Gross margin increased 60 basis points to 44.3% due to pricing and lower material costs.
Company reported a net loss of $28.9 million for the quarter.
Deployed $65 million toward share repurchases in the first half of the fiscal year.
Ongoing IP litigation with Google and Implicit continues to generate significant legal expenses.
The Q1 FY2026 filing reveals a company at a critical inflection point, balancing a successful lean-operation strategy against a challenging macroeconomic environment. While the reduction in restructuring charges and the improvement in Adjusted EBITDA suggest that the internal 'cleanup' is largely complete, the persistence of net losses indicates that the path to sustainable GAAP profitability remains steep. The tension between top-line growth and rising component costs will likely be the primary driver of the stock's performance in the coming quarters. Investors are now weighing the benefits of a streamlined cost base and a refreshed product pipeline against the risks of flat volume growth and legal volatility. The company's decision to prioritize share buybacks while maintaining a significant cash cushion suggests a bet on its own recovery. Ultimately, the success of this turnaround will depend on whether the new product cycle can drive genuine volume growth that outweighs the headwinds of tariffs and memory chip inflation.