What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-04 · 186 added, 327 removed, 692 unchanged (43% of the section changed)

3 unchanged sentences

(In thousands, except par value)

September 30,

Current assets:

55 unchanged sentences

(In thousands, except per-share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

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

Three Months Ended September 30,

Nine Months Ended September 30,

Cost of revenue

298,558 226,853 582,882 432,297

366,016 280,578 719,246 533,019

Operating expenses:

Research and development

96,266 77,945 188,493 153,935

Selling, general and administrative

104,992 86,097 197,236 167,061

Total operating expenses

201,258 164,042 385,729 320,996

Operating income

164,758 116,536 333,517 212,023

Other income, net

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

Income before income taxes

176,978 124,048 350,868 229,075

Income tax expense

43,252 23,682 83,351 36,168

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

Net income per share:

$ 2.79 $ 2.06 $ 5.59 $ 3.96

$ 2.78 $ 2.05 $ 5.57 $ 3.94

Weighted-average shares outstanding:

47,887 48,687 47,869 48,660

48,019 48,945 48,012 48,935

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

$ 178,274 $ 144,430 $ 445,791 $ 337,337

Other comprehensive income (loss), net of tax:

Other comprehensive income, net of tax:

Foreign currency translation adjustments

2 unchanged sentences

69 977 116 1,680

Other comprehensive income (loss), net of tax

Other comprehensive income, net of tax

988 23,298 25,808 5,866

9 unchanged sentences

Stockholders’

Three Months Ended June 30, 2025

Balance as of April 1, 2025

Three Months Ended September 30, 2025

Balance as of July 1, 2025

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

5 unchanged sentences

Common stock issued

15 3,885 - - 3,885

Repurchases of common stock

2 unchanged sentences

- 60,673 - - 60,673

Balance as of June 30, 2025

Balance as of September 30, 2025

47,905 $ 885,123 $ 2,705,527 $ ( 22,703 ) $ 3,567,947

3 unchanged sentences

Stockholders’

Three Months Ended June 30, 2024

Balance as of April 1, 2024

Three Months Ended September 30, 2024

Balance as of July 1, 2024

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

- - 144,430 - 144,430

Other comprehensive loss

Other comprehensive income

- - - 23,298 23,298

2 unchanged sentences

Common stock issued

88 4,121 - - 4,121

Repurchases of common stock

2 unchanged sentences

- 51,396 - - 51,396

Balance as of June 30, 2024

Balance as of September 30, 2024

48,779 $ 1,274,127 $ 1,098,759 $ ( 21,196 ) $ 2,351,690

3 unchanged sentences

Stockholders’

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Balance as of January 1, 2025

11 unchanged sentences

- 173,587 - - 173,587

Balance as of June 30, 2025

Balance as of September 30, 2025

47,905 $ 885,123 $ 2,705,527 $ ( 22,703 ) $ 3,567,947

3 unchanged sentences

Stockholders’

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance as of January 1, 2024

1 unchanged sentence

- - 337,337 - 337,337

Other comprehensive loss

Other comprehensive income

- - - 5,866 5,866

7 unchanged sentences

- 149,623 - - 149,623

Balance as of June 30, 2024

Balance as of September 30, 2024

48,779 $ 1,274,127 $ 1,098,759 $ ( 21,196 ) $ 2,351,690

3 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

$ 267,517 $ 192,907

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

Depreciation and amortization

24,569 16,942

Amortization of discount on available-for-sale securities

( 2,885 ) ( 10,040 )

Gain on deferred compensation plan investments

( 4,230 ) ( 5,285 )

Deferred taxes, net

17,040 ( 5,821 )

Stock-based compensation expense

112,904 98,232

Changes in operating assets and liabilities:

Accounts receivable

( 22,264 ) 21,951

( 71,018 ) ( 42,350 )

83,395 60,590

Accounts payable

36,627 30,725

Accrued compensation and related benefits

2 unchanged sentences

Net cash provided by operating activities

494,024 389,026

Cash flows from investing activities:

Purchases of property and equipment

( 88,485 ) ( 47,498 )

Purchases of intangible assets

( 2,000 ) ( 18,175 )

Purchases of investments

( 393,010 ) ( 589,615 )

Maturities and sales of investments

211,227 420,514

Cash paid for acquisition, net of cash acquired

Contributions to deferred compensation plan

( 1,015 ) ( 1,309 )

Net cash used in investing activities

( 273,283 ) ( 269,366 )

Cash flows from financing activities:

Property and equipment purchased on extended payment terms

( 1,902 ) ( 2,010 )

Proceeds from common stock issued under the employee stock purchase plan

Repurchases of common stock

( 3,687 ) ( 8,626 )

Dividends and dividend equivalents paid

( 135,073 ) ( 117,608 )

Net cash used in financing activities

( 135,327 ) ( 123,638 )

Effect of change in exchange rates

10,169 ( 6,603 )

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

95,583 ( 10,581 )

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

691,941 561,181

Cash, cash equivalents and restricted cash, end of period

$ 787,524 $ 550,600

Supplemental disclosures for cash flow information:

Cash paid for income taxes, net

$ 17,007 $ 34,064

Non-cash investing and financing activities:

Liability accrued for property and equipment purchases

$ 6,108 $ 7,488

Liability accrued for dividends and dividend equivalents

$ 77,193 $ 62,949

See accompanying notes to unaudited condensed consolidated financial statements.

11 unchanged sentences

Summary of Significant Accounting Policies

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 .

There have been no changes to the Company’s significant accounting policies during the three and nine months ended September 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

3 unchanged sentences

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 June 30, 2025

New Accounting Pronouncements Not Yet Adopted as of September 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.

The guidance is effective for annual periods beginning January 1, 2025.

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

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

The Company will adopt this standard in its Form 10-K for the fiscal year ending December 31, 2025.

The adoption of this standard 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):

Disaggregation of Income Statement Expenses , which aims to provide more detailed information about the types of expenses in commonly presented expense captions.

The guidance will be effective for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028.

The standard can be applied prospectively or retrospectively to any or all prior periods presented in the financial statements.

The Company will adopt this standard in its Form 10-K for the fiscal year ending December 31, 2027.

The Company is evaluating the impact of adoption on its Consolidated Financial Statements.

3 unchanged sentences

The remaining revenue, which primarily consists of royalty revenue from licensing arrangements and revenue from wafer testing services performed for third parties, was not significant in any of the periods presented.

See Note 7 for the disaggregation of the Company’s revenue by geographic region.

See Note 7 to our unaudited condensed consolidated financial statements for the disaggregation of the Company’s revenue by geographic region.

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

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.

For the three months ended September 30, 2025 and 2024, 85 % and 88 %, respectively, of the Company’s total sales were made through distribution arrangements.

For the nine months ended September 30, 2025 and 2024, 84 % and 89 %, respectively, 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.

33 unchanged sentences

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

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 .

As of September 30, 2025 and December 31, 2024, customer prepayments totaled $ 9.4 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 nine months ended September 30, 2025.

Practical Expedients

1 unchanged sentence

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

For those customers who are required to pay in advance, the Company satisfies the performance obligations generally within a quarter.

For these reasons, the Company has elected not to determine whether contracts with customers contain significant financing components.

For this reason, the Company has elected not to determine whether contracts with customers contain significant financing components.

The Company’s unsatisfied performance obligations primarily include products held in consignment arrangements and customer purchase orders for products that the Company has not yet shipped.

8 unchanged sentences

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

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

As of September 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Cost of revenue

$ 1,913 $ 1,611 $ 3,586 $ 3,009

Research and development (“R&D”)

12,469 11,682 24,147 22,129

Selling, general and administrative (“SG&A”)

45,716 39,013 85,171 73,094

Total stock-based compensation expense

$ 60,098 $ 52,306 $ 112,904 $ 98,232

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.

8 unchanged sentences

Outstanding at January 1, 2025

85 $ 516.12 681 $ 524.08 938 $ 203.32 1,704 $ 347.01

32 $ 635.87 269 (1)

$ 565.99 - $ - 301 $ 573.03

( 27 ) $ 471.70 ( 37 ) $ 399.91 - $ - ( 64 ) $ 430.10

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

Outstanding at June 30, 2025

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

Outstanding at September 30, 2025

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 $ 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.

The intrinsic value related to vested RSUs was $ 49.6 million and $ 494.4 million for the nine months ended September 30, 2025 and 2024, respectively.

The decrease in the intrinsic value was primarily due to the timing of vested RSUs.

As of September 30, 2025, the total intrinsic value of all outstanding RSUs was $ 1.7 billion, based on the closing stock price of $ 920.64 .

As of September 30, 2025, unamortized compensation expense related to all outstanding RSUs was $ 260.7 million with a weighted-average remaining recognition period of approximately two years.

Time-Based RSUs:

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.

For the nine months ended September 30, 2025, the Compensation Committee granted 38,000 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.

18 unchanged sentences

Inventories consist of the following (in thousands):

September 30,

Raw materials

7 unchanged sentences

Other current assets consist of the following (in thousands):

September 30,

Prepaid wafer expenses (1)

Prepaid expenses

16,915 36,083

Other receivables (1)

2 unchanged sentences

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

See Note 8 for details about the supply agreement.

See Note 8 to our unaudited condensed consolidated financial statements for details about the supply agreement.

Other Long-Term Assets

Other long-term assets consist of the following (in thousands):

September 30,

Deferred compensation plan assets

$ 101,905 $ 92,586

Operating lease right-of-use (“ROU”) and related assets (1)

37,705 34,198

Prepaid wafer purchases (1)

59,150 41,791

The operating lease ROU and related assets include a fair value measurement related to favorable market terms on a facility lease.

$ 161,055 $ 194,377

Prepaid wafer purchases relate to a deposit made to a supplier under a long-term wafer supply agreement.

See Note 8 for details about the supply agreement.

See Note 8 to our unaudited condensed consolidated financial statements for details about the supply agreement.

Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):

September 30,

Dividends and dividend equivalents

6 unchanged sentences

$ 201,513 $ 128,123

The increase in income tax payable during the nine months ended September 30, 2025 was a result of the timing of payments of estimated taxes both domestically and internationally.

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

September 30,

Deferred compensation plan liabilities

8 unchanged sentences

The Company does not have finance lease arrangements.

The following table summarizes the balances of operating lease ROU assets and liabilities (in thousands):

The following table summarizes the balances of operating lease right-of-use (“ROU”) assets and liabilities (in thousands):

September 30,

Financial Statement Line Item

8 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

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

Operating cash flows for operating leases

$ 1,161 $ 1,027 $ 2,161 $ 1,700

ROU assets obtained in exchange for new operating lease liabilities

$ 2,562 $ 7,809 $ 5,206 $ 9,271

September 30,

Weighted-average remaining lease term (in years)

Weighted-average discount rate

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

2025 (remaining six months)

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

2025 (remaining three months)

Total remaining lease payments

1 unchanged sentence

Total lease liabilities

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

As of September 30, 2025 , the Company’s operating leases that had not yet commenced were not material.

NET INCOME PER SHARE

4 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

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

Three Months Ended September 30,

Nine Months Ended September 30,

Weighted-average outstanding shares—basic

47,887 48,687 47,869 48,660

Effect of dilutive securities

132 258 143 275

Weighted-average outstanding shares—diluted

48,019 48,945 48,012 48,935

Net income per share:

$ 2.79 $ 2.06 $ 5.59 $ 3.96

$ 2.78 $ 2.05 $ 5.57 $ 3.94

Anti-dilutive common stock equivalents were not material for the periods presented.

6 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Distributor A

25 % 38 % 25 % 40 %

Distributor B

17 % 17 % 18 % 15 %

Distributor C

11 % * 11 % *

*Represents less than 10%.

2 unchanged sentences

The following table summarizes those customers with accounts receivable equal to 10% or more of the Company’s total net accounts receivable:

September 30,

Distributor A

Distributor B

Distributor C

*Represents less than 10%

The Company derives a majority of its revenue from sales to customers located outside North America, with geographic revenue based on the customers’ ship-to locations.

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Country or Region

$ 397,951 $ 282,514 $ 761,671 $ 545,554

104,970 127,396 221,311 227,846

63,501 39,513 127,865 75,050

Southeast Asia

34,867 11,352 67,573 24,591

26,497 19,105 51,489 36,847

18,536 13,552 38,637 26,500

18,127 13,927 33,376 28,747

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):

$ 288,191 $ 237,649

172,169 171,514

51,139 42,388

52,386 43,394

$ 563,885 $ 494,945

September 30,

COMMITMENTS AND CONTINGENCIES

6 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Balance at beginning of period

$ 3,525 $ 12,873 $ 5,401 $ 16,906

Warranties issued

700 2,225 790 2,325

Repairs, replacement and refund

( 689 ) ( 116 ) ( 1,488 ) ( 4,130 )

Changes in liability for pre-existing warranties

( 491 ) ( 280 ) ( 1,658 ) ( 399 )

Balance at end of period

$ 3,045 $ 14,702 $ 3,045 $ 14,702

Changes in liability for pre-existing warranties result from changes in estimates for warranties issued in prior periods.

Purchase Commitments

2 unchanged sentences

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 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)

As of September 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 September 30, 2025 were as follows (in thousands):

2025 (remaining three 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.

2 unchanged sentences

The Company defends itself vigorously against any such claims.

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

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

CASH, CASH EQUIVALENTS, INVESTMENTS AND RESTRICTED CASH

The following is a summary of the Company’s cash, cash equivalents and debt investments (in thousands):

$ 414,800 $ 679,949

September 30,

Money market funds

372,582 11,867

treasuries and government agency bonds

Certificates of deposit

181,384 164,418

Corporate debt securities

treasuries and government agency bonds

Auction-rate securities backed by student-loan notes

$ 1,146,151 $ 863,094

Corporate debt securities

September 30,

Cash and cash equivalents

$ 787,382 $ 691,816

Short-term investments

358,695 171,130

Investment within short-term investments

Investment within other long-term assets

$ 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 June 30, 2025 (in thousands):

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

Amortized Cost

Due in less than 1 year

$ 261,048 $ 261,027

Due in 1 - 5 years

97,668 97,668

Due in greater than 5 years

$ 358,791 $ 358,769

Gross realized gains and losses recognized on the sales of available-for-sale investments were not material for the periods presented.

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

June 30, 2025

September 30, 2025

Amortized Cost

2 unchanged sentences

Money market funds

$ 372,582 $ - $ - $ 372,582

Certificates of deposit

181,384 - - 181,384

treasuries and government agency bonds

177,332 3 ( 24 ) 177,311

Auction-rate securities backed by student-loan notes

75 - ( 1 ) 74

$ 731,373 $ 3 $ ( 25 ) $ 731,351

December 31, 2024

2 unchanged sentences

Money market funds

$ 11,867 $ - $ 11,867

Certificates of deposit

164,418 - 164,418

Corporate debt securities

6,779 ( 67 ) 6,712

Auction-rate securities backed by student-loan notes

150 ( 2 ) 148

$ 183,214 $ ( 69 ) $ 183,145

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):

June 30, 2025

Less than 12 Months

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

September 30, 2025

Greater than 12 Months

Unrealized Losses

treasuries and government agency bonds

$ 128,607 $ ( 24 ) $ - $ - $ 128,607 $ ( 24 )

Auction-rate securities backed by student-loan notes

- - 74 ( 1 ) 74 ( 1 )

$ 128,607 $ ( 24 ) $ 74 $ ( 1 ) $ 128,681 $ ( 25 )

December 31, 2024

1 unchanged sentence

Unrealized Losses

Corporate debt securities

$ 6,712 $ ( 67 ) $ 6,712 $ ( 67 )

Auction-rate securities backed by student-loan notes

148 ( 2 ) 148 ( 2 )

$ 6,860 $ ( 69 ) $ 6,860 $ ( 69 )

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

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.

As of September 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.

3 unchanged sentences

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the amounts reported on the Condensed Consolidated Statements of Cash Flows (in thousands):

September 30,

Cash and cash equivalents

$ 787,382 $ 691,816

Restricted cash included in other long-term assets

Total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Statements of Cash Flows

$ 787,524 $ 691,941

FAIR VALUE MEASUREMENTS

8 unchanged sentences

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

June 30, 2025

September 30, 2025

Money market funds

$ 372,582 $ 372,582 $ - $ -

Certificates of deposit

181,384 - 181,384 -

treasuries and government agency bonds

177,311 - 177,311 -

Auction-rate securities backed by student-loan notes

Mutual funds and money market funds under deferred compensation plan

68,721 68,721 - -

$ 800,072 $ 441,303 $ 358,695 $ 74

December 31, 2024

Money market funds

$ 11,867 $ 11,867 $ - $ -

Certificates of deposit

164,418 - 164,418 -

Corporate debt securities

6,712 - 6,712 -

Auction-rate securities backed by student-loan notes

Mutual funds and money market funds under deferred compensation plan

65,337 65,337 - -

$ 248,482 $ 77,204 $ 171,130 $ 148

Redemptions and changes in the fair value of the auction-rate securities classified as Level 3 assets were not material for the periods presented.

1 unchanged sentence

The following table summarizes the deferred compensation plan balances on the Condensed Consolidated Balance Sheets (in thousands):

September 30,

Deferred compensation plan asset components:

Cash surrender value of corporate-owned life insurance policies

$ 29,110 $ 27,249

Fair value of mutual funds and money market funds

68,721 65,337

$ 97,831 $ 92,586

Deferred compensation plan assets reported in:

Other long-term assets

$ 97,831 $ 92,586

Deferred compensation plan liabilities reported in:

Accrued compensation and related benefits

$ 3,480 $ 2,323

Other long-term liabilities

94,606 93,653

$ 98,086 $ 95,976

OTHER INCOME, NET

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,

Three Months Ended September 30,

Nine Months Ended September 30,

Interest income

$ 6,043 $ 6,630 $ 11,740 $ 13,544

Amortization of discount on available-for-sale securities

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 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.

The budget reconciliation bill H.R.1 (“H.R.1 Act”) signed into law on July 4, 2025 makes permanent certain expiring provisions of the 2017 Tax Cuts and Jobs Act and makes modifications to the existing tax framework.

The modifications that primarily impact the Company for the current year are the immediate expensing of domestic R&D and 100% bonus depreciation.

The Company’s tax provision for the three and nine months ended September 30, 2025 includes the estimated impact of the H.R.1 Act.

The income tax expense for the three months ended September 30, 2025 was $ 27.3 million, or 13.3 % of pre-tax income.

The income tax expense for the nine months ended September 30, 2025 was $ 110.7 million, or 19.9 % of pre-tax income.

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

federal tax law changes enacted during the quarter, income generated by the Company’s subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The lower effective tax rates relative to the federal statutory rate were partially offset by the U.S.

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

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 income tax expense for the three months ended September 30, 2024 was $ 29.9 million, or 17.1 % of pre-tax income.

The income tax expense for the nine months ended September 30, 2024 was $ 66.0 million, or 16.4 % 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.

The lower effective tax rates relative to the federal statutory rate were partially offset by the U.S.

impact of foreign earnings.

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.

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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 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.

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

ACCUMULATED OTHER COMPREHENSIVE LOSS

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Balance as of June 30, 2025

Other comprehensive income before reclassifications

Net current period other comprehensive income

Balance as of September 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.

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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,

Three Months Ended September 30,

Nine Months Ended September 30,

Dividend declared per share

$ 1.56 $ 1.25 $ 3.12 $ 2.50

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

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

As of September 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.

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The Company’s RSUs contain rights to receive cash dividend equivalents, which entitle employees who hold RSUs to the same dividend value per share as holders of common stock.

The dividend equivalents are accumulated and paid to the employees when the underlying RSUs vest.

The dividend equivalents are accumulated and paid to the employees after the underlying RSUs vest.

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

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

As of September 30, 2025 and December 31, 2024 , accrued dividend equivalents totaled $ 8.6 million and $ 5.8 million, respectively.

Stock Repurchase Programs

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Shares are retired upon repurchase.

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.

The Company repurchased 2,000 and 6,000 shares of its common stock for an aggregate purchase price of $ 2.1 million and $ 5.5 million during the three months ended September 30, 2025 and 2024, respectively.

The Company repurchased 6,000 and 19,000 shares of its common stock for an aggregate purchase price of $ 4.7 million and $ 14.2 million during the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, $ 495.3 million remained available for future repurchases under the program.

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.

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

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

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the expected impact of various U.S.

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;

and international tax laws and regulations, including the 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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These forward-looking statements generally are identified by the words “would,” “could,” “may,” “should,” “predict,” “potential,” “targets,” “continue,” “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” “project,” “forecast,” “will,” and similar expressions.

All forward-looking statements are based on our current outlook, expectations, estimates, projections, beliefs and plans or objectives about our business, our industry and the global economy, including our expectations regarding the potential impacts of macroeconomic factors, global economic uncertainties, including tariffs and retaliatory measures, and geopolitical tensions on the semiconductor industry and our business.

All forward-looking statements are based on our current outlook, expectations, estimates, projections, beliefs and plans or objectives about our business, our industry and the global economy, including our expectations regarding the potential impacts of macroeconomic factors, global economic uncertainties, including tariffs, export controls and retaliatory measures, and geopolitical tensions on the semiconductor industry and our business.

These statements are not guarantees of future performance and are subject to significant risks and uncertainties.

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We are subject to industry downturns, but we have targeted product and market areas that we believe allow us to operate at above average industry performance levels over the long term.

Historically, our revenue has generally been higher in the second half of the year than in the first half although various factors, such as market conditions and the timing of key product introductions, could impact this trend.

We work with third parties to manufacture and assemble our ICs.

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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 93% of our total revenue for each of the three and six months ended June 30, 2025 and 2024.

Our revenue from sales to customers in Asia was 91% and 94% of our total revenue for the three months ended September 30, 2025 and 2024, respectively, and 93% of our total revenue for each of the nine months ended September 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.

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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 retaliatory measures and announcements regarding same.

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, export controls and retaliatory measures and announcements regarding same.

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.

There have been no material changes during the nine months ended September 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except percentages)

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The following table summarizes our revenue by end market:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except percentages)

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Communications

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.

Revenue for the three months ended September 30, 2025 was $737.2 million, an increase of $117.1 million, or 18.9%, from $620.1 million for the three months ended September 30, 2024.

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

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.

For the three months ended September 30, 2025, revenue from the storage and computing market increased $42.6 million, or 29.6%, from the same period in 2024.

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

Revenue from the enterprise data market increased $7.0 million, or 3.8%, from the same period in 2024.

Revenue from the automotive market increased $40.2 million, or 36.1%, 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 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 artificial intelligence (“AI”) applications, partially offset by higher sales of our power management solutions for server applications.

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

Revenue from the communications market increased $8.0 million, or 11.1%, 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 $8.0 million, or 12.4%, from the same period in 2024.

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 $11.3 million, or 25.6%, from the same period in 2024.

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.

Revenue for the nine months ended September 30, 2025 was $2,039.3 million, an increase of $453.9 million, or 28.6%, from $1,585.4 million for the nine months ended September 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.

For the nine months ended September 30, 2025, revenue from the storage and computing market increased $205.3 million, or 56.2%, 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 $155.9 million, or 54.6%, 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.

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

Revenue from the enterprise data market decreased $53.0 million, or 10.2%, 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 $63.2 million, or 39.0%, from the same period in 2024.

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Revenue from the industrial market increased $38.1 million, or 35.7%, 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 expense.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except percentages)

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As a percentage of revenue

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.

Cost of revenue was $330.9 million, or 44.9% of revenue, for the three months ended September 30, 2025, and $276.7 million, or 44.6% of revenue, for the three months ended September 30, 2024.

The $54.3 million increase in cost of revenue was primarily driven by higher shipment volume.

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.

Gross margin was 55.1% for the three months ended September 30, 2025, compared with 55.4% for the three months ended September 30, 2024.

The decrease in gross margin was mainly driven by product mix.

Cost of revenue was $913.8 million, or 44.8% of revenue, for the nine months ended September 30, 2025, and $709.0 million, or 44.7% of revenue, for the nine months ended September 30, 2024.

The $204.9 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.

Gross margin was 55.2% for the nine months ended September 30, 2025, compared with 55.3% for the nine months ended September 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.

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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except percentages)

As a percentage of revenue

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.

R&D expenses were $98.2 million, or 13.3% of revenue, for the three months ended September 30, 2025, and $85.1 million, or 13.7% of revenue, for the three months ended September 30, 2024.

The $13.1 million increase in R&D expenses was primarily due to an $8.9 million increase in cash compensation and benefits, a $1.2 million increase in stock-based compensation and related expenses, and a $1.1 million increase in laboratory and other supplies.

R&D expenses were $286.7 million, or 14.1% of revenue, for the nine months ended September 30, 2025, and $239.0 million, or 15.1% of revenue, for the nine months ended September 30, 2024.

The $47.7 million increase in R&D expenses was primarily due to a $29.0 million increase in cash compensation and benefits, a $6.3 million increase in new product development expenses, and a $4.1 million increase in laboratory and other supplies.

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, travel expenses, facilities costs, third party service fees and legal expenses.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except percentages)

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As a percentage of revenue

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.

SG&A expenses were $112.9 million, or 15.3% of revenue, for the three months ended September 30, 2025, and $94.4 million, or 15.2% of revenue, for the three months ended September 30, 2024.

The $18.5 million increase in SG&A expenses was primarily driven by an $8.3 million increase in cash compensation and benefits, and a $7.0 million increase in stock-based compensation and related expenses.

SG&A expenses were $310.1 million, or 15.2% of revenue, for the nine months ended September 30, 2025, and $261.4 million, or 16.5% of revenue, for the nine months ended September 30, 2024.

The $48.7 million increase in SG&A expenses was primarily driven by a $24.1 million increase in cash compensation and benefits, and a $15.8 million increase in stock-based compensation and related expenses.

Other Income, Net

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.

Other income, net, was $10.4 million for the three months ended September 30, 2025, compared with $10.3 million for the three months ended September 30, 2024.

Other income, net, was $27.7 million for the nine months ended September 30, 2025, compared with $27.3 million for the nine months ended September 30, 2024.

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 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.

The modifications that primarily impact us for the current year are the immediate expensing of domestic R&D and 100% bonus depreciation.

Our tax provision for the three and nine months ended September 30, 2025 includes the estimated impact of the H.R.1 Act.

The income tax expense for the three months ended September 30, 2025 was $27.3 million, or 13.3% of pre-tax income.

The income tax expense for the nine months ended September 30, 2025 was $110.7 million, or 19.9% of pre-tax income.

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

federal tax law changes enacted during the quarter, income generated by our subsidiaries in lower tax jurisdictions, foreign tax credits, and U.S.

The lower effective tax rates relative to the federal statutory rate were partially offset by the U.S.

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

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 income tax expense for the three months ended September 30, 2024 was $29.9 million, or 17.1% of pre-tax income.

The income tax expense for the nine months ended September 30, 2024 was $66.0 million, or 16.4% 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.

The lower effective tax rates relative to the federal statutory rate were partially offset by the U.S.

impact of foreign earnings.

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

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In December 2023, the Bermuda CIT Act was enacted and signed into law.

See Note 13 for further details.

See Note 13 to our unaudited condensed consolidated financial statements for further details.

Liquidity and Capital Resources

September 30,

(In thousands, except percentages)

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Working capital

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.

As of September 30, 2025, we had cash and cash equivalents of $1,081.3 million and short-term investments of $188.2 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 September 30, 2025, $871.0 million of cash and cash equivalents and $154.5 million of short-term investments were held by our foreign subsidiaries.

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

with minimal tax impact.

We may repatriate additional cash from certain of our foreign subsidiaries in future periods to fund our expenditures.

We may repatriate additional cash from certain of our foreign subsidiaries in future periods.

We anticipate that earnings from other foreign subsidiaries will continue to be indefinitely reinvested.

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The following table summarizes our cash flow activities:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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Effect of change in exchange rates

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.

Net increase in cash, cash equivalents and restricted cash

For the nine months ended September 30, 2025, the $112.6 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.

For the nine months ended September 30, 2025, the $150.4 million decrease in net cash used in investing activities compared to the same period in 2024 was primarily due to a decrease of $545.9 million in purchases of investments, partially offset by a decrease of $395.2 million in sales of investments.

For the nine months ended September 30, 2025, the $21.7 million increase in net cash used in financing activities compared to the same period in 2024 was primarily due to an increase of $31.2 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 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.

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 $1,269.5 million as of September 30, 2025, along with cash generated by ongoing operations, will be sufficient to satisfy our liquidity requirements for at least the next 12 months.

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 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.

As of September 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 September 30, 2025, total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $60.0 million prepayment, were $499.3 million, of which $443.2 million was due within a year.

Operating Leases

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

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

As of September 30, 2025, these obligations totaled $18.9 million, of which $3.8 million was short-term.

Capital Return to Stockholders

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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 repurchased 6,000 shares of our common stock for an aggregate purchase price of $4.7 million during the nine months ended September 30, 2025.

As of September 30, 2025, $495.3 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 June 30, 2025, accrued cash dividends totaled $74.7 million.

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

As of September 30, 2025, these obligations totaled $102.3 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