On May 27, 2024, Teradyne paid 483.1 million Euros, equivalent to $524.1 million, to purchase a combination of previously issued and outstanding shares and shares newly issued by Technoprobe, S.p.A. (“Technoprobe”). The shares purchased represent 10% of the issued and outstanding shares of Technoprobe. Teradyne also received a board seat as part of the purchase. Teradyne accounts for this investment using the equity method as a result of being able to exercise significant influence over the operating and financial decisions of Technoprobe.

The following table summarizes the change in the carrying value of our equity method investment:


	For the Three Months Ended						For the Six Months Ended
	June 28, 2026			June 29, 2025			June 28, 2026			June 29, 2025
	(in thousands)
Balance at beginning of period	$	522,583		$	509,626		$	537,098		$	494,494
Other comprehensive income related to investment		(5,680	)		41,715			(15,584	)		62,431
Equity in net earnings of affiliate		(1,946	)		(5,927	)		(6,557	)		(11,511	)
Balance at end of period	$	514,957		$	545,414		$	514,957		$	545,414

Based on the quoted closing price of Technoprobe stock as of June 28, 2026, the fair value of the publicly traded investment was $2,457.9 million.

Teradyne’s equity method basis difference was calculated as the difference between the investment and the amount of underlying equity in net assets acquired. The basis differences, net of tax, will be amortized over the estimated useful lives. Teradyne made an accounting policy election to report its share of Technoprobe’s results on a 3-month lag, which is applied consistently from period to period. Teradyne records its share of Technoprobe’s net income or loss and the amortization of equity method basis difference, as ‘Equity in net earnings of affiliate’ in the condensed consolidated statements of operations. Teradyne includes its share of Technoprobe’s other comprehensive income and a cumulative translation adjustment in the condensed consolidated statements of comprehensive income.