LOGI 10-K & 10-Q changes, risk factors and insider trading

The risk factors summarized and disclosed below could adversely affect our business, results of operations and financial condition, and may cause volatility in the price of our shares. These are not all the risks we faceface, and other factors not presently known to us or that we currently believe are immaterial may also affect our business if they occur. See also the other information set forth in this Annual Report on Form 10-K, including in Part I, Item 1 "Business," Part II, Item 1C "CybersecurityCybersecurity,", Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and our Consolidated Financial Statements and the related Notes.

•If we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories,manner, our business and operating results could be adversely affected.

•We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages or significant price increases of required components.components or materials.

•We rely on third parties to sell and distribute our products, and we rely on their information to manage our business. Disruption ofof, or changes to, our relationship with these channel partners, changes in or issues with their business practices, their failure to provide timely and accurate information, changes in distribution partners, practices or models, conflicts among our channels of distribution, or failure to build and scale our own sales force for certain product categories and enterprise channel partners could adversely affect our business, results of operations, operating cash flows and financial condition.

•Our business depends in part on access to third-party platforms or technologies, and if access thereto is withdrawn, denied, or is not available on terms acceptable to us, or if the platforms or technologies change without notice to us, our business and operating results could be adversely affected.

•Our success largely depends on our ability to manage, hire, retain, integrate and motivate sufficient numbers of qualified personnel, including senior leadership. Our strategyleadership, and our ability to innovate, design and produce new products, market and sell products, maintain operating margins and control expenses depend onretain key personnel thatwho may be difficult to replace.

Risks Related to the Global Nature of our Operations and the Regulatory Environment

•Changes in trade policy and regulations in the United States and other countries,regulations, including changes in trade agreements andagreements, the imposition of tariffs or other trade restrictions, and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition.

•Losses or unauthorized access toto, or releases ofof, confidential information could adversely affect our business and result in significant reputational, financial and legal consequences.

•We cannot ensure that our share repurchase programs will be fully utilized or that it will enhance long-term shareholder value. Share repurchases may also increase the volatility of our share price. We similarly cannot ensure that we will continue to increase our dividend payments or to pay dividends at all. Share repurchases and dividends diminish our cash reserves.

If we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories,manner, our business and operating results could be adversely affected.

As we introduce new or enhanced products, integrate new technology into new or existing products, or reduce the overall number of products offered, we face risks including, among other things, disruption in customers’ Logitech International S.A. | Fiscal 2025 Form 10-K | 16 ordering patterns, excessive levels of new and existing product inventories, revenue deterioration in our existing product lines, insufficient supplies of new products to meet customers’ demand, possible product and technology defects, and a potentially different sales and support environment. Premature announcements or leaks of new products, features or technologies may exacerbate some of these risks by reducing the effectiveness of our product launches, reducing sales volumes of current products due to anticipated future products, making it more difficult to compete, shortening the period of differentiation based on our product innovation, straining relationships with our partners or increasing market expectations for the results of our new products before we have had an opportunity to demonstrate the market viability of the products. Our failure to manage the transition to new products and services or the integration of new technology into new or existing products and services could adversely affect our business, results of operations, operating cash flows and financial condition.

OurThe growth opportunities and those we may pursue are subject to constant and rapidly changing and evolving technologies and evolving industry standards and may be replaced by new technology concepts or platforms. Some of these growth categories and opportunities are also characterized by short product cycles, frequent new product and feature introductions and enhancements and rapidly changing and evolving consumer preferences with respect to design and features that require calculated risk-taking and fast responsiveness and result in short opportunities to establish a market presence. In addition, some of these growth categories and opportunities are characterized by price competition, erosion of premium-priced segments and average selling prices, commoditization, and sensitivity to general economic conditions and cyclical downturns. The growth opportunities and strength and number of competitors that we face in all of our product categories mean that weWe are at risk of new competitors coming to market with more innovative products that are more attractive to customers than ours or priced more competitively. If we do not develop innovative and reliable product offerings and enhancements in a cost-effective and timely manner that are attractive to consumers in these markets, if we are otherwise unsuccessful entering and competing in these growth categories or responding to our many competitors and to the rapidly changing conditions in these growth categories, if the growth categories in which we invest our limited resources do not emerge as the opportunities or do not produce the growth or profitability we expect, or when we expect it, or if we do not correctly anticipate changes and evolutions in technology and platforms, our business and results of operations could be adversely affected.

Our manufacturing operations in China have been in the past and could in the future be adversely affected by global pandemics, changes in the interpretation and enforcement of legal standards, strains on China’s available labor pool, changes in labor costs and other employment dynamics, high turnover among Chinese employees, infrastructure issues, import-export issues, cross-border intellectual property and technology restrictions, currency transfer restrictions, natural disasters, regional or global pandemics, conflicts or disagreements between China and Taiwan or China and the United States, labor unrest, and other trade customs and practices that are dissimilar to Logitech International S.A. | Fiscal 2025 Form 10-K | 17 those in the United States and Europe. Interpretation and enforcement of China’s laws and regulations continue to evolve, and we expect differences in interpretation and enforcement to continue in the foreseeable future.

Our manufacturing operations at third-party contractors could be adversely affected by contractual disagreements, bydisagreements; labor unrest, byunrest; natural disasters, bydisasters; regional or global pandemics, bypandemics; wars and armed conflicts, byconflicts; strains on local communications,communications; trade,trade; and other infrastructures, byinfrastructures; competition for the available labor pool or manufacturing capacity, bycapacity; increasing labor and other costs,costs; and by other trade customs and practices that are dissimilar to those in the United States and Europe.

By locating our manufacturing primarily in China and Southeast Asia, we are reliant on third parties to get our products to distributors around the world. Transportation costs, fuel costs, labor unrest, natural disasters, regional or global pandemics, military conflicts, and other adverse effects on our ability, timing and cost of delivering products can increase our inventory, decrease our margins, adversely affect our relationships with distributors and other customers and otherwise adversely affect our results of operations and financial condition. For example, the recent armed conflict in the Middle East has disrupted the supply to our distribution center in Dubai, which serves the EMEA region, and has impacted our distribution partners' ability to reach customers in the region.

We use artificial intelligence (“AI”) in our business, and challenges relating to the development and use of AI, including generative AI,AI could result in competitive harm, reputational harm, cybersecurity risks, and legal liability, and could adversely affect our results of operations.

We use AI solutions internally for business purposes and also in certain offerings, including making third-party AI tools available in our products, and we may in the future incorporate additional AI solutions, including generative AI,solutions into our offerings. We also may make third-party generative AI tools available in our applications. AI technologies are complex and evolving rapidly, and we face significant competition from other companies. If our competitors or others are able to use or leverage AI more rapidly or more successfully than us, our ability to compete effectively could be impaired, aswe amay resultfail ofto whichrecoup our investments in AI, and our business and financial results could be adversely affected.

AI solutions may use algorithms, datasets or training methodologies that are incomplete, reflect biases, or contain other flaws or deficiencies. AI solutions, including generative AI,solutions may create output that appears correct but is inaccurate, biased or otherwise flawed, or that infringes or otherwise violates intellectual property or other rights. TheOur use of AI may result in cybersecurity incidents that implicate the personal data of usersintegration of AI solutions asinternally wellfor asbusiness disclosurepurposes and into our offerings also introduces unique cybersecurity risks, including gaining unauthorized access to our products, adversarial attacks intended to deceive or 'poison' AI models, and model extraction attempts to steal our proprietary algorithms. We also face risks of ouremployees financialusing unauthorized AI tools that have not been vetted and approved by us and inadvertently disclosing confidential information to such third-party AI platforms. As AI-driven threats become more automated and sophisticated, they may bypass traditional security controls at a speed and scale that exceeds our ability to respond, potentially leading to significant operational disruption or otherthe confidentialloss information.of sensitive intellectual property. We may not be able to control the development, maintenance or behavior of third-party AI solutions, including the autonomous actions of AI agents or the security of third-party foundational models, and these AI solutions may be used inappropriately or introduce novel vulnerabilities into our software via AI-generated code. We, and third-party providers of any AI solutions we may make available in our applications, may lack sufficient rights with respect to data or other material or content used in or produced by AI solutions. We may not be able to control the development, maintenance or behavior of third-party AI solutions or how their providers obtain or otherwise process training or other data, and these AI solutions may be used inappropriately or irresponsibly. There is no guarantee that any contractual or other protections we seek to implement will be sufficient to protect us from risks presented by these solutions.

The rapid evolution of AI and itsthe regulatory and policy landscapes concerning AI also present numerous risks. Several jurisdictions around the world have introduced or enacted legislation relating to AI, and regulators have issued policy Logitech International S.A. | Fiscal 2025 Form 10-K | 18 statements relating to the use and development of AI. New laws and regulations, or existing laws and regulations, may be interpreted in ways that conflict with or otherwise impact our approach to AI and use of AI solutions.

We rely on third parties to sell and distribute our products, and we rely on their information to manage our business. Disruption ofof, or changes to, our relationship with these channel partners, changes in or issues with their business practices, their failure to provide timely and accurate information, changes in distribution partners, practices or models, conflicts among our channels of distribution, or failure to build and scale our own sales force for certain product categories and enterprise channel partners could adversely affect our business, results of operations, operating cash flows and financial condition.

We primarily sell our products to a variety of distributors, retailers, e-tailers and enterprise customers (together with our direct sales channel partners). We are dependent on thoseour direct sales channel partnersdistributors to distribute and sell our products to indirect sales channel partners andwho will ultimately resell to businesses, vertical customers and consumers. The sales and business practices of all such sales channel partners, their compliance with laws and regulations, and their reputations - of which we may or may not be aware - may affect our business and our reputation.

The impact of economic conditions, labor issues, natural disasters, regional or global pandemics, evolving consumer preferences, and purchasing patterns on our distribution partners, or competition between our sales channels, could result in sales channel disruption. Any loss of a major partner or distribution channel or other channel disruption could make us more dependent on alternate channels, increase pricing and promotional Logitech International S.A. | Fiscal 2025 Form 10-K | 19 pressures from other partners and distribution channels, increase our marketing costs, or adversely impact buying and inventory patterns, payment terms or other contractual terms, sell-through or delivery of our products to consumers, our reputation and brand equity, or our market share.

Our sales channel partners also sell products offered by our competitors and, in the case of retailer house brands, may also be our competitors. If product competitors offer our sales channel partners more favorable terms, have more products available to meet their needs, or utilize the leverage of broader product lines sold through the channel, or if our sales channel partners show preference for their own house brands, our sales channel partners may de-emphasize or decline to carry our products. In addition, certain of our sales channel partners could decide to de-emphasize the product categories that we offer in exchange for other product categories that they believe provide them with higher returns. If we are unable to maintain successful relationships with these sales channel partners or to maintain our distribution channels, our business willcould suffer.

We have developed long-term value in our brands and have invested significantly in design and in our existing and new brands over the past several years. We believe that our design and brands have significantly contributed to the success of our business and that maintaining and enhancing our brands is very important to our future growth and success. Maintaining and enhancing our brands will require significant investments and will depend largely on our future design, products and marketing, which may not be successful and may damage our brands. Our brands and reputation are also dependent on third parties, such as suppliers, manufacturers, distributors, retailers, product reviewers and the media as well as online consumer product reviews, consumer recommendations and referrals. It can take significant time, resources and expense to overcome negative publicity, reviews or perception. Any negative effect on our brands, regardless of whether it is in our control, could adversely affect our reputation, business and results of operations.

The industry in which we operate is intensely competitive. Our product categories are dynamic,dynamic; highly competitive and characterized by large, well-financed competitors with strong brand names and highly effective research and development, marketing and sales capabilities,capabilities; short product life cycles,cycles; constantly evolving industry standards and perpetual new demands for features and performance,performance; continual performance enhancements,enhancements; and Logitech International S.A. | Fiscal 2025 Form 10-K | 20 rapid adoption of technological and product advancements by competitors in our retail markets. We have experienced aggressive price competition and other promotional activities from our primary competitors and less-established brands, including brands owned by some retail customers known as house brands. As we shift the focus of our marketing efforts in certain categories from a push model to a demand-generatingmore pulldemand-generating, model,pull-driven Logitech International S.A. | Fiscal 2026 Form 10-K | 19 approach, the pressures from this competition and from our distribution channels, combined with the implementation risks of such a strategy shift, could adversely affect our competitive position, market share and business. In addition, our competitors may offer customers terms and conditions that may be more favorable than our terms and conditions and may require us to take actions to maintain or increase our customer incentive programs, which could impact our revenues and operating margins.

Microsoft, Apple, Google and Amazon are leading producers of operating systems, hardware, platforms and applications with which our mice, keyboards, wireless speakers and other products are designed to operate. As a result, Microsoft, Apple, Google and Amazon each may be able to improve the functionality of its own products, if any, or may choose to show preference to our competitors' products, to correspond with ongoing enhancements to its operating systems, hardware and software applications before we are able to make such improvements. This ability could provide Microsoft, Apple, Google, Amazon or other competitors with significant lead-time advantages. In addition, Microsoft, Apple, Google, Amazon or other competitors may be able to control distribution channels or offer pricing advantages on bundled hardware and software products that we may not be able to offer, and may be financially positioned to exert significant downward pressure on product prices and upward pressure on promotional incentives to gain market share. If we are not able to increase our software and services capability to enhance hardware product experiences and offer attractive product pricing, our results of operations and financial condition may be adversely affected. For additional information, see "Competition” in Item 1 of this Annual Report on Form 10-K.

We use our forecasts of product demand to make decisions regarding investments of our resources and production levels of our products. Although we receive forecasts from our customers, many are not obligated to purchase the forecasted demand. Also, actual sales volumes for individual products in our retail distribution channel can be volatile due to changes in macroeconomic and geopolitical conditions, consumer and business spending, consumer preferences and other reasons. In addition, our products have short product life cycles, so a failure to accurately predict high demand for a product can result in lost sales that we may not recover in subsequent periods, or higher product costs if we meet demand by paying higher costs for materials, production and delivery. Our failure to predict low demand for a product can result in excess inventory, lower cash flows and lower margins if we are required to reduce product prices to reduce inventories.

In addition, the market demand remains less predictable and more volatile than before thedue COVID-19to pandemic.uncertainty Asabout atariffs, result,war, weand volatile energy prices. We have experienced in the past and may continue experiencing large differences between our forecasts and actual demand for our products that may result in excess inventory or product unavailability, inventory and restructuring reserves, increases in operational logistics and other costs, damaged relationships with suppliers or customers, opportunities for our competitors, and lost market share and revenue. If we do not accurately predict product demand, our business and operating results could be adversely affected.

Our business depends in part on access to third-party platforms or technologies, and if access thereto is withdrawn, denied, or is not available on terms acceptable to us, or if the platforms or technologies change without notice to us, our business and operating results could be adversely affected.

Our product portfolio includes current and future products designed for use with third-party platforms or software, such as the Apple iPad, iPhone and Siri, Android phones and tablets, GoogleZoom, Assistant, Zoom,and Microsoft Teams and Amazon Alexa.Teams. Our business in these categories relies on our access to the platforms of third parties, some of whom are our competitors. Platform owners that are competitors have a competitive advantage in designing products for their platforms and may produce peripherals or other products that work better, or are perceived to work better, than our products in connection with those platforms. If we expand the number of platforms and software applications with which our products are compatible, we may not be successful in launching Logitech International S.A. | Fiscal 2025 Form 10-K | 21 products for those platforms or software applications, we may not be successful in establishing strong relationships with the new platform or software owners, or we may negatively impact our ability to develop and produce high-quality products on a timely basis for Logitech International S.A. | Fiscal 2026 Form 10-K | 20 those platforms and software applications or we may otherwise adversely affect our relationships with existing platform or software owners.

Our success largely depends on our ability to manage, hire, retain, integrate and motivate sufficient numbers of qualified personnel, including senior leadership. Our strategyleadership, and our ability to innovate, design and produce new products, market and sell products, maintain operating margins and control expenses depend onretain key personnel thatwho may be difficult to replace.

As we attempt to grow our business in strategic product categories and emerging market geographies, we evaluate acquisition opportunities that could provide us with additional product or service offerings or with additional industry expertise, assets and capabilities. Acquisitions could result in difficulties in integrating acquired operations, products, technology, internal controls, personnel and management teams and result in the diversion of capital and management’s attention away from other business issues and opportunities. If we fail to successfully integrate acquisitions, our business could be harmed. Acquisitions could also result in the assumption of known and unknown liabilities, product, regulatory and other compliance issues, dilutive issuances of our equity securities, the incurrence of debt, disputes over earn-outs or other litigation, and adverse effects on relationships with our and our target’s Logitech International S.A. | Fiscal 2025 Form 10-K | 22 employees, customers and suppliers. Moreover, our acquisitions may not be successful in achieving our desired strategy, product, financial or other objectives or expectations, which would also cause our business to suffer.

Risks Related to the Global Nature of our Operations and the Regulatory Environment

Such conditions, including but not limited to inflation, slower growth or recession, newchanges or increasedin tariffs, trade restrictions, changes to fiscal and monetary policy, higher interest ratesrates, government shutdowns, and currency fluctuations, andas well as other conditions that are susceptible to impactimpacting consumer confidence and spending could adversely affect demand for our products. In fiscal year 2025,2026, we were impacted by adverse macroeconomic and geopolitical conditions including Logitech International S.A. | Fiscal 2025 Form 10-K | 23 but not limited to inflation, foreign currency fluctuations, anduncertainty slowdownabout tariffs, availability of economicmemory activitychips, around the world, in part due to changes in interest rates,war, and lowervolatile consumerenergy and enterprise spending.prices.

Global or regional economic and political conditions may also have an impact on our suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materialsmaterials, transportation costs, transit times and shippingcomponent and transportation rates,availability, and as a resultresult, impacting the pricing of our products.products, Priceproduct increasesavailability mayand notour successfullyresults offsetof operations. The recent armed conflict in the Middle East has impacted the availability and price of crude oil, increasing transportation costs. A prolonged conflict also could affect the availability and cost increasesof or may cause us to lose market shareplastics and other byproducts of petroleum used in turn adversely impact our operations.products.

•Compliance with current and future laws and regulations, including AI, environmental, tax, import/export and anti-corruption laws, which vary from country toby country, and the European Union legislation,region, and over time, increasing the costs of compliance and potential risks of non-compliance, uncertain and varying enforcement of those laws and regulations, dependence on local authorities, and the importance of local networks and relationships;

•Exposure to political, economic and financial instability, including due to the uncertainty associated with the ongoing sovereign debt issues in certain Euro zone countries, which may lead to reduced sales, higher credit risks, currency exchange losses, exposure to fluctuations in the value of local currencies, impositions of currency exchange controls and collection difficulties or other losses;

•Weak protection of our intellectual property rights; and

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. We sell the vast majority of our products under the Logitech and Logitech G brand names.

We sell our products to a broad range of international customers, in the Americas,Americas; Europe, the Middle East and Africa (“EMEA”); and Asia Pacific. This includes direct sales to retailers, e-tailers, businesses large and small and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.

Impacts of MacroeconomicMacroeconomic, Geopolitical, and GeopoliticalOther ConditionsFactors on our Business

InAs 2025,we theconduct Unitedoperations States introduced trade policy actions that have increased import tariffs across a wide range of countries at various rates, with certain exemptions. The tariff policies in the U.S. and responsive policies enacted in other countries are evolving and may have a material adverse impact on our business. In addition,globally, our business has continued to be impacted by ongoing macroeconomic and geopolitical conditions. These conditions include changes in inflation, interest rate and foreign currency fluctuations, uncertainty in consumer and enterprise demand, lowtariff economicand growthtrade policies, memory chip availability, volatile energy prices and increased geopolitical tensions, including the armed conflicts in certainthe regions,Middle changes in fiscal policies and geopolitical conflicts.East.

The global and regional economicmacroeconomic, political and politicalother conditions, as well as changes in trade policies,conditions have caused and may continue to cause volatility in demand for our products, component availability, transit times and cost of our products as well asincluding cost of tariffs, materialsmaterials, and logistics, and transportation delays, and as a resultresult, have impacted and may continue to impact the pricing of our products, product availability and our results of operations.

•NewFlexible ways of workingwork: TheAs newflexible wayswork ofmodels continue to evolve, with employees working thatfrom haveoffices, emergedhomes afterand various remote locations, Logitech is well-positioned to meet the pandemicdemand infor whichversatile peopleand areadaptive splittingworkplace timetechnology. betweenThese working in the office, from home, and from other places while on the go,arrangements provide opportunities for Logitech to equip multiple workspaces with products across our portfolio including Pointing Devices, Keyboards & Combos, Tablet Accessories, Headsets and Webcams. TheAdditionally, newthe waysrise ofin workingdistributed alsoteams provideand anremote opportunitycollaboration foris driving increased adoption of video conferencing bysolutions enterprisesamong businesses and consumers. Our portfolio of video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet.

•Gaming growth: The ongoing growth and evolution of gaming creates an opportunity for us to provide more tools to a wider community of gamers. InGaming particular,is enjoyed by men and women of all ages; competitively as a sport or for fun; for active participation and passive consumption; for personal development or social interaction. As a mainstream activity, gaming continues to gain popularity through online gaming, multi-platform experiences and esports.

While we believe we will further benefit from these secular trends, we have experienced and will continue to experience challenges that impact our business and financial results. These challenges include (i) uncertainty in tariffs on goods imported into the U.S. and responsive policies enacted by other countries, (ii) uncertainty in supply and pricing of memory chips and other components, (iii) the macroeconomic environment, including inflation, interest rate and foreign currency fluctuations, changesvolatile inenergy fiscal policiesprices, and lowincreased economicgeopolitical growthtensions, in certain regions,and (iiiiv) the uncertainty of overall consumer and enterprise demand, (iv) the uncertainty of timing of enterprise investments in infrastructure and technology, and (v) the timing of further development of our B2B go-to-market capabilities.demand.

We expect these challenges to continue in the near-term. We have taken steps to mitigate the impact of these challenges, including but not limited to: (i) continued diversification of our manufacturing footprint and supplier ecosystem, (ii) increasing pricing for certain products, (iii) maintaining discipline in our operating expenses, (iiiiv) managing inventory levels to align with demand,demand (iv)and continuedcomponent investment in our B2B capabilities,availability, and (v) continued release of new products to increase the value proposition of our portfolio.

We haveexperience historicallyseasonal experiencedtrends higherrelated salesto inour product sales. Sales are generally highest during our third fiscal quarter ending December 31, compared(October to other fiscal quarters in our fiscal year,December) primarily due to increased consumer demand during the holiday season and increased spending by enterprisesbusinesses in the months nearing the calendar year-end. Additionally, new product introductions and business acquisitions can significantly impact sales, product costs and operating expenses. Sales can also be affected when consumers and distributors anticipate a product introduction or changes in business circumstances. However, neither historical seasonal patterns nor historical patterns of product introductions should be considered reliable indicators of our future pattern of product introductions, future sales or financial performance. Furthermore, cashCash flow is usually correspondingly lower in the first half of our fiscal yearyear, as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September.

Our total sales for fiscal year 20252026 increased 6%, compared to fiscal year 2024,2025, primarily driven by an increase in sales of Gaming, Pointing Devices, Video Collaboration, and Keyboards & Combos, Pointing Devices, and Tablet Accessories, due to improved demand.demand as well as favorable changes in foreign currency exchange rates.

Sales for fiscal year 20252026 increased 9%, 6%15% and 4%9% in the EMEA, Asia Pacific and AmericasEMEA regions, respectively, and decreased 1% in the Americas regions, compared to fiscal year 2024.2025.

Gross margin for fiscal year 20252026 increased by 17010 basis points to 43.1%,43.2%, compared to 41.4%43.1% for fiscal year 2024,2025, primarily driven by lowerprice increases in North America, product costs,cost partiallyreductions, and favorable foreign currency exchange rate changes, substantially offset by higherinvestment promotionalin spending.strategic promotions and increased tariffs.

Net income for fiscal year 20252026 was $631.5$711.2 million, compared to $612.1$631.5 million for fiscal year 2024,2025, reflecting higher gross margin,profit driven by higher demand, partially offset by an increase in operating expenses andhigher income tax provision.

Our sales in fiscal year 20252026 increased 6%, compared to fiscal year 2024,2025, primarily driven by an increase in sales of Gaming, Pointing Devices, Video Collaboration, and Keyboards & Combos, Pointing Devices, and Tablet Accessories, due to improved demand. Our sales for the fiscal year ended 2026, compared to the fiscal year ended 2025, benefited from improved demand in the Asia Pacific and EMEA regions as well as favorable foreign currency exchange rate changes. If currency exchange rates had been constant in fiscal years 20252026 and 2024,2025, our sales growth rate in constant currency would have been 7%.4%.

The increase in sales in the Asia PacificEMEA region for fiscal year 2025,2026, compared to fiscal year 2024,2025, was primarily driven by an increase in sales of GamingVideo Collaboration, Gaming, Keyboards & Combos, and TabletPointing Accessories.Devices.

Our Gaming category includes PC gaming (mice, headsets, keyboards), steering wheels, headsets, keyboards, console gaming headsets, microphones and Streamlabs services.

During fiscal year 2025,2026, Gaming sales increased 9%,6%, compared to fiscal year 2024,2025, primarily driven by increases in sales of PC gaming mice and steering wheels, partially offset by a decrease in sales of other gaming steeringproducts. wheels.Sales growth in Asia Pacific and EMEA, were partially offset by a decline in sales in the Americas region.

During fiscal year 2025,2026, Keyboards & Combos sales increased 7%,6%, compared to fiscal year 2024,2025, primarily driven by an increase in sales of our cordless combos.combo products.

Our Pointing Devices category includes PC- and Mac-related mice including trackballstrackballs, and presentation tools.

During fiscal year 2025,2026, Video Collaboration sales increased 3%,10%, compared to fiscal year 2024,2025, primarily due to an increase in sales of conference room cameras as well as an increase in services revenue.cameras.

Our Webcams category includes PC-based webcams includingand streaming cameras,cameras. and VCOur webcams that turn any desktop into an instant collaboration space.

During fiscal year 2025,2026, Webcams sales decreasedincreased 3%, compared to fiscal year 2024,2025, primarily driven by a decrease in sales of our VC webcams, partially offset by an increase in sales ofin our PC-basedAmericas webcams.and EMEA regions, partially offset by declining sales in the Asia Pacific region.

Our Headsets category includes PC and VC headsets, in-ear headphones, and premium wireless earbuds.

During fiscal year 2025,2026, Headsets sales increasedremained 7%,flat compared to 2024, primarily driven by an increase in sales of cordless PC headsets and VC headsets.2025.

During fiscal year 2025,2026, Other sales decreased 15%20% compared to 2024,2025, primarily driven by a declinedecrease in sales of mobile speakers.

Gross margin increased by 17010 basis points to 43.2% during fiscal year 2026, compared to 43.1% during fiscal year 2025, compared to 41.4% during fiscal year 2024.2025. The increase in gross margin was primarily driven by lowerprice increases in North America, product costs,cost partiallyreductions, and favorable foreign currency exchange rate changes, substantially offset by higherinvestment promotionalin spending.strategic promotions and increased tariffs.

The increase in total operating expenses during fiscal year 2025,2026, compared to fiscal year 2024,2025, was primarily due to increasesan increase in marketingresearch and sellingdevelopment expenses.expense.

The Company’s business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025,2026, under the heading “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. In the thirdfirst quarter of fiscal year 2026,2027, there have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, except as indicated below.2026.

•Changes in trade regulations, policies and agreements and the imposition of tariffs or other trade restrictions that affect our products or operations, including potential new tariffs that may be imposed on U.S. imports, and our ability to mitigate;

•Our expectations regarding our effective tax rate, future tax benefits, tax settlements, and the adequacy of our provisions for uncertain tax positions;

Forward-looking statements also include, among others, those statements that includeincluding the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should,” “will,” and similar language. These statements reflect our views and assumptions as of the date of this Quarterly Report on Form 10-Q. All forward-looking statements involve risks and uncertainties that could cause our actual performance to differ materially from those anticipated in the forward-looking statements depending on a variety of factors. Important information as to these factors can be found in this Quarterly Report on Form 10-Q under the headings of “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Company Overview,” “Critical Accounting Estimates,” and “Liquidity and Capital Resources,” among others. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under Part II, Item 1A “Risk Factors” as well as elsewhere in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended March 31, 2025,2026, and in our other filings with the U.S. Securities and Exchange Commission, or “SEC.” You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to updatepublicly release any revisions to the forward-looking statements made in this document toor reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.document.

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. We sell the vast majority of our products under the Logitech and Logitech G brand names.

The global and regional macroeconomicmacroeconomic, political and politicalother conditions, as well as changes in trade policies and memory supply,conditions have caused and may continue to cause volatility in demand for our products, component availability, transit times and cost of our products including cost of tariffs, materials, and logistics, and as a result, have impacted and may continue to impact the pricing of our products, product availability and our results of operations.

•NewFlexible ways of workingwork: TheAs newflexible wayswork ofmodels continue to evolve, with employees working thatfrom haveoffices, emergedhomes afterand various remote locations, Logitech is well-positioned to meet the pandemicdemand infor whichversatile peopleand areadaptive splittingworkplace timetechnology. betweenThese working in the office, from home, and from other places while on the go,arrangements provide opportunities for Logitech to equip multiple workspaces with products across our portfolio including Pointing Devices, Keyboards & Combos, Tablet Accessories, Headsets and Webcams. TheAdditionally, newthe waysrise ofin workingdistributed alsoteams provideand anremote opportunitycollaboration foris driving increased adoption of video conferencing bysolutions enterprisesamong businesses and consumers. Our portfolio of video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet.

•Gaming growth: The ongoing growth and evolution of gaming creates an opportunity for us to provide more tools to a wider community of gamers. InGaming particular,is enjoyed by men and women of all ages; competitively as a sport or for fun; for active participation and passive consumption; for personal development or social interaction. As a mainstream activity, gaming continues to gain popularity through online gaming, multi-platform experiences and esports.

While we believe we will further benefit from these secular trends, we have experienced and will continue to experience challenges that impact our business and financial results. These challenges include (i) uncertainty in tariffs on goods imported into the U.S. and responsive policies enacted by other countries, (ii) uncertainty in supply and pricing of memoryelectronic chipscomponents andincluding othersemiconductor components,chips, (iii) the macroeconomic environment, including inflation, interest rate and foreign currency fluctuations, lowvolatile economicenergy growth in certain regions, changes in fiscal policiesprices, and geopolitical conflicts,tensions, and (iv) the uncertainty of overall consumer and enterprise demand, (v) the uncertainty of timing of enterprise investments in infrastructure and technology, and (vi) the timing of further development of our B2B go-to-market capabilities.demand.

We expect these challenges to continue in the near-term. We have taken steps to mitigate the impact of these challenges, including but not limited to: (i) continued diversification of our manufacturing footprint and supplier ecosystem, (ii) increasing pricing for certain products, (iii) maintaining discipline in our operating expenses, (iiiiv) managing inventory levels to align with demand,demand (iv)and continuedcomponent investment in our B2B capabilities,availability, and (v) continued release of new products to increase the value proposition of our portfolio.

We experience seasonal trends related to our product sales. Sales are generally highest during our third fiscal quarter (October to December) primarily due to increased consumer demand during the holiday season and increased spending by enterprisesbusinesses in the months nearing the calendar year-end. Cash flow is usually correspondingly lower in the first half of our fiscal year as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September.

Our sales were $1,421.5 million and $3,755.2$1,227.2 million for the three and nine months ended DecemberJune 31,30, 2025, respectively,2026, an increase of 6%7% compared to $1,340.3 million and $3,544.5$1,147.7 million for the three and nine months ended DecemberJune 31,30, 2024, respectively,2025, primarily due to an increase in sales forof Gaming, Pointing Devices, Keyboards & Combos,and Video Collaboration, Gaming, and Tablet Accessories. Our sales for the three and nine months ended December 31, 2025, compared to the same periods ended December 31, 2024, benefited from improved demand in the Asia Pacific and EMEA regionsCollaboration as well as favorable changes in foreign currency exchange rate changes.rates.

Sales for the three months ended DecemberJune 31,30, 20252026 increased 14%, 7%,12% and 8% in the Americas and Asia Pacific regions, respectively, and decreased 1% in the AsiaEMEA Pacific, EMEA, and Americas regions, respectively,region, compared to the three months ended DecemberJune 31,30, 2024. Sales for the nine months ended December 31, 2025 increased 17% and 9% in the Asia Pacific and EMEA regions, respectively, and decreased 3% in the Americas region, compared to the nine months ended December 31, 2024.2025.

Operating expenses for the three months ended DecemberJune 31,30, 20252026 were $328.6$349.4 million, or 23.1%28.5% of sales, compared to $339.9$316.9 million, or 25.4%27.6% of sales, for the three months ended DecemberJune 31,30, 2024.2025, Operatingprimarily driven by increases in marketing and selling expenses forand theresearch nineand monthsdevelopment ended December 31, 2025 were $968.7 million, or 25.8% of sales, compared to $977.8 million, or 27.6% of sales, for the nine months ended December 31, 2024.expenses.

We had an income tax provision of $48.1$39.9 million and $45.1$28.5 million for the three months ended DecemberJune 31,30, 20252026 and 2024,June 30, 2025, respectively. We had an income tax provision of $108.9 million and $101.2 million for the nine months ended December 31, 2025 and 2024, respectively.

We believe that the assumptions, judgments and estimates involved in the accounting for accruals for customer incentives and related breakage, accrued sales return liability, inventory valuation, and uncertain tax positions have the greatest potential impact on our condensed consolidated financial statements. These areas are key components of our results of operations and are based on complex rules requiring us to make judgments and estimates, and consequently, we consider these to be our critical accounting policies.estimates.

There have been no material changes in our critical accounting estimates during the ninethree months ended DecemberJune 31,30, 20252026 compared with the critical accounting estimates disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.2026.

Refer to Note 1 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for new accounting pronouncements adopted and to be adopted.

Our sales for the three and nine months ended DecemberJune 31,30, 20252026 increased 6%,7%, compared to the three and nine months ended DecemberJune 31,30, 2024,2025, primarily due to an increase in sales for Gaming, Pointing Devices, Keyboards & Combos,and Video Collaboration, Gaming, and Tablet Accessories. Our sales for the three and nine months ended December 31, 2025, compared to the same periods ended December 31, 2024, benefited from improved demand in the Asia Pacific and EMEA regionsCollaboration as well as favorable changes in foreign currency exchange rate changes.rates. If currency exchange rates had been constant in each of the three and nine months ended DecemberJune 31,30, 20252026 and 2024,2025, our sales growth ratesrate in constant currency would have been 4% for both periods.5%.

Although our financial results are reported in U.S. Dollars, a portion of our sales was generated in currencies other than the U.S. Dollar, such as the Euro, Chinese Renminbi, Japanese Yen, Australian Dollar, Canadian Dollar, Pound Sterling and BrazilianNew Real.Taiwan Dollar. During the three months ended DecemberJune 31,30, 2025,2026, approximately 54%52% of our sales were denominated in currencies other than the U.S. Dollar.

The following table presents the change in sales by region for the three and nine months ended DecemberJune 31,30, 2025,2026, compared with the three and nine months ended DecemberJune 31,30, 20242025:

The increasedecrease in sales in the EMEA region for the three-three-month and nine-month periodsperiod presented above was primarily driven by ana increasedecrease in sales for Keyboards & Combos, Webcams, and Headsets, partially offset by an increase in sales for Video Collaboration and PointingTablet Devices.Accessories. Sales in the EMEA region were negatively impacted by the conflict in the Middle East and an overall market decline.

The increase in sales in the Asia Pacific region for the three-three-month and nine-month periodsperiod presented above was primarily driven by an increase in sales for Gaming and Pointing Devices, partially offset by a decrease in sales for Tablet Accessories.

Sales by product category for the three and nine months ended DecemberJune 31,30, 20252026 and 20242025 were as follows (Dollars in thousands):

Our Gaming category includes PC gaming (mice, headsets, keyboards), steering wheels, headsets, keyboards, console gaming headsets, microphones and Streamlabs services.

Sales of Gaming increased 3%12% for the three months ended DecemberJune 31,30, 2025,2026, compared to the three months ended DecemberJune 31,30, 2024,2025, primarily driven by an increase in sales of PC gaming micemice, andparticularly steeringPRO wheels,X2 partiallySUPERSTRIKE offset by decreaseslaunched in otherthe gamingfourth products. Salesquarter of Gamingfiscal increasedyear 4%2026, foras thewell nine months ended December 31, 2025, compared to the nine months ended December 31, 2024, primarily driven byas an increase in sales of gamingsteering mice, partially offset by decreases in PC gaming headsets and console gaming headsets.wheels.

Sales of Keyboards & Combos increased 8%2% for each of the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024,2025, primarily driven by an increase in sales of cordlesswireless combokeyboards, productspartially andoffset cordlessby a decrease in sales of wired keyboards. The increase in sales for the three-month period was primarily driven by an increase in the Americas region, partially offset by a decrease in sales in the EMEA region.

Our Pointing Devices category includes PC- and Mac-related mice including trackballstrackballs, and presentation tools.

Sales of Pointing Devices increased 11% and 9%16% for the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024, respectively,2025, primarily driven by an increase in sales of cordlesswireless mice.mice, particularly MX Master 4 launched in the third quarter of fiscal year 2026. A continued mix shift to premium products in our portfolio contributed to sales growth in this category.

Sales of Video Collaboration increased 10% and 9%11% for the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024, respectively,2025, primarily due to an increase in sales of conference room cameras.

Our Webcams category includes PC-based webcams includingand streaming camerascameras. and VCOur webcams that turn any desktop into an instant collaboration space.

Sales of Tablet Accessories increaseddecreased 21% and 12%2% for the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024, respectively,2025, primarily benefitingdue fromto stronga demanddecrease fromin sales in the Asia Pacific region, partially offset by an increase in sales in the EMEA region. The decline in Asia Pacific was primarily due to a large education sector.deal in the prior year.

Our Headsets category includes PC and VC headsets, in-ear headphones, and premium wireless earbuds.

Sales of Headsets remaineddecreased relatively flat3% for the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024.2025, primarily due to a decrease in sales in the EMEA region, partially offset by an increase in sales in the Americas region.

Sales in Other category decreased 22% and 23%12% for the three and nine months ended DecemberJune 31,30, 2025, respectively,2026, compared to the three and nine months ended DecemberJune 31,30, 2024,2025, primarily driven by a declinedecrease in sales of mobile speakers.

Gross profit for the three and nine months ended DecemberJune 31,30, 20252026 and 20242025 was as follows (Dollars in thousands):

Operating expenses for the three and nine months ended DecemberJune 31,30, 20252026 and 20242025 were as follows (Dollars in thousands):

The decreaseincrease in total operating expenses during the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the three and nine months ended DecemberJune 31,30, 2024,2025, was primarily driven by a decreaseincreases in marketing and selling expenses and research and development expenses.

Marketing and selling expenses consist of personnel and related overhead costs, corporate and product marketing, promotions, advertising, trade shows, technical support for customer experiences and facilities costs.

During the three and nine months ended DecemberJune 31,30, 2025,2026, research and development expenses remainedincreased relatively$10.0 flat, as we continued to invest in innovation at a similar level asmillion, compared to the three and nine months ended DecemberJune 31,30, 2024,2025, respectively.primarily driven by increased investment in product innovation.