What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-04 · 110 added, 182 removed, 314 unchanged (48% of the section changed)

3 unchanged sentences

(In thousands, except per share data)

2025 December 28,

2026 January 3,

Current assets:

25 unchanged sentences

250,000 shares authorized;

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

32,968 and 32,955 shares issued and outstanding at April 4, 2026 and January 3, 2026, respectively

Additional paid-in capital 177,551 157,402

7 unchanged sentences

(In thousands, except per share data)

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Revenues $ 213,500 $ 177,714

22 unchanged sentences

(In thousands)

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Net loss $ ( 15,897 ) $ ( 30,470 )

Other comprehensive income, before tax:

Other comprehensive (loss) income, before tax:

Net changes to available-for-sale securities:

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 (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

Unrealized (losses) gains arising during the period ( 172 ) 345

Reclassification for gains included in net loss — ( 20 )

Other comprehensive (loss) income, before tax ( 172 ) 325

(Benefit) provision for income taxes related to items of other comprehensive (loss) income ( 36 ) 68

Other comprehensive (loss) income ( 136 ) 257

Comprehensive loss $ ( 16,033 ) $ ( 30,213 )

3 unchanged sentences

(In thousands)

Three Months Ended October 4, 2025 Shares Common

Stock Additional

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Stockholders’

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 income — — — — 152 152

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

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

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

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Stockholders’

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

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

Other comprehensive income — — — — 526 526

Stock issuances, net of shares withheld for taxes 54 — 422 — — 422

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

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

Three Months Ended April 4, 2026 Shares Common

Stock Additional

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Earnings Accumulated Other Comprehensive Income Total

Stockholders’

Balance as of December 28, 2024 32,458 $ 3 $ 78,227 $ 1,001,721 $ 70 $ 1,080,021

Balance as of January 3, 2026 32,955 $ 3 $ 157,402 $ 936,814 $ 199 $ 1,094,418

Net loss — — — ( 15,897 ) — ( 15,897 )

Other comprehensive income — — — — 163 163

Other comprehensive loss — — — — ( 136 ) ( 136 )

Stock issuances, net of shares withheld for taxes 13 — ( 956 ) — — ( 956 )

Stock-based compensation — — 21,105 — — 21,105

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

Balance as of April 4, 2026 32,968 $ 3 $ 177,551 $ 920,917 $ 63 $ 1,098,534

Three Months Ended April 5, 2025 Shares Common

Stock Additional

Capital Retained

Earnings Accumulated Other

Comprehensive

Income (Loss) Total

Earnings Accumulated Other Comprehensive Income Total

Stockholders’

4 unchanged sentences

Stock-based compensation — — 19,569 — — 19,569

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

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

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

2 unchanged sentences

(In thousands)

Nine Months Ended

2025 September 28,

Three Months Ended

2026 April 5,

Operating Activities

Net loss $ ( 15,897 ) $ ( 30,470 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

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

Depreciation of property and equipment 6,047 6,248

10 unchanged sentences

Other non-current liabilities 3,257 ( 3,279 )

Net cash provided by (used in) operating activities 87,358 ( 24,039 )

Net cash provided by operating activities 4,934 48,128

Investing Activities

3 unchanged sentences

Purchases of property and equipment ( 9,837 ) ( 4,852 )

Purchase of other investment ( 4,000 ) —

Proceeds from sale of equity investment — 12,382

Proceeds from capital-related government incentives 1,265 —

Net cash provided by (used in) investing activities 14,889 ( 3,900 )

Financing Activities

Payments on debt — ( 45,000 )

Payment of taxes withheld for vested stock awards ( 956 ) ( 958 )

Proceeds from the issuance of common stock 8,147 9,396

Net cash used in financing activities ( 956 ) ( 958 )

11 unchanged sentences

The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive loss, stockholders’ equity, and cash flows.

The Condensed Consolidated Balance Sheet as of December 28, 2024 was derived from the Company’s audited Consolidated Financial Statements.

The Condensed Consolidated Balance Sheet as of January 3, 2026 was derived from the Company’s audited Consolidated Financial Statements.

All intercompany balances and transactions have been eliminated in consolidation.

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.

The condensed consolidated results of operations for the three months ended April 4, 2026 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 January 3, 2026, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 10, 2026.

The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31.

Fiscal 2025 will have 53 weeks with the extra week occurring in the first quarter of the year.

Fiscal 2024 had 52 weeks.

Fiscal 2026 will have 52 weeks.

Fiscal 2025 had 53 weeks with the extra week occurring in the first quarter of the year.

In a 52-week year, each fiscal quarter consists of 13 weeks.

6 unchanged sentences

Recent Accounting Pronouncements

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.

The authoritative guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

As the requirements of this ASU are disclosure-related, the adoption will not have an impact on the Company’s consolidated financial position and results of operations.

The Company is currently evaluating the impact of this update on its income tax disclosures.

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

6 unchanged sentences

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,

Entities may apply the guidance using a prospective, 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.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832).

This ASU establishes authoritative guidance about the recognition, measurement, and presentation of a grant received by a business entity from a government, including guidance for 1) a grant related to an asset and 2) a grant related to income.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.

Entities may apply the guidance using a modified prospective or modified retrospective

Silicon Laboratories Inc.

1 unchanged sentence

Significant Accounting Policies (Continued)

retrospective or modified transition approach.

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

Early adoption is permitted in both interim and annual reporting periods.

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

Proposed Merger

As announced on February 4, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Texas Instruments Incorporated (“Parent”) and Caldwell Merger Corp., a wholly-owned direct subsidiary of Parent (“Merger Subsidiary”), pursuant to which Merger Subsidiary will merge with and into Silicon Laboratories Inc.

(the “Merger”), and the Company will survive the Merger as a wholly-owned direct subsidiary of Parent.

At the effective time of the Merger, each share of the Company’s common stock outstanding as of immediately prior to the effective time (other than dissenting shares or any shares of common stock held by the Company as treasury stock or owned by Parent or any of the Company’s or Parent’s subsidiaries) will be cancelled and converted into the right to receive $ 231.00 in cash, without interest.

The transactions contemplated by the Merger Agreement were unanimously approved by the Company’s board of directors, and on April 30, 2026 the Company obtained the approval of its stockholders required to adopt the Merger Agreement.

The Merger is expected to close in the first half of 2027, subject to customary closing conditions, including the receipt of required regulatory approvals.

In connection with the proposed Merger, for the three months ended April 4, 2026 we have incurred $ 11.2 million of costs, and expect to continue to incur financial advisory, legal, accounting, and other professional fees prior to the completion of the Merger, which could be significant.

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 Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Net loss $ ( 15,897 ) $ ( 30,470 )

6 unchanged sentences

Diluted $ ( 0.48 ) $ ( 0.94 )

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.

Diluted shares for the three months ended April 4, 2026 and April 5, 2025 excluded 0.6 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 months ended April 4, 2026 and April 5, 2025 were not material.

Fair Value of Financial Instruments

2 unchanged sentences

Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 - Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets.

Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

Silicon Laboratories Inc.

1 unchanged sentence

Fair Value of Financial Instruments (Continued)

Level 2 - Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets.

Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

The following summarizes the valuation of the Company’s financial instruments (in thousands).

1 unchanged sentence

Fair Value Measurements

at October 4, 2025 Using

at April 4, 2026 Using

Description Quoted Prices in

5 unchanged sentences

Money market funds $ 217,216 $ — $ 217,216

Time deposit — 5,490 5,490

Total cash equivalents $ 217,216 $ 5,490 $ 222,706

Short-term investments:

Corporate debt securities $ — $ 61 $ 61

Government debt securities $ — $ 55,767 $ 55,767

2 unchanged sentences

Fair Value Measurements

at December 28, 2024 Using

at January 3, 2026 Using

Description Quoted Prices in

5 unchanged sentences

Money market funds $ 206,051 $ — $ 206,051

Time deposit — 5,595 5,595

Total cash equivalents $ 206,051 $ 5,595 $ 211,646

Short-term investments:

Corporate debt securities $ — $ 13,514 $ 13,514

Government debt securities $ — $ 79,400 $ 79,400

10 unchanged sentences

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

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

As of April 4, 2026 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

Time Deposits $ 5,490 $ — $ — $ 5,490 $ 5,490 $ —

Government debt securities 55,687 81 ( 1 ) 55,767 — 55,767

1 unchanged sentence

Total $ 278,393 $ 81 $ ( 1 ) $ 278,473 $ 222,706 $ 55,767

As of December 28, 2024 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

Corporate debt securities $ 13,517 $ 12 $ ( 15 ) $ 13,514 $ — $ 13,514

As of January 03, 2026 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities

Time deposits $ 5,595 $ — $ — $ 5,595 $ 5,595 $ —

Government debt securities 79,148 252 — 79,400 — 79,400

3 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 October 4, 2025 (in thousands):

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at April 4, 2026 (in thousands):

Cost Fair Value

5 unchanged sentences

Less Than 12 Months 12 Months or Greater Total

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

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

As of April 4, 2026 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Government debt securities $ 5,214 $ ( 1 ) $ — $ — $ 5,214 $ ( 1 )

$ 5,214 $ ( 1 ) $ — $ — $ 5,214 $ ( 1 )

The gross unrealized losses as of April 4, 2026 were due primarily to changes in market interest rates.

There were no gross unrealized losses as of January 3, 2026.

At April 4, 2026 and January 3, 2026, 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

Silicon Laboratories Inc.

1 unchanged sentence

Fair Value of Financial Instruments (Continued)

Less Than 12 Months 12 Months or Greater Total

As of December 28, 2024 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Corporate debt securities $ — $ — $ 4,187 $ ( 15 ) $ 4,187 $ ( 15 )

Government debt securities 26,318 ( 49 ) — — 26,318 ( 49 )

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

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

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 April 4, 2026, 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 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.

Notes to Condensed Consolidated Financial Statements (Continued)

Derivative Financial Instruments (Continued)

The Company did not enter into any foreign currency forward contracts for its forecasted operating expenses for the quarter ended April 4, 2026.

As of April 4, 2026, the Company held no such foreign currency contracts.

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

Non-designated Hedges

4 unchanged sentences

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

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

As of April 4, 2026, 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.

All foreign currency forward contracts, both designated and not designated as hedging instruments, are classified within Level 2 as the valuation inputs include foreign exchange rates, forward and spot prices for currencies, and market observable data of similar instruments.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Supplemental Information

The following table shows the details of selected Condensed Consolidated Balance Sheet items (in thousands):

2025 December 28,

2026 January 3,

Work in progress $ 85,388 $ 77,464

1 unchanged sentence

$ 103,232 $ 95,566

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

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

5 unchanged sentences

The applicable margins for the Adjusted Term SOFR loans range from 1.00 % to 1.75 % and for base rate loans range from 0.00 % to 0.75 %, depending in each case, on the leverage ratio as defined in the credit facility.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Debt (Continued)

The credit facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a consolidated net leverage ratio (funded indebtedness less cash and cash equivalents up to $ 750 million and divided by EBITDA) of no more than 4.25 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1.

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

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

As of April 4, 2026, 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 October 4, 2025, no amounts were outstanding on the credit facility.

As of April 4, 2026, no amounts were outstanding on the credit facility.

Commitments and Contingencies

1 unchanged sentence

While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Condensed Consolidated Financial Statements.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

The Company groups its products as Industrial & Commercial or Home & Life based on the target markets they address.

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

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Industrial & Commercial $ 127,969 $ 95,976

3 unchanged sentences

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

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.

During the three months ended April 4, 2026, the Company recognized revenue of $ 5.1 million from performance obligations that were satisfied in the previous reporting period.

During the three months ended April 5, 2025, the impact of revenue related to performance obligations that were satisfied in the previous reporting period was insignificant.

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

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Distributors $ 160,558 $ 117,189

4 unchanged sentences

The fair values of stock awards (such as restricted stock units (“RSUs”) and performance stock units (“PSUs”) are estimated based on their intrinsic values.

The fair values of market stock awards (“MSUs”) are estimated using a Monte Carlo simulation.

The fair values of stock options and rights under the Company’s Employee Stock Purchase Plan are estimated using the Black-Scholes option-pricing model.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Stock-Based Compensation (Continued)

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

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Cost of revenues $ 442 $ 613

4 unchanged sentences

Total $ 18,491 $ 17,213

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 $ 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.

The Company intends to maintain the valuation allowance until its ability to forecast sufficient future sources of taxable income is reestablished.

On July 4, 2025, the U.S.

government enacted tax legislation commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”).

The OBBBA extends and/or modifies many provisions first enacted via the Tax Cuts and Jobs Act (“TCJA”) in 2017, as well as introduces new modifications to U.S.

federal tax law.

Beginning with the 2025 tax year, the OBBBA permanently restores current deductibility for U.S.

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

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 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.

The Company had approximately $ 143.8 million of total unrecognized compensation cost related to equity grants as of April 4, 2026 that is expected to be recognized over a weighted-average period of approximately 2.2 years.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

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.

Typically, the Company’s interim provision for income taxes is determined using an estimated annual effective tax rate, adjusted for discrete tax items.

When the Company is unable to make a reliable estimate of the annual effective tax rate, it uses the actual effective tax rate for the year-to-date period.

For the three months ended April 4, 2026, the Company used an actual effective tax rate in jurisdictions where a small change in forecasted pre-tax income or loss has the potential to distort the estimated annual effective tax rate.

Income tax expense was $ 2.2 million and $ 1.9 million for the three months ended April 4, 2026 and April 5, 2025, resulting in effective tax rates of ( 16.1 )% and ( 6.6 )%, respectively.

The decrease in the effective tax rate for the three months ended April 4, 2026 is primarily due to a decrease in pre-tax book loss, as the impact of permanent items is relatively greater when the pre-tax loss is smaller.

A valuation allowance is required to be established when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

In 2024, the Company identified a need for valuation allowances in the U.S.

and Singapore due to the presence of significant negative evidence, including recent operating losses and uncertainty around the timing of recovery in economic conditions within both the semiconductor industry and the broader economy.

Because of the valuation allowance, we are unable to recognize the full tax benefit of the pre-tax losses incurred in those jurisdictions in the current year.

We intend to maintain the valuation allowance until our ability to forecast sufficient future sources of taxable income is reestablished.

Uncertain Tax Positions

As of April 4, 2026, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.7 million, of which $ 1.8 million would affect the effective tax rate if recognized.

Tax years 2021 through 2026 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.

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

The Company is not currently under audit in any other major taxing jurisdiction.

The Company’s gross unrecognized tax benefits will decrease by approximately $ 0.7 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.

Segment Information

3 unchanged sentences

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

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Segment Information (Continued)

Revenue is attributed to a geographic area based on the shipped-to location.

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

Three Months Ended Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

United States $ 17,956 $ 16,684

3 unchanged sentences

Total $ 213,500 $ 177,714

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 Nine Months Ended

2025 September 28,

2024 October 4,

2025 September 28,

Three Months Ended

2026 April 5,

Research and development:

10 unchanged sentences

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

2025 December 28,

2026 January 3,

United States $ 105,863 $ 106,706

2 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