Imagination Technologies, the Hertfordshire microchip designer owned by Chinese-backed investors, has warned of “material uncertainty” over its future after revenue fell 39.7 per cent to $65.1m in 2025, leaving it at risk of breaching its debt covenants.
The company said in its accounts that the fall in revenue was primarily due to the end of a long-term customer relationship, thought to be with Apple. It also flagged softness in the automotive sector due to “challenging macroeconomic conditions”.
Imagination said it had “insufficient cash to comply with minimum liquidity requirements for loan covenants” on its financing from Fortress Investment Group, the US private equity firm. Fortress provided the company with a $100m convertible loan in July 2024.
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