Impact of Subscription Licensing Program Changes on Margins
Gross profit increased to a record $137.8 million, but gross margins declined by 40 basis points to 18.1% due to changes in partner subscription licensing programs.
The decline in gross margin was primarily driven by these licensing program adjustments, which management indicated had a significant impact in Q2.
Entered a new $150 million revolving credit facility to enhance financial flexibility.
Free cash flow was negative $47.1 million due to $55 million purchase of the Farmers Branch facility and higher CapEx of $66.3 million.
GAAP net income was $9.1 million or $0.12 per share; non-GAAP net income was $21.2 million or $0.27 per share.
GAAP operating income was $12.3 million, up from $3.3 million in Q1; non-GAAP operating income was $22.8 million, up 35.2% from Q1.
Non-GAAP gross margin was 38.5%, at the low end of the range and 0.7 percentage points lower than Q1, mainly due to lower Systems segment margins and ramp-up costs for an HBM DRAM customer.
Probe Cards segment revenues were $162.1 million, up 18.7% sequentially, driven by foundry, logic, and DRAM markets.
Q2 revenues were $195.8 million, $0.8 million above the high end of the outlook range, with a 14.3% sequential increase and a 0.8% year-over-year decrease.
Systems segment revenues were $33.7 million, down $1.1 million sequentially, comprising 17.2% of total revenues.
Total cash and investments were $253 million, down $50 million from Q1.
Cash and restricted cash totaled $202.9 million at quarter end, down from $246.9 million in Q1, including $26.8 million used to repurchase convertible notes and $1.3 million for restructuring.
Indie Semiconductor reported Q2 2025 revenue of $51.6 million, exceeding the midpoint of guidance despite challenging automotive market conditions.
Net loss was $16.2 million or $0.08 per share on 215.3 million shares outstanding.
Non-GAAP gross margin was 49.1%, above the midpoint of outlook, with non-GAAP operating loss improving to $14.5 million from $17.2 million a year ago.
Operating cash usage excluding these events declined to $16 million, reflecting improved operating efficiency and working capital optimization.
Adjusted EBITDA for Q2 was $271 million, representing about 39% of revenue.
Adjusted net income was $203 million or $0.41 per diluted share.
Cash flow remained strong with $165 million in net cash from operations and $117 million in free cash flow.
Operating expenses excluding stock-based compensation rose 23% year-over-year to $448 million, driven by investments in platform operations and AI capabilities.
The company ended the quarter with $1.7 billion in cash, cash equivalents, and short-term investments.
The Trade Desk reported Q2 2025 revenue of $694 million, a 19% year-over-year increase, or approximately 20% excluding political ad spend from the prior year.
The Trade Desk repurchased $261 million of Class A common stock during the quarter.
Dafinchi