Why Indie Semiconductor Stock Fell After Earnings

Indie Semiconductor (NASDAQ: INDI), which makes semiconductor chips for automobiles, reported a net loss and weaker-than-expected sales in its first-quarter 2025 earnings report last night, and weak sales guidance as well.

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Indie stock fell nearly 10% initially on the news, but is already clawing back some of its losses. As of 10:15 a.m. ET, Indie shares are down only 1.5%.

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Indie Q1 earnings

Analysts expected Indie to lose $0.08 per share in Q1 on sales of $54.7 million. The company ended up reporting the expected $0.08 loss, but only on an adjusted basis. Earnings as calculated according to generally accepted accounting principles (GAAP) showed an $0.18-per-share loss, and sales fell short at $54.1 million.

That was still 3% more revenue than Indie produced in Q1 last year, so the news isn't all bad. But Indie then turned around and guided investors to expect only $50 million to $53 million in Q2 sales, or $51.5 million at the midpoint.

Is Indie stock a sell?

That's less than Indie got in last year's Q2. Worse, analysts had told investors to expect Q2 sales of $56 million. So what Indie really told investors last night is that after missing on sales in Q1, it's going to miss again in Q2.

So what are we really looking at here? In Indie Semiconductor, we have a stock where sales are slow and actually starting to decline, with tariffs worsening the problem. Profits are nonexistent, and free cash flow has run negative for seven straight years.

Folks, I think it's time to sell Indie Semiconductor stock.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.