v3.25.1
Segment Data
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Data Segment Data
As a result of the Segment Realignment and effective as of the three months ended March 31, 2025, our financial results are reported in two reportable segments, Connected Devices and Software & Services. Segment information for the three months ended March 31, 2024 has been recast to reflect the Segment Realignment. Refer to Note 1 for additional details. Information relative to our reportable segments was as follows (in thousands):
Three Months Ended March 31, 2025
Connected DevicesSoftware and ServicesTotal
Net sales$340,896 $262,737 $603,633 
Cost of sales170,181 67,713 237,894 
Other segment items (1)
9,420 9,037 18,457 
Adjusted gross margin$180,135 $204,061 $384,196 
Other segment items (1)
18,457 
Selling, general and administrative223,509 
Research and development151,023 
Interest income10,604 
Interest expense(7,821)
Other income, net114,401 
Income before provision for income taxes$108,391 
(1)    Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, and inventory step-up amortization related to acquisitions to arrive at the profit measure used by the CODM.
Three Months Ended March 31, 2024
Connected DevicesSoftware and ServicesTotal
Net sales$270,424 $189,447 $459,871 
Cost of sales152,160 49,083 201,243 
Other segment items (1)
28,152 3,731 31,883 
Adjusted gross margin$146,416 $144,095 $290,511 
Other segment items (1)
31,883
Selling, general and administrative151,075
Research and development91,097
Interest income12,130
Interest expense(1,756)
Other income, net139,066
Income before provision for income taxes$165,896 
(1)    Other segment items includes the adjustment for noncash stock-based compensation expense and amortization of acquired intangible assets to arrive at the profit measure used by the CODM.
The following table presents supplemental information included within the measure of profit or loss, adjusted gross margin, reviewed by our CODM (in thousands). There are no other material items presented to our CODM by segment or included within adjusted gross margin for supplemental disclosure.
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Depreciation and amortization
$9,285 $3,959 $13,244 $4,722 $2,226 $6,948 
Significant noncash items:
Stock-based compensation expense
7,476 5,411 12,887 27,827 1,768 29,595 
Provisions for inventory
846 — 846 1,354 — 1,354 
Warranty reserve expense3,779 — 3,779 1,119 — 1,119