INDI

Good afternoon, and welcome to the indie Semiconductor first quarter 2026 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's first quarter 2026 earnings call. Joining me today are Don McClymont, indie's CEO and Co-Founder, Naixi Wu, indie 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 Q1 results and business 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 of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. Finally, the results and guidance discussed today are based on consolidated non-GAAP 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 Q1 earnings press release in addition to a presentation summarizing our quarterly results in more details on non-GAAP measures, as posted on our website in advance of this call at www.indie.inc. I'll now turn the call over to Don.

Thanks, Ashish, welcome everybody. indie delivered a solid first quarter with revenue of $55.5 million, approximately half a million above the midpoint of our guidance and up 3% year-over-year. Before turning to our business achievements, let me provide some context on the market environment. Looking at the broader automotive semiconductor market, we see a measured recovery, with channel inventories largely normalizing and demand environments characterized as cautious but improving. Underlying global vehicle production remains range-bound, while secular content drivers, including the continued transition to software-defined vehicles, expanding ADAS adoption, increasing exterior and in-cabin sensing requirements, are fueling demand for semiconductor content per vehicle, as was always our thesis. This is the backdrop against which indie continues to advance our radar vision and photonics portfolios, supporting growth that will consistently outpace the market.

On a macro level, geopolitical tensions and shifting trade dynamics continue to impact the global supply chain, affecting peers, customers, and suppliers alike. These dynamics have contributed to elevated logistics cost and selective capacity constraints across the industry. Even against this backdrop, indie is maintaining a positive trajectory, successfully managing through these challenges. indie is experiencing tremendous growth in interest and activity in quantum and robotics. We continue to forge new opportunities with some of the trendsetting emerging companies in these high-growth markets with our expanding photonics portfolio in quantum and our vision processing and sensor ICs and embodied AI. As noted by the International Federation of Robotics, the broader robotics market, which spans industrial robots, mobile robots, cobots, humanoids, and drones, is forecast to grow from approximately $88 billion in 2026 to over $218 billion by 2031, a CAGR of nearly 20%.

Within that opportunity, the Yole Group states that the global humanoid robotic market is set to increase from $600 million in 2025 to $6 billion in 2030 at a CAGR of 56% and then accelerate to $51 billion by 2035, a CAGR of 55% between 2030 and 2035. Let me now turn to our recent business progress and key achievements during the past quarter. I'm extremely pleased to share that our tier one partner, who recently launched their Gen8 radar solution built on indie's 77 GHz radar technology, representing the first 4TX 8RX radar available in the industry, has committed to a new production order of $25 million, driven by support for two key OEMs, one European and one Asian.

This milestone is particularly rewarding as this order confirms previously communicated production expectations and multi-OEM acceptance following successful design, testing, and qualification over the past many months. We are now positioned to ramp production efficiently, having secured additional back-end and test capacity across multiple suppliers in preparation for the ramp ahead. In parallel, we are advancing our second-source foundry strategy to support the manufacturing flexibility and in some cases to support a no China, no Taiwan requirement demanded by certain industry players. Moving to our vision portfolio, the iND880 vision processor has begun production supporting eMirror camera functionality at NIO, a premium Chinese EV OEM. This program moved from design to production in approximately six months, a testament to our team's technical readiness, execution discipline, and close collaboration with customers and partners, and further reinforces our commitment to reducing time to market and accelerating deployment.

In addition, the camera mirror system when we referenced last quarter with the largest Chinese OEM is now entering volume production. At the prestigious Beijing Auto Show, several exciting new models featured indie technology, including the Buick GL8, the AITO M9, the NIO ES9, and the Cadillac VISTIQ, to name a few. These models are now entering the production phase in 2026. A defining advantage of the iND880 and increasingly a focal point in our customer engagements is a DRAM-less architecture. By eliminating the need for external memory, the iND880 helps customers navigate any DRAM supply constraints. In many cases, our customers are unable to source memory at all, and using the iND880 allows them to alleviate line down situations. If DRAM can be sourced, it comes at a price premium measured in multiples rather than percentages.

iND880 therefore massively reduces overall bill of materials in addition to lowering system resource demands on downstream AI processors and improving image signal processing throughput and real-time latency. What was originally an attractive design point for China OEMs has rapidly broadened into a global value proposition. We are now seeing accelerating engagement and likely commitments from U.S. customers, often on compressed timelines as the architectural benefits of going memoryless are recognized across the industry. We expect this to remain a meaningful growth driver for our vision portfolio through 2026 and beyond. By way of update on our perception software portfolio following the integration of emotion3D, we recently announced a strategic partnership with Mahindra, a leading Indian OEM, to supply our OMS/DMS perception suite for the electric origin SUV series. Additionally, we expect commitments from U.S.-based customers in the near future to add to our momentum.

Our photonics portfolio continues to gain meaningful traction in the rapidly expanding quantum technology market. During the quarter, we announced the world's first commercially available ultraviolet distributed feedback or DFB laser at 399 nm. A wavelength precisely matched to the atomic cooling transition of ytterbium, the element used in the neutral atom quantum computing architecture that leads the industry today in physical qubit count. Our broader visible DFB laser family now spans wavelengths from the near ultraviolet to green, addressing the cooling, trapping, and excitation requirements across the four atomic species that account for the substantial majority of cold atom quantum computing development. We are actively engaged with several of the leading quantum computing companies on next-generation laser source requirements, and we believe our differentiated photonics platform positions indie as a key enabling supplier to the quantum ecosystem as it scales over the coming decade.

In the LIDAR space, we are finally beginning to see the adoption of FMCW technology into multiple markets. Our integration partners are completing designs which incorporate indie's iND83301 SoC into their products, replacing FPGA-based processing and delivering an 80% reduction in power consumption, a 40% reduction in solution size, and a market-making cost position. We are seeing traction not only from the automotive industry, but from multiple areas in embodied AI. A one key producer of AMR or autonomous mobile robots for warehouse management is engaged. Generally speaking, the embodied AI market is generating demand for many of our sensing products centered around vision, but including LIDAR and radar, with applications also ranging from AMR through humanoids to drones. Our sensing technologies allow robots to better understand and navigate unpredictable environments and enable the transition from more traditional industrial robot implementations to more advanced, truly autonomous units.

The pace of engagement is electrifying. We expect that it will begin to lead the automotive market in driving new technology as opposed to leveraging existing technologies. With that, I will turn the call over to Naixi to walk through our financial results.

Thank you, Donald, good afternoon, everyone. indie's first quarter revenue was $55.5 million, exceeding the midpoint of our outlook by half a million dollars, representing an increase of approximately 3% compared to the prior year period. Revenue from our core business was approximately $34.1 million, a sequential growth of over 20%, reflecting the continued momentum in our core ADAS portfolio. Revenue from Wuxi was approximately $21.4 million, consistent with our expectations. Non-GAAP operating expenses during the quarter totaled $37.3 million, consistent with our outlook. As a result, our first quarter Non-GAAP operating loss was $11.1 million compared to $15.1 million in the comparable period in 2025, demonstrating our continued progress towards achieving profitability.

With net interest expense of $2.8 million, our net loss was $13.9 million and loss per share was $0.06 on a base of 223 million shares, consistent with our guidance last quarter. Please refer to the presentation located on our website for a more detailed breakdown of our non-GAAP measures. Turning to the balance sheet. During the quarter, we issued a 4% convertible senior note due 2031 with an aggregate principal amount of $170.5 million or a net proceeds of approximately $165 million after fees and offering costs. We used these net proceeds to repurchase a significant portion of our 2027 notes for a total of approximately $108 million. The remaining proceeds are retained for working capital and general corporate purposes.

This refinancing extends our debt maturity profile by approximately four years, lowers our coupon, and enhances our financial flexibility to support our growth strategy. As a result of the debt issuance and repayment activity I just discussed, along with routine operating activities, we exited the quarter with total cash and cash equivalents, including restricted cash of $184.7 million, a net increase of $29 million from the fourth quarter of 2025. Turning to the previously announced potential divestiture of our equity interest in Wuxi indie Micro. As you may recall, we entered into the definitive agreement in October 2025 to sell our entire interest in Wuxi to UFA for approximately $135 million, payable net of taxes and fees in cash at closing.

Following UFA's shareholder approval in November 2025, the transaction commenced its required regulatory approval process in China, including review by the Shenzhen Stock Exchange and the CSRC, and has continued to advance since then. While the exact timing of closing remains subject to the completion of that regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates. Moving to our outlook for the second quarter of 2026, we expect to deliver total revenue between $59 million-$65 million, with $62 million at the midpoint. We anticipate a revenue contribution from Wuxi in the second quarter of $25 million, with our core business contributing approximately $37 million at the midpoint, representing approximately an 8% growth sequentially or about 20% year-over-year growth in our core ADAS, photonics, and adjacent business.

We expect our non-GAAP operating expenses to be $38 million for Q2, relatively flat compared to Q1. Below the line, we expect net interest expense of approximately $3.1 million with no tax expenses. Assuming the midpoint of the revenue range and with a base of 227 million shares, we expect to improve our net loss per share to $0.05. From a financial perspective, 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'll turn the call back to Donald for closing remarks.

Thank you, Naixi. indie's business remains very solid, as evidenced by strong first quarter results and positive outlook for the second quarter. Radar and vision programs remain firmly on track, highlighted by success at multiple OEMs. With the addition of quantum and embodied AI, indie's technology leadership and expanding product portfolio positions us extremely well to drive growth. We believe no other semiconductor company offers a product portfolio as well-suited as indie's to meet the diverse needs of these emerging markets. We are confident in our business as our radar and vision design wins continue to ramp. That concludes our prepared remarks. Operator, please open the line for questions.

Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press start two. Once again, press star one to ask a question. We'll take our first question from Cody Acree with Benchmark/StoneX. Please go ahead. Your line is now open.

Yeah, guys, thanks for taking my questions, and congrats on the progress. Donald, maybe we can start with your $25 million order. Can you maybe just walk us through your expected delivery schedule? How does that pace through the rest of the year?

Well, I mean, first of all, we are super excited to receive the order, especially as it came in sort of one big discrete chunk, and it underlines the commitment of our tier one customer to the end customers that they have committed to them at this point. You know, we're super excited about that. I mean obviously, we knew about this situation ahead of time, the fact that we were allowed to publicly discuss this and highlight this fact was super exciting for us. Hopefully that gives an indication to the market that the impending reality of what we're doing here with this huge project is coming to fruition.

In terms of how we schedule it out, I mean, it's, it's not the only order we have, and it's not the only order that we'll get. It is sort of, let's say, tied to a couple of key customers to make sure, the thinking behind it is really to make sure that we can secure capacity and all that stuff. Having the orders on the books is hugely advantageous and helpful in that respect. You know, we talked about that in the prepared remarks, that it was one of the tools that we used to go do that.

We don't expect that we'll give details of when this particular order is running out, but it's gonna be the first of many as we drive towards, maximizing the revenue that we get out of, out of this project.

Are those wafers already in the path of the working process? Can you just talk about delivery schedules for revenue ramp?

I mean, we have a bunch of wafers in the line, of course. We've talked about that in the past as well, you know, we have secured capacity for those guys too. We do expect that it will contribute meaningfully in this year. Obviously we're just reconfirming that really.

You talked about wafer packaging, I mean, back-end package and test and substrate availability and then your diversification and your foundry strategy. Can you just update us on the progress, what's left to be done, and is that now substantially behind you?

I mean, you know, the market is very tight right now because of the demand from AI. It's not going to be something that we can just leave to run automatically. It's gonna be something that we're gonna have to have a watchful eye over for the foreseeable future. I think we're comfortable now with the diversification of the supplier base that we have and our ability to therefore deliver to that.

Great. Thanks, guys, and congrats.

All right. Thanks, Cody.

Thank you. We'll take our next question from Suji Desilva with Roth Capital. Please go ahead, your line is open.

Hi, Donald. Hi, Naixi. Congratulations on the initial PO, Donald. Can you maybe give us some sense of the initial customer end customers of your customer and what the auto models they're using this for? Is it premium, mainstream, L2+ or advanced L3, L4? Any color that you'd have about where this is landing would be helpful.

Well, I mean, it's largely mainstream. We're supplying a number of radars per vehicle in most cases. The kind of vehicles that we're supplying to range from low to mid-tier through high tier, through even commercial vehicles. You know, we'll see our products adoption being really deep and large in the penetration of it being very widespread. We're not certainly married to level three, level four or anything really higher end. These are products that we'll, you know, you'll find on something like a Volkswagen Golf or a Toyota Corolla. It will be deeply penetrated.

That's very helpful, Donald. Can you help us understand how this tier one layers in beyond the initial two customers for this PO? Are there more customers behind it, or will these two customers first ramp initially? How will that progress in your pipeline? Or their pipeline, I guess.

No, I mean, there are a bunch of customers expected to ramp at varying times through all jurisdictions in the field, ranging from China through Europe through the U.S. This is just specifically that this purchase order really was driven to provide a commitment to the two OEMs that we talked about in the script. It's far from limited to those two.

Thank you. We'll take our next question from Anthony Stoss with Craig-Hallum. Please go ahead, your line is now open.

Pretty close on the pronunciation. Donald, I wanted to hone in on the iND880. Can you maybe share a range of the pipeline or the opportunity, the design wins you have? I'd love to hear if you think the iND880 solution might generate more revenue for you than radar in 2026.

It's, yeah, I mean, I mean, we've been super surprised and excited by the resonance of this. I mean, we knew the commercial value of it, but, you know, actually seeing it and feeling it took a little longer to get to some of the customers who are a little more conservative and maybe believed that they would be able to source what they needed in memory, and of course, turned out not to be the case. I mean, you know, we're seeing, you know, pipeline of tens of millions of dollars per year in annual revenue. It is moving very, very fast indeed because of just the need. Needs must. I mean, the memories are hard to source, and if you can get them, they're going for two, three, four times their normal price.

Yeah, it is maybe even possible that it might exceed radar in this year.

Got it. Then, in your prepared remarks and in the press release, you talked about drones. Would this same iND880 be going into that? What kind of solutions from indie would be going into a lot of these drones that you're talking about?

I mean, we have a bunch of activities ongoing. iND880 is one of the products that are being looked at right now. There's a derivative of it which is also able to have some other functionality, including an AI processor, which we've talked about briefly in the past. It may also get used. They are beginning to look at LIDAR processor and even through our automotive tier one customer, we're, you know, seeing demand for the radars going on these things too. There's a very high level of content. The market is moving extremely quickly, and the dollar values of the ASPs are good.

Thank you. We'll take our next question from Jon Tanwanteng with CJS Securities. Please go ahead, your line is now open.

Hey, this is Will in for Jon. Last quarter you had some headwinds in the Wuxi business. Can you just talk more about the underlying trends there and how they're developing?

Yeah, I mean, there were some headwinds in the China market, particularly at the lower end of the e-vehicle market, really driven by a change in the subsidy policy of the Chinese government, which we saw hit through Q1. As we highlighted in last quarter's earnings and reiterated here, we, you know, we are expecting a good bit of a bounce back in the next quarter. We believe that those issues are resolving. Generally speaking, in the China market, we, you know, we see some unit headwinds, the content per vehicle is increasing significantly. We, you know, we believe that's offsetting, and we're seeing that in the strength, particularly of our vision portfolio in China at the moment.

Thank you.

Thank you. There are no further questions on the line at this time. I'll turn the meeting back over to Donald.

Well, thanks, everybody. Thanks for your time. Looking forward to seeing you at the investor conferences over the course of the quarter.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Good afternoon, and welcome to indie Semiconductor's Fourth Quarter 2025 Earnings Call. [Operator Instructions] 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.indie.inc. I'll now turn the call over to Donald.

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 amongst 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-gigahertz 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 a claim 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 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 '26 and beyond. Within our vision portfolio, we see continued momentum 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 at leading Tier 1s across passenger vehicles and trucks with production beginning in late '26 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 our 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 stand-alone 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 93 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 to $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., UFA, a publicly listed company in China, to sell our entire outstanding equity interest in Wuxi indie Micro for gross 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, UFA 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 time line we previously communicated. Moving to our outlook for the first quarter of 2026. We expect to deliver total revenues between $52 million to $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 partners' 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.

[Operator Instructions] Our first question is from Cody Acree with The Benchmark Company.

Congrats on the progress. Naixi, just one point of clarification. Can you give me the Wuxi revenue for Q4?

Yes, it was around $29.7 million.

And 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 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 yes, we do expect it to bounce a little bit in Q2.

Okay. Great. And Donald, maybe can you just provide any further color on the slope of the ramp of your radar programs that you're expecting for the balance of '26?

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 a 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. I mean we -- the product portfolio basically, in the type of products that had substrate exposure, did have some risk mitigation, so some products that we had inventory of shipped. Probably there was maybe a little bit less than $1 million of demand that is still questionable that we might get or not based on supply, but we've made some significant progress versus Q4 where it affected around $5 million in that quarter.

Our next question is from Suji Desilva with ROTH Capital Partners.

Congratulations on the progress here on the Tier 1. Donald, you've given us backlog numbers in the past. Any update there? Any new design wins to talk about? I know you have at least 2 big programs coming, but any color there would be helpful.

Yes. I mean, as you 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 we've seen a lot of momentum in that during the last quarter. But no quantifiable update right now.

Okay. All right. And then 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?

Yes. I mean we're doing well in all regions. I mean, again, I mentioned in the script that we have exposure to OEMs based over all parts of Europe, also in Asia, China, even India actually as part of that. So I mean, we're feeling very good about where we are generally worldwide.

Our next question is from Jon Tanwanteng with CJS Securities.

This is [ Will ] on for Jon. 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. And the products that we make for automotive are basically 100% compatible with the needs that these guys have for these applications. So we are very optimistic about it. 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.

And in regards to the supply chain constraints, can you add some more color on how you're thinking about the time line 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 '26 year without really taking any bumps on our side while we get through to '27. But that's basically the best visibility we have right now.

Our next question is from Anthony Stoss with Craig-Hallum.

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 to $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 ZIP code. Nothing really 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 they are going in that direction. That means that we will have like a steady and steep ramp over the course of '26, '27, '28 and '29 even as some of these design wins, of course, are for longer-term models, which are out in time. But I mean, generally speaking, the momentum has been strong behind the program. And I think you can assume on OpEx side that it's basically going to be about flat. Maybe a couple of lumps here and there as we invest in tooling, but no more than $1 million plus/minus.

Got you. 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% to 30% range, perhaps. Maybe not quite as high as that anymore, actually. I'm not sure. I -- yes, it's a little bit less than that now probably.

Our next question is from Craig Ellis with B. Riley Securities.

Donald, congratulations on the 20% core business growth in the first quarter. Can you just help us understand what the top 2 or 3 drivers are to that growth? And is radar on that list? Or are we in just smaller volumes in 1Q?

I mean radar is still relatively small volume in the last quarter and this quarter. But in any design and any -- and especially in a program of this magnitude, the first products that you ship are very much the most important. It cleans the pipe and improves 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 to $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 you 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.

I think Cody actually already asked his question.

Yes. Yes. Actually, I just had a quick follow-up, Donald. Sorry, I was on mute. Just your comment lastly about increasing your supply side. Last quarter, you mentioned your efforts to 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 4 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, non-China for non-China supply base in that space. And I think -- and I mean, in answer to your question, 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 at this point, we're basically seeing our OpEx remaining reasonably flat through '26. There may be a couple of bumps in the road as we spend on tooling, but it's -- each bump is probably, I mean, less than $1 million.

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 I 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.