What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-06 · 86 added, 95 removed, 418 unchanged (30% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(Unaudited, in millions, except par value)

June 30, 2025 December 31, 2024

(in millions, except par value)

September 30, 2025 December 31, 2024

CURRENT ASSETS:

22 unchanged sentences

STOCKHOLDERS’ EQUITY:

Preferred stock, $ 0.0001 par value— 100 shares authorized and no shares issued and outstanding as of June 30, 2025 and December 31, 2024

Common stock, $ 0.0001 par value— 4,000 shares authorized as of June 30, 2025 and December 31, 2024;

1,256.8 and 1,261.3 shares issued and outstanding as of June 30, 2025 and December 31, 2024

Preferred stock, $ 0.0001 par value— 100 shares authorized and no shares issued and outstanding as of September 30, 2025 and December 31, 2024

Common stock, $ 0.0001 par value— 4,000 shares authorized as of September 30, 2025 and December 31, 2024;

1,259.2 and 1,261.3 shares issued and outstanding as of September 30, 2025 and December 31, 2024

Additional paid-in capital 2,784.1 2,465.4

7 unchanged sentences

(Unaudited, in millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025 2024 2025 2024

29 unchanged sentences

(Unaudited, in millions)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

10 unchanged sentences

(Unaudited, in millions)

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Common Stock Additional

2 unchanged sentences

Comprehensive

Income (Loss) Total

Stockholders’ Equity Common Stock Additional

13 unchanged sentences

Balance at end of period 1,259.2 $ 0.1 $ 2,784.1 $ 9,115.1 $ 7.8 $ 11,907.1 1,259.2 $ 0.1 $ 2,784.1 $ 9,115.1 $ 7.8 $ 11,907.1

Three Months Ended June 30, 2024 Six Months Ended June 30, 2024

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Common Stock Additional

2 unchanged sentences

Comprehensive

Income (Loss) Total

Stockholders’ Equity Common Stock Additional

2 unchanged sentences

Comprehensive

Income (Loss) Total

Stockholders’

1 unchanged sentence

Net income — — — 748.0 — 748.0 — — — 2,051.1 — 2,051.1

Other comprehensive loss, net of tax — — — — ( 3.1 ) ( 3.1 ) — — — — ( 11.7 ) ( 11.7 )

Other comprehensive income, net of tax — — — — 24.6 24.6 — — — — 12.9 12.9

Stock-based compensation — — 98.1 — — 98.1 — — 254.6 — — 254.6

9 unchanged sentences

(Unaudited, in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

42 unchanged sentences

The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc.

and its wholly-owned subsidiaries and have been prepared in accordance with U.S.

and our wholly-owned subsidiaries and have been prepared in accordance with U.S.

Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S.

2 unchanged sentences

In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information.

The results for the three and six months ended June 30, 2025, are not necessarily indicative of the results expected for the full fiscal year.

The results for the three and nine months ended September 30, 2025, are not necessarily indicative of the results expected for the full fiscal year.

The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements.

17 unchanged sentences

We will adopt the standard in our 2025 annual period using a prospective transition method .

In November 2024, the FASB issued ASU No.

2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40).

The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory,

employee compensation, depreciation, and amortization, within relevant income statement captions.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40).

The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee

compensation, depreciation, and amortization, within relevant income statement captions.

This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses.

4 unchanged sentences

We are currently evaluating the impact of future adoption on our financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05 Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets, or ASU 2025-05.

The ASU provides a practical expedient that allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets.

The amendments of ASU 2025-05 should be applied prospectively and are effective for annual and interim periods beginning after December 15, 2025, with early adoption permitted.

We do not expect the adoption of ASU 2025-05 to have a material impact on our consolidated financial statements and related disclosures.

Fair Value Measurements

6 unchanged sentences

The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in millions):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Level I Level II Level III Total Level I Level II Level III Total

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Total Financial Assets $ 3,646.0 $ 5,166.0 $ — $ 8,812.0 $ 3,661.8 $ 3,622.6 $ — $ 7,284.4

During the three and six months ended June 30, 2025, the Company did not make any transfers between the levels of the fair value hierarchy.

During the three and nine months ended September 30, 2025, the Company did not make any transfers between the levels of the fair value hierarchy.

Debt securities

The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in millions):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value

7 unchanged sentences

We invest in debt securities that have maximum maturities of three years and are generally deemed to be low risk based on their credit ratings from the major rating agencies.

The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields.

The longer the duration of these debt securities, the more susceptible they are to changes in market interest rates and bond yields.

Given the short-term and conservative nature of our portfolio, our debt securities are generally not subject to credit risk;

therefore, we did not recognize any credit losses or non-credit-related impairments related to such securities for the three and six months ended June 30, 2025.

therefore, we did not recognize any credit losses or non-credit-related impairments related to such securities for the three and nine months ended September 30, 2025.

All unrealized losses were recognized in other comprehensive income (loss).

Realized gains or losses were immaterial for the three and six months ended June 30, 2025.

Realized gains or losses were immaterial for the three and nine months ended September 30, 2025.

The following table is an analysis of our debt securities in unrealized loss positions (in millions):

June 30, 2025

September 30, 2025

Unrealized Losses within 12 months Unrealized Losses 12 months or greater Total

Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses

Commercial paper $ 9.8 $ — $ — $ — $ 9.8 $ —

government notes 882.7 ( 0.5 ) 46.6 ( 0.1 ) 929.3 ( 0.6 )

Corporate bonds 833.8 ( 1.6 ) 19.2 — 853.0 ( 1.6 )

Municipal bonds 1.5 — — — 1.5 —

Agency securities 415.3 ( 0.6 ) 11.9 — 427.2 ( 0.6 )

Total $ 2,141.6 $ ( 2.7 ) $ 77.7 $ ( 0.1 ) $ 2,219.3 $ ( 2.8 )

As of June 30, 2025, we had no marketable debt securities with contractual maturities that exceeded three years .

As of September 30, 2025, we had no marketable debt securities with contractual maturities that exceeded three years .

The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in millions):

June 30, 2025

September 30, 2025

Due in 1 year or less $ 2,893.3

1 unchanged sentence

Total debt securities $ 7,779.6

The weighted-average remaining duration of our marketable debt securities is approximately 1.3 years as of June 30, 2025.

The weighted-average remaining duration of our marketable debt securities is approximately 1.4 years as of September 30, 2025.

As we view these marketable debt securities as available to support current operations, we classify marketable debt securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets.

1 unchanged sentence

Inventories consist of the following (in millions):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Raw materials $ 650.6 $ 565.4

2 unchanged sentences

Total inventories $ 2,155.7 $ 1,834.6

(1) The balance includes evaluation inventory totaling $ 335.0 million and $ 422.1 million as of June 30, 2025 and December 31, 2024, respectively.

(1) The balance includes evaluation inventory totaling $ 427.3 million and $ 422.1 million as of September 30, 2025 and December 31, 2024, respectively.

Property and Equipment, net

Property and equipment, net consists of the following (in millions):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Land $ 47.3 $ 47.2

7 unchanged sentences

Property and equipment, net $ 172.6 $ 98.8

Depreciation expense was $ 7.7 million and $ 8.5 million for the three months ended June 30, 2025 and 2024, respectively, and $ 15.7 million and $ 17.1 million for the six months ended June 30, 2025 and 2024, respectively.

Depreciation expense was $ 7.4 million and $ 8.5 million for the three months ended September 30, 2025 and 2024, respectively, and $ 23.2 million and $ 25.6 million for the nine months ended September 30, 2025 and 2024, respectively.

Contract Liabilities, Deferred Revenue and Other Performance Obligations

2 unchanged sentences

The following table summarizes the activity related to our contract liabilities (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

3 unchanged sentences

Contract liabilities, ending balance $ 186.8 $ 147.0 $ 186.8 $ 147.0

As of June 30, 2025 and December 31, 2024, $ 83.6 million and $ 65.7 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets.

As of September 30, 2025 and December 31, 2024, $ 78.5 million and $ 65.7 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets.

Deferred Revenue

Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts, services and product deferrals related to contracts with acceptance clauses.

Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts and product deferrals related to contracts with acceptance clauses.

The following table summarizes the activity related to our deferred revenue (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Other Performance Obligations

Other performance obligations totaling $ 442.3 million as of June 30, 2025 include unbilled multi-year PCS and service contract amounts of $ 385.9 million, and $ 56.4 million of binding contractual agreements with certain customers that are primarily related to future product shipments.

Other performance obligations totaling $ 465.9 million as of September 30, 2025 include unbilled multi-year PCS and service contract amounts of $ 377.2 million, and $ 88.7 million of binding contractual agreements with certain customers that are primarily related to future product shipments.

Revenue from Total Remaining Performance Obligations

T otal revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods amounts to $ 4.7 billion as of June 30, 2025 .

T otal revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods amounts to $ 5.3 billion as of September 30, 2025 .

A pproximately 90 % of this future revenue is expected to be recognized over the next two years and the remaining 10 % is expected to be recognized during the third to the fifth year.

1 unchanged sentence

Other income (expense), net consists of the following (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

4 unchanged sentences

VeloCloud's secure, AI-optimized cloud WAN portfolio provides seamless connectivity to customer sites of any type, complementing Arista's leading data center and campus wired/wireless portfolio.

The preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date, included $ 268.4 million of intangible assets, $ 148.0 million of goodwill and $ 116.4 million of net tangible liabilities assumed.

The change in the carrying value of goodwill for the three months ended June 30, 2025 was solely related to the acquisition, and a portion of the goodwill is deductible for tax purposes.

A portion of the goodwill is deductible for tax purposes.

The change in the carrying value of goodwill for the three months ended September 30, 2025 was not material.

Acquisition-Related Intangible Assets

Acquisition-related intangible assets, included in other assets, are subject to amortization on a straight-line basis over their estimated useful lives, as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed.

Acquisition-related intangible assets, excluding those that are fully amortized, were as follows (in millions, except years):

June 30, 2025 December 31, 2024

Acquisition-related intangible assets, excluding those that are fully amortized and no longer have economic benefit, were as follows (in millions, except years):

September 30, 2025 December 31, 2024

Weighted-Average Remaining Useful Lives (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

13 unchanged sentences

In addition, we purchase strategic component inventory from certain suppliers under non-cancellable purchase commitments, including integrated circuits, which are consigned to our contract manufacturers .

As of June 30, 2025, we had non-cancellable purchase commitments not recorded on our balance sheet of $ 3.6 billion, of which $ 3.1 billion have expected receipt dates within 12 months, and $ 0.5 billion have expected receipt dates greater than 12 months.

As of September 30, 2025, we had non-cancellable purchase commitments not recorded on our balance sheet of $ 4.8 billion, of which $ 4.3 billion have expected receipt dates within 12 months, and $ 0.5 billion have expected receipt dates greater than 12 months.

These open purchase orders are considered enforceable and legally binding, and while we may have some limited ability to reschedule, and adjust our requirements based on our business needs prior to the delivery of goods or performance of services, this can only occur with the agreement of the related supplier.

We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $ 66.8 million and $ 95.8 million as of June 30, 2025 and December 31, 2024, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the condensed consolidated balance sheets.

We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $ 50.1 million and $ 95.8 million as of September 30, 2025 and December 31, 2024, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the condensed consolidated balance sheets.

Property Project

During the year ended December 31, 2021, we purchased land and the improvements thereon in Santa Clara, California to construct a building for office, lab and data center space.

The estimated remaining capital expenditures related to this project are expected to be approximately $ 190.0 million to $ 215.0 million through the end of fiscal 2026 when we expect construction to be completed.

As of September 30, 2025, the estimated remaining capital expenditures related to this project are expected to be approximately $ 170.0 million to $ 200.0 million through the end of fiscal 2026 when we expect construction to be completed.

We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party.

3 unchanged sentences

Legal Proceedings

WSOU Investments, LLC

On November 25, 2020, WSOU Investments LLC ("WSOU") filed a lawsuit against us in the Western District of Texas asserting that certain of our products infringe three WSOU patents.

WSOU's allegations are directed to certain features of our wireless and switching products.

WSOU seeks remedies including monetary damages, attorney's fees and costs.

On February 4, 2021, we filed an answer denying WSOU's allegations.

On November 5, 2021, the case was transferred to the Northern District of California.

On March 30, 2022, WSOU dismissed one of the patents with prejudice, removing Arista wireless products from those accused of infringement.

On July 1, 2022, the court stayed the case pending the resolution of an inter partes review of one of the patents-in-suit.

On May 30, 2023, the US Patent Trial and Appeal Board (“PTAB”) ruled all challenged claims in the inter partes review unpatentable.

On March 10, 2025, the Federal Circuit affirmed the PTAB’s decision.

The parties subsequently agreed to stay the litigation to allow WSOU to change counsel and that stay was extended pending the result of proceedings in a WSOU case against another company.

We intend to vigorously defend against the claims brought against us by WSOU;

however, we cannot be certain that any of WSOU's claims will be resolved in our favor, regardless of the merits of those claims.

Any adverse litigation ruling could result in a significant damages award against us and injunctive relief.

With respect to the legal proceedings described above, it is our belief that while a loss is not probable, it may be reasonably possible.

Further, at this stage in the litigation, any possible loss or range of loss cannot be estimated;

however, the outcome of litigation is inherently uncertain.

Therefore, if this legal matter were resolved against us in a reporting period for a material amount, our consolidated financial statements for that reporting period could be materially adversely affected.

Other matters

In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property.

In the ordinary course of business, we are a party to various claims, litigation and other legal proceedings, including matters relating to intellectual property and patent disputes.

We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

As of June 30, 2025, provisions recorded for contingent losses related to other claims and matters have not been significant.

As of September 30, 2025, provisions recorded for contingent losses related to other claims and matters have not been significant.

Based on currently-available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows;

6 unchanged sentences

Repurchases may be made at management's discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or a combination of the foregoing.

The New Repurchase Program does not obligate us to acquire any of our common stock and may be suspended or discontinued by the Company at any time without prior notice.

During the three months ended June 30, 2025, we repurchased a total of $ 133.9 million of our common stock under our Prior Repurchase Program and $ 62.0 million of our common stock under our New Repurchase Program.

During the six months ended June 30, 2025, we repurchased a total of $ 921.0 million of our common stock under our Prior Repurchase Program and $ 62.0 million of our common stock under our New Repurchase Program.

As of June 30, 2025, the remaining authorized amount for repurchases under the New Repurchase Program was $ 1.4 billion.

A summary of the stock repurchase activity under the Repurchase Programs for the three and six months ended June 30, 2025 is as follows (in millions, except per share amounts):

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2025

The New Repurchase Program does not obligate us to acquire any of our common stock and may be suspended or discontinued by the Company at any time

without prior notice.

We did not repurchase any shares during the three months ended September 30, 2025.

During the nine months ended September 30, 2025, we repurchased a total of $ 921.0 million of our common stock under our Prior Repurchase Program and $ 62.0 million of our common stock under our New Repurchase Program.

As of September 30, 2025, the remaining authorized amount for repurchases under the New Repurchase Program was $ 1.4 billion.

A summary of the stock repurchase activity under the Repurchase Programs for the nine months ended September 30, 2025 is as follows (in millions, except per share amounts):

Nine Months Ended

September 30, 2025

Aggregate purchase price $ 983.0

8 unchanged sentences

The number of shares reserved for issuance under the ESPP increases automatically on January 1 of each year by the number of shares equal to 1 % of our shares outstanding on the immediately preceding December 31, but not to exceed 40 million shares, unless our board of directors, in its discretion, determines to make a smaller increase.

As of June 30, 2025, there remained approximately 104.5 million shares available for issuance under the ESPP.

As of September 30, 2025, there remained approximately 104.1 million shares available for issuance under the ESPP.

Under our ESPP, eligible employees are permitted to acquire shares of our common stock at 85 % of the lower of the fair market value of our common stock on the first trading day of each offering period or on the exercise date.

1 unchanged sentence

Participants may purchase shares of common stock through payroll deductions up to 15 % of their eligible compensation, subject to Internal Revenue Service mandated purchase limits.

During the six months ended June 30, 2025, we issued 0.4 million shares at a weighted-average purchase price of $ 62.31 per share under the ESPP.

During the nine months ended September 30, 2025, we issued 0.7 million shares at a weighted-average purchase price of $ 67.27 per share under the ESPP.

2014 Equity Incentive Plan

4 unchanged sentences

The Restated Plan’s terms are substantially similar to the Prior Plan’s terms, including with respect to treatment of equity awards in the event of a “change in control” as defined under the Restated Plan, but with certain modifications, including the elimination of the automatic “evergreen” share reserve increase provided for under the Prior Plan.

As of June 30, 2025, there remained approximately 47.7 million shares available for grant under the Restated Plan.

As of September 30, 2025, there remained approximately 45.7 million shares available for grant under the Restated Plan.

Stock Option Activities

7 unchanged sentences

Options canceled ( 0.1 ) 14.70

Balance—June 30, 2025 1.2 $ 10.56 2.5 $ 109.4

Vested and exercisable—June 30, 2025 1.1 $ 10.37 2.5 $ 105.2

Balance—September 30, 2025 0.9 $ 11.74 2.6 $ 126.4

Vested and exercisable—September 30, 2025 0.9 $ 11.74 2.6 $ 126.4

Restricted Stock Unit (RSU) Activities

7 unchanged sentences

RSUs and PRSUs forfeited/canceled ( 2.2 ) 48.65

Unvested balance—June 30, 2025 29.1 $ 58.20

Unvested balance—September 30, 2025 29.3 $ 65.18

Stock-Based Compensation Expense

The following table summarizes the stock-based compensation expense related to our equity awards (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Total stock-based compensation $ 127.9 $ 98.1 $ 306.1 $ 254.6

As of June 30, 2025, there were $ 1.4 billion of unamortized compensation costs related to all unvested awards.

As of September 30, 2025, there were $ 1.6 billion of unamortized compensation costs related to all unvested awards.

The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 4.4 years.

2 unchanged sentences

Diluted net income per share is computed using the weighted-average number of shares of common stock outstanding during the period, including potential common shares assuming the dilutive effect of outstanding stock options, restricted stock units, and the employee stock purchase plan using the treasury stock method.

Potential common shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.

Potential common shares whose

effect would have been antidilutive are excluded from the computation of diluted net income per share.

The following table sets forth the computation of our basic and diluted net income per share (in millions, except per share amounts):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

8 unchanged sentences

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

1 unchanged sentence

Income Taxes (in millions, except percentages)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Effective tax rate 20.8 % 15.3 % 17.9 % 13.7 %

The increase in the effective tax rates in the three and six months ended June 30, 2025, as compared to the same periods in 2024, was primarily due to a decrease in tax benefits attributable to equity-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBB Act") was signed into law in the U.S.

This legislation contains a broad range of tax reform provisions affecting businesses.

We are evaluating the full effects of the legislation on our estimated annual effective tax rate and cash tax position.

As the legislation was signed into law after the close of our second quarter, such impacts are not included in our operating results for the six months ended June 30, 2025.

This legislation provides for significant tax law changes and modifications, including changes to the U.S.

effective tax rates on certain foreign earnings, and permanently repeals the domestic research and development capitalization requirement.

The increase in the effective tax rates in the three and nine months ended September 30, 2025, as compared to the same periods in 2024, was primarily associated with a one-time deferred tax provision arising from the remeasurement of our basis difference associated with the U.S.

tax effect of foreign deferred tax assets resulting from the enactment of the OBBB Act, and a decrease in tax benefits attributable to equity-based compensation.

While some specific provisions of the OBBB Act are not effective until our fiscal 2026 period, our deferred method of accounting policy with respect to U.S.

tax on foreign earnings, known as global intangible low tax income, requires us to account for these changes in the period of enactment.

In addition, we do not anticipate a material impact to our effective tax rate in future periods as a result of the OBBB Act.

Segment and Geographical Information

14 unchanged sentences

The following table represents revenue based on customers’ shipping addresses (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

4 unchanged sentences

(1) Includes $ 1,825.7 million and $ 1,465.3 million revenue generated from the U.S.

for the three months ended June 30, 2025 and June 30, 2024, respectively, and $ 3,293.6 million and $ 2,595.5 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

for the three months ended September 30, 2025 and September 30, 2024, respectively, and $ 5,119.3 million and $ 4,060.8 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.

Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in millions):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

United States $ 155.6 $ 83.5

2 unchanged sentences

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