Segment Data (Tables)

3 Months Ended

Mar. 31, 2026

Information relative to our reportable segments was as follows (in thousands):


	Three Months Ended March 31,
	2026						2025
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
Net sales	$	452,821	$	354,524	$	807,345	$	340,896	$	262,737	$	603,633
Cost of sales	(232,156)		(97,903)		(330,059)		(170,181)		(67,713)		(237,894)
Other segment items (1)	7,651		11,984		19,635		9,420		9,037		18,457
Adjusted gross margin	$	228,316	$	268,605	$	496,921	$	180,135	$	204,061	$	384,196
Other segment items (1)					(19,635)						(18,457)
Selling, general and administrative					(259,093)						(223,509)
Research and development					(188,950)						(151,023)
Interest income					10,611						10,604
Interest expense					(28,643)						(7,821)
Other income, net					189,010						114,401
Income before provision for income taxes					$	200,221					$	108,391

(1) Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, inventory step-up amortization related to acquisitions, and non-recurring severance costs to arrive at the profit measure used by the CODM.

The following table presents supplemental information included within the measure of profit or loss, adjusted gross margin, reviewed by our CODM (in thousands). There are no other material items presented to our CODM by segment or included within adjusted gross margin for supplemental disclosure.


	Three Months Ended March 31,
	2026						2025
	Connected Devices		Software and Services		Total		Connected Devices		Software and Services		Total
Depreciation and amortization	$	11,766	$	8,015	$	19,781	$	9,285	$	3,959	$	13,244
Significant noncash items:
Stock-based compensation expense	5,775		4,728		10,503		7,476		5,411		12,887
Provisions for inventory	937		—		937		846		—		846
Warranty reserve expense	3,089		—		3,089		3,779		—		3,779