v3.26.1
Segments and Geographic Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments and Geographic Information

6. SEGMENTS AND GEOGRAPHIC INFORMATION

As discussed in Notes 2 and 9, following the classification of the RUCKUS segment as held for sale, and the subsequent sale completed after quarter end, the Company has one remaining reportable segment. The following is a brief description of the activities of the Company’s reportable segment:

Aurora - The segment’s product solutions include cable modem termination systems, video infrastructure, public key infrastructure solutions, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network.

The following table provides summary financial information by reportable segment:

 

 

June 30,
2026

 

 

December 31,
2025

 

Identifiable segment-related assets: (1)

 

 

 

 

 

 

Aurora

 

 

1,830.6

 

 

 

1,629.3

 

Reconciliation to total assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

113.6

 

 

 

613.5

 

Deferred income tax assets

 

 

460.2

 

 

 

1,722.3

 

Divested and other business assets (2)

 

 

115.3

 

 

 

85.3

 

Assets held for sale

 

 

977.1

 

 

 

5,320.6

 

Total assets

 

$

3,496.8

 

 

$

9,371.0

 
(1)
Assets related to the Company’s reportable segment largely include accounts receivable, inventories, property, plant and equipment, goodwill, intangible assets and certain limited other assets. All other items, except cash and cash equivalents and deferred income tax assets, are reflected in divested and other business assets.
(2)
The divested and other business assets line item above reflects certain inventory retained by the Company related to continuing involvement in divested businesses pursuant to the Amphenol MSA, as discussed in Note 2, as well as other corporate assets. As of June 30, 2026, inventory of $6.4 million related to the OWN segment and DAS business unit, $4.1 million related to the Passive Optical Network (PON) business line within the CCS segment that was not divested with the sale of the CCS segment and $104.8 million related to corporate and other assets. As of December 31, 2025, inventory of $16.6 million related to the OWN segment and DAS business unit, $4.4 million related to the PON business line and $64.3 million related to corporate and other assets.

The Company’s reportable segment is based on the nature of products and services offered. Segment information is presented on the same basis that the Company’s Chief Executive Officer, who is the chief operating decision-maker, uses to manage its reportable segment, evaluate financial results and make key operating decisions. The Company’s measurement of segment performance is adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization). The Company defines adjusted EBITDA as operating income (loss), adjusted to exclude depreciation, amortization of intangible assets, restructuring costs, asset impairments, equity-based compensation, transaction, transformation and integration costs and other items that the Company believes are useful to exclude in the evaluation of operating performance from period to period because these items are not representative of the Company’s recurring business.

These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions and monitor budget-to-actual variances on a monthly basis. To manage operations and make decisions regarding resource allocations, the Company’s chief operating decision-maker is regularly provided and reviews expense information at a consolidated level for each segment. Each segment has a manager responsible for executing the Company’s strategic initiatives.

The following table provides net sales, cost of sales, total operating expenses, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment for the three months ended June 30, 2026:

 

 

Aurora

 

 

Corporate
and other (1) (2)

 

 

Total

 

Net sales

 

$

319.2

 

 

$

0.4

 

 

$

319.6

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

 

 

 

 

Segment cost of sales

 

 

206.5

 

 

 

0.3

 

 

 

 

Segment operating expenses

 

 

70.0

 

 

 

10.0

 

 

 

 

Addback: Depreciation

 

 

(2.8

)

 

 

(0.2

)

 

 

 

Segment adjusted EBITDA

 

 

45.5

 

 

 

(9.7

)

 

 

35.8

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(19.0

)

Restructuring costs, net

 

 

 

 

 

 

 

 

(8.4

)

Equity-based compensation

 

 

 

 

 

 

 

 

(6.7

)

Transaction, transformation and integration costs

 

 

 

 

 

 

 

 

(7.6

)

Depreciation

 

 

 

 

 

 

 

 

(3.0

)

Operating loss

 

 

 

 

 

 

 

 

(8.9

)

Other income, net

 

 

 

 

 

 

 

 

6.3

 

Loss from continuing operations before income taxes

 

 

 

 

 

 

 

$

(2.6

)

 

 

 

 

 

 

 

 

 

 

Depreciation

 

$

2.8

 

 

$

0.2

 

 

$

3.0

 

Additions to property, plant and equipment

 

$

1.8

 

 

$

—

 

 

$

1.8

 
(1)
The corporate and other category above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to the discontinued operation. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to the Company’s remaining segment and partially offset by income from the Transition Service Agreement with Belden (Belden TSA).
(2)
The corporate and other category above includes certain revenues reflected within continuing operations related to products associated with businesses impacted by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions.

 

The following table provides net sales, cost of sales, total operating expenses, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment for the three months ended June 30, 2025:

 

 

 

Aurora

 

 

Corporate
and other (1) (2)

 

 

Total

 

Net sales

 

$

322.5

 

 

$

1.6

 

 

$

324.1

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

 

 

 

 

Segment cost of sales

 

 

170.9

 

 

 

4.8

 

 

 

 

Segment operating expenses

 

 

75.0

 

 

 

25.6

 

 

 

 

Addback: Depreciation

 

 

(3.6

)

 

 

(1.3

)

 

 

 

Segment adjusted EBITDA

 

 

80.2

 

 

 

(27.5

)

 

 

52.7

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(21.4

)

Restructuring costs, net

 

 

 

 

 

 

 

 

(1.6

)

Equity-based compensation

 

 

 

 

 

 

 

 

(6.4

)

Transaction, transformation and integration costs

 

 

 

 

 

 

 

 

(5.7

)

Depreciation

 

 

 

 

 

 

 

 

(4.9

)

Other

 

 

 

 

 

 

 

 

(4.9

)

Operating income

 

 

 

 

 

 

 

 

7.8

 

Other income, net

 

 

 

 

 

 

 

 

0.6

 

Income from continuing operations before income taxes

 

 

 

 

 

 

 

$

8.4

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

$

3.6

 

 

$

1.3

 

 

$

4.9

 

Additions to property, plant and equipment

 

$

1.6

 

 

$

1.1

 

 

$

2.7

 
(1)
The corporate and other category above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment and CCS segment. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2026, the corporate and other costs related to the CCS segment have been reallocated to the Company’s remaining segments and partially offset by income from the Amphenol TSA. The corporate and other costs related to the RUCKUS segment will be reallocated to the Company’s remaining segment beginning in the third quarter of 2026 and partially offset by income from the Belden TSA.
(2)
The corporate and other category above includes certain revenues reflected within continuing operations related to products associated with businesses impacted by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions.

 

The following table provides net sales, cost of sales, total operating expenses, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment for the six months ended June 30, 2026:

 

 

Aurora

 

 

Corporate
and other (1) (2)

 

 

Total

 

Net sales

 

$

617.6

 

 

$

0.4

 

 

$

618.0

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

 

 

 

 

Segment cost of sales

 

 

388.3

 

 

 

0.5

 

 

 

 

Segment operating expenses

 

 

139.4

 

 

 

19.1

 

 

 

 

Addback: Depreciation

 

 

(6.0

)

 

 

(0.3

)

 

 

 

Segment adjusted EBITDA

 

 

95.9

 

 

 

(18.9

)

 

 

77.0

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(40.6

)

Restructuring costs, net

 

 

 

 

 

 

 

 

(15.1

)

Equity-based compensation

 

 

 

 

 

 

 

 

(11.1

)

Transaction, transformation and integration costs

 

 

 

 

 

 

 

 

(12.3

)

Depreciation

 

 

 

 

 

 

 

 

(6.3

)

Operating loss

 

 

 

 

 

 

 

 

(8.4

)

Other income, net

 

 

 

 

 

 

 

 

28.8

 

Income from continuing operations before income
   taxes

 

 

 

 

 

 

 

$

20.4

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

$

6.0

 

 

$

0.3

 

 

$

6.3

 

Additions to property, plant and equipment

 

$

2.6

 

 

$

0.2

 

 

$

2.8

 

 

(1)
The corporate and other category above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to the discontinued operation. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to the Company’s remaining segment and partially offset by income from the Belden TSA.
(2)
The corporate and other category above includes certain revenues reflected within continuing operations related to products associated with businesses impacted by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions.

 

The following table provides net sales, cost of sales, total operating expenses, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment for the six months ended June 30, 2025:

 

 

Aurora

 

 

Corporate
and other (1) (2)

 

 

Total

 

Net sales

 

$

547.5

 

 

$

12.2

 

 

$

559.7

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

 

 

 

 

Segment cost of sales

 

 

298.3

 

 

 

11.2

 

 

 

 

Segment operating expenses

 

 

138.3

 

 

 

51.2

 

 

 

 

Addback: Depreciation

 

 

(7.5

)

 

 

(2.9

)

 

 

 

Segment adjusted EBITDA

 

 

118.4

 

 

 

(47.3

)

 

 

71.1

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(45.2

)

Restructuring costs, net

 

 

 

 

 

 

 

 

(11.5

)

Equity-based compensation

 

 

 

 

 

 

 

 

(11.1

)

Transaction, transformation and integration costs

 

 

 

 

 

 

 

 

(10.0

)

Depreciation

 

 

 

 

 

 

 

 

(10.4

)

Other

 

 

 

 

 

 

 

 

(4.9

)

Operating loss

 

 

 

 

 

 

 

 

(22.0

)

Other income, net

 

 

 

 

 

 

 

 

1.2

 

Loss from continuing operations before income taxes

 

 

 

 

 

 

 

$

(20.8

)

 

 

 

 

 

 

 

 

 

 

Depreciation

 

$

7.5

 

 

$

2.9

 

 

$

10.4

 

Additions to property, plant and equipment

 

$

2.8

 

 

$

2.4

 

 

$

5.2

 
(1)
The corporate and other category above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment, CCS segment, OWN segment and DAS business unit. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2025, the corporate and other costs related to the OWN segment and DAS business unit have been reallocated to the Company’s remaining segments and partially offset by income from the Amphenol TSA. The corporate and other costs related to the CCS segment have been reallocated to the Company’s remaining segments and partially offset by income from the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to the Company’s remaining segment and partially offset by income from the Belden TSA.
(2)
The corporate and other category above includes certain revenues reflected within continuing operations related to products associated with businesses impacted by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions.

 

 

 

 

 

Sales to customers located outside of the U.S. comprised 19.2% and 19.1% of total net sales for the three and six months ended June 30, 2026, respectively, compared to 21.2% and 24.3% of total net sales for the three and six months ended June 30, 2025, respectively. Sales by geographic region, based on the destination of product shipments or service provided, were as follows:

 

 

Three Months Ended June 30, 2026

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

257.7

 

 

$

0.4

 

 

$

258.1

 

Europe, Middle East and Africa

 

 

14.6

 

 

 

—

 

 

 

14.6

 

Asia Pacific

 

 

14.8

 

 

 

—

 

 

 

14.8

 

Caribbean and Latin America

 

 

17.1

 

 

 

—

 

 

 

17.1

 

Canada

 

 

15.0

 

 

 

—

 

 

 

15.0

 

Consolidated net sales

 

$

319.2

 

 

$

0.4

 

 

$

319.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2025

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

254.2

 

 

$

1.2

 

 

$

255.4

 

Europe, Middle East and Africa

 

 

19.4

 

 

 

0.4

 

 

 

19.8

 

Asia Pacific

 

 

14.4

 

 

 

—

 

 

 

14.4

 

Caribbean and Latin America

 

 

16.8

 

 

 

—

 

 

 

16.8

 

Canada

 

 

17.7

 

 

 

—

 

 

 

17.7

 

Consolidated net sales

 

$

322.5

 

 

$

1.6

 

 

$

324.1

 

 

 

 

Six Months Ended June 30, 2026

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

499.7

 

 

$

0.4

 

 

$

500.1

 

Europe, Middle East and Africa

 

 

40.7

 

 

 

—

 

 

 

40.7

 

Asia Pacific

 

 

24.8

 

 

 

—

 

 

 

24.8

 

Caribbean and Latin America

 

 

25.4

 

 

 

—

 

 

 

25.4

 

Canada

 

 

27.0

 

 

 

—

 

 

 

27.0

 

Consolidated net sales

 

$

617.6

 

 

$

0.4

 

 

$

618.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

413.0

 

 

$

10.6

 

 

$

423.6

 

Europe, Middle East and Africa

 

 

41.0

 

 

 

1.6

 

 

 

42.6

 

Asia Pacific

 

 

23.2

 

 

 

—

 

 

 

23.2

 

Caribbean and Latin America

 

 

31.9

 

 

 

—

 

 

 

31.9

 

Canada

 

 

38.4

 

 

 

—

 

 

 

38.4

 

Consolidated net sales

 

$

547.5

 

 

$

12.2

 

 

$

559.7

 
(1)
The corporate and other category above includes certain revenues reflected within continuing operations related to products associated with businesses impacted by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions.