Chinese Market ConcernsEMBC expressed near-term concern about the Chinese market, where distributors have reported customers buying more local Chinese brands as a result of tariffs and recent geopolitical tensions.
Geopolitical TensionsF4Q revenue guide implies a sequential stepdown due to the timing of distributor orders, expected reversal of stocking benefits, and potential geopolitical tensions affecting revenue from China.
Revenue GuidanceThe full-year guide implies a ~$30M sequential decrease in revenue for F4Q at the midpoint, reflecting the reversal of the benefits from timing of distributor orders and stocking in F3Q, in addition to rebate reserve adjustments.