Shares of Indie Semiconductor Inc. (NASDAQ: INDI) plummeted 7.61% in intraday trading on Friday, as investors reacted to the company's disappointing third-quarter 2025 financial results and weak fourth-quarter outlook. The automotive semiconductor company's performance fell short of analyst expectations, triggering a significant sell-off.
Indie Semiconductor reported Q3 revenue of $53.7 million, slightly below the analyst estimate of $54 million. While this represents only a minor miss, investors were more concerned about the company's forward guidance. For the fourth quarter, Indie Semiconductor expects revenue between $54 million and $60 million, with adjusted gross margins in the range of 46% to 47%. Adding to the pessimism, the company revealed that shortages in the supply of package substrates are expected to negatively impact fourth-quarter revenue by approximately $5 million, highlighting ongoing supply chain challenges.
Despite some positive developments, including an expanded strategic backlog of $7.4 billion and new design wins in ADAS and industrial markets, these were overshadowed by the near-term challenges. The widened operating loss of $38.3 million for Q3, compared to a loss of $49.9 million in the same quarter last year, further contributed 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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