| Segments |
17. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of R&D and other significant expenses, leading to decisions related to resource allocations in relation to profit and loss. Accordingly, the Company identifies two reportable segments. The Company’s reportable segments are AxS and SCDE. The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments sales to each other are eliminated. Effective May 1, 2025, segment adjusted EBITDA is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance. Segment adjusted EBITDA is defined as segment (loss) income from operations before depreciation and amortization, adjusted for the impact of certain other non-cash items, including amortization of implementation of cloud computing arrangements, stock-based compensation, and acquisition related expenses. Prior period segment information has been revised to align with the new segment presentation. | | | | | | | | | | | | Three Months Ended August 1, 2026 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 273,865 | | $ | 55,193 | | $ | 329,058 | Contract services | | | 72,104 | | | 79,328 | | | 151,432 | | | | 345,969 | | | 134,521 | | | 480,490 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 213,574 | | | 123,765 | | | 337,339 | Intangible amortization included in cost of sales | | | 8,592 | | | 9,960 | | | 18,552 | SG&A less intangible amortization | | | 62,892 | | | 23,732 | | | 86,624 | Intangible amortization included in SG&A | | | 7,167 | | | 17,717 | | | 24,884 | Research and development | | | 22,181 | | | 1,781 | | | 23,962 | Other expense (income) | | | 600 | | | (5) | | | 595 | Add: | | | | | | | | | | Depreciation | | | 8,632 | | | 3,965 | | | 12,597 | Amortization | | | 15,759 | | | 27,677 | | | 43,436 | Acquisition-related expenses | | | 1,176 | | | 966 | | | 2,142 | Amortization of cloud computing arrangement implementation | | | 1,753 | | | — | | | 1,753 | Equity securities investments activity, net | | | — | | | — | | | — | Stock-based compensation | | | 4,002 | | | 925 | | | 4,927 | Segment adjusted EBITDA | | $ | 62,285 | | $ | (8,896) | | $ | 53,389 |
| | | | | | | | | | | | Three Months Ended August 2, 2025 | | | AxS | | SCDE | | Total | Revenue: | | | | | | | | | | Product sales | | $ | 240,744 | | $ | 72,789 | | $ | 313,533 | Contract services | | | 44,580 | | | 96,563 | | | 141,143 | | | | 285,324 | | | 169,352 | | | 454,676 | Less: | | | | | | | | | | Cost of sales less intangible amortization and other purchase accounting adjustments | | | 175,047 | | | 147,132 | | | 322,179 | Intangible amortization included in cost of sales | | | 21,982 | | | 15,397 | | | 37,379 | SG&A less intangible amortization | | | 59,742 | | | 29,231 | | | 88,973 | Intangible amortization included in SG&A | | | 11,125 | | | 31,178 | | | 42,303 | Research and development | | | 29,763 | | | 3,351 | | | 33,114 | Other expense (income) | | | (837) | | | (1,524) | | | (2,361) | Add: | | | | | | | | | | Depreciation | | | 7,771 | | | 2,801 | | | 10,572 | Amortization | | | 33,107 | | | 46,575 | | | 79,682 | Acquisition-related expenses | | | 15,553 | | | 8,176 | | | 23,729 | Amortization of cloud computing arrangement implementation | | | 747 | | | 9 | | | 756 | Equity securities investments activity, net | | | (1,695) | | | (1,006) | | | (2,701) | Stock-based compensation | | | 8,775 | | | 2,654 | | | 11,429 | Segment adjusted EBITDA | | $ | 52,760 | | $ | 3,796 | | $ | 56,556 |
The following table (in thousands) provides a reconciliation from segment adjusted EBITDA to income before income taxes: | | | | | | | | | Three Months Ended | | | August 1, | | August 2, | | | 2026 | | 2025 | Segment adjusted EBITDA | | $ | 53,389 | | $ | 56,556 | Depreciation and amortization | | | (56,033) | | | (90,254) | Acquisition-related expenses | | | (2,142) | | | (23,729) | Amortization of cloud computing arrangement implementation | | | (1,753) | | | (756) | Stock-based compensation | | | (4,927) | | | (11,429) | Equity securities investments activity, net | | | — | | | 2,701 | Interest expense, net | | | 4,136 | | | (17,415) | (Loss) income before income taxes | | $ | (7,330) | | $ | (84,326) |
Identifiable segment assets are summarized in the table below. Corporate assets primarily consist of cash and cash equivalents, prepaid expenses and other current assets, long-term investments, property and equipment, net, operating lease right-of-use assets, deferred income taxes and other assets managed centrally on behalf of the business segments. | | | | | | | | | | | | | | | AxS | | SCDE | | Corporate | | Total | As of August 1, 2026 | | $ | 2,590,495 | | $ | 2,021,599 | | $ | 1,118,599 | | $ | 5,730,693 | As of April 30, 2026 | | $ | 2,604,511 | | $ | 2,032,663 | | $ | 1,079,568 | | $ | 5,716,742 |
Capital expenditures are summarized in the table below (in thousands): | | | | | | | | | | | | | | | AxS | | SCDE | | Corporate | | Total | Three Months Ended August 1, 2026 | | $ | 40,204 | | $ | 7,966 | | $ | 1,280 | | $ | 49,450 | Three Months Ended August 2, 2025 | | $ | 15,178 | | $ | 16,437 | | $ | 453 | | $ | 32,068 |
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