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Segments and Major Customers | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segments and Major Customers | 6. Segments and Major Customers Operating segments are based upon the Company’s internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker (“CODM”) to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment. The Company has determined its CODM to be the Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of September 30, 2025, the Company has a single operating and reportable segment. The CODM uses net income to assess segment performance, allocate resources and manage the business on a consolidated basis. 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, 2025 and 2024, respectively, were as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total revenue |  | $ | 178,513 |  |  | $ | 145,513 |  |  | $ | 517,386 |  |  | $ | 395,522 |
Adjusted cost of revenue (1) |  |  | (34,688 | ) |  |  | (25,189 | ) |  |  | (98,477 | ) |  |  | (69,325 | )
Adjusted research and development (2) |  |  | (44,477 | ) |  |  | (37,050 | ) |  |  | (123,457 | ) |  |  | (107,215 | )
Adjusted sales, general and administrative (3) |  |  | (20,163 | ) |  |  | (18,218 | ) |  |  | (60,975 | ) |  |  | (55,143 | )
Other segment items: |  |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation expenses (4) |  |  | (14,206 | ) |  |  | (11,998 | ) |  |  | (39,822 | ) |  |  | (33,145 | )
Amortization of acquired intangible assets (4) |  |  | (1,724 | ) |  |  | (2,890 | ) |  |  | (5,158 | ) |  |  | (9,380 | )
Acquisition-related costs (5) |  |  | — |  |  |  | (17 | ) |  |  | (105 | ) |  |  | (139 | )
Impairment of assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,071 | )
Change in fair value of earn-out liability |  |  | — |  |  |  | 4,544 |  |  |  | — |  |  |  | 5,044 |
Interest and other income (expense), net |  |  | 6,033 |  |  |  | 4,340 |  |  |  | 15,358 |  |  |  | 12,590 |
Provision for income taxes |  |  | (20,911 | ) |  |  | (10,370 | ) |  |  | (38,135 | ) |  |  | (20,119 | )
Net income |  | $ | 48,377 |  |  | $ | 48,665 |  |  | $ | 166,615 |  |  | $ | 117,619 |
(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, acquisition-related 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. 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, 2025 and 2024, respectively.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Payroll and benefits |  | $ | 38,866 |  |  | $ | 31,264 |  |  | $ | 115,706 |  |  | $ | 95,065 |
Variable research and development expenses (1) |  |  | 8,780 |  |  |  | 7,559 |  |  |  | 18,943 |  |  |  | 19,886 |
Professional fees |  |  | 5,096 |  |  |  | 4,447 |  |  |  | 14,756 |  |  |  | 14,020 |
Facilities costs |  |  | 3,174 |  |  |  | 2,959 |  |  |  | 9,394 |  |  |  | 8,654 |
Temporary labor services and consulting expenses |  |  | 3,063 |  |  |  | 3,952 |  |  |  | 9,230 |  |  |  | 10,397 |
Amortization and depreciation |  |  | 3,035 |  |  |  | 2,619 |  |  |  | 8,826 |  |  |  | 7,316 |
Other expenses |  |  | 2,626 |  |  |  | 2,468 |  |  |  | 7,577 |  |  |  | 7,020 |
Total adjusted operating expenses |  | $ | 64,640 |  |  | $ | 55,268 |  |  | $ | 184,432 |  |  | $ | 162,358 |
(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. Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of September 30, 2025 and December 31, 2024, respectively, was as follows:
|  | As of |
Customer |  | September 30, 2025 |  |  | December 31, 2024 |
Customer 1 |  |  | 37 | % |  |  | 39 | %
Customer 2 |  |  | 26 | % |  |  | 17 | %
Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2025 and 2024, respectively, was as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
Customer |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Customer A |  |  | 25 | % |  |  | 21 | % |  |  | 23 | % |  |  | 23 | %
Customer B |  |  | 17 | % |  |  | 21 | % |  |  | 18 | % |  |  | 19 | %
Customer C |  | * |  |  |  | 10 | % |  | * |  |  |  | 11 | %
Customer D |  | * |  |  |  | 14 | % |  | * |  |  | * |
* Customer accounted for less than 10% of total revenue in the period. 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) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
South Korea |  | $ | 91,712 |  |  | $ | 56,129 |  |  | $ | 238,544 |  |  | $ | 134,931 |
Singapore |  |  | 37,561 |  |  |  | 21,082 |  |  |  | 127,328 |  |  |  | 45,406 |
United States |  |  | 26,508 |  |  |  | 46,315 |  |  |  | 87,630 |  |  |  | 153,915 |
Other |  |  | 22,732 |  |  |  | 21,987 |  |  |  | 63,884 |  |  |  | 61,270 |
Total |  | $ | 178,513 |  |  | $ | 145,513 |  |  | $ | 517,386 |  |  | $ | 395,522 |

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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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