What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-22 · 158 added, 141 removed, 375 unchanged (44% of the section changed)

2 unchanged sentences

(In thousands, except par value)

September 27,

2025 December 31,

27 unchanged sentences

5,000 shares authorized;

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

no shares issued and outstanding as of September 27, 2025 and December 31, 2024

Common stock, $ 0.025 par value;

100,000 shares authorized;

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

66,250 shares issued and outstanding as of September 27, 2025, and 66,434 shares issued and outstanding as of December 31, 2024

Additional paid-in capital 1,200,506 1,170,017

4 unchanged sentences

See accompanying notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Revenue $ 265,437 $ 200,945 $ 727,561 $ 625,394

7 unchanged sentences

Operating income (loss) 17,405 ( 10,896 ) 11,715 ( 24,284 )

Interest income and other income (expense), net:

Interest income and other expense, net:

Interest income, net 3,264 3,282 9,510 8,877

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

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

Other expense, net ( 335 ) ( 178 ) ( 454 ) ( 599 )

Total interest income and other expense, net 2,929 3,104 9,056 8,278

Income (loss) before income taxes 20,334 ( 7,792 ) 20,771 ( 16,006 )

Income taxes (benefit) 4,676 ( 3,824 ) 10,099 ( 4,183 )

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

Net loss per common share:

Net income (loss) $ 15,658 $ ( 3,968 ) $ 10,672 $ ( 11,823 )

Net income (loss) per common share:

Basic $ 0.24 $ ( 0.06 ) $ 0.16 $ ( 0.18 )

1 unchanged sentence

Weighted-average number of shares used to compute

net loss per common share:

net income (loss) per common share:

Basic 65,753 66,078 65,771 65,700

Diluted 69,789 66,078 68,973 65,700

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

Net income (loss) $ 15,658 $ ( 3,968 ) $ 10,672 $ ( 11,823 )

Other comprehensive income (loss), net of tax:

Unrealized gain (loss) on available-for-sale marketable securities, net 41 5 213 ( 206 )

Unrealized gain on available-for-sale marketable securities, net 134 1,190 347 983

Foreign currency translation adjustments, net ( 222 ) 273 62 166

4 unchanged sentences

(In thousands, unaudited)

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

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

Shares Amount

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

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

Stock-based compensation — — 20,802 — — 20,802

Issuance of common stock under equity incentive plans, net of forfeitures 1,015 25 16,600 — — 16,625

Repurchases of common stock including excise tax ( 1,009 ) ( 25 ) ( 33,617 ) — — ( 33,642 )

Net loss — — — — ( 199 ) ( 199 )

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

Repurchases of common stock ( 59 ) ( 1 ) ( 3,162 ) — — ( 3,163 )

Net income — — — — 15,658 15,658

Other comprehensive loss — — — ( 88 ) — ( 88 )

Balance as of September 27, 2025 66,250 $ 1,657 $ 1,200,506 $ ( 203 ) $ ( 379,454 ) $ 822,506

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (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

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

Stock-based compensation — — 16,371 — — 16,371

2 unchanged sentences

Other comprehensive income — — — 1,463 — 1,463

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

Balance as of September 28, 2024 66,318 $ 1,658 $ 1,148,742 $ 490 $ ( 372,202 ) $ 778,688

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

Shares Amount

2 unchanged sentences

Issuance of common stock under equity incentive plans, net of forfeitures 2,041 52 40,771 — — 40,823

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

Net loss — — — — ( 4,986 ) ( 4,986 )

Repurchases of common stock ( 2,225 ) ( 56 ) ( 76,954 ) — — ( 77,010 )

Net income — — — — 10,672 10,672

Other comprehensive income — — — 409 — 409

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

Balance as of September 27, 2025 66,250 $ 1,657 $ 1,200,506 $ ( 203 ) $ ( 379,454 ) $ 822,506

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

Shares Amount

4 unchanged sentences

Net loss — — — — ( 11,823 ) ( 11,823 )

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

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

Other comprehensive income — — — 1,149 — 1,149

Balance as of September 28, 2024 66,318 $ 1,658 $ 1,148,742 $ 490 $ ( 372,202 ) $ 778,688

See accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

(In thousands, unaudited)

Six Months Ended

2025 June 29,

Nine Months Ended

September 27,

2025 September 28,

Operating activities:

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

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

Net income (loss) $ 10,672 $ ( 11,823 )

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

Stock-based compensation 65,976 48,686

16 unchanged sentences

Maturities of marketable securities 168,350 115,529

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

Net cash used in investing activities ( 894 ) ( 75,927 )

Financing activities:

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 26 147

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

Net increase (decrease) in cash and cash equivalents 51,850 ( 1,048 )

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 six months ended June 28, 2025 than for the six months ended June 29, 2024.

As a result, the Company had one less day in the nine months ended September 27, 2025 than for the nine months ended September 28, 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 six months ended June 28, 2025.

The Company’s significant accounting policies did not change during the nine months ended September 27, 2025.

Newly Adopted Accounting Standard

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

The Company did not adopt any new accounting standards during the nine months ended September 27, 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 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.

There have been no additional accounting pronouncements or changes in accounting pronouncements during the nine months ended September 27, 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 and six months ended June 28, 2025 and June 29, 2024.

Realized gains and losses were not significant for the three and nine months ended September 27, 2025 and September 28, 2024.

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

September 27,

2025 December 31,

1 unchanged sentence

Cash $ 33,861 $ 20,664

Money market funds 23,457 4,890

Commercial paper 47,526 10,058

Money market funds 12,378 4,890

government securities 1,247 7,550

10 unchanged sentences

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

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

As of September 27, 2025 Amortized Cost Unrealized Gains (Losses), net Fair Value

Corporate debt securities $ 144,834 $ 516 $ 145,350

government securities 59,514 149 59,663

Commercial paper 68,721 ( 15 ) 68,706

government securities 57,620 181 57,801

government agency securities 14,481 21 14,502

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 June 28, 2025 Level 1 Level 2 Total

As of September 27, 2025 Level 1 Level 2 Total

Money market funds $ 12,378 $ — $ 12,378

15 unchanged sentences

Accounts receivable, net consisted of the following (in thousands):

September 27,

2025 December 31,

3 unchanged sentences

Inventory consisted of the following (in thousands):

September 27,

2025 December 31,

3 unchanged sentences

Prepaid expenses and other current assets consisted of the following (in thousands):

September 27,

2025 December 31,

3 unchanged sentences

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

September 27,

2025 December 31,

8 unchanged sentences

Accrued liabilities consisted of the following (in thousands):

September 27,

2025 December 31,

1 unchanged sentence

Component inventory held by suppliers 9,351 8,855

Professional and consulting fees 5,148 5,385

Taxes payable 8,750 5,048

Professional and consulting fees 5,625 5,385

Current portion of warranty 3,368 5,288

Travel and event expenses 3,270 518

Customer advances or rebates 3,090 4,882

1 unchanged sentence

Insurance 1,783 2,019

Freight 1,663 1,640

Product returns 1,657 2,428

Travel and event expenses 1,654 518

Operations 1,263 1,735

Product returns 1,202 2,428

Freight 924 1,640

Other 7,429 6,062

1 unchanged sentence

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

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Balance at beginning of period $ 4,893 $ 7,371 $ 7,287 $ 8,029

8 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 June 28, 2025 (in thousands):

Future minimum payments under the non-cancelable operating leases consisted of the following as of September 27, 2025 (in thousands):

Period Future Minimum Lease Payments

Remainder of 2025 $ 445

2029 and thereafter 340

Thereafter 4,150

Total future minimum lease payments 13,378

Less imputed interest ( 2,061 )

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

As of September 27, 2025, the operating lease liability consisted of the following (in thousands):

Accrued liabilities - current portion of operating leases $ 2,046

Operating leases 9,271

The Company leases its headquarters office space in San Jose, California under a lease agreement that expires in December 2025.

The future minimum lease payments under the lease are $ 1.3 million and are included in the table above.

In December 2024, the Company entered into a new headquarters office lease agreement for 23,000 square feet in San Jose, California.

The lease is expected to commence in August 2025 for a term of 90 months.

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 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.

The lease commenced in August 2025 for a term of 90 months.

The future minimum lease payments of $ 8.9 million are included in the table above.

The Company recorded a right-of-use operating lease asset and operating lease liability of $ 7.0 million in the third quarter of 2025.

The Company’s previous lease in San Jose, California expires in October 2025.

The weighted average discount rate for the Company’s operating leases as of September 27, 2025 was 5.1 %.

The weighted average remaining lease term as of September 27, 2025 was 5.9 years.

For the three and nine months ended September 27, 2025, rent expense was $ 1.3 million and $ 3.5 million, respectively.

For the three and nine months ended September 28, 2024, rent expense was $ 1.2 million and $ 3.5 million, respectively.

Cash paid within operating cash flows for operating leases was $ 3.5 million and $ 3.4 million for the nine months ended September 27, 2025 and September 28, 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 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.

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

As of September 27, 2025 and December 31, 2024, the Company had approximately $ 192.4 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.

5 unchanged sentences

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.

As of September 27, 2025, there were 3.8 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 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 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.

The probability of meeting the performance conditions was assessed to be probable as of September 27, 2025, and stock-based compensation expense of $ 6.6 million was recognized for the three months ended September 27, 2025.

For the nine months ended September 27, 2025, stock-based compensation expense of $ 17.4 million was recognized.

During the three months ended September 27, 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 $ 56.67 per share.

During the nine months ended September 27, 2025, stock option awards exercisable for up to an aggregate of 1.0 million shares of common stock were granted with a grant date weighted-average exercise price of $ 47.39 per share.

These stock option awards generally 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 September 27, 2025, 0.7 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 11.09 per share.

During the nine months ended September 27, 2025, 1.1 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 15.85 per share.

As of September 27, 2025, unrecognized stock-based compensation expense of $ 89.0 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.3 years.

During the nine months ended September 27, 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 September 27, 2025, unrecognized stock-based compensation expense of $ 1.0 million related to restricted stock awards is expected to be recognized over a weighted-average period of 0.6 years.

Employee Stock Purchase Plans

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.

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, including 1.25 million shares for the matching component subject to stockholder approval, 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.

3 unchanged sentences

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 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.

As of September 27, 2025, there were 1.5 million shares available for issuance under the ESPP.

During the nine months ended September 27, 2025, 0.3 million shares were purchased under the ESPP.

As of September 27, 2025, unrecognized stock-based compensation expense of $ 1.2 million related to the ESPP is expected to be recognized over a remaining service period of 0.4 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 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.

As of September 27, 2025, there were 2.9 million shares and 2.8 million shares available for issuance under the SPMP purchase and matching components, respectively.

During the nine months ended September 27, 2025, 0.7 million shares were purchased and issued.

As of September 27, 2025, unrecognized stock-based compensation expense of $ 12.9 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 Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Cost of revenue $ 753 $ 770 $ 2,297 $ 2,113

10 unchanged sentences

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.

During the three months ended September 27, 2025, the Company purchased 0.1 million shares of common stock for an aggregate purchase price of $ 3.5 million at an average price per share of $ 59.20 .

During the nine months ended September 27, 2025, the Company purchased 2.2 million shares of common stock for an aggregate purchase price of $ 77.0 million at an average price per share of $ 34.61 .

As of September 27, 2025, the remaining authorized balance under this program was $ 125.9 million.

Revenue from Contracts with Customers

2 unchanged sentences

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

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 assets were $ 4.5 million as of September 27, 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 23 % of the September 27, 2025 balance during 2025.

Contract Liability

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.

Deferred revenue was $ 43.9 million, $ 45.9 million and $ 47.6 million as of September 27, 2025, June 28, 2025 and December 31, 2024, respectively.

The decrease in the deferred revenue balance for the three and nine months ended September 27, 2025 was driven by $ 10.9 million and $ 20.2 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.

RPOs were $ 354.6 million as of September 27, 2025, and the Company expects to recognize as revenue 40 % 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 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.

As of September 27, 2025 and December 31, 2024, the unamortized balance of deferred commissions was $ 17.8 million and $ 17.9 million, respectively, and were included in prepaid expenses and other current assets, and other long-term assets on the Condensed Consolidated Balance Sheets.

For the three and nine months ended September 27, 2025 the amount of amortization was $ 2.9 million and $ 8.2 million, respectively, compared to $ 2.3 million and $ 6.4 million for the three and nine months ended September 28, 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 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.

No customer accounted for more than 10% of the Company’s revenue for the three and nine months ended September 27, 2025 and September 28, 2024.

No customer represented 10% of the Company’s total receivables as of September 27, 2025 and one customer represented 21 % of the Company’s total receivables as of December 31, 2024.

Segment Information

2 unchanged sentences

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 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’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.

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 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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024

United States $ 249,213 $ 187,080 $ 679,432 $ 579,873

5 unchanged sentences

The Company’s property and equipment, net of accumulated depreciation, were located in the following geographical areas (in thousands):

September 27,

2025 December 31, 2024

5 unchanged sentences

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

Three Months Ended Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Revenue $ 265,437 $ 200,945 $ 727,561 $ 625,394

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 Six Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Income (loss) before income taxes $ 20,334 $ ( 7,792 ) $ 20,771 $ ( 16,006 )

1 unchanged sentence

Effective tax rate 23.0 % 49.1 % 48.6 % 26.1 %

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 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.

The Company’s income taxes for the three and nine months ended September 27, 2025 and September 28, 2024 were determined using an estimated effective tax rate adjusted for discrete items that occurred during respective periods.

The Company’s effective tax rate for the three and nine months ended September 27, 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 and excess tax benefits from stock-based compensation.

The Company’s effective tax rate for the three and nine months ended September 28, 2024 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 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.

The Company maintained a valuation allowance of $ 30.6 million for the three and nine months ended September 27, 2025, compared to $ 29.3 million for the three and nine months ended September 28, 2024, on certain state deferred tax assets that the Company believes are not more likely than not to be realized in future periods.

The Company considered scheduled reversals of deferred tax liabilities, historic profitability, projected future taxable income, ongoing tax planning strategies and other matters, including the period over which its deferred tax assets will be recoverable, in assessing the need for and the amount of the valuation allowance.

2 unchanged sentences

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

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 )

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act ("OB3"), which includes a broad range of tax reform provisions affecting businesses.

The OB3 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 OB3 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 has accounted for the effects of the OB3 in the interim financial statements for the period ended September 27, 2025, of which the primary impact is a reduction of current tax liabilities and a corresponding reduction in deferred tax assets.

The Company will continue to evaluate the impacts of OB3 including the potential impacts on future periods and tax planning strategies.

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 Nine Months Ended

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Net income (loss) $ 15,658 $ ( 3,968 ) $ 10,672 $ ( 11,823 )

Weighted-average common shares outstanding used to compute basic net income (loss) per share 65,753 66,078 65,771 65,700

Effect of dilutive common stock equivalents 4,036 — 3,202 —

Weighted-average common shares outstanding used to compute diluted net income (loss) per share 69,789 66,078 68,973 65,700

Net income (loss) per common share:

Basic net income (loss) per common share $ 0.24 $ ( 0.06 ) $ 0.16 $ ( 0.18 )

Diluted net income (loss) per common share $ 0.22 $ ( 0.06 ) $ 0.15 $ ( 0.18 )

Potentially dilutive shares excluded, weighted average 3,874 12,294 7,028 12,004

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

Potentially dilutive shares have been excluded from the computation of diluted net income (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