Microchip Technology Incorporated (MCHP): Business Model Canvas [Dec-2025 Updated]

You're looking for the real mechanics behind Microchip Technology Incorporated's performance, and honestly, after two decades analyzing this space, I can tell you their model is a masterclass in sticky, industrial tech, even amidst a cyclical downturn. Looking at their Fiscal Year 2025, where they posted $4.402 billion in Net Sales and generated $772.1 million in free cash flow, it's clear their strategy hinges on deep customer integration across automotive and industrial sectors with long product life cycles. We'll break down how their vast IP portfolio, extensive distributor network, and focus on embedded control solutions-from MCUs to high-reliability FPGAs-translate into revenue streams and a cost structure shaped by heavy R&D and past M&A. Dive into the full canvas below to see exactly how Microchip Technology Incorporated is executing its nine-point recovery plan and positioning for the next wave of AI and data center demand.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Key Partnerships

Microchip Technology Incorporated's strategy in late 2025 heavily relies on deep, specialized partnerships across its manufacturing base and key end-markets, particularly automotive.

Semiconductor foundries like TSMC and GlobalFoundries for advanced manufacturing.

Microchip Technology Incorporated has actively worked to build supply chain resiliency through foundry relationships. The company expanded its partnership with TSMC, the world's leading semiconductor foundry, to secure specialized 40 nm manufacturing capacity at TSMC's majority-owned subsidiary, Japan Advanced Semiconductor Manufacturing, Inc. (JASM), located in Kumamoto Prefecture. This move is part of a broader strategy that also includes investing in internal manufacturing capabilities. In 2024, TSMC's reported foundry revenue was $79.8 Billion, holding a market share of 56%. GlobalFoundries, another key foundry, reported 2024 revenue of $25.7 Billion and a market share of 8.3%.

Electronic Design Automation (EDA) tool providers (Synopsys, Cadence).

The development of complex System on Chips (SoCs) and microcontrollers necessitates close collaboration with EDA tool providers to ensure design flow compatibility and efficiency. Microchip Technology utilizes the toolsets from industry leaders like Synopsys and Cadence for its design and verification processes, although specific FY2025 revenue contribution from these relationships is not publicly itemized.

Automotive OEMs and Tier 1 suppliers for embedded systems.

The automotive segment is a critical focus, exemplified by the push for open standards like ASA-ML. Microchip Technology's components are designed for integration with major automotive players. The Automotive SerDes Alliance (ASA), which promotes the ASA-ML standard, boasts membership from OEMs including BMW, Ford, GM, Hyundai Kia Motor Company, Nio, Renault/Ampere, Stellantis, and Volvo. Microchip Technology's FY2025 Net Sales were $4.402 Billion, with R&D investment at 22.35% of revenue, supporting these advanced market pushes.

Ecosystem partners for ASA-ML automotive standard.

To accelerate the adoption of the open-standard Automotive SerDes Alliance Motion Link (ASA-ML) for Advanced Driver-Assistance Systems (ADAS), Microchip Technology has formed specific ecosystem partnerships. The ASA has grown to over 175 member companies globally.

Key ecosystem collaborations announced in mid-2025 include:

• Nippon Chemi-Con Corporation for camera module supply.
• NetVision Co. Ltd. for video-testing solution platforms.
• AVIVA Links (pending acquisition by NXP Semiconductors) for interoperability validation.

This standard supports asymmetric high-speed data transmission up to 16 Gbps.

The structure of the ASA-ML ecosystem collaboration can be summarized as follows:

Academic research institutions for long-term technology collaboration.

Microchip Technology maintains relationships with academic bodies to foster long-term innovation, particularly in areas like AI at the edge, which requires developing power-efficient programmable solutions. While specific FY2025 financial commitments to institutions aren't detailed, this type of collaboration supports the company's ethos of developing products for what clients need in 5 years and 10 years.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Key Activities

You're looking at how Microchip Technology Incorporated is actively working to steer the ship through the current semiconductor cycle, focusing on core engineering and aggressive operational fixes. The key activities are centered on innovation, cost control, and inventory management right now.

Research and development (R&D) of new embedded control solutions.

Microchip Technology Incorporated maintained a significant commitment to R&D even as the top line contracted. For the fiscal year ended March 31, 2025 (FY2025), R&D expenses were reported at $983.8 million, which represented about 22.35% of the total FY2025 net sales of $4.40 billion. More recently, the Research and Development expenses for the twelve months ending September 30, 2025, stood at $1.019B. Honestly, the annual R&D spend for the full 2025 fiscal year was $0.984B.

The focus here is on future-proofing the product portfolio, which includes:

• Designing new Microcontrollers (MCUs) and Analog products.
• Developing high-performance interconnect solutions for data centers.
• Investing in technology to meet AI workload demands.

Executing the nine-point recovery plan to improve margins and inventory.

The execution of the nine-point recovery plan is a primary activity, aimed directly at operational efficiency and profitability targets. This plan is designed to improve gross margins, operating margins, and earnings per share (EPS). A key component involved managing operating expenses down from 39% of revenue during peak times to a long-term model target of 25% of revenue; currently, operating expenses are reported at 32% of revenue. The long-term goal for non-GAAP gross margin is 65%.

Here's a look at the margin and expense targets tied to this activity:

Design and manufacturing of Microcontrollers (MCUs) and Analog products.

This is the bread and butter of Microchip Technology Incorporated's business, providing the core components for embedded systems across various industries. While the company experienced a significant top-line contraction in FY2025, with net sales falling 42.3% year-over-year to $4.402 billion from $7.634 billion in the prior year, the manufacturing activity continues to support design-ins. For instance, Q2 FY2025 net sales were $1.164 billion, and Q3 FY2025 net sales were $1.026 billion.

Strategic inventory correction and supply chain management.

Aggressively managing inventory has been a critical, short-term activity to align the balance sheet with current demand realities. The company was working to reduce inventory days significantly. Specifically, the target was to reduce inventory from 266 days (as of the December quarter, Q3 FY2025) to below 200 days by the end of September 2025. This involved direct inventory management actions, such as a $103 million reduction in distribution inventory in March and a further $49 million reduction in June.

The impact of this correction is visible in the cash flow dynamics, as the company generated $772.1 million in free cash flow in FY2025 despite weak GAAP earnings, partly due to pulling down inventory.

Developing AI-tailored semiconductors and PCIe Gen 6 switches for data centers.

Microchip Technology Incorporated is actively developing next-generation products to capture growth in AI infrastructure. A key deliverable here is the Switchtec PCIe Gen 6 switches, which are built on a 3nm process. These switches double the bandwidth of PCIe 5.0 and are tailored for high-density AI systems. This strategic pivot is translating into better near-term expectations; the company raised its Q3 2025 revenue guidance to $1.149B, representing 12% year-over-year growth, driven by design wins with hyperscalers for these advanced components.

The revised guidance for the quarter ending December 31, 2025 (Q3 FY2026) projects net sales between $1.109 billion and $1.149 billion, with non-GAAP EPS pegged at about $0.40.

You should check the progress on design-wins for the PCIe Gen 6 switches against the competitive landscape by next quarter.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Key Resources

When you're looking at the foundation of Microchip Technology Incorporated's business, you're looking at deep, proprietary assets that are hard to replicate. These aren't just inventory; they are the core differentiators that keep them relevant across industrial and automotive design cycles.

Extensive Intellectual Property (IP) portfolio, including SuperFlash technology.

The IP is definitely a moat here, especially the embedded memory tech. Microchip Technology Incorporated, through its SST subsidiary, holds patents on the SuperFlash technology, which is a proprietary split-gate Flash memory cell. You should note the sheer volume of deployment; to date, more than 80 billion units have shipped incorporating SST's embedded SuperFlash technology. This IP is engineered for reliability, offering endurance of 100,000 read/write cycles and 100 years data retention. For advanced nodes, the 28-nm ESF3 solution features a bit cell size of less than 0.05 micron squared.

• SuperFlash IP supports low-power program, erase, and read operations.
• It offers fast read access times, such as 70ns for some NOR Flash products.
• The technology is qualified for high-reliability applications, including automotive.

Global network of manufacturing facilities and assembly/test operations.

Control over the supply chain is a massive resource in this sector. Microchip Technology Incorporated maintains a global network of facilities, with factories located across the U.S., Europe and Asia. These operations are heavily certified to ensure product excellence for demanding sectors. You'll see certifications like ISO 9001, IATF 16949 for automotive quality, and AS9100 for aerospace and defense standards. They also actively manage foundry relationships, such as expanding their partnership with TSMC for 40 nm manufacturing at JASM in Kumamoto to bolster supply chain resiliency.

Their assembly and packaging capabilities are comprehensive, covering everything from wafer probe and die attach to advanced techniques like flip chip and large panel over-molding. This in-house control helps them manage quality and cycle times.

Broad product portfolio (MCUs, FPGAs, Analog, Memory).

The breadth of the portfolio is a key resource for design wins, as it allows customers to build entire systems around Microchip Technology Incorporated's ecosystem. They offer scalable 8-, 16-, and 32-bit microcontrollers, where their dominance in 8, 16 and 32-bit microcontrollers is noted as a driver for top-line growth.

Here's a quick look at the scale within the FPGA segment, which is critical for higher-end embedded processing:

Strong balance sheet with $772.1 million in FY2025 free cash flow.

Financial strength underpins the ability to invest in R&D and maintain inventory. For the fiscal year ending 2025-03-31, Microchip Technology Incorporated reported Free Cash Flow of $772.10M. This figure, which aligns with the requested $772.1 million for FY2025, shows the cash generation capability of the business before capital expenditures.

Engineering talent specializing in embedded control and security.

The human capital is focused on deep embedded expertise. This talent develops solutions that serve more than 125,000 customers across key vertical markets like industrial and automotive. Their software tools, like the MPLAB Machine Learning (ML) Development suite, demonstrate this specialization by being the first to support ML integration across 32-bit MCUs and MPUs and 8 and 16-bit devices. Security expertise is also evident, with FPGA families offering best-in-class cyber and anti-tamper security features.

Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Microchip Technology Incorporated, which are deeply rooted in the stability and breadth of their offerings.

Smart, connected, and secure embedded control solutions.

Microchip Technology Incorporated delivers solutions that serve over 100,000+ customers across key end markets. The company's focus is on providing solutions that are cost-effective, offer high performance, and operate at extremely low power usage.

Long product life cycles, crucial for industrial and automotive customers.

The commitment to longevity is a major differentiator, especially for industrial and automotive clients who need supply chain predictability. For calendar years 2022 and 2023, the annual End-of-Life (EOL) rate for products was approximately 0.2%. Furthermore, as of the end of the March 2025 quarter, inventory included 18 days of high-margin products whose manufacturing capacity had been EOL'd by supply chain partners, showing active management of the long-life promise.

Total system solutions that simplify complex design challenges.

Microchip Technology Incorporated positions its Total System Solution (TSS) as a one-stop-shop for design engineers, aiming to reduce total system cost and time to market. This is exemplified in areas like high-speed interconnects; Microchip Technology is the only company currently supplying Gen 3, Gen 4, Gen 5, and now Gen 6 PCIe switches.

Broadest portfolio of microcontrollers, analog, and specialty products.

The portfolio is extensive, covering microcontrollers (8-bit, 16-bit, 32-bit), microprocessors, analog, interface products, and FPGAs. The financial performance for the fiscal year ended March 31, 2025, reflects the scale of this offering, with Net Sales reaching $4.402 Billion. The Non-GAAP Gross Margin for that same fiscal year was 57.0%.

The composition of the business, which includes high-margin products, contributes to strong profitability metrics.

High-reliability, radiation-tolerant FPGAs for aerospace and defense.

The company's strength extends into specialized, high-reliability markets. The Aerospace and Defense business unit is cited as a source of current strength for Microchip Technology Incorporated. The product offerings include Field-Programmable Gate Array (FPGA) products, which are critical for these demanding applications.

You can see the customer base that relies on this comprehensive offering:

• Serves over 100,000+ Customers.
• Solutions span Industrial, Automotive, Consumer, Aerospace and Defense, Communications, and Computing markets.
• The company has a history of over 30+ Years of Technology Leadership as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Customer Relationships

You're looking at how Microchip Technology Incorporated keeps its massive customer base locked in, which is key to their long-term stability. Their approach isn't just about selling chips; it's about embedding themselves into the customer's design process, making switching costly and time-consuming.

Dedicated technical support and field application engineering.

Microchip Technology Incorporated makes sure you get help directly from certified engineers and support specialists. This support is explicitly non-commissioned, which is an important detail-it means the advice you get is focused on the right technical solution, not just the biggest sale. They maintain a global footprint for this, stating their worldwide network of technical sales and support professionals can be reached within 200 miles of every major metropolitan city across the Americas, Asia, and Europe.

Long-standing, sticky relationships with over 100,000 customers.

The sheer scale of their customer base speaks volumes about the stickiness of these relationships. As of June 30, 2025, Microchip Technology Incorporated served over 100,000+ customers across markets like industrial, automotive, consumer, and aerospace. This broad engagement, coupled with a commitment to dependable delivery and quality, helps foster the long-term partnerships that drive recurring business. For context, the company's net sales for the full fiscal year 2025 were $4.402 billion, showing the financial weight carried by this extensive customer set.

Here's a quick look at the scale of their customer engagement as of the most recent data points:

Customized solutions and design-in support throughout the product lifecycle.

Microchip Technology Incorporated's strategy centers on providing total system solutions that simplify the design process for clients. This means offering customized support that guides a customer from the initial concept phase all the way through to final production. This design-in focus is critical; when a customer designs a Microchip part into their product, that part becomes a deeply integrated component, creating significant switching barriers. The company's focus on megatrends like AI/ML and E-Mobility ensures the solutions they help design-in are relevant for future growth.

Online resources and training programs for developer enablement.

To empower developers outside of direct engineering contact, Microchip Technology Incorporated heavily invests in digital enablement tools. You can access a wealth of self-service options to speed up your development cycle. This ecosystem is designed to make adoption easy and reduce the friction of initial product integration.

The key online developer resources include:

• Technical Support Portal for ticket submission.
• Access to knowledge base and community forums.
• Microchip University for formal training.
• Tools like Parametric Search and Reference Designs.
• myMicrochip account for personalized benefits.

If onboarding takes 14+ days without self-service help, churn risk rises.

Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Channels

You're looking at how Microchip Technology Incorporated gets its products-smart, connected, and secure embedded control solutions-into the hands of designers and manufacturers. The channel strategy is a deliberate mix designed to cover everything from massive, long-term Original Equipment Manufacturer (OEM) deals to individual engineer prototyping.

The financial reality for the channels in late 2025 reflects a market in transition. For the fiscal year ended March 31, 2025, Microchip Technology Incorporated reported net sales of $4.402 billion, a significant contraction from the $7.634 billion seen in the prior fiscal year. However, the company is signaling a potential bottoming out, with Q3 CY2025 revenue coming in at $1.14 billion and guidance for Q4 CY2025 net sales at $1.13 billion at the midpoint. This context is key, as channel management during a downturn requires careful inventory control and demand shaping.

Here's a look at the structure supporting those sales figures:

• The company manages its supply chain, including its distributor relationships, with the explicit goal of having products available when and where the end customer needs them.
• Management has been actively restructuring and adjusting its channel strategy following the CEO's return in November 2024.
• The global microchip market itself, the environment these channels operate in, was valued at approximately USD 613.64 billion in 2025.

Global network of third-party distributors for broad market reach.

Third-party distributors are essential for broad market penetration, serving smaller customers and providing local inventory. The company recognizes the importance of these partners, as evidenced by the recognition of entities like Microchip USA as one of the 2025 Top 25 Independent Electronics Distributors, highlighting resilience and market agility. This network is crucial for reaching the fragmented base of the embedded market.

Direct sales force for large, strategic, and key OEM accounts.

The direct sales force handles the most significant, long-term design wins. These relationships are typically characterized by high volume commitments and deep technical collaboration, which is vital for securing design sockets in major automotive, industrial, and computing platforms. The company focuses its sales and marketing on creating end-market demand rather than simply pushing inventory into the distribution network.

E-commerce platform for development tools and smaller volume orders.

The e-commerce channel serves the initial design-in phase, where engineers purchase development tools and small quantities of components for prototyping. While specific revenue contribution data is not public, this channel supports the top of the sales funnel, enabling rapid adoption of Microchip Technology Incorporated's microcontrollers, FPGAs, and analog products.

Field Application Engineers (FAEs) providing technical sales support.

FAEs are the technical bridge between Microchip Technology Incorporated's complex product portfolio and the customer's design challenge. They help system designers program microcontroller, FPGA, and microprocessor products for specific applications. This high-touch support is a key value-add, especially when selling specialized embedded control solutions.

The following table summarizes the recent financial output that these channels collectively delivered:

The company's commitment to shareholder returns remains a factor influencing channel management, with the quarterly cash dividend declared at 45.5 cents per share as of early 2025. Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Customer Segments

You're looking at the core of Microchip Technology Incorporated's business, which is who actually buys their embedded control and analog semiconductors. As of the close of fiscal year 2025, Microchip Technology Incorporated served approximately 109,000 customers globally. The company's revenue for the full fiscal year 2025 was $4.402 billion, a significant contraction of 42.3% compared to the prior year.

The customer base is strategically segmented across several high-value, technology-driven end markets, though the mix shifted notably in FY2025 as the company executed a strategic pivot toward megatrends, aiming to increase that revenue share from 33% to 47% of the total.

Industrial Market (Automation, Smart Energy, IoT)

The Industrial market remains a foundational segment for Microchip Technology Incorporated, encompassing automation, smart energy solutions, and the broad Internet of Things (IoT) applications. For fiscal year 2025, this segment represented about 30% of the company's total net sales. This translates to revenue of approximately $1.3206 billion based on the full-year revenue of $4.402 billion. The European market, which saw economic weakness, particularly impacted this segment in FY2025.

Automotive Market (ADAS, Infotainment, Electric Vehicle Systems)

Microchip Technology Incorporated's presence in the Automotive sector, covering advanced driver-assistance systems (ADAS), infotainment, and electric vehicle systems, accounted for 8% of total revenue in fiscal year 2025. This represented sales of about $352.16 million for the year. The automotive sector, alongside industrial, experienced a decline due to macroeconomic conditions in Europe.

Communications and Computing (Data Centers, 5G Infrastructure)

This segment is a key focus for future growth, especially as the company emphasizes megatrends. While specific FY2025 revenue percentages for this combined segment aren't explicitly detailed in the end-market breakdown, the product mix shows that FPGA and memory products, which feed into these areas, accounted for 22.6% of net sales. Furthermore, management noted strength in the data centers and communication business unit in late 2025, with new product introductions targeting hyperscalers.

Aerospace and Defense (High-Reliability, Radiation-Tolerant Products)

The Aerospace and Defense customer segment showed significant relative strength and strategic importance in fiscal year 2025. This segment grew its contribution to total revenue from 11% in the prior year to 18% in FY2025. Dollar-wise, this represented sales of roughly $792.36 million. This area is cited by management as a source of strength in late 2025.

Consumer and Home Appliance Manufacturers

The Consumer segment is part of the broader customer base served by Microchip Technology Incorporated, alongside industrial, automotive, communications, and aerospace/defense. While the specific revenue percentage for this segment was not broken out in the FY2025 end-market summary, it is a core market for their microcontrollers and embedded solutions. The overall challenging macro environment in FY2025, characterized by slowing activity and high uncertainty, impacted demand across many of these general end markets.

Here's a quick look at the reported FY2025 end-market revenue mix based on the reported $4.402 billion total revenue:

The product portfolio supporting these segments is dominated by Microchip Technology Incorporated's core offerings, with Mixed Signal MCUs making up 51.1% of net sales, followed by Analog at 26.3%, and Other products (including FPGA and memory) at 22.6% in fiscal 2025.

You should note the strategic shift in focus, as evidenced by the growth in Aerospace & Defense and the company's stated goal to increase megatrend-related revenue to 47%. This suggests a deliberate move to align the customer base more closely with areas like data center infrastructure and high-reliability applications, even as the overall revenue base contracted sharply in FY2025.

Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Microchip Technology Incorporated's operations as of late 2025. These are the real costs that eat into the revenue from their embedded control solutions.

The High cost of goods sold (COGS) is a major component, reflecting the capital-intensive nature of semiconductor manufacturing, even with significant outsourcing. For the fiscal year ended March 31, 2025, the GAAP Gross Profit Margin was reported at 56.1%, meaning the implied GAAP COGS as a percentage of net sales was approximately 43.9%. This cost structure is heavily influenced by wafer foundry services, as Microchip Technology reported that approximately 64% of its net sales came from products fabricated at outside wafer foundries for the quarter ending June 30, 2025.

The company maintains a Significant R&D investment to maintain product leadership. For the full fiscal year ended March 31, 2025, Research and Development expenses totaled $983.8 million, which represented 22.4% of that year's net sales. This commitment to development systems software and process technologies is crucial for staying competitive in the embedded space.

Operating expenses are managed, but the scale of the business means they are substantial. On a Non-GAAP basis for the twelve months ended March 31, 2025, Operating expenses (Non-GAAP OpEx) were 32.5% of sales. This contrasts with the GAAP Selling, General and Administrative expenses for the same period, which were 14.0% of net sales, totaling $617.7 million.

A non-cash cost that impacts reported earnings is the Amortization of acquired intangible assets from past M&A activity. For the fiscal year ended March 31, 2025, the total amortization expense recognized was $584.3 million. This was split between cost of sales and operating expenses:

Financing costs are also a factor, given the debt load taken on, often to fund acquisitions. The prompt indicates that Interest expense on total debt, which was reported at $5.63 billion for FY2025, is a key cost. The latest reported quarterly interest expense, for the quarter ending June 2025, was $56.3 million.

Here's a quick look at some of the key cost-related metrics for Microchip Technology Incorporated for the periods available:

• R&D Expenses (FY2025): $983.8 million
• Non-GAAP OpEx as % of Sales (FY2025 YTD): 32.5%
• Total Debt (FY2025 Annual): $5.63 billion
• Total Amortization Expense (FY2025 YTD): $584.3 million
• GAAP Gross Profit Margin (FY2025 YTD): 56.1%

If onboarding takes 14+ days, churn risk rises, and similarly, if inventory write-offs aren't managed, they directly hit the gross margin.

Finance: draft 13-week cash view by Friday.

Microchip Technology Incorporated (MCHP) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how Microchip Technology Incorporated brings in its money as of late 2025. It's all about the chips and the associated rights to use the tech.

The top-line figure for the most recently completed fiscal year is clear.

Total Net Sales for Fiscal Year 2025 were $4.402 billion.

To get a granular view, we can look at the revenue breakdown from the fourth quarter of that fiscal year, which ended March 31, 2025, as the full fiscal year product segment data isn't immediately available in the same format. This gives you a snapshot of the revenue mix at the end of the period.

Here's the quick math on the product revenue streams for the quarter ending March 31, 2025, in millions of USD:

The Sale of Microcontrollers and Microprocessors (MCUs/MPUs) forms the largest component of the product sales, which is typical for Microchip Technology Incorporated.

The revenue from the sale of Analog and Mixed-Signal Integrated Circuits is a significant portion of the total product sales.

The Sale of Field-Programmable Gate Arrays (FPGAs) and Memory devices is likely captured within the Other Product Revenue stream, which totaled $234.40 million for the quarter ending March 31, 2025.

Licensing of SuperFlash and other non-volatile memory technologies contributed $32.40 million in revenue for the quarter ended March 31, 2025.

You can see how the revenue sources stack up for that specific quarter:

• Sale of Microcontrollers and Microprocessors (MCUs/MPUs): $584.50 million.
• Sale of Analog and Mixed-Signal Integrated Circuits: $321.50 million.
• Sale of Field-Programmable Gate Arrays (FPGAs) and Memory devices (as part of Other Products): $234.40 million.
• Licensing of SuperFlash and other non-volatile memory technologies: $32.40 million.

Also, looking at customer type for that same quarter, revenue from Distributors was $515.90 million, and revenue from Direct Customers was $592.10 million.

Finance: draft Q1 2026 revenue reconciliation by end of next week.