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

WeOur havepatent portfolio includes more than 6,5007,000 issued and pending patents relating to our OLED technologies. There is no assurance that these patents and applications will not be challenged prior to their respective expirations in any of the jurisdictions in which they are utilized, or that if challenged, we will be able to secure sufficient breadth of protection, and monetary and injunctive relief for the violation of our rights to make up for the business harm resulting from such activities. Moreover, there can be no assurance that competitors will not develop or produce competing PHOLED material designs that may be outside of our existing patents. There may also be fundamental new advancements in the field of OLED technology that could enable the commercial use of older and unpatented PHOLED materials or the adoption of new OLED materials that do not require the utilization of our proprietary PHOLED materials to achieve superior performance characteristics.

Our research and development efforts remain subject to all of the risks associated with the development of new products based on emerging and innovative technologies, including, without limitation, unanticipated technical or other problems and the possible insufficiency of funds for completing development of these products. Technical problems may result in delays and cause us to incur additional expenses that would increase our losses.expenses. If we cannot complete research and development of our OLED technologies and materials successfully, or if we experience delays in completing research and development of our OLED technologies and materials for use in potential commercial applications, particularly after incurring significant expenditures, our business may fail.

The display market remains dominated by displays based on LCD technology. Numerous companies are making substantial investments in, and conducting research to improve characteristics of, LCDs; additionally, otherin competing display technologiestechnologies, havesuch been,as orLCD are being, developed, likeand microLED. A similar situation exists in the solid-state lighting market, which is currently dominated by LED products. Advances in any of these various technologies may overcome their current limitations and permit them to become the leading technologies in their field, either of which could limit the potential market for products utilizing our OLED technologies and materials. This, in turn, would cause product manufacturers to avoid entering into commercial relationships with us, or to terminate or not renew their existing relationships with us.

Heightened levels of inflation on critical raw material and labor costs and the potential worsening of macro-economic conditions, including slower growth or recession, changes to fiscal and monetary policy, tighter credit, higher interest rates and currency fluctuations, present a risk for us, our suppliers and the display and lighting industries in general. If inflation on critical raw materials and labor remains at current levels for an extended period, or increases, and we are unable to successfully mitigate the impact, our costs are likely to increase, resulting in pressure on our profits, margins and cash flows, particularly for existing fixed-price contracts. In addition, our business could be adversely impacted if our customers experience budget, inflationary or other pressures, such as increases in the cost of borrowing from rising interest rates.

We are a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display applications, such as mobile phones, televisions, monitors, wearables, tablets, portable media devices, notebook computers, personal computerscomputers, automotive applications and automotive applications, as well as specialty and general lighting products. Since 1994, we have been engaged and expect to continue to be primarily engaged, in funding and performing research and development activities relating to OLED technologies and materials, and commercializing these technologies and materials. We derive our revenue primarily from the following:

On December 2, 2022, we entered into a commercial patent license agreement with Samsung Display Co., Ltd. (SDC), replacing a previous license agreement that had been in place since 2018. This agreement, which covers the manufacture and sale of specified OLED display materials, was effective as of January 1, 2023 and lasts through the end of 2027 with an additional two-year extension option for SDC. Under this agreement, we are being paid a license fee, which includes quarterly and annual payments over the agreement term. The agreement conveys to SDC the non-exclusive right to use certain of our intellectual property assets for a limited period of time that is less than the estimated life of the assets At the same time that we entered into the current commercial license agreement with SDC, we also entered into a material purchase agreement with SDC, which lasts for the same term as the license agreement and is subject to the same extension option. This new material purchase agreement replaced a previous purchase agreement that had been in place since 2018. Under the material purchase agreement, SDC agrees to purchase from us a minimum amount of red and green phosphorescent emitter materials for use in the manufacture of licensed products. This minimum commitment is subject to SDC’s requirements for phosphorescent emitter materials and our ability to meet these requirements over the term of the supplemental agreement.

In 2015, we entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display). TheIn 2021, we and LG Display entered into new agreements that extended the terms of these agreements haveat been extendedleast through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under ourtheir patent portfolio. The patent license calls for minimum annual license fees, prepaid royaltiesfees and runningadditional royaltiesincremental license fees based on LG Display’s volume of sale of licensed products. The OLED commercial supply agreement provides for the salessale of dopant and host materials for use by LG Display, which may include phosphorescent emitters and host materials. The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the life of the agreements as well as minimum royalty revenue.Display.

In 2016,2025, we entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma Micro-electronics Co., Ltd. (Tianma). Under the license agreement,agreements, we have granted Tianma non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on Tianma’s sales of licensed products. Additionally, we supply phosphorescent OLED materials to Tianma for use in its licensed products. In 2021, we mutually agreed to extend the terms of both the patent license and material purchase agreements for an additional multi-year term.

In June 2020, we formed a wholly-owned subsidiary, OVJP Corporation (OVJP Corp), operating in California, asin a Delaware corporation, which was foundedorder to advance the commercialization of our proprietary Organic Vapor Jet Printing (OVJP) technology.technology, which we now refer to as Universal Vapor Jet Printing (UVJP). In December 2024, we announced that the OVJP Corp facility in California would be closing and OVJPUVJP operations would be relocated to our newly formed Singapore subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC) in Singapore,, as well as continued operations in our Tech and Innovation Center in New Jersey. While we continue to focus on the long-term opportunity in the large-area display market for OVJP,UVJP, the industry’s current focus is on the growing demand for IT capacity. Our UVJC subsidiary planscontinues to assess additional market opportunities where this technology may be transformative. As a result of the planned closure of the OVJP Corp location in California, we determinedrecorded to$2.2 recordmillion and $8.9 million of restructuring costs for the yearyears ended December 31, 2024.2025 and 2024, respectively.

In February 2021, we announced the establishment of a new manufacturing site in Shannon, Ireland and an agreement between UDC Ireland Limited and PPG for the production of our OLED materials. WeThe Shannon manufacturing facility became operational in June 2022 and we purchased the site during September 2023. WhenThe fullyShannon operational, the newmanufacturing facility isprovides expectedincremental manufacturing capacity to doublemeet our expanding production capacityneeds, and allowallows for the geographical diversification of our manufacturing base for phosphorescentthe emitters.world-wide The first phasedistribution of facilityour improvementsmaterials hasWe beenalso completedgenerate technology development and operationssupport commencedrevenue inearned Junefrom 2022.development and technology evaluation agreements and commercialization assistance fees.

During the year ended December 31, 2024,2025, based on our previous earnings history, a current evaluation of expected future taxable income and other evidence, we determined to retain the valuation allowance that relates to New Jersey research and development credits and unrealized loss on investments.credits. In addition, athe portionCompany ofhas an unrealized gain on investments that if sold, could offset the investment loss was realized resulting in a capital loss carryforward that is not more likely than not to be used within the carryforward period. As such,such we provided athe valuation allowance againston the capital loss.loss was reversed. There are no indicators against the realizability of the remaining net deferrednet-deferred tax assets. Actual results could differ from our assessments if adequate taxable income is generated in future periods. To the extent we establish a new valuation allowance or change a previously established valuation allowance in a future period, income tax expense will be impacted.

Comparison of the Years Ended December 31, 20242025 and 20232024 (in thousands)

RevenueOur fromtotal royaltymaterial andsales licensewere fees was $266.8$353.0 million for the year ended December 31, 20242025, as compared to $238.4$365.4 million for the year ended December 31, 2023,2024, ana increasedecrease of 12%.3% Thewith increasea commensurate decrease in royalty and license fees was primarily the result of higher unit material volume andof 1%. The decrease in material sales was primarily due to changes in customer mix.mix and lower unit material volume.

The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was $14.1 million for the year ended December 31, 2025 as compared to $10.8 million for the year ended December 31, 2024 as compared to $10.6 million for the year ended December 31, 2023.2024. For each of the years ended December 31, 20242025 and 2023,2024, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of our customers over the remaining lives of their contracts.

Contract research services revenue was $22.5 million for the year ended December 31, 2025 as compared to $15.4 million for the year ended December 31, 20242024, asan compared to $16.0 million for the year ended December 31, 2023, a decreaseincrease of 4%.46%. The decreaseincrease in contract research services revenue was primarily due to theincreased timingspecialty ofmanufacturing completioncustomer ofdemand several contract research projects byat our subsidiary, Adesis, during the year ended December 31, 2023.2025. Revenue from contract research services consists of revenue earned by Adesis, which provides support services on a contractual basis to third-party customers in the pharma, biotech, catalysis and other industries.

Cost of sales for the year ended December 31, 20242025 increased by $13.1$5.7 million as compared to the year ended December 31, 2023,2024, primarily due to anAdesis' increase in the levelcost of material sales and product mix, partially offset by a $5.4 million decreasechanges in inventoryproduct reserve expense.mix. As a result of the increasedecrease in revenue from material salessales, andpartially offset by the increases in revenue from royalty and license fees,fees and contract research, gross margin for the year ended December 31, 20242025 increaseddecreased by $58.2$2.7 million as compared to the year ended December 31, 2023,2024, with gross margin as a percentage of revenue remainingdecreasing consistentto at76% from 77%.

Amortization of acquired technology and other intangible assets was $18.2 million for each of the yearyears ended December 31, 2024,2025 asand compared to $16.0 million for the year ended December 31, 2023. The increase was due to the commencement of amortization expense associated with the Merck KGaA patent acquisition that was completed in April 2023.2024. See Note 7 in Notes to Consolidated Financial Statements for further discussion.

Royalty and license expense increaseddecreased to $504,000 for the year ended December 31, 2025, as compared to $2.0 million for the year ended December 31, 2024, as compared to $647,000 for the year ended December 31, 2023.2024. This increasedecrease was due to a one-time expense of $1.5 million in the year ended December 31, 2024 in connection with an amendment to our existing amended license agreement, effective as of October 9, 1997, with Princeton University and the University of Southern California.

Interest and other loss,income, net

Interest income, net was $39.7 million for the year ended December 31, 2025, as compared to $40.7 million for the year ended December 31, 2024, as compared to $28.2 million for the year ended December 31, 2023. The increase in interest income, net was primarily due to an increase in bond yields on available-for-sale investments held during the year ended December 31, 2024 compared to the prior year as well as higher available-for-sale investment balances.2024. Other loss,income (loss), net primarily consisted of net exchange gains and losses on foreign currency transactionstransactions, net investment gains and losses, and rental income. We recorded other income, net of $6.5 million for the year ended December 31, 2025 as compared to other loss, net of $7.4 million for the year ended December 31, 2024 as compared to $184,000 for the year ended December 31, 2023.2024. The increase in other loss,income (loss), net during the year ended December 31, 20242025 was primarily due to a $3.9 million investment gain, net on our marketable equity securities portfolio and a $935,000 foreign exchange gain during the year ended December 31, 2025 as compared to a $7.2 million foreign exchange loss thatduring wasthe year ended December 31, 2024. Net exchange gains and losses on foreign currency are primarily caused by the fluctuation in the Korean Won to the U.S. Dollar exchange rate and resulting remeasurement of a Korean Won-denominated withholding tax receivable.

Cash used in investing activities was $45.5 million for the year ended December 31, 2025, as compared to $164.4 million for the year ended December 31, 2024, as compared to $83.3 million for the year ended December 31, 2023.2024. The increasedecrease was due to the timing of maturities and purchases of investments resulting in net sales and maturities of $20.9 million for the year ended December 31, 2025, as compared to net purchases of $121.8 million for the year ended December 31, 2024, as compared to net sales and maturities of $43.1 million for the year ended December 31, 2023, partially offset by aan decreaseincrease in purchases of intangibles and property and equipment of $83.7$23.8 million. The increase in propertyproperty, plant and equipment and intangiblespurchases during the year ended December 31, 20232025 was primarily due to the Merckcontinued KGaA patent acquisition and the purchasesexpansion of the Shannonmanufacturing facility in Shannon, Ireland and theimprovements Southto Koreaour applicationresearch center.and development facility in Ewing, New Jersey.

Cash used in financing activities was $126.0 million for the year ended December 31, 2025, as compared to $82.3 million for the year ended December 31, 2024, as compared to $72.9 million for the year ended December 31, 2023.2024. The increase was due to an increase in repurchases of common stock of $32.9 million, an increase in the cash payment of dividends in the current year of $9.4 million and an increase in the payment of withholding taxes related to stock-based compensation to employees of $180,000,$1.2 partiallymillion offsetand bya an increasedecrease in the proceeds from issuance of common stock of $208,000.$200,000.

Working capital was $979.0 million as of December 31, 2025, as compared to $774.4 million as of December 31, 2024, as compared to $798.3 million as of December 31, 2023.2024. The decreaseincrease was primarily due to decreasesincreases in short-term investmentsinvestments, inventory, and accounts receivablecash and ancash increase in accounts payable.equivalents.

Several significant contractual obligations are anticipated to be incurred in future periods and include payments for retirement benefit plan obligations, lease obligations and PPG inventory commitments. Payments towards the retirement plan obligations commenced during fiscal year 2023 and are expected to total $79.6$77.2 million over the remaining life of the plan. Existing lease obligations are $4.3$5.3 million for both fiscal years 2026 and 2027, $5.0 million for fiscal year 2025, $4.4 million for fiscal year 2026, $4.3 million for fiscal year 20272028 and $12.1$10.3 million thereafter. Existing PPG inventory commitments are $46.5$40.7 million and will fluctuate based on PPG production needs to fulfill our demand for commercial emitter material.

We believe that potential additional financing sources for us include long-term and short-term borrowings and public and private sales of our equity and debt securities. It should be noted, however, that additionalAdditional funding may be required in the future for research, development and commercialization of our OLED technologies and materials, to obtain, maintain and enforce patents respecting these technologies and materials, and for working capital and other purposes, the timing and amount of which are difficult to ascertain. We believe that potential additional financing sources for us include long-term and short-term borrowings and public and private sales of our equity and debt securities. There can be no assurance that additional funds will be available to us when needed, on commercially reasonable terms or at all, particularly in the current economic environment.

We are a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display applications, such as mobile phones, televisions, monitors, wearables, tablets, portable media devices,notebookdevices, notebook computers, personal computers, automotive applications and specialty lighting products. Since 1994, we have been engaged and expect to continue to be primarily engaged, in funding and performing research and development activities relating to OLED technologies and materials, and commercializing these technologies and materials. We derive our revenue primarily from the following:

In 2016, we acquired Adesis, Inc. (Adesis) which has operations in New Castle and Wilmington, Delaware. Adesis is a contract development and manufacturing organization (CDMO) that provides support services on a contractual basis to third-party customers in the OLED, pharma, biotech, catalysis and other industries. As of MarchJune 31,30, 2026, Adesis employed a team of 137134 research scientists, chemists, engineers and laboratory technicians. Prior to our acquisition of Adesis, we utilized more than 50% of Adesis’ technology service and production output. We continue to utilize a significant portion of its technology research capacity for the benefit of our OLED technology development, and Adesis uses the remaining capacity to operate as a CDMO by providing contract research services for non-OLED applications to third-party customers in the above-mentioned industries. Contract research services revenue is earned by providing chemical materials synthesis research, development and commercialization for non-OLED applications on a contractual basis for those third-party customers.

Comparison of the Three Months Ended MarchJune 31,30, 2026 and 2025

Our total material sales were $83.7$66.2 million for the three months ended MarchJune 31,30, 2026, as compared to $86.2$88.7 million for the three months ended MarchJune 31,30, 2025, a decrease of 3%25% with a commensurate decrease in unit material volume of 4%.11%. The decrease in material sales was primarily due to lower unit material volume, changes in customer mix and lowera unit$6.9 million unfavorable period-over-period change in the cumulative catch-up adjustment for material volume.sales, primarily attributable to product mix changes forecasted over the respective remaining lives of certain customer contracts.

Green emitter sales for the three months ended MarchJune 31,30, 2026, which include our yellow-green emitters, were $64.0$50.9 million as compared to $63.5$63.6 million for the three months ended MarchJune 31,30, 2025, with unit material volumes decreasing by 2%.5%.

Red emitter sales for the three months ended MarchJune 31,30, 2026 were $19.7$15.1 million as compared to $21.5$23.9 million for the three months ended MarchJune 31,30, 2025, with unit material volumes decreasing by 9%.21%.

Revenue from royalty and license fees was $54.2$81.2 million for the three months ended MarchJune 31,30, 2026 as compared to $73.6$75.7 million for the three months ended MarchJune 31,30, 2025, aan decreaseincrease of 26%.7%. The decreaseincrease in royalty and license fees for the three months ended March 31, 2026 was primarily the result of changesa $16.3 million favorable period-over-period change in customerthe mixcumulative catch-up adjustment for royalty and license fees, partially offset by lower unit material volume.volume Whileand changes in customer mixmix. canThe vary$16.3 quartermillion favorable period-over-period change in the cumulative catch-up adjustment was primarily attributable to quarter,an weincrease expectin the customer mix in subsequent periods of 2026 to have a more favorable impact onaverage royalty and license fees asprice comparedper gram due to lower anticipated demand from certain customers over the firstrespective quarterremaining lives of thetheir year.contracts.

The total cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was aan reductionincrease of $12,000$10.1 million for the three months ended MarchJune 31,30, 2026 as compared to a net increase of $2.0 million$655,000 for the three months ended MarchJune 31,30, 2025. For the three months ended March 31, 2025, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of our customers over the remaining lives of their contracts.

Cost of sales for the three months ended MarchJune 31,30, 2026 decreased by $2.0$2.4 million as compared to the three months ended MarchJune 31,30, 2025, primarily due to lower sales volume and Adesis' cost of sales and lower sales volume,sales, partially offset by product mix. As a result of the decrease in revenue from material sales, partially offset by the increase in revenue from royalty and license fees, gross margin for the three months ended MarchJune 31,30, 2026 decreased by $22.1$17.2 million as compared to the three months ended MarchJune 31,30, 2025, with gross margin as a percentage of revenue decreasing to 75%76% from 77%.

Selling, generalResearch and administrativedevelopment expenses increaseddecreased to $20.0$35.0 million for the three months ended MarchJune 31,30, 2026, as compared to $17.0$36.4 million for the three months ended MarchJune 31,30, 2025. The increasedecrease in selling, generalresearch and administrativedevelopment expenses was primarily due to ana increasereduction in employee-relatedstock-based expenses.compensation and contract research costs.

AmortizationSelling, of acquired technologygeneral and otheradministrative intangibleexpenses assets increaseddecreased to $5.6$18.6 million for the three months ended MarchJune 31,30, 20262026, as compared to $4.5$20.4 million for the three months ended MarchJune 31,30, 2025. The increasedecrease in amortizationselling, of acquired technologygeneral and otheradministrative intangible assetsexpenses was primarily due to thea acquisition of the Merck KGaA patent portfoliodecrease in Januarystock-based 2026.compensation, Seepartially Noteoffset 7by an increase in Notesconsulting to Consolidated Financial Statements for further discussion.expenses.

Patent costs increaseddecreased to $2.4 million for the three months ended MarchJune 31,30, 2026, as compared to $1.9$2.6 million for the three months ended MarchJune 31,30, 2025.

Royalty and license expense decreased to $104,000$105,000 for the three months ended MarchJune 31,30, 2026, as compared to $114,000$117,000 for the three months ended MarchJune 31,30, 2025.

Interest income, net was $8.7$8.5 million for the three months ended MarchJune 31,30, 2026, as compared to $10.1$9.8 million for the three months ended MarchJune 31,30, 2025. The decrease in interest income, net was primarily dueattributable to a decrease inlower bond yields and reduced average investment balances on available-for-sale investments heldcompared inwith the currentsame quarter over bond yields on available-for-sale investments held in the comparable quarterperiod in 2025. Other (loss) income, net primarily consisted of net exchange gains and losses on foreign currency transactions, net investment gains and losses, and rental income. We recorded other loss, net of $6.2$1.1 million for the three months ended MarchJune 31,30, 2026 as compared to other income, net of $378,000$5.6 million for the three months ended MarchJune 31,30, 2025. The decrease in other (loss) income, net was primarily due to a $3.0 million foreign exchange loss, a $2.7 million$730,000 investment loss on our marketable equity securities portfolio and a $415,000 impairment loss on our minority equity investment portfolio during the three months ended March 31, 2026 as compared to a $14,000 investment loss on our marketable equity securities portfolio and no$476,000 foreign exchange loss during the three months ended MarchJune 31,30, 2025.2026 Netas compared to a $4.5 million foreign exchange gainsgain andduring lossesthe onthree foreignmonths currencyended areJune primarily30, 2025, which was caused by the fluctuation in the Korean Won to the U.S. Dollar exchange rate and resulting remeasurement of a Korean Won-denominated withholding tax receivable.

We are subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 20.7%19.0% and 19.6%19.8% for the three months ended MarchJune 31,30, 2026 and 2025, respectively, and we recorded income tax expense of $9.4$11.6 million and $15.7$16.6 million, respectively, for those periods. The increase in the effective tax rate during the three months ended March 31, 2026 was primarily due to a decrease in research and development tax credits.

Our principal sources of liquidity are our cash and cash equivalents and short-term investments. As of MarchJune 31,30, 2026, we had cash and cash equivalents of $159.4$120.6 million, short-term investments of $357.1$350.7 million, and long-term U.S. Government bonds investments of $395.0$383.2 million for a total of $911.5$854.5 million. This compares to cash and cash equivalents of $138.4 million, short-term investments of $464.0 million, and long-term U.S. Government bond investments of $353.0 million for a total of $955.4 million as of December 31, 2025.

Cash provided by operating activities for the threesix months ended MarchJune 31,30, 20252026 was $30.6$133.9 million resulting from $64.4$85.3 million of net incomeincome, and $14.1$42.5 million from non-cash items including depreciation, stock-based compensation, depreciationcompensation and amortization of intangibles, partially offset byand a $47.9$6.1 million reductionincrease due to changes in our operating assets and liabilities. Changes in our operating assets and liabilities related to an increase in accountsdeferred receivablerevenue of $25.9$19.9 million and a decrease in other assets of $17.8 million, anpartially increaseoffset in inventory of $14.4 million,by a decrease in accounts payable and accrued expenses of $13.4$14.0 million, a decrease in deferred revenue of $8.5 million and an increase in other assetsinventory of $2.2$8.7 million, partially offset by an increase in accounts receivable of $6.3 million and a decrease in other liabilities of $16.5$2.6 million.

Cash provided by investing activities was $9.9$17.0 million for the threesix months ended MarchJune 31,30, 2026, as compared to $58.2cash used in investing activities of $34.5 million for the threesix months ended MarchJune 31,30, 2025. The decreaseincrease in cash provided by investing activities was due to timing of maturities and purchases of investments resulting in net sales and maturities of $58.5$70.2 million for the threesix months ended MarchJune 31,30, 2026, as compared to $71.2net purchases of $7.0 million for the threesix months ended MarchJune 31,30, 2025, partially offset by an increase in purchases of intangibles and property and equipment of $35.6$25.7 million. The increase in the purchases of intangibles during the threesix months ended MarchJune 31,30, 2026 was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026.

Cash used in financing activities was $97.7$168.6 million for the threesix months ended MarchJune 31,30, 2026, as compared to $30.2$51.2 million for the threesix months ended MarchJune 31,30, 2025. The increase was due to an increase in the repurchases of common stockstock, inclusive of $67.1excise tax, of $115.2 million, an increase in the cash payment of dividends in the current year of $2.0$3.8 million and a decrease in the proceeds from issuance of common stock of $1,000,$33,000, partially offset by a decrease in the payment of withholding taxes related to stock-based compensation to employees of $1.6 million.

Working capital was $834.5$830.9 million as of MarchJune 31,30, 2026, as compared to $979.0 million as of December 31, 2025. The decrease was primarily due to decreases in short-term investments,investments and other current assets, and accounts receivable, partially offset by an increase in cash and cash equivalents.assets.

As of MarchJune 31,30, 2026, we had no off-balance sheet arrangements in the nature of guarantee contracts, retained or contingent interests in assets transferred to unconsolidated entities (or similar arrangements serving as credit, liquidity or market risk support to unconsolidated entities for any such assets), or obligations (including contingent obligations) arising out of variable interests in unconsolidated entities providing financing, liquidity, market risk or credit risk support to us, or that engage in leasing, hedging or research and development services with us.