RAMBUS INC Segments Disclosure
7. Segments and Major Customers
Operating segments are based upon the Company’s internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker (“CODM”) to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.
The Company has determined its CODM to be the (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of December 31, 2025, the Company has a operating and reportable segment.
The CODM uses net income to assess segment performance, allocate resources and manage the business on a consolidated basis. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.
The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the years ended December 31, 2025, 2024 and 2023, respectively, were as follows:
|
|
Years Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Total revenue |
|
$ |
707,630 |
|
|
$ |
556,624 |
|
|
$ |
461,117 |
|
Adjusted cost of revenue (1) |
|
|
(136,791 |
) |
|
|
(98,368 |
) |
|
|
(89,322 |
) |
Adjusted research and development (2) |
|
|
(167,048 |
) |
|
|
(146,431 |
) |
|
|
(140,793 |
) |
Adjusted sales, general and administrative (3) |
|
|
(82,322 |
) |
|
|
(76,038 |
) |
|
|
(76,669 |
) |
Other segment items: |
|
|
|
|
|
|
|
|
|
|||
Stock-based compensation expenses (4) |
|
|
(54,267 |
) |
|
|
(44,879 |
) |
|
|
(45,011 |
) |
Amortization of acquired intangible assets (4) |
|
|
(6,878 |
) |
|
|
(11,710 |
) |
|
|
(14,741 |
) |
Impairment of assets |
|
|
— |
|
|
|
(1,071 |
) |
|
|
(10,045 |
) |
Acquisition & divestiture-related costs (5) |
|
|
(106 |
) |
|
|
(162 |
) |
|
|
(1,625 |
) |
Interest and other income (expense), net |
|
|
21,738 |
|
|
|
17,034 |
|
|
|
33,521 |
|
Change in fair value of earn-out liability |
|
|
— |
|
|
|
5,044 |
|
|
|
(9,234 |
) |
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
(9,368 |
) |
Gain on divestiture |
|
|
— |
|
|
|
— |
|
|
|
90,784 |
|
Other (6) |
|
|
— |
|
|
|
— |
|
|
|
(1,454 |
) |
Provision for (benefit from) income taxes |
|
|
(51,501 |
) |
|
|
(20,222 |
) |
|
|
146,744 |
|
Net income |
|
$ |
230,455 |
|
|
$ |
179,821 |
|
|
$ |
333,904 |
|
The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the years ended December 31, 2025, 2024 and 2023:
|
|
Years Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Payroll and benefits |
|
$ |
154,943 |
|
|
$ |
129,228 |
|
|
$ |
123,056 |
|
Variable research and development expenses (1) |
|
|
27,097 |
|
|
|
27,342 |
|
|
|
28,228 |
|
Professional fees |
|
|
19,889 |
|
|
|
20,055 |
|
|
|
22,148 |
|
Temporary labor services and consulting expenses |
|
|
12,634 |
|
|
|
14,264 |
|
|
|
13,577 |
|
Facilities costs |
|
|
12,542 |
|
|
|
11,853 |
|
|
|
12,347 |
|
Amortization and depreciation |
|
|
11,916 |
|
|
|
10,076 |
|
|
|
10,144 |
|
Other expenses |
|
|
10,349 |
|
|
|
9,651 |
|
|
|
7,962 |
|
Total adjusted operating expenses |
|
$ |
249,370 |
|
|
$ |
222,469 |
|
|
$ |
217,462 |
|
The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets.
Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of December 31, 2025 and 2024, respectively, was as follows:
|
|
As of December 31, |
|
|||||
Customer |
|
2025 |
|
|
2024 |
|
||
Customer 1 |
|
|
35 |
% |
|
|
39 |
% |
Customer 2 |
|
|
22 |
% |
|
|
17 |
% |
Revenue from the Company’s major customers representing 10% or more of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively, was as follows:
|
|
Years Ended December 31, |
|
|||||||||
Customer |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Customer A |
|
|
23 |
% |
|
|
23 |
% |
|
|
27 |
% |
Customer B |
|
|
18 |
% |
|
|
17 |
% |
|
|
18 |
% |
Customer C |
|
* |
|
|
|
12 |
% |
|
* |
|
||
* Customer accounted for less than 10% of total revenue in the period.
Revenue from customers in the geographic regions based on the location of contracting parties was as follows:
|
|
Years Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
South Korea |
|
$ |
329,256 |
|
|
$ |
197,515 |
|
|
$ |
152,328 |
|
Singapore |
|
|
163,821 |
|
|
|
67,318 |
|
|
|
53,327 |
|
United States |
|
|
124,101 |
|
|
|
201,466 |
|
|
|
176,821 |
|
Other |
|
|
90,452 |
|
|
|
90,325 |
|
|
|
78,641 |
|
Total |
|
$ |
707,630 |
|
|
$ |
556,624 |
|
|
$ |
461,117 |
|
As of December 31, 2025, of the $113.1 million of total property and equipment, approximately $108.0 million was located in the United States, $2.5 million was located in India and $2.6 million was located in other foreign locations. As of December 31, 2024, of the $75.5 million of total property and equipment, approximately $70.4 million was located in the United States, $2.6 million was located in India and $2.5 million was located in other foreign locations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.