v3.25.2
Segment Data
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Data Segment Data
Segment information for the three and six months ended June 30, 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 June 30,
20252024
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Net sales$376,360 $292,178 $668,538 $292,763 $210,473 $503,236 
Cost of sales193,507 71,288 264,795 142,627 54,453 197,080 
Other segment items (1)
9,550 9,685 19,235 6,234 5,273 11,507 
Adjusted gross margin$192,403 $230,575 $422,978 $156,370 $161,293 $317,663 
Other segment items (1)
(19,235)(11,507)
Selling, general and administrative(242,212)(170,964)
Research and development(162,567)(101,434)
Interest income23,253 11,653 
Interest expense(28,686)(1,871)
Other income (loss), net(32,414)7,934 
Income (loss) before provision for income taxes$(38,883)$51,474 
(1)    Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets and payroll taxes related to 2024 Employee XSP vesting to arrive at the profit measure used by the CODM
Six Months Ended June 30,
20252024
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Net sales$717,256 $554,915 $1,272,171 $563,187 $399,920 $963,107 
Cost of sales363,688 139,001 502,689 294,787 103,536 398,323 
Other segment items (1)
18,970 18,722 37,692 34,386 9,004 43,390 
Adjusted gross margin$372,538 $434,636 $807,174 $302,786 $305,388 $608,174 
Other segment items (1)
(37,692)(43,390)
Selling, general and administrative(465,721)(322,039)
Research and development(313,590)(192,531)
Interest income33,857 23,783 
Interest expense(36,507)(3,627)
Other income, net81,987 147,000 
Income before provision for income taxes$69,508 $217,370 
(1)    Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, inventory step-up amortization related to acquisitions and payroll taxes related to 2024 Employee XSP vesting 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 June 30,
20252024
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Depreciation and amortization
$8,310 $4,098 $12,408 $6,126 $1,603 $7,729 
Significant noncash items:
Stock-based compensation expense
7,583 4,978 12,561 5,883 2,634 8,517 
Provisions for inventory
995 — 995 7,489 — 7,489 
Warranty reserve expense3,015 — 3,015 694 — 694 
Six Months Ended June 30,
20252024
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Depreciation and amortization
$17,595 $8,057 $25,652 $10,848 $3,829 $14,677 
Significant noncash items:
Stock-based compensation expense
15,059 10,389 25,448 33,710 4,402 38,112 
Provisions for inventory
1,841 — 1,841 8,843 — 8,843 
Warranty reserve expense6,794 — 6,794 1,813 — 1,813