Xperi Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
XPER$5.69-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001788999-26-000013
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001788999-26-000018
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 72 previous paragraphs and 84 current paragraphs.
40 unchanged; 24 reworded; 19 added; 7 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 12 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 (19)
Current report
We generate revenue primarily through the licensing of our technologies and solutions and the monetization of our global, cross-screen advertising platform. While licensing revenue continues to represent a significant portion of our total revenue, advertising and related revenue has grown substantially in recent periods, driven by the expansion of our advertising ecosystem and ongoing enhancements to our advertising products and capabilities. For a discussion of our revenue recognition policies and a description of our revenue-generating activities, see Note 2—Revenueto the unaudited condensed consolidated financial statements.
Current report
Licensing and other revenue increased by $3.3 million, or 3%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by a $15.0 million increase in Connected Car revenue, mainly due to higher minimum guarantee (“MG”) revenue from HD Radio and music metadata. This increase was partially offset by a $6.5 million decrease in Consumer Electronics revenue, primarily due to the absence of certain MG and settlement revenue recognized in the prior-year period, and a $5.3 million decrease in Pay-TV revenue, primarily reflecting declines in core guide products and related subscription revenue, partially offset by growth in TiVo video-over-broadband (“IPTV”) solutions.
Current report
Advertising and related revenue increased by $5.3 million, or 54%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in ad impressions delivered, driven by continued expansion of TiVo One platform users, expanded advertising partnerships, and enhancements to our advertising products and services.
Current report
Advertising and related revenue increased by $6.6 million, or 42%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in ad impressions delivered, driven by continued expansion of TiVo One platform users, expanded advertising partnerships, and enhancements to our advertising products and services.
Current report
NM - Not meaningful. Amount is immaterial and no further disclosure is considered necessary.
Current report
NM - Not meaningful. Amount is immaterial and no further disclosure is considered necessary.
Current report
Cost of Licensing and Other Revenue, Excluding Depreciation and Amortization of Intangible Assets
Current report
Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, for the three months ended June 30, 2026 was $19.8 million, as compared to $22.1 million in the same period of the prior year, a decrease of $2.3 million, or 10%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, as well as reduced hardware-related costs following the discontinuation of hardware product sales by the end of 2025.
Current report
Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, for the six months ended June 30, 2026 was $42.0 million, as compared to $47.1 million in the same period of the prior year, a decrease of $5.1 million, or 11%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities and reduced hardware product-related costs.
Current report
Cost of Advertising and Related Revenue, Excluding Depreciation and Amortization of Intangible Assets
Current report
Cost of advertising and related revenue, excluding depreciation and amortization of intangible assets, consists primarily of advertising inventory and related costs, including revenue share, advertising serving fees and agency fees, third-party cloud services, content and data costs, and employee-related expenses.
Current report
Cost of advertising and related revenue, excluding depreciation and amortization of intangible assets, for the three months ended June 30, 2026 was $16.2 million, as compared to $11.4 million in the same period of the prior year, an increase of $4.8 million, or 42%. This increase was primarily attributable to higher advertising inventory and related costs incurred in connection with advertising and related revenue.
Current report
Cost of advertising and related revenue, excluding depreciation and amortization of intangible assets, for the six months ended June 30, 2026 was $25.0 million, as compared to $16.1 million in the same period of the prior year, an increase of $8.9 million, or 55%. This increase was primarily attributable to higher advertising inventory and related costs incurred in connection with advertising and related revenue.
Current report
R&D expenses for the six months ended June 30, 2026 was $48.9 million, as compared to $69.3 million in the same period of the prior year, a decrease of $20.4 million, or 29%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, reduced SBC expense, and lower spending on outside services.
Current report
Selling, general and administrative expenses for the three months ended June 30, 2026 were $41.5 million, as compared to $41.1 million in the same period of the prior year, an increase of $0.4 million, or 1%. The increase was primarily attributable to higher bonus and commission expenses, partially offset by lower employee salary-related costs resulting from restructuring activities and lower SBC expense.
Current report
Selling, general and administrative expenses for the six months ended June 30, 2025 were $83.3 million, as compared to $89.8 million in the same period of the prior year, a decrease of $6.5 million, or 7%. The decrease was primarily attributable to lower employee salary-related costs resulting from restructuring activities and lower SBC expense, partially offset by higher bonus and commission expenses.
Current report
Depreciation expense for the six months ended June 30, 2026 was $8.2 million, as compared to $6.4 million in the same period of the prior year, an increase of $1.8 million, or 29%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.
Current report
Interest expense on our debt did not change materially for the three and six months ended June 30, 2026, compared with the corresponding periods in the prior year.
Current report
Net cash provided by financing activities was $9.0 million for the six months ended June 30, 2026, primarily due to the receipt of $11.3 million of indemnification holdback proceeds in connection with the Perceive divestiture, net of $0.7 million relating to accreted interest classified within operating cash flows, and $2.1 million of proceeds from the issuance of common stock under our ESPP. These inflows were partially offset by $4.4 million of withholding tax payments related to the net share settlement of equity awards.
Removed paragraphs (7)
Previous report
We derive the majority of our revenue from licensing our technologies and solutions to customers. For our revenue recognition policy including descriptions of revenue-generating activities, refer to Note 2—Revenue of the Notes to the Condensed Consolidated Financial Statements (Unaudited).
Previous report
Revenue increased by $0.2 million, or approximately 0%, for the three months ended March 31, 2026, compared to the same period in the prior year. The increase was primarily driven by $8.5 million of growth in Connected Car and Media Platform revenue, partially offset by declines of $8.3 million in Consumer Electronics and Pay-TV revenue.
Previous report
Connected Car revenue increased by $4.8 million compared to the first quarter of 2025, primarily due to higher minimum guarantee (“MG”) revenue from HD Radio. Media Platform revenue increased by $3.7 million, driven mainly by higher revenue from advertising and increased middleware solutions revenue.
Previous report
Cost of Revenue, Excluding Depreciation and Amortization of Intangible Assets
Previous report
Cost of revenue, excluding depreciation and amortization of intangible assets, for the three months ended March 31, 2026 was $30.9 million, compared to $29.6 million for the same period in the prior year, representing an increase of $1.3 million, or 4%. The increase was primarily attributable to higher costs associated with advertising revenue.
Previous report
R&D expense for the three months ended March 31, 2026 was $27.1 million, compared to $39.5 million for the same period in the prior year, representing a decrease of $12.4 million, or 32%. The decrease was primarily driven by lower employee-related costs associated with restructuring activities and reduced SBC expense.
Previous report
The interest expense on debt was $0.7 million in the three months ended March 31, 2026 and remained constant when compared to the same period in the prior year.
Reworded paragraphs (24)
Previous wording
We are a leading media and entertainment technology company. Our technologies are integrated into consumer devices, connected cars, and a variety of media platforms worldwide, enabling our unique audiences to connect with entertainment content in a more intelligent, immersive, and personal way. As our audiences engage with content on our platform, we operate a global, cross-screen advertising solution that enables brands to reach millions of engaged consumers across our rapidly expanding digital entertainment ecosystem, driving increased value for our partners, customers, and consumers. We operate in one reportable business segment and group our revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Headquartered in Silicon Valley with operations around the world, we have approximately 1,380 employees and more than 35 years of operating experience.
Current wording
We are a leading media and entertainment technology company. Our technologies are integrated into consumer devices, connected cars, and a variety of media platforms worldwide, enabling our unique audiences to connect with entertainment content in a more intelligent, immersive, and personal way. As our audiences engage with content on our platforms, we operate a global, cross-screen advertising solution that enables brands to reach millions of engaged consumers across our rapidly expanding digital entertainment ecosystem, driving increased value for our partners, customers, and consumers. We operate in one reportable business segment and group our revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Headquartered in Silicon Valley with operations around the world, we have approximately 1,380 employees and more than 35 years of operating experience.
Previous wording
Macroeconomic conditions—including geopolitical conflicts in the Middle East, disruptions in global energy supplies, memory chip shortages, inflationary pressures, elevated interest rates, recessionary risks, volatility in financial and credit markets, changes in economic policy, reduced discretionary spending, tariffs, and global supply chain disruptions—have adversely affected, and may continue to adversely affect, our business and the businesses of our customers. While we closely monitor these developments and adjust our strategies where appropriate, the extent and duration of their impact on our business, operating results, and financial condition remain uncertain.
Current wording
Macroeconomic conditions, including geopolitical conflicts in the Middle East, disruptions in global energy supplies, memory chip shortages, inflationary pressures, elevated interest rates, recessionary risks, volatility in financial and credit markets, changes in economic policy, reduced discretionary spending, tariffs, and global supply chain disruptions, have adversely affected, and may continue to adversely affect, our business and the business of our customers. While we closely monitor these developments and adjust our strategies where appropriate, the extent and duration of their impact on our business, operating results, and financial condition remain uncertain.
Previous wording
In November 2025, we approved a restructuring plan designed to improve cost efficiency and better align our operating structure with our long-term strategies and prevailing market conditions. The plan involved a reduction of approximately 250 employees across all business and functional areas and became effective immediately. In connection with this plan, we incurred restructuring and related charges of $13.9 million and $0.3 million in the fourth quarter of 2025 and the first quarter of 2026, respectively, substantially all of which consisted of employee severance and related costs. As of March 31, 2026, approximately $1.0 million of restructuring charges remained accrued and are expected to be substantially settled by the end of the second quarter of 2026. Upon completion, we estimate that the reductions will generate annualized savings in the range of approximately $30 million to $35 million. For further information, refer to Note 14—Restructuringof the Notes to Condensed Consolidated Financial Statements.
Current wording
In November 2025, we approved a restructuring plan designed to improve cost efficiency and better align our operating structure with our long-term strategies and prevailing market conditions. The plan involved a reduction of approximately 250 employees across all business and functional areas and became effective immediately. In connection with this plan, we incurred restructuring and related charges of $13.9 million and $0.3 million in the fourth quarter of 2025 and the first half of 2026, respectively, substantially all of which consisted of employee severance and related costs. As of June 30, 2026, the remaining amount of accrued restructuring charges was immaterial. Upon completion, we estimate that the reductions will generate annualized savings in the range of approximately $30 million to $35 million. For further information, refer to Note 14—Restructuring of the notes to condensed consolidated financial statements.
Previous wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
These increases were partially offset by a $4.4 million decrease in Consumer Electronics revenue, primarily attributable to the absence of certain MG and settlement revenue recognized in the prior year, as well as memory-related challenges in certain end product categories. Pay‑TV revenue decreased by $3.9 million, reflecting declines in core guide products, consumer hardware, and related subscription revenue. This decline was partially offset by continued growth in TiVo video-over-broadband (“IPTV”) solutions.
Current wording
Licensing and other revenue increased by $2.1 million, or 1%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by a $19.7 million increase in Connected Car revenue, mainly due to higher MG revenue from HD Radio, and a $2.5 million increase within Media Platform primarily due to middleware licensing. These increases were partially offset by a $10.9 million decrease in Consumer Electronics revenue, primarily due to the absence of certain MG and settlement revenue recognized in the prior-year period, as well as memory-related challenges in certain end product categories, and a $9.2 million decrease in Pay-TV revenue, primarily reflecting declines in core guide products and related subscription revenue, partially offset by growth in IPTV.
Previous wording
Cost of revenue, excluding depreciation and amortization of intangible assets, consists primarily of employee-related costs, royalties paid to third parties, content and data costs, hosting fees, maintenance costs and an allocation of facilities costs, as well as service center and other expenses related to providing our offerings and non-recurring engineering services.
Current wording
Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, consists primarily of employee-related costs, content and data costs, royalties paid to third parties, hosting fees, service center expenses, maintenance costs and an allocation of facilities costs, as well as other expenses related to providing non-recurring engineering services.
Previous wording
Research and development (“R&D”) costs consist primarily of employee-related costs, stock-based compensation (“SBC”) expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as other costs related to patent applications and examinations, materials, supplies, and an allocation of facilities costs. Other than certain software development costs that are capitalized, all research and development costs are expensed as incurred.
Current wording
Research and development (“R&D”) expenses consist primarily of employee-related costs, stock-based compensation (“SBC”) expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as other costs related to patent applications and examinations, materials, supplies, and an allocation of facilities costs. Other than certain software development costs that are capitalized, all research and development costs are expensed as incurred.
Previous wording
Selling, general and administrative expenses for the three months ended March 31, 2026 were $41.8 million, compared to $48.7 million for the same period in the prior year, representing a decrease of $6.9 million, or 14%. The decrease was primarily attributable to lower employee-related costs resulting from restructuring activities, reduced SBC expense, and decreased information technology spending.
Current wording
R&D expenses for the three months ended June 30, 2026 was $21.8 million, as compared to $29.8 million in the same period of the prior year, a decrease of $8.0 million, or 27%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, reduced SBC expense, and lower spending on outside services.
Previous wording
The following table sets forth our SBC expense for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table sets forth our SBC expense for the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
We recognized SBC expense from restricted stock units and purchases made under our employee stock purchase plan (“ESPP”). The decrease of $4.3 million in SBC expense for the three months ended March 31, 2026, when compared to the same period of the prior year, was primarily driven by reduced employee headcount, and RSUs granted over time at lower valuations.
Current wording
We recognized SBC expense from restricted stock units (“RSUs”) and purchases made under our employee stock purchase plan (“ESPP”). The decreases of $3.5 million and $7.8 million in SBC expense for the three and six months ended June 30, 2026, respectively, when compared to the same periods of the prior year, was primarily driven by reduced employee headcount, RSUs granted over time at lower valuations, and lower expense for performance-based restricted stock awards.
Previous wording
We recognized depreciation expense for certain equipment, capitalized internal-use software, leasehold improvements, and buildings and improvements. Depreciation expense for the three months ended March 31, 2026 was $4.3 million, as compared to $2.9 million in the same period of the prior year, an increase of $1.4 million, or 47%. The increase was primarily driven by increased capitalized internal-use software costs over the past 12 months.
Current wording
We recognized depreciation expense for certain equipment, capitalized internal-use software, leasehold improvements, and buildings and improvements. Depreciation expense for the three months ended June 30, 2026 was $4.0 million, as compared to $3.4 million in the same period of the prior year, an increase of $0.6 million, or 15%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.
Previous wording
We recognized amortization expense for certain intangible assets we acquired in business combinations that are recognized separately from goodwill. Amortization expense for the three months ended March 31, 2026 was $8.0 million, as compared to $9.7 million in the same period of the prior year, a decrease of $1.7 million, or 17%. The decrease was primarily due to certain intangible assets becoming fully amortized over the past 12 months.
Current wording
We recognized amortization expense for certain intangible assets we acquired in business combinations that are recognized separately from goodwill. For the three and six months ended June 30, 2026, amortization expense decreased by $1.1 million and $2.7 million, or 12% and 14%, respectively, as compared to the same periods of the prior year. The decreases were primarily due to certain intangible assets becoming fully amortized over the preceding 12 months.
Previous wording
As a result of intangible assets we acquired in previous mergers and acquisitions, we anticipate that amortization expenses will continue to be a significant expense over the next several years. See Note 7—Intangible Assets, Net of the Notes to Condensed Consolidated Financial Statements (unaudited) for additional detail.
Current wording
As a result of intangible assets we acquired in previous mergers and acquisitions, we anticipate that amortization expenses will continue to be a significant expense over the next several years. See Note 7—Goodwill and Intangible Assets, Net of the Notes to Condensed Consolidated Financial Statements (Unaudited) for additional detail.
Previous wording
Interest and other income, net, was lower in the three months ended March 31, 2026, as compared to the same period in the prior year, principally due to foreign currency transaction losses recognized in the first quarter of 2026.
Current wording
Interest and other income, net, was lower in the three months ended June 30, 2026, as compared to the same period in the prior year, principally due to foreign currency transaction losses recognized during the second quarter of 2026.
Previous wording
For the three months ended March 31, 2026, we recorded an income tax expense of $10.1 million on a pretax income of $2.3 million, which resulted in an effective tax rate of 441.4%. The income tax expense for the three months ended March 31, 2026 was primarily related to foreign income taxes and foreign withholding taxes.
Current wording
For the three and six months ended June 30, 2026, we recorded an income tax expense of $4.8 million and $14.9 million on a pretax income of $3.3 million and $5.6 million, respectively; which resulted in an effective tax rate of 145.1% and 266.0%, respectively. The income tax expense for the three and six months ended June 30, 2026 was primarily related to foreign income taxes and foreign withholding taxes.
Previous wording
For the three months ended March 31, 2025, we recorded an income tax expense of $3.5 million on a pretax loss of $14.9 million, which resulted in an effective tax rate of (23.5)%. The income tax expense for the three months ended March 31, 2025 was primarily related to foreign withholding taxes and foreign income taxes.
Current wording
For the three and six months ended June 30, 2025, we recorded an income tax expense of $4.6 million and $8.1 million on a pretax loss of $10.1 million and $25.0 million, respectively; which resulted in an effective tax rate of (45.7)% and (32.5)%, respectively. The income tax expense for the three and six months ended June 30, 2025 was primarily related to foreign withholding taxes and foreign income taxes.
Previous wording
Our primary liquidity and capital resources are our cash and cash equivalents and borrowings available under an accounts receivable securitization program (the “AR Facility”) with PNC Bank, National Association and PNC Capital Markets LLC (“PNC”). Cash and cash equivalents were $70.4 million at March 31, 2026, a decrease of $26.4 million from $96.8 million at December 31, 2025. This decrease resulted primarily from cash used in operations of $18.0 million, $4.8 million of capital expenditures, including capitalized internal-use software costs, and $3.6 million in payments of withholding taxes on net share settlement of equity awards. For detailed information regarding the AR Facility, refer to “Long-Term Debt Financing” below. Subsequent to quarter end, on April 6, 2026, we received the $12.0 million indemnification holdback related to the Perceive Transaction completed in 2024.
Current wording
Our primary sources of liquidity and capital resources are our cash and cash equivalents and borrowings available under our accounts receivable securitization program (the “AR Facility”) with PNC Bank, National Association and PNC Capital Markets LLC (“PNC”). Cash and cash equivalents were $90.6 million as of June 30, 2026, compared to $96.8 million as of December 31, 2025, a decrease of $6.2 million. The decrease was primarily driven by $3.5 million of cash used in operating activities, $11.8 million of capital expenditures, including capitalized internal-use software costs, and $4.4 million of payments for withholding taxes related to the net share settlement of equity awards. These decreases were partially offset by $2.1 million of proceeds from the issuance of common stock under our ESPP and the receipt of a $12.0 million indemnification holdback payment in full related to the Perceive divestiture, of which $11.3 million was classified as a financing activity. For detailed information regarding the AR Facility, refer to “Long-Term Debt Financing” below.
Previous wording
In April 2024, our Board of Directors (the “Board”) authorized the repurchase of up to $100.0 million of our common stock (the “Program”). Under the Program, we may make repurchases, from time to time, through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions, or other means. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under the Program. As of March 31, 2026, we have repurchased a total of approximately 2.2 million shares of common stock, since inception of the Program, at an average price of $9.23 per share for a total cost of approximately $20.0 million. We did not repurchase any common stock during the three months ended March 31, 2026. As of March 31, 2026, the total remaining amount available for repurchase was $80.0 million. We may continue to execute authorized repurchases from time to time under the Program. There is no guarantee that such repurchases under the Program will enhance the value of our common stock.
Current wording
In April 2024, our Board of Directors (the “Board”) authorized the repurchase of up to $100.0 million of our common stock (the “Program”). Under the Program, we may make repurchases, from time to time, through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions, or other means. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under the Program. As of June 30, 2026, we have repurchased a total of approximately 2.2 million shares of common stock, since inception of the Program, at an average price of $9.23 per share for a total cost of approximately $20.0 million. We did not repurchase any common stock during the six months ended June 30, 2026. As of June 30, 2026, the total remaining amount available for repurchase was $80.0 million. We may continue to execute authorized repurchases from time to time under the Program. There is no guarantee that such repurchases under the Program will enhance the value of our common stock.
Previous wording
Net cash used in operating activities was $18.0 million for the three months ended March 31, 2026, primarily due to our net loss of $7.8 million being further adjusted by $28.2 million of changes in operating assets and liabilities, including an increase of $17.8 million in unbilled contracts receivable and payment of employee annual bonuses for 2025 performance, partially offset by non-cash items such as SBC expense of $7.8 million, amortization of intangible assets of $8.0 million, and depreciation expense of $4.3 million.
Current wording
Net cash used in operating activities was $3.5 million for the six months ended June 30, 2026, primarily due to our net loss of $9.3 million being further adjusted by $32.4 million of changes in operating assets and liabilities, including an increase of $22.1 million in unbilled contracts receivable and payment of employee annual bonuses for 2025 performance, partially offset by non-cash items such as SBC expense of $14.7 million, amortization of intangible assets of $16.1 million, and depreciation expense of $8.2 million.
Previous wording
Net cash used in operating activities was $22.3 million for the three months ended March 31, 2025, primarily due to our net loss of $18.4 million being further adjusted by $28.4 million of changes in operating assets and liabilities, including payment during the quarter of employee annual bonuses for 2024 performance, partially offset by non-cash items such as SBC expense of $12.1 million, amortization of intangible assets of $9.7 million, and depreciation expense of $2.9 million.
Current wording
Net cash used in operating activities was $12.2 million for the six months ended June 30, 2025, primarily due to our net loss of $33.1 million being further adjusted by $26.1 million of changes in operating assets and liabilities, including payment of employee annual bonuses for 2024 performance, partially offset by non-cash items such as SBC expense of $22.4 million, amortization of intangible assets of $18.9 million, and depreciation expense of $6.4 million.
Previous wording
Net cash used in investing activities was $4.8 million and $4.2 million for the three months ended March 31, 2026 and 2025, respectively, which was related to capital expenditures, including capitalized internal-use software.
Current wording
Net cash used in investing activities was $11.8 million and $9.0 million for the six months ended June 30, 2026 and 2025, respectively, which was related to capital expenditures, including capitalized internal-use software.
Previous wording
Our capital expenditures for property and equipment consist primarily of purchases of computer hardware and software, capitalized internal-use software, information systems, and production and test equipment. We expect capital expenditures in 2026 to be approximately $20.0 million. These expenditures are expected to be paid with existing cash and cash equivalents. There can be no assurance that current expectations will be realized, and plans are subject to change upon further review of our capital expenditure needs.
Current wording
Our capital expenditures for property and equipment consist primarily of capitalized internal-use software, purchases of computer hardware and software, information systems, and production and test equipment. We expect capital expenditures in 2026 to be approximately $25.0 million, an increase of approximately $5.0 million from our original expectation, due primarily to continued constraints in the memory market, which have increased the cost of planned capital equipment purchases, as well as incremental investments to reduce memory requirements in our software platforms in response to partner demand. We expect these expenditures to be funded with existing cash and cash equivalents. However, there can be no assurance that our current expectations will be realized, and our plans remain subject to change based on further review of our capital expenditure needs.
Previous wording
Net cash used in financing activities was $16.1 million for the three months ended March 31, 2025, primarily due to $5.3 million in payment of withholding taxes related to net share settlement of equity awards, and the $50.0 million voluntary repayment of the Vewd senior unsecured promissory note as described in “Long-Term Debt Financing” below, partially offset by $40.0 million in loan proceeds borrowed under the AR Facility with PNC.
Current wording
Net cash used in financing activities was $14.3 million for the six months ended June 30, 2025, primarily due to the $50.0 million voluntary repayment of the Vewd senior unsecured promissory note, and $6.3 million in payment of withholding taxes related to net share settlement of equity awards, partially offset by $40.0 million in loan proceeds borrowed under the AR Facility with PNC and $3.3 million in proceeds from the issuance of common stock under our ESPP.
Previous wording
During the three months ended March 31, 2026, there were no significant changes in our critical accounting estimates. For a discussion of our critical accounting estimates, see Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K.
Current wording
During the six months ended June 30, 2026, there were no significant changes in our critical accounting estimates. For a discussion of our critical accounting estimates, see Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Interest and other income, net, was lower in the six months ended June 30, 2026, as compared to the same period in the prior year, principally due to foreign currency transaction losses recognized during the six months ended June 30, 2026.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net cash used in financing activities was $3.6 million for the three months ended March 31, 2026, which reflected the payment of withholding taxes related to net share settlement of equity awards.