What changed in this filing

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Item 1. Financial Statements

2025-08-04 compared with 2025-05-05 · 253 added, 148 removed, 766 unchanged (34% of the section changed)

40 unchanged sentences

570,142 471,330

Commitments and contingencies

Commitments and contingencies (Note 8)

Stockholders’ equity:

17 unchanged sentences

(In thousands, except per-share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

$ 664,574 $ 507,431 $ 1,302,128 $ 965,316

12 unchanged sentences

Other income, net

12,220 7,512 17,351 17,052

Income before income taxes

13 unchanged sentences

(In thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

$ 133,726 $ 100,366 $ 267,517 $ 192,907

3 unchanged sentences

Change in unrealized gains and losses on available-for-sale securities, net of tax of $ 0 , $ 50 , $ 0 and $( 198 ), respectively

( 1 ) 368 47 703

Other comprehensive income (loss), net of tax

10 unchanged sentences

Stockholders’

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Balance as of April 1, 2025

47,877 $ 764,959 $ 2,545,375 $ ( 43,324 ) $ 3,267,010

- - 133,726 - 133,726

Other comprehensive income

- - - 19,633 19,633

Dividends and dividend equivalents declared ($ 1.56 per share)

- - ( 75,924 ) - ( 75,924 )

Common stock issued

Repurchases of common stock

(4 ) ( 2,484 ) - - ( 2,484 )

Stock-based compensation expense

- 60,107 - - 60,107

Balance as of June 30, 2025

47,892 $ 822,582 $ 2,603,177 $ ( 23,691 ) $ 3,402,068

Common Stock and

Additional Paid-in Capital

Comprehensive

Stockholders’

Three Months Ended June 30, 2024

Balance as of April 1, 2024

48,667 $ 1,176,382 $ 977,724 $ ( 40,549 ) $ 2,113,557

- - 100,366 - 100,366

Other comprehensive loss

- - - ( 3,945 ) ( 3,945 )

Dividends and dividend equivalents declared ($ 1.25 per share)

- - ( 61,882 ) - ( 61,882 )

Common stock issued

Repurchases of common stock

( 6 ) ( 4,550 ) - - ( 4,550 )

Stock-based compensation expense

- 52,312 - - 52,312

Balance as of June 30, 2024

48,698 $ 1,224,144 $ 1,016,208 $ ( 44,494 ) $ 2,195,858

Common Stock and

Additional Paid-in Capital

Comprehensive

Stockholders’

Six Months Ended June 30, 2025

Balance as of January 1, 2025

7 unchanged sentences

73 5,335 - - 5,335

Repurchases of common stock

(4 ) ( 2,484 ) - - ( 2,484 )

Stock-based compensation expense

- 112,914 - - 112,914

Balance as of March 31, 2025

Balance as of June 30, 2025

47,892 $ 822,582 $ 2,603,177 $ ( 23,691 ) $ 3,402,068

3 unchanged sentences

Stockholders’

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Balance as of January 1, 2024

11 unchanged sentences

- 98,227 - - 98,227

Balance as of March 31, 2024

Balance as of June 30, 2024

48,698 $ 1,224,144 $ 1,016,208 $ ( 44,494 ) $ 2,195,858

3 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

2 unchanged sentences

Depreciation and amortization

24,569 16,942

Amortization of discount on available-for-sale securities

( 2,885 ) ( 10,040 )

Loss (gain) on deferred compensation plan investments

Gain on deferred compensation plan investments

( 4,230 ) ( 5,285 )

Deferred taxes, net

17,040 ( 5,821 )

Stock-based compensation expense

8 unchanged sentences

Accrued compensation and related benefits

10,609 14,698

Income tax liabilities

Other accrued liabilities

( 4,555 ) 7,344

Net cash provided by operating activities

3 unchanged sentences

( 88,485 ) ( 47,498 )

Purchases of intangible assets

( 2,000 ) ( 18,175 )

Purchases of investments

12 unchanged sentences

Repurchases of common stock

( 3,687 ) ( 8,626 )

Dividends and dividend equivalents paid

4 unchanged sentences

10,169 ( 6,603 )

Net decrease in cash, cash equivalents and restricted cash

Net increase (decrease) in cash, cash equivalents and restricted cash

95,583 ( 10,581 )

4 unchanged sentences

Supplemental disclosures for cash flow information:

Cash paid (refunded) for income taxes, net

Cash paid for income taxes, net

$ 17,007 $ 34,064

8 unchanged sentences

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by Monolithic Power Systems, Inc.

(the “Company” or “MPS”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”).

The accompanying unaudited condensed consolidated financial statements of Monolithic Power Systems, Inc., a Delaware corporation, and its wholly owned subsidiaries (the “Company” or “MPS”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Certain information and disclosures normally included in financial statements prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”) have been condensed or omitted in accordance with these accounting principles, rules and regulations.

generally accepted accounting principles (“U.S.

GAAP”) have been condensed or omitted in accordance with these accounting principles, rules and regulations.

All intercompany accounts and transactions have been eliminated.

The information in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10 -K for the year ended December 31, 2024 , filed with the SEC on March 3, 2025.

2 unchanged sentences

Summary of Significant Accounting Policies

There have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2025 to those described in the Company’s audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024.

There have been no changes to the Company’s significant accounting policies during the three and six months ended June 30, 2025 from those described in the Company’s audited consolidated financial statements included in the Annual Report on Form 10 -K for the year ended December 31, 2024 .

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period.

The preparation of financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period.

Significant estimates and assumptions used in these condensed consolidated financial statements primarily include those related to income tax valuation allowances, inventory valuation and stock-based compensation.

Actual results could differ from these estimates and assumptions, and any such differences may be material to the Company’s condensed consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted as of March 31, 2025

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

New Accounting Pronouncements Not Yet Adopted as of June 30, 2025

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023 - 09, Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures , which aims to improve an entity’s income tax disclosures around its effective rate reconciliation, income taxes paid, disaggregation of income before income taxes and income tax expense.

1 unchanged sentence

The standard should be applied prospectively but retrospective application is permitted.

Adoption of this new guidance will result in increased disclosures in the Notes to Consolidated Financial Statements.

Adoption of this new guidance will result in expanded disclosures in the Notes to Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024 - 03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

9 unchanged sentences

The Company sells its products to end customers primarily through third -party distributors and value-added resellers.

For the three months ended March 31, 2025 and 2024, 83 % and 90 %, respectively, of the Company’s total sales were made through distribution arrangements.

For each of the three and six months ended June 30, 2025 , 83 % of the Company’s total sales were made through distribution arrangements.

For each of the three and six months ended June 30, 2024 , 89 % of the Company’s total sales were made through distribution arrangements.

These distribution arrangements contain enforceable rights and obligations specific to those distributors and not the end customers.

1 unchanged sentence

The Company considers purchase orders to be the contracts with customers.

The unit price as stated on the purchase orders is considered the observable, stand-alone selling price for the arrangements.

The unit price stated on purchase orders is considered to be the observable, stand-alone selling price for customer sales arrangements.

The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

4 unchanged sentences

In accordance with the shipping terms specified in the contracts, these criteria are generally met when the products are shipped from the Company’s facilities (such as the “Ex Works” shipping term) or delivered to the customers’ locations (such as the “Delivered Duty Paid” shipping term).

Under certain consignment agreements, the Company recognizes revenue when the customers consume the products from the consigned inventory locations, at which time control transfers to the customers and the Company issues invoices.

Under certain consignment agreements, the Company recognizes revenue when customers consume products from the consigned inventory locations, at which time control transfers to the customers and the Company issues invoices.

Variable Consideration

13 unchanged sentences

The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied.

The Company’s accounts receivables are short-term, with standard payment terms generally ranging from 30 to 90 days.

The Company’s accounts receivable are short-term, with standard payment terms generally ranging from 30 to 90 days.

The Company does not require its customers to provide collateral to support accounts receivable.

6 unchanged sentences

The Company records these payments received in advance of performance as customer prepayments within other accrued liabilities.

As of March 31, 2025 and December 31, 2024, customer prepayments totaled $ 7.1 million and $ 6.9 million, respectively.

For the three months ended March 31, 2025, substantially all of the customer prepayment balance as of December 31, 2024 was fulfilled by the Company.

As of June 30, 2025 and December 31, 2024 , customer prepayments totaled $ 7.2 million and $ 6.9 million, respectively.

All of the customer prepayment balance as of December 31, 2024 has been fulfilled by the Company during the six months ended June 30, 2025 .

Practical Expedients

The Company has elected the practical expedient to expense sales and sales representative commissions as incurred because the amortization period would have been one year or less.

The Company has elected the practical expedient to expense sales commissions as incurred because the amortization period would have been one year or less.

The Company’s standard payment terms generally require customers to pay 30 to 90 days after the Company satisfies the performance obligations.

11 unchanged sentences

The Amended and Restated 2014 Plan will cease being available for new awards on June 11, 2030.

As of March 31, 2025, 3.6 million shares remained available for future issuance under the Amended and Restated 2014 Plan.

As of June 30, 2025 , 3.6 million shares remained available for future issuance under the Amended and Restated 2014 Plan.

Stock-Based Compensation Expense

The Company recognized stock-based compensation expense as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

7 unchanged sentences

Tax benefit related to stock-based compensation (1)

$ 703 $ 798 $ 1,163 $ 1,506

Amount reflects the tax benefit related to stock-based compensation recorded for equity awards that are expected to generate tax deductions when they vest in future periods.

13 unchanged sentences

( 4 ) $ 555.89 ( 4 ) $ 524.36 ( 10 ) $ 297.97 ( 18 ) $ 399.27

Outstanding at March 31, 2025

Outstanding at June 30, 2025

86 $ 573.19 909 $ 540.24 928 $ 202.27 1,923 $ 378.58

Amount reflects the number of awards that may ultimately be earned based on management’s probability assessment of the achievement of performance conditions at each reporting period.

The intrinsic value related to vested RSUs was $ 31.0 million and $ 403.0 million for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, the total intrinsic value of all outstanding RSUs was $ 1.1 billion, based on the closing stock price of $ 579.98 .

As of March 31, 2025, unamortized compensation expense related to all outstanding RSUs was $ 355.9 million with a weighted-average remaining recognition period of approximately two years.

The intrinsic value related to vested RSUs was $ 11.5 million and $ 25.5 million for the three months ended June 30, 2025 and 2024 , respectively.

The intrinsic value related to vested RSUs was $ 42.6 million and $ 428.6 million for the six months ended June 30, 2025 and 2024 , respectively.

As of June 30, 2025 , the total intrinsic value of all outstanding RSUs was $ 1.4 billion, based on the closing stock price of $ 731.38 .

As of June 30, 2025 , unamortized compensation expense related to all outstanding RSUs was $ 314.3 million with a weighted-average remaining recognition period of approximately two years.

Time-Based RSUs:

For the three months ended March 31, 2025, the Compensation Committee granted 23,000 RSUs with service conditions to non-executive employees and non-employee directors.

For the six months ended June 30, 2025 , the Compensation Committee granted 32,000 RSUs with service conditions to non-executive employees and non-employee directors.

The RSUs generally vest over four years for employees and one year for directors, subject to continued service with the Company.

32 unchanged sentences

10,302 13,895

$ 87,217 $ 109,978

Prepaid wafer expenses and other receivables relate to a deposit made to a supplier under a long-term wafer supply agreement.

44 unchanged sentences

The following tables summarize certain information related to the leases (in thousands, except percentages and years):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Operating lease costs

$ 1,284 $ 1,014 $ 2,392 $ 1,911

825 648 1,594 1,198

Total lease costs

$ 2,109 $ 1,662 $ 3,986 $ 3,109

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cash paid for amounts included in the measurement of lease liabilities:

5 unchanged sentences

Weighted-average discount rate

As of March 31, 2025, the maturities of the lease liabilities were as follows (in thousands):

2025 (remaining nine months)

As of June 30, 2025 , the maturities of the lease liabilities were as follows (in thousands):

2025 (remaining six months)

Total remaining lease payments

1 unchanged sentence

Total lease liabilities

As of March 31, 2025 , operating leases that had not yet commenced were not material.

As of June 30, 2025 , the Company had no operating leases that had not yet commenced.

NET INCOME PER SHARE

1 unchanged sentence

Diluted net income per share reflects the potential dilution from contingently issuable shares and calculated using the treasury stock method.

Contingently issuable shares, including all types of equity awards, are considered outstanding shares of common stock and included in the basic net income per share as of the date that all necessary conditions to earn the awards have been satisfied.

Prior to the end of the contingency period, the number of contingently issuable shares included in the diluted net income per share is based on the number of shares, if any, that would be issuable under the terms of the arrangement at the end of the reporting period.

Contingently issuable shares, including all types of equity awards, are considered outstanding shares of common stock and included in basic net income per share as of the date that all necessary conditions to earn the awards have been satisfied.

Prior to the end of the contingency period, the number of contingently issuable shares included in diluted net income per share is based on the number of shares, if any, that would be issuable under the terms of the arrangement at the end of the reporting period.

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

$ 133,726 $ 100,366 $ 267,517 $ 192,907

2 unchanged sentences

Effect of dilutive securities

132 258 143 275

Weighted-average outstanding shares—diluted

5 unchanged sentences

SEGMENT, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION

The Company operates in one reportable segment that includes the design, development, marketing and sale of high-performance, semiconductor-based power electronics solutions for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets.

The Company operates in one reportable segment that includes the design, development, marketing and sale of high-performance, semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, communications, consumer, and industrial end markets.

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

3 unchanged sentences

The following table summarizes those customers with sales equal to 10% or more of the Company’s total revenue for the periods presented:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Distributor A

25 % 38 % 25 % 40 %

Distributor B

17 % 17 % 18 % 15 %

Distributor C

11 % * 11 % *

*Represents less than 10%

8 unchanged sentences

The following is a summary of revenue by geographic region (in thousands) for the periods presented:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Country or Region

8 unchanged sentences

125 72 206 181

$ 664,574 $ 507,431 $ 1,302,128 $ 965,316

The following is a summary of long-lived assets by geographic region (in thousands):

6 unchanged sentences

Product Warranties and Rework

The Company generally provides either a one - or two -year warranty against defects in materials and workmanship and will repair the products, provide replacements at no charge to customers or issue a refund.

The Company generally provides either a one - or two -year warranty against defects in materials and workmanship and will repair products, provide replacements at no charge to customers or issue a refund.

As they are considered assurance-type warranties, the Company does not account for them as separate performance obligations.

Historically, our warranty obligations have not been material.

Historically, the Company’s warranty obligations have not been material.

The Company may also incur rework costs associated with product-related claims.

We accrue for warranty and rework costs upon evaluation of customer specific claims.

The changes in warranty reserves were as follows (in thousands):

Three Months Ended March 31,

The Company accrues for warranty and rework costs upon evaluation of customer specific claims.

The changes in warranty reserves were as follows (in thousands) for the periods presented:

Three Months Ended June 30,

Six Months Ended June 30,

Balance at beginning of period

1 unchanged sentence

Warranties issued

700 2,225 790 2,325

Repairs, replacement and refund

6 unchanged sentences

Purchase Commitments

The Company has outstanding purchase obligations with its suppliers and other parties that require the purchases of goods or services.

The Company has outstanding purchase obligations with its suppliers and other parties for purchases of goods or services.

The purchase obligations primarily consist of wafer and other inventory purchases, assembly and other manufacturing services, construction of manufacturing and R&D facilities, purchases of production and other equipment, and license arrangements.

In May 2022, the Company entered into a long-term supply agreement in order to secure manufacturing production capacity for silicon wafers over a four -year period.

As of March 31, 2025, the Company had remaining prepayments under this agreement of $ 60.0 million reported in other current assets on the Condensed Consolidated Balance Sheets.

Total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $60.0 million prepayment, as of March 31, 2025 were as follows (in thousands):

As of June 30, 2025 , the Company had remaining prepayments under this agreement of $ 60.0 million reported in other current assets on the Condensed Consolidated Balance Sheets.

Total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $60.0 million prepayment, as of June 30, 2025 were as follows (in thousands):

2025 (remaining six months)

The Company is a party to actions and proceedings in the ordinary course of business, including challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters.

The Company has also been subject to litigation initiated by its stockholders.

The Company is also subject to litigation initiated by its stockholders.

These proceedings often involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend.

The Company defends itself vigorously against any such claims.

As of March 31, 2025 , there were no material pending legal proceedings to which the Company was a party.

Based on current information, the Company does not believe that a material loss from known matters is probable as of June 30, 2025 .

CASH, CASH EQUIVALENTS, INVESTMENTS AND RESTRICTED CASH

15 unchanged sentences

$ 1,146,151 $ 863,094

The following table summarizes the contractual maturities of the short-term and long-term available-for-sale investments as of March 31, 2025 (in thousands):

The following table summarizes the contractual maturities of the short-term and long-term available-for-sale investments as of June 30, 2025 (in thousands):

Amortized Cost

7 unchanged sentences

The following tables summarize the unrealized gain and loss positions related to the available-for-sale investments (in thousands):

March 31, 2025

June 30, 2025

Amortized Cost

5 unchanged sentences

181,384 - - 181,384

Corporate debt securities

3,263 - ( 16 ) 3,247

treasuries and government agency bonds

5 unchanged sentences

Amortized Cost

Unrealized Gains

Unrealized Losses

9 unchanged sentences

The following tables present information about the available-for-sale investments that had been in a continuous unrealized loss position for less than 12 months and for greater than 12 months (in thousands):

March 31, 2025

June 30, 2025

Less than 12 Months

3 unchanged sentences

Unrealized Losses

Corporate debt securities

$ - $ - $ 3,247 $ ( 16 ) $ 3,247 $ ( 16 )

treasuries and government agency bonds

4 unchanged sentences

December 31, 2024

Less than 12 Months

Greater than 12 Months

1 unchanged sentence

Unrealized Losses

Corporate debt securities

4 unchanged sentences

An impairment exists when the fair value of an investment is less than its amortized cost basis.

As of March 31, 2025 and December 31, 2024, the Company did not consider the impairment of its investments to be a result of credit losses.

As of June 30, 2025 and December 31, 2024 , the Company did not consider the impairment of its investments to be a result of credit losses.

The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss.

18 unchanged sentences

The following tables detail the fair value of the Company’s financial assets measured on a recurring basis (in thousands):

March 31, 2025

June 30, 2025

Money market funds

2 unchanged sentences

181,384 - 181,384 -

Corporate debt securities

3,247 - 3,247 -

treasuries and government agency bonds

34 unchanged sentences

OTHER INCOME, NET

The components of other income, net, were as follows (in thousands):

Three Months Ended March 31,

The components of other income, net, were as follows (in thousands) for the periods presented:

Three Months Ended June 30,

Six Months Ended June 30,

Interest income

1 unchanged sentence

Amortization of discount on available-for-sale securities

Gain (loss) on deferred compensation plan investments

2,117 5,917 2,885 10,040

Gain on deferred compensation plan investments

5,580 1,266 4,230 5,285

Charitable commitments

( 900 ) ( 6,300 ) ( 900 ) ( 12,150 )

( 620 ) ( 1 ) ( 604 ) 333

$ 12,220 $ 7,512 $ 17,351 $ 17,052

The income tax provision or benefit for interim periods is generally determined using an estimate of the Company’s annual effective tax rate and adjusted for discrete items, if any, in the relevant period.

Each quarter the estimate of the annual effective tax rate is updated, and if the Company’s estimated tax rate changes, a cumulative adjustment is made.

The income tax expense for the three months ended March 31, 2025 was $ 40.1 million, or 23.1 % of pre-tax income.

The effective tax rate was higher than the federal statutory rate of 21 % primarily due to the U.S.

The income tax expense for the three months ended June 30, 2025 was $ 43.3 million, or 24.4 % of pre-tax income.

The income tax expense for the six months ended June 30, 2025 was $ 83.4 million, or 23.8 % of pre-tax income.

The effective tax rates were higher than the federal statutory rate of 21 % primarily due to the U.S.

impact of foreign earnings and non-deductible stock-based compensation.

The higher effective tax rate relative to the federal statutory rate was partially offset by income generated by the Company’s subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The income tax expense for the three months ended March 31, 2024 was $ 12.5 million, or 11.9 % of pre-tax income.

The effective tax rate was lower than the federal statutory rate of 21 % primarily due to lower statutory tax rates at certain of the Company’s foreign subsidiaries, and excess tax benefits from stock-based compensation.

The lower effective tax rate relative to the federal statutory rate was partially offset by the inclusion of the global intangible low-taxed income (“GILTI”) tax.

The higher effective tax rates relative to the federal statutory rate were partially offset by income generated by the Company’s subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The income tax expense for the three months ended June 30, 2024 was $ 23.7 million, or 19.1 % of pre-tax income.

The income tax expense for the six months ended June 30, 2024 was $ 36.2 million, or 15.8 % of pre-tax income.

The effective tax rates were lower than the federal statutory rate of 21 % primarily due to lower statutory tax rates at certain foreign subsidiaries of the Company, and excess tax benefits from stock-based compensation.

The lower effective tax rates relative to the federal statutory rate were partially offset by the inclusion of the global intangible low-taxed income (“GILTI”) tax.

In January 2025, the Organization for Economic Co-operation and Development (“OECD”) released new Administrative Guidance on the application of the Global Anti-Base Erosion (“GLoBE”) Model Rules.

2 unchanged sentences

The Bermuda CIT Act includes a 15% corporate income tax applicable to Bermuda businesses that are multinational enterprises with annual revenue of €750M or more beginning in 2025.

As the Company did not realize material taxable income in Bermuda in the three months ended March 31, 2025, no material changes to income tax expense related to the Bermuda CIT Act have been recorded as of March 31, 2025.

As the Company did not realize material taxable income in Bermuda in the three and six months ended June 30, 2025, no material changes to income tax expense related to the Bermuda CIT Act have been recorded as of June 30, 2025.

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 unchanged sentences

Balance as of January 1, 2025

$ ( 790 ) $ ( 47,721 ) $ ( 48,511 )

Other comprehensive income before reclassifications

43 5,139 5,182

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive income

48 5,139 5,187

Balance as of March 31, 2025

$ ( 742 ) $ ( 42,582 ) $ ( 43,324 )

Other comprehensive income (loss) before reclassifications

Net current period other comprehensive income (loss)

Balance as of June 30, 2025

The amount reclassified from accumulated other comprehensive income for the period presented was recorded in other income, net, on the Condensed Consolidated Statements of Operations.

2 unchanged sentences

The Company has a dividend program approved by its Board of Directors, pursuant to which the Company intends to pay quarterly cash dividends on its common stock.

The Board of Directors declared the following cash dividends (in thousands, except per-share amounts):

Three Months Ended March 31,

The Board of Directors declared the following cash dividends (in thousands, except per-share amounts) for the periods presented:

Three Months Ended June 30,

Six Months Ended June 30,

Dividend declared per share

1 unchanged sentence

$ 74,711 $ 60,872 $ 149,399 $ 121,706

As of March 31, 2025 and December 31, 2024, accrued cash dividends totaled $ 74.7 million and $ 59.8 million, respectively.

As of June 30, 2025 and December 31, 2024 , accrued cash dividends totaled $ 74.7 million and $ 59.8 million, respectively.

The declaration of any future cash dividends is at the discretion of the Board of Directors and will depend on, among other things, the Company’s financial condition, results of operations, capital requirements, business conditions, and other factors that the Board of Directors may deem relevant, as well as a determination that cash dividends are in the best interests of the Company’s stockholders.

6 unchanged sentences

Dividend equivalents accumulated on the underlying RSUs are forfeited if the underlying RSUs do not vest.

As of March 31, 2025 and December 31, 2024 , accrued dividend equivalents totaled $ 6.7 million and $ 5.8 million, respectively.

As of June 30, 2025 and December 31, 2024 , accrued dividend equivalents totaled $ 7.6 million and $ 5.8 million, respectively.

Stock Repurchase Programs

2 unchanged sentences

Shares are retired upon repurchase.

The Company did not make any repurchases under this program during the three months ended March 31, 2025.

The Company repurchased 3,900 shares of its common stock for an aggregate purchase price of $ 2.6 million during the three months ended June 30, 2025 .

No repurchases were made during the three months ended March 31, 2025.

The Company repurchased 6,300 and 12,400 shares of its common stock for an aggregate purchase price of $ 4.5 million and $ 8.6 million during the three and six months ended June 30, 2024 , respectively.

Stock repurchased under the program may be made through open market repurchases, privately negotiated transactions or other structures in accordance with applicable state and federal securities laws, at times and in amounts as management deems appropriate.

1 unchanged sentence

The repurchase program does not obligate the Company to purchase any particular number of shares, and may be suspended, modified, or discontinued at any time without prior notice.

SUBSEQUENT EVENT

The budget reconciliation bill H.R.1 was enacted on July 4, 2025.

It includes significant provisions, such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act and modifications to the existing tax framework.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company is currently assessing the impact on its consolidated financial statements.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

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the above-average industry growth of product and market areas that we have targeted;

our plans to grow revenue in a diversified way across regions and increase revenue through the introduction of new products within our existing product families as well as in new product categories, families and segments;

our mission statement to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future;

the effects of macroeconomic factors, global economic uncertainties, geopolitical tensions and global tariffs and retaliatory measures on the semiconductor industry and our business;

the effect of seasonality on our business and the factors that can impact seasonality;

the effect that liquidity of our investments has on our capital resources;

the continuing application of our products in the storage and computing, enterprise data, automotive, industrial, communications and consumer end markets;

estimates of our future liquidity requirements;

the continuing application of our products in the storage and computing, automotive, enterprise data, communications, consumer, and industrial end markets;

estimates of our future liquidity requirements and the sufficiency of our cash, cash equivalents and short-term investments to operate our business;

the cyclical nature of the semiconductor industry;

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the expected impact of various U.S.

and international tax laws and regulations on our income tax provision, financial position and cash flows;

and international tax laws and regulations, including the recent H.R.1 Act signed into law on July 4, 2025, on our income tax provision, financial position and cash flows;

our plan to repatriate cash from our foreign subsidiaries;

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We derive most of our revenue from sales through distribution arrangements and direct sales to customers in Asia, where our products are incorporated into end-user products.

Our revenue from sales to customers in Asia was 94% and 93% of our total revenue for the three months ended March 31, 2025 and 2024, respectively.

We believe our ability to achieve revenue growth will depend, in part, on our ability to develop new products, enter new market segments, gain market share, manage litigation risk, diversify our customer base and continue to secure manufacturing capacity.

Our revenue from sales to customers in Asia was 93% of our total revenue for each of the three and six months ended June 30, 2025 and 2024.

We believe our ability to achieve revenue growth will depend, in part, on our ability to develop new products, enter new markets, gain market share, manage litigation risk, diversify our customer base and continue to secure manufacturing capacity.

Macroeconomic Conditions and Regulations

The semiconductor industry has historically been impacted by various macroeconomic challenges including fluctuations in consumer spending, fluctuations in demand for semiconductors, rising inflation, increased interest rates, and fluctuations in currency rates.

The semiconductor industry is impacted by various macroeconomic challenges including fluctuations in consumer spending, fluctuations in demand for semiconductors, rising inflation, global tariffs and retaliatory measures and announcements regarding same, increased interest rates, and fluctuations in currency rates.

We remain cautious in light of continued challenging macroeconomic conditions and will continue to monitor the potential impact on our operations.

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however, such restrictions or requirements can be enacted quickly and unexpectedly and could impact our business in the future.

To the extent tariffs or trade regulations affecting us are implemented, we will seek to take mitigating actions in the near- and medium-term, as necessary, and are committed to complying with all applicable trade laws, regulations and other requirements.

To the extent tariffs, trade regulations or retaliatory measures or announcements regarding same that affect us are implemented, we will seek to take mitigating actions in the near- and medium-term, as necessary, and are committed to complying with all applicable trade laws, regulations and other requirements.

Critical Accounting Estimates

In preparing our condensed consolidated financial statements in accordance with GAAP, we are required to make estimates, assumptions and judgments that affect the amounts reported in our financial statements and the accompanying disclosures.

Estimates and judgments used in the preparation of our financial statements are, by their nature, uncertain and unpredictable, and depend upon, among other things, many factors outside of our control, including demand for our products, economic conditions and other current and future events, such as macroeconomic factors, global economic uncertainties, geopolitical tensions and global tariffs and counter measures.

In preparing our condensed consolidated financial statements in accordance with U.S.

GAAP, we are required to make estimates, assumptions and judgments that affect the amounts reported in our financial statements and the accompanying disclosures.

Actual results could differ from these estimates and assumptions, and any such differences may be material to our condensed consolidated financial statements.

There have been no material changes during the three months ended June 30, 2025 to our critical accounting estimates from the information provided in the “Critical Accounting Estimates” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Results of Operations

The table below sets forth the data on the Condensed Consolidated Statements of Operations as a percentage of revenue:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except percentages)

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The following table summarizes our revenue by end market:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except percentages)

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Communications

Revenue for the three months ended March 31, 2025 was $637.6 million, an increase of $179.7 million, or 39.2%, from $457.9 million for the three months ended March 31, 2024.

Revenue for the three months ended June 30, 2025 was $664.6 million, an increase of $157.2 million, or 31.0%, from $507.4 million for the three months ended June 30, 2024.

The increase in revenue was primarily due to higher shipment volume.

For the three months ended March 31, 2025, revenue from the storage and computing market increased $82.4 million, or 77.6%, from the same period in 2024.

This increase was primarily due to higher sales of storage applications and products for notebooks.

For the three months ended June 30, 2025, revenue from the storage and computing market increased $80.4 million, or 69.9%, from the same period in 2024.

This increase was primarily due to higher sales of power solutions for storage applications and notebooks.

Revenue from the automotive market increased $57.9 million, or 66.4%, from the same period in 2024.

This increase was primarily due to higher sales of applications supporting advanced driver assistance systems, infotainment and USB connectors.

This increase was broad-based and primarily due to higher sales of applications supporting advanced driver assistance systems, infotainment and motion control.

Revenue from the enterprise data market decreased $43.2 million, or 23.1%, from the same period in 2024.

This decrease was primarily due to lower sales of our power management solutions for AI applications, partially offset by higher sales of our cloud-based and on-premises CPU server and workstation applications.

This decrease was primarily due to lower sales of our power management solutions for artificial intelligence (“AI”) applications, partially offset by higher sales of our power management solutions for server applications.

Revenue from the communications market increased $30.2 million, or 69.4%, from the same period in 2024.

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Revenue from the consumer market increased $17.4 million, or 41.3%, from the same period in 2024.

This increase was primarily driven by higher sales in home appliances and smart TVs.

This increase was primarily driven by higher sales of products for home appliances, gaming solutions and monitors, partially offset by lower sales of power management solutions for digital cameras.

Revenue from the industrial market increased $14.4 million, or 44.7%, from the same period in 2024.

This increase was broad-based and primarily due to higher sales for power sources.

This increase was primarily due to higher sales for power sources and instrumentation applications.

Revenue for the six months ended June 30, 2025 was $1,302.1 million, an increase of $336.8 million, or 34.9%, from $965.3 million for the six months ended June 30, 2024.

The increase in revenue was primarily due to higher shipment volume.

For the six months ended June 30, 2025, revenue from the storage and computing market increased $162.8 million, or 73.6%, from the same period in 2024.

This increase was primarily due to higher sales of power solutions for storage applications, notebooks and graphics cards.

Revenue from the automotive market increased $115.8 million, or 66.4%, from the same period in 2024.

This increase was broad-based and primarily due to higher sales of applications supporting advanced driver assistance systems, infotainment, and body electronics.

Revenue from the enterprise data market decreased $60.1 million, or 17.8%, from the same period in 2024.

This decrease was primarily due to lower sales of our power management solutions for AI applications, partially offset by higher sales of our power management solutions for server applications.

Revenue from the communications market increased $55.2 million, or 61.2%, from the same period in 2024.

This increase was primarily driven by higher sales of power solutions for optical modules and routers.

Revenue from the consumer market increased $36.3 million, or 45.2%, from the same period in 2024.

This increase was primarily driven by higher sales of products for home appliances and gaming solutions.

Revenue from the industrial market increased $26.8 million, or 42.9%, from the same period in 2024.

This increase was primarily due to higher sales for power sources, instrumentation and industrial meter applications.

Cost of Revenue and Gross Margin

Cost of revenue primarily consists of costs incurred to manufacture, assemble and test our products, as well as warranty costs, inventory-related and other overhead costs, and stock-based compensation expenses.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except percentages)

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As a percentage of revenue

Cost of revenue was $284.3 million, or 44.6% of revenue, for the three months ended March 31, 2025, and $205.4 million, or 44.9% of revenue, for the three months ended March 31, 2024.

Cost of revenue was $298.6 million, or 44.9% of revenue, for the three months ended June 30, 2025, and $226.9 million, or 44.7% of revenue, for the three months ended June 30, 2024.

The $71.7 million increase in cost of revenue was primarily driven by higher shipment volume.

Gross margin was 55.4% for the three months ended March 31, 2025, compared with 55.1% for the three months ended March 31, 2024.

The increase in gross margin was mainly driven by lower inventory write-downs and warranty expenses as a percentage of revenue, partially offset by product mix and higher manufacturing overhead costs as a percentage of revenue.

Gross margin was 55.1% for the three months ended June 30, 2025, compared with 55.3% for the three months ended June 30, 2024.

The decrease in gross margin was mainly driven by product mix, partially offset by a decrease in inventory write-downs as a percentage of revenue.

Cost of revenue was $582.9 million, or 44.8% of revenue, for the six months ended June 30, 2025, and $432.3 million, or 44.8% of revenue, for the six months ended June 30, 2024.

The $150.6 million increase in cost of revenue was primarily driven by higher shipment volume.

Gross margin was 55.2% for the six months ended June 30, 2025, flat to the six months ended June 30, 2024.

Research and Development

R&D expenses primarily consist of cash compensation and benefits, stock-based compensation and deferred compensation for design and product engineers, expenses related to new product development and supplies, and facility costs.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except percentages)

As a percentage of revenue

R&D expenses were $92.2 million, or 14.4% of revenue, for the three months ended March 31, 2025, and $76.0 million, or 16.6% of revenue, for the three months ended March 31, 2024.

The $16.2 million increase in R&D expenses was primarily due to a $10.4 million increase in cash compensation expenses and benefits, a $4.1 million increase in new product development expenses, and a $1.5 million increase in laboratory and other supplies, partially offset by a $1.9 million benefit related to changes in the value of deferred compensation plan liabilities.

R&D expenses were $96.3 million, or 14.5% of revenue, for the three months ended June 30, 2025, and $77.9 million, or 15.3% of revenue, for the three months ended June 30, 2024.

The $18.3 million increase in R&D expenses was primarily due to $9.4 million increase in cash compensation expenses and benefits, $2.1 million increase in new product development expenses, $1.9 million increase in expense related to changes in the fair value of deferred compensation plan liabilities, and $1.5 million increase in laboratory and other supplies.

R&D expenses were $188.5 million, or 14.5% of revenue, for the six months ended June 30, 2025, and $153.9 million, or 15.9% of revenue, for the six months ended June 30, 2024.

The $34.6 million increase in R&D expenses was primarily due to $19.8 million increase in cash compensation expenses and benefits, $6.3 million increase in new product development expenses, $3.0 million increase in laboratory and other supplies, and $0.8 million increase in stock-based compensation and related expenses.

Selling, General and Administrative

SG&A expenses primarily include cash compensation and benefits, stock-based compensation and deferred compensation for sales, marketing and administrative personnel, sales and sales representative commissions, travel expenses, facilities costs, third party service fees and legal expenses.

Three Months Ended March 31,

SG&A expenses primarily include cash compensation and benefits, stock-based compensation and deferred compensation for sales, marketing and administrative personnel, travel expenses, facilities costs, third party service fees and legal expenses.

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except percentages)

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As a percentage of revenue

SG&A expenses were $92.2 million, or 14.5% of revenue, for the three months ended March 31, 2025, and $81.0 million, or 17.7% of revenue, for the three months ended March 31, 2024.

The $11.3 million increase in SG&A expenses was primarily driven by a $5.9 million increase in cash compensation and benefits, a $3.6 million increase in sales and sales representative commissions, a $2.2 million increase in stock-based compensation expenses, and a $1.0 million increase consisting of software licensing fees and advertising expenses, partially offset by a $2.9 million benefit related to changes in the value of deferred compensation plan liabilities.

SG&A expenses were $105.0 million, or 15.8% of revenue, for the three months ended June 30, 2025, and $86.1 million, or 17.0% of revenue, for the three months ended June 30, 2024.

The $18.9 million increase in SG&A expenses was primarily driven by $7.3 million increase in cash compensation and benefits, $6.5 million increase in stock-based compensation and related expenses, and $2.1 million increase in expense related to changes in the fair value of deferred compensation plan liabilities.

SG&A expenses were $197.2 million, or 15.1% of revenue, for the six months ended June 30, 2025, and $167.1 million, or 17.3% of revenue, for the six months ended June 30, 2024.

The $30.2 million increase in SG&A expenses was primarily driven by $16.8 million increase in cash compensation and benefits, and $8.7 million increase in stock-based compensation and related expenses.

Other Income, Net

Other income, net, was $5.1 million for the three months ended March 31, 2025, compared with $9.5 million for the three months ended March 31, 2024.

The decrease in other income, net was primarily due to an increase of $5.4 million in expense related to changes in the value of the deferred compensation plan investments and a decrease of $3.4 million in amortization of the discount on available-for-sale securities, partially offset by a decrease in charitable commitments.

Other income, net, was $12.2 million for the three months ended June 30, 2025, compared with $7.5 million for the three months ended June 30, 2024.

The increase in other income, net was primarily due to a decrease of $5.4 million in charitable commitments, and $4.3 million related to changes in the value of the deferred compensation plan investments, partially offset by a decrease of $3.8 million in amortization of the discount on available-for-sale securities.

Other income, net, was $17.4 million for the six months ended June 30, 2025, compared with $17.1 million for the six months ended June 30, 2024.

The increase in other income, net was primarily due to a decrease of $11.3 million in charitable commitments, partially offset by a decrease of $7.2 million in amortization of the discount on available-for-sale securities.

Income Tax Expense

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Each quarter the estimate of the annual effective tax rate is updated, and if our estimated tax rate changes, a cumulative adjustment is made.

The income tax expense for the three months ended March 31, 2025 was $40.1 million, or 23.1% of pre-tax income.

The effective tax rate was higher than the federal statutory rate of 21% primarily due to the U.S.

The income tax expense for the three months ended June 30, 2025 was $43.3 million, or 24.4% of pre-tax income.

The income tax expense for the six months ended June 30, 2025 was $83.4 million, or 23.8% of pre-tax income.

The effective tax rates were higher than the federal statutory rate of 21% primarily due to the U.S.

impact of foreign earnings and non-deductible stock-based compensation.

The higher effective tax rate relative to the federal statutory rate was partially offset by income generated by our subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The income tax expense for the three months ended March 31, 2024 was $12.5 million, or 11.9% of pre-tax income.

The effective tax rate was lower than the federal statutory rate of 21% primarily due to lower statutory tax rates at certain of our foreign subsidiaries, and excess tax benefits from stock-based compensation.

The lower effective tax rate relative to the federal statutory rate was partially offset by the inclusion of the GILTI tax.

The higher effective tax rates relative to the federal statutory rate were partially offset by income generated by our subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The income tax expense for the three months ended June 30, 2024 was $23.7 million, or 19.1% of pre-tax income.

The income tax expense for the six months ended June 30, 2024 was $36.2 million, or 15.8% of pre-tax income.

The effective tax rates were lower than the federal statutory rate of 21% primarily due to lower statutory tax rates at certain of our foreign subsidiaries, and excess tax benefits from stock-based compensation.

The lower effective tax rates relative to the federal statutory rate were partially offset by the inclusion of the GILTI tax.

The recent H.R.1 Act that was signed into law on July 4, 2025 introduces significant provisions, including tax cut extensions and modifications to the existing tax framework.

We are currently evaluating and will continue to evaluate the impact of these legislative changes on our consolidated financial statements as additional guidance becomes available.

In January 2025, the OECD released new Administrative Guidance on the application of the GLoBE Model Rules.

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Working capital

As of March 31, 2025, we had cash and cash equivalents of $637.4 million and short-term investments of $389.3 million, compared with cash and cash equivalents of $691.8 million and short-term investments of $171.1 million as of December 31, 2024.

As of March 31, 2025, $521.0 million of cash and cash equivalents and $179.1 million of short-term investments were held by our foreign subsidiaries.

For the three months ended March 31, 2025, we repatriated $275 million of cash from certain of our foreign subsidiaries to the U.S.

As of June 30, 2025, we had cash and cash equivalents of $787.4 million and short-term investments of $358.7 million, compared with cash and cash equivalents of $691.8 million and short-term investments of $171.1 million as of December 31, 2024.

As of June 30, 2025, $687.4 million of cash and cash equivalents and $181.4 million of short-term investments were held by our foreign subsidiaries.

For the six months ended June 30, 2025, we repatriated $275 million of cash from certain of our foreign subsidiaries to the U.S.

with minimal tax impact.

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The following table summarizes our cash flow activities:

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

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Effect of change in exchange rates

Net decrease in cash, cash equivalents and restricted cash

For the three months ended March 31, 2025, the $8.3 million increase in net cash provided by operating activities compared to the same period in 2024 was primarily due to increased accounts receivable collections, partially offset by increased inventory purchases and changes in other working capital.

For the three months ended March 31, 2025, the $8.5 million decrease in net cash used in investing activities compared to the same period in 2024 was primarily due to a $33.3 million acquisition made in 2024, partially offset by an increase of $24.4 million in purchases of property and equipment.

For the three months ended March 31, 2025, the $5.9 million increase in net cash used in financing activities compared to the same period in 2024 was primarily due to an increase of $10.5 million in dividend and dividend equivalent payments, partially offset by repurchases of common stock made only in 2024.

Net increase (decrease) in cash, cash equivalents and restricted cash

For the six months ended June 30, 2025, the $105.0 million increase in net cash provided by operating activities compared to the same period in 2024 was primarily due to increased accounts receivable collections, partially offset by increased inventory purchases and changes in other working capital.

The net cash used in investing activities for the six months ended June 30, 2025 was flat compared to the net cash used for the same period in 2024.

For the six months ended June 30, 2025, the $11.7 million increase in net cash used in financing activities compared to the same period in 2024 was primarily due to an increase of $17.5 million in dividend and dividend equivalent payments, partially offset by a decrease in repurchases of common stock.

Cash Requirements

Although consequences of economic uncertainties and macroeconomic conditions, including tariffs and retaliatory measures, and other factors could adversely affect our liquidity and capital resources in the future, and cash requirements may fluctuate based on the timing and extent of many factors such as those discussed above, we believe that our balances of cash, cash equivalents and short-term investments of $1,026.7 million as of March 31, 2025, along with cash generated by ongoing operations, will be sufficient to satisfy our liquidity requirements for the next 12 months and beyond.

Although consequences of economic uncertainties and macroeconomic conditions, including tariffs and retaliatory measures and announcements regarding same, and other factors could adversely affect our liquidity and capital resources in the future, and cash requirements may fluctuate based on the timing and extent of many factors such as those discussed above, we believe that our balances of cash, cash equivalents and short-term investments of $1,146.1 million as of June 30, 2025, along with cash generated by ongoing operations, will be sufficient to satisfy our liquidity requirements for the next 12 months and beyond.

Our material cash requirements include the following contractual and other obligations:

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In May 2022, we entered into a long-term supply agreement in order to secure manufacturing production capacity for silicon wafers over a four-year period.

As of March 31, 2025, we had remaining prepayments under this agreement of $60.0 million reported in other current assets on the Condensed Consolidated Balance Sheets.

As of March 31, 2025, total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $60.0 million prepayment, were $546.5 million, of which $497.7 million was due within a year.

Transition Tax Liability

The transition tax liability represents the one-time, mandatory deemed repatriation tax imposed on previously deferred foreign earnings under the U.S.

Tax Cuts and Jobs Act enacted in December 2017 (the “2017 Tax Act”).

As permitted by the 2017 Tax Act, we have elected to pay the tax liability in installments on an interest-free basis through 2025.

As of March 31, 2025, the remaining liability totaled $6.2 million, all of which was short-term.

As of June 30, 2025, we had remaining prepayments under this agreement of $60.0 million reported in other current assets on the Condensed Consolidated Balance Sheets.

As of June 30, 2025, total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $60.0 million prepayment, were $449.0 million, of which $397.2 million was due within a year.

Operating Leases

Operating lease obligations represent the undiscounted remaining lease payments primarily for our leased facilities.

As of March 31, 2025, these obligations totaled $17.8 million, of which $3.3 million was short-term.

As of June 30, 2025, these obligations totaled $19.9 million, of which $4.0 million was short-term.

Capital Return to Stockholders

In February 2025, our Board of Directors approved a stock repurchase program authorizing us to repurchase up to $500.0 million of our common stock through February 2028.

As of March 31, 2025, $500.0 million remained available for future repurchases under the program.

Shares are retired upon repurchase.

We repurchased 3,900 shares of our common stock for an aggregate purchase price of $2.6 million during the three months ended June 30, 2025.

No repurchases were made during the three months ended March 31, 2025.

As of June 30, 2025, $497.4 million remained available for future repurchases under the program.

We currently have a dividend program approved by our Board of Directors, pursuant to which we intend to pay quarterly cash dividends on our common stock.

Based on our historical practice, stockholders of record as of the last business day of the quarter are entitled to receive the quarterly cash dividends when and if declared by the Board of Directors, which are payable to the stockholders in the following month.

As of March 31, 2025, accrued cash dividends totaled $74.7 million.

As of June 30, 2025, accrued cash dividends totaled $74.7 million.

The declaration of any future cash dividends is at the discretion of our Board of Directors and will depend on, among other things, our financial condition, results of operations, capital requirements, business conditions and other factors that our Board of Directors may deem relevant, as well as a determination that cash dividends are in the best interests of our stockholders.

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Other long-term obligations primarily include payments for deferred compensation plan liabilities and accrued dividend equivalents.

As of March 31, 2025, these obligations totaled $91.3 million.

As of June 30, 2025, these obligations totaled $97.5 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements