Fabrinet
For the period ended Sep 26, 2025. Filed Nov 4, 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.
Sep 26, 2025 · Filed Nov 4, 2025
FN$327.13+11.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-28; filed 2025-05-06.
0001408710-25-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-26; filed 2025-11-04.
0001408710-25-000056
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 130 previous paragraphs and 112 current paragraphs.
83 unchanged; 25 reworded; 3 added; 17 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 6 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 (3)
Current report
(1)Datacenter interconnect (DCI) modules are opto-electronic modules used to connect two or more geographically separated data centers.
Current report
(2)High-performance computing (HPC) products are massively parallel computing systems built from interconnected high-performance processors, accelerators, high-speed memory, and low-latency networking to solve complex, compute-intensive problems.
Current report
Our gross profit increased by $17.4 million, or 17.6%, to $116.4 million, or 11.9% of revenues, for the three months ended September 26, 2025, compared with $99.0 million, or 12.3% of revenues, for the three months ended September 27, 2024. The increase was primarily due to an increase in sales volume.
Removed paragraphs (17)
Previous report
•our expectation that we will incur incremental costs of revenue as a result of our planned expansion of our business into new geographic markets;
Previous report
•our future capital expenditures and our needs for additional financing;
Previous report
We expect to incur incremental costs of revenue as a result of our planned expansion into new geographic markets, though we are not able to determine the amount of these incremental expenses.
Previous report
Our cost of revenues increased by $341.6 million, or 18.3%, to $2,207.6 million, or 88.0% of revenues, for the nine months ended March 28, 2025, compared with $1,866.0 million, or 87.6% of revenues, for the nine months ended March 29, 2024. This increase was in line with the increase in sales volume.
Previous report
Our gross profit increased by $11.3 million, or 12.4%, to $102.2 million, or 11.7% of revenues, for the three months ended March 28, 2025, compared with $90.9 million, or 12.4% of revenues, for the three months ended March 29, 2024. The increase was primarily due to an increase in sales volume.
Previous report
Our gross profit increased by $38.4 million, or 14.6%, to $302.1 million, or 12.0% of revenues, for the nine months ended March 28, 2025, compared with $263.7 million, or 12.4% of revenues, for the nine months ended March 29, 2024. The increase was primarily due to an increase in sales volume.
Previous report
Our SG&A expenses increased by $5.9 million, or 9.9%, to $65.3 million, or 2.6% of revenues, for the nine months ended March 28, 2025, compared with $59.4 million, or 2.8% of revenues, for the nine months ended March 29, 2024. The increase was primarily due to (1) an increase in executive compensation related expenses of $3.1 million, (2) an increase in legal expenses of $1.5 million, (3) an increase in information technology related expenses of $1.1 million, mainly from network, security system and new hardware costs, (4) an increase in share-based compensation expenses of $1.0 million, (5) an increase in R&D expenses of $1.0 million, and (6) an increase in severance expenses of $0.7 million, offset by (1) a net decrease in allowance for expected credit losses of $2.1 million and (2) a decrease in a net realized gain from financial instruments of $0.4 million.
Previous report
Restructuring and other related costs
Previous report
We recorded restructuring and other related costs for the three and nine months ended March 28, 2025 of $1.3 million, and $1.4 million, respectively, due to restructuring of operations in our subsidiary in Thailand. We had no restructuring costs for the three and nine months ended March 29, 2024.
Previous report
Our operating income increased by $7.6 million, or 10.7%, to $78.9 million, or 9.0% of revenues, for the three months ended March 28, 2025, compared with $71.3 million, or 9.7% of revenues, for the three months ended March 29, 2024. The increase was primarily due to an increase in revenues.
Previous report
Interest expense
Previous report
Our interest expense decreased for the three and nine months ended March 28, 2025, compared with the three and nine months ended March 29, 2024, due to the full repayment of our long-term loan balance.
Previous report
We recorded income before income taxes of $261.9 million for the nine months ended March 28, 2025, compared with $226.4 million for the nine months ended March 29, 2024.
Previous report
Our provision for income tax reflects effective tax rates of 6.3% and 5.0% for the nine months ended March 28, 2025 and March 29, 2024, respectively. The increase was due to higher income subject to tax and a discrete expense related to continuing assessment of potential tax exposures during the nine months ended March 28, 2025, offset by a full valuation allowance for deferred tax assets that was set up during the nine months ended March 29, 2024 for our subsidiary in Israel.
Previous report
We recorded net income of $245.3 million, or 9.8% of revenues, for the nine months ended March 28, 2025, compared with $215.1 million, or 10.1% of revenues, for the nine months ended March 29, 2024.
Previous report
We recorded other comprehensive income of $11.7 million, or 0.5% of revenues, for the nine months ended March 28, 2025, compared with other comprehensive income of $3.5 million, or 0.2% of revenues, for the nine months ended March 29, 2024. The increase in other comprehensive income was mainly due to (1) higher unrealized gain from mark-to-market of available-for-sale debt securities of $7.5 million, and (2) unrealized gain from foreign currency translation adjustment of $1.2 million, offset by (1) lower gain from a retirement benefits plan of $0.3 million, and (2) lower unrealized gain from mark-to-market of forward contracts and interest rate swap agreements of $0.2 million.
Previous report
As of March 29, 2024, we had long-term borrowing under our credit facility agreement of $3.0 million. As of March 28, 2025, we had no outstanding balance under our credit facility agreement. To better manage our cash on hand, we held short-term investments of $643.8 million as of March 28, 2025.
Reworded paragraphs (25)
Previous wording
•our expectation that the portion of our revenues attributable to customers in regions outside of North America for the remainder of fiscal year 2025 will be in line with the portion of revenues attributable to such customers during the nine months ended March 28, 2025;
Current wording
•our expectation that the portion of our revenues attributable to customers in regions outside of North America for the remainder of fiscal year 2026 will be in line with the portion of revenues attributable to such customers during the three months ended September 26, 2025;
Previous wording
•the expansion of our manufacturing capacity, including into new geographies;
Current wording
•our future capital expenditures, including the expansion of our manufacturing capacity;
Previous wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 62.8% in the three months ended March 29, 2024 to 53.8% in the three months ended March 28, 2025, primarily because of an increase in revenue from a customer in the United States.
Current wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 61.5% in the three months ended September 27, 2024 to 56.9% in the three months ended September 26, 2025, primarily because of an increase in revenue from customers in the United States.
Previous wording
Based on the short and medium-term indications and forecasts from our customers, we expect that the portion of our future revenues attributable to customers in regions outside North America for the remainder of fiscal year 2025 will be in line with the portion of revenues attributable to such customers during the nine months ended March 28, 2025.
Current wording
Based on the short and medium-term indications and forecasts from our customers, we expect that the portion of our future revenues attributable to customers in regions outside North America for the remainder of fiscal year 2026 will be in line with the portion of revenues attributable to such customers during the three months ended September 26, 2025.
Previous wording
Our SG&A expenses primarily consist of corporate employee costs for sales and marketing, general and administrative and other support personnel, including research and development expenses related to the design of customized optics and glass, travel expenses, legal and other professional fees, share-based compensation expense and other general expenses not related to cost of revenues. In fiscal year 2025, we expect our SG&A expenses will increase compared with our fiscal year 2024 SG&A expenses, mainly due to increases in employee costs, legal expenses and research and development ("R&D") expenses.
Current wording
Our SG&A expenses primarily consist of corporate employee costs for sales and marketing, general and administrative and other support personnel, including research and development expenses related to the design of customized optics and glass, travel expenses, legal and other professional fees, share-based compensation expense and other general expenses not related to cost of revenues. In fiscal year 2026, we expect our SG&A expenses will increase compared with our fiscal year 2025 SG&A expenses, mainly due to an increase in information technology related expenses and employee costs.
Previous wording
The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable, accrued employee benefits and other payables. We manage our exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of March 28, 2025, there was $155.0 million of foreign currency forward contracts outstanding on the Thai baht payables. As of June 28, 2024, there was $135.0 million of foreign currency forward contracts outstanding on the Thai baht payables.
Current wording
The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable, accrued employee benefits and other payables. We manage our exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of September 26, 2025, there was $196.0 million of foreign currency forward contracts outstanding on the Thai baht payables. As of June 27, 2025, there was $165.0 million of foreign currency forward contracts outstanding on the Thai baht payables.
Previous wording
For the three months ended March 28, 2025 and March 29, 2024, we recorded unrealized gain of $1.6 million and unrealized loss of $3.7 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.
Current wording
For the three months ended September 26, 2025 and September 27, 2024, we recorded an unrealized loss of $1.3 million and unrealized gain of $4.1 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.
Previous wording
Throughout the period of our operations in Thailand, we have generally received income tax and other incentives from the Thailand Board of Investment. Preferential tax treatment from the Thai government in the form of a corporate tax exemption on income generated from projects to manufacture certain products at our Chonburi campus is currently available to us through June 2026. Similar preferential tax treatment was available to us through June 2020 with respect to products manufactured at our Pinehurst campus Building 6. After June 2020, 50% of our income generated from products manufactured at our Pinehurst campus will be exempted from tax through June 2025. Preferential tax treatment is available to us for products manufactured at our Chonburi campus Building 9, where income generated will be tax exempt through 2031, capped at our actual investment amount. Such preferential tax treatment is contingent on various factors, including the export of our customers’ products out of Thailand and our agreement not to move our manufacturing facilities out of our current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. Currently, the corporate income tax rate for our Thai subsidiary is 20%.
Current wording
Throughout the period of our operations in Thailand, we have generally received income tax and other incentives from the Thailand Board of Investment. Preferential tax treatment from the Thai government in the form of a corporate tax exemption on income generated from projects to manufacture certain products at our Chonburi campus is currently available to us through June 2026. Similar preferential tax treatment was available to us through June 2020 with respect to products manufactured at our Pinehurst campus Building 6. Between June 2020 and June 2025, 50% of our income generated from products manufactured at our Pinehurst campus was exempted from tax. Preferential tax treatment is available to us for products manufactured at our Chonburi campus Building 9, where income generated will be tax exempt through 2031, capped at our actual investment amount. Such preferential tax treatment is contingent on various factors, including the export of our customers’ products out of Thailand and our agreement not to move our manufacturing facilities out of our current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. Currently, the corporate income tax rate for our Thai subsidiary is 20%.
Previous wording
Comparison of Three and Nine Months Ended March 28, 2025 with Three and Nine Months Ended March 29, 2024
Current wording
Comparison of Three Months Ended September 26, 2025 with Three Months Ended September 27, 2024
Previous wording
Our revenues increased by $140.3 million, or 19.2%, to $871.8 million for the three months ended March 28, 2025, compared with $731.5 million for the three months ended March 29, 2024. This increase was primarily due to an increase in our key customers’ demand for both optical communications products and non-optical communications products. Revenues from optical communications products, which represented $657.2 million, or 75.4%, of our revenues for the three months ended March 28, 2025, increased by $65.8 million, or 11.1%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, and an increase in revenues from telecommunication products during the three months ended March 28, 2025. Revenues from non-optical communications products, which represented $214.6 million, or 24.6%, of our revenues for the three months ended March 28, 2025, increased by $74.5 million, or 53.2%, compared to the same period in the prior fiscal year, primarily due to growth in automotive revenue, as short-term inventory absorption issues have substantially subsided.
Current wording
Our revenues increased by $173.9 million, or 21.6%, to $978.1 million for the three months ended September 26, 2025, compared with $804.2 million for the three months ended September 27, 2024. This increase was primarily due to an increase in our key customers’ demand for both optical communications products and non-optical communications products. Revenues from optical communications products, which represented $746.9 million, or 76.4%, of our revenues for the three months ended September 26, 2025, increased by $120.6 million, or 19.3%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from telecommunication products and datacenter interconnect products, and partially offset with a decrease in revenues from data communication products during the three months ended September 26, 2025. Revenues from non-optical communications products, which represented $231.2 million, or 23.6%, of our revenues for the three months ended September 26, 2025, increased by $53.3 million, or 30.0%, compared to the same period in the prior fiscal year, primarily due to growth in automotive revenue and high-performance computing.
Previous wording
Our cost of revenues increased by $129.0 million, or 20.1%, to $769.6 million, or 88.3% of revenues, for the three months ended March 28, 2025, compared with $640.6 million, or 87.6% of revenues, for the three months ended March 29, 2024. The increase was in line with the increase in sales volume.
Current wording
Our cost of revenues increased by $156.5 million, or 22.2%, to $861.7 million, or 88.1% of revenues, for the three months ended September 26, 2025, compared with $705.2 million, or 87.7% of revenues, for the three months ended September 27, 2024. This increase was in line with the increase in sales volume.
Previous wording
Our SG&A expenses increased by $2.5 million, or 12.8%, to $22.1 million, or 2.5% of revenues, for the three months ended March 28, 2025, compared with $19.6 million, or 2.7% of revenues, for the three months ended March 29, 2024. The increase was primarily due to (1) an increase in legal expenses of $0.8 million, (2) an increase in executive compensation related expenses of $0.4 million, (3) an increase in information technology related expenses of $0.4 million, mainly from network, security system and new hardware costs, (4) an increase in share-based compensation expenses of $0.4 million, (5) an increase in R&D expenses of $0.3 million, and (6) an increase in a net realized loss from financial instruments of $0.3 million, offset by a net decrease in allowance for expected credit losses of $0.1 million.
Current wording
Our SG&A expenses increased by $0.2 million, or 0.9%, to $22.2 million, or 2.3% of revenues, for the three months ended September 26, 2025, compared with $22.0 million, or 2.7% of revenues, for the three months ended September 27, 2024. The increase was primarily due to (1) an increase in information technology related expenses of $0.6 million, mainly from network, security system and new hardware costs, and (2) an increase in executive compensation related expenses of $0.3 million, offset by a decrease in severance expenses of $0.7 million.
Previous wording
Our operating income increased by $31.1 million, or 15.2%, to $235.4 million, or 9.4% of revenues, for the nine months ended March 28, 2025, compared with $204.3 million, or 9.6% of revenues, for the nine months ended March 29, 2024. The increase was primarily due to an increase in revenues.
Current wording
Our operating income increased by $17.3 million, or 22.5%, to $94.2 million, or 9.6% of revenues, for the three months ended September 26, 2025, compared with $76.9 million, or 9.6% of revenues, for the three months ended September 27, 2024. The increase was primarily due to an increase in revenues.
Previous wording
Our interest income increased by $1.6 million, or 18.8%, to $10.1 million, or 1.2% of revenues, for the three months ended March 28, 2025, compared with $8.5 million, or 1.2% of revenues, for the three months ended March 29, 2024. The increase was primarily due to an increase in average cash balance and short-term investment during the three months ended March 28, 2025 compared to the same period in the prior fiscal year.
Current wording
Our interest income decreased by $1.5 million, or 13.8%, to $9.4 million, or 1.0% of revenues, for the three months ended September 26, 2025, compared with $10.9 million, or 1.3% of revenues, for the three months ended September 27, 2024. The decrease was primarily due to a decrease of weighted average interest income rate following to global interest rate trend, offset by higher average cash balance and short-term investment during the three months ended September 26, 2025 compared to same period in the prior fiscal year.
Previous wording
We recorded foreign exchange loss, net of $5.7 million, or 0.2% of revenues, for the nine months ended March 28, 2025, compared with foreign exchange loss, net of $25.0 thousand, or 0.0% or revenues, for the nine months ended March 29, 2024. The increase in foreign exchange loss was mainly due to (1) unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $6.3 million, (2) foreign exchange loss, totaling $0.8 million from our subsidiaries in the PRC and the U.K., and (3) unrealized loss from revaluation of currencies other than Thai baht of $0.7 million, offset by (1) unrealized gain from mark-to-market forward contracts of $1.4 million, and (2) decrease in realized loss from payment/receipt of $0.7 million.
Current wording
We recorded foreign exchange loss, net of $2.1 million, or 0.2% of revenues, for the three months ended September 26, 2025, compared with foreign exchange loss, net of $7.1 million, or 0.9% or revenues, for the three months ended September 27, 2024. The decrease in foreign exchange loss was mainly due to (1) unrealized gain from revaluation of outstanding Thai baht assets and liabilities of $10.8 million, and (2) unrealized gain from revaluation of currencies other than Thai baht of $1.7 million, offset by (1) unrealized loss from mark-to-market forward contracts of $5.4 million, (2) higher in realized loss from payment/receipt of $1.4 million, and (3) lower foreign exchange gain, totaling $0.7 million from our subsidiaries in the PRC and the U.K.
Previous wording
We recorded income before income taxes of $86.3 million for the three months ended March 28, 2025, compared with $83.3 million for the three months ended March 29, 2024.
Current wording
We recorded income before income taxes of $101.4 million for the three months ended September 26, 2025, compared with $80.8 million for the three months ended September 27, 2024.
Previous wording
Our provision for income tax reflects effective tax rates of 5.8% and 2.9% for the three months ended March 28, 2025 and March 29, 2024, respectively. The increase was due to higher income subject to tax and a discrete expense related to continuing assessment of potential tax exposures.
Current wording
Our provision for income tax reflects effective tax rates of 5.4% and 4.2% for the three months ended September 26, 2025 and September 27, 2024, respectively. The increase was due to higher income subject to tax.
Previous wording
We recorded net income of $81.3 million, or 9.3% of revenues, for the three months ended March 28, 2025, compared with $80.9 million, or 11.1% of revenues, for the three months ended March 29, 2024.
Current wording
We recorded net income of $95.9 million, or 9.8% of revenues, for the three months ended September 26, 2025, compared with $77.4 million, or 9.6% of revenues, for the three months ended September 27, 2024.
Previous wording
We recorded other comprehensive income of $6.2 million, or 0.7% of revenues, for the three months ended March 28, 2025, compared with other comprehensive loss of $8.9 million, or 1.2% of revenues, for the three months ended March 29, 2024. The change was mainly due to (1) unrealized gain from mark-to-market of forward contracts and interest rate swap agreements of $9.1 million, (2) unrealized gain from mark-to-market of available-for-sale debt securities of $5.1 million, and (3) an increase in unrealized gain from foreign currency translation adjustment of $1.0 million, offset by lower gain from a retirement benefits plan of $0.1 million.
Current wording
We recorded other comprehensive loss of $3.0 million, or 0.3% of revenues, for the three months ended September 26, 2025, compared with other comprehensive income of $15.0 million, or 1.9% of revenues, for the three months ended September 27, 2024. The change was mainly due to (1) unrealized loss from mark-to-market of forward contracts and interest rate swap agreements of $10.6 million, and (2) unrealized loss from mark-to-market of available-for-sale debt securities of $7.6 million, offset by lower unrealized loss from foreign currency translation adjustment of $0.2 million
Previous wording
We primarily finance our operations through cash flow from operating activities. As of March 28, 2025, we had cash, cash equivalents, and short-term investments of $950.7 million and no outstanding debt. As of March 29, 2024, we had cash, cash equivalents, and short-term investments of $794.0 million and outstanding debt of $3.0 million.
Current wording
We primarily finance our operations through cash flow from operating activities. As of September 26, 2025 and September 27, 2024, we had cash, cash equivalents, and short-term investments of $968.8 million and $908.9.0 million, respectively, and no outstanding debt.
Previous wording
Our cash and cash equivalents, which primarily consist of cash on hand, demand deposits, and liquid investments with original maturities of three months or less, are placed with banks and other financial institutions. The weighted-average interest rate on our cash and cash equivalents was 4.1% and 4.3% for the three and nine months ended March 28, 2025, respectively, and 4.5% and 4.3% for the three and nine months ended March 29, 2024, respectively.
Current wording
Our cash and cash equivalents, which primarily consist of cash on hand, demand deposits, and liquid investments with original maturities of three months or less, are placed with banks and other financial institutions. The weighted-average interest rate on our cash and cash equivalents was 4.0% and 4.6% for the three and three months ended September 26, 2025 and September 27, 2024, respectively.
Previous wording
Our cash investments are made in accordance with an investment policy approved by the audit committee of our board of directors. In general, our investment policy requires that securities purchased be rated A1, P-1, F1 or better. No security may have an effective maturity that exceeds three years. Our investments in fixed income securities are primarily classified as available-for-sale and are recorded at fair value. The cost of securities sold is based on the specific identification method. Unrealized gains and losses on these securities are recorded as other comprehensive income (loss) and are reported as a separate component of shareholders’ equity.
Current wording
Our cash investments are made in accordance with an investment policy approved by the audit committee of our board of directors. In general, our investment policy requires that securities purchased be rated A1, P-1, F1 or better. No security may have an effective maturity that exceeds three years. Our investments in fixed income securities are primarily classified as available-for-sale and are recorded at fair value. The cost of securities sold is based on the specific identification method.
Previous wording
Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities. The decrease in cash provided by operating activities during the nine months ended March 28, 2025 as compared to the nine months ended March 29, 2024 was primarily due to (1) a change in inventories of $133.6 million due to new products and higher sales volume, and (2) a decrease in other payables of $17.2 million, offset by (1) a change in other current and non-current assets of $31.2 million, (2) an increase in trade payables of $30.9 million, and (3) an increase in net income of $30.2 million.
Current wording
Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities. The increase in cash provided by operating activities during the three months ended September 26, 2025 as compared to the three months ended September 27, 2024 was primarily more efficient cash-favorable working capital changes mainly from a decrease in trade receivables due to timing of collection, and an increase in inventories to support higher demand in next quarter.
Previous wording
Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The increase in cash used in investing activities for the nine months ended March 28, 2025 as compared to cash used in investing activities for the nine months ended March 29, 2024 was primarily due to an increase in investment purchases, and an increase in capital expenditures to support certain customers.
Current wording
Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The increase in cash used in investing activities for the three months ended September 26, 2025 as compared to cash used in investing activities for the three months ended September 27, 2024 was primarily due to (1) an increase related to the construction of a new manufacturing building at our Chonburi campus, and (2) an increase in capital expenditures to support certain customers, offset by an increase in net proceeds of investment.
Previous wording
Financing cash flows consist primarily of repayment of long-term debt, share repurchases, and withholding tax related to net share settlement of restricted share units. The increase in cash used in financing activities for the nine months ended March 28, 2025 as compared to the nine months ended March 29, 2024 was due to an increase in share repurchases and higher withholding tax related to net share settlement of restricted share units, offset by lower repayment of long-term borrowings.
Current wording
Financing cash flows consist primarily of repayment of long-term debt, share repurchases, and withholding tax related to net share settlement of restricted share units. The increase in cash used in financing activities for the three months ended September 26, 2025 as compared to the three months ended September 27, 2024 was due to higher withholding tax related to net share settlement of restricted share units and an increase in share repurchases.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Unrealized gains and losses on these securities are recorded as other comprehensive income (loss) and are reported as a separate component of shareholders’ equity.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The percentage of our revenues generated from a bill-to location outside of North America decreased from 63.7% in the nine months ended March 29, 2024 to 56.8% in the nine months ended March 28, 2025, primarily because of an increase in revenue from a customer in the United States.
Previous report — wording carried elsewhere
For the nine months ended March 28, 2025 and March 29, 2024, we recorded unrealized gain of $0.6 million and unrealized loss $0.8 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.
Previous report — wording carried elsewhere
Our revenues increased by $379.9 million, or 17.8%, to $2,509.6 million for the nine months ended March 28, 2025, compared with $2,129.7 million for the nine months ended March 29, 2024. This increase was primarily due to an increase in our key customers’ demand for both optical communications products and non-optical communications products. Revenues from optical communications products, which represented $1,930.7 million, or 76.9%, of our revenues for the nine months ended March 28, 2025, increased by $238.1 million, or 14.1%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, and an increase in revenues from telecommunication products during the nine months ended March 28, 2025. Revenues from non-optical communications products, which represented $578.9 million, or 23.1%, of our revenues for the nine months ended March 28, 2025, increased by $141.9 million, or 32.5%, compared to the same period in the prior fiscal year, primarily due to growth in automotive revenue, as short-term inventory absorption issues have substantially subsided.
Previous report — wording carried elsewhere
Our interest income increased by $10.3 million, or 46.6%, to $32.4 million, or 1.3% of revenues, for the nine months ended March 28, 2025, compared with $22.1 million, or 1.0% of revenues, for the nine months ended March 29, 2024. The increase was primarily due to an increase in average cash balance and short-term investment during the nine months ended March 28, 2025 compared to same period in the prior fiscal year.
Previous report — wording carried elsewhere
We recorded foreign exchange loss, net of $2.7 million, or 0.3% of revenues, for the three months ended March 28, 2025, compared with foreign exchange gain, net of $3.3 million, or 0.5% of revenues, for the three months ended March 29, 2024. The foreign exchange loss was mainly due to (1) unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $9.1 million, (2) unrealized loss from revaluation of currencies other than Thai baht of $2.3 million, and (3) increase in foreign exchange loss, totaling $0.8 million from our subsidiaries in the PRC and the U.K., offset by (1) unrealized gain from mark-to-market forward contracts of $5.3 million, and (2) realized gain from payment/receipt of $0.9 million.