Quarterly report [Sections 13 or 15(d)]

Revenue from Contracts with Customers

v3.26.3
Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2026
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 (dollars in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Infrastructure $ 124,907  $ 40,343  $ 272,737  $ 101,613 
% of net revenue 57  % 32  % 52  % 31  %
Broadband 53,345  58,236  141,853  146,675 
% of net revenue 24  % 46  % 27  % 44  %
Connectivity 24,713  18,968  67,276  59,944 
% of net revenue 11  % 15  % 13  % 18  %
Industrial and multi-market 15,092  8,912  42,226  22,973 
% of net revenue 7  % 7  % 8  % 7  %
Total net revenue $ 218,057  $ 126,459  $ 524,092  $ 331,205 
Revenues from sales through the Company’s distributors accounted for 48% and 36% of net revenue for the three months ended September 30, 2026 and 2025, respectively. Revenues from sales through the Company’s distributors accounted for 48% and 35% of net revenue for the nine months ended September 30, 2026 and 2025, respectively.
Contract Liabilities
As of September 30, 2026 and December 31, 2025, customer contract liabilities were approximately $0.3 million and $4.2 million, respectively, and consisted primarily of advance payments received for which performance obligations have not been completed. The decrease in customer contract liabilities was due to recognition of revenue in the nine months ended September 30, 2026, which was previously in the contract liability balance as of the beginning of the period.
Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns
As of September 30, 2026 and December 31, 2025, obligations to customers consisting of estimates of price protection rights offered to the Company’s end customers totaled $30.4 million and $26.5 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, 2026 were $14.4 million and $0.3 million, respectively, and as of December 31, 2025 were $11.9 million and $0.2 million, respectively, and are included in accrued expenses and other current liabilities in the consolidated balance sheets (Note 7).
As of September 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025, there were no credit losses recorded on customer accounts receivable.