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v3.25.3

Segment Data | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Data | Segment Data Segment information for the three and nine months ended September 30, 2024 has been recast to reflect the Segment Realignment. Refer to Note 1 for additional details. Information relative to our reportable segments was as follows (in thousands):
| Three Months Ended September 30,
| 2025 |  | 2024
| Connected Devices |  | Software and Services |  | Total |  | Connected Devices |  | Software and Services |  | Total
Net sales | $ | 405,399 |  |  | $ | 305,242 |  |  | $ | 710,641 |  |  | $ | 327,900 |  |  | $ | 216,374 |  |  | $ | 544,274 |
Cost of sales | 203,173 |  |  | 80,120 |  |  | 283,293 |  |  | 156,167 |  |  | 57,360 |  |  | 213,527 |
Other segment items (1) | 8,902 |  |  | 9,200 |  |  | 18,102 |  |  | 7,104 |  |  | 6,039 |  |  | 13,143 |
Adjusted gross margin | $ | 211,128 |  |  | $ | 234,322 |  |  | $ | 445,450 |  |  | $ | 178,837 |  |  | $ | 165,053 |  |  | $ | 343,890 |
Other segment items (1) |  |  | (18,102) |  |  |  |  | (13,143) |
Selling, general and administrative |  |  | (252,803) |  |  |  |  | (192,189) |
Research and development |  |  | (176,674) |  |  |  |  | (114,477) |
Interest income |  |  | 23,941 |  |  |  |  | 12,624 |
Interest expense |  |  | (28,912) |  |  |  |  | (1,646) |
Other income, net |  |  | 22,803 |  |  |  |  | 44,510 |
Income before provision for income taxes |  |  | $ | 15,703 |  |  |  |  | $ | 79,569 |
(1) Other segment items includes the adjustment for noncash stock-based compensation expense and amortization of acquired intangible assets to arrive at the profit measure used by the CODM.
| Nine Months Ended September 30,
| 2025 |  | 2024
| Connected Devices |  | Software and Services |  | Total |  | Connected Devices |  | Software and Services |  | Total
Net sales | $ | 1,122,655 |  |  | $ | 860,157 |  |  | $ | 1,982,812 |  |  | $ | 891,087 |  |  | $ | 616,294 |  |  | $ | 1,507,381 |
Cost of sales | 566,861 |  |  | 219,121 |  |  | 785,982 |  |  | 450,954 |  |  | 160,896 |  |  | 611,850 |
Other segment items (1) | 27,872 |  |  | 27,922 |  |  | 55,794 |  |  | 41,490 |  |  | 15,043 |  |  | 56,533 |
Adjusted gross margin | $ | 583,666 |  |  | $ | 668,958 |  |  | $ | 1,252,624 |  |  | $ | 481,623 |  |  | $ | 470,441 |  |  | $ | 952,064 |
Other segment items (1) |  |  | (55,794) |  |  |  |  | (56,533) |
Selling, general and administrative |  |  | (718,524) |  |  |  |  | (514,228) |
Research and development |  |  | (490,264) |  |  |  |  | (307,008) |
Interest income |  |  | 57,798 |  |  |  |  | 36,407 |
Interest expense |  |  | (65,419) |  |  |  |  | (5,273) |
Other income, net |  |  | 104,790 |  |  |  |  | 191,510 |
Income before provision for income taxes |  |  | $ | 85,211 |  |  |  |  | $ | 296,939 |
(1) Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, inventory step-up amortization related to acquisitions and payroll taxes related to 2024 Employee XSP vesting to arrive at the profit measure used by the CODM. The following table presents supplemental information included within the measure of profit or loss, adjusted gross margin, reviewed by our CODM (in thousands). There are no other material items presented to our CODM by segment or included within adjusted gross margin for supplemental disclosure.
| Three Months Ended September 30,
| 2025 |  | 2024
| Connected Devices |  | Software and Services |  | Total |  | Connected Devices |  | Software and Services |  | Total
Depreciation and amortization | $ | 9,188 |  |  | $ | 4,324 |  |  | $ | 13,512 |  |  | $ | 4,545 |  |  | $ | 4,291 |  |  | $ | 8,836 |
Significant noncash items: |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense | 7,584 |  |  | 5,119 |  |  | 12,703 |  |  | 6,722 |  |  | 3,401 |  |  | 10,123 |
Provisions for inventory | 1,737 |  |  | — |  |  | 1,737 |  |  | 2,204 |  |  | — |  |  | 2,204 |
Warranty reserve expense | 2,584 |  |  | — |  |  | 2,584 |  |  | 3,047 |  |  | — |  |  | 3,047 |
| Nine Months Ended September 30,
| 2025 |  | 2024
| Connected Devices |  | Software and Services |  | Total |  | Connected Devices |  | Software and Services |  | Total
Depreciation and amortization | $ | 26,783 |  |  | $ | 12,381 |  |  | $ | 39,164 |  |  | $ | 15,393 |  |  | $ | 8,120 |  |  | $ | 23,513 |
Significant noncash items: |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense | 22,643 |  |  | 15,508 |  |  | 38,151 |  |  | 40,432 |  |  | 7,803 |  |  | 48,235 |
Provisions for inventory | 3,578 |  |  | — |  |  | 3,578 |  |  | 11,047 |  |  | — |  |  | 11,047 |
Warranty reserve expense | 9,378 |  |  | — |  |  | 9,378 |  |  | 4,860 |  |  | — |  |  | 4,860 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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