Quarterly report [Sections 13 or 15(d)]

Revenue from Contracts with Customers

v3.25.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Revenue by Market
The table below presents disaggregated net revenues by market (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Broadband $ 47,556  $ 21,827  $ 88,439  $ 54,882 
% of net revenue 44  % 24  % 43  % 29  %
Connectivity 20,741  13,263  40,976  22,974 
% of net revenue 19  % 14  % 20  % 12  %
Infrastructure 34,709  31,785  61,270  64,390 
% of net revenue 32  % 35  % 30  % 34  %
Industrial and multi-market 5,807  25,115  14,061  45,013 
% of net revenue 5  % 27  % 7  % 24  %
Total net revenue $ 108,813  $ 91,990  $ 204,746  $ 187,259 
Revenues from sales through the Company’s distributors accounted for 31% and 55% of net revenue for the three months ended June 30, 2025 and 2024, respectively. Revenues from sales through the Company’s distributors accounted for 33% and 45% of net revenue for the six months ended June 30, 2025 and 2024, respectively.
Contract Liabilities
As of June 30, 2025 and December 31, 2024, customer contract liabilities were approximately $14 thousand and $0.1 million, respectively, and consisted primarily of advanced payments received for which performance obligations have not been
completed. Revenue recognized in each of the six months ended June 30, 2025 and 2024 that was included in the contract liability balance as of the beginning of each of those respective periods was immaterial.
There were no material changes in the contract liabilities balance during the six months ended June 30, 2025 and 2024.
Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns
As of June 30, 2025 and December 31, 2024, obligations to customers consisting of estimates of price protection rights offered to the Company’s end customers totaled $39.5 million and $43.4 million, respectively, and are included in accrued price protection liability in the consolidated balance sheets. For activity in this account, including amounts included in net revenue, refer to Note 7.
Other obligations to customers representing estimates of price adjustments to be claimed by distributors upon sell-through of their inventory to their end customer and estimates of stock rotation returns to be claimed by distributors on products sold as of June 30, 2025 were $67.4 million and $0.3 million, respectively, and as of December 31, 2024 were $43.0 million and $0.3 million, respectively, and are included in accrued expenses and other current liabilities in the consolidated balance sheets (Note 7). The reason for the significant increase in accrued obligations to customers for price adjustments from approximately $43.0 million as of December 31, 2024 to approximately $67.4 million as of June 30, 2025, was due to an increase in sales to distributors which increased the corresponding accrued obligations to such customers and timing on issuing credit to customers. The increase or decrease in revenue for the three and six months ended June 30, 2025 and 2024 from net changes in transaction prices for amounts included in obligations to customers for price adjustments and estimates of stock rotation returns to be claimed by distributors as of the beginning of those respective periods was not material.
As of June 30, 2025 and December 31, 2024, right of return assets under customer contracts representing the estimates of product inventory the Company expects to receive from customers in stock rotation returns were approximately $0.1 million and $0.1 million, respectively. Right of return assets are included in inventory in the consolidated balance sheets.
As of June 30, 2025 and December 31, 2024, there were no impairment losses recorded on customer accounts receivable.