision, high-speed 3D spatial information for real-time detection is critical. In addition, we have secured our largest booking of LXM lasers to date, supporting key customers in quantum communications and sensing, as our success continues in this adjacent quantum market. Within our power group, the Qi 2.0 wireless charging platform production with Ford remains on track for the first half of 2026, with adoption from multiple subsequent OEMs expected to follow. Indie is already gaining significant traction for our Qi 2.2 25-watt wireless charging solution, which offers seamless scalability via firmware upgrade. Moving to the Qi 2.2 solution enables faster power delivery, stronger magnetic alignment, and broader device interoperability without replacing hardware, making this a highly attractive solution for customers and partners. This product is already demonstrating strength, as evidenced by a leading Tier 1 wireless charging partner upscaling to our Qi 2.2 platform with another North American OEM. Recall, on our previous call, we highlighted the shortage of package substrates prevalent in the industry, caused by ever-increasing demand for AI chips. We are pleased to report we have made meaningful progress by qualifying second source package and substrate vendors. However, we expect the broader supply environment to remain constrained, and we will need to remain laser-focused to manage the situation through 2026. I will now turn the call over to Naixi for a review of our Q4 results and business outlook. Thank you, Donald, and good afternoon, everyone. Indie's fourth quarter revenue was $58 million, exceeding the midpoint of our outlook by $1 million, representing sequential growth of approximately 8% and flat compared to the prior year period, bringing our Full Year Revenue to $217.4 million. The non-GAAP operating expenses during the quarter totaled $36.8 million, consistent with our outlook, thereby achieving our goal of $8 million-$10 million savings. As a result, our fourth quarter non-GAAP operating loss was $10.1 million, compared to $11.3 million last quarter and $14.2 million a year ago, demonstrating our continued progress towards achieving profitability. With net interest expense of $2.3 million, our net loss was $12.4 million, and loss per share was $0.07 on a base of 220.4 million shares. Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures. Turning to the balance sheet, we exited the quarter with total cash and cash equivalents, including restricted cash, of $155.7 million, a $15.5 million decrease versus the third quarter, of which $6.8 million was used for our semi-annual interest payment on the outstanding convertible notes. As you may recall, in the fourth quarter, we announced that indie had entered into a definitive agreement with United Faith Auto-Engineering Co., Ltd., or UFA, a publicly listed company in China, to sell our entire outstanding equity interest in Wuxi Indie Micro for growth proceeds of approximately $135 million, payable in cash upon closing, net of applicable taxes and fees. The transaction continues to progress towards closing. As part of the customary closing conditions, USAE obtained its requisite shareholder approval in late 2025. The transaction remains subject to regulatory approval in China, including both Shenzhen Stock Exchange and CSRC. While the timing of the closing remains uncertain, we continue to be optimistic that it will occur by the late 2026 timeline we previously communicated. Moving to our outlook for the first quarter of 2026, we expect to deliver total revenues between $52 million-$58 million, with $55 million at the midpoint. We anticipate a decline in first quarter revenue from Wuxi to $21 million due to a lower demand from reduced EV subsidies and the Chinese New Year shutdown. However, we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint. We expect our non-GAAP operating expenses to be $37 million for Q1, relatively flat to Q4 2025, assuming a net interest expense of approximately $2.6 million with no tax expenses, we expect a $0.07 net loss per share based on 223 million shares at the midpoint of the revenue range. From a financial perspective, with our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indie is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026. With that, I will turn the call back to Donald for closing remarks. Thank you, Naixi. Our core business remains solid, as evidenced by strong fourth quarter results. Radar and vision programs remain firmly on track, highlighted by our Tier 1 partner's recent release of their advanced Gen 8 radar product, growing commercial adoption and our first radar chipset shipments late in the quarter. With the addition of high growth adjacent markets such as quantum sensing and humanoid robotics, Indie's technology leadership and expanding product portfolio positions us well to drive growth. We believe no other semiconductor company offers a product portfolio as well suited as Indie's to meet the diverse sensing needs of these emerging markets. That concludes our prepared remarks. Operator, please open the line for questions. Thank you. We'll now be conducting a question and answer session. If you'd 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 your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Thank you. Our first question is from Cody Acree with The Benchmark Company. Thanks, guys, for taking my questions, and congrats on the progress. Naixi, just one point of clarification. Can you give me the Wuxi revenue for Q4? Yeah, it was around $29.7 million. Could you just maybe go through the reasons again for the sequential decline, and then what do you expect that to do, looking into Q2? The decline mostly has to do with the upcoming Chinese New Year shutdown and the reduced EV subsidies, that the local people are getting. And any color on expected ramp in into Q2? I mean, we do expect it to recover in Q2. As of course, you know, we're in the process of selling that business. But yeah, we do expect it to bounce a little bit in Q2. Okay, great. Thanks. And Donald, maybe can you just provide any further color on the slope or the ramp of your radar programs that you're expecting for the balance of 2026? Well, I mean, since last we talked, we've made phenomenal progress together with the customer. We see the traction through the OEMs just getting ever stronger. So we feel absolutely phenomenal about where we are with the program. In fact, we're also really beginning now the discussions on what comes next for the next generation. But, I mean, the OEM traction has just been off the charts, and it gives us a good problem to solve. We need to focus now on making sure that our supply chain is robust enough to support the ramp that we expect, but we feel we're in a really good spot right now. And just to follow up there, the constraints that you're feeling still on substrates and packaging, what impact do you expect that to have in the first quarter? I mean, it had a little bit of a trailing impact into the first quarter. And I mean, we, it's the, the product portfolio, basically, in the, in the type of products that had substrate exposure, did have some risk mitigation in it. So some products that we had inventory of shipped, probably there was maybe a little bit less than a million of demand that, that is still questionable that we might get or not based on, based on supply. But we've made some significant progress versus, versus Q4, where it, it affected around $5 million in that quarter. Excellent. Thank you. Our next question is from Suji De Silva with ROTH Capital Partners. Hi, Donald. Hi, Naixi. Congratulations on the progress here on the Tier 1. Donald, you've given us, us backlog numbers in the past. Any update there? Any new design wins to talk about? I know you have at least two big programs coming, but, any, any color there would be helpful. Yeah, I mean, you know, as we know, we only really update our strategic backlog once a year. You can see from the script that we did make some progress on the sales side and add some new discrete designs out with the larger programs. We do expect that the sell-through into the OEMs from the large radar program also will increase over time. And you know, we've seen a lot of momentum in that during the last quarter, but no full quantifiable update right now. Okay. All right. Thank you, Donald. And then, you know, aside from Wuxi in China, can you talk about the progress there in terms of design wins and traction for your products, for the core part of the business? Yeah, I mean, you know, we're doing well in all regions. I mean, again, I mentioned in the script that, you know, we have exposure to OEMs, spaced over, all parts of Europe, also, in Asia, China, even India, actually, as part of that. So, I mean, we're feeling, you know, very good about where we are generally worldwide. Our next question is from John Tanwanteng with CJS Securities. Hi, this is Will in for John. Is there any update on the size of the opportunity within robotics and drones or in the quantum space, and if or when those can become significant contributors? Well, the robotics space is hard to call, but, I mean, we are just seeing a phenomenal amount of activity in that space. The products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications. So, you know, we are very optimistic about it. You know, we do feel that it can be a very material market as we progress through the rest of this decade. In terms of quantum, that's a little bit easier for us to quantify. We are beginning to make some significant traction in that space. We shipped about $1 million worth of optical products in that application in 2025, and we expect maybe around a trebling of that through 2026. So we are seeing increased momentum in that space also. Thank you. In regards to the supply chain constraints, can you add some more color on how you're thinking about the timeline to a full resolution? I mean, it's the tightness is really driven by the uptick in AI demand, and so we don't see that really going away anytime soon. From our perspective, just operationally, we're expanding our supply base to make sure that we have significant mitigation for all of the programs that are key to us. And we made some pretty good progress in the last 90 days to address that. We are seeing signs that several suppliers are making investments to improve capacity, likely something that would begin to take effect in 2027. But I mean, at this point, we feel decent about where we are. We've, as I said, we've made some good progress in bringing on new suppliers, and we hope that we can manage through this 2026 year without really taking any lumps on our side while we get through to 2027. But that's basically the best visibility we have right now. Our next question is from Anthony Stoss, with Craig-Hallum. Good afternoon, everybody. Donald, in the past, I think you talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between, I think it was $30 million-$50 million. Perhaps you can give us an update on that. And then, also love to hear, kind of thoughts on just OpEx for the rest of this year on a quarterly basis. Well, I mean, in terms of the radar volume, it's still in that same, same zip code. Nothing really has, has changed in the short term. What we are seeing is just gathering momentum with newer OEMs, which we hadn't really anticipated would be early adopters, and it turns out that, that they are going in that direction. That means that we will have a, a, like a steady and steep ramp over the course of 2026, 2027, 2028 and 2029 even, as some of these design wins, of course, are for, for longer term models, which are out in time. But, yeah, I mean, generally speaking, the, the momentum has, has been strong behind the program, and I, I think you can assume on OpEx side that it's, that it's basically gonna be about flat. Maybe a couple of lumps here and there as we, as we invest in tooling, but you know, no more than $1 million±. Gotcha. And then if I could sneak in one more outside of the Wuxi group. Just within your core business, what percentage of that core still remains in China? Probably, in the 25%-30% range, perhaps. I mean, not quite as high as that anymore, actually. I'm not sure. Twenty. Yeah, it's a little bit less than that now, probably. Our next question is from Craig Ellis with B. Riley Securities. Yeah, thanks for taking the question. Donald, congratulations on the 20% core business growth in the first quarter. Can you just help us understand what the top two or three drivers are to that growth? And is radar on that list, or are we in just smaller volumes in 1Q? I mean, yeah, radar is still relatively small volume in the last quarter and this quarter. But, the, iIn any design and any, especially in a program of this magnitude, the first products that you ship are very much the most important. It cleans the pipe and proves the existence that the designs are real and the products are working. We have seen continued progress also in our vision chips. Basically, the drivers are coming from the ADAS side. Our IND880 processor has been super successful, and now that we're beginning to bring to market a version of that chip, which also has an AI edge processor integrated in it, we're seeing continued momentum in that space also. And then a follow-up to the prior question just on the arc of radar through time, and it sounds like it just continues to scale from what could be $30 million-$50 million through 2029. But I think we've talked about this business being a $100 million business in the past on an annualized basis. Are you starting to get visibility on when we could get that? And would that be 2028? Or would it be potentially sooner or really when we get out to 2029? I mean, I think the answer to your question is yes. We are getting continued visibility improvement in this as we progress through the whole process of deployment. I mean, we're. It's probably a little early to call exactly when, what date that we cross $100 million, but, I mean, we are feeling increasingly confident and positive about where we're going with this right now. And, I mean, it's kind of driving us crazy, the amount of support work that we're having to do and the amount of supply chain expansion that we're having to do in order to prepare for it. So, I mean, if that gives you an indication of where we think we are, then I hope that's sufficient. Our next question is from Cody Acree, with The Benchmark Company. Cody, is your line on mute? I think Cody actually already asked this question. Yeah. Yeah, actually, I've just had a quick follow-up, Donald. Sorry, I was on mute. That's all right. Just your comment, lastly, about increasing your supply side. Last quarter, you mentioned your efforts to do a double source for some of your customer requests. Can you just update us on the progress there and just what are you looking forward to on spending for that? I mean, from packaging side, we enabled a new substrate supplier and also a new packaging house. So basically, now we have four combinations of substrate and packaging house that we can use. We do expect that we will also, for some of the very large volume programs, such as the radar program, bring on second source foundries, particularly as we need to have China for China and non-China for non-China supply base in that space. And I think, I mean, in answer to your question, in the short term, we have had a little bit of increased OpEx, which we signaled in the last quarter in order to cover some of that, which has now run through the books. At this point, we're basically seeing our OpEx remaining reasonably flat through 2026. There may be a couple of bumps in the road as we spend on tooling, but it's, you know, each bump is probably, I mean, less than $1 million. Thank you. There are no further questions at this time. I would like to hand the floor back over to Donald McClymont for any closing comments. Well, thanks, everybody, for attending, and hope to see you at the conferences in the next few weeks. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker 7: Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 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 call is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead. Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 earnings call. good afternoon and welcome to indie semiconductor's fourth quarter 2025 earnings call Currently, all participants are in a listen-only mode. currently all participants are in a listen-only mode A question-and-answer session will follow the formal presentation. a question-and-answer session will follow the formal presentation As a reminder, this conference call is being recorded. as a reminder this conference call is being recorded I will now turn the call over to Ashish Gupta, Investor Relations. i will now turn the call over to ashish gupta investor relations Mr. Gupta, please go ahead. mr gupta please go ahead

Speaker 2: Thank you operator. Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 earnings call. Joining me today are Don McClymont, indie's CEO and Co-Founder, Naixi Wu, indie's CFO, and Mark Tyndall, EVP of Corporate Development and Investor Relations. Don will provide opening remarks and discuss business highlights. Naixi will then provide a review of indie's Q4 results and business outlook. Please note that we'll be making forward-looking statements based on our 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. Thank you operator. thank you operator Good afternoon, and welcome to indie Semiconductor's fourth quarter 2025 earnings call. good afternoon and welcome to indie semiconductor's fourth quarter 2025 earnings call Joining me today are Don McClymont, indie's CEO and Co-Founder, Naixi Wu, indie's CFO, and Mark Tyndall, EVP of Corporate Development and Investor Relations. joining me today are don mcclymont indie's ceo and co-founder naixi wu indie's cfo and mark tyndall evp of corporate development and investor relations Don will provide opening remarks and discuss business highlights. don will provide opening remarks and discuss business highlights Naixi will then provide a review of indie's Q4 results and business outlook. naixi will then provide a review of indie's q4 results and business outlook Please note that we'll be making forward-looking statements based on our current expectations and assumptions, which are subject to risks and uncertainties. please note that we'll be making forward-looking statements based on our 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 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. 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 and annual report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. 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. For a complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q4 earnings press release in addition to a presentation summarizing our quarterly results and more details on our non-GAAP measures as posted on our website in advance of this call at www.indiesemi.com. I'll now turn the call over to Don. For material risks and other important factors that could affect our financial results, please review our risk factors and annual report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. for material risks and other important factors that could affect our financial results please review our risk factors and annual report on form 10-k for the fiscal year ended december 31 2024 as supplemented by our quarterly reports on form 10-q as well as other public reports filed with the sec 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. 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 For a complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q4 earnings press release in addition to a presentation summarizing our quarterly results and more details on our non-GAAP measures as posted on our website in advance of this call at www.indiesemi.com. for a complete reconciliation to gaap and the definition of the non-gaap reconciling items please see our q4 earnings press release in addition to a presentation summarizing our quarterly results and more details on our non-gaap measures as posted on our website in advance of this call at www.indiesemi.com I'll now turn the call over to Don. i'll now turn the call over to don

Speaker 5: Thanks, Ashish, and welcome, everybody. Indie delivered a solid fourth quarter with revenue of $58 million, exceeding the midpoint of our outlook by $1 million and up 8% sequentially. Let me provide some context on the market environment before turning to our business achievements. First, on our markets, the automotive industry is entering a pivotal new phase as ADAS, or Advanced Driver-Assistance Systems, and automated driving and safety functionality are rapidly maturing beyond optional or premium features and into standardization at L2 and above. OEMs across all vehicle classes are recognizing that consumers expect a baseline of active safety features, including lane assist, automatic emergency braking, blind spot detection, and collision warnings. These trends reveal a market undergoing structural transformation, where software-defined intelligence, regulatory readiness, and scalable sensor technology are reshaping the competitive landscape. Thanks, Ashish, and welcome, everybody. thanks ashish and welcome everybody Indie delivered a solid fourth quarter with revenue of $58 million, exceeding the midpoint of our outlook by $1 million and up 8% sequentially. indie delivered a solid fourth quarter with revenue of $58 million exceeding the midpoint of our outlook by $1 million and up 8% sequentially Let me provide some context on the market environment before turning to our business achievements. let me provide some context on the market environment before turning to our business achievements First, on our markets, the automotive industry is entering a pivotal new phase as ADAS, or Advanced Driver- Assistance Systems, and automated driving and safety functionality are rapidly maturing beyond optional or premium features and into standardization at L2 and above. first on our markets the automotive industry is entering a pivotal new phase as adas or advanced driver- assistance systems and automated driving and safety functionality are rapidly maturing beyond optional or premium features and into standardization at l2 and above OEMs across all vehicle classes are recognizing that consumers expect a baseline of active safety features, including lane assist, automatic emergency braking, blind spot detection, and collision warnings. oems across all vehicle classes are recognizing that consumers expect a baseline of active safety features including lane assist automatic emergency braking blind spot detection and collision warnings These trends reveal a market undergoing structural transformation, where software-defined intelligence, regulatory readiness, and scalable sensor technology are reshaping the competitive landscape. these trends reveal a market undergoing structural transformation where software-defined intelligence regulatory readiness and scalable sensor technology are reshaping the competitive landscape This continues to present a significant opportunity for indie to capitalize on by leveraging its technology investments for the readiness of these Mass-Market ADAS Segments. Additionally, the humanoid robotics market is rapidly transitioning from research labs to industrial and real-life applications. This creates exciting opportunities that we're actively pursuing today, and we plan to expand our activities here going forward. Our ADAS and automotive technologies align perfectly with humanoid sensing requirements by providing the robot eyes and ears. To that end, we are already seeing strong adoption of our radar vision and even interface solutions by industry leaders both in the U.S. and China. For example, our vision products have been deployed by companies including Figure AI and Unitree, among others. This continues to present a significant opportunity for indie to capitalize on by leveraging its technology investments for the readiness of these Mass-Market ADAS Segments. this continues to present a significant opportunity for indie to capitalize on by leveraging its technology investments for the readiness of these mass-market adas segments Additionally, the humanoid robotics market is rapidly transitioning from research labs to industrial and real-life applications. additionally the humanoid robotics market is rapidly transitioning from research labs to industrial and real-life applications This creates exciting opportunities that we're actively pursuing today, and we plan to expand our activities here going forward. this creates exciting opportunities that we're actively pursuing today and we plan to expand our activities here going forward Our ADAS and automotive technologies align perfectly with humanoid sensing requirements by providing the robot eyes and ears. our adas and automotive technologies align perfectly with humanoid sensing requirements by providing the robot eyes and ears To that end, we are already seeing strong adoption of our radar vision and even interface solutions by industry leaders both in the U.S. and China. to that end we are already seeing strong adoption of our radar vision and even interface solutions by industry leaders both in the u.s and china For example, our vision products have been deployed by companies including Figure AI and Unitree, among others. for example our vision products have been deployed by companies including figure ai and unitree among others Powered by breakthrough advances in embodied AI, evolving workforce needs, and decreasing manufacturing costs through shared automotive components, this dynamic industry is accelerating towards becoming a major global economic driver by the 2030s. Let me now turn to our recent business progress and key achievements during the past quarter. Beginning with radar, our Tier 1 partner, who launched their Gen 8 77 GHz radar solution in Q4, is rapidly gaining strong commercial traction with even more global OEMs, including car manufacturers from Northern and Central Europe, North America, Japan, China, and India, with models ranging from entry-level through mid-tier, high-end passenger cars, and all the way to high-value commercial vehicles. The indie-based solution delivers far superior performance and cost basis compared to competing and previous generation products. Additionally, earning acclaim at CES this January. Powered by breakthrough advances in embodied AI, evolving workforce needs, and decreasing manufacturing costs through shared automotive components, this dynamic industry is accelerating towards becoming a major global economic driver by the 2030s. powered by breakthrough advances in embodied ai evolving workforce needs and decreasing manufacturing costs through shared automotive components this dynamic industry is accelerating towards becoming a major global economic driver by the 2030s Let me now turn to our recent business progress and key achievements during the past quarter. let me now turn to our recent business progress and key achievements during the past quarter Beginning with radar, our Tier 1 partner, who launched their Gen 8 77 GHz radar solution in Q4, is rapidly gaining strong commercial traction with even more global OEMs, including car manufacturers from Northern and Central Europe, North America, Japan, China, and India, with models ranging from entry-level through mid-tier, high-end passenger cars, and all the way to high-value commercial vehicles. beginning with radar our tier 1 partner who launched their gen 8 77 ghz radar solution in q4 is rapidly gaining strong commercial traction with even more global oems including car manufacturers from northern and central europe north america japan china and india with models ranging from entry-level through mid-tier high-end passenger cars and all the way to high-value commercial vehicles The indie-based solution delivers far superior performance and cost basis compared to competing and previous generation products. the indie-based solution delivers far superior performance and cost basis compared to competing and previous generation products Additionally, earning acclaim at CES this January. additionally earning acclaim at ces this january We began initial shipments to our Tier 1 partner in December as planned and are scaling production to fulfill the massive opportunity, estimated at well above 50 million units and annual demand once we are beyond the ramp-up phase. To support this ramp and mitigate allocation issues, we're expanding our production capabilities, including porting designs to second-source foundries here in the U.S., satisfying local supply sourcing demands. We are also securing additional back-end and test capacity at multiple suppliers to be prepared for the ramp. With these measures in place, indie will be well-positioned to fulfill the growing demand. Looking ahead, we are now in the midst of the definition of our next-generation radar platforms, which will deliver further competitive advantage in performance, cost, and functionality significantly beyond current levels. We began initial shipments to our Tier 1 partner in December as planned and are scaling production to fulfill the massive opportunity, estimated at well above 50 million units and annual demand once we are beyond the ramp-up phase. we began initial shipments to our tier 1 partner in december as planned and are scaling production to fulfill the massive opportunity estimated at well above 50 million units and annual demand once we are beyond the ramp-up phase To support this ramp and mitigate allocation issues, we're expanding our production capabilities, including porting designs to second-source foundries here in the U.S., satisfying local supply sourcing demands. to support this ramp and mitigate allocation issues we're expanding our production capabilities including porting designs to second-source foundries here in the u.s satisfying local supply sourcing demands We are also securing additional back-end and test capacity at multiple suppliers to be prepared for the ramp. we are also securing additional back-end and test capacity at multiple suppliers to be prepared for the ramp With these measures in place, indie will be well-positioned to fulfill the growing demand. with these measures in place indie will be well-positioned to fulfill the growing demand Looking ahead, we are now in the midst of the definition of our next-generation radar platforms, which will deliver further competitive advantage in performance, cost, and functionality significantly beyond current levels. looking ahead we are now in the midst of the definition of our next-generation radar platforms which will deliver further competitive advantage in performance cost and functionality significantly beyond current levels Overall, I'm extremely pleased with the progress of the current generation radar rollout and expect momentum to build through 2026 and beyond. Within our vision portfolio, we see continued momentum for with design wins for our industry-leading image signal processor SoCs, including our IND880 and our AI-based edge processor. Our DRAM-less architecture is creating new opportunities for us, as it allows our customers to overcome the current memory supply issues, while reducing the bill of materials and lowering system resource demands on AI processors. With this technology, we have secured new design wins in e-mirror and camera mirror systems of leading tier ones across passenger vehicles and trucks, with production beginning in late 2026 and continuing for several years. Overall, I'm extremely pleased with the progress of the current generation radar rollout and expect momentum to build through 2026 and beyond. overall i'm extremely pleased with the progress of the current generation radar rollout and expect momentum to build through 2026 and beyond Within our vision portfolio, we see continued momentum for with design wins for our industry-leading image signal processor SoCs, including our IND880 and our AI-based edge processor. within our vision portfolio we see continued momentum for with design wins for our industry-leading image signal processor socs including our ind880 and our ai-based edge processor Our DRAM-less architecture is creating new opportunities for us, as it allows our customers to overcome the current memory supply issues, while reducing the bill of materials and lowering system resource demands on AI processors. our dram-less architecture is creating new opportunities for us as it allows our customers to overcome the current memory supply issues while reducing the bill of materials and lowering system resource demands on ai processors With this technology, we have secured new design wins in e-mirror and camera mirror systems of leading tier ones across passenger vehicles and trucks, with production beginning in late 2026 and continuing for several years. with this technology we have secured new design wins in e-mirror and camera mirror systems of leading tier ones across passenger vehicles and trucks with production beginning in late 2026 and continuing for several years Within the China market, we have recently secured a design win with the leading electric vehicle manufacturer with our IND880 for a camera mirror system, which is expected to start ramping towards the middle of 2026. This is a very critical design win for indie, as we believe it will open more strategic opportunities going forward for our ADAS portfolio at this key customer. In Q4, indie completed the integration of emotion3D, creating a powerful ecosystem that unites AI-based perception algorithms with our hardware SoC capabilities, offering flexible standalone or integrated solutions within the cabin for driver and occupancy monitoring. Additionally, we have recently announced a strategic partnership with Mahindra, a leading Indian passenger and commercial vehicle manufacturer, for the supply of our perception software for their electric origin SUV series, including XEV 9e and BE 6. Within the China market, we have recently secured a design win with the leading electric vehicle manufacturer with our IND880 for a camera mirror system, which is expected to start ramping towards the middle of 2026. within the china market we have recently secured a design win with the leading electric vehicle manufacturer with our ind880 for a camera mirror system which is expected to start ramping towards the middle of 2026 This is a very critical design win for indie, as we believe it will open more strategic opportunities going forward for our ADAS portfolio at this key customer. this is a very critical design win for indie as we believe it will open more strategic opportunities going forward for our adas portfolio at this key customer In Q4, indie completed the integration of emotion3D, creating a powerful ecosystem that unites AI-based perception algorithms with our hardware SoC capabilities, offering flexible standalone or integrated solutions within the cabin for driver and occupancy monitoring. in q4 indie completed the integration of emotion3d creating a powerful ecosystem that unites ai-based perception algorithms with our hardware soc capabilities offering flexible standalone or integrated solutions within the cabin for driver and occupancy monitoring Additionally, we have recently announced a strategic partnership with Mahindra, a leading Indian passenger and commercial vehicle manufacturer, for the supply of our perception software for their electric origin SUV series, including XEV 9e and BE 6. additionally we have recently announced a strategic partnership with mahindra a leading indian passenger and commercial vehicle manufacturer for the supply of our perception software for their electric origin suv series including xev 9e and be 6 From our Photonics business unit, we were awarded a design win, including NRE, for a distributed feedback laser for a LiDAR application outside of the automotive market, potentially opening new opportunities in diverse market applications where high precision, high-speed 3D spatial information for real-time detection is critical. In addition, we have secured our largest booking of LXM lasers to date, supporting key customers in quantum communications and sensing, as our success continues in this adjacent quantum market. Within our power group, the Qi 2.0 wireless charging platform production with Ford remains on track for the first half of 2026, with adoption from multiple subsequent OEMs expected to follow. Indie is already gaining significant traction for our Qi 2.2 25-watt wireless charging solution, which offers seamless scalability via firmware upgrade. From our Photonics business unit, we were awarded a design win, including NRE, for a distributed feedback laser for a LiDAR application outside of the automotive market, potentially opening new opportunities in diverse market applications where high precision, high-speed 3D spatial information for real-time detection is critical. from our photonics business unit we were awarded a design win including nre for a distributed feedback laser for a lidar application outside of the automotive market potentially opening new opportunities in diverse market applications where high precision high-speed 3d spatial information for real-time detection is critical In addition, we have secured our largest booking of LXM lasers to date, supporting key customers in quantum communications and sensing, as our success continues in this adjacent quantum market. in addition we have secured our largest booking of lxm lasers to date supporting key customers in quantum communications and sensing as our success continues in this adjacent quantum market Within our power group, the Qi 2.0 wireless charging platform production with Ford remains on track for the first half of 2026, with adoption from multiple subsequent OEMs expected to follow. within our power group the qi 2.0 wireless charging platform production with ford remains on track for the first half of 2026 with adoption from multiple subsequent oems expected to follow Indie is already gaining significant traction for our Qi 2.2 25-watt wireless charging solution, which offers seamless scalability via firmware upgrade. indie is already gaining significant traction for our qi 2.2 25-watt wireless charging solution which offers seamless scalability via firmware upgrade Moving to the Qi 2.2 solution enables faster power delivery, stronger magnetic alignment, and broader device interoperability without replacing hardware, making this a highly attractive solution for customers and partners. This product is already demonstrating strength, as evidenced by a leading Tier 1 wireless charging partner upscaling to our Qi 2.2 platform with another North American OEM. Recall, on our previous call, we highlighted the shortage of package substrates prevalent in the industry, caused by ever-increasing demand for AI chips. We are pleased to report we have made meaningful progress by qualifying second source package and substrate vendors. However, we expect the broader supply environment to remain constrained, and we will need to remain laser-focused to manage the situation through 2026. I will now turn the call over to Naixi for a review of our Q4 results and business outlook. Moving to the Qi 2.2 solution enables faster power delivery, stronger magnetic alignment, and broader device interoperability without replacing hardware, making this a highly attractive solution for customers and partners. moving to the qi 2.2 solution enables faster power delivery stronger magnetic alignment and broader device interoperability without replacing hardware making this a highly attractive solution for customers and partners This product is already demonstrating strength, as evidenced by a leading Tier 1 wireless charging partner upscaling to our Qi 2.2 platform with another North American OEM. this product is already demonstrating strength as evidenced by a leading tier 1 wireless charging partner upscaling to our qi 2.2 platform with another north american oem Recall, on our previous call, we highlighted the shortage of package substrates prevalent in the industry, caused by ever-increasing demand for AI chips. recall on our previous call we highlighted the shortage of package substrates prevalent in the industry caused by ever-increasing demand for ai chips We are pleased to report we have made meaningful progress by qualifying second source package and substrate vendors. we are pleased to report we have made meaningful progress by qualifying second source package and substrate vendors However, we expect the broader supply environment to remain constrained, and we will need to remain laser-focused to manage the situation through 2026. however we expect the broader supply environment to remain constrained and we will need to remain laser-focused to manage the situation through 2026 I will now turn the call over to Naixi for a review of our Q4 results and business outlook. i will now turn the call over to naixi for a review of our q4 results and business outlook

Speaker 6: Thank you, Donald, and good afternoon, everyone. Indie's fourth quarter revenue was $58 million, exceeding the midpoint of our outlook by $1 million, representing sequential growth of approximately 8% and flat compared to the prior year period, bringing our Full Year Revenue to $217.4 million. The non-GAAP operating expenses during the quarter totaled $36.8 million, consistent with our outlook, thereby achieving our goal of $8 million-$10 million savings. As a result, our fourth quarter non-GAAP operating loss was $10.1 million, compared to $11.3 million last quarter and $14.2 million a year ago, demonstrating our continued progress towards achieving profitability. Thank you, Donald, and good afternoon, everyone. thank you donald and good afternoon everyone Indie's fourth quarter revenue was $58 million, exceeding the midpoint of our outlook by $1 million, representing sequential growth of approximately 8% and flat compared to the prior year period, bringing our Full Year Revenue to $217.4 million. indie's fourth quarter revenue was $58 million exceeding the midpoint of our outlook by $1 million representing sequential growth of approximately 8% and flat compared to the prior year period bringing our full year revenue to $217.4 million The non-GAAP operating expenses during the quarter totaled $36.8 million, consistent with our outlook, thereby achieving our goal of $8 million-$10 million savings. the non-gaap operating expenses during the quarter totaled $36.8 million consistent with our outlook thereby achieving our goal of $8 million-$10 million savings As a result, our fourth quarter non-GAAP operating loss was $10.1 million, compared to $11.3 million last quarter and $14.2 million a year ago, demonstrating our continued progress towards achieving profitability. as a result our fourth quarter non-gaap operating loss was $10.1 million compared to $11.3 million last quarter and $14.2 million a year ago demonstrating our continued progress towards achieving profitability With net interest expense of $2.3 million, our net loss was $12.4 million, and loss per share was $0.07 on a base of 220.4 million shares. Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures. Turning to the balance sheet, we exited the quarter with total cash and cash equivalents, including restricted cash, of $155.7 million, a $15.5 million decrease versus the third quarter, of which $6.8 million was used for our semi-annual interest payment on the outstanding convertible notes. With net interest expense of $2.3 million, our net loss was $12.4 million, and loss per share was $0.07 on a base of 220.4 million shares. with net interest expense of $2.3 million our net loss was $12.4 million and loss per share was $0.07 on a base of 220.4 million shares Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures. please refer to the presentation located on our website for a more detailed breakdown of non-gaap measures Turning to the balance sheet, we exited the quarter with total cash and cash equivalents, including restricted cash, of $155.7 million, a $15.5 million decrease versus the third quarter, of which $6.8 million was used for our semi-annual interest payment on the outstanding convertible notes. turning to the balance sheet we exited the quarter with total cash and cash equivalents including restricted cash of $155.7 million a $15.5 million decrease versus the third quarter of which $6.8 million was used for our semi-annual interest payment on the outstanding convertible notes As you may recall, in the fourth quarter, we announced that indie had entered into a definitive agreement with United Faith Auto-Engineering Co., Ltd., or UFA, a publicly listed company in China, to sell our entire outstanding equity interest in Wuxi Indie Micro for growth proceeds of approximately $135 million, payable in cash upon closing, net of applicable taxes and fees. The transaction continues to progress towards closing. As part of the customary closing conditions, USAE obtained its requisite shareholder approval in late 2025. The transaction remains subject to regulatory approval in China, including both Shenzhen Stock Exchange and CSRC. While the timing of the closing remains uncertain, we continue to be optimistic that it will occur by the late 2026 timeline we previously communicated. As you may recall, in the fourth quarter, we announced that indie had entered into a definitive agreement with United Faith Auto-Engineering Co., Ltd., or UFA , a publicly listed company in China, to sell our entire outstanding equity interest in Wuxi Indie Micro for growth proceeds of approximately $135 million, payable in cash upon closing, net of applicable taxes and fees. as you may recall in the fourth quarter we announced that indie had entered into a definitive agreement with united faith auto-engineering co., ltd., or ufa a publicly listed company in china to sell our entire outstanding equity interest in wuxi indie micro for growth proceeds of approximately $135 million payable in cash upon closing net of applicable taxes and fees The transaction continues to progress towards closing. the transaction continues to progress towards closing As part of the customary closing conditions, USAE obtained its requisite shareholder approval in late 2025. as part of the customary closing conditions usae obtained its requisite shareholder approval in late 2025 The transaction remains subject to regulatory approval in China, including both Shenzhen Stock Exchange and CSRC. the transaction remains subject to regulatory approval in china including both shenzhen stock exchange and csrc While the timing of the closing remains uncertain, we continue to be optimistic that it will occur by the late 2026 timeline we previously communicated. while the timing of the closing remains uncertain we continue to be optimistic that it will occur by the late 2026 timeline we previously communicated Moving to our outlook for the first quarter of 2026, we expect to deliver total revenues between $52 million-$58 million, with $55 million at the midpoint. We anticipate a decline in first quarter revenue from Wuxi to $21 million due to a lower demand from reduced EV subsidies and the Chinese New Year shutdown. However, we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint. We expect our non-GAAP operating expenses to be $37 million for Q1, relatively flat to Q4 2025, assuming a net interest expense of approximately $2.6 million with no tax expenses, we expect a $0.07 net loss per share based on 223 million shares at the midpoint of the revenue range. Moving to our outlook for the first quarter of 2026, we expect to deliver total revenues between $52 million-$58 million, with $55 million at the midpoint. moving to our outlook for the first quarter of 2026 we expect to deliver total revenues between $52 million-$58 million with $55 million at the midpoint We anticipate a decline in first quarter revenue from Wuxi to $21 million due to a lower demand from reduced EV subsidies and the Chinese New Year shutdown. we anticipate a decline in first quarter revenue from wuxi to $21 million due to a lower demand from reduced ev subsidies and the chinese new year shutdown However, we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint. however we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint We expect our non-GAAP operating expenses to be $37 million for Q1, relatively flat to Q4 2025, assuming a net interest expense of approximately $2.6 million with no tax expenses, we expect a $0.07 net loss per share based on 223 million shares at the midpoint of the revenue range. we expect our non-gaap operating expenses to be $37 million for q1 relatively flat to q4 2025 assuming a net interest expense of approximately $2.6 million with no tax expenses we expect a $0.07 net loss per share based on 223 million shares at the midpoint of the revenue range From a financial perspective, with our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indie is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026. With that, I will turn the call back to Donald for closing remarks. From a financial perspective, with our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of Wuxi, indie is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026. from a financial perspective with our strong focus on managing operating expenses and our solid balance sheet including anticipated proceeds from the sale of wuxi indie is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026 With that, I will turn the call back to Donald for closing remarks. with that i will turn the call back to donald for closing remarks

Speaker 5: Thank you, Naixi. Our core business remains solid, as evidenced by strong fourth quarter results. Radar and vision programs remain firmly on track, highlighted by our Tier 1 partner's recent release of their advanced Gen 8 radar product, growing commercial adoption and our first radar chipset shipments late in the quarter. With the addition of high growth adjacent markets such as quantum sensing and humanoid robotics, Indie's technology leadership and expanding product portfolio positions us well to drive growth. We believe no other semiconductor company offers a product portfolio as well suited as Indie's to meet the diverse sensing needs of these emerging markets. Thank you, Naixi. thank you naixi Our core business remains solid, as evidenced by strong fourth quarter results. our core business remains solid as evidenced by strong fourth quarter results Radar and vision programs remain firmly on track, highlighted by our Tier 1 partner's recent release of their advanced Gen 8 radar product, growing commercial adoption and our first radar chipset shipments late in the quarter. radar and vision programs remain firmly on track highlighted by our tier 1 partner's recent release of their advanced gen 8 radar product growing commercial adoption and our first radar chipset shipments late in the quarter With the addition of high growth adjacent markets such as quantum sensing and humanoid robotics, Indie's technology leadership and expanding product portfolio positions us well to drive growth. with the addition of high growth adjacent markets such as quantum sensing and humanoid robotics indie's technology leadership and expanding product portfolio positions us well to drive growth We believe no other semiconductor company offers a product portfolio as well suited as Indie's to meet the diverse sensing needs of these emerging markets. we believe no other semiconductor company offers a product portfolio as well suited as indie's to meet the diverse sensing needs of these emerging markets That concludes our prepared remarks. Operator, please open the line for questions. That concludes our prepared remarks. that concludes our prepared remarks Operator, please open the line for questions. operator please open the line for questions

Speaker 7: Thank you. We'll now be conducting a question and answer session. If you'd 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 your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Thank you. Our first question is from Cody Acree with The Benchmark Company. Thank you. thank you We'll now be conducting a question and answer session. we'll now be conducting a question and answer session If you'd like to ask a question, please press star one on your telephone keypad. if you'd 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. a confirmation tone will indicate your line is in the question queue You may press star two to remove your question from the queue. you may press star two to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys One moment please, while we poll for questions. one moment please while we poll for questions Thank you. thank you Our first question is from Cody Acree with The Benchmark Company. our first question is from cody acree with the benchmark company

Speaker 3: Thanks, guys, for taking my questions, and congrats on the progress. Naixi, just one point of clarification. Can you give me the Wuxi revenue for Q4? Thanks, guys, for taking my questions, and congrats on the progress. thanks guys for taking my questions and congrats on the progress Naixi, just one point of clarification. naixi just one point of clarification Can you give me the Wuxi revenue for Q4? can you give me the wuxi revenue for q4

Speaker 6: Yeah, it was around $29.7 million. Yeah, it was around $29.7 million. yeah it was around $29.7 million

Speaker 3: Could you just maybe go through the reasons again for the sequential decline, and then what do you expect that to do, looking into Q2? Could you just maybe go through the reasons again for the sequential decline, and then what do you expect that to do, looking into Q2? could you just maybe go through the reasons again for the sequential decline and then what do you expect that to do looking into q2

Speaker 6: The decline mostly has to do with the upcoming Chinese New Year shutdown and the reduced EV subsidies, that the local people are getting. The decline mostly has to do with the upcoming Chinese New Year shutdown and the reduced EV subsidies, that the local people are getting. the decline mostly has to do with the upcoming chinese new year shutdown and the reduced ev subsidies that the local people are getting

Speaker 3: And any color on expected ramp in into Q2? And any color on expected ramp in into Q2? and any color on expected ramp in into q2

Speaker 5: I mean, we do expect it to recover in Q2. As of course, you know, we're in the process of selling that business. But yeah, we do expect it to bounce a little bit in Q2. I mean, we do expect it to recover in Q2. i mean we do expect it to recover in q2 As of course, you know, we're in the process of selling that business. as of course you know we're in the process of selling that business But yeah, we do expect it to bounce a little bit in Q2. but yeah we do expect it to bounce a little bit in q2

Speaker 3: Okay, great. Thanks. And Donald, maybe can you just provide any further color on the slope or the ramp of your radar programs that you're expecting for the balance of 2026? Okay, great. okay great Thanks. thanks And Donald, maybe can you just provide any further color on the slope or the ramp of your radar programs that you're expecting for the balance of 2026? and donald maybe can you just provide any further color on the slope or the ramp of your radar programs that you're expecting for the balance of 2026

Speaker 5: Well, I mean, since last we talked, we've made phenomenal progress together with the customer. We see the traction through the OEMs just getting ever stronger. So we feel absolutely phenomenal about where we are with the program. In fact, we're also really beginning now the discussions on what comes next for the next generation. But, I mean, the OEM traction has just been off the charts, and it gives us a good problem to solve. We need to focus now on making sure that our supply chain is robust enough to support the ramp that we expect, but we feel we're in a really good spot right now. Well, I mean, since last we talked, we've made phenomenal progress together with the customer. well i mean since last we talked we've made phenomenal progress together with the customer We see the traction through the OEMs just getting ever stronger. we see the traction through the oems just getting ever stronger So we feel absolutely phenomenal about where we are with the program. so we feel absolutely phenomenal about where we are with the program In fact, we're also really beginning now the discussions on what comes next for the next generation. in fact we're also really beginning now the discussions on what comes next for the next generation But, I mean, the OEM traction has just been off the charts, and it gives us a good problem to solve. but i mean the oem traction has just been off the charts and it gives us a good problem to solve We need to focus now on making sure that our supply chain is robust enough to support the ramp that we expect, but we feel we're in a really good spot right now. we need to focus now on making sure that our supply chain is robust enough to support the ramp that we expect but we feel we're in a really good spot right now

Speaker 3: And just to follow up there, the constraints that you're feeling still on substrates and packaging, what impact do you expect that to have in the first quarter? And just to follow up there, the constraints that you're feeling still on substrates and packaging, what impact do you expect that to have in the first quarter? and just to follow up there the constraints that you're feeling still on substrates and packaging what impact do you expect that to have in the first quarter

Speaker 5: I mean, it had a little bit of a trailing impact into the first quarter. And I mean, we, it's the, the product portfolio, basically, in the, in the type of products that had substrate exposure, did have some risk mitigation in it. So some products that we had inventory of shipped, probably there was maybe a little bit less than a million of demand that, that is still questionable that we might get or not based on, based on supply. But we've made some significant progress versus, versus Q4, where it, it affected around $5 million in that quarter. I mean, it had a little bit of a trailing impact into the first quarter. i mean it had a little bit of a trailing impact into the first quarter And I mean, we, it's the, the product portfolio, basically, in the, in the type of products that had substrate exposure, did have some risk mitigation in it. and i mean we it's the the product portfolio basically in the in the type of products that had substrate exposure did have some risk mitigation in it So some products that we had inventory of shipped, probably there was maybe a little bit less than a million of demand that, that is still questionable that we might get or not based on, based on supply. so some products that we had inventory of shipped probably there was maybe a little bit less than a million of demand that that is still questionable that we might get or not based on based on supply But we've made some significant progress versus, versus Q4, where it, it affected around $5 million in that quarter. but we've made some significant progress versus versus q4 where it it affected around $5 million in that quarter

Speaker 3: Excellent. Thank you. Excellent. excellent Thank you. thank you

Speaker 7: Our next question is from Suji De Silva with ROTH Capital Partners. Our next question is from Suji De Silva with ROTH Capital Partners. our next question is from suji de silva with roth capital partners

Speaker 8: Hi, Donald. Hi, Naixi. Congratulations on the progress here on the Tier 1. Donald, you've given us, us backlog numbers in the past. Any update there? Any new design wins to talk about? I know you have at least two big programs coming, but, any, any color there would be helpful. Hi, Donald. hi donald Hi, Naixi. hi naixi Congratulations on the progress here on the Tier 1. congratulations on the progress here on the tier 1 Donald, you've given us, us backlog numbers in the past. donald you've given us us backlog numbers in the past Any update there? any update there Any new design wins to talk about? any new design wins to talk about I know you have at least two big programs coming, but, any, any color there would be helpful. i know you have at least two big programs coming but any any color there would be helpful

Speaker 5: Yeah, I mean, you know, as we know, we only really update our strategic backlog once a year. You can see from the script that we did make some progress on the sales side and add some new discrete designs out with the larger programs. We do expect that the sell-through into the OEMs from the large radar program also will increase over time. And you know, we've seen a lot of momentum in that during the last quarter, but no full quantifiable update right now. Yeah, I mean, you know, as we know, we only really update our strategic backlog once a year. yeah i mean you know as we know we only really update our strategic backlog once a year You can see from the script that we did make some progress on the sales side and add some new discrete designs out with the larger programs. you can see from the script that we did make some progress on the sales side and add some new discrete designs out with the larger programs We do expect that the sell-through into the OEMs from the large radar program also will increase over time. we do expect that the sell-through into the oems from the large radar program also will increase over time And you know, we've seen a lot of momentum in that during the last quarter, but no full quantifiable update right now. and you know we've seen a lot of momentum in that during the last quarter but no full quantifiable update right now

Speaker 8: Okay. All right. Thank you, Donald. And then, you know, aside from Wuxi in China, can you talk about the progress there in terms of design wins and traction for your products, for the core part of the business? Okay. okay All right. all right Thank you, Donald. thank you donald And then, you know, aside from Wuxi in China, can you talk about the progress there in terms of design wins and traction for your products, for the core part of the business? and then you know aside from wuxi in china can you talk about the progress there in terms of design wins and traction for your products for the core part of the business

Speaker 5: Yeah, I mean, you know, we're doing well in all regions. I mean, again, I mentioned in the script that, you know, we have exposure to OEMs, spaced over, all parts of Europe, also, in Asia, China, even India, actually, as part of that. So, I mean, we're feeling, you know, very good about where we are generally worldwide. Yeah, I mean, you know, we're doing well in all regions. yeah i mean you know we're doing well in all regions I mean, again, I mentioned in the script that, you know, we have exposure to OEMs, spaced over, all parts of Europe, also, in Asia, China, even India, actually, as part of that. i mean again i mentioned in the script that you know we have exposure to oems spaced over all parts of europe also in asia china even india actually as part of that So, I mean, we're feeling, you know, very good about where we are generally worldwide. so i mean we're feeling you know very good about where we are generally worldwide

Speaker 7: Our next question is from John Tanwanteng with CJS Securities. Our next question is from John Tanwanteng with CJS Securities. our next question is from john tanwanteng with cjs securities

Speaker 9: Hi, this is Will in for John. Is there any update on the size of the opportunity within robotics and drones or in the quantum space, and if or when those can become significant contributors? Hi, this is Will in for John. hi this is will in for john Is there any update on the size of the opportunity within robotics and drones or in the quantum space, and if or when those can become significant contributors? is there any update on the size of the opportunity within robotics and drones or in the quantum space and if or when those can become significant contributors

Speaker 5: Well, the robotics space is hard to call, but, I mean, we are just seeing a phenomenal amount of activity in that space. The products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications. So, you know, we are very optimistic about it. You know, we do feel that it can be a very material market as we progress through the rest of this decade. In terms of quantum, that's a little bit easier for us to quantify. We are beginning to make some significant traction in that space. We shipped about $1 million worth of optical products in that application in 2025, and we expect maybe around a trebling of that through 2026. So we are seeing increased momentum in that space also. Well, the robotics space is hard to call, but, I mean, we are just seeing a phenomenal amount of activity in that space. well the robotics space is hard to call but i mean we are just seeing a phenomenal amount of activity in that space The products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications. the products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications So, you know, we are very optimistic about it. so you know we are very optimistic about it You know, we do feel that it can be a very material market as we progress through the rest of this decade. you know we do feel that it can be a very material market as we progress through the rest of this decade In terms of quantum, that's a little bit easier for us to quantify. in terms of quantum that's a little bit easier for us to quantify We are beginning to make some significant traction in that space. we are beginning to make some significant traction in that space We shipped about $1 million worth of optical products in that application in 2025, and we expect maybe around a trebling of that through 2026. we shipped about $1 million worth of optical products in that application in 2025 and we expect maybe around a trebling of that through 2026 So we are seeing increased momentum in that space also. so we are seeing increased momentum in that space also

Speaker 9: Thank you. In regards to the supply chain constraints, can you add some more color on how you're thinking about the timeline to a full resolution? Thank you. thank you In regards to the supply chain constraints, can you add some more color on how you're thinking about the timeline to a full resolution? in regards to the supply chain constraints can you add some more color on how you're thinking about the timeline to a full resolution

Speaker 5: I mean, it's the tightness is really driven by the uptick in AI demand, and so we don't see that really going away anytime soon. From our perspective, just operationally, we're expanding our supply base to make sure that we have significant mitigation for all of the programs that are key to us. And we made some pretty good progress in the last 90 days to address that. We are seeing signs that several suppliers are making investments to improve capacity, likely something that would begin to take effect in 2027. But I mean, at this point, we feel decent about where we are. I mean, it's the tightness is really driven by the uptick in AI demand, and so we don't see that really going away anytime soon. i mean it's the tightness is really driven by the uptick in ai demand and so we don't see that really going away anytime soon From our perspective, just operationally, we're expanding our supply base to make sure that we have significant mitigation for all of the programs that are key to us. from our perspective just operationally we're expanding our supply base to make sure that we have significant mitigation for all of the programs that are key to us And we made some pretty good progress in the last 90 days to address that. and we made some pretty good progress in the last 90 days to address that We are seeing signs that several suppliers are making investments to improve capacity, likely something that would begin to take effect in 2027. we are seeing signs that several suppliers are making investments to improve capacity likely something that would begin to take effect in 2027 But I mean, at this point, we feel decent about where we are. but i mean at this point we feel decent about where we are We've, as I said, we've made some good progress in bringing on new suppliers, and we hope that we can manage through this 2026 year without really taking any lumps on our side while we get through to 2027. But that's basically the best visibility we have right now. We've, as I said, we've made some good progress in bringing on new suppliers, and we hope that we can manage through this 2026 year without really taking any lumps on our side while we get through to 2027. we've as i said we've made some good progress in bringing on new suppliers and we hope that we can manage through this 2026 year without really taking any lumps on our side while we get through to 2027 But that's basically the best visibility we have right now. but that's basically the best visibility we have right now

Speaker 7: Our next question is from Anthony Stoss, with Craig-Hallum. Our next question is from Anthony Stoss, with Craig-Hallum. our next question is from anthony stoss with craig-hallum

Speaker 1: Good afternoon, everybody. Donald, in the past, I think you talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between, I think it was $30 million-$50 million. Perhaps you can give us an update on that. And then, also love to hear, kind of thoughts on just OpEx for the rest of this year on a quarterly basis. Good afternoon, everybody. good afternoon everybody Donald, in the past, I think you talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between, I think it was $30 million-$50 million. donald in the past i think you talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between i think it was $30 million-$50 million Perhaps you can give us an update on that. perhaps you can give us an update on that And then, also love to hear, kind of thoughts on just OpEx for the rest of this year on a quarterly basis. and then also love to hear kind of thoughts on just opex for the rest of this year on a quarterly basis

Speaker 5: Well, I mean, in terms of the radar volume, it's still in that same, same zip code. Nothing really has, has changed in the short term. What we are seeing is just gathering momentum with newer OEMs, which we hadn't really anticipated would be early adopters, and it turns out that, that they are going in that direction. That means that we will have a, a, like a steady and steep ramp over the course of 2026, 2027, 2028 and 2029 even, as some of these design wins, of course, are for, for longer term models, which are out in time. But, yeah, I mean, generally speaking, the, the momentum has, has been strong behind the program, and I, I think you can assume on OpEx side that it's, that it's basically gonna be about flat. Well, I mean, in terms of the radar volume, it's still in that same, same zip code. well i mean in terms of the radar volume it's still in that same same zip code Nothing really has, has changed in the short term. nothing really has has changed in the short term What we are seeing is just gathering momentum with newer OEMs, which we hadn't really anticipated would be early adopters, and it turns out that, that they are going in that direction. what we are seeing is just gathering momentum with newer oems which we hadn't really anticipated would be early adopters and it turns out that that they are going in that direction That means that we will have a, a, like a steady and steep ramp over the course of 2026, 2027, 2028 and 2029 even, as some of these design wins, of course, are for, for longer term models, which are out in time. that means that we will have a a like a steady and steep ramp over the course of 2026 2027 2028 and 2029 even as some of these design wins of course are for for longer term models which are out in time But, yeah, I mean, generally speaking, the, the momentum has, has been strong behind the program, and I, I think you can assume on OpEx side that it's, that it's basically gonna be about flat. but yeah i mean generally speaking the the momentum has has been strong behind the program and i i think you can assume on opex side that it's that it's basically gonna be about flat Maybe a couple of lumps here and there as we, as we invest in tooling, but you know, no more than $1 million±. Maybe a couple of lumps here and there as we, as we invest in tooling, but you know, no more than $1 million± . maybe a couple of lumps here and there as we as we invest in tooling but you know no more than $1 million±

Speaker 1: Gotcha. And then if I could sneak in one more outside of the Wuxi group. Just within your core business, what percentage of that core still remains in China? Gotcha. gotcha And then if I could sneak in one more outside of the Wuxi group. and then if i could sneak in one more outside of the wuxi group Just within your core business, what percentage of that core still remains in China? just within your core business what percentage of that core still remains in china

Speaker 5: Probably, in the 25%-30% range, perhaps. I mean, not quite as high as that anymore, actually. I'm not sure. Probably, in the 25%-30% range, perhaps. probably in the 25%-30% range perhaps I mean, not quite as high as that anymore, actually. i mean not quite as high as that anymore actually I'm not sure. i'm not sure Twenty. Twenty. twenty Yeah, it's a little bit less than that now, probably. Yeah, it's a little bit less than that now, probably. yeah it's a little bit less than that now probably

Speaker 7: Our next question is from Craig Ellis with B. Riley Securities. Our next question is from Craig Ellis with B. our next question is from craig ellis with b Riley Securities. riley securities

Speaker 4: Yeah, thanks for taking the question. Donald, congratulations on the 20% core business growth in the first quarter. Can you just help us understand what the top two or three drivers are to that growth? And is radar on that list, or are we in just smaller volumes in 1Q? Yeah, thanks for taking the question. yeah thanks for taking the question Donald, congratulations on the 20% core business growth in the first quarter. donald congratulations on the 20% core business growth in the first quarter Can you just help us understand what the top two or three drivers are to that growth? can you just help us understand what the top two or three drivers are to that growth And is radar on that list, or are we in just smaller volumes in 1Q? and is radar on that list or are we in just smaller volumes in 1q

Speaker 5: I mean, yeah, radar is still relatively small volume in the last quarter and this quarter. But, the, iIn any design and any, especially in a program of this magnitude, the first products that you ship are very much the most important. It cleans the pipe and proves the existence that the designs are real and the products are working. We have seen continued progress also in our vision chips. Basically, the drivers are coming from the ADAS side. Our IND880 processor has been super successful, and now that we're beginning to bring to market a version of that chip, which also has an AI edge processor integrated in it, we're seeing continued momentum in that space also. I mean, yeah, radar is still relatively small volume in the last quarter and this quarter. i mean yeah radar is still relatively small volume in the last quarter and this quarter But, the, i In any design and any, especially in a program of this magnitude, the first products that you ship are very much the most important. but the, i in any design and any especially in a program of this magnitude the first products that you ship are very much the most important It cleans the pipe and proves the existence that the designs are real and the products are working. it cleans the pipe and proves the existence that the designs are real and the products are working We have seen continued progress also in our vision chips. we have seen continued progress also in our vision chips Basically, the drivers are coming from the ADAS side. basically the drivers are coming from the adas side Our IND880 processor has been super successful, and now that we're beginning to bring to market a version of that chip, which also has an AI edge processor integrated in it, we're seeing continued momentum in that space also. our ind880 processor has been super successful and now that we're beginning to bring to market a version of that chip which also has an ai edge processor integrated in it we're seeing continued momentum in that space also

Speaker 4: And then a follow-up to the prior question just on the arc of radar through time, and it sounds like it just continues to scale from what could be $30 million-$50 million through 2029. But I think we've talked about this business being a $100 million business in the past on an annualized basis. Are you starting to get visibility on when we could get that? And would that be 2028? Or would it be potentially sooner or really when we get out to 2029? And then a follow-up to the prior question just on the arc of radar through time, and it sounds like it just continues to scale from what could be $30 million-$50 million through 2029. and then a follow-up to the prior question just on the arc of radar through time and it sounds like it just continues to scale from what could be $30 million-$50 million through 2029 But I think we've talked about this business being a $100 million business in the past on an annualized basis. but i think we've talked about this business being a $100 million business in the past on an annualized basis Are you starting to get visibility on when we could get that? are you starting to get visibility on when we could get that And would that be 2028? O r would it be potentially sooner or really when we get out to 2029? and would that be 2028? o r would it be potentially sooner or really when we get out to 2029

Speaker 5: I mean, I think the answer to your question is yes. We are getting continued visibility improvement in this as we progress through the whole process of deployment. I mean, we're. It's probably a little early to call exactly when, what date that we cross $100 million, but, I mean, we are feeling increasingly confident and positive about where we're going with this right now. And, I mean, it's kind of driving us crazy, the amount of support work that we're having to do and the amount of supply chain expansion that we're having to do in order to prepare for it. So, I mean, if that gives you an indication of where we think we are, then I hope that's sufficient. I mean, I think the answer to your question is yes. W e are getting continued visibility improvement in this as we progress through the whole process of deployment. i mean i think the answer to your question is yes. w e are getting continued visibility improvement in this as we progress through the whole process of deployment I mean, we're. i mean we're It's probably a little early to call exactly when, what date that we cross $100 million, but, I mean, we are feeling increasingly confident and positive about where we're going with this right now. it's probably a little early to call exactly when what date that we cross $100 million but i mean we are feeling increasingly confident and positive about where we're going with this right now And, I mean, it's kind of driving us crazy, the amount of support work that we're having to do and the amount of supply chain expansion that we're having to do in order to prepare for it. and i mean it's kind of driving us crazy the amount of support work that we're having to do and the amount of supply chain expansion that we're having to do in order to prepare for it So, I mean, if that gives you an indication of where we think we are, then I hope that's sufficient. so i mean if that gives you an indication of where we think we are then i hope that's sufficient

Speaker 7: Our next question is from Cody Acree, with The Benchmark Company. Cody, is your line on mute? Our next question is from Cody Acree, with The Benchmark Company. our next question is from cody acree with the benchmark company Cody, is your line on mute? cody is your line on mute

Speaker 5: I think Cody actually already asked this question. I think Cody actually already asked this question. i think cody actually already asked this question

Speaker 3: Yeah. Yeah, actually, I've just had a quick follow-up, Donald. Sorry, I was on mute. Yeah. yeah Yeah, actually, I've just had a quick follow-up, Donald. yeah actually i've just had a quick follow-up donald Sorry, I was on mute. sorry i was on mute

Speaker 5: That's all right. That's all right. that's all right

Speaker 3: Just your comment, lastly, about increasing your supply side. Last quarter, you mentioned your efforts to do a double source for some of your customer requests. Can you just update us on the progress there and just what are you looking forward to on spending for that? Just your comment, lastly, about increasing your supply side. just your comment lastly about increasing your supply side Last quarter, you mentioned your efforts to do a double source for some of your customer requests. last quarter you mentioned your efforts to do a double source for some of your customer requests Can you just update us on the progress there and just what are you looking forward to on spending for that? can you just update us on the progress there and just what are you looking forward to on spending for that

Speaker 5: I mean, from packaging side, we enabled a new substrate supplier and also a new packaging house. So basically, now we have four combinations of substrate and packaging house that we can use. We do expect that we will also, for some of the very large volume programs, such as the radar program, bring on second source foundries, particularly as we need to have China for China and non-China for non-China supply base in that space. And I think, I mean, in answer to your question, in the short term, we have had a little bit of increased OpEx, which we signaled in the last quarter in order to cover some of that, which has now run through the books. I mean, from packaging side, we enabled a new substrate supplier and also a new packaging house. i mean from packaging side we enabled a new substrate supplier and also a new packaging house So basically, now we have four combinations of substrate and packaging house that we can use. so basically now we have four combinations of substrate and packaging house that we can use We do expect that we will also, for some of the very large volume programs, such as the radar program, bring on second source foundries, particularly as we need to have China for China and non-China for non-China supply base in that space. we do expect that we will also for some of the very large volume programs such as the radar program bring on second source foundries particularly as we need to have china for china and non-china for non-china supply base in that space And I think, I mean, in answer to your question, in the short term, we have had a little bit of increased OpEx, which we signaled in the last quarter in order to cover some of that, which has now run through the books. and i think i mean in answer to your question in the short term we have had a little bit of increased opex which we signaled in the last quarter in order to cover some of that which has now run through the books At this point, we're basically seeing our OpEx remaining reasonably flat through 2026. There may be a couple of bumps in the road as we spend on tooling, but it's, you know, each bump is probably, I mean, less than $1 million. At this point, we're basically seeing our OpEx remaining reasonably flat through 2026. at this point we're basically seeing our opex remaining reasonably flat through 2026 There may be a couple of bumps in the road as we spend on tooling, but it's, you know, each bump is probably, I mean, less than $1 million. there may be a couple of bumps in the road as we spend on tooling but it's you know each bump is probably i mean less than $1 million

Speaker 7: Thank you. There are no further questions at this time. I would like to hand the floor back over to Donald McClymont for any closing comments. Thank you. thank you There are no further questions at this time. there are no further questions at this time I would like to hand the floor back over to Donald McClymont for any closing comments. i would like to hand the floor back over to donald mcclymont for any closing comments

Speaker 5: Well, thanks, everybody, for attending, and hope to see you at the conferences in the next few weeks. Well, thanks, everybody, for attending, and hope to see you at the conferences in the next few weeks. well thanks everybody for attending and hope to see you at the conferences in the next few weeks

Speaker 7: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. This concludes today's conference. this concludes today's conference You may disconnect your lines at this time. you may disconnect your lines at this time Thank you for your participation. thank you for your participation