SKYWORKS SOLUTIONS, INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS. SKYWORKS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share amounts) Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net revenue $ 965.0 $ 905.5 $ 2,986.7 $ 3,153.0 Cost of goods sold 564.0 541.4 1,752.1 1,862.0 Gross profit 401.0 364.1 1,234.6 1,291.0 Operating expenses: Research and development 199.4 160.7 562.4 468.1 Selling, general, and administrative 89.3 71.2 259.9 226.7 Amortization of intangibles 0.2 0.2 0.7 0.7 Restructuring, impairment, and other charges 1.5 1.6 22.6 17.5 Total operating expenses 290.4 233.7 845.6 713.0 Operating income 110.6 130.4 389.0 578.0 Interest expense ( 6.6 ) ( 6.6 ) ( 20.2 ) ( 23.8 ) Other income, net 8.0 9.6 35.9 23.8 Income before income taxes 112.0 133.4 404.7 578.0 Provision for income taxes 7.0 12.5 69.0 42.5 Net income $ 105.0 $ 120.9 $ 335.7 $ 535.5 Earnings per share: Basic $ 0.70 $ 0.75 $ 2.15 $ 3.34 Diluted $ 0.70 $ 0.75 $ 2.14 $ 3.32 Weighted average shares: Basic 150.0 160.4 156.3 160.2 Diluted 150.3 161.4 156.9 161.4 See accompanying Notes to Consolidated Financial Statements. 2 Table of Contents SKYWORKS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited, in millions) Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net income $ 105.0 $ 120.9 $ 335.7 $ 535.5 Other comprehensive loss, net of tax: Fair value of investments — — ( 0.1 ) — Pension adjustments — — — ( 0.1 ) Comprehensive income $ 105.0 $ 120.9 $ 335.6 $ 535.4 See accompanying Notes to Consolidated Financial Statements. 3 Table of Contents SKYWORKS SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) As of June 27, 2025 September 27, 2024 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,185.9 $ 1,368.6 Marketable securities 132.0 194.1 Receivables, net of allowances of $ 0.9 and $ 0.9 , respectively 396.2 508.8 Inventory 706.5 784.8 Other current assets 455.8 484.7 Total current assets 2,876.4 3,341.0 Property, plant, and equipment, net 1,213.8 1,280.3 Operating lease right-of-use assets 196.1 191.6 Goodwill 2,176.7 2,176.7 Intangible assets, net 852.2 900.5 Deferred tax assets, net 303.4 303.5 Marketable securities 18.8 11.4 Other long-term assets 77.2 78.3 Total assets $ 7,714.6 $ 8,283.3 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 205.5 $ 171.8 Accrued compensation and benefits 146.6 127.9 Current portion of long-term debt 499.2 — Other current liabilities 353.7 303.0 Total current liabilities 1,205.0 602.7 Long-term debt 496.2 994.3 Long-term tax liabilities 98.3 127.9 Long-term operating lease liabilities 176.4 185.9 Other long-term liabilities 86.2 35.8 Total liabilities 2,062.1 1,946.6 Commitments and contingencies (Note 9) Stockholders’ equity: Preferred stock, no par value: 25.0 shares authorized, no shares issued — — Common stock, $ 0.25 par value: 525.0 shares authorized; 148.4 shares issued and outstanding at June 27, 2025, and 159.9 shares issued and outstanding at September 27, 2024 37.1 40.0 Additional paid-in capital — 269.4 Retained earnings 5,621.1 6,032.9 Accumulated other comprehensive loss ( 5.7 ) ( 5.6 ) Total stockholders’ equity 5,652.5 6,336.7 Total liabilities and stockholders’ equity $ 7,714.6 $ 8,283.3 See accompanying Notes to Consolidated Financial Statements. 4 Table of Contents SKYWORKS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) Nine Months Ended June 27, 2025 June 28, 2024 Cash flows from operating activities: Net income $ 335.7 $ 535.5 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation 168.9 142.1 Depreciation 206.3 196.3 Amortization of intangible assets 139.8 139.6 Deferred income taxes 21.1 ( 2.2 ) Asset impairment charges — 16.8 Amortization of debt discount and issuance costs 1.5 2.0 Other, net ( 5.2 ) ( 6.6 ) Changes in assets and liabilities: Receivables, net 112.6 256.9 Inventory 85.2 291.5 Accounts payable 32.6 0.4 Other current and long-term assets and liabilities 2.3 ( 223.7 ) Net cash provided by operating activities 1,100.8 1,348.6 Cash flows from investing activities: Capital expenditures ( 139.0 ) ( 74.2 ) Purchased intangibles ( 24.1 ) ( 20.2 ) Purchases of marketable securities ( 415.9 ) ( 25.7 ) Sales and maturities of marketable securities 473.9 25.3 Other 2.2 10.3 Net cash used in investing activities ( 102.9 ) ( 84.5 ) Cash flows from financing activities: Repurchase of common stock - payroll tax withholdings on equity awards ( 43.4 ) ( 34.4 ) Repurchase of common stock - stock repurchase program ( 830.2 ) ( 77.3 ) Dividends paid ( 327.0 ) ( 327.1 ) Net proceeds from exercise of stock options — 1.1 Proceeds from employee stock purchase plan 20.0 18.2 Payments of debt — ( 300.0 ) Net cash used in financing activities ( 1,180.6 ) ( 719.5 ) Net (decrease) increase in cash and cash equivalents ( 182.7 ) 544.6 Cash and cash equivalents at beginning of period 1,368.6 718.8 Cash and cash equivalents at end of period $ 1,185.9 $ 1,263.4 Supplemental cash flow disclosures: Income taxes paid $ 137.5 $ 154.3 Interest paid $ 24.7 $ 27.7 Incentives paid in common stock $ — $ 1.2 Non-cash investing in purchased intangibles, accrued but not paid $ 84.9 $ 21.7 Non-cash investing in capital expenditures, accrued but not paid $ 35.9 $ 34.3 Operating lease assets obtained in exchange for new lease liabilities $ 27.1 $ 14.5 See accompanying Notes to Consolidated Financial Statements. 5 Table of Contents SKYWORKS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited, in millions) Shares of common stock Par value of common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders ’ equity Balance at September 27, 2024 159.9 $ 40.0 $ 269.4 $ 6,032.9 $ ( 5.6 ) $ 6,336.7 Net income — — — 162.0 — 162.0 Exercise and settlement of share-based awards, net of shares withheld for taxes 0.8 0.2 ( 38.5 ) — — ( 38.3 ) Share-based compensation expense — — 52.8 — — 52.8 Dividends declared — — — ( 112.5 ) — ( 112.5 ) Balance at December 27, 2024 160.7 $ 40.2 $ 283.7 $ 6,082.4 $ ( 5.6 ) $ 6,400.7 Net income — $ — $ — $ 68.7 $ — $ 68.7 Exercise and settlement of share-based awards, net of shares withheld for taxes 0.3 0.1 19.4 — — 19.5 Share-based compensation expense — — 66.4 — — 66.4 Repurchase of common stock ( 7.4 ) ( 1.9 ) ( 369.5 ) ( 132.9 ) — ( 504.3 ) Dividends declared — — — ( 110.6 ) — ( 110.6 ) Other comprehensive loss — — — — ( 0.1 ) ( 0.1 ) Balance at March 28, 2025 153.6 $ 38.4 $ — $ 5,907.6 $ ( 5.7 ) $ 5,940.3 Net income — $ — $ — $ 105.0 $ — $ 105.0 Exercise and settlement of share-based awards, net of shares withheld for taxes — — ( 4.5 ) — — ( 4.5 ) Share-based compensation expense — — 49.0 — — 49.0 Repurchase of common stock ( 5.2 ) ( 1.3 ) ( 44.5 ) ( 287.6 ) — ( 333.4 ) Dividends declared — — — ( 103.9 ) — ( 103.9 ) Balance at June 27, 2025 148.4 $ 37.1 $ — $ 5,621.1 $ ( 5.7 ) $ 5,652.5 Balance at September 29, 2023 159.5 $ 39.9 $ 172.4 $ 5,876.0 $ ( 5.6 ) $ 6,082.7 Net income — — — 231.3 — 231.3 Exercise and settlement of share-based awards, net of shares withheld for taxes 0.7 0.2 ( 30.6 ) — — ( 30.4 ) Share-based compensation expense — — 52.6 — — 52.6 Dividends declared — — — ( 108.9 ) — ( 108.9 ) Other comprehensive loss — — — — ( 0.1 ) ( 0.1 ) Balance at December 29, 2023 160.2 $ 40.1 $ 194.4 $ 5,998.4 $ ( 5.7 ) $ 6,227.2 Net income — $ — $ — $ 183.3 $ — $ 183.3 Exercise and settlement of share-based awards, net of shares withheld for taxes 0.2 — 17.5 — — 17.5 Share-based compensation expense — — 40.3 — — 40.3 Dividends declared — — — ( 109.1 ) — ( 109.1 ) Balance at March 29, 2024 160.4 $ 40.1 $ 252.2 $ 6,072.6 $ ( 5.7 ) $ 6,359.2 Net income — $ — $ — $ 120.9 $ — $ 120.9 Exercise and settlement of share-based awards, net of shares withheld for taxes 0.1 — ( 1.0 ) — — ( 1.0 ) Share-based compensation expense — — 43.8 — — 43.8 Repurchase of common stock ( 0.8 ) ( 0.2 ) ( 77.2 ) — — ( 77.4 ) Dividends declared — — — ( 109.1 ) — ( 109.1 ) Balance at June 28, 2024 159.7 $ 39.9 $ 217.8 $ 6,084.4 $ ( 5.7 ) $ 6,336.4 See accompanying Notes to Consolidated Financial Statements. 6 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Skyworks Solutions, Inc., together with its consolidated subsidiaries (“Skyworks” or the “Company”), is a leading developer, manufacturer and provider of analog and mixed-signal semiconductor products and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearables. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures, normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. However, in management’s opinion, the financial information reflects all adjustments, including those of a normal recurring nature, necessary to present fairly the results of operations, financial position, and cash flows of the Company for the periods presented. The results of operations, financial position, and cash flows for the Company during the interim periods are not necessarily indicative of those expected for the full year. This information should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024, filed with the SEC on November 15, 2024, as amended by Amendment No. 1 to such Annual Report on Form 10-K, filed with the SEC on January 24, 2025 (“2024 10-K”). Certain items in the prior period financial statements have been reclassified to conform to the current period presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue, expenses, comprehensive income, and accumulated other comprehensive loss that are reported during the reporting period. The Company evaluates its estimates on an ongoing basis using historical experience and other factors, including the current economic environment. Judgment is required in determining the reserves for, and fair value of, items such as overall fair value assessments of assets and liabilities, particularly those classified as Level 2 or Level 3 in the fair value hierarchy, marketable securities, inventory, intangible assets associated with business combinations, share-based compensation, revenue reserves, loss contingencies, and income taxes. In addition, judgment is required in determining whether a potential indicator of impairment of long-lived assets, indefinite-lived intangible assets, and goodwill exists and in estimating future cash flows for any necessary impairment testing. Actual results could differ significantly from these estimates. The Company’s fiscal year ends on the Friday closest to September 30. The fiscal year ending on October 3 , 2025 consists of 53 weeks (“fiscal 2025 ”). The fiscal year ended on September 27, 2024 consisted of 52 weeks (“fiscal 2024”). The three and nine months ended June 27, 2025, and June 28, 2024, each consisted of 13 weeks and 39 weeks, respectively. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure” (“ASU 2023-07”). ASU 2023-07 requires disclosure of incremental segment information on an annual and interim basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, on either a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”). ASU 2024-03 requires disaggregated disclosure of certain expense captions into specified categories in the notes to financial statements on an annual and interim basis. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027, on either a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures. 7 Table of Contents 2. REVENUE RECOGNITION The Company presents net revenue by geographic area, based upon the location of the original equipment manufacturers’ (“OEMs”) headquarters, and by sales channel, as it believes that doing so best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Individually insignificant OEMs are presented based upon the location of the Company’s direct customer, which is typically a distributor. Net revenue by geographic area is as follows (in millions): Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 United States $ 724.7 $ 658.5 $ 2,295.5 $ 2,422.8 Taiwan 75.8 80.7 195.6 226.1 China 64.6 75.9 193.7 232.7 South Korea 45.5 52.9 140.0 158.1 Europe, Middle East, and Africa 44.4 31.3 133.1 87.6 Other Asia-Pacific 10.0 6.2 28.8 25.7 Total net revenue $ 965.0 $ 905.5 $ 2,986.7 $ 3,153.0 Net revenue by sales channel is as follows (in millions): Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Distributors $ 816.8 $ 767.1 $ 2,590.2 $ 2,745.0 Direct customers 148.2 138.4 396.5 408.0 Total net revenue $ 965.0 $ 905.5 $ 2,986.7 $ 3,153.0 The Company’s revenue from external customers is generated principally from the sale of semiconductor products. Accordingly, the Company considers its product offerings to be similar in nature and therefore not segregated for reporting purposes. 3. MARKETABLE SECURITIES The Company’s portfolio of available-for-sale marketable securities consists of the following (in millions): Current Noncurrent June 27, 2025 September 27, 2024 June 27, 2025 September 27, 2024 U.S. Treasury and government securities $ 53.1 $ 39.0 $ 18.8 $ 11.1 Corporate bonds and notes 78.6 155.0 — 0.3 Municipal bonds 0.3 0.1 — — Total marketable securities $ 132.0 $ 194.1 $ 18.8 $ 11.4 The contractual maturities of noncurrent available-for-sale marketable securities were within two years or less of issuance of the applicable securities. Neither gross unrealized gains and losses nor realized gains and losses were material as of June 27, 2025, or September 27, 2024. 8 Table of Contents 4. FAIR VALUE Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less-active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. • Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company. Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions): As of June 27, 2025 September 27, 2024 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Cash and cash equivalents (1) $ 1,185.9 $ 1,127.7 $ 58.2 $ — $ 1,368.6 $ 1,199.1 $ 169.5 $ — U.S. Treasury and government securities 71.9 51.9 20.0 — 50.1 36.5 13.6 — Corporate bonds and notes 78.6 — 78.6 — 155.3 — 155.3 — Municipal bonds 0.3 — 0.3 — 0.1 — 0.1 — Total assets at fair value $ 1,336.7 $ 1,179.6 $ 157.1 $ — $ 1,574.1 $ 1,235.6 $ 338.5 $ — (1) Cash equivalents included in Levels 1 and 2 consist of money market funds, municipal bonds, corporate bonds and notes, and U.S. Treasury and government securities purchased with less than ninety days until maturity. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company’s non-financial assets and liabilities, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and are subsequently re-measured if there are indicators of impairment. There were no indicators of impairment identified during the three and nine months ended June 27, 2025. During the three and nine months ended June 28, 2024, the Company recorded impairment charges of $ 0.7 million and $ 16.8 million, respectively. The impairment charges for the nine months ended June 28, 2024 primarily related to the abandonment of a previously capitalized in-process research and development (“IPR&D”) project recorded within restructuring, impairment, and other charges. Fair Value of Debt The Company’s debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair values are based on Level 2 inputs as the fair value is based on quoted prices for the Company’s debt and comparable instruments in inactive markets. The carrying amount and estimated fair value of debt consists of the following (in millions): As of June 27, 2025 September 27, 2024 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 1.80% Senior Notes due 2026 $ 499.2 $ 486.4 $ 498.5 $ 478.4 3.00% Senior Notes due 2031 496.2 439.4 495.8 441.2 Total debt under Senior Notes $ 995.4 $ 925.8 $ 994.3 $ 919.6 9 Table of Contents 5. INVENTORY Inventory consists of the following (in millions): As of June 27, 2025 September 27, 2024 Raw materials $ 37.2 $ 30.3 Work-in-process 504.8 520.5 Finished goods 164.5 234.0 Total inventory $ 706.5 $ 784.8 6. PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment, net consists of the following (in millions): As of June 27, 2025 September 27, 2024 Land and improvements $ 11.9 $ 11.9 Buildings and improvements 639.2 610.2 Furniture and fixtures 95.9 81.3 Machinery and equipment 3,453.6 3,418.0 Construction in progress 92.1 88.7 Total property, plant, and equipment, gross 4,292.7 4,210.1 Accumulated depreciation ( 3,078.9 ) ( 2,929.8 ) Total property, plant, and equipment, net $ 1,213.8 $ 1,280.3 7. GOODWILL AND INTANGIBLE ASSETS There were no changes to the carrying amount of goodwill during the three and nine months ended June 27, 2025. The Company tests its goodwill and its indefinite-lived intangible assets for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if certain events occur indicating the carrying value may be impaired. There were no indicators of goodwill and IPR&D impairment noted during the three and nine months ended June 27, 2025. Refer to Note 4 for a discussion of an IPR&D impairment of $ 16.1 million during the nine months ended June 28, 2024. There were no indicators of IPR&D impairment noted during the three months ended June 28, 2024. Intangible assets consist of the following (in millions): As of Weighted Average Amortization Period (Years) June 27, 2025 September 27, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology and other 6.4 $ 1,388.6 $ ( 640.6 ) $ 748.0 $ 1,379.6 $ ( 540.7 ) $ 838.9 Technology licenses 3.1 165.7 ( 72.2 ) 93.5 75.0 ( 48.8 ) 26.2 In-process research and development 10.7 — 10.7 35.4 — 35.4 Total intangible assets $ 1,565.0 $ ( 712.8 ) $ 852.2 $ 1,490.0 $ ( 589.5 ) $ 900.5 Fully amortized intangible assets are eliminated from both the gross and accumulated amortization amounts in the first quarter of each fiscal year. During the nine months ended June 27, 2025, $ 24.7 million of IPR&D assets were transferred to definite-lived intangible assets, and are being amortized over their useful lives of 8 years. During the three months ended June 28, 2024, $ 33.4 million of IPR&D assets were transferred to definite-lived intangible assets, and are being amortized over their useful lives 10 Table of Contents of 12 years. During the nine months ended June 28, 2024, $ 89.1 million of IPR&D assets were transferred to definite-lived intangible assets, of which $ 33.4 million is being amortized over their useful lives of 12 years and $ 55.7 million is being amortized over their useful lives of 8 years. Amortization expense related to definite-lived intangible assets was $ 45.8 million and $ 139.8 million for the three and nine months ended June 27, 2025, respectively, primarily recorded within cost of goods sold. Amortization expense related to definite-lived intangible assets was $ 46.0 million and $ 139.6 million for the three and nine months ended June 28, 2024, respectively, primarily recorded within cost of goods sold. Annual amortization expense for the next five fiscal years related to definite-lived intangible assets, excluding IPR&D, is expected to be as follows (in millions): Remaining 2025 2026 2027 2028 2029 Thereafter Amortization expense $ 44.2 $ 171.7 $ 157.7 $ 123.4 $ 90.0 $ 254.5 8. INCOME TAXES The provision for income taxes consists of the following components (in millions): Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Provision for income taxes $ 7.0 $ 12.5 $ 69.0 $ 42.5 Effective tax rate 6.3 % 9.4 % 17.0 % 7.4 % The difference between the Company’s effective tax rate and the 21.0 % United States federal statutory rate for the three and nine months ended June 27, 2025 and June 28, 2024 resulted primarily from foreign earnings taxed at rates lower than the federal statutory rate, a benefit from foreign-derived intangible income deduction (“FDII”), and research and experimentation and foreign tax credits earned, partially offset by a tax on global intangible low-taxed income (“GILTI”) and tax expense related to share-based compensation shortfalls. In August 2022, the U.S. government enacted the Inflation Reduction Act, which imposes a corporate alternative minimum tax (“CAMT”) of 15% on corporations with three-year average annual adjusted financial statement income exceeding $1.0 billion. The Company was subject to the provisions of CAMT beginning in fiscal 2024. CAMT had no impact to the Company’s consolidated financial statements during the three and nine months ended June 27, 2025 and June 28, 2024, respectively. In December 2021, the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) released Global Anti-Base Erosion (“GloBE”) rules under Pillar Two. Many countries have implemented laws based on Pillar Two which is effective for the Company beginning in fiscal 2025. Pillar Two did not have a material impact on the Company's consolidated financial statements during the three and nine months ended June 27, 2025. In July 2025, the U.S. government enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains numerous provisions, including the permanent extension or restoration of certain expiring corporate income tax provisions, originally introduced by the Tax Cuts and Jobs Act of 2017, and incremental modifications to the international tax framework. Skyworks is currently evaluating the provisions of the OBBBA and its impact to the Company. 9. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, various lawsuits, claims, and proceedings have been, and may in the future be, instituted or asserted against the Company, including those pertaining to patent infringement, intellectual property, securities litigation, environmental hazards, product liability and warranty, safety and health, employment, and contractual matters. 11 Table of Contents The semiconductor industry is characterized by vigorous protection and pursuit of intellectual property rights. From time to time, third parties have asserted and may in the future assert patent, copyright, trademark, and other intellectual property rights to technologies that are important to the Company’s business and have demanded and may in the future demand that the Company license their technology. The outcome of any such litigation cannot be predicted with certainty and some such lawsuits, claims, or proceedings may be disposed of unfavorably to the Company. Generally speaking, intellectual property disputes often have a risk of injunctive relief, which, if imposed against the Company, could materially and adversely affect the Company’s financial condition or results of operations. From time to time the Company may also be involved in legal proceedings in the ordinary course of business. The Company monitors the status of legal proceedings and other contingencies on an ongoing basis to assess whether loss contingencies should be recognized and disclosed in its financial statements and footnotes. Other than as described below, the Company does not believe there are any pending legal proceedings that are at least reasonably possible to result in a material loss. On June 20, 2025, Denso Corporation filed patent infringement litigation against the Company in the U.S. (United States District Court for the Central District of California) and Japan (Civil Division of the Osaka District Court). Denso alleges that the Company has and is willfully infringing Denso’s U.S. patent (7,758,979) and Japan patent (JP5190841), each relating to piezoelectric thin film. Denso is seeking monetary damages, including enhanced damages, interest, fees and costs, and injunctive relief. While the Company is unable to reasonably estimate a range for the ultimate outcome of these suits, the Company believes it has substantial defenses and intends to vigorously oppose the suits. In addition to the above matter, the Company is engaged in various legal actions in the normal course of business and, while there can be no assurances, the Company believes the outcome of such pending legal actions will not have, individually or in the aggregate, a material adverse effect on its business or financial statements. Guarantees and Indemnities The Company has made no significant contractual guarantees for the benefit of third parties. However, the Company generally indemnifies its customers from third-party intellectual property infringement litigation claims related to its products and, on occasion, also provides other indemnities related to product sales. In connection with certain facility leases, the Company has indemnified its lessors for certain claims arising from the facility or the lease. The Company indemnifies its directors and officers to the maximum extent permitted under the laws of the state of Delaware. The duration of the indemnities varies and in many cases is indefinite. The indemnities to customers in connection with product sales generally are subject to limits based upon the amount of the related product sales and in many cases are subject to geographic and other restrictions. In certain instances, the Company’s indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities in the accompanying consolidated balance sheets and does not expect that such obligations will have a material adverse impact on its financial statements. Purchase Commitments The Company purchases materials primarily pursuant to individual purchase orders, some of which have underlying master purchase agreements. Some of these purchase commitments are cancelable, and some are non-cancelable, depending on the terms with each individual supplier. In the event of cancellation, the Company may be required to pay costs incurred through the date of cancellation or other fees. When cancellation would result in incurring costs or other fees, the Company has historically sought to negotiate amended terms to the original agreements and orders to limit its exposure. As such, the Company believes that purchase commitments as of any particular date may not be a reliable indicator of future liabilities. The Company maintains certain minimum purchase commitments under long-term capacity reservation agreements primarily with foundries for the purchase of wafers. Under these agreements, the Company has agreed to pay a combination of refundable deposits and prepayments to the suppliers in exchange for reserved manufacturing production capacity over the term of the agreemen ts. As of June 27, 2025, deposits and prepayments under the long-term capacity reservation agreements were $ 90.4 million, with $ 69.4 million recorded within other current assets and $ 21.0 million recorded within other long-term assets. As of September 27, 2024, deposits and prepayments under the long-term capacity reservation agreements were $ 167.8 million, with $ 144.7 million recorded within other current assets and $ 23.1 million recorded within other long-term assets. 12 Table of Contents 10. STOCKHOLDERS’ EQUITY Stock Repurchase and Retirement On February 4, 2025, the Board of Directors approved a stock repurchase program (“February 4, 2025 stock repurchase program”), pursuant to which the Company is authorized to repurchase up to $ 2.0 billion of its common stock from time to time through February 3, 2027 , on the open market or in privately negotiated transactions, in compliance with applicable securities laws and other legal requirements. The February 4, 2025 stock repurchase program succeeds in its entirety the stock repurchase program approved by the Board of Directors on January 31, 2023 (“January 31, 2023 stock repurchase program”). The timing and amount of any shares of the Company’s common stock that are repurchased under the February 4, 2025 stock repurchase program will be determined by the Company’s management based on its evaluation of market conditions and other factors. The February 4, 2025 stock repurchase program may be suspended or discontinued at any time. The Company currently expects to fund the February 4, 2025 stock repurchase program using the Company’s working capital. During the three months ended June 27, 2025, the Company repurchased 5.2 million shares of its common stock for $ 333.4 million (including commissions and excise tax, as applicable), all of which shares were repurchased pursuant to the February 4, 2025 stock repurchase program. During the nine months ended June 27, 2025, the Company repurchased 12.6 million shares of its common stock for $ 837.7 million (including commissions and excise tax, as applicable), all of which shares were repurchased pursuant to the February 4, 2025 stock repurchase program. As of June 27, 2025, approximately $ 1.2 billion remained available under the February 4, 2025 stock repurchase program. During each of the three and nine months ended June 28, 2024, the Company repurchased 0.8 million shares of its common stock for $ 77.4 million (including commissions and excise tax, as applicable), all of which shares were repurchased pursuant to the January 31, 2023 stock repurchase program. Dividends On August 5, 2025 , the Company announced that the Board of Directors had declared a cash dividend on the Company’s common stock of $ 0.71 per share. This dividend is payable on September 16, 2025 , to the Company’s stockholders of record as of the close of business on August 26, 2025 . Future dividends are subject to declaration by the Board of Directors. Dividends charged to retained earnings were as follows (in millions, except per share data): Fiscal Years Ended October 3 , 2025 September 27, 2024 Per Share Total Amount Per Share Total Amount First quarter $ 0.70 $ 112.5 $ 0.68 $ 108.9 Second quarter 0.70 110.6 0.68 109.1 Third quarter 0.70 103.9 0.68 109.1 Total dividends $ 2.10 $ 327.0 $ 2.04 $ 327.1 Share-based Compensation The following table summarizes the share-based compensation expense by line item in the Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Cost of goods sold $ 8.5 $ 5.7 $ 21.5 $ 26.1 Research and development 32.8 21.8 86.0 67.1 Selling, general, and administrative 13.9 15.2 48.9 48.9 Restructuring, impairment, and other charges — — 12.5 — Total share-based compensation $ 55.2 $ 42.7 $ 168.9 $ 142.1 13 Table of Contents 11. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share amounts): Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net income $ 105.0 $ 120.9 $ 335.7 $ 535.5 Weighted average shares outstanding – basic 150.0 160.4 156.3 160.2 Dilutive effect of equity-based awards 0.3 1.0 0.6 1.2 Weighted average shares outstanding – diluted 150.3 161.4 156.9 161.4 Net income per share – basic $ 0.70 $ 0.75 $ 2.15 $ 3.34 Net income per share – diluted $ 0.70 $ 0.75 $ 2.14 $ 3.32 Anti-dilutive common stock equivalents 2.4 0.3 1.3 — Basic earnings per share are calculated by dividing net income by the weighted average number of shares of the Company’s common stock outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of equity-based awards that were outstanding during the three and nine months ended June 27, 2025, and June 28, 2024, using the treasury stock method. Shares issuable upon the vesting of performance stock awards are likewise included in the calculation of diluted earnings per share as of the date the condition(s) have been satisfied, assuming the end of the reporting period was the end of the contingency period. Certain of the Company’s outstanding share-based awards, noted in the table above, were excluded because they were anti-dilutive, but they could become dilutive in the future. 12. SUPPLEMENTAL FINANCIAL INFORMATION Other current assets consist of the following (in millions): As of June 27, 2025 September 27, 2024 Prepaid expenses $ 198.4 $ 234.8 Other 257.4 249.9 Total other current assets $ 455.8 $ 484.7 Other current liabilities consist of the following (in millions): As of June 27, 2025 September 27, 2024 Accrued customer liabilities $ 181.0 $ 192.2 Accrued taxes 64.7 52.5 Short-term operating lease liabilities 36.0 20.2 Other 72.0 38.1 Total other current liabilities $ 353.7 $ 303.0 14 Table of Contents ITEM 2. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This report and other documents we have filed with the SEC contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and are subject to the “safe harbor” created by those sections. Any statements that are not statements of historical fact should be considered to be forward-looking statements. Words such as “anticipates”, “believes”, “continue”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “seek”, “should”, “targets”, “will”, “would”, and similar expressions or variations or negatives of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this report. Additionally, statements concerning future matters such as the possible impacts of geopolitical conflicts, tariffs, export controls, inflation, recession, and global health crises, as well as the development of new products, enhancements of technologies, sales levels, expense levels, the benefits of acquisitions we have made or may make in the future, and other statements regarding matters that are not historical are forward-looking statements. Although forward-looking statements in this report reflect the good faith judgment of our management as of the date the statement is first made, such statements can only be based on facts and factors then known and understood by us. Consequently, forward-looking statements involve inherent risks and uncertainties, and actual financial results and outcomes may differ materially and adversely from the results and outcomes discussed in or anticipated by the forward-looking statements. A number of important factors could cause actual financial results to differ materially and adversely from those in the forward-looking statements. We urge you to consider the risks and uncertainties discussed in the 2024 10-K, under the heading “Risk Factors” and in the other documents filed by us with the SEC in evaluating our forward-looking statements. We have no plans, and undertake no obligation, to revise or update our forward-looking statements to reflect any event or circumstance that may arise after the date of the initial filing of this Quarterly Report on Form 10-Q. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. In this document, the words “we”, “our”, “ours”, “us”, “Skyworks”, and “the Company” refer only to Skyworks Solutions, Inc., and its consolidated subsidiaries and not any other person or entity. 15 Table of Contents RESULTS OF OPERATIONS Three and Nine Months Ended June 27, 2025, and June 28, 2024 The following table sets forth the results of our operations expressed as a percentage of net revenue: Three Months Ended Nine Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net revenue 100.0 % 100.0 % 100.0 % 100.0 % Cost of goods sold 58.4 59.8 58.7 59.1 Gross profit 41.6 40.2 41.3 40.9 Operating expenses: Research and development 20.7 17.7 18.8 14.8 Selling, general, and administrative 9.2 7.9 8.7 7.2 Amortization of intangibles — — — — Restructuring, impairment, and other charges 0.2 0.2 0.8 0.6 Total operating expenses 30.1 25.8 28.3 22.6 Operating income 11.5 14.4 13.0 18.3 Interest expense (0.7) (0.7) (0.7) (0.8) Other income, net 0.8 1.1 1.2 0.8 Income before income taxes 11.6 14.8 13.5 18.3 Provision for income taxes 0.7 1.4 2.3 1.3 Net income 10.9 % 13.4 % 11.2 % 17.0 % OVERVIEW We, together with our consolidated subsidiaries, are a leading developer, manufacturer and provider of analog and mixed-signal semiconductor products and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearables. General During the three months ended June 27, 2025, the following key factors contributed to our overall results of operations, financial position, and cash flows: • Net revenue increased to $965.0 million for the three months ended June 27, 2025, as compared to $905.5 million for the corresponding period in fiscal 2024, driven primarily by an increase in demand for our mobile and Wi-Fi products. • Our ending cash, cash equivalents, and marketable securities balance decreased to $1,336.7 million. The decrease in cash, cash equivalents, and marketable securities during the three months ended June 27, 2025, was primarily due to share repurchases of $330.2 million, dividend payments of $103.9 million, and capital expenditures of $61.4 million, partially offset by cash generated from operations of $314.1 million. • On May 29, 2025, the Board of Directors appointed Robert A. Schriesheim, a current member of the Board, as interim Chief Financial Officer of the Company, effective immediately. 16 Table of Contents Net Revenue Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Net revenue $ 965.0 6.6% $ 905.5 $ 2,986.7 (5.3)% $ 3,153.0 We market and sell our products indirectly through electronic components distributors and directly to OEMs of communications and electronics products, third-party original design manufacturers, and contract manufacturers. We generally experience seasonal peaks during our fourth and first fiscal quarters (which correspond to the second half of the calendar year), primarily as a result of increased worldwide production of consumer electronics in anticipation of holiday sales, whereas our second and third fiscal quarters are typically lower and in line with seasonal industry trends. In addition, beginning in the fourth quarter of fiscal 2025, we expect revenues will be negatively impacted by a decrease in market share at a significant customer. The increase in net revenue for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was driven primarily by an increase in demand for our mobile and Wi-Fi products. The decrease in net revenue for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was driven primarily by a decrease in demand for our mobile products partially offset by an increase in demand for our Wi-Fi products. Gross Profit Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Gross profit $ 401.0 10.1% $ 364.1 $ 1,234.6 (4.4)% $ 1,291.0 % of net revenue 41.6 % 40.2 % 41.3 % 40.9 % Gross profit represents net revenue less cost of goods sold. Our cost of goods sold consists primarily of purchased materials, labor, and overhead (including depreciation, share-based compensation expense, and amortization of acquisition intangibles) associated with product manufacturing. Erosion of average selling prices of established products is typical of the semiconductor industry. Consistent with trends in the industry, we anticipate that average selling prices for our established products will continue to decline over time. As part of our normal course of business, we intend to improve gross profit with efforts to increase unit volumes, improve manufacturing efficiencies, lower manufacturing costs of existing products, and by introducing new and higher value-added products. The increase in gross profit for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily the result of higher unit volumes. The decrease in gross profit for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily the result of unfavorable product mix and lower average selling prices, partially offset by higher unit volumes. Research and Development Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Research and development $ 199.4 24.1% $ 160.7 $ 562.4 20.1% $ 468.1 % of net revenue 20.7 % 17.7 % 18.8 % 14.8 % Research and development expenses consist primarily of direct personnel costs including share-based compensation expense, costs for pre-production evaluation units and testing of new devices, non-production masks, engineering prototypes, and design tool costs. The increase in research and development expenses for the three and nine months ended June 27, 2025, as compared with the corresponding periods in fiscal 2024, was primarily related to increases in certain headcount-related expenses, including share-based compensation and costs for engineering prototypes as a result of our increased investment in developing new technologies and products. 17 Table of Contents Selling, General, and Administrative Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Selling, general, and administrative $ 89.3 25.4% $ 71.2 $ 259.9 14.6% $ 226.7 % of net revenue 9.2 % 7.9 % 8.7 % 7.2 % Selling, general, and administrative expenses include legal and related costs, accounting, treasury, human resources, information systems, customer service, bad debt expense, sales commissions, share-based compensation expense, advertising, marketing, costs associated with business combinations completed or contemplated during the period, and other costs. The increase in selling, general, and administrative expenses for the three and nine months ended June 27, 2025, as compared with the corresponding periods in fiscal 2024, was primarily related to increases in headcount-related expenses and increases in professional services costs. Amortization of Intangibles Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Amortization of intangibles $ 0.2 —% $ 0.2 $ 0.7 —% $ 0.7 % of net revenue — % — % — % — % Amortization expense of intangible assets was consistent for the three and nine months ended June 27, 2025, as compared with the corresponding periods in fiscal 2024. Restructuring, Impairment, and Other Charges Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Restructuring, impairment, and other charges $ 1.5 (6.3)% $ 1.6 $ 22.6 29.1% $ 17.5 % of net revenue 0.2 % 0.2 % 0.8 % 0.6 % Restructuring, impairment, and other charges were consistent for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024. The increase in restructuring, impairment, and other charges for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily due to restructuring charges incurred in connection with the transition of our Chief Executive Officer. Interest Expense Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Interest expense $ 6.6 —% $ 6.6 $ 20.2 (15.1)% $ 23.8 % of net revenue 0.7 % 0.7 % 0.7 % 0.8 % Interest expense was consistent for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024. The decrease in interest expense for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was due to certain debt repayments in prior periods that reduced the amount of outstanding indebtedness. 18 Table of Contents Other Income, Net Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Other income, net $ 8.0 (16.7)% $ 9.6 $ 35.9 50.8% $ 23.8 % of net revenue 0.8 % 1.1 % 1.2 % 0.8 % The decrease in other income, net for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily due to an increase in foreign currency remeasurement losses partially offset by interest income generated from cash, cash equivalents, and marketable securities. The increase in other income, net for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily due to an increase in interest income generated from cash, cash equivalents, and marketable securities. Provision for Income Taxes Three Months Ended Nine Months Ended (dollars in millions) June 27, 2025 Change June 28, 2024 June 27, 2025 Change June 28, 2024 Provision for income taxes $ 7.0 (44.0)% $ 12.5 $ 69.0 62.4% $ 42.5 % of net revenue 0.7 % 1.4 % 2.3 % 1.3 % We recorded a provision for income taxes of $7.0 million and $69.0 million for the three and nine months ended June 27, 2025, respectively. The decrease in income tax expense for the three months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily due to the geographical mix of worldwide earnings and a decrease in Global Intangible Low-Taxed Income (“GILTI”), net of foreign tax credits. The increase in income tax expense for the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily due to higher foreign taxes including the tax impact of remeasuring existing net deferred tax liabilities in Singapore and a lower Foreign-Derived Intangible Income (“FDII”) benefit, partially offset by a decrease in GILTI, net of foreign tax credits. We continue to monitor changes in tax laws that could arise related to the BEPS project of the OECD, including Pillar Two. Many countries have implemented laws based on Pillar Two which is effective for us beginning in fiscal 2025. While we do not expect these enacted laws to materially impact our effective tax rate for fiscal 2025, we continue to evaluate the impact of proposed and enacted legislative changes to our effective tax rate as new guidance becomes available. We are also in the process of evaluating the impact of the OBBBA on our business. LIQUIDITY AND CAPITAL RESOURCES Nine Months Ended (in millions) June 27, 2025 June 28, 2024 Cash and cash equivalents at beginning of period $ 1,368.6 $ 718.8 Net cash provided by operating activities 1,100.8 1,348.6 Net cash used in investing activities (102.9) (84.5) Net cash used in financing activities (1,180.6) (719.5) Cash and cash equivalents at end of period $ 1,185.9 $ 1,263.4 Cash provided by operating activities: Cash provided by operating activities consists of net income for the period adjusted for certain non-cash items and changes in certain operating assets and liabilities. The $247.8 million decrease in cash provided by operating activities during the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily related to lower net income and a smaller decrease in working capital of $92.4 million, due primarily to inventory and accounts receivable. 19 Table of Contents Cash used in investing activities: Cash used in investing activities consists primarily of cash paid to purchase marketable securities, capital expenditures, and cash paid to acquire intangible assets, partially offset by cash received related to the sale or maturity of marketable securities. The $18.4 million increase in cash used in investing activities during the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily related to an increase of $390.2 million in purchases of marketable securities and an increase of $64.8 million in capital expenditures, partially offset by an increase of $448.6 million in the sale or maturity of marketable securities. Cash used in financing activities: Cash used in financing activities consists primarily of cash transactions related to equity and proceeds and payments related to our long-term borrowings. The $461.1 million increase in cash used in financing activities during the nine months ended June 27, 2025, as compared with the corresponding period in fiscal 2024, was primarily related to an increase of $752.9 million in share repurchases, partially offset by a decrease of $300.0 million for the repayment of debt. Liquidity: Cash, cash equivalents, and marketable securities totaled $1,336.7 million as of June 27, 2025, representing a decrease of $237.4 million from September 27, 2024. We have outstanding $500.0 million of Notes Due 2026 and $500.0 million of Notes Due 2031 (the “Notes”). We have a Revolving Credit Agreement (the “Revolving Credit Agreement”) under which we may borrow up to $750.0 million for general corporate purposes and working capital needs of the Company and its subsidiaries. As of June 27, 2025, there were no borrowings outstanding under the revolving credit facility (the “Revolver”). The Revolving Credit Agreement expires July 26, 2026. Based on our historical results of operations, we expect that our cash, cash equivalents, and marketable securities on hand, the cash we expect to generate from operations, and funds from our Revolver, will be sufficient to fund our short-term and long-term liquidity requirements primarily arising from: research and development, capital expenditures, potential acquisitions, working capital, quarterly cash dividend payments (if such dividends are declared by the Board of Directors), share repurchases, outstanding commitments, and other liquidity requirements associated with existing operations. However, we cannot be certain that our cash, cash equivalents, and marketable securities on hand, cash generated from operations, and funds from our Revolver will be available in the future to fund all of our capital and operating requirements. In addition, any future strategic investments and significant acquisitions may require additional cash and capital resources. If we are unable to obtain sufficient cash or capital to meet our needs on a timely basis and on favorable terms, our business and operations could be materially and adversely affected. Our invested cash balances primarily consist of highly liquid marketable securities that are available to meet near-term cash requirements including: money market funds, U.S. Treasury and government securities, corporate bonds and notes, and municipal bonds. Our contractual obligations disclosure in the 2024 10-K has not materially changed since we filed that report.