
	Three Months Ended March 31, 2025
	Connected Devices		Software and Services		Total
Net sales	$	340,896	$	262,737	$	603,633
Cost of sales	170,181		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 administrative					223,509
Research and development					151,023
Interest income					10,604
Interest expense					(7,821)
Other income, net					114,401
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 Devices		Software and Services		Total
Net sales	$	270,424	$	189,447	$	459,871
Cost of sales	152,160		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 administrative					151,075
Research and development					91,097
Interest income					12,130
Interest expense					(1,756)
Other income, net					139,066
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, 2025						Three Months Ended March 31, 2024
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
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 expense	3,779		—		3,779		1,119		—		1,119