What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2025-05-23 compared with 2024-05-16 · 132 added, 137 removed, 291 unchanged (48% of the section changed)

3 unchanged sentences

Company Overview

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming.

As a point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet.

We sell these products through a number of brands, including Logitech, Logitech G and others.

Our diverse portfolio includes:

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, and gaming.

As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet.

We sell the vast majority of our products under Logitech and Logitech G brand names.

Our diverse, innovative portfolio includes:

Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets.

1 unchanged sentence

Peripherals (see Note 15 to our consolidated financial statements).

We sell our products to a broad network of international customers, in the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific.

This includes direct sales to retailers, e-tailers, and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.

We sell our products to a broad range of international customers, in the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific.

This includes direct sales to retailers, e-tailers, businesses large and small and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.

From time to time, we may seek to partner with or acquire, when appropriate, companies that have products, personnel, and technologies that complement our strategic direction.

1 unchanged sentence

Impacts of Macroeconomic and Geopolitical Conditions on our Business

Our business has been impacted by adverse macroeconomic and geopolitical conditions.

These conditions include inflation, interest rate and foreign currency fluctuations, changes in fiscal policies, slowdown of economic activity around the world, and lower consumer and enterprise spending.

The global and regional economic and political conditions adversely affected demand for our products.

In addition, these conditions have caused and may continue to cause volatility in the cost of materials and logistics, and transportation delays, and as a result may impact the pricing of our products, product availability and our results of operations.

For additional information, see Item 1A " Risk Factors ," including under the captions " Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition , " “We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components,” “Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as potential tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations,” “If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected,” and "If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected.”

In 2025, the United States introduced trade policy actions that have increased import tariffs across a wide range of countries at various rates, with certain exemptions.

The tariff policies in the U.S.

and responsive policies enacted in other countries are evolving and may have a material adverse impact on our business.

In addition, our business has continued to be impacted by ongoing macroeconomic and geopolitical conditions.

These conditions include inflation, interest rate and foreign currency fluctuations, uncertainty in consumer and enterprise demand, low economic growth in certain regions, changes in fiscal policies and geopolitical conflicts.

The global and regional economic and political conditions, as well as changes in trade policies, have caused and may continue to cause volatility in demand for our products as well as cost of tariffs, materials and logistics, and transportation delays, and as a result have impacted and may continue to impact the pricing of our products, product availability and our results of operations.

For additional information, see Part I, Item 1A " Risk Factors ," including under the captions " Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition , " “We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components,” “Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as changes in tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations,” “If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected,” and "If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected.”

Trends and Uncertainties

1 unchanged sentence

We design, create and sell products that benefit from these secular trends which include the following:

• Hybrid work:

Hybrid work provides an opportunity to equip multiple workspaces including in the office and other places of work, as well as at home and away from home.

Hybrid work also provides an opportunity for increased enterprise and consumer adoption of video conferencing.

Our video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet

AI has reshaped expectations for productivity improvements, product innovation and technology ecosystem evolution.

While we have used AI solutions and machine learning to enhance the features of

Logitech International S.A.

| Fiscal 2025 Form 10-K | 39

different products in our portfolio, AI offers additional growth opportunities and risks as we work to integrate our capabilities with our ecosystem partners.

• New ways of working:

The new ways of working that have emerged after the pandemic in which people are splitting time between working in the office, from home, and from other places while on the go, provide opportunities for Logitech to equip multiple workspaces with products across our portfolio including Pointing Devices, Keyboards & Combos, Tablet Accessories, Headsets and Webcams.

The new ways of working also provide an opportunity for increased adoption of video conferencing by enterprises and consumers.

Our video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet.

• Gaming growth:

The ongoing growth and evolution of gaming creates an opportunity for us to provide more tools to a wider community of gamers.

In particular, social gaming continues to gain popularity through online gaming, multi-platform experiences and esports.

AI has reshaped expectations for productivity improvements, product innovation and technology ecosystem evolution.

While we have used AI solutions and machine learning to enhance the features of different products in our portfolio, AI offers additional growth opportunities and risks as we work to integrate our capabilities with our ecosystem partners.

• Climate change:

Climate change affects everyone.

We already consider sustainability as part of our product design and in other areas and intend to continue to do so in the future.

• The importance of trust:

With our well-established Logitech brand, consumer-centric design philosophy, and commitment to high privacy and security standards, we strive to deliver trusted user experiences.

While we believe we will further benefit from these secular trends, we have experienced and will continue to experience challenges that impact our business and financial results.

These challenges include (i) the current macroeconomic environment, including interest rate fluctuations, inflation, foreign exchange movements, changes in fiscal policies and low economic growth in certain regions, (ii) the uncertainty with overall consumer and enterprise demand, (iii) the uncertainty with enterprise strategy for office space utilization and related timing of enterprise investments in infrastructure and technology, and (iv) the timing of further development of our B2B go-to-market capabilities.

These challenges include (i) uncertainty in tariffs on goods imported into the U.S.

and responsive policies enacted by other countries, (ii) the macroeconomic environment, including inflation, interest rate and foreign currency fluctuations, changes in fiscal policies and low economic growth in certain regions, (iii) the uncertainty of overall consumer and enterprise demand, (iv) the uncertainty of timing of enterprise investments in infrastructure and technology, and (v) the timing of further development of our B2B go-to-market capabilities.

We expect these challenges to continue in the near-term.

We have taken steps to mitigate the impact of these challenges, including but not limited to:

(i) reduction in our operating expenses in order to maintain margins and size the business for the current market, (ii) reduction in inventories to more appropriately align with demand, (iii) continued investment in our B2B capabilities, and (iv) release of new products to increase the value proposition of our portfolio.

(i) continued diversification of our manufacturing footprint and supplier ecosystem, (ii) maintaining discipline in our operating expenses, (iii) managing inventory levels to align with demand, (iv) continued investment in our B2B capabilities, and (v) continued release of new products to increase the value proposition of our portfolio.

For additional information, see Part I, Item 1A “ Risk Factors .”

Business Seasonality and Product Introductions

We have historically experienced higher sales in our third fiscal quarter ending December 31, compared to other fiscal quarters in our fiscal year, primarily due to the increased consumer demand for our products during the year-end holiday buying season and year-end spending by enterprises.

We have historically experienced higher sales in our third fiscal quarter ending December 31, compared to other fiscal quarters in our fiscal year, primarily due to increased consumer demand during the holiday season and increased spending by enterprises in the months nearing the calendar year-end.

Additionally, new product introductions and business acquisitions can significantly impact sales, product costs and operating expenses.

Product introductions can also impact our sales to distribution channels as these channels are filled with new product inventory following a product introduction, and often channel inventory of an earlier model product declines as the next related major product launch approaches.

Sales can also be affected when consumers and distributors anticipate a product introduction or changes in business circumstances.

However, neither historical seasonal patterns nor historical patterns of product introductions should be considered reliable indicators of our future pattern of product introductions, future sales or financial performance.

Furthermore, cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance for the third quarter and we pay an annual dividend following our Annual General Meeting, which is typically in September.

Furthermore, cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September.

Summary of Financial Results

Our total sales for fiscal year 2024 decreased 5% , compared to fiscal year 2023, primarily drive n by a decline in sales of most of our product categories as a result of lower demand.

Sales for fiscal year 2024 decreased 16% and 2% in the Asia Pacific and Americas regions, respectively, and were flat in EMEA, compared to fiscal year 2023.

Gross margin for fiscal year 2024 increased by 350 basis points to 41.4% , compared to 37.9% for fiscal year 2023, primarily due to lower material and logistics costs as well as lower promotional spend, partially offset by unfavorable product mix.

Our total sales for fiscal year 2025 increased 6% , compared to fiscal year 2024, primarily drive n by an increase in sales of Gaming, Keyboards & Combos, Pointing Devices, and Tablet Accessories, due to improved demand.

Sales for fiscal year 2025 increased 9% , 6% and 4% in the EMEA, Asia Pacific and Americas regions, respectively, compared to fiscal year 2024.

Gross margin for fiscal year 2025 increased by 170 basis points to 43.1% , compared to 41.4% for fiscal year 2024, primarily driven by lower product costs, partially offset by higher promotional spending.

Operating expenses for fiscal year 2025 were $1,307.7 million , or 28.7% of sales, compared to $1,190.7 million, or 27.7% of sales, for fiscal year 2024.

The decrease in operating expenses was primarily driven by a reduction in marketing spend.

The increase in operating expenses was primarily driven by an increase in marketing and selling expenses.

We had an income tax provision of $75.3 million for fiscal year 2025, compared to $9.5 million for fiscal year 2024, primarily driven by the discrete tax benefits recognized in fiscal year 2024 for the benefit of future Swiss tax deductions, the remeasurement of the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing ("TRAF"), Foreign Derived Intangible Income ("FDII") incentive provided by the Tax Cuts and Jobs Act

Logitech International S.A.

| Fiscal 2025 Form 10-K | 40

Included in the income tax provision of $9.5 million and $98.9 million in fiscal year 2024 and 2023 was $20.7 million of tax benefit and $46.0 million of tax expense, respectively, from Switzerland.

Net income for fiscal year 2024 wa s $612.1 million , compared to $364.6 million for fiscal year 2023, reflecting higher gross margin as well as lower operating expenses and income tax provision.

and remeasurement of our Swiss deferred tax assets due to a change in tax rate, partially offset by the tax benefit recognized in fiscal year 2025 from the release of previously recorded tax reserves for uncertain tax positions.

Net income for fiscal year 2025 wa s $631.5 million , compared to $612.1 million for fiscal year 2024, reflecting higher gross margin, partially offset by an increase in operating expenses and income tax provision.

Critical Accounting Estimates

54 unchanged sentences

Such adjustments may have a material impact on our income tax provision and our results of operations.

For additional information about our Critical Accounting Estimates, see Note 2—Summary of Significant Accounting Policies in our Notes to our consolidated financial statements below.

For additional information about our Critical Accounting Estimates, see Note 2—Summary of Significant Accounting Policies in our Notes to our consolidated financial statements.

New Accounting Pronouncements

Refer to Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K for recent accounting pronouncements to be adopted.

Refer to Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K for recent accounting pronouncements adopted and to be adopted.

Logitech International S.A.

12 unchanged sentences

In this section, we discuss the results of our operations for the year ended March 31, 2025 compared to the year ended March 31, 2024.

For a discussion of the year ended March 31, 2023 compared to the year ended March 31, 2022, please refer to Part II, I tem 7, "Management's Discussi on and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the SEC on May 17, 2023.

Our sales in fiscal year 2024 decreased 5% , compared to fiscal year 2023, primarily driven b y a decline in sales of most of our product categories as a result of lower demand.

If currency exchange rates had been constant in fiscal years 2024 and 2023, our sales decline in constant currency would have been 6% .

For a discussion of the year ended March 31, 2024 compared to the year ended March 31, 2023, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the SEC on May 16, 2024.

Our sales in fiscal year 2025 increased 6% , compared to fiscal year 2024, primarily driven b y an increase in sales of Gaming, Keyboards & Combos, Pointing Devices, and Tablet Accessories, due to improved demand .

If currency exchange rates had been constant in fiscal years 2025 and 2024, our sales growth rate in constant currency would have been 7% .

Sales Denominated in Other Currencies

8 unchanged sentences

Asia Pacific 6 7

The decrease in sales in the Americas region for fiscal year 2024, compared to fiscal year 2023, was primarily driven by decreases in sales for mobile speakers and PC speakers in our Other category.

Sales in the EMEA region for fiscal year 2024, compared to fiscal year 2023, remained flat.

Increases in sales for Gaming and Pointing Devices were offset by decreases in sales for Webcams and Video Collaboration.

The increase in sales in the Americas region for fiscal year 2025, compared to fiscal year 2024, was primarily driven by an increase in sales of Gaming, Tablet Accessories, and Video Collaboration.

The increase in sales in the EMEA region for fiscal year 2025, compared to fiscal year 2024, was primarily driven by an increase in sales of Gaming, Keyboards & Combos, and Pointing Devices.

Logitech International S.A.

1 unchanged sentence

Asia Pacific:

The decrease in sales in the Asia Pacific region for fiscal year 2024, compared to fiscal year 2023, was primarily driven by decreases in sales of Gaming, Keyboards & Combos and Video Collaboration.

The increase in sales in the Asia Pacific region for fiscal year 2025, compared to fiscal year 2024, was primarily driven by an increase in sales of Gaming and Tablet Accessories.

Sales by Product Category

During the first quarter of fiscal year 2024, we changed the presentation of sales by product category to provide a simpler and clearer view of our business.

The change in presentation did not have an impact on previously reported total sales.

As a result of these changes, certain prior-period amounts for the fiscal year 2023 have been reclassified to conform to the current period presentation.

See Note 2 to the consolidated financial statements for further information on the change in presentation.

Sales by product category in the current presentation for fiscal years 2024 and 2023 were as follows (Dollars in thousands):

Sales by product category for fiscal years 2025 and 2024 were as follows (Dollars in thousands):

Years Ended March 31, Change

11 unchanged sentences

(2) Other primarily consists of mobile speakers and PC speakers.

Our Gaming category includes gaming mice, steering wheels, headsets, keyboards, console gaming headsets, studio-quality Blue Microphones and Streamlabs services.

During fiscal year 2024, Gaming sales decreased 4%, compared to fiscal year 2023, primarily driven by decreases in sales of gaming keyboards, Blue Microphones, and Streamlabs services.

Our Gaming category includes gaming mice, steering wheels, headsets, keyboards, console gaming headsets, microphones and Streamlabs services.

During fiscal year 2025, Gaming sales increased 9%, compared to fiscal year 2024, primarily driven by increases in sales of gaming mice and gaming steering wheels.

Keyboards & Combos

Our Keyboards & Combos category includes PC keyboards and keyboard/mice combo products.

During fiscal year 2024, Keyboards & Combos sales decreased 2% , compared to fiscal year 2023, primarily driven by a decrease in sales of our cordless keyboards, partially offset by an increase in sales of our cordless combos.

During fiscal year 2025, Keyboards & Combos sales increased 7%, comp ared to fiscal year 2024, primarily driven by an increase in sales of our cordless combos.

Pointing Devices

Our Pointing Devices category includes PC- and Mac-related mice including trackballs and presentation tools.

During fiscal year 2024, Pointing Devices sales increased 2% , compared to fiscal year 2023, primarily driven by increases in sales of cordless mice and presentation tools.

During fiscal year 2025, Pointing Devices sale s increased 6%, compared to fiscal year 2024, primarily driven by an increase in sales of cordless mice.

Video Collaboration

Our Video Collaboration category includes Logitech’s conference room cameras, which combine affordable enterprise-quality audio and high definition 4K video to bring video conferencing to a variety of room sizes.

During fiscal year 2024, Video Collaboration sales decreased 10%, compared to fiscal year 2023, primarily due to decreases in sales of many Video Collaboration products driven by lower enterprise spending.

During fiscal year 2025, Video Collaboration sales increased 3%, compared to fiscal year 2024, primarily due to an increase in sales of conference room cameras as well as an increase in services revenue.

Our Webcams category includes PC-based webcams including streaming cameras, and VC webcams that turn any desktop into an instant collaboration space.

During fiscal year 2025, Webcams sales decreased 3%, compared to fiscal year 2024, primarily driven by a decrease in sales of our VC webcams, partially offset by an increase in sales of our PC-based webcams.

Logitech International S.A.

| Fiscal 2025 Form 10-K | 44

Our Webcams category includes PC-based webcams that are targeted primarily at consumers, including streaming cameras, and VC webcams that turn any desktop into an instant collaboration space.

During fiscal year 2024, Webcams sales decreased 14%, compared to fiscal year 2023, primarily driven by decreases in sales of most of our VC webcams and PC-based webcams.

Tablet Accessories

Our Tablet Accessories category primarily includes tablet keyboards.

During fiscal year 2024, Tablet Accessories sal es remained flat, compared to fiscal year 2023.

During fiscal year 2025, Tablet Accessories sal es increased 18%, compared to fiscal year 2024, primarily driven by strong sales from the education sector related to our Rugged Combo 4 products as well as sales from our new Combo Touch products launched in fiscal year 2025 for the latest releases of iPad Air and iPad Pro.

Sales of Tablet Accessories for fiscal year 2025 , compared to fiscal year 2024, also benefited from strong sales from the education sector.

Our Headsets category includes PC and VC headsets, in-ear headphones, and premium wireless earbuds.

During fiscal year 2024, Headsets sales decreased 5%, compared to 2023, primarily driven by decreases in sales of VC headsets and corded PC headsets.

During fiscal year 2025, Headsets sales increased 7%, c ompared to 2024, primarily driven by an increase in sales of cordless PC headsets and VC headsets.

Our Other category primarily consists of mobile speakers and PC speakers.

During fiscal year 2024, Other sales decreased 26% compared to 2023 , primarily driven by a decline in sales of mobile speakers.

During fiscal year 2025, Other sales decreased 15% c ompared to 2024 , primarily driven by a decline in sales of mobile speakers.

Gross profit for fiscal years 2025 and 2024 was as follows (Dollars in thousands):

6 unchanged sentences

Gross margin increased by 170 basis points to 43.1% during fiscal year 2025, compared to 41.4% during fiscal year 2024.

The increase in gross margin was primarily due to lower material and logistics costs as well as lower promotional spend, partially offset by unfavorable product mix.

The increase in gross margin was primarily driven by lower product costs, partially offset by higher promotional spending.

Logitech International S.A.

12 unchanged sentences

Impairment of intangible assets — 3,526

% of sales 0.1 % N/A

% of sales — % 0.1 %

Change in fair value of contingent consideration for business acquisition — (250)

% of sales — % N/A

% of sales — % — %

Restructuring charges, net 9,615 3,866

2 unchanged sentences

% of sales 28.7 % 27.7 %

The decrease in total operating expenses during fiscal year 2024, compared to fiscal year 2023, was primarily due to decreases in marketing and selling expenses and restructuring charges, net, partially offset by an increase in general and administrative expenses.

The increase in total operating expenses during fiscal year 2025, compared to fiscal year 2024, was primarily due to increases in marketing and selling expenses.

Marketing and Selling

Marketing and selling expenses consist of personnel and related overhead costs, corporate and product marketing, promotions, advertising, trade shows, technical support for customer experiences and facilities costs.

During fiscal year 2024, marketing and selling expenses decreased $78.9 million, compared to fiscal year 2023, primarily driven by our reduction in third-party marketing spend.

During fiscal year 2025, marketing and selling expenses increased $84.1 million, compared to fiscal year 2024, primarily driven by increased investment in marketing and advertising, a provision for credit loss on accounts receivable recorded in fiscal year 2025, and higher performance-based compensation expense.

Research and Development

Research and development expenses consist of personnel and related overhead costs for contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products.

During fiscal year 2024, research and development expense s increased $6.4 million, compared to fiscal year 2023, primarily driven by higher performance-based compensation expense.

Research and development expenses as a percentage of sales increased from 6.2% in fiscal year 2023 to 6.7% in fiscal year 2024 reflecting our continued investment in innovation.

During fiscal year 2025, research and development expense s increased $21.8 million, compared to fiscal year 2024, primarily driven by increased investment in product innovation and higher personnel-related costs driven by increased headcount as well as higher performance-based compensation expense.

General and Administrative

General and administrative expenses primarily consist of personnel and related overhead, information technology, and facilities costs for the infrastructure functions such as finance, information systems, executives, human resources and legal.

During fiscal year 2024, general and administrative expenses increased $30.4 million , compared to fiscal year 2023, primarily driven by higher performance-based compensation expense .

During fiscal year 2025, general and administrative expenses increased $9.0 million , compared to fiscal year 2024, primarily driven by higher personnel-related costs to support business growth .

Logitech International S.A.

3 unchanged sentences

Acquisition-related costs include legal expenses, due diligence costs, and other professional costs incurred for business acquisitions.

During fiscal year 2024, amortization of intangible assets and acquisition-related costs decreased $0.9 million, compared to fiscal year 2023, primarily due to certain acquired intangible assets becoming fully amortized.

During fiscal year 2025, amortization of intangible assets and acquisition-related cos ts remained flat, compared to fiscal year 2024 .

Impairment of Intangible Assets

1 unchanged sentence

Restructuring Charges, Net

During the second quarter of fiscal year 2023, we initiated a restructuring plan to realign our business group and engineering structure with our go-to-market strategy to more effectively compete within the enterprise market and to better serve end-users.

During the fourth quarter of fiscal year 2023, we undertook further actions to remove organization layers as well as streamline our marketing organization to increase efficiency.

As a result, we recorded pre-tax restructuring charges totaling $3.9 million and $34.6 million during fiscal years 2024 and 2023, respectively, primarily related to employee severance and other termination benefits.

These restructuring activities were substantially completed during fiscal year 2024 .

The restructuring charges, net, for the fiscal year 2025 were related to costs incurred as a result of our restructuring plan initiated during the fourth quarter of fiscal year 2025.

The restructuring charges, net, for the fiscal year 2024 were related to costs incurred as a result of our restructuring plan initiated during fiscal year 2023 and substantially completed during fiscal year 2024.

See Note 16 to our consolidated financial statements for additional information.

5 unchanged sentences

We invest in highly liquid instruments with an original maturity of three months or less at the date of purchase, which are classified as cash equivalents.

The increase in interest income for fiscal year 2024, compared to fiscal year 2023 , was primarily driven by an increase in interest rates and increased cash equivalents balance.

The increase in interest income for fiscal year 2025, compared to fiscal year 2024 , was primarily driven by an increase in the average cash equivalents balance.

Other Income (Expense), Net

1 unchanged sentence

Years Ended March 31,

Investment gain (loss) related to the deferred compensation plan $ 4,320 $ (1,961)

Investment gain related to the deferred compensation plan

$ 2,131 $ 4,320

Currency exchange loss, net (6,401) (8,770)

3 unchanged sentences

Investment gain (loss) related to the deferred compensation plan for fiscal years 2025 and 2024 represents earnings, gains, and losses on marketable securities related to a deferred compensation plan offered by one of our subsidiaries.

The increase in investment gain for fiscal year 2024, compared to fiscal year 2023, primarily relates to the change in market performance of the underlying securities.

The decrease in investment gain for fiscal year 2025, compared to fiscal year 2024, primarily relates to the change in market performance of the underlying securities.

Currency exchange loss, net, relates to balances denominated in currencies other than the functional currency in our subsidiaries, as well as the sale of currencies, and gains or losses recognized on currency exchange forward contracts.

We do not speculate in currency positions, but we are alert to opportunities to maximize currency exchange gains and minimize currency exchange losses.

The loss for fiscal year 2025 was related to the exchange rate fluctuations of the Chinese Renminbi and Mexican Peso versus the U.S.

The loss for fiscal year 2024 was related to the exchange rate fluctuations of the Chinese Renminbi, Australian Dollar, Brazilian Real, and Japanese Yen versus the U.S.

Loss on investments, net, includes unrealized gain (loss) from the change in fair value of investments, income (loss) on equity-method investments and impairment of investments during the periods presented, as applicable.

Logitech International S.A.

| Fiscal 2025 Form 10-K | 47

The loss for fiscal year 2023 was primarily related to the weakening of the Brazilian Real and Australian Dollar against U.S.

Loss on investments, net, includes unrealized gain (loss) from the change in fair value of investments, gain (loss) on equity-method investments and impairment of investments during the periods presented, as applicable.

The loss on investments, net, for fiscal year 2024 was primarily due to an impairment loss, as a result of the write-off of a note receivable which has been deemed no longer recoverable.

The loss on investments, net, for fiscal year 2025 was not material.

The loss on investments, net, for fiscal year 2024 was primarily due to an impairment loss, as a result of the write-off of a note receivable which was deemed no longer recoverable.

This note receivable was previously obtained in conjunction with an exchange transaction related to our investment in a privately held company.

The loss on investments, net for fiscal year 2023 was primarily due to the impairment charge related to one of our equity method investments, partially offset by the unrealized gain related to one of our equity investments without readily determinable fair value resulting from observable price changes.

See Note 9 to our consolidated financial statements for additional information.

Non-service cost net pension income and oth er decreased in fiscal year 2024 , compared to fiscal year 2023 , primarily due to the curtailment gain recognized in fiscal year 2023 for one of our defined benefit plans as a result of the restructuring actions undertaken by the Company (see Notes 5 and 16 to our consolidated financial statements).

Provision for Income Taxes

3 unchanged sentences

Effective income tax rate 10.7 % 1.5 %

The change in the effective income tax rate between fiscal years 2024 and 2023 was primarily due to the mix of income and losses in the various tax jurisdictions in which we operate as well as the favorable tax impacts from share-based compensation, an agreement to remeasure the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing (“TRAF”) with the canton of Vaud, remeasurement of our Swiss deferred tax assets due to a change in tax rate, a Swiss Tax Ruling that provides future tax benefits as discussed below, and Foreign-Derived Intangible Income ("FDII") incentive in the U.S.

The change in the effective income tax rate between fiscal years 2025 and 2024 was primarily due to the tax effect of audit resolutions and the expiration of statutes of limitation of uncertain tax positions in fiscal year 2025 compared with the discrete tax benefits recognized in fiscal year 2024 for the benefit of future Swiss tax deductions, the remeasurement of the tax basis of goodwill under TRAF, FDII incentive provided by the Tax Cuts and Jobs Act and remeasurement of our Swiss deferred tax assets due to a change in tax rate.

On March 28, 2024, the Swiss canton of Vaud confirmed a future tax benefit to be recognized for ten years.

This resulted in the Company recording an income tax benefit of $50.1 million during the fiscal year ended March 31, 2024, which will be utilized over a ten-year period.

The canton of Vaud completed the legislative process to enact TRAF, a reform to better align the Swiss tax system to international tax standards, on March 10, 2020, that took effect as of January 1, 2020.

In March 2020, we reached an agreement with the Vaud Tax Administration that would allow for an increase in the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.

During the fiscal year ended March 31, 2024, we reached an agreement to remeasure the tax basis of goodwill under TRAF with the canton of Vaud, which resulted in an income tax benefit of $25.1 million, net of assessment for uncertain tax positions.

In March 2020, we increased the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.

During the fiscal year ended March 31, 2024, we remeasured the tax basis of goodwill under TRAF, which resulted in an income tax benefit of $25.1 million, net of assessment for uncertain tax positions.

The remeasurement of the step-up will be amortized over the remaining ten-year amortization period.

On December 29, 2023, a change to the cantonal tax legislation was published.

According to the law approved by the Vaud parliament, a progressive scale will be applicable for cantonal tax purposes resulting in an increase from the current tax rate of 13.61% to 14.28% effective fiscal year 2025.

The increase in tax rate resulted in a tax benefit of $5.1 million due to a remeasurement of our Swiss deferred tax assets in the fiscal year ended March 31, 2024.

On March 28, 2024, we executed a Swiss Tax Ruling with the canton of Vaud that provides future tax benefit for ten years.

The Swiss Tax Ruling resulted in an income tax benefit of $50.1 million, which will be utilized over a ten-year period.

The Tax Cuts and Jobs Act enacted Section 250, which provides for a deduction with respect to Global Intangible Low-Taxed Income ("GILTI") and FDII in the US.

The application of this tax incentive is inherently complex.

During the fiscal year ended March 31, 2024, we analyzed the applicability of FDII and determined that this tax incentive applies in fiscal 2021 to 2023 tax years.

During the fiscal year ended March 31, 2024, we analyzed the applicability of FDII and determined that this tax incentive applies to fiscal years 2021, 2022 and 2023.

As a result, we realized a tax benefit of $18.7 million related to FDII.

We have also concluded that any GILTI tax since the enactment of Tax Cuts and Jobs Act is immaterial.

The BEPS Project undertaken by the OECD recommended changes to numerous long-standing tax principles, including a proposal to reallocate profits among tax jurisdictions in which companies do business (“Pillar One”) and

Logitech International S.A.

| Fiscal 2024 Form 10-K | 48

establishing a minimum tax on global income (“Pillar Two”).

Some jurisdictions where we operate are implementing Pillar Two laws to effectuate a 15% minimum tax, which will be effective for the Company starting fiscal year 2025.

More specifically, the Federal Council enacted the relevant ordinance for implementing a (Qualified) Domestic Minimum Tax (QDMTT) in Switzerland for tax years beginning from January 1, 2024.

As many countries have proposed or enacted Pillar Two legislation in jurisdictions in which we operate, we continue to monitor the relevant developments.

On December 29, 2023, a change to the cantonal tax legislation was published.

According to the law approved by the Vaud parliament, a progressive scale will be applicable for cantonal tax purposes resulting in an increase from the then current tax rate of 13.61% to 14.28% effective fiscal year 2025.

The increase in tax rate resulted in a tax benefit of $5.1 million due to a remeasurement of our Swiss deferred tax assets in the fiscal year ended March 31, 2024.

The Base Erosion and Profit Shifting Project (the “BEPS Project”) undertaken by the Organization for Economic Co-operation and Development (the “OECD”) recommended changes to numerous long-standing tax principles, including a proposal to reallocate profits among tax jurisdictions in which companies do business (“Pillar One”) and establishing a minimum tax on global income (“Pillar Two”).

Some jurisdictions, including Switzerland, where we operate have implemented Pillar Two laws to effectuate a 15% minimum tax.

The minimum tax, effective beginning in fiscal year 2025 for the Company, is treated as a current cost and does not have an impact on the Company's effective tax rate.

The OECD and participating countries continue to issue underlying rules and administrative guidance related to Pillar Two, and we continue to monitor the relevant developments.

As of March 31, 2025 and 2024, the total amount of unrecognized tax benefits due to uncertain tax positions was $152.0 million and $192.7 million, respectively, all of which would affect the effective income tax rate if recognized.

As of March 31, 2025 and 2024, we had $88.5 million and $112.6 million, respectively, in non-current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions.

As of March 31, 2024 and 2023, we had $7.8 million and $6.1 million, respectively, of accrued interest and penalties related to uncertain tax positions.

Logitech International S.A.

| Fiscal 2025 Form 10-K | 48

March 31, 2025 and 2024, we had $7.2 million and $7.8 million, respectively, of accrued interest and penalties related to uncertain tax positions.

We file Swiss and foreign tax returns.

3 unchanged sentences

We are under examination in foreign tax jurisdictions.

If the examinations are resolved unfavorably, there is a possibility that they may have a material negative impact on our results of operations.

If the examinations are resolved unfavorably, there is a possibility that they may have a negative impact on our results of operations.

Liquidity and Capital Resources

2 unchanged sentences

Our cash and cash equivalents consist of bank demand deposits, short-term time deposits, and U.S.

Treasury securities, of w hich 71% was held in Switzerland and 11% was held in China (including Hong Kong).

Treasury securities, of w hich 53% was held in Switzerland and 27% was held in the United States.

We do not expect to incur any material adverse tax impact except for what has already been recognized, or to be significantly inhibited by any country in which we do business, from the repatriation of funds to Switzerland, our country of domicile .

As of Ma rch 31, 2025, our working capital was $1,491.6 million, compared to $1,545.5 million as of March 31, 2024.

The decrease was primarily driven by decreases in inventories and accounts receivable, net, and an increase in accounts payable, partially offset by an increase in cash and cash equivalents.

We had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $172.5 million as of March 31, 2024.

There are no financial covenants under the lines of credit with which we must comply.

There was no borrowing outstanding under the lines of credit as of March 31, 2024 .

The decrease was primarily driven by a decrease in accounts receivable, net, and an increase in accrued and other liabilities, partially offset by an increase in inventories.

On January 27, 2025, we entered into an unsecured revolving credit facility with a syndicate of banks ("the Credit Agreement").

The Credit Agreement provides a revolving line of credit of up to $750.0 million including the issuance of letters of credit of up to $100.0 million.

The Credit Agreement terminates on January 27, 2030 unless extended in accordance with its terms.

The Credit Agreement contains (1) an increase option allowing us to secure up to $250.0 million of additional commitments and (2) an extension option to extend the term by one-year which may be exercised no more than two times, subject to certain requirements.

Loans under the Credit Agreement are available in U.S.

Dollars, Euro, Sterling, Yen, Swiss Francs, Canadian Dollars, Australian Dollars and any other currency agreed to by each lender.

Proceeds of loans made under the Credit Agreement may be used for general corporate purposes.

The Credit Agreement contains a maximum net debt to adjusted EBITDA ratio, compliance with which is a condition to our ability to borrow.

Borrowings under the Credit Agreement will bear interest at a rate determined by reference to benchmark rates plus an applicable spread (ranging from 0% to 1.5%) based on our net leverage ratio or credit rating at the time of the borrowing.

Undrawn balances available under the Credit Agreement are subject to commitment fees at the applicable rate determined by reference to our net leverage ratio or credit rating.

There has been no borrowing outstanding under the Credit Agreement as of March 31, 2025.

In addition, we had several uncommitted, unsecured bank lines of credit and letters of credit aggregating to $172.2 million as of March 31, 2025.

There are no financial covenants under these lines of credit with which we must comply.

There was no borrowing outstanding under these lines of credit as of March 31, 2025 .

As of March 31, 2025, we had outstanding bank guarantees of $12.1 million .

12 unchanged sentences

DSO as of March 31, 2025 decreased by 8 days to 40 days, compared to 48 days as of March 31, 2024, primarily due to the timing of sales within the fourth quarter of the fiscal years 2025 and 2024.

DPO as of March 31, 2024 increased by 11 days to 70 days, compared to 59 days as of March 31, 2023, primarily due to an increase in inventory purchases to replenish certain products during the fourth quarter of fiscal year 2024 as well as softened demand .

ITO as of March 31, 2024 increased by 1.8 to 5.4, compared to 3.6 as of March 31, 2023, primarily due to lower inventory balance as of March 31, 2024 resulting from focused inventory management to align with softened demand.

DPO as of March 31, 2025 decreased by 5 days to 65 days, compared to 70 days as of March 31, 2024, primarily due to timing of inventory purchases.

ITO as of March 31, 2025 decreased by 0.8 to 4.6, compared to 5.4 as of March 31, 2024, primarily due to a pre-build of inventory in advance of the effective date for incremental tariffs.

If we are not successful in launching and phasing in our new products, or market competition increases, or we are not able to sell the new products at the prices planned, it could have a material impact on our sales, gross profit, operating results including operating cash flow, and inventory turnover in the future.

5 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents (5,566)

Net increase in cash and cash equivalents

For fiscal year 2024, net cash provided by operating activities was $1,145.1 million resulting from net income of $612.1 million, a favorable impact from adding back non-cash adjustments totaling $143.5 million, and a favorable net change in operating assets and liabilities of $389.4 million.

Non-cash adjustments were primarily related to depreciation and amortization, share-based compensation expense , and deferred income taxes.

The decrease in accounts receivable, net, was primarily driven by the timing of sales within the fourth quarter of fiscal years 2024 and 2023.

The decrease in inventories was primarily driven by our effort to manage inventory level to align with softened demand.

The increase in accounts payable was primarily driven by an increase in inventory purchases to replenish certain products during the fourth quarter of fiscal year 2024 .

Net decrease in cash and cash equivalents

For fiscal year 2025, net cash provided by operating activities was $842.6 million resulting from net income of $631.5 million, a favorable impact from adding back non-cash adjustments totaling $228.4 million, and an unfavorable net change in operating assets and liabilities of $17.3 million.

Non-cash adjustments were primarily related to share-based compensation expense , depreciation and amortization, and deferred income taxes.

The increase in inventories was primarily due to higher inventory purchases to align with demand.

The decrease in accounts receivable, net, was primarily driven by the timing of sales within the quarter.

The decrease in accounts payable was primarily driven by the timing of inventory purchases.

The increase in accrued and other liabilities was primarily driven by higher income tax payable and higher performance-based compensation accrual due to strong business performance as well as higher deferred revenue due to an increase in services bookings.

For fiscal year 2025, net cash used in investing activities was $57.3 million, primarily due to $56.1 million purchases of property, plant, and equipment .

Our expenditures for property, plant and equipment during fiscal year 2024 were primarily for building improvements, tooling and equipment, and computer hardware and software.

Our expenditures for property, plant and equipment during fiscal year 2025 were primarily for tooling and equipment, and computer hardware and software .

For fiscal year 2025, net cash used in financing activities was $797.4 million , primarily resulting from repurchases of our registered shares of $588.8 million , payments of cash dividends of $207.9 million , and tax

Logitech International S.A.

| Fiscal 2025 Form 10-K | 50

For fiscal year 2024, net cash used in financing activities was $690.2 million , primarily resulting from repurchases of our registered shares of $504.2 million , payments of cash dividends of $182.3 million , and tax withholdings related to net share settlements of restricted stock units of $29.7 million , partially offset by proceeds from exercise of stock options and purchase rights of $32.2 million .

During fiscal year 2024 , there was a $12.8 million loss from currency exchange rate effect on cash and cash equivalents, primarily due to exchange rate fluctuations of Euro, Chinese Renminbi, Australian Dollar and Swiss Franc versus the U.S.

Dollar and timing of our cash transactions over the period.

withholdings related to net share settlements of restricted stock units of $32.5 million , partially offset by proceeds from exercise of stock options and purchase rights of $36.4 million .

During fiscal year 2025 , the effect of exchange rate changes on cash and cash equivalents was not material.

Our principal sources of liquidity are our cash and cash equivalents, cash flow generated from operations and, to a much lesser extent, capital markets and borrowings.

Our future working capital requirements and capital expenditures may increase to support investments in product innovations and growth opportunities or to acquire or invest in complementary businesses, products, services, and technologies.

Market volatility driven by the current macroeconomic and geopolitical environment may increase our costs of capital and otherwise adversely affect our business, results of operations, financial condition and liquidity.

Our principal uses of cash, aside from operational needs and capital expenditures, include outlays for dividends and share repurchases reflecting our commitment to return value to our shareholders.

In May 2025, the B oard of Directors recommended that we pay cash dividends for fiscal year 2025 of CHF 1.26 per share (approximately $1.43 per share based on the exchange rate on March 31, 2025).

4 unchanged sentences

Dollar amount of $182.3 million based on the exchange rate on the date of payment ) out of fiscal year 2023 retained earnings.

In fiscal year 2022, we paid a cash dividend of CHF 0.87 per share, or CHF 147.0 million (U.S.

Dollar amount of $159.4 million ) out of fiscal year 2021 retained earnings.

In May 2020, our Board of Directors approved the 2020 share repurchase program, which authorized us to invest up to $250.0 million to purchase our own shares to support equity incentive plans or potential acquisitions.

In April 2021, our Board of Directors approved an increase of $750.0 million to the 2020 share repurchase program, to an aggregate amount of $1.0 billion.

The Swiss Takeover Board approved this increase and it became effective on May 21, 2021.

In July 2022, our Board of Directors approved an increase of $500 million to the 2020 share repurchase program, to an aggregate amount of up to $1.5 billion.

The Swiss Takeover Board approved this increase and it became effective on August 19, 2022.

The 2020 share repurchase program expired on July 27, 2023.

We repurchased 16.7 million shares for an aggregate cost of $1.2 billion under the 2020 share repurchase program, of which 2.6 million shares for an aggregate cost of $159.1 million were repurchased during fiscal year 2024 prior to the expiration of the program.

In June 2023, our Board of Directors approved a new, three-year share repurchase program, which allows us to use up to $1.0 billion to repurchase our shares.

In June 2023, our Board of Directors approved a three-year share repurchase program, which allows us to use up to $1.0 billion to repurchase our shares.

The 2023 share repurchase program enables us to repurchase shares for cancellation, as well as to support equity incentive plans or potential acquisitions.

The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023.

During the fiscal year ended March 31, 2024, we repurchased 4.5 million shares for an aggregate cost of $364.7 million, under the 2023 share repurchase program, of which $19.5 million of the aggregate cost was not paid yet as of March 31, 2024.

4.1 million shares for an aggregate cost of $332.1 million were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans.

During the fiscal year ended March 31, 2025, we repurchased 6.7 million shares for an aggregate cost of $588.0 million, under the 2023 share repurchase program for cancellation, of which $18.7 million of the aggregate cost was not paid yet as of March 31, 2025.

As of March 31, 2025, $48.3 million was available for repurchase under the 2023 share repurchase program.

In March 2025, our Board of Directors approved an increase of $600.0 million to the 2023 share repurchase program, to an aggregate amount of $1.6 billion.

The Swiss Takeover Board approved this increase in April 2025 and it became effective on April 2, 2025.

We plan to target share repurchases of $2 billion over the next three years, subject to market conditions and regulatory approvals.

Swiss law limits a company’s ability to hold or repurchase its own shares.

The aggregate par value of all shares held in treasury by us and our subsidiaries may not exceed 10% of our share capital, which corresponds to approximately 17.3 million registered shares.

This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors' authority under the capital band set forth in the Company's Articles of Incorporation to cancel shares up to a limit of 10% of our current share capital.

As of March 31 2024 , we had a total of 19.2 million shares held in treasury stock, which includes 4.1 million shares that have been repurchased for cancellation.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 51

The aggregate par value of all shares held in treasury by us and our subsidiaries may not exceed 10% of our issued share capital, which corresponds to approximately 16.9 million registered shares as of March 31, 2025.

This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors' authority under the capital band set forth in the Company's Articles of Incorporation.

As of March 31 2025 , we had a total of 20.5 million shares held in treasury stock, which includes 6.7 million shares that have been repurchased for cancellation and 13.8 million shares that have been purchased to support equity incentive plans or potential acquisitions.

Although we enter into trading plans for systematic repurchases (e.g., 10b5-1 trading plans) from time to time, our 2023 share repurchase program provides us with the opportunity to make opportunistic repurchases during periods of favorable market conditions and is expected to remain in effect for a period of three years through July 27, 2026.

4 unchanged sentences

If we do not generate sufficient operating cash flows to support our operations and future planned cash requirements, our operations could be harmed and our access to credit facilities could be restricted or eliminated.

However, we believe that the trend of our historical cash flow generation, our projections of future operations and our available cash balances will provide sufficient liquidity to fund our operations for at least the next 12 months.

Although we believe that the trend of our historical cash flow generation, our projections of future operations and our available cash balances will provide sufficient liquidity to fund our operations for at least the next 12 months, m arket volatility driven

Logitech International S.A.

| Fiscal 2025 Form 10-K | 51

by the current macroeconomic and geopolitical environment may increase our costs of capital and otherwise adversely affect our business, results of operations, financial condition and liquidity.

Our other contractual obligations and commitments that require cash are described in the following sections.

7 unchanged sentences

Although open purchase commitments are considered enforceable and legally binding, the terms generally allow us to reschedule or adjust our requirements based on business needs prior to delivery of goods or performance of services.

Operating Leases Obligation

Operating Leases Obligations

We lease facilities under operating leases, certain of which require us to pay property taxes, insurance and maintenance costs.

12 unchanged sentences

Certain costs incurred for providing such indemnification may be recoverable under various insurance policies.

We are unable to reasonably estimate the maximum amount that could be payable under these arrangements because these

Logitech International S.A.

| Fiscal 2024 Form 10-K | 52

exposures are not capped, the obligations are conditional in nature, and the facts and circumstances involved in any situation that might arise are variable.

We are unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not capped, the obligations are conditional in nature, and the facts and circumstances involved in any situation that might arise are variable.

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-K

Item 7. Management’s Discussion and Analysis