What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 94 added, 80 removed, 118 unchanged (60% of the section changed)

7 unchanged sentences

Factors that could cause actual results to differ materially from those predicted include, but are not limited to:

● The demand for our products declining in the major end markets we serve and the ability of our products to penetrate additional markets;

which may occur due to competitive factors, supply-chain fluctuations, rising inflation or other changes in macroeconomic or geopolitical conditions;

• The demand for our products declining in the major end markets we serve, which may occur due to competitive factors, supply chain fluctuations, rising inflation, or other changes in macroeconomic or geopolitical conditions;

• our inability to penetrate new markets for our products;

• the volume and timing of orders received from customers;

● our ability to develop and bring to market new products and technologies, including on a timely basis;

● reliance on international sales activities for a substantial portion of our net revenue;

● the lengthy timing of our sales cycle;

● sales of our products through distributors, which limits our direct interaction with our end customers, reducing our ability to forecast sales and increasing the complexity of our business;

• our ability to develop and bring new products and technologies to market, including on a timely basis;

• reliance on international sales activities for a substantial portion of our revenue;

• the length of our sales cycle;

• the significant sales of our products through distributors, which limits our direct interaction with our end customers, reducing our ability to forecast sales, and increasing the complexity of our business;

• the cyclical nature of the power supply industry and cyclical market patterns across different end markets for which our products are used;

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• the inability to adequately protect or enforce our intellectual property rights;

● we have been and may be subject to or involved in litigation, threatened litigation or other disputes, the outcome of which may be difficult to predict, and which may be costly to defend, divert management attention, require us to pay damages or other payments, or restrict the operation of our business;

● expenses we are required to incur (or choose to incur) in connection with litigation;

• we have been and may be subject to or involved in litigation, threatened litigation, or other disputes, the outcome of which may be difficult to predict, and which may be costly to defend, divert management attention, require us to pay damages, or restrict the operation of our business;

• changes in tax rules and regulations, changes in interpretation of tax rules and regulations, or unfavorable assessments from tax audits may increase the amount of taxes we are required to pay and require management time and attention;

● changes in environmental laws and regulations, including with respect to energy consumption and climate change;

• continued impact of changes in securities laws and regulations, including potential risks resulting from our evaluation of our internal controls over financial reporting;

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• our ability to successfully integrate, or realize the expected benefits from, our acquisitions.

Power Integrations is a leading innovator in semiconductor technologies for high-voltage power conversion.

We are a leading innovator in semiconductor technologies for high-voltage power conversion.

Our products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts.

Our net revenue was $108.3 million and $105.5 million in the three months ended March 31, 2026 and 2025, respectively.

The increase in net revenue for the three-months period was primarily due to higher sales in the industrial end-market.

Our top ten customers, including distributors that resell to OEMs and merchant power-supply manufacturers, accounted for approximately 80% of our net revenue for both of the three months ended March 31, 2026 and 2025.

International sales accounted for approximately 98% and 99% of our net revenue for the three months ended March 31, 2026 and 2025, respectively.

Our gross margin was 53% for the three months ended March 31, 2026 and 55% in the corresponding period in 2025.

The decrease in gross margin was primarily due to the unfavorable impact of the dollar/yen exchange rate and restructuring related costs.

Total operating expenses were $55.5 million and $51.5 million for the three months ended March 31, 2026 and 2025, respectively.

The increase in operating expenses for the three-month period was primarily due to restructuring and related charges of $6.6 million for severance and benefit costs associated with the workforce reduction described in Note 4 of this report herein.

These increases were offset in the three months ended March 31, 2026, by a $1.4 million credit in other operating expenses related to stock-based compensation expense associated with the changes in performance criteria measurement as described in Note 7 of this report herein.

Our revenue was $118.9 million and $115.9 million in the three months ended June 30, 2026 and 2025, respectively, and $227.2 million and $221.4 million in the six months ended June 30, 2026 and 2025, respectively.

The increase in revenue for the three- and six-month periods reflected higher sales in the industrial end market.

Our top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 82% and 81% of our revenue for the three and six months ended June 30, 2026 and approximately 81% in each of the corresponding periods of 2025.

International sales accounted for approximately 98% of our revenue for each of the three and six months ended June 30, 2026, respectively, and 98% and 99%, respectively, in the corresponding periods of 2025.

Our gross margin was 54% and 55% for the three months ended June 30, 2026 and 2025, respectively, and 53% and 55% for the six months ended June 30, 2026 and 2025, respectively.

The decrease in gross margin was primarily due to less favorable customer and product mix related to increased sales of lower margin products and decreased sales of higher margin products as well as less favorable impact of the dollar/yen exchange rate on our wafer costs and, for the six-month period, restructuring costs recorded in cost of sales.

Total operating expenses were $55.7 million and $65.3 million for the three months ended June 30, 2026 and 2025, respectively, and $111.2 million and $116.8 million for the six months ended June 30, 2026 and 2025, respectively.

The decrease in operating expenses for the three- and six-month periods was primarily due to a non-recurring expense related to an employee litigation matter that occurred in the prior-year period as described in Note 11 Commitments and Contingencies of this report.

These decreases were partially offset by restructuring and related charges for severance and benefit costs associated with the workforce reduction described in Note 13 Restructuring of this report.

Our management team continuously evaluates operations to better align our organization with market opportunities, increase operational efficiency, decrease costs and increase profitability.

In connection with this, a restructuring plan was undertaken in the first quarter of 2026, reducing the Company’s workforce by approximately 7% to better align our expenses with revenue and create flexibility to invest in the products, people, and markets that are expected to drive long-term growth and profitability.

As a result, we recognized restructuring charges of $6.6 million

during the first quarter of 2026, primarily composed of severance costs.

As a result, we recognized restructuring charges of $6.6 million during the first quarter of 2026, primarily composed of severance costs.

The restructuring plan was substantially completed in the first quarter of 2026.

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Under future programs authorized by our Board of Directors, we may repurchase shares of our common stock in the open-market or through privately negotiated transactions.

The extent to which we repurchase our stock and the timing of such repurchases will depend upon market conditions, legal rules and regulations and other corporate considerations, as determined by our management team.

During the three months ended March 31, 2026, we returned $12.0 million of capital to stockholders through the payment of cash dividends.

The extent to which we repurchase our stock and the timing of such repurchases will depend upon market conditions, the rules and regulations governing repurchases and other corporate considerations, as determined by our management team.

During the three and six months ended June 30, 2026, we returned $11.9 million and $23.8 million, respectively, of capital to stockholders through the payment of cash dividends.

We continue to monitor the environment for potential long-term impact on supply and demand from tariffs.

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The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (“U.S.

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

GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the

financial statements and the reported amounts of revenue and expenses during the reporting period.

On an ongoing basis, we evaluate our estimates, including those listed below.

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net revenue 100.0 % 100.0 % 100.0 % 100.0 %

Cost of revenue 45.7 44.8 46.5 44.8

Gross profit 54.3 55.2 53.5 55.2

Operating expenses:

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Selling, general and administrative 23.6 26.0 23.1 26.0

Other operating expenses

Other operating expenses (income) 0.4 7.9 (0.4) 4.1

Restructuring and related charges — — 2.7 —

Total operating expenses 46.8 56.3 48.9 52.7

Income from operations

Income (loss) from operations 7.5 (1.1) 4.6 2.5

Other income 2.0 2.3 2.1 2.6

Income before income taxes 9.5 1.2 6.7 5.1

Provision for income taxes

Comparison of the three months ended March 31, 2026 and 2025

Provision for (benefit from) income taxes 1.2 — 0.9 0.5

Net income 8.3 % 1.2 % 5.8 % 4.6 %

Comparison of the three and six months ended June 30, 2026 and 2025

Net revenue consists of revenue from product sales, net of returns and allowances.

Net revenue for the three months ended March 31, 2026 was $108.3 million compared to $105.5 million in the corresponding period of 2025.

The increase was due primarily to higher sales in the industrial end-market.

Our revenue mix by end market for the three months ended March 31, 2026 and 2025 was as follows:

Net revenue for the three and six months ended June 30, 2026 was $118.9 million and $227.2 million, respectively, and $115.9 million and $221.4 million, respectively, in the corresponding periods of 2025.

The increases in net revenue for the three- and six-month periods were due to higher sales in the industrial end-market.

Our revenue mix by end market for the three and six months ended June 30, 2026 and 2025 was as follows:

Three Months Ended

June 30, Six Months Ended

End Market 2026 2025 2026 2025

Communications 10 % 11 % 10 % 10 %

International sales, consisting of sales outside of the United States based on “bill to” customer locations, were $106.5 million in the three months ended March 31, 2026, and $104.2 million in the corresponding period of 2025.

Computer 11 % 12 % 11 % 12 %

Consumer 36 % 37 % 37 % 41 %

Industrial 43 % 40 % 42 % 37 %

International sales, consisting of sales outside of the United States of America based on “bill to” customer locations, were $116.9 million and $223.4 million in the three and six months ended June 30, 2026, respectively, and $114.0 million and $218.2 million, respectively, in the corresponding periods of 2025.

Although power converters using our products are distributed to end markets worldwide, most are manufactured in Asia.

As a result, sales to this region represented approximately 80% of our net revenue in the three months ended March 31, 2026, and 84% in the corresponding period of 2025.

As a result, sales to this region represented approximately 81% of our net revenue in each of the three and six months ended June 30, 2026 and approximately 84% in each of the corresponding periods of 2025.

We expect international sales, and sales to the Asia region in particular, to continue to account for a large portion of our net revenue in the future.

Sales to distributors accounted for approximately 71% of our net revenue in both of the three months ended March 31, 2026 and 2025.

Sales to distributors accounted for approximately 72% of our net revenue in each of the three and six months ended June 30, 2026, respectively, and approximately 70% and 71%, respectively, in the corresponding periods of 2025.

Direct sales to OEMs and merchant power-supply manufacturers accounted for the remainder.

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Our cost of revenue consists primarily of the purchase of wafers from our contracted foundries, the assembly, packaging and testing of our products by sub-contractors, product testing performed in our own facility, overhead associated with the management of our supply chain and the amortization of acquired intangible assets.

The following table compares gross profit and gross margin for the three months ended March 31, 2026 and 2025:

The following table compares gross profit and gross margin for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

The decrease in gross margin was primarily due to the unfavorable impact of the dollar/yen exchange rate and restructuring related costs.

Net revenue $ 118.9 $ 115.9 $ 227.2 $ 221.4

Gross profit $ 64.6 $ 64.0 $ 121.6 $ 122.2

Gross margin 54.3 % 55.2 % 53.5 % 55.2 %

Research and development expenses.

Research and development (“R&D”) expenses consist primarily of employee-related expenses including salaries and stock-based compensation, as well as expensed material and facility costs associated with the development of new processes and products.

Research and development (“R&D”) expenses consist primarily of employee compensation including salaries and stock-based compensation, as well as expensed material and facility costs associated with the development of new processes and products.

We also record R&D expenses for prototype wafers related to new products until the products are released to production.

The following table compares R&D expenses for the three months ended March 31, 2026 and 2025:

The following table compares R&D expenses for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

Research and development expenses $ 27.2 $ 26.0 $ 53.4 $ 50.1

R&D expenses increased for the three months ended March 31, 2026 as compared to the corresponding period of 2025.

As described in Note 4 Restructuring of this report herein, $3.0 million of application engineer project costs have been recognized in the three months ended March 31, 2026 related to customer product development projects.

This increase was partially offset by lower stock-based compensation expense and by lower equipment-related expenses.

R&D expenses increased for the three and six months ended June 30, 2026 compared to the corresponding period of 2025, primarily due to application engineer project costs related to customer product development projects as described in Note 13 Restructuring of this report, as well as increased product-development expenses.

These increases were partially offset by lower equipment-related expenses and lower stock-based compensation expenses.

Selling, General and Administrative.

Selling, general and administrative (“SG&A”) expenses consist primarily of employee‑related expenses, including salaries, commissions and stock‑based compensation for personnel across our sales representatives, administration, finance, human resources, and general management functions.

Selling, general and administrative (“SG&A”) expenses consist primarily of employee compensation including salaries, commissions and stock‑based compensation for personnel across our sales representatives, administration, finance, human resources, and general management functions.

SG&A expenses also include facilities‑related costs associated with our regional sales and support offices, as well as consulting, professional

services, legal and auditing expenses.

The following table below compares SG&A expenses for the three months ended March 31, 2026 and 2025:

The following table below compares SG&A expenses for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

Selling, general and administrative expenses $ 28.1 $ 30.2 $ 52.5 $ 57.6

SG&A expenses decreased for the three months ended March 31, 2026 as compared to the corresponding period of 2025 primarily related to the restructuring actions taken in the three-months ended March 31, 2026 as described in Note 4 Restructuring of this report herein.

SG&A expenses decreased for the three and six months ended June 30, 2026 compared to the corresponding periods of 2025 primarily due to the restructuring actions taken in the three months ended March 31, 2026 as described in Note 13 Restructuring of this report .

The decrease was partially offset by increases in professional legal services.

Other operating expenses.

Other operating expenses were a credit of $1.4 million in the three months ended March 31, 2026 related to the equity award modification associated with the retirement of our former chief executive officer (refer to Note 7, Stockholders’ Equity , in our Notes to Unaudited Condensed Consolidated Financial Statements for details).

Other operating expenses were $0.5 million in the three months ended June 30, 2026 and a credit of $0.9 million in the six months ended June 30, 2026.

These items relate to the quarterly remeasurement of unvested equity awards associated with our retired former chief executive officer.

Refer to Note 8 Stockholders' Equity of this report for details.

Restructuring and related charges .

Restructuring and related charges were $6.6 million in the three months ended March 31, 2026.

The charges were primarily related to severance and benefit costs associated with the workforce reduction described in Note 4 Restructuring.

Restructuring and related charges were $6.6 million in the six months ended June 30, 2026.

The charges were primarily related to severance and benefit costs associated with the workforce reduction described in Note 13 Restructuring of this report.

Other income .

Other income consists primarily of interest income earned on cash and cash equivalents, marketable securities and other short-term investments, and the impact of foreign exchange gains or losses.

The table below compares other income for the three months ended March 31, 2026 and 2025:

The table below compares other income for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

Other income decreased for the three months ended March 31, 2026 as compared to the corresponding period of 2025 primarily due to lower interest income.

Other income $ 2.3 $ 2.7 $ 4.8 $ 5.9

Other income decreased for the three and six months ended June 30, 2026 as compared to the corresponding period of 2025 primarily due to lower interest income.

Provision for income taxes .

Provision for income taxes represents federal, state and foreign taxes.

The table below compares income-tax expense for the three months ended March 31, 2026 and 2025:

The table below compares income-tax expense for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

Provision for income taxes

Provision for (benefit from) income taxes $ 1.4 $ — $ 2.0 $ 1.1

Effective tax rate 12.5 % (1.8) % 13.3 % 9.5 %

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Accordingly, the interim effective tax rate may not be reflective of the annual estimated effective tax rate.

Our effective tax rate for the three months ended March 31, 2026, was 15.8%, and 11.1% in the corresponding period of 2025.

The effective tax rate in these periods was lower than the statutory federal income-tax rate of 21% due to the geographic distribution of our world-wide earnings in lower-tax jurisdictions and the impact of federal tax credits.

In the three months ended March 31, 2026, our effective tax rate was affected by the recognition of a tax accounting shortfall associated with share-based payments.

Additionally, i n the three months ended March 31, 2025, our effective tax rate was unfavorably impacted by the recognition of share-based payments and foreign income subject to U.S.

Our effective tax rates for the three and six months ended June 30, 2026 were 12.5% and 13.3%, respectively, and (1.8%) and 9.5%, in the corresponding periods of 2025.

For the three months ended June 30, 2026, our effective tax rate benefited from a tax accounting windfall related to share-based payments.

For the six months ended June 30, 2026, our effective tax rate was adversely affected by a tax accounting shortfall related to share-based payments.

In the three and six months ended June 30, 2025, our effective tax rate was adversely affected by the recognition of a tax deficiency or “shortfall” related to share-based payments.

We have not been granted any incentivized tax rates and do not operate under any tax holidays in any jurisdiction.

Liquidity and Capital Resources

As of March 31, 2026, we had $257.2 million in cash, cash equivalents and short-term investments, an increase of $7.7 million from $249.5 million as of December 31, 2025.

As of March 31, 2026, we had working capital, defined as current assets less current liabilities, of $391.8 million, an increase of approximately $3.8 million from $388.0 million as of December 31, 2025.

As of June 30, 2026, we had $262.6 million in cash, cash equivalents and short-term investments, an increase of $13.1 million from $249.5 million as of December 31, 2025.

As of June 30, 2026, we had working capital, defined as current assets less current liabilities, of $404.5 million, an increase of approximately $16.5 million from $388.0 million as of December 31, 2025.

In 2016, we entered into the Prior Credit Agreement with Wells Fargo Bank, National Association, which provided us with a $75.0 million revolving line of credit to use for general corporate purposes and a $20.0 million sub-limit for the issuance of standby and trade letters of credit with an interest rate based on SOFR.

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The PNC Loan Agreement requires us to maintain a Minimum Liquidity of at least $50.0 million as of the last day of each fiscal quarter and a ratio of Funded Indebtedness to Adjusted EBITDA of less than 2.00 to 1.00 as of the last day of each fiscal quarter and determined on a rolling four-quarter basis.

The PNC Loan Agreement contains representations and warranties, affirmative covenants and conditions precedent to borrowing usual and customary for credit agreements of this type.

The PNC Loan Agreement contains negative covenants, including negative covenants that restrict, subject to certain exceptions, our ability to:

● use the proceeds of any credit extended under the PNC Loan Agreement except to refinance all indebtedness outstanding under the Prior Credit Agreement and for working capital or other general business purposes;

● create, incur, assume or permit to exist any indebtedness or liabilities resulting from borrowings, loans or advances;

● mortgage, pledge, grant or permit to exist a security interest in, or lien upon, all or any portion of our assets;

● guarantee or become liable for any obligations or liabilities of any other person or entity;

● purchase or hold beneficially any stock, or other securities or evidence of indebtedness of, or make or have outstanding, any loans or advances to, or otherwise extend credit to, or make any investment or acquire any interest whatsoever in, any other person, firm, corporation or other entity;

● liquidate, dissolve, merge or consolidate with or into any person, firm, corporation or other entity, or make acquisitions of all or substantially all of the property or assets of any person, firm, corporation or other entity, or sell, lease, transfer or otherwise dispose of all or a substantial part of our property, assets, operations or business.

We were compliant with all covenants and had no advances outstanding under the PNC Loan Agreement as of April 10, 2026.

The PNC Loan Agreement contains representations and warranties, affirmative covenants and conditions precedent to borrowings that are usual and customary for credit agreements of this type.

The PNC Loan Agreement contains certain limited covenants that restrict, subject to certain exceptions, our ability to incur additional indebtedness or liens, guarantee or become liable for obligations of other persons or entities, liquidate, dissolve, merge or consolidate with any other entity or convey, transfer or lease our properties or assets to another person, which, in each case, are subject to certain qualifications and exceptions.

We were compliant with all covenants and had no advances outstanding under the PNC Loan Agreement as of June 30, 2026 .

Cash from Operating Activities

Our operating activities generated $20.0 million of cash in the three months ended March 31, 2026.

Our operating activities generated $42.0 million of cash in the six months ended June 30, 2026.

Net income for this period was $13.1 million;

we also incurred non-cash depreciation, stock-based compensation expense, amortization of intangibles and accretion of discount on investments of $6.4 million, $6.3 million, $0.2 million and $0.2 million, respectively.

Sources of cash included a $3.9 million decrease in inventories, a $3.8 million decrease in accounts receivable due to timing of receipts and $3.4 million decrease in prepaid expenses and other assets.

These sources of cash were

partially offset by a $4.1 million decrease in accounts payable (excluding payables related to property and equipment) due to timing of payments and a $3.1 million decrease in other accrued liabilities.

Our operating activities generated $26.4 million of cash in the three months ended March 31, 2025.

we also incurred non-cash stock-based compensation expense, depreciation and a decrease in deferred tax assets of $17.6 million, $12.6 million and $1.8 million, respectively.

Sources of cash included a $9.1 million decrease in inventories and a $3.9 million decrease in prepaid expenses and other assets.

These sources of cash were partially offset by an $8.5 million increase in accounts receivable due to timing of receipts and a $7.2 million decrease in accounts payable (excluding payables related to property and equipment) due to timing of payments.

Our operating activities generated $55.5 million of cash in the six months ended June 30, 2025.

Net income for this period was $10.2 million;

we also incurred non-cash stock-based compensation expense and depreciation of $8.7 million and $7.2 million, respectively.

Sources of cash included a $4.7 million decrease in accounts receivable due to timing of receipts, an increase of $4.0 million in accounts payable (excluding payables related to property and equipment) due to timing of payments and a $3.4 million decrease in prepaid expenses and other assets.

These sources of cash were partially offset by a $3.9 million decrease in other accrued liabilities and a $3.5 million increase in inventories.

we also incurred non-cash stock-based compensation expense, depreciation and an increase in deferred tax assets of $18.8 million, $14.2 million and $0.9 million, respectively.

Sources of cash included a $10.0 million increase in other accrued liabilities and a $6.4 million decrease in prepaid expenses and other assets.

These sources of cash were partially offset by a $2.8 million increase in inventories.

Cash from Investing Activities

Our investing activities in the three months ended March 31, 2026, resulted in a $6.2 million net use of cash, primarily consisting of $4.2 million for purchases of investments, net of sales and maturities and $2.0 million for purchases of property and equipment (primarily production-related machinery and equipment).

Our investing activities in the three months ended March 31, 2025, generated $4.5 million of cash, primarily consisting of $10.3 million from sales and maturities of investments, net of purchases, offset by $5.7 million for purchases of property and equipment (primarily production-related machinery and equipment).

Our investing activities in the six months ended June 30, 2026, resulted in a $9.0 million net use of cash, primarily consisting of $2.7 million for purchases of investments, net of maturities and $6.3 million for purchases of property and equipment.

Our investing activities in the six months ended June 30, 2025 , generated $37.1 million of cash, primarily consisting of $48.8 million from sales and maturities of investments, net of purchases, partially offset by $11.7 million for purchases of property and equipment—primarily production-related machinery and equipment.

Cash from Financing Activities

Our financing activities in the three months ended March 31, 2026 resulted in a $9.3 million net use of cash, consisting of $12.0 million for the payment of dividends to stockholders, partially offset by proceeds of $2.7 million from the issuance of shares through our employee stock purchase plan.

Our financing activities in the three months ended March 31, 2025 resulted in a $32.3 million net use of cash, consisting of $23.1 million for the repurchase of our common stock and $12.0 million for the payment of dividends to stockholders, partially offset by proceeds of $2.8 million from the issuance of shares through our employee stock purchase plan.

Our financing activities in the six months ended June 30, 2026 resulted in a $21.1 million net use of cash, consisting of $23.8 million for the payment of dividends to stockholders, partially offset by proceeds of $2.7 million from the issuance of shares through our employee stock purchase plan.

Our financing activities in the six months ended June 30, 2025 resulted in a $76.6 million net use of cash, consisting of $55.7 million for the repurchase of our common stock and $23.8 million for the payment of dividends to stockholders, partially offset by proceeds of $2.8 million from the issuance of shares through our employee stock purchase plan.

Other Information

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federal taxes.

Accordingly, as of March 31, 2026, our worldwide cash and short-term investments are available to fund capital allocation needs, including capital and internal investments, acquisitions, stock repurchases and/or dividends without incurring significant U.S.

Accordingly, as of June 30, 2026, our worldwide cash and short-term investments are available to fund capital allocation needs, including capital and internal investments, acquisitions, stock repurchases and/or dividends without incurring significant U.S.

federal income taxes.

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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