What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 141 added, 76 removed, 577 unchanged (27% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

Operating expenses:

8 unchanged sentences

Income before income taxes

Provision for income taxes

Provision (benefit) for income taxes

Net income per share:

4 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive income (loss), net of tax:

Net unrealized gain (losses) on available-for-sale debt securities

Net unrealized gain (loss) on available-for-sale debt securities

Other comprehensive income (loss), net of tax

51 unchanged sentences

(in thousands)

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

Cash flows from operating activities:

31 unchanged sentences

Income taxes paid, net of refunds

Long-lived assets received in lieu of cash

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3 unchanged sentences

Treasury Stock

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Paid-In Capital

Other Comprehensive Loss

Retained Earnings

Stockholders' Equity

Balance at April 1, 2026

Other comprehensive loss

Cash dividends paid on common stock ($ 0.05 per share)

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

Withholding taxes related to net share settlement of restricted awards

Repurchases of common stock

Stock-based compensation expense

Balance at June 30, 2026

Total Company Stockholders' Equity

Treasury Stock

Six Months Ended June 30, 2026

Paid-In Capital

Other Comprehensive Income (Loss)

2 unchanged sentences

Balance at January 1, 2026

Other comprehensive income

Other comprehensive loss

Cash dividends paid on common stock ($ 0.05 per share)

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

2 unchanged sentences

Stock-based compensation expense

Balance at March 31, 2026

Balance at June 30, 2026

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3 unchanged sentences

Treasury Stock

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Other Comprehensive Income (Loss)

1 unchanged sentence

Stockholders' Equity

Balance at April 1, 2025

Other comprehensive income

Cash dividends paid on common stock ($ 0.05 per share)

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

Withholding taxes related to net share settlement of restricted awards

Stock-based compensation expense

Balance at June 30, 2025

Total Company Stockholders' Equity

Treasury Stock

Six Months Ended June 30, 2025

Other Comprehensive Income (Loss)

Retained Earnings

Stockholders' Equity

Balance at January 1, 2025

2 unchanged sentences

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

2 unchanged sentences

Stock-based compensation expense

Balance at March 31, 2025

Balance at June 30, 2025

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1 unchanged sentence

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

(the “Company”), a Delaware corporation, is one of the industry’s largest intellectual property (“IP”) licensing platforms, with a diverse portfolio of media and semiconductor IP consisting of approximately 13,750 patents and patent applications worldwide.

(the “Company”), a Delaware corporation, is one of the industry’s largest intellectual property (“IP”) licensing platforms, with a diverse portfolio of media and semiconductor IP consisting of over 14,250 patents and patent applications worldwide.

The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information.

6 unchanged sentences

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026 or any future period and the Company makes no representations related thereto.

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026 or any future period and the Company makes no representations related thereto.

The Company’s fiscal year ends on December 31 and employs a calendar month-end reporting period for its quarterly reporting.

2 unchanged sentences

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no significant changes in the Company’s significant accounting policies during the three months ended March 31, 2026, as compared to the significant accounting policies described in the Form 10-K.

There have been no significant changes in the Company’s significant accounting policies during the three and six months ended June 30, 2026, as compared to the significant accounting policies described in the Form 10-K.

Use of Estimates

82 unchanged sentences

Three Months Ended

Six Months Ended

Recurring revenue

4 unchanged sentences

Three Months Ended

Six Months Ended

Semiconductor

1 unchanged sentence

Contract Balances

Contracts Assets

Contract Assets

Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed.

2 unchanged sentences

Contract assets were recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

10 unchanged sentences

It is generally considered to be of high credit quality due to past collection history and the nature of the customers.

The Company’s allowance for credit losses at March 31, 2026 and December 31, 2025 was $ 0.7 million and is presented as part of accounts receivable, net in the Condensed Consolidated Balance Sheets.

The Company’s allowance for credit losses at June 30, 2026 and December 31, 2025 was $ 0.7 million and is presented as part of accounts receivable, net in the Condensed Consolidated Balance Sheets.

Additional Disclosures

1 unchanged sentence

Three Months Ended

Six Months Ended

Revenue recognized in the period from:

2 unchanged sentences

(1) Performance obligations satisfied in previous periods consist mainly of fees associated with releases for past patent infringement, settlements of litigation during the period, and revenue from past royalties owed pursuant to expired or terminated IP license agreements.

For long-term and multi-year revenue contracts, the Company recorded revenue from the releases for past infringement during the three months ended March 31, 2026 and 2025 and expects to record revenue from the prospective license in future periods.

For long-term and multi-year revenue contracts, the Company recorded revenue from the releases for past infringement during the three and six months ended June 30, 2026 and 2025 and expects to record revenue from the prospective license in future periods.

Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) under certain of the Company’s fixed fee arrangements.

Revenue related to remaining performance obligations from contracts greater than one year in length is shown below (in thousands):

March 31, 2026

June 30, 2026

Revenue from contracts with performance obligations expected to be satisfied in:

2 unchanged sentences

Other current assets consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

Property and equipment, net, consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

Other long-term assets consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

Accrued liabilities consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

Other long-term liabilities consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Condensed Consolidated Statements of Income.

The following is a summary of marketable securities at March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

The following is a summary of marketable securities at June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026

Allowance for Credit Losses

23 unchanged sentences

Total marketable securities

At March 31, 2026 and December 31, 2025, the Company had $ 115.8 million and $ 136.7 million, respectively, in cash, cash equivalents and marketable securities.

At June 30, 2026 and December 31, 2025, the Company had $ 137.1 million and $ 136.7 million , respectively, in cash, cash equivalents and marketable securities.

A significant portion of these amounts was held in marketable securities, as shown above.

The remaining balances of $ 51.6 million and $ 72.9 million at March 31, 2026 and December 31, 2025, respectively, were cash held in operating accounts not included in the tables above.

The remaining balances of $ 72.3 million and $ 72.9 million at June 30, 2026 and December 31, 2025, respectively, were cash held in operating accounts not included in the tables above.

Debt Securities

The gross realized gains and losses on sales of marketable debt securities were immaterial during the three months ended March 31, 2026 and 2025.

Unrealized gains and losses on AFS debt securities were immaterial as of March 31, 2026 and December 31, 2025.

The gross realized gains and losses on sales of marketable debt securities were immaterial during the three and six months ended June 30, 2026 and 2025.

Unrealized gains and losses on AFS debt securities were immaterial as of June 30, 2026 and December 31, 2025.

The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities.

The Company did no t recognize a provision for credit loss expense related to its AFS debt securities during the three months ended March 31, 2026 and 2025.

The estimated fair value of marketable debt securities by contractual maturity at March 31, 2026 is shown below (in thousands).

The Company did no t recognize a provision for credit loss expense related to its AFS debt securities during the three and six months ended June 30, 2026 and 2025.

The estimated fair value of marketable debt securities by contractual maturity at June 30, 2026 is shown below (in thousands).

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

14 unchanged sentences

The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs.

There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2025 and March 31, 2026.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of March 31, 2026 (in thousands):

There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2025 and June 30, 2026.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of June 30, 2026 (in thousands):

Active Markets

17 unchanged sentences

The carrying amounts and estimated fair values are as follows (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

Long-term debt, net (1)

(1) Carrying amount s of long-term debt are net of unamortized debt discount and issuance costs of $ 7.4 million and $ 8.3 million as of March 31, 2026 and December 31, 2025, respectively.

(1) Carrying amount s of long-term debt are net of unamortized debt discount and issuance costs of $ 6.5 million and $ 8.3 million as of June 30, 2026 and December 31, 2025, respectively.

See “Note 8 – Debt ” fo r additional information .

1 unchanged sentence

The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.

Non-Recurring Fair Value Measurements

During the three and six months ended June 30, 2026, the Company received patent assets with an aggregate fair value of $ 2.0 million as noncash consideration under certain license agreements.

For noncash consideration received during the quarter ended June 30, 2026, the Company determined the fair value of the patent assets at contract inception using both the market approach — estimating the value of the acquired assets by a way of comparison with other comparable transactions, and the cost approach — estimating the value of the acquired assets based on the cost the Company would incur to create a comparable set of assets through its own research and development (“R&D”) and patent prosecution efforts.

Noncash consideration received in the form of patent assets is recorded as an intangible asset and included in the transaction price for revenue recognition purposes.

See “Note 3 – Revenue ” for a detailed discussion on revenue and revenue recognition.

The estimated fair value of the patent assets represents a Level 3 fair value measurement, and the value of the patent assets is amortized as a noncash expense over the patents’ estimated useful lives.

For impairment related fair value measurements, see “Note 7 – Goodwill And Identified Intangible Assets ”.

The Company did no t receive noncash consideration during the three and six months ended June 30, 2025.

NOTE 7 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

The carrying value of goodwill at March 31, 2026 and December 31, 2025 was $ 313.7 million.

There were no changes to the carrying value of goodwill from January 1 through March 31, 2026.

The carrying value of goodwill at June 30, 2026 and December 31, 2025 was $ 313.7 million.

There were no changes to the carrying value of goodwill from January 1 through June 30, 2026.

Goodwill at each reporting unit is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable.

The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit.

No impairment charges were recognized during the three months ended March 31, 2026 and 2025.

No impairment charges were recognized during the three and six months ended June 30, 2026 and 2025.

Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

Total intangible assets

As of March 31, 2026, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

As of June 30 , 2026, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

2026 (remaining 6 months)

1 unchanged sentence

The outstanding amounts of debt were as follows (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Total long-term debt, net of current portion

The 2020 Credit Agreement dated June 1, 2020 (the “2020 Credit Agreement”), provides for a senior secured term loan B facility (the “Term Loan B”) with maturity on June 8, 2028 .

The Company’s 2020 Credit Agreement dated June 1, 2020 (the “2020 Credit Agreement”), provides for a senior secured term loan B facility (the “Term Loan B”) with maturity on June 8, 2028 .

On May 20, 2024, the Company entered into Amendment No.

13 unchanged sentences

It also requires the Company to maintain a total net leverage ratio of no greater than 3.00x to access a basket for restricted payments (including dividends and share repurchases).

As of March 31, 2026, the Company was in compliance with all requirements under the 2020 Credit Agreement, as amended.

As of June 30, 2026, the Company was in compliance with all requirements under the 2020 Credit Agreement, as amended.

The 2020 Credit Agreement, as amended, also requires the Company to continue to make cash payments on an annual basis based on certain leverage ratios and excess cash flow generated for the immediately preceding fiscal year.

2 unchanged sentences

Interest Expense and Expected Principal Payments

At March 31, 2026, the Company had $ 398.6 million in total debt outstanding.

At June 30, 2026, the Company had $ 392.6 million in total debt outstanding.

There were also $ 6.5 million of unamortized debt discount and issuance costs recorded as a reduction from the carrying amount of the debt.

The interest rate on the Term Loan B as of March 31, 2026, including the amortization of debt discount and issuance costs, was 7.3 % and interest is payable monthly.

As of March 31, 2026, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands):

The interest rate on the Term Loan B as of June 30, 2026, including the amortization of debt discount and issuance costs, wa s 7.1 % and interest is payable monthly.

As of June 30, 2026, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands):

2026 (remaining 6 months)

2 unchanged sentences

Three Months Ended

Six Months Ended

Weighted average shares of common stock outstanding

14 unchanged sentences

Under the 2020 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and performance awards (or any combination thereof).

At the Company’s 2024 Annual Stockholders Meeting on May 9, 2024, the Company’s stockholders approved an amendment and restatement of the 2020 EIP, which provided for (i) an increase of the number of shares reserved for issuance by 8,900,000 (from an initial share reserve of 16,800,000 under the prior 2020 EIP to 25,700,000 under the amended and restated 2020 EIP) and (ii) the removal of the “fungible share ratio” for future awards, such that all equity awards granted on or after May 9, 2024 will count on a one-to-one basis against the number of shares authorized for issuance under the 2020 EIP (whereas each share granted pursuant to “full value” awards (i.e.

At the Company’s 2024 Annual Stockholders Meeting on May 9, 2024, the Company’s stockholders approved an amendment and restatement of the 2020 EIP (the “A&R 2020 EIP”) , which provided for (i) an increase of the number of shares reserved for issuance by 8,900,000 shares of common stock (from an initial share reserve of 16,800,000 shares of common stock under the prior 2020 EIP to 25,700,000 shares of common stock under the amended and restated 2020 EIP) and (ii) the removal of the “fungible share ratio” for future awards, such that all equity awards granted on or after May 9, 2024 will count on a one-to-one basis against the number of shares authorized for issuance under the 2020 A&R EIP (whereas each share granted pursuant to “full value” awards (i.e.

stock awards, restricted stock awards, restricted stock units, performance awards and dividend equivalents) prior to May 9, 2024 are counted against shares available for issuance on a 1.5 to 1 ratio).

As of March 31, 2026, there were approximately 2.1 million shares reserved for future grants under the 2020 EIP.

The 2020 EIP provides for option grants designed as either incentive stock options or non-statutory options.

At the Company’s 2026 Annual Stockholders Meeting on May 7, 2026, the Company’s stockholders approved an amendment to the A&R 2020 EIP to increase the number of shares reserved for issuance by an additional 10,700,000 shares of common stock (for a total share reserve of 36,400,000 ).

As of June 30, 2026, there were approximately 12.8 million shares re served for future grants under the A&R 2020 EIP, as amended.

The A&R 2020 EIP, as amended, provides for option grants designed as either incentive stock options or non-statutory options.

Options generally are granted with an exercise price not less than the value of the common stock on the grant date and have a term of ten years from the date of grant and vest over a four-year period.

3 unchanged sentences

Stock options assumed from the Assumed Plans generally have vesting periods of four years and a contractual term of seven years .

The Company has no stock options outstanding as of March 31, 2026 or December 31, 2025, respectively.

The Company has no stock options outstanding under the Assumed Plans as of June 30, 2026 or December 31, 2025, respectively.

Awards of restricted stock and restricted stock units assumed from the Assumed Plans are generally subject to a four year vesting period.

1 unchanged sentence

Restricted Stock Awards

Information with respect to outstanding restricted stock awards (including both time-based vesting and performance-based vesting) as of March 31, 2026 is as follows (in thousands, except per share amounts):

Information with respect to outstanding restricted stock awards (including both time-based vesting and performance-based vesting) as of June 30, 2026 is as follows (in thousands, except per share amounts):

Restricted Stock Awards

5 unchanged sentences

Awards canceled / forfeited

Balance at March 31, 2026

Balance at June 30, 2026

Performance Awards

8 unchanged sentences

The purchase price per share will equal 85 % of the fair market value per share on the start date of the offering period or, if lower, 85 % of the fair market value per share on the semi-annual purchase date.

As of March 31, 2026, there we re 4.8 m illion shares reserved for grant under the Company’s 2020 ESPP.

As of June 30, 2026, there we re 4.6 million shares reserv ed for grant under the Company’s 2020 ESPP.

Stockholders of the Company’s common stock are entitled to receive dividends if and when declared by the Company’s Board of Directors.

For the periods ended March 31, 2026 and 2025, dividends declared were $ 0.05 per common share, respectively.

For the periods ended June 30, 2026 and 2025, dividends declared w ere $ 0.05 per common share, respectively.

The capacity to pay dividends in the future depends on many factors, including the Company’s financial condition, results of operations, capital requirements, capital structure, industry practice and other business conditions that the Board of Directors considers relevant.

Stock Repurchase Programs

In October 2024, the Company’s Board of Directors approved an increase of the existing share repurchase authorization up to a total of $ 200.0 million.

During the three months ended March 31, 2026, the Company repurchased a total of approximately 0.4 million shares of common stock, at an average price of $ 22.45 per share for a total cost of $ 10.0 million.

During the three months ended March 31, 2025, the Company repurchased a total of approximately 0.8 million shares of common stock, at an average price of $ 13.19 per share for a total cost of $ 10.0 million.

In October 2024, the Company’s Board of Directors approved an increase to the existing share repurchase authorization of up to a total of $ 200.0 million.

During the three months ended June 30, 2026, the Company repurchased a total of approximately 0.4 million shares of common stock, at an average price of $ 28.36 per share for a total cost of $ 10.0 million .

During the six months ended June 30, 2026, the Company repurchased a total of approximately 0.8 million shares of common stock, at an average price of $ 25.06 per share for a total cost of $ 20.0 million.

During the six months ended June 30, 2025, the Company repurchased a total of approximately 0.8 million shares of common stock, at an average price of $ 13.19 per share for a total cost of $ 10.0 million.

These repurchases occurred during the three months ended March 31, 2025 and no repurchases were made during the three months ended June 30, 2025.

The shares repurchased are recorded as treasury stock and are accounted for under the cost method.

No expiration date has been specified for this plan.

As of March 31, 2026, the total remaining amount available for repurchase under this plan was $ 150.0 million.

As of June 30, 2026, the total remaining amount available for repurchase under this plan was $ 140.0 million .

The Company may execute authorized repurchases from time to time under the plan.

6 unchanged sentences

NOTE 11 – STOCK-BASED COMPENSATION EXPENSE

The effect of recording stock-based compensation expense for the three months ended March 31, 2026 and 2025 is as follows (in thousands):

The effect of recording stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands):

Three Months Ended

Six Months Ended

Research and development

2 unchanged sentences

The Company uses a Monte Carlo simulation to determine the grant date fair value of performance stock awards subject to market conditions, or market-based PSUs.

The following assumptions were used to value the performance stock awards subject to market conditions granted during the three months ended March 31, 2026 and 2025:

Three Months Ended

The following assumptions were used to value the performance stock awards subject to market conditions granted during the six months ended June 30, 2026 and 2025:

Six Months Ended

Expected life (years)

6 unchanged sentences

Grants under the 2020 ESPP occur in June and December, as discussed in “Note 10 – Stockholders’ Equity ”.

There were no ESPP grants during the three months ended March 31, 2026 and 2025.

The following assumptions were used to value the shares for these grants.

Six Months Ended

Expected life (years)

Risk-free interest rate

Dividend yield

Expected volatility

NOTE 12 – INCOME TAXES

The Company’s income tax provision and effective tax rate for interim periods are based on its estimated annual effective tax rate adjusted for discrete items during the period.

For the three months ended March 31, 2026 and 2025, the Company recorded income tax expense of $ 5.2 million and $ 2.1 million, respectively.

For the three and six months ended June 30, 2026, the Company recorded income tax expense of $ 1.6 million and $ 6.8 million, respectively.

For the three and six months ended June 30, 2025, the Company recorded income tax benefits of $ 9.1 million and $ 7.0 million, respectively.

The effective tax rate varies from the 21 % U.S.

federal tax rate primarily due to excess tax benefits related to stock-based compensation.

The increase in income tax expense for the three months ended March 31, 2026, as compared to the same period in the prior year was primarily due to an increase in pretax income.

federal tax rate primarily due to tax benefits related to stock-based compensation.

The increase in income tax expense for the three and six months ended June 30, 2026, as compared to the same period in the prior year was primarily due to an increase in pretax income.

NOTE 13 – LEASES

The Company leases office and research facilities, and office equipment under operating leases which expire through 2032.

The Company’s leases have remaining lease terms of two to seven years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next five years or less.

The Company’s leases have remaining lease terms of two to six years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next five years or less.

Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets;

5 unchanged sentences

Three Months Ended

Six Months Ended

Fixed lease cost

3 unchanged sentences

Three Months Ended

Six Months Ended

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Operating leases

Future minimum lease payments and related lease liabilities as of March 31, 2026 were as follows (in thousands):

Future minimum lease payments and related lease liabilities as of June 30, 2026 were as follows (in thousands):

Operating Lease Payments (1)

10 unchanged sentences

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods.

These arrangements primarily include unconditional purchase obligations to service pro viders.

As of March 31, 2026, the Company’s total future unconditional purchase obligations were approximately $ 6.9 million, including $ 2.4 million due in the remainder of 2026, $ 2.5 million due in 2027, and $ 2.0 million due thereafter.

These arrangements primarily include unconditional purchas e obligations to service providers.

As of June 30, 2026, the Company’s total future unconditional purchase obligations were approximately $ 6.1 million, including $ 1.5 million due in the remainder of 2026, $ 2.5 million due in 2027, and $ 2.1 million due thereafter.

Prior to the Separation, Adeia Media LLC, a subsidiary of the Company (“Adeia Media”), and a subsidiary of Xperi Inc.(“Xperi Sub”) entered into an agreement (the “Specified Agreement”) with a third party pursuant to which Adeia Media guarantees the performance of Xperi Sub under the Specified Agreement, including its payment obligations to such third party.

2 unchanged sentences

Subsequent changes to the carrying value of the guarantee are recognized as part of the Company’s results of operations.

As of March 31, 2026 and December 31 2025, the balance of the guarantee liability was $ 16.3 mill ion.

As of June 30, 2026 and December 31, 2025, the balance of the guarantee liability was $ 16.3 million.

Operating expense reimbursements are capped at a maximum of $ 7.5 million per annum.

To date, such reimbursements have not been material.

To date, such reimbursements have no t been material.

Contingencies

19 unchanged sentences

Three Months Ended

Six Months Ended

Personnel related expense

14 unchanged sentences

Three Months Ended

Six Months Ended

Europe and Middle East

Total revenue

For the three months ended March 31, 2026 and 2025, there were two customers that each accounted for 10% or more of total revenue, respectively.

For the three months ended June 30, 2026 and 2025, there were two customers th at each accounted for 10% or more of total revenue, respectively.

For the six months ended June 30, 2026 and 2025, one and two customers, respectively, each accounted for 10% or more of total revenue.

The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated:

Three Months Ended

Six Months Ended

* denotes less than 10% of total revenue.

At March 31, 2026, the Company had one customer representing 68 % of aggregate accounts receivable.

At June 30, 2026, the Company had two customers representing 33 % and 13 % of aggregate accounts receivable, respectively.

At December 31, 2025, the Company had one customer representing 63 % of aggregate accounts receivable.

Other Geography Information

At March 31, 2026 and December 31, 2025, property and equipment, net, was all located in the U.S.

At June 30, 2026 and December 31, 2025, property and equipment, net, was all located in the U.S.

NOTE 16 – SUBSEQUENT EVENTS

Declaration of Cash Dividends

On April 21, 2026 , the Board declared a cash dividend of $ 0.05 per share of common stock, payable on June 15, 2026 to the stockholders of record at the close of business on May 26, 2026 .

On July 23, 2026 , the Board declared a cash dividend of $ 0.05 per share of common stock, payable on September 14, 2026 to the stockholders of record at the close of business on August 24, 2026 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements