RAMBUS INC
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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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, 2026 · Filed Jul 28, 2026
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 2026-03-31; filed 2026-04-28.
0001193125-26-186931
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001193125-26-321000
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 99 previous paragraphs and 105 current paragraphs.
57 unchanged; 36 reworded; 11 added; 6 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 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 (11)
Current report
Revenue of $207.4 million;
Current report
Operating expenses of $92.7 million;
Current report
Net cash provided by operating activities of $61.2 million.
Current report
Total research and development expenses for the three months ended June 30, 2026 increased approximately $4.8 million as compared to the same period in 2025. The increase was primarily driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $2.2 million and an increase in stock-based compensation expenses of $0.7 million. In addition, prototyping costs and depreciation expense increased by $1.2 million and $0.6 million, respectively. Total research and development expenses for the six months ended June 30, 2026 increased approximately $12.3 million as compared to the same period in 2025. The increase was primarily driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $6.2 million and an increase in stock-based compensation expenses of $1.4 million. In addition, prototyping costs and depreciation expense increased by $2.6 million and $1.6 million, respectively.
Current report
Total sales, general and administrative expenses for the three months ended June 30, 2026 increased approximately $10.2 million as compared to the same period in 2025, due to increases in professional fees of $7.0 million, payroll-related expenses of $1.5 million and stock-based compensation expenses of $1.0 million. Total sales, general and administrative expenses for the six months ended June 30, 2026 increased approximately $13.7 million as compared to the same period in 2025, due to increases in professional fees of $8.8 million, payroll-related expenses of $3.6 million and recruiting expenses of $0.6 million.
Current report
Total research and development expenses for the three months ended June 30, 2026 increased approximately $4.8 million as compared to the same period in 2025. The increase was primarily driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $2.2 million and an increase in stock-based compensation expenses of $0.7 million. In addition, prototyping costs and depreciation expense increased by $1.2 million and $0.6 million, respectively.
Current report
Total research and development expenses for the six months ended June 30, 2026 increased approximately $12.3 million as compared to the same period in 2025. The increase was primarily driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $6.2 million and an increase in stock-based compensation expenses of $1.4 million. In addition, prototyping costs and depreciation expense increased by $2.6 million and $1.6 million, respectively.
Current report
Total sales, general and administrative expenses for the three months ended June 30, 2026 increased approximately $10.2 million as compared to the same period in 2025, due to increases in professional fees of $7.0 million, payroll-related expenses of $1.5 million and stock-based compensation expenses of $1.0 million.
Current report
Restructuring charges
Current report
In the second quarter of 2026, we initiated a restructuring program to reduce overall operating expenses and improve future profitability. In connection with the program, we recorded approximately $3.3 million of restructuring charges related to workforce reduction. The restructuring program was substantially completed in the second quarter of 2026.
Current report
During the six months ended June 30, 2025, we did not initiate any restructuring programs.
Removed paragraphs (6)
Previous report
Revenue of $180.2 million;
Previous report
Operating expenses of $81.9 million;
Previous report
Net cash provided by operating activities of $83.2 million.
Previous report
Total research and development expenses for the three months ended March 31, 2026 increased approximately $7.6 million as compared to the same period in 2025. The increase was driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $4.1 million and an increase in stock-based compensation expenses of $0.8 million. In addition, prototyping costs and depreciation expense increased by $1.4 million and $1.0 million, respectively.
Previous report
Total research and development expenses for the three months ended March 31, 2026 increased approximately $7.6 million as compared to the same period in 2025. The increase was driven by continued investment in our research and development initiatives and primarily reflected higher headcount-related expenses of $4.1 million and an increase in stock-based compensation expenses of $0.8 million. In addition, prototyping costs and depreciation expense increased by $1.4 million and $1.0 million, respectively.
Previous report
Total sales, general and administrative expenses for the three months ended March 31, 2026 increased approximately $3.7 million as compared to the same period in 2025, primarily due to increases in payroll-related expenses and legal expenses of $2.1 million and $1.6 million, respectively, offset by a decrease in stock-based compensation expenses of $0.6 million.
Reworded paragraphs (36)
Previous wording
Our continued execution delivered strong results during the first quarter of 2026, driven primarily by continued demand for our memory interface chips.
Current wording
We delivered strong second quarter 2026 results, driven by continued demand for our memory interface chips, momentum in Silicon IP and stable royalties revenue.
Previous wording
Key first quarter 2026 financial results included:
Current wording
Key second quarter 2026 financial results included:
Previous wording
Diluted net income per share of $0.55; and
Current wording
Diluted net income per share of $0.61; and
Previous wording
We achieved quarterly product revenue of $88.0 million in the first quarter of 2026, which increased by approximately 15% as compared to the same period in 2025, reflecting strong execution in our memory and interface portfolio.
Current wording
We achieved quarterly product revenue of $99.2 million in the second quarter of 2026, which increased by approximately 22% as compared to the same period in 2025, reflecting strong execution in our memory and interface portfolio. We also expanded our product and IP offerings for next-generation AI platforms, including the LPDDR5X SOCAMM2 server module chipset.
Previous wording
Our consolidated revenue is comprised of product revenue, royalties and contract and other revenue.
Current wording
Our consolidated revenue is comprised of product revenue, royalties revenue and contract and other revenue.
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 and client memory modules. Product revenue accounted for 49% of our consolidated revenue for the three months ended March 31, 2026, as compared to 46% for the three months ended March 31, 2025.
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 and client memory modules. Product revenue accounted for 48% of our consolidated revenue for both the three and six months ended June 30, 2026, as compared to 47% for both the three and six months ended June 30, 2025.
Previous wording
Royalties revenue is derived from our patent licenses, through which we provide our customers certain rights to our broad worldwide portfolio of patented inventions. 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 39% of our consolidated revenue for the three months ended March 31, 2026, as compared to 44% for the three months ended March 31, 2025.
Current wording
Royalties revenue is derived in part from our patent licenses and in part from our Silicon IP technology licenses. Our licenses enable our customers to use a portion of our intellectual property 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. Our Silicon IP technology licensees include a broad set of companies, ranging from well-established to leading startup semiconductor companies. The vast majority of our intellectual property originates 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% of our consolidated revenue for both the three and six months ended June 30, 2026, as compared to 40% and 42% for the three and six months ended June 30, 2025, 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 12% of our consolidated revenue for the three months ended March 31, 2026, as compared to 10% of our consolidated revenue for the three months ended March 31, 2025.
Current wording
Contract and other revenue consists primarily of Silicon IP technology development projects related to 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 12% of our consolidated revenue for both the three and six months ended June 30, 2026, as compared to 13% and 11% for the three and six months ended June 30, 2025, respectively.
Previous wording
Cost of product revenue mainly includes costs attributable to the sale of memory interface chip products. Cost of product revenue increased approximately $3.1 million for the three months ended March 31, 2026 as compared to the same period in 2025, 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 interface chip products. Cost of product revenue increased approximately $7.2 million and $10.3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. 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 increased $0.5 million for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to higher engineering services associated with the contracts.
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 increased $0.2 million and $0.7 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to higher engineering services associated with the contracts.
Previous wording
As of March 31, 2026, our semiconductor, security and other technologies are covered by 2,029 U.S. and foreign patents. Additionally, we have 481 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, 2026, our semiconductor, security and other technologies are covered by 2,010 U.S. and foreign patents. Additionally, we have 476 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 70% and 71% of our consolidated revenue for the three months ended March 31, 2026 and 2025, 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 60% and 64% of our consolidated revenue for the three and six months ended June 30, 2026, respectively, as compared to 68% and 69% for the three and six months ended June 30, 2025, 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 88% and 84% of our consolidated revenue for the three months ended March 31, 2026 and 2025, respectively. 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 82% and 84% of our consolidated revenue for the three and six months ended June 30, 2026, respectively, as compared to 80% and 82% for the three and six months ended June 30, 2025, respectively. 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 7, “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 $11.7 million for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was due to higher sales of memory interface chips, as well as contributions from new products.
Current wording
Product revenue consists primarily of revenue from the sale of memory products. Product revenue increased approximately $17.9 million and $29.6 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were due to higher sales of memory interface chips, as well as contributions from new products.
Previous wording
Royalties revenue, which includes patent and technology license royalties, decreased approximately $4.4 million for the three months ended March 31, 2026 as compared to the same period in 2025. The decrease 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 $15.6 million and $11.3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to the timing and structure of license agreements and renewals.
Previous wording
We are continuously in negotiations for licenses with prospective customers. We expect royalties revenue will continue to vary from period to period based on our success in adding new customers, renewing or extending existing agreements, as well as the level of variation in our customers’ reported shipment volumes, sales price and product mix, offset in part by the proportion of customer payments that are fixed or hybrid in nature.
Current wording
We are continuously in negotiations for licenses with prospective customers. We expect that royalties revenue will continue to vary from period to period based on our success in adding new customers, renewing or extending existing agreements, as well as the level of variation in our customers’ reported shipment volumes, sales price and product mix, offset in part by the proportion of customer payments that are fixed or hybrid in nature.
Previous wording
Contract and other revenue consists of revenue from technology development projects. Contract and other revenue increased approximately $6.2 million for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was due to higher 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 $1.7 million and $7.8 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were due to higher revenue associated with our Silicon IP offerings.
Previous wording
Cost of product revenue mainly includes costs attributable to the sale of memory interface chip products. Cost of product revenue increased approximately $3.1 million for the three months ended March 31, 2026 as compared to the same period in 2025. 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 interface chip products. Cost of product revenue increased approximately $7.2 million and $10.3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. 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 increased $0.5 million for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to higher engineering services associated with the contracts.
Current wording
Cost of contract and other revenue reflects the portion of the total engineering costs that is specifically devoted to individual customer development and support services. Cost of contract and other revenue increased $0.2 million and $0.7 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to higher engineering services associated with the contracts.
Previous wording
Total sales, general and administrative expenses for the three months ended March 31, 2026 increased approximately $3.7 million as compared to the same period in 2025, primarily due to increases in payroll-related expenses and legal expenses of $2.1 million and $1.6 million, respectively, offset by a decrease in stock-based compensation expenses of $0.6 million.
Current wording
Total sales, general and administrative expenses for the six months ended June 30, 2026 increased approximately $13.7 million as compared to the same period in 2025, due to increases in professional fees of $8.8 million, payroll-related expenses of $3.6 million and recruiting expenses of $0.6 million.
Previous wording
Amortization expense is related to various acquired IP. Amortization of acquired intangible assets recognized in cost of revenue was $1.7 million for each of the three months ended March 31, 2026 and 2025. No amortization of acquired intangible assets was recognized in operating expenses for either period.
Current wording
Amortization expense related to various acquired IP is included in cost of revenue. Amortization of acquired intangible assets was $1.6 million and $3.3 million for the three and six months ended June 30, 2026, respectively. Amortization of acquired intangible assets was $1.7 million and $3.4 million for the three and six months ended June 30, 2025, respectively.
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, 2026 and 2025, interest income and other income (expense), net, consisted primarily of interest income generated from our investment portfolio. Interest income increased during the three months ended March 31, 2026 as compared to the same period in 2025 due to an increase in our investment portfolio, partially offset by a decline in interest rates on our investments.
Current wording
Interest income and other income (expense), net, primarily includes interest income from our investment portfolio and from any gains or losses from the remeasurement of our monetary assets or liabilities denominated in foreign currencies. For the three and six months ended June 30, 2026 and 2025, interest income and other income (expense), net, consisted primarily of interest income generated from our investment portfolio. Interest income increased during the three and six months ended June 30, 2026 as compared to the same periods in 2025 due to the growth of our investment portfolio, partially offset by a decline in interest rates on our investments.
Previous wording
Interest expense is primarily associated with long-term software licenses. Interest expense remained relatively flat for the three months ended March 31, 2026 as compared to the same period in 2025.
Current wording
Interest expense is primarily associated with long-term software licenses. Interest expense remained relatively flat for the three and six months ended June 30, 2026 as compared to the same periods in 2025.
Previous wording
Our provisions for income taxes for the three months ended March 31, 2026 and 2025 were primarily driven by the statutory tax expense for domestic and foreign jurisdictions for 2026 and 2025, respectively, offset by tax benefits from excess stock-based compensation deductions. Our provision for income taxes for the three months ended March 31, 2026 and 2025 reflected effective tax rates of 12.8% and 10.8%, respectively, and differed from the U.S. statutory rate primarily due to tax benefits from excess stock-based compensation deductions.
Current wording
Our provisions for income taxes for the three and six months ended June 30, 2026 were primarily driven by the statutory tax expense for domestic and foreign jurisdictions for 2026, offset by tax benefits from excess stock-based compensation deductions. Our provision for income taxes for the three and six months ended June 30, 2026 reflected effective tax rates of 15.0% and 13.9%, respectively. Our provisions for income taxes for the three and six months ended June 30, 2025 were 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. For both 2026 and 2025, 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, 2026 and 2025, we paid foreign withholding taxes of $5.5 million and $5.6 million, respectively.
Current wording
During both the three months ended June 30, 2026 and 2025, we paid foreign withholding taxes of $5.4 million. During the six months ended June 30, 2026 and 2025, we paid foreign withholding taxes of $10.9 million and $11.0 million, respectively.
Previous wording
In the third quarter of 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). 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, there was an increase to our income tax expense in 2025, primarily related to changes in the taxation of profits derived from foreign operations and, more specifically, the foreign-derived intangible income deduction. The impact of OBBBA also increased our income tax expense and effective tax rate for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.
Current wording
In the third quarter of 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). 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, there was an increase to our income tax expense in 2025, primarily related to changes in the taxation of profits derived from foreign operations and, more specifically, the foreign-derived intangible income deduction. The impact of OBBBA also increased our income tax expense and effective tax rate for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.
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 majority of our cash and cash equivalents are in the United States. Our cash needs for the three months ended March 31, 2026, 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, 2026 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, 2026, 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, 2026, 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 $83.2 million for the three months ended March 31, 2026 was primarily attributable to cash generated from product sales, customer licensing and engineering services fees. Changes in operating assets and liabilities for the three months ended March 31, 2026 primarily included a decrease in accounts receivable, offset by an increase in inventories and decreases in accrued salaries and benefits and other liabilities, and deferred revenue.
Current wording
Cash provided by operating activities of $144.5 million for the six months ended June 30, 2026, was primarily attributable to cash generated from product sales, customer licensing and engineering services fees. Changes in operating assets and liabilities for the six months ended June 30, 2026 primarily included a decrease in unbilled receivables, and an increase in accounts payable, offset by increases in inventories, accounts receivable, as well as a decrease in deferred revenue.
Previous wording
Cash provided by operating activities of $77.4 million for the three months ended March 31, 2025, was primarily attributable to 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 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 used in investing activities of $85.3 million for the three months ended March 31, 2026, consisted of purchases of available-for-sale marketable securities of $255.8 million and $11.6 million paid to acquire property and equipment, offset by proceeds from the maturities of available-for-sale marketable securities of $182.1 million.
Current wording
Cash used in investing activities of $180.3 million for the six months ended June 30, 2026, consisted of purchases of available-for-sale marketable securities of $488.9 million and $20.7 million paid to acquire property and equipment, offset by proceeds from maturities of available-for-sale marketable securities of $329.3 million.
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 maturities of available-for-sale marketable securities of $178.6 million.
Previous wording
Cash used in financing activities of $46.3 million for the three months ended March 31, 2026, was primarily due to $38.4 million in payments of taxes related to net share settlement of equity awards, $5.3 million paid under installment payment arrangements to acquire fixed assets and an aggregate payment of $2.6 million as part of our share repurchases in the first quarter of 2026.
Current wording
Cash used in financing activities of $58.9 million for the six months ended June 30, 2026, was primarily due to $52.7 million in payments of taxes related to net share settlement of equity awards, $8.5 million paid under installment payment arrangements to acquire fixed assets and $3.0 million of share repurchases, offset by $5.2 million in proceeds from the issuance of common stock under equity incentive plans.
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 related to net share settlement of equity awards, $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 related to net share settlement of equity awards, $7.7 million paid under installment payment arrangements to acquire fixed assets and $5.8 million of share repurchases, offset by $3.7 million in proceeds from the issuance of common stock under equity incentive plans.
Previous wording
The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $26.0 million, including $24.7 million recorded as a reduction of long-term deferred tax assets and $1.3 million in long-term income taxes payable as of March 31, 2026. 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 $26.2 million, including $25.1 million recorded as a reduction of long-term deferred tax assets and $1.1 million in long-term income taxes payable as of June 30, 2026. As noted in Note 14, “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.
Previous wording
During the three months ended March 31, 2026, we continued to operate under a share repurchase plan with Mizuho Securities USA, LLC, which was entered into in 2025 and expired on March 31, 2026. The execution of share repurchases was dependent on our stock price reaching certain levels. During the three months ended March 31, 2026 and 2025, we repurchased an immaterial amount of shares 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, 2026, we operated under two share repurchase plans with Mizuho Securities USA, LLC (“Mizuho”). The first plan was entered into in 2025 and expired on March 31, 2026, and the second plan was entered into on May 29, 2026 and is scheduled to expire on September 30, 2026, with provisions to terminate sooner. The execution of share repurchases is dependent on our stock price reaching certain levels. During the six months ended June 30, 2026, we repurchased an immaterial number of shares under the 2020 Repurchase Program, which were retired and recorded as a reduction to stockholders’ equity.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we repurchased 0.1 million shares for approximately $5.8 million under the 2020 Repurchase Program, which were retired and recorded as a reduction to stockholders’ equity.