v3.26.1
Segment Information
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
Note 2. Segment Information

We operate in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture. Our Chief Executive Officer is the chief operating decision maker (“CODM”) and is responsible for assessing our performance. Our organizational structure is based on functional lines, with department heads and shared resources reporting either directly to the CODM or to a direct report of the CODM. The CODM reviews financial information presented on a consolidated basis and uses net income for purposes of evaluating financial performance and making operating decisions for us.

The CODM reviews significant operating expenses as components of net income, including research and development expenses, sales and marketing expenses, and general and administrative expenses, which are each separately disclosed and presented in the condensed consolidated statements of operations.

Additionally, the CODM reviews significant segment expenses including the inventory valuation adjustment write-downs, recorded to cost of sales, which is separately disclosed in Note 6, “Balance Sheet Components”, and stock-based compensation, which is separately disclosed in Note 12, “Stock-based Compensation and Stockholders’ Equity” in the notes to the condensed consolidated financial statements.

The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets. The accounting policies of our consolidated segment are the same as those described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Disaggregation of Revenue

Total revenue recognized from all services and software for the three months ended March 31, 2026 and 2025 was $140.5 million and $71.8 million, respectively. Of this, revenue related to services recognized on an over time basis during the contract term was $104.4 million and $57.2 million for the three months ended March 31, 2026 and 2025, respectively.

Total revenue recognized from all service and software for the nine months ended March 31, 2026 and 2025 was $368.5 million and $244.5 million, respectively. Of this, revenue related to services recognized on an over time basis during the contract term was $280.4 million and $161.8 million for the nine months ended March 31, 2026 and 2025, respectively.

International net sales are based on the country to which the products were shipped. The following is a summary of net sales by geographic region (in thousands):

 Three Months Ended March 31,Nine Months Ended March 31,
 2026
% of Total
2025
% of Total
2026% of Total2025% of Total
United States$7,033,882 68.7 %$2,768,181 60.2 %$19,797,305 70.8 %$10,856,490 67.0 %
Other (1)
3,209,132 31.3 %1,831,732 39.8 %8,145,990 29.2 %5,358,641 33.0 %
Total$10,243,014 100.0 %$4,599,913 100.0 %$27,943,295 100.0 %$16,215,131 100.0 %

(1) all other countries were individually less than 10%.
Concentration of Customer Risk

Significant customer information is as follows:

Three Months Ended
March 31,		Nine Months Ended
March 31,
2026202520262025
Percentage of total net sales:
Customer A27.0%*38.5%15.1%
Customer B*22.5%*23.5%
Customer C*14.1%**
Customer D10.3%**13.5%

^The customer references of A-D above may represent different customers than those reported in a previous period.
*Below 10%

Contract Balances

Generally, the payment terms of our offerings range from 30 to 60 days, however occasionally we might offer longer payment terms to certain customers. In certain instances, customers may prepay for products and services in advance of delivery. Receivables represent our unconditional right to consideration for performance obligations that are either partially or fully completed.

Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets have not been material to our condensed consolidated financial statements.

Contract liabilities consist of deferred revenue and relate to amounts invoiced to or advance consideration received from customers, which precede our satisfaction of the associated performance obligations. Our deferred revenue primarily results from customer payments received upfront for extended warranties and on-site services because these performance obligations are satisfied over time. Additionally, at times, deferred revenue may fluctuate due to the timing of non-refundable advance consideration received from non-cancelable contracts relating to the sale of future products. Revenue recognized during the three and nine months ended March 31, 2026, which was included in the opening deferred revenue balance as of June 30, 2025 of $731.4 million, was $57.0 million and $302.8 million, respectively. Revenue recognized during the three and nine months ended March 31, 2025, which was included in the opening deferred revenue balance as of June 30, 2024 of $416.4 million, was $38.5 million and $154.0 million, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent in aggregate the amount of transaction price that has been allocated to performance obligations not delivered, or only partially delivered, as of the end of the reporting period. We apply the exemption to not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less. The remaining performance obligations excluded from this disclosure primarily relate to short-term backlog contracts expected to be fulfilled within one year, including on-site services, integration services, extended warranty services, and for product where control has not been transferred. The value of the transaction price allocated to the remaining performance obligations as of March 31, 2026 was approximately $2,135.6 million. We expect to recognize approximately 69% of such value in the next 12 months, and the remainder thereafter.