| Segments |
19. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of R&D and other significant expenses, leading to decisions related to resource allocations in relation to profit and loss. Accordingly, the Company identifies two reportable segments. Effective May 1, 2025, the Company reorganized its segments. In connection with the Company’s acquisition of BlueHalo, the reorganization was implemented to drive additional operational improvements, foster synergies and provide leaders with greater autonomy over their business units. The Company’s reportable segments are Autonomous Systems and Space, Cyber and Directed Energy. The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments sales to each other are eliminated. Effective May 1, 2025, segment adjusted EBITDA is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance. Segment adjusted EBITDA is defined as segment (loss) income from operations before depreciation and amortization, adjusted for the impact of certain other non-cash items, including amortization of implementation of cloud computing arrangements, stock-based compensation, acquisition related expenses, and goodwill impairment. Prior period segment information has been revised to align with the new segment measure of profitability. | | | | | | | | | | | | Three Months Ended January 31, 2026 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 222,724 | | $ | 55,090 | | $ | 277,814 | Contract services | | | 56,020 | | | 74,211 | | | 130,231 | | | | 278,744 | | | 129,301 | | | 408,045 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 182,935 | | | 113,633 | | | 296,568 | Intangible amortization included in cost of sales | | | 7,104 | | | 5,579 | | | 12,683 | SG&A less intangible amortization | | | 44,336 | | | 23,898 | | | 68,234 | Intangible amortization included in SG&A | | | 10,035 | | | 21,145 | | | 31,180 | Research and development | | | 24,142 | | | 2,970 | | | 27,112 | Impairment of goodwill | | | — | | | 240,708 | | | 240,708 | Add: | | | | | | | | | | Depreciation | | | 7,069 | | | 3,701 | | | 10,770 | Amortization | | | 17,139 | | | 26,724 | | | 43,863 | Impairment of goodwill | | | — | | | 240,708 | | | 240,708 | Acquisition-related expenses | | | 3,914 | | | 2,976 | | | 6,890 | Amortization of cloud computing arrangement implementation | | | 1,610 | | | — | | | 1,610 | Other income (expense) | | | 396 | | | 609 | | | 1,005 | Stock-based compensation | | | 5,847 | | | 2,223 | | | 8,070 | Segment adjusted EBITDA | | $ | 46,167 | | $ | (1,691) | | $ | 44,476 |
| | | | | | | | | | | | Three Months Ended January 25, 2025 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 139,753 | | $ | — | | $ | 139,753 | Contract services | | | 27,883 | | | — | | | 27,883 | | | | 167,636 | | | — | | | 167,636 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 100,734 | | | — | | | 100,734 | Intangible amortization included in cost of sales | | | 3,703 | | | — | | | 3,703 | SG&A less intangible amortization | | | 42,712 | | | — | | | 42,712 | Intangible amortization included in SG&A | | | 1,075 | | | — | | | 1,075 | Research and development | | | 22,498 | | | — | | | 22,498 | Add: | | | | | | | | | | Depreciation | | | 4,512 | | | — | | | 4,512 | Amortization | | | 4,778 | | | — | | | 4,778 | Acquisition-related expenses | | | 10,015 | | | — | | | 10,015 | Amortization of cloud computing arrangement implementation | | | 644 | | | — | | | 644 | Other income (expense) | | | (478) | | | — | | | (478) | Stock-based compensation | | | 5,381 | | | — | | | 5,381 | Segment adjusted EBITDA | | $ | 21,766 | | $ | — | | $ | 21,766 |
| | | | | | | | | | | | Nine Months Ended January 31, 2026 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 712,971 | | $ | 203,413 | | $ | 916,384 | Contract services | | | 152,671 | | | 266,174 | | | 418,845 | | | | 865,642 | | | 469,587 | | | 1,335,229 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 548,629 | | | 414,275 | | | 962,904 | Intangible amortization included in cost of sales | | | 40,139 | | | 34,169 | | | 74,308 | SG&A less intangible amortization | | | 147,584 | | | 84,006 | | | 231,590 | Intangible amortization included in SG&A | | | 30,879 | | | 66,557 | | | 97,436 | Research and development | | | 86,028 | | | 10,191 | | | 96,219 | Impairment of goodwill | | | — | | | 240,708 | | | 240,708 | Add: | | | | | | | | | | Depreciation | | | 21,542 | | | 9,674 | | | 31,216 | Amortization | | | 71,018 | | | 100,726 | | | 171,744 | Impairment of goodwill | | | — | | | 240,708 | | | 240,708 | Acquisition-related expenses | | | 22,667 | | | 16,209 | | | 38,876 | Amortization of cloud computing arrangement implementation | | | 3,839 | | | 10 | | | 3,849 | Other income (expense) | | | (1,731) | | | 1,197 | | | (534) | Stock-based compensation | | | 20,280 | | | 7,785 | | | 28,065 | Segment adjusted EBITDA | | $ | 149,998 | | $ | (4,010) | | $ | 145,988 |
| | | | | | | | | | | | Nine Months Ended January 25, 2025 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 450,488 | | $ | — | | $ | 450,488 | Contract services | | | 95,089 | | | — | | | 95,089 | | | | 545,577 | | | — | | | 545,577 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 316,137 | | | — | | | 316,137 | Intangible amortization included in cost of sales | | | 11,136 | | | — | | | 11,136 | SG&A less intangible amortization | | | 112,287 | | | — | | | 112,287 | Intangible amortization included in SG&A | | | 3,211 | | | — | | | 3,211 | Research and development | | | 75,827 | | | — | | | 75,827 | Add: | | | | | | | | | | Depreciation | | | 12,797 | | | — | | | 12,797 | Amortization | | | 14,347 | | | — | | | 14,347 | Acquisition-related expenses | | | 13,699 | | | — | | | 13,699 | Amortization of cloud computing arrangement implementation | | | 1,894 | | | — | | | 1,894 | Other income (expense) | | | (428) | | | — | | | (428) | Stock-based compensation | | | 15,518 | | | — | | | 15,518 | Segment adjusted EBITDA | | $ | 84,806 | | $ | — | | $ | 84,806 |
The following table (in thousands) provides a reconciliation from segment adjusted EBITDA to income before income taxes: | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | January 31, | | January 25, | | January 31, | | January 25, | | | 2026 | | 2025 | | 2026 | | 2025 | Segment adjusted EBITDA | | $ | 44,476 | | $ | 21,766 | | $ | 145,988 | | $ | 84,806 | Depreciation and amortization | | | (54,633) | | | (9,290) | | | (202,960) | | | (27,144) | Impairment of goodwill | | | (240,708) | | | — | | | (240,708) | | | — | Acquisition-related expenses | | | (6,890) | | | (10,015) | | | (38,876) | | | (13,699) | Amortization of cloud computing arrangement implementation | | | (1,610) | | | (644) | | | (3,849) | | | (1,894) | Stock-based compensation | | | (8,070) | | | (5,381) | | | (28,065) | | | (15,518) | Equity securities investments activity, net | | | (1,405) | | | 1,453 | | | 7,446 | | | 1,185 | Interest expense | | | 3,696 | | | (248) | | | (9,050) | | | (1,177) | (Loss) income before income taxes | | $ | (265,144) | | $ | (2,359) | | $ | (370,074) | | $ | 26,559 |
Identifiable segment assets are summarized in the table below. Corporate assets primarily consist of cash and cash equivalents, prepaid expenses and other current assets, long-term investments, property and equipment, net, operating lease right-of-use assets, deferred income taxes and other assets managed centrally on behalf of the business segments. | | | | | | | | | | | | | | | AxS | | SCDE | | Corporate | | Total | As of January 31, 2026 | | $ | 2,299,387 | | $ | 2,043,438 | | $ | 1,021,409 | | $ | 5,364,234 | As of April 30, 2025 | | $ | 872,530 | | $ | — | | $ | 248,037 | | $ | 1,120,567 |
Capital expenditures are summarized in the table below (in thousands): | | | | | | | | | | | | | | | AxS | | SCDE | | Corporate | | Total | Nine Months Ended January 31, 2026 | | $ | 33,750 | | $ | 21,976 | | $ | 7,683 | | $ | 63,409 | Nine Months Ended January 25, 2025 | | $ | 12,527 | | $ | — | | $ | 1,765 | | $ | 14,292 |
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