Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.2
SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our chief operating decision maker (“CODM”), the Chief Executive Officer, manages business activities as a single operating and reportable segment at the consolidated level. The CODM reviews and utilizes consolidated financial information, including revenue, gross profit, operating loss and net loss as reported on the condensed consolidated statements of operations, to assess performance and allocate resources to support strategic priorities. Condensed consolidated net loss is our segment’s primary measure of profit or loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets.
Our CODM reviews the following significant segment expenses, which are each separately disclosed and presented in the condensed consolidated statements of operations: cost of revenue for product, cost of revenue for subscription services, research and development expenses, sales and marketing expenses, and general and
administrative expenses. Other segment items within condensed consolidated net loss include restructuring and impairment expenses, other income (expense), net and income tax provision. Other significant noncash segment expenses include stock-based compensation and depreciation and amortization.

Disaggregation of Revenue
The following table depicts the disaggregation of revenue by geographic areas and major product offerings and geographies and is consistent with how the CODM evaluates its financial performance (in thousands):
  Three Months Ended June 30,
2025 2024
Americas1
   Product revenue $ 22,750  $ 24,580 
   Service and subscription 14,359  14,710 
Total revenue 37,109  57  % 39,290  54  %
EMEA
   Product revenue 9,983  13,518 
   Service and subscription 8,482  9,402 
Total revenue 18,465  29  % 22,920  32  %
APAC
   Product revenue 4,802  4,554 
   Service and subscription 2,102  2,599 
Total revenue 6,904  11  % 7,153  10  %
Consolidated
   Product revenue 37,535  42,652 
   Service and subscription 24,943  26,711 
   Royalty2
1,808  3  % 2,902  4  %
Total revenue $ 64,286  100  % $ 72,265  100  %

1 Revenue for the Americas geographic region outside of the United States is not significant.
2 Royalty revenue is not allocatable to geographic regions.


Revenue by Solution
Three Months Ended June 30,
2025 % 2024 %
Primary storage systems $ 12,529  19  % $ 17,594  24  %
Secondary storage systems 18,506  30  % 16,412  23  %
Device and media 9,941  15  % 9,601  13  %
Service 21,502  33  % 25,756  36  %
Royalty 1,808  3  % 2,902  4  %
Total revenue1
$ 64,286  100  % $ 72,265  100  %

1 Subscription revenue of $3.4 million and $1.0 million was allocated to primary and secondary storage systems for the three months ended June 30, 2025 and 2024, respectively.

Net Loss
The following table shows reported segment revenue, segment profit or loss, and significant segment expenses were as follows: (in thousands):

Three Months Ended June 30,
2025 2024
Total revenue
 $ 64,286  $ 72,265 
Total cost of revenue
 41,574  45,208 
Gross profit
 22,712  27,057 
Gross margin
 35.3  % 37.4  %
Operating expenses
     Salaries & fringe1
18,001  21,423 
     Outside services2
7,676  13,194 
     Infrastructure3
2,522  2,908 
     Operational costs4
2,332  2,355 
     Restructuring
 2,423  1,192 
     Other5
2,354  2,788 
          Total operating expenses
 35,308  43,860 
Loss from operations
 (12,596) (16,803)
Other expense, net
 (430) (41)
Interest expense (6,516) (3,790)
Change in fair value of warrant liability —  1,666 
Loss on debt extinguishment, net 2,559  (695)
Net loss before income taxes
 (16,983) (19,663)
Income tax provision 223  235 
Net loss
 $ (17,206) $ (19,898)
1 Salaries & fringe includes spend on contractors.
2 Outside services includes contractor, recruiting and legal expenses.
3 Infrastructure includes property related expenses, including fixed and variable lease expense, telecommunications and depreciation.
4 Operational costs include due and subscriptions, computer expenses, office supplies and other miscellaneous items.
5 Other segment items includes travel related spend, marketing expense, taxes, fees and other miscellaneous items.