NETGEAR, INC., 10-Q filed on 10/31/2025
Quarterly Report
v3.25.3
Document And Entity Information - shares
 9 Months Ended
Sep. 28, 2025
Oct. 24, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 28, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q3  
Trading Symbol NTGR  
Entity Registrant Name NETGEAR, Inc.  
Entity Current Reporting Status Yes  
Entity Central Index Key 0001122904  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Smaller Reporting Company false  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Tax Identification Number 77-0419172  
Entity File Number 000-50350  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 3553 North First Street  
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 907-8000  
Security Exchange Name NASDAQ  
Title of 12(b) Security Common Stock, $0.001 par value  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding (In shares)   28,402,755
v3.25.3
Unaudited Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 203,480 $ 286,444
Short-term investments 122,903 122,246
Accounts receivable, net of allowance for doubtful accounts of $591 and $507 as of September 28, 2025 and December 31, 2024, respectively 159,880 156,210
Inventories 166,561 162,539
Prepaid expenses and other current assets 29,120 30,590
Total current assets 681,944 758,029
Property and equipment, net 23,137 11,288
Operating lease right-of-use assets 38,689 28,047
Intangible assets, net 4,078  
Goodwill 45,803 36,279
Other non-current assets 17,155 16,587
Total assets 810,806 850,230
Current liabilities:    
Accounts payable 58,204 58,481
Accrued employee compensation 27,543 23,290
Other accrued liabilities 124,630 148,078
Deferred revenue 27,938 30,261
Income taxes payable 843 9,973
Total current liabilities 239,158 270,083
Non-current income taxes payable 8,538 7,583
Non-current operating lease liabilities 42,986 19,796
Other non-current liabilities 13,276 11,702
Total liabilities 303,958 309,164
Commitments and contingencies (Note 9)
Stockholders’ equity:    
Common stock 28 29
Additional paid-in capital 1,027,809 997,912
Accumulated other comprehensive income 152 241
Accumulated deficit (521,141) (457,116)
Total stockholders’ equity 506,848 541,066
Total liabilities and stockholders’ equity $ 810,806 $ 850,230
v3.25.3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance for doubtful accounts of $591 and $507 as of September 28, 2025 and December 31, 2024, respectively $ 591 $ 507
v3.25.3
Unaudited Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Income Statement [Abstract]        
Net revenue [1] $ 184,561 $ 182,854 $ 517,153 $ 491,340
Cost of revenue 112,309 126,371 324,597 354,797
Gross profit 72,252 56,483 192,556 136,543
Operating expenses:        
Research and development 23,328 20,905 62,482 60,983
Sales and marketing 33,762 31,196 92,856 91,482
General and administrative 20,619 8,357 59,372 45,610
Litigation reserves, net 98 (100,855) 136 (92,625)
Restructuring and other charges 1,514 1,072 7,118 3,792
Total operating expenses 79,321 (39,325) 221,964 109,242
Income (loss) from operations (7,069) 95,808 (29,408) 27,301
Other income, net 3,028 [2] 3,485 15,175 [2] 9,048
Income (loss) before income taxes (4,041) 99,293 (14,233) 36,349
Provision for income taxes 736 14,219 3,006 15,100
Net income (loss) $ (4,777) $ 85,074 $ (17,239) $ 21,249
Net income (loss) per share        
Basic $ (0.17) $ 2.96 $ (0.6) $ 0.73
Diluted $ (0.17) $ 2.9 $ (0.6) $ 0.72
Weighted average shares used to compute net income (loss) per share:        
Basic 28,638 28,705 28,756 28,992
Diluted 28,638 29,364 28,756 29,389
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] Amounts included interest income of $2.7 million and $9.1 million for the three and nine months ended September 28, 2025, respectively, and $3.3 million and $8.3 million for the three and nine months ended September 29, 2024, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.7 million and $(2.4) million for the three and nine months ended September 28, 2025, respectively, and $(1.6) million
and $0.5 million for the three and nine months ended September 29, 2024, respectively. For the nine months ended September 28, 2025, the amount also included proceeds of $4.7 million from a sale of patents.
v3.25.3
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ (4,777) $ 85,074 $ (17,239) $ 21,249
Other comprehensive income (loss), before tax:        
Change in unrealized gains and losses on derivatives 109 (224) (56) (248)
Change in unrealized gains and losses on available-for-sale investments 94 452 (40) 233
Other comprehensive income (loss), before tax 203 228 (96) (15)
Tax benefit (provision) related to derivatives (17) 28 7 31
Other comprehensive income (loss), net of tax 186 256 (89) 16
Comprehensive income (loss) $ (4,591) $ 85,330 $ (17,328) $ 21,265
v3.25.3
Unaudited Condensed Consolidated Statements of Stockholder's Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance at Dec. 31, 2023 $ 535,495 $ 30 $ 967,651 $ 136 $ (432,322)
Beginning balance (in shares) at Dec. 31, 2023   29,616,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax (166)     (166)  
Change in unrealized gains and losses on derivatives, net of tax 51     51  
Net income (loss) (18,650)       (18,650)
Stock-based compensation 4,544   4,544    
Repurchase of common stock (11,444) $ (1)     (11,443)
Repurchase of common stock (in shares)   (783,000)      
Restricted stock unit withholdings (454)       (454)
Restricted stock unit withholdings (in shares)   (32,000)      
Issuance of common stock under stock-based compensation plans 1,986   1,986    
Issuance of common stock under stock-based compensation plans (in shares)   270,000      
Ending balance at Mar. 31, 2024 511,362 $ 29 974,181 21 (462,869)
Ending balance (in shares) at Mar. 31, 2024   29,071,000      
Beginning balance at Dec. 31, 2023 535,495 $ 30 967,651 136 (432,322)
Beginning balance (in shares) at Dec. 31, 2023   29,616,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 21,249        
Repurchase of common stock $ (22,900)        
Repurchase of common stock (in shares) (1,700,000)        
Restricted stock unit withholdings (in shares) (222,000)        
Ending balance at Sep. 29, 2024 $ 550,330 $ 29 987,576 152 (437,427)
Ending balance (in shares) at Sep. 29, 2024   28,768,000      
Beginning balance at Mar. 31, 2024 511,362 $ 29 974,181 21 (462,869)
Beginning balance (in shares) at Mar. 31, 2024   29,071,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax (53)     (53)  
Change in unrealized gains and losses on derivatives, net of tax (72)     (72)  
Net income (loss) (45,175)       (45,175)
Stock-based compensation 5,888   5,888    
Repurchase of common stock (10,121) $ (1)     (10,120)
Repurchase of common stock (in shares)   (800,000)      
Restricted stock unit withholdings (2,431)       (2,431)
Restricted stock unit withholdings (in shares)   (165,000)      
Issuance of common stock under stock-based compensation plans 1 $ 1      
Issuance of common stock under stock-based compensation plans (in shares)   573,000      
Ending balance at Jun. 30, 2024 459,399 $ 29 980,069 (104) (520,595)
Ending balance (in shares) at Jun. 30, 2024   28,679,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax 452     452  
Change in unrealized gains and losses on derivatives, net of tax (196)     (196)  
Net income (loss) 85,074       85,074
Stock-based compensation 5,620   5,620    
Repurchase of common stock (1,461)       (1,461)
Repurchase of common stock (in shares)   (99,000)      
Restricted stock unit withholdings (445)       (445)
Restricted stock unit withholdings (in shares)   (25,000)      
Issuance of common stock under stock-based compensation plans 1,887   1,887    
Issuance of common stock under stock-based compensation plans (in shares)   213,000      
Ending balance at Sep. 29, 2024 550,330 $ 29 987,576 152 (437,427)
Ending balance (in shares) at Sep. 29, 2024   28,768,000      
Beginning balance at Dec. 31, 2024 541,066 $ 29 997,912 241 (457,116)
Beginning balance (in shares) at Dec. 31, 2024   28,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax (78)     (78)  
Change in unrealized gains and losses on derivatives, net of tax (245)     (245)  
Net income (loss) (6,034)       (6,034)
Stock-based compensation 5,496   5,496    
Repurchase of common stock (7,500)       (7,500)
Repurchase of common stock (in shares)   (254,000)      
Restricted stock unit withholdings (5,141)       (5,141)
Restricted stock unit withholdings (in shares)   (186,000)      
Issuance of common stock under stock-based compensation plans 6,679   6,679    
Issuance of common stock under stock-based compensation plans (in shares)   722,000      
Ending balance at Mar. 30, 2025 534,243 $ 29 1,010,087 (82) (475,791)
Ending balance (in shares) at Mar. 30, 2025   28,782,000      
Beginning balance at Dec. 31, 2024 541,066 $ 29 997,912 241 (457,116)
Beginning balance (in shares) at Dec. 31, 2024   28,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) (17,239)        
Repurchase of common stock $ (35,000)        
Repurchase of common stock (in shares) (1,300,000)        
Restricted stock unit withholdings (in shares) (452,000)        
Ending balance at Sep. 28, 2025 $ 506,848 $ 28 1,027,809 152 (521,141)
Ending balance (in shares) at Sep. 28, 2025   28,385,000      
Beginning balance at Mar. 30, 2025 534,243 $ 29 1,010,087 (82) (475,791)
Beginning balance (in shares) at Mar. 30, 2025   28,782,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax (56)     (56)  
Change in unrealized gains and losses on derivatives, net of tax 104     104  
Net income (loss) (6,428)       (6,428)
Stock-based compensation 6,675   6,675    
Repurchase of common stock (7,500)       (7,500)
Repurchase of common stock (in shares)   (258,000)      
Restricted stock unit withholdings (4,556)       (4,556)
Restricted stock unit withholdings (in shares)   (184,000)      
Issuance of common stock under stock-based compensation plans 676   676    
Issuance of common stock under stock-based compensation plans (in shares)   653,000      
Ending balance at Jun. 29, 2025 523,158 $ 29 1,017,438 (34) (494,275)
Ending balance (in shares) at Jun. 29, 2025   28,993,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax 94     94  
Change in unrealized gains and losses on derivatives, net of tax 92     92  
Net income (loss) (4,777)       (4,777)
Stock-based compensation 8,808   8,808    
Repurchase of common stock (20,029) $ (1)     (20,028)
Repurchase of common stock (in shares)   (815,000)      
Restricted stock unit withholdings (2,061)       (2,061)
Restricted stock unit withholdings (in shares)   (82,000)      
Issuance of common stock under stock-based compensation plans 1,563   1,563    
Issuance of common stock under stock-based compensation plans (in shares)   289,000      
Ending balance at Sep. 28, 2025 $ 506,848 $ 28 $ 1,027,809 $ 152 $ (521,141)
Ending balance (in shares) at Sep. 28, 2025   28,385,000      
v3.25.3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Cash flows from operating activities:    
Net income (loss) $ (17,239) $ 21,249
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 5,109 4,761
Stock-based compensation 20,979 16,052
Gain on investments, net (1,141) (2,971)
Deferred income taxes (214) 254
Provision for excess and obsolete inventory 2,878 5,084
Changes in assets and liabilities:    
Accounts receivable, net (3,670) 7,733
Inventories (6,901) 81,790
Prepaid expenses and other assets 1,336 3,146
Accounts payable (936) 4,727
Accrued employee compensation 4,253 (1,322)
Other accrued liabilities (10,093) (9,608)
Deferred revenue (2,898) 3,073
Income taxes payable (9,365) 9,347
Net cash provided by (used in) operating activities (17,902) 143,315
Cash flows from investing activities:    
Purchases of short-term investments (89,579) (107,454)
Proceeds from maturities of short-term investments 90,000 90,290
Purchases of property and equipment (14,631) (6,502)
Purchases of long-term investments (165) (225)
Payments made in connection with business acquisitions, net of cash acquired (12,185)  
Net cash used in investing activities (26,560) (23,891)
Cash flows from financing activities:    
Repurchases of common stock (35,662) (22,917)
Restricted stock unit withholdings (11,758) (3,330)
Proceeds from exercise of stock options 5,266 308
Proceeds from issuance of common stock under employee stock purchase plan 3,652 3,565
Net cash used in financing activities (38,502) (22,374)
Net increase (decrease) in cash and cash equivalents (82,964) 97,050
Cash and cash equivalents, at beginning of period 286,444 176,717
Cash and cash equivalents, at end of period 203,480 273,767
Non-cash investing and financing activities:    
Unpaid property and equipment $ 3,283 $ 1,112
v3.25.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Jun. 29, 2025
Mar. 30, 2025
Sep. 29, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 28, 2025
Sep. 29, 2024
Pay vs Performance Disclosure                
Net Income (Loss) $ (4,777) $ (6,428) $ (6,034) $ 85,074 $ (45,175) $ (18,650) $ (17,239) $ 21,249
v3.25.3
Insider Trading Arrangements
 3 Months Ended
Sep. 28, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Insider Trading Arrangements

During the three months ended September 28, 2025, our Board of Directors and officers (as defined in Rule 16a-1(f)) under the Exchange Act adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company’s securities set forth in the table below.

 

 

 

 

Type of Trading Arrangement

 

 

 

Name and Title

Action

Adoption Date

Termination Date

Rule 10b5-1*

Non-Rule 10b5-1**

Total Shares of Common Stock to be Sold***

Total Shares of Common Stock to be Purchased

Expiration Date

Bryan Murray, Chief Financial Officer

Terminated

12/13/2024

7/31/2025

Yes

 

10.0% of net shares resulting from the vesting of 68,438 (gross) restricted stock and performance shares, 2,199 net shares from prior ESPP purchases, and net shares to be purchased in Feb 2025 under ESPP.

N/A

12/12/2025

Pramod Badjate, President and General Manager, Enterprise

Terminated

5/12/2025

8/4/2025

Yes

 

 Up to 20% of net shares resulting from the vesting of 82,502 (gross) restricted stock units.

N/A

4/30/2026

Pramod Badjate, President and General Manager, Enterprise

Adopted

8/20/2025

N/A

Yes

 

Up to 31,000 shares from 32,393 shares of our common stock from vested restricted stock units and net shares resulting from the vesting of 64,465 (gross) restricted stock units, 1,649 shares purchased through the ESPP, and additional shares to be acquired through future ESPP purchases.

N/A

8/31/2026

 

 

 

 

 

 

 

 

 

* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

** “Non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K under the Exchange Act.

*** Net shares issued with shares withheld to administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for the vesting of RSUs.
Pramod Badjate [Member]  
Trading Arrangements, by Individual  
Name Pramod Badjate
Title President and General Manager
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Adoption Date 8/20/2025
Non-Rule 10b5-1 Arrangement Terminated false
Expiration Date 8/31/2026
Arrangement Duration 377 days
Aggregate Available 31,000
Pramod Badjate One [Member]  
Trading Arrangements, by Individual  
Name Pramod Badjate
Title President and General Manager
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Adoption Date 5/12/2025
Rule 10b5-1 Arrangement Terminated true
Non-Rule 10b5-1 Arrangement Terminated false
Termination Date 8/4/2025
Expiration Date 4/30/2026
Arrangement Duration 226 days
Aggregate Available 20
Bryan Murray [Member]  
Trading Arrangements, by Individual  
Name Bryan Murray
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Adoption Date 12/13/2024
Rule 10b5-1 Arrangement Terminated true
Non-Rule 10b5-1 Arrangement Terminated false
Termination Date 7/31/2025
Expiration Date 12/12/2025
Arrangement Duration 365 days
Aggregate Available 10
Common Stock | Pramod Badjate [Member]  
Trading Arrangements, by Individual  
Aggregate Available 32,393
Restricted Stock Units (RSUs) | Pramod Badjate [Member]  
Trading Arrangements, by Individual  
Aggregate Available 64,465
Restricted Stock Units (RSUs) | Pramod Badjate One [Member]  
Trading Arrangements, by Individual  
Aggregate Available 82,502
Employee Stock Purchase Plan | Pramod Badjate [Member]  
Trading Arrangements, by Individual  
Aggregate Available 1,649
Employee Stock Purchase Plan | Bryan Murray [Member]  
Trading Arrangements, by Individual  
Aggregate Available 2,199
Restricted Stock and Performance Shares | Bryan Murray [Member]  
Trading Arrangements, by Individual  
Aggregate Available 68,438
v3.25.3
The Company and Basis of Presentation
 9 Months Ended
Sep. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Basis of Presentation

Note 1. The Company and Basis of Presentation

NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. The Company is a global leader in innovative and advanced networking technologies for businesses, homes, and service providers. The Company delivers a wide range of intelligent solutions designed to unleash the full potential of connectivity. Its highly differentiated connected solutions range from switching and wireless products to augment business networks and audio and video (“AV”) over Ethernet for Pro AV applications to the good, better, and best WiFi solutions, security and support services to protect and enhance business and home networks. Additionally, the Company continually invests in research and development to create new technologies and services and to capitalize on technological inflection points and trends, such as audio and video over Ethernet, multi-Gigabit internet service to homes, WiFi 7, eSIM and future technologies. Its product line helps to create and extend wired and wireless networks as well as devices that attach to the network, such as services that complement and enhance its product line offerings. These products are available in multiple configurations to address the changing needs of our customers in each geographic region.

The Company sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), value-added resellers (“VARs”), broadband service providers and its direct online store at www.netgear.com.

The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc. and its wholly owned subsidiaries. They have been prepared in accordance with established guidelines for interim financial reporting and the instructions of Form 10-Q and Article 10 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. The balance sheet dated December 31, 2024, has been derived from audited financial statements at such date. These unaudited condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary to fairly state the Company's financial position, results of operations, comprehensive income (loss), stockholder's equity and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Annual Report”).

The Company's fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of net revenue and expenses during the reported period. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances. As of the date of issuance of these condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ materially from those estimates and operating results for the three and nine months ended September 28, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any future period.

 

 

Segments

As previously announced, in the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments: Home Networking and Mobile. This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline. Effective January 1, 2025, the Company operates and reports in three segments: Enterprise (formerly known as NETGEAR for Business), Home Networking, and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. None of the changes impacted previously reported consolidated net revenue, income (loss) from operations, net income (loss) per share, total assets, or stockholders’ equity. In addition, as the goodwill balance was zero for the Connected Home segment before the segment realignment, no goodwill has been allocated to the Home Networking and Mobile segments, and the entire goodwill balance of $36.3 million prior to the segment realignment in the first quarter of 2025 remained in the Enterprise segment. An additional $9.5 million of goodwill was recorded in the Enterprise segment during the nine months ended September 28, 2025 in connection with the acquisition of Exium Inc. Refer to Note 4, Business Acquisition and Note 12, Segment Information for additional information.
v3.25.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 28, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

No material changes have been made to the Company’s significant accounting policies disclosed in Note 1, The Company and Summary of Significant Accounting Policies, in Part II, Item 8 “Financial Statements and Supplementary Data” in its Annual Report.

Recent Accounting Pronouncements

Accounting Pronouncements Recently Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for the Company for the year ended December 31, 2024 and early adoption is permitted. The Company adopted the new standard effective December 31, 2024 on a retrospective basis. The adoption did not have any impact on the Company’s financial position, results of operations or cash flows. Refer to Note 12, Segment Information, for details.

Accounting Pronouncements Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which enhances annual income tax disclosures. ASU 2023-09 requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 also requires the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 is effective for the Company for the annual reporting period of the year ending December 31, 2025 and early adoption is permitted. The guidance allows for adoption using either a prospective or retrospective transition method. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which expands the disclosure requirements for specific costs and expenses. ASU 2024-03 is effective for the Company for the year ending December 31, 2027 and early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect that the guidance will have material impacts on its financial position, results of operations or cash flows. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination. ASU2025-05 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2026 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which eliminates project stages and requires capitalizing costs when management has committed to funding the project and it is probable of completion. ASU2025-06 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.
v3.25.3
Revenue
 9 Months Ended
Sep. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

Note 3. Revenue

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 28, 2025:

 

(In thousands)

 

Less than 1 year

 

 

1 to 2 years

 

 

Beyond 2 years

 

 

Total

 

Performance obligations

 

$

70,280

 

 

$

2,538

 

 

$

2,050

 

 

$

74,868

 

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the contract balances:

 

(In thousands)

 

Balance Sheet Location

 

September 28, 2025

 

 

December 31, 2024

 

Accounts receivable, net

 

Accounts receivable, net

 

$

159,880

 

 

$

156,210

 

Contract liabilities – current

 

Deferred revenue

 

$

27,938

 

 

$

30,261

 

Contract liabilities – non-current

 

Other non-current liabilities

 

$

4,526

 

 

$

5,101

 

 

The difference in the balances of the Company’s contract assets and liabilities as of September 28, 2025 and December 31, 2024, primarily results from the timing difference between the Company's performance and the customer's payment. During the nine months ended September 28, 2025, $35.2 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $38.1 million of revenue was recognized for the satisfaction of performance obligations and $26.6 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. As disclosed above, effective January 1, 2025, the Company operates and reports in three segments: Enterprise, Home Networking and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. Sales and usage-based taxes are excluded from net revenue.

 

 

Three Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

Geographic regions (1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

47,596

 

 

$

64,835

 

 

$

15,654

 

 

$

128,085

 

 

$

42,035

 

 

$

65,906

 

 

$

19,811

 

 

$

127,752

 

EMEA

 

 

28,011

 

 

 

5,153

 

 

 

3,772

 

 

 

36,936

 

 

 

22,975

 

 

 

6,295

 

 

 

3,528

 

 

 

32,798

 

APAC

 

 

15,231

 

 

 

2,659

 

 

 

1,650

 

 

 

19,540

 

 

 

13,520

 

 

 

5,539

 

 

 

3,245

 

 

 

22,304

 

Total

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider

 

$

331

 

 

$

846

 

 

$

15,920

 

 

$

17,097

 

 

$

268

 

 

$

2,675

 

 

$

20,274

 

 

$

23,217

 

Non-service provider

 

 

90,507

 

 

 

71,801

 

 

 

5,156

 

 

 

167,464

 

 

 

78,262

 

 

 

75,065

 

 

 

6,310

 

 

 

159,637

 

Total

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

 

 

Nine Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

Geographic regions (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

129,767

 

 

$

179,111

 

 

$

43,247

 

 

$

352,125

 

 

$

103,189

 

 

$

172,155

 

 

$

57,839

 

 

$

333,183

 

EMEA

 

 

79,298

 

 

 

13,052

 

 

 

11,090

 

 

 

103,440

 

 

 

64,549

 

 

 

15,216

 

 

 

11,575

 

 

 

91,340

 

APAC

 

 

43,585

 

 

 

9,374

 

 

 

8,629

 

 

 

61,588

 

 

 

39,282

 

 

 

17,294

 

 

 

10,241

 

 

 

66,817

 

Total

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider

 

$

839

 

 

$

2,507

 

 

$

47,182

 

 

$

50,528

 

 

$

713

 

 

$

9,298

 

 

$

60,936

 

 

$

70,947

 

Non-service provider

 

 

251,811

 

 

 

199,030

 

 

 

15,784

 

 

 

466,625

 

 

 

206,307

 

 

 

195,367

 

 

 

18,719

 

 

 

420,393

 

Total

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

_____________________________

(1) No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.3
Business Acquisition
 9 Months Ended
Sep. 28, 2025
Business Combinations [Abstract]  
Business Acquisition

Note 4. Business Acquisition

On June 16, 2025, the Company acquired Exium Inc. (“Exium”), a cybersecurity company focused on developing and delivering Secure Access Service Edge (SASE) platforms, as part of its continued investment in cloud-based solutions for advanced business connectivity. The Company believes that Exium’s products and expertise will enhance its network offering by adding an integrated SASE platform tailored for small and medium enterprises, which strategically aligns with its existing products, teams, and target markets.

The preliminary total purchase consideration was $12.6 million, which consisted of $12.1 million in cash paid in the second quarter of 2025, and $0.5 million in acquisition holdback for potential purchase price adjustments and indemnification, if any. In addition, $2.4 million may be payable as retention compensation. The acquisition qualified as a business combination and was accounted for using the acquisition method. The results of Exium have been included in the unaudited condensed consolidated financial statements since the date of acquisition. Pro forma results of operations for the acquisition are not presented as the financial impact to the Company's consolidated results of operations is not material.

Of the total preliminary purchase consideration, $9.5 million was allocated to goodwill, $4.2 million to developed technology platform, and $1.1 million to deferred tax liability. All the other assets acquired and liabilities assumed were immaterial.

The goodwill recorded on the acquisition of Exium is not deductible for U.S. federal or U.S. state income tax purposes. The goodwill recognized was allocated to the Company's Enterprise segment, and it is primarily attributable to expected synergies, and future growth opportunities associated with Exium’s cybersecurity platform.

Developed technology platform of $4.2 million was valued using the multi-period excess earnings method under the income approach, which discounted the asset's projected future cash flows at 28.0%. The provisional amortization period is seven years.

In connection with the acquisition, the Company recorded net deferred tax liabilities of $1.1 million, resulting from the recognition of $4.3 million in gross temporary differences related to the book basis of the intangible assets for which the Company has no tax basis.
v3.25.3
Balance Sheet Components
 9 Months Ended
Sep. 28, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components

Note 5. Balance Sheet Components

Available-for-sale investments

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of September 28, 2025 and December 31, 2024, were as follows:

 

 

September 28, 2025

 

(In thousands)

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

U.S. treasury securities

 

$

119,748

 

 

$

131

 

 

$

—

 

 

$

119,879

 

Total

 

$

119,748

 

 

$

131

 

 

$

—

 

 

$

119,879

 

 

 

 

December 31, 2024

 

(In thousands)

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

U.S. treasury securities

 

$

119,199

 

 

$

171

 

 

$

—

 

 

$

119,370

 

Total

 

$

119,199

 

 

$

171

 

 

$

—

 

 

$

119,370

 

 

The contractual maturities on the U.S. treasury securities as of September 28, 2025 are all due within one year. Accrued interest receivable as of September 28, 2025 was $1.4 million and was recorded within Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet.

There were no investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of September 28, 2025 and December 31, 2024.

In the three and nine months ended September 28, 2025 and September 29, 2024, no unrealized losses on available-for-sale securities were recognized in income. The Company does not intend to sell, and it is unlikely that it will be required to sell the investments in an unrealized loss position prior to their anticipated recovery. There were no other-than-temporary impairments for these securities during the three and nine months ended September 28, 2025 and September 29, 2024. Refer to Note 13, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

Inventories

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Raw materials

 

$

10,710

 

 

$

13,439

 

Finished goods

 

 

155,851

 

 

 

149,100

 

Total

 

$

166,561

 

 

$

162,539

 

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $0.7 million and $2.9 million for the three and nine months ended September 28, 2025, respectively, and $2.1 million and $5.1 million for the three and nine months ended September 29, 2024, respectively. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is a risk that additional charges may be necessary if current forecasts are greater than actual demand.

 

Property and equipment, net

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Machinery and equipment

 

$

53,904

 

 

$

54,355

 

Furniture and fixtures

 

 

2,960

 

 

 

4,185

 

Leasehold improvements

 

 

18,715

 

 

 

15,843

 

Software

 

 

22,379

 

 

 

24,610

 

Computer equipment

 

 

5,060

 

 

 

5,384

 

Total property and equipment, gross

 

 

103,018

 

 

 

104,377

 

Accumulated depreciation

 

$

(79,881

)

 

$

(93,089

)

Total

 

$

23,137

 

 

$

11,288

 

 

Other non-current assets

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Non-current deferred income taxes

 

$

2,553

 

 

$

2,332

 

Long-term investments

 

 

8,718

 

 

 

8,381

 

Restricted cash

 

 

2,100

 

 

 

2,107

 

Other

 

 

3,784

 

 

 

3,767

 

Total

 

$

17,155

 

 

$

16,587

 

 

Long-term equity investments

The Company’s long-term investments are primarily comprised of equity investments without readily determinable fair values and investments in limited partnership funds. The carrying value of the equity investments without readily determinable fair values was $6.1 million as of September 28, 2025 and September 29, 2024, respectively. For such equity investments without readily determinable fair value still held at September 28, 2025, there were no cumulative downward adjustments for price changes or impairment, and the cumulative upward adjustments for price changes was $0.3 million. Investments in limited partnership funds amounted to $2.7 million as of September 28, 2025, $2.4 million as of September 29, 2024, and $2.3 million as of December 31, 2024 and December 31, 2023, respectively.

Other accrued liabilities

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Current operating lease liabilities

 

$

3,589

 

 

$

10,837

 

Sales and marketing

 

 

53,482

 

 

 

59,129

 

Warranty obligations

 

 

5,758

 

 

 

5,192

 

Sales returns(1)

 

 

24,067

 

 

 

31,711

 

Freight and duty

 

 

4,909

 

 

 

4,979

 

Other

 

 

32,825

 

 

 

36,230

 

Total

 

$

124,630

 

 

$

148,078

 

 

(1)
Inventory expected to be received from future sales returns amounted to $11.1 million and $15.1 million as of September 28, 2025 and December 31, 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $8.3 million and $9.0 million as of September 28, 2025 and December 31, 2024, respectively.
v3.25.3
Derivative Financial Instruments
 9 Months Ended
Sep. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 6. Derivative Financial Instruments

The Company’s subsidiaries have material future cash flows related to revenue and expenses denominated in currencies other than the U.S. dollar, the Company’s functional currency worldwide. The Company executes currency forward contracts that typically mature in less than six months to mitigate its currency risk, in currencies including Australian dollars, British pounds, euros, Canadian dollars, and Japanese yen. The Company does not enter into derivatives transactions for trading or speculative purposes. The Company’s foreign currency forward contracts do not contain any credit-risk-related contingent features. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any individual counterparty.

The Company typically executes ten cash flow hedges per quarter with maturities under six months and with an average USD notional amount of approximately $4.7 million that are designated as cash flow hedges.

The Company enters into non-designated hedges that are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. The Company adjusts its non-designated hedges monthly and typically executes about eleven non-designated forwards per quarter with maturities less than three months and an average USD notional amount of approximately $3.0 million.

Fair Value of Derivative Instruments

The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded were summarized as follows:

 

 

 

Balance Sheet

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

(In thousands)

 

Location

 

September 28,
2025

 

 

December 31,
2024

 

 

Location

 

September 28,
2025

 

 

December 31,
2024

 

Derivatives not designated as hedging instruments

 

Prepaid expenses and other current assets

 

$

142

 

 

$

979

 

 

Other accrued liabilities

 

$

62

 

 

$

254

 

Derivatives designated as hedging instruments

 

Prepaid expenses and other current assets

 

 

19

 

 

 

74

 

 

Other accrued liabilities

 

 

4

 

 

 

19

 

Total

 

 

 

$

161

 

 

$

1,053

 

 

 

 

$

66

 

 

$

273

 

 

Refer to Note 13, Fair Value Measurements for detailed disclosures regarding fair value measurements. Refer to Note 10, Stockholders’ Equity, for details on the accumulated other comprehensive income (loss) activity related to derivatives and refer to Note 12, Segment Information, for details on gain/(loss), net pertaining to derivatives not designated as hedging instruments that were recognized in Other income (expenses), net.

v3.25.3
Net Income (Loss) Per Share
 9 Months Ended
Sep. 28, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

Note 7. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of Restricted Stock Units (“RSUs”) and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the “ESPP”), which are reflected in diluted net income (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive.

Net income (loss) per share consisted of the following:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands, except per share data)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(4,777

)

 

$

85,074

 

 

$

(17,239

)

 

$

21,249

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares – basic

 

 

28,638

 

 

 

28,705

 

 

 

28,756

 

 

 

28,992

 

Potentially dilutive common share equivalent

 

 

—

 

 

 

659

 

 

 

—

 

 

 

397

 

Weighted average common shares – dilutive

 

 

28,638

 

 

 

29,364

 

 

 

28,756

 

 

 

29,389

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.17

)

 

$

2.96

 

 

$

(0.60

)

 

$

0.73

 

Diluted net income (loss) per share

 

$

(0.17

)

 

$

2.90

 

 

$

(0.60

)

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive employee stock-based awards, excluded

 

 

875

 

 

 

1,332

 

 

 

373

 

 

 

1,053

 
v3.25.3
Income Taxes
 9 Months Ended
Sep. 28, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

The income tax provision for the three and nine months ended September 28, 2025 was $0.7 million, or an effective tax rate of (18.2)%, and $3.0 million, or an effective tax rate of (21.1)%, respectively. The income tax provision for the three and nine months ended September 29, 2024 was $14.2 million, or an effective tax rate of 14.3%, and $15.1 million, or an effective tax rate of 41.5%, respectively. Due to the Company’s full valuation allowance for U.S. federal and state tax purposes, the changes in taxes for the three and nine months ended September 28, 2025, compared to the prior year periods, were primarily a result of the Company reporting $99.3 million and $36.3 million of pretax book income for the three and nine months ended September 29, 2024, respectively, and the current income tax implications of this income with no deferred tax benefit in the 2024 year as compared to the Company reporting $4.0 million and $14.2 million of pretax book loss for the three and nine months ended September 28, 2025 and the current income tax implications in the 2025 year with no deferred tax benefit.

The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions.

The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions

may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $1.4 million excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. The Company is currently under examination in various U.S. and foreign jurisdictions.

The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company must then assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. As of the period ended October 1, 2023, the Company determined that recovery of its U.S. federal and state deferred tax assets was no longer more likely than not and established a full valuation allowance on those net assets, based on evaluation of all available evidence, including actual and anticipated business results. Accordingly, the balance sheet net deferred tax assets from the U.S. federal and state jurisdictions reported in “Other Non-current Assets” were reduced after the effect of establishing the valuation allowance.

The Company evaluated the current results as of the period ended September 28, 2025, coupled with the expectations for the remainder of the year, and determined that it continues to not be more likely than not that the deferred tax assets would be realized, and accordingly, has recorded no benefit for the forecasted tax loss for the three months ended September 28, 2025.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025 and the Company continues to evaluate the impact on its financial position. The OBBBA is not currently expected to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.
v3.25.3
Commitments and Contingencies
 9 Months Ended
Sep. 28, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

Purchase Obligations

The Company has entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. As of September 28, 2025, the Company had approximately $60.5 million, as compared to $57.4 million as of December 31, 2024, in short-term non-cancelable purchase commitments with suppliers or where the suppliers had procured unique materials and components upon receipts of the Company’s purchase orders. Due to an elongation of the time from order placement to production that occurred several years ago, the Company issued purchase orders to supply chain partners beyond contractual termination periods. As of September 28, 2025, $171.3 million of purchase orders beyond contractual termination periods remained outstanding. Consequently, the Company may incur expenses for materials and components, such as chipsets purchased by the supplier to fulfill the purchase order if the purchase order is cancelled. Expenses incurred in respect of cancelled purchase orders have historically not been significant relative to the original order value. For those orders not governed by master purchase agreements, the commitments are governed by the commercial terms on the Company’s purchase orders subject to acknowledgment from its suppliers. The Company establishes a loss liability for all products it does not expect to sell or orders it anticipates canceling for which it has committed purchases from suppliers. Such loss liability is included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. Losses incurred in relation to purchase commitments, including unique materials and components, amounted to less than $0.1 million and $0.4 million for the three and nine months ended September 28, 2025, respectively, and a gain of $1.2 million and a loss of $5.0 million for the three and nine months ended September 29, 2024, respectively.

Non-Trade Commitments

As of September 28, 2025, the Company had non-cancellable purchase commitments of $9.4 million pertaining to non-trade activities.

Warranty Obligations

Changes in the Company’s warranty obligations, which is included in Other accrued liabilities on the unaudited condensed consolidated balance sheets, were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Balance as of beginning of the period

 

$

5,565

 

 

$

4,771

 

 

$

5,192

 

 

$

5,738

 

Provision for warranty liability made

 

 

1,414

 

 

 

1,060

 

 

 

4,090

 

 

 

2,468

 

Settlements made

 

 

(1,221

)

 

 

(1,046

)

 

 

(3,524

)

 

 

(3,421

)

Balance as of the end of the period

 

$

5,758

 

 

$

4,785

 

 

$

5,758

 

 

$

4,785

 

Leases

During the third fiscal quarter of 2025, the lease commencement date for the new headquarters office lease, which was executed in 2024, occurred. While the contractual commencement date under the lease agreement differs from the accounting commencement date, the lease has a remaining non-cancelable term of 11 years and is now recognized on the unaudited consolidated balance sheets. Short-term and long-term undiscounted non-cancelable lease payments associated with this lease totaled approximately $3.1 million and $39.8 million, respectively, as of September 28, 2025. This lease replaced the Company's previous headquarters lease, which expired in September 2025, around the time of its relocation to the new facility.

Litigation and Other Legal Matters

From time to time, the Company is involved in disputes, litigation, and other legal actions. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company’s business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses.

The Company does not believe that it will incur a material loss for any of its pending litigation matters at this time, and consequently has not established any material loss provisions.
v3.25.3
Stockholders' Equity
 9 Months Ended
Sep. 28, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 10. Stockholders’ Equity

Stock Repurchases

From time to time, the Company’s Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company’s common stock. During the nine months ended September 28, 2025 and September 29, 2024, the Company repurchased, retired and reported, based on trade date, approximately 1.3 million and 1.7

million shares of common stock, at a cost of approximately $35.0 million and $22.9 million, respectively. As of September 28, 2025, approximately 2.0 million shares remained authorized for repurchase under the repurchase program.

The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

 

Restricted Stock Unit Withholdings

The Company withholds shares of its common stock to facilitate the administrative process of withholding and remitting personal income and payroll taxes for individuals receiving RSUs. The Company withheld and reported, based on trade date, approximately 452,000 shares and 222,000 shares of common stock, at a cost of approximately $11.8 million and $3.3 million, during the nine months ended September 28, 2025 and September 29, 2024, respectively.

Accumulated Other Comprehensive Income (Loss)

The following tables set forth the changes in accumulated other comprehensive income (loss) (“AOCI”) by component:

 

(In thousands)

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax benefit (provision)

 

 

Total

 

Balance as of December 31, 2024

 

$

169

 

 

$

79

 

 

$

(7

)

 

$

241

 

Other comprehensive income (loss) before reclassifications

 

 

(40

)

 

 

(951

)

 

 

195

 

 

 

(796

)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

 

(895

)

 

 

188

 

 

 

(707

)

Net current period other comprehensive income (loss)

 

 

(40

)

 

 

(56

)

 

 

7

 

 

 

(89

)

Balance as of September 28, 2025

 

$

129

 

 

$

23

 

 

$

—

 

 

$

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax
benefit (provision)

 

 

Total

 

Balance as of December 31, 2023

 

$

126

 

 

$

7

 

 

$

3

 

 

$

136

 

Other comprehensive income (loss) before reclassifications

 

 

233

 

 

 

(821

)

 

 

151

 

 

 

(437

)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

 

(573

)

 

 

120

 

 

 

(453

)

Net current period other comprehensive income (loss)

 

 

233

 

 

 

(248

)

 

 

31

 

 

 

16

 

Balance as of September 29, 2024

 

$

359

 

 

$

(241

)

 

$

34

 

 

$

152

 

 

The following table provides details about significant amounts reclassified out of each component of AOCI:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Amount Reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on cash flow hedge:

 

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

 

 

 

Affected line item in the statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

(64

)

 

$

(461

)

 

$

(1,128

)

 

$

(670

)

Cost of revenue

 

 

(1

)

 

 

—

 

 

 

2

 

 

 

—

 

Research and development

 

 

(4

)

 

 

8

 

 

 

48

 

 

 

6

 

Sales and marketing

 

 

(3

)

 

 

18

 

 

 

147

 

 

 

60

 

General and administrative

 

 

(3

)

 

 

24

 

 

 

36

 

 

 

31

 

Total before tax

 

 

(75

)

 

 

(411

)

 

 

(895

)

 

 

(573

)

Tax impact

 

 

16

 

 

 

86

 

 

 

188

 

 

 

120

 

Total, net of tax

 

$

(59

)

 

$

(325

)

 

$

(707

)

 

$

(453

)
v3.25.3
Employee Benefit Plans
 9 Months Ended
Sep. 28, 2025
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Employee Benefit Plans

Note 11. Employee Benefit Plans

2025 Equity Incentive Plan

In April 2025, the Company's Board of Directors adopted the 2025 Equity Incentive Plan (the "2025 Plan") which was approved by the Company's stockholders at the 2025 Annual Meeting of Stockholders on May 29, 2025. The 2025 Plan provides for the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to eligible directors, employees and consultants of the Company. The maximum aggregate number of shares that may be issued under the 2025 Plan is 750,000 shares, plus (i) any shares that were available for grant under the 2016 Plan as of immediately prior to the date the 2025 Plan becomes effective, plus (ii) any shares granted under the 2016 Plan that expire, are forfeited to or repurchased by the Company. As of September 28, 2025, approximately 2.3 million shares were reserved and available for future grants under the 2025 Plan.

Time-based RSUs granted generally vest over three years with the first tranche at the end of twelve months from the vest start date and the remaining vesting quarterly over the remaining two years. RSUs do not have an expiration date. Performance-based RSUs granted generally vest at the end of a three-year period if performance conditions are met.

Any shares that are tendered by a participant or retained by the Company as full or partial payment for the purchase of an award or to satisfy tax withholding obligations in connection with an award granted under the 2025 Plan, or under the 2016 Plan after the 2025 Plan became effective, shall again be made available for issuance under the 2025 Plan.

2016 Equity Incentive Plan

The Company granted options, time-based RSUs and performance-based RSUs under the 2016 Incentive Plan (the “2016 Plan”), under which awards were granted to employees. Vesting periods under this plan were generally four years for options, three years for performance-based RSUs, and three or four years for time-based RSUs. As disclosed above, in May 2025, the Company adopted the 2025 Plan, which superseded the 2016 Plan with respect to new equity award grants. No additional awards will be granted under the 2016 Plan following the effective date of the 2025 Plan. However, (i) any shares that remained available for grant under the 2016 Plan immediately prior to the 2025 Plan’s effective date and (ii) any shares subject to awards granted under the 2016 Plan that are subsequently forfeited, expire, or are repurchased by the Company, will become available for issuance under the 2025 Plan. All outstanding awards previously granted under the 2016 Plan remain outstanding and continue to be governed by the applicable terms and conditions of that plan. Any shares that are tendered by a participant of the 2016 Plan or retained by the Company as full or partial payment to the Company for the purchase of an award or to satisfy tax withholding obligations in connection with an award shall no longer again be made available for issuance under the 2016 Plan.

2024 Inducement Plan

In February 2024, the Company’s Board of Directors approved 2024 Inducement Equity Incentive Plan (the “2024 Inducement Plan”), under which options, restricted stock awards, RSUs, stock appreciation rights, performance units, performance shares, and other stock or cash awards can be granted to personnel for positions of substantial responsibility. In May 2025, the Company’s Board of Directors approved an amendment to the 2024 Inducement Plan which increased the number of shares of the Company’s common stock that may be issued under the 2024 Inducement Plan by an additional 600,000 shares. As of September 28, 2025, approximately 0.3 million shares were reserved for future grants under the 2024 Inducement Plan.

Employee Stock Purchase Plan

The Company sponsors an Employee Stock Purchase Plan (the “ESPP”). The terms of the plan include a look-back feature that enables employees to purchase stock semi-annually at a price equal to 85% of the lesser of the fair market value at the beginning of the offering period or the purchase date. The duration of each offering period is generally six months. In May 2025, the stockholders of the Company approved an amendment to the 2003 Employee Stock Purchase Plan to increase the number of shares of common stock authorized for sale under the ESPP by 1.5 million shares. As of September 28, 2025, approximately 1.7 million shares were available for issuance under the ESPP.

Option Activity

Stock option activity was as follows:

 

(In thousands, except per share amounts)

 

Number of
Shares

 

 

Weighted Average Exercise Price Per Share

 

Outstanding as of December 31, 2024

 

 

475

 

 

$

32.60

 

Exercised

 

 

(198

)

 

$

26.56

 

Expired

 

 

(170

)

 

$

38.97

 

Outstanding as of September 28, 2025

 

 

107

 

 

$

33.73

 

Time-Based RSU Activity

Time-based RSU activity was as follows:

 

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

 

Outstanding as of December 31, 2024

 

 

2,550

 

 

$

17.64

 

Granted

 

 

1,032

 

 

$

27.79

 

Vested

 

 

(979

)

 

$

18.48

 

Cancelled

 

 

(183

)

 

$

18.31

 

Outstanding as of September 28, 2025

 

 

2,420

 

 

$

21.58

 

Performance-Based RSU Activity

Since 2020, the Company’s executives have been granted performance-based restricted stock units (“PSUs”) under the 2016 Plan with vesting occurring at the end of a three-year period, contingent upon the achievement of specified performance conditions. In February 2024, the Company granted PSUs under the 2024 Inducement Plan to its newly-hired Chief Executive Officer with 1/3 of the target PSUs being allocated to each tranche and vesting occurring at the end of each anniversary of the vesting commencement date over a three-year period. In addition, in 2024 and 2025, the Company granted PSUs under the 2016 Plan, 2024 Inducement Plan and 2025 Plan to its newly-hired employees or executives with vesting generally occurring at the end of a three-year period if performance conditions are met. The number of PSUs earned and eligible to vest are determined based on achievement of the pre-determined performance or market conditions and the recipients’ continued service with the Company. The number of PSUs to vest could range from 0% to up to 200% of the target shares granted. For PSUs with a performance condition, at the end of each reporting period, the Company evaluates the probability of achieving the performance conditions and records the related stock-based compensation expense based on performance to date over the

service period. The stock-based compensation expense relating to PSUs with a market condition is recognized ratably from the service inception date to the vesting date for each tranche.

PSU activity was as follows:

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

 

Outstanding as of December 31, 2024

 

 

655

 

 

$

20.93

 

Granted

 

 

423

 

 

$

44.37

 

Vested

 

 

(249

)

 

$

20.85

 

Cancelled

 

 

(34

)

 

$

22.13

 

Outstanding as of September 28, 2025

 

 

795

 

 

$

33.38

 

Valuation and Expense Information

The following table sets forth the stock-based compensation expense resulting from stock options, RSUs (time-based and performance-based) and the ESPP included in the Company’s unaudited condensed consolidated statements of operations:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Cost of revenue

 

$

562

 

 

$

444

 

 

$

1,440

 

 

$

1,222

 

Research and development

 

 

1,483

 

 

 

868

 

 

 

3,075

 

 

 

2,410

 

Sales and marketing

 

 

2,450

 

 

 

1,520

 

 

 

5,579

 

 

 

3,992

 

General and administrative

 

 

4,313

 

 

 

2,788

 

 

 

10,885

 

 

 

8,428

 

Total

 

$

8,808

 

 

$

5,620

 

 

$

20,979

 

 

$

16,052

 

As of September 28, 2025, $64.6 million of unrecognized compensation cost related to unvested RSUs (time-based and performance-based) expected to be recognized over a weighted-average period of 2.0 years.
v3.25.3
Segment Information
 9 Months Ended
Sep. 28, 2025
Segment Reporting [Abstract]  
Segment Information

Note 12. Segment Information

Operating segments are components of an enterprise about which separate financial information is available and is evaluated quarterly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its CEO as the CODM. As previously announced, in the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments: Home Networking and Mobile. This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline. The leadership team of each segment focuses on serving the unique needs of their customers through product and service development from both a product marketing and engineering standpoint, while also managing the sales and marketing functions that support their businesses. Effective January 1, 2025, the Company operates and reports in three segments: Enterprise, Home Networking and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation.

•
Enterprise: Focuses on businesses and provides solutions for business networking, wireless local area network (“LAN”), audio and video over Ethernet for Pro AV applications, security and remote management providing enterprise-class functionality at an affordable price;
•
Home Networking: Focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as WiFi 6, WiFi 6E and WiFi 7 multi-band mesh systems, routers, and subscription services that provide consumers a range of value-added services focused on performance, security, privacy, and premium support;
•
Mobile: Focuses on both consumers and businesses and provides high-performance Mobile (4G/5G) products, including WiFi 7, WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to meet the growing demand for on-the-go, high-speed and reliable internet connectivity with advanced security features.

The results of the reportable segments are derived directly from the Company’s management reporting system. The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income (loss). Segment contribution income (loss) includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs. Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing and general and administrative expenses, amortization of intangible assets, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, and other income (expenses), net.

Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands, except percentage data)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking (2)

 

 

Mobile (2)

 

 

Total

 

Net revenue

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

Cost of revenue

 

 

44,486

 

 

 

52,543

 

 

 

14,538

 

 

 

111,567

 

 

 

43,436

 

 

 

60,770

 

 

 

21,721

 

 

 

125,927

 

Gross profit

 

 

46,352

 

 

 

20,104

 

 

 

6,538

 

 

 

72,994

 

 

 

35,094

 

 

 

16,970

 

 

 

4,863

 

 

 

56,927

 

Gross margin

 

 

51.0

%

 

 

27.7

%

 

 

31.0

%

 

 

39.6

%

 

 

44.7

%

 

 

21.8

%

 

 

18.3

%

 

 

31.1

%

Operating expenses

 

 

23,737

 

 

 

18,551

 

 

 

6,239

 

 

 

48,527

 

 

 

18,961

 

 

 

20,662

 

 

 

5,951

 

 

 

45,574

 

Contribution income (loss)

 

 

22,615

 

 

 

1,553

 

 

 

299

 

 

 

24,467

 

 

 

16,133

 

 

 

(3,692

)

 

 

(1,088

)

 

 

11,353

 

Contribution margin

 

 

24.9

%

 

 

2.1

 %

 

 

1.4

 %

 

 

13.3

%

 

 

20.5

%

 

 

(4.7

)%

 

 

(4.1

)%

 

 

6.2

 %

Corporate and unallocated costs

 

 

 

 

 

 

 

 

 

 

 

(20,650

)

 

 

 

 

 

 

 

 

 

 

 

(9,708

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

(8,808

)

 

 

 

 

 

 

 

 

 

 

 

(5,620

)

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

(286

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

 

 

 

(1,514

)

 

 

 

 

 

 

 

 

 

 

 

(1,072

)

Litigation reserves, net

 

 

 

 

 

 

 

 

 

 

 

(98

)

 

 

 

 

 

 

 

 

 

 

 

100,855

 

Other income, net (1)

 

 

 

 

 

 

 

 

 

 

 

3,028

 

 

 

 

 

 

 

 

 

 

 

 

3,485

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(4,041

)

 

 

 

 

 

 

 

 

 

 

$

99,293

 

 

 

 

Nine Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands, except percentage data)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking (2)

 

 

Mobile (2)

 

 

Total

 

Net revenue

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

Cost of revenue

 

 

131,052

 

 

 

146,709

 

 

 

45,216

 

 

 

322,977

 

 

 

123,045

 

 

 

165,956

 

 

 

64,574

 

 

 

353,575

 

Gross profit

 

 

121,598

 

 

 

54,828

 

 

 

17,750

 

 

 

194,176

 

 

 

83,975

 

 

 

38,709

 

 

 

15,081

 

 

 

137,765

 

Gross margin

 

 

48.1

%

 

 

27.2

%

 

 

28.2

%

 

 

37.5

%

 

 

40.6

%

 

 

18.9

%

 

 

18.9

%

 

 

28.0

%

Operating expenses

 

 

65,386

 

 

 

51,843

 

 

 

17,061

 

 

 

134,290

 

 

 

55,877

 

 

 

60,187

 

 

 

18,317

 

 

 

134,381

 

Contribution income (loss)

 

 

56,212

 

 

 

2,985

 

 

 

689

 

 

 

59,886

 

 

 

28,098

 

 

 

(21,478

)

 

 

(3,236

)

 

 

3,384

 

Contribution margin

 

 

22.2

%

 

 

1.5

 %

 

 

1.1

 %

 

 

11.6

%

 

 

13.6

%

 

 

(10.5

)%

 

 

(4.1

)%

 

 

0.7

 %

Corporate and unallocated costs

 

 

 

 

 

 

 

 

 

 

 

(59,890

)

 

 

 

 

 

 

 

 

 

 

 

(48,864

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

(20,979

)

 

 

 

 

 

 

 

 

 

 

 

(16,052

)

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

(991

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

 

 

 

(7,118

)

 

 

 

 

 

 

 

 

 

 

 

(3,792

)

Litigation reserves, net

 

 

 

 

 

 

 

 

 

 

 

(136

)

 

 

 

 

 

 

 

 

 

 

 

92,625

 

Other income, net (1)

 

 

 

 

 

 

 

 

 

 

 

15,175

 

 

 

 

 

 

 

 

 

 

 

 

9,048

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(14,233

)

 

 

 

 

 

 

 

 

 

 

$

36,349

 

 

(1)
Amounts included interest income of $2.7 million and $9.1 million for the three and nine months ended September 28, 2025, respectively, and $3.3 million and $8.3 million for the three and nine months ended September 29, 2024, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.7 million and $(2.4) million for the three and nine months ended September 28, 2025, respectively, and $(1.6) million
and $0.5 million for the three and nine months ended September 29, 2024, respectively. For the nine months ended September 28, 2025, the amount also included proceeds of $4.7 million from a sale of patents.
(2)
Financial information for the Home Networking and Mobile segment in the prior year periods were recast to conform to the current reportable segment structure.

The CODM does not evaluate operating segments using discrete asset information.

Operations by Geographic Region

For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer.

The following table shows net revenue by geography:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

United States (U.S.)

 

$

124,330

 

 

$

124,305

 

 

$

341,131

 

 

$

324,388

 

Americas (excluding U.S.)

 

 

3,755

 

 

 

3,447

 

 

 

10,994

 

 

 

8,795

 

EMEA (1)

 

 

36,936

 

 

 

32,798

 

 

 

103,440

 

 

 

91,340

 

APAC (1)

 

 

19,540

 

 

 

22,304

 

 

 

61,588

 

 

 

66,817

 

Total net revenue

 

$

184,561

 

 

$

182,854

 

 

$

517,153

 

 

$

491,340

 

 

(1)
No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.

Long-lived assets by Geographic Region

The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

United States (U.S.)

 

$

42,125

 

 

$

19,057

 

Canada

 

 

4,588

 

 

 

5,573

 

Americas (excluding U.S. and Canada)

 

 

14

 

 

 

39

 

EMEA

 

 

2,770

 

 

 

3,127

 

Singapore

 

 

3,794

 

 

 

4,841

 

APAC (excluding Singapore) (1)

 

 

8,535

 

 

 

6,698

 

Total

 

$

61,826

 

 

$

39,335

 

 

(1)
No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.
v3.25.3
Fair Value Measurements
 9 Months Ended
Sep. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 13. Fair Value Measurements

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

 

 

September 28, 2025

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

92,182

 

 

$

92,182

 

 

$

—

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,879

 

 

 

—

 

 

 

119,879

 

Trading securities: mutual funds(1)

 

 

3,024

 

 

 

3,024

 

 

 

—

 

Foreign currency forward contracts(2)

 

 

161

 

 

—

 

 

 

161

 

Total assets measured at fair value

 

$

215,246

 

 

$

95,206

 

 

$

120,040

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

66

 

 

$

—

 

 

$

66

 

Total liabilities measured at fair value

 

$

66

 

 

$

—

 

 

$

66

 

 

 

 

 

December 31, 2024

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

111,043

 

 

$

111,043

 

 

$

—

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,370

 

 

 

—

 

 

 

119,370

 

Trading securities: mutual funds(1)

 

 

2,876

 

 

 

2,876

 

 

 

—

 

Foreign currency forward contracts(2)

 

 

1,053

 

 

—

 

 

 

1,053

 

Total assets measured at fair value

 

$

234,342

 

 

$

113,919

 

 

$

120,423

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

273

 

 

$

—

 

 

$

273

 

Total liabilities measured at fair value

 

$

273

 

 

$

—

 

 

$

273

 

 

(1)
Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets.
(2)
Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets.
(3)
Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets.

The Company’s investments in money-market funds and mutual funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company’s investments in U.S. treasury securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets. The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that consider the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities.
v3.25.3
Restructuring and Other Charges
 9 Months Ended
Sep. 28, 2025
Restructuring Charges [Abstract]  
Restructuring and Other Charges

Note 14. Restructuring and Other Charges

The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. Accrued restructuring and other charges are classified within Accrued employee compensation and Other accrued liabilities on the condensed consolidated balance sheets.

Restructuring and other charges recognized in the three and nine months ended September 28, 2025 and September 29, 2024, respectively, were primarily for severance, and other costs in relation to the reorganization of the business. These initiatives were undertaken to reduce costs, and reinvest into the business to capitalize on the Company's highest priority opportunities to drive revenue growth and improve profitability. The vast majority of the liabilities as of September 28, 2025 are expected to be settled in 2025.

 

The following table provides a summary of the activity related to accrued restructuring and other charges:

 

(In thousands)

 

Accrued Restructuring and Other Charges at December 31, 2024

 

 

Additions

 

 

Cash Payments

 

 

Adjustments

 

 

Accrued Restructuring and Other Charges at September 28, 2025

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination charges

 

$

664

 

 

$

6,997

 

 

$

(5,587

)

 

$

20

 

 

$

2,094

 

Lease contract termination and other charges

 

 

—

 

 

 

121

 

 

 

(10

)

 

 

(36

)

 

 

75

 

Total Restructuring and other charges

 

$

664

 

 

$

7,118

 

 

$

(5,597

)

 

$

(16

)

 

$

2,169

 

 

 

(In thousands)

 

Accrued Restructuring and Other Charges at December 31, 2023

 

 

Additions

 

 

Cash Payments

 

 

Adjustments

 

 

Accrued Restructuring and Other Charges at September 29, 2024

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination charges

 

$

257

 

 

$

3,493

 

 

$

(3,061

)

 

$

(19

)

 

$

670

 

Lease contract termination and other charges

 

 

30

 

 

 

299

 

 

 

(86

)

 

 

(243

)

 

 

—

 

Total Restructuring and other charges

 

$

287

 

 

$

3,792

 

 

$

(3,147

)

 

$

(262

)

 

$

670

 
v3.25.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 28, 2025
Accounting Policies [Abstract]  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Pronouncements Recently Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for the Company for the year ended December 31, 2024 and early adoption is permitted. The Company adopted the new standard effective December 31, 2024 on a retrospective basis. The adoption did not have any impact on the Company’s financial position, results of operations or cash flows. Refer to Note 12, Segment Information, for details.

Accounting Pronouncements Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which enhances annual income tax disclosures. ASU 2023-09 requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 also requires the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 is effective for the Company for the annual reporting period of the year ending December 31, 2025 and early adoption is permitted. The guidance allows for adoption using either a prospective or retrospective transition method. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which expands the disclosure requirements for specific costs and expenses. ASU 2024-03 is effective for the Company for the year ending December 31, 2027 and early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect that the guidance will have material impacts on its financial position, results of operations or cash flows. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination. ASU2025-05 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2026 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which eliminates project stages and requires capitalizing costs when management has committed to funding the project and it is probable of completion. ASU2025-06 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.
Revenue Recognition

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.
Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of Restricted Stock Units (“RSUs”) and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the “ESPP”), which are reflected in diluted net income (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive.
Income taxes

The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company must then assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. As of the period ended October 1, 2023, the Company determined that recovery of its U.S. federal and state deferred tax assets was no longer more likely than not and established a full valuation allowance on those net assets, based on evaluation of all available evidence, including actual and anticipated business results. Accordingly, the balance sheet net deferred tax assets from the U.S. federal and state jurisdictions reported in “Other Non-current Assets” were reduced after the effect of establishing the valuation allowance.

The Company evaluated the current results as of the period ended September 28, 2025, coupled with the expectations for the remainder of the year, and determined that it continues to not be more likely than not that the deferred tax assets would be realized, and accordingly, has recorded no benefit for the forecasted tax loss for the three months ended September 28, 2025.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025 and the Company continues to evaluate the impact on its financial position. The OBBBA is not currently expected to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.
Segments

Segments

As previously announced, in the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments: Home Networking and Mobile. This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline. Effective January 1, 2025, the Company operates and reports in three segments: Enterprise (formerly known as NETGEAR for Business), Home Networking, and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. None of the changes impacted previously reported consolidated net revenue, income (loss) from operations, net income (loss) per share, total assets, or stockholders’ equity. In addition, as the goodwill balance was zero for the Connected Home segment before the segment realignment, no goodwill has been allocated to the Home Networking and Mobile segments, and the entire goodwill balance of $36.3 million prior to the segment realignment in the first quarter of 2025 remained in the Enterprise segment. An additional $9.5 million of goodwill was recorded in the Enterprise segment during the nine months ended September 28, 2025 in connection with the acquisition of Exium Inc. Refer to Note 4, Business Acquisition and Note 12, Segment Information for additional information.
v3.25.3
Revenue (Tables)
 9 Months Ended
Sep. 28, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Remaining Performance Obligations

 

(In thousands)

 

Less than 1 year

 

 

1 to 2 years

 

 

Beyond 2 years

 

 

Total

 

Performance obligations

 

$

70,280

 

 

$

2,538

 

 

$

2,050

 

 

$

74,868

 
Schedule of Contract Balances

The following table reflects the contract balances:

 

(In thousands)

 

Balance Sheet Location

 

September 28, 2025

 

 

December 31, 2024

 

Accounts receivable, net

 

Accounts receivable, net

 

$

159,880

 

 

$

156,210

 

Contract liabilities – current

 

Deferred revenue

 

$

27,938

 

 

$

30,261

 

Contract liabilities – non-current

 

Other non-current liabilities

 

$

4,526

 

 

$

5,101

 

 
Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. As disclosed above, effective January 1, 2025, the Company operates and reports in three segments: Enterprise, Home Networking and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. Sales and usage-based taxes are excluded from net revenue.

 

 

Three Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

Geographic regions (1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

47,596

 

 

$

64,835

 

 

$

15,654

 

 

$

128,085

 

 

$

42,035

 

 

$

65,906

 

 

$

19,811

 

 

$

127,752

 

EMEA

 

 

28,011

 

 

 

5,153

 

 

 

3,772

 

 

 

36,936

 

 

 

22,975

 

 

 

6,295

 

 

 

3,528

 

 

 

32,798

 

APAC

 

 

15,231

 

 

 

2,659

 

 

 

1,650

 

 

 

19,540

 

 

 

13,520

 

 

 

5,539

 

 

 

3,245

 

 

 

22,304

 

Total

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider

 

$

331

 

 

$

846

 

 

$

15,920

 

 

$

17,097

 

 

$

268

 

 

$

2,675

 

 

$

20,274

 

 

$

23,217

 

Non-service provider

 

 

90,507

 

 

 

71,801

 

 

 

5,156

 

 

 

167,464

 

 

 

78,262

 

 

 

75,065

 

 

 

6,310

 

 

 

159,637

 

Total

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

 

 

Nine Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

Geographic regions (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

129,767

 

 

$

179,111

 

 

$

43,247

 

 

$

352,125

 

 

$

103,189

 

 

$

172,155

 

 

$

57,839

 

 

$

333,183

 

EMEA

 

 

79,298

 

 

 

13,052

 

 

 

11,090

 

 

 

103,440

 

 

 

64,549

 

 

 

15,216

 

 

 

11,575

 

 

 

91,340

 

APAC

 

 

43,585

 

 

 

9,374

 

 

 

8,629

 

 

 

61,588

 

 

 

39,282

 

 

 

17,294

 

 

 

10,241

 

 

 

66,817

 

Total

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider

 

$

839

 

 

$

2,507

 

 

$

47,182

 

 

$

50,528

 

 

$

713

 

 

$

9,298

 

 

$

60,936

 

 

$

70,947

 

Non-service provider

 

 

251,811

 

 

 

199,030

 

 

 

15,784

 

 

 

466,625

 

 

 

206,307

 

 

 

195,367

 

 

 

18,719

 

 

 

420,393

 

Total

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

_____________________________

(1) No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.3
Balance Sheet Components (Tables)
 9 Months Ended
Sep. 28, 2025
Balance Sheet Related Disclosures [Abstract]  
Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of September 28, 2025 and December 31, 2024, were as follows:

 

 

September 28, 2025

 

(In thousands)

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

U.S. treasury securities

 

$

119,748

 

 

$

131

 

 

$

—

 

 

$

119,879

 

Total

 

$

119,748

 

 

$

131

 

 

$

—

 

 

$

119,879

 

 

 

 

December 31, 2024

 

(In thousands)

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

U.S. treasury securities

 

$

119,199

 

 

$

171

 

 

$

—

 

 

$

119,370

 

Total

 

$

119,199

 

 

$

171

 

 

$

—

 

 

$

119,370

 

 
Schedule of Inventories

Inventories

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Raw materials

 

$

10,710

 

 

$

13,439

 

Finished goods

 

 

155,851

 

 

 

149,100

 

Total

 

$

166,561

 

 

$

162,539

 
Schedule of Property and Equipment, Net

Property and equipment, net

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Machinery and equipment

 

$

53,904

 

 

$

54,355

 

Furniture and fixtures

 

 

2,960

 

 

 

4,185

 

Leasehold improvements

 

 

18,715

 

 

 

15,843

 

Software

 

 

22,379

 

 

 

24,610

 

Computer equipment

 

 

5,060

 

 

 

5,384

 

Total property and equipment, gross

 

 

103,018

 

 

 

104,377

 

Accumulated depreciation

 

$

(79,881

)

 

$

(93,089

)

Total

 

$

23,137

 

 

$

11,288

 
Schedule of Other Non-Current Assets

Other non-current assets

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Non-current deferred income taxes

 

$

2,553

 

 

$

2,332

 

Long-term investments

 

 

8,718

 

 

 

8,381

 

Restricted cash

 

 

2,100

 

 

 

2,107

 

Other

 

 

3,784

 

 

 

3,767

 

Total

 

$

17,155

 

 

$

16,587

 
Schedule of Other Accrued Liabilities

Other accrued liabilities

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

Current operating lease liabilities

 

$

3,589

 

 

$

10,837

 

Sales and marketing

 

 

53,482

 

 

 

59,129

 

Warranty obligations

 

 

5,758

 

 

 

5,192

 

Sales returns(1)

 

 

24,067

 

 

 

31,711

 

Freight and duty

 

 

4,909

 

 

 

4,979

 

Other

 

 

32,825

 

 

 

36,230

 

Total

 

$

124,630

 

 

$

148,078

 

 

(1)
Inventory expected to be received from future sales returns amounted to $11.1 million and $15.1 million as of September 28, 2025 and December 31, 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $8.3 million and $9.0 million as of September 28, 2025 and December 31, 2024, respectively.
v3.25.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Unaudited Condensed Consolidated Balance Sheets

The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded were summarized as follows:

 

 

 

Balance Sheet

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

(In thousands)

 

Location

 

September 28,
2025

 

 

December 31,
2024

 

 

Location

 

September 28,
2025

 

 

December 31,
2024

 

Derivatives not designated as hedging instruments

 

Prepaid expenses and other current assets

 

$

142

 

 

$

979

 

 

Other accrued liabilities

 

$

62

 

 

$

254

 

Derivatives designated as hedging instruments

 

Prepaid expenses and other current assets

 

 

19

 

 

 

74

 

 

Other accrued liabilities

 

 

4

 

 

 

19

 

Total

 

 

 

$

161

 

 

$

1,053

 

 

 

 

$

66

 

 

$

273

 

 
v3.25.3
Net Income (Loss) Per Share (Tables)
 9 Months Ended
Sep. 28, 2025
Earnings Per Share [Abstract]  
Schedule of Net Income (Loss) Per Share

Net income (loss) per share consisted of the following:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands, except per share data)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(4,777

)

 

$

85,074

 

 

$

(17,239

)

 

$

21,249

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares – basic

 

 

28,638

 

 

 

28,705

 

 

 

28,756

 

 

 

28,992

 

Potentially dilutive common share equivalent

 

 

—

 

 

 

659

 

 

 

—

 

 

 

397

 

Weighted average common shares – dilutive

 

 

28,638

 

 

 

29,364

 

 

 

28,756

 

 

 

29,389

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.17

)

 

$

2.96

 

 

$

(0.60

)

 

$

0.73

 

Diluted net income (loss) per share

 

$

(0.17

)

 

$

2.90

 

 

$

(0.60

)

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive employee stock-based awards, excluded

 

 

875

 

 

 

1,332

 

 

 

373

 

 

 

1,053

 
v3.25.3
Commitments and Contingencies (Tables)
 9 Months Ended
Sep. 28, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Changes in Warranty Obligations

Changes in the Company’s warranty obligations, which is included in Other accrued liabilities on the unaudited condensed consolidated balance sheets, were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Balance as of beginning of the period

 

$

5,565

 

 

$

4,771

 

 

$

5,192

 

 

$

5,738

 

Provision for warranty liability made

 

 

1,414

 

 

 

1,060

 

 

 

4,090

 

 

 

2,468

 

Settlements made

 

 

(1,221

)

 

 

(1,046

)

 

 

(3,524

)

 

 

(3,421

)

Balance as of the end of the period

 

$

5,758

 

 

$

4,785

 

 

$

5,758

 

 

$

4,785

 

Leases

During the third fiscal quarter of 2025, the lease commencement date for the new headquarters office lease, which was executed in 2024, occurred. While the contractual commencement date under the lease agreement differs from the accounting commencement date, the lease has a remaining non-cancelable term of 11 years and is now recognized on the unaudited consolidated balance sheets. Short-term and long-term undiscounted non-cancelable lease payments associated with this lease totaled approximately $3.1 million and $39.8 million, respectively, as of September 28, 2025. This lease replaced the Company's previous headquarters lease, which expired in September 2025, around the time of its relocation to the new facility.
v3.25.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 28, 2025
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (loss)

The following tables set forth the changes in accumulated other comprehensive income (loss) (“AOCI”) by component:

 

(In thousands)

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax benefit (provision)

 

 

Total

 

Balance as of December 31, 2024

 

$

169

 

 

$

79

 

 

$

(7

)

 

$

241

 

Other comprehensive income (loss) before reclassifications

 

 

(40

)

 

 

(951

)

 

 

195

 

 

 

(796

)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

 

(895

)

 

 

188

 

 

 

(707

)

Net current period other comprehensive income (loss)

 

 

(40

)

 

 

(56

)

 

 

7

 

 

 

(89

)

Balance as of September 28, 2025

 

$

129

 

 

$

23

 

 

$

—

 

 

$

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax
benefit (provision)

 

 

Total

 

Balance as of December 31, 2023

 

$

126

 

 

$

7

 

 

$

3

 

 

$

136

 

Other comprehensive income (loss) before reclassifications

 

 

233

 

 

 

(821

)

 

 

151

 

 

 

(437

)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

 

(573

)

 

 

120

 

 

 

(453

)

Net current period other comprehensive income (loss)

 

 

233

 

 

 

(248

)

 

 

31

 

 

 

16

 

Balance as of September 29, 2024

 

$

359

 

 

$

(241

)

 

$

34

 

 

$

152

 
Schedule of Reclassification out of AOCI

The following table provides details about significant amounts reclassified out of each component of AOCI:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Amount Reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on cash flow hedge:

 

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

 

 

 

Affected line item in the statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

(64

)

 

$

(461

)

 

$

(1,128

)

 

$

(670

)

Cost of revenue

 

 

(1

)

 

 

—

 

 

 

2

 

 

 

—

 

Research and development

 

 

(4

)

 

 

8

 

 

 

48

 

 

 

6

 

Sales and marketing

 

 

(3

)

 

 

18

 

 

 

147

 

 

 

60

 

General and administrative

 

 

(3

)

 

 

24

 

 

 

36

 

 

 

31

 

Total before tax

 

 

(75

)

 

 

(411

)

 

 

(895

)

 

 

(573

)

Tax impact

 

 

16

 

 

 

86

 

 

 

188

 

 

 

120

 

Total, net of tax

 

$

(59

)

 

$

(325

)

 

$

(707

)

 

$

(453

)
v3.25.3
Employee Benefit Plans (Tables)
 9 Months Ended
Sep. 28, 2025
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of Stock Option Activity

Stock option activity was as follows:

 

(In thousands, except per share amounts)

 

Number of
Shares

 

 

Weighted Average Exercise Price Per Share

 

Outstanding as of December 31, 2024

 

 

475

 

 

$

32.60

 

Exercised

 

 

(198

)

 

$

26.56

 

Expired

 

 

(170

)

 

$

38.97

 

Outstanding as of September 28, 2025

 

 

107

 

 

$

33.73

 
Schedule of Time-Based RSU Activity

Time-based RSU activity was as follows:

 

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

 

Outstanding as of December 31, 2024

 

 

2,550

 

 

$

17.64

 

Granted

 

 

1,032

 

 

$

27.79

 

Vested

 

 

(979

)

 

$

18.48

 

Cancelled

 

 

(183

)

 

$

18.31

 

Outstanding as of September 28, 2025

 

 

2,420

 

 

$

21.58

 
Schedule of PSU Activity

PSU activity was as follows:

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

 

Outstanding as of December 31, 2024

 

 

655

 

 

$

20.93

 

Granted

 

 

423

 

 

$

44.37

 

Vested

 

 

(249

)

 

$

20.85

 

Cancelled

 

 

(34

)

 

$

22.13

 

Outstanding as of September 28, 2025

 

 

795

 

 

$

33.38

 
Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Time-Based and Performance-Based and the ESPP

Valuation and Expense Information

The following table sets forth the stock-based compensation expense resulting from stock options, RSUs (time-based and performance-based) and the ESPP included in the Company’s unaudited condensed consolidated statements of operations:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

Cost of revenue

 

$

562

 

 

$

444

 

 

$

1,440

 

 

$

1,222

 

Research and development

 

 

1,483

 

 

 

868

 

 

 

3,075

 

 

 

2,410

 

Sales and marketing

 

 

2,450

 

 

 

1,520

 

 

 

5,579

 

 

 

3,992

 

General and administrative

 

 

4,313

 

 

 

2,788

 

 

 

10,885

 

 

 

8,428

 

Total

 

$

8,808

 

 

$

5,620

 

 

$

20,979

 

 

$

16,052

 
v3.25.3
Segment Information (Tables)
 9 Months Ended
Sep. 28, 2025
Segment Reporting [Abstract]  
Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income (Loss) Before Income Taxes

Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands, except percentage data)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking (2)

 

 

Mobile (2)

 

 

Total

 

Net revenue

 

$

90,838

 

 

$

72,647

 

 

$

21,076

 

 

$

184,561

 

 

$

78,530

 

 

$

77,740

 

 

$

26,584

 

 

$

182,854

 

Cost of revenue

 

 

44,486

 

 

 

52,543

 

 

 

14,538

 

 

 

111,567

 

 

 

43,436

 

 

 

60,770

 

 

 

21,721

 

 

 

125,927

 

Gross profit

 

 

46,352

 

 

 

20,104

 

 

 

6,538

 

 

 

72,994

 

 

 

35,094

 

 

 

16,970

 

 

 

4,863

 

 

 

56,927

 

Gross margin

 

 

51.0

%

 

 

27.7

%

 

 

31.0

%

 

 

39.6

%

 

 

44.7

%

 

 

21.8

%

 

 

18.3

%

 

 

31.1

%

Operating expenses

 

 

23,737

 

 

 

18,551

 

 

 

6,239

 

 

 

48,527

 

 

 

18,961

 

 

 

20,662

 

 

 

5,951

 

 

 

45,574

 

Contribution income (loss)

 

 

22,615

 

 

 

1,553

 

 

 

299

 

 

 

24,467

 

 

 

16,133

 

 

 

(3,692

)

 

 

(1,088

)

 

 

11,353

 

Contribution margin

 

 

24.9

%

 

 

2.1

 %

 

 

1.4

 %

 

 

13.3

%

 

 

20.5

%

 

 

(4.7

)%

 

 

(4.1

)%

 

 

6.2

 %

Corporate and unallocated costs

 

 

 

 

 

 

 

 

 

 

 

(20,650

)

 

 

 

 

 

 

 

 

 

 

 

(9,708

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

(8,808

)

 

 

 

 

 

 

 

 

 

 

 

(5,620

)

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

(286

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

 

 

 

(1,514

)

 

 

 

 

 

 

 

 

 

 

 

(1,072

)

Litigation reserves, net

 

 

 

 

 

 

 

 

 

 

 

(98

)

 

 

 

 

 

 

 

 

 

 

 

100,855

 

Other income, net (1)

 

 

 

 

 

 

 

 

 

 

 

3,028

 

 

 

 

 

 

 

 

 

 

 

 

3,485

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(4,041

)

 

 

 

 

 

 

 

 

 

 

$

99,293

 

 

 

 

Nine Months Ended

 

 

 

September 28, 2025

 

 

September 29, 2024

 

(In thousands, except percentage data)

 

Enterprise

 

 

Home Networking

 

 

Mobile

 

 

Total

 

 

Enterprise

 

 

Home Networking (2)

 

 

Mobile (2)

 

 

Total

 

Net revenue

 

$

252,650

 

 

$

201,537

 

 

$

62,966

 

 

$

517,153

 

 

$

207,020

 

 

$

204,665

 

 

$

79,655

 

 

$

491,340

 

Cost of revenue

 

 

131,052

 

 

 

146,709

 

 

 

45,216

 

 

 

322,977

 

 

 

123,045

 

 

 

165,956

 

 

 

64,574

 

 

 

353,575

 

Gross profit

 

 

121,598

 

 

 

54,828

 

 

 

17,750

 

 

 

194,176

 

 

 

83,975

 

 

 

38,709

 

 

 

15,081

 

 

 

137,765

 

Gross margin

 

 

48.1

%

 

 

27.2

%

 

 

28.2

%

 

 

37.5

%

 

 

40.6

%

 

 

18.9

%

 

 

18.9

%

 

 

28.0

%

Operating expenses

 

 

65,386

 

 

 

51,843

 

 

 

17,061

 

 

 

134,290

 

 

 

55,877

 

 

 

60,187

 

 

 

18,317

 

 

 

134,381

 

Contribution income (loss)

 

 

56,212

 

 

 

2,985

 

 

 

689

 

 

 

59,886

 

 

 

28,098

 

 

 

(21,478

)

 

 

(3,236

)

 

 

3,384

 

Contribution margin

 

 

22.2

%

 

 

1.5

 %

 

 

1.1

 %

 

 

11.6

%

 

 

13.6

%

 

 

(10.5

)%

 

 

(4.1

)%

 

 

0.7

 %

Corporate and unallocated costs

 

 

 

 

 

 

 

 

 

 

 

(59,890

)

 

 

 

 

 

 

 

 

 

 

 

(48,864

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

(20,979

)

 

 

 

 

 

 

 

 

 

 

 

(16,052

)

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

(991

)

 

 

 

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

 

 

 

(7,118

)

 

 

 

 

 

 

 

 

 

 

 

(3,792

)

Litigation reserves, net

 

 

 

 

 

 

 

 

 

 

 

(136

)

 

 

 

 

 

 

 

 

 

 

 

92,625

 

Other income, net (1)

 

 

 

 

 

 

 

 

 

 

 

15,175

 

 

 

 

 

 

 

 

 

 

 

 

9,048

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(14,233

)

 

 

 

 

 

 

 

 

 

 

$

36,349

 

 

(1)
Amounts included interest income of $2.7 million and $9.1 million for the three and nine months ended September 28, 2025, respectively, and $3.3 million and $8.3 million for the three and nine months ended September 29, 2024, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.7 million and $(2.4) million for the three and nine months ended September 28, 2025, respectively, and $(1.6) million
and $0.5 million for the three and nine months ended September 29, 2024, respectively. For the nine months ended September 28, 2025, the amount also included proceeds of $4.7 million from a sale of patents.
(2)
Financial information for the Home Networking and Mobile segment in the prior year periods were recast to conform to the current reportable segment structure.
Schedule of Net Revenue by Geography

The following table shows net revenue by geography:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 28, 2025

 

 

September 29, 2024

 

 

September 28, 2025

 

 

September 29, 2024

 

United States (U.S.)

 

$

124,330

 

 

$

124,305

 

 

$

341,131

 

 

$

324,388

 

Americas (excluding U.S.)

 

 

3,755

 

 

 

3,447

 

 

 

10,994

 

 

 

8,795

 

EMEA (1)

 

 

36,936

 

 

 

32,798

 

 

 

103,440

 

 

 

91,340

 

APAC (1)

 

 

19,540

 

 

 

22,304

 

 

 

61,588

 

 

 

66,817

 

Total net revenue

 

$

184,561

 

 

$

182,854

 

 

$

517,153

 

 

$

491,340

 

 

(1)
No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
Schedule of Long-Lived Asset By Geographic Region

The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:

 

(In thousands)

 

September 28, 2025

 

 

December 31, 2024

 

United States (U.S.)

 

$

42,125

 

 

$

19,057

 

Canada

 

 

4,588

 

 

 

5,573

 

Americas (excluding U.S. and Canada)

 

 

14

 

 

 

39

 

EMEA

 

 

2,770

 

 

 

3,127

 

Singapore

 

 

3,794

 

 

 

4,841

 

APAC (excluding Singapore) (1)

 

 

8,535

 

 

 

6,698

 

Total

 

$

61,826

 

 

$

39,335

 

 

(1)
No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.
v3.25.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

 

 

September 28, 2025

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

92,182

 

 

$

92,182

 

 

$

—

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,879

 

 

 

—

 

 

 

119,879

 

Trading securities: mutual funds(1)

 

 

3,024

 

 

 

3,024

 

 

 

—

 

Foreign currency forward contracts(2)

 

 

161

 

 

—

 

 

 

161

 

Total assets measured at fair value

 

$

215,246

 

 

$

95,206

 

 

$

120,040

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

66

 

 

$

—

 

 

$

66

 

Total liabilities measured at fair value

 

$

66

 

 

$

—

 

 

$

66

 

 

 

 

 

December 31, 2024

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

111,043

 

 

$

111,043

 

 

$

—

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,370

 

 

 

—

 

 

 

119,370

 

Trading securities: mutual funds(1)

 

 

2,876

 

 

 

2,876

 

 

 

—

 

Foreign currency forward contracts(2)

 

 

1,053

 

 

—

 

 

 

1,053

 

Total assets measured at fair value

 

$

234,342

 

 

$

113,919

 

 

$

120,423

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

273

 

 

$

—

 

 

$

273

 

Total liabilities measured at fair value

 

$

273

 

 

$

—

 

 

$

273

 

 

(1)
Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets.
(2)
Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets.
(3)
Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets.
v3.25.3
Restructuring and Other Charges (Tables)
 9 Months Ended
Sep. 28, 2025
Restructuring Charges [Abstract]  
Summary of Activity Related to Accrued Restructuring and Other Charges

The following table provides a summary of the activity related to accrued restructuring and other charges:

 

(In thousands)

 

Accrued Restructuring and Other Charges at December 31, 2024

 

 

Additions

 

 

Cash Payments

 

 

Adjustments

 

 

Accrued Restructuring and Other Charges at September 28, 2025

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination charges

 

$

664

 

 

$

6,997

 

 

$

(5,587

)

 

$

20

 

 

$

2,094

 

Lease contract termination and other charges

 

 

—

 

 

 

121

 

 

 

(10

)

 

 

(36

)

 

 

75

 

Total Restructuring and other charges

 

$

664

 

 

$

7,118

 

 

$

(5,597

)

 

$

(16

)

 

$

2,169

 

 

 

(In thousands)

 

Accrued Restructuring and Other Charges at December 31, 2023

 

 

Additions

 

 

Cash Payments

 

 

Adjustments

 

 

Accrued Restructuring and Other Charges at September 29, 2024

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee termination charges

 

$

257

 

 

$

3,493

 

 

$

(3,061

)

 

$

(19

)

 

$

670

 

Lease contract termination and other charges

 

 

30

 

 

 

299

 

 

 

(86

)

 

 

(243

)

 

 

—

 

Total Restructuring and other charges

 

$

287

 

 

$

3,792

 

 

$

(3,147

)

 

$

(262

)

 

$

670

 
v3.25.3
The Company and Basis of Presentation (Narrative) (Details) - USD ($)
Sep. 28, 2025
Dec. 31, 2024
Segment Reporting Information [Line Items]    
Goodwill $ 45,803,000 $ 36,279,000
Connected Home    
Segment Reporting Information [Line Items]    
Goodwill   0
Home Networking    
Segment Reporting Information [Line Items]    
Goodwill   0
Mobile    
Segment Reporting Information [Line Items]    
Goodwill   0
Enterprise    
Segment Reporting Information [Line Items]    
Goodwill   $ 36,300,000
Enterprise | Exium Inc.    
Segment Reporting Information [Line Items]    
Goodwill $ 9,500,000  
v3.25.3
Revenue (Schedule of Remaining Performance Obligations) (Details)
$ in Thousands
Sep. 28, 2025
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 74,868
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-09-29  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 70,280
Performance obligations, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-09-29  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 2,538
Performance obligations, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-09-29  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 2,050
Performance obligations, period
v3.25.3
Revenue (Schedule of Remaining Performance Obligations) (Details 1)
$ in Thousands
Sep. 28, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations, amount $ 74,868
v3.25.3
Revenue (Schedule of Contract Balances) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 159,880 $ 156,210
Contract liabilities - current 27,938 30,261
Contract liabilities - non-current $ 4,526 $ 5,101
v3.25.3
Revenue (Narrative) (Details)
$ in Millions
 9 Months Ended
Sep. 28, 2025
USD ($)
Segment
Region
Revenue from Contract with Customer [Abstract]  
Revenue deferred due to unsatisfied performance obligations $ 35.2
Revenue recognized for satisfaction of performance obligations 38.1
Contract with Customer, Liability Included In Beginning Balance, Revenue Recognized $ 26.6
Number of geographic regions in which the Company conducts business | Region 3
Number of operating segments | Segment 3
Number of reportable segments | Segment 3
v3.25.3
Revenue (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Disaggregation of Revenue [Line Items]        
Total net revenue [1] $ 184,561 $ 182,854 $ 517,153 $ 491,340
Service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 17,097 23,217 50,528 70,947
Non-service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 167,464 159,637 466,625 420,393
Enterprise        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 90,838 78,530 252,650 207,020
Enterprise | Service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 331 268 839 713
Enterprise | Non-service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 90,507 78,262 251,811 206,307
Home Networking        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 72,647 77,740 [2] 201,537 204,665 [2]
Home Networking | Service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 846 2,675 2,507 9,298
Home Networking | Non-service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 71,801 75,065 199,030 195,367
Mobile        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 21,076 26,584 [2] 62,966 79,655 [2]
Mobile | Service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 15,920 20,274 47,182 60,936
Mobile | Non-service provider        
Disaggregation of Revenue [Line Items]        
Total net revenue 5,156 6,310 15,784 18,719
Americas        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 128,085 127,752 352,125 333,183
Americas | Enterprise        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 47,596 42,035 129,767 103,189
Americas | Home Networking        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 64,835 65,906 179,111 172,155
Americas | Mobile        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 15,654 19,811 43,247 57,839
EMEA        
Disaggregation of Revenue [Line Items]        
Total net revenue [1],[3] 36,936 32,798 103,440 91,340
EMEA | Enterprise        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 28,011 22,975 79,298 64,549
EMEA | Home Networking        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 5,153 6,295 13,052 15,216
EMEA | Mobile        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 3,772 3,528 11,090 11,575
APAC        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 19,540 22,304 61,588 66,817
APAC | Enterprise        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 15,231 13,520 43,585 39,282
APAC | Home Networking        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] 2,659 5,539 9,374 17,294
APAC | Mobile        
Disaggregation of Revenue [Line Items]        
Total net revenue [1] $ 1,650 $ 3,245 $ 8,629 $ 10,241
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] Financial information for the Home Networking and Mobile segment in the prior year periods were recast to conform to the current reportable segment structure.
[3] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.3
Revenue (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Parenthetical) (Details)
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Maximum        
Disaggregation of Revenue [Line Items]        
Percentage of net revenue 10.00% 10.00% 10.00% 10.00%
v3.25.3
Business Acquisition (Narrative) (Details) - Exium - USD ($)
$ in Millions
 3 Months Ended
Jun. 16, 2025
Jun. 29, 2025
Business Acquisition [Line Items]    
Total purchase consideration $ 12.6  
Developed technology platform 4.2  
Goodwill acquired 9.5  
Deferred tax liability 1.1  
Cash paid for acquisition   $ 12.1
Acquisition holdback for potential purchase price adjustments and indemnification 0.5  
Post combination compensation expense 2.4  
Gross temporary differences related to book basis of intangible assets $ 4.3  
Technology    
Business Acquisition [Line Items]    
Projected future cash flows percentage 28.00%  
Provisional amortization period 7 years  
v3.25.3
Balance Sheet Components (Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost $ 119,748 $ 119,199
Unrealized Gains 131 171
Unrealized Losses 0 0
Estimated Fair Value 119,879 119,370
U.S. Treasury Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost 119,748 119,199
Unrealized Gains 131 171
Unrealized Losses 0 0
Estimated Fair Value $ 119,879 $ 119,370
v3.25.3
Balance Sheet Components (Narrative) (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures [Line Items]            
Accrued interest receivable $ 1,400,000   $ 1,400,000      
Unrealized Losses 0   0   $ 0  
Unrealized losses on available-for-sale securities 0 $ 0 0 $ 0    
Other-than-temporary impairments 0 0 0 0    
Provisions for excess and obsolete inventory 700,000 2,100,000 2,878,000 5,084,000    
Equity securities without readily determinable fair value, cumulative downward adjustments for price change and impairment loss 0   0      
Cumulative upward adjustments for price changes 300,000   300,000      
Carrying value of equity investments without readily determinable fair values 6,100,000 6,100,000 6,100,000 6,100,000    
Equity investments 8,718,000   8,718,000   8,381,000  
Limited Partnership Fund            
Balance Sheet Related Disclosures [Line Items]            
Equity investments $ 2,700,000 $ 2,400,000 $ 2,700,000 $ 2,400,000 $ 2,300,000 $ 2,300,000
v3.25.3
Balance Sheet Components (Schedule of Inventories) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Raw materials $ 10,710 $ 13,439
Finished goods 155,851 149,100
Total $ 166,561 $ 162,539
v3.25.3
Balance Sheet Components (Schedule of Property and Equipment, Net) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Total property and equipment, gross $ 103,018 $ 104,377
Accumulated depreciation (79,881) (93,089)
Total 23,137 11,288
Machinery and equipment    
Total property and equipment, gross 53,904 54,355
Furniture and fixtures    
Total property and equipment, gross 2,960 4,185
Leasehold improvements    
Total property and equipment, gross 18,715 15,843
Software    
Total property and equipment, gross 22,379 24,610
Computer equipment    
Total property and equipment, gross $ 5,060 $ 5,384
v3.25.3
Balance Sheet Components (Schedule of Other Non-Current Assets) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Non-current deferred income taxes $ 2,553 $ 2,332
Long-term investments 8,718 8,381
Restricted cash 2,100 2,107
Other 3,784 3,767
Total $ 17,155 $ 16,587
v3.25.3
Balance Sheet Components (Schedule of Other Accrued Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Current operating lease liabilities $ 3,589 $ 10,837
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total Total
Sales and marketing $ 53,482 $ 59,129
Warranty obligations 5,758 5,192
Sales returns [1] 24,067 31,711
Freight and duty 4,909 4,979
Other 32,825 36,230
Total $ 124,630 $ 148,078
[1] Inventory expected to be received from future sales returns amounted to $11.1 million and $15.1 million as of September 28, 2025 and December 31, 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $8.3 million and $9.0 million as of September 28, 2025 and December 31, 2024, respectively.
v3.25.3
Balance Sheet Components (Schedule of Other Accrued Liabilities) (Parentheticals) (Details) - USD ($)
$ in Millions
Sep. 28, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Inventory expected to be received from future sales returns $ 11.1 $ 15.1
Provisions to write down expected returned inventory to net realizable value $ 8.3 $ 9.0
v3.25.3
Derivative Financial Instruments (Narrative) (Details) - Foreign currency forward contracts
$ in Millions
 9 Months Ended
Sep. 28, 2025
USD ($)
Derivative_instrument
Derivatives Not Designated as Hedging Instruments  
Derivative [Line Items]  
Approximate number of derivatives per quarter | Derivative_instrument 11
Notional amount | $ $ 3.0
Cash Flow Hedges  
Derivative [Line Items]  
Approximate number of derivatives per quarter | Derivative_instrument 10
Notional amount | $ $ 4.7
Maximum  
Derivative [Line Items]  
Term of derivative contracts 6 months
Maximum | Derivatives Not Designated as Hedging Instruments  
Derivative [Line Items]  
Term of derivative contracts 3 months
Maximum | Cash Flow Hedges  
Derivative [Line Items]  
Term of derivative contracts 6 months
v3.25.3
Derivative Financial Instruments (Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Unaudited Condensed Consolidated Balance Sheets) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets $ 161 $ 1,053
Gross Amounts of recognized liabilities 66 273
Prepaid expenses and other current assets | Derivatives not designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets 142 979
Prepaid expenses and other current assets | Derivatives designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets 19 74
Other accrued liabilities | Derivatives not designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized liabilities 62 254
Other accrued liabilities | Derivatives designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized liabilities $ 4 $ 19
v3.25.3
Net Income (Loss) Per Share (Schedule of Net Income (Loss) Per Share) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Jun. 29, 2025
Mar. 30, 2025
Sep. 29, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 28, 2025
Sep. 29, 2024
Numerator:                
Net income (loss) $ (4,777) $ (6,428) $ (6,034) $ 85,074 $ (45,175) $ (18,650) $ (17,239) $ 21,249
Denominator:                
Weighted average common shares - basic 28,638     28,705     28,756 28,992
Potentially dilutive common share equivalent 0     659     0 397
Weighted average common shares - dilutive 28,638     29,364     28,756 29,389
Basic net income (loss) per share $ (0.17)     $ 2.96     $ (0.6) $ 0.73
Diluted net income (loss) per share $ (0.17)     $ 2.9     $ (0.6) $ 0.72
Anti-dilutive employee stock-based awards, excluded 875     1,332     373 1,053
v3.25.3
Income Taxes (Narrative) (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Schedule Of Income Taxes [Line Items]        
Tax impact $ 736,000 $ 14,219,000 $ 3,006,000 $ 15,100,000
Effective tax rate (18.20%) 14.30% (21.10%) 41.50%
Possible reduction in liabilities for uncertain tax positions $ 1,400,000   $ 1,400,000  
Pretax book income   $ 99,300,000   $ 36,300,000
Pretax book loss 4,000,000   14,200,000  
Income tax implications of deferred tax benefit $ 0 $ 0 $ 0 $ 0
v3.25.3
Commitments and Contingencies (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Dec. 31, 2024
Loss Contingencies [Line Items]          
Non-cancelable purchase commitments with suppliers $ 60,500,000   $ 60,500,000   $ 57,400,000
Additional purchase orders beyond contractual termination periods 171,300,000   171,300,000    
Gain incurred related to purchase commitments   $ 1,200,000      
Losses incurred related to purchase commitments     400,000 $ 5,000,000  
Short term undiscounted non-cancelable lease payments 3,100,000   3,100,000    
Long term undiscounted non cancelable lease payments $ 39,800,000   $ 39,800,000    
Non-cancelable lease term 11 years   11 years    
Litigation reserves, net $ (98,000) $ 100,855,000 $ (136,000) $ 92,625,000  
Maximum          
Loss Contingencies [Line Items]          
Losses incurred related to purchase commitments $ 100,000        
46 to 60 Days          
Loss Contingencies [Line Items]          
Percentage of cancelable orders 50.00%   50.00%    
46 to 60 Days | Minimum          
Loss Contingencies [Line Items]          
Required notice period prior to expected shipment date     46 days    
46 to 60 Days | Maximum          
Loss Contingencies [Line Items]          
Required notice period prior to expected shipment date     60 days    
31 to 45 Days          
Loss Contingencies [Line Items]          
Percentage of cancelable orders 25.00%   25.00%    
31 to 45 Days | Minimum          
Loss Contingencies [Line Items]          
Required notice period prior to expected shipment date     31 days    
31 to 45 Days | Maximum          
Loss Contingencies [Line Items]          
Required notice period prior to expected shipment date     45 days    
Non- Trade          
Loss Contingencies [Line Items]          
Long-term, non-cancellable purchase commitments $ 9,400,000   $ 9,400,000    
v3.25.3
Commitments and Contingencies (Schedule of Changes in Warranty Obligations) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Movement in Standard Product Warranty Accrual [Roll Forward]        
Balance as of beginning of the period $ 5,565 $ 4,771 $ 5,192 $ 5,738
Provision for warranty liability made 1,414 1,060 4,090 2,468
Settlements made (1,221) (1,046) (3,524) (3,421)
Balance as of the end of the period $ 5,758 $ 4,785 $ 5,758 $ 4,785
v3.25.3
Stockholders' Equity (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Jun. 29, 2025
Mar. 30, 2025
Sep. 29, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 28, 2025
Sep. 29, 2024
Class of Stock [Line Items]                
Shares remaining authorized for repurchase (in shares) 2,000,000           2,000,000  
Stock repurchased (in shares)             1,300,000 1,700,000
Cost of stock repurchased $ 20,029 $ 7,500 $ 7,500 $ 1,461 $ 10,121 $ 11,444 $ 35,000 $ 22,900
RSU withholdings (in shares)             452,000 222,000
RSU withholdings             $ 11,758 $ 3,330
v3.25.3
Stockholders' Equity (Schedule of Changes in Accumulated Other Comprehensive Income (loss) by Component) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Estimated tax benefit (provision)    
Beginning balance $ (7) $ 3
Other comprehensive income (loss) before reclassifications 195 151
Less: Amount reclassified from accumulated other comprehensive income (loss) 188 120
Net current period other comprehensive income (loss) 7 31
Ending balance 0 34
AOCI, after tax    
Beginning balance 541,066 535,495
Other comprehensive income (loss) before reclassifications (796) (437)
Less: Amount reclassified from accumulated other comprehensive income (loss) (707) (453)
Net current period other comprehensive income (loss) (89) 16
Ending balance 506,848 550,330
Unrealized gains (losses) on available-for-sale investments    
AOCI, before tax    
Beginning balance 169 126
Other comprehensive income (loss) before reclassifications (40) 233
Less: Amount reclassified from accumulated other comprehensive income (loss) 0 0
Net current period other comprehensive income (loss) (40) 233
Ending balance 129 359
Unrealized gains (losses) on derivatives    
AOCI, before tax    
Beginning balance 79 7
Other comprehensive income (loss) before reclassifications (951) (821)
Less: Amount reclassified from accumulated other comprehensive income (loss) (895) (573)
Net current period other comprehensive income (loss) (56) (248)
Ending balance 23 (241)
AOCI    
AOCI, after tax    
Beginning balance 241 136
Ending balance $ 152 $ 152
v3.25.3
Stockholders' Equity (Schedule of Reclassifications out of AOCI) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]        
Net revenue [1] $ 184,561 $ 182,854 $ 517,153 $ 491,340
Cost of revenue (112,309) (126,371) (324,597) (354,797)
Research and development (23,328) (20,905) (62,482) (60,983)
Sales and marketing (33,762) (31,196) (92,856) (91,482)
General and administrative (20,619) (8,357) (59,372) (45,610)
Tax impact (736) (14,219) (3,006) (15,100)
Amount Reclassified from AOCI        
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]        
Net revenue (64) (461) (1,128) (670)
Cost of revenue (1) 0 2  
Research and development (4) 8 48 6
Sales and marketing (3) 18 147 60
General and administrative (3) 24 36 31
Total before tax (75) (411) (895) (573)
Tax impact 16 86 188 120
Total, net of tax $ (59) $ (325) $ (707) $ (453)
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.3
Employee Benefit Plans (Narrative) (Details) - USD ($)
$ in Millions
 1 Months Ended 9 Months Ended
May 31, 2025
Apr. 30, 2025
Sep. 28, 2025
Sep. 29, 2024
2025 Equity Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares reserved for future grant (in shares)     2,300,000  
Increase in number of shares of common stock authorized   750,000    
2024 Inducement Equity Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares reserved for future grant (in shares)     300,000  
Additional shares available for issuance (in shares) 600,000      
Employee Stock Purchase Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares reserved for future grant (in shares)     1,700,000  
Purchase percentage of stock at fair market value (in percentage)     85.00%  
Increase in number of shares of common stock authorized 1,500,000      
Employee Stock Option | 2016 Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     4 years  
Performance-Based RSU | 2025 Equity Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Performance-Based RSU | 2016 Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Time-Based RSU | 2025 Equity Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Time-Based RSU | 2025 Equity Incentive Plan | Target Shares Granted        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     12 months  
Time-Based RSU | 2025 Equity Incentive Plan | Remaining Tranche        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     2 years  
Time-Based RSU | 2016 Incentive Plan | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Time-Based RSU | 2016 Incentive Plan | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     4 years  
Performance Shares | Minimum | Target Shares Granted        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage vest of performance shares     0.00%  
Performance Shares | Maximum | Target Shares Granted        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage vest of performance shares     200.00%  
Performance Shares | 2024 Inducement Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Performance Shares | 2016 Plan and 2024 Inducement Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years  
Performance Shares | 2016 Plan, 2024 Inducement Plan and 2025 Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting term     3 years 3 years
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total unrecognized compensation     $ 64.6  
Weighted-average period of recognition of stock based compensation     2 years  
v3.25.3
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Employee Stock Option
shares in Thousands
 9 Months Ended
Sep. 28, 2025
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Number of shares, beginning balance (in shares) | shares 475
Number of shares, exercised (in shares) | shares (198)
Number of shares, expired (in shares) | shares (170)
Number of shares, ending balance (in shares) | shares 107
Beginning balance (in dollars per share) | $ / shares $ 32.60
Exercised (in dollars per share) | $ / shares 26.56
Expired (in dollars per share) | $ / shares 38.97
Ending balance (in dollars per share) | $ / shares $ 33.73
v3.25.3
Employee Benefit Plans (Schedule of Time-Based RSU Activity) (Details) - Time-Based RSU
shares in Thousands
 9 Months Ended
Sep. 28, 2025
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 2,550
Granted (in shares) | shares 1,032
Vested (in shares) | shares (979)
Cancelled (in shares) | shares (183)
Ending balance (in shares) | shares 2,420
Weighted Average Grant Date Fair Value Per Share  
Beginning Balance (in dollars per share) | $ / shares $ 17.64
Granted (in dollars per share) | $ / shares 27.79
Vested (in dollars per share) | $ / shares 18.48
Cancelled (in dollars per share) | $ / shares 18.31
Ending Balance (in dollars per share) | $ / shares $ 21.58
v3.25.3
Employee Benefit Plans (Schedule of Performance Shares Activity) (Details) - Performance Shares
shares in Thousands
 9 Months Ended
Sep. 28, 2025
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 655
Granted (in shares) | shares 423
Vested (in shares) | shares (249)
Cancelled (in shares) | shares (34)
Ending balance (in shares) | shares 795
Weighted Average Grant Date Fair Value Per Share  
Beginning Balance (in dollars per share) | $ / shares $ 20.93
Granted (in dollars per share) | $ / shares 44.37
Vested (in dollars per share) | $ / shares 20.85
Cancelled (in dollars per share) | $ / shares 22.13
Ending Balance (in dollars per share) | $ / shares $ 33.38
v3.25.3
Employee Benefit Plans (Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Time-Based and Performance-Based and the ESPP) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation $ 8,808 $ 5,620 $ 20,979 $ 16,052
Cost of revenue        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation 562 444 1,440 1,222
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation 1,483 868 3,075 2,410
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation 2,450 1,520 5,579 3,992
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation $ 4,313 $ 2,788 $ 10,885 $ 8,428
v3.25.3
Segment Information (Narrative) (Details)
 9 Months Ended
Sep. 28, 2025
Segment
Segment Reporting [Abstract]  
Number of operating segments 3
Number of reportable segments 3
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember
v3.25.3
Segment Information (Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income (Loss) Before Income Taxes) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Segment Reporting Information [Line Items]        
Net revenue [1] $ 184,561 $ 182,854 $ 517,153 $ 491,340
Cost of revenue 111,567 125,927 322,977 353,575
Gross profit $ 72,994 $ 56,927 $ 194,176 $ 137,765
Gross margin 39.60% 31.10% 37.50% 28.00%
Operating expenses $ 48,527 $ 45,574 $ 134,290 $ 134,381
Contribution income (loss) $ 24,467 $ 11,353 $ 59,886 $ 3,384
Segment contribution margin 13.30% 6.20% 11.60% 0.70%
Corporate and unallocated costs $ (20,650) $ (9,708) $ (59,890) $ (48,864)
Amortization of intangible assets (180) 0 (180) 0
Stock-based compensation expense (8,808) (5,620) (20,979) (16,052)
Acquisition related expenses (286) 0 (991) 0
Restructuring and other charges (1,514) (1,072) (7,118) (3,792)
Litigation reserves, net (98) 100,855 (136) 92,625
Other income, net 3,028 [2] 3,485 15,175 [2] 9,048
Income (loss) before income taxes (4,041) 99,293 (14,233) 36,349
Enterprise        
Segment Reporting Information [Line Items]        
Net revenue [1] 90,838 78,530 252,650 207,020
Cost of revenue 44,486 43,436 131,052 123,045
Gross profit $ 46,352 $ 35,094 $ 121,598 $ 83,975
Gross margin 51.00% 44.70% 48.10% 40.60%
Operating expenses $ 23,737 $ 18,961 $ 65,386 $ 55,877
Contribution income (loss) $ 22,615 $ 16,133 $ 56,212 $ 28,098
Segment contribution margin 24.90% 20.50% 22.20% 13.60%
Home Networking        
Segment Reporting Information [Line Items]        
Net revenue [1] $ 72,647 $ 77,740 [3] $ 201,537 $ 204,665 [3]
Cost of revenue 52,543 60,770 [3] 146,709 165,956 [3]
Gross profit $ 20,104 $ 16,970 [3] $ 54,828 $ 38,709 [3]
Gross margin 27.70% 21.80% [3] 27.20% 18.90% [3]
Operating expenses $ 18,551 $ 20,662 [3] $ 51,843 $ 60,187 [3]
Contribution income (loss) $ 1,553 $ (3,692) [3] $ 2,985 $ (21,478) [3]
Segment contribution margin 2.10% (4.70%) [3] 1.50% (10.50%) [3]
Mobile        
Segment Reporting Information [Line Items]        
Net revenue [1] $ 21,076 $ 26,584 [3] $ 62,966 $ 79,655 [3]
Cost of revenue 14,538 21,721 [3] 45,216 64,574 [3]
Gross profit $ 6,538 $ 4,863 [3] $ 17,750 $ 15,081 [3]
Gross margin 31.00% 18.30% [3] 28.20% 18.90% [3]
Operating expenses $ 6,239 $ 5,951 [3] $ 17,061 $ 18,317 [3]
Contribution income (loss) $ 299 $ (1,088) [3] $ 689 $ (3,236) [3]
Segment contribution margin 1.40% (4.10%) [3] 1.10% (4.10%) [3]
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] Amounts included interest income of $2.7 million and $9.1 million for the three and nine months ended September 28, 2025, respectively, and $3.3 million and $8.3 million for the three and nine months ended September 29, 2024, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.7 million and $(2.4) million for the three and nine months ended September 28, 2025, respectively, and $(1.6) million
and $0.5 million for the three and nine months ended September 29, 2024, respectively. For the nine months ended September 28, 2025, the amount also included proceeds of $4.7 million from a sale of patents.
[3] Financial information for the Home Networking and Mobile segment in the prior year periods were recast to conform to the current reportable segment structure.
v3.25.3
Segment Information (Schedule of Reportable Segments and Reconciliation of Segment Contribution Income (Loss) to Income (Loss) Before Income Taxes) (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Segment Reporting Information [Line Items]        
Interest income $ 2.7 $ 3.3 $ 9.1 $ 8.3
Gain/(loss), net from derivatives not designated as hedging instruments $ 0.7 $ (1.6) (2.4) $ 0.5
Patents        
Segment Reporting Information [Line Items]        
Proceeds from sale of patents     $ 4.7  
v3.25.3
Segment Information (Schedule of Net Revenue by Geographic Areas) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Segment Reporting Information [Line Items]        
Total net revenue [1] $ 184,561 $ 182,854 $ 517,153 $ 491,340
United States (U.S.)        
Segment Reporting Information [Line Items]        
Total net revenue 124,330 124,305 341,131 324,388
Americas (excluding U.S.)        
Segment Reporting Information [Line Items]        
Total net revenue 3,755 3,447 10,994 8,795
EMEA        
Segment Reporting Information [Line Items]        
Total net revenue [1],[2] 36,936 32,798 103,440 91,340
APAC        
Segment Reporting Information [Line Items]        
Total net revenue [2] $ 19,540 $ 22,304 $ 61,588 $ 66,817
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.3
Segment Information (Schedule of Net Revenue by Geographic Areas) (Parenthetical) (Details) - Maximum
 3 Months Ended 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Revenues From External Customers And Long Lived Assets [Line Items]        
Percentage of net revenue 10.00% 10.00% 10.00% 10.00%
EMEA        
Revenues From External Customers And Long Lived Assets [Line Items]        
Percentage of net revenue 10.00% 10.00% 10.00% 10.00%
APAC        
Revenues From External Customers And Long Lived Assets [Line Items]        
Percentage of net revenue 10.00% 10.00% 10.00% 10.00%
v3.25.3
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 61,826 $ 39,335
United States (U.S.)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 42,125 19,057
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 4,588 5,573
Americas (excluding U.S. and Canada)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 14 39
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 2,770 3,127
Singapore    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 3,794 4,841
APAC (excluding Singapore)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total [1] $ 8,535 $ 6,698
[1] No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.
v3.25.3
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Parenthetical) (Details)
 9 Months Ended 12 Months Ended
Sep. 28, 2025
Dec. 31, 2024
Maximum | APAC (excluding Singapore)    
Revenues From External Customers And Long Lived Assets [Line Items]    
Percentage of total long-lived assets owned 10.00% 10.00%
v3.25.3
Fair Value Measurements (Summary of Valuation of Company's Financial Instruments by Various Levels) (Details) - USD ($)
$ in Thousands
Sep. 28, 2025
Dec. 31, 2024
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value $ 215,246 $ 234,342
Liabilities measured at fair value 66 273
Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 95,206 113,919
Liabilities measured at fair value 0 0
Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 120,040 120,423
Liabilities measured at fair value 66 273
Cash Equivalents    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 92,182 111,043
Cash Equivalents | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 92,182 111,043
Cash Equivalents | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 0 0
Trading securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 3,024 2,876
Trading securities | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 3,024 2,876
Trading securities | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 0 0
Available-for-sale Investments | U.S. Treasury Securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 119,879 119,370
Available-for-sale Investments | U.S. Treasury Securities | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 0 0
Available-for-sale Investments | U.S. Treasury Securities | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 119,879 119,370
Foreign currency forward contracts    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 161 1,053
Liabilities measured at fair value [3] 66 273
Foreign currency forward contracts | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 0 0
Liabilities measured at fair value [3] 0 0
Foreign currency forward contracts | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 161 1,053
Liabilities measured at fair value [3] $ 66 $ 273
[1] Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets.
[2] Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets.
[3] Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets.
v3.25.3
Restructuring and Other Charges (Summary of Activity Related to Accrued Restructuring and Other Charges ) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 28, 2025
Sep. 29, 2024
Restructuring Cost and Reserve [Line Items]    
Beginning balance $ 664 $ 287
Additions 7,118 3,792
Cash payments (5,597) (3,147)
Adjustments (16) (262)
Ending balance 2,169 670
Employee Termination Charges    
Restructuring Cost and Reserve [Line Items]    
Beginning balance 664 257
Additions 6,997 3,493
Cash payments (5,587) (3,061)
Adjustments 20 (19)
Ending balance 2,094 670
Lease Contract Termination and Other Charges    
Restructuring Cost and Reserve [Line Items]    
Beginning balance 0 30
Additions 121 299
Cash payments (10) (86)
Adjustments (36) (243)
Ending balance $ 75 $ 0