RAMBUS INC

1. Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of Rambus Inc. (“Rambus” or the “Company”) and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in the accompanying Unaudited Condensed Consolidated Financial Statements.

In the opinion of management, the Unaudited Condensed Consolidated Financial Statements include all adjustments (consisting only of normal recurring items and those items discussed in the notes) necessary to state fairly the financial position and results of operations for each interim period presented. Interim results are not necessarily indicative of results for a full year.

Financial Statement Preparation

The Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Certain information and note disclosures included in the financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted in these interim statements pursuant to such SEC rules and regulations. The information included in this Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and Notes thereto in Form 10-K for the year ended December 31, 2025.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.

Reclassifications

Certain prior-year balances were reclassified to conform to the current year’s presentation. None of these reclassifications had an impact on reported net income or cash flows for any of the periods presented.

Significant Accounting Policies

There were no material changes to Rambus’ significant accounting policies disclosed in Note 2, “Summary of Significant Accounting Policies,” of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

2. Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” This guidance provides public business entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. This ASU is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company adopted this guidance on January 1, 2026, on a prospective basis. Upon adoption, the Company elected the practical expedient to assume that current conditions as of the balance sheet date remain unchanged for the remaining life of current accounts receivable and current contract assets when estimating expected credit losses. The adoption didnot have a material impact on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-12, “Codification Improvements.” This guidance makes incremental clarifications and improvements to issues identified within various topics of the FASB Accounting Standards Codification. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual periods, with early adoption on an issue-by-issue basis permitted. The Company elected toearly adopt “Issue 10: Clarify Methods to Account for Treasury Stock Retirements” effective January 1, 2026, on a prospective basis. This issue clarifies the permissible methods of accounting for the excess of the repurchase price over par or stated value upon retirement of treasury shares. Refer to Note 13, “Stockholders’ Equity,” and the Condensed Consolidated Statements of Stockholders’ Equity for further information. The Company is currently evaluating the impact of the remaining issues within ASU No. 2025-12 on its consolidated financial statements and related disclosures.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”).” This guidance requires public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement expense caption, as applicable. The ASU also requires a qualitative description of the amounts remaining in expense captions that are not separately disaggregated quantitatively, as well as disclosure of the total amount of selling expenses and, in annual reporting periods, the entity’s definition of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements,” which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its interim consolidated financial statements and related disclosures.

3. Revenue Recognition

Contract Balances

The contract assets are primarily related to the Company’s fixed fee intellectual property (“IP”) licensing arrangements and rights to consideration for performance obligations delivered but not billed as of September 30, 2026.

The Company’s contract balances were as follows:

During the nine months ended September 30, 2026, the Company recognized$25.9 million of revenue that was included in deferred revenue as of December 31, 2025. During the nine months ended September 30, 2025, the Company recognized$18.5 million of revenue that was included in deferred revenue as of December 31, 2024.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately$42.9 million as of September 30, 2026, which the Company primarily expects to recognize over the nexttwo years.

4. Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of restricted stock units, incremental common shares issuable upon exercise of stock options and shares issuable under the employee stock purchase plan. The dilutive effect of outstanding shares is reflected in diluted earnings per share using the treasury stock method, as applicable. This method includes consideration of the amounts to be paid by the employees and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

The following table sets forth the computation of basic and diluted net income per share:

5. Inventories

Inventories(1) consisted of the following:

(1)

As of September 30, 2026 and December 31, 2025, the Company had inventory reserve balances of approximately$4.4 million and$8.1 million included in the Unaudited Condensed Consolidated Balance Sheets, respectively.

6. Intangible Assets, Net

The components of the Company’s intangible assets as of September 30, 2026 and December 31, 2025 were as follows:

Amortization expense for intangible assets for the three and nine months ended September 30, 2026 was$1.2 million and$4.5 million, respectively. Amortization expense for intangible assets for the three and nine months ended September 30, 2025 was$1.7 million and$5.2 million, respectively.

The estimated future amortization of intangible assets as of September 30, 2026 was as follows (in thousands):

7. Segment Reporting, Concentrations of Risk and Disaggregated Revenue

Segment Reporting

The Company has determined its Chief Executive Officer to be the Chief Operating Decision Maker (“CODM”). The CODM reviews financial information presented on a consolidated basis and uses net income to assess segment performance, allocate resources and manage the business. On this basis, the Company has determined that it has asingle operating and reportable segment. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for thethree and nine months ended September 30, 2026 and 2025, respectively, were as follows:

(1)

Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.

(2)

Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.

(3)

Excludes stock-based compensation expenses, facility closure costs and retention bonus expense related to acquisitions.

(4)

The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.

(5)

The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s ongoing operating results.

(6)

Includes restructuring charges, abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the three and nine months ended September 30, 2026 and 2025.

(1)

Includes primarily software tools, software licenses and prototyping costs.

The measure of segment assets is reported on the Company’s Unaudited Condensed Consolidated Balance Sheets as total consolidated assets.

Concentrations of Risk

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of September 30, 2026 and December 31, 2025 were as follows:

Revenue from the Company’s major customers representing 10% or more of total revenue for thethree and nine months ended September 30, 2026 and 2025 were as follows:

• Customer accounted for less than 10% of total revenue in the period.

Disaggregated Revenue

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:

8. Marketable Securities

Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, non-U.S. government-sponsored obligations, corporate bonds, commercial paper and notes, time deposits and money market funds that mature within three years.

All cash equivalents and marketable securities are classified as available-for-sale. Total cash, cash equivalents and marketable securities are summarized as follows:

Available-for-sale securities are reported at fair value on the balance sheets and classified along with cash as follows:

The Company continues to invest in highly rated, liquid debt securities. The Company holds all of its marketable securities as available-for-sale, marks them to market, and regularly reviews its portfolio to ensure adherence to its investment policy and to monitor individual investments for risk analysis, proper valuation, and impairment.

The estimated fair value and gross unrealized losses of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position as of September 30, 2026 and December 31, 2025 were as follows:

The gross unrealized losses as of September 30, 2026 and December 31, 2025 were not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized losses can be primarily attributed to a combination of market conditions, as well as the demand for and duration of the U.S. government-sponsored obligations and corporate bonds, commercial paper and notes. The Company reasonably believes that the sale of these investments is unlikely and that it can recover the amortized cost of these investments. The Company has found no evidence of impairment due to credit losses in its portfolio. Therefore, these unrealized losses were recorded in other comprehensive income (loss). The Company cannot provide any assurance that its portfolio of cash, cash equivalents and marketable securities will not be impacted by adverse conditions in the financial markets, which may require the Company in the future to record an impairment charge for credit losses which could adversely impact its financial results.

The contractual maturities of cash equivalents (excluding money market funds which have no maturity) and marketable securities are summarized as follows:

Refer to Note 9, “Fair Value of Financial Instruments,” for a discussion regarding the fair value of the Company’s cash equivalents and marketable securities.

9. Fair Value of Financial Instruments

The following table presents the financial instruments that are carried at fair value and summarizes their valuation by the respective pricing levels as of September 30, 2026 and December 31, 2025:

The Company monitors its investments for impairment and records appropriate reductions in carrying value when necessary. During the nine months ended September 30, 2026 and 2025, the Company recorded no allowance for credit losses on its investments.

During the nine months ended September 30, 2026 and 2025, there were no transfers of financial instruments between categories of fair value.

10. Leases

The Company leases office space, domestically and internationally, under operating leases. The Company’s leases have remaining lease terms generally betweenone year andsix years. Oper ating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and long-term operating lease liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets. The Company does not have any finance leases.

The table below reconciles the undiscounted cash flows for the first five years and the total of the remaining years to the operating lease liabilities recorded in the Unaudited Condensed Consolidated Balance Sheet as of September 30, 2026 (in thousands):

As of September 30, 2026, the weighted-average remaining lease term for the Company’s operating leases was 4.0 years and the weighted-average discount rate used to determine the present value of the Company’s operating leases was 7.5%.

Operating lease costs included in research and development and sales, general and administrative costs in the Unaudited Condensed Consolidated Statements of Income were$1.5 million for both the three months ended September 30, 2026 and 2025. Operating lease costs included in research and development and sales, general and administrative costs in the Unaudited Condensed Consolidated Statements of Income were$4.5 million and$4.4 million for the nine months ended September 30, 2026 and 2025, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was$5.5 million and$5.4 million for the nine months ended September 30, 2026 and 2025, respectively.

11. Commitments and Contingencies

As of September 30, 2026, the Company’s material contractual obligations were as follows:

(1)

The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately$26.7 million, including$25.6 million recorded as a reduction of long-term deferred tax assets and$1.1 million in long-term income taxes payable as of September 30, 2026.

(2)

For the Company’s lease commitments as of September 30, 2026, refer to Note 10, “Leases.”

(3)

The Company has commitments with various software vendors for agreements generally having terms longer thanone year.

From time to time, the Company indemnifies certain customers as a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright, or other IP infringement or any other claim by any third party arising as a result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification that the Company could be required to make under these agreements to the amount of fees received by the Company; however, this may not always be possible. The fair value of the liability was not material as of September 30, 2026 and December 31, 2025.

12. Equity Incentive Plans and Stock-Based Compensation

A summary of shares available for grant under the Company’s plans is as follows:

(1)

For purposes of determining the number of shares available for grant under the 2015 Equity Incentive Plan against the maximum number of shares authorized, each restricted stock unit granted prior to April 27, 2023 reduces the number of shares available for grant by 1.5 shares and each restricted stock unit forfeited increases shares available for grant by 1.5 shares. Each restricted stock unit granted on or after April 27, 2023 reduces the number of shares available for grant by 1.0 share and each restricted stock unit forfeited increases shares available for grant by 1.0 share.

(2)

Amount includes approximately 0.1 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in the second quarter of 2026 and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.

Employee Stock Purchase Plan

Under the 2015 Employee Stock Purchase Plan (“2015 ESPP”), the Company issued 57,640 shares at a price of$89.90 and 91,827 shares at a price of$40.76 per share during the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, approximately 2.0 million shares under the 2015 ESPP remained available for issuance.

Stock-Based Compensation

For the nine months ended September 30, 2026 and 2025, the Company maintained stock plans covering a broad range of potential equity grants, including stock options, nonvested equity stock and equity stock units and performance-based instruments. In addition, the Company sponsors the 2015 ESPP, whereby eligible employees are entitled to purchase common stock semi-annually, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates.

Stock-based compensation expense recorded in the Unaudited Condensed Consolidated Statements of Income was as follows:

Nonvested Equity Stock and Stock Units

The Company grants nonvested equity stock units to officers, employees and directors. These awards have a service condition, generally a service period offour years, except in the case of grants to directors, for which the service period isone year. The Company also grants performance unit awards to certain company executive officers with vesting subject to the achievement of certain performance and/or market conditions. The ultimate number of performance units that can be earned can range from 0% to 200% of target depending on performance relative to target over the applicable period. The shares earned will vest on the third or fourth anniversary of the date of grant. The Company’s shares available for grant have been reduced to reflect the shares that could be earned at the maximum payout target.

Unrecognized stock-based compensation related to all nonvested equity stock grants, net of estimated forfeitures, was approximately$125.4 million as of September 30, 2026. This amount is expected to be recognized over a weighted-average period of 2.3 years.

The following table reflects the activity related to nonvested equity stock and stock units for thenine months ended September 30, 2026:

13. Stockholders’ Equity

On October 29, 2020, the Company’s board of directors (the “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 nine months ended September 30, 2026, the Company repurchased shares of its common stock under multiple repurchase arrangements as part of the 2020 Repurchase Program, including a$100.0 million accelerated share repurchase program and two share repurchase plans. The Company repurchased approximately 1.5 million shares for$138.9 million during the nine-month period, of which approximately 1.4 million shares for$135.9 million were repurchased during the three months ended September 30, 2026. These amounts include taxes and fees. All repurchased shares were retired and recorded as a reduction to stockholders’ equity.

During the nine months ended September 30, 2025, the Company 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.

As of September 30, 2026, there remained an outstanding authorization to repurchase approximately 4.1 million shares of the Company’s outstanding common stock under the 2020 Repurchase Program.

The Company records share repurchases as a reduction to stockholders' equity. Effective January 1, 2026, upon adoption of ASU No. 2025-12, Issue 10, the Company records the excess of the repurchase price over par or stated value of the repurchased shares entirely as a deduction from additional paid-in capital, provided that additional paid-in capital does not become negative. See Note 2, "Recent Accounting Pronouncements," for further information.

On September 10, 2026, the Company entered into a new repurchase plan. The plan became effective on October 1, 2026, and expires on September 30, 2027, with provisions to terminate sooner.

14. Income Taxes

The Company recorded a provision for income taxes of$16.0 million and$20.9 million for the three months ended September 30, 2026 and 2025, respectively, and a provision for income taxes of$36.6 million and$38.1 million for thenine months ended September 30, 2026 and 2025, respectively. The provisions for income taxes for the three and nine months ended September 30, 2026 and 2025 were primarily driven by the statutory tax expense for domestic and foreign jurisdictions for the respective fiscal years, offset by tax benefits from excess stock-based compensation deductions.

During the three months ended September 30, 2026 and 2025, the Company paid foreign withholding taxes of$6.1 million and$5.1 million, respectively. During the nine months ended September 30, 2026 and 2025, the Company paid foreign withholding taxes of$17.0 million and$16.1 million, respectively.

As of December 31, 2025, the Company had$108.0 million of unrecognized tax benefits, before interest accrual, including$24.3 million recorded as a reduction of long-term deferred tax assets,$82.7 million recorded as a reduction of other assets associated with refundable withholding taxes previously withheld from licensees in South Korea, and$1.0 million recorded to long-term income taxes payable.

As of September 30, 2026, the Company had approximately$26.4 million of unrecognized tax benefits, before interest accrual, including$25.6 million recorded as a reduction of long-term deferred tax assets, and$0.8 million recorded to long-term income taxes payable. In the third quarter of 2026, the Company withdrew its outstanding refund claims for South Korean withholding taxes totaling $82.7 million. The Company had previously recorded an uncertain tax position reserve against the receivable for these refund claims, as such, there was no impact to the Company’s Unaudited Condensed Consolidated Financial Statements as of September 30, 2026.

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 the Company’s 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 Company’s income tax expense and effective tax rate for the nine months ended September 30, 2026 decreased as compared to the same period in 2025, primarily due to the impact of OBBBA, which was in effect throughout all periods presented.

15. Litigation and Loss Contingency

Rambus is not currently a party to any material pending legal proceeding; however, from time to time, Rambus may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial position or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management attention and resources and other factors.

The Company records a liability for loss contingencies when a loss is probable and reasonably estimable.