Financial Analysis

"Commitments and Contingencies Indemnifications We indemnify our directors and officers to the maximum extent permitted under the laws of the state of Delaware and we have entered into indemnification agreements with each of our directors and executive officers. In addition, we insure our individual directors and officers against certain claims and attorney's fees and related expenses incurred in connection with the defense of such claims. The amounts and types of coverage may vary from period to period as dictated by market conditions. Management is not aware of any matters that require material indemnification of its officers or directors. Fair Price Provisions and Other Anti-Takeover Measures Our Restated Certificate of Incorporation, as amended, contains certain provisions restricting business combinations with interested stockholders under certain circumstances and imposing higher voting requirements for the approval of certain transactions (""fair price"" provisions). Any of these provisions may delay or prevent a change in control. The ""fair price"" provisions require that holders of at least two-thirds of our outstanding shares of voting stock approve certain business combinations and significant transactions with interested stockholders. Purchase Commitments We have entered into various inventory and property, plant and equipment related purchase agreements with suppliers. Certain of these agreements have provisions for a binding forecast (inventory) or non-cancella …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Lines of Credit U.S. Line of Credit On November 17, 2025, we executed an amendment to our Second Amended and Restated Credit Agreement (""Second Amended Credit Agreement"") with U.S. Bank National Association (""U.S. Bank""), which provides for a revolving line of credit (""U.S. Credit Line"") through September 30, 2027. The U.S. Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. The U.S. Credit Line has a maximum availability up to $60.0 million, subject to meeting certain financial conditions. Availability is based on Borrowing Base defined as 75% of accounts receivable aged less than 90 days less reserves for doubtful accounts and returns. The Borrowing Base is calculated monthly. At December 31, 2025, the U.S. Credit Line availability was $48.5 million. At February 24, 2026, the U.S. Credit Line total availability was $47.1 million. Amounts available for borrowing under the U.S. Credit Line are reduced by the balance of any outstanding letters of credit, of which there was $0.5 million at December 31, 2025 and none at December 31, 2024. At February 19, 2026 the balance of the letter of credit was $1.9 million. All obligations under the U.S. Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets, as well as a guaranty of the U.S. Credit Line by our wholly-owned subsidiary, Universal Electronics BV. Under the Second Amende …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The pattern of revenue recognition was as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Goods and services transferred at a point in time $ 294,337 $ 321,410 $ 324,433 Goods and services transferred over time 73,951 73,469 96,024 Net sales $ 368,288 $ 394,879 $ 420,457 Our net sales to external customers by channel were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Connected home (1) $ 125,384 $ 108,258 $ 125,546 Home entertainment (2) 242,904 286,621 294,911 Net sales $ 368,288 $ 394,879 $ 420,457 (1) The connected home channel represents climate control, smart home and security product sales sold primarily to HVAC, security, home automation and home appliance customers. (2) The home entertainment channel represents entertainment-related product sales sold primarily to video service providers, consumer electronics original equipment manufacturers (""OEMs"") and retailers. It also includes sales associated with intellectual property licensing and our cloud-based software solution."

DisaggregationOfRevenueTableTextBlock

"Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Cost of sales $ 55 $ 106 $ 125 Research and development expenses 567 769 1,098 Selling, general and administrative expenses: Employees 3,402 5,379 6,980 Outside directors 1,074 446 606 Total employee and director stock-based compensation expense $ 5,098 $ 6,700 $ 8,809 Income tax benefit $ 767 $ 1,026 $ 1,369 Restricted Stock Non-vested restricted stock award activity was as follows: 2025 2024 2023 Shares (in 000's) Weighted-Average Grant Date Fair Value Shares (in 000's) Weighted-Average Grant Date Fair Value Shares (in 000's) Weighted-Average Grant Date Fair Value Non-vested at beginning of the year 595 $ 13.07 486 $ 21.66 376 $ 36.82 Granted 367 6.73 391 10.55 340 14.15 Vested (362) 14.48 (264) 24.85 (211) 35.77 Forfeited (106) 9.04 (18) 17.40 (19) 17.72 Non-vested at end of the year 494 $ 8.25 595 $ 13.07 486 $ 21.66 As of December 31, 2025, we expect to recognize $2.7 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.5 years. Performance Stock Our performance stock awards (PSUs) vest subject to a service condition over a three-ye …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets, Net Goodwill During the year ended December 31, 2023, a decline in our financial performance, overall negative trend in the video service provider channel and an uncertain economic environment contributed to a significant decline in our market capitalization. We considered this to be an impairment trigger. We, therefore, performed a quantitative valuation analysis under an income approach to estimate our reporting unit's fair value. The income approach used projections of estimated operating results and cash flows that were discounted using a discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect our best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation and amortization. In addition to our valuation analysis under an income approach, we also considered the implied control premium compared to our market capitalization. We determined that the implied control premium over our market capitalization to be substantial; therefore, we recorded an impairment charge of $49.1 million during the year ended December 31, 2023. Intangible Assets, Net The components of intangible assets, net were as follows: December 31, 2025 2024 (In thousands) Gross (1) Accumulated …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes In 2025, 2024 and 2023, pre-tax income (loss) was attributed to the following jurisdictions: Year Ended December 31, (In thousands) 2025 2024 2023 Domestic operations $ (47,871) $ (53,708) $ (95,876) Foreign operations 35,911 35,110 3,622 Total pre-tax income (loss) $ (11,960) $ (18,598) $ (92,254) The provision for income taxes charged to operations was as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Current tax expense: U.S. federal $ 90 $ 37 $ 23 State and local 35 45 44 Foreign 6,012 5,068 7,193 Total current 6,137 5,150 7,260 Deferred tax (benefit) expense: U.S. federal 269 (813) State and local (126) Foreign 502 12 (337) Total deferred 502 281 (1,276) Total provision for income taxes $ 6,639 $ 5,431 $ 5,984 Reconciliation of Statutory Federal Income Tax Rate to the Effective Income Tax Rate Below is a tabular rate reconciliation for the year ended December 31, 2025: Year Ended December 31, (In thousands) Amount Percent Tax provision at U.S. federal statutory rate $ (2,512) 21.0 % State and local income taxes, net of U.S. federal income tax effect * 28 (0.2) % Foreign tax effect Brazil Statutory tax rate difference between Brazil & the United States 301 (2.5) % Preferential income tax rate (291) 2.4 % Non-taxable and nondeductible items: Non-taxable legal settlement income (126) 1.1 % Other adjustments 11 (0.1) % China Statutory tax rate difference between China & the United States 230 (1.9) % Research and development super deducti …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At December 31, 2025, our operating leases had remaining lease terms of up to 35 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheets were as follows: (In thousands) December 31, 2025 December 31, 2024 Assets: Operating lease right-of-use assets $ 10,203 $ 14,322 Liabilities: Other accrued liabilities $ 3,213 $ 3,553 Long-term operating lease obligations 6,193 9,232 Total lease liabilities $ 9,406 $ 12,785 Operating lease expense, operating lease cash flows and supplemental cash flow information were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Cost of sales $ 1,312 $ 2,390 $ 3,012 Selling, general and administrative expenses 5,954 5,017 4,378 Total operating lease expense $ 7,266 $ 7,407 $ 7,390 Operating lease expenses from variable and short-term lease costs $ 1,401 $ 1,146 $ 1,033 Operating cash outflows from operating leases $ 6,002 $ 8,152 $ 7,736 Operating lease right-of-use assets obtained in exchange for lease obligations $ 4,806 $ 1,249 $ 4,360 As part of our continued evaluation of our global manufacturing footprint and our overall cost optimization and return to profitability strategy, we ceased production activities and shut down our manufacturing facility in Mexico and vacated and abandoned our office space in Carlsbad, California. As a result of these …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, ""Income Taxes Improvements to Tax Disclosures."" The guidance expands income tax disclosures by requiring public business entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, equal to or greater than 5% of the amount computed by multiplying the income (loss) from continuing operations before income taxes by the applicable statutory income tax rate, and disaggregation of certain items that are significant. Additionally, this guidance requires that all entities disaggregate disclosures by jurisdiction on the amount of income taxes paid (net of refunds received), income or loss from continuing operations before income tax expense (or benefit) and income tax expense (or benefit) from continuing operations. The guidance applies to all entities subject to income taxes and is effective for annual periods beginning after December 15, 2024. The Company adopted this standard on a prospective basis for the year ended December 31, 2025. See Note 10 for additional information. Accounting Pronouncements Not Yet Effective In September 2025, the FASB issued Accounting Standards Update (""ASU"") 2025-06, ""Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software"". This guidance removes all refer …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans We maintain a retirement and profit sharing plan under Section 401(k) of the Internal Revenue Code for all of our domestic employees that meet certain qualifications. Participants in the plan may elect to contribute up to the maximum allowed by law. Prior to October 1, 2024, we matched 50% of the participants' contributions up to 15% of their gross salary in the form of newly issued shares of our common stock. Between October 1, 2024 and October 3, 2025, we matched 25% of the participants' contributions up to 15% of their gross salary in the form of newly issued shares of our common stock. Beginning on October 3, 2025, we no longer match participants' contributions. We may also make other discretionary contributions to the plan. We recorded $0.4 million, $1.1 million and $1.3 million of expense for company contributions for the years ended December 31, 2025, 2024 and 2023, respectively.

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

Reportable Segment Our chief operating decision maker, our Interim Chief Executive Officer and Chief Operating Officer, reviews financial information presented on a consolidated basis, including consolidated net income and its components, as reported on our consolidated statements of operations, accompanied by disaggregated information about revenues, for purposes of making operating decisions and assessing financial performance of our single consolidated segment, primarily by monitoring actual results versus our internal budget and forecasts. Our reported segment revenue, segment profit or loss, and significant segment expenses were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Revenue $ 368,288 $ 394,879 $ 420,457 Less: Adjusted cost of sales (1) 260,586 280,779 315,049 Adjusted research and development expenses (2) 25,702 28,954 30,183 Adjusted operating expenses (3) 75,721 82,952 85,345 Other segment items (4) 24,878 26,223 88,118 Net income (loss) $ (18,599) $ (24,029) $ (98,238) (1) Cost of sales from the consolidated statements of operations, adjusted to exclude impairment of long-lived assets and stock-based compensation expense. (2) R&D expenses from the consolidated statements of operations, adjusted to exclude stock-based compensation expense. (3) Operating expenses less R&D expenses from the consolidated statements of operations, adjusted to exclude stock-based compensation, amortization of acquired intangible assets, costs associated w …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. Reportable Segment An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Interim Chief Executive Officer and Chief Operating Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment. Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (""U.S. GAAP"") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including th …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Purchase Commitments We have entered into various inventory and property, plant and equipment related purchase agreements with suppliers. Certain of these agreements have provisions for a binding forecast (inventory) or non-cancellable purchase orders (inventory and PP&E). Our non-cancellable purchase commitments were as follows: (In thousands) September 30, 2025 December 31, 2024 Inventory purchase commitments $ 4,493 $ 9,292 PP&E purchase commitments 864 927 Total purchase commitments $ 5,357 $ 10,219 These amounts are expected to be paid within the next twelve months. Product Warranties Changes in the liability for product warranty claims costs were as follows: (In thousands) Nine Months Ended September 30, 2025 2024 Balance at beginning of period $ 35 $ 522 Additions (reductions) to costs and expenses 11 78 Settlements (in cash or in kind) (30) (103) Foreign currency translation gain (loss) Balance at end of period $ 16 $ 497 Restructuring Activities 2023 - 2024 Restructuring Asia In conjunction with our plan to restructure and optimize our manufacturing footprint while reducing our concentration risk in the PRC, we stopped all production activities and began to shut down our southwestern China factory beginning in the third quarter of 2023. In addition, during the fourth quarter of 2024, we stopped production activities and shut down one of our eastern PRC factories. We incurred no severance or other exit costs during the nine month …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Lines of Credit U.S. Line of Credit On December 16, 2024, we executed an amendment to our Second Amended and Restated Credit Agreement (""Second Amended Credit Agreement"") with U.S. Bank National Association, which provides for a revolving line of credit (""U.S. Credit Line"") through April 30, 2026. We expect to renew the U.S. Credit Line prior to its expiration; however, no assurance can be given that future financing will be available or, if available, that we will be offered terms satisfactory to us. The U.S. Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. The U.S. Credit Line has a maximum availability of up to $75.0 million, subject to meeting certain financial conditions, including an accounts receivable coverage ratio (""AR Ratio""). This AR Ratio is calculated monthly and adjusts the current U.S. Credit Line total availability. At September 30, 2025, the U.S. Credit Line total availability was $54.1 million based upon the AR Ratio. At October 23, 2025, the U.S. Credit Line total availability was $50.4 million based upon the AR Ratio. Amounts available for borrowing under the U.S. Credit Line are reduced by the balance of any outstanding letters of credit, of which there was $0.5 million at September 30, 2025 and none at December 31, 2024. All obligations under the U.S. Credit Line are secured by substantially all of our U.S. personal property and tangible and intang …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The pattern of revenue recognition was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Goods and services transferred at a point in time $ 75,652 $ 85,186 $ 224,699 $ 235,572 Goods and services transferred over time 14,900 16,887 55,844 48,853 Net sales $ 90,552 $ 102,073 $ 280,543 $ 284,425 Our net sales to external customers by channel were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Connected home (1) $ 29,793 $ 26,368 $ 95,621 $ 73,830 Home entertainment (2) 60,759 75,705 184,922 210,595 Net sales $ 90,552 $ 102,073 $ 280,543 $ 284,425 (1) The connected home channel represents climate control, smart home and security product sales sold primarily to HVAC, security, home automation and home appliance customers. (2) The home entertainment channel represents entertainment-related product sales sold primarily to video service providers, consumer electronics original equipment manufacturers (""OEMs"") and retailers. It also includes sales associated with intellectual property licensing and our cloud-based software solution."

DisaggregationOfRevenueTableTextBlock

Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Cost of sales $ 13 $ 25 $ 41 $ 72 Research and development expenses 147 198 429 571 Selling, general and administrative expenses: Employees 456 1,321 2,949 4,076 Outside directors 225 107 855 296 Total employee and director stock-based compensation expense $ 841 $ 1,651 $ 4,274 $ 5,015 Income tax benefit $ 170 $ 255 $ 602 $ 762 Restricted Stock Non-vested restricted stock award activity was as follows: Shares (in thousands) Weighted-Average Grant Date Fair Value Non-vested at December 31, 2024 595 $ 13.07 Granted 367 6.73 Vested (354) 14.51 Forfeited (73) 9.29 Non-vested at September 30, 2025 535 $ 8.29 As of September 30, 2025, we expect to recognize $3.6 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.7 years. Performance Stock Non-vested performance stock award activity was as follows: Shares (in thousands) Weighted-Average Grant Date Fair Value Non-vested at December 31, 2024 116 $ 4.72 Granted 284 2.24 Vested Forfeited (116) 2.84 Non-vested at September 30, 2025 284 $ 3.01 The assump …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Intangible Assets, Net Intangible Assets, Net The components of intangible assets, net were as follows: September 30, 2025 December 31, 2024 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Capitalized software development costs $ 1,659 $ (512) $ 1,147 $ 2,575 $ (1,150) $ 1,425 Customer relationships 6,340 (5,069) 1,271 6,340 (4,526) 1,814 Developed and core technology 740 (469) 271 740 (398) 342 Patents 35,046 (15,172) 19,874 34,758 (14,339) 20,419 Trademarks and trade names 50 (30) 20 450 (412) 38 Total intangible assets, net $ 43,835 $ (21,252) $ 22,583 $ 44,863 $ (20,825) $ 24,038 (1) This table excludes the gross value of fully amortized intangible assets totaling $52.3 million and $49.3 million at September 30, 2025 and December 31, 2024, respectively. Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of sales $ 143 $ 207 $ 485 $ 488 Selling, general and administrative expenses 1,105 1,160 3,302 3,336 Total amortization expense $ 1,248 $ 1,367 $ 3,787 $ 3,824 Estimated future annual amortization expense related to our intangible assets at September 30, 2025, was as follows: (In thousands) 2025 (remain …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes We recorded income tax expense of $2.6 million and $2.5 million for the three months ended September 30, 2025 and 2024, respectively. We recorded income tax expense of $6.6 million and $6.0 million for the nine months ended September 30, 2025 and 2024, respectively. The income tax expense recorded for the nine months ended September 30, 2025 and September 30, 2024 is primarily attributable to the mix of pre-tax income among jurisdictions, including losses not benefited as a result of a valuation allowance. The difference between the Company's effective tax rate and the 21.0% U.S. federal statutory rate for the nine months ended September 30, 2025 primarily related to the mix of pre-tax income and loss among jurisdictions and permanent tax items, including a tax on global intangible low-taxed income. The Company's income tax provision can be affected by other factors, including changes in the tax laws and regulations in the jurisdictions in which we operate, changes in the valuation allowances on deferred tax assets, and other discrete items. At December 31, 2024, we assessed the realizability of the Company's deferred tax assets by considering whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered the scheduled reversal of …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2025, our operating leases had remaining lease terms of up to 35 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheets were as follows: (In thousands) September 30, 2025 December 31, 2024 Assets: Operating lease right-of-use assets $ 11,003 $ 14,322 Liabilities: Other accrued liabilities $ 3,686 $ 3,553 Long-term operating lease obligations 6,889 9,232 Total lease liabilities $ 10,575 $ 12,785 Operating lease expense, operating lease cash flows and supplemental cash flow information were as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of sales $ 404 $ 562 $ 1,073 $ 1,859 Selling, general and administrative expenses 2,451 1,112 4,721 3,365 Total operating lease expense $ 2,855 $ 1,674 $ 5,794 $ 5,224 Operating lease expenses from variable and short-term lease costs $ 390 $ 315 $ 1,112 $ 832 Operating cash outflows from operating leases $ 1,935 $ 2,062 $ 4,800 $ 5,377 Operating lease right-of-use assets obtained in exchange for lease obligations $ 950 $ 160 $ 4,835 $ 169 As part of our continued evaluation of our global manufacturing footprint and our overall cost optimization and return to profitability strategy, we made the decision to cease production activities and shut down our manufacturing facility …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Not Yet Effective In September 2025, the Financial Accounting Standards Board (the ""FASB"") issued Accounting Standards Update (""ASU"") 2025-06, ""Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software"". This guidance removes all references to software development project stages so that the guidance is neutral to different software development methods. Therefore, under the ASU, software capitalization will begin when management has authorized and committed to funding the software project and when it is probable that the project will be completed and the software will be used to perform the function intended. This guidance is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The guidance is to be applied on a prospective basis, or on a modified transition approach or a retrospective transition approach, with early adoption permitted. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, ""Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets"". This guidance allows entities to elect a practical expedient that assumes that the current conditions as of the balan …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Reportable Segment Our chief operating decision maker, our interim CEO, reviews financial information presented on a consolidated basis, including consolidated net income and its components, as reported on our consolidated statements of operations, accompanied by disaggregated information about revenues, for purposes of making operating decisions and assessing financial performance of our single consolidated segment, primarily by monitoring actual results versus our internal budget and forecasts. Our reported segment revenue, segment profit or loss, and significant segment expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Revenue $ 90,552 $ 102,073 $ 280,543 $ 284,425 Less: Adjusted cost of sales (1) 64,230 71,316 198,914 201,681 Adjusted research and development expenses (2) 6,540 7,140 20,448 22,108 Adjusted operating expenses (3) 18,212 21,050 58,223 62,623 Other segment items (4) 9,899 5,225 20,473 17,513 Net income (loss) $ (8,329) $ (2,658) $ (17,515) $ (19,500) (1) Cost of sales from the consolidated statements of operations, adjusted to exclude stock-based compensation and impairment expenses. (2) R&D expenses from the consolidated statements of operations, adjusted to exclude stock-based compensation expense. (3) Operating expenses less R&D expenses from the consolidated statements of operations, adjusted to exclude stock-based compensation, amortization of acquired intangible assets, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing