Shares of indie Semiconductor Inc. (NASDAQ: INDI) tumbled 7.51% in after-hours trading on Thursday following the release of its third-quarter 2025 financial results, which fell short of analyst expectations and included a disappointing outlook for the fourth quarter.
The automotive semiconductor company reported Q3 revenue of $53.7 million, slightly below the IBES estimate of $54 million. The company's operating loss widened to $38.3 million, compared to a loss of $49.9 million in the same quarter last year. On a non-GAAP basis, indie Semiconductor posted an adjusted operating loss of $11.3 million, showing some improvement from the $16.8 million loss in the prior-year period.
Adding to investors' concerns, indie Semiconductor provided a weak outlook for the fourth quarter. The company expects Q4 adjusted gross margin to be in the range of 46% to 47%, indicating potential pressure on profitability. Management also noted that shortages in the supply of package substrates negatively impacted its fourth quarter revenue outlook by approximately $5 million. Despite some positive developments, including an expanded strategic backlog of $7.4 billion and new design wins in ADAS and industrial markets, the market appears to be focusing on the near-term challenges facing the company.
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