Financial Analysis

"Commitments and Contingencies Product Warranties Changes in the Companys warranty liabilities for the three months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, 2026 2025 Beginning of the period $ 50,242 $ 49,184 Provision 8,496 8,622 Settlements (9,553) (8,249) Effects of foreign currency translation 94 649 End of the period $ 49,279 $ 50,206 Indemnifications The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances includes indemnification for damages and expenses, including reasonable attorneys fees. As of June 30, 2026, no material amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements. The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature, and the facts and circum …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of June 30, 2026, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated, the 1996 Employee Share Purchase Plan (U.S.), as amended and restated, and the 2006 Stock Incentive Plan, as amended and restated. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock. The following table summarizes share-based compensation expense and total income tax benefit recognized for the three months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, 2026 2025 Cost of goods sold $ 2,182 $ 2,380 Marketing and selling 11,821 13,930 Research and development 6,597 6,351 General and administrative 9,032 10,167 Total share-based compensation expense 29,632 32,828 Income tax benefit (8,843) (4,906) Total share-based compensation expense, net of income tax benefit $ 20,789 $ 27,922 The income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period. Share-based compensation costs capitalized as part of inventory were $3.1 million and $2.8 million for the three months ended June 30, 2026 and 2025, respectively. Defined Benefit Plans Certain subsidiaries of the Comp …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Financing Arrangements On January 27, 2025, the Company entered into an unsecured revolving credit facility with a syndicate of banks (the ""Credit Agreement""). The Credit Agreement provides a revolving line of credit of up to $750.0 million to the Company including the issuance of letters of credit of up to $100.0 million. The Credit Agreement terminates on January 27, 2030 unless extended in accordance with its terms. The Credit Agreement contains (1) an increase option allowing the Company to secure up to $250.0 million of additional commitments and (2) an extension option to extend the term by one-year which may be exercised no more than two times, subject to certain requirements. Loans under the Credit Agreement are available in U.S. Dollars, Euro, Sterling, Yen, Swiss Francs, Canadian Dollars, Australian Dollars and any other currency agreed to by each lender. Proceeds of loans made under the Credit Agreement may be used for general corporate purposes. The Credit Agreement contains a maximum net debt to adjusted EBITDA ratio, compliance with which is a condition to the Company's ability to borrow. Borrowings under the Credit Agreement will bear interest at a rate determined by reference to benchmark rates plus an applicable spread (ranging from 0% to 1.5%) based on the Company's net leverage ratio or credit rating at the time of the borrowing. Undrawn balances available under the Credit Agreement are subject to commitment fees at the applicable rate determined by refe …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair Value Measurements The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table presents the Companys financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Companys defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): June 30, 2026 March 31, 2026 Level 1 Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The Company conducts its impairment analysis of goodwill annually at December 31 or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Companys reporting unit may be less than its carrying amount. There have been no triggering events identified affecting the valuation of goodwill and intangible assets during the three months ended June 30, 2026 and 2025. The following table summarizes the activities in the Companys goodwill balance (in thousands): As of March 31, 2026 $ 465,417 Effects of foreign currency translation (458) As of June 30, 2026 $ 464,959 The Company's acquired intangible assets were as follows (in thousands): June 30, 2026 March 31, 2026 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 32,390 $ (30,857) $ 1,533 $ 32,390 $ (30,569) $ 1,821 Developed technology 107,550 (103,963) 3,587 107,550 (103,307) 4,243 Customer contracts/relationships 69,087 (63,648) 5,439 69,087 (63,021) 6,066 Effects of foreign currency translation 1,130 (937) 193 1,218 (962) 256 Total $ 210,157 $ (199,405) $ 10,752 $ 210,245 $ (197,859) $ 12,386 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Companys income before taxes and the provision for income taxes is generated outside of Switzerland. The income tax provision for the three months ended June 30, 2026 was $39.9 million, based on an effective income tax rate of 14.5% of pre-tax income. The income tax provision for the same period ended June 30, 2025 was $28.5 million based on an effective income tax rate of 16.3% of pre-tax income. The change in the effective income tax rate for the three months ended June 30, 2026, compared with the same period ended June 30, 2025, was primarily due to the change in the mix of income and losses in the various tax jurisdictions in which the Company operates and higher tax benefits from share-based compensation. Following the enactment of the One Big Beautiful Bill Act (""OBBBA"") on July 4, 2025, several corporate tax provisions became effective for the Company beginning in fiscal year 2027, including adjustments to domestic R&D expensing, bonus depreciation, and modified international frameworks. Based on the Company's evaluation of these provisions, the final impact of the OBBBA is expected to be de minimis for fiscal year 2027 and will not materially impact the consolidated financial statements or the effective tax rate. For the three months ended June 30, 2026, the Company assessed its exposure to the OECD Pillar Two gl …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Adopted In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . ASU 2025-05 provides a practical expedient that permits entities to assume that current conditions as of the balance sheet date will remain unchanged over the remaining life of current accounts receivable and current contract assets when estimating the expected credit losses. The Company adopted ASU 2025-05 in the first quarter of fiscal year 2027 and the adoption did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 requires all public entities to disclose in the notes to the financial statements the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption of the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financia …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Information The Company manages its business activities on a consolidated basis and operates as a single operating segment: Peripherals. The operating segment encompasses the design, manufacturing and sales of peripherals for gaming, PCs, tablets, video conferencing, and other digital platforms. The Company's Chief Operating Decision Maker (the CODM) is the Chief Executive Officer. The CODM periodically reviews information such as sales and net income to make business decisions and evaluate performance. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Peripherals segment or into other parts of the entity, such as for acquisitions, share repurchase or to pay dividends. The CODM also monitors budget versus actual net income results. The following table presents segment revenue, significant segment expenses, and net income for the periods presented (in thousands): Three Months Ended June 30, 2026 2025 Net sales $ 1,227,234 $ 1,147,703 Less: Significant segment expenses Cost of goods sold (1) 616,417 664,212 Marketing and selling (1) 207,924 181,866 Research and development (1) 78,026 68,236 General and administrative (1) 34,493 31,630 Less: other segment items Share-based compensation expense 29,632 32,828 Amortization of intangible assets and acquisition-related costs 1,621 4,795 Interest income (14,099) (11,229) Other (2) (2,360) 880 Provision for income taxes 39,883 28,470 Net …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Shareholders Equity Share Capital As of June 30, 2026, the Company's nominal share capital is CHF 40.2 million, consisting of 160,784,460 issued shares with a par value of CHF 0.25 each, of which 17,218,209 were held in treasury shares. The capital band under Swiss law allows a company's board of directors to adjust the company's share capital within a predefined range based on a general authority granted by the company's shareholders. At the 2023 Annual General Meeting (""AGM""), the Company's shareholders approved an amendment to the Companys Articles of Incorporation to introduce a capital band provision authorizing the Board of Directors to adjust the Company's share capital, without additional shareholder approval, within a range of 155,795,958 registered shares to 190,417,282 registered shares for a five-year period ending on September 13, 2028. At the 2025 AGM, the Company's shareholders approved a renewal of the capital band, setting a new range of 144,706,014 registered shares to 176,862,906 registered shares for a five-year period ending on September 9, 2030. The amendment became effective on October 1, 2025. In addition, the Company has reserved conditional capital (1) up to 25,000,000 shares for potential issuance for the exercise of rights granted under the Company's employee equity incentive plans, and (2) up to 25,000,000 shares for issuance to cover any conversion rights under any potential future convertible bond issuance. Share Repurchases 2023 Share Repurc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing