What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-29 compared with 2025-07-30 · 123 added, 98 removed, 231 unchanged (49% of the section changed)

33 unchanged sentences

manufacturing, test, encoding and reading systems;

software and cloud services that encapsulate our solutions know-how;

software and services that encapsulate our solutions know-how;

and intellectual property.

8 unchanged sentences

Our reading systems comprise high-performance finished readers and gateways for autonomous reading solutions.

Our software and cloud services focus on solutions enablement.

Our software and services focus on solutions enablement.

We sell our products, individually or as a whole platform offering primarily with or through our partner ecosystem.

31 unchanged sentences

Similarly, in second-quarter 2021, we generated 13% of our revenue from a project-based gateway deployment for RAIN-based self-checkout and loss prevention at a large Europe-based global retailer.

While we continue generating project-based revenue, we have not seen it at a comparable scale in 2022 to 2024, or in the first half of 2025.

While we continue generating project-based revenue, we have not seen it at a comparable scale in 2022 to 2024, or in the first three quarters of fiscal year 2025.

Seasonality and Pricing

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System sales tend to be higher in the fourth quarter and lower in the first quarter, we believe due to the availability of residual funding for capital expenditures prior to the end of many end users’ fiscal years.

Quarter-to-quarter revenue and gross margin variability due to macroeconomic conditions, program-launch timing and our ability to migrate OEMs and end users to newer, lower cost products may impact these seasonal trends in the future.

In light of the 2025 macroeconomic environment, we are uncertain whether we will see these trends in 2025.

We did not see these seasonal trends in 2023 but began to see them in second half 2024 and into 2025.

We do expect continued quarter-to-quarter revenue and gross margin variability due to macroeconomic conditions, program-launch timing and our ability to migrate OEMs and end users to newer, lower cost products.

These variables, among others, may impact seasonal trends in the near term, given current retail uncertainty and other market dynamics, and in the future.

Results of Operations

The following table presents our results of operations for the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except percentages)

Income (loss) from operations

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Revenue and gross profit decreased, due primarily to lower endpoint IC revenue partially offset by higher systems revenue.

The endpoint IC revenue decrease was driven primarily by lower ASP when compared to the prior-year period.

Gross margin increased, due primarily to product mix within endpoint IC and an increase in high-margin licensing revenue compared to the prior-year period.

Income from operations increased, due primarily to decreased operating expenses, partially offset by decreased gross profit.

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Revenue and gross profit increased, due primarily to increased systems revenue partially offset by lower endpoint IC revenue.

The systems revenue increase was driven primarily by increased shipment volumes while the endpoint IC revenue decrease was driven primarily by lower ASP when compared to the prior-year period.

Gross margin was comparable to the prior-year period.

Income from operations increased, due primarily to increased revenue and decreased operating expenses.

The operating expense decrease was due to lower general and administrative and sales and marketing costs.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Revenue and gross profit decreased, due primarily to lower endpoint IC and systems revenue.

The endpoint IC revenue decrease was driven primarily by lower ASP when compared to the prior-year period and the systems revenue decrease was driven primarily by decreased shipment volumes when compared to the prior-year period.

Gross margin increased, due primarily to product mix within endpoint IC and an increase in high-margin licensing revenue compared to the prior-year period.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Revenue and gross profit decreased, due primarily to lower endpoint IC revenue, partially offset by higher systems revenue.

The endpoint IC revenue decrease was driven primarily by lower ASP when compared to the prior-year period and the systems revenue increase was driven primarily by increased shipment volumes when compared to the prior-year period.

Gross margin increased, due primarily to lower indirect costs in the current year compared to the prior-year period.

Income from operations increased, due primarily to decreased operating expenses, partially offset by decreased gross profit.

The operating expense decrease was due to lower sales and marketing costs, general and administrative costs, restructuring costs and amortization of intangibles, partially offset by increased research and development costs.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

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We expect endpoint IC sales to represent the majority of our revenue for the foreseeable future.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Endpoint IC revenue decreased $4.8 million, due to a $8.1 million decrease from lower ASP due to product mix and new customer pricing that went into effect at the beginning of the year, offset by a $2.2 million increase in shipment volumes and a $1.0 million increase in licensing revenue.

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Endpoint IC revenue decreased $2.2 million, due to a $7.5 million decrease from lower ASP due to product mix and new customer pricing that went into effect at the beginning of the year, offset by a $5.3 million increase in shipment volumes.

Systems revenue increased $3.0 million due primarily to an increase in shipment volumes.

Gateway revenue increased $1.1 million, reader revenue increased by $0.9 million, and test and measurement solutions revenue increased by $0.5 million.

Reader revenue increased by $3.5 million and gateway revenue increased $0.9 million.

These increases were partially offset by a decrease of $1.6 million in reader IC revenue.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Endpoint IC revenue decreased $7.2 million, due to a $24.6 million decrease from lower ASP due to product mix and new customer pricing that went into effect at the beginning of the year, offset by a $16.3 million increase in shipment volumes and a $1.0 million increase in licensing revenue.

Systems revenue decreased $2.1 million due primarily to a decrease in shipment volumes.

Gateway revenue decreased $1.8 million, reader IC revenue decreased $1.6 million, and test and measurement solutions revenue decreased by $0.5 million.

These decreases were partially offset by an increase of $2.0 million in reader revenue.

Systems revenue increased $1.0 million due primarily to an increase in shipment volumes.

Reader revenue increased by $5.5 million.

This increase was partially offset by decreases of $3.2 million in reader IC revenue, $0.9 million in gateway revenue and $0.7 million in test and measurement solutions revenue.

Gross Profit and Gross Margin

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 well as from inventory excess and obsolescence charges.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Gross profit increased, due primarily to increased systems revenue.

Gross margin increased, due primarily to lower indirect costs in the current year compared to the prior-year period.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Gross profit decreased, due primarily to decreased endpoint IC revenue.

Gross margin increased, due primarily to endpoint IC product mix, specifically a higher contribution from M800 and an increase in high-margin licensing revenue compared to the prior-year period.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Gross profit decreased, due primarily to decreased endpoint IC and systems revenue.

Gross margin increased, due primarily to endpoint IC product mix, specifically a higher contribution from M800, an increase in high-margin licensing revenue compared to the prior-year period, and lower indirect costs in the current year.

Gross margin increased, due primarily to lower indirect costs in the current year compared to the prior-year period.

Operating Expenses

Research and Development

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

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We expect research and development expense to increase in absolute dollars in future periods as we continue to focus on new product development and introductions.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Research and development expense decreased $0.3 million, due primarily to a decrease of $1.1 million in personnel expenses related to lower bonus achievement compared to the prior-year period, partially offset by an increase of $0.8 million in product development costs due to timing.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Research and development expense increased $0.2 million, due primarily to increases of $1.2 million in product development costs due to timing and an increase $0.8 million in infrastructure costs, partially offset by a decrease of $1.9 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Research and development expense increased $2.8 million, due primarily to increases of $2.6 million in product development costs due to timing;

$1.3 million in stock-based compensation expense, primarily related to increased outstanding equity grants;

and $0.9 million in infrastructure costs.

$1.7 million in infrastructure costs;

and $1.2 million in stock-based compensation expense, primarily related to increased outstanding equity grants.

These increases were partially offset by a decrease of $2.9 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

Sales and Marketing

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

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and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Sales and marketing expense decreased $1.1 million, due primarily to a decrease of $0.8 million in stock-based compensation expense related to timing of annual equity grants and lower expense resulting from the retirement of Chief Revenue officer in the first quarter of 2025, and a decrease of $0.4 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Sales and marketing expense decreased $3.2 million, due primarily to a decrease of $3.0 million in stock-based compensation expense, driven by forfeitures related to the company's Chief Revenue Officer retiring in the first quarter of fiscal year 2025 and the resulting lower ongoing expense, and a decrease of $0.4 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Sales and marketing expense decreased $0.5 million, due primarily to a decrease of $0.5 million in stock-based compensation expense related to timing of annual equity grants and lower expense resulting from the retirement of our Chief Revenue Officer in the first quarter of fiscal year 2025.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Sales and marketing expense decreased $3.7 million, due primarily to a decrease of $3.4 million in stock-based compensation expense, driven by forfeitures related to the retirement of our Chief Revenue Officer in the first quarter of fiscal year 2025 and the resulting lower ongoing expense, and a decrease of $0.5 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

General and Administrative

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

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and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

General and administrative expense decreased $1.4 million, due primarily to a decrease of $1.0 million in personnel expenses related to lower bonus achievement compared to the prior-year period and a decrease of $0.4 million in stock-based compensation expense related to timing of annual equity grants.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

General and administrative expense decreased $0.4 million, due primarily to a decrease of $1.0 million in personnel expenses related to lower bonus achievement compared to the prior-year period, partially offset by an increase of $0.2 million in stock-based compensation expense related to timing of annual equity grants and an increase of $0.2 million in professional services related to consulting fees.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

General and administrative expense decreased $2.8 million, due primarily to a decrease of $2.0 million in professional services related to legal fees and a decrease of $2.0 million in personnel expenses related to lower bonus achievement compared to the prior-year period.

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Amortization of Intangibles

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

Amortization of intangibles

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Amortization of intangibles was comparable for the periods.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Amortization of intangibles decreased $0.9 million.

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Restructuring Costs

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

Restructuring costs

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

There were no restructuring costs for the periods.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

The decrease in restructuring costs relates to the restructuring we initiated on February 7, 2024.

There were no restructuring costs for the six months ended June 30, 2025.

There were no restructuring costs for the nine months ended September 30, 2025.

See Note 11 Restructuring for further information.

Other Income, net

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

1 unchanged sentence

Other income, net, comprises primarily interest income on our short-term investments.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Other income, net, was comparable for the periods.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Other income, net, increased from the prior period due to increased interest income given higher invested balances and higher interest rates.

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Other income, net, increased from the prior period due to increased interest income given higher invested balances.

Income From Settlement of Litigation

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

Income from settlement of litigation

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

There was no income from settlement of litigation for the periods.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

The decrease in income from settlement of litigation is related to the litigation settlement we reached with NXP on March 13, 2024.

There was no income from litigation for the six months ended June 30, 2025.

There was no income from litigation for the nine months ended September 30, 2025.

See Note 6 Commitments and Contingencies for further information.

Induced Conversion Expense

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

Induced conversion expense

Three and nine months ended September 30, 2025 compared with three and nine months ended September 30, 2024

In September 2025, we completed a privately negotiated exchange of $190.0 million principal amount of the 2021 Convertible Notes, or the 2021 Note Exchange.

The 2021 Note Exchange transaction was accounted for as an induced conversion in accordance with Accounting Standards Codification 470-20, Debt with Conversion and Other Options (ASC 470-20), as amended for ASU 2024-04.

As a result of the induced conversion, we recorded $15.0 million in induced conversion expense which is included in the Consolidated Statements of Operations for the three and nine months ended September 30, 2025.

The induced conversion expense represents the fair value of the consideration issued upon conversion in excess of the fair value of the securities issuable under the original terms of the 2021 Convertible Notes.

See Note 7 Long-term Debt for further information.

Interest Expense

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

1 unchanged sentence

Interest expense comprises primarily cash interest and amortization of debt issuance costs on our debt.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Three months ended September 30, 2025 compared with three months ended September 30, 2024

Interest expense was comparable for the periods.

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Nine months ended September 30, 2025 compared with nine months ended September 30, 2024

Interest expense was comparable for the periods.

Income Tax Expense

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

1 unchanged sentence

We are subject to federal and state income taxes in the United States and foreign jurisdictions.

Income tax expense increased $0.2 million for the three months ended June 30, 2025 and income tax benefit increased $0.1 million for the six months ended June 30, 2025, each compared to the prior-year periods, due to changes in income (loss).

Income tax benefit increased $0.3 million for the three months ended September 30, 2025 and income tax benefit increased $0.4 million for the nine months ended September 30, 2025, each compared to the prior-year periods, due to changes in income (loss).

On July 4, 2025, President Trump signed H.R.

1, the “One Big Beautiful Bill Act”, into law.

In accordance with GAAP, the Company will account for the tax effects of changes in tax law in the period of enactment, which is third-quarter of calendar year 2025.

The Company is currently in the process of analyzing the tax impacts of the law change, but we do not expect a material impact on our financial statements.

One key provision, applicable to us, is the treatment of domestic research and experimental expenditures, which can now be capitalized or expensed currently.

We are currently evaluating the available implementation options and expect to finalize our approach in the fourth quarter of calendar year 2025.

In accordance with U.S.

GAAP, we have also assessed the impact of the OBBBA on our annual consolidated financial statements and related disclosures and do not expect a material impact given we have a full valuation allowance on our U.S.

deferred tax assets.

Liquidity and Capital Resources

As of June 30, 2025, we had cash, cash equivalents and short-term investments of $193.2 million, comprising cash deposits held at major financial institutions and short-term investments in a variety of securities, including U.S.

As of September 30, 2025, we had cash, cash equivalents and short-term investments of $190.1 million, comprising cash deposits held at major financial institutions and short-term investments in a variety of securities, including U.S.

government securities, treasury bills, corporate notes and bonds, commercial paper and money market funds.

As of June 30, 2025, we had working capital of $319.7 million.

As of September 30, 2025, we had working capital of $220.0 million.

Historically, we have funded our operations primarily through cash generated from operations and by issuing equity securities, convertible-debt offerings and/or borrowing under our prior senior credit facility.

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We can provide no assurance that any additional financing will be available to us on acceptable terms.

In November 2021, we issued convertible notes due 2027 in an aggregate principal amount of $287.5 million which we refer to as the 2021 Notes.

In November 2021, we issued convertible notes due 2027 in an aggregate principal amount of $287.5 million, or the 2021 Notes.

The 2021 Notes are our senior unsecured obligation, bearing interest at a fixed rate of 1.125% per year, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2022.

The 2021 Notes are convertible into cash, shares of our common stock or a combination thereof, at our election, and will mature on May 15, 2027 unless earlier repurchased, redeemed or converted in accordance with the indenture terms.

The net proceeds from the 2021 Notes were approximately $278.4 million after initial debt issuance costs, fees and expenses.

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We will use the rest of the net proceeds for general corporate purposes.

In September 2025, we completed a privately negotiated exchange of $190.0 million principal amount of the 2021 Convertible Notes, or the 2021 Note Exchange.

The 2021 Note Exchange was accounted for as an induced conversion in accordance with Accounting Standards Codification 470-20, Debt with Conversion and Other Options (ASC 470-20) and in accordance with ASU 2024-04:

Debt—Debt with Conversion and Other Options (Subtopic 470-20) - Induced Conversions of Convertible Debt Instruments, which we early adopted as of January 1, 2025.

In connection with the induced conversion, we paid $190.0 million in cash, representing the principal amount exchanged, issued approximately 811,000 shares of our common stock, representing the exchange value in excess thereof, and also paid accrued and unpaid interest thereon.

For further information on the terms of this debt, please refer to Note 7 to our condensed consolidated financial statements included elsewhere in this report.

In September 2025, we issued convertible notes due 2029 in an aggregate principal amount of $190.0 million, or the 2025 Notes.

The 2025 Notes are our senior unsecured obligation, bearing no regular interest.

The 2025 Notes are convertible into cash, shares of our common stock or a combination thereof, at our election, and will mature on September 15, 2029 unless earlier repurchased, redeemed or converted in accordance with the terms of the Indenture governing the 2025 Notes.

The net proceeds from the 2025 Notes were approximately $183.6 million after initial debt issuance costs, fees and expenses.

We used the net proceeds and cash on hand to exchange $190.0 million aggregate principal amount of the 2021 Notes for approximately $190.0 million in cash, representing the principal amount exchanged, and approximately 811,000 shares of our common stock, representing the exchange value in excess thereof, and also paid accrued and unpaid interest thereon, in individual privately negotiated transactions concurrent with the 2025 Notes offering.

In addition, we used approximately $11.2 million of cash on hand to pay the cost of the capped call transactions entered into in connection with the issuance of the 2025 Notes.

For further information on the terms of this debt, please refer to Note 7 to our condensed consolidated financial statements included elsewhere in this report.

The following table shows a summary of our cash flows for the periods indicated:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands)

Net cash provided by operating activities

Net cash provided by (used in) investing activities

Net cash provided by financing activities

Net cash used in investing activities

Net cash provided by (used in) financing activities

Operating Cash Flows

For the six months ended June 30, 2025, we generated $22.7 million of net cash proceeds from operating activities.

These net cash proceeds were due primarily to $35.4 million of net income adjusted for non-cash items.

partially offset by a $12.7 million decrease in working capital due primarily to higher accrued compensation and accounts payable.

For the nine months ended September 30, 2025, we generated $43.6 million of net cash proceeds from operating activities.

These net cash proceeds were due primarily to $55.6 million of net income adjusted for non-cash items, partially offset by a $12.0 million decrease in working capital due primarily to lower accrued compensation.

Investing Cash Flows

For the six months ended June 30, 2025, we used $31.7 million of net cash for investing activities.

This net cash was used for purchases of investments of $107.1 million and equipment purchases of $8.4 million, partially offset by cash generated from investment maturities of $83.8 million.

For the nine months ended September 30, 2025, we used $29.2 million of net cash for investing activities.

This net cash was used for purchases of investments of $146.3 million and equipment purchases of $11.3 million, partially offset by cash generated from investment maturities and sales of $128.4 million.

Financing Cash Flows

For the six months ended June 30, 2025, we generated $5.0 million of net cash from financing activities.

These net cash proceeds were due to stock-option exercises and our employee stock purchase plan, offset by $1.8 million taxes paid to cover RSU vesting.

For the nine months ended September 30, 2025, we used $9.1 million of net cash from financing activities.

This net cash was used for payment of our 2021 Notes of $190 million, premiums paid for capped call transactions of $11.2 million and $2.6 million in taxes paid to cover RSU vesting.

This net cash usage was offset by $183.7 million of net proceeds from issuance of our 2025 Notes and $11.0 million of proceeds from stock-option exercises and our employee stock purchase plan.

Cash Requirements and Contractual Obligations

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Our operating expenses have generally increased as we invest in developing products and technologies that we believe have the potential to drive long-term business growth.

Convertible Notes – As of June 30, 2025, the principal balance outstanding on the 2021 Notes is $287.5 million.

Refer to Note 7 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for maturity date, stated interest rate and additional information on our 2021 Notes.

Convertible Notes – As of September 30, 2025, the principal balance outstanding on the 2021 Notes and 2025 Notes is $97.5 million and $190.0 million, respectively.

Refer to Note 7 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for maturity date, stated interest rate and additional information on the Notes.

Operating Lease Obligations – Our lease portfolio comprises primarily operating leases for our office space.

For additional information regarding our operating leases, see Note 11 of our Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024.

Purchase Commitments – Purchase commitments as of June 30, 2025 total $29.9 million and comprise noncancelable commitments to purchase inventory.

Purchase Commitments – Purchase commitments as of September 30, 2025 total $24.6 million and comprise noncancelable commitments to purchase inventory.

Off-Balance-Sheet Arrangements

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We evaluate our estimates and assumptions on an ongoing basis.

Our estimates are based on

historical experience and various other assumptions that we believe to be reasonable under the circumstances.

Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances.

Our actual results could differ from these estimates and assumptions.

7 unchanged sentences

We do not enter into investments for trading or speculative purposes.

We had cash, cash equivalents and short-term investments of $193.2 million as of June 30, 2025.

We had cash, cash equivalents and short-term investments of $190.1 million as of September 30, 2025.

Our investments are exposed to market risk due to fluctuations in prevailing interest rates, which may reduce the yield on our investments or their fair value.

16 unchanged sentences

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 2. Management’s Discussion and Analysis