SILICON LABORATORIES INC. 10-Q

Item 1. Financial Statements Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) April 4, 2026 January 3, 2026 Assets Current assets: Cash and cash equivalents $ 383,089 $ 364,222 Short-term investments 55,767 79,400 Accounts receivable, net 77,120 64,513 Inventories 103,232 95,566 Prepaid expenses and other current assets 57,113 70,316 Total current assets 676,321 674,017 Property and equipment, net 131,821 128,643 Goodwill 376,389 376,389 Other intangible assets, net 20,836 23,130 Other assets, net 61,094 67,138 Total assets $ 1,266,461 $ 1,269,317 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 56,384 $ 50,717 Deferred revenue and returns liability 9,822 5,359 Other current liabilities 66,273 87,711 Total current liabilities 132,479 143,787 Other non-current liabilities 35,448 31,112 Total liabilities 167,927 174,899 Commitments and contingencies Stockholders’ equity: Preferred stock – $ 0.0001 par value; 10,000 shares authorized; no shares issued — — Common stock – $ 0.0001 par value; 250,000 shares authorized; 32,968 and 32,955 shares issued and outstanding at April 4, 2026 and January 3, 2026, respectively 3 3 Additional paid-in capital 177,551 157,402 Retained earnings 920,917 936,814 Accumulated other comprehensive income 63 199 Total stockholders’ equity 1,098,534 1,094,418 Total liabilities and stockholders’ equity $ 1,266,461 $ 1,269,317 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 3 Table of Contents Silicon Laboratories Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended April 4, 2026 April 5, 2025 Revenues $ 213,500 $ 177,714 Cost of revenues 86,502 79,937 Gross profit 126,998 97,777 Operating expenses: Research and development 88,594 88,219 Selling, general and administrative 55,486 41,638 Operating expenses 144,080 129,857 Operating loss ( 17,082 ) ( 32,080 ) Other income (expense): Interest income and other, net 3,626 3,793 Interest expense ( 232 ) ( 284 ) Loss before income taxes ( 13,688 ) ( 28,571 ) Provision for income taxes 2,209 1,899 Net loss $ ( 15,897 ) $ ( 30,470 ) Loss per share: Basic $ ( 0.48 ) $ ( 0.94 ) Diluted $ ( 0.48 ) $ ( 0.94 ) Weighted-average common shares outstanding: Basic 32,963 32,465 Diluted 32,963 32,465 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents Silicon Laboratories Inc. Condensed Consolidated Statements of Comprehensive Loss (In thousands) (Unaudited) Three Months Ended April 4, 2026 April 5, 2025 Net loss $ ( 15,897 ) $ ( 30,470 ) Other comprehensive (loss) income, before tax: Net changes to available-for-sale securities: 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 ) The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents Silicon Laboratories Inc. Condensed Consolidated Statements of Changes in Stockholders’ Equity (In thousands) (Unaudited) Three Months Ended April 4, 2026 Shares Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity 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 loss — — — — ( 136 ) ( 136 ) Stock issuances, net of shares withheld for taxes 13 — ( 956 ) — — ( 956 ) Stock-based compensation — — 21,105 — — 21,105 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 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Balance as of December 28, 2024 32,458 $ 3 $ 78,227 $ 1,001,721 $ 70 $ 1,080,021 Net loss — — — ( 30,470 ) — ( 30,470 ) Other comprehensive income — — — — 257 257 Stock issuances, net of shares withheld for taxes 15 — ( 958 ) — — ( 958 ) Stock-based compensation — — 19,569 — — 19,569 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. 6 Table of Contents Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended April 4, 2026 April 5, 2025 Operating Activities Net loss $ ( 15,897 ) $ ( 30,470 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation of property and equipment 6,047 6,248 Amortization of other intangible assets 2,295 5,437 Stock-based compensation expense 21,055 19,714 Deferred income taxes 1,153 ( 1,514 ) Changes in operating assets and liabilities: Accounts receivable ( 12,608 ) 2,412 Inventories ( 7,616 ) 22,098 Prepaid expenses and other assets 6,813 2,973 Accounts payable 3,387 9,234 Other current liabilities and income taxes ( 7,415 ) 11,870 Deferred revenue and returns liability 4,463 3,405 Other non-current liabilities 3,257 ( 3,279 ) Net cash provided by operating activities 4,934 48,128 Investing Activities Purchases of marketable securities — ( 19,728 ) Sales of marketable securities — 10,005 Maturities of marketable securities 23,461 10,675 Purchases of property and equipment ( 9,837 ) ( 4,852 ) Proceeds from capital-related government incentives 1,265 — Net cash provided by (used in) investing activities 14,889 ( 3,900 ) Financing Activities Payment of taxes withheld for vested stock awards ( 956 ) ( 958 ) Net cash used in financing activities ( 956 ) ( 958 ) Increase in cash and cash equivalents 18,867 43,270 Cash and cash equivalents at beginning of period 364,222 281,607 Cash and cash equivalents at end of period $ 383,089 $ 324,877 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 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 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 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. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation, and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates. Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) . This ASU requires that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The prescribed categories include purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. This authoritative guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. 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, 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 8 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 1. Significant Accounting Policies (Continued) approach. 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. 2. 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. 3. 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 April 4, 2026 April 5, 2025 Net loss $ ( 15,897 ) $ ( 30,470 ) Shares used in computing basic earnings per share 32,963 32,465 Effect of dilutive securities: Stock-based awards — — Shares used in computing diluted earnings per share 32,963 32,465 Loss per share: Basic $ ( 0.48 ) $ ( 0.94 ) Diluted $ ( 0.48 ) $ ( 0.94 ) 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. 4. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. 9 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 4. 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). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements at April 4, 2026 Using Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Cash equivalents: 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: Government debt securities $ — $ 55,767 $ 55,767 Total short-term investments $ — $ 55,767 $ 55,767 Total $ 217,216 $ 61,257 $ 278,473 Fair Value Measurements at January 3, 2026 Using Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Cash equivalents: 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: Government debt securities $ — $ 79,400 $ 79,400 Total short-term investments $ — $ 79,400 $ 79,400 Total $ 206,051 $ 84,995 $ 291,046 Valuation methodology The Company’s short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; quoted prices in less active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. 10 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 4. Fair Value of Financial Instruments (Continued) The following summarizes the components of available-for-sale investments (in thousands): Reported As 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 Money market funds 217,216 — — 217,216 217,216 — Total $ 278,393 $ 81 $ ( 1 ) $ 278,473 $ 222,706 $ 55,767 Reported As 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 Money market funds 206,051 — — 206,051 206,051 — Total $ 290,794 $ 252 $ — $ 291,046 $ 211,646 $ 79,400 Contractual maturities of investments 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 April 4, 2026 (in thousands): Cost Fair Value Due in one year or less $ 50,994 $ 51,062 Due after one year through five years 4,693 4,705 $ 55,687 $ 55,767 Unrealized Gains and Losses The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total 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 11 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 4. Fair Value of Financial Instruments (Continued) 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 The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities. 5. Derivative Financial Instruments The Company may use derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Condensed Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Condensed Consolidated Statement of Cash Flows. Cash Flow Hedges Foreign Currency Forward Contracts The Company may use foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive income in the Condensed Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction was recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. 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 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 Foreign Currency Forward Contracts The Company may use foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in interest income and other, net in the Condensed Consolidated Statement of Operations. The Company does not apply hedge accounting to these 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. 12 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 6. Supplemental Information The following table shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories April 4, 2026 January 3, 2026 Work in progress $ 85,388 $ 77,464 Finished goods 17,844 18,102 $ 103,232 $ 95,566 7. Debt Credit Facility The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $ 400 million revolving credit facility, as amended on June 30, 2023, with a maturity date of June 30, 2028. The credit facility includes a $ 25 million letter of credit sublimit and a $ 10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to the greater of an aggregate of $ 250 million and 100 % of EBITDA of the last four fiscal quarters, plus an amount that would not cause a secured net leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.50 to 1.00, subject to certain conditions. The credit facility, other than swingline loans, will bear interest at the Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50 % and the Adjusted Term SOFR plus 1.00 %) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. 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. 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. 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 April 4, 2026, no amounts were outstanding on the credit facility. 8. Commitments and Contingencies Litigation The Company is involved in various legal proceedings that have arisen in the normal course of business. 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. 13 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 9. Revenues 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 April 4, 2026 April 5, 2025 Industrial & Commercial $ 127,969 $ 95,976 Home & Life 85,531 81,738 $ 213,500 $ 177,714 A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. 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 April 4, 2026 April 5, 2025 Distributors $ 160,558 $ 117,189 Direct customers 52,942 60,525 $ 213,500 $ 177,714 10. Stock-Based Compensation Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. 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 stock options and rights under the Company’s Employee Stock Purchase Plan are estimated using the Black-Scholes option-pricing model. The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Operations (in thousands): Three Months Ended April 4, 2026 April 5, 2025 Cost of revenues $ 442 $ 613 Research and development 11,416 12,007 Selling, general and administrative 9,197 7,094 21,055 19,714 Income tax benefit 2,564 2,501 Total $ 18,491 $ 17,213 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. 14 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 11. Income Taxes 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. 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 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. 12. Segment Information The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas. 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. 15 Table of Contents Silicon Laboratories Inc. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 12. 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 April 4, 2026 April 5, 2025 United States $ 17,956 $ 16,684 China 67,320 58,769 Taiwan 42,650 29,832 Rest of world 85,574 72,429 Total $ 213,500 $ 177,714 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 April 4, 2026 April 5, 2025 Research and development: Employee base compensation $ 32,316 $ 32,972 Other research and development expenses (1) 56,278 55,247 Total research and development $ 88,594 $ 88,219 Selling, general and administrative: Employee base compensation $ 13,775 $ 14,107 Other selling, general and administrative expenses (1) 41,711 27,531 Total selling, general and administrative $ 55,486 $ 41,638 (1) Other research and development and selling, general and administrative expenses include other personnel-related expenses, outside services, software expense, depreciation, amortization, and other expenses. The following summarizes the Company’s property and equipment, net by geographic area (in thousands): April 4, 2026 January 3, 2026 United States $ 105,863 $ 106,706 Rest of world 25,958 21,937 Total $ 131,821 $ 128,643 16 Table of Contents