Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company operates as a single operating segment and a single reportable segment. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The measure of segment profit or loss that the CODM uses to allocate resources and assess performance is net income (loss). The CODM uses net income (loss) to make resource allocation decisions, evaluate budgets and forecasts, and assess the Company's overall performance, including monitoring budgeted versus actual results.
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 Company evaluates its financial performance (in thousands):
Three Months Ended June 30,
2026 % 2025 %
Americas1
   Product revenue $ 24,272  $ 22,750 
   Service and subscription 13,454  14,359 
Total revenue 37,726  46.7  % 37,109  57.7  %
EMEA
   Product revenue 19,501  9,983 
   Service and subscription 8,698  8,482 
Total revenue 28,199  34.9  % 18,465  28.7  %
APAC
   Product revenue 10,098  4,802 
   Service and subscription 2,516  2,102 
Total revenue 12,614  15.6  % 6,904  10.7  %
Consolidated
   Product revenue 53,871  37,535 
   Service and subscription 24,668  24,943 
   Royalty2
2,264  2.8  % 1,808  2.8  %
Total revenue $ 80,803  100  % $ 64,286  100  %
1 Revenue for Americas geographic region outside of the United States is not significant.
2 Royalty revenue is not allocable to geographic regions.

Revenue by Solution
Three Months Ended June 30,
2026 % 2025 %
Primary storage systems $ 8,487  11  % $ 12,529  19  %
Secondary storage systems 37,032  46  % 18,506  29  %
Device and media 10,361  13  % 9,941  15  %
Service 22,659  28  % 21,502  33  %
Royalty 2,264  3  % 1,808  3  %
Total revenue1
$ 80,803  100  % $ 64,286  100  %
1 Subscription revenue of $2.0 million and $3.4 million allocated to Primary and Secondary storage systems for the three months ended June 30, 2026 and 2025, 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,
2026 2025
Total revenue
 $ 80,803  $ 64,286 
Total cost of revenue
 49,083  41,574 
Gross profit
 31,720  22,712 
Gross margin
 39.3  % 35.3  %
Operating expenses
     Salaries & fringe1
15,743  18,001 
     Outside services2
4,346  7,676 
     Infrastructure3
1,836  2,522 
     Operational costs4
2,317  2,332 
     Restructuring
 23  2,423 
     Other segment items5
2,417  2,354 
          Total operating expenses
 26,682  35,308 
Income (loss) from operations 5,038  (12,596)
Other income (expense), net 211  (430)
Interest expense (2,097) (6,516)
Change in fair value of warrant liability (16,305) — 
Change in fair value of convertible note (129,715) — 
Gain (loss) on debt extinguishment, net (11,716) 2,559 
Loss before income taxes (154,583) (16,983)
Income tax provision 710  223 
Net loss
 $ (155,293) $ (17,206)
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.