Vistance Networks, Inc.

Previous wording

The following narrative is an analysis of the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025. The discussion is provided to increase the understanding of, and should be read in conjunction with, the unaudited condensed consolidated financial statements and accompanying notes included in this report, as well as the audited consolidated financial statements, related notes thereto and management’s discussion and analysis of financial condition and results of operations, including management’s discussion and analysis regarding the application of critical accounting policies and the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report).

Current wording

The following narrative is an analysis of the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. The discussion is provided to increase the understanding of, and should be read in conjunction with, the unaudited condensed consolidated financial statements and accompanying notes included in this report, as well as the audited consolidated financial statements, related notes thereto and management’s discussion and analysis of financial condition and results of operations, including management’s discussion and analysis regarding the application of critical accounting policies and the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report).

Previous wording

Following the divestiture of the Connectivity and Cable Solutions (CCS) segment that was completed on January 9, 2026, we initiated a new restructuring plan to right-size our cost structure and align operations with our revised business scope. As a result of this transaction, the new restructuring plan and our prior transformation initiative, we incurred $8.4 million and $15.1 million of net restructuring costs and $7.6 million and $5.6 million of transaction, transformation and integration costs for the three and six months ended June 30, 2026, respectively. We incurred $1.6 million and $11.5 million of net restructuring costs and $12.3 million and $10.0 million of transaction, transformation and integration costs during the three and six months ended June 30, 2025, respectively. We expect to continue to incur such costs during the remainder of 2026 as we continue executing on our current transformation initiative, and the resulting charges and cash requirements could be material.

Current wording

Following the divestiture of the Connectivity and Cable Solutions (CCS) segment that was completed on January 9, 2026, we initiated a new restructuring plan to right-size our cost structure and align operations with our revised business scope. As a result of this transaction, the new restructuring plan and our prior transformation initiative, we incurred $2.1 million and $17.2 million of net restructuring costs and $2.3 million and $14.6 million of transaction, transformation and integration costs for the three and nine months ended September 30, 2026, respectively. We incurred $1.6 million and $13.1 million of net restructuring costs and $1.3 million and $11.3 million of transaction, transformation and integration costs during the three and nine months ended September 30, 2025, respectively. We expect to continue to incur such costs during the remainder of 2026 as we continue executing on our current transformation initiative, and the resulting charges and cash requirements could be material.

Previous wording

On April 29, 2026, we entered into a definitive agreement with Belden Inc. (Belden), a Delaware corporation, pursuant to which Belden agreed to acquire our RUCKUS segment, which provides wireless networks for enterprise and service provider customers, in exchange for approximately $1.846 billion in cash, subject to certain adjustments. The divestiture of the RUCKUS segment met the “held for sale” criteria in the second quarter of 2026 per Accounting Standard Codification (ASC) 360-10, Impairment and Disposal of Long Lived Assets, and we have determined that it represents a strategic shift that will have a major effect on the Company’s operations. As such, the results of operations directly attributable to the RUCKUS segment have been reclassified to discontinued operations per ASC 205-20, Presentation of Financial Statements—Discontinued Operations, on the Condensed Consolidated Statements of Operations, retrospectively for all periods presented beginning in the second quarter of 2026. In addition, the assets and liabilities of the RUCKUS segment have been presented separately as assets and liabilities held for sale on the Condensed Consolidated Balance Sheets for both current and prior periods beginning in the second quarter of 2026. For further discussion of the divestiture and sale of the RUCKUS segment, see Notes 2 and 9 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Current wording

On July 1, 2026, we completed the previously announced sale of our RUCKUS segment to Belden Inc. (Belden) pursuant to the Purchase Agreement, dated as of April 29, 2026, in exchange for net cash consideration of $1.9 billion. The proceeds are net of $16.2 million of transaction expenses and $38.0 million of cash included in the assets sold. The RUCKUS segment provided wireless networks for enterprises and service providers. The RUCKUS segment met the “held for sale” criteria in the second quarter of 2026 per Accounting Standard Codification (ASC) 360-10, Impairment and Disposal of Long Lived Assets(ASC 360-10), and we determined, qualitatively and quantitatively, that this transaction represented a strategic shift that would have a major effect on our operations and financial results. As such, the results of operations directly attributable to the RUCKUS segment were reclassified to discontinued operations per ASC 205-20, Presentation of Financial Statements—Discontinued Operations(ASC 205-20), on the Condensed Consolidated Statements of Operations, retrospectively for all periods presented beginning in the second quarter of 2026. In addition, the assets and liabilities of the RUCKUS segment were presented separately as assets and liabilities held for sale on the Condensed Consolidated Balance Sheet as of December 31, 2025.

Previous wording

In addition to the divestiture of the CCS segment, we completed the divestitures of our Home Networks (Home) business, Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business unit during 2025 and 2024. Unless otherwise noted, the following discussions relate solely to our continuing operations. For further discussion of the discontinued operations related to our CCS segment, OWN segment, DAS business unit and Home business, see Note 2 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Current wording

In addition to the divestitures of the CCS and RUCKUS segments, we completed the divestitures of our Home Networks (Home) business, Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business unit during 2025 and 2024. Unless otherwise noted, the following discussions relate solely to our continuing operations. For further discussion of the divested businesses, see Note 2, Divestitures, in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Previous wording

Our continuing operations results include general corporate costs that were previously allocated to the RUCKUS segment, CCS segment, OWN segment and DAS business unit. These indirect costs, reflected on the corporate and other line item within our segment information below, are classified as continuing operations, since the costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2025, the corporate and other costs related to the OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income from our transition service agreement with Amphenol Corporation (Amphenol TSA). The corporate and other costs related to the CCS segment have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to our remaining segment and partially offset by income from the Transition Service Agreement with Belden (Belden TSA).

Current wording

Our continuing operations results include general corporate costs that were previously allocated to the divested businesses. These indirect costs, reflected on the corporate and other line item within our “Aurora and consolidated results” below, have been classified within continuing operations, because they were not directly attributable to the divested businesses. Beginning in the first quarter of 2025, the costs previously allocated to the OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income under the Transition Service Agreement with Amphenol Corporation (Amphenol TSA). The costs previously allocated to the CCS segment have been reallocated to our remaining segments and partially offset by income under the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the costs previously allocated to the RUCKUS segment were reallocated to our remaining segment and partially offset by income under the Transition Service Agreement with Belden (Belden TSA).

Previous wording

COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 WITH THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Current wording

COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 WITH THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Previous wording

Net sales for the three months ended June 30, 2026 decreased by $4.5 million, or 1.4% compared to the prior year period, primarily driven by unfavorable product mix, lower pricing and lower sales volume. For the six months ended June 30, 2026, net sales increased by $58.3 million, or 10.4% compared to the prior year period, primarily driven by higher sales volume, partially offset by unfavorable product mix and lower pricing.

Current wording

For the three and nine months ended September 30, 2026, net sales which were primarily attributable to Aurora, decreased by $18.1 million, or 5.4%, and increased $40.2 million, or 4.5%, respectively, compared to the prior year periods. For the three months ended September 30, 2026, net sales decreased compared to the prior year period primarily due to lower sales volume, unfavorable product mix and lower pricing. For the nine months ended September 30, 2026, net sales increased compared to the prior year period primarily driven by higher sales volume, partially offset by unfavorable product mix and lower pricing.

Previous wording

From a regional perspective, for the three months ended June 30, 2026 compared to the prior year period, net sales decreased in the Europe, Middle East and Africa (EMEA) region by $5.2 million and Canada by $2.7 million, but increased in the U.S. by $2.7 million, the Asia Pacific (APAC) region by $0.4 million and the Caribbean and Latin America (CALA) region by $0.3 million. For the six months ended June 30, 2026 compared to the prior year period, net sales increased in the U.S. by $76.5 million and the APAC region by $1.6 million, but decreased in Canada by $11.4 million, the CALA region by $6.5 million and the EMEA region by $1.9 million.

Current wording

From a regional perspective, net sales for the three months ended September 30, 2026, decreased in the U.S. by $21.7 million, the Caribbean and Latin America (CALA) region by $6.0 million and Canada by $3.7 million, but increased in the Europe, Middle East and Africa (EMEA) region by $11.4 million and the Asia Pacific (APAC) region by $1.9 million. For the nine months ended September 30, 2026, net sales increased in the U.S. by $54.8 million, EMEA by $9.5 million and APAC by $3.5 million, but decreased in Canada by $15.1 million and CALA by $12.5 million.

Previous wording

Net sales to customers located outside of the U.S. comprised 19.2% and 19.1% of total net sales for the three and six months ended June 30, 2026, respectively, compared to 21.2% and 24.3% for the three and six months ended June 30, 2025, respectively. Foreign exchange rate changes did not have a material impact on our net sales during the three or six months ended June 30, 2026 compared to the prior year periods. For additional information on regional sales by segment, see “Segment Results” below and Note 6 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Current wording

Net sales to customers located outside of the U.S. comprised 20.9% and 19.7% of total net sales for the three and nine months ended September 30, 2026, respectively, compared to 18.7% and 22.2% for the three and nine months ended September 30, 2025, respectively. Foreign exchange rate changes did not have a material impact on our net sales during the three or nine months ended September 30, 2026 compared to the prior year periods. For additional information on regional sales, see Note 6, Segment and Geographic Information, in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Previous wording

Gross profit decreased by $35.3 million and $20.8 million, for the three and six months ended June 30, 2026, respectively, compared to the prior year periods primarily due to unfavorable product mix and lower pricing, partially offset by lower input costs. For the six months ended June 30, 2026, gross profit was also favorably impacted by an increase in sales volume compared to the prior year period.

Current wording

Gross profit decreased by $8.0 million and $28.8 million for the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. For the three months ended September 30, 2026, the decrease was primarily due to lower sales volume, unfavorable product mix and lower pricing, partially offset by lower input costs. For the nine months ended September 30, 2026, the decrease was primarily driven by unfavorable product mix and lower pricing, partially offset by lower input costs and higher sales volume.

Previous wording

Transition service agreement (TSA) income is related to the TSA we entered into with Amphenol in conjunction with the closing of the transactions to divest of the CCS segment, OWN segment and DAS business unit. Under the TSAs, we provide and receive certain post-closing support on a transitional basis. The TSAs have varying terms for duration, depending on the services provided thereunder, and provide for options to extend. For additional information related to the TSAs, see Note 2 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Current wording

TSA income relates to agreements we entered into with Belden and Amphenol in connection with the divestitures of the RUCKUS segment, CCS segment, OWN segment and DAS business unit. Under the TSAs, we provide and receive certain post-closing support on a transitional basis. The TSAs have varying terms for duration, depending on the services provided thereunder, and provide for options to extend. For additional information related to the TSAs, see Note 2, Divestitures, in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Previous wording

Selling, general and administrative (SG&A) expense decreased by $15.6 million and $27.5 million for the three and six months ended June 30, 2026, respectively, compared to the prior year periods. For the three and six months ended June 30, 2026, the decrease was primarily due to decreased variable incentive compensation expense of $7.6 million and $8.2 million, respectively, and decreased legal expense of $4.9 million and $11.5 million, respectively, partially offset by higher transaction costs of $1.9 million and 2.3 million, respectively.

Current wording

Selling, general and administrative (SG&A) expense decreased by $26.2 million and $53.7 million for the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. For the three and nine months ended September 30, 2026, the decrease was primarily due to decreased variable incentive compensation expense of $12.2 million and $20.3 million, respectively, and decreased legal expense of $7.1 million and $18.7 million, respectively, partially offset by higher transaction costs of $1.1 million and $3.3 million, respectively.

Previous wording

Research and development (R&D) expense for the three and six months ended June 30, 2026 decreased by $12.3 million and $18.4 million, respectively, due to lower spending within the Aurora segment compared to the prior year periods. R&D activities generally involve ensuring that our products are capable of meeting the evolving technological needs of our customers, bringing new products to market and modifying existing products to better serve our customers.

Current wording

Research and development (R&D) expense for the three and nine months ended September 30, 2026 decreased by $15.2 million and $33.6 million, respectively, primarily due to lower variable incentive compensation, compared to the prior year periods. R&D activities generally involve ensuring that our products are capable of meeting the evolving technological needs of our customers, bringing new products to market and modifying existing products to better serve our customers.

Previous wording

The corporate and other line item above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment and CCS segment. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to these discontinued operations. The corporate and other costs related to the CCS segment have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to our remaining segment and partially offset by income from the Belden TSA.

Current wording

Primarily reflects general corporate costs that were previously allocated to the divested RUCKUS and CCS segments. These indirect expenses have been classified as continuing operations because they were not directly attributable to the divested segments. The costs previously allocated to the CCS segment were reallocated to our remaining segments and partially offset by income under the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the costs previously allocated to the RUCKUS segment were reallocated to our remaining segment and partially offset by income under the Belden TSA.

Previous wording

The corporate and other line item above primarily reflects general corporate costs that were previously allocated to the RUCKUS segment, CCS segment, OWN segment and DAS business unit. These indirect expenses have been classified as continuing operations, since the costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2025, the corporate and other costs related to the OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA. The corporate and other costs related to the CCS segment have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the corporate and other costs related to the RUCKUS segment will be reallocated to our remaining segment and partially offset by income from the Belden TSA.

Current wording

Primarily reflects general corporate costs that were previously allocated to the divested businesses. Beginning in the first quarter of 2025, the costs previously allocated to the OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income under the Amphenol TSA. The costs previously allocated to the CCS segment were reallocated to our remaining segments and partially offset by income under the Amphenol TSA beginning in the first quarter of 2026. Beginning in the third quarter of 2026, the costs previously allocated to the RUCKUS segment were reallocated to our remaining segment and partially offset by income under the Belden TSA.

Previous wording

For the three and six months ended June 30, 2026, Aurora segment operating income and adjusted EBITDA decreased compared to the prior year periods primarily driven by unfavorable product mix, lower pricing, lower sales volume and higher SG&A, partially offset by lower input costs and lower R&D costs. For the six months ended June 30, 2026, Aurora segment operating income and adjusted EBITDA were also favorably impacted by higher sales volume. For the three and six months ended June 30, 2026, Aurora segment operating income was unfavorably impacted by increases in restructuring costs of $6.4 million and $3.1 million, respectively, and transaction, transformation and integration costs of $3.0 million and $4.8 million, respectively. Aurora segment operating income was favorably impacted by decreases in amortization expense of $2.4 million and $5.8 million, respectively, for the three and six months ended June 30, 2026. Restructuring costs, transaction, transformation and integration costs and amortization expense are not reflected in adjusted EBITDA. See “Reconciliation of Segment Adjusted EBITDA” below.

Current wording

For the nine months ended September 30, 2026, Aurora operating income and Aurora adjusted EBITDA decreased compared to the prior year period primarily due to unfavorable product mix and lower pricing, partially offset by higher sales volume, lower input costs and lower SG&A and R&D expense. Aurora operating income was also unfavorably impacted by increases in transaction, transformation and integration costs of $4.8 million, equity-based compensation of $4.8 million and restructuring costs of $3.1 million, partially offset by a decrease in amortization expense of $5.8 million. Transaction, transformation and integration costs, equity-based compensation, restructuring costs and amortization expense are not reflected in adjusted EBITDA. See “Reconciliation of Segment Adjusted EBITDA” below.

Previous wording

For the three and six months ended June 30, 2026, amortization of purchased intangible assets was lower compared to the prior year periods because certain of our intangible assets became fully amortized.

Current wording

For the three and nine months ended September 30, 2026, amortization of purchased intangible assets was lower compared to the prior year periods because certain of our intangible assets became fully amortized.

Previous wording

The net restructuring costs recorded in the three and six months ended June 30, 2026 were primarily related to our new restructuring plan to right-size our cost structure and align operations with our revised business scope. For the three and six months ended June 30, 2026, our net restructuring costs were $8.4 million and $15.1 million, respectively, and we paid $4.6 million and $9.9 million, respectively, to settle restructuring liabilities. We expect to make cash payments of $6.6 million in the remainder of 2026 and $0.9 million during 2027 to settle our restructuring actions. Additional restructuring actions related to our restructuring efforts are expected to be identified, and the resulting charges and cash requirements could be material.

Current wording

The net restructuring costs recorded in the three and nine months ended September 30, 2026 were primarily related to our new restructuring plan to right-size our cost structure and align operations with our revised business scope. For the three and nine months ended September 30, 2026, our net restructuring costs were $2.1 million and $17.2 million, respectively, and we paid $5.2 million and $15.1 million, respectively, to settle restructuring liabilities. We expect to make cash payments of $2.9 million in the remainder of 2026 and $1.5 million during 2027 to settle our restructuring actions. Additional restructuring actions related to our restructuring efforts are expected to be identified, and the resulting charges and cash requirements could be material.

Previous wording

Foreign currency gain (loss) includes the net foreign currency gains and losses resulting from the settlement of receivables and payables, foreign currency contracts and short-term intercompany advances in a currency other than the subsidiary’s functional currency. The change in foreign currency gain (loss) for the three and six months ended June 30, 2026 compared to the prior year periods was primarily driven by certain unhedged currencies.

Current wording

Foreign currency loss includes the net foreign currency gains and losses resulting from the settlement of receivables and payables, foreign currency contracts and short-term intercompany advances in a currency other than the subsidiary’s functional currency. The change in foreign currency loss for the three and nine months ended September 30, 2026 compared to the prior year periods was primarily driven by certain unhedged currencies.

Previous wording

Other income (expense), net for the three and six months ended June 30, 2026 was favorably impacted by gains on certain financial assets. For the six months ended June 30, 2025, other income (expense), net includes $1.1 million of debt issuance costs related to a debt refinancing transaction in the fourth quarter of 2024.

Current wording

Other income (expense), net for the nine months ended September 30, 2026 was favorably impacted by gains on certain financial assets. For the nine months ended September 30, 2025, other income (expense), net includes $1.1 million of debt issuance costs related to a debt refinancing transaction that occurred in the fourth quarter of 2024.

Previous wording

In connection with the sale of the CCS segment that was completed on January 9, 2026, we repaid our third‑party debt at closing, and all interest expense was reported within discontinued operations. However, we expect to incur interest expense in the future. The increase in interest income compared to the prior year periods was primarily driven by interest earned on the net proceeds related to the sale of the CCS segment.

Current wording

The increase in interest income compared to the prior year periods was primarily driven by interest earned on the net proceeds related to the sales of the RUCKUS and CCS segments.

Previous wording

For the three and six months ended June 30, 2026, we recognized an income tax benefit of $28.7 million on a pretax loss of $2.6 million and an income tax benefit of $22.3 million on pretax income of $20.4 million, respectively. Our income taxes were less than the statutory rate of 21.0% for the three and six months ended June 30, 2026, primarily due to $21.0 million and $21.2 million, respectively, of tax benefit associated with the Company’s equity compensation plan. Additionally, we recognized $7.1 million of tax benefit for each of the three and six months ended June 30, 2026 related to remeasuring certain net deferred taxes. Offsetting these benefits for the three and six months ended June 30, 2026, were the unfavorable impacts of U.S. anti-deferral provisions.

Current wording

For the three and nine months ended September 30, 2026, we recognized an income tax benefit of $20.0 million on pretax income of $34.7 million and an income tax benefit of $42.3 million on pretax income of $55.1 million, respectively. Our income taxes were less than the statutory rate of 21.0% for the three and nine months ended September 30, 2026, primarily due to $24.2 million and $24.7 million, respectively, of tax benefit associated with the release of certain uncertain tax positions. Additionally, we recognized $3.7 million and $24.8 million of tax benefit, associated with our equity compensation plan for each of the three and nine months ended September 30, 2026, respectively. Offsetting these benefits for the three and nine months ended September 30, 2026, were the unfavorable impacts of U.S. anti-deferral provisions. Certain income tax years will expire under the relevant statute of limitations during the fourth quarter of 2026. As a result, we expect to release a portion of our reserve for uncertain tax positions during the fourth quarter of 2026.

Previous wording

For the three and six months ended June 30, 2025, we recognized income tax expense of $2.5 million on pretax income of $8.4 million and an income tax benefit of $359.2 million on a pretax loss of $20.8 million, respectively. Our income taxes for the three and six months ended June 30, 2025, were favorably impacted by the tax benefit related to federal tax credits, as well as $361.1 million associated with a tax planning strategy for the six months ended June 30, 2025. Offsetting these benefits for the three and six months ended June 30, 2025, were the unfavorable impacts of U.S. anti-deferral provisions.

Current wording

For the three and nine months ended September 30, 2025, we recognized income tax expense of $11.4 million on a pretax loss of $7.5 million and an income tax benefit of $347.8 million on a pretax loss of $28.3 million, respectively. Our income taxes for the three and nine months ended September 30, 2025, were favorably impacted by the tax benefit related to federal tax credits, as well as $361.1 million associated with a tax planning strategy for the nine months ended September 30, 2025. Offsetting these benefits for the three and nine months ended September 30, 2025, were the unfavorable impacts of U.S. anti-deferral provisions.

Previous wording

Includes cash and cash equivalents in assets held for sale of $38.0 million as of June 30, 2026 and $309.2 million as of December 31, 2025.

Current wording

Includes cash and cash equivalents in assets held for sale of $309.2 million as of December 31, 2025.

Previous wording

Working capital is net of assets and liabilities held for sale and consists of current assets of $938.3 million less current liabilities of $405.5 million as of June 30, 2026 and current assets of $1,171.6 million less current liabilities of $468.1 million as of December 31, 2025.

Current wording

Working capital is net of assets and liabilities held for sale and consists of current assets of $1,420.5 million less current liabilities of $354.8 million as of September 30, 2026 and current assets of $1,171.6 million less current liabilities of $468.1 million as of December 31, 2025.

Previous wording

In connection with the sale of the CCS segment on January 9, 2026, on the closing date, we repaid in full all outstanding indebtedness using a portion of the proceeds from the transaction and terminated all outstanding commitments under the prior revolving credit agreement dated as of April 4, 2019. We entered into a new senior secured asset-based revolving credit facility (Revolving Credit Facility) on April 7, 2026.

Current wording

In connection with the sale of the CCS segment on January 9, 2026, on the closing date, we repaid in full all outstanding indebtedness using a portion of the proceeds from the transaction and terminated all outstanding commitments under the prior revolving credit agreement dated as of April 4, 2019. We entered into a new Revolving Credit Facility on April 7, 2026.

Previous wording

Our principal sources of liquidity on a short-term basis are cash and cash equivalents and cash flows provided by operations. On a long-term basis, our potential sources of liquidity also include raising capital through the issuance of equity and/or debt. On April 7, 2026, we entered into a revolving credit agreement providing for a Revolving Credit Facility available to the Company and certain of our U.S. subsidiaries designated as co-borrowers therein, in an aggregate principal amount of up to $300.0 million, subject to borrowing base availability. For further discussion of the Revolving Credit Facility, see Note 5 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Current wording

Our principal sources of liquidity on a short-term basis are cash and cash equivalents and cash flows provided by operations. On a long-term basis, our potential sources of liquidity also include raising capital through the issuance of equity and/or debt. On April 7, 2026, we entered into a revolving credit agreement providing for a Revolving Credit Facility available to the Company and certain of our U.S. subsidiaries designated as co-borrowers therein, in an aggregate principal amount of up to $300.0 million, subject to borrowing base availability. Effective July 1, 2026, in connection with the sale of the RUCKUS segment, the aggregate commitments under the Revolving Credit Facility were reduced from $300.0 million to $246.9 million, subject to applicable borrowing base limitations. For further discussion of the Revolving Credit Facility, see Note 5, Financing, in the Notes to Unaudited Condensed Consolidated Financial Statements included herein.

Previous wording

The primary uses of liquidity include working capital requirements, capital expenditures, business separation transaction costs, transformation costs, restructuring costs, litigation settlements, income tax payments, other contractual obligations, and periodic repurchases of our outstanding common stock.

Current wording

The primary uses of liquidity include special distributions, working capital requirements, capital expenditures, business separation transaction costs, transformation costs, restructuring costs, litigation settlements, income tax payments, other contractual obligations and periodic repurchases of our outstanding common stock.

Previous wording

Cash and cash equivalents decreased by $771.2 million during the six months ended June 30, 2026 as described under the Cash Flow Overview section below. In the second quarter of 2026, the Company paid a one-time special cash distribution of approximately $2,316.6 million, funded primarily from proceeds received from the sale of the CCS segment. The distribution included distributions paid on outstanding common shares as well as dividend equivalents associated with certain equity awards that were vested during the quarter and contributed to the decrease in cash and cash equivalents and stockholders' equity during the period. As of June 30, 2026, approximately 42% of our cash and cash equivalents were held outside the U.S.

Current wording

Cash and cash equivalents decreased by $239.7 million during the nine months ended September 30, 2026 as described under the Cash Flow Overview section below. During the nine months ended September 30, 2026, we paid special cash distributions totaling $3,435.2 million, funded primarily from proceeds received from the sales of the RUCKUS and CCS segments. The distributions included distributions paid on outstanding common shares as well as dividend equivalents associated with certain equity awards that were vested during the period and contributed to the decrease in cash and cash equivalents and stockholders’ equity during the period. As of September 30, 2026, approximately 5% of our cash and cash equivalents were held outside the U.S.

Previous wording

Working capital, net of assets and liabilities held for sale and excluding cash and cash equivalents, increased during the six months ended June 30, 2026 compared to the fourth quarter of 2025 primarily due to increases in prepaid expenses and inventory balances and a decrease in accrued and other liabilities, partially offset by increased accounts payable. The net decrease in total capitalization during the six months ended June 30, 2026 is primarily driven by the repayment of debt in connection with the sale of the CCS segment, partially offset by net income reflected for the period.

Current wording

Working capital, net of assets and liabilities held for sale and excluding cash and cash equivalents, increased during the nine months ended September 30, 2026 compared to the fourth quarter of 2025 primarily due to increases in inventory balances and prepaid expenses and a decrease in accrued and other liabilities. The net decrease in total capitalization during the nine months ended September 30, 2026 is primarily driven by the repayment of debt in connection with the sale of the CCS segment, partially offset by net income reflected for the period.

Previous wording

During the six months ended June 30, 2026, the increase in net cash used in operating activities compared to the prior year period was primarily driven by a higher use of cash from working capital and higher variable incentive compensation payments and cash taxes paid, partially offset by lower interest in the current year period compared to the prior year period.

Current wording

During the nine months ended September 30, 2026, the increase in net cash used in operating activities compared to the prior year period was primarily driven by a higher use of cash from working capital and higher variable incentive compensation payments, partially offset by lower cash interest and cash taxes paid in the current year period compared to the prior year period.

Previous wording

During the six months ended June 30, 2026, the increase in cash generated by investing activities compared to the prior year period was primarily driven by net proceeds of $10,541.7 million of net proceeds related to the sale of the CCS segment to Amphenol in the current year period compared to net proceeds of $2,034.5 million related to the sale of the OWN segment and DAS business unit and $7.3 million related to the sale of the OneCell business to Amphenol in the prior year period. The net cash generated by investing activities also benefited from favorable impacts due to decreased capital expenditures of $4.2 million compared to the prior year period.

Current wording

During the nine months ended September 30, 2026, the increase in cash generated by investing activities compared to the prior year period was primarily driven by $10,540.2 million of net proceeds related to the sale of the CCS segment to Amphenol and $1,869.6 million of net proceeds related to the sale of the RUCKUS segment to Belden in the current year period compared to net proceeds of $2,034.5 million related to the sale of the OWN segment and DAS business unit and $7.4 million related to the sale of the OneCell business to Amphenol in the prior year period. The net cash generated by investing activities also benefited from favorable impacts due to decreased capital expenditures of $40.1 million compared to the prior year period.

Previous wording

During the six months ended June 30, 2026, in connection with sale of the CCS segment, we repaid in full all outstanding indebtedness using a portion of the proceeds from the transaction which included repayment of our then-existing 2029 Term Loan in an aggregate outstanding principal amount of $3,150 million and the redemption of all outstanding Notes including (1) $1,000.0 million in outstanding aggregate principal amount of the 2031 Secured Notes, (2) $951.0 million in outstanding aggregate principal amount of the 2029 Secured Notes, (3) $641.6 million in outstanding aggregate principal amount of the 2028 Notes, (4) $866.9 million in outstanding aggregate principal amount of the 8.25% 2027 Notes and (5) $750.0 million in outstanding aggregate principal amount of the 5.00% 2027 Notes. We also recorded a loss of $11.3 million on the extinguishment of debt for the six months ended June 30, 2026. In addition, on the closing date, we paid $1,278.7 million of cash to redeem 100% of the Convertible Preferred Stock.

Current wording

During the nine months ended September 30, 2026, in connection with sale of the CCS segment, we repaid in full all outstanding indebtedness using a portion of the proceeds from the transaction which included repayment of our then-existing 2029 Term Loan in an aggregate outstanding principal amount of $3,150 million and the redemption of all outstanding Notes including (1) $1,000.0 million in outstanding aggregate principal amount of the 2031 Secured Notes, (2) $951.0 million in outstanding aggregate principal amount of the 2029 Secured Notes, (3) $641.6 million in outstanding aggregate principal amount of the 2028 Notes, (4) $866.9 million in outstanding aggregate principal amount of the 8.25% 2027 Notes and (5) $750.0 million in outstanding aggregate principal amount of the 5.00% 2027 Notes. We also recorded a loss of $11.3 million on the extinguishment of debt for the nine months ended September 30, 2026. In addition, on the closing date, we paid $1,278.7 million of cash to redeem 100% of the Convertible Preferred Stock.

Previous wording

During the six months ended June 30, 2025, we repurchased $299.0 million in aggregate principal amount of our 2029 Secured Notes and repurchased in full the $1,500.0 million outstanding amount of our 2026 Secured Notes. We also borrowed $50.0 million and repaid $250.0 million of outstanding borrowings under our Prior Revolving Credit Facility during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2025, we repurchased $299.0 million in aggregate principal amount of our 2029 Secured Notes and repurchased in full the $1,500.0 million outstanding amount of our 2026 Secured Notes. We also borrowed $50.0 million and repaid $250.0 million of outstanding borrowings under our Prior Revolving Credit Facility during the nine months ended September 30, 2025.

Previous wording

During the six months ended June 30, 2026, we paid approximately $2.6 million of upfront fees and expenses in connection with the new Revolving Credit Facility. In connection with the debt refinancing completed in December 31, 2024, we paid $5.7 million of debt issuance costs during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2026, we paid approximately $3.3 million of upfront fees and expenses in connection with the new Revolving Credit Facility. In connection with the debt refinancing completed in December 2024, we paid $5.7 million of debt issuance costs during the nine months ended September 30, 2025.

Previous wording

During the six months ended June 30, 2026, we paid a one-time special cash distribution of approximately $2,316.3 million, which was funded from proceeds generated from the sale of the CCS segment.

Current wording

During the nine months ended September 30, 2026, we paid special cash distributions of $3,435.2 million, which were funded from proceeds generated from the sales of the RUCKUS and CCS segments.

Previous wording

During the six months ended June 30, 2026, we received proceeds of $1.8 million related to the exercise of stock options. In addition, during the six months ended June 30, 2026, employees surrendered shares of our common stock to satisfy their tax withholding requirements on vested restricted stock units (RSUs) and performance share units (PSUs), which reduced cash flows by $43.2 million compared to $10.9 million in the prior year period.

Current wording

During the nine months ended September 30, 2026, we received proceeds of $1.9 million related to the exercise of stock options. In addition, during the nine months ended September 30, 2026, employees surrendered shares of our common stock to satisfy their tax withholding requirements on vested restricted stock units (RSUs) and performance share units (PSUs), which reduced cash flows by $47.7 million compared to $11.2 million in the prior year period.

Previous wording

We also believe presenting these non-GAAP results for the twelve months ended June 30, 2026 provides an additional tool for assessing our recent performance. Such amounts are unaudited and are derived by subtracting the data for the six months ended June 30, 2025 from the data for the year ended December 31, 2025 and then adding the data for the six months ended June 30, 2026.

Current wording

We also believe presenting these non-GAAP results for the twelve months ended September 30, 2026 provides an additional tool for assessing our recent performance. Such amounts are unaudited and are derived by subtracting the data for the nine months ended September 30, 2025 from the data for the year ended December 31, 2025 and then adding the data for the nine months ended September 30, 2026.

Previous wording

In 2025, reflects a pretax loss of $4.9 million related to the sale of our OneCell business.

Current wording

In 2025, reflects a pretax loss of $4.8 million related to the sale of our OneCell business.

Previous wording

Segment adjusted EBITDA is provided as a performance measure in Note 6 in the Notes to Unaudited Condensed Consolidated Financial Statements included herein. Below we reconcile segment adjusted EBITDA for each segment, individually, to operating income (loss) for that segment to supplement the reconciliation of the total segment adjusted EBITDA to consolidated operating income in Note 6.

Current wording

Segment adjusted EBITDA is provided as a performance measure in Note 6, Segment and Geographic Information, in the Notes to Unaudited Condensed Consolidated Financial Statements included herein. Below we reconcile segment adjusted EBITDA to operating income to supplement the reconciliation of segment adjusted EBITDA to net income in Note 6.