Good afternoon, and welcome to the Indy Semiconductor's First Quarter 2026 Earnings Call. Currently, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. 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.

Thank you, Operator.

Good afternoon, and welcome to Indy's First Quarter 2026 Earnings Call. Joining me today are Dal McClymouth, Indy's CEO and co-founder, Naishi Wu, Indy's CFO, and Mark Tindall, EVP of Corporate Development and Investor Relations. Dal will provide opening remarks and discuss business highlights. Naishi will then provide a review of Indy's Q1 results and business outlook. Please note that we'll be making forward-looking statements based on current expectations and assumptions which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. Material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by our quarterly reports on Form 10-Q, as well as other public reports filed with the SEC. Finally, the results and guidance discussed today are based on consolidated non-financial gap measures such as non-gap operating loss, non-gap net loss, and non-gap net loss per For complete reconciliation to gap and the definition of the non-gap reconciling items, please see our Q1 earnings press release in addition to a presentation summarizing our quarterly results and more details on non-gap measures as posted on our website in advance of this call at www.indy.inc. I'll now turn the call over to Donald.

Thanks, Ashish, and welcome, everybody. Indy delivered a solid first quarter with revenue of $55.5 million, approximately half a million above the midpoint of our guidance, and up 3% year over year. Before turning to our business achievements, let me provide some context on the market environment. Looking at the broader automotive semiconductor market, we see a measured recovery, with channel inventories largely normalizing and demand environments characterized as cautious but improving. Underlying global vehicle production remains range-bound, while secular content drivers, including the continued transition to software-defined vehicles, expanding ADAS adoption, increasing exterior and in-cabin sensing requirements, are fueling demand for semiconductor content per vehicle, as was always our thesis. This is the backdrop against which Indy continues to advance our radar, vision, and photonics portfolios, supporting growth that will consistently outpace the market. On a macro level, geopolitical tensions and shifting trade dynamics continue to impact the global supply chain, affecting peers, customers, and suppliers alike. These dynamics have contributed to elevated logistic cost and selective capacity constraints across the industry. However, even against this backdrop, Indy is maintaining a positive trajectory, successfully managing through these challenges. Indy is experiencing tremendous growth in interest and activity in quantum and robotics. We continue to forge new opportunities with some of the trend-setting emerging companies in these high-growth markets, with our expanding photonics portfolio in quantum and our vision processing and sensor ICs in embodied AI. As noted by the International Federation of Robotics, the broader robotics market, which spans industrial robots, mobile robots, robots, humanoids, and drones, is forecast to grow from approximately 88 billion in 2026 to over 218 billion by 2031, a CAGR of nearly 20%. Within that opportunity, the Yoli Group states that the global humanoid robotic market is said to increase from 600 million in 2025 to 6 billion in 2030 at a CAGR of 56% and then accelerate to 51 billion by 2035, a CAGR of 55% between 2030 and 2035. Let me now turn to our recent business progress and key achievements during the past quarter. I'm extremely pleased to share that our Tier 1 partner, who recently launched their Gen 8 radar solution built on Indy's 77 gigahertz radar technology, representing the first 4TX8RX radar available in the industry, has committed to a new production order of 25 million, driven by support for two key EOMs, one European and one Asian. This milestone is particularly rewarding as this order confirms previously communicated production expectations and multi-OEM acceptance following successful design, testing, and qualification over the past many months. We are now positioned to ramp production efficiently, having secured additional back-end and test capacity across multiple suppliers in preparation for the ramp ahead. In parallel, we are advancing our second-source foundry strategy to support the manufacturing flexibility and in some cases to support a no-China, no-Taiwan requirement demanded by certain industry players. Moving to our vision portfolio, the IND 8080 vision processor has begun production supporting e-mirror camera functionality at NIO, a premium Chinese EV OEM. This program moved from design to production in approximately six months, a testament to our team's technical readiness, execution discipline, and close collaboration with customers and partners, and further reinforces our commitment to reducing time to market and accelerating deployment. In addition, the camera-mirror system, when we referenced last quarter with the largest Chinese OEM, is now entering volume production. Additionally, at the prestigious Beijing Auto Show, several exciting new models featured Indy technology, including the Buick GL8, the Ito M9, the Neo ES9, and the Cadillac Vistik, to name a few. These models are now entering the production phase in 2026. A defining advantage of the IND 880, and increasingly a focal point in our customer engagements, is its DRAM-less architecture. By eliminating the need for external memory, the IND 880 helps customers navigate any DRAM supply constraints. In many cases, our customers are unable to source memory at all, and using the 880 allows them to alleviate line-down situations. If DRAM can be sourced, it comes at a price premium measured in multiples rather than percentages. 880 therefore massively reduces overall bill of materials, in addition to lowering system resource demands on downstream AI processors and improving image signal processing throughput and real-time latency. What was originally an attractive design point for China OEMs has rapidly broadened into a global value proposition. We are now seeing accelerating engagement and likely commitments from US customers, often on compressed timelines, as the architectural benefits of going memoryless are recognized across the industry. We expect this to remain a meaningful growth driver for our vision portfolio through 2026 and beyond. By way of update on our perception software portfolio following the integration of Emotion 3D, we recently announced a strategic partnership with Mahindra, a leading Indian OEM, to supply our OMS-DMS perception suite for the electric origin SUV series. Additionally, we expect commitments from U.S.-based customers in the near future to add to our momentum. Our photonics portfolio continues to gain meaningful traction in the rapidly expanding quantum technology market. During the quarter, we announced the world's first commercially available ultraviolet distributed feedback, or DFB, laser at 399 nanometers, a wavelength precisely matched to the atomic cooling transition of yterbium, the element used in the neutral atom quantum computing architecture that leads the industry today in physical qubit count. Our broader visible DFB laser family now spans wavelengths from the near ultraviolet to green, addressing the cooling, trapping, and excitation requirements across the four atomic species that account for the substantial majority of cold atom quantum computing development. We are actively engaged with several of the leading quantum computing companies on next-generation laser source requirements, and we believe our differentiated photonics platform positions India as a key enabling supplier to the quantum ecosystem as it scales over the coming decade. In the LiDAR space, we are finally beginning to see the adoption of FMCW technology into multiple markets. Our integration partners are completing designs which incorporate Indy's IND83301 SoC into their products, replacing FPGA-based processing and delivering an 80% reduction in power consumption, a 40% reduction in solution size, and a market-making cost position. We are seeing traction not only from the automotive industry, but from multiple areas in embodied AI. A key producer of AMR or autonomous mobile robots for warehouse management is engaged. Generally speaking, the embodied AI market is generating demand for many of our sensing products centered around vision, but including LiDAR and radar, with applications also ranging from AMR through humanoids to drones. Our sensing technologies allow robots to better understand and navigate unpredictable environments and enable the transition from more traditional industrial robot implementations to more advanced, truly autonomous units. The pace of engagement is electrifying. We expect that it will begin to lead the automotive market in driving new technology as opposed to leveraging existing technologies. With that, I will turn the call over to Naishi to walk through our financial results.

Thank you, Donald, and good afternoon, everyone. Indy's first quarter revenue was $55.5 million, exceeding the midpoint of our outlook by half a million dollars, representing an increase of approximately 3% compared to the prior year period. Revenue from our core business was approximately $34.1 million, a sequential growth of over 20%, reflecting the continued momentum in our core ADAS portfolio. Revenue from Wuxi was approximately $21.4 million, consistent with our expectations. Non-GAAP operating expenses during the quarter totaled $37.3 million, consistent with our outlook. As a result, our first quarter non-GAAP operating loss was $11.1 million compared to $15.1 million in the comparable period in 2025, demonstrating our continued progress towards achieving profitability. With net interest expense of $2.8 million, our net loss was $13.9 million and loss per share was six cents on the base of 223 million shares, consistent with our guidance last Please refer to the presentation located on our website for a more detailed breakdown of our non-GAAP measures. Turning to the balance sheet, during the quarter, we issued a 4% convertible senior note due 2031 with an aggregate principal amount of $170.5 million, or a net proceeds of approximately $165 million after fees and offering costs. We use these net proceeds to repurchase a significant portion of our 2027 notes for a total of approximately $108 million. The remaining proceeds are retained for working capital and general corporate purposes. This refinancing extends our debt maturity profile by approximately four years, lowers our coupon, and enhances our financial flexibility to support our growth strategy. As a result of the debt issuance and repayment activity I just discussed, along with routine operating activities, we exited the quarter with total cash and cash equivalents, including restricted cash of $184.7 million, a net increase of $29 million from the fourth quarter of 2025. Turning to the previously announced potential divestiture of our equity interest in Wuxi Indy Micro, as you may recall, we entered into the definitive agreement in October 2025 to sell our entire interest in Wuxi to UFA for approximately $135 million, payable net of taxes and fees in cash at closing. Following UFA's shareholder approval in November 2025, the transaction commenced its required regulatory approval process in China, including reviewed by the Shenzhen Stock Exchange and the CSRC, and has continued to advance since While the exact timing of closing remains subject to the completion of that regulatory process, the transaction is progressing well, and we remain optimistic that the transaction will close later this year, consistent with our prior updates. Moving to our outlook for the second quarter of 2026, we expect to deliver total revenue between $59 to $65 million, with $62 million at the midpoint. We anticipate a revenue contribution from Wuxi in the second quarter of $25 million, with our core business contributing approximately $37 million at the midpoint, representing approximately an 8% growth sequentially, or about 20% year-over-year growth in our core ADAS photonics and adjacent business. We expect our non-GAAP operating expenses to be $38 million for Q2, relatively flat compared to Q1. Below the line, we expect net interest expense of approximately $3.1 million with no tax expenses. Assuming the midpoint of the revenue range and with a base of 227 million shares, we expect to improve our net loss per share to $0.05. From a financial perspective, our strong focus on managing operating expenses and our solid balance sheet, including anticipated proceeds from the sale of WUSHI, INDI is financially well positioned to support our path to strong and profitable growth as design wins ramp through 2026. With that, I'll turn a call back to Donald for closing remarks.

Thank you, Naishi. Indy's business remains very solid as evidenced by strong first quarter results and positive outlook for the second quarter. Radar and vision programs remain firmly on track, highlighted by success at multiple OEMs. With the addition of quantum and embodied AI, Indy's technology leadership and expanding product portfolio positions us extremely well to drive growth we believe no other semiconductor company offers a product portfolio as well suited as indies to meet the diverse needs of these emerging markets we are confident in our business as our radar and vision design wins continue to ramp that concludes our prepared remarks operator please open the line for questions thank you if you'd like to ask a question press star one on your keypad to leave the queue at any time press star two.

Once again, that is star and one to ask a question. And we'll take our first question from Cody Acri with Benchmark Stone X. Please go ahead. Your line is now open.

Yeah, guys, thanks for taking my questions and congrats on the progress. Donald, maybe when you start with your $25 million order, can you maybe just walk us through your expected delivery schedule?

How does that pace through the rest of the year well I mean first of all we are super excited to receive the the order especially as it came in sort of one big discrete chunk and it underlines the commitment of our tier one customer to to the the end customers that they have committed to them at this point so you know we're super excited about that I mean we obviously we knew about the situation ahead of time, but the fact that we were allowed to publicly discuss this and highlight this fact was super exciting for us, and hopefully that gives an indication to the market that the impending reality of what we're doing here with this huge project is coming to fruition. In terms of how we schedule it out, I mean, it's not the only order we have, and it's the only order that we'll get, and it is sort of, let's say, tied to a couple of key customers to make sure, the thinking behind it is really to make sure that we can secure capacity and all that stuff, and having the orders on the books is hugely advantageous and helpful in that respect, and, you know, we talked about that in the prepared remarks, but it was one of the tools that we used to go do that. So we don't expect that we'll give details of when this particular order is running out, but it's going to be the first of many as we drive towards maximizing the revenue that we get out of that of this project are those wafers already in the the path of the working process and can you just talk about delivery schedules for revenue ramp I mean we have a bunch of wafers in the line of course we've talked about that in the past as well and you know we have secured capacity for those guys, too. We do expect that it will contribute meaningfully in this year, and obviously we're just reconfirming that, really.

And you talked about a way for packaging. I mean, back-end packaging tests and substrate availability and then your diversification and your foundry strategy. Can you just update us on the progress, what's left to be done, and is that now substantially behind you?

I mean, you know, the market is very tight right now because of the demand from AI. It's not going to be something that we can just leave to run automatically. It's going to be something that we're going to have to have a watchful eye over for the foreseeable future. But I think we're comfortable now with diversification of the supplier base that we have and with our ability to therefore deliver to that.

Great. Thanks, guys. Congrats.

All right. Thanks, Cody.

Thank you. We'll take our next question from Suji Dasilva with Roth Capital. Please go ahead. Your line is open.

Hi, Donald. Hi, Naishi. Congratulations on the initial PO, Donald. Can you maybe give us some sense of the initial customer and customers of your customer and what the auto models they're using this for? Is it premium, mainstream, L2+, or advanced L3, L4? Any color that you'd have about where this is landing would be helpful.

Well, I mean, it's largely mainstream. We're supplying a number of radars per vehicle in most cases. The kind of vehicles that we're supplying to range from low to mid-tier through high tier through even commercial vehicles. and we'll see our products adoption being really deep and large and the penetration about of it being very widespread. We're not certainly married to level three, level four, or anything really higher end. These are products that you'll find on something like a Volkswagen Golf or a Toyota Corolla, so it will be deeply penetrated.

That's very helpful. And can you help us understand how this tier one layers in beyond the initial two customers for this PO? Are there more customers behind it, or will these two customers first ramp initially? How will that progress in your pipeline?

No, I mean, there are a bunch of customers expected to ramp at varying times through all jurisdictions in the field, ranging from China through Europe through U.S. So, this is just specifically that this purchase order really was driven to provide a commitment to the two OEMs that we talked about in the script. It's not, it's by far, it's far from limited to those two.

Thank you. We'll take our next question from Anthony Struss with Craig Hallam. Please go ahead. Your line is now open.

We're pretty close on the pronunciation.

Donald, I wanted to hone in on the Indy 880. can you can you maybe share a range of the pipeline or the opportunity the design was you have and then I'd love to hear if you think the Indy 880 solution might generate more revenue for you than radar in 2026 it's yeah I mean I mean we're we've been super surprised and excited by the resonance of this I mean we knew the commercial value of it but you know actually seeing it and feeling it took a little longer to get to some of the customers who are a little more conservative and maybe believe that they would be able to source what they needed in memory and, of course, turned out not to be the case. I mean, we're seeing a pipeline of tens of millions of dollars per year in annual revenue, and it is moving very, very fast indeed because of just the needs must. I mean, the memories are hard to source, and if you can get them, they're going for two, three, four times their normal price. So, yeah, it is maybe even possible that it might exceed radar in this year.

Got it. And then in your prepared remarks and in the press race, you talked about drones. Would this same Indy 880 be going into that, or what kind of solutions from Indy would be going into a lot of these drones that you're talking about?

I mean, we have a bunch of activities ongoing. 880 is one of the products that are being looked at right now. There's a derivative of it, which is also able to have some other functionality, including an AI processor, which we've talked about briefly in the past. It may also get used. They are beginning to look at LiDAR processor, and even through our automotive tier one customer, we're seeing demand for the radars going on these things, too. So there's a very high level of content. The market is moving extremely quickly, and the dollar values of ASPs are good.

Thank you. We'll take our next question from John Taniwagig with CJS Securities. Please go ahead. Your line is now open.

Hey, this is Will on for John. Last quarter, you had some headwinds in the Wishu business. Can you just talk more about the underlying trends there and how they're developing?

Yeah, I mean, there were some headwinds in the China market, particularly at the lower end of the e-vehicle market, really driven by a change in the subsidy policy of the Chinese government, which we saw hit through Q1. And as we highlighted in last quarter's earnings, and we reiterated here, we are expecting a good bit of a bounce back in the next quarter. so we believe that those issues are resolving. Generally speaking, in the China market, we see some unit headwinds, but the content per vehicle is increasing significantly, and so we believe that's offsetting, and we're seeing that in the strength, particularly of our vision portfolio in China at the moment. Thank you.

Thank you. There are no further questions online at this time. I'll turn the meeting back over to Donald.

Well, thanks everybody, thanks for your time and looking forward to seeing you at the investor conferences over the course of the quarter.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.