The following tables present the components of certain balance sheet amounts (in thousands):


	September 30, 2026		December 31, 2025

Cash	$	134,595	$	97,183
Restricted cash—short term		1,360		1,400
Restricted cash—noncurrent		252		250
Total cash and restricted cash	$	136,207	$	98,833


	September 30, 2026			December 31, 2025

Accounts receivable (1)	$	189,584		$	234,226
Allowance for doubtful accounts		(326	)		(326	)
Accounts receivable, net	$	189,258		$	233,900

(1)

As of September 30, 2026, two customers represented 37.1% and 11.2% of our accounts receivable, net balance, respectively. As of December 31, 2025, two customers represented 42.0% and 14.4% of our accounts receivable, net balance, respectively.


	September 30, 2026		December 31, 2025

Raw materials	$	70,436	$	72,516
Work in progress		41,363		12,875
Finished goods		232,839		217,945
Inventories	$	344,638	$	303,336

As of September 30, 2026, consigned inventories included within our raw material and work in progress were $7.6 million and $28.0 million, respectively. As of December 31, 2025, consigned inventories included within our raw material and work in progress were $1.2 million and $12.0 million, respectively.


	September 30, 2026			December 31, 2025

Manufacturing equipment	$	34,700		$	30,957
Leasehold improvements		23,074			23,260
Computer equipment, software and office equipment		21,904			19,194
Furniture and fixtures		7,991			7,337
Total property and equipment		87,669			80,748
Less: Accumulated depreciation and amortization		(58,764	)		(49,234	)
Property and equipment, net	$	28,905		$	31,514


	September 30, 2026		December 31, 2025

Right-of-use assets	$	60,752	$	57,600
Deferred tax asset		13,724		11,371
Call option to acquire business, at cost (1)		4,810		—
Non-marketable equity investment		2,750		—
Other		4,482		4,616
Other assets	$	86,518	$	73,587

(1)

On July 31, 2026, the Company completed a Collaboration and License Agreement (the “License Agreement”) and a related Call Option Agreement (the “Call Option Agreement”) with a privately held software technology company (the “Counterparty”). The arrangement grants the Company an exclusive, worldwide license to integrate the Counterparty’s technology into its products and an exclusive option to acquire 100% of the Counterparty’s outstanding equity.

Under the License Agreement, the Company paid the Counterparty a one-time, non-refundable cash payment of $6.0 million. The payment represents consideration for both the license rights and the call option. The Company allocated the payment between the various elements in the agreement on a relative fair value basis, resulting in $4.8 million allocated to the call option. The Call Option Agreement grants the Company an option to acquire all of the Counterparty’s outstanding equity for a purchase price of $60.0 million in cash, subject to a quality-of-earnings adjustment, with aggregate consideration capped at $72.0 million, adjusted for the $6.0 million payment already paid. Exercise of the option and consummation of any acquisition remain subject to negotiation of definitive acquisition agreements and customary closing conditions, including the Counterparty’s board and stockholder approvals.

The Company’s exclusive right to the option is effectively limited to the period through March 31, 2027, after which it becomes non-exclusive. Absent exercise of the option or termination by the Counterparty, the option expires on September 30, 2027. As of the date these condensed consolidated financial statements were issued, the Company had not exercised the call option.


	September 30, 2026		December 31, 2025

Accrued reserves for customer incentive programs	$	52,453	$	61,173
Accrued reciprocal inventory purchases (1)		40,813		1,040
Accrued reserves for sales returns		36,429		37,760
Accrued payroll and related expenses		21,378		26,830
Operating lease liabilities, current		18,006		16,400
Accrued freight expenses		13,546		16,037
Sales and use tax and value-added tax payable		4,727		11,087
Accrued warranty		7,214		8,065
Contract liabilities		5,977		8,998
Other		27,211		24,885
Other liabilities and accrued expenses	$	227,754	$	212,275

(1)

See “Nonmonetary Transactions” below for additional information.

The sales and purchases of inventory with our manufacturers are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by us, we record this nonmonetary transaction as prepaid inventories and accrued liabilities. When we transact the reciprocal purchase of inventory from the manufacturer, we record a payable to the manufacturer at the purchase price, which replaces the initial nonmonetary transaction and inventory is reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory. In connection with such nonmonetary transactions with our manufacturers, as of September 30, 2026, we recognized $39.6 million of prepaid inventory in Prepaid expenses and other current assets and reciprocal accrual of $40.8 million in Other liabilities and accrued expenses and as of December 31, 2025, we recognized $0.9 million of prepaid inventory in Prepaid expenses and other current assets and reciprocal accrual of $1.0 million in Other liabilities and accrued expenses.

In connection with these arrangements, the non-cash reclassification of raw materials from inventories to prepaid expenses and other current assets has been excluded from the condensed consolidated statements of cash flows pursuant to ASC 230, while cash paid to vendors for raw materials and cash received from manufacturers are reflected within operating activities.