Segments and Major Customers

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segments and Major Customers

6. Segments and Major Customers

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

The Company has determined its CODM to be the Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of June 30, 2025, the Company has a single operating and reportable segment.

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

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the three and six months ended June 30, 2025 and 2024, respectively, were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2025			2024			2025			2024
Total revenue	$	172,209		$	132,138		$	338,873		$	250,009
Adjusted cost of revenue (1)		(32,822	)		(23,657	)		(63,789	)		(44,136	)
Adjusted research and development (2)		(40,891	)		(36,324	)		(78,980	)		(70,165	)
Adjusted sales, general and administrative (3)		(19,465	)		(17,063	)		(40,812	)		(36,925	)
Other segment items:
Stock-based compensation expenses (4)		(14,233	)		(11,650	)		(25,616	)		(21,147	)
Amortization of acquired intangible assets (4)		(1,721	)		(3,239	)		(3,434	)		(6,490	)
Acquisition-related costs (5)		(84	)		(12	)		(105	)		(122	)
Impairment of assets		—			(1,071	)		—			(1,071	)
Change in fair value of earn-out liability		—			1,200			—			500
Interest and other income (expense), net		4,846			4,029			9,325			8,250
Provision for income taxes		(9,904	)		(8,295	)		(17,224	)		(9,749	)
Net income	$	57,935		$	36,056		$	118,238		$	68,954

(1)Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.

(2)Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.

(3)Excludes stock-based compensation expenses and acquisition-related costs and retention bonus expense.

(4)The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.

(5)The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s ongoing operating results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the three and six months ended June 30, 2025 and 2024, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Payroll and benefits	$	38,911	$	31,550	$	76,840	$	63,801
Variable research and development expenses (1)		5,354		6,490		10,163		12,327
Professional fees		4,171		3,918		9,660		9,573
Facilities costs		3,136		2,910		6,220		5,695
Temporary labor services and consulting expenses		3,324		3,795		6,167		6,445
Amortization and depreciation		3,010		2,319		5,791		4,697
Other expenses		2,450		2,405		4,951		4,552
Total adjusted operating expenses	$	60,356	$	53,387	$	119,792	$	107,090

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

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

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of June 30, 2025 and December 31, 2024, respectively, was as follows:

	As of
Customer	June 30, 2025			December 31, 2024
Customer 1		38	%		39	%
Customer 2		20	%		17	%

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and six months ended June 30, 2025 and 2024, respectively, was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Customer	2025			2024			2025			2024
Customer A		22	%		19	%		22	%		25	%
Customer B		18	%		22	%		19	%		18	%
Customer C		12	%	*				10	%	*
Customer D	*				11	%	*				12	%

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
South Korea	$	78,806	$	35,836	$	146,831	$	78,802
Singapore		38,091		19,157		89,767		24,324
United States		34,733		55,683		61,122		107,600
Other		20,579		21,462		41,153		39,283
Total	$	172,209	$	132,138	$	338,873	$	250,009