FAIR ISAAC CORP

Previous wording

•Total revenues were $691.7 million during the quarter ended March 31, 2026, a 39% increase from the quarter ended March 31, 2025, and $1.2 billion during the six months ended March 31, 2026, a 28% increase from the six months ended March 31, 2025.

Current wording

•Total revenues were $674.2 million during the quarter ended June 30, 2026, a 26% increase from the quarter ended June 30, 2025, and $1.9 billion during the nine months ended June 30, 2026, a 27% increase from the nine months ended June 30, 2025.

Previous wording

•Revenues for our Scores segment were $475.0 million during the quarter ended March 31, 2026, a 60% increase from the quarter ended March 31, 2025, and $779.5 million during the six months ended March 31, 2026, a 46% increase from the six months ended March 31, 2025.

Current wording

•Revenues for our Scores segment were $458.9 million during the quarter ended June 30, 2026, a 41% increase from the quarter ended June 30, 2025, and $1.2 billion during the nine months ended June 30, 2026, a 45% increase from the nine months ended June 30, 2025.

Previous wording

•Annual Recurring Revenue for our Software segment as of March 31, 2026 was $788.8 million, a 10% increase from March 31, 2025.

Current wording

•Annual Recurring Revenue for our Software segment as of June 30, 2026 was $815.8 million, a 10% increase from June 30, 2025.

Previous wording

•We issued $1.0 billion of senior notes during March 2026, and used the net proceeds to make a payment against the revolving line of credit and repay the $400 million of senior notes due in May 2026. Total debt balance was $3.6 billion as of March 31, 2026, compared with $3.1 billion as of September 30, 2025.

Current wording

•Total debt balance was $5.6 billion as of June 30, 2026, compared with $3.1 billion as of September 30, 2025.

Previous wording

•Total share repurchases during the quarter ended March 31, 2026 were $611.3 million, compared with $207.0 million during the quarter ended March 31, 2025, and during the six months ended March 31, 2026 were $773.9 million, compared with $366.8 million during the six months ended March 31, 2025.

Current wording

•Total share repurchases during the quarter ended June 30, 2026 were $2.3 billion, compared with $511.3 million during the quarter ended June 30, 2025, and during the nine months ended June 30, 2026 were $3.1 billion, compared with $878.1 million during the nine months ended June 30, 2025. The quarter and nine months ended June 30, 2026 included $1.5 billion paid under the ASR Agreement.

Previous wording

The following tables set forth certain summary information on a segment basis related to our revenues for the quarters and six-month periods ended March 31, 2026 and 2025:

Current wording

The following tables set forth certain summary information on a segment basis related to our revenues for the quarters and nine-month periods ended June 30, 2026 and 2025:

Previous wording

Scores segment revenues increased $246.8 million due to an increase of $241.4 million in our business-to-business scores revenue and an increase of $5.4 million in our business-to-consumer revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price and an increase in volume of mortgage originations. The increase in business-to-consumer scores revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.

Current wording

Scores segment revenues increased $134.6 million due to an increase of $131.6 million in our business-to-business scores revenue and an increase of $3.0 million in our business-to-consumer scores revenue. The increase in business-to-business scores revenue was primarily attributable to a higher mortgage origination scores unit price. The increase in business-to-consumer scores revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.

Previous wording

Software segment revenues increased $18.1 million due to a $17.6 million increase in our on-premises and SaaS software revenue and a $0.5 million increase in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in revenue recognized over time largely driven by SaaS growth for our Platform products.

Current wording

Software segment revenues increased $3.2 million due to a $9.1 million increase in our on-premises and SaaS software revenue, partially offset by a $5.9 million decrease in our professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in revenue recognized over time largely driven by SaaS growth for our Platform products, partially offset by a decrease in license revenue recognized at a point in time. The decrease in professional services revenue was primarily attributable to our strategy to emphasize higher-margin software over professional services.

Previous wording

Scores segment revenues increased $177.9 million due to an increase of $175.1 million in our business-to-business scores revenue and an increase of $2.8 million in our business-to-consumer scores revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price and an increase in volume of mortgage originations. The increase in business-to-consumer scores revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.

Current wording

Scores segment revenues increased $381.4 million due to an increase of $372.9 million in our business-to-business scores revenue and an increase of $8.5 million in our business-to-consumer scores revenue. The increase in business-to-business scores revenue was primarily attributable to both a higher unit price and an increase in volume of mortgage origination scores. The increase in business-to-consumer scores revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.

Previous wording

Software segment revenues increased $15.0 million due to a $15.4 million increase in our on-premises and SaaS software revenue, partially offset by a $0.4 million decrease in our professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in revenue recognized over time largely driven by SaaS growth for our Platform products.

Current wording

Software segment revenues increased $21.3 million due to a $26.7 million increase in our on-premises and SaaS software revenue, partially offset by a $5.3 million decrease in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in revenue recognized over time largely driven by SaaS growth for our Platform products, partially offset by a decrease in license revenue recognized at a point in time. The decrease in professional services revenue was primarily attributable to our strategy to emphasize higher-margin software over professional services.

Previous wording

The following tables set forth certain summary information related to our condensed consolidated statements of income and comprehensive income for the quarters and six-month periods ended March 31, 2026 and 2025:

Current wording

The following tables set forth certain summary information related to our condensed consolidated statements of income and comprehensive income for the quarters and nine-month periods ended June 30, 2026 and 2025:

Previous wording

The quarter-over-prior year quarter increase in cost of revenues of $3.6 million was primarily attributable to a $3.0 million increase in infrastructure and facilities costs and a $0.6 million increase in personnel, labor and other costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. Cost of revenues as a percentage of revenues decreased to 13% during the quarter ended March 31, 2026 from 18% during the quarter ended March 31, 2025, primarily due to increased sales of our higher-margin Scores products.

Current wording

Cost of revenues remained consistent quarter-over-prior year quarter. Cost of revenues as a percentage of revenues decreased to 13% during the quarter ended June 30, 2026 from 16% during the quarter ended June 30, 2025, primarily due to increased sales of our higher-margin Scores products.

Previous wording

The year-to-date period-over-period increase in cost of revenues of $3.5 million was primarily attributable to a $4.7 million increase in infrastructure and facilities costs, partially offset by a $1.2 million decrease in direct materials and other costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. The decrease in direct materials and other costs was primarily attributable to decreased telecommunications costs that support FICO® Customer Communications Services revenue. Cost of revenues as a percentage of revenues decreased to 15% during the six months ended March 31, 2026 from 19% during the six months ended March 31, 2025, primarily due to increased sales of our higher-margin Scores products.

Current wording

The year-to-date period-over-period increase in cost of revenues of $2.9 million was primarily attributable to a $6.9 million increase in infrastructure and facilities costs, partially offset by a $2.9 million decrease in personnel and labor costs and a $1.1 million decrease in direct materials and other costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. The decrease in personnel and labor costs was primarily attributable to decreased headcount. The decrease in direct materials and other costs was primarily attributable to decreased telecommunications costs that support FICO® Customer Communications Services revenue. Cost of revenues as a percentage of revenues decreased to 14% during the nine months ended June 30, 2026 from 18% during the nine months ended June 30, 2025, primarily due to increased sales of our higher-margin Scores products.

Previous wording

The quarter-over-prior year quarter increase in research and development expenses of $8.9 million was primarily attributable to a $6.0 million increase in infrastructure and facilities costs and a $4.8 million increase in personnel and labor costs, partially offset by a $1.9 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased headcount and increased incentive costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues decreased to 8% during the quarter ended March 31, 2026 from 9% during the quarter ended March 31, 2025.

Current wording

The quarter-over-prior year quarter increase in research and development expenses of $6.5 million was primarily attributable to a $5.4 million increase in infrastructure and facilities costs and a $2.2 million increase in personnel and labor costs, partially offset by a $1.1 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased incentive costs, increased fringe benefit costs related to our deferred compensation plan, and increased share-based compensation costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues decreased to 8% during the quarter ended June 30, 2026 from 9% during the quarter ended June 30, 2025.

Previous wording

The year-to-date period-over-period increase in research and development expenses of $13.6 million was primarily attributable to a $10.0 million increase in infrastructure and facilities costs and a $7.2 million increase in personnel and labor costs, partially offset by a $3.6 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, and increased incentive costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues decreased to 9% during the quarter ended March 31, 2026 from 10% during the quarter ended March 31, 2025.

Current wording

The year-to-date period-over-period increase in research and development expenses of $20.1 million was primarily attributable to a $15.5 million increase in infrastructure and facilities costs and a $9.4 million increase in personnel and labor costs, partially offset by a $4.8 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased incentive costs, increased headcount, and increased share-based compensation costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues remained consistent at 9% during each of the nine months ended June 30, 2026 and 2025.

Previous wording

The quarter-over-prior year quarter increase in selling, general and administrative expenses of $23.7 million was primarily attributable toa$15.8 million increase in personnel and labor costs and a $7.9 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, increased incentive costs, and increased commission costs. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs. Selling, general and administrative expenses as a percentage of revenues decreased to 21% during the quarter ended March 31, 2026 from 24% during the quarter ended March 31, 2025.

Current wording

The quarter-over-prior year quarter increase in selling, general and administrative expenses of $31.7 million was primarily attributable toa$25.6 million increase in personnel and labor costs and a $6.1 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased share-based compensation costs, increased headcount, increased fringe benefit costs related to our deferred compensation plan, increased incentive costs, and increased commission costs. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs. Selling, general and administrative expenses as a percentage of revenues decreased to 25% during the quarter ended June 30, 2026 from 26% during the quarter ended June 30, 2025.

Previous wording

The year-to-date period-over-period increase in selling, general and administrative expenses of $36.5 million was primarily attributable to a $24.8 million increase in personnel and labor costs and an $11.7 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, and increased commission costs. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs, increased third-party consulting costs, and increased third-party contractor costs. Selling, general and administrative expenses as a percentage of revenues decreased to 23% during the six months ended March 31, 2026 from 26% during the six months ended March 31, 2025.

Current wording

The year-to-date period-over-period increase in selling, general and administrative expenses of $68.2 million was primarily attributable to a $50.4 million increase in personnel and labor costs, a $13.9 million increase in marketing and other costs, and a $3.9 million increase in outside services costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, increased commission costs, increased incentive costs, and increased fringe benefit costs related to our deferred compensation plan. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs. The increase in outside services costs was primarily attributable to increased third-party consulting costs. Selling, general and administrative expenses as a percentage of revenues decreased to 24% during the nine months ended June 30, 2026 from 26% during the nine months ended June 30, 2025.

Previous wording

Interest expense includes interest on the senior notes issued in March 2026, May 2025, December 2021, December 2019 and May 2018, as well as interest and credit agreement fees on the revolving line of credit and, for the prior year quarter and prior year-to-date period, term loans. On our condensed consolidated statements of income and comprehensive income, interest expense is netted with interest income, which is derived primarily from the investment of funds in excess of our immediate operating requirements.

Current wording

Interest expense includes interest on the senior notes issued in March 2026, May 2025, December 2021, December 2019 and May 2018, as well as interest and credit agreement fees on the revolving line of credit and term loans. On our condensed consolidated statements of income and comprehensive income, interest expense is netted with interest income, which is derived primarily from the investment of funds in excess of our immediate operating requirements.

Previous wording

The quarter-over-prior year quarter increase in net interest expense of $13.2 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below) and the $1.0 billion of 2026 Senior Notes (as defined below), partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the quarter ended March 31, 2026.

Current wording

The quarter-over-prior year quarter increase in interest expense, net of $27.0 million was primarily attributable to a higher average outstanding debt balance during the quarter ended June 30, 2026. The higher average debt balance was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below), the $1.0 billion of 2026 Senior Notes (as defined below), the $1.5 billion term loan issued during June 2026, and a higher average outstanding balance on borrowings under our revolving line of credit.

Previous wording

The year-to-date period-over-period increase in interest expense of $25.7 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below) and the $1.0 billion of 2026 Senior Notes (as defined below), partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the six months ended March 31, 2026.

Current wording

The year-to-date period-over-period increase in interest expense, net of $52.7 million was primarily attributable to a higher average outstanding debt balance during the nine months ended June 30, 2026. The higher average debt balance was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below) and the $1.0 billion of 2026 Senior Notes (as defined below).

Previous wording

Other expense, net consists primarily of unrealized investment gains/losses and realized gains/losses on marketable securities classified as trading securities, exchange rate gains/losses resulting from remeasurement of foreign-currency-denominated receivables and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates, net of the impact of offsetting foreign currency forward contracts, and other non-operating items.

Current wording

Other income, net consists primarily of unrealized investment gains/losses and realized gains/losses on marketable securities classified as trading securities, exchange rate gains/losses resulting from remeasurement of foreign-currency-denominated receivables and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates, net of the impact of offsetting foreign currency forward contracts, and other non-operating items.

Previous wording

The effective income tax rate was 25.7% and 23.7% during the quarters ended March 31, 2026 and 2025, respectively, and 22.8% and 13.2% during the six months ended March 31, 2026 and 2025, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution.

Current wording

The effective income tax rate was 24.6% and 23.3% during the quarters ended June 30, 2026 and 2025, respectively, and 23.5% and 17.2% during the nine months ended June 30, 2026 and 2025, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution.

Previous wording

The effective tax rates for the quarters and six months ended March 31, 2026 and 2025 were favorably impacted by the recording of excess tax benefits relating to stock awards. The impact is dependent upon grants of share-based compensation and the future stock price in relation to the fair value of awards on the grant date. The decrease in stock price for awards that vested in December 2025 resulted in a decreased net excess tax benefit for the six months ended March 31, 2026.

Current wording

The effective tax rates for the quarters and nine months ended June 30, 2026 and 2025 were favorably impacted by the recording of excess tax benefits relating to stock awards. The impact is dependent upon grants of share-based compensation and the future stock price in relation to the fair value of awards on the grant date. The decrease in stock price for awards that vested in December 2025 resulted in a decreased net excess tax benefit for the nine months ended June 30, 2026.

Previous wording

The quarter-over-prior year quarter increase in operating income of $156.8 million was primarily attributable to a $192.9 million increase in segment revenues, partially offset by a $26.2 million increase in segment operating expenses, a $6.3 million increase in corporate expenses, and a $3.6 million increase in share-based compensation expense.

Current wording

The quarter-over-prior year quarter increase in operating income of $100.1 million was attributable to a $137.8 million increase in segment revenues, partially offset by an $18.5 million increase in segment operating expenses, a $10.4 million increase in share-based compensation expense, and an $8.8 million increase in corporate expenses.

Previous wording

At the segment level, the quarter-over-prior year quarter increase in segment operating income of $166.8 million was the result of a $167.5 million increase in our Scores segment operating income, partially offset by a $0.7 million decrease in our Software segment operating income.

Current wording

At the segment level, the quarter-over-prior year quarter increase in segment operating income of $119.3 million was the result of a $132.2 million increase in our Scores segment operating income, partially offset by a $12.9 million decrease in our Software segment operating income.

Previous wording

The quarter-over-prior year quarter increase in Scores segment operating income of $167.5 million was due to a $177.9 million increase in segment revenue, partially offset by a $10.4 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 91% from 89%, primarily due to higher business-to-business scores revenue driven by a higher unit price and an increase in volume of mortgage originations.

Current wording

The quarter-over-prior year quarter increase in Scores segment operating income of $132.2 million was due to a $134.6 million increase in segment revenue, partially offset by a $2.4 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 91% from 88%, primarily due to higher business-to-business scores revenue driven by a higher mortgage origination scores unit price.

Previous wording

The quarter-over-prior year quarter decrease in Software segment operating income of $0.7 million was due to a $15.7 million increase in segment operating expenses, partially offset by a $15.0 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 29% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.

Current wording

The quarter-over-prior year quarter decrease in Software segment operating income of $12.9 million was due to a $16.1 million increase in segment operating expenses, partially offset by a $3.2 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 26% from 32%, primarily attributable to a decrease in sales of higher-margin software recognized at a point in time and an increase in third-party data center hosting costs.

Previous wording

The following tables set forth certain summary information on a segment basis related to our operating income for the quarters and six-month periods ended March 31, 2026 and 2025:

Current wording

The following tables set forth certain summary information on a segment basis related to our operating income for the nine-month periods ended June 30, 2026 and 2025:

Previous wording

The year-to-date period-over-period increase of $211.3 million in operating income was primarily attributable to a $264.9 million increase in segment revenues, partially offset by a $36.2 million increase in segment operating expenses, a $10.2 million increase in corporate expenses, and a $7.2 million increase in share-based compensation expense.

Current wording

The year-to-date period-over-period increase of $311.4 million in operating income was attributable to a $402.7 million increase in segment revenues, partially offset by a $54.7 million increase in segment operating expenses, an $18.9 million increase in corporate expenses, and a $17.7 million increase in share-based compensation expense.

Previous wording

At the segment level, the year-to-date period-over-period increase of $228.7 million in segment operating income was the result of a $231.6 million increase in our Scores segment operating income, partially offset by a $2.9 million decrease in our Software segment operating income.

Current wording

At the segment level, the year-to-date period-over-period increase of $348.0 million in segment operating income was the result of a $363.8 million increase in our Scores segment operating income, partially offset by a $15.8 million decrease in our Software segment operating income.

Previous wording

The year-to-date period-over-period $231.6 million increase in Scores segment operating income was attributable to a $246.8 million increase in segment revenue, partially offset by a $15.2 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 90% from 88%, primarily due to higher business-to-business scores revenue driven by a higher unit price and an increase in volume of mortgage originations.

Current wording

The year-to-date period-over-period $363.8 million increase in Scores segment operating income was attributable to a $381.4 million increase in segment revenue, partially offset by a $17.6 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 90% from 88%, primarily due to higher business-to-business scores revenue driven by both a higher unit price and an increase in volume of mortgage origination scores.

Previous wording

The year-to-date period-over-period $2.9 million decrease in Software segment operating income was due to a $21.0 million increase in segment operating expenses, partially offset by an $18.1 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 29% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.

Current wording

The year-to-date period-over-period $15.8 million decrease in Software segment operating income was due to a $37.1 million increase in segment operating expenses, partially offset by a $21.3 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 28% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.

Previous wording

As of March 31, 2026, we had $219.4 million in cash and cash equivalents, which included $104.0 million held by our foreign subsidiaries. We believe our cash and cash equivalents balances, including those held by our foreign subsidiaries, as well as available borrowings from our $1.0 billion revolving line of credit and anticipated cash flows from operating activities, will be sufficient to fund our working and other capital requirements for at least the next 12 months and thereafter for the foreseeable future. Under our current financing arrangements, we have no significant debt obligations maturing over the next 12 months. For jurisdictions outside the U.S. where cash may be repatriated in the future, the Company expects the net impact of any repatriations to be immaterial to the Company’s overall tax liability.

Current wording

As of June 30, 2026, we had $248.4 million in cash and cash equivalents, which included $139.8 million held by our foreign subsidiaries. We believe our cash and cash equivalents balances, including those held by our foreign subsidiaries, as well as available borrowings from our $1.0 billion revolving line of credit and anticipated cash flows from operating activities, will be sufficient to fund our working and other capital requirements for at least the next 12 months and thereafter for the foreseeable future, including the $300.0 million principal payments due on our term loan over the next 12 months. Under our current financing arrangements, we have no other significant debt obligations maturing over the next 12 months. For jurisdictions outside the U.S. where cash may be repatriated in the future, the Company expects the net impact of any repatriations to be immaterial to the Company’s overall tax liability.

Previous wording

Our primary method for funding operations and growth has been through cash flows generated from operating activities. Net cash provided by operating activities increased to $397.4 million during the six months ended March 31, 2026 from $268.9 million during the six months ended March 31, 2025. The $128.5 million increase was attributable to a $107.7 million increase in net income and a $35.9 million increase in non-cash items, partially offset by a $15.1 million decrease due to the timing of receipts and payments in our ordinary course of business.

Current wording

Our primary method for funding operations and growth has been through cash flows generated from operating activities. Net cash provided by operating activities increased to $777.9 million during the nine months ended June 30, 2026 from $555.1 million during the nine months ended June 30, 2025. The $222.7 million increase was attributable to a $163.1 million increase in net income and a $60.9 million increase in non-cash items, partially offset by a $1.3 million decrease due to the timing of receipts and payments in our ordinary course of business.

Previous wording

Net cash used in investing activities increased to $21.1 million for the six months ended March 31, 2026 from $19.9 million for the six months ended March 31, 2025. The $1.3 million increase was primarily attributable to a $3.6 million increase in capitalized internal-use software costs, partially offset by a $2.5 million decrease in purchases of property and equipment.

Current wording

Net cash used in investing activities increased to $39.3 million for the nine months ended June 30, 2026 from $30.4 million for the nine months ended June 30, 2025. The $8.9 million increase was attributable to a $4.7 million increase in capitalized internal-use software costs and a $12.8 million increase in purchases of other investments, partially offset by a $5.2 million increase in proceeds from sales, net of purchases, of marketable securities and a $3.4 million decrease in purchases of property and equipment.

Previous wording

Net cash used in financing activities increased to $289.2 million for the six months ended March 31, 2026 from $247.7 million for the six months ended March 31, 2025. The $41.5 million increase was primarily attributable to a $396.8 million increase in repurchases of common stock, a $327.5 million increase in payments, net of proceeds, on our revolving line of credit and term loans, and the $400.0 million repayment of 2018 Senior Notes (as defined below), partially offset by the proceeds from the issuance of our $1.0 billion 2026 Senior Notes (as defined below) and a $92.8 million decrease in taxes paid related to net share settlement of equity awards.

Current wording

Net cash used in financing activities increased to $622.3 million for the nine months ended June 30, 2026 from $486.8 million for the nine months ended June 30, 2025. The $135.6 million increase was primarily attributable to a $2.2 billion increase in repurchases of common stock (including the $1.5 billion paid under the ASR Agreement in the nine months ended June 30, 2026), a $500.0 million decrease in proceeds from issuance of senior notes, and the $400.0 million repayment of 2018 Senior Notes (as defined below), partially offset by a $2.9 billion increase in proceeds, net of payments, from the revolving line of credit and term loans, and a $91.9 million decrease in taxes paid related to net share settlement of equity awards.

Previous wording

In June 2025, our Board of Directors approved a stock repurchase program (the “June 2025 program”), replacing our previously authorized July 2024 stock repurchase program, which was terminated prior to its expiration. The June 2025 program was open-ended and authorized repurchases of shares of our common stock from time to time up to an aggregate cost of $1.0 billion in the open market or in negotiated transactions. In February 2026, our Board of Directors approved a new stock repurchase program (the “February 2026 program”), replacing the June 2025 program, which was terminated prior to its expiration. The February 2026 program is open-ended and authorizes repurchases of shares of our common stock from time to time up to an aggregate cost of $1.5 billion in the open market or in negotiated transactions. The February 2026 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors. As of March 31, 2026, we had $1.1 billion remaining under the February 2026 program. We expended $611.3 million and $773.9 million during the quarter and six months ended March 31, 2026, respectively, under the June 2025 program and the February 2026 program. We expended $207.0 million and $366.8 million during the quarter and six months ended March 31, 2025, respectively, under previously authorized stock repurchase programs.

Current wording

In June 2025, our Board of Directors approved a stock repurchase program (the “June 2025 program”), replacing our previously authorized July 2024 stock repurchase program, which was terminated prior to its expiration. The June 2025 program was open-ended and authorized repurchases of shares of our common stock from time to time up to an aggregate cost of $1.0 billion in the open market or in negotiated transactions. In February 2026, our Board of Directors approved a stock repurchase program (the “February 2026 program”), replacing the June 2025 program, which was terminated prior to its expiration. The February 2026 program was open-ended and authorized repurchases of shares of our common stock from time to time up to an aggregate cost of $1.5 billion in the open market or in negotiated transactions. In June 2026, our Board of Directors approved a stock repurchase program (the “June 2026 program”), replacing the February 2026 program, which was terminated prior to its expiration. The June 2026 program is open-ended and authorizes repurchases of shares of our common stock from time to time up to an aggregate cost of $2.0 billion in the open market, in negotiated transactions or through accelerated share repurchase programs. The June 2026 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors.

Previous wording

We have a $1.0 billion unsecured revolving line of credit with a syndicate of banks that matures on May 13, 2030. Borrowings under the revolving line of credit can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Interest rates on amounts borrowed under the revolving line of credit are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) the Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 1%, plus, in each case, an applicable margin, (ii) the Daily Simple SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement), or (iii) term SOFR (without a credit spread adjustment) plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). The applicable margin for base rate borrowings and for SOFR borrowings is determined based on our consolidated leverage ratio. The applicable margin for base rate borrowings ranges from 0% to 0.75% per annum and for SOFR borrowings ranges from 1% to 1.75% per annum. In addition, we must pay certain credit facility fees. The credit agreement contains certain restrictive covenants including a maximum consolidated leverage ratio of 3.5 to 1.0, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and contains other covenants typical of an unsecured credit facility.

Current wording

We have a credit agreement with a syndicate of banks that provides for a $1.0 billion unsecured revolving line of credit that matures on May 13, 2030. On June 5, 2026, we amended our credit agreement to provide for the issuance of a $1.5 billion unsecured term loan that was borrowed in full on June 5, 2026 and matures on May 15, 2028. The credit agreement also provides for an option for us to request additional incremental term loans and/or incremental increases to the revolving line of credit from time to time, in each case subject to the terms and conditions of the credit agreement. Borrowings under the credit agreement can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Principal on the term loan is to be repaid in consecutive quarterly installments on the last business day of March, June, September, and December equal to (i) $75.0 million from September 30, 2026 through and including June 30, 2027 and (ii) $112.5 million thereafter. Interest rates on amounts borrowed under the revolving line of credit and term loan are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) the Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 1%, plus, in each case, an applicable margin, (ii) the Daily Simple SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement), or (iii) term SOFR (without a credit spread adjustment) plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). The applicable margin for base rate borrowings and for SOFR borrowings for the loans under the credit agreement is determined based on our consolidated leverage ratio. The applicable margin for loans under the revolving line of credit for base rate borrowings ranges from 0% to 1% per annum and for SOFR borrowings ranges from 1% to 2% per annum. The applicable margin for the term loan for base rate borrowings ranges from 0.5% to 1.25% per annum and for SOFR borrowings ranges from 1.5% to 2.25% per annum. In addition, we must pay certain credit agreement fees. The credit agreement contains certain restrictive covenants including a maximum consolidated leverage ratio of 4.5 to 1.0 through December 30, 2026, 4.0 to 1.0 during December 31, 2026 through December 30, 2027, and 3.5 to 1.0 during December 31, 2027 and thereafter, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and contains other covenants typical of an unsecured credit facility.

Previous wording

As of March 31, 2026, we had $265.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 4.931%, and we were in compliance with all financial covenants under the credit agreement.

Current wording

As of June 30, 2026, we had $710.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 5.643% and $1.5 billion in outstanding balance of the term loan at an interest rate of 5.863%, and we were in compliance with all financial covenants under the credit agreement.

Previous wording

On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes required interest payments semi-annually at a rate of 5.25% per annum and were to mature on May 15, 2026. On March 26, 2026, prior to the maturity date, we repaid in full the 2018 Senior Notes, utilizing proceeds from the issuance of the 2026 Senior Notes (as defined below). On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes. On May 13, 2025, we issued $1.5 billion of senior notes in a private offering to qualified institutional investors (the “2025 Senior Notes”). The 2025 Senior Notes require interest payments semi-annually at a rate of 6.00% per annum and will mature on May 15, 2033. On March 20, 2026, we issued $1.0 billion of senior notes in a private offering to qualified institutional investors (the “2026 Senior Notes,” and collectively with the 2018 Senior Notes, the 2019 Senior Notes, the 2021 Senior Notes, and the 2025 Senior Notes, the “Senior Notes”). The 2026 Senior Notes require interest payments semi-annually at a rate of 6.25% per annum and will mature on September 15, 2034. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations. As of March 31, 2026, the carrying value of the Senior Notes was $3.4 billion and we were in compliance with all financial covenants under these obligations.

Current wording

On May 8, 2018, we issued $400.0 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes required interest payments semi-annually at a rate of 5.25% per annum and were to mature on May 15, 2026. On March 26, 2026, prior to the maturity date, we repaid in full the 2018 Senior Notes, utilizing proceeds from the issuance of the 2026 Senior Notes (as defined below). On December 6, 2019, we issued $350.0 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. On December 17, 2021, we issued $550.0 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes. On May 13, 2025, we issued $1.5 billion of senior notes in a private offering to qualified institutional investors (the “2025 Senior Notes”). The 2025 Senior Notes require interest payments semi-annually at a rate of 6.00% per annum and will mature on May 15, 2033. On March 20, 2026, we issued $1.0 billion of senior notes in a private offering to qualified institutional investors (the “2026 Senior Notes,” and collectively with the 2018 Senior Notes, the 2019 Senior Notes, the 2021 Senior Notes, and the 2025 Senior Notes, the “Senior Notes”). The 2026 Senior Notes require interest payments semi-annually at a rate of 6.25% per annum and will mature on September 15, 2034. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations. As of June 30, 2026, the carrying value of the Senior Notes was $3.4 billion and we were in compliance with all financial covenants under these obligations.