RAMBUS INC
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
RMBS$74.53+7.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000917273-25-000075
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0000950170-25-099621
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 110 current paragraphs.
60 unchanged; 36 reworded; 12 added; 8 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 13 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Revenue of $172.2 million;
Current report
Operating expenses of $74.4 million; and
Current report
Net cash provided by operating activities of $94.4 million.
Current report
We achieved record quarterly product revenue of $81.3 million in the second quarter of 2025, which increased by approximately 43% as compared to the same period in 2024. We also generated record quarterly cash from operations of $94.4 million. Our chip business continues to be a key growth engine for us.
Current report
$1.5 million. Total research and development expenses for the six months ended June 30, 2025 increased approximately $11.1 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $9.9 million and stock-based compensation expenses of $2.2 million, both driven primarily by headcount growth, and an increase in depreciation expense of $0.6 million, offset by a decrease in prototyping costs of $2.7 million.
Current report
Total sales, general and administrative expenses for the three months ended June 30, 2025 increased approximately $3.7 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $2.0 million and stock-based compensation expenses of $1.3 million, both driven primarily by headcount growth. Total sales, general and administrative expenses for the six months ended June 30, 2025 increased approximately $6.0 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $3.2 million and stock-based compensation expenses of $2.1 million, both driven primarily by headcount growth, as well as an increase in depreciation expense of $0.7 million.
Current report
Total research and development expenses for the six months ended June 30, 2025 increased approximately $11.1 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $9.9 million and stock-based compensation expenses of $2.2 million, both driven primarily by headcount growth, and an increase in depreciation expense of $0.6 million, offset by a decrease in prototyping costs of $2.7 million.
Current report
Total sales, general and administrative expenses for the three months ended June 30, 2025 increased approximately $3.7 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $2.0 million and stock-based compensation expenses of $1.3 million, both driven primarily by headcount growth.
Current report
Total sales, general and administrative expenses for the six months ended June 30, 2025 increased approximately $6.0 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $3.2 million and stock-based compensation expenses of $2.1 million, both driven primarily by headcount growth, as well as an increase in depreciation expense of $0.7 million.
Current report
Impairment of Assets
Current report
During the three and six months ended June 30, 2024, we recorded a charge of approximately $1.1 million in our Unaudited Condensed Consolidated Statements of Income of this Form 10-Q, related to the write-off of certain fixed assets no longer in use and for which we determined they had no alternate economic use.
Current report
On July 4, 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act. Included in this legislation are provisions that allow for the immediate expensing of domestic United States research and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. As a result of the enactment of the legislation, we expect an increase to tax expense during the third and fourth quarters of 2025, primarily related to changes in the taxation of profits derived from foreign operations, and more specifically, the foreign-derived intangible income deduction. We continue to evaluate the impact the new legislation will have on our consolidated financial statements. As the assessment is ongoing, we are not able to quantify the specific impact on our consolidated financial statements at this time.
Removed paragraphs (8)
Previous report
•Revenue of $166.7 million;
Previous report
•Operating expenses of $70.7 million; and
Previous report
•Net cash provided by operating activities of $77.4 million.
Previous report
We delivered record quarterly product revenue of $76.3 million in the first quarter of 2025, which increased by approximately 52% as compared to the same period in 2024. We continued our market leadership in core DDR5 chip products and experienced growth in revenue from new products.
Previous report
Total sales, general and administrative expenses for the three months ended March 31, 2025 increased approximately $2.2 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $1.2 million and stock-based compensation expenses of $0.8 million, both driven primarily by headcount growth.
Previous report
Total sales, general and administrative expenses for the three months ended March 31, 2025 increased approximately $2.2 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $1.2 million and stock-based compensation expenses of $0.8 million, both driven primarily by headcount growth.
Previous report
(4) In connection with the acquisitions of Hardent, Inc. in the second quarter of 2022 and PLDA in the third quarter of 2021, we are obligated to pay retention bonuses to certain employees subject to certain eligibility and acceleration provisions, including the condition of employment.
Previous report
We record share repurchases as a reduction to stockholders’ equity. We record a portion of the purchase price of the repurchased shares as an increase to accumulated deficit when the price of the shares repurchased exceeds the average original proceeds per share received from the issuance of common stock in accordance with our accounting policy.
Reworded paragraphs (36)
Previous wording
Our continued execution delivered strong results during the first quarter of 2025, driven by continued demand for our memory interface chips and increases in our royalties revenue during the quarter.
Current wording
Our continued execution delivered strong results during the second quarter of 2025, driven primarily by increasing demand for our memory interface chips.
Previous wording
Key first quarter 2025 financial results included:
Current wording
Key second quarter 2025 financial results included:
Previous wording
Product revenue consists primarily of memory interface chips and is increasing in strategic significance. Our memory interface chips are sold to major DRAM manufacturers, Micron, Samsung and SK hynix, as well as directly to system manufacturers and cloud providers, for integration into server memory modules. Product revenue accounted for 46% of our consolidated revenue for the three months ended March 31, 2025, as compared to 43% for the three months ended March 31, 2024.
Current wording
Product revenue consists primarily of memory interface chips and is increasing in strategic significance. Our memory interface chips are sold to major DRAM manufacturers, Micron, Samsung and SK hynix, as well as directly to system manufacturers and cloud providers, for integration into server memory modules. Product revenue accounted for 47% of our consolidated revenue for both the three and six months ended June 30, 2025, as compared to 43% for both the three and six months ended June 30, 2024.
Previous wording
Royalties revenue is derived from our patent licenses and Silicon IP, through which we provide our customers certain rights to our broad worldwide portfolio of patented inventions, as well as royalties from IP licenses. Our patent licenses enable our customers to use a portion of our patent portfolio in their own digital electronics products. The licenses typically range in duration up to ten years and may define the specific field of use where our customers may utilize our inventions in their products. Royalties may be structured as fixed, variable or a hybrid of fixed and variable royalty payments. Leading semiconductor and electronic system companies such as AMD, Amlogic, Broadcom, CXMT, IBM, Infineon, Kioxia, Marvell, MediaTek, Micron, Nanya, Nuvoton, NVIDIA, Phison, Qualcomm, Samsung, Silicon Motion, SK hynix, Socionext, STMicroelectronics, Toshiba, Western Digital, and Winbond have licensed our patents. The vast majority of our patents originate from our internal research and development efforts. Additionally, from time to time, we enter into agreements to sell certain patent assets under agreements which may also include subsequent profit-sharing. The sale of these patents, as well as the subsequent profit-sharing, are included as part of our royalties revenue. Revenue from royalties accounted for 44% of our consolidated revenue for the three months ended March 31, 2025, as compared to 40% for the three months ended March 31, 2024.
Current wording
Royalties revenue is derived from our patent licenses and Silicon IP, through which we provide our customers certain rights to our broad worldwide portfolio of patented inventions, as well as royalties from IP licenses. Our patent licenses enable our customers to use a portion of our patent portfolio in their own digital electronics products. The licenses typically range in duration up to ten years and may define the specific field of use where our customers may utilize our inventions in their products. Royalties may be structured as fixed, variable or a hybrid of fixed and variable royalty payments. Leading semiconductor and electronic system companies such as AMD, Amlogic, Broadcom, CXMT, IBM, Infineon, Kioxia, Marvell, MediaTek, Micron, Nanya, Nuvoton, NVIDIA, Phison, Qualcomm, Samsung, Silicon Motion, SK hynix, Socionext, STMicroelectronics, Toshiba, Western Digital, and Winbond have licensed our patents. The vast majority of our patents originate from our internal research and development efforts. Additionally, from time to time, we enter into agreements to sell certain patent assets under agreements which may also include subsequent profit-sharing. The sale of these patents, as well as the subsequent profit-sharing, are included as part of our royalties revenue. Revenue from royalties accounted for 40% and 42% of our consolidated revenue for the three and six months ended June 30, 2025, respectively, as compared to 43% and 41% for the three and six months ended June 30, 2024, respectively.
Previous wording
Contract and other revenue consists primarily of Silicon IP, which is comprised of our high-speed interface and security IP. Revenue sources under contract and other revenue include our IP core licenses, software licenses and related implementation, support and maintenance fees and engineering services fees. The timing and amounts invoiced to customers can vary significantly depending on specific contract terms and can therefore have a significant impact on deferred revenue or accounts receivable in any given period. Contract and other revenue accounted for 10% of our consolidated revenue for the three months ended March 31, 2025, as compared to 17% of our consolidated revenue for the three months ended March 31, 2024.
Current wording
Contract and other revenue consists primarily of Silicon IP, which is comprised of our high-speed interface and security IP. Revenue sources under contract and other revenue include our IP core licenses, software licenses and related implementation, support and maintenance fees and engineering services fees. The timing and amounts invoiced to customers can vary significantly depending on specific contract terms and can therefore have a significant impact on deferred revenue or accounts receivable in any given period. Contract and other revenue accounted for 13% and 11% of our consolidated revenue for the three and six months ended June 30, 2025, respectively, as compared to 14% and 16% of our consolidated revenue for the three and six months ended June 30, 2024, respectively.
Previous wording
Cost of product revenue mainly includes costs attributable to the sale of memory products. Cost of product revenue increased approximately $10.6 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to higher sales volumes of our memory interface chips.
Current wording
Cost of product revenue mainly includes costs attributable to the sale of memory products. Cost of product revenue increased approximately $9.6 million and $20.2 million for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024. The increases were primarily due to higher sales volumes of our memory interface chips.
Previous wording
Cost of contract and other revenue reflects the portion of the total engineering costs which are specifically devoted to individual customer development and support services. Cost of contract and other revenue remained relatively flat for the three months ended March 31, 2025 as compared to the same period in 2024.
Current wording
Cost of contract and other revenue reflects the portion of the total engineering costs which are specifically devoted to individual customer development and support services. Cost of contract and other revenue decreased $0.4 million for both the three and six months ended June 30, 2025 as compared to the same periods in 2024. The decreases in both periods were primarily due to lower engineering services associated with the contracts.
Previous wording
Total research and development expenses for the three months ended March 31, 2025 increased approximately $5.3 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $4.6 million and stock-based compensation expenses of $1.1 million, both driven primarily by headcount growth, offset by a decrease in prototyping costs of $1.1 million.
Current wording
Total research and development expenses for the three months ended June 30, 2025 increased approximately $5.8 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $5.3 million and stock-based compensation expenses of $1.2 million, both driven primarily by headcount growth, offset by a decrease in prototyping costs of
Previous wording
As of March 31, 2025, our semiconductor, security and other technologies are covered by 2,244 U.S. and foreign patents. Additionally, we have 525 patent applications pending in various countries. Some of the patents and pending patent applications are derived from a common parent patent application or are foreign counterpart patent applications. We file applications for and obtain patents in the United States and in selected foreign countries where we believe filing for such protection is appropriate and would further our overall business strategy and objectives. In some instances, obtaining appropriate levels of protection may involve prosecuting continuation and counterpart patent applications based on a common parent application. We believe our patented innovations provide our customers with the ability to achieve improved performance, lower risk, greater cost-effectiveness, and other benefits in their products and services.
Current wording
As of June 30, 2025, our semiconductor, security and other technologies are covered by 2,241 U.S. and foreign patents. Additionally, we have 506 patent applications pending in various countries. Some of the patents and pending patent applications are derived from a common parent patent application or are foreign counterpart patent applications. We file applications for and obtain patents in the United States and in selected foreign countries where we believe filing for such protection is appropriate and would further our overall business strategy and objectives. In some instances, obtaining appropriate levels of protection may involve prosecuting continuation and counterpart patent applications based on a common parent application. We believe our patented innovations provide our customers with the ability to achieve improved performance, lower risk, greater cost-effectiveness, and other benefits in their products and services.
Previous wording
We have a high degree of revenue concentration. Our top five customers represented approximately 71% and 64% of our consolidated revenue for the three months ended March 31, 2025 and 2024, respectively. The level of concentration and particular customers which account for this concentration have varied in the past and may vary in the future as a result of demand for our semiconductor products, timing of new contracts, expiration of existing contracts, as well as timing of contract expirations and renewals, industry consolidation and the volumes and prices at which the customers have recently sold to their customers. These variations are expected to continue in the foreseeable future.
Current wording
We have a high degree of revenue concentration. Our top five customers represented approximately 68% and 69% of our consolidated revenue for the three and six months ended June 30, 2025, as compared to 64% and 63% for the three and six months ended June 30, 2024, respectively. The level of concentration and particular customers which account for this concentration have varied in the past and may vary in the future as a result of demand for our semiconductor products, timing of new contracts, expiration of existing contracts, as well as timing of contract expirations and renewals, industry consolidation and the volumes and prices at which the customers have recently sold to their customers. These variations are expected to continue in the foreseeable future.
Previous wording
Our revenue from companies headquartered outside of the United States accounted for approximately 84% of our consolidated revenue for the three months ended March 31, 2025, as compared to 56% for the three months ended March 31, 2024. We expect that revenue derived from international customers will continue to represent a significant portion of our total revenue in the future. Currently, our revenue from international customers is predominantly denominated in U.S. dollars. For additional information concerning international revenue, refer to Note 6, “Segments and Major Customers,” of Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q.
Current wording
Our revenue from companies headquartered outside of the United States accounted for approximately 80% and 82% of our consolidated revenue for the three and six months ended June 30, 2025, as compared to 58% and 57% for the three and six months ended June 30, 2024. We expect that revenue derived from international customers will continue to represent a significant portion of our total revenue in the future. Currently, our revenue from international customers is predominantly denominated in U.S. dollars. For additional information concerning international revenue, refer to Note 6, “Segments and Major Customers,” of Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q.
Previous wording
Product revenue consists primarily of revenue from the sale of memory products. Product revenue increased approximately $25.9 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to higher sales of our memory interface chips.
Current wording
Product revenue consists primarily of revenue from the sale of memory products. Product revenue increased approximately $24.6 million and $50.5 million for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024. The increases were primarily due to higher sales of our memory interface chips.
Previous wording
Royalties revenue, which includes patent and technology license royalties, increased approximately $26.5 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to the timing and structure of license agreements and renewals.
Current wording
Royalties revenue, which includes patent and technology license royalties, increased approximately $12.2 million and $38.7 million for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024. The increases were primarily due to the timing and structure of license agreements and renewals.
Previous wording
Contract and other revenue consist of revenue from technology development projects. Contract and other revenue decreased approximately $3.6 million for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was primarily due to lower revenue associated with our Silicon IP offerings.
Current wording
Contract and other revenue consists of revenue from technology development projects. Contract and other revenue increased approximately $3.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was primarily due to higher revenue associated with our Silicon IP offerings. Contract and other revenue remained flat for the six months ended June 30, 2025 as compared to the same period in 2024.
Previous wording
Cost of product revenue mainly includes costs attributable to the sale of memory products. Cost of product revenue increased approximately $10.6 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to higher sales volumes of our memory interface chips.
Current wording
Cost of product revenue mainly includes costs attributable to the sale of memory products. Cost of product revenue increased approximately $9.6 million and $20.2 million for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024. The increases were primarily due to higher sales volumes of our memory interface chips.
Previous wording
Cost of contract and other revenue reflects the portion of the total engineering costs which are specifically devoted to individual customer development and support services. Cost of contract and other revenue remained relatively flat for the three months ended March 31, 2025 as compared to the same period in 2024.
Current wording
Cost of contract and other revenue reflects the portion of the total engineering costs which are specifically devoted to individual customer development and support services. Cost of contract and other revenue decreased $0.4 million for both the three and six months ended June 30, 2025 as compared to the same periods in 2024. The decreases in both periods were primarily due to lower engineering services associated with the contracts.
Previous wording
Total research and development expenses for the three months ended March 31, 2025 increased approximately $5.3 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $4.6 million and stock-based compensation expenses of $1.1 million, both driven primarily by headcount growth, offset by a decrease in prototyping costs of $1.1 million.
Current wording
Total research and development expenses for the three months ended June 30, 2025 increased approximately $5.8 million as compared to the same period in 2024, primarily due to increases in payroll-related expenses of $5.3 million and stock-based compensation expenses of $1.2 million, both driven primarily by headcount growth, offset by a decrease in prototyping costs of $1.5 million.
Previous wording
Sales, general and administrative expenses include expenses and costs associated with trade shows, public relations, advertising, litigation, general legal, insurance and other sales, marketing and administrative efforts. Consistent with our business model, our licensing, sales, and marketing activities aim to develop or strengthen relationships with potential new and current customers. In addition, we work with current customers through marketing, sales and technical efforts to drive adoption of their products that use our innovations and solutions, by system companies. Due to the long business development cycles we face and the semi-fixed nature of sales, general and administrative expenses in a given period, these expenses generally do not correlate to the level of revenue in that period or in comparable recent or future periods.
Current wording
Sales, general and administrative expenses include expenses and costs associated with trade shows, public relations, advertising, litigation, general legal, insurance and other sales, marketing and administrative efforts. Consistent with our business model, our licensing, sales, and marketing activities aim to develop or strengthen relationships with potential new and current customers. In addition, we work with current customers through marketing, sales and technical efforts to drive adoption of their products that use our innovations and solutions, by their customers. Due to the long business development cycles we face and the semi-fixed nature of sales, general and administrative expenses in a given period, these expenses generally do not correlate to the level of revenue in that period or in comparable recent or future periods.
Previous wording
Amortization of acquired intangible assets recognized in cost of revenue and operating expenses for the three months ended March 31, 2025 decreased by approximately $1.6 million as compared to the same period in 2024. The decrease was due to intangible assets which became fully amortized.
Current wording
Amortization of acquired intangible assets recognized in cost of revenue and operating expenses for the three and six months ended June 30, 2025 decreased by approximately $1.5 million and $3.1 million, respectively, as compared to the same period in 2024. The decreases in both periods were due to intangible assets which became fully amortized.
Previous wording
The change in the fair value of the earn-out liability related to the 2021 acquisition of PLDA Group (“PLDA”), which was subject to certain revenue targets of the acquired business for a period of three years from the date of acquisition, and was settled annually in shares of our common stock based on the fair value of that common stock fixed at the time we acquired PLDA. The fair value of the earn-out liability was remeasured each quarter, depending on the acquired business’s revenue performance relative to target over the applicable period, and adjusted to reflect changes in the per share value of our common stock.
Current wording
The changes in the fair value of the earn-out liability related to the 2021 acquisition of the PLDA Group (“PLDA”), which was subject to certain revenue targets of the acquired business for a period of three years from the date of acquisition, and was settled annually in shares of our common stock based on the fair value of that common stock fixed at the time we acquired PLDA. The fair value of the earn-out liability was remeasured each quarter, depending on the acquired business’s revenue performance relative to target over the applicable period, and adjusted to reflect changes in the per share value of our common stock.
Previous wording
During the three months ended March 31, 2024, we recorded expense of $0.7 million in our Unaudited Condensed Consolidated Statements of Income of this Form 10-Q. The final earn-out was achieved in the third quarter of 2024 and fully paid during the fourth quarter of 2024.
Current wording
During the three and six months ended June 30, 2024, we remeasured the fair value of the earn-out liability, which resulted in reductions of $1.2 million and $0.5 million, respectively, in our Unaudited Condensed Consolidated Statements of Income of this Form 10-Q. The final earn-out was achieved in the third quarter of 2024 and fully paid during the fourth quarter of 2024.
Previous wording
Interest income and other income (expense), net, includes interest income from our investment portfolio and from the significant financing component of licensing agreements, as well as any gains or losses from the re-measurement of our monetary assets or liabilities denominated in foreign currencies. For the three months ended March 31, 2025 and 2024, interest income and other income (expense), net, consisted primarily of interest income of $5.0 million and $4.4 million, respectively, generated from our investment portfolio. Interest income increased during the three months ended March 31, 2025 as compared to the same period in 2024 due to an increase in our investment portfolio, partially offset by a slight decline in interest rates.
Current wording
Interest income and other income (expense), net, includes interest income from our investment portfolio and from the significant financing component of licensing agreements, as well as any gains or losses from the re-measurement of our monetary assets or liabilities denominated in foreign currencies. For the three and six months ended June 30, 2025, interest income and other income (expense), net, consisted primarily of interest income of $5.7 million and $10.6 million, respectively, generated from our investment portfolio. Interest income increased during the three and six months ended June 30, 2025 as compared to the same periods in 2024 due to an increase in our investment portfolio, partially offset by a slight decline in interest rates.
Previous wording
Interest expense consists primarily of interest expense associated with long-term software licenses. Interest expense remained flat for the three months ended March 31, 2025 as compared to the same period in 2024.
Current wording
Interest expense consists primarily of interest expense associated with long-term software licenses. Interest expense remained flat for the three and six months ended June 30, 2025 as compared to the same periods in 2024.
Previous wording
Our provisions for income taxes for the three months ended March 31, 2025 and 2024 were primarily driven by the statutory tax expense for domestic and foreign jurisdictions for 2025 and 2024, respectively, offset by tax benefits from excess stock-based compensation deductions. Our provisions for income taxes for the three months ended March 31, 2025 and 2024 reflected effective tax rates of 10.8% and 4.2%, respectively, and differed from the U.S. statutory rate primarily due to tax benefits from excess stock-based compensation deductions.
Current wording
Our provision for income taxes for the three and six months ended June 30, 2025 was primarily driven by the statutory tax expense for domestic and foreign jurisdictions for 2025, offset by tax benefits from excess stock-based compensation deductions. Our provision for income taxes for the three and six months ended June 30, 2025 reflected effective tax rates of 14.6% and 12.7%, respectively. Our provision for income taxes for the three and six months ended June 30, 2024 was primarily driven by the statutory tax expense for domestic and foreign jurisdictions for 2024, offset by tax benefits from excess stock-based compensation deductions. Our provision for income taxes for the three and six months ended June 30, 2024 reflected effective tax rates of 18.7% and 12.4%, respectively. For both 2025 and 2024, our effective tax rates differed from the U.S. statutory rate primarily due to tax benefits from excess stock-based compensation deductions.
Previous wording
During the three months ended March 31, 2025 and 2024, we paid foreign withholding taxes of $5.6 million and $5.1 million, respectively.
Current wording
During the three months ended June 30, 2025 and 2024, we paid foreign withholding taxes of $5.4 million and $5.3 million, respectively. During the six months ended June 30, 2025 and 2024, we paid foreign withholding taxes of $11.0 million and $10.3 million, respectively.
Previous wording
We currently anticipate that existing cash, cash equivalents and marketable securities balances and cash flows from operations will be adequate to meet our cash needs for at least the next 12 months. Additionally, the majorityof our cash and cash equivalents are in the United States. Our cash needs for the three months ended March 31, 2025, were funded primarily from cash collected from our customers.
Current wording
We currently anticipate that existing cash, cash equivalents and marketable securities balances and cash flows from operations will be adequate to meet our cash needs for at least the next 12 months. Additionally, the majority of our cash and cash equivalents are in the United States. Our cash needs for the six months ended June 30, 2025, were funded primarily from cash collected from our customers.
Previous wording
To provide us with more flexibility in returning capital to our stockholders, on October 29, 2020, our Board approved a share repurchase program authorizing the repurchase of up to an aggregate of 20.0 million shares (the “2020 Repurchase Program”). Share repurchases under the 2020 Repurchase Program may be made through the open market, established plans or privately negotiated transactions in accordance with all applicable securities laws, rules and regulations. There is no expiration date applicable to the 2020 Repurchase Program. During the three months ended March 31, 2025, we repurchased shares of our common stock under the 2020 Repurchase Program as discussed in the “Share Repurchase Program” section below.
Current wording
To provide us with more flexibility in returning capital to our stockholders, on October 29, 2020, our Board approved a share repurchase program authorizing the repurchase of up to an aggregate of 20.0 million shares (the “2020 Repurchase Program”). Share repurchases under the 2020 Repurchase Program may be made through the open market, established plans or privately negotiated transactions in accordance with all applicable securities laws, rules and regulations. There is no expiration date applicable to the 2020 Repurchase Program. During the six months ended June 30, 2025, we repurchased shares of our common stock under the 2020 Repurchase Program as discussed in the “Share Repurchase Program” section below.
Previous wording
Cash provided by operating activities of $77.4 million for the three months ended March 31, 2025, was primarily attributable to the cash generated from product sales, customer licensing and engineering services fees. Changes in operating assets and liabilities for the three months ended March 31, 2025 primarily included an increase in income taxes payable and decreases in accounts receivable and unbilled receivables, offset by a decrease in accrued salaries and benefits and other accrued liabilities, as well as an increase in income taxes receivable.
Current wording
Cash provided by operating activities of $171.8 million for the six months ended June 30, 2025, was primarily attributable to the cash generated from product sales, customer licensing and engineering services fees. Changes in operating assets and liabilities for the six months ended June 30, 2025 primarily included decreases in accounts receivable and inventories, and an increase in income taxes payable, offset by an increase in income taxes receivable, and decreases in accounts payable, accrued salaries and benefits and other current liabilities.
Previous wording
Cash provided by operating activities of $39.1 million for the three months ended March 31, 2024, was primarily attributable to the cash generated from customer licensing, product sales and engineering services fees. Changes in operating assets and liabilities for the three months ended March 31, 2024 primarily included decreases in unbilled receivables and prepaids and other current assets, as well as increases in income taxes payable and accounts payable, offset by increases in inventories, accounts receivable, and decreases in accrued salaries and benefits and other liabilities.
Current wording
Cash provided by operating activities of $109.5 million for the six months ended June 30, 2024, was primarily attributable to the cash generated from customer licensing, product sales and engineering services fees. Changes in operating assets and liabilities for the six months ended June 30, 2024 primarily included decreases in unbilled receivables, prepaids and other current assets and increases in accounts payable and income taxes payable, offset by increases in inventories and income taxes receivable, as well as decreases in other current and long-term liabilities and accrued salaries and benefits.
Previous wording
Cash used in investing activities of $8.4 million for the three months ended March 31, 2025, consisted of purchases of available-for-sale marketable securities of $91.2 million and $7.9 million paid to acquire property and equipment, offset by proceeds from the maturities of available-for-sale marketable securities of $90.7 million.
Current wording
Cash used in investing activities of $139.6 million for the six months ended June 30, 2025, consisted of purchases of available-for-sale marketable securities of $303.8 million and $14.4 million paid to acquire property and equipment, offset by proceeds from the maturities of available-for-sale marketable securities of $178.6 million.
Previous wording
Cash provided by investing activities of $71.4 million for the three months ended March 31, 2024, consisted of proceeds from the maturities and sales of available-for-sale marketable securities of $100.7 million and $63.4 million, respectively, and net proceeds from the sale of a non-marketable equity security of $22.8 million, offset by purchases of available-for-sale marketable securities of $112.5 million and $3.0 million paid to acquire property and equipment.
Current wording
Cash provided by investing activities of $30.8 million for the six months ended June 30, 2024, consisted of proceeds from the maturities and sales of available-for-sale marketable securities of $160.8 million and $85.7 million, respectively, and net proceeds from the sale of a non-marketable equity security of $22.8 million, offset by purchases of available-for-sale marketable securities of $224.2 million, and $14.3 million paid to acquire property and equipment.
Previous wording
Cash used in financing activities of $36.8 million for the three months ended March 31, 2025, was primarily due to $30.8 million in payments of taxes on restricted stock units, $3.8 million paid under installment payment arrangements to acquire fixed assets, and an aggregate payment of $2.2 million as part of our share repurchases in the first quarter of 2025.
Current wording
Cash used in financing activities of $44.8 million for the six months ended June 30, 2025, was primarily due to $35.0 million in payments of taxes on restricted stock units, $7.7 million paid under installment payment arrangements to acquire fixed assets and an aggregate payment of $5.8 million as part of our share repurchases in 2025, offset by $3.7 million in proceeds from the issuance of common stock under equity incentive plans.
Previous wording
Cash used in financing activities of $92.3 million for the three months ended March 31, 2024, was primarily due to an aggregate payment of $50.8 million as part of our share repurchases in the first quarter of 2024 (includes $0.2 million in fees related to the ASR program), $37.7 million in payments of taxes on restricted stock units and $4.0 million paid under installment payment arrangements to acquire fixed assets.
Current wording
Cash used in financing activities of $110.1 million for the six months ended June 30, 2024, was primarily due to an aggregate payment of $63.3 million as part of our share repurchases (includes $0.2 million in fees related to an ASR program), $38.6 million in payments of taxes on restricted stock units, $9.0 million paid under installment payment arrangements to acquire fixed assets, offset by $3.4 million in proceeds from the issuance of common stock under equity incentive plans.
Previous wording
(1) The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $138.3 million, including $23.2 million recorded as a reduction of long-term deferred tax assets and $115.1 million in long-term income taxes payable as of March 31, 2025. As noted in Note 13, “Income Taxes,” of Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q, although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, we cannot reasonably estimate the timing of the outcome at this time.
Current wording
The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $143.8 million, including $23.6 million recorded as a reduction of long-term deferred tax assets and $120.2 million in long-term income taxes payable as of June 30, 2025. As noted in Note 13, “Income Taxes,” of Notes to Unaudited
Previous wording
In February 2025, we entered into a share repurchase plan (the “Buying Plan”) with Mizuho Securities USA, LLC (“Mizuho”). The Buying Plan was part of the 2020 Repurchase Program. Under the Buying Plan, Mizuho commenced purchases during the period from February 6, 2025 to March 31, 2025, with a provision to terminate sooner pursuant to the Buying Plan. The execution of share repurchases was dependent on our stock price reaching certain levels. During the three months ended March 31, 2025, we repurchased an immaterial amount of shares as part of the Buying Plan, which were retired and recorded as a reduction to stockholders’ equity.
Current wording
During the six months ended June 30, 2025, we entered into share repurchase plans (the “Buying Plans”) with Mizuho Securities USA, LLC (“Mizuho”), pursuant to which Mizuho will repurchase shares of our common stock during the periods from February 6, 2025 through March 31, 2025 and from May 1, 2025 through September 30, 2025, respectively, with provisions to terminate sooner. The Buying Plans were part of the 2020 Repurchase Program. The execution of share repurchases was dependent on our stock price reaching certain levels. During the six months ended June 30, 2025, we repurchased 0.1 million shares for approximately $5.8 million as part of the Buying Plans, which were retired and recorded as a reduction to stockholders’ equity.
Previous wording
During the three months ended March 31, 2024, we repurchased approximately 0.8 million shares for approximately $50.8 million under the 2020 Repurchase Program, which were retired and recorded as a reduction to stockholders’ equity.
Current wording
During the six months ended June 30, 2024, we repurchased approximately 1.0 million shares for approximately $63.4 million under the 2020 Repurchase Program, which were retired and recorded as a reduction to stockholders’ equity.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
Condensed Consolidated Financial Statements of this Form 10-Q, although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, we cannot reasonably estimate the timing of the outcome at this time.