What changed in this filing

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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 106 added, 81 removed, 390 unchanged (32% of the section changed)

31 unchanged sentences

250,000 shares authorized;

32,815 and 32,458 shares issued and outstanding at July 5, 2025 and December 28, 2024, respectively

32,853 and 32,458 shares issued and outstanding at October 4, 2025 and December 28, 2024, respectively

Additional paid-in capital 130,979 78,227

7 unchanged sentences

(In thousands, except per share data)

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Revenues $ 205,999 $ 166,395 $ 576,558 $ 418,137

22 unchanged sentences

(In thousands)

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Net loss $ ( 9,936 ) $ ( 28,504 ) $ ( 62,223 ) $ ( 167,187 )

Other comprehensive income (loss), before tax:

Other comprehensive income, before tax:

Net changes to available-for-sale securities:

Unrealized gains (losses) arising during the period ( 295 ) 247 49 871

Unrealized gains arising during the period 182 655 232 1,526

Reclassification for losses (gains) included in net loss — 11 ( 25 ) 52

Net changes to cash flow hedges:

Unrealized gains arising during the period 269 — 269 275

Reclassification for gains included in net loss ( 279 ) — ( 279 ) ( 234 )

Other comprehensive income (loss), before tax ( 310 ) 273 14 953

Provision (benefit) for income taxes related to items of other comprehensive income (loss) ( 64 ) 50 3 182

Other comprehensive income (loss) ( 246 ) 223 11 771

Unrealized gains (losses) arising during the period ( 22 ) ( 5 ) 247 270

Reclassification for losses (gains) included in net loss 32 — ( 247 ) ( 234 )

Other comprehensive income, before tax 192 661 207 1,614

Provision for income taxes related to items of other comprehensive income 40 135 44 317

Other comprehensive income 152 526 163 1,297

Comprehensive loss $ ( 9,784 ) $ ( 27,978 ) $ ( 62,060 ) $ ( 165,890 )

3 unchanged sentences

(In thousands)

Three Months Ended July 5, 2025 Shares Common

Three Months Ended October 4, 2025 Shares Common

Stock Additional

4 unchanged sentences

Stockholders’

Balance as of April 5, 2025 32,473 $ 3 $ 96,838 $ 971,251 $ 327 $ 1,068,419

Balance as of July 5, 2025 32,815 $ 3 $ 111,562 $ 949,434 $ 81 $ 1,061,080

Net loss — — — ( 9,936 ) — ( 9,936 )

Other comprehensive loss — — — — ( 246 ) ( 246 )

Other comprehensive income — — — — 152 152

Stock issuances, net of shares withheld for taxes 38 — ( 627 ) — — ( 627 )

Stock-based compensation — — 20,044 — — 20,044

Balance as of July 5, 2025 32,815 $ 3 $ 111,562 $ 949,434 $ 81 $ 1,061,080

Three Months Ended June 29, 2024 Shares Common

Balance as of October 4, 2025 32,853 $ 3 $ 130,979 $ 939,498 $ 233 $ 1,070,713

Three Months Ended September 28, 2024 Shares Common

Stock Additional

4 unchanged sentences

Stockholders’

Balance as of March 30, 2024 31,924 $ 3 $ 29,830 $ 1,136,205 $ ( 477 ) $ 1,165,561

Balance as of June 29, 2024 32,289 $ 3 $ 39,232 $ 1,054,048 $ ( 254 ) $ 1,093,029

Net loss — — — ( 28,504 ) — ( 28,504 )

2 unchanged sentences

Stock-based compensation — — 15,913 — — 15,913

Balance as of June 29, 2024 32,289 $ 3 $ 39,232 $ 1,054,048 $ ( 254 ) $ 1,093,029

Six Months Ended July 5, 2025 Shares Common

Balance as of September 28, 2024 32,343 $ 3 $ 55,567 $ 1,025,544 $ 272 $ 1,081,386

Nine Months Ended October 4, 2025 Shares Common

Stock Additional

9 unchanged sentences

Stock-based compensation — — 59,512 — — 59,512

Balance as of July 5, 2025 32,815 $ 3 $ 111,562 $ 949,434 $ 81 $ 1,061,080

Six Months Ended June 29, 2024 Shares Common

Balance as of October 4, 2025 32,853 $ 3 $ 130,979 $ 939,498 $ 233 $ 1,070,713

Nine Months Ended September 28, 2024 Shares Common

Stock Additional

9 unchanged sentences

Stock-based compensation — — 45,277 — — 45,277

Balance as of June 29, 2024 32,289 $ 3 $ 39,232 $ 1,054,048 $ ( 254 ) $ 1,093,029

Balance as of September 28, 2024 32,343 $ 3 $ 55,567 $ 1,025,544 $ 272 $ 1,081,386

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

(In thousands)

Six Months Ended

2025 June 29,

Nine Months Ended

2025 September 28,

Operating Activities

19 unchanged sentences

Purchases of property and equipment ( 19,942 ) ( 7,785 )

Purchase of other investment ( 4,000 ) —

Proceeds from sale of equity investment — 12,382

19 unchanged sentences

All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated results of operations for the three and six months ended July 5, 2025 are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated results of operations for the three and nine months ended October 4, 2025 are not necessarily indicative of the results to be expected for the full year.

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 28, 2024, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 4, 2025.

10 unchanged sentences

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures .

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 .

This ASU requires that reporting entities disclose specific categories in the effective tax rate reconciliation as well as information about income taxes paid.

7 unchanged sentences

The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) .

This ASU clarifies and modernizes the accounting for costs related to internal-use software.

The amendments in the ASU are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

Entities may apply the guidance using a prospective,

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Significant Accounting Policies (Continued)

retrospective or modified transition approach.

Early adoption is permitted as of the beginning of an annual reporting period.

The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Net loss $ ( 9,936 ) $ ( 28,504 ) $ ( 62,223 ) $ ( 167,187 )

6 unchanged sentences

Diluted $ ( 0.30 ) $ ( 0.88 ) $ ( 1.91 ) $ ( 5.21 )

Diluted shares for the three and six months ended July 5, 2025 excluded 0.2 million and 0.3 million shares, respectively, and for the three and six months ended June 29, 2024 excluded 0.3 million, and 0.3 million shares, respectively, as they were anti-dilutive due to the Company’s net loss for the periods.

Securities that were anti-dilutive due to the Company’s stock price and were excluded from the computation of diluted earnings per share for the three and six months ended July 5, 2025 were 0.8 million and 0.5 million, respectively, and for the three and six months ended June 29, 2024 were 0.6 million, and 0.5 million, respectively.

Diluted shares for the three and nine months ended October 4, 2025 excluded 0.2 million and 0.3 million shares, respectively, and for the three and nine months ended September 28, 2024 excluded 0.1 million, and 0.2 million shares, respectively, as they were anti-dilutive due to the Company’s net loss for the periods.

Securities that were anti-dilutive due to the Company’s stock price and were excluded from the computation of diluted earnings per share for the three and nine months ended October 4, 2025 were not material, and for the three and nine months ended September 28, 2024 were 0.7 million, and 0.5 million, respectively.

Fair Value of Financial Instruments

10 unchanged sentences

Fair Value Measurements

at July 5, 2025 Using

at October 4, 2025 Using

Description Quoted Prices in

35 unchanged sentences

The following summarizes the components of available-for-sale investments (in thousands):

As of July 5, 2025 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

As of October 4, 2025 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

Corporate debt securities $ 61 $ — $ — $ 61 $ — $ 61

9 unchanged sentences

The Company’s available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income in the Condensed Consolidated Balance Sheet.

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at July 5, 2025 (in thousands):

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at October 4, 2025 (in thousands):

Cost Fair Value

5 unchanged sentences

Less Than 12 Months 12 Months or Greater Total

As of July 5, 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

As of October 4, 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Corporate debt securities $ — $ — $ — $ — $ — $ —

9 unchanged sentences

$ 26,318 $ ( 49 ) $ 4,187 $ ( 15 ) $ 30,505 $ ( 64 )

The gross unrealized losses as of July 5, 2025 and December 28, 2024 were due primarily to changes in market interest rates.

At July 5, 2025 and December 28, 2024, there were no material unrealized gains associated with the Company’s available-for-sale investments.

The gross unrealized losses as of October 4, 2025 and December 28, 2024 were due primarily to changes in market interest rates.

At October 4, 2025 and December 28, 2024, there were no material unrealized gains associated with the Company’s available-for-sale investments.

The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors.

When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made.

As of July 5, 2025, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

As of October 4, 2025, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

Fair values of other financial instruments

12 unchanged sentences

If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive income may be recognized in the Condensed Consolidated Statement of Operations based on an assessment of the contracts at the time of termination.

The Company has entered into various foreign currency forward contracts for a portion of its forecasted operating expenses for the quarter ended July 5, 2025.

As of July 5, 2025, the foreign currency forward contracts denominated in the Norwegian Krone had maturities of one to two months and an aggregate notional value of $ 1.6 million.

The fair value of the contracts, contract gains or losses recognized in other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income into earnings were not material for any of the periods presented and are not expected to be material in the next twelve months.

The Company entered into various foreign currency forward contracts for a portion of its forecasted operating expenses for the quarter ended October 4, 2025.

As of October 4, 2025, the Company held no such foreign currency contracts.

The fair value of the contracts, contract gains or losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive income into earnings were not material for any of the periods presented and are not expected to be material in the next twelve months.

Silicon Laboratories Inc.

7 unchanged sentences

The Company does not apply hedge accounting to these foreign currency forward contracts.

As of July 5, 2025, the Company held foreign currency forward contracts denominated in Hungarian Forint with an aggregate notional value of $ 3.7 million.

As of October 4, 2025, the Company held no such foreign currency forward contracts.

The fair value of the foreign currency forward contracts and contract gains and losses recognized in income were not material for any of the periods presented.

7 unchanged sentences

The Company leases a portion of its headquarter facilities to other tenants.

Lease income from operating leases was $ 0.5 million and $ 0.7 million during the three months ended July 5, 2025 and June 29, 2024, respectively, and $ 1.1 million and $ 1.5 million during the six months ended July 5, 2025 and June 29, 2024, respectively.

Lease income from operating leases was $ 0.6 million and $ 0.7 million during the three months ended October 4, 2025 and September 28, 2024, respectively, and $ 1.6 million and $ 2.2 million during the nine months ended October 4, 2025 and September 28, 2024, respectively.

Credit Facility

10 unchanged sentences

The Company was granted a waiver of compliance for the minimum interest coverage ratio through October 4, 2025.

As of July 5, 2025, the Company was in compliance with all covenants of the credit facility, including the minimum interest coverage ratio.

As of October 4, 2025, the Company was in compliance with all covenants of the credit facility, including the minimum interest coverage ratio.

The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors.

As of July 5, 2025, no amounts were outstanding on the credit facility.

As of October 4, 2025, no amounts were outstanding on the credit facility.

Commitments and Contingencies

3 unchanged sentences

The following represents revenue by product category (in thousands):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Industrial & Commercial $ 117,614 $ 96,496 $ 323,377 $ 249,840

3 unchanged sentences

These factors impact the timing and uncertainty of revenues and cash flows.

During the three and six months ended July 5, 2025 and June 29, 2024, the impact of revenue related to performance obligations that were satisfied in previous reporting periods was insignificant.

During the three and nine months ended October 4, 2025 and September 28, 2024, the impact of revenue related to performance obligations that were satisfied in previous reporting periods was insignificant.

The following disaggregates the Company’s revenue by sales channel (in thousands):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Distributors $ 152,208 $ 119,212 $ 402,835 $ 289,502

10 unchanged sentences

The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Operations (in thousands):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Cost of revenues $ 474 $ 369 $ 1,544 $ 1,193

4 unchanged sentences

Total $ 17,222 $ 13,651 $ 51,863 $ 39,304

The Company had approximately $ 131.3 million of total unrecognized compensation cost related to equity grants as of July 5, 2025 that is expected to be recognized over a weighted-average period of approximately 2.3 years.

The Company had approximately $ 111.7 million of total unrecognized compensation cost related to equity grants as of October 4, 2025 that is expected to be recognized over a weighted-average period of approximately 2.1 years.

Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits, deemed foreign income inclusions, change in the valuation allowance, and other permanent differences.

Income tax expense was $ 2.5 million and $ 36.7 million for the three months ended July 5, 2025 and June 29, 2024, resulting in effective tax rates of ( 13.1 )% and ( 80.6 )%, respectively.

Income tax expense was $ 4.4 million and $ 36.3 million for the six months ended July 5, 2025 and June 29, 2024, resulting in effective tax rates of ( 9.3 )% and ( 35.4 )%, respectively.

The decrease in the provision for income taxes for the three and six months ended July 5, 2025 is primarily due to a decrease in tax expense related to the valuation allowance in the three and six months ended July 5, 2025 in comparison with the three and six months ended June 29, 2024.

During the three months ended June 29, 2024, the Company incurred significant tax expense to record a valuation allowance in the U.S.

Income tax expense was $ 0.4 million and $ 2.0 million for the three months ended October 4, 2025 and September 28, 2024, resulting in effective tax rates of ( 4.3 )% and ( 7.6 )%, respectively.

Income tax expense was $ 4.8 million and $ 38.3 million for the nine months ended October 4, 2025 and September 28, 2024, resulting in effective tax rates of ( 8.4 )% and ( 29.7 )%, respectively.

The decrease in the provision for income taxes for the three months ended October 4, 2025 is primarily due to the release of a liability for unrecognized tax benefits in the three months ended October 4, 2025 in comparison with the three months ended September 28, 2024.

The decrease in the provision for income taxes for the nine months ended October 4, 2025 is primarily due to a decrease in tax expense related to the valuation allowance in the nine months ended October 4, 2025 in comparison with the nine months ended September 28, 2024.

During the nine months ended September 28, 2024, the Company incurred significant tax expense to record a valuation allowance in the U.S.

and Singapore due to a three-year cumulative pre-tax loss in conjunction with the downturn in the semiconductor industry.

6 unchanged sentences

research and experimental (“R&E”) expenditures.

A number of other provisions of the OBBBA will not take effect until the 2026 tax year, including various changes to existing international tax provisions.

In connection with its initial analysis of the OBBBA, the Company determined that its forecasted annual effective tax rate for the current year decreased, primarily due to U.S.

R&E expenditures no longer being capitalized within net controlled foreign corporation tested income (formerly known as global intangible low-taxed income or “GILTI”), which the Company has elected to treat as a period cost.

A number of other changes enacted in the OBBBA will not take effect until the 2026 tax year, including various modifications to existing international tax provisions.

The Company determined that its forecasted annual effective tax rate for the current year decreased due to the impacts of the OBBBA, primarily due to U.S.

R&E expenditures no longer being capitalized within global intangible low-taxed income or “GILTI”, which the Company has elected to treat as a period cost.

The Company did not identify any material discrete tax impacts related to beginning-of-the-year deferred tax assets and liabilities or valuation allowances due to the enactment of the OBBBA.

Uncertain Tax Positions

As of July 5, 2025, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 5.7 million, of which $ 3.6 million would affect the effective tax rate if recognized.

During the six months ended July 5, 2025, the Company did not release any unrecognized tax benefits.

Tax years 2019 through 2025 remain open to examination by the major taxing jurisdictions in which the Company operates.

The Company’s 2022 tax year is currently under examination in the U.S., and the Company’s 2021 through 2023

As of October 4, 2025, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.5 million, of which $ 1.9 million would affect the effective tax rate if recognized.

During the three months ended October 4, 2025, the Company released $ 1.7 million of unrecognized tax benefits, inclusive of interest.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

tax years are currently under examination in India.

Income Taxes (Continued)

Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 – 2016, the Company received an assessment from the NTA in December 2017 proposing an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction.

The adjustment would have resulted in approximately 141.3 million Norwegian kroner, or $ 14.0 million, additional Norwegian income tax.

The Company disagreed with the NTA’s findings and appealed the assessment, concluding that the Company’s position was more likely than not to be sustained in the appeal.

During the three months ending October 4, 2025, the Norwegian Tax Appeals Board issued a formal decision in favor of the Company, rejecting the proposed adjustment to its 2013 tax liability.

Because the Company did not previously establish a reserve related to the NTA assessment, there is no resulting financial statement impact for the final resolution of this matter.

Tax years 2020 through 2025 remain open to examination by the major taxing jurisdictions in which the Company operates.

The Company’s 2022 tax year is currently under examination in the U.S., and the Company’s 2022 through 2023 tax years are currently under examination in India.

Although the outcome of tax audits is always uncertain, the Company believes that the results of these examinations will not materially impact its financial position or results of operations.

3 unchanged sentences

The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas.

The Company’s chief operating decision maker (“CODM”) assesses performance for the operating segment and decides how to allocate resources based on net income (loss) that is also reported on the Condensed Consolidated Statement of Operations as Net loss.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer.

The CODM assesses performance for the operating segment and decides how to allocate resources based on net income (loss) that is also reported on the Condensed Consolidated Statement of Operations as Net loss.

The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as Total assets.

1 unchanged sentence

The following summarizes the Company’s revenue by geographic area (in thousands):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

United States $ 20,701 $ 14,710 $ 61,939 $ 30,779

3 unchanged sentences

Total $ 205,999 $ 166,395 $ 576,558 $ 418,137

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Segment Information (Continued)

The significant expense categories regularly provided to the CODM, in addition to the expense categories included within net loss presented on the Company’s Condensed Consolidated Statement of Operations, are as follows (in thousands):

Three Months Ended Six Months Ended

2025 June 29,

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Research and development:

8 unchanged sentences

Total selling, general and administrative $ 43,676 $ 36,793 $ 128,469 $ 109,041

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

(1) Other research and development and selling, general and administrative expenses include other personnel-related expenses, outside services, software expense, depreciation and amortization of intangible assets, and other expenses.

The following summarizes the Company’s property and equipment, net by geographic area (in thousands):

4 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 1. Financial Statements