Shares of indie Semiconductor Inc. (NASDAQ: INDI) tumbled 7.3% 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 analyst estimate of $54 million. While this represents only a minor miss, investors seemed more concerned about the company's forward guidance. indie Semiconductor expects Q4 adjusted gross margin to be in the range of 46% to 47%, indicating potential pressure on profitability. Additionally, management noted that shortages in the supply of package substrates are expected to negatively impact fourth-quarter revenue 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. The widened operating loss of $38.3 million for Q3, compared to a loss of $49.9 million in the same quarter last year, may also be contributing to investor concerns about the company's path to profitability. As indie Semiconductor continues to navigate supply chain issues and work towards improving its financial performance, investors will likely be closely monitoring the company's progress in the coming quarters.
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