LOGITECH INTERNATIONAL S.A. 10-Q

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) LOGITECH INTERNATIONAL S.A. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) Three Months Ended June 30, 2026 2025 Net sales $ 1,227,234 $ 1,147,703 Cost of goods sold 618,599 666,592 Amortization of intangible assets 695 2,149 Gross profit 607,940 478,962 Operating expenses: Marketing and selling 219,745 195,796 Research and development 84,623 74,587 General and administrative 43,525 41,797 Amortization of intangible assets and acquisition-related costs 926 2,646 Restructuring charges, net 570 2,042 Total operating expenses 349,389 316,868 Operating income 258,551 162,094 Interest income 14,099 11,229 Other income (expense), net 2,930 1,162 Income before income taxes 275,580 174,485 Provision for income taxes 39,883 28,470 Net income $ 235,697 $ 146,015 Net income per share: Basic $ 1.64 $ 0.99 Diluted $ 1.63 $ 0.98 Weighted average shares used to compute net income per share: Basic 143,495 147,864 Diluted 145,038 149,053 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents LOGITECH INTERNATIONAL S.A. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (unaudited) Three Months Ended June 30, 2026 2025 Net income $ 235,697 $ 146,015 Other comprehensive income (loss): Currency translation gain (loss): Currency translation gain (loss) ( 1,739 ) 27,293 Defined benefit plans gain (loss), net of taxes: Reclassification of amortization included in other income (expense), net ( 163 ) ( 157 ) Hedging gain (loss), net of taxes: Deferred hedging gain (loss) 2,129 ( 12,349 ) Reclassification of hedging loss included in cost of goods sold 1,348 2,002 Total other comprehensive income (loss), net of taxes 1,575 16,789 Total comprehensive income $ 237,272 $ 162,804 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents LOGITECH INTERNATIONAL S.A. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited) June 30, 2026 March 31, 2026 Assets Current assets: Cash and cash equivalents $ 1,749,679 $ 1,741,546 Accounts receivable, net 668,497 505,867 Inventories 491,743 489,948 Other current assets 211,324 177,895 Total current assets 3,121,243 2,915,256 Non-current assets: Property, plant and equipment, net 113,021 116,454 Goodwill 464,959 465,417 Other intangible assets, net 10,752 12,386 Other assets 324,090 339,075 Total assets $ 4,034,065 $ 3,848,588 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 585,798 $ 530,983 Accrued and other current liabilities 764,666 781,990 Total current liabilities 1,350,464 1,312,973 Non-current liabilities: Income taxes payable 92,547 86,322 Other non-current liabilities 239,309 237,899 Total liabilities 1,682,320 1,637,194 Commitments and contingencies (Note 10) Shareholders’ equity: Registered shares, CHF 0.25 par value Issued shares: 160,784 at June 30, 2026 and March 31, 2026 28,001 28,001 Additional paid-in capital 66,528 123,386 Shares in treasury, at cost Treasury shares: 17,218 and 17,282 at June 30, 2026 and March 31, 2026, respectively ( 1,226,865 ) ( 1,207,454 ) Retained earnings 3,596,323 3,381,278 Accumulated other comprehensive loss ( 112,242 ) ( 113,817 ) Total shareholders’ equity 2,351,745 2,211,394 Total liabilities and shareholders’ equity $ 4,034,065 $ 3,848,588 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents LOGITECH INTERNATIONAL S.A. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Three Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 235,697 $ 146,015 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 17,360 15,064 Amortization of intangible assets 1,621 4,795 (Gain) loss on investments ( 557 ) 393 Share-based compensation expense 29,632 32,828 Deferred income taxes 13,872 12,113 Other ( 2 ) ( 25 ) Changes in assets and liabilities: Accounts receivable, net ( 162,667 ) ( 166,767 ) Inventories ( 707 ) 17,304 Other assets ( 29,789 ) ( 19,817 ) Accounts payable 56,210 135,003 Accrued and other liabilities 6,038 ( 51,861 ) Net cash provided by operating activities 166,708 125,045 Cash flows from investing activities: Purchases of property, plant and equipment ( 16,798 ) ( 16,276 ) Purchases of deferred compensation investments ( 4,721 ) ( 3,261 ) Proceeds from sales of deferred compensation investments 4,586 1,738 Other investing activities ( 214 ) ( 301 ) Net cash used in investing activities ( 17,147 ) ( 18,100 ) Cash flows from financing activities: Purchases of registered shares ( 113,616 ) ( 121,657 ) Proceeds from exercises of stock options and purchase rights 8,607 3,262 Tax withholdings related to net share settlements of restricted stock units ( 35,644 ) ( 16,038 ) Net cash used in financing activities ( 140,653 ) ( 134,433 ) Effect of exchange rate changes on cash and cash equivalents ( 775 ) 12,105 Net increase (decrease) in cash and cash equivalents 8,133 ( 15,383 ) Cash and cash equivalents, beginning of the period 1,741,546 1,503,205 Cash and cash equivalents, end of the period $ 1,749,679 $ 1,487,822 Supplementary Cash Flow Disclosures: Non-cash investing and financing activities: Property, plant and equipment purchased during the period and included in period end liability accounts $ 10,790 $ 8,565 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,023 $ 1,221 Supplemental cash flow information: Income taxes paid, net $ 7,952 $ 28,772 The accompanying notes are an integral part of these condensed consolidated financial statements. 6 Table of Contents LOGITECH INTERNATIONAL S.A. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (In thousands, except per share amounts) (unaudited) Three Months Ended June 30, 2026 Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity Registered Shares Treasury Shares Retained Earnings Shares Amount Shares Amount March 31, 2026 160,784 $ 28,001 $ 123,386 17,282 $ ( 1,207,454 ) $ 3,381,278 $ ( 113,817 ) $ 2,211,394 Total comprehensive income — — — — — 235,697 1,575 237,272 Purchases of registered shares — — — 926 ( 100,775 ) — — ( 100,775 ) Sales of shares upon exercise of stock options and purchase rights — — ( 1,320 ) ( 164 ) 13,563 ( 3,636 ) — 8,607 Issuance of shares upon vesting of restricted stock units — — ( 86,429 ) ( 826 ) 67,801 ( 17,016 ) — ( 35,644 ) Share-based compensation — — 30,891 — — — — 30,891 June 30, 2026 160,784 $ 28,001 $ 66,528 17,218 $ ( 1,226,865 ) $ 3,596,323 $ ( 112,242 ) $ 2,351,745 Three Months Ended June 30, 2025 Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity Registered Shares Treasury Shares Retained Earnings Shares Amount Shares Amount March 31, 2025 168,994 $ 29,432 $ 82,591 20,485 $ ( 1,464,912 ) $ 3,627,261 $ ( 146,952 ) $ 2,127,420 Total comprehensive income — — — — — 146,015 16,789 162,804 Purchases of registered shares — — — 1,531 ( 124,135 ) — — $ ( 124,135 ) Sales of shares upon exercise of stock options and purchase rights — — ( 479 ) ( 41 ) 3,741 — — $ 3,262 Issuance of shares upon vesting of restricted stock units — — ( 51,447 ) ( 532 ) 49,116 ( 13,707 ) — ( 16,038 ) Share-based compensation — — 33,939 — — — — 33,939 June 30, 2025 168,994 $ 29,432 $ 64,604 21,443 $ ( 1,536,190 ) $ 3,759,569 $ ( 130,163 ) $ 2,187,252 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents LOGITECH INTERNATIONAL S.A. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 — The Company and Summary of Significant Accounting Policies and Estimates The Company Logitech International S.A., together with its consolidated subsidiaries ("Logitech" or the "Company"), 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, the Company's mission is to extend human potential in work and play, in a way that is good for people and the planet. The Company sells its products to a broad range of international customers, including direct sales to retailers, e-tailers, businesses large and small and end consumers through the Company's e-commerce platform, and indirect sales to end customers through distributors. Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Hautemorges, Switzerland, and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas; Europe, the Middle East and Africa ("EMEA"); and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI. Basis of Presentation The condensed consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2026, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 21, 2026. In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2027, or any future periods. Changes in Significant Accounting Policies There have bee n no material changes in the Company’s significant accounting policies during the three months ended June 30, 2026 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates. 8 Table of Contents Risks and Uncertainties Impacts of Macroeconomic, Geopolitical, and Other Factors on the Company's Business As the Company conducts operations globally, its business has continued to be impacted by ongoing macroeconomic and geopolitical conditions. These conditions include changes in inflation, interest rate and foreign currency fluctuations, uncertainty in consumer and enterprise demand, tariff and trade policies, component availability, volatile energy prices and geopolitical tensions, including the armed conflicts in the Middle East. In 2025, the United States introduced trade policy actions that increased import tariffs across a wide range of countries at various rates, with certain exemptions. On February 20, 2026, the U.S. Supreme Court invalidated certain import tariffs enacted in 2025 under the International Emergency Economic Powers Act ("IEEPA"). In May 2026, the U.S. Customs and Border Protection ("CBP") began issuing refunds to companies that had applied for IEEPA tariff refunds. The Company received a full refund of $ 61 million for these tariffs invalidated by the Supreme Court, including $ 15 million during the first quarter of fiscal year 2027 and $ 46 million subsequent to quarter end. The $ 61 million refund was recorded as a reduction of costs of goods sold in the Company's condensed consolidated statements of operations in the first quarter of fiscal year 2027. As of the end of the first quarter of fiscal year 2027, the $ 46 million refund approved by CBP, but not yet received, was recorded as other current assets in the Company’s condensed consolidated balance sheet. The Company recognizes tariff refunds when the gain is realized or realizable. Following the U.S. Supreme Court ruling, the U.S. government introduced temporary tariffs for a 150-day period beginning February 24, 2026, which were subsequently invalidated by the U.S. Court of International Trade, but remained in effect pending appeal. In July 2026, the U.S. government announced new tariffs under Section 301 of U.S. trade laws which became effective on July 24, 2026 when the temporary tariffs expired. U.S. tariff policies and international trade arrangements continue to evolve and have had, and may continue to have, a significant impact on the Company's results of operations. The Company has also been affected by the increases in demand for electronic components, including semiconductor chips, caused by the build out of new AI technologies and data centers, leading to shortages and rising prices for such components utilized in some of the Company's products. In addition, in late June 2026, one of the Company's semiconductor component suppliers experienced a serious incident at its manufacturing facilities, resulting in its temporary closure. The Company currently expects this facility closure will impact its ability to effectively meet demand for certain products in the second and third quarters of fiscal year 2027. The global and regional macroeconomic, political, and other conditions have caused and may continue to cause volatility in demand for the Company's products, component availability, transit times and cost of the Company's products including cost of tariffs, materials, and logistics, and as a result, have impacted and may continue to impact the pricing of the Company's products, product availability and the Company's results of operations. Recent Accounting Pronouncements Adopted In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . ASU 2025-05 provides a practical expedient that permits entities to assume that current conditions as of the balance sheet date will remain unchanged over the remaining life of current accounts receivable and current contract assets when estimating the expected credit losses. The Company adopted ASU 2025-05 in the first quarter of fiscal year 2027 and the adoption did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 requires all public entities to disclose in the notes to the financial statements the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption of the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be applied either 9 Table of Contents prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . ASU 2025-06 updates the cost capitalization threshold for internal-use software development costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. ASU 2025-06 can be applied on a prospective basis, with retrospective or modified retrospective application permitted. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements and related disclosures. Note 2 — Net Income Per Share The following table summarizes the computations of basic and diluted net income per share for the three months ended June 30, 2026 and 2025 (in thousands, except per share amounts): Three Months Ended June 30, 2026 2025 Net income $ 235,697 $ 146,015 Shares used in net income per share computation: Weighted average shares outstanding - basic 143,495 147,864 Effect of potentially dilutive equivalent shares 1,543 1,189 Weighted average shares outstanding - diluted 145,038 149,053 Net income per share: Basic $ 1.64 $ 0.99 Diluted $ 1.63 $ 0.98 Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans totaling 0.8 million and 1.6 million for the three months ended June 30, 2026 and 2025, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. A small number of performance-based restricted stock units were not included in the diluted net income per share calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period. Note 3 — Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of June 30, 2026, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated, the 1996 Employee Share Purchase Plan (U.S.), as amended and restated, and the 2006 Stock Incentive Plan, as amended and restated. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock. 10 Table of Contents The following table summarizes share-based compensation expense and total income tax benefit recognized for the three months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, 2026 2025 Cost of goods sold $ 2,182 $ 2,380 Marketing and selling 11,821 13,930 Research and development 6,597 6,351 General and administrative 9,032 10,167 Total share-based compensation expense 29,632 32,828 Income tax benefit ( 8,843 ) ( 4,906 ) Total share-based compensation expense, net of income tax benefit $ 20,789 $ 27,922 The income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period. Share-based compensation costs capitalized as part of inventory were $ 3.1 million and $ 2.8 million for the three months ended June 30, 2026 and 2025, respectively. Defined Benefit Plans Certain subsidiaries of the Company sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The costs of $ 1.5 million and $ 1.7 million recorded for the three months ended June 30, 2026 and 2025, respectively, were primarily related to service costs. Note 4 — Income Taxes The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for income taxes is generated outside of Switzerland. The income tax provision for the three months ended June 30, 2026 was $ 39.9 million, based on an effective income tax rate of 14.5 % of pre-tax income. The income tax provision for the same period ended June 30, 2025 was $ 28.5 million based on an effective income tax rate of 16.3 % of pre-tax income. The change in the effective income tax rate for the three months ended June 30, 2026, compared with the same period ended June 30, 2025, was primarily due to the change in the mix of income and losses in the various tax jurisdictions in which the Company operates and higher tax benefits from share-based compensation. Following the enactment of the One Big Beautiful Bill Act ("OBBBA") on July 4, 2025, several corporate tax provisions became effective for the Company beginning in fiscal year 2027, including adjustments to domestic R&D expensing, bonus depreciation, and modified international frameworks. Based on the Company's evaluation of these provisions, the final impact of the OBBBA is expected to be de minimis for fiscal year 2027 and will not materially impact the consolidated financial statements or the effective tax rate. For the three months ended June 30, 2026, the Company assessed its exposure to the OECD Pillar Two global minimum tax rules and the newly released OECD Administrative Guidance package. While the package's "Side-by-Side" System—designed to align the U.S. tax framework with Pillar Two—does not apply directly to the Company as a non-U.S. headquartered multinational, the broader guidance introduces a new permanent safe harbor and a one-year extension of the transitional Country-by-Country Reporting ("CbCR") safe harbor. Based on Qualified CbCR data, the Company expects that most jurisdictions in which it operates to continue qualifying for the transitional safe harbor. For the limited jurisdictions that do not qualify, the estimated top-up tax for fiscal year 2027 11 Table of Contents is expected to be de minimis and will not materially impact the consolidated financial statements or the effective tax rate. The Company continues to monitor ongoing legislative developments but does not anticipate a material change to its Pillar Two liability. Note 5 — Balance Sheet Components The following table presents the components of certain balance sheet asset amounts (in thousands): June 30, 2026 March 31, 2026 Accounts receivable, net: Accounts receivable $ 1,008,529 $ 792,466 Allowance for cooperative marketing arrangements ( 59,924 ) ( 49,964 ) Allowance for customer incentive programs ( 89,805 ) ( 73,999 ) Allowance for pricing programs ( 172,875 ) ( 144,800 ) Other allowances ( 17,428 ) ( 17,836 ) $ 668,497 $ 505,867 Inventories: Raw materials $ 59,294 $ 62,484 Finished goods 432,449 427,464 $ 491,743 $ 489,948 Other current assets: Value-added tax ("VAT") receivables $ 39,332 $ 58,600 Prepaid expenses and other assets 171,992 119,295 $ 211,324 $ 177,895 Property, plant and equipment, net: Property, plant and equipment $ 588,900 $ 587,418 Less: accumulated depreciation and amortization ( 475,879 ) ( 470,964 ) $ 113,021 $ 116,454 Other assets: Deferred tax assets $ 176,159 $ 192,083 Right-of-use assets 68,798 71,531 Investments for deferred compensation plan 34,009 30,495 Investments in privately held companies 29,642 28,871 Other assets 15,482 16,095 $ 324,090 $ 339,075 12 Table of Contents The following table presents the components of certain balance sheet liability amounts (in thousands): June 30, 2026 March 31, 2026 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 236,476 $ 211,915 Accrued personnel expenses 144,477 165,404 Income taxes payable 45,991 37,843 Deferred revenue (1) 41,306 38,652 Warranty liabilities 34,958 35,488 VAT payable 27,700 36,292 Accrued sales return liability 27,390 27,635 Operating lease liabilities 16,007 17,044 Accrued loss for inventory purchase commitments 15,667 18,167 Other current liabilities 174,694 193,550 $ 764,666 $ 781,990 Other non-current liabilities: Operating lease liabilities $ 68,381 $ 71,111 Employee benefit plan obligations 59,862 61,066 Deferred revenue (1) 55,725 53,624 Obligation for deferred compensation plan 34,009 30,495 Warranty liabilities 14,321 14,754 Other non-current liabilities 7,011 6,849 $ 239,309 $ 237,899 (1) Includes deferred revenue for post-contract customer support and other services. Note 6 — Fair Value Measurements Fair Value Measurements The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. 13 Table of Contents The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): June 30, 2026 March 31, 2026 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 892,792 $ — $ — $ 863,120 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 332 $ — $ — $ 60 $ — $ — Common stock 1,071 — — 902 — — Money market funds 8,089 — — 4,553 — — Mutual funds 24,517 — — 24,980 — — Total investments for deferred compensation plan $ 34,009 $ — $ — $ 30,495 $ — $ — Currency derivative assets $ — $ 7,487 $ — $ — $ 5,486 $ — Liabilities: Currency derivative liabilities $ — $ 31 $ — $ — $ 94 $ — Investments for Deferred Compensation Plan The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 34.0 million and $ 30.5 million, as of June 30, 2026 and March 31, 2026, respectively, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized gains (losses) related to marketable securities for the three months ended June 30, 2026 and 2025 were not material and are included in other income (expense), net and corresponding changes in the deferred compensation liability were included in operating expenses and cost of goods sold, in the Company's condensed consolidated statements of operations. Equity Method Investments The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $ 19.8 million and $ 19.1 million as of June 30, 2026 and March 31, 2026, respectively. Income (loss) related to equity method investments for the three months ended June 30, 2026 and 2025 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations. There was no impairment of equity method investments during the three months ended June 30, 2026 and 2025. Assets Measured at Fair Value on a Nonrecurring Basis Financial Assets The Company has certain equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. The carrying value is also adjusted for observable price changes with the same or similar security from the same issuer. The amount of these equity investments without readily determinable fair value included in other assets was $ 8.8 million as of June 30, 2026 and March 31, 2026. There was no impairment of these equity investments during the three months ended June 30, 2026 and 2025. 14 Table of Contents Non-Financial Assets Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate these non-financial assets for impairment, whether due to certain triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, the non-financial assets are measured at fair value during such period. There was no impairment of non-financial assets during the three months ended June 30, 2026 and 2025. Note 7 — Derivative Financial Instruments Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis. Based on maturity, derivative assets are included in other current assets or other assets and derivative liabilities are included in accrued and other current liabilities or other non-current liabilities on the condensed consolidated balance sheets. See Note 6 for the fair values of the Company’s derivative instruments as of June 30, 2026 and March 31, 2026. Cash Flow Hedges The Company enters into cash flow hedge contracts, including foreign currency forward contracts and foreign currency option contracts, to protect against exchange rate exposure of forecasted inventory purchases. Previously, the hedge contracts covered inventory purchases within four months . Beginning in fiscal year 2026, they cover inventory purchases up to sixteen months , with reduced coverage beyond four months . Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive income (loss) until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. Hedging relationships are discontinued when the hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract. Gains and losses in the fair value of the effective portion of the discontinued hedges continue to be reported in accumulated other comprehensive income (loss) until the hedged inventory purchases are sold, unless it is probable that the forecasted inventory purchases will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter. The notional amounts of foreign currency exchange contracts outstanding related to forecasted inventory purchases were $ 413.9 million and $ 447.9 million as of June 30, 2026 and March 31, 2026, respectively. The Company had $ 5.9 million of net gain related to its cash flow hedges included in accumulated other comprehensive loss as of June 30, 2026, which will be reclassified into earnings within the next twelve months. The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three months ended June 30, 2026 and 2025 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands): Three Months Ended June 30, Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss Amount of Loss Reclassified from Accumulated Other Comprehensive Loss to Cost of Goods Sold 2026 2025 2026 2025 Cash flow hedges $ 2,129 $ ( 12,349 ) $ 1,348 $ 2,002 15 Table of Contents Other Derivatives The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. These contracts generally mature within approximately one month . The primary risk managed by using forward and swap contracts is the currency exchange rate risk. The gains or losses on these contracts are not material and are included in other income (expense), net, in the condensed consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of June 30, 2026 and March 31, 2026 were $ 123.9 million and $ 113.0 million, respectively. The fair value of all foreign currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts are classified as operating activities in the condensed consolidated statements of cash flows. Note 8 — Goodwill and Other Intangible Assets The Company conducts its impairment analysis of goodwill annually at December 31 or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting unit may be less than its carrying amount. There have been no triggering events identified affecting the valuation of goodwill and intangible assets during the three months ended June 30, 2026 and 2025. The following table summarizes the activities in the Company’s goodwill balance (in thousands): As of March 31, 2026 $ 465,417 Effects of foreign currency translation ( 458 ) As of June 30, 2026 $ 464,959 The Company's acquired intangible assets were as follows (in thousands): June 30, 2026 March 31, 2026 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 32,390 $ ( 30,857 ) $ 1,533 $ 32,390 $ ( 30,569 ) $ 1,821 Developed technology 107,550 ( 103,963 ) 3,587 107,550 ( 103,307 ) 4,243 Customer contracts/relationships 69,087 ( 63,648 ) 5,439 69,087 ( 63,021 ) 6,066 Effects of foreign currency translation 1,130 ( 937 ) 193 1,218 ( 962 ) 256 Total $ 210,157 $ ( 199,405 ) $ 10,752 $ 210,245 $ ( 197,859 ) $ 12,386 Note 9 — Financing Arrangements On January 27, 2025, the Company 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 to the Company 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 the Company 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 the Company's 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 the 16 Table of Contents Company's 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 the Company's net leverage ratio or credit rating. There has been no borrowing outstanding under the Credit Agreement as of June 30, 2026. In addition, the Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating to $ 151.2 million and $ 149.0 million as of June 30, 2026 and March 31, 2026, respectively. There are no financial covenants under the lines of credit with which the Company must comply. There was no borrowing outstanding under the lines of credit as of June 30, 2026 or March 31, 2026. As of June 30, 2026 and March 31, 2026, the Company had outstanding bank guarantees of $ 2.0 million and $ 2.1 million, respectively. Note 10 — Commitments and Contingencies Product Warranties Changes in the Company’s warranty liabilities for the three months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, 2026 2025 Beginning of the period $ 50,242 $ 49,184 Provision 8,496 8,622 Settlements ( 9,553 ) ( 8,249 ) Effects of foreign currency translation 94 649 End of the period $ 49,279 $ 50,206 Indemnifications The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances includes indemnification for damages and expenses, including reasonable attorneys’ fees. As of June 30, 2026, no material amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements. The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature, and the facts and circumstances involved in any situation that might arise are variable. Legal Proceedings From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and legal proceedings. The Company intends to vigorously defend against them. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. The Company follows ASC ("Accounting Standards Codification") 450, Contingencies , in determining the accounting and disclosure for these contingencies. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows, and results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity, and other factors. Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company's business. 17 Table of Contents Note 11 — Shareholders’ Equity Share Capital As of June 30, 2026, the Company's nominal share capital is CHF 40.2 million, consisting of 160,784,460 issued shares with a par value of CHF 0.25 each, of which 17,218,209 were held in treasury shares. The capital band under Swiss law allows a company's board of directors to adjust the company's share capital within a predefined range based on a general authority granted by the company's shareholders. At the 2023 Annual General Meeting ("AGM"), the Company's shareholders approved an amendment to the Company’s Articles of Incorporation to introduce a capital band provision authorizing the Board of Directors to adjust the Company's share capital, without additional shareholder approval, within a range of 155,795,958 registered shares to 190,417,282 registered shares for a five-year period ending on September 13, 2028. At the 2025 AGM, the Company's shareholders approved a renewal of the capital band, setting a new range of 144,706,014 registered shares to 176,862,906 registered shares for a five-year period ending on September 9, 2030. The amendment became effective on October 1, 2025. In addition, the Company has reserved conditional capital (1) up to 25,000,000 shares for potential issuance for the exercise of rights granted under the Company's employee equity incentive plans, and (2) up to 25,000,000 shares for issuance to cover any conversion rights under any potential future convertible bond issuance. Share Repurchases 2023 Share Repurchase Program In June 2023, the Company's Board of Directors approved a three-year share repurchase program, which allows the Company to use up to $ 1.0 billion to repurchase its shares. The 2023 share repurchase program enables the Company 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. In March 2025, the Company's 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. The 2023 share repurchase program was completed in May 2026. 2026 Share Repurchase Program In March 2026, the Company's Board of Directors approved a new, three-year share repurchase program to repurchase shares up to an aggregate amount of $ 1.4 billion, or a maximum of 16,078,446 shares. The 2026 share repurchase program enables the Company to repurchase shares for cancellation, as well as to support equity incentive plans or potential acquisitions. The program became effective on May 8, 2026, following approval from the Swiss Takeover Board. As of June 30, 2026 , $ 1.3 billion was available for repurchase under the 2026 share repurchase program. 18 Table of Contents The following table summarizes the Company's share repurchase activities for the three months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, 2026 2025 2023 Share Repurchase Program: Number of shares repurchased (1) — 1,531 Aggregate cost of shares repurchased (2) $ — $ 124,135 2026 Share Repurchase Program: Number of shares repurchased (1) 926 — Aggregate cost of shares repurchased (2) $ 100,775 $ — (1) All shares were repurchased for cancellation. (2) Includes an aggregate cost of $ 28.0 million and $ 21.2 million, respectively, that was not yet paid as of June 30, 2026 and 2025. 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 the Company and its subsidiaries may not exceed 10 % of the share capital of the Company, which for the Company corresponds to approximately 16.1 million registered shares as of June 30, 2026. This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors’ authority under the Company’s capital band set forth in the Company’s Articles of Incorporation. As of June 30, 2026, the Company had a total of 17.2 million shares held in treasury stock, which includes 5.6 million shares that have been repurchased for cancellation and 11.6 million shares that have been purchased to support equity incentive plans or potential acquisitions. To the extent that the shares are repurchased to support equity incentive plans or potential acquisitions, the shares are repurchased on the ordinary trading line of the SIX Swiss Exchange and/or the Nasdaq Global Select Market. Shares repurchased for cancellation purposes are repurchased on a second trading line on the SIX Swiss Exchange. Shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors and the program does not require the purchase of any minimum number of shares. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss were as follows (in thousands): Currency Translation Adjustment Defined Benefit Plans Deferred Hedging Gains Total March 31, 2026 $ ( 94,156 ) $ ( 21,744 ) $ 2,083 $ ( 113,817 ) Other comprehensive income (loss), net of taxes ( 1,739 ) ( 163 ) 3,477 1,575 June 30, 2026 $ ( 95,895 ) $ ( 21,907 ) $ 5,560 $ ( 112,242 ) Note 12 — Segment Information The Company manages its business activities on a consolidated basis and operates as a single operating segment: Peripherals. The operating segment encompasses the design, manufacturing and sales of peripherals for gaming, PCs, tablets, video conferencing, and other digital platforms. The Company's Chief Operating Decision Maker (the “CODM”) is the Chief Executive Officer. The CODM periodically reviews information such as sales and net income to make business decisions and evaluate performance. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Peripherals segment or into other parts of the entity, such as for acquisitions, share repurchase or to pay dividends. The CODM also monitors budget versus actual net income results. 19 Table of Contents The following table presents segment revenue, significant segment expenses, and net income for the periods presented (in thousands): Three Months Ended June 30, 2026 2025 Net sales $ 1,227,234 $ 1,147,703 Less: Significant segment expenses Cost of goods sold (1) 616,417 664,212 Marketing and selling (1) 207,924 181,866 Research and development (1) 78,026 68,236 General and administrative (1) 34,493 31,630 Less: other segment items Share-based compensation expense 29,632 32,828 Amortization of intangible assets and acquisition-related costs 1,621 4,795 Interest income ( 14,099 ) ( 11,229 ) Other (2) ( 2,360 ) 880 Provision for income taxes 39,883 28,470 Net income $ 235,697 $ 146,015 (1) The difference between the amounts included in the table above and the amounts included in the condensed consolidated statements of operations is related to share-based compensation expense (see Note 3). (2) Includes restructuring charges, net, and other income (expense), net. Sales by product category for the three months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, 2026 2025 Gaming (1) $ 354,230 $ 315,875 Keyboards & Combos 227,798 222,492 Pointing Devices 227,312 195,780 Video Collaboration 185,260 166,716 Webcams 76,581 84,374 Tablet Accessories 89,395 91,227 Headsets 44,133 45,523 Other (2) 22,525 25,716 Total Sales $ 1,227,234 $ 1,147,703 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other primarily consists of mobile speakers and PC speakers. Sales by geographic region (based on the customers’ locations) for the three months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, 2026 2025 Americas $ 515,916 $ 461,690 EMEA 343,732 346,840 Asia Pacific 367,586 339,173 Total Sales $ 1,227,234 $ 1,147,703 20 Table of Contents Revenue from sales to customers in the United States, China and Germany each represented 10% or more of the total consolidated sales for each of the three months ended June 30, 2026 and 2025. No other countries represented 10% or more of the Company’s total consolidated sales for the periods presented herein. Switzerland, the Company’s country of domicile, represented 3 % of the Company's total consolidated sales for each of the three months ended June 30, 2026 and 2025. Three customers of the Company each represented 10% or more of the total consolidated gross sales for each of the three months ended June 30, 2026 and 2025. Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): June 30, 2026 March 31, 2026 Americas $ 57,167 $ 59,103 EMEA 46,765 48,119 Asia Pacific 62,260 65,089 Total $ 166,192 $ 172,311 Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China, were $ 55.6 million and $ 45.4 million, respectively, as of June 30, 2026. Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China were $ 57.6 million and $ 48.0 million, respectively, as of March 31, 2026. Property, plant and equipment, net (excluding software) and right-of-use assets in Switzerland, the Company’s country of domicile, were $ 24.3 million and $ 25.0 million as of June 30, 2026 and March 31, 2026, respectively. No other countries represented more than 10% of the Company’s total property, plant and equipment, net (excluding software) and right-of-use assets as of June 30, 2026 or March 31, 2026. 21 Table of Contents