What changed in this filing

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Item 1. Financial Statements

2025-07-22 compared with 2025-04-22 · 155 added, 111 removed, 361 unchanged (42% of the section changed)

31 unchanged sentences

5,000 shares authorized;

no shares issued and outstanding as of March 29, 2025 and December 31, 2024

no shares issued and outstanding as of June 28, 2025 and December 31, 2024

Common stock, $ 0.025 par value;

100,000 shares authorized;

65,695 shares issued and outstanding as of March 29, 2025, and 66,434 shares issued and outstanding as of December 31, 2024

65,294 shares issued and outstanding as of June 28, 2025, and 66,434 shares issued and outstanding as of December 31, 2024

Additional paid-in capital 1,166,266 1,170,017

4 unchanged sentences

See accompanying notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except per share data)

Three Months Ended

2025 March 30,

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Revenue $ 241,882 $ 198,139 $ 462,124 $ 424,449

6 unchanged sentences

Total operating expenses 135,904 118,959 264,693 243,568

Operating loss ( 6,081 ) ( 2,032 )

Interest income and other expense, net:

Operating income (loss) 391 ( 11,356 ) ( 5,690 ) ( 13,388 )

Interest income and other income (expense), net:

Interest income, net 2,959 2,960 6,246 5,595

Other expense, net ( 196 ) ( 135 )

Total interest income and other expense, net 3,091 2,500

Other income (expense), net 77 ( 286 ) ( 119 ) ( 421 )

Total interest income and other income (expense), net 3,036 2,674 6,127 5,174

Income (loss) before income taxes 3,427 ( 8,682 ) 437 ( 8,214 )

Income taxes 1,797 365

Net income (loss) $ ( 4,787 ) $ 103

Net income (loss) per common share:

Income taxes (benefit) 3,626 ( 724 ) 5,423 ( 359 )

Net loss $ ( 199 ) $ ( 7,958 ) $ ( 4,986 ) $ ( 7,855 )

Net loss per common share:

Basic $ ( 0.00 ) $ ( 0.12 ) $ ( 0.08 ) $ ( 0.12 )

1 unchanged sentence

Weighted-average number of shares used to compute

net income (loss) per common share:

net loss per common share:

Basic 64,525 65,678 65,321 65,509

Diluted 64,525 65,678 65,321 65,509

Net income (loss) $ ( 4,787 ) $ 103

Net loss $ ( 199 ) $ ( 7,958 ) $ ( 4,986 ) $ ( 7,855 )

Other comprehensive income (loss), net of tax:

2 unchanged sentences

Total other comprehensive income (loss), net of tax 230 10 497 ( 314 )

Comprehensive loss $ ( 4,520 ) $ ( 221 )

Comprehensive income (loss) $ 31 $ ( 7,948 ) $ ( 4,489 ) $ ( 8,169 )

See accompanying notes to condensed consolidated financial statements.

3 unchanged sentences

Shares Amount

Balance as of December 31, 2024 66,434 $ 1,661 $ 1,170,017 $ ( 612 ) $ ( 390,126 ) $ 780,940

Balance as of March 29, 2025 65,695 $ 1,643 $ 1,160,781 $ ( 345 ) $ ( 394,913 ) $ 767,166

Stock-based compensation — — 25,766 — — 25,766

3 unchanged sentences

Other comprehensive income — — — 230 — 230

Balance as of June 28, 2025 65,294 $ 1,633 $ 1,166,266 $ ( 115 ) $ ( 395,112 ) $ 772,672

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of March 30, 2024 65,525 $ 1,638 $ 1,102,314 $ ( 983 ) $ ( 360,276 ) $ 742,693

Stock-based compensation — — 15,458 — — 15,458

Issuance of common stock under equity incentive plans, net of forfeitures 275 7 4,014 — — 4,021

Net loss — — — — ( 7,958 ) ( 7,958 )

Other comprehensive income — — — 10 — 10

Balance as of June 29, 2024 65,800 $ 1,645 $ 1,121,786 $ ( 973 ) $ ( 368,234 ) $ 754,224

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of December 31, 2024 66,434 $ 1,661 $ 1,170,017 $ ( 612 ) $ ( 390,126 ) $ 780,940

Stock-based compensation — — 45,869 — — 45,869

Issuance of common stock under equity incentive plans, net of forfeitures 1,025 26 24,171 — — 24,197

Repurchases of common stock including excise tax ( 2,165 ) ( 54 ) ( 73,791 ) — — ( 73,845 )

Net loss — — — — ( 4,986 ) ( 4,986 )

Other comprehensive income — — — 497 — 497

Balance as of June 28, 2025 65,294 $ 1,633 $ 1,166,266 $ ( 115 ) $ ( 395,112 ) $ 772,672

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

4 unchanged sentences

Repurchases of common stock ( 114 ) ( 3 ) ( 3,735 ) — — ( 3,738 )

Net income — — — — 103 103

Net loss — — — — ( 7,855 ) ( 7,855 )

Other comprehensive loss — — — ( 314 ) — ( 314 )

Balance as of March 30, 2024 65,525 $ 1,638 $ 1,102,314 $ ( 983 ) $ ( 360,276 ) $ 742,693

Balance as of June 29, 2024 65,800 $ 1,645 $ 1,121,786 $ ( 973 ) $ ( 368,234 ) $ 754,224

See accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

(In thousands, unaudited)

Three Months Ended

2025 March 30,

Six Months Ended

2025 June 29,

Operating activities:

Net income (loss) $ ( 4,787 ) $ 103

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net loss $ ( 4,986 ) $ ( 7,855 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Stock-based compensation 45,357 32,315

14 unchanged sentences

Purchases of marketable securities ( 95,116 ) ( 148,897 )

Sales of marketable securities 11,362 48,734

Maturities of marketable securities 117,679 82,805

Net cash provided by investing activities 10,988 3,281

Net cash provided by (used in) investing activities 25,880 ( 27,019 )

Financing activities:

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 237 ( 38 )

Net increase (decrease) in cash and cash equivalents ( 862 ) 25,009

Net increase in cash and cash equivalents 33,376 21,077

Cash and cash equivalents at beginning of period 43,162 63,409

22 unchanged sentences

Quarterly periods are based on a 4-4-5 calendar with the first quarter ending on the Saturday closest to March 31 st .

As a result, the Company had one less day in the three months ended March 29, 2025 than for the three months ended March 30, 2024.

As a result, the Company had one less day in the six months ended June 28, 2025 than for the six months ended June 29, 2024.

The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes.

2 unchanged sentences

The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024.

The Company’s significant accounting policies did not change during the three months ended March 29, 2025.

The Company’s significant accounting policies did not change during the six months ended June 28, 2025.

Newly Adopted Accounting Standard

The Company did not adopt any new accounting standards during the three months ended March 29, 2025 that were significant to the Company.

The Company did not adopt any new accounting standards during the six months ended June 28, 2025 that were significant to the Company.

Recent Accounting Pronouncements Not Yet Adopted

There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended March 29, 2025 as compared with the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, that are significant or expected to be significant to the Company.

There have been no additional accounting pronouncements or changes in accounting pronouncements during the six months ended June 28, 2025 as compared with the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, that are significant or expected to be significant to the Company.

Cash, Cash Equivalents and Marketable Securities

12 unchanged sentences

Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as other expense, net.

Realized gains and losses were not significant for the three months ended March 29, 2025 and March 30, 2024.

Realized gains and losses were not significant for the three and six months ended June 28, 2025 and June 29, 2024.

Cash, cash equivalents and marketable securities consisted of the following (in thousands):

2 unchanged sentences

Cash $ 32,747 $ 20,664

Commercial paper 17,636 10,058

Money market funds 23,457 4,890

Commercial paper 18,344 10,058

government securities 1,990 7,550

10 unchanged sentences

The amortized cost and fair value of marketable securities were as follows (in thousands):

As of March 29, 2025 Amortized Cost Unrealized Gains (Losses), net Fair Value

As of June 28, 2025 Amortized Cost Unrealized Gains (Losses), net Fair Value

Corporate debt securities $ 123,099 $ 368 $ 123,467

Commercial paper 49,624 ( 9 ) 49,615

government securities 59,514 149 59,663

Commercial paper 41,899 ( 12 ) 41,887

government agency securities 13,868 22 13,890

18 unchanged sentences

The following tables sets forth the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):

As of March 29, 2025 Level 1 Level 2 Total

As of June 28, 2025 Level 1 Level 2 Total

Money market funds $ 23,457 $ — $ 23,457

43 unchanged sentences

Component inventory held by suppliers 7,768 8,855

Taxes payable 5,794 5,048

Professional and consulting fees 5,148 5,385

Taxes payable 4,178 5,048

Current portion of warranty 3,346 5,288

Operating leases 3,661 4,303

Customer advances or rebates 3,320 4,882

Operating leases 3,017 4,303

Insurance 1,773 2,019

Freight 1,663 1,640

Product returns 1,657 2,428

Travel and event expenses 1,654 518

Operations 1,014 1,735

Freight 1,548 1,640

Other 6,776 6,062

1 unchanged sentence

Changes in the Company’s accrued warranty liability were as follows (in thousands):

Three Months Ended

2025 March 30,

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Balance at beginning of period $ 6,073 $ 7,655 $ 7,287 $ 8,029

Accruals for product warranty

( 908 ) 392 ( 1,203 ) 731

Cost of warranty claims

5 unchanged sentences

Certain of the Company’s operating leases contain renewal options and rent acceleration clauses.

Future minimum payments under the non-cancelable operating leases consisted of the following as of March 29, 2025 (in thousands):

Future minimum payments under the non-cancelable operating leases consisted of the following as of June 28, 2025 (in thousands):

Period Future Minimum Lease Payments

3 unchanged sentences

Less imputed interest ( 285 )

As of March 29, 2025, the operating lease liability consisted of the following (in thousands):

As of June 28, 2025, the operating lease liability consisted of the following (in thousands):

Accrued liabilities - current portion of operating leases $ 3,017

5 unchanged sentences

The future minimum lease payments of $ 8.9 million are not included in the table above.

The weighted average discount rate for the Company’s operating leases as of March 29, 2025 was 4.7 %.

The weighted average remaining lease term as of March 29, 2025 was 2.6 years.

For the three months ended March 30, 2024 and March 29, 2025, rent expense was $ 1.1 million for each respective period.

Cash paid within operating cash flows for operating leases was $ 1.2 million and $ 1.1 million for the three months ended March 29, 2025 and March 30, 2024, respectively.

The weighted average discount rate for the Company’s operating leases as of June 28, 2025 was 4.4 %.

The weighted average remaining lease term as of June 28, 2025 was 2.5 years.

For the three and six months ended June 28, 2025, rent expense was $ 1.1 million and $ 2.2 million, respectively.

For the three and six months ended June 29, 2024, rent expense was $ 1.2 million and $ 2.3 million, respectively.

Cash paid within operating cash flows for operating leases was $ 2.3 million and $ 2.2 million for the six months ended June 28, 2025 and June 29, 2024, respectively.

Purchase Commitments

7 unchanged sentences

The estimated excess and obsolete component liabilities related to manufacturing and engineering change orders, termination of manufacturing partners and other factors are recorded against Supplier Deposits in “Prepaid expenses and other current assets” or included in “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets, because the corresponding component parts have not been received or paid for by the Company.

The Company records the related charges in “Cost of revenue” in its Condensed Consolidated Statements of Comprehensive Income (Loss).

As of March 29, 2025 and December 31, 2024, the Company had approximately $ 153.3 million and $ 138.8 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs.

The Company records the related charges in “Cost of revenue” in its Condensed Consolidated Statements of Comprehensive Loss.

As of June 28, 2025 and December 31, 2024, the Company had approximately $ 184.4 million and $ 138.8 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs.

From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities.

2 unchanged sentences

2019 Equity Incentive Award Plan

Employees and consultants of the Company, its subsidiaries and affiliates, as well as members of the Company’s Board of Directors, are eligible to receive awards under the 2019 Equity Incentive Award Plan (the “2019 Plan”).

Employees and consultants of the Company, its subsidiaries and affiliates, as well as members of the Company’s Board of Directors, are eligible to receive awards under the Fourth Amended and Restated 2019 Equity Incentive Award Plan (the “2019 Plan”).

The 2019 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock or cash-based awards and dividend equivalents to eligible individuals.

As of March 29, 2025, there were 0.6 million shares available for issuance under the 2019 Plan.

At the Company’s 2025 annual meeting of stockholders, the stockholders approved an increase in the number of shares of common stock issuable under the 2019 Plan by 4.0 million shares.

As of June 28, 2025, there were 4.1 million shares available for issuance under the 2019 Plan.

In February 2025, stock option awards exercisable for up to an aggregate of 3.1 million shares of common stock were granted to certain members of the Company’s leadership team with a grant date exercise price of $ 39.68 per share.

5 unchanged sentences

The maximum combined award is 100 %.

The probability of meeting the performance conditions was assessed to be probable as of March 29, 2025, and stock-based compensation expense of $ 4.1 million was recognized for the three months ended March 29, 2025.

In March 2025, stock option awards exercisable for up to an aggregate of 0.2 million shares of common stock were granted with a grant date weighted-average exercise price of $ 39.30 per share.

The probability of meeting the performance conditions was assessed to be probable as of June 28, 2025, and stock-based compensation expense of $ 6.7 million was recognized for the three months ended June 28, 2025.

For the six months ended June 28, 2025, stock-based compensation expense of $ 10.9 million was recognized.

During the three months ended June 28, 2025, stock option awards exercisable for up to an aggregate of 0.4 million shares of common stock were granted with a grant date weighted-average exercise price of $ 43.39 per share.

During the six months ended June 28, 2025, stock option awards exercisable for up to an aggregate of 0.6 million shares of common stock were granted with a grant date weighted-average exercise price of $ 42.02 per share.

These stock option awards vest 25 % on the first anniversary of the vesting commencement date and on a quarterly basis thereafter over an additional three years .

During the three months ended March 29, 2025, 46,000 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 31.47 per share.

As of March 29, 2025, unrecognized stock-based compensation expense of $ 106.7 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.4 years.

During the three months ended June 28, 2025, 0.3 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 25.15 per share.

During the six months ended June 28, 2025, 0.4 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 25.98 per share.

As of June 28, 2025, unrecognized stock-based compensation expense of $ 93.5 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.4 years.

During the three and six months ended June 28, 2025, 38,000 restricted stock awards, with a one-year vesting period, were granted to the Company’s Board of Directors with a grant date fair value of $ 42.65 per share.

As of June 28, 2025, unrecognized stock-based compensation expense of $ 1.4 million related to restricted stock awards, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 0.9 years.

During the three months ended June 28, 2025, the Compensation Committee of the Company’s Board of Directors modified an executive’s stock options to accelerate vesting and extend the exercise period for outstanding grants.

As a result, a charge of $ 4.9 million was recognized for the three months ended June 28, 2025.

Employee Stock Purchase Plans

The Company maintains two employee stock purchase plans - the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “NQ ESPP”).

The Company maintains two plans under which employees can purchase Company common stock - the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the non-executive Stock Purchase and Matching Plan (“SPMP”).

In March 2025, the Company’s Board of Directors approved amending and restating the Third Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “NQ ESPP”) as the SPMP, which better describes the nature of the plan whereby when a non-executive employee buys a share, the Company matches it.

The Company’s Board of Directors approval included reserving 2.9 million shares of Company common stock under each of the purchase component and the matching component of the SPMP, with a corresponding decrease in shares authorized in the ESPP of 2.5 million shares.

At the Company’s 2025 annual meeting of stockholders, the stockholders approved an increase to the authorized shares to the SPMP of 1.25 million shares of Common Stock under the matching component, resulting in a corresponding decrease in the shares authorized for issuance under the ESPP of 2.5 million shares.

Shares will be issued from the SPMP starting with the August 8, 2025 purchase period.

The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15 % of their eligible compensation subject to certain Internal Revenue Code limitations.

1 unchanged sentence

The price of common stock purchased under the ESPP is 85 % of the lower of the fair market value of the common stock on the commencement date and the end date of each six-month offering period.

As of March 29, 2025, there were 4.1 million shares available for issuance under the ESPP.

During the three months ended March 29, 2025, 0.2 million shares were purchased under the ESPP.

As of March 29, 2025, unrecognized stock-based compensation expense of $ 0.9 million related to the ESPP is expected to be recognized over a remaining service period of 0.4 years.

The NQ ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25 % of their eligible recurring compensation.

Eligible employees have the right to (a) purchase the maximum number of whole shares of common stock that can be purchased with the elected payroll deductions during each offering period for which

the employee is enrolled at a purchase price equal to the closing price of the Company’s common stock on the last day of such offering period and (b) receive an equal number of shares of the Company’s common stock that are subject to a risk of forfeiture in the event the employee terminates employment within the one year period immediately following the purchase date.

The NQ ESPP provides quarterly offering periods from February 8 th through May 7 th , May 8 th through August 7 th , August 8 th through November 7 th and November 8 th through February 7 th of each year, with a maximum of 0.35 million shares allocated per purchase period.

The maximum number of shares of common stock currently authorized for issuance under the NQ ESPP is 7.5 million shares.

As of March 29, 2025, there were 2.0 million shares available for issuance under the NQ ESPP.

During the three months ended March 29, 2025, 0.2 million shares were purchased and issued.

As of March 29, 2025, unrecognized stock-based compensation expense of $ 12.0 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 0.8 years.

As of June 28, 2025, there were 1.6 million shares available for issuance under the ESPP.

During the six months ended June 28, 2025, 0.2 million shares were purchased under the ESPP.

As of June 28, 2025, unrecognized stock-based compensation expense of $ 0.3 million related to the ESPP is expected to be recognized over a remaining service period of 0.1 years.

The SPMP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25 % of their eligible recurring compensation.

Eligible employees have the right to (a) purchase the maximum number of whole shares of common stock that can be purchased with the elected payroll deductions during each offering period for which the employee is enrolled at a purchase price equal to the closing price of the Company’s common stock on the last day of such offering period and (b) receive an equal number of shares of the Company’s common stock that are subject to a risk of forfeiture in the event the employee terminates employment within the one year period immediately following the purchase date.

The SPMP provides quarterly offering periods from February 8 th through May 7 th , May 8 th through August 7 th , August 8 th through November 7 th and November 8 th through February 7 th of each year, with a maximum of 0.35 million shares allocated per purchase period for the combination of the purchase and matching components.

As of June 28, 2025, there were 1.8 million shares available for issuance under the NQ ESPP.

During the six months ended June 28, 2025, 0.5 million shares were purchased and issued.

As of June 28, 2025, unrecognized stock-based compensation expense of $ 12.0 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 0.8 years.

Stock-Based Compensation

The following table summarizes stock-based compensation expense (in thousands):

Three Months Ended

2025 March 30,

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Cost of revenue $ 764 $ 707 $ 1,544 $ 1,343

9 unchanged sentences

The repurchase program does not obligate the Company to acquire a particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

During the three months ended March 29, 2025, the Company purchased 1.2 million shares of common stock for $ 40.0 million at an average price per share of $ 34.56 .

As of March 29, 2025, the remaining authorized balance under this program was $ 62.9 million.

In April 2025, the Company’s Board of Directors authorized a $ 100.0 million increase to this program.

During the three months ended June 28, 2025, the Company purchased 1.0 million shares of common stock for an aggregate purchase price of $ 33.6 million at an average price per share of $ 33.24 .

During the six months ended June 28, 2025, the Company purchased 2.2 million shares of common stock for an aggregate purchase price of $ 73.5 million at an average price per share of $ 33.95 .

As of June 28, 2025, the remaining authorized balance under this program was $ 129.4 million.

Revenue from Contracts with Customers

2 unchanged sentences

Amounts are billed in accordance with the agreed-upon contractual terms.

Contract assets were $ 3.2 million as of March 29, 2025 as compared to $ 2.8 million as of December 31, 2024, and are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets.

The Company expects to bill 36 % of the March 29, 2025 balance during 2025.

Contract assets were $ 4.5 million as of June 28, 2025 as compared to $ 2.8 million as of December 31, 2024, and are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets.

The Company expects to bill 47 % of the June 28, 2025 balance during 2025.

Contract Liability

Deferred revenue was $ 50.8 million and $ 47.6 million as of March 29, 2025 and December 31, 2024, respectively.

The increase in the deferred revenue balance for the three months ended March 29, 2025 was driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $ 11.0 million of revenue recognized that was included in the deferred revenue balance at the beginning of the period.

Revenue allocated to remaining performance obligations (“RPOs”) represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment.

RPOs were $ 340.4 million as of March 29, 2025, and the Company expects to recognize as revenue 38 % of this amount over the next 12 months and nearly all of the remainder over the two years thereafter.

Deferred revenue was $ 45.9 million, $ 50.8 million and $ 47.6 million as of June 28, 2025, March 29, 2025 and December 31, 2024, respectively.

The decrease in the deferred revenue balance for the three and six months ended June 28, 2025 was driven by $ 11.8 million and $ 16.4 million of revenue recognized that was included in the deferred revenue balance at the beginning of each respective period, partially offset by cash payments received or due in advance of satisfying the Company’s performance obligations.

Remaining performance obligations (“RPOs”) represent contractual commitments that have not yet been fulfilled, which include deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but exclude variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment.

were $ 346.6 million as of June 28, 2025, and the Company expects to recognize as revenue 39 % of this amount over the next 12 months and nearly all of the remainder over the two years thereafter.

Contract Costs

The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year.

As of March 29, 2025 and December 31, 2024, the unamortized balance of deferred commissions was $ 17.6 million and $ 17.9 million, respectively.

For the three months ended March 29, 2025 and March 30, 2024, the amount of amortization was $ 2.7 million and $ 2.0 million, respectively.

As of June 28, 2025 and December 31, 2024, the unamortized balance of deferred commissions was $ 17.1 million and $ 17.9 million, respectively.

For the three and six months ended June 28, 2025 the amount of amortization was $ 2.7 million and $ 5.3 million, respectively, compared to $ 2.1 million and $ 4.2 million for the three and six months ended June 29, 2024, respectively.

There was no impairment loss in relation to the costs capitalized for these periods.

Concentration of Customer Risk

No customer accounted for more than 10% of the Company’s revenue for the three months ended March 29, 2025 and March 30, 2024.

Two customers represented 13 % and 12 % of the Company’s total receivables as of March 29, 2025 and one customer represented 11 % and 21 % of the Company’s total receivables as of March 29, 2025 and December 31, 2024, respectively.

No customer accounted for more than 10% of the Company’s revenue for the three and six months ended June 28, 2025 and June 29, 2024.

One customer represented 10 % of the Company’s total receivables as of June 28, 2025 and another customer represented 21 % of the Company’s total receivables as of December 31, 2024.

Segment Information

The Company develops, markets and sells an appliance-based broadband platform, cloud and managed services, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level.

Accordingly, the Company is considered to be in a single reporting segment and operating unit structure.

The Company develops, markets and sells an appliance-based broadband platform, cloud and managed services.

There are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level.

Accordingly, the Company is a single reporting segment and operating unit structure.

The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer, who reviews financial information presented on a Company-wide basis, for purposes of allocating resources and evaluating financial performance.

The CODM assesses the performance of the single segment and allocates resources based on revenue and measures derived from gross margin and operating income (loss) that is reported in the Condensed Consolidated Statements of Comprehensive Income (Loss).

In addition, the CODM uses a measure derived from operating expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss) to monitor budget versus actual results to determine the Company’s and management’s performance.

The CODM assesses the performance of the single segment and allocates resources based on revenue and measures derived from gross margin and operating loss that is reported in the Condensed Consolidated Statements of Comprehensive Loss.

In addition, the CODM uses a measure derived from operating expenses in the Condensed Consolidated Statements of Comprehensive Loss to monitor budget versus actual results to determine the Company’s and management’s performance.

The Company does not have intra-entity sales or transfers.

3 unchanged sentences

A summary of revenue disaggregated by geographic region based upon the location of the customers was as follows (in thousands):

Three Months Ended

March 29, 2025 March 30, 2024

Three Months Ended Six Months Ended

June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024

United States $ 219,039 $ 182,705 $ 430,218 $ 392,795

Americas ex U.S.

Europe 15,565 6,712 18,094 13,572

Americas ex U.S.

5,881 7,052 11,349 14,187

Rest of world 1,397 1,670 2,463 3,895

8 unchanged sentences

The following table presents selected financial information with respect to the Company’s single operating segment (in thousands):

Three Months Ended

2025 March 30,

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Revenue $ 241,882 $ 198,139 $ 462,124 $ 424,449

18 unchanged sentences

The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages):

Three Months Ended

2025 March 30,

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Income (loss) before income taxes $ 3,427 $ ( 8,682 ) $ 437 $ ( 8,214 )

Income taxes $ 1,797 $ 365

Income taxes (benefit) $ 3,626 $ ( 724 ) $ 5,423 $ ( 359 )

Effective tax rate 105.8 % 8.3 % 1,241.0 % 4.4 %

The Company has historically recorded its interim period provision for income taxes by applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items.

However, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate is highly sensitive to fluctuations in pre-tax income and does not provide a reasonable estimate for income taxes in the interim period.

As such, the Company has computed its provision for income taxes for the three months ended March 29, 2025 and March 30, 2024 using an actual year-to-date tax calculation.

The Company plans to revert to applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items once that method produces more reasonable results.

The Company’s effective tax rate for the three months ended March 29, 2025 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes, the effect of non-deductible stock-based compensation for executive officers, excess tax expense from stock-based compensation offset by the favorable impact of U.S.

federal research tax credits and the U.S.

tax impact of foreign operations.

The Company’s effective tax rate for the three months ended March 30, 2024 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes and the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

However, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate is highly sensitive to fluctuations in pre-tax income and does not provide a reliable estimate for income taxes in the interim period.

As such, the Company has computed its provision for income taxes for the three and six months ended June 28, 2025 and June 29, 2024 using an actual year-to-date tax calculation.

The Company plans to revert to applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items once that method is reliably estimable.

The Company’s effective tax rate for the three and six months ended June 28, 2025 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes, the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

federal research tax credits, excess tax benefits from stock-based compensation and the U.S.

tax impact of foreign operations.

The Company maintained a valuation allowance of $ 30.6 million for the three months ended March 29, 2025, compared to $ 29.9 million for the three months ended March 30, 2024, on certain U.S.

The Company maintained a valuation allowance of $ 30.6 million for the three and six months ended June 28, 2025, compared to $ 29.9 million for the three and six months ended June 29, 2024, on certain U.S.

federal and state deferred tax assets that the Company believes are not more likely than not to be realized in future periods.

1 unchanged sentence

In the event that actual results differ from these estimates, or if the Company decides to adjust these estimates in the future periods, further adjustments to its valuation allowance may be recorded, which could materially impact the Company’s financial position and net income in the period of the adjustment.

In December 2021, the Organization for Economic Cooperation and Development enacted model rules for a new global minimum tax framework (“Pillar Two”), and certain governments in countries which the Company operates have enacted local Pillar Two legislation, with an effective date from January 1, 2024.

In December 2021, the Organization for Economic Cooperation and Development enacted model rules for a new global minimum tax framework (“Pillar Two”), and certain governments in countries in which the Company operates have enacted local Pillar Two legislation, with an effective date from January 1, 2024.

The Company currently does not expect Pillar Two to have a material impact on its financial statements.

Net Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):

Three Months Ended

2025 March 30,

Net income (loss) $ ( 4,787 ) $ 103

Weighted-average common shares outstanding used to compute basic net income (loss) per share 66,027 65,338

Effect of dilutive common stock equivalents — 2,781

Weighted-average common shares outstanding used to compute diluted net income (loss) per share 66,027 68,119

Net income (loss) per common share:

Basic net income (loss) per common share $ ( 0.07 ) $ 0.00

Diluted net income (loss) per common share $ ( 0.07 ) $ 0.00

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act ("OBBBA"), which includes a broad range of tax reform provisions affecting businesses.

The OBBA includes numerous changes to existing tax law including extending or making permanent certain business and international tax measures initially established under the 2017 Tax Cuts and Jobs Act, which were set to expire.

Additionally, the OBBBA permanently eliminates the requirement to capitalize and amortize U.S.-based research and experimental expenditures over five years, making these expenditures fully deductible in the period incurred.

The Company expects these provisions to result in a reduction of current income tax liabilities and a corresponding reduction to deferred tax assets.

The Company will continue to analyze the OBBBA and its impact on its financial statements and will reflect any impact in the period of enactment.

Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data):

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Net loss $ ( 199 ) $ ( 7,958 ) $ ( 4,986 ) $ ( 7,855 )

Weighted-average common shares outstanding used to compute basic net loss per share 64,525 65,678 65,321 65,509

Basic and diluted net loss per common share $ ( 0.00 ) $ ( 0.12 ) $ ( 0.08 ) $ ( 0.12 )

Potentially dilutive shares excluded, weighted average 15,086 12,300 14,369 11,863

Potentially dilutive shares have been excluded from the computation of diluted net income (loss) per common share when their effect is antidilutive.

Potentially dilutive shares have been excluded from the computation of diluted net loss per common share when their effect is antidilutive.

These antidilutive shares were primarily from stock options.

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