RAMBUS INC, 10-K filed on 2/18/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2023
Jan. 31, 2026
Jun. 30, 2025
Cover [Abstract]        
Document Type 10-K      
Document Annual Report true      
Document Period End Date Dec. 31, 2025      
Document Transition Report false      
Entity File Number 000-22339      
Entity Registrant Name RAMBUS INC      
Entity Incorporation, State or Country Code DE      
Entity Tax Identification Number 94-3112828      
Entity Address, Address Line One 4453 North First Street      
Entity Address, Address Line Two Suite 100      
Entity Address, City or Town San Jose      
Entity Address, State or Province CA      
Entity Address, Postal Zip Code 95134      
City Area Code 408      
Local Phone Number 462-8000      
Title of 12(b) Security Common Stock, $.001 Par Value      
Trading Symbol RMBS      
Security Exchange Name NASDAQ      
Entity Well-known Seasoned Issuer Yes      
Entity Voluntary Filers No      
Entity Current Reporting Status Yes      
Entity Interactive Data Current Yes      
Entity Filer Category Large Accelerated Filer      
Entity Small Business false      
Entity Emerging Growth Company false      
ICFR Auditor Attestation Flag true      
Document Financial Statement Error Correction [Flag] false      
Entity Shell Company false      
Entity Public Float       $ 5.2
Entity Common Stock, Shares Outstanding     107,790,732  
Documents Incorporated by Reference

Certain information is incorporated into Part III of this report by reference to the Proxy Statement for the Registrant’s annual meeting of stockholders to be held on or about April 23, 2026 to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K.

      
Entity Central Index Key 0000917273      
Amendment Flag false      
Current Fiscal Year End Date --12-31      
Document Fiscal Year Focus 2025      
Document Fiscal Period Focus FY      
Auditor Name KPMG LLP PricewaterhouseCoopers LLP    
Auditor Location Santa Clara, California San Jose, California    
Auditor Firm ID 185 238    
Auditor Opinion

We have audited the accompanying consolidated balance sheets of Rambus Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years then ended, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

      
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 182,826 $ 99,775
Marketable securities 579,005 382,023
Accounts receivable 137,476 122,813
Unbilled receivables 25,209 25,070
Inventories 44,098 44,634
Prepaids and other current assets 20,202 15,942
Total current assets 988,816 690,257
Intangible assets, net 10,171 17,059
Goodwill 286,812 286,812
Property and equipment, net 113,051 75,509
Operating lease right-of-use assets 17,112 21,454
Deferred tax assets 105,542 136,466
Income taxes receivable 3,282 109,947
Other assets 4,759 5,632
Total assets 1,529,545 1,343,136
Current liabilities:    
Accounts payable 35,915 18,522
Accrued salaries and benefits 22,044 19,193
Deferred revenue 29,980 19,903
EDA tools software licenses liability 14,884 8,438
Operating lease liabilities 6,310 5,617
Other current liabilities 11,441 10,139
Total current liabilities 120,574 81,812
Long-term operating lease liabilities 18,671 24,534
Long-term income taxes payable 1,393 109,383
Long-term EDA tools software licenses liability 20,908 1,588
Other long-term liabilities 3,574 5,127
Total liabilities 165,120 222,444
Commitments and contingencies (Notes 10, 13 and 19)
Stockholders’ equity:    
Convertible preferred stock, $.001 par value: Authorized: 5,000,000 shares; Issued and outstanding: no shares at December 31, 2025 and December 31, 2024 0 0
Common Stock, $.001 par value: Authorized: 500,000,000 shares; Issued and outstanding: 107,781,863 shares as of December 31, 2025 and 106,843,112 shares as of December 31, 2024 108 107
Additional paid in capital 1,287,646 1,275,505
Retained earnings (accumulated deficit) 76,795 (153,660)
Accumulated other comprehensive loss (124) (1,260)
Total stockholders’ equity 1,364,425 1,120,692
Total liabilities and stockholders’ equity $ 1,529,545 $ 1,343,136
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Stockholders’ equity:    
Convertible preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Convertible preferred stock, authorized shares 5,000,000 5,000,000
Convertible preferred stock, issued shares 0 0
Convertible preferred stock, outstanding shares 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized shares 500,000,000 500,000,000
Common stock, issued shares 107,781,863 106,843,112
Common stock, outstanding shares 107,781,863 106,843,112
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue:      
Revenue $ 707,630 $ 556,624 $ 461,117
Cost of revenue:      
Cost of product revenue 134,681 95,875 84,495
Cost of contract and other revenue 2,856 3,028 5,403
Amortization of acquired intangible assets 6,878 11,204 13,524
Cost of revenue 144,415 110,107 103,422
Gross profit 563,215 446,517 357,695
Operating expenses:      
Research and development 187,708 162,881 156,827
Sales, general and administrative 115,289 104,094 108,149
Amortization of acquired intangible assets 0 506 1,217
Restructuring and other charges 0 0 9,368
Gain on divestiture 0 0 (90,784)
Impairment of assets 0 1,071 10,045
Change in fair value of earn-out liability 0 (5,044) 9,234
Total operating expenses 302,997 263,508 204,056
Operating income 260,218 183,009 153,639
Interest income and other income (expense), net 23,111 18,450 11,327
Loss on fair value adjustment of derivatives, net 0 0 (240)
Gain on sale of non-marketable equity security 0 0 23,924
Interest expense (1,373) (1,416) (1,490)
Interest and other income (expense), net 21,738 17,034 33,521
Income before income taxes 281,956 200,043 187,160
Provision for (benefit from) income taxes 51,501 20,222 (146,744)
Net income $ 230,455 $ 179,821 $ 333,904
Net income per share:      
Basic net income per share $ 2.14 $ 1.67 $ 3.09
Diluted net income per share $ 2.11 $ 1.65 $ 3.01
Weighted-average shares used in per share calculations:      
Basic (in shares) 107,548 107,438 108,183
Diluted (in shares) 109,235 109,041 110,889
Product revenue      
Revenue:      
Revenue $ 347,754 $ 246,815 $ 224,632
Royalties      
Revenue:      
Revenue 279,378 226,172 150,110
Contract and other revenue      
Revenue:      
Revenue $ 80,498 $ 83,637 $ 86,375
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net Income (Loss) $ 230,455 $ 179,821 $ 333,904
Other comprehensive income (loss):      
Foreign currency translation adjustment 404 (230) 282
Unrealized gain on marketable securities, net of tax 732 239 3,412
Total comprehensive income $ 231,591 $ 179,830 $ 337,598
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive gain (loss)
Balance (in shares) at Dec. 31, 2022   107,610      
Balance at Dec. 31, 2022 $ 779,297 $ 108 $ 1,297,408 $ (513,256) $ (4,963)
Increase (Decrease) in Stockholders' Equity          
Net income 333,904     333,904  
Foreign currency translation adjustment 282       282
Unrealized gain on marketable securities, net of tax 3,412       3,412
Common stock issued under employee stock plans, net of withholding taxes (in shares)   1,698      
Common stock issued under employee stock plans, net of withholding taxes (29,378) $ 1 (29,379)    
Repurchase and retirement of common stock under repurchase program (in shares)   (1,859)      
Repurchase and retirement of common stock under repurchase program (100,526) $ (1) (5,783) (94,742)  
Stock-based compensation 45,011   45,011    
Issuance of common stock in connection with payments of earn-out related to the PLDA Group acquisition (in shares)   405      
Issuance of common stock in connection with payments of earn-out related to the PLDA Group acquisition 16,556   16,556    
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares)   284      
Exercise of the convertible senior note hedges in connection with the conversion of convertible senior notes and retirement of the corresponding shares (in shares)   (284)      
Exercise of the convertible senior note hedges in connection with the conversion of convertible senior notes and retirement of the corresponding shares     11,440 (11,440)  
Retirement of warrants (10,457)   (10,457)    
Balance (in shares) at Dec. 31, 2023   107,854      
Balance at Dec. 31, 2023 1,038,101 $ 108 1,324,796 (285,534) (1,269)
Increase (Decrease) in Stockholders' Equity          
Net income 179,821     179,821  
Foreign currency translation adjustment (230)       (230)
Unrealized gain on marketable securities, net of tax 239       239
Common stock issued under employee stock plans, net of withholding taxes (in shares)   1,023      
Common stock issued under employee stock plans, net of withholding taxes (35,875) $ 1 (35,876)    
Repurchase and retirement of common stock under repurchase program (in shares)   (2,211)      
Repurchase and retirement of common stock under repurchase program (113,699) $ (2) (65,750) (47,947)  
Stock-based compensation 44,879   44,879    
Issuance of common stock in connection with payments of earn-out related to the PLDA Group acquisition (in shares)   177      
Issuance of common stock in connection with payments of earn-out related to the PLDA Group acquisition 7,456   7,456    
Balance (in shares) at Dec. 31, 2024   106,843      
Balance at Dec. 31, 2024 1,120,692 $ 107 1,275,505 (153,660) (1,260)
Increase (Decrease) in Stockholders' Equity          
Net income 230,455     230,455  
Foreign currency translation adjustment 404       404
Unrealized gain on marketable securities, net of tax 732       732
Common stock issued under employee stock plans, net of withholding taxes (in shares)   1,060      
Common stock issued under employee stock plans, net of withholding taxes (35,011) $ 1 (35,012)    
Repurchase and retirement of common stock under repurchase program (in shares)   (121)      
Repurchase and retirement of common stock under repurchase program (7,114)   (7,114)    
Stock-based compensation 54,267   54,267    
Balance (in shares) at Dec. 31, 2025   107,782      
Balance at Dec. 31, 2025 $ 1,364,425 $ 108 $ 1,287,646 $ 76,795 $ (124)
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 230,455 $ 179,821 $ 333,904
Adjustments to reconcile net income to net cash provided by operating activities:      
Stock-based compensation 54,267 44,880 45,011
Depreciation 35,111 30,980 33,687
Amortization of intangible assets 6,878 11,710 14,741
Loss on fair value adjustment of derivatives, net 0 0 240
Deferred income taxes 29,590 (9,875) (145,350)
Gain on divestiture 0 0 (90,784)
Gain on sale of non-marketable equity security 0 0 (23,924)
Impairment of assets 0 1,071 10,045
Change in fair value of earn-out liability 0 (5,044) 9,234
Other 73 15 648
Change in operating assets and liabilities, net of effects of disposition:      
Accounts receivable (14,653) (39,835) (28,931)
Unbilled receivables 666 26,191 93,796
Prepaid expenses and other assets (3,992) (5,500) 2,763
Inventories 536 (8,480) (15,254)
Income taxes receivable [1] (12,280) (21,179) (87,704)
Accounts payable 11,397 580 (5,768)
Accrued salaries and benefits and other liabilities 6,548 571 41
Income taxes payable [1] 11,233 26,275 59,643
Deferred revenue 9,743 3,774 (5,048)
Operating lease liabilities (5,553) (5,356) (5,204)
Net cash provided by operating activities 360,019 230,599 195,786
Cash flows from investing activities:      
Purchases of property and equipment (26,842) (30,697) (23,240)
Purchases of marketable securities (666,294) (415,374) (434,155)
Maturities of marketable securities 470,026 280,829 175,854
Proceeds from sale of marketable securities 0 85,722 117,798
Proceeds from sale of non-marketable equity security 0 22,796 0
Proceeds from divestiture 0 0 106,347
Net cash used in investing activities (223,110) (56,724) (57,396)
Cash flows from financing activities:      
Proceeds received from issuance of common stock under employee stock plans 6,859 5,465 8,950
Payments of taxes related to net share settlement of equity awards (41,870) (41,340) (38,328)
Payments under installment payment arrangements (12,289) (16,350) (16,192)
Payments for settlement and repurchase of convertible senior notes 0 0 (10,381)
Payments for settlement of warrants 0 0 (10,697)
Payment of deferred purchase consideration from acquisition 0 (2,450) (2,450)
Repurchase and retirement of common stock, including prepayment under accelerated share repurchase program in 2024 and 2023 (7,114) (113,312) (100,525)
Net cash used in financing activities (54,414) (167,987) (169,623)
Effect of exchange rate changes on cash and cash equivalents 556 (880) 306
Net increase (decrease) in cash and cash equivalents 83,051 5,008 (30,927)
Cash, cash equivalents and restricted cash at beginning of year [2] 99,775 94,767 125,694
Cash, cash equivalents and restricted cash at end of year 182,826 99,775 [2] 94,767 [2]
Cash paid during the period for:      
Interest 0 0 73
Income taxes, net of refunds 24,992 27,132 25,932
Non-cash investing and financing activities:      
Property and equipment received and accrued in accounts payable and other liabilities 15,345 3,935 21,768
Issuance of common stock in connection with the payments of earn-out related to the PLDA Group acquisition 0 7,456 16,556
Operating lease right-of-use assets obtained in exchange for operating lease obligations $ 0 $ 4,799 $ 1,690
[1]

(1) Excludes non-cash write-down of income taxes receivable and release of income taxes payable of $118.9 million, including interest, related to South Korea withholding taxes in 2025. Refer to Note 18, “Income Taxes.”
[2]

(2) Includes a restricted cash balance of approximately $0.4 million as of December 31, 2022.
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2022
Statement of Cash Flows [Abstract]    
Non-cash write-down of income taxes receivable and release of income taxes payable $ 118.9  
Restricted cash   $ 0.4
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 230,455 $ 179,821 $ 333,904
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

During our last fiscal quarter, the below directors and/or officers, as defined in Rule 16a-1(f) under the Exchange Act, adopted a “Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K. Each of the Rule 10b5-1 trading arrangements were entered into during an open insider trading window and are intended to satisfy the affirmative defense in Rule 10b5-1(c)(1) under the Exchange Act and the Company’s policies regarding insider transactions.

 

Name

 

Title

 

Adopted or
Terminated

 

Adoption Date

 

Expiration Date

 

Total Number of
Shares of
Common Stock
Sold or to be Sold

 

Luc Seraphin

 

President and Chief Executive Officer

 

Adopted

 

November 11, 2025

 

November 11, 2026

 

Up to 139,621

 

Meera Rao

 

Director

 

Adopted

 

November 14, 2025

 

November 14, 2027

 

 

11,510

 

Desmond M. Lynch

 

Senior Vice President, Finance and Chief Financial Officer

 

Adopted

 

November 19, 2025

 

May 19, 2026

 

 

5,859

 

John Shinn

 

Senior Vice President and General Counsel

 

Adopted

 

December 2, 2025

 

June 2, 2026

 

Up to 17,276

 
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
Luc Seraphin [Member]  
Trading Arrangements, by Individual  
Name Luc Seraphin
Title President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 11, 2025
Expiration Date November 11, 2026
Arrangement Duration 365 days
Aggregate Available 139,621
Meera Rao [Member]  
Trading Arrangements, by Individual  
Name Meera Rao
Title Director
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 14, 2025
Expiration Date November 14, 2027
Arrangement Duration 730 days
Aggregate Available 11,510
Desmond M. Lynch [Member]  
Trading Arrangements, by Individual  
Name Desmond M. Lynch
Title Senior Vice President, Finance and Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 19, 2025
Expiration Date May 19, 2026
Arrangement Duration 181 days
Aggregate Available 5,859
John Shinn [Member]  
Trading Arrangements, by Individual  
Name John Shinn
Title Senior Vice President and General Counsel
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 2, 2025
Expiration Date June 2
Arrangement Duration 182 days
Aggregate Available 17,276
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

We have established policies and processes for assessing, identifying and managing material risk from cybersecurity threats and have integrated these processes into our overall risk management systems and processes. We routinely assess potential material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein.

We conduct periodic risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems and safeguards in place to manage such risks.

Following these risk assessments, if material risks and/or gaps are identified, we will re-design, implement and maintain reasonable safeguards to minimize identified risks; reasonably address any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate high-level personnel, including our Chief Information Security Officer who reports to our Chief Information Officer, to manage the risk assessment and mitigation process.

As part of our overall risk management system, we monitor and test our safeguards and train our employees on these safeguards, in collaboration with IT. Personnel at all levels and departments are made aware of cybersecurity issues through trainings.

We engage third party assessors/consultants in connection with our risk assessment processes. These service providers assist us to design and implement our cybersecurity policies and procedures, as well as to monitor and test our safeguards. We conduct vendor risk assessments before onboarding identified third-party service providers to review each such service provider’s cybersecurity practices and to assess factors such as access controls, incident response capabilities, overall cyber maturity and applicable certifications.

For additional information regarding whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect our company, including our business strategy, results of operations or financial condition, please refer to Item 1A, “Risk Factors,” in this Form 10-K.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

We have established policies and processes for assessing, identifying and managing material risk from cybersecurity threats and have integrated these processes into our overall risk management systems and processes. We routinely assess potential material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Cybersecurity risk oversight is a key responsibility of our Board of Directors. The Board administers this responsibility directly and through its Cyber Risk Committee, which provides oversight of cybersecurity risk exposure and the Company’s cybersecurity risk management program. Management is responsible for day‑to‑day assessment and management of material cybersecurity risks.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

Our Chief Information Security Officer also provides quarterly briefings to the Cyber Risk Committee regarding our company’s cybersecurity risks and activities, including any recent cybersecurity incidents of interest and related responses, cybersecurity systems testing, applicable activities of third parties, and the like. Our Cyber Risk Committee provides regular updates to the board of directors on such reports.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Cybersecurity risk oversight is a key responsibility of our Board of Directors. The Board administers this responsibility directly and through its Cyber Risk Committee, which provides oversight of cybersecurity risk exposure and the Company’s cybersecurity risk management program.
Cybersecurity Risk Role of Management [Text Block]

Cybersecurity risk oversight is a key responsibility of our Board of Directors. The Board administers this responsibility directly and through its Cyber Risk Committee, which provides oversight of cybersecurity risk exposure and the Company’s cybersecurity risk management program. Management is responsible for day‑to‑day assessment and management of material cybersecurity risks.

Our Chief Information Officer, Chief Information Security Officer and our Security Team, which includes Security Engineers, our Senior Manager of Cybersecurity and our Chief Information Security Officer, are primarily responsible to assess and manage our material risks from cybersecurity threats. Our Security Team has deep expertise in cybersecurity practices, including security threat evaluation, security operations, incident response, investigations, forensics, threat containment, data security vulnerability management, security policies and procedures, vulnerability scans, penetration testing, infrastructure security, network security, cloud security, identity and access management, role-based access, server and endpoint security, e-mail security, security awareness, logging, security governance and risk mitigations. Our Chief Information Security Officer

has over twenty years of experience in security leadership over all aspects of cybersecurity, including security operations, security incident management and cybersecurity governance, policies and procedures, as well as deep expertise in defense in depth, zero trust security architectures and security controls for perimeter, network, endpoint, application and data security layers.

Our Chief Information Security Officer and our Security Team oversee our cybersecurity policies and processes, including those described in “Risk Management and Strategy” above. The processes by which our Chief Information Security Officer and our Security Team are informed about and monitor the prevention, detection, mitigation and remediation of cybersecurity incidents include the following: regular penetration testing, independent third-party risk and security posture assessments, phishing tests (with trainings for the failed users), general cybersecurity and phishing training for all Rambus personnel and tabletop exercises to simulate threats and identify gaps.

In the event of a cybersecurity incident, our Chief Information Security Officer and our Security Team are equipped with a well-defined incident response plan to guide response actions. This incident response plan includes immediate actions to mitigate the impact of the incident, long-term strategies for remediation and prevention of future incidents, and provides for internal notification of the incident to functional areas, as well as senior leadership and the Cyber Risk and/or Audit Committees of our board of directors, as appropriate.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]

Our Chief Information Security Officer and our Security Team oversee our cybersecurity policies and processes, including those described in “Risk Management and Strategy” above. The processes by which our Chief Information Security Officer and our Security Team are informed about and monitor the prevention, detection, mitigation and remediation of cybersecurity incidents include the following: regular penetration testing, independent third-party risk and security posture assessments, phishing tests (with trainings for the failed users), general cybersecurity and phishing training for all Rambus personnel and tabletop exercises to simulate threats and identify gaps.

In the event of a cybersecurity incident, our Chief Information Security Officer and our Security Team are equipped with a well-defined incident response plan to guide response actions. This incident response plan includes immediate actions to mitigate the impact of the incident, long-term strategies for remediation and prevention of future incidents, and provides for internal notification of the incident to functional areas, as well as senior leadership and the Cyber Risk and/or Audit Committees of our board of directors, as appropriate.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Security Team has deep expertise in cybersecurity practices, including security threat evaluation, security operations, incident response, investigations, forensics, threat containment, data security vulnerability management, security policies and procedures, vulnerability scans, penetration testing, infrastructure security, network security, cloud security, identity and access management, role-based access, server and endpoint security, e-mail security, security awareness, logging, security governance and risk mitigations. Our Chief Information Security Officer

has over twenty years of experience in security leadership over all aspects of cybersecurity, including security operations, security incident management and cybersecurity governance, policies and procedures, as well as deep expertise in defense in depth, zero trust security architectures and security controls for perimeter, network, endpoint, application and data security layers.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

Cybersecurity risk oversight is a key responsibility of our Board of Directors. The Board administers this responsibility directly and through its Cyber Risk Committee, which provides oversight of cybersecurity risk exposure and the Company’s cybersecurity risk management program. Management is responsible for day‑to‑day assessment and management of material cybersecurity risks.

Our Chief Information Officer, Chief Information Security Officer and our Security Team, which includes Security Engineers, our Senior Manager of Cybersecurity and our Chief Information Security Officer, are primarily responsible to assess and manage our material risks from cybersecurity threats. Our Security Team has deep expertise in cybersecurity practices, including security threat evaluation, security operations, incident response, investigations, forensics, threat containment, data security vulnerability management, security policies and procedures, vulnerability scans, penetration testing, infrastructure security, network security, cloud security, identity and access management, role-based access, server and endpoint security, e-mail security, security awareness, logging, security governance and risk mitigations. Our Chief Information Security Officer

has over twenty years of experience in security leadership over all aspects of cybersecurity, including security operations, security incident management and cybersecurity governance, policies and procedures, as well as deep expertise in defense in depth, zero trust security architectures and security controls for perimeter, network, endpoint, application and data security layers.

Our Chief Information Security Officer and our Security Team oversee our cybersecurity policies and processes, including those described in “Risk Management and Strategy” above. The processes by which our Chief Information Security Officer and our Security Team are informed about and monitor the prevention, detection, mitigation and remediation of cybersecurity incidents include the following: regular penetration testing, independent third-party risk and security posture assessments, phishing tests (with trainings for the failed users), general cybersecurity and phishing training for all Rambus personnel and tabletop exercises to simulate threats and identify gaps.

In the event of a cybersecurity incident, our Chief Information Security Officer and our Security Team are equipped with a well-defined incident response plan to guide response actions. This incident response plan includes immediate actions to mitigate the impact of the incident, long-term strategies for remediation and prevention of future incidents, and provides for internal notification of the incident to functional areas, as well as senior leadership and the Cyber Risk and/or Audit Committees of our board of directors, as appropriate.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Formation and Business of the Company
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Formation and Business of the Company

1. Formation and Business of the Company

Rambus Inc. (“Rambus” or the “Company”) was incorporated in California in March 1990 and reincorporated in Delaware in March 1997. Rambus is a global semiconductor company providing industry-leading chips and silicon intellectual property (“IP”) for data-intensive computing systems, focusing on data center and artificial intelligence (“AI”) infrastructure.

With over three decades of advanced semiconductor design experience, the Company is at the forefront of enabling the next era of AI-driven computing, addressing the critical challenges of signal and power integrity at increasingly extreme data rates in the data center, edge and client markets. The Company is a leader in high-performance memory subsystems, offering a balanced and diverse portfolio of product, IP and patents that maximize performance and security in computationally intensive systems.

The Company provides industry-leading memory interface chips that enable the highest bandwidth, capacity and power efficient server memory modules, maximizing memory performance and reliability for the most demanding data-intensive workloads. Beyond the data center, server-class technologies are waterfalling into client devices to bring these same benefits to end-user systems, such as AI personal computers (“PCs”).

The Company generates revenue by selling its semiconductor chips and licensing its IP products and inventions to market-leading companies.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Financial Statement Presentation

The accompanying consolidated financial statements include the accounts of Rambus and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated on the accompanying consolidated financial statements. Rambus accounts for investments in entities where it owns more than 20% and has significant influence (but not control) over the investee's operations using the equity method. These investments are classified under other assets.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.

Reclassifications

Certain prior-year balances were reclassified to conform to the current year’s presentation. None of these reclassifications had an impact on reported net income or cash flows for any of the periods presented.

Revenue Recognition

The Company recognizes revenue upon transfer of control of promised goods and services in an amount that reflects the consideration it expects to receive in exchange for those goods and services. Goods and services that are distinct are accounted for as separate performance obligations.

Where an arrangement includes multiple performance obligations, the transaction price is allocated to these on a relative standalone selling price basis. The Company has established standalone selling prices for the majority of its distinct offerings - specifically, the same pricing methodology is consistently applied to all licensing arrangements; all service offerings are priced within tightly controlled bands and all contracts that include support and maintenance state a renewal rate or price that is

systematically enforced. For certain contracts, the Company utilizes the residual approach to estimate standalone selling prices primarily for service offerings sold to customers at highly variable pricing.

The Company’s revenue consists of product, royalties and contract and other revenue. Products primarily consist of memory interface chips sold directly and indirectly to module manufacturers and OEMs worldwide through multiple channels, including its direct sales force and distributors. Royalties revenue consists of patent and technology license royalties. Contract and other revenue consists of software license fees, engineering fees associated with integration of the Company’s technology solutions into its customers’ products and support and maintenance fees.

Product Revenue

Product revenue is recognized upon shipment of product to customers, net of accruals for estimated sales returns and allowances, and to distributors, net of accruals for price protection and rights of return on products unsold by the distributors. The Company transacts with direct customers primarily pursuant to standard purchase orders for delivery of products and generally allows customers to cancel or change purchase orders within limited notice periods prior to the scheduled shipment date.

Royalties Revenue

Rambus’ patent and technology licensing arrangements generally range between one year and ten years in duration and generally grant the licensee the right to use applicable portions of the Company’s entire IP portfolio as it evolves over time. These arrangements do not typically grant the licensee the right to terminate for convenience and where such rights exist, termination is prospective, with no refund of fees already paid or cancellation of fees already incurred by the licensee.

Patent and technology licensing arrangements result in fixed payments received over time, with guaranteed minimum payments on occasion, variable payments calculated based on the licensee’s sale or use of the IP, or a mix of fixed and variable payments.

•
For fixed-fee arrangements (including arrangements that include minimum guaranteed amounts), the Company recognizes revenue upon control over the underlying IP use right transferring to the licensee, net of the effect of significant financing components calculated using customer-specific, risk-adjusted lending rates typically ranging between 5% and 10%, with the related interest income recognized over time on an effective rate basis. Where a licensee has the contractual right to terminate a fixed-fee arrangement for convenience without any substantive penalty payable upon such termination, the Company recognizes revenue for the duration of the contract in which the parties have present enforceable rights and obligations.
•
For variable arrangements, the Company recognizes revenue based on an estimate of the licensee’s sale or usage of the IP during the periods the sale or usage occur, typically quarterly, with a true-up recorded, if required, when the Company receives the actual royalty report from the licensee.
•
The Company recognizes license renewal revenue commencing with the start of the renewal period.

Contract and Other Revenue

Contract and other revenue consists of software license fees and engineering fees associated with integration of the Company’s technology solutions into its customers’ products, and support and maintenance.

An initial software arrangement may consist of a term-based or perpetual license, significant software customization services and support and maintenance services that include post-implementation customer support and the right to unspecified software updates and enhancements on a when and if available basis. The Company recognizes license and customization services revenue at a point in time when final delivery is made or based on an over time model, depending on the nature and amount of customization. For the over time model, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation.

The Company recognizes support and maintenance revenue over the time those services are provided.

Significant Judgments

The Company applies significant judgment when determining the amount and timing of revenue from the Company’s contracts with customers, based on its estimate of the man-months necessary for completing development and customization services. The Company has adequate tools and controls in place, and substantial experience and expertise in timely and accurately tracking man-months incurred in completing customization and other professional services, and quantifying significant changes in estimates.

The Company recognizes revenue on variable fee licensing arrangements on the basis of estimated sales and usage, which the Company then adjusts to actual results when it receives the final related reports from its customers.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers. The Company records contract assets when revenue is recognized prior to invoicing, and a contract liability when revenue is recognized subsequent to invoicing. The contract assets are transferred to receivables when the billing occurs.

Cost of Revenue

Cost of revenue includes cost of professional services, materials, including cost of wafers processed by third-party foundries, costs associated with packaging and assembly, test and shipping, cost of personnel, including stock-based compensation, and equipment associated with manufacturing support, logistics and quality assurance, warranty costs, amortization of existing technology, write-down of inventories, amortization of production mask costs, overhead and an allocated portion of occupancy costs.

Leases

The Company leases office space, domestically and internationally, under operating leases. The Company’s leases have remaining lease terms generally between one year and seven years. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. The Company does not have any finance leases. The Company determines if an arrangement is a lease, or contains a lease, at inception. The Company assesses all relevant facts and circumstances in making the determination of the existence of a lease. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments and uses the implicit rate when readily determinable. Many of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the Company does not separate non-lease components from lease components. Operating lease costs are included in research and development and selling, general and administrative costs in the Company’s Consolidated Statements of Income.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill is not subject to amortization, but is subject to at least an annual assessment for impairment. The Company performs its impairment analysis of goodwill on an annual basis during the fourth quarter of the year unless conditions arise that warrant a more frequent evaluation.

When goodwill is assessed for impairment, the Company has the option to perform an assessment of qualitative factors of impairment (optional assessment) prior to necessitating a quantitative impairment test. Should the optional assessment be used for any given year, qualitative factors to consider for a reporting unit include: cost factors; financial performance; legal, regulatory, contractual, political, business or other factors; entity specific factors; industry and market considerations; macroeconomic conditions; and other relevant events and factors affecting the reporting unit. If the Company determines in the

qualitative assessment that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. For a reporting unit tested using a quantitative approach, the Company compares the fair value of the reporting unit with the carrying amount of the reporting unit, including goodwill. The fair value of the reporting unit is estimated using an income approach.

Under the income approach, the Company measures fair value of the reporting unit based on a projected cash flow method using a discount rate determined by its management which is commensurate with the risk inherent in its current business model. The Company’s discounted cash flow projections are based on annual financial forecasts developed internally by management for use in managing its business. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, then the amount of goodwill impairment will be the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

The Company performed its annual goodwill impairment analysis as of December 31, 2025 and determined that there was no impairment of its goodwill. For the years ended December 31, 2024 and 2023, the Company did not recognize any goodwill impairment charges.

Intangible Assets

Intangible assets are comprised of existing technology, customer contracts and contractual relationships, and other finite-lived and indefinite-lived intangible assets. Identifiable intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets received. Identifiable finite-lived intangible assets are amortized over the period of estimated benefit using the straight-line method, with estimated useful lives ranging from six months to ten years.

Acquired indefinite-lived intangible assets related to the Company’s in-process research and development (“IPR&D”) are capitalized and subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, the Company makes a separate determination of the useful life of the acquired indefinite-lived intangible assets and the related amortization is recorded as an expense over the estimated useful life of the specific projects. Indefinite-lived intangible assets are subject to at least an annual assessment for impairment, applying a fair-value based test. The Company first performs a qualitative assessment to determine whether it is more likely than not (more than 50% likelihood) that the indefinite-lived intangible assets are impaired. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination, the Company determines that it is more likely than not that the indefinite-lived intangible assets are impaired, then the Company performs a quantitative impairment test by comparing the fair value of the intangible assets with its carrying amount. The Company measures fair value of the indefinite-lived intangible assets under the income approach based on a projected cash flow method using a discount rate determined by its management which is commensurate with the risk inherent in its current business model. The Company’s discounted cash flow projections are based on its annual financial forecasts developed internally by management for use in managing its business. If the fair value of the indefinite-lived intangible assets exceeds its carrying value, the indefinite-lived intangible assets are not impaired and no further testing is required. If the implied fair value of the indefinite-lived intangible assets is less than the carrying value, the difference is recorded as an impairment loss.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventories are reduced for write-downs based on periodic reviews for evidence of excess or obsolete parts. The write-down is based on comparison between inventory on hand and estimated future sales for each specific product. Once written down, inventory write-downs are not reversed until the inventory is sold or scrapped. Inventory write-downs are also established when conditions indicate that the net realizable value is less than cost due to physical deterioration, obsolescence, changes in price level or other causes.

Property and Equipment

Property and equipment include computer software, computer equipment, leasehold improvements, machinery, and furniture and fixtures. Computer software, computer equipment, machinery, and furniture and fixtures are stated at cost and generally depreciated on a straight-line basis over an estimated useful life of three to seven years. Refer to Note 11, “Balance Sheet Details,” for additional information. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining terms of the leases. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the related gain or loss is included in the results from operations.

Finite-Lived Asset Impairment

The Company evaluates finite-lived assets (including property and equipment and intangible assets) for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted cash flows resulting from the use of the asset group and its eventual disposition. The Company’s estimates of future cash flows attributable to its asset groups require significant judgment based on its historical and anticipated results and are subject to many factors. Factors that the Company considers important which could trigger an impairment review include significant negative industry or economic trends, significant loss of clients and significant changes in the manner of its use of the acquired assets or the strategy for its overall business.

When the Company determines that the carrying value of an asset group may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company measures the potential impairment based on a projected discounted cash flow method using a discount rate determined by the Company to be commensurate with the risk inherent in the Company’s current business model. An impairment loss is recognized only if the carrying amount of the asset group is not recoverable and exceeds its fair value. The impairment charge is recorded to reduce the pre-impairment carrying amount of the assets based on the relative carrying amount of those assets, though not to reduce the carrying amount of an asset below its fair value. Different assumptions and judgments could materially affect the calculation of the fair value of the assets. During 2025, 2024 and 2023, the Company did not recognize any impairment of its finite-lived and indefinite-lived assets, except as described in Note 20, “Divestiture.”

Income Taxes

Income taxes are accounted for using an asset and liability approach, which requires the recognition of deferred tax assets and liabilities for expected future tax events that have been recognized differently in the Company’s consolidated financial statements and tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated. A valuation allowance is established when necessary to reduce deferred tax assets to the amount of future tax benefit that is more likely than not to be realized.

In addition, the calculation of the Company’s tax liabilities involves uncertainties in the application of complex tax regulations. As a result, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in its tax return. The company recognizes the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position.

Stock-Based Compensation and Equity Incentive Plans

The Company maintains stock plans covering a broad range of equity grants including stock options, nonvested equity stock and equity stock units and performance-based instruments. In addition, the Company sponsors an Employee Stock Purchase Plan (“ESPP”), whereby eligible employees are entitled to purchase common stock semi-annually, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The Company determines compensation expense associated with restricted stock units based on the fair value of its common stock on the date of grant.

Cash and Cash Equivalents

Cash equivalents are investments with original maturity of three months or less at the date of purchase. The Company maintains its cash balances with high-quality financial institutions. Cash equivalents are invested in highly rated, liquid money market securities, time deposits and certain U.S. government sponsored obligations.

Marketable Securities

Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, corporate bonds, commercial paper and notes, time deposits and money market funds that mature within three years. Available-for-sale securities are carried at fair value, based on quoted market prices, with the unrealized gains or losses reported, net of tax, in stockholders’ equity as part of accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, both of which are included in interest and other income, net. Realized gains and losses are recorded based on the specific identification method and are included in interest and other income, net. The Company reviews its investments in marketable securities for possible other than temporary impairments on a regular basis. If any loss on investment is believed to be a credit loss, a charge will be recognized in operations. In evaluating whether a credit loss on a debt security has occurred, the Company considers the following factors: 1) the Company’s intent to sell the security, 2) if the Company intends to hold the security, whether or not it is more likely than not that the Company will be required to sell the security before recovery of the security’s amortized cost basis and 3) even if the Company intends to hold the security, whether or not the Company expects the security to recover the entire amortized cost basis. Due to the high credit quality and short-term nature of the Company’s investments, there have been no material credit losses recorded to date. The classification of funds between short-term and long-term is based on whether the securities are available for use in operations or other purposes.

Fair Value of Financial Instruments

The fair value measurement statement defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires that fair value measurement be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company uses unadjusted quotes to determine fair value. The financial assets in Level 1 include money market funds.

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. The Company uses observable pricing inputs including benchmark yields, reported trades and broker/dealer quotes. The financial assets in Level 2 include U.S. government bonds and notes, and corporate bonds, commercial paper and notes.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance.

The Company does not have any financial assets or liabilities in Level 3 as of December 31, 2025 and 2024. Refer to Note 9, “Fair Value of Financial Instruments,” for additional information.

The carrying value of cash equivalents, accounts receivable and accounts payable approximate their fair values due to their relatively short maturities as of December 31, 2025 and 2024.

The Company’s financial instruments are measured and recorded at fair value, except for equity method investments and convertible notes. Marketable securities are comprised of available-for-sale securities that are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity, net of tax. Fair value of the marketable securities is determined based on quoted market prices.

The Company’s non-financial assets, such as goodwill, intangible assets and property and equipment, are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment charge is recognized. The Company’s equity method investments were initially recognized at cost, and the carrying amount was increased or decreased to recognize the Company’s share of the profit or loss of the investee after the date of acquisition. The Company’s share of the investee’s profit or loss was recognized in interest and other income (expense), net in the Company’s Consolidated Statements of Income. Distributions received from an investee reduced the carrying amount of the investment.

Research and Development

Costs incurred in research and development, which include engineering expenses, such as salaries and related benefits, stock-based compensation, depreciation, professional services and overhead expenses related to the general development of the Company’s products, are expensed as incurred.

Computation of Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units, and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method, or the if-converted method for the in-the-money conversion benefit feature of the 2023 Notes. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potentially dilutive common shares are included in the computation of diluted earnings per share amount when a net loss is reported.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities. Other comprehensive income (loss), net of tax, is presented in the Consolidated Statements of Comprehensive Income.

Credit Concentration

As of December 31, 2025 and 2024, the Company’s cash, cash equivalents and marketable securities were invested with various financial institutions in the form of corporate bonds, commercial paper and notes, money market funds, time deposits, U.S. Treasuries and U.S. Government Agencies. The Company’s exposure to market risk for changes in interest rates relates primarily to its investment portfolio. The Company places its investments with high-credit issuers and, by investment policy, attempts to limit the amount of credit exposure to any one issuer. As stated in the Company’s investment policy, it will ensure the safety and preservation of the Company’s invested funds by limiting default risk and market risk. The Company has certain investments denominated in foreign currencies and therefore is subject to foreign exchange risk from these assets. The Company holds cash, cash equivalents and marketable securities in excess of federally insured limits.

The Company mitigates default risk by investing in high credit quality securities and by positioning its portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor. The portfolio includes only marketable securities with active secondary or resale markets to enable portfolio liquidity.

The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Refer to Note 7, “Segments and Major Customers,” for additional information.

The Company’s unbilled receivables are collected from customers located in the U.S. and internationally. Refer to Note 4, “Revenue Recognition,” for additional information.

Foreign Currency Translation and Re-Measurement

The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive gain (loss) in the Company’s Consolidated Statements of Stockholders’ Equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency re-measure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and non-monetary assets and liabilities at historical rates. Additionally, foreign currency transaction gains and losses are included in interest income and other (income) expense, net, in the Company’s Consolidated Statements of Income and were not material in the periods presented.
v3.25.4
Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This guidance requires disclosure of incremental segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. In addition, this ASU requires that all existing annual disclosures about segment profit or loss must be provided on an interim basis and clarifies that single reportable segment entities are subject to the disclosure requirement under Topic 280 in its entirety. This ASU is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual reporting periods beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2024 on a retrospective basis. Refer to Note 7, “Segments and Major Customers,” for additional information.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires additional disclosures related to rate reconciliation, income taxes paid and other disclosures. For each annual period presented, public business entities are required to 1) disclose specific categories in the rate reconciliation and 2) provide additional information for reconciling items that meet a quantitative threshold. In addition, this ASU requires all reporting entities to disclose on an annual basis the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as the amount of income taxes paid disaggregated by individual jurisdictions which meet a quantitative threshold. This ASU is effective for annual reporting periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis, with retrospective application permitted. The Company adopted this guidance for the year ended December 31, 2025 on a prospective basis. Refer to Note 18, “Income Taxes,” for additional information.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”).” This guidance requires public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement expense caption, as applicable. The ASU also requires a qualitative description of the amounts remaining in expense captions that are not separately disaggregated quantitatively, as well as disclosure of the total amount of selling expenses and, in annual reporting periods, the entity’s

definition of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” This guidance provides public business entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. This ASU is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. The amendments in this ASU should be applied on a prospective basis. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements,” which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for annual reporting years beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its interim consolidated financial statements and related disclosures.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

4. Revenue Recognition

Contract Balances

The contract assets are primarily related to the Company’s fixed fee IP licensing arrangements and rights to consideration for performance obligations delivered but not billed as of December 31, 2025.

The Company’s contract balances were as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Unbilled receivables

 

$

28,438

 

 

$

29,104

 

Deferred revenue

 

 

31,601

 

 

 

21,852

 

 

During the years ended December 31, 2025 and December 31, 2024, the Company recognized $19.7 million and $17.5 million, respectively, of revenue that was included in deferred revenue as of December 31, 2024 and December 31, 2023, respectively.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $34.7 million as of December 31, 2025, which the Company primarily expects to recognize over the next two years.
v3.25.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share

5. Earnings Per Share

The following table sets forth the computation of basic and diluted net income per share:

 

 

Years Ended December 31,

 

(In thousands, except per share amounts)

 

2025

 

 

2024

 

 

2023

 

Net income per share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

230,455

 

 

$

179,821

 

 

$

333,904

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

 

107,548

 

 

 

107,438

 

 

 

108,183

 

Effect of potentially dilutive common shares

 

 

1,687

 

 

 

1,603

 

 

 

2,706

 

Weighted-average common shares outstanding - diluted

 

 

109,235

 

 

 

109,041

 

 

 

110,889

 

Basic net income per share

 

$

2.14

 

 

$

1.67

 

 

$

3.09

 

Diluted net income per share

 

$

2.11

 

 

$

1.65

 

 

$

3.01

 

 

In the first quarter of 2023, the Company settled the conversion of the remaining $10.4 million aggregate principal amount of its 1.375% Convertible Senior Notes due 2023 (“the 2023 Notes”). Accordingly, the Company delivered approximately 0.3 million shares of its common stock as settlement related to the in-the-money conversion feature of the 2023 Notes and received an equal amount of shares due to the settlement of the convertible senior note hedges. The Company included dilutive instruments exercised during the period in the denominator of diluted earnings per share for the period prior to exercise, and thereafter, the Company included the actual shares issued in the denominator for both basic and diluted earnings per share. Refer to Note 12, “Convertible Notes,” for additional information.

v3.25.4
Intangible Assets, Net
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net

6. Intangible Assets, Net

The components of the Company’s intangible assets as of December 31, 2025 and December 31, 2024 were as follows:

 

 

 

 

As of December 31, 2025

 

(In thousands, except useful life)

 

Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

Existing technology

 

3 to 10 years

 

$

287,301

 

 

$

(277,130

)

 

$

10,171

 

Customer contracts and contractual relationships

 

0.5 to 10 years

 

 

37,496

 

 

 

(37,496

)

 

 

—

 

Non-compete agreements and trademarks

 

3 years

 

 

300

 

 

 

(300

)

 

 

—

 

Total intangible assets

 

 

 

$

325,097

 

 

$

(314,926

)

 

$

10,171

 

 

 

 

 

 

As of December 31, 2024

 

(In thousands, except useful life)

 

Useful Life

 

Gross Carrying
Amount (1)

 

 

Accumulated
Amortization (1)

 

 

Net Carrying
Amount

 

Existing technology

 

3 to 10 years

 

$

288,001

 

 

$

(270,954

)

 

$

17,047

 

Customer contracts and contractual relationships

 

0.5 to 10 years

 

 

37,496

 

 

 

(37,484

)

 

 

12

 

Non-compete agreements and trademarks

 

3 years

 

 

300

 

 

 

(300

)

 

 

—

 

Total intangible assets

 

 

 

$

325,797

 

 

$

(308,738

)

 

$

17,059

 

 

(1)
The IPR&D projects acquired in connection with the acquisition of PLDA in 2021 were completed during the fourth quarter of 2024. The related intangible assets of $7.4 million were reclassified as existing technology and are being amortized over their expected useful life of five years. During the year ended December 31, 2024, the amortization for the reclassified assets was not material.

Amortization expense for intangible assets for the years ended December 31, 2025, 2024 and 2023 was $6.9 million, $11.7 million and $14.7 million, respectively.

The estimated future amortization expense of intangible assets as of December 31, 2025 was as follows (in thousands):

 

Years Ending December 31:

 

Amount

 

2026

 

$

5,530

 

2027

 

 

1,928

 

2028

 

 

1,480

 

2029

 

 

1,233

 

Total intangible assets

 

$

10,171

 
v3.25.4
Segments and Major Customers
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segments and Major Customers

7. Segments and Major Customers

Operating segments are based upon the Company’s internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker (“CODM”) to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.

The Company has determined its CODM to be the Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of December 31, 2025, the Company has a single operating and reportable segment.

The CODM uses net income to assess segment performance, allocate resources and manage the business on a consolidated basis. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the years ended December 31, 2025, 2024 and 2023, respectively, were as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Total revenue

 

$

707,630

 

 

$

556,624

 

 

$

461,117

 

Adjusted cost of revenue (1)

 

 

(136,791

)

 

 

(98,368

)

 

 

(89,322

)

Adjusted research and development (2)

 

 

(167,048

)

 

 

(146,431

)

 

 

(140,793

)

Adjusted sales, general and administrative (3)

 

 

(82,322

)

 

 

(76,038

)

 

 

(76,669

)

Other segment items:

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses (4)

 

 

(54,267

)

 

 

(44,879

)

 

 

(45,011

)

Amortization of acquired intangible assets (4)

 

 

(6,878

)

 

 

(11,710

)

 

 

(14,741

)

Impairment of assets

 

 

—

 

 

 

(1,071

)

 

 

(10,045

)

Acquisition & divestiture-related costs (5)

 

 

(106

)

 

 

(162

)

 

 

(1,625

)

Interest and other income (expense), net

 

 

21,738

 

 

 

17,034

 

 

 

33,521

 

Change in fair value of earn-out liability

 

 

—

 

 

 

5,044

 

 

 

(9,234

)

Restructuring charges

 

 

—

 

 

 

—

 

 

 

(9,368

)

Gain on divestiture

 

 

—

 

 

 

—

 

 

 

90,784

 

Other (6)

 

 

—

 

 

 

—

 

 

 

(1,454

)

Provision for (benefit from) income taxes

 

 

(51,501

)

 

 

(20,222

)

 

 

146,744

 

Net income

 

$

230,455

 

 

$

179,821

 

 

$

333,904

 

 

(1)
Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.
(2)
Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.
(3)
Excludes stock-based compensation expenses, acquisition-related costs and retention bonus expense related to acquisitions.
(4)
The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
(5)
The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and divestitures and have no direct correlation to the Company’s ongoing operating results.
(6)
Includes expense on abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the years ended December 31, 2025, 2024 and 2023:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Payroll and benefits

 

$

154,943

 

 

$

129,228

 

 

$

123,056

 

Variable research and development expenses (1)

 

 

27,097

 

 

 

27,342

 

 

 

28,228

 

Professional fees

 

 

19,889

 

 

 

20,055

 

 

 

22,148

 

Temporary labor services and consulting expenses

 

 

12,634

 

 

 

14,264

 

 

 

13,577

 

Facilities costs

 

 

12,542

 

 

 

11,853

 

 

 

12,347

 

Amortization and depreciation

 

 

11,916

 

 

 

10,076

 

 

 

10,144

 

Other expenses

 

 

10,349

 

 

 

9,651

 

 

 

7,962

 

Total adjusted operating expenses

 

$

249,370

 

 

$

222,469

 

 

$

217,462

 

 

(1)
Includes primarily software tools, software licenses and prototyping costs.

The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets.

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of December 31, 2025 and 2024, respectively, was as follows:

 

 

As of December 31,

 

Customer

 

2025

 

 

2024

 

Customer 1

 

 

35

%

 

 

39

%

Customer 2

 

 

22

%

 

 

17

%

Revenue from the Company’s major customers representing 10% or more of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively, was as follows:

 

 

Years Ended December 31,

 

Customer

 

2025

 

 

2024

 

 

2023

 

Customer A

 

 

23

%

 

 

23

%

 

 

27

%

Customer B

 

 

18

%

 

 

17

%

 

 

18

%

Customer C

 

*

 

 

 

12

%

 

*

 

 

* Customer accounted for less than 10% of total revenue in the period.

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

South Korea

 

$

329,256

 

 

$

197,515

 

 

$

152,328

 

Singapore

 

 

163,821

 

 

 

67,318

 

 

 

53,327

 

United States

 

 

124,101

 

 

 

201,466

 

 

 

176,821

 

Other

 

 

90,452

 

 

 

90,325

 

 

 

78,641

 

Total

 

$

707,630

 

 

$

556,624

 

 

$

461,117

 

 

As of December 31, 2025, of the $113.1 million of total property and equipment, approximately $108.0 million was located in the United States, $2.5 million was located in India and $2.6 million was located in other foreign locations. As of December 31, 2024, of the $75.5 million of total property and equipment, approximately $70.4 million was located in the United States, $2.6 million was located in India and $2.5 million was located in other foreign locations.
v3.25.4
Marketable Securities
 12 Months Ended
Dec. 31, 2025
Debt Securities, Available-for-Sale [Abstract]  
Marketable Securities

8. Marketable Securities

All cash equivalents and marketable securities are classified as available-for-sale. Total cash, cash equivalents and marketable securities are summarized as follows:

 

 

As of December 31, 2025

 

(In thousands)

 

Fair Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

Cash

 

$

67,833

 

 

$

67,833

 

 

$

—

 

 

$

—

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

47,277

 

 

 

47,277

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

16,936

 

 

 

16,932

 

 

 

4

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

50,780

 

 

 

50,780

 

 

 

3

 

 

 

(3

)

Total cash equivalents

 

 

114,993

 

 

 

114,989

 

 

 

7

 

 

 

(3

)

Total cash and cash equivalents

 

 

182,826

 

 

 

182,822

 

 

 

7

 

 

 

(3

)

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

 

15,540

 

 

 

15,540

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

161,361

 

 

 

161,231

 

 

 

180

 

 

 

(50

)

Non-U.S. Government bonds and notes

 

 

3,983

 

 

 

3,980

 

 

 

3

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

398,121

 

 

 

397,755

 

 

 

429

 

 

 

(63

)

Total marketable securities

 

 

579,005

 

 

 

578,506

 

 

 

612

 

 

 

(113

)

Total cash, cash equivalents and marketable securities

 

$

761,831

 

 

$

761,328

 

 

$

619

 

 

$

(116

)

 

 

As of December 31, 2024

 

(In thousands)

 

Fair Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

Cash

 

$

87,415

 

 

$

87,415

 

 

$

—

 

 

$

—

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

6,025

 

 

 

6,025

 

 

 

—

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

6,335

 

 

 

6,334

 

 

 

1

 

 

 

—

 

Total cash equivalents

 

 

12,360

 

 

 

12,359

 

 

 

1

 

 

 

—

 

Total cash and cash equivalents

 

 

99,775

 

 

 

99,774

 

 

 

1

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

 

12,870

 

 

 

12,870

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

220,056

 

 

 

220,034

 

 

 

184

 

 

 

(162

)

Corporate bonds, commercial paper and notes

 

 

149,097

 

 

 

149,085

 

 

 

121

 

 

 

(109

)

Total marketable securities

 

 

382,023

 

 

 

381,989

 

 

 

305

 

 

 

(271

)

Total cash, cash equivalents and marketable securities

 

$

481,798

 

 

$

481,763

 

 

$

306

 

 

$

(271

)

 

Available-for-sale securities are reported at fair value on the balance sheets and were classified along with cash as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Cash

 

$

67,833

 

 

$

87,415

 

Cash equivalents

 

 

114,993

 

 

 

12,360

 

Total cash and cash equivalents

 

 

182,826

 

 

 

99,775

 

Marketable securities

 

 

579,005

 

 

 

382,023

 

Total cash, cash equivalents and marketable securities

 

$

761,831

 

 

$

481,798

 

 

The Company continues to invest in highly rated, liquid debt securities. The Company holds all of its marketable securities as available-for-sale, marks them to market and regularly reviews its portfolio to ensure adherence to its investment policy and to monitor individual investments for risk analysis, proper valuation and impairment.

The estimated fair value and gross unrealized losses of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024 are as follows:

 

 

Fair Value

 

 

Gross Unrealized Losses

 

(In thousands)

 

December 31,
2025

 

 

December 31,
2024

 

 

December 31,
2025

 

 

December 31,
2024

 

Less than 12 months

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government bonds and notes

 

$

38,473

 

 

$

83,162

 

 

$

(48

)

 

$

(162

)

Corporate bonds, commercial paper and notes

 

 

88,597

 

 

 

48,360

 

 

 

(65

)

 

 

(109

)

Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months

 

 

127,070

 

 

 

131,522

 

 

 

(113

)

 

 

(271

)

12 months or greater

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government bonds and notes

 

 

1,692

 

 

 

—

 

 

 

(2

)

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

1,660

 

 

 

—

 

 

 

(1

)

 

 

—

 

Total marketable securities in a continuous unrealized loss position for 12 months or greater

 

 

3,352

 

 

 

—

 

 

 

(3

)

 

 

—

 

Total cash equivalents and marketable securities in a continuous unrealized loss position

 

$

130,422

 

 

$

131,522

 

 

$

(116

)

 

$

(271

)

 

The gross unrealized losses as of December 31, 2025 and 2024 were not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized losses can be primarily attributed to a combination of market conditions as well as the demand for and duration of the U.S. government-sponsored obligations and corporate bonds, commercial paper and notes. The Company reasonably believes that there is no need to sell these investments and that it can recover the amortized cost of these investments. The Company has found no evidence of impairment due to credit losses in its portfolio. Therefore, these unrealized losses were recorded in other comprehensive income. The Company cannot provide any assurance that its portfolio of cash, cash equivalents and marketable securities will not be impacted by adverse conditions in the financial markets, which may require the Company in the future to record an impairment charge for credit losses which could adversely impact its financial results.

The contractual maturities of cash equivalents (excluding money market funds which have no maturity) and marketable securities are summarized as follows:

 

(In thousands)

 

December 31,
2025

 

Due in less than one year

 

$

514,036

 

Due from one year through three years

 

 

132,685

 

Total

 

$

646,721

 

 

Refer to Note 9, “Fair Value of Financial Instruments,” for a discussion regarding the fair value of the Company’s cash equivalents and marketable securities.
v3.25.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

9. Fair Value of Financial Instruments

The following table presents the financial instruments and liabilities that are carried at fair value and summarizes their valuation by the respective pricing levels detailed in Note 2, “Summary of Significant Accounting Policies,” as of December 31, 2025 and 2024:

 

 

As of December 31, 2025

 

(In thousands)

 

Total

 

 

Quoted Market
Prices in Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

47,277

 

 

$

47,277

 

 

$

—

 

 

$

—

 

Time deposits

 

 

15,540

 

 

 

—

 

 

 

15,540

 

 

 

—

 

U.S. Government bonds and notes

 

 

178,297

 

 

 

—

 

 

 

178,297

 

 

 

—

 

Non-U.S. Government bonds and notes

 

 

3,983

 

 

 

—

 

 

 

3,983

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

448,901

 

 

 

—

 

 

 

448,901

 

 

 

—

 

Total assets carried at fair value

 

$

693,998

 

 

$

47,277

 

 

$

646,721

 

 

$

—

 

 

 

As of December 31, 2024

 

(In thousands)

 

Total

 

 

Quoted Market
Prices in Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6,025

 

 

$

6,025

 

 

$

—

 

 

$

—

 

Time deposits

 

 

12,870

 

 

 

—

 

 

 

12,870

 

 

 

—

 

U.S. Government bonds and notes

 

 

220,056

 

 

 

—

 

 

 

220,056

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

155,432

 

 

 

—

 

 

 

155,432

 

 

 

—

 

Total assets carried at fair value

 

$

394,383

 

 

$

6,025

 

 

$

388,358

 

 

$

—

 

 

The Company’s liabilities related to earn-out consideration are classified within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs. The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value, as of December 31, 2024:

 

 

Years Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

Balance as of beginning of period

 

$

12,500

 

 

$

14,800

 

Change in fair value of earn-out liability due to remeasurement

 

 

(5,044

)

 

 

9,234

 

Change in fair value of earn-out liability due to achievement of revenue target

 

 

(7,456

)

 

 

(11,534

)

Balance as of end of period

 

$

—

 

 

$

12,500

 

 

For the years ended December 31, 2024 and 2023, the changes in the fair value of the earn-out liability related to the 2021 acquisition of PLDA, which was subject to certain revenue targets of the acquired business for a period of three years from the date of acquisition, and which was settled annually in shares of the Company’s common stock based on the fair value of that common stock fixed at the time the Company acquired PLDA. The fair value of the earn-out liability was remeasured each quarter, depending on the acquired business’s revenue performance relative to target over the applicable period, and adjusted to reflect changes in the per share value of the Company’s common stock. The Company classified its liability for the contingent earn-out liability related to the PLDA acquisition within Level 3 of the fair value hierarchy because the fair value calculation included significant unobservable inputs, such as revenue forecast, revenue volatility, equity volatility and weighted average cost of capital. During the years ended December 31, 2024 and 2023, the Company remeasured the fair value of the earn-out

liability, which resulted in a reduction of $5.0 million and additional expense of $9.2 million, respectively, in the Company’s Consolidated Statements of Income. The final earn-out was achieved in the third quarter of 2024 and fully paid during the fourth quarter of 2024.

The Company monitors its investments for impairment and records appropriate reductions in carrying value when necessary. During the years ended December 31, 2025 and 2024, the Company recorded no other-than-temporary impairment charges on its investments.

In 2018, the Company made an investment in a non-marketable equity security of a private company. This investment was accounted for under the equity method of accounting, and the Company accounted for its equity method share of the income on a quarterly basis. During the fourth quarter of 2023, the Company sold its 25.0% ownership share in the equity investment for approximately $25.0 million, which was included, net of withholding taxes paid, in prepaid and other current assets in the Company’s Consolidated Balance Sheet as of December 31, 2023. The Company recognized a gain of $25.0 million related to the sale of the Company’s 25.0% ownership share in the non-marketable equity security. The gain was offset by transaction costs of approximately $1.1 million, resulting in a net gain of approximately $23.9 million, which was included in the Company’s Consolidated Statement of Income for the year ended December 31, 2023. Subsequently, the Company received proceeds, net of tax, of approximately $22.8 million from this transaction during the first quarter of 2024.

During the years ended December 31, 2025 and 2024, there were no transfers of financial instruments between different categories of fair value.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases

10. Leases

The Company has a lease agreement with 237 North First Street Holdings, LLC for an office space located at 4453 North First Street in San Jose, California (the “Lease”). The Lease has a term of 128 months from the amended commencement date in April 2020. The annual base rent increases each year to certain fixed amounts over the course of the term. In addition to the base rent, the Company will also pay operating expenses, insurance expenses, real estate taxes and a management fee. The Lease allows for an option to expand, wherein the Company has the right of first refusal to rent additional space in the building. The Company has a one-time option to extend the Lease for a period of 60 months and may elect to terminate the Lease, via written notice to the Landlord, in the event the office space is damaged or destroyed. These options were not recognized as part of operating lease right-of-use assets and operating lease liabilities.

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2025 (in thousands):

 

Years ending December 31,

 

Amount

 

2026

 

$

7,492

 

2027

 

 

6,002

 

2028

 

 

4,869

 

2029

 

 

4,871

 

2030

 

 

4,232

 

Thereafter

 

 

687

 

Total minimum lease payments

 

 

28,153

 

Less: amount of lease payments representing interest

 

 

(3,172

)

Present value of future minimum lease payments

 

 

24,981

 

Less: current obligations under leases

 

 

(6,310

)

Long-term lease obligations

 

$

18,671

 

 

As of December 31, 2025, the weighted-average remaining lease term for the Company’s operating leases was 4.5 years, and the weighted-average discount rate used to determine the present value of the Company’s operating leases was 7.6 %.

Operating lease costs included in research and development and selling, general and administrative costs in the Company’s Consolidated Statements of Income were $5.9 million, $5.5 million and $6.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities were $7.2 million, $6.1 million and $6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Balance Sheet Details
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details

11. Balance Sheet Details

Inventories (1)

Inventories consisted of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Raw materials

 

$

17,255

 

 

$

14,777

 

Work in process

 

 

17,039

 

 

 

9,646

 

Finished goods

 

 

9,804

 

 

 

20,211

 

Total

 

$

44,098

 

 

$

44,634

 

 

(1)
As of December 31, 2025 and 2024, the Company had inventory reserve balances of approximately $8.1 million and $6.7 million included in the Consolidated Balance Sheets, respectively.

Property and Equipment, net

Property and equipment, net is comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Computer software

 

$

57,147

 

 

$

44,745

 

Computer equipment

 

 

41,005

 

 

 

38,282

 

Leasehold improvements

 

 

36,343

 

 

 

31,973

 

Machinery

 

 

66,882

 

 

 

49,204

 

Furniture and fixtures

 

 

14,739

 

 

 

14,164

 

Construction in progress

 

 

7,413

 

 

 

7,789

 

Property and equipment, gross

 

 

223,529

 

 

 

186,157

 

Less accumulated depreciation and amortization

 

 

(110,478

)

 

 

(110,648

)

Property and equipment, net

 

$

113,051

 

 

$

75,509

 

 

Depreciation expense for the years ended December 31, 2025, 2024 and 2023 was $30.8 million, $26.1 million and $37.7 million, respectively.

Other Current Liabilities

Other current liabilities are comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Price protection liability

 

$

7,865

 

 

$

4,677

 

Other current liabilities

 

 

3,576

 

 

 

5,462

 

Total

 

$

11,441

 

 

$

10,139

 

 

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Foreign currency translation adjustments

 

$

(740

)

 

$

(1,144

)

Unrealized gain (loss) on available-for-sale securities, net of tax

 

 

616

 

 

 

(116

)

Total

 

$

(124

)

 

$

(1,260

)
v3.25.4
Convertible Notes
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Convertible Notes

12. Convertible Notes

The Company did not have any convertible notes outstanding as of December 31, 2025 and 2024.

During the first quarter of 2023, the holders of the remaining $10.4 million aggregate outstanding principal amount of the 2023 Notes elected to convert the notes pursuant to the original terms of the conversion feature. Accordingly, upon maturity, the Company paid $10.4 million in cash to settle the aggregate principal amount of the 2023 Notes and delivered approximately 0.3 million shares of the Company's common stock to settle the conversion spread.

In connection with the settlement of the conversion of the remaining 2023 Notes, the Company received 0.3 million shares of the Company’s common stock for the retirement of the remaining convertible senior note hedges and paid $10.7 million in cash for the retirement of the remaining warrants during the first quarter of 2023. Additionally, the retirement of the remaining warrants was subject to derivative accounting, resulting in a $0.2 million loss on fair value adjustment of derivatives for the year ended December 31, 2023.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

13. Commitments and Contingencies

As of December 31, 2025, the Company’s material contractual obligations were as follows:

 

(In thousands)

 

Total

 

 

2026

 

 

2027

 

 

2028

 

Contractual obligations (1) (2)

 

 

 

 

 

 

 

 

 

 

 

 

Software licenses (3)

 

$

40,090

 

 

$

17,088

 

 

$

16,230

 

 

$

6,772

 

Other contractual obligations

 

 

138

 

 

 

138

 

 

 

—

 

 

 

—

 

Total

 

$

40,228

 

 

$

17,226

 

 

$

16,230

 

 

$

6,772

 

 

(1)
The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $25.7 million, including $24.3 million recorded as a reduction of long-term deferred tax assets and $1.4 million in long-term income taxes payable as of December 31, 2025.
(2)
For the Company’s lease commitments as of December 31, 2025, refer to Note 10, “Leases.”
(3)
The Company has commitments with various software vendors for agreements generally having terms longer than one year.

Indemnifications

From time to time, the Company indemnifies certain customers as a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright or other IP infringement or any other claim by any third party arising as a result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification that the Company could be required to make under these agreements to the amount of fees received by the Company, however, this may not always be possible. The fair value of the liability as of December 31, 2025 and 2024, respectively, was not material.
v3.25.4
Equity Incentive Plans and Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans and Stock-Based Compensation

14. Equity Incentive Plans and Stock-Based Compensation

Equity Incentive Plans

The Company has two equity incentive plans under which grants are currently outstanding: the 2015 Equity Incentive Plan (the “2015 Plan”) and the 2019 Inducement Equity Incentive Plan (the “2019 Inducement Plan”). The 2015 Plan and 2019 Inducement Plan were the Company’s only plans for providing stock-based incentive awards to eligible employees, executive officers, non-employee directors and consultants as of December 31, 2025. Grants under all plans typically have a requisite service period of 48 months, have straight-line vesting schedules and expire not more than 10 years from date of grant.

A summary of shares available for grant under the Company’s plans is as follows:

 

 

Shares Available
for Grant

 

Total shares available for grant as of December 31, 2022

 

 

7,655,769

 

Increase in shares approved for issuance (1)

 

 

5,210,000

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(2,082,334

)

Nonvested equity stock and stock units forfeited (2)

 

 

1,170,715

 

Total shares available for grant as of December 31, 2023

 

 

11,954,150

 

Stock options expired

 

 

1,125

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(1,482,074

)

Nonvested equity stock and stock units forfeited (2)

 

 

416,677

 

Total shares available for grant as of December 31, 2024

 

 

10,889,878

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(1,497,461

)

Nonvested equity stock and stock units forfeited (2)

 

 

341,211

 

Total shares available for grant as of December 31, 2025

 

 

9,733,628

 

 

(1)
On April 27, 2023, the Company’s stockholders approved these additional shares to be reserved for issuance under the 2015 Plan.
(2)
For purposes of determining the number of shares available for grant under the 2015 Plan against the maximum number of shares authorized, each restricted stock unit granted prior to April 27, 2023 reduces the number of shares available for grant by 1.5 shares and each restricted stock unit forfeited increases shares available for grant by 1.5 shares. Each restricted stock unit granted on or after April 27, 2023 reduces the number of shares available for grant by 1.0 share and each restricted stock unit forfeited increases shares available for grant by 1.0 share.
(3)
Amounts include approximately 0.2 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in each of the years 2023, 2024 and 2025, respectively, and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.

General Stock Option Information

The following table summarizes stock option activity under the Company’s equity incentive plans for the years ended December 31, 2025, 2024 and 2023 and information regarding stock options outstanding and vested as of December 31, 2025:

 

 

Options Outstanding

 

 

 

 

 

 

 

 

Number of
Shares

 

 

Weighted-
Average
Exercise Price
Per Share

 

 

Weighted-
Average
Remaining
Contractual
Term (years)

 

 

Aggregate
Intrinsic Value
(In thousands)

 

Outstanding as of December 31, 2022

 

 

432,443

 

 

$

11.60

 

 

 

 

 

 

 

Options exercised

 

 

(307,711

)

 

$

11.61

 

 

 

 

 

 

 

Outstanding as of December 31, 2023

 

 

124,732

 

 

$

11.60

 

 

 

 

 

 

 

Options exercised

 

 

(33,607

)

 

$

9.42

 

 

 

 

 

 

 

Options expired

 

 

(1,125

)

 

$

8.76

 

 

 

 

 

 

 

Outstanding as of December 31, 2024

 

 

90,000

 

 

$

12.45

 

 

 

 

 

 

 

Options exercised

 

 

(1,100

)

 

$

13.60

 

 

 

 

 

$

86

 

Outstanding and vested as of December 31, 2025

 

 

88,900

 

 

$

12.43

 

 

 

2.53

 

 

$

7,064

 

 

Employee Stock Purchase Plan

During the years ended December 31, 2025, 2024 and 2023, the Company had one employee stock purchase plan, the 2015 Employee Stock Purchase Plan (“2015 ESPP”). Employees generally will be eligible to participate in the plan if they are employed by the Company for more than 20 hours per week and more than five months in a calendar year. The 2015 ESPP provides for six-month offering periods, with a new offering period commencing on the first trading day on or after May 1 and November 1 of each year. Under the plan, employees may purchase stock at the lower of 85% of the fair market value of the Company’s common stock at the beginning of the offering period (the enrollment date) or the end of each offering period (the purchase date). Employees generally may not purchase more than the number of shares having a value greater than $25,000 in any calendar year, as measured at the purchase date.

The Company issued 166,458 shares at an average price of $41.12 per share during the year ended December 31, 2025. The Company issued 119,350 shares at an average price of $43.14 per share during the year ended December 31, 2024. The Company issued 172,711 shares at an average price of $31.10 per share during the year ended December 31, 2023. As of December 31, 2025, 2.1 million shares under the 2015 ESPP remained available for issuance.

Stock-Based Compensation

Stock Options

There were no stock options granted during the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2023, all compensation cost net of expected forfeitures, related to unvested stock-based compensation arrangements granted under the stock option plans had been fully recognized. As a result, there was no stock-based compensation expense related to stock options for the years ended December 31, 2025 and 2024. Stock-based compensation expense related to stock options was immaterial for the year ended December 31, 2023.

The total fair value of options vested for the year ended December 31, 2023 was $0.5 million.

Employee Stock Purchase Plan

For the years ended December 31, 2025, 2024 and 2023, the Company recorded stock-based compensation expenses related to the 2015 ESPP of $2.7 million, $1.9 million and $1.8 million, respectively.

As of December 31, 2025, there was $1.4 million of total unrecognized compensation cost related to stock-based compensation arrangements granted under the 2015 ESPP. That cost is expected to be recognized over four months.

Valuation Assumptions

The Company estimates the fair value of stock awards using the Black-Scholes-Merton model (“BSM model”). The BSM model determines the fair value of stock-based compensation and is affected by the Company’s stock price on the date of the grant, as well as assumptions regarding a number of highly complex and subjective variables. These variables include expected volatility, expected life of the award, expected dividend rate and expected risk-free rate of return. The assumptions for expected volatility and expected life are the two assumptions that significantly affect the grant-date fair value. If actual results differ significantly from these estimates, stock-based compensation expense and the Company’s results of operations could be materially impacted.

The fair value of stock awards is estimated as of the grant date using the BSM option-pricing model assuming a dividend yield of 0% and the additional weighted-average assumptions as listed in the table below.

 

 

Employee Stock Purchase Plan for
Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Employee Stock Purchase Plan

 

 

 

 

 

 

 

 

 

Expected stock price volatility

 

51%-65%

 

 

47%-54%

 

 

48%-53%

 

Risk free interest rate

 

3.80%-4.22%

 

 

4.42%-5.43%

 

 

5.14%-5.51%

 

Expected term (in years)

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Weighted-average fair value of purchase rights granted under the purchase plan

 

$

23.63

 

 

$

14.96

 

 

$

14.86

 

 

Expected Stock Price Volatility: Given the volume of market activity in its market traded options, the Company determined that it would use the implied volatility of its nearest-to-the-money traded options. The Company believes that the use of implied volatility is more reflective of market conditions and a better indicator of expected volatility than historical volatility. If there is not sufficient volume in its market traded options, the Company will use an equally weighted blend of historical and implied volatility.

Risk-free Interest Rate: The Company bases the risk-free interest rate used in the BSM valuation method on implied yield currently available on the U.S. Treasury zero-coupon issues with an equivalent term. Where the expected terms of the Company’s stock-based awards do not correspond with the terms for which interest rates are quoted, the Company uses an approximation based on rates on the closest term currently available.

Expected Term: The expected term of options granted represents the period of time that options granted are expected to be outstanding. The expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The expected term of ESPP grants is based upon the length of each respective purchase period.

Nonvested Equity Stock and Stock Units

The Company grants nonvested equity stock units to officers, employees and directors. For each of the years ended December 31, 2025, 2024 and 2023, the Company granted nonvested equity stock units totaling 1.3 million. These awards have a service condition, generally a service period of four years, except in the case of grants to directors, for which the service period is one year. For the years ended December 31, 2025, 2024 and 2023, the nonvested equity stock units were valued at the date of grant, giving them a fair value of approximately $70.4 million, $74.8 million and $60.7 million, respectively. During the years ended December 31, 2025, 2024 and 2023, the Company granted performance unit awards to certain Company executive officers with vesting subject to the achievement of certain performance and/or market conditions. The ultimate number of performance units that can be earned can range from 0% to 200% of target depending on performance relative to target over the applicable period. The shares earned will vest on the third anniversary of the date of grant. The Company’s shares available for grant have been reduced to reflect the shares that could be earned at the maximum target.

For the years ended December 31, 2025, 2024 and 2023, the Company recorded stock-based compensation expense of approximately $51.5 million, $43.0 million and $43.1 million, respectively, related to all outstanding nonvested equity stock grants.

Unrecognized compensation cost related to all nonvested equity stock grants, net of estimated forfeitures, was approximately $87.4 million as of December 31, 2025. This amount is expected to be recognized over a weighted-average period of 2.0 years.

The following table reflects the activity related to nonvested equity stock and stock units for the years ended December 31, 2025, 2024 and 2023:

 

Nonvested Equity Stock and Stock Units

 

Shares

 

 

Weighted-Average
Grant-Date
Fair Value

 

Nonvested as of December 31, 2022

 

 

4,718,060

 

 

$

22.78

 

Granted

 

 

1,268,973

 

 

$

46.93

 

Vested

 

 

(1,797,002

)

 

$

18.07

 

Forfeited

 

 

(759,839

)

 

$

28.60

 

Nonvested as of December 31, 2023

 

 

3,430,192

 

 

$

32.90

 

Granted

 

 

1,312,367

 

 

$

57.03

 

Vested

 

 

(1,289,945

)

 

$

27.14

 

Forfeited

 

 

(302,453

)

 

$

39.07

 

Nonvested as of December 31, 2024

 

 

3,150,161

 

 

$

44.72

 

Granted

 

 

1,269,985

 

 

$

55.46

 

Vested

 

 

(1,296,894

)

 

$

38.04

 

Forfeited

 

 

(241,423

)

 

$

51.16

 

Nonvested as of December 31, 2025

 

 

2,881,829

 

 

$

51.91

 
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

15. Stockholders’ Equity

Share Repurchase Programs

On October 29, 2020, the Company’s board of directors (the “Board”) approved a share repurchase program authorizing the repurchase of up to an aggregate of 20.0 million shares (the “2020 Repurchase Program”). Share repurchases under the 2020 Repurchase Program may be made through the open market, established plans or privately negotiated transactions in accordance with all applicable securities laws, rules and regulations. There is no expiration date applicable to the 2020 Repurchase Program. During the years ended December 31, 2025, 2024 and 2023, the Company repurchased shares of its common stock under the 2020 Repurchase Program as discussed below.

On August 10, 2023, the Company entered into an accelerated share repurchase program with Royal Bank of Canada (“RBC”) (the “2023 ASR Program”). Under the 2023 ASR Program, the Company pre-paid to RBC the $100.0 million purchase price for its common stock and, in turn, the Company received an initial delivery of approximately 1.6 million shares of its common stock from RBC on August 11, 2023, which were retired and recorded as a $80.0 million reduction to stockholders’ equity. The remaining $20.0 million of the initial payment was recorded as a reduction to stockholders’ equity as an unsettled forward contract indexed to the Company’s stock. On September 22, 2023, the accelerated share repurchase program was completed and the Company received an additional 0.2 million shares of its common stock, which were retired, as the final settlement of the 2023 ASR Program.

On February 29, 2024, the Company entered into an accelerated share repurchase program with RBC (the “2024 ASR Program”). Under the 2024 ASR Program, the Company pre-paid to RBC the $50.0 million purchase price for its common stock and, in turn, the Company received an initial delivery of approximately 0.7 million shares of its common stock from RBC on March 1, 2024, which were retired and recorded as a $40.0 million reduction to stockholders’ equity. The remaining $10.0 million of the initial payment was recorded as a reduction to stockholders’ equity as an unsettled forward contract indexed to

the Company’s stock. On March 18, 2024, the accelerated share repurchase program was completed and the Company received an additional 0.1 million shares of its common stock, which were retired, as the final settlement of the 2024 ASR Program.

On November 2, 2023, the Company entered into a share repurchase plan (the “2023 Buying Plan”) with RBC Capital Markets, LLC (“RBCCM”). Under the 2023 Buying Plan, RBCCM commenced purchases for a 12-month period starting on November 2, 2023 and ending on November 1, 2024, with a provision to terminate sooner pursuant to the 2023 Buying Plan (the “Repurchase Period”). During the Repurchase Period, RBCCM was authorized to purchase an aggregate amount of $50.0 million of the Company’s common stock, and its execution was dependent on the Company’s stock price reaching certain levels. Share repurchases could not exceed $25.0 million in a quarter. During the year ended December 31, 2023, an immaterial amount of shares was repurchased, retired and recorded as a reduction to stockholders’ equity. During the first quarter of 2024, the 2023 Buying Plan was amended and as a result, no purchases were made from the 2023 Buying Plan during the period from March 1, 2024 to March 28, 2024, while the 2024 ASR Program was in effect. During the third quarter of 2024, the 2023 Buying Plan was further amended to allow RBCCM to purchase an aggregate amount of $100.0 million of the Company’s common stock during the Repurchase Period, not to exceed $50.0 million in a quarter. The execution of share repurchases was dependent on the Company’s stock price reaching certain levels. During the year ended December 31, 2024, the Company repurchased approximately 1.4 million shares for approximately $63.1 million as part of the 2023 Buying Plan, which were retired and recorded as a reduction to stockholders’ equity.

During the year ended December 31, 2025, the Company entered into share repurchase plans (the “2025 Buying Plans”) with Mizuho Securities USA, LLC (“Mizuho”), pursuant to which Mizuho may repurchase shares of the Company's common stock from February 6, 2025 through March 31, 2026, with provisions to terminate sooner. The execution of share repurchases is dependent on the Company’s stock price reaching certain levels. During the year ended December 31, 2025, the Company repurchased 0.1 million shares for approximately $7.1 million as part of the 2025 Buying Plans, which were retired and recorded as a reduction to stockholders’ equity.

As of December 31, 2025, there remained an outstanding authorization to repurchase approximately 5.5 million shares of the Company’s outstanding common stock under the 2020 Repurchase Program.

The Company records share repurchases as a reduction to stockholders’ equity. The Company records a portion of the purchase price of the repurchased shares as a decrease (increase) to retained earnings (accumulated deficit) when the price of the shares repurchased exceeds the average original proceeds per share received from the issuance of common stock in accordance with its accounting policy. During the years ended December 31, 2024 and 2023, the cumulative price of $47.9 million and $94.7 million, respectively, was recorded as a decrease (increase) to retained earnings (accumulated deficit).
v3.25.4
Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Benefit Plans

16. Benefit Plans

The Company has a 401(k) Plan (the “401(k) Plan”) qualified under Section 401(k) of the Internal Revenue Code of 1986. Each eligible employee may elect to contribute up to 60% of the employee’s annual compensation to the 401(k) Plan, up to the Internal Revenue Service limit. The Company, at the discretion of its Board of Directors, may match employee contributions to the 401(k) Plan. The Company matches 50% of each eligible employee’s contribution, up to the first 6% of an eligible employee’s qualified earnings. For the years ended December 31, 2025, 2024 and 2023, the Company made matching contributions totaling approximately $2.5 million, $2.1 million and $2.0 million, respectively.
v3.25.4
Restructuring and Other Charges
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges

17. Restructuring and Other Charges

2023 Restructuring Plan

In June 2023, the Company initiated a restructuring program to reduce overall expenses to improve future profitability by reducing the Company’s overall spending (the “2023 Restructuring Plan”). In connection with this restructuring program, the Company initiated a plan resulting in a reduction of 42 employees. During the year ended December 31, 2023, the Company recorded charges of approximately $9.4 million to “Restructuring and other charges” in its Consolidated Statement of Income, related to the reduction in workforce, as well as write-downs of obligations related to certain IP development costs and software licenses for engineering development tools. The 2023 Restructuring Plan was materially completed in the fourth quarter of 2023.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

18. Income Taxes

Income before taxes consisted of the following:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Domestic

 

$

277,511

 

 

$

190,382

 

 

$

154,434

 

Foreign

 

 

4,445

 

 

 

9,661

 

 

 

32,726

 

 

$

281,956

 

 

$

200,043

 

 

$

187,160

 

 

The provision for (benefit from) income taxes was comprised of:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Federal:

 

 

 

 

 

 

 

 

 

Current

 

$

(153

)

 

$

2,760

 

 

$

1,075

 

Deferred

 

 

30,407

 

 

 

(9,447

)

 

 

(126,734

)

State:

 

 

 

 

 

 

 

 

 

Current

 

 

(154

)

 

 

468

 

 

 

893

 

Deferred

 

 

217

 

 

 

1,245

 

 

 

(17,264

)

Foreign:

 

 

 

 

 

 

 

 

 

Current

 

 

22,218

 

 

 

26,869

 

 

 

(3,362

)

Deferred

 

 

(1,034

)

 

 

(1,673

)

 

 

(1,352

)

 

$

51,501

 

 

$

20,222

 

 

$

(146,744

)

 

The table below provides the updated requirements of ASU 2023-09 for 2025. See Note 3, “Recent Accounting Pronouncements,” for additional details on the adoption of ASU 2023-09.

The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows:

 

 

Year Ended December 31, 2025

 

(In thousands, except percentages)

 

$

 

 

%

 

Provision for income taxes at U.S. federal statutory rate

 

$

59,211

 

 

 

21.0

%

State and local income tax expense

 

 

306

 

 

 

0.1

 

Foreign tax effects:

 

 

 

 

 

 

South Korea

 

 

 

 

 

 

Withholding tax

 

 

19,245

 

 

 

6.8

 

Other

 

 

46

 

 

 

—

 

Other foreign jurisdictions

 

 

2,379

 

 

 

0.9

 

Effect of cross-border tax laws:

 

 

 

 

 

 

Foreign-derived intangible income deduction

 

 

(3,980

)

 

 

(1.4

)

Other

 

 

590

 

 

 

0.2

 

Tax credits:

 

 

 

 

 

 

 Research and development credit

 

 

(6,360

)

 

 

(2.3

)

 Foreign tax credit

 

 

(21,974

)

 

 

(7.8

)

Valuation allowances

 

 

344

 

 

 

0.1

 

Non-taxable or non-deductible items:

 

 

 

 

 

 

Stock-based compensation

 

 

(7,424

)

 

 

(2.6

)

Section 162(m) limitation

 

 

6,921

 

 

 

2.5

 

Other

 

 

2,164

 

 

 

0.8

 

Changes in unrecognized tax benefits

 

 

361

 

 

 

0.1

 

Other adjustments

 

 

(328

)

 

 

(0.1

)

Total tax provision and effective tax rate

 

$

51,501

 

 

 

18.3

%

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

U.S. federal statutory rate

 

 

21.0

%

 

 

21.0

%

State income tax expense (benefit)

 

 

0.9

 

 

 

(8.7

)

Withholding tax

 

 

8.4

 

 

 

3.9

 

Foreign rate differential

 

 

(1.4

)

 

 

(2.6

)

Research and development credit

 

 

(1.9

)

 

 

(2.9

)

Executive compensation

 

 

4.0

 

 

 

3.9

 

Stock-based compensation

 

 

(6.1

)

 

 

(5.2

)

Foreign tax credit

 

 

(8.4

)

 

 

(2.5

)

Foreign-derived intangible income deduction

 

 

(6.8

)

 

 

(1.9

)

Acquisition

 

 

(0.1

)

 

 

1.6

 

Other

 

 

0.5

 

 

 

0.3

 

Valuation allowance

 

—

 

 

 

(85.3

)

 

 

10.1

%

 

 

(78.4

)%

 

The components of the net deferred tax assets (liabilities) were as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Lease liabilities

 

$

5,284

 

 

$

6,384

 

Other timing differences, accruals and reserves

 

 

3,377

 

 

 

3,893

 

Deferred equity compensation

 

 

4,749

 

 

 

6,678

 

Net operating loss carryovers

 

 

12,003

 

 

 

12,003

 

Capitalized research

 

 

71,605

 

 

 

96,739

 

Tax credits

 

 

55,725

 

 

 

47,960

 

Total gross deferred tax assets

 

 

152,743

 

 

 

173,657

 

Deferred tax liabilities:

 

 

 

 

 

 

Lease right-of-use assets

 

 

(3,560

)

 

 

(4,498

)

Depreciation and amortization

 

 

(16,570

)

 

 

(9,077

)

Total gross deferred tax liabilities

 

 

(20,130

)

 

 

(13,575

)

Total net deferred tax assets

 

 

132,613

 

 

 

160,082

 

Valuation allowance

 

 

(29,021

)

 

 

(26,790

)

Net deferred tax assets

 

$

103,592

 

 

$

133,292

 

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Reported as:

 

 

 

 

 

 

Non-current deferred tax assets

 

$

105,542

 

 

$

136,466

 

Non-current deferred tax liabilities

 

 

(1,950

)

 

 

(3,174

)

Net deferred tax assets

 

$

103,592

 

 

$

133,292

 

Income Tax Payments

Disclosed below is a summary of income taxes paid, net of refunds, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025:

 

(In thousands)

 

Income Taxes Paid

 

U.S. federal

 

$

1,500

 

U.S. state and local

 

 

67

 

Foreign:

 

 

 

South Korea

 

 

19,605

 

Taiwan

 

 

1,902

 

Other

 

 

1,918

 

Total income taxes paid

 

$

24,992

 

The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realizability of the Company’s net deferred tax assets is dependent on its ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. During 2023, based on all available positive and negative evidence, the Company determined that it was appropriate to release the valuation allowance on the majority of the Company’s U.S. federal and other state deferred tax assets. The Company recognized a $177.9 million tax benefit during the year ended December 31, 2023 as a result of the valuation allowance release.

Upon considering the relative impact of all evidence during 2025, both negative and positive, and the weight accorded to each, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be realizable, with the exception of primarily its California research and development credits that have not met the “more likely than not” realization threshold criteria. As a result, the Company continues to maintain a valuation allowance on only those deferred tax assets that it does not think will be realizable.

The following table presents the tax valuation allowance information for the years ended December 31, 2025, 2024 and 2023:

 

(In thousands)

 

Balance at
Beginning of
Period

 

 

Charged to
Operations

 

 

Charged to
Other
Account*

 

 

Valuation
Allowance
Release

 

 

Balance at
End of
Period

 

Tax Valuation Allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2023

 

$

201,883

 

 

 

1,776

 

 

 

(717

)

 

 

(177,886

)

 

$

25,056

 

Year ended December 31, 2024

 

$

25,056

 

 

 

1,784

 

 

 

(50

)

 

 

—

 

 

$

26,790

 

Year ended December 31, 2025

 

$

26,790

 

 

 

2,231

 

 

 

—

 

 

 

—

 

 

$

29,021

 

 

* Amounts not charged to operations are charged to other comprehensive income or retained earnings.

As of December 31, 2025, the Company had California net operating loss carryforwards of $171.9 million. As of December 31, 2025, the Company had federal research and development tax credit carryforwards of $48.9 million and foreign tax credits of $1.3 million. As of December 31, 2025, the Company had California research and development tax credit carryforwards of $32.6 million and California alternative minimum tax credit carryforwards of $0.5 million. The federal research and development tax credits and the foreign tax credits will continue to carry over and begin to expire in 2028, if unused. The California net operating losses begin to expire in 2031. The California research and development credits carry forward indefinitely.

In the event of a change in ownership, as defined under federal and state tax laws, the Company’s net operating loss and tax credit carryforwards could be subject to annual limitations. The annual limitations could result in the expiration of the net operating loss and tax credit carryforwards prior to utilization.

As of December 31, 2025, the Company had $108.0 million of unrecognized tax benefits, before interest accrual, including $24.3 million recorded as a reduction of long-term deferred tax assets, $82.7 million recorded as a reduction of other assets associated with refundable withholding taxes previously withheld from licensees in South Korea and $1.0 million recorded to long-term income taxes payable.

On September 18, 2025, the South Korean Supreme Court ruled that the use of any patents in South Korea constitutes domestic source income under the South Korea–U.S. Tax Treaty, even if such patents are not registered with the patent office in South Korea. Based on this ruling, patent license royalties are subject to South Korean withholding tax if the patents are used in South Korea. As a result of this ruling, Rambus determined that it is not more likely than not that withholding taxes paid in South Korea are recoverable.

The Company previously filed refund claims for withholding taxes paid in South Korea in the amount of $82.7 million related to the period from the fourth quarter of 2018 through the third quarter of 2023. The Company previously intended to file additional refund claims in the future for $32.2 million of withholding taxes paid from the fourth quarter of 2023 through the second quarter of 2025. The Company had previously recorded a long-term taxes receivable of $114.9 million and $105.1 million, before interest accrual, related to these refund claims as of June 30, 2025 and December 31, 2024, respectively. If the South Korea withholding taxes are recovered through the refund claim process, the U.S. foreign tax credit claimed for these withholding taxes on historical federal tax returns will be forfeited. Therefore, the Company had also recorded a long-term taxes payable of $114.9 million and $105.1 million as of June 30, 2025 and December 31, 2024, respectively. These amounts excluded interest and reflected the future U.S. federal tax liability in the event of filing amended federal tax returns to revise the foreign tax credit amounts. The recovery of South Korea withholding taxes paid before the fourth quarter of 2018 of $74.8 million was uncertain due to the statute of limitations for filing a refund claim. Thus, the Company did not previously record a long-term taxes receivable and included this amount in the uncertain tax benefit.

As a result of the September 2025 ruling, the Company recorded an uncertain tax position reserve on the $82.7 million of outstanding refund claims, reducing the previously recorded long-term taxes receivable for these refund claims to zero, as it determined it is not more likely than not that the withholding taxes paid in South Korea are recoverable. The Company also removed the $32.2 million long-term taxes receivable previously recorded for withholding taxes paid during the fourth quarter

of 2023 through the second quarter of 2025. As a result, the total long-term taxes receivable balance of $114.9 million, excluding interest, was reduced to zero in the third quarter of 2025. The related long-term taxes payable of $114.9 million, excluding interest, was also reduced to zero, resulting in zero tax expense impact.

Additionally, the Company’s future effective tax rates could be adversely affected by earnings being higher than anticipated in countries where the Company has higher statutory rates or lower than anticipated in countries where it has lower statutory rates, by changes in valuation of its deferred tax assets and liabilities or by changes in tax laws or interpretations of those laws.

As of December 31, 2024, the Company had $203.8 million of unrecognized tax benefits, before interest accrual, including $22.8 million recorded as a reduction of long-term deferred tax assets, $74.8 million recorded as a reduction of other assets associated with refundable withholding taxes previously withheld from licensees in South Korea and $106.2 million recorded to long-term income taxes payable, which were primarily comprised of $105.1 million in income taxes payable related to withholding taxes previously withheld from licensees in South Korea.

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits for the years ended December 31, 2025, 2024 and 2023 was as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Balance as of January 1

 

$

203,794

 

 

$

184,921

 

 

$

164,531

 

Tax positions related to current year:

 

 

 

 

 

 

 

 

 

Additions

 

 

16,178

 

 

 

19,844

 

 

 

19,403

 

Tax positions related to prior years:

 

 

 

 

 

 

 

 

 

Additions

 

 

619

 

 

 

—

 

 

 

1,378

 

Reductions

 

 

(112,589

)

 

 

(971

)

 

 

(391

)

Balance as of December 31

 

$

108,002

 

 

$

203,794

 

 

$

184,921

 

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision (benefit). As of December 31, 2025 and 2024, an immaterial amount of interest and penalties was included in long-term income taxes payable.

Rambus files income tax returns for the U.S., California, India and various other state and foreign jurisdictions. The U.S. federal returns are subject to examination from 2022 and forward. The Company’s 2023 federal return is currently under audit by the Internal Revenue Service. The California returns are subject to examination from 2021 and forward. In addition, any research and development credit carryforward or net operating loss carryforward generated in prior years and utilized in these or future years may also be subject to examination. The India returns are under examination by the Indian tax administration for tax years beginning with 2011, except for 2012 through 2016, which were assessed in the Company’s favor, and are subject to examination from 2017 and forward. These examinations may result in proposed adjustments to the income taxes as filed during these periods. Management regularly assesses the likelihood of outcomes resulting from income tax examinations to determine the adequacy of their provision for income taxes and believes their provision for unrecognized tax benefits is adequate.

As of December 31, 2025, no other income taxes (state or foreign) have been provided on undistributed earnings of approximately $59.1 million from the Company’s international subsidiaries since these earnings have been, and under current plans will continue to be, indefinitely reinvested outside the United States, with the exception of France. If the non-France earnings were distributed, the Company would incur approximately $1.3 million of foreign withholding taxes and an immaterial amount of U.S. taxes.

On July 4, 2025, the United States enacted federal tax legislation commonly referred to as the OBBBA. Included in this legislation are provisions that allow for the immediate expensing of domestic United States research and development expenses, immediate expensing of certain capital expenditures and other changes to the U.S. taxation of profits derived from foreign operations. As a result of the enactment of the legislation, there was an increase to tax expense, primarily related to

changes in the taxation of profits derived from foreign operations and, more specifically, the foreign-derived intangible income deduction.

v3.25.4
Litigation and Asserted Claims
 12 Months Ended
Dec. 31, 2025
Loss Contingency [Abstract]  
Litigation and Contingent Liability

19. Litigation and Contingent Liability

Rambus is not currently a party to any material pending legal proceeding; however, from time to time, Rambus may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial position or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management attention and resources and other factors.

The Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably estimable in accordance with accounting for contingencies.
v3.25.4
Divestiture
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Divestiture

20. Divestiture

2023 Divestiture

In July 2023, the Company entered into an asset purchase agreement (the “Purchase Agreement”) with Cadence Design Systems, Inc. (the “Purchaser”), pursuant to which the Company agreed to sell certain assets and the Purchaser agreed to assume certain liabilities from the Company, in each case with respect to the Company’s PHY IP group, for $110.0 million in cash, subject to certain adjustments and certain closing conditions (the “Transaction”). The decision to sell this business reflects the evolution of the Company’s core semiconductor business to focus on the development of digital IP and chips, including novel memory solutions for high-performance computing, to support the continued advancement of the data center and artificial intelligence.

The Transaction was completed on September 6, 2023 and resulted in net proceeds of approximately $106.3 million, which consisted of the initial selling price of $110.0 million offset by approximately $3.7 million related to certain purchase price adjustments. The Company recognized a net gain on divestiture of the PHY IP group in its Consolidated Statements of Income of approximately $90.8 million during the year ended December 31, 2023. Transaction costs of approximately $1.4 million were included in the net gain of $90.8 million.

The divestiture of the PHY IP group did not represent a strategic shift that would have a major effect on the Company’s consolidated results of operations, and therefore its results of operations were not reported as discontinued operations.

Concurrent with the Transaction, the Company also recorded a charge of approximately $10.0 million in its Consolidated Statements of Income during the year ended December 31, 2023. The charge was primarily related to the accelerated amortization of software licenses that were not directly part of the PHY IP disposal group.
v3.25.4
Subsequent Event
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Event

21. Subsequent Event

On February 4, 2026, Desmond Lynch, Senior Vice President, Chief Financial Officer of the Company notified the Company that he was resigning with an effective date as of February 27, 2026, to pursue another professional opportunity. In connection with and effective upon Mr. Lynch’s departure, the Company is appointing John Allen to the position of Vice President, Interim Chief Financial Officer. Mr. Allen will also continue to serve in his current role of the Company’s Chief Accounting Officer.
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Financial Statement Presentation

Financial Statement Presentation

The accompanying consolidated financial statements include the accounts of Rambus and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated on the accompanying consolidated financial statements. Rambus accounts for investments in entities where it owns more than 20% and has significant influence (but not control) over the investee's operations using the equity method. These investments are classified under other assets.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.
Reclassifications

Reclassifications

Certain prior-year balances were reclassified to conform to the current year’s presentation. None of these reclassifications had an impact on reported net income or cash flows for any of the periods presented.
Revenue Recognition

Revenue Recognition

The Company recognizes revenue upon transfer of control of promised goods and services in an amount that reflects the consideration it expects to receive in exchange for those goods and services. Goods and services that are distinct are accounted for as separate performance obligations.

Where an arrangement includes multiple performance obligations, the transaction price is allocated to these on a relative standalone selling price basis. The Company has established standalone selling prices for the majority of its distinct offerings - specifically, the same pricing methodology is consistently applied to all licensing arrangements; all service offerings are priced within tightly controlled bands and all contracts that include support and maintenance state a renewal rate or price that is

systematically enforced. For certain contracts, the Company utilizes the residual approach to estimate standalone selling prices primarily for service offerings sold to customers at highly variable pricing.

The Company’s revenue consists of product, royalties and contract and other revenue. Products primarily consist of memory interface chips sold directly and indirectly to module manufacturers and OEMs worldwide through multiple channels, including its direct sales force and distributors. Royalties revenue consists of patent and technology license royalties. Contract and other revenue consists of software license fees, engineering fees associated with integration of the Company’s technology solutions into its customers’ products and support and maintenance fees.

Product Revenue

Product revenue is recognized upon shipment of product to customers, net of accruals for estimated sales returns and allowances, and to distributors, net of accruals for price protection and rights of return on products unsold by the distributors. The Company transacts with direct customers primarily pursuant to standard purchase orders for delivery of products and generally allows customers to cancel or change purchase orders within limited notice periods prior to the scheduled shipment date.

Royalties Revenue

Rambus’ patent and technology licensing arrangements generally range between one year and ten years in duration and generally grant the licensee the right to use applicable portions of the Company’s entire IP portfolio as it evolves over time. These arrangements do not typically grant the licensee the right to terminate for convenience and where such rights exist, termination is prospective, with no refund of fees already paid or cancellation of fees already incurred by the licensee.

Patent and technology licensing arrangements result in fixed payments received over time, with guaranteed minimum payments on occasion, variable payments calculated based on the licensee’s sale or use of the IP, or a mix of fixed and variable payments.

•
For fixed-fee arrangements (including arrangements that include minimum guaranteed amounts), the Company recognizes revenue upon control over the underlying IP use right transferring to the licensee, net of the effect of significant financing components calculated using customer-specific, risk-adjusted lending rates typically ranging between 5% and 10%, with the related interest income recognized over time on an effective rate basis. Where a licensee has the contractual right to terminate a fixed-fee arrangement for convenience without any substantive penalty payable upon such termination, the Company recognizes revenue for the duration of the contract in which the parties have present enforceable rights and obligations.
•
For variable arrangements, the Company recognizes revenue based on an estimate of the licensee’s sale or usage of the IP during the periods the sale or usage occur, typically quarterly, with a true-up recorded, if required, when the Company receives the actual royalty report from the licensee.
•
The Company recognizes license renewal revenue commencing with the start of the renewal period.

Contract and Other Revenue

Contract and other revenue consists of software license fees and engineering fees associated with integration of the Company’s technology solutions into its customers’ products, and support and maintenance.

An initial software arrangement may consist of a term-based or perpetual license, significant software customization services and support and maintenance services that include post-implementation customer support and the right to unspecified software updates and enhancements on a when and if available basis. The Company recognizes license and customization services revenue at a point in time when final delivery is made or based on an over time model, depending on the nature and amount of customization. For the over time model, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation.

The Company recognizes support and maintenance revenue over the time those services are provided.

Significant Judgments

The Company applies significant judgment when determining the amount and timing of revenue from the Company’s contracts with customers, based on its estimate of the man-months necessary for completing development and customization services. The Company has adequate tools and controls in place, and substantial experience and expertise in timely and accurately tracking man-months incurred in completing customization and other professional services, and quantifying significant changes in estimates.

The Company recognizes revenue on variable fee licensing arrangements on the basis of estimated sales and usage, which the Company then adjusts to actual results when it receives the final related reports from its customers.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers. The Company records contract assets when revenue is recognized prior to invoicing, and a contract liability when revenue is recognized subsequent to invoicing. The contract assets are transferred to receivables when the billing occurs.
Cost of Revenue

Cost of Revenue

Cost of revenue includes cost of professional services, materials, including cost of wafers processed by third-party foundries, costs associated with packaging and assembly, test and shipping, cost of personnel, including stock-based compensation, and equipment associated with manufacturing support, logistics and quality assurance, warranty costs, amortization of existing technology, write-down of inventories, amortization of production mask costs, overhead and an allocated portion of occupancy costs.
Leases

Leases

The Company leases office space, domestically and internationally, under operating leases. The Company’s leases have remaining lease terms generally between one year and seven years. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. The Company does not have any finance leases. The Company determines if an arrangement is a lease, or contains a lease, at inception. The Company assesses all relevant facts and circumstances in making the determination of the existence of a lease. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments and uses the implicit rate when readily determinable. Many of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the Company does not separate non-lease components from lease components. Operating lease costs are included in research and development and selling, general and administrative costs in the Company’s Consolidated Statements of Income.
Goodwill

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill is not subject to amortization, but is subject to at least an annual assessment for impairment. The Company performs its impairment analysis of goodwill on an annual basis during the fourth quarter of the year unless conditions arise that warrant a more frequent evaluation.

When goodwill is assessed for impairment, the Company has the option to perform an assessment of qualitative factors of impairment (optional assessment) prior to necessitating a quantitative impairment test. Should the optional assessment be used for any given year, qualitative factors to consider for a reporting unit include: cost factors; financial performance; legal, regulatory, contractual, political, business or other factors; entity specific factors; industry and market considerations; macroeconomic conditions; and other relevant events and factors affecting the reporting unit. If the Company determines in the

qualitative assessment that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. For a reporting unit tested using a quantitative approach, the Company compares the fair value of the reporting unit with the carrying amount of the reporting unit, including goodwill. The fair value of the reporting unit is estimated using an income approach.

Under the income approach, the Company measures fair value of the reporting unit based on a projected cash flow method using a discount rate determined by its management which is commensurate with the risk inherent in its current business model. The Company’s discounted cash flow projections are based on annual financial forecasts developed internally by management for use in managing its business. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, then the amount of goodwill impairment will be the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

The Company performed its annual goodwill impairment analysis as of December 31, 2025 and determined that there was no impairment of its goodwill. For the years ended December 31, 2024 and 2023, the Company did not recognize any goodwill impairment charges.
Intangible Assets

Intangible Assets

Intangible assets are comprised of existing technology, customer contracts and contractual relationships, and other finite-lived and indefinite-lived intangible assets. Identifiable intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets received. Identifiable finite-lived intangible assets are amortized over the period of estimated benefit using the straight-line method, with estimated useful lives ranging from six months to ten years.

Acquired indefinite-lived intangible assets related to the Company’s in-process research and development (“IPR&D”) are capitalized and subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, the Company makes a separate determination of the useful life of the acquired indefinite-lived intangible assets and the related amortization is recorded as an expense over the estimated useful life of the specific projects. Indefinite-lived intangible assets are subject to at least an annual assessment for impairment, applying a fair-value based test. The Company first performs a qualitative assessment to determine whether it is more likely than not (more than 50% likelihood) that the indefinite-lived intangible assets are impaired. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination, the Company determines that it is more likely than not that the indefinite-lived intangible assets are impaired, then the Company performs a quantitative impairment test by comparing the fair value of the intangible assets with its carrying amount. The Company measures fair value of the indefinite-lived intangible assets under the income approach based on a projected cash flow method using a discount rate determined by its management which is commensurate with the risk inherent in its current business model. The Company’s discounted cash flow projections are based on its annual financial forecasts developed internally by management for use in managing its business. If the fair value of the indefinite-lived intangible assets exceeds its carrying value, the indefinite-lived intangible assets are not impaired and no further testing is required. If the implied fair value of the indefinite-lived intangible assets is less than the carrying value, the difference is recorded as an impairment loss.
Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventories are reduced for write-downs based on periodic reviews for evidence of excess or obsolete parts. The write-down is based on comparison between inventory on hand and estimated future sales for each specific product. Once written down, inventory write-downs are not reversed until the inventory is sold or scrapped. Inventory write-downs are also established when conditions indicate that the net realizable value is less than cost due to physical deterioration, obsolescence, changes in price level or other causes.
Property and Equipment

Property and Equipment

Property and equipment include computer software, computer equipment, leasehold improvements, machinery, and furniture and fixtures. Computer software, computer equipment, machinery, and furniture and fixtures are stated at cost and generally depreciated on a straight-line basis over an estimated useful life of three to seven years. Refer to Note 11, “Balance Sheet Details,” for additional information. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining terms of the leases. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the related gain or loss is included in the results from operations.
Finite-Lived Asset Impairment

Finite-Lived Asset Impairment

The Company evaluates finite-lived assets (including property and equipment and intangible assets) for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted cash flows resulting from the use of the asset group and its eventual disposition. The Company’s estimates of future cash flows attributable to its asset groups require significant judgment based on its historical and anticipated results and are subject to many factors. Factors that the Company considers important which could trigger an impairment review include significant negative industry or economic trends, significant loss of clients and significant changes in the manner of its use of the acquired assets or the strategy for its overall business.

When the Company determines that the carrying value of an asset group may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company measures the potential impairment based on a projected discounted cash flow method using a discount rate determined by the Company to be commensurate with the risk inherent in the Company’s current business model. An impairment loss is recognized only if the carrying amount of the asset group is not recoverable and exceeds its fair value. The impairment charge is recorded to reduce the pre-impairment carrying amount of the assets based on the relative carrying amount of those assets, though not to reduce the carrying amount of an asset below its fair value. Different assumptions and judgments could materially affect the calculation of the fair value of the assets. During 2025, 2024 and 2023, the Company did not recognize any impairment of its finite-lived and indefinite-lived assets, except as described in Note 20, “Divestiture.”
Income Taxes

Income Taxes

Income taxes are accounted for using an asset and liability approach, which requires the recognition of deferred tax assets and liabilities for expected future tax events that have been recognized differently in the Company’s consolidated financial statements and tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated. A valuation allowance is established when necessary to reduce deferred tax assets to the amount of future tax benefit that is more likely than not to be realized.

In addition, the calculation of the Company’s tax liabilities involves uncertainties in the application of complex tax regulations. As a result, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in its tax return. The company recognizes the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position.
Stock-Based Compensation and Equity Incentive Plans

Stock-Based Compensation and Equity Incentive Plans

The Company maintains stock plans covering a broad range of equity grants including stock options, nonvested equity stock and equity stock units and performance-based instruments. In addition, the Company sponsors an Employee Stock Purchase Plan (“ESPP”), whereby eligible employees are entitled to purchase common stock semi-annually, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The Company determines compensation expense associated with restricted stock units based on the fair value of its common stock on the date of grant.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents are investments with original maturity of three months or less at the date of purchase. The Company maintains its cash balances with high-quality financial institutions. Cash equivalents are invested in highly rated, liquid money market securities, time deposits and certain U.S. government sponsored obligations.
Marketable Securities

Marketable Securities

Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, corporate bonds, commercial paper and notes, time deposits and money market funds that mature within three years. Available-for-sale securities are carried at fair value, based on quoted market prices, with the unrealized gains or losses reported, net of tax, in stockholders’ equity as part of accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, both of which are included in interest and other income, net. Realized gains and losses are recorded based on the specific identification method and are included in interest and other income, net. The Company reviews its investments in marketable securities for possible other than temporary impairments on a regular basis. If any loss on investment is believed to be a credit loss, a charge will be recognized in operations. In evaluating whether a credit loss on a debt security has occurred, the Company considers the following factors: 1) the Company’s intent to sell the security, 2) if the Company intends to hold the security, whether or not it is more likely than not that the Company will be required to sell the security before recovery of the security’s amortized cost basis and 3) even if the Company intends to hold the security, whether or not the Company expects the security to recover the entire amortized cost basis. Due to the high credit quality and short-term nature of the Company’s investments, there have been no material credit losses recorded to date. The classification of funds between short-term and long-term is based on whether the securities are available for use in operations or other purposes.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair value measurement statement defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires that fair value measurement be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company uses unadjusted quotes to determine fair value. The financial assets in Level 1 include money market funds.

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. The Company uses observable pricing inputs including benchmark yields, reported trades and broker/dealer quotes. The financial assets in Level 2 include U.S. government bonds and notes, and corporate bonds, commercial paper and notes.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance.

The Company does not have any financial assets or liabilities in Level 3 as of December 31, 2025 and 2024. Refer to Note 9, “Fair Value of Financial Instruments,” for additional information.

The carrying value of cash equivalents, accounts receivable and accounts payable approximate their fair values due to their relatively short maturities as of December 31, 2025 and 2024.

The Company’s financial instruments are measured and recorded at fair value, except for equity method investments and convertible notes. Marketable securities are comprised of available-for-sale securities that are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity, net of tax. Fair value of the marketable securities is determined based on quoted market prices.

The Company’s non-financial assets, such as goodwill, intangible assets and property and equipment, are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment charge is recognized. The Company’s equity method investments were initially recognized at cost, and the carrying amount was increased or decreased to recognize the Company’s share of the profit or loss of the investee after the date of acquisition. The Company’s share of the investee’s profit or loss was recognized in interest and other income (expense), net in the Company’s Consolidated Statements of Income. Distributions received from an investee reduced the carrying amount of the investment.
Research and Development

Research and Development

Costs incurred in research and development, which include engineering expenses, such as salaries and related benefits, stock-based compensation, depreciation, professional services and overhead expenses related to the general development of the Company’s products, are expensed as incurred.

Computation of Earnings Per Share

Computation of Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units, and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method, or the if-converted method for the in-the-money conversion benefit feature of the 2023 Notes. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potentially dilutive common shares are included in the computation of diluted earnings per share amount when a net loss is reported.
Comprehensive Income (Loss)

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities. Other comprehensive income (loss), net of tax, is presented in the Consolidated Statements of Comprehensive Income.
Credit Concentration

Credit Concentration

As of December 31, 2025 and 2024, the Company’s cash, cash equivalents and marketable securities were invested with various financial institutions in the form of corporate bonds, commercial paper and notes, money market funds, time deposits, U.S. Treasuries and U.S. Government Agencies. The Company’s exposure to market risk for changes in interest rates relates primarily to its investment portfolio. The Company places its investments with high-credit issuers and, by investment policy, attempts to limit the amount of credit exposure to any one issuer. As stated in the Company’s investment policy, it will ensure the safety and preservation of the Company’s invested funds by limiting default risk and market risk. The Company has certain investments denominated in foreign currencies and therefore is subject to foreign exchange risk from these assets. The Company holds cash, cash equivalents and marketable securities in excess of federally insured limits.

The Company mitigates default risk by investing in high credit quality securities and by positioning its portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor. The portfolio includes only marketable securities with active secondary or resale markets to enable portfolio liquidity.

The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Refer to Note 7, “Segments and Major Customers,” for additional information.

The Company’s unbilled receivables are collected from customers located in the U.S. and internationally. Refer to Note 4, “Revenue Recognition,” for additional information.
Foreign Currency Translation and Re-Measurement

Foreign Currency Translation and Re-Measurement

The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive gain (loss) in the Company’s Consolidated Statements of Stockholders’ Equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency re-measure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and non-monetary assets and liabilities at historical rates. Additionally, foreign currency transaction gains and losses are included in interest income and other (income) expense, net, in the Company’s Consolidated Statements of Income and were not material in the periods presented.
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Contract Balances

The Company’s contract balances were as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Unbilled receivables

 

$

28,438

 

 

$

29,104

 

Deferred revenue

 

 

31,601

 

 

 

21,852

 
v3.25.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

 

 

Years Ended December 31,

 

(In thousands, except per share amounts)

 

2025

 

 

2024

 

 

2023

 

Net income per share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

230,455

 

 

$

179,821

 

 

$

333,904

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

 

107,548

 

 

 

107,438

 

 

 

108,183

 

Effect of potentially dilutive common shares

 

 

1,687

 

 

 

1,603

 

 

 

2,706

 

Weighted-average common shares outstanding - diluted

 

 

109,235

 

 

 

109,041

 

 

 

110,889

 

Basic net income per share

 

$

2.14

 

 

$

1.67

 

 

$

3.09

 

Diluted net income per share

 

$

2.11

 

 

$

1.65

 

 

$

3.01

 
v3.25.4
Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Components of Intangible Assets

The components of the Company’s intangible assets as of December 31, 2025 and December 31, 2024 were as follows:

 

 

 

 

As of December 31, 2025

 

(In thousands, except useful life)

 

Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

Existing technology

 

3 to 10 years

 

$

287,301

 

 

$

(277,130

)

 

$

10,171

 

Customer contracts and contractual relationships

 

0.5 to 10 years

 

 

37,496

 

 

 

(37,496

)

 

 

—

 

Non-compete agreements and trademarks

 

3 years

 

 

300

 

 

 

(300

)

 

 

—

 

Total intangible assets

 

 

 

$

325,097

 

 

$

(314,926

)

 

$

10,171

 

 

 

 

 

 

As of December 31, 2024

 

(In thousands, except useful life)

 

Useful Life

 

Gross Carrying
Amount (1)

 

 

Accumulated
Amortization (1)

 

 

Net Carrying
Amount

 

Existing technology

 

3 to 10 years

 

$

288,001

 

 

$

(270,954

)

 

$

17,047

 

Customer contracts and contractual relationships

 

0.5 to 10 years

 

 

37,496

 

 

 

(37,484

)

 

 

12

 

Non-compete agreements and trademarks

 

3 years

 

 

300

 

 

 

(300

)

 

 

—

 

Total intangible assets

 

 

 

$

325,797

 

 

$

(308,738

)

 

$

17,059

 

 

(1)
The IPR&D projects acquired in connection with the acquisition of PLDA in 2021 were completed during the fourth quarter of 2024. The related intangible assets of $7.4 million were reclassified as existing technology and are being amortized over their expected useful life of five years. During the year ended December 31, 2024, the amortization for the reclassified assets was not material.
Schedule of Estimated Future Amortization of Intangible Assets

The estimated future amortization expense of intangible assets as of December 31, 2025 was as follows (in thousands):

 

Years Ending December 31:

 

Amount

 

2026

 

$

5,530

 

2027

 

 

1,928

 

2028

 

 

1,480

 

2029

 

 

1,233

 

Total intangible assets

 

$

10,171

 
v3.25.4
Segments and Major Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting Information [Line Items]  
Schedule of Segment Reporting Information, By Segment

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the years ended December 31, 2025, 2024 and 2023, respectively, were as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Total revenue

 

$

707,630

 

 

$

556,624

 

 

$

461,117

 

Adjusted cost of revenue (1)

 

 

(136,791

)

 

 

(98,368

)

 

 

(89,322

)

Adjusted research and development (2)

 

 

(167,048

)

 

 

(146,431

)

 

 

(140,793

)

Adjusted sales, general and administrative (3)

 

 

(82,322

)

 

 

(76,038

)

 

 

(76,669

)

Other segment items:

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses (4)

 

 

(54,267

)

 

 

(44,879

)

 

 

(45,011

)

Amortization of acquired intangible assets (4)

 

 

(6,878

)

 

 

(11,710

)

 

 

(14,741

)

Impairment of assets

 

 

—

 

 

 

(1,071

)

 

 

(10,045

)

Acquisition & divestiture-related costs (5)

 

 

(106

)

 

 

(162

)

 

 

(1,625

)

Interest and other income (expense), net

 

 

21,738

 

 

 

17,034

 

 

 

33,521

 

Change in fair value of earn-out liability

 

 

—

 

 

 

5,044

 

 

 

(9,234

)

Restructuring charges

 

 

—

 

 

 

—

 

 

 

(9,368

)

Gain on divestiture

 

 

—

 

 

 

—

 

 

 

90,784

 

Other (6)

 

 

—

 

 

 

—

 

 

 

(1,454

)

Provision for (benefit from) income taxes

 

 

(51,501

)

 

 

(20,222

)

 

 

146,744

 

Net income

 

$

230,455

 

 

$

179,821

 

 

$

333,904

 

 

(1)
Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.
(2)
Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.
(3)
Excludes stock-based compensation expenses, acquisition-related costs and retention bonus expense related to acquisitions.
(4)
The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
(5)
The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and divestitures and have no direct correlation to the Company’s ongoing operating results.
(6)
Includes expense on abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the years ended December 31, 2025, 2024 and 2023:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Payroll and benefits

 

$

154,943

 

 

$

129,228

 

 

$

123,056

 

Variable research and development expenses (1)

 

 

27,097

 

 

 

27,342

 

 

 

28,228

 

Professional fees

 

 

19,889

 

 

 

20,055

 

 

 

22,148

 

Temporary labor services and consulting expenses

 

 

12,634

 

 

 

14,264

 

 

 

13,577

 

Facilities costs

 

 

12,542

 

 

 

11,853

 

 

 

12,347

 

Amortization and depreciation

 

 

11,916

 

 

 

10,076

 

 

 

10,144

 

Other expenses

 

 

10,349

 

 

 

9,651

 

 

 

7,962

 

Total adjusted operating expenses

 

$

249,370

 

 

$

222,469

 

 

$

217,462

 

 

(1)
Includes primarily software tools, software licenses and prototyping costs.
Schedule of Revenue From External Customer by Geographic Regions

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

South Korea

 

$

329,256

 

 

$

197,515

 

 

$

152,328

 

Singapore

 

 

163,821

 

 

 

67,318

 

 

 

53,327

 

United States

 

 

124,101

 

 

 

201,466

 

 

 

176,821

 

Other

 

 

90,452

 

 

 

90,325

 

 

 

78,641

 

Total

 

$

707,630

 

 

$

556,624

 

 

$

461,117

 
Accounts receivable  
Segment Reporting Information [Line Items]  
Schedule of Customer Accounts Representing 10% or More Than 10% of Total Balance

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of December 31, 2025 and 2024, respectively, was as follows:

 

 

As of December 31,

 

Customer

 

2025

 

 

2024

 

Customer 1

 

 

35

%

 

 

39

%

Customer 2

 

 

22

%

 

 

17

%
Revenue  
Segment Reporting Information [Line Items]  
Schedule of Customer Accounts Representing 10% or More Than 10% of Total Balance Revenue from the Company’s major customers representing 10% or more of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively, was as follows:

 

 

Years Ended December 31,

 

Customer

 

2025

 

 

2024

 

 

2023

 

Customer A

 

 

23

%

 

 

23

%

 

 

27

%

Customer B

 

 

18

%

 

 

17

%

 

 

18

%

Customer C

 

*

 

 

 

12

%

 

*

 

 

* Customer accounted for less than 10% of total revenue in the period.
v3.25.4
Marketable Securities (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Securities, Available-for-Sale [Abstract]  
Schedule of Cash Equivalents and Marketable Securities Classified as Available-For-Sale Total cash, cash equivalents and marketable securities are summarized as follows:

 

 

As of December 31, 2025

 

(In thousands)

 

Fair Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

Cash

 

$

67,833

 

 

$

67,833

 

 

$

—

 

 

$

—

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

47,277

 

 

 

47,277

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

16,936

 

 

 

16,932

 

 

 

4

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

50,780

 

 

 

50,780

 

 

 

3

 

 

 

(3

)

Total cash equivalents

 

 

114,993

 

 

 

114,989

 

 

 

7

 

 

 

(3

)

Total cash and cash equivalents

 

 

182,826

 

 

 

182,822

 

 

 

7

 

 

 

(3

)

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

 

15,540

 

 

 

15,540

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

161,361

 

 

 

161,231

 

 

 

180

 

 

 

(50

)

Non-U.S. Government bonds and notes

 

 

3,983

 

 

 

3,980

 

 

 

3

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

398,121

 

 

 

397,755

 

 

 

429

 

 

 

(63

)

Total marketable securities

 

 

579,005

 

 

 

578,506

 

 

 

612

 

 

 

(113

)

Total cash, cash equivalents and marketable securities

 

$

761,831

 

 

$

761,328

 

 

$

619

 

 

$

(116

)

 

 

As of December 31, 2024

 

(In thousands)

 

Fair Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

Cash

 

$

87,415

 

 

$

87,415

 

 

$

—

 

 

$

—

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

6,025

 

 

 

6,025

 

 

 

—

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

6,335

 

 

 

6,334

 

 

 

1

 

 

 

—

 

Total cash equivalents

 

 

12,360

 

 

 

12,359

 

 

 

1

 

 

 

—

 

Total cash and cash equivalents

 

 

99,775

 

 

 

99,774

 

 

 

1

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

 

12,870

 

 

 

12,870

 

 

 

—

 

 

 

—

 

U.S. Government bonds and notes

 

 

220,056

 

 

 

220,034

 

 

 

184

 

 

 

(162

)

Corporate bonds, commercial paper and notes

 

 

149,097

 

 

 

149,085

 

 

 

121

 

 

 

(109

)

Total marketable securities

 

 

382,023

 

 

 

381,989

 

 

 

305

 

 

 

(271

)

Total cash, cash equivalents and marketable securities

 

$

481,798

 

 

$

481,763

 

 

$

306

 

 

$

(271

)
Schedule of Available-For-Sale Securities Reported at Fair Value

Available-for-sale securities are reported at fair value on the balance sheets and were classified along with cash as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Cash

 

$

67,833

 

 

$

87,415

 

Cash equivalents

 

 

114,993

 

 

 

12,360

 

Total cash and cash equivalents

 

 

182,826

 

 

 

99,775

 

Marketable securities

 

 

579,005

 

 

 

382,023

 

Total cash, cash equivalents and marketable securities

 

$

761,831

 

 

$

481,798

 
Schedule of Estimated Fair Value and Gross Unrealized Losses of Cash Equivalents and Marketable Securities, Classified by Length of Time in Continuous Unrealized Loss Position

The estimated fair value and gross unrealized losses of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024 are as follows:

 

 

Fair Value

 

 

Gross Unrealized Losses

 

(In thousands)

 

December 31,
2025

 

 

December 31,
2024

 

 

December 31,
2025

 

 

December 31,
2024

 

Less than 12 months

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government bonds and notes

 

$

38,473

 

 

$

83,162

 

 

$

(48

)

 

$

(162

)

Corporate bonds, commercial paper and notes

 

 

88,597

 

 

 

48,360

 

 

 

(65

)

 

 

(109

)

Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months

 

 

127,070

 

 

 

131,522

 

 

 

(113

)

 

 

(271

)

12 months or greater

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government bonds and notes

 

 

1,692

 

 

 

—

 

 

 

(2

)

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

1,660

 

 

 

—

 

 

 

(1

)

 

 

—

 

Total marketable securities in a continuous unrealized loss position for 12 months or greater

 

 

3,352

 

 

 

—

 

 

 

(3

)

 

 

—

 

Total cash equivalents and marketable securities in a continuous unrealized loss position

 

$

130,422

 

 

$

131,522

 

 

$

(116

)

 

$

(271

)
Schedule of Contractual Maturities of Cash Equivalents and Marketable Securities

The contractual maturities of cash equivalents (excluding money market funds which have no maturity) and marketable securities are summarized as follows:

 

(In thousands)

 

December 31,
2025

 

Due in less than one year

 

$

514,036

 

Due from one year through three years

 

 

132,685

 

Total

 

$

646,721

 
v3.25.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Financial Instruments and Liabilities Carried at Fair Value and Their Valuation by Respective Pricing Levels

The following table presents the financial instruments and liabilities that are carried at fair value and summarizes their valuation by the respective pricing levels detailed in Note 2, “Summary of Significant Accounting Policies,” as of December 31, 2025 and 2024:

 

 

As of December 31, 2025

 

(In thousands)

 

Total

 

 

Quoted Market
Prices in Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

47,277

 

 

$

47,277

 

 

$

—

 

 

$

—

 

Time deposits

 

 

15,540

 

 

 

—

 

 

 

15,540

 

 

 

—

 

U.S. Government bonds and notes

 

 

178,297

 

 

 

—

 

 

 

178,297

 

 

 

—

 

Non-U.S. Government bonds and notes

 

 

3,983

 

 

 

—

 

 

 

3,983

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

448,901

 

 

 

—

 

 

 

448,901

 

 

 

—

 

Total assets carried at fair value

 

$

693,998

 

 

$

47,277

 

 

$

646,721

 

 

$

—

 

 

 

As of December 31, 2024

 

(In thousands)

 

Total

 

 

Quoted Market
Prices in Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6,025

 

 

$

6,025

 

 

$

—

 

 

$

—

 

Time deposits

 

 

12,870

 

 

 

—

 

 

 

12,870

 

 

 

—

 

U.S. Government bonds and notes

 

 

220,056

 

 

 

—

 

 

 

220,056

 

 

 

—

 

Corporate bonds, commercial paper and notes

 

 

155,432

 

 

 

—

 

 

 

155,432

 

 

 

—

 

Total assets carried at fair value

 

$

394,383

 

 

$

6,025

 

 

$

388,358

 

 

$

—

 
Schedule of Additional Information About Liabilities Measured at Fair Value With Level 3 Inputs The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value, as of December 31, 2024:

 

 

Years Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

Balance as of beginning of period

 

$

12,500

 

 

$

14,800

 

Change in fair value of earn-out liability due to remeasurement

 

 

(5,044

)

 

 

9,234

 

Change in fair value of earn-out liability due to achievement of revenue target

 

 

(7,456

)

 

 

(11,534

)

Balance as of end of period

 

$

—

 

 

$

12,500

 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Undiscounted Cash Flows and Operating Lease Liabilities

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2025 (in thousands):

 

Years ending December 31,

 

Amount

 

2026

 

$

7,492

 

2027

 

 

6,002

 

2028

 

 

4,869

 

2029

 

 

4,871

 

2030

 

 

4,232

 

Thereafter

 

 

687

 

Total minimum lease payments

 

 

28,153

 

Less: amount of lease payments representing interest

 

 

(3,172

)

Present value of future minimum lease payments

 

 

24,981

 

Less: current obligations under leases

 

 

(6,310

)

Long-term lease obligations

 

$

18,671

 
v3.25.4
Balance Sheet Details (Tables)
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Inventory

Inventories consisted of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Raw materials

 

$

17,255

 

 

$

14,777

 

Work in process

 

 

17,039

 

 

 

9,646

 

Finished goods

 

 

9,804

 

 

 

20,211

 

Total

 

$

44,098

 

 

$

44,634

 

 

(1)
As of December 31, 2025 and 2024, the Company had inventory reserve balances of approximately $8.1 million and $6.7 million included in the Consolidated Balance Sheets, respectively.
Components of Property, Plant and Equipment, Net

Property and equipment, net is comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Computer software

 

$

57,147

 

 

$

44,745

 

Computer equipment

 

 

41,005

 

 

 

38,282

 

Leasehold improvements

 

 

36,343

 

 

 

31,973

 

Machinery

 

 

66,882

 

 

 

49,204

 

Furniture and fixtures

 

 

14,739

 

 

 

14,164

 

Construction in progress

 

 

7,413

 

 

 

7,789

 

Property and equipment, gross

 

 

223,529

 

 

 

186,157

 

Less accumulated depreciation and amortization

 

 

(110,478

)

 

 

(110,648

)

Property and equipment, net

 

$

113,051

 

 

$

75,509

 
Other Current Liabilities

Other current liabilities are comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Price protection liability

 

$

7,865

 

 

$

4,677

 

Other current liabilities

 

 

3,576

 

 

 

5,462

 

Total

 

$

11,441

 

 

$

10,139

 
Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss is comprised of the following:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Foreign currency translation adjustments

 

$

(740

)

 

$

(1,144

)

Unrealized gain (loss) on available-for-sale securities, net of tax

 

 

616

 

 

 

(116

)

Total

 

$

(124

)

 

$

(1,260

)
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Material Contractual Obligations

As of December 31, 2025, the Company’s material contractual obligations were as follows:

 

(In thousands)

 

Total

 

 

2026

 

 

2027

 

 

2028

 

Contractual obligations (1) (2)

 

 

 

 

 

 

 

 

 

 

 

 

Software licenses (3)

 

$

40,090

 

 

$

17,088

 

 

$

16,230

 

 

$

6,772

 

Other contractual obligations

 

 

138

 

 

 

138

 

 

 

—

 

 

 

—

 

Total

 

$

40,228

 

 

$

17,226

 

 

$

16,230

 

 

$

6,772

 

 

(1)
The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $25.7 million, including $24.3 million recorded as a reduction of long-term deferred tax assets and $1.4 million in long-term income taxes payable as of December 31, 2025.
(2)
For the Company’s lease commitments as of December 31, 2025, refer to Note 10, “Leases.”
(3)
The Company has commitments with various software vendors for agreements generally having terms longer than one year.
v3.25.4
Equity Incentive Plans and Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Shares Available for Grant

A summary of shares available for grant under the Company’s plans is as follows:

 

 

Shares Available
for Grant

 

Total shares available for grant as of December 31, 2022

 

 

7,655,769

 

Increase in shares approved for issuance (1)

 

 

5,210,000

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(2,082,334

)

Nonvested equity stock and stock units forfeited (2)

 

 

1,170,715

 

Total shares available for grant as of December 31, 2023

 

 

11,954,150

 

Stock options expired

 

 

1,125

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(1,482,074

)

Nonvested equity stock and stock units forfeited (2)

 

 

416,677

 

Total shares available for grant as of December 31, 2024

 

 

10,889,878

 

Nonvested equity stock and stock units granted (2) (3)

 

 

(1,497,461

)

Nonvested equity stock and stock units forfeited (2)

 

 

341,211

 

Total shares available for grant as of December 31, 2025

 

 

9,733,628

 

 

(1)
On April 27, 2023, the Company’s stockholders approved these additional shares to be reserved for issuance under the 2015 Plan.
(2)
For purposes of determining the number of shares available for grant under the 2015 Plan against the maximum number of shares authorized, each restricted stock unit granted prior to April 27, 2023 reduces the number of shares available for grant by 1.5 shares and each restricted stock unit forfeited increases shares available for grant by 1.5 shares. Each restricted stock unit granted on or after April 27, 2023 reduces the number of shares available for grant by 1.0 share and each restricted stock unit forfeited increases shares available for grant by 1.0 share.
(3)
Amounts include approximately 0.2 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in each of the years 2023, 2024 and 2025, respectively, and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.
Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s equity incentive plans for the years ended December 31, 2025, 2024 and 2023 and information regarding stock options outstanding and vested as of December 31, 2025:

 

 

Options Outstanding

 

 

 

 

 

 

 

 

Number of
Shares

 

 

Weighted-
Average
Exercise Price
Per Share

 

 

Weighted-
Average
Remaining
Contractual
Term (years)

 

 

Aggregate
Intrinsic Value
(In thousands)

 

Outstanding as of December 31, 2022

 

 

432,443

 

 

$

11.60

 

 

 

 

 

 

 

Options exercised

 

 

(307,711

)

 

$

11.61

 

 

 

 

 

 

 

Outstanding as of December 31, 2023

 

 

124,732

 

 

$

11.60

 

 

 

 

 

 

 

Options exercised

 

 

(33,607

)

 

$

9.42

 

 

 

 

 

 

 

Options expired

 

 

(1,125

)

 

$

8.76

 

 

 

 

 

 

 

Outstanding as of December 31, 2024

 

 

90,000

 

 

$

12.45

 

 

 

 

 

 

 

Options exercised

 

 

(1,100

)

 

$

13.60

 

 

 

 

 

$

86

 

Outstanding and vested as of December 31, 2025

 

 

88,900

 

 

$

12.43

 

 

 

2.53

 

 

$

7,064

 
Weighted-average Assumptions for Employee Stock Purchase Plan

 

Employee Stock Purchase Plan for
Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Employee Stock Purchase Plan

 

 

 

 

 

 

 

 

 

Expected stock price volatility

 

51%-65%

 

 

47%-54%

 

 

48%-53%

 

Risk free interest rate

 

3.80%-4.22%

 

 

4.42%-5.43%

 

 

5.14%-5.51%

 

Expected term (in years)

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Weighted-average fair value of purchase rights granted under the purchase plan

 

$

23.63

 

 

$

14.96

 

 

$

14.86

 
Schedule of Nonvested Equity Stock and Stock Units Activity

The following table reflects the activity related to nonvested equity stock and stock units for the years ended December 31, 2025, 2024 and 2023:

 

Nonvested Equity Stock and Stock Units

 

Shares

 

 

Weighted-Average
Grant-Date
Fair Value

 

Nonvested as of December 31, 2022

 

 

4,718,060

 

 

$

22.78

 

Granted

 

 

1,268,973

 

 

$

46.93

 

Vested

 

 

(1,797,002

)

 

$

18.07

 

Forfeited

 

 

(759,839

)

 

$

28.60

 

Nonvested as of December 31, 2023

 

 

3,430,192

 

 

$

32.90

 

Granted

 

 

1,312,367

 

 

$

57.03

 

Vested

 

 

(1,289,945

)

 

$

27.14

 

Forfeited

 

 

(302,453

)

 

$

39.07

 

Nonvested as of December 31, 2024

 

 

3,150,161

 

 

$

44.72

 

Granted

 

 

1,269,985

 

 

$

55.46

 

Vested

 

 

(1,296,894

)

 

$

38.04

 

Forfeited

 

 

(241,423

)

 

$

51.16

 

Nonvested as of December 31, 2025

 

 

2,881,829

 

 

$

51.91

 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Taxes

Income before taxes consisted of the following:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Domestic

 

$

277,511

 

 

$

190,382

 

 

$

154,434

 

Foreign

 

 

4,445

 

 

 

9,661

 

 

 

32,726

 

 

$

281,956

 

 

$

200,043

 

 

$

187,160

 
Components of Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes was comprised of:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Federal:

 

 

 

 

 

 

 

 

 

Current

 

$

(153

)

 

$

2,760

 

 

$

1,075

 

Deferred

 

 

30,407

 

 

 

(9,447

)

 

 

(126,734

)

State:

 

 

 

 

 

 

 

 

 

Current

 

 

(154

)

 

 

468

 

 

 

893

 

Deferred

 

 

217

 

 

 

1,245

 

 

 

(17,264

)

Foreign:

 

 

 

 

 

 

 

 

 

Current

 

 

22,218

 

 

 

26,869

 

 

 

(3,362

)

Deferred

 

 

(1,034

)

 

 

(1,673

)

 

 

(1,352

)

 

$

51,501

 

 

$

20,222

 

 

$

(146,744

)
Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows:

 

 

Year Ended December 31, 2025

 

(In thousands, except percentages)

 

$

 

 

%

 

Provision for income taxes at U.S. federal statutory rate

 

$

59,211

 

 

 

21.0

%

State and local income tax expense

 

 

306

 

 

 

0.1

 

Foreign tax effects:

 

 

 

 

 

 

South Korea

 

 

 

 

 

 

Withholding tax

 

 

19,245

 

 

 

6.8

 

Other

 

 

46

 

 

 

—

 

Other foreign jurisdictions

 

 

2,379

 

 

 

0.9

 

Effect of cross-border tax laws:

 

 

 

 

 

 

Foreign-derived intangible income deduction

 

 

(3,980

)

 

 

(1.4

)

Other

 

 

590

 

 

 

0.2

 

Tax credits:

 

 

 

 

 

 

 Research and development credit

 

 

(6,360

)

 

 

(2.3

)

 Foreign tax credit

 

 

(21,974

)

 

 

(7.8

)

Valuation allowances

 

 

344

 

 

 

0.1

 

Non-taxable or non-deductible items:

 

 

 

 

 

 

Stock-based compensation

 

 

(7,424

)

 

 

(2.6

)

Section 162(m) limitation

 

 

6,921

 

 

 

2.5

 

Other

 

 

2,164

 

 

 

0.8

 

Changes in unrecognized tax benefits

 

 

361

 

 

 

0.1

 

Other adjustments

 

 

(328

)

 

 

(0.1

)

Total tax provision and effective tax rate

 

$

51,501

 

 

 

18.3

%
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

U.S. federal statutory rate

 

 

21.0

%

 

 

21.0

%

State income tax expense (benefit)

 

 

0.9

 

 

 

(8.7

)

Withholding tax

 

 

8.4

 

 

 

3.9

 

Foreign rate differential

 

 

(1.4

)

 

 

(2.6

)

Research and development credit

 

 

(1.9

)

 

 

(2.9

)

Executive compensation

 

 

4.0

 

 

 

3.9

 

Stock-based compensation

 

 

(6.1

)

 

 

(5.2

)

Foreign tax credit

 

 

(8.4

)

 

 

(2.5

)

Foreign-derived intangible income deduction

 

 

(6.8

)

 

 

(1.9

)

Acquisition

 

 

(0.1

)

 

 

1.6

 

Other

 

 

0.5

 

 

 

0.3

 

Valuation allowance

 

—

 

 

 

(85.3

)

 

 

10.1

%

 

 

(78.4

)%

 
Components of the Net Deferred Tax Assets (Liabilities)

The components of the net deferred tax assets (liabilities) were as follows:

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Lease liabilities

 

$

5,284

 

 

$

6,384

 

Other timing differences, accruals and reserves

 

 

3,377

 

 

 

3,893

 

Deferred equity compensation

 

 

4,749

 

 

 

6,678

 

Net operating loss carryovers

 

 

12,003

 

 

 

12,003

 

Capitalized research

 

 

71,605

 

 

 

96,739

 

Tax credits

 

 

55,725

 

 

 

47,960

 

Total gross deferred tax assets

 

 

152,743

 

 

 

173,657

 

Deferred tax liabilities:

 

 

 

 

 

 

Lease right-of-use assets

 

 

(3,560

)

 

 

(4,498

)

Depreciation and amortization

 

 

(16,570

)

 

 

(9,077

)

Total gross deferred tax liabilities

 

 

(20,130

)

 

 

(13,575

)

Total net deferred tax assets

 

 

132,613

 

 

 

160,082

 

Valuation allowance

 

 

(29,021

)

 

 

(26,790

)

Net deferred tax assets

 

$

103,592

 

 

$

133,292

 

 

 

As of December 31,

 

(In thousands)

 

2025

 

 

2024

 

Reported as:

 

 

 

 

 

 

Non-current deferred tax assets

 

$

105,542

 

 

$

136,466

 

Non-current deferred tax liabilities

 

 

(1,950

)

 

 

(3,174

)

Net deferred tax assets

 

$

103,592

 

 

$

133,292

 
Summary of Income Taxes Paid, Net of Refunds by Jurisdiction

Disclosed below is a summary of income taxes paid, net of refunds, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025:

 

(In thousands)

 

Income Taxes Paid

 

U.S. federal

 

$

1,500

 

U.S. state and local

 

 

67

 

Foreign:

 

 

 

South Korea

 

 

19,605

 

Taiwan

 

 

1,902

 

Other

 

 

1,918

 

Total income taxes paid

 

$

24,992

 
Summary of Valuation Allowance

The following table presents the tax valuation allowance information for the years ended December 31, 2025, 2024 and 2023:

 

(In thousands)

 

Balance at
Beginning of
Period

 

 

Charged to
Operations

 

 

Charged to
Other
Account*

 

 

Valuation
Allowance
Release

 

 

Balance at
End of
Period

 

Tax Valuation Allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2023

 

$

201,883

 

 

 

1,776

 

 

 

(717

)

 

 

(177,886

)

 

$

25,056

 

Year ended December 31, 2024

 

$

25,056

 

 

 

1,784

 

 

 

(50

)

 

 

—

 

 

$

26,790

 

Year ended December 31, 2025

 

$

26,790

 

 

 

2,231

 

 

 

—

 

 

 

—

 

 

$

29,021

 

 

* Amounts not charged to operations are charged to other comprehensive income or retained earnings.
Schedule of Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits for the years ended December 31, 2025, 2024 and 2023 was as follows:

 

 

Years Ended December 31,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Balance as of January 1

 

$

203,794

 

 

$

184,921

 

 

$

164,531

 

Tax positions related to current year:

 

 

 

 

 

 

 

 

 

Additions

 

 

16,178

 

 

 

19,844

 

 

 

19,403

 

Tax positions related to prior years:

 

 

 

 

 

 

 

 

 

Additions

 

 

619

 

 

 

—

 

 

 

1,378

 

Reductions

 

 

(112,589

)

 

 

(971

)

 

 

(391

)

Balance as of December 31

 

$

108,002

 

 

$

203,794

 

 

$

184,921

 
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]      
Goodwill impairment charges $ 0 $ 0 $ 0
Impairment of finite-lived assets 0 0 0
Impairment of indefinite-lived assets $ 0 $ 0 $ 0
Maximum maturity period of available-for-sale securities (in years) 3 years    
Minimum      
Summary Of Significant Accounting Policies [Line Items]      
License agreement, term of agreement 1 year    
Long-duration contracts, assumptions by product and guarantee, discount rate 5.00%    
Lessee, operating lease, remaining lease term 1 year    
Useful life (in years) 6 months    
Property, plant and equipment, estimated useful life (in years) 3 years    
Maximum      
Summary Of Significant Accounting Policies [Line Items]      
License agreement, term of agreement 10 years    
Long-duration contracts, assumptions by product and guarantee, discount rate 10.00%    
Lessee, operating lease, remaining lease term 7 years    
Useful life (in years) 10 years    
Property, plant and equipment, estimated useful life (in years) 7 years    
Contingently issuable ESPP shares      
Summary Of Significant Accounting Policies [Line Items]      
Discount from the fair market value (as a percentage) 15.00%    
v3.25.4
Recent Accounting Pronouncements - Additional Information (Details)
Dec. 31, 2025
Dec. 31, 2024
Accounting Standards Update 2023-07    
New accounting pronouncements or change in accounting principle    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]   true
Change in Accounting Principle, Accounting Standards Update, Adoption Date   Dec. 31, 2024
Accounting Standards Update 2023-09    
New accounting pronouncements or change in accounting principle    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true  
Change in Accounting Principle, Accounting Standards Update, Adoption Date Dec. 31, 2025  
v3.25.4
Revenue Recognition - Summary of Contract Balances (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Unbilled receivables $ 28,438 $ 29,104
Deferred revenue $ 31,601 $ 21,852
v3.25.4
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Contract balances, revenue recognized $ 19.7 $ 17.5
v3.25.4
Revenue Recognition - Additional Information (Details 1)
$ in Millions
Dec. 31, 2025
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligations $ 34.7
Remaining performance obligation, expected timing of satisfaction, start date: 2026-01-01  
Remaining performance obligation, expected timing of satisfaction  
Remaining performance obligations, expected timing of satisfaction period 2 years
v3.25.4
Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net Income (Loss) $ 230,455 $ 179,821 $ 333,904
Denominator:      
Weighted-average common shares outstanding, basic (in shares) 107,548 107,438 108,183
Effect of potential dilutive common shares 1,687 1,603 2,706
Denominator:      
Weighted-average common shares outstanding, diluted (in shares) 109,235 109,041 110,889
Basic net income per share $ 2.14 $ 1.67 $ 3.09
Diluted net income per share $ 2.11 $ 1.65 $ 3.01
v3.25.4
Earnings Per Share - Additional Information (Details) - Convertible senior notes - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Anti-dilutive shares excluded from calculation of earnings per share    
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares) 0.3  
1.375% Convertible senior notes due 2023    
Anti-dilutive shares excluded from calculation of earnings per share    
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares) 0.3  
Convertible notes, stated interest rate (as a percentage) 1.375%  
Carrying value   $ 10.4
v3.25.4
Intangible Assets, Net - Schedule of Components of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Components of intangible assets    
Gross carrying amount $ 325,097 $ 325,797
Accumulated amortization (314,926) (308,738)
Net Carrying Amount $ 10,171 17,059
Minimum    
Components of intangible assets    
Useful life (in years) 6 months  
Maximum    
Components of intangible assets    
Useful life (in years) 10 years  
Existing technology    
Components of intangible assets    
Gross carrying amount $ 287,301 288,001
Accumulated amortization (277,130) (270,954)
Net Carrying Amount $ 10,171 $ 17,047
Existing technology | Minimum    
Components of intangible assets    
Useful life (in years) 3 years 3 years
Existing technology | Maximum    
Components of intangible assets    
Useful life (in years) 10 years 10 years
Customer contracts and contractual relationships    
Components of intangible assets    
Gross carrying amount $ 37,496 $ 37,496
Accumulated amortization (37,496) (37,484)
Net Carrying Amount $ 0 $ 12
Customer contracts and contractual relationships | Minimum    
Components of intangible assets    
Useful life (in years) 6 months 6 months
Customer contracts and contractual relationships | Maximum    
Components of intangible assets    
Useful life (in years) 10 years 10 years
Non-compete agreements and trademarks    
Components of intangible assets    
Gross carrying amount $ 300 $ 300
Accumulated amortization (300) (300)
Net Carrying Amount $ 0 $ 0
Useful life (in years) 3 years 3 years
v3.25.4
Intangible Assets, Net - Schedule of Components of Intangible Assets (Parenthetical) (Details) - PLDA Group - Existing technology
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, period increase (decrease) $ 7.4
Useful life (in years) 5 years
v3.25.4
Intangible Assets, Net - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 6,878 $ 11,710 $ 14,741
v3.25.4
Intangible Assets, Net - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Estimated future amortization expense of intangible assets    
2026 $ 5,530  
2027 1,928  
2028 1,480  
2029 1,233  
Total intangible assets $ 10,171 $ 17,059
v3.25.4
Segments and Major Customers - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Dec. 31, 2024
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]    
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember  
Number of reportable segments | Segment 1  
Number of operating segments | Segment 1  
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The CODM uses net income to assess segment performance, allocate resources and manage the business on a consolidated basis. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.  
Property and equipment, net $ 113,051 $ 75,509
UNITED STATES    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net 108,000 70,400
INDIA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net 2,500 2,600
Other foreign locations    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net $ 2,600 $ 2,500
v3.25.4
Segments and Major Customers - Schedule of Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment reporting information      
Impairment of assets $ 0 $ (1,071) $ (10,045)
Interest and other income (expense), net 21,738 17,034 33,521
Change in fair value of earn-out liability 0 (5,044) 9,234
Restructuring charges 0 0 (9,368)
Gain on divestiture 0 0 90,784
Provision for (benefit from) income taxes (51,501) (20,222) 146,744
Net income 230,455 179,821 333,904
Reportable Segment      
Segment reporting information      
Total revenue 707,630 556,624 461,117
Adjusted cost of revenue [1] (136,791) (98,368) (89,322)
Adjusted research and development [2] (167,048) (146,431) (140,793)
Adjusted sales, general and administrative [3] (82,322) (76,038) (76,669)
Stock-based compensation expense [4] (54,267) (44,879) (45,011)
Amortization of acquired intangible assets [4] (6,878) (11,710) (14,741)
Impairment of assets 0 (1,071) (10,045)
Acquisition and divestiture-related costs [5] (106) (162) (1,625)
Interest and other income (expense), net 21,738 17,034 33,521
Change in fair value of earn-out liability 0 5,044 (9,234)
Restructuring charges 0 0 (9,368)
Gain on divestiture 0 0 90,784
Other [6] 0 0 (1,454)
Provision for (benefit from) income taxes (51,501) (20,222) 146,744
Net income $ 230,455 $ 179,821 $ 333,904
[1] Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets
[2] Excludes stock-based compensation expenses and retention bonus expense related to acquisitions
[3] Excludes stock-based compensation expenses, acquisition-related costs and retention bonus expense related to acquisitions.
[4] The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
[5] The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and divestitures and have no direct correlation to the Company’s ongoing operating results.
[6] Includes expense on abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.
v3.25.4
Segments and Major Customers - Schedule of Significant Expense Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting [Abstract]      
Payroll and benefits $ 154,943 $ 129,228 $ 123,056
Variable research and development expenses [1] 27,097 27,342 28,228
Professional fees 19,889 20,055 22,148
Temporary labor services and consulting expenses 12,634 14,264 13,577
Facilities costs 12,542 11,853 12,347
Amortization and depreciation 11,916 10,076 10,144
Other expenses 10,349 9,651 7,962
Total adjusted operating expenses $ 249,370 $ 222,469 $ 217,462
[1] Includes primarily software tools, software licenses and prototyping costs.
v3.25.4
Segments and Major Customers (Details) - Customer concentration risk - Accounts receivable
Dec. 31, 2025
Dec. 31, 2024
Customer 1    
Concentration risk    
Accounts receivable from major customer as a percentage of total accounts receivable 35.00% 39.00%
Customer 2    
Concentration risk    
Accounts receivable from major customer as a percentage of total accounts receivable 22.00% 17.00%
v3.25.4
Segments and Major Customers (Details 2) - Customer concentration risk - Revenue
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Customer A      
Concentration risk      
Revenue from major customer as a percentage of total revenue 23.00% 23.00% 27.00%
Customer B      
Concentration risk      
Revenue from major customer as a percentage of total revenue 18.00% 17.00% 18.00%
Customer C      
Concentration risk      
Revenue from major customer as a percentage of total revenue   12.00%  
v3.25.4
Segments and Major Customers (Details 3) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Major customer disclosure      
Revenue $ 707,630 $ 556,624 $ 461,117
South Korea      
Major customer disclosure      
Revenue 329,256 197,515 152,328
Singapore      
Major customer disclosure      
Revenue 163,821 67,318 53,327
United States      
Major customer disclosure      
Revenue 124,101 201,466 176,821
Other countries      
Major customer disclosure      
Revenue $ 90,452 $ 90,325 $ 78,641
v3.25.4
Marketable Securities - Schedule of Cash Equivalents and Marketable Securities Classified as Available-For-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Cash and cash equivalents    
Total cash and cash equivalents, fair value $ 182,826 $ 99,775
Total cash and cash equivalents, amortized cost 182,822 99,774
Gross unrealized gains 7 1
Gross unrealized losses (3) 0
Marketable securities    
Fair value 579,005 382,023
Amortized cost 578,506 381,989
Gross unrealized gains 612 305
Gross unrealized losses (113) (271)
Cash, cash equivalents and marketable securities    
Fair value 761,831 481,798
Amortized cost 761,328 481,763
Gross unrealized gains 619 306
Gross unrealized losses (116) (271)
Time deposits    
Marketable securities    
Fair value 15,540 12,870
Amortized cost 15,540 12,870
Gross unrealized gains 0 0
Gross unrealized losses 0 0
U.S. Government bonds and notes    
Cash and cash equivalents    
Fair value 16,936  
Amortized cost 16,932  
Gross unrealized gains 4  
Gross unrealized losses 0  
Marketable securities    
Fair value 161,361 220,056
Amortized cost 161,231 220,034
Gross unrealized gains 180 184
Gross unrealized losses (50) (162)
Non-U.S. Government bonds and notes    
Marketable securities    
Fair value 3,983  
Amortized cost 3,980  
Gross unrealized gains 3  
Gross unrealized losses 0  
Corporate bonds, commercial paper and notes    
Marketable securities    
Fair value 398,121 149,097
Amortized cost 397,755 149,085
Gross unrealized gains 429 121
Gross unrealized losses (63) (109)
Cash    
Cash and cash equivalents    
Fair value 67,833 87,415
Amortized cost 67,833 87,415
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Money market funds    
Cash and cash equivalents    
Fair value 47,277 6,025
Amortized cost 47,277 6,025
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Corporate bonds, commercial paper and notes    
Cash and cash equivalents    
Fair value 50,780 6,335
Amortized cost 50,780 6,334
Gross unrealized gains 3 1
Gross unrealized losses (3) 0
Cash equivalents    
Cash and cash equivalents    
Fair value 114,993 12,360
Amortized cost 114,989 12,359
Gross unrealized gains 7 1
Gross unrealized losses $ (3) $ 0
v3.25.4
Marketable Securities - Schedule of Available-For-Sale Securities Reported at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt securities, available-for-sale    
Total cash and cash equivalents $ 182,826 $ 99,775
Marketable securities 579,005 382,023
Total cash, cash equivalents and marketable securities 761,831 481,798
Cash    
Debt securities, available-for-sale    
Fair value 67,833 87,415
Cash equivalents    
Debt securities, available-for-sale    
Fair value 114,993 12,360
Marketable securities    
Debt securities, available-for-sale    
Marketable securities $ 579,005 $ 382,023
v3.25.4
Marketable Securities - Schedule of Estimated Fair Value and Gross Unrealized Losses of Cash Equivalents and Marketable Securities, Classified by Length of Time in Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt securities, available-for-sale    
Less than 12 months, fair value $ 127,070 $ 131,522
Less than 12 months, gross unrealized losses (113) (271)
12 months or greater, fair value 3,352 0
12 months or greater, gross unrealized losses (3) 0
Fair value 130,422 131,522
Gross unrealized losses (116) (271)
U.S. Government bonds and notes    
Debt securities, available-for-sale    
Less than 12 months, fair value 38,473 83,162
Less than 12 months, gross unrealized losses (48) (162)
12 months or greater, fair value 1,692 0
12 months or greater, gross unrealized losses (2) 0
Corporate bonds, commercial paper and notes    
Debt securities, available-for-sale    
Less than 12 months, fair value 88,597 48,360
Less than 12 months, gross unrealized losses (65) (109)
12 months or greater, fair value 1,660 0
12 months or greater, gross unrealized losses $ (1) $ 0
v3.25.4
Marketable Securities - Schedule of Contractual Maturities of Cash Equivalents and Marketable Securities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Contractual maturities  
Contractual maturities, fair value, due in less than one year $ 514,036
Contractual maturities, fair value, due from one year through three years 132,685
Contractual maturities, fair value $ 646,721
v3.25.4
Fair Value of Financial Instruments - Summary of Financial Instruments and Liabilities Carried at Fair Value and Their Valuation by Respective Pricing Levels (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets carried at fair value    
Marketable securities $ 579,005 $ 382,023
Time deposits    
Assets carried at fair value    
Marketable securities 15,540 12,870
U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 161,361 220,056
Non-U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 3,983  
Corporate notes, bonds and commercial paper    
Assets carried at fair value    
Marketable securities 398,121 149,097
Recurring basis    
Assets carried at fair value    
Total assets carried at fair value 693,998 394,383
Recurring basis | Money market funds    
Assets carried at fair value    
Marketable securities 47,277 6,025
Recurring basis | Time deposits    
Assets carried at fair value    
Marketable securities 15,540 12,870
Recurring basis | U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 178,297 220,056
Recurring basis | Non-U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 3,983  
Recurring basis | Corporate notes, bonds and commercial paper    
Assets carried at fair value    
Marketable securities 448,901 155,432
Recurring basis | Quoted market prices in active markets (Level 1)    
Assets carried at fair value    
Total assets carried at fair value 47,277 6,025
Recurring basis | Quoted market prices in active markets (Level 1) | Money market funds    
Assets carried at fair value    
Marketable securities 47,277 6,025
Recurring basis | Quoted market prices in active markets (Level 1) | Time deposits    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Quoted market prices in active markets (Level 1) | U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Quoted market prices in active markets (Level 1) | Non-U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 0  
Recurring basis | Quoted market prices in active markets (Level 1) | Corporate notes, bonds and commercial paper    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Significant other observable inputs (Level 2)    
Assets carried at fair value    
Total assets carried at fair value 646,721 388,358
Recurring basis | Significant other observable inputs (Level 2) | Money market funds    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Significant other observable inputs (Level 2) | Time deposits    
Assets carried at fair value    
Marketable securities 15,540 12,870
Recurring basis | Significant other observable inputs (Level 2) | U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 178,297 220,056
Recurring basis | Significant other observable inputs (Level 2) | Non-U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 3,983  
Recurring basis | Significant other observable inputs (Level 2) | Corporate notes, bonds and commercial paper    
Assets carried at fair value    
Marketable securities 448,901 155,432
Recurring basis | Significant unobservable inputs (Level 3)    
Assets carried at fair value    
Total assets carried at fair value 0 0
Recurring basis | Significant unobservable inputs (Level 3) | Money market funds    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Significant unobservable inputs (Level 3) | Time deposits    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Significant unobservable inputs (Level 3) | U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 0 0
Recurring basis | Significant unobservable inputs (Level 3) | Non-U.S. Government bonds and notes    
Assets carried at fair value    
Marketable securities 0  
Recurring basis | Significant unobservable inputs (Level 3) | Corporate notes, bonds and commercial paper    
Assets carried at fair value    
Marketable securities $ 0 $ 0
v3.25.4
Fair Value of Financial Instruments - Schedule of Additional Information About Liabilities Measured at Fair Value With Level 3 Inputs (Details) - Earn-out liability - Significant unobservable inputs (Level 3) - Recurring basis - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair value, assets measured on recurring basis, unobservable input reconciliation    
Balance as of beginning of period $ 12,500 $ 14,800
Change in fair value of earn-out liability due to remeasurement (5,044) 9,234
Change in fair value of earn-out liability due to achievement of revenue target (7,456) (11,534)
Balance as of end of period $ 0 $ 12,500
v3.25.4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity security without readily determinable fair value          
Gain on sale of non-marketable equity security, net     $ 0 $ 0 $ 23,924
Proceeds from sale of non-marketable equity security     $ 0 22,796 $ 0
Private company          
Equity security without readily determinable fair value          
Non-marketable equity security, ownership percentage   25.00%     25.00%
Sale of equity method investment, total consideration transferred   $ 25,000      
Realized gain on sale of equity method investment, gross   25,000      
Transaction costs   1,100      
Gain on sale of non-marketable equity security, net   $ 23,900      
Proceeds from sale of non-marketable equity security $ 22,800        
Recurring basis | Significant unobservable inputs (Level 3) | Earn-out liability          
Equity security without readily determinable fair value          
Change in fair value of earn-out liability due to remeasurement       $ (5,044) $ 9,234
v3.25.4
Leases - Schedule of Undiscounted Cash Flows and Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 7,492  
2027 6,002  
2028 4,869  
2029 4,871  
2030 4,232  
Thereafter 687  
Total minimum lease payments 28,153  
Less: amount of lease payments representing interest (3,172)  
Present value of future minimum lease payments 24,981  
Less: current obligations under leases (6,310) $ (5,617)
Long-term lease obligations $ 18,671 $ 24,534
v3.25.4
Leases - Additional Details (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease, weighted-average remaining lease term 4 years 6 months    
Operating lease, weighted-average discount rate (as a percentage) 7.60%    
Operating lease cost $ 5.9 $ 5.5 $ 6.0
Operating lease payments $ 7.2 $ 6.1 $ 6.7
v3.25.4
Balance Sheet Details - Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventory    
Raw materials $ 17,255 $ 14,777
Work in process 17,039 9,646
Finished goods 9,804 20,211
Inventories $ 44,098 $ 44,634
v3.25.4
Balance Sheet Details - Inventory (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Inventory reserves $ 8.1 $ 6.7
v3.25.4
Balance Sheet Details - Components of Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, plant and equipment, net    
Property, plant and equipment, gross $ 223,529 $ 186,157
Less accumulated depreciation and amortization (110,478) (110,648)
Property, plant and equipment, net 113,051 75,509
Computer software    
Property, plant and equipment, net    
Property, plant and equipment, gross 57,147 44,745
Computer equipment    
Property, plant and equipment, net    
Property, plant and equipment, gross 41,005 38,282
Leasehold improvements    
Property, plant and equipment, net    
Property, plant and equipment, gross 36,343 31,973
Machinery    
Property, plant and equipment, net    
Property, plant and equipment, gross 66,882 49,204
Furniture and fixtures    
Property, plant and equipment, net    
Property, plant and equipment, gross 14,739 14,164
Construction in progress    
Property, plant and equipment, net    
Property, plant and equipment, gross $ 7,413 $ 7,789
v3.25.4
Balance Sheet Details - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]      
Depreciation expense $ 30.8 $ 26.1 $ 37.7
v3.25.4
Balance Sheet Details - Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities, Current [Abstract]    
Price protection liability $ 7,865 $ 4,677
Other current liabilities 3,576 5,462
Total other current liabilities $ 11,441 $ 10,139
v3.25.4
Balance Sheet Details - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accumulated other comprehensive income (Loss)    
Foreign currency translation adjustments $ (740) $ (1,144)
Unrealized gain (loss) on available-for-sale securities, net of tax 616 (116)
Total $ (124) $ (1,260)
v3.25.4
Convertible Notes - Additional Information (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt instrument        
Loss on fair value adjustment of derivatives, net   $ 0 $ 0 $ 240
Payments for settlement of warrants $ (10,700) $ 0 $ 0 $ (10,697)
Common stock        
Debt instrument        
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares)       284
Exercise of the convertible senior note hedges in connection with the conversion of convertible senior notes and retirement of the corresponding shares (in shares) 300     284
Convertible senior notes        
Debt instrument        
Repayments of convertible debt $ 10,400      
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares) 300      
1.375% Convertible senior notes due 2023 | Convertible senior notes        
Debt instrument        
Issuance of common stock in connection with the maturity of the convertible senior notes related to the settlement of the in-the-money conversion feature of the convertible senior notes (in shares) 300      
v3.25.4
Commitments and Contingencies - Schedule of Material Contractual Obligations (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
 [1],[2]
Contractual obligations  
Total contractual obligation $ 40,228
2026 17,226
2027 16,230
2028 6,772
Software licenses  
Contractual obligations  
Total contractual obligation 40,090 [3]
2026 17,088 [3]
2027 16,230 [3]
2028 6,772 [3]
Other Contractual Obligations  
Contractual obligations  
Total contractual obligation 138
2026 138
2027 0
2028 $ 0
[1] For the Company’s lease commitments as of December 31, 2025, refer to Note 10, “Leases.”
[2] The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $25.7 million, including $24.3 million recorded as a reduction of long-term deferred tax assets and $1.4 million in long-term income taxes payable as of December 31, 2025.
[3] The Company has commitments with various software vendors for agreements generally having terms longer than one year.
v3.25.4
Commitments and Contingencies - Schedule of Material Contractual Obligations (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Contractual Obligation [Line Items]        
Unrecognized tax benefit excluding foreign tax withholdings $ 25,700      
Unrecognized tax benefits $ 108,002 $ 203,794 $ 184,921 $ 164,531
Software licenses        
Contractual Obligation [Line Items]        
Terms of noncancellable license agreements, minimum (in years) 1 year      
Long-term deferred tax assets        
Contractual Obligation [Line Items]        
Unrecognized tax benefits $ 24,300 22,800    
Long-term income taxes payable        
Contractual Obligation [Line Items]        
Unrecognized tax benefits 1,000 $ 106,200    
Long-term income taxes payable | Unrecognized tax benefits, including interest        
Contractual Obligation [Line Items]        
Unrecognized tax benefits $ 1,400      
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
Plan
$ / shares
shares
Dec. 31, 2024
USD ($)
Plan
$ / shares
shares
Dec. 31, 2023
USD ($)
Plan
$ / shares
shares
Dec. 31, 2022
shares
Stock-based compensation        
Requisite service period 48 months      
Tenure of award 10 years      
Stock compensation plan        
Stock-based compensation        
Shares available for issuance | shares 9,733,628 10,889,878 11,954,150 7,655,769
Contingently issuable ESPP shares        
Stock-based compensation        
Number of employee stock purchase plans | Plan 1 1 1  
Minimum number of hours of weekly employment in order to qualify for eligibility in the plan 20 hours      
Minimum number of months of employment in a fiscal year in order to qualify for eligibility in the plan 5 months      
Offering period 6 months      
Percentage of the price at the beginning of the offering period or price at the end of each offering period to derive purchase price 85.00%      
Maximum share value per employee in any calendar year $ 25,000      
Employee stock purchase plan, shares issued during period | shares 166,458 119,350 172,711  
Employee stock purchase plan, weighted-average price per share | $ / shares $ 41.12 $ 43.14 $ 31.1  
Shares available for issuance | shares 2,100,000      
Stock-based compensation expense $ 2,700,000 $ 1,900,000 $ 1,800,000  
Unrecognized compensation cost $ 1,400,000      
Unrecognized compensation cost, weighted-average period 4 months      
Stock options        
Stock-based compensation        
Total fair value of options vested     $ 500,000  
Nonvested equity stock and stock units        
Stock-based compensation        
Requisite service period 4 years 4 years 4 years  
Stock-based compensation expense $ 51,500,000 $ 43,000,000 $ 43,100,000  
Unrecognized compensation cost $ 87,400,000      
Unrecognized compensation cost, weighted-average period 2 years      
Awards, nonvested grants in period | shares 1,269,985 1,312,367 1,268,973  
Awards, nonvested grants in period, fair value $ 70,400,000 $ 74,800,000 $ 60,700,000  
Nonvested equity stock and stock units | Minimum        
Stock-based compensation        
Awards, vesting rights (as a percentage) 0.00% 0.00% 0.00%  
Nonvested equity stock and stock units | Maximum        
Stock-based compensation        
Awards, vesting rights (as a percentage) 200.00% 200.00% 200.00%  
Nonvested equity stock and stock units | Director        
Stock-based compensation        
Requisite service period 1 year 1 year 1 year  
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Shares Available for Grant (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Shares available for grant      
Stock options expired   1,125  
Stock compensation plan      
Shares available for grant      
Shares available as of beginning of period 10,889,878 11,954,150 7,655,769
Stock options expired   1,125  
Increase in shares approved for issuance [1]     5,210,000
Nonvested equity stock and stock units granted (in shares) [3] (1,497,461) [2] (1,482,074) (2,082,334) [2]
Nonvested equity stock and stock units forfeited (in shares) [3] 341,211 416,677 1,170,715
Shares available as of end of period 9,733,628 10,889,878 11,954,150
[1] On April 27, 2023, the Company’s stockholders approved these additional shares to be reserved for issuance under the 2015 Plan.
[2] Amounts include approximately 0.2 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in each of the years 2023, 2024 and 2025, respectively, and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.
[3] For purposes of determining the number of shares available for grant under the 2015 Plan against the maximum number of shares authorized, each restricted stock unit granted prior to April 27, 2023 reduces the number of shares available for grant by 1.5 shares and each restricted stock unit forfeited increases shares available for grant by 1.5 shares. Each restricted stock unit granted on or after April 27, 2023 reduces the number of shares available for grant by 1.0 share and each restricted stock unit forfeited increases shares available for grant by 1.0 share.
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Shares Available for Grant (Parenthetical) (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Potential additional performance stock units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Nonvested equity stock and stock units granted (in shares) 200,000 200,000 200,000
Stock compensation plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Nonvested equity stock and stock units granted (in shares) [2] (1,497,461) [1] (1,482,074) (2,082,334) [1]
Stock compensation plan | Award date, period 1      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Conversion factor used to calculate the decrease in the number of shares available for grant resulting from the grant of restricted stock awards 1.5    
Conversion factor used to calculate the increase in the number of shares available for grant resulting from the forfeiture of restricted stock awards 1.5    
Stock compensation plan | Award date, period 2      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Conversion factor used to calculate the decrease in the number of shares available for grant resulting from the grant of restricted stock awards 1    
Conversion factor used to calculate the increase in the number of shares available for grant resulting from the forfeiture of restricted stock awards 1    
[1] Amounts include approximately 0.2 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in each of the years 2023, 2024 and 2025, respectively, and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.
[2] For purposes of determining the number of shares available for grant under the 2015 Plan against the maximum number of shares authorized, each restricted stock unit granted prior to April 27, 2023 reduces the number of shares available for grant by 1.5 shares and each restricted stock unit forfeited increases shares available for grant by 1.5 shares. Each restricted stock unit granted on or after April 27, 2023 reduces the number of shares available for grant by 1.0 share and each restricted stock unit forfeited increases shares available for grant by 1.0 share.
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Summary of Stock Option Activity Under Equity Incentive Plans (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of shares      
Outstanding as of beginning of period 90,000 124,732 432,443
Options exercised (1,100) (33,607) (307,711)
Options expired   (1,125)  
Outstanding as of end of period 88,900 90,000 124,732
Weighted-average exercise price      
Outstanding as of beginning of period $ 12.45 $ 11.6 $ 11.6
Options exercised 13.6 9.42 11.61
Options expired   8.76  
Outstanding and vested as of end of period $ 12.43 $ 12.45 $ 11.6
Weighted-average remaining contractual term (in years)      
Outstanding and vested as of end of period 2 years 6 months 10 days    
Aggregate intrinsic value      
Options exercised $ 86    
Outstanding and vested as of end of period $ 7,064    
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Weighted-average Assumptions for Employee Stock Purchase Plan (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Valuation assumptions      
Dividend yield 0.00% 0.00% 0.00%
Contingently issuable ESPP shares      
Valuation assumptions      
Expected stock price volatility rate, minimum 51.00% 47.00% 48.00%
Expected stock price volatility rate, maximum 65.00% 54.00% 53.00%
Risk free interest rate, minimum 3.80% 4.42% 5.14%
Risk free interest rate, maximum 4.22% 5.43% 5.51%
Expected term 6 months 6 months 6 months
Weighted-average fair value of purchase rights granted under the purchase plan $ 23.63 $ 14.96 $ 14.86
v3.25.4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Nonvested Equity Stock and Stock Units Activity (Details) - Nonvested equity stock and stock units - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Nonvested equity stock and stock units      
Nonvested as of beginning of period 3,150,161 3,430,192 4,718,060
Granted 1,269,985 1,312,367 1,268,973
Vested (1,296,894) (1,289,945) (1,797,002)
Forfeited (241,423) (302,453) (759,839)
Nonvested as of end of period 2,881,829 3,150,161 3,430,192
Weighted-average grant-date fair value      
Nonvested as of beginning of period $ 44.72 $ 32.9 $ 22.78
Granted 55.46 57.03 46.93
Vested 38.04 27.14 18.07
Forfeited 51.16 39.07 28.6
Nonvested as of end of period $ 51.91 $ 44.72 $ 32.9
v3.25.4
Stockholders' Equity - Additional Information (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 18, 2024
Mar. 01, 2024
Sep. 22, 2023
Aug. 11, 2023
Mar. 31, 2024
Sep. 30, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Sep. 30, 2024
Nov. 02, 2023
Oct. 29, 2020
Class of stock                        
Stock Repurchased and Retired During Period, Value             $ 7,114 $ 113,699 $ 100,526      
2020 Share repurchase program                        
Class of stock                        
Number of shares authorized to be repurchased under the plan                       20,000
Amount authorized to be repurchased                   $ 100,000 $ 50,000  
Amount authorized to be repurchased per quarter, maximum                   $ 50,000 $ 25,000  
Remaining number of shares authorized to be repurchased             5,500          
Stock Repurchased and Retired During Period, Shares               1,400        
Stock Repurchased and Retired During Period, Value             $ 7,100 $ 63,100        
Common stock                        
Class of stock                        
Stock Repurchased and Retired During Period, Shares             121 2,211 1,859      
Stock Repurchased and Retired During Period, Value               $ 2 $ 1      
Common stock | 2020 Share repurchase program                        
Class of stock                        
Stock Repurchased and Retired During Period, Shares             100          
Accumulated deficit                        
Class of stock                        
Stock Repurchased and Retired During Period, Value               $ 47,947 $ 94,742      
2023 Accelerated share repurchase program                        
Class of stock                        
Accelerated share repurchase program, upfront payment           $ 100,000            
Stock Repurchased and Retired During Period, Shares     200 1,600                
Stock Repurchased and Retired During Period, Value           80,000            
Remaining initial payment, unsettled forward contract indexed to Company's stock           $ 20,000            
2024 Accelerated share repurchase program                        
Class of stock                        
Accelerated share repurchase program, upfront payment         $ 50,000              
Stock Repurchased and Retired During Period, Shares 100 700                    
Stock Repurchased and Retired During Period, Value         40,000              
Remaining initial payment, unsettled forward contract indexed to Company's stock         $ 10,000              
v3.25.4
Benefit Plans - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Employee contribution limit per calendar year to 401(k) Plan (as a percentage of compensation) 60.00%    
Employer match of employee's gross pay (as a percentage of compensation) 50.00%    
Employer match of employee contributions of first 6% of eligible compensation (as a percentage) 6.00%    
Employer contribution $ 2.5 $ 2.1 $ 2.0
v3.25.4
Restructuring and Other Charges - Additional Information (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Jun. 30, 2023
Employee
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Restructuring costs and reserves        
Restructuring and other charges   $ 0 $ 0 $ 9,368
2023 Plan        
Restructuring costs and reserves        
Restructuring, number of positions eliminated | Employee 42      
Restructuring and other charges       $ 9,400
v3.25.4
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income before taxes      
Domestic $ 277,511 $ 190,382 $ 154,434
Foreign 4,445 9,661 32,726
Income before income taxes $ 281,956 $ 200,043 $ 187,160
v3.25.4
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Federal:      
Current $ (153) $ 2,760 $ 1,075
Deferred 30,407 (9,447) (126,734)
State:      
Current (154) 468 893
Deferred 217 1,245 (17,264)
Foreign:      
Current 22,218 26,869 (3,362)
Deferred (1,034) (1,673) (1,352)
Provision for income taxes $ 51,501 $ 20,222 $ (146,744)
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective income tax rate reconciliation      
Provision for income taxes at U.S. federal statutory rate 21.00% 21.00% 21.00%
Provision for income taxes at U.S. federal statutory rate, Amount $ 59,211    
Expense (benefit) at state statutory rate 0.10% 0.90% (8.70%)
State and local income tax expense, Amount $ 306    
Withholding tax   8.40% 3.90%
Foreign rate differential   (1.40%) (2.60%)
Research and development credit (2.30%) (1.90%) (2.90%)
Research and development credit, Amount $ (6,360)    
Executive compensation   4.00% 3.90%
Stock-based compensation (2.60%) (6.10%) (5.20%)
Stock-based compensation, Amount $ (7,424)    
Foreign tax credit (7.80%) (8.40%) (2.50%)
Foreign tax credit, Amount $ (21,974)    
Foreign-derived intangible income deduction (1.40%) (6.80%) (1.90%)
Foreign-derived intangible income deduction, Amount $ (3,980)    
Other 0.20%    
Other, Amount $ 590    
Acquisition   (0.10%) 1.60%
Section 162(m) limitation 2.50%    
Section 162(m) limitation, Amount $ 6,921    
Other 0.80%    
Other, Amount $ 2,164    
Valuation allowance 0.10% (0.00%) (85.30%)
Valuation allowance, Amount $ 344    
Changes in unrecognized tax benefits 0.10%    
Changes in unrecognized tax benefits, Amount $ 361    
Other adjustments (0.10%) 0.50% 0.30%
Other adjustments , Amount $ (328)    
Effective income tax rate reconciliation 18.30% 10.10% (78.40%)
Provision for income taxes $ 51,501 $ 20,222 $ (146,744)
Other Foreign Jurisdictions      
Effective income tax rate reconciliation      
Other foreign jurisdictions 0.90%    
Other foreign jurisdictions , Amount $ 2,379    
South Korea      
Effective income tax rate reconciliation      
Withholding tax 6.80%    
Withholding tax, Amount $ 19,245    
Other 0.00%    
Other, Amount $ 46    
v3.25.4
Income Taxes - Components of the Net Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Components of net deferred tax assets (liabilities)    
Lease liabilities $ 5,284 $ 6,384
Other timing differences, accruals and reserves 3,377 3,893
Deferred equity compensation 4,749 6,678
Net operating loss carryovers 12,003 12,003
Capitalized research 71,605 96,739
Tax credits 55,725 47,960
Total gross deferred tax assets 152,743 173,657
Lease right-of-use assets (3,560) (4,498)
Depreciation and amortization (16,570) (9,077)
Total gross deferred tax liabilities (20,130) (13,575)
Total net deferred tax assets 132,613 160,082
Valuation allowance (29,021) (26,790)
Net deferred tax assets $ 103,592 $ 133,292
v3.25.4
Income Taxes - Components of the Net Deferred Tax Assets (Liabilities) Reported (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Non-current deferred tax assets $ 105,542 $ 136,466
Non-current deferred tax liabilities (1,950) (3,174)
Net deferred tax assets $ 103,592 $ 133,292
v3.25.4
Income Taxes - Summary of Income Taxes Paid, Net of Refunds by Jurisdiction (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. federal $ 1,500    
U.S. state and local 67    
Foreign:      
Total income taxes paid 24,992 $ 27,132 $ 25,932
South Korea      
Foreign:      
Foreign 19,605    
Taiwan      
Foreign:      
Foreign 1,902    
Other      
Foreign:      
Foreign $ 1,918    
v3.25.4
Income Taxes - Summary of Valuation Allowance - (Details) - Tax Valuation Allowance - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Changes in valuation and qualifying accounts      
Balance as of beginning of period $ 26,790 $ 25,056 $ 201,883
Charged to operations 2,231 1,784 1,776
Charged to other account (0) (50) (717)
Valuation allowance release (0) (0) (177,886)
Balance as of end of period $ 29,021 $ 26,790 $ 25,056
v3.25.4
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of the beginning and ending amounts of unrecognized income tax benefits      
Balance as of beginning of period $ 203,794 $ 184,921 $ 164,531
Tax positions related to current year:      
Additions 16,178 19,844 19,403
Tax positions related to prior years:      
Additions 619 0 1,378
Reductions (112,589) (971) (391)
Balance as of end of period $ 108,002 $ 203,794 $ 184,921
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2025
Dec. 31, 2023
Dec. 31, 2025
Jun. 30, 2025
Dec. 31, 2024
Oct. 31, 2023
Dec. 31, 2022
Dec. 31, 2018
Income tax contingencies                
Valuation allowance, deferred tax asset, decrease   $ (177,900)            
Unrecognized tax benefits   $ 184,921 $ 108,002   $ 203,794   $ 164,531  
Long-term taxes receivable, excluding interest     3,282   109,947      
Long-term tax payable, excluding interest     1,393   109,383      
Undistributed foreign earnings     59,100          
Undistributed foreign earnings, estimated foreign withholding taxes     1,300          
Long-term deferred tax assets                
Income tax contingencies                
Unrecognized tax benefits     24,300   22,800      
Long-term income taxes payable                
Income tax contingencies                
Unrecognized tax benefits     1,000   106,200      
California Franchise Tax Board | State and local tax authority                
Income tax contingencies                
Operating loss carryforwards     171,900          
Tax credit carryforwards, alternative minimum tax credit     500          
National Tax Services | Foreign tax authority                
Income tax contingencies                
Long-term taxes receivable, excluding interest $ 0     $ 114,900 105,100 $ 82,700    
Reduction in income tax receivable 32,200              
Portion of unrecognized tax benefits, which if recognized, would be recorded as an income tax benefit       32,200        
Long-term tax payable, excluding interest     0 $ 114,900 105,100      
National Tax Services | Foreign tax authority | Tax year 2018                
Income tax contingencies                
Portion of unrecognized tax benefits, which if recognized, would be recorded as an income tax benefit               $ 74,800
National Tax Services | Foreign tax authority | Other assets                
Income tax contingencies                
Unrecognized tax benefits     82,700   $ 74,800      
National Tax Services | Foreign tax authority | Long-term income taxes payable                
Income tax contingencies                
Unrecognized tax benefits $ 82,700              
Research and development tax credit carryforward | California Franchise Tax Board | State and local tax authority                
Income tax contingencies                
Tax credit carryforwards     32,600          
Research and development tax credit carryforward | Federal                
Income tax contingencies                
Tax credit carryforwards     48,900          
Foreign tax credit                
Income tax contingencies                
Tax credit carryforwards     $ 1,300          
v3.25.4
Divestiture - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Divestiture        
Divestiture, gain (loss), net   $ 0 $ 0 $ (90,784)
Other asset impairment charges   $ 0 $ 1,071 10,045
Divestiture, not discontinued operations | PHY IP Group        
Divestiture        
Divestiture, consideration, initial selling price $ 110,000      
Divestiture, proceeds net 106,300      
Divestiture, purchase price adjustments $ 3,700      
Divestiture, gain (loss), net       (90,800)
Divestiture, transaction costs       $ 1,400