v3.26.1
Segment Data (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Reportable Segments
Information relative to our reportable segments was as follows (in thousands):
Three Months Ended June 30,
20262025
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Net sales$506,553 $397,836 $904,389 $376,360 $292,178 $668,538 
Cost of sales(243,861)(114,081)(357,942)(193,507)(71,288)(264,795)
Other segment items (1)
7,646 15,030 22,676 9,550 9,685 19,235 
Adjusted gross margin$270,338 $298,785 $569,123 $192,403 $230,575 $422,978 
Other segment items (1)
(22,676)(19,235)
Selling, general and administrative(290,982)(242,212)
Research and development(208,687)(162,567)
Interest income6,815 23,253 
Interest expense(28,101)(28,686)
Other income (loss), net7,192 (32,414)
Income (loss) before provision for income taxes$32,684 $(38,883)
(1)    Other segment items includes adjustments for noncash stock-based compensation expense, amortization of acquired intangible assets, compensation taxes related to Employee XSP vesting, and non-recurring severance costs to arrive at the profit measure used by the CODM.
Six Months Ended June 30,
20262025
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Net sales$959,374 $752,360 $1,711,734 $717,256 $554,915 $1,272,171 
Cost of sales(476,017)(211,984)(688,001)(363,688)(139,001)(502,689)
Other segment items (1)
15,297 27,014 42,311 18,970 18,722 37,692 
Adjusted gross margin$498,654 $567,390 $1,066,044 $372,538 $434,636 $807,174 
Other segment items (1)
(42,311)(37,692)
Selling, general and administrative(550,075)(465,721)
Research and development(397,637)(313,590)
Interest income17,426 33,857 
Interest expense(56,744)(36,507)
Other income, net196,202 81,987 
Income before provision for income taxes$232,905 $69,508 
(1)    Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, compensation taxes related to Employee XSP vesting, non-recurring severance costs, and inventory step-up amortization related to acquisitions 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,
20262025
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Depreciation and amortization
$12,429 $9,037 $21,466 $8,310 $4,098 $12,408 
Significant noncash items:
Stock-based compensation expense
5,516 5,825 11,341 7,583 4,978 12,561 
Warranty reserve expense3,766 — 3,766 3,015 — 3,015 
Provisions for inventory
(223)— (223)995 — 995 
Six Months Ended June 30,
20262025
Connected DevicesSoftware and ServicesTotalConnected DevicesSoftware and ServicesTotal
Depreciation and amortization$24,195 $17,052 $41,247 $17,595 $8,057 $25,652 
Significant noncash items:
Stock-based compensation expense11,291 10,553 21,844 15,059 10,389 25,448 
Warranty reserve expense6,855 — 6,855 6,794 — 6,794 
Provisions for inventory714 — 714 1,841 — 1,841