
	Three Months Ended June 30,
	2025						2024
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
Net sales	$	376,360	$	292,178	$	668,538	$	292,763	$	210,473	$	503,236
Cost of sales	193,507		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 income					23,253						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,
	2025						2024
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
Net sales	$	717,256	$	554,915	$	1,272,171	$	563,187	$	399,920	$	963,107
Cost of sales	363,688		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 income					33,857						23,783
Interest expense					(36,507)						(3,627)
Other income, net					81,987						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,
	2025						2024
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
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 expense	3,015		—		3,015		694		—		694


	Six Months Ended June 30,
	2025						2024
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
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 expense	6,794		—		6,794		1,813		—		1,813