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indie Semiconductor (INDI)
NASDAQ:INDI
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indie Semiconductor
(NASDAQ:INDI)
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Rating:49Neutral
Price Target:
$4.00
▲(11.11% Upside)
Action:ReiteratedDate:12/03/25
indie Semiconductor's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and negative profit margins. The mixed technical indicators and weak valuation further contribute to the low score. Despite positive long-term growth potential highlighted in the earnings call, immediate operational hurdles and supply chain issues present significant risks.
Positive Factors
Large strategic backlog
A $7.4B strategic backlog represents multi-year demand visibility from automotive OEMs and Tier-1s. That pipeline supports sustained revenue conversion as vehicle programs ramp, reducing near-term revenue volatility and enabling planning of capacity and R&D investments over platform lifecycles.
Low financial leverage
A debt-to-equity ratio of 0.07 signals low leverage and financial flexibility. With limited interest burden the company can invest in product qualification and fabs or absorb temporary cash shocks without immediate refinancing, supporting strategic shifts and longer product qualification cycles common in automotive.
High non-GAAP gross margin and product ramp
A near-50% non-GAAP gross margin implies a favorable product mix and pricing power in sensor, power and vision products. As radar and vision programs scale, high gross margins can drive operating leverage, improving the path to profitability if volume and yields increase as expected.
Negative Factors
Declining revenue and deep losses
A 13.3% TTM revenue decline combined with a -66.4% net margin indicates structural profitability shortfalls. Persistent top-line contraction and heavy losses strain reinvestment capacity, require corrective management actions, and lengthen the timeline to sustainable semiconductor scale economics in automotive programs.
Weak operating cash generation
Negative operating cash flow and a -23.65% FCF growth rate show the company is burning cash from operations. An operating cash flow to net income ratio of -0.69 underscores conversion issues; persistent cash deficits constrain capital allocation, may require external financing, and increase execution risk on long qualification cycles.
Recent cash decline and higher qualification OpEx
A $31.7M cash reduction, including a $17.7M M&A payment, plus added OpEx to qualify products outside Taiwan/China, tightens liquidity. Near-term cash burn to diversify manufacturing and integrate deals increases financing and execution risk during a period when operating cash generation is weak.
indie Semiconductor (INDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$775.30M
Dividend YieldN/A
Average Volume (3M)3.15M
Price to Earnings (P/E)―
Beta (1Y)3.26
Revenue Growth-4.99%
EPS Growth-12.11%
CountryUS
Employees920
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.07
Shares Outstanding202,611,250
10 Day Avg. Volume4,050,058
30 Day Avg. Volume3,149,224
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)1.70
Price to Sales (P/S)3.27
P/FCF Ratio-9.72
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit18.63
Enterprise Value/Ebitda-9.99
Forecast
1Y Price Target
$6.25Price Target Upside73.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.11
Revenue Forecast (FY)$269.70M
indie Semiconductor Business Overview & Revenue Model
Company Descriptionindie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, connected car, user experience, and electrification applications. It offers devices for a multitude of automotive applications spanning ultrasound for parking assistance, in cabin wireless charging, infotainment and LED lighting for enhancing the user experience, and telematics and cloud access for connectivity; and photonic components on various technology platforms, including fiber bragg gratings, low noise lasers, athermal and tunable packaging, photonic integration, and low noise and high-speed electronics for the laser systems, optical sensing, and optical communication markets. The company was incorporated in 2007 and is headquartered in Aliso Viejo, California.
How the Company Makes Moneyindie Semiconductor generates revenue primarily through the sale of its semiconductor products, which include integrated circuits and sensor devices tailored for automotive applications. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and automotive suppliers, as well as partnerships with technology firms that integrate indie's solutions into their systems. Key revenue streams include contracts for high-volume production and royalties from licensing agreements. Additionally, indie Semiconductor benefits from strategic partnerships with leading automotive manufacturers, which help drive demand for its products and facilitate long-term contracts, further solidifying its revenue base.
indie Semiconductor Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call balanced concrete near-term challenges (notably Wuxi-related timing and persistent supply-chain constraints) against multiple operational positives: a revenue beat with sequential growth, improving non-GAAP losses and cost control, early commercial shipments and broad design-win momentum across radar, vision, photonics/quantum and wireless power. Management has taken active steps to mitigate supply risks, is pursuing second-source suppliers and has a potentially material cash inflection from the pending Wuxi sale. On balance, achievements and growth catalysts appear to outweigh the risks, though execution and regulatory timing remain key.Q4-2025 Updates
Positive Updates
Revenue Beat and Sequential Growth
Q4 revenue of $58.0M exceeded the midpoint of guidance by $1M and grew ~8% sequentially; Q4 revenue was flat year-over-year. Full year revenue was $217.4M.
Improving Profitability Metrics and Cost Control
Non-GAAP operating expenses in Q4 were $36.8M (in line with outlook) after achieving targeted ~$8M–$10M savings; non-GAAP operating loss improved to $10.1M (versus $14.2M year-ago and $11.3M prior quarter).
Strong Cash Position with Potential Sale Proceeds
Ended Q4 with $155.7M in cash and equivalents. Company entered a definitive agreement to sell Wuxi indie Micro for approximately $135M gross proceeds (subject to closing), which if realized would materially bolster the balance sheet.
Radar Program Commercial Traction and Initial Shipments
First radar chipset shipments began in December; Tier 1 partner launched Gen 8 77GHz radar in Q4 with growing OEM adoption across Europe, North America, Japan, China and India. Management cites an end-market opportunity well above 50M units annual demand once beyond ramp.
Vision SoC Design Wins and DRAM-less Architecture
Design wins for iND880 and AI edge processor (DRAM-less architecture) across e-mirror and camera mirror systems at leading Tier 1s, including a strategic China EV OEM win expected to start ramping mid-2026; production for several wins targeted to begin late 2026.
Broadening TAM: Photonics, Quantum and Robotics Opportunities
Design win (with NRE) for a distributed feedback laser in LiDAR (non-automotive) and the largest LXM laser booking to date supporting quantum communications/sensing. Shipped ~$1M of optical products to quantum in 2025 with management expecting ~3x in 2026. Ongoing traction in humanoid robotics with vision/radar adoption (e.g., Figure AI, Unitree).
Wireless Power Momentum
Qi 2.0 wireless charging program with Ford remains on track for H1 2026; Qi 2.2 25W platform showing adoption and upscaling by a leading Tier 1 to another North American OEM, enabling faster power delivery via firmware upgrades.
Supply-Chain Risk Mitigation Progress
Qualified second-source package and substrate vendors, enabled additional packaging/substrate combinations and secured additional back-end/test capacity to prepare for expected volume ramps and mitigate substrate constraints.
Q1 2026 Core Business Growth Outlook
Company expects Q1 2026 total revenue of $52M–$58M (midpoint $55M), with core (non-Wuxi) revenue projected to grow ~20% sequentially to $34M at the midpoint.
Negative Updates
Reliance on Wuxi Revenue and Sale Uncertainty
Wuxi contributed approximately $29.7M of revenue in Q4. The announced sale of Wuxi (approx. $135M gross proceeds) remains subject to China regulatory approvals and timing is uncertain (targeted late-2026), creating execution and timing risk for expected proceeds.
Near-Term Chinese Revenue Weakness
Q1 2026 guidance expects Wuxi revenue to decline to ~$21M due to reduced EV subsidies and Chinese New Year shutdowns, creating sequential variability in consolidated results despite core growth.
Continued Supply-Chain Constraints
Package substrate shortages driven by AI demand persist; management estimates the broader supply environment will remain constrained through 2026. Supply issues impacted ~ $5M of demand in Q4 and may still affect up to ~$1M in Q1, requiring ongoing mitigation.
Ongoing Net Loss and EPS Pressure
Reported net loss for Q4 was $12.4M with loss per share of $0.07 (220.4M shares). Q1 2026 guidance implies a similar net loss per share of $0.07 (based on 223M shares), indicating continued near-term non-GAAP net loss.
Cash Decline and Interest Payments
Cash and equivalents declined $15.5M versus Q3 2025; $6.8M of the decline related to the semi-annual interest payment on outstanding convertible notes, highlighting financing cash outflows while the Wuxi sale remains outstanding.
Uncertain Timing for Large-Scale Radar Revenue Milestones
While radar shows strong design wins and early shipments, management did not provide precise backlog or timing for when radar will reach previously discussed high revenue milestones (e.g., a $100M+ annualized business), leaving visibility on near-term cadence incomplete.
Company Guidance
The company guided Q1 2026 revenue of $52–58 million (midpoint $55M), with Wuxi revenue expected to decline to about $21M and core business revenue projected to grow ~20% sequentially to ~$34M at the midpoint; non‑GAAP operating expenses are forecast at $37M (flat with Q4’s $36.8M), net interest expense of ~ $2.6M, and a net loss per share of $0.07 based on ~223M shares at the midpoint. For context, Q4 revenue was $58M (up ~8% sequentially; full‑year revenue $217.4M), Q4 non‑GAAP operating loss was $10.1M (vs $11.3M last quarter), Q4 net loss was $12.4M and loss per share $0.07 on 220.4M shares, and cash totaled $155.7M (down $15.5M vs Q3, including $6.8M interest). Management reiterated radar revenue remains in the prior ~$30–50M 2026 ZIP code, expects continued ramp through 2026–29, sees supply‑chain substrate/packaging constraints persisting into 2026 (Q4 impact ~ $5M, Q1 residual risk < $1M), and noted expected gross proceeds of ~ $135M from the planned sale of Wuxi (targeting late‑2026 close subject to approvals).indie Semiconductor Financial Statement Overview
Summary
indie Semiconductor faces substantial financial challenges with declining revenues, negative profit margins, and cash flow difficulties. Despite low leverage, the negative return on equity and cash flow issues highlight the need for strategic improvements.Income Statement
indie Semiconductor's income statement reveals a challenging financial position with declining revenue growth and negative profit margins. The TTM data shows a revenue decline of 13.3% and a net profit margin of -66.4%, indicating significant losses. Despite a gross profit margin of 31.4%, the company struggles with high operating losses as reflected in negative EBIT and EBITDA margins. The consistent negative growth and profitability metrics highlight the need for strategic improvements.45
Neutral
Balance Sheet
The balance sheet of indie Semiconductor shows a moderate financial structure with a debt-to-equity ratio of 0.07, suggesting low leverage. However, the return on equity is negative at -35.96%, indicating inefficiencies in generating returns from equity. The equity ratio stands at 43.2%, reflecting a reasonable proportion of equity in the asset base. While the low leverage is a positive aspect, the negative ROE and overall financial performance pose risks.55
Neutral
Cash Flow
The cash flow statement indicates significant cash flow challenges for indie Semiconductor. The TTM data shows a negative operating cash flow and a free cash flow growth rate of -23.65%. The operating cash flow to net income ratio is -0.69, highlighting cash flow issues relative to net losses. Despite a free cash flow to net income ratio of 1.36, the overall cash flow position remains weak, necessitating better cash management strategies.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 217.40M | 216.68M | 223.17M | 110.80M | 48.41M | 22.61M |
| Gross Profit | 51.70M | 90.31M | -55.12M | 50.31M | 19.71M | 9.57M |
| EBITDA | -96.42M | -93.94M | -89.94M | -35.67M | -111.73M | -93.49M |
| Net Income | -144.46M | -132.60M | -117.63M | -43.40M | -88.04M | -97.50M |
Balance Sheet | ||||||
| Total Assets | 855.07M | 941.39M | 818.88M | 603.35M | 469.25M | 35.13M |
| Cash, Cash Equivalents and Short-Term Investments | 171.16M | 274.25M | 151.68M | 321.63M | 219.08M | 18.70M |
| Total Debt | 367.23M | 398.58M | 174.34M | 183.47M | 7.89M | 20.83M |
| Total Liabilities | 462.15M | 495.99M | 341.85M | 289.02M | 177.40M | 136.62M |
| Stockholders Equity | 369.21M | 417.89M | 446.15M | 312.81M | 313.05M | -110.31M |
Cash Flow | ||||||
| Free Cash Flow | -64.63M | -72.94M | -117.14M | -84.31M | -59.89M | -21.99M |
| Operating Cash Flow | -49.55M | -58.60M | -104.39M | -76.75M | -55.82M | -21.22M |
| Investing Cash Flow | -32.76M | -19.26M | -107.74M | -16.27M | -84.33M | -771.00K |
| Financing Cash Flow | 150.00M | 209.33M | 43.57M | 192.66M | 340.65M | 33.47M |
indie Semiconductor Technical Analysis
Negative
3.60
Price Trends
3.92
Negative
4.23
Negative
3.97
Negative
Market Momentum
-0.14
Positive
43.19
Neutral
37.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDI, the sentiment is Negative. The current price of 3.6 is below the 20-day moving average (MA) of 3.81, below the 50-day MA of 3.92, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDI.
indie Semiconductor Risk Analysis
indie Semiconductor disclosed 61 risk factors in its most recent earnings report. indie Semiconductor reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
indie Semiconductor Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.37B | 11.17 | 101.23% | ― | 0.19% | ― | |
62 Neutral | $1.86B | -34.06 | -7.75% | ― | 16.86% | -26.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.43B | -19.67 | -9.04% | ― | -4.50% | -45.79% | |
54 Neutral | $1.20B | -140.37 | -6.97% | ― | -3.23% | -122.16% | |
50 Neutral | $656.23M | -6.55 | -12.00% | ― | 5.81% | -376.55% | |
49 Neutral | $775.30M | -4.93 | -37.17% | ― | -4.99% | -12.11% |
* Technology Sector Average
INDI
indie Semiconductor
3.60
0.58
19.21%
AEHR
Aehr Test Systems
41.48
31.79
328.07%
AOSL
Alpha and Omega
22.63
-7.62
-25.19%
COHU
Cohu
31.27
11.35
56.98%
ICHR
Ichor Holdings
52.41
22.97
78.02%
SKYT
SkyWater Technology
28.80
19.67
215.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.