Financial Analysis

Commitments and Contingencies Lease Commitments We lease office space under non-cancelable operating leases. Certain of our operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of June 27, 2026 (in thousands): Period Future Minimum Lease Payments Remainder of 2026 $ 1,827 2027 3,337 2028 2,793 2029 2,573 2030 2,282 Thereafter 3,578 Total future minimum lease payments 16,390 Less imputed interest (2,410) $ 13,980 As of June 27, 2026, the operating lease liability consisted of the following (in thousands): Accrued liabilities - current portion of operating leases $ 2,762 Operating leases 11,218 $ 13,980 We lease our headquarters office space in San Jose, California under a lease agreement that expires in January 2033. The future minimum lease payments under the lease are $8.4 million and are included in the table above. The weighted average discount rate for our operating leases as of June 27, 2026 was 5.4%. The weighted average remaining lease term as of June 27, 2026 was 5.4 years. For both the three and six months ended June 27, 2026 and June 28, 2025, rent expense was $1.1 million and $2.2 million for each respective period. Cash paid within operating cash flows for operating leases was $1.7 million and $2.3 million for the six months ended June 27, 2026 and June 28, 2025, respectively. Purchase Commitments Our contract manufacturers (CMs) and original design m …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Measurements We measure our cash equivalents and marketable securities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We utilize the following three-tier value hierarchy, which prioritizes the inputs used in measuring fair value: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The fair value hierarchy also requires us to maximize the use of observable inputs, when available, and to minimize the use of unobservable inputs when determining inputs and determining fair value. The following tables sets forth our financial assets measured at fair value on a recurring basis based on the th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Income (loss) before income taxes $ 23,595 $ 3,427 $ 38,827 $ 437 Income taxes $ 6,484 $ 3,626 $ 10,506 $ 5,423 Effective tax rate 27.5 % 105.8 % 27.1 % 1,241.0 % Our income taxes for the three and six months ended June 27, 2026 were determined using an estimated annual effective tax rate adjusted for discrete items that occurred during that period as required under Accounting Standards Codification (ASC) 740-270, Accounting for Income Taxes in Interim Periods . We have historically recorded interim provision for income taxes by applying ASC 740-270. For the three and six months ended June 28, 2025, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate was highly sensitive to fluctuations in pre-tax income and did not provide a reasonable estimate for income taxes in the interim period. As such, we computed the provision for income taxes for the three and six months ended June 28, 2025 using an actual year-to-date tax calculation. Our effective tax rate for the three and six months ended June 27, 2026 is different from the statutory federal corporate tax rate of 21% primarily due to state taxes, the effect of non-deductible stock-bas …

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Newly Adopted Accounting Standard We did not adopt any new accounting standards during the six months ended June 27, 2026 that were significant to us. Recent Accounting Pronouncements Not Yet Adopted There have been no additional accounting pronouncements or changes in accounting pronouncements during the six months ended June 27, 2026 as compared with the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2025, that are significant or expected to be significant to us.

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Revenue from Contracts with Customers Contract Asset Contract assets include amounts recognized as revenue prior to our contractual right to bill the customer. Amounts are billed in accordance with the agreed-upon contractual terms. Contract assets were $4.9 million as of June 27, 2026 as compared to $4.8 million as of December 31, 2025, and are included in prepaid expenses and other current assets and long-term other assets on the Condensed Consolidated Balance Sheets. We expect to recognize 38% of the June 27, 2026 balance during 2026. Contract Liability Deferred revenue was $56.0 million, $50.5 million and $50.3 million as of June 27, 2026, March 28, 2026 and December 31, 2025, respectively. The increase in the deferred revenue balance for the three and six months ended June 27, 2026 was driven by cash payments received or due in advance of satisfying our performance obligations offset by $13.3 million and $18.2 million of revenue recognized that was included in the deferred revenue balance at the beginning of each respective period. Remaining performance obligations (RPOs) represent contractual commitments that have not yet been fulfilled, which include deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but exclude variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $386.4 million as of June 27, 2026, and we expect to recognize as revenue 42% of thi …

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Segment Information We develop, market and sell an appliance-based broadband platform, cloud and managed services. There are no segment managers who are held accountable for operations, operating results and plans for levels or components below our unit level. Accordingly, we are a single reporting segment and operating unit structure. Our chief operating decision maker (CODM) is our Chief Executive Officer, who reviews financial information presented on a Company-wide basis, for purposes of allocating resources and evaluating financial performance. The CODM assesses the performance of the single segment and allocates resources based on revenue and measures derived from gross margin and operating loss that is reported in the Condensed Consolidated Statements of Comprehensive Income (Loss). In addition, the CODM uses a measure derived from operating expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss) to monitor budget versus actual results to determine the entitys and managements performance. We do not have intra-entity sales or transfers. The measure of the single segment assets is the consolidated assets in the Condensed Consolidated Balance Sheet. The accounting policies of the single segment are the same as described in the significant accounting policies. Geographic Information: A summary of revenue disaggregated by geographic region based upon the location of the customers was as follows (in thousands): Three Months Ended Six Months Ended Jun …

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Significant Accounting Policies Our significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025. Our significant accounting policies did not change during the six months ended June 27, 2026. Newly Adopted Accounting Standard We did not adopt any new accounting standards during the six months ended June 27, 2026 that were significant to us. Recent Accounting Pronouncements Not Yet Adopted There have been no additional accounting pronouncements or changes in accounting pronouncements during the six months ended June 27, 2026 as compared with the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2025, that are significant or expected to be significant to us.

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