INDI

indie is an ADAS mixed-signal chip designer whose growth story has stalled while its losses have deepened. Revenue was $217M in FY2025, essentially flat (+0.3% YoY) and actually below the $223M printed in FY2023 — two years of no growth. Against that flat top line, the P&L is deeply underwater: operating margin of -70.9%, net margin of -65.8%, a -$154M operating loss and a -$143M net loss that is getting worse, not better (net income YoY -7.9%). Retained deficit has swelled to -$637M and ROE is -40%. This is a company burning ~$57M of operating cash a year plus $14M capex, and the balance sheet shows the strain: cash fell 47% to $145M in a single year, meaning roughly two years of runway at the current burn while carrying $340M of long-term debt against $358M of equity (1.28x liabilities/equity). Share count also rose 12.7%, so holders are being diluted while the losses accumulate.

The pending Wuxi divestiture is the decisive wildcard, and it cuts against the bull case. The October 2025 Asset Purchase Agreement would sell indie's 34.38% Wuxi interest for ~$135M cash — genuinely helpful for liquidity and roughly doubling the cash pile. But the MD&A is explicit that Wuxi was ~43% of consolidated revenue in FY2025 while only ~11% of operating expenses. Deconsolidating it therefore removes nearly half the revenue but almost none of the cost base — the 'core' indie left behind is a far smaller, structurally lower-margin business than the $217M headline suggests. The deal is also non-binding in origin and contingent on Chinese regulatory and Shenzhen Stock Exchange / CSRC approvals, so both timing and closure are uncertain.