Fabrinet
For the period ended Mar 27, 2026. Filed May 5, 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.
Mar 27, 2026 · Filed May 5, 2026
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 2025-12-26; filed 2026-02-03.
0001408710-26-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-27; filed 2026-05-05.
0001408710-26-000016
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 124 previous paragraphs and 128 current paragraphs.
89 unchanged; 34 reworded; 5 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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 (5)
Current report
Recent Developments
Current report
On March 25, 2026, we entered into a share purchase agreement to acquire a 16.0% equity interest in Raytek Semiconductor, Inc. (“Raytek”) for approximately NT$1.02 billion ($32.4 million), subject to customary closing conditions. The investment will be accounted for as an equity security measured at cost, as we do not expect to have significant influence over the investee.
Current report
Our gross profit increased by $42.1 million, or 41.2%, to $144.3 million, or 11.9% of revenues, for the three months ended March 27, 2026, compared with $102.2 million, or 11.7% of revenues, for the three months ended March 28, 2025. The increase was primarily due to an increase in sales volume.
Current report
Restructuring and other related costs
Current report
We had no restructuring costs for the three and nine months ended March 27, 2026. 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.
Removed paragraphs (1)
Previous report
Our gross profit increased by $36.9 million, or 36.6%, to $137.7 million, or 12.2% of revenues, for the three months ended December 26, 2025, compared with $100.8 million, or 12.1% of revenues, for the three months ended December 27, 2024. The increase was primarily due to an increase in sales volume.
Reworded paragraphs (34)
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 2026 will be in line with the portion of revenues attributable to such customers during the six months ended December 26, 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 nine months ended March 27, 2026;
Previous wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 55.3% in the three months ended December 27, 2024 to 53.1% in the three months ended December 26, 2025, primarily because of an increase in revenue from customers in the United States.
Current wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 53.8% in the three months ended March 28, 2025 to 47.9% in the three months ended March 27, 2026, primarily because of an increase in revenue from customers in the United States.
Previous wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 58.4% in the six months ended December 27, 2024 to 54.9% in the six months ended December 26, 2025, primarily because of an increase in revenue from customers in the United States.
Current wording
The percentage of our revenues generated from a bill-to location outside of North America decreased from 56.8% in the nine months ended March 28, 2025 to 52.3% in the nine months ended March 27, 2026, 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 2026 will be in line with the portion of revenues attributable to such customers during the six months ended December 26, 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 nine months ended March 27, 2026.
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 December 26, 2025, there was $200.0 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.
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 March 27, 2026, there was $253.0 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 December 26, 2025 and December 27, 2024, we recorded an unrealized gain of $1.2 million and unrealized loss of $5.1 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 March 27, 2026 and March 28, 2025, we recorded an unrealized loss of $4.2 million and unrealized gain of $1.6 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
For the six months ended December 26, 2025 and December 27, 2024, we recorded an unrealized loss of $0.1 million and $1.0 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 nine months ended March 27, 2026 and March 28, 2025, we recorded an unrealized loss of $4.3 million and unrealized gain of $0.6 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
Comparison of Three and Six Months Ended December 26, 2025 with Three and Six Months Ended December 27, 2024
Current wording
Comparison of Three and Nine Months Ended March 27, 2026 with Three and Nine Months Ended March 28, 2025
Previous wording
Our revenues increased by $299.3 million, or 35.9%, to $1,132.9 million for the three months ended December 26, 2025, compared with $833.6 million for the three months ended December 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 $832.6 million, or 73.5%, of our revenues for the three months ended December 26, 2025, increased by $185.4 million, or 28.7%, 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 December 26, 2025. Revenues from non-optical communications products, which represented $300.3 million, or 26.5%, of our revenues for the three months ended December 26, 2025, increased by $113.8 million, or 61.1%, compared to the same period in the prior fiscal year, primarily due to high demand for high-performance computing, and growth in automotive revenue, as short-term inventory absorption issues have substantially subsided.
Current wording
Our revenues increased by $342.5 million, or 39.3%, to $1,214.3 million for the three months ended March 27, 2026, compared with $871.8 million for the three months ended March 28, 2025. 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 $888.7 million, or 73.2%, of our revenues for the three months ended March 27, 2026, increased by $231.5 million, or 35.2%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from telecommunication products and datacenter interconnect products during the three months ended March 27, 2026. Revenues from non-optical communications products, which represented $325.6 million, or 26.8%, of our revenues for the three months ended March 27, 2026, increased by $111.0 million, or 51.7%, compared to the same period in the prior fiscal year, primarily due to high demand for high-performance computing, and partially offset with a decrease in revenue from automotive.
Previous wording
Our revenues increased by $473.2 million, or 28.9%, to $2,111.0 million for the six months ended December 26, 2025, compared with $1,637.8 million for the six months ended December 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 $1,579.5 million, or 74.8%, of our revenues for the six months ended December 26, 2025, increased by $306.0 million, or 24.0%, 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 six months ended December 26, 2025. Revenues from non-optical communications products, which represented $531.5 million, or 25.2%, of our revenues for the six months ended December 26, 2025, increased by $167.2 million, or 45.9%, compared to the same period in the prior fiscal year, primarily due to high demand for high-performance computing, and growth in automotive revenue, as short-term inventory absorption issues have substantially subsided.
Current wording
Our revenues increased by $815.7 million, or 32.5%, to $3,325.3 million for the nine months ended March 27, 2026, compared with $2,509.6 million for the nine months ended March 28, 2025. 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 $2,468.2 million, or 74.2%, of our revenues for the nine months ended March 27, 2026, increased by $537.5 million, or 27.8%, 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 nine months ended March 27, 2026. Revenues from non-optical communications products, which represented $857.1 million, or 25.8%, of our revenues for the nine months ended March 27, 2026, increased by $278.2 million, or 48.0%, compared to the same period in the prior fiscal year, primarily due to high demand for high-performance computing.
Previous wording
Our cost of revenues increased by $262.4 million, or 35.8%, to $995.2 million, or 87.8% of revenues, for the three months ended December 26, 2025, compared with $732.8 million, or 87.9% of revenues, for the three months ended December 27, 2024. The increase was in line with the increase in sales volume.
Current wording
Our cost of revenues increased by $300.4 million, or 39.0%, to $1,070.0 million, or 88.1% of revenues, for the three months ended March 27, 2026, compared with $769.6 million, or 88.3% of revenues, for the three months ended March 28, 2025. The increase was in line with the increase in sales volume.
Previous wording
Our cost of revenues increased by $418.9 million, or 29.1%, to $1,856.9 million, or 88.0% of revenues, for the six months ended December 26, 2025, compared with $1,438.0 million, or 87.8% of revenues, for the six months ended December 27, 2024. This increase was in line with the increase in sales volume.
Current wording
Our cost of revenues increased by $719.2 million, or 32.6%, to $2,926.8 million, or 88.0% of revenues, for the nine months ended March 27, 2026, compared with $2,207.6 million, or 88.0% of revenues, for the nine months ended March 28, 2025. This increase was in line with the increase in sales volume.
Previous wording
Our gross profit increased by $54.2 million, or 27.1%, to $254.1 million, or 12.0% of revenues, for the six months ended December 26, 2025, compared with $199.9 million, or 12.2% of revenues, for the six months ended December 27, 2024. The increase was primarily due to an increase in sales volume.
Current wording
Our gross profit increased by $96.4 million, or 31.9%, to $398.5 million, or 12.0% of revenues, for the nine months ended March 27, 2026, compared with $302.1 million, or 12.0% of revenues, for the nine months ended March 28, 2025. The increase was primarily due to an increase in sales volume.
Previous wording
Our SG&A expenses increased by $2.1 million, or 9.9%, to $23.3 million, or 2.1% of revenues, for the three months ended December 26, 2025, compared with $21.2 million, or 2.6% of revenues, for the three months ended December 27, 2024. The increase was primarily due to (1) a net increase in the allowance for expected credit losses of $0.6 million, (2) an increase in information technology related expenses of $0.5 million, mainly from network, security system and new hardware costs, (3) an increase in a net realized loss from financial instruments of $0.5 million, (4) an increase in executive compensation related expenses of $0.4 million, and (5) an increase in share-based compensation expenses of $0.4 million, offset by a decrease from the true-up of other employee benefits of $0.3 million.
Current wording
Our SG&A expenses increased by $2.2 million, or 10.0%, to $24.3 million, or 2.0% of revenues, for the three months ended March 27, 2026, compared with $22.1 million, or 2.5% of revenues, for the three months ended March 28, 2025. The increase was primarily due to (1) an increase in severance expenses of $0.6 million, (2) an increase in R&D expenses of $0.5 million, (3) an increase in share-based compensation expenses of $0.4 million, (4) an increase in executive compensation related expenses of $0.4 million, and (5) an increase in information technology related expenses of $0.3 million.
Previous wording
Our SG&A expenses increased by $2.3 million, or 5.3%, to $45.5 million, or 2.1% of revenues, for the six months ended December 26, 2025, compared with $43.2 million, or 2.6% of revenues, for the six months ended December 27, 2024. The increase was primarily due to (1) an increase in information technology related expenses of $1.1 million, mainly from network, security system and new hardware costs, (2) an increase in executive compensation related expenses of $0.7 million, (3) an increase in consultant expenses of $0.4 million, (4) a net increase in the allowance for expected credit losses of $0.3 million, (5) an increase in a net realized loss from financial instruments of $0.3 million, and (6) an increase in share-based compensation expenses of $0.2 million, offset by a decrease in severance expenses of $0.7 million.
Current wording
Our SG&A expenses increased by $4.5 million, or 6.9%, to $69.8 million, or 2.1% of revenues, for the nine months ended March 27, 2026, compared with $65.3 million, or 2.6% of revenues, for the nine months ended March 28, 2025. The increase was primarily due to (1) an increase in information technology related expenses of $1.8 million, mainly from network, security system and new hardware costs, (2) an increase in executive compensation related expenses of $1.2 million, (3) an increase in share-based compensation expenses of $0.7 million, (4) an increase in R&D expenses of $0.3 million, (5) an increase in severance expenses of $0.3 million, and (6) a net increase in the allowance for expected credit losses of $0.2 million.
Previous wording
Our operating income increased by $34.8 million, or 43.7%, to $114.4 million, or 10.1% of revenues, for the three months ended December 26, 2025, compared with $79.6 million, or 9.5% of revenues, for the three months ended December 27, 2024. The increase was primarily due to an increase in revenues.
Current wording
Our operating income increased by $41.1 million, or 52.1%, to $120.0 million, or 9.9% of revenues, for the three months ended March 27, 2026, compared with $78.9 million, or 9.0% of revenues, for the three months ended March 28, 2025. The increase was primarily due to an increase in revenues.
Previous wording
Our operating income increased by $52.1 million, or 33.3%, to $208.6 million, or 9.9% of revenues, for the six months ended December 26, 2025, compared with $156.5 million, or 9.6% of revenues, for the six months ended December 27, 2024. The increase was primarily due to an increase in revenues.
Current wording
Our operating income increased by $93.2 million, or 39.6%, to $328.6 million, or 9.9% of revenues, for the nine months ended March 27, 2026, compared with $235.4 million, or 9.4% of revenues, for the nine months ended March 28, 2025. The increase was primarily due to an increase in revenues.
Previous wording
Our interest income decreased by $2.7 million, or 23.9%, to $8.6 million, or 0.8% of revenues, for the three months ended December 26, 2025, compared with $11.3 million, or 1.4% of revenues, for the three months ended December 27, 2024. The decrease was primarily due to a decrease in average cash balance and short-term investment and a decrease of weighted average interest income rate following to global interest rate trend from 4.2% to 3.8% during the three months ended December 26, 2025 compared to the same period in the prior fiscal year.
Current wording
Our interest income decreased by $2.7 million, or 26.7%, to $7.4 million, or 0.6% of revenues, for the three months ended March 27, 2026, compared with $10.1 million, or 1.2% of revenues, for the three months ended March 28, 2025. The decrease was primarily due to a decrease in average cash balance and short-term investment and a decrease of weighted average interest income rate during the three months ended March 27, 2026 compared to the same period in the prior fiscal year.
Previous wording
Our interest income decreased by $4.2 million, or 18.9%, to $18.0 million, or 0.9% of revenues, for the six months ended December 26, 2025, compared with $22.2 million, or 1.3% of revenues, for the six months ended December 27, 2024. The decrease was primarily due to a decrease of weighted average interest income rate following to global interest rate trend from 4.4% to 3.9% during the six months ended December 26, 2025 compared to same period in the prior fiscal year.
Current wording
Our interest income decreased by $7.0 million, or 21.6%, to $25.4 million, or 0.7% of revenues, for the nine months ended March 27, 2026, compared with $32.4 million, or 1.3% of revenues, for the nine months ended March 28, 2025. The decrease was primarily due to a decrease in average cash balance and short-term investment and a decrease of weighted average interest income rate during the nine months ended March 27, 2026 compared to same period in the prior fiscal year.
Previous wording
We recorded foreign exchange loss, net of $3.2 million, or 0.3% of revenues, for the three months ended December 26, 2025, compared with foreign exchange gain, net of $4.0 million, or 0.5% of revenues, for the three months ended December 27, 2024. The foreign exchange loss was mainly due to (1) unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $12.3 million, (2) unrealized loss from revaluation of currencies other than Thai baht of $1.6 million, and (3) higher realized loss from payment/receipt of $0.1 million, offset by (1) unrealized gain from mark-to-market forward contracts of $6.3 million, and (2) lower foreign exchange loss, totaling $0.5 million from our subsidiaries in the PRC and the U.K.
Current wording
We recorded foreign exchange gain, net of $7.0 million, or 0.6% of revenues, for the three months ended March 27, 2026, compared with foreign exchange loss, net of $2.7 million, or 0.3% of revenues, for the three months ended March 28, 2025. The foreign exchange gain was mainly due to (1) unrealized gain from revaluation of outstanding Thai baht assets and liabilities of $12.7 million, (2) unrealized gain from revaluation of currencies other than Thai baht of $2.4 million, and (3) lower foreign exchange loss, totaling $0.9 million from our subsidiaries in the PRC and the U.K, offset by (1) unrealized loss from mark-to-market forward contracts of $5.9 million, and (2) realized loss from payment/receipt of $0.4 million.
Previous wording
We recorded foreign exchange loss, net of $5.3 million, or 0.3% of revenues, for the six months ended December 26, 2025, compared with foreign exchange loss, net of $3.1 million, or 0.2% or revenues, for the six months ended December 27, 2024. The increase in foreign exchange loss was mainly due to (1) higher in realized loss from payment/receipt of $1.5 million, (2) higher unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $1.4 million, and (3) foreign exchange loss, totaling $0.2 million from our subsidiaries in the PRC and the U.K, offset by lower unrealized loss from mark-to-market forward contracts of $0.9 million.
Current wording
We recorded foreign exchange gain, net of $1.7 million, or 0.1% of revenues, for the nine months ended March 27, 2026, compared with foreign exchange loss, net of $5.7 million, or 0.2% of revenues, for the nine months ended March 28, 2025. The foreign exchange gain was mainly due to (1) unrealized gain from revaluation of outstanding Thai baht assets and liabilities of $11.2 million, (2) unrealized gain from revaluation of currencies other than Thai baht of $2.5 million, and (3) lower foreign exchange loss, totaling $0.6 million from our subsidiaries in the PRC and the U.K, offset by (1) unrealized loss from mark-to-market forward contracts of $5.0 million, and (2) an increase realized loss from payment/receipt of $1.9 million.
Previous wording
We recorded income before income taxes of $119.7 million for the three months ended December 26, 2025, compared with $94.9 million for the three months ended December 27, 2024.
Current wording
We recorded income before income taxes of $134.2 million for the three months ended March 27, 2026, compared with $86.3 million for the three months ended March 28, 2025.
Previous wording
We recorded income before income taxes of $221.2 million for the six months ended December 26, 2025, compared with $175.6 million for the six months ended December 27, 2024.
Current wording
We recorded income before income taxes of $355.4 million for the nine months ended March 27, 2026, compared with $261.9 million for the nine months ended March 28, 2025.
Previous wording
Our provision for income tax reflects effective tax rates of 5.7% and 6.6% for the six months ended December 26, 2025 and December 27, 2024, respectively. The decrease was due to an increase in income not subject to tax.
Current wording
Our provision for income tax reflects effective tax rates of 6.7% and 5.8% for the three months ended March 27, 2026 and March 28, 2025, respectively. The increase was due to an increase in income subject to tax.
Previous wording
Our provision for income tax reflects effective tax rates of 5.9% and 8.7% for the three months ended December 26, 2025 and December 27, 2024, respectively. The decrease was due to an increase in income not subject to tax.
Current wording
Our provision for income tax reflects effective tax rates of 6.1% and 6.3% for the nine months ended March 27, 2026 and March 28, 2025, respectively. The decrease was due to an increase in income not subject to tax.
Previous wording
We recorded net income of $112.6 million, or 10.0% of revenues, for the three months ended December 26, 2025, compared with $86.6 million, or 10.4% of revenues, for the three months ended December 27, 2024.
Current wording
We recorded net income of $125.2 million, or 10.3% of revenues, for the three months ended March 27, 2026, compared with $81.3 million, or 9.3% of revenues, for the three months ended March 28, 2025.
Previous wording
We recorded net income of $208.6 million, or 9.9% of revenues, for the six months ended December 26, 2025, compared with $164.0 million, or 10.0% of revenues, for the six months ended December 27, 2024.
Current wording
We recorded net income of $333.8 million, or 10.0% of revenues, for the nine months ended March 27, 2026, compared with $245.3 million, or 9.8% of revenues, for the nine months ended March 28, 2025.
Previous wording
We recorded other comprehensive income of $7.1 million, or 0.6% of revenues, for the three months ended December 26, 2025, compared with other comprehensive loss of $9.5 million, or 1.1% of revenues, for the three months ended December 27, 2024. The change was mainly due to (1) unrealized gain from mark-to-market of forward contracts of $14.0 million, and (2) unrealized gain from mark-to-market of available-for-sale debt securities of $3.0 million, offset by lower unrealized gain from foreign currency translation adjustment of $0.4 million.
Current wording
We recorded other comprehensive loss of $14.9 million, or 1.2% of revenues, for the three months ended March 27, 2026, compared with other comprehensive income of $6.2 million, or 0.7% of revenues, for the three months ended March 28, 2025. The change was mainly due to (1) unrealized loss from mark-to-market of forward contracts of $13.7 million, (2) unrealized loss from mark-to-market of available-for-sale debt securities of $6.3 million, and (3) unrealized loss from foreign currency translation adjustment of $1.1 million.
Previous wording
We recorded other comprehensive income of $4.1 million, or 0.2% of revenues, for the six months ended December 26, 2025, compared with other comprehensive income of $5.5 million, or 0.3% of revenues, for the six months ended December 27, 2024. The change was mainly due to (1) lower unrealized gain from mark-to-market of available-for-sale debt securities of $4.7 million, and (2) unrealized loss from foreign currency translation adjustment of $0.1 million, offset by unrealized gain from mark-to-market of forward contracts of $3.4 million.
Current wording
We recorded other comprehensive loss of $10.8 million, or 0.3% of revenues, for the nine months ended March 27, 2026, compared with other comprehensive income of $11.7 million, or 0.4% of revenues, for the nine months ended March 28, 2025. The change was mainly due to (1) unrealized loss from mark-to-market of available-for-sale debt securities of $11.0 million, (2) unrealized loss from mark-to-market of forward contracts of $10.3 million, and (3) unrealized loss from foreign currency translation adjustment of $1.2 million.
Previous wording
We primarily finance our operations through cash flow from operating activities. As of December 26, 2025 and December 27, 2024, we had cash, cash equivalents, and short-term investments of $960.8 million and $934.6 million, respectively, and no outstanding debt.
Current wording
We primarily finance our operations through cash flow from operating activities. As of March 27, 2026 and March 28, 2025, we had cash, cash equivalents, and short-term investments of $945.2 million and $950.7 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 3.8% and 3.9% for the three and six months ended December 26, 2025, respectively, and 4.2% and 4.4% for the three and six months ended December 27, 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 3.6% and 3.8% for the three and nine months ended March 27, 2026, respectively, and 4.1% and 4.3% for the three and nine months ended March 28, 2025, respectively.
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 six months ended December 26, 2025 as compared to the six months ended December 27, 2024 was primarily due to more efficient cash-favorable working capital changes mainly from an increase in inventories to support higher demand in the next quarter, partially offset by a decrease in trade receivables due to timing of collection and an increase in trade payables aligned with the increasing volume of inventories.
Current 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 27, 2026 as compared to the nine months ended March 28, 2025 was primarily due to (1) an increase in inventories to support higher demand in the next quarter, and (2) an increase in trade receivables due to timing of collection, partially offset by an increase in trade account payables aligned with the increasing volume of inventories.
Previous wording
Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The decrease in cash used in investing activities for the six months ended December 26, 2025 as compared to cash used in investing activities for the six months ended December 27, 2024 was primarily due to a decrease in net purchase of investment, offset by (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.
Current wording
Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The decrease in cash used in investing activities for the nine months ended March 27, 2026 as compared to cash used in investing activities for the nine months ended March 28, 2025 was primarily due to an increase in net proceeds of short-term investments, offset by an increase in capital expenditures related to the construction of a new manufacturing building at our Chonburi campus and support certain customers.
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 decrease in cash used in financing activities for the six months ended December 26, 2025 as compared to the six months ended December 27, 2024 was due to a decrease in share repurchases, offset by an increase in withholding tax related to net share settlement of restricted share units.
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 decrease in cash used in financing activities for the nine months ended March 27, 2026 as compared to the nine months ended March 28, 2025 was primarily due to a decrease in share repurchases, offset by an increase in withholding tax related to net share settlement of restricted share units.