| Schedule of revenue from external customers by geographic areas |
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):
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Three Months Ended June 30, |
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2026 |
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% |
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2025 |
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% |
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Americas1
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| Product revenue |
$ |
24,272 |
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$ |
22,750 |
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| Service and subscription |
13,454 |
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14,359 |
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| Total revenue |
37,726 |
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46.7 |
% |
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37,109 |
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57.7 |
% |
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| EMEA |
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| Product revenue |
19,501 |
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9,983 |
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| Service and subscription |
8,698 |
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8,482 |
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| Total revenue |
28,199 |
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34.9 |
% |
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18,465 |
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28.7 |
% |
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| APAC |
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| Product revenue |
10,098 |
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4,802 |
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| Service and subscription |
2,516 |
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2,102 |
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| Total revenue |
12,614 |
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15.6 |
% |
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6,904 |
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10.7 |
% |
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| Consolidated |
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| Product revenue |
53,871 |
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37,535 |
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| Service and subscription |
24,668 |
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24,943 |
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Royalty2
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2,264 |
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2.8 |
% |
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1,808 |
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2.8 |
% |
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| Total revenue |
$ |
80,803 |
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|
100 |
% |
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$ |
64,286 |
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|
100 |
% |
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1 Revenue for Americas geographic region outside of the United States is not significant.
2 Royalty revenue is not allocable to geographic regions.
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| Revenue by Solution and Reconciliation of Net Loss |
Revenue by Solution
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Three Months Ended June 30, |
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2026 |
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% |
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2025 |
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% |
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| Primary storage systems |
$ |
8,487 |
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11 |
% |
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$ |
12,529 |
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19 |
% |
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| Secondary storage systems |
37,032 |
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46 |
% |
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18,506 |
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29 |
% |
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| Device and media |
10,361 |
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13 |
% |
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9,941 |
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15 |
% |
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| Service |
22,659 |
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28 |
% |
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21,502 |
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33 |
% |
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| Royalty |
2,264 |
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3 |
% |
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1,808 |
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3 |
% |
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Total revenue1
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$ |
80,803 |
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100 |
% |
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$ |
64,286 |
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100 |
% |
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1 Subscription revenue of $2.0 million and $3.4 million allocated to Primary and Secondary storage systems for the three months ended June 30, 2026 and 2025, respectively.
Net Loss
The following table shows reported segment revenue, segment profit or loss, and significant segment expenses were as follows (in thousands):
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Three Months Ended June 30, |
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2026 |
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2025 |
Total revenue |
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$ |
80,803 |
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$ |
64,286 |
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Total cost of revenue |
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49,083 |
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41,574 |
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Gross profit |
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31,720 |
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|
22,712 |
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Gross margin |
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39.3 |
% |
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35.3 |
% |
Operating expenses |
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Salaries & fringe1
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15,743 |
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18,001 |
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Outside services2
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4,346 |
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7,676 |
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Infrastructure3
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1,836 |
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2,522 |
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Operational costs4
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2,317 |
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|
2,332 |
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Restructuring |
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23 |
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2,423 |
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Other segment items5
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2,417 |
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|
2,354 |
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Total operating expenses |
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26,682 |
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35,308 |
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| Income (loss) from operations |
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5,038 |
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(12,596) |
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| Other income (expense), net |
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211 |
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(430) |
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| Interest expense |
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(2,097) |
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(6,516) |
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| Change in fair value of warrant liability |
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(16,305) |
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— |
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| Change in fair value of convertible note |
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(129,715) |
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— |
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| Gain (loss) on debt extinguishment, net |
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(11,716) |
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|
2,559 |
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| Loss before income taxes |
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(154,583) |
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(16,983) |
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| Income tax provision |
|
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|
710 |
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|
223 |
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Net loss |
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|
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|
$ |
(155,293) |
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|
$ |
(17,206) |
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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.
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