v3.26.3
Revenue
 9 Months Ended
Sep. 27, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Contract balances

The following table reflects the changes in contract balances for the nine months ended September 27, 2026:

Contract Classification
Balance Sheet Classification
September 27, 2026December 31, 2025$ Change% Change
(In thousands)
ReceivablesAccounts receivable, net$61,253 $39,666 $21,587 54.4 %
Contract assetsOther current assets$717 $— $717 **
Contract liabilities, currentDeferred revenue$46,866 $37,139 $9,727 26.2 %
Contract liabilities, non-currentOther non-current liabilities$1,615 $1,476 $139 9.4 %
_________________________
**Percentage change not meaningful.

Receivables increased primarily due to higher product and service sales. Contract assets are related to the value of products and services transferred to the customer for which the right to payment is not just dependent on the passage of time. Contract liabilities increased primarily due to growth in subscriptions and services revenue driven by changes in consumer subscription plans, a shift toward additional annual prepaid subscriptions, and increases in cumulative paid accounts and subscription rates.

For the nine months ended September 27, 2026 and September 28, 2025, $34.4 million and $25.6 million, respectively, of the recognized revenue was included in deferred revenue at the beginning of the periods. There were no significant changes in estimates during the periods that would affect the contract balances.

Remaining performance obligations

The total estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied and remaining was $51.5 million as of September 27, 2026 and $40.6 million as of December 31, 2025, substantially related to performance obligations classified as less than one year.

Under the Supply Agreement with Verisure Sàrl (“Verisure”), our largest customer, a performance obligation is not deemed to exist until we receive and accept Verisure’s purchase order. As of September 27, 2026, we had a backlog of $23.0 million which represents performance obligations that will be recognized as revenue once fulfilled, which is expected to occur over the next six months.

Variable consideration

Revenue from all sales is recognized at transaction price, the amount we expect to be entitled to in exchange for providing services or transferring goods. Transaction price is calculated as selling price net of variable consideration which includes estimates for sales incentives and sales returns related to current period products revenue. Sales incentives are determined based on a combination of the actual amounts committed and estimated future expenditure based upon historical customary business practice. Sales returns are estimated by analyzing certain factors, including historical sales and returns data, channel inventory levels, current economic trends, and changes in customer demand for our products. Variable consideration estimates are based on predictive historical data or future commitments that we plan and control. However, we continue to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur.
The following tables provide activities related to sales incentives and sales returns that are recognized as contra-revenue.

Three Months EndedNine Months Ended
Sales incentivesSeptember 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(In thousands)
Balance at the beginning of the period$26,301 $34,892 $29,124 $29,846 
Credits issued
(18,536)(27,012)(55,282)(68,564)
Additions
18,344 29,247 52,267 75,845 
Balance at the end of the period$26,109 $37,127 $26,109 $37,127 

Three Months EndedNine Months Ended
Sales returnsSeptember 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(In thousands)
Balance at the beginning of the period$5,398 $8,090 $9,273 $11,651 
Credits issued
(2,207)(3,935)(7,981)(12,684)
Additions
1,895 5,242 3,794 10,430 
Balance at the end of the period$5,086 $9,397 $5,086 $9,397 

Disaggregation of revenue

We disaggregate our revenue into three geographic regions: the Americas, EMEA, and APAC, where we conduct our business. The following table presents revenue disaggregated by geographic region.

Three Months EndedNine Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
(In thousands)
Americas$90,542 $83,831 $263,497 $235,830 
EMEA52,685 49,602 174,829 135,817 
APAC5,950 6,096 17,170 16,353 
Total$149,177 $139,529 $455,496 $388,000 


For the nine months ended September 27, 2026 and September 28, 2025, one customer accounted for 38% and 35% of the total revenue, respectively. No other customer accounted for 10% or greater of the total revenue. As of September 27, 2026, two customers accounted for 58% and 12%, and as of December 31, 2025, two customers accounted for 40% and 17% of the total accounts receivable, net, respectively. No other customers accounted for 10% or greater of the total accounts receivable, net.