Q4 2025 Indie Semiconductor Inc Earnings Call

February 19, 2026

Donald McClymont: 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.

<unk> earnings call.

Currently all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Speaker #2: Information concerning those risks and uncertainties is discussed in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law.

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.

Speaker #2: Please refer to our press release and our investor presentation on the investor relations section of our website for a reconciliation of GAAP to non-GAAP measures.

Thank you operator, good afternoon, and welcome to any semiconductors fourth quarter 2025 earnings call joining.

Speaker #2: I'll now turn the call over to Jason.

Speaker #3: Good afternoon, and thank you for joining us. 2025 was a pivotal year for CarGurus. We accelerated product innovation, expanding how we serve dealers and consumers as a marketplace, software, and data company.

Joining me today are Dominic climate in these CEO and cofounder.

<unk> and the CFO and Mark Tyndall EVP of corporate development and Investor Relations.

Anthony Stoss: 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 Q1?

<unk> will provide opening remarks and discuss business highlights nicely will then provide a review of in these Q4 results.

Speaker #3: Drove significant growth and profitability, and returned capital through disciplined share repurchases. Revenue from continuing operations grew 14% for the full year. Our second consecutive year of mid-teens growth.

And business outlook. Please note that we will be making forward looking statements based on our expect current expectations and assumptions, which are subject to risks and uncertainties.

Donald McClymont: I mean, it had a little bit of a trailing impact into Q1. I mean, we, it's the product portfolio, basically, 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 $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.

Speaker #3: And adjusted EBITDA from continuing operations grew 25% year over year. While its share expanded, retention reached its highest level in three years. New dealer additions accelerated, and consumer traffic growth translated into increased lead volume.

These statements reflect our views only as of today and should not be relied upon as representing views as of any subsequent date.

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.

Speaker #3: Internationally, we delivered 27% year over year revenue growth, driven by accelerated dealer acquisition, wallet share expansion, and strong lead growth. Our performance was supported by faster, more prolific AI-driven innovation, which increased product velocity and strengthened our differentiation among both dealers and consumers.

Please review our.

To review, our risk factors and annual annual report on Form 10-K for the fiscal year ended December 31, 2024 are supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC.

Anthony Stoss: Excellent. Thank you.

Operator: Our next question is from Suji DeSilva with ROTH Capital Partners.

Speaker #3: We launched more new products in 2025 than in any prior year, embedding data and intelligence directly into dealer workflows and consumer decision-making. Key launches included dealer solutions like price vantage and new car exposure, and consumer features like CG Discover and dealership mode.

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.

Suji Desilva: Hi, Donald. Hi, Naixi. Congratulations on the progress here on the tier one. 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 two big programs coming, but any color there would be helpful.

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 is posted on our website in advance of this call at Www Dot Indeed, I'll now turn the call over to dialogue.

Speaker #3: We continued bolstering our support of dealer workflows across inventory, marketing, conversion, and data. This product innovation further cements our role beyond lead generation into daily operating workflows, expanding our addressable market into adjacent software and data categories.

Donald McClymont: Yeah, I mean, you know, as we know, we only really update our strategic backlog once a year. You know, 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. You know, we've seen a lot of momentum in that during the last quarter, but no, no quantifiable update right now.

Thanks, Ashish and welcome everybody.

India delivered a solid fourth quarter with revenue of 58 million exceeding the midpoint of our outlook by $1 million.

Speaker #3: Early traction validates demand, engagement, and differentiation. Our consumer launches expanded our role across the shopping journey, from research through in-dealership decision-making and purchase. Driving higher intent engagement and higher converting leads.

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 fees of Adas or advanced driver assistance systems, and automated driving and safety function.

Speaker #3: Our broader portfolio of consumer functionality, combined with the largest inventory selection and a foundation of trust and transparency, reinforces our leadership position as the most visited automotive shopping platform in the U.S.

Suji Desilva: 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?

<unk> are rapidly maturing beyond optional or premium features and into standardization of LTI in the boat.

Donald McClymont: 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, we're feeling, you know, very good about where we are generally worldwide.

Speaker #3: We also executed with discipline. We made the prudent decision to wind down car offer, while retaining its sourcing technology and data to strengthen our inventory products.

Oems across all vehicle classes are recognizing that consumers expect the baseline of active safety features including lane assist.

Speaker #3: Those learnings have informed better pricing and inventory technology solutions that both drive high incremental margins and reinforce the value and performance of our marketplace.

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.

Speaker #3: Now I'll walk through our progress across our 2025 drivers of value creation. Driver number one: expanding our suite of data-driven solutions across dealers' workflows to help them drive more profitable businesses.

Operator: Our next question is from Jonathan Tanwanteng with CJS Securities.

This continues to present, a significant opportunity for India to capitalize on by levering its technology investments for the readiness of these mass market segments.

Jonathan Tanwanteng: 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?

Speaker #3: In 2025, our most critical dealer metrics achieved impressive growth. Consolidated car seed grew 8% year over year. Global paying dealer count increased by 2,399.

Additionally, the humanoid robots robotics market is rapidly transitioning from research labs to industrial in real life applications.

Donald McClymont: 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.

Speaker #3: Add-on product adoption rose nearly 25% year over year. Engagement and platform usage grew and retention strengthened. Underpinning the products and intelligence we deliver to dealers is a growing body of data that we're translating into higher fidelity insights through AI.

This creates exciting opportunities that we're actively pursuing today and we have plan to expand our activities here going forward.

Our Adas and automotive technologies aligned perfectly with humanoid sensing requirements by providing the robot is adheres to that and 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 unitary.

Speaker #3: On average, last year we ingested approximately half a billion first-party shopper signals each day. Translating them into real-time consumer demand, pricing, and inventory insights are dealer customers are leveraging for measurably improved performance.

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 2030.

Speaker #3: In 2025, dealer data insights became central to dealer workflow. With 60% of global paying dealers using these insights across their operations. What began as validation of the value dealers ascribe to our data is now embedded in how they make more profitable data-driven decisions.

Donald McClymont: 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.

Let me now turn to our recent business progress and key achievements during the past quarter.

Speaker #3: Building on this foundation, we launched Price Vantage in October—our first specialized software product designed to move dealers from passive data consumption to action-oriented pricing decisions.

Beginning with radar our tier one partner, who launched their Gen 877 gigahertz radar solution in Q4 is rapidly gaining strong commercial traction with even more global Oems, including car manufacturers from northern and Central Europe.

Jonathan Tanwanteng: 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?

Speaker #3: Early results demonstrated accelerating inventory turnover and increasing VDP views. Engagement has been strong, with nearly 80% of adopting dealers active weekly on the price vantage suite of products.

Donald McClymont: I mean, it's... The tightness is really driven by the uptick in AI demand, and 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. 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. I mean, at this point, we feel decent about where we are.

North America, Japan, China, and India with models ranging from entry level through mid tier.

And passengers cars and all the way to high value commercial vehicles.

Speaker #3: Compared with their prior usage of our free pricing tool, price vantage users execute 66% more price changes and log more sessions per day. All clear indicators of deeper reliance on data-driven pricing workflows.

The India based solution delivers far superior performance and cost basis compared to competing in previous generation products. Additionally, earning a claim at CES. This January.

We began initial shipments to our tier one 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.

Speaker #3: Collectively, these efforts embed CarGurus more deeply into dealer operations and decision-making, driving stronger adoption, more consistent action, and clearer evidence that our intelligence-led solutions improve efficiency and profitability.

To support this ramp and mitigate allocation issues, we're expanding our production capabilities include importing designs for second to refineries here in the U S satisfying local supply sourcing demands.

Speaker #3: Driver number two: Meeting the evolving needs of car shoppers by powering a more intelligent and seamless journey. In 2025, we strengthened the consumer side of our marketplace by increasing our reach and the quality of shopper engagement.

Donald McClymont: As I said, we've made some good progress on bringing on new suppliers, and we hope that we can manage through this 2026 year without really taking any bumps on our side, while we get through to 2027. But that's basically the best visibility we have right now.

We are also securing additional backend and test capacity at multiple suppliers to be prepared for the ramp.

Speaker #3: Traffic grew faster than our primary competitors year over year, reinforcing our position as the number one most visited automotive marketplace. Nearly half of monthly visitors shopped exclusively on CarGurus, indicating a high degree of reliance on the platform.

With these measures in place and they will be well positioned to fill 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 the current levels.

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

Speaker #3: That behavior translated into results. Fueled by lead growth, in the US, CarGurus-led sales grew year over year, and according to a 2025 Clara Voice study, CarGurus influenced 55% of all attributed vehicle sales.

Anthony Stoss: 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 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.

Overall I'm extremely pleased with the progress of our current generation radar rollout and expect momentum to build through 26 and beyond.

Speaker #3: We believe that scale and influence create a stronger foundation to introduce new consumer experiences that deepen engagement and generate richer signals. Our generative AI search experience, CG Discover, continued to scale.

Within our vision portfolio, we see continued momentum with design wins for our industry, leading image signal processor Soc <unk>, including our <unk>.

Donald McClymont: 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 2026, 2027, 2028, and 2029 even, as some of these design wins, of course, are for longer-term models, which are out in time. But yeah, 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 gonna be about flat.

And our AI based edge processor.

Our DRAM was architecture is creating new opportunities for us as it allows our customers to overcome the current memory supplier issues, while reducing the bill of materials and lowering system resource demands on AI processors.

Speaker #3: Unlike other tools that simply repackage search results, Discover responds in real-time and acts as a decisioning copilot, using live marketplace inventory, deep automotive expertise, and demand signals to quickly and flexibly answer consumer requests.

With this technology, we have secured new design wins in E mail or on a camera mirror systems of leading tier ones across passenger vehicles and trucks with production beginning in late 2006 and continuing for several years.

Speaker #3: Discover traffic grew three and a half times, and leads grew 10 times quarter over quarter. Depth of engagement also strengthened, with average session time up nearly 20%, and Discover users spending 4.4 times more time than regular visitors.

Within the China market, we have recently secured a design win with the leading electric vehicle manufacturer, where there any AAP for a camera mirror system, which is expected to start ramping towards the middle of 2026. This.

Speaker #3: Each interaction generates richer demand and pricing signals, strengthening our data and intelligence layer. We also extended our trusted user support into later stages of the purchase process.

This is a very critical design win for Andy as we believe it will open more strategic opportunities going forward for Adas portfolio of this key customer.

Donald McClymont: Maybe a couple of lumps here and there as we invest in tooling, but, you know, no more than $1 million, plus, minus.

Speaker #3: CarGurus was the number one car shopping app in 2025 by downloads, monthly active users, and time spent. Giving us scale at the point of purchase.

In Q4, and the completed the integration of emotion <unk>, creating a powerful ecosystem, but unites AI based perception algorithms with our hardware Soc capabilities.

Anthony Stoss: 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?

Speaker #3: Dealership mode is now live across all consumer app users, moving our role beyond Discovery and further into the transaction funnel by assisting consumers on dealer lots.

Offering flexible standalone or integrated solutions within the cabin for driver on 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 the electric origin, SUV series, including ex EV <unk> and <unk> six.

Donald McClymont: Probably, in the 25% to 30% range, perhaps. Maybe not quite as high as that anymore, actually. I'm not sure. I had to-

Speaker #3: In just the first few months, thousands of shoppers on average opened dealership mode on dealer lots each day. 80% of app users who visited dealership lot have not submitted a lead in advance.

Anthony Stoss: Twenty.

Donald McClymont: Yeah, it's a little bit less than that now, probably.

Speaker #3: That means four out of five high-intent shoppers using our app on dealer lots are not yet attributable to us. We believe that dealership mode creates a clear opportunity to increase pre-visit lead submissions and drive measurable traffic to dealers.

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

From our Photonics business units, we were awarded a design win including NRG for a distributed feedback laser trade lidar applications outside of the automotive market potentially open opening new opportunities in diverse market applications, where high precision high speed <unk> spatial information for real time detection is critical.

Craig Ellis: Yeah, thanks for taking the question. Donald, congratulations on the 20% core business growth in Q1. 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 Q1?

Speaker #3: These investments delivered greater transparency and broader support to consumers for a more seamless shopping experience. We enter 2026 with a more differentiated consumer experience and a stronger foundation to meet shoppers where they are in their journey.

In addition, we have secured our largest booking of Alex and lasers to date supporting key customers and content communications on Samsung.

Donald McClymont: I mean, yeah, radar is still relatively small volume in the last quarter and this quarter, but the-- In any design 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 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.

Speaker #3: Driver number three: Enabling dealers and consumers to complete more of the transaction online, streamlining the final steps of the deal. We scaled Digital Deal to 13,500 dealers globally, adding nearly 3,800 dealers year over year.

Our success continues in this adjacent to quantum market.

Within our power group the Chi to wireless.

Wireless charging platform production with forward remains on track for the first half of 2026.

With adoption from multiple subsequent Oems expect to follow.

Speaker #3: This growth reflects growing consumer demand for, and dealer reliance on, workflows that move more of the transaction online and generate higher-intent prospects. We embedded high-value transactional capabilities earlier in the shopping journey, including expanded financing, trade-ins, deposits, and appointments.

India is already gaining significant traction for our <unk> to $2 25 watt wireless charging solution, which offer seamless scalability, we affirm or upgrade moving to the <unk> two solution enables faster power delivery stronger magnetic alignment and broader device interoperability without replacing hardware, making this a highly attractive solution.

Speaker #3: Digital deal leads with high-value actions increased 78% year over year in 2025 and represented approximately 70% of digital deal leads. While financing-related leads grew 86% year over year.

For customers and partners.

This product is already demonstrating strength as evidenced by a leading tier one wireless charging partner upscaling to Archie to two platform with another North American OEM.

Craig Ellis: Yeah, 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 to 50 million, yeah, through 2029. But I think we've, we've talked about this business being a $100 million business in the past on an annual, 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 so really when we get out to 2029?

Speaker #3: Reflecting deeper shopper progression into the transaction and stronger purchase intent. Overall, digital deal leads convert up to 4.7 times higher than standard marketplace leads, with even greater lift for shoppers located farther from the dealership.

Recall on our previous call, we highlighted the shortage of packaged substrate is prevalent in the industry.

By ever increasing demand for AI chips.

We are pleased to report we have made meaningful progress by qualifying second source package and subsidiary 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.

Speaker #3: Delivering higher quality and higher converting shoppers to dealers. Collectively, these changes are shifting more of the transaction online while preserving the in-person experience that the vast majority of consumers still want.

I will now turn the call over to <unk> for a review of our Q4 results and business outlook.

Speaker #3: While 86% of buyers ultimately see the car in person, 83% say they want a complete more of the shopping process from home, according to our 2025 consumer insights report.

Donald McClymont: 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.

Thank you Donald and good afternoon, everyone.

In the 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 $1 million.

Speaker #3: By meeting that demand, we improve consumer engagement and offer more transaction support for dealers. That's especially important given the nature of the car buying journey, which remains a high-consideration decision and is often the second largest purchase a consumer makes in their lifetime.

Our non-GAAP operating expenses during the quarter totaled $36 8 million.

Speaker #3: Shoppers want to research and compare options, understand pricing, availability, and trade-offs, and still negotiate price and test drive vehicles in person before committing. Confidence and trust matter at every step of the journey.

With our outlook, thereby exceeding our goal of $8 million to $10 million.

As a result, our fourth quarter non-GAAP operating loss was $10 $1 million compared to $11 million last quarter, and $14 $2 million a year ago, demonstrating our continued progress towards achieving profitability.

Speaker #3: That reality continues to shape how we invest in our platform, brand, and own channels, and how we show up as Discovery paths evolve. Following the performance of the 2025 big deal campaign, we are extending the campaign into 2026 with product-led spots highlighting dealership mode and CG Discover.

Operator: Our next question is from Cody Ackery, with the Benchmark Company. Cody, is your line on mute?

With net interest expense of $2 $8 million, our net loss was $12 $4 million and loss per share was 7% on a base of 224 million shares.

Speaker #3: We believe these experiences bring clarity and confidence to the car shopping process and reinforce the trust consumers place in CarGurus as the number one most visited automotive marketplace.

Donald McClymont: I think Cody actually already asked this question.

Please refer to the presentation located on our website for a more detailed breakdown of non-GAAP measures.

Cody Acree: Yeah. Yeah, actually, I've just had a quick follow-up, Donald. Sorry, I was on mute.

Donald McClymont: That's all right.

Turning to the balance sheet, we exited the quarter with total cash and cash equivalents, including restricted cash of $155 $7 million.

Cody Acree: 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?

Speaker #3: We expanded our impressions by 50% year over year, and direct and owned channels are our fastest growing traffic sources, with direct visits up 16% year over year and the app contributing 34% of leads.

$15 5 million decreased versus the third quarter of which $6 $8 million is for our semi annual interest payment on the outstanding comment upon that.

Speaker #3: We're also leading automotive marketplace competitors in the emerging AI-driven Discovery landscape. While AI remains a small share of overall traffic today, in Q4, CarGurus generated more AI-driven traffic than our closest competitors.

As you may recall in the fourth quarter, we announced that <unk> had entered into a definitive agreement with United States Auto Engineering Co limited.

Donald McClymont: 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... And 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.

A publicly listed company in China to sell our entire outstanding equity interests in Wuxi in the micro for growth proceeds of approximately $135 million payable.

Speaker #3: And these users converted higher rates. Submitting leads at nearly 50% higher rates than traditional SEO in Q4. To date, AI traffic has been additive to our overall acquisition mix, increasing visibility rather than displacing existing channels.

Tabling cash upon closing.

Apropos taxes and fees.

The transaction continues to progress towards closing.

Speaker #3: AI is reshaping discovery across many categories. In automotive, the shift has been more measured. However, we are not waiting for it to accelerate. We are expanding AI-driven traffic across both paid and non-paid channels.

As part of the customary closing conditions USAA obtain.

Requisite shareholder approval in late 2025.

The transaction remains subject to regulatory approval in China, including both Shenzhen stock exchange and CSR.

Speaker #3: On the paid side, we've been early adopters of new AI-powered tools with Google, Bing, and Meta, with promising initial performance results. We plan to test emerging AI search ad formats, including those introduced by OpenAI as they become available.

While the timing of the quality remains uncertain, we continue to be optimistic that it will occur by the late 2026 timeline, we previously communicated.

Donald McClymont: And 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.

Moving to our outlook for the first quarter of 2026, we expect to deliver total revenue between $52 million to $58 million.

Speaker #3: On the non-paid side, we have strengthened and will continue to evolve technical platform best practices and scaling proprietary content so it is discoverable across LLM environments, not just traditional organic search.

$5 million at the midpoint.

We anticipate a decline in first quarter revenue from Wuxi to $21 million due to a lower demand from EV subsidies and the Chinese new year shutdown. However.

Operator: 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.

Speaker #3: We believe our depth of experience and success in audience acquisition across many channels combined with a disciplined test-and-learn approach positions us well as this landscape evolves.

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

However, we expect our revenue from our core business to grow by an impressive 20% sequentially to $34 million at the midpoint.

Speaker #3: While AI may shape how shoppers begin their journey, it does not change what they need in a major purchase. Clarity and confidence. Even when journeys start in AI environments, consumers still come to CarGurus to validate listings, confirm availability, and make data-driven decisions.

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

We expect our non-GAAP operating expenses to be $37 million for Q1 relatively flat to Q4 'twenty comes back.

Assuming a net interest expense of approximately $2 $6 million with no tax expenses, we expect a 7% net loss per share based on 223 million shares at the midpoint of the revenue range.

Speaker #3: As Discovery paths evolve, platforms with the deepest inventory brought us dealer coverage, most comprehensive retail data, and highest ROI will be best positioned to remain central to the transaction.

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 Indy is financially well positioned to support our path to strong and profitable growth at design wins ramp into 2026.

Speaker #3: We believe our market leadership, data depth, and dealer integrations position us to continue serving that role.

With that I will turn the call back to Daniel for closing remarks.

Thank you <unk>, our core business remains solid as evidenced by strong fourth quarter results.

Radar envision programs remains firmly on track highlighted by our tier one partners recent release of their advanced Gen. Eight 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 in these technology leadership and expanding product portfolio positions us well to drive growth. We believe no. Other semiconductor company offers a product portfolio is well suited as India 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 will 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 and may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Yes.

Yeah.

Thank you. Our first question is from Cody Acree with benchmark company.

Thanks, guys for taking my questions and congrats on the progress.

And just one point of clarification can you give me the wuxi revenue for Q4.

Yes, it was around 29.7.

$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.

At the local people are getting.

And any color or unexpected ramping into Q2.

Okay.

I mean, we do that we do expect that to recover in Q2.

Of course, we know we're in the process of selling that business.

But yes, we do expect that the banks a little bit in Q2.

Okay, great. Thanks.

Donald Martin can you just provide any further color on the.

The slope of the ramp of your radar programs that you're expecting for the balance of 'twenty six.

Yeah.

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 boat.

But 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 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.

We expect but where we feel we're in a really good spot right now.

And just to follow up there.

The constraints that you are 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.

The product portfolio basically.

And the type of products that had substrate exposure.

<unk> did have some risk mitigation that so some products that we had inventory of ships.

Really there is maybe a little bit less than $1 million of demand that.

But its still questionable that we might get or not based on based on supply, but we've made some significant progress versus versus Q4, where.

In fact at around $5 million in that quarter.

Excellent. Thank you.

Yeah.

Our next question is from Sujit Silva with Roth Capital partners.

Hi, Donald how nicely congratulations on the progress here on the tier one.

Donald you've given us a backlog numbers in the past any update there or any new design wins to talk about any of at least two big programs coming but any any color there would be helpful.

Anthony Stoss: 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 Q1?

Yeah, I mean as we can.

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 or not during the last quarter, but no Noah.

Hello.

Onto firewall update right now.

Okay.

Alright, Thank you Donald 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.

Anthony Stoss: Excellent. Thank you.

Yes.

We're doing well in all regions.

Again, I mentioned in the script that we have exposure to Oems.

Operator: Our next question is from Suji DeSilva with ROTH Capital Partners.

Based over all parts of Europe also.

Suji DeSilva: Hi, Donald. Hi, Naixi. Congratulations on the progress here on the tier one. 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 two big programs coming, but any color there would be helpful.

In Asia, China.

India actually is as part of that.

So I.

I mean, we're we're feeling very good about where we are generally worldwide.

Our next question is from Jon <unk> with CJS Securities.

Hi, This is well on for John is there any update on the size of the opportunity within robotics, and <unk> and the quantum spacing if for when those can become significant contributors.

While the robotics space is hard to call, but I mean, we are just seeing a phenomenal amount of activity in that space and the.

The products that we make for automotive are basically 100% compatible with their needs.

Suji DeSilva: 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?

But that these guys have are.

For these applications so.

We are very optimistic about it we do feel that it can be 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 we are beginning to make some significant traction in that space.

We shipped about $1 million worth of optical products in that.

And that application and in 2025, and we expect maybe.

Around a trebling of that through 2026. So we are seeing increased momentum in that space also.

Operator: Our next question is from Jonathan Tanwanteng with CJS Securities.

Thank you and in regards to the supply chain constraints keep that add some more color on how youre thinking about the timeline to a full resolution.

I mean, it's the tightness is really driven by the uptick in AI and 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.

We made some pretty good progress in the last 90 days to to address that.

We are seeing signs that several suppliers are making investments to 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.

As I said, we've made some good progress on bringing on new suppliers.

And we hope that.

That we can manage through this 26 year without really taking any bumps on our site.

While we get through to 'twenty seven, but that's basically the best visibility we have right now.

Jonathan Tanwanteng: 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?

Our next question is from Anthony Stoss with Craig Hallum.

Good afternoon, everybody Donald in the past I think you've talked about the total range of expected radar revenue for you guys for 2026 to be somewhere between I think it was 30% 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 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 haven't really anticipated would would.

It would be early adopters and it turns out that debt.

They are going in that direction.

That means that we will have a like a steady.

And steep ramp over the course of 'twenty six 'twenty 728, and 2009 even.

Some of these design wins of course are for longer term models, which are out in time.

But yes.

I mean generally speaking the momentum has been strong behind the program.

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

And I think you can assume on opex side that it's that it's basically going to be about flat.

Maybe a couple of bumps here and there as we.

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 is still remains in China.

Hi.

Probably.

And the 25% to 30% range perhaps.

Let me know Quantifies out anymore actually I'm not sure.

Yes, it's a little bit less than that in that program.

Okay.

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

Yes, thanks for taking the question Donald Congratulations I'm now, 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 as radar on that list or are we just smaller volumes.

Sure.

I mean, you have radar.

Radar is still relatively small volume in the last quarter on this quarter, but.

Donald McClymont: Maybe a couple of lumps here and there as we invest in tooling, but, you know, no more than $1 million, plus, minus.

And any design and any and especially in a program of this magnitude.

The first product that you ship are very much the most important.

Anthony Stoss: 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?

Claims the Python and proves the existence.

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 from the <unk> side.

Donald McClymont: Probably, in the 25% to 30% range, perhaps. Maybe not quite as high as that anymore, actually. I'm not sure. I had to-

Or in the <unk> hundred 80 processor has been super successful and now that we're beginning to bring to market.

Anthony Stoss: Twenty.

Donald McClymont: Yeah, it's a little bit less than that now, probably.

A version of that chip, which also has an AI edge processor integrated in it where we're seeing continued momentum in that space also.

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

And then a follow up just the prior question just on the arc.

<unk> through time and it sounds like it just continues to scale off from what could be 30 to 50 million.

Through 2029, but I think we've talked about this business being $100 million desktops in the past.

An annual annualized basis are you starting to get visibility on when we get that then would that be 2028 or or would would it be potentially sooner. So really when we get out to 2020.

I mean, I think the answer to your question is yes, we are getting continued visibility improvement and thats as we as we progress through the whole process of deployment.

It's probably a little early to call exactly when and what date that we cross $100 million Bucks I mean, we are feeling increasingly confident and positive about where we're going with us right in Ireland.

I mean, it is kind of driving us crazy they might've support work that we're having to do in the amount of supply chain.

Expansion that we're having to do in order to prepare for it. So I mean that gives you an indication of where we think we are then I.

I hope I hope that sufficient.

Yeah.

Our next question is from Cody accurate with the benchmark company.

Yeah.

Okay.

Cody is your line on mute.

I think Cory actually already asked this question, yes, yes, actually I just had a quick follow up down sorry, I was on mute.

Just your comment lastly, about increasing your supply side last quarter you mentioned.

Your efforts too.

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 the spending for that.

I mean from from packaging side.

We enabled a new substrate supplier and also a new packaging house. So basically now we have four combinations of substrate in packaging hopes 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.

Operator: Our next question is from Cody Ackery, with the Benchmark Company. Cody, is your line on mute?

China for China, and non China for non China supply base in that space.

And.

I think in a minute answer to your question the short term are.

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.

Donald McClymont: I think Cody actually already asked this question.

Cody Acree: Yeah. Yeah, actually, I've just had a quick follow-up, Donald. Sorry, I was on mute.

And at this point, we're basically seeing our opex remaining reasonably flat through through 2006, there may be a couple of bumps in the road as we spend on tooling, but as you know each bump is probably less than a million dollars.

Donald McClymont: That's all right.

Thank you there are no further questions at this time I would like to hand, the floor back over to Donald and the climate 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.

Operator: 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.

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

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

Q4 2025 Indie Semiconductor Inc Earnings Call

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