Financial Analysis

Indemnifications and Contingencies Commitments As of December 2025, we had commitments of $29.0 million for purchase obligations which include payments for the acquisition of inventories, other goods or services of either a fixed or minimum quantity and obligations for future payments related to software, technology and IP license agreements. Total future unconditional purchase commitments in future fiscal years were as follows: Remainder of 2026 $ 15.1 2027 8.4 2028 5.5 Total $ 29.0 The amounts in the table above exclude gross unrecognized tax benefits related to uncertain tax positions of $42.9 million. As of December 2025, we were unable to make a reasonably reliable estimate of when cash settlement with a taxing authority may occur in connection with our gross unrecognized tax benefits. Indemnifications In connection with certain agreements, we are obligated to indemnify the counterparty against third party claims alleging infringement of certain intellectual property rights. We have in the past, and may in the future, receive notices from third parties that claim our products infringe their intellectual property rights. We cannot be certain that our technologies and products do not, and will not, infringe issued patents or other proprietary rights of third parties. Any infringement claims, with or without merit, could result in significant litigation costs and diversion of management and financial resources, including the payment of damages, which could have a material a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt and Revolving Credit Facility Our total debt outstanding consisted of the following: December 2025 June 2025 Net Carrying Amount Net Carrying Amount Stated Rate Effective Rate Principal Long-term Principal Long-term 2031 Notes 0.75% 1.19% $ 450.0 $ 450.0 $ 450.0 $ 450.0 2029 Notes 4.00% 4.17% 400.0 400.0 400.0 400.0 Total borrowings 850.0 850.0 850.0 850.0 Less: unamortized debt issuance costs (14.0) (15.2) Total debt $ 850.0 $ 836.0 $ 850.0 $ 834.8 2031 Convertible Senior Notes On November 19, 2024 and November 26, 2024, we issued and sold $400.0 million and $50.0 million, respectively, in aggregate principal amount of 0.75% Convertible Senior Notes due 2031 (2031 Notes) in a private placement. The 2031 Notes were issued pursuant to an indenture (2031 Indenture), dated November 19, 2024. The 2031 Notes are unsecured, bear interest at a fixed rate of 0.75% per year, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025, and mature on December 1, 2031, unless earlier converted, redeemed or repurchased by us. The 2031 Notes are our senior, unsecured obligations and are (i) equal in right of payment with our existing and future senior unsecured indebtedness; (ii) senior in right of payment to our existing and future indebtedness that is expressly subordinated to the 2031 Notes; (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Common Stock Share-Based Compensation Stock Repurchase Program We have a Board-approved stock repurchase program authorizing repurchases of up to $150.0 million of our common stock. This program does not have an expiration date; however, we will periodically review the authorization to assess its continued appropriateness in light of our capital allocation priorities and market conditions. The number of shares repurchased and the timing of repurchases depend on the level of our cash balances, general business and market conditions and other factors, including alternative investment opportunities. During the three and six months ended December 2025, we repurchased $36.4 million and $43.6 million of our common stock, respectively, and $106.4 million remains available for future stock repurchases under the stock repurchase program. Share-Based Compensation Share-based compensation recognized in our condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 Cost of revenue $ 0.2 $ 0.3 $ 0.6 $ (2.4) Research and development 21.6 15.6 42.4 30.1 Selling, general, and administrative 16.9 18.7 32.4 34.1 Total $ 38.7 $ 34.6 $ 75.4 $ 61.8 Share-Based Compensation Plan Activity Restricted Stock Units RSUs granted generally vest ratably over two to three years from the vesting commencement date. RSU activity was as follows: RSU Awards Outstanding Weighted-Average Grant Date Fair Value per Share Balance as of Ju …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements We determine fair value based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Valuation is based upon other unobservable inputs that are significant to the fair value measurements. Ou …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Acquired Intangibles, Net Goodwill The following table represents the change in our goodwill balance for the periods presented: December June 2025 2025 Beginning balance $ 872.3 $ 816.4 Acquisition activity 55.9 Ending balance $ 872.3 $ 872.3 Acquired Intangibles, Net The following table summarizes the net carrying amounts, excluding fully amortized intangible assets: December 2025 June 2025 Weighted Average Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Audio and video technology 5.6 $ 231.9 $ (208.8) $ 23.1 $ 231.9 $ (198.4) $ 33.5 Customer relationships 4.7 187.1 (159.2) 27.9 187.1 (150.7) 36.4 Wireless connectivity technology 4.6 314.4 (169.7) 144.7 271.9 (139.6) 132.3 Video interface technology 3.4 133.0 (104.3) 28.7 133.0 (97.9) 35.1 Other 2.4 41.9 (37.6) 4.3 52.1 (34.0) 18.1 In-process research and development Not applicable 6.8 6.8 6.8 6.8 Total intangible assets $ 915.1 $ (679.6) $ 235.5 $ 882.8 $ (620.6) $ 262.2 The following table presents details of amortization for the periods presented: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 Cost of revenue $ 30.2 $ 20.8 $ 60.7 $ 41.6 Acquired intangibles amortization 3.8 3.8 8.5 7.6 Total amortization of intangibles $ 34.0 $ 24.6 $ 69.2 $ 49.2 The following table presents the estimated future amortization expense of acquired amortizable intangible assets as of December 2025: Fiscal Yea …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes We account for income taxes under the asset and liability method. The provision for income taxes recorded in interim periods is based on our estimate of the annual effective tax rate applied to year-to-date income before provision for income taxes, adjusted for discrete items required to be recognized in the period in which they are incurred. In each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual tax rate changes, we make a cumulative adjustment in that quarter. Our quarterly tax provision and our quarterly estimate of the annual effective tax rate can be subject to volatility due to several factors, including our ability to accurately forecast annual income before provision for income taxes in each of the tax jurisdictions in which we operate. The benefit from income taxes of $2.7 million and $4.8 million for the three and six months ended December 2025, respectively, represented estimated federal, foreign, and state income taxes. The effective tax rate for the three and six months ended December 2025 diverged from the combined U.S. federal and state statutory tax rate primarily due to non-deductible share-based compensation and non-deductible officer compensation, partially offset by the benefit of research credits, the benefit from U.S. inclusion of foreign income and foreign income taxed at lower rates. The effective tax rate for the three and six months ended December 2024 diverged from the combined U.S. federal …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases As of December 2025 and June 2025, the components of leases are as follows: December June 2025 2025 Operating lease right-of-use assets $ 42.9 $ 45.2 Operating lease liabilities $ 11.4 $ 12.3 Operating lease liabilities, long-term 34.4 35.8 Total operating lease liabilities $ 45.8 $ 48.1 Supplemental cash flow information related to leases is as follows: Six Months Ended December 2025 2024 Cash paid for operating leases included in operating cash flows $ 6.7 $ 6.8 Lease liabilities arising from obtaining right-of-use assets $ 6.6 $ 4.7 As of December 2025, the weighted average remaining lease term was 5.50 years, and the weighted average discount rate was 5.19%. For the three months ended December 2025 and December 2024, we recorded operating lease expense of $3.3 million and $3.2 million, respectively. For the six months ended December 2025 and December 2024, we recorded operating lease expense of $6.4 million in each period. Our short-term leases are immaterial, and we do not have finance leases. Future minimum lease payments for the operating lease liabilities were as follows: Fiscal Year Operating Lease Payments Remainder of 2026 $ 7.6 2027 10.8 2028 8.9 2029 7.9 2030 5.4 Thereafter 12.0 Total future minimum operating lease payments 52.6 Less: interest (6.8) Total lease liabilities $ 45.8

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Accounting Pronouncements Recently Issued In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. We are currently assessing the impact of this guidance on our disclosures and will adopt this standard for our fiscal year ended June 27, 2026. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Disaggregation of Income Statement Expenses. This guidance requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. This amendment is effective for our fiscal year ending June 2028 and our interim periods within the fiscal year ending June 2029. We are currently assessing the impact of this guidance on our disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring Activities We continuously evaluate our operations to reduce costs and increase profitability, increase operational efficiencies and gain synergies from our previous acquisitions and align our business in response to market conditions. A summary of restructuring costs as presented in our condensed consolidated statements of operations is as follows: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 Employee severance and related costs $ 0.1 $ 0.8 $ 1.8 $ 15.0 Lease termination costs (1) 0.8 $ 0.1 $ 0.8 $ 2.6 $ 15.0 The following table presents the beginning and ending restructuring liability balances for each restructuring action: Fiscal 2026 Restructuring Balance, June 2025 $ Charges 1.8 Payments (1.7) Balance, December 2025 $ 0.1 (1) Lease termination costs of $0.8 million were recorded directly to the condensed consolidated statements of operations during the six months ended December 2025 and were not included in the restructuring liability balance above. Fiscal 2026 Restructuring Plan A restructuring plan was initiated during the first quarter of fiscal 2026 (Fiscal 2026 Restructuring Plan) to streamline and optimize resources and to reduce operating costs. Restructuring charges under this plan are mainly comprised of severance and one-time termination benefits. We completed all actions under this restructuring plan in the second quarter of fiscal 2026. Fiscal 2025 Restructuring Plan A restructuring plan was initiated during the firs …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The majority of our revenue is generated from product shipments to our customers. A summary of our product categories is as follows: Core IoT: Includes products for Wireless and Processor Solutions. Enterprise and Automotive: Includes products for PC Touch Pad, PC Fingerprint, Video Interface Solutions and Automotive Solutions. Mobile: Includes products for Touch and Display Solutions for Mobile phone applications. Disaggregation of revenue Net revenue by product category was as follows: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 Enterprise and Automotive product applications $ 161.1 $ 159.1 $ 308.8 $ 306.7 Core IoT product applications 93.2 61.1 196.8 120.7 Mobile product applications 48.2 47.0 89.4 97.5 $ 302.5 $ 267.2 $ 595.0 $ 524.9 Net revenue by geographic region, based on the billing location of our customers, for the periods presented were as follows: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 China/Hong Kong $ 144.1 $ 112.2 $ 286.2 $ 240.0 Taiwan 86.2 77.4 180.6 141.5 Japan 28.9 43.6 56.6 81.8 Other 14.9 12.5 29.9 23.1 South Korea 22.5 18.8 34.6 34.0 United States 5.9 2.7 7.1 4.5 $ 302.5 $ 267.2 $ 595.0 $ 524.9 Net revenue by customer whose revenue represented 10% or more of our total net revenue for the periods presented was as follows: Three Months Ended Six Months Ended December December 2025 2024 2025 2024 Customer A 17% 15% 17% 14% Customer B 14% 11% 11% 12% Customer C * * 12% * ______________ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Other Information Segment reporting We operate in one segment the development, marketing and sale of semiconductor products used in electronic devices and products. This determination is based on the management approach, which designates internal information regularly available to the chief operating decision maker (CODM) for making decisions and assessing performance as the source of determination of our reportable segment. Our CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance. The CODM uses consolidated net income (loss), as reported in our consolidated statements of operations, as the measure of profit or loss to allocate resources and assess performance. Financial forecasts and budget-to-actual results used by the CODM to assess performance and allocate resources, as well as those used for strategic decisions related to headcount and capital expenditures, are also reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the tables below when deciding whether to reinvest profits or pursue strategic mergers and acquisitions. The measure of segment assets is reported on the consolidated balance sheet as total assets. The CODM does not review segment assets at a level other than that presented in the accompanying consolidated balance sheets. The following table presents the calculation of s …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing