v3.26.3
Segment Reporting, Concentrations of Risk and Disaggregated Revenue
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting, Concentrations of Risk and Disaggregated Revenue

7. Segment Reporting, Concentrations of Risk and Disaggregated Revenue

Segment Reporting

The Company has determined its Chief Executive Officer to be the Chief Operating Decision Maker (“CODM”). The CODM reviews financial information presented on a consolidated basis and uses net income to assess segment performance, allocate resources and manage the business. On this basis, the Company has determined that it has a single

operating and reportable segment. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the three and nine months ended September 30, 2026 and 2025, respectively, were as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total revenue

 

$

218,289

 

 

$

178,513

 

 

$

605,863

 

 

$

517,386

 

Adjusted cost of revenue (1)

 

 

(46,026

)

 

 

(34,688

)

 

 

(120,909

)

 

 

(98,477

)

Adjusted research and development (2)

 

 

(43,173

)

 

 

(44,477

)

 

 

(133,184

)

 

 

(123,457

)

Adjusted sales, general and administrative (3)

 

 

(26,852

)

 

 

(20,163

)

 

 

(80,255

)

 

 

(60,975

)

Other segment items:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses (4)

 

 

(17,121

)

 

 

(14,206

)

 

 

(44,460

)

 

 

(39,822

)

Amortization of acquired intangible assets (4)

 

 

(1,164

)

 

 

(1,724

)

 

 

(4,459

)

 

 

(5,158

)

Restructuring charges (6)

 

 

(223

)

 

 

—

 

 

 

(3,543

)

 

 

—

 

Acquisition-related costs (5)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(105

)

Interest and other income (expense), net

 

 

6,883

 

 

 

6,033

 

 

 

20,513

 

 

 

15,358

 

Other (6)

 

 

(78

)

 

 

—

 

 

 

(912

)

 

 

—

 

Provision for income taxes

 

 

(15,970

)

 

 

(20,911

)

 

 

(36,626

)

 

 

(38,135

)

Net income

 

$

74,565

 

 

$

48,377

 

 

$

202,028

 

 

$

166,615

 

 

(1)
Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.
(2)
Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.
(3)
Excludes stock-based compensation expenses, facility closure costs and retention bonus expense related to acquisitions.
(4)
The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
(5)
The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s ongoing operating results.
(6)
Includes restructuring charges, abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the three and nine months ended September 30, 2026 and 2025.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Payroll and benefits

 

$

40,953

 

 

$

38,866

 

 

$

127,237

 

 

$

115,706

 

Professional fees

 

 

10,418

 

 

 

5,096

 

 

 

28,826

 

 

 

14,756

 

Variable research and development expenses (1)

 

 

6,812

 

 

 

8,780

 

 

 

20,808

 

 

 

18,943

 

Temporary labor services and consulting expenses

 

 

3,080

 

 

 

3,063

 

 

 

9,622

 

 

 

9,230

 

Facilities costs

 

 

3,061

 

 

 

3,174

 

 

 

9,100

 

 

 

9,394

 

Amortization and depreciation

 

 

3,049

 

 

 

3,035

 

 

 

9,083

 

 

 

8,826

 

Other expenses

 

 

2,652

 

 

 

2,626

 

 

 

8,763

 

 

 

7,577

 

Total adjusted operating expenses

 

$

70,025

 

 

$

64,640

 

 

$

213,439

 

 

$

184,432

 

 

(1)
Includes primarily software tools, software licenses and prototyping costs.

The measure of segment assets is reported on the Company’s Unaudited Condensed Consolidated Balance Sheets as total consolidated assets.

 

Concentrations of Risk

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of September 30, 2026 and December 31, 2025 were as follows:

 

 

As of

 

Customer

 

September 30, 2026

 

 

December 31, 2025

 

Customer 1

 

 

32

%

 

 

22

%

Customer 2

 

 

27

%

 

 

35

%

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2026 and 2025 were as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

Customer

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Customer A

 

 

18

%

 

 

25

%

 

 

23

%

 

 

23

%

Customer B

 

 

24

%

 

 

17

%

 

 

18

%

 

 

18

%

Customer C

 

 

10

%

 

*

 

 

*

 

 

*

 

 

* Customer accounted for less than 10% of total revenue in the period.

Disaggregated Revenue

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

South Korea

 

$

79,447

 

 

$

91,712

 

 

$

259,618

 

 

$

238,543

 

Singapore

 

 

47,403

 

 

 

37,561

 

 

 

110,931

 

 

 

127,328

 

United States

 

 

39,214

 

 

 

26,508

 

 

 

99,552

 

 

 

87,630

 

China

 

 

24,101

 

 

 

11,370

 

 

 

51,669

 

 

 

21,764

 

Other

 

 

28,124

 

 

 

11,362

 

 

 

84,093

 

 

 

42,121

 

Total

 

$

218,289

 

 

$

178,513

 

 

$

605,863

 

 

$

517,386