Quarterly report [Sections 13 or 15(d)]

Revenue from Contracts with Customers

v3.25.3
Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Broadband $ 58,236  $ 32,275  $ 146,675  $ 87,157 
% of net revenue 46  % 40  % 44  % 32  %
Connectivity 18,968  12,726  59,944  35,700 
% of net revenue 15  % 16  % 18  % 13  %
Infrastructure 40,343  23,046  101,613  87,436 
% of net revenue 32  % 28  % 31  % 33  %
Industrial and multi-market 8,912  13,055  22,973  58,068 
% of net revenue 7  % 16  % 7  % 22  %
Total net revenue $ 126,459  $ 81,102  $ 331,205  $ 268,361 
Revenues from sales through the Company’s distributors accounted for 36% and 35% of net revenue for the three months ended September 30, 2025 and 2024, respectively. Revenues from sales through the Company’s distributors accounted for 35% and 42% of net revenue for the nine months ended September 30, 2025 and 2024, respectively.
Contract Liabilities
As of September 30, 2025 and December 31, 2024, customer contract liabilities were approximately $0.1 million 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 nine months ended September 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 nine months ended September 30, 2025 and 2024.
Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns
As of September 30, 2025 and December 31, 2024, obligations to customers consisting of estimates of price protection rights offered to the Company’s end customers totaled $33.8 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 September 30, 2025 were $13.3 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 decrease in accrued obligations to customers for price adjustments from approximately $43.0 million as of December 31, 2024 to approximately $13.3 million as of September 30, 2025, was due to timing of issuing credits to customers, partially offset by increased accrued obligations resulting from increased sales to distributors. The increase or decrease in revenue for the three and nine months ended September 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 September 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 September 30, 2025 and December 31, 2024, there were no impairment losses recorded on customer accounts receivable.