| Consolidated financial statement details |
The following section provides details of selected balance sheet items. Inventory | | | | | | | | | | | | | | (in thousands) | June 30, 2026 | | December 31, 2025 | Components | $ | 3,184 | | | $ | 2,554 | | Finished goods | 83,561 | | | 75,877 | | | Total inventory | $ | 86,745 | | | $ | 78,431 | |
Property and equipment, net | | | | | | | | | | | | | | | | | | (in thousands) | | | June 30, 2026 | | December 31, 2025 | | Leasehold improvements | | | $ | 24,014 | | | $ | 24,014 | | | Production, engineering, and other equipment | | | 37,280 | | | 37,265 | | | Tooling | | | 7,399 | | | 7,208 | | | Computers and software | | | 7,738 | | | 8,064 | | | Furniture and office equipment | | | 3,524 | | | 3,524 | | | Tradeshow equipment and other | | | 1,410 | | | 1,424 | | | Construction in progress | | | 2,158 | | | 132 | | | Gross property and equipment | | | 83,523 | | | 81,631 | | | Less: Accumulated depreciation and amortization | | | (76,504) | | | (75,728) | | | Property and equipment, net | | | $ | 7,019 | | | $ | 5,903 | |
Depreciation expense was $1.3 million and $1.3 million for the three months ended June 30, 2026 and 2025, respectively, and $2.6 million and $2.5 million for the six months ended June 30, 2026 and 2025, respectively. Other long-term assets | | | | | | | | | | | | (in thousands) | June 30, 2026 | | December 31, 2025 | | | | | | Point of purchase (POP) displays | $ | 6,764 | | | $ | 9,986 | | | Deposits and other | 9,496 | | | 9,977 | | | Intangible assets, net | 3,140 | | | 4,078 | | | Long-term deferred tax assets | — | | | 581 | | | Other long-term assets | $ | 19,400 | | | $ | 24,622 | |
Amortization expense for POP displays was $1.8 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively, and $3.6 million and $3.5 million for the six months ended June 30, 2026 and 2025, respectively. Expenditures for POP displays were $0.2 million and $0.5 million for the three months ended June 30, 2026 and 2025, respectively, and $0.3 million and $1.4 million for the six months ended June 30, 2026 and 2025, respectively. Intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | Useful life
(in months) | | June 30, 2026 | | (in thousands) | | | Gross carrying value | | Accumulated amortization | | Net carrying value | | Purchased technology | 20-72 | | $ | 58,566 | | | $ | (55,441) | | | $ | 3,125 | | | Domain name | | | 15 | | | — | | 15 | | | Total intangible assets | | | $ | 58,581 | | $ | (55,441) | | | $ | 3,140 |
| | | | | | | | | | | | | | | | | | | | | | | | | Useful life
(in months) | | December 31, 2025 | | (in thousands) | | | Gross carrying value | | Accumulated amortization | | Net carrying value | | Purchased technology | 20-72 | | $ | 58,566 | | | $ | (54,503) | | | $ | 4,063 | | | Domain name | | | 15 | | | — | | 15 | | | Total intangible assets | | | $ | 58,581 | | $ | (54,503) | | | $ | 4,078 |
Amortization expense was $0.4 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively, and $0.9 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, expected amortization expense of intangible assets with definite lives for future periods was as follows: | | | | | | (in thousands) | Total | | Year ending December 31, | | | 2026 (remaining 6 months) | $ | 937 | | | 2027 | 1,875 | | | 2028 | 313 | | | 2029 | — | | | 2030 | — | | | $ | 3,125 | |
Goodwill Changes to the carrying amount of goodwill during the six months ended June 30, 2026 were as follows: | | | | | | | (in thousands) | Carrying Amount | | Carrying amount as of December 31, 2025 | $ | 133,751 | | | Goodwill impairment | — | | | Carrying amount as of June 30, 2026 | $ | 133,751 | |
Accrued expenses and other current liabilities | | | | | | | | | | | | | | (in thousands) | June 30, 2026 | | December 31, 2025 | Purchase order commitments(1) | $ | 42,094 | | | $ | 1,343 | | | Derivative liabilities | 34,730 | | | — | | | Accrued sales incentives | 26,530 | | | 38,259 | | | Accrued liabilities | 24,879 | | | 30,274 | | | Employee related liabilities | 7,547 | | | 8,255 | | | Warranty liabilities | 3,161 | | | 4,315 | | | Customer deposits | 2,671 | | | 1,216 | | | Return liability | 1,239 | | | 3,293 | | | Inventory received | 805 | | | 3,423 | | | Other | 4,174 | | | 5,478 | | | Accrued expenses and other current liabilities | $ | 147,830 | | | $ | 95,856 | |
(1) The increase in accrued purchase order commitments from December 31, 2025 was primarily due to communication from the Company’s memory suppliers regarding planned reductions in the production of the memory used in its products causing a reduction in forecasted sales volumes of certain products which also impacted the Company’s expected utilization of materials subject to a non-cancellable non-refundable purchase commitment. Product warranty | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | | | | Beginning balance | $ | 3,987 | | | $ | 5,915 | | | $ | 4,593 | | | $ | 6,207 | | | | | Charged to cost of revenue | 2,151 | | | 2,048 | | | 4,691 | | | 4,663 | | | | | Settlement of warranty claims | (2,855) | | | (2,610) | | | (6,001) | | | (5,517) | | | | | Warranty liability | $ | 3,283 | | | $ | 5,353 | | | $ | 3,283 | | | $ | 5,353 | | | |
|
| Intangible Asset |
Intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | Useful life
(in months) | | June 30, 2026 | | (in thousands) | | | Gross carrying value | | Accumulated amortization | | Net carrying value | | Purchased technology | 20-72 | | $ | 58,566 | | | $ | (55,441) | | | $ | 3,125 | | | Domain name | | | 15 | | | — | | 15 | | | Total intangible assets | | | $ | 58,581 | | $ | (55,441) | | | $ | 3,140 |
| | | | | | | | | | | | | | | | | | | | | | | | | Useful life
(in months) | | December 31, 2025 | | (in thousands) | | | Gross carrying value | | Accumulated amortization | | Net carrying value | | Purchased technology | 20-72 | | $ | 58,566 | | | $ | (54,503) | | | $ | 4,063 | | | Domain name | | | 15 | | | — | | 15 | | | Total intangible assets | | | $ | 58,581 | | $ | (54,503) | | | $ | 4,078 |
Amortization expense was $0.4 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively, and $0.9 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, expected amortization expense of intangible assets with definite lives for future periods was as follows: | | | | | | (in thousands) | Total | | Year ending December 31, | | | 2026 (remaining 6 months) | $ | 937 | | | 2027 | 1,875 | | | 2028 | 313 | | | 2029 | — | | | 2030 | — | | | $ | 3,125 | |
|