v3.26.3
Segment and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information

6. SEGMENT AND GEOGRAPHIC INFORMATION

As discussed in Note 2, following the divestiture of the RUCKUS segment, the Company is managed on a consolidated basis and 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:

 

 

September 30,
2026

 

 

December 31,
2025

 

Identifiable segment-related assets:

 

 

 

 

 

 

Aurora

 

 

1,823.2

 

 

 

1,629.3

 

Reconciliation to total assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

683.1

 

 

 

613.5

 

Deferred income tax assets

 

 

305.6

 

 

 

1,722.3

 

Divested and other business assets (1)

 

 

6.6

 

 

 

85.3

 

Assets held for sale

 

 

—

 

 

 

5,320.6

 

Total assets

 

$

2,818.5

 

 

$

9,371.0

 
(1)
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 September 30, 2026, inventory of $2.6 million related to the OWN segment and DAS business unit and $4.0 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. 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 Chief Executive Officer is the chief operating decision maker (CODM) and regularly reviews both segment net income (loss) and segment adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) in assessing the Company’s financial performance.

 

Segment net income (loss) provides the CODM with a GAAP-based measure of the overall profitability of the Company’s single reportable segment and represents the measure of segment profit or loss most consistent with the measurement principles used in the Company's consolidated financial statements, and is therefore presented as the primary measure of segment profit or loss as required under ASC 280, Segment Reporting.

 

Segment adjusted EBITDA is the measure primarily used by the CODM to evaluate the operating performance of the business, assess period-over-period operating trends and make resource allocation decisions. Management believes segment adjusted EBITDA facilitates these assessments by excluding certain items that may not be indicative of the underlying operating performance of the business.

 

Unallocated amounts, representing corporate and other items, not allocated to the reportable segment are excluded from segment net income (loss) and segment adjusted EBITDA, and are reflected in the reconciliations below.

The following table presents segment net sales, significant segment expenses and other segment items used in determining segment net income for the three and nine months ended September 30, 2026 and 2025, and reconciles segment net income to net income:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Segment net sales

 

$

319.8

 

 

$

337.8

 

 

$

937.5

 

 

$

885.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income, costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

(207.3

)

 

 

(211.9

)

 

 

(595.5

)

 

 

(510.2

)

Operating expenses

 

 

(58.6

)

 

 

(75.4

)

 

 

(198.2

)

 

 

(213.7

)

Amortization of intangible assets

 

 

(19.0

)

 

 

(21.4

)

 

 

(59.4

)

 

 

(67.6

)

Equity-based compensation

 

 

(7.4

)

 

 

(2.9

)

 

 

(14.5

)

 

 

(7.3

)

Interest income

 

 

12.9

 

 

 

3.9

 

 

 

39.1

 

 

 

11.4

 

Interest expense

 

 

(0.9

)

 

 

—

 

 

 

(1.7

)

 

 

—

 

Other items (1)

 

 

(4.7

)

 

 

(0.6

)

 

 

(21.6

)

 

 

(19.4

)

Income tax (expense) benefit

 

 

20.0

 

 

 

(11.4

)

 

 

42.3

 

 

 

347.8

 

Segment net income

 

 

54.8

 

 

 

18.1

 

 

 

128.0

 

 

 

426.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment net income to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated amounts (2)

 

 

(0.1

)

 

 

(37.0

)

 

 

(30.6

)

 

 

(106.8

)

Income (loss) from continuing operations

 

 

54.7

 

 

 

(18.9

)

 

 

97.4

 

 

 

319.5

 

Income from discontinued operations, net of taxes

 

 

975.9

 

 

 

127.3

 

 

 

6,736.3

 

 

 

604.7

 

Net income

 

$

1,030.6

 

 

$

108.4

 

 

$

6,833.7

 

 

$

924.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense (3)

 

$

2.9

 

 

$

3.6

 

 

$

8.9

 

 

$

11.1

 

Additions to property, plant and equipment (3)

 

$

0.2

 

 

$

2.6

 

 

$

2.8

 

 

$

5.4

 
(1)
Includes restructuring costs, net, transaction, transformation and integration costs, and other income (expense), net.
(2)
Includes certain revenues reflected within continuing operations related to products associated with businesses affected by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions. Also reflected in unallocated amounts are general corporate costs that were previously allocated to the divested businesses. These indirect expenses have been classified as continuing operations because they were not directly attributable to the divested businesses. Beginning in the first quarter of 2025, the costs previously allocated to the OWN segment and DAS business unit were reallocated to the Company’s remaining segments and partially offset by income under the Amphenol TSA. Beginning in the first quarter of 2026, the costs previously allocated to the CCS segment were reallocated to the Company’s remaining segments and partially offset by income under the Amphenol TSA. Beginning in the third quarter of 2026, the costs previously allocated to the RUCKUS segment were reallocated to the Company’s remaining segment and partially offset by income under the Belden TSA.
(3)
Represents amounts attributable to Aurora, and excludes unallocated amounts as described in footnote (2) above.

 

The following table presents segment net sales, significant segment expenses and depreciation used in determining segment adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025, and reconciles segment adjusted EBITDA to net income:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Segment net sales

 

$

319.8

 

 

$

337.8

 

 

$

937.5

 

 

$

885.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment cost and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

(207.3

)

 

 

(211.9

)

 

 

(595.5

)

 

 

(510.2

)

Operating expenses

 

 

(58.6

)

 

 

(75.4

)

 

 

(198.2

)

 

 

(213.7

)

Addback: Depreciation

 

 

2.9

 

 

 

3.6

 

 

 

8.9

 

 

 

11.1

 

Segment adjusted EBITDA

 

 

56.8

 

 

 

54.1

 

 

 

152.7

 

 

 

172.5

 

Amortization of intangible assets

 

 

(19.0

)

 

 

(21.6

)

 

 

(59.6

)

 

 

(66.8

)

Restructuring costs, net

 

 

(2.1

)

 

 

(1.6

)

 

 

(17.2

)

 

 

(13.1

)

Equity-based compensation

 

 

(7.4

)

 

 

(7.2

)

 

 

(18.5

)

 

 

(18.3

)

Transaction, transformation and integration costs

 

 

(2.3

)

 

 

(1.3

)

 

 

(14.6

)

 

 

(11.3

)

Depreciation

 

 

(2.9

)

 

 

(4.7

)

 

 

(9.2

)

 

 

(15.1

)

Unallocated amounts (1)

 

 

(0.2

)

 

 

(29.3

)

 

 

(19.1

)

 

 

(76.6

)

Other (2)

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

(4.8

)

Operating income (loss)

 

 

22.9

 

 

 

(11.5

)

 

 

14.5

 

 

 

(33.5

)

Other income, net

 

 

11.8

 

 

 

4.0

 

 

 

40.6

 

 

 

5.2

 

Income tax (expense) benefit

 

 

20.0

 

 

 

(11.4

)

 

 

42.3

 

 

 

347.8

 

Income (loss) from continuing operations

 

 

54.7

 

 

 

(18.9

)

 

 

97.4

 

 

 

319.5

 

Income from discontinued operations, net of taxes

 

 

975.9

 

 

 

127.3

 

 

 

6,736.3

 

 

 

604.7

 

Net income

 

$

1,030.6

 

 

$

108.4

 

 

$

6,833.7

 

 

$

924.2

 
(1)
Includes certain revenues reflected within continuing operations related to products associated with businesses affected by prior divestiture transactions. Such amounts continue to be reported within continuing operations based on the terms of the underlying transactions. Also reflected in unallocated amounts are general corporate costs that were previously allocated to the divested businesses. These indirect expenses have been classified as continuing operations because they were not directly attributable to the divested businesses. Beginning in the first quarter of 2025, the costs previously allocated to the OWN segment and DAS business unit were reallocated to the Company’s remaining segments and partially offset by income under the Amphenol TSA. Beginning in the first quarter of 2026, the costs previously allocated to the CCS segment were reallocated to the Company’s remaining segments and partially offset by income under the Amphenol TSA. Beginning in the third quarter of 2026, the costs previously allocated to the RUCKUS segment were reallocated to the Company’s remaining segment and partially offset by income under the Belden TSA.
(2)
Reflects the pretax gain (loss) recognized in 2025 on the sale of the Company's OneCell business.

 

Sales to customers located outside of the U.S. comprised 20.9% and 19.7% of total net sales for the three and nine months ended September 30, 2026, respectively, compared to 18.7% and 22.2% of total net sales for the three and nine months ended September 30, 2025, respectively. Sales by geographic region, based on the destination of product shipments or service provided, were as follows:

 

 

Three Months Ended September 30, 2026

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

253.0

 

 

$

(0.1

)

 

$

252.9

 

Europe, Middle East and Africa

 

 

26.6

 

 

 

—

 

 

 

26.6

 

Asia Pacific

 

 

18.5

 

 

 

—

 

 

 

18.5

 

Caribbean and Latin America

 

 

10.3

 

 

 

—

 

 

 

10.3

 

Canada

 

 

11.4

 

 

 

—

 

 

 

11.4

 

Consolidated net sales

 

$

319.8

 

 

$

(0.1

)

 

$

319.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2025

 

 

 

Aurora

 

 

Corporate
and other

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

274.6

 

 

$

—

 

 

$

274.6

 

Europe, Middle East and Africa

 

 

15.2

 

 

 

—

 

 

 

15.2

 

Asia Pacific

 

 

16.6

 

 

 

—

 

 

 

16.6

 

Caribbean and Latin America

 

 

16.3

 

 

 

—

 

 

 

16.3

 

Canada

 

 

15.1

 

 

 

—

 

 

 

15.1

 

Consolidated net sales

 

$

337.8

 

 

$

—

 

 

$

337.8

 

 

 

 

Nine Months Ended September 30, 2026

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

752.8

 

 

$

0.2

 

 

$

753.0

 

Europe, Middle East and Africa

 

 

67.3

 

 

 

—

 

 

 

67.3

 

Asia Pacific

 

 

43.3

 

 

 

—

 

 

 

43.3

 

Caribbean and Latin America

 

 

35.7

 

 

 

—

 

 

 

35.7

 

Canada

 

 

38.4

 

 

 

—

 

 

 

38.4

 

Consolidated net sales

 

$

937.5

 

 

$

0.2

 

 

$

937.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2025

 

 

 

Aurora

 

 

Corporate
and other (1)

 

 

Total

 

Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

687.6

 

 

$

10.6

 

 

$

698.2

 

Europe, Middle East and Africa

 

 

56.2

 

 

 

1.6

 

 

 

57.8

 

Asia Pacific

 

 

39.8

 

 

 

—

 

 

 

39.8

 

Caribbean and Latin America

 

 

48.2

 

 

 

—

 

 

 

48.2

 

Canada

 

 

53.5

 

 

 

—

 

 

 

53.5

 

Consolidated net sales

 

$

885.3

 

 

$

12.2

 

 

$

897.5

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