| Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income (Loss) Before Income Taxes |
Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:
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Three Months Ended |
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June 28, 2026 |
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June 29, 2025 |
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(In thousands, except percentage data) |
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Enterprise |
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Consumer |
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Total |
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Enterprise |
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Consumer |
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Total |
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Net revenue |
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$ |
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88,954 |
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$ |
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79,608 |
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$ |
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168,562 |
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$ |
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82,621 |
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$ |
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87,911 |
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$ |
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170,532 |
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Segment cost of revenue |
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40,854 |
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57,890 |
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44,036 |
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62,062 |
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Segment gross profit |
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48,100 |
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21,718 |
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69,818 |
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38,585 |
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25,849 |
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$ |
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64,434 |
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Segment gross margin |
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54.1 |
% |
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27.3 |
% |
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46.7 |
% |
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29.4 |
% |
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Reconciliation of gross profit |
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Amortization of intangible assets |
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(1,416 |
) |
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- |
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Stock-based compensation expense |
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(616 |
) |
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(456 |
) |
Total Consolidated gross profit |
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$ |
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67,786 |
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$ |
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63,978 |
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Segment operating expenses |
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25,050 |
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23,452 |
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22,623 |
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22,562 |
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Contribution income (loss) |
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23,050 |
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(1,734 |
) |
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21,316 |
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15,962 |
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3,287 |
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$ |
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19,249 |
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Contribution margin |
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25.9 |
% |
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(2.2 |
)% |
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19.3 |
% |
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3.7 |
% |
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Corporate and unallocated costs |
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(17,294 |
) |
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(20,472 |
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Amortization of intangible assets |
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(1,418 |
) |
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— |
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Stock-based compensation expense |
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(10,020 |
) |
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(6,675 |
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Acquisition related expenses |
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(244 |
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(705 |
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Restructuring and other charges |
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(782 |
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(862 |
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Litigation reserves, net |
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1 |
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(75 |
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Other income, net (1) |
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1,701 |
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3,976 |
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Income (loss) before income taxes |
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$ |
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(6,740 |
) |
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$ |
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(5,564 |
) |
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Six Months Ended |
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June 28, 2026 |
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June 29, 2025 |
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(In thousands, except percentage data) |
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Enterprise |
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Consumer |
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Total |
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Enterprise |
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Consumer |
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Total |
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Net revenue |
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$ |
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172,756 |
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$ |
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154,625 |
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$ |
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327,381 |
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$ |
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161,812 |
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$ |
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170,780 |
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$ |
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332,592 |
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Segment cost of revenue |
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80,512 |
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110,830 |
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86,566 |
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124,844 |
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Segment gross profit* |
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92,244 |
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43,795 |
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136,039 |
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75,246 |
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45,936 |
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121,182 |
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Segment Gross margin |
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53.4 |
% |
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28.3 |
% |
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46.5 |
% |
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26.9 |
% |
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Reconciliation of gross profit |
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Amortization of intangible assets |
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(2,834 |
) |
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- |
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Stock-based compensation expense |
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(1,117 |
) |
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(878 |
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Total Consolidated gross profit |
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$ |
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132,088 |
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$ |
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120,304 |
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Segment operating expenses |
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49,137 |
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45,655 |
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41,649 |
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44,114 |
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Contribution income (loss) |
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43,107 |
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(1,860 |
) |
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41,247 |
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33,597 |
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1,822 |
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35,419 |
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Contribution margin |
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25.0 |
% |
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(1.2 |
)% |
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20.8 |
% |
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1.1 |
% |
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Corporate and unallocated costs |
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(35,573 |
) |
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(39,240 |
) |
Amortization of intangible assets |
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(2,837 |
) |
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— |
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Stock-based compensation expense |
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(18,225 |
) |
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(12,171 |
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Acquisition related expenses |
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(488 |
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(705 |
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Restructuring and other charges |
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(5,658 |
) |
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(5,604 |
) |
Litigation reserves, net |
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(499 |
) |
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(38 |
) |
Other income, net (1) |
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3,282 |
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12,147 |
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Income (loss) before income taxes |
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$ |
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(18,751 |
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$ |
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(10,192 |
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(1)Amounts included interest income of $1.7 million and $3.8 million for the three and six months ended June 28, 2026, respectively, and $3.1 million and $6.4 million for the three and six months ended June 29, 2025, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.4 million and $0.8 million for the three and six months ended June 28, 2026, respectively, and $(2.1) million and $(3.1) million for the three and six months ended June 29, 2025, respectively. For the three and six months ended June 28, 2026, the amount also included $0.6 million and $1.3 million, respectively, of imputed interest expense related to an intangible asset acquisition. For the three and six months ended June 29, 2025, the amount also included gain/(loss), net from foreign currency transactions of $2.4 million and $3.8 million, respectively, and proceeds of $4.7 million from a sale of patents for the six months ended June 29, 2025.
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| Schedule of Net Revenue by Geography |
The following table shows net revenue by geography:
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Three Months Ended |
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Six Months Ended |
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(In thousands) |
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June 28, 2026 |
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June 29, 2025 |
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June 28, 2026 |
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June 29, 2025 |
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United States (U.S.) |
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$ |
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112,801 |
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$ |
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112,762 |
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$ |
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215,380 |
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$ |
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216,801 |
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Americas (excluding U.S.) |
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3,725 |
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3,517 |
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7,009 |
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7,239 |
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EMEA |
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36,423 |
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34,375 |
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69,898 |
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66,504 |
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APAC |
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15,613 |
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19,878 |
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35,094 |
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|
42,048 |
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Total net revenue (1) |
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$ |
|
168,562 |
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$ |
|
170,532 |
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$ |
|
327,381 |
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$ |
|
332,592 |
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(1)No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
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| Schedule of Long-Lived Asset By Geographic Region |
The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:
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(In thousands) |
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June 28, 2026 |
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December 31, 2025 |
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United States (U.S.) |
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$ |
|
38,832 |
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$ |
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42,836 |
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Americas (excluding U.S. ) |
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4,064 |
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4,594 |
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EMEA |
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2,443 |
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2,345 |
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India |
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5,801 |
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5,596 |
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APAC (excluding India) |
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6,387 |
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|
7,345 |
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Total (1) |
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$ |
|
57,527 |
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$ |
|
62,716 |
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(1)No individual country other than those presented above represented more than 10% of the Company’s total long-lived assets in the periods presented.
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