indie Semiconductor, Inc.

Ladies and Chairman, greetings and welcome to Indie Semiconductor second quarter 2025 earnings conference call. At this time, all participants are in listen only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ashish Gupta from ICR. Please go ahead.

Thank you, operator. Good afternoon and welcome to Indie Semiconductor's second quarter 2025 earnings call. Joining me today are Donald McClymph, Indie CEO and Mark Tindal, Head of Corporate Development and Investor Relations. In addition, given the strong investor interest in our foray into photonics and quantum opportunities, I'm pleased to have Matthew Drolet, Executive Vice President of our photonics business unit, joining us today as a special guest to address any questions you may have on this exciting sector. Donald will provide opening remarks and discuss business highlights. Mark will then provide a review of Indie's Q2 results and Q3 outlook. Please note that we're making forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative about the 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 our annual report on Form 10K for the fiscal year ended December 31st, 2024, 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 gross margin, 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 Q2 earnings press release, which was issued in advance of this call and can be found on our website at .indie.inc. I'll now turn the call over to Donald.

Thanks, Ashish, and welcome, everybody. I'll begin by reviewing our financial performance within the context of the overall automotive market before discussing Indie's key business achievements in the quarter. During the second quarter, Indie achieved total revenue of $51.6 million above the midpoint of our outlook, representing a solid performance given the challenging automotive market conditions we are experiencing. Starting with market dynamics, automotive market analysts have become tendentially more optimistic, including S&P Global Mobility, who recently raised forecasts for global light vehicle sales across all regions, including the U.S., China, and Europe, now expecting modestly positive growth for 2025 compared to 2024. Underlying demand has strengthened despite continued macroeconomic uncertainties. Regarding trade policy impacts, U.S. trade policies to date have had minimal direct impact on our business. Our globally diversified supply chain of foundry and packaging partners provides significant resilience against policy shifts as our manufacturing is primarily based in regions strategically aligned to our customers' locations. Despite the ongoing uncertainty from policy volatility, which continues to create hesitation in the OEM decision-making, our key projects remain on track. 2025 is proving to be a transitional year for Indie as we introduce new products, customers ramp our solutions across multiple ADAS sensing and user experience applications, while we expand into adjacent industrial markets. Despite the challenging automotive backdrop, we continue to secure new design wins across a global customer base, leveraging our highly differentiated and innovative technologies. Notably, radar and several key vision design wins previously communicated are poised to begin production in late 2025 and through 26. Let me now turn to our business progress and key achievements during the second quarter. I want to stress that momentum in ADAS is strong and is the major long-term focus for Indie, especially after our recent restructuring. It will be the core driver of our future growth. Today, our R&D investment is primarily focused on our key radar and vision programs. Our differentiated engineering expertise in analog and mixed signal design, combined with world-leading in-house algorithmic capabilities, uniquely separates us from our peers, enabling a class product portfolio that spans all ADAS sensing mobility, including both radar and vision. First, our flagship 77 gigahertz radar chipset continues to achieve more milestones and is receiving excellent feedback from our lead tier one customer as we near production ramp. Our full custom solution will be adopted by multiple OEMs across several key geographic regions. Results from actual road testing are demonstrating not only compliance with key performance specifications, but additionally are providing paradigm-changing application capabilities together with economic benefit as compared to the performance of current competitor products on the market today. During the second quarter, we continue to build momentum for our vision portfolio, featuring our -in-class proprietary image signal processing and our latest IND880 processor. Notably, in less than one year from sampling, the processor will enter production at a leading Chinese OEM for a camera monitoring system, this exemplifies the rapid design into production cycles achievable in the Chinese market. We also secured an additional design win for an occupancy monitoring system at a different leading Chinese OEM, with both customers considered prominent players in China's electric vehicle market. Beyond automotive, as I mentioned previously, we're also targeting adjacent industrial markets around mobility that have high development synergies with our automotive products. For vision, I'm pleased to report our first success with the IND880 powered cameras, now shipping in humanoid robots. IND880 is an ideal choice for image signal processing and such systems, requiring multiple cameras, an extremely low latency, and again an exciting new opportunity in an emerging market to drive growth. The momentum continues for our in-cabin user experience products. During the quarter, we secured several notable design wins in wireless charging. In Japan, we were awarded a design win at a major OEM through our tier one partner, OZDEN. Additionally, in India, Mahindra continues to adopt her wireless charging technology for new model upgrades across multiple platforms in addition to VW Skoda, starting production during the last quarter. As I've highlighted recently, we see growing applications for our existing products in automotive adjacent segments, particularly in the industrial sector. I already mentioned robotics, a second area is quantum. I'm excited to report that our newly formed Photonics group has already secured notable design wins with emerging players for a high-performance LXMU laser, particularly in the area of quantum communications. Commercial quantum e-distribution, or QKD, systems are being launched right now and their deployment is accelerating. A key ingredient of QKD performance is the quality of the optical system. Lower noise translates into longer range, breaking through an important barrier to the wider adoption of quantum-secured communication systems. We deliver a 10x noise improvement versus our competitors in this space. It is strategically important to be adopted by players at the forefront of development in an emerging market, as we position Indy to be the default supplier once high volume is reached. The ASPs and gross margins are proving to be highly attractive in this segment, and we expect the market size for Photonics in quantum communications to exceed $2.5 billion by 2030. As a reminder, the Photonics business unit also develops Photonics solutions for applications including automotive lidar and heads-up displays. While we expect automotive sentiment to remain volatile, when you look past the near-term noise, we continue to forecast that vehicle semiconductor content will grow beyond today's average $1,000 per vehicle, and ADAS remains central to this growth, propelled by global safety regulation and self-driving demands, uniquely positioning Indy as a leading and focused supplier of compelling, differentiated solutions to address these transformative automotive megatrends. I'll now turn the call over to Mark for a view of our Q2 and Q3 outlook.