OMNICELL, INC.

Previous wording

•availability and sources of raw materials and components, in particular with regard to semiconductor chips, price fluctuations and an inability to pass increased costs on to our customers, or shortages or interruptions of supply;

Current wording

•availability, cost and sources of raw materials and components, in particular with regard to semiconductor chips, price fluctuations and an inability to pass increased costs on to our customers, or shortages or interruptions of supply;

Previous wording

Omnicell, a leading healthcare technology provider focused on empowering autonomous medication management, is committed to solving the critical challenges inherent in medication management and elevating the role of clinicians within healthcare as an essential component of care delivery. Omnicell is focused on helping its customers define and deliver a cost-effective medication management strategy designed to equip and empower pharmacists and nurses to focus on patient care rather than administrative tasks, and to drive improved clinical, operational, and financial outcomes across all care settings. We are doing this with an industry-leading medication management infrastructure which includes storage and dispensing automation powered by an intelligence ecosystem. Our comprehensive set of solutions provides the critical foundation for customers to realize the Autonomous Pharmacy, an industry-wide vision defined by pharmacy leaders for improving operational efficiencies and ultimately targeting zero-error medication management alongside 5 other outcomes laid out in the Autonomous Pharmacy framework.

Current wording

Omnicell, a leading healthcare technology provider focused on advancing autonomous medication management, is committed to solving the critical challenges inherent in medication management and elevating the role of clinicians within healthcare as an essential component of care delivery. Omnicell is focused on helping its customers define and deliver a cost-effective medication management strategy designed to equip and empower pharmacists and nurses to focus on patient care rather than administrative tasks, and to drive improved clinical, operational, and financial outcomes across the patient care journey. We are doing this with an industry-leading medication management infrastructure which includes storage and dispensing automation powered by an intelligence ecosystem. Our products and services are designed to connect intelligence, inform decisions, and ensure consistent processes across the medication journey, empowering healthcare organizations worldwide to improve efficiency, enhance safety, strengthen financial performance, and deliver better experiences for patients and care teams.

Previous wording

Our business has expanded from a single-point solution to a platform of products and services that will help further advance the industry-defined vision of the Autonomous Pharmacy. This expansion has resulted in larger deal sizes across multiple products, services, and implementations for customers and, we believe, more comprehensive, valuable, and enduring relationships. As our business evolves, we continue to evaluate the metrics and methods we use to measure the success of our business.

Current wording

Our business has expanded from a single-point solution to a platform of products and services designed to advance autonomous medication management. This expansion has resulted in larger deal sizes across multiple products, services, and implementations for customers and, we believe, more comprehensive, valuable, and enduring relationships. As our business evolves, we continue to evaluate the metrics and methods we use to measure the success of our business.

Previous wording

Omnicell solutions are helping healthcare facilities worldwide to uncover cost savings, improve labor efficiency, establish new revenue streams, enhance supply chain control, support compliance, and move closer to the industry-defined vision of the Autonomous Pharmacy. We sell our hardware, software, and consumable solutions together with related service offerings. Revenues generated in the United States represented 90% and 91% of our total revenues for the three months ended June 30, 2026 and 2025, respectively, and 90% and 92% of our total revenues for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Revenues generated in the United States represented 88% and 90% of our total revenues for the three months ended September 30, 2026 and 2025, respectively, and 89% and 91% of our total revenues for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

In recent years, the U.S. government has advocated for, and in certain cases implemented, greater restrictions on trade. For example, in 2025 and 2026, the U.S. imposed or announced tariffs and other trade measures on a wide variety of products manufactured in multiple foreign jurisdictions, including China, Mexico, and Malaysia, andseveral foreign countries have imposed or threatened reciprocal tariffs on goods manufactured in the United States. These tariff rates have fluctuated and may continue to fluctuate going forward. In an effort to address these actions, we have implemented various mitigation measures, including dual-sourcing of components and nearshoring manufacturing. While these actions have effectively mitigated some of the impact of these costs, there can be no assurance that we will be able to offset future increased costs or other adverse impacts. Although we continue to work to mitigate the impact of current or potential tariffs, we may incorrectly anticipate outcomes, forgo or pass up business opportunities, or fail to appropriately adapt or manage our business strategies in response to these changes. As a result of these factors, we may experience direct and indirect adverse effects on our business, operating results, cash flow, or financial condition.

Current wording

In recent years, the U.S. government has advocated for, and in certain cases implemented, greater restrictions on trade. For example, in 2025 and 2026, the U.S. imposed or announced tariffs and other trade measures on a wide variety of products manufactured in multiple foreign jurisdictions, including China, Mexico, and Malaysia, and several foreign countries have imposed or threatened reciprocal tariffs on goods manufactured in the United States. These tariff rates have fluctuated and may continue to fluctuate going forward. In an effort to address these actions, we have implemented various mitigation measures, including dual-sourcing of components and nearshoring manufacturing. While these actions have effectively mitigated some of the impact of these costs, there can be no assurance that we will be able to offset future increased costs or other adverse impacts. Although we continue to work to mitigate the impact of current or potential tariffs, we may incorrectly anticipate outcomes, forgo or pass up business opportunities, or fail to appropriately adapt or manage our business strategies in response to these changes. As a result of these factors, we may experience direct and indirect adverse effects on our business, operating results, cash flow, or financial condition.

Previous wording

On February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). Subsequent to this ruling the U.S. Court of International Trade issued an order that directed the U.S. Customs and Border Protection (“CBP”) to formalize a process for refunding IEEPA tariffs. On April 20, 2026, the CBP launched an online portal to submit IEEPA tariff refund requests. Submitted requests are reviewed by the CBP to determine validity prior to the issuance of any refund. During the second quarter of 2026, the Company received $14.5 million in refunds for previously paid IEEPA tariffs, which were recorded primarily as a reduction to cost of product revenues. The Company does not expect any additional refunds potentially collectible in the future for IEEPA tariffs paid through the U.S. Supreme Court’s February 20, 2026 ruling to be material.

Current wording

On February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). Subsequent to this ruling the U.S. Court of International Trade issued an order that directed the U.S. Customs and Border Protection (“CBP”) to formalize a process for refunding IEEPA tariffs. On April 20, 2026, the CBP launched an online portal to submit IEEPA tariff refund requests. During the second quarter of 2026, the Company received $14.5 million in refunds for previously paid IEEPA tariffs, which were recorded primarily as a reduction to cost of product revenues. The Company does not expect any additional refunds potentially collectible in the future for IEEPA tariffs paid through the U.S. Supreme Court’s February 20, 2026 ruling to be material.

Previous wording

In response to the Supreme Court’s ruling, effective February 24, 2026, a new 10% tariff for all imports under Section 122 of the Trade Act of 1974 was imposed, subject to applicable exclusions, including exclusions for qualifying products under the United States-Mexico-Canada Agreement. These tariffs were expected to remain in effect for 150 days, the maximum period that Section 122 permits without congressional action and subsequently expired on July 24, 2026. Effective July 24, 2026, the U.S. implemented or announced replacement tariffs under Section 301 of the Trade Act of 1974, at rates generally ranging from 10% to 12.5%, which are intended to replace the expired Section 122 tariffs. At this time, we do not currently expect these recent tariff changes to have a material impact on our business, operating results, cash flow or financial condition. However, the scope, rate, duration, legality and implementation of existing or future tariffs remain uncertain, and additional tariff measures, changes to existing exclusions, retaliatory trade actions, litigation outcomes, refund processes or other changes in U.S. or foreign trade policy could increase our costs, disrupt our supply chain, affect customer demand or require changes to our sourcing, pricing or production strategies. We continue to monitor these developments and their potential impact on our business and future operating results.

Current wording

2026, the U.S. imposed replacement tariffs under Section 301 of the Trade Act of 1974, at rates of 10% or 12.5%, which are intended to replace the expired Section 122 tariffs. At this time, we do not currently expect these recent tariff changes to have a material impact on our business, operating results, cash flow, or financial condition. However, the scope, rate, duration, legality and implementation of existing or future tariffs remain uncertain, and additional tariff measures, including potential product-specific tariffs or other trade restrictions under Sections 232 or 301, changes to existing exemptions, retaliatory trade actions, litigation outcomes, refund processes or other changes in U.S. or foreign trade policy, or supply and demand imbalances affecting memory chips and other semiconductors could increase our costs, including component costs, disrupt our supply chain, affect customer demand or require changes to our sourcing, pricing or production strategies. In addition, the U.S. government is conducting or has conducted investigations under Section 232 of the Trade Expansion Act of 1962 involving a number of product categories, including medical equipment and devices, which could result in additional tariffs or other import restrictions affecting products or components that we import. We continue to monitor these developments and their potential impact on our business and future operating results.

Previous wording

Our full-time employee headcount was approximately 3,485 as of June 30, 2026.

Current wording

Our full-time employee headcount was approximately 3,450 as of September 30, 2026.

Previous wording

In an effort to address these challenges and deliver solutions to help drive positive medication management outcomes, we continue to make significant investments in our research and development efforts to further advance the industry-defined vision of the Autonomous Pharmacy. Furthermore, we believe a combination of dispensing automation and an intelligence ecosystem is needed in every care setting where medications are managed. We are focused on delivering solutions to help our customers realize the industry-defined vision of the Autonomous Pharmacy and driving positive medication management outcomes with superior customer experience in two core market categories through:

Current wording

In an effort to address these challenges and deliver solutions to help drive positive medication management outcomes, we continue to make significant investments in our research and development efforts to build solutions designed to support real-world clinical needs. Furthermore, we believe a combination of dispensing automation and an intelligence ecosystem is needed in every care setting where medications are managed. We are focused on delivering solutions to help our customers realize positive medication management outcomes with superior customer experience in two core market categories through:

Previous wording

There have been no material changes in our critical accounting policies and estimates during the six months ended June 30, 2026 as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

There have been no material changes in our critical accounting policies and estimates during the nine months ended September 30, 2026 as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

Product revenues represented 56% and 55% of total revenues for the six months ended June 30, 2026 and 2025, respectively. Product revenues increased by $41.5 million, primarily driven by an increase in revenues from our automated dispensing systems and XTExtend offering, partially offset by a decrease in revenues from robotics, including products related to our Central Pharmacy Dispensing Service and IV Compounding Service offering.

Current wording

Product revenues represented 56% and 57% of total revenues for the three months ended September 30, 2026 and 2025, respectively. Product revenues decreased by $4.4 million, primarily driven by lower volumes from our XTExtend offering, partially offset by an increase in revenues from our XT Series automated dispensing systems.

Previous wording

Service revenues represented 44% and 45% of total revenues for the six months ended June 30, 2026 and 2025, respectively. Service revenues include revenues from technical services and SaaS and Expert Services offerings. Service revenues increased by $20.3 million due to an increase of $10.3 million in technical services revenues primarily as a result of growth in our installed customer base and the impact of pricing actions, as well as an increase of $10.0 million in SaaS and Expert Services revenues due to continued customer demand, including an increase in revenues from our Specialty Pharmacy Services offering.

Current wording

Service revenues represented 44% and 43% of total revenues for the three months ended September 30, 2026 and 2025, respectively. Service revenues include revenues from technical services and SaaS and Expert Services offerings. Service revenues increased by $1.7 million due to an increase of $0.5 million in technical services revenues, as well as an increase of $1.2 million in SaaS and Expert Services revenues, primarily due to an increase in revenues from our Specialty Pharmacy Services offering, partially offset by lower revenues from the EnlivenHealth and 340B portfolios.

Previous wording

Our international sales represented 10% and 9% of total revenues for the three months ended June 30, 2026 and 2025, respectively. In future periods, we expect our revenues to be affected by foreign currency exchange rate fluctuations. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates.

Current wording

Our international sales represented 12% and 10% of total revenues for the three months ended September 30, 2026 and 2025, respectively. In future periods, we expect our revenues to be affected by foreign currency exchange rate fluctuations. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates.

Previous wording

Product revenues represented 56% of total revenues for both the three months ended June 30, 2026 and 2025. Product revenues increased by $11.9 million, primarily driven by an increase in revenues from our automated dispensing systems and XTExtend offering, partially offset by a decrease in revenues from robotics, including products related to our Central Pharmacy Dispensing Service and IV Compounding Service offering.

Current wording

Product revenues represented 56% of total revenues for both the nine months ended September 30, 2026 and 2025. Product revenues increased by $37.1 million, primarily driven by an increase in revenues from our XT Series automated dispensing systems, partially offset by a decrease in revenues from robotics, including products related to our Central Pharmacy Dispensing Service and IV Compounding Service offerings.

Previous wording

Service revenues represented 44% of total revenues for both the three months ended June 30, 2026 and 2025. Service revenues include revenues from technical services and SaaS and Expert Services offerings. Service revenues increased by $9.8 million due to an increase of $4.8 million in technical services revenues primarily as a result of growth in our installed customer base and the impact of pricing actions, as well as an increase of $5.0 million in SaaS and Expert Services revenues due to continued customer demand, including an increase in revenues from our Specialty Pharmacy Services offering.

Current wording

Service revenues represented 44% of total revenues for both the nine months ended September 30, 2026 and 2025. Service revenues include revenues from technical services and SaaS and Expert Services offerings. Service revenues increased by $22.0 million due to an increase of $10.8 million in technical services revenues primarily as a result of growth in our installed customer base and the impact of pricing actions, as well as an increase of $11.2 million in SaaS and Expert Services revenues due to continued customer demand, including an increase in revenues from our Specialty Pharmacy Services offering, partially offset by lower revenues from the EnlivenHealth and 340B portfolios.

Previous wording

Our international sales represented 10% and 8% of total revenues for the six months ended June 30, 2026 and 2025, respectively. In future periods, we expect our revenues to be affected by foreign currency exchange rate fluctuations. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates.

Current wording

Our international sales represented 11% and 9% of total revenues for the nine months ended September 30, 2026 and 2025, respectively. In future periods, we expect our revenues to be affected by foreign currency exchange rate fluctuations. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates.

Previous wording

Cost of revenues for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 decreased by $3.6 million, primarily driven by a $6.3 million decrease in cost of product revenues, partially offset by a $2.6 million increase in cost of service revenues.

Current wording

Cost of revenues for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 decreased by $6.1 million, primarily driven by a $7.6 million decrease in cost of service revenues, partially offset by a $1.5 million increase in cost of product revenues.

Previous wording

The overall increase in gross margin primarily relates to higher revenues for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and a $14.0 million refund received during the three months ended June 30, 2026 for previously paid IEEPA tariffs, partially offset by the impact of ongoing tariffs. Our gross profit for the three months ended June 30, 2026 was $152.9 million, as compared to $127.7 million for the three months ended June 30, 2025.

Current wording

The overall increase in gross margin primarily relates to lower cost of service revenues, primarily due to certain non-recurring costs, including software upgrade expenses, incurred during the three months ended September 30, 2025, partially offset by higher cost of product revenues primarily due to semiconductor chip costs incurred during the three months ended September 30, 2026, as well as a decrease in product revenues for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Our gross profit for the three months ended September 30, 2026 was $137.8 million, as compared to $134.5 million for the three months ended September 30, 2025.

Previous wording

Cost of revenues for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 increased by $7.2 million, of which $3.7 million was attributed to the increase in cost of product revenues and $3.5 million was attributed to the increase in cost of service revenues.

Current wording

Cost of revenues for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 increased by $1.1 million, of which $5.2 million was attributed to the increase in cost of product revenues, partially offset by a $4.1 million decrease in cost of service revenues.

Previous wording

The increase in cost of product revenues for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 has not increased proportionally with the increase in product revenues primarily due to a $14.0 million refund received during the three months ended June 30, 2026 for previously paid IEEPA tariffs, favorable impact of scale and efficiencies in installations as well as product and customer mix, partially offset by the impact of ongoing tariffs during the six months ended June 30, 2026.

Current wording

The increase in cost of product revenues for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 has not increased proportionally with the increase in product revenues primarily due to a $14.0 million refund received during the three months ended June 30, 2026 for previously paid IEEPA tariffs, favorable impact of scale and efficiencies in installations as well as product and customer mix, partially offset by the impact of ongoing tariffs and higher semiconductor chip costs incurred during the nine months ended September 30, 2026.

Previous wording

The increase in cost of service revenues was primarily driven by the increase in service revenues of $20.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, partially offset by certain non-recurring costs, including software upgrade expenses, incurred during the six months ended June 30, 2025.

Current wording

The decrease in cost of service revenues for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is primarily due to certain non-recurring costs, including software upgrade expenses, incurred during the nine months ended September 30, 2025, partially offset by an increase in costs due to an increase in service revenues.

Previous wording

The overall increase in gross margin primarily relates to higher revenues for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, a $14.0 million refund received during the three months ended June 30, 2026 for previously paid IEEPA tariffs, the favorable impact of scale and efficiencies in installations, product and customer mix, and certain non-recurring costs, including software upgrade expenses, incurred during the six months ended June 30, 2025, partially offset by the impact of ongoing tariffs. Our gross profit for the six months ended June 30, 2026 was $293.3 million, as compared to $238.6 million for the six months ended June 30, 2025.

Current wording

The overall increase in gross margin primarily relates to higher revenues for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, a $14.0 million refund received during the three months ended June 30, 2026 for previously paid IEEPA tariffs, the favorable impact of scale and efficiencies in installations, product and customer mix, and certain non-recurring costs, including software upgrade expenses, incurred during the nine months ended September 30, 2025, partially offset by the impact of ongoing tariffs and higher semiconductor chip costs during the nine months ended September 30, 2026. Our gross profit for the nine months ended September 30, 2026 was $431.1 million, as compared to $373.1 million for the nine months ended September 30, 2025.

Previous wording

Research and Development. Research and development expenses decreased by $1.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

Research and Development. Research and development expenses decreased by $1.7 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Selling, General, and Administrative. Selling, general, and administrative expenses increased by $2.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to an increase of $3.3 million in employee-related expenses and an increase of $1.9 million in certain restructuring and severance charges, partially offset by a decrease of $3.5 million in the allowance for credit losses compared to the three months ended June 30, 2025.

Current wording

Selling, General, and Administrative. Selling, general, and administrative expenses decreased by $1.7 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Interest and Other Income (Expense), Net. Interest and other income (expense), net changed by $0.9 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a $1.2 million decrease in other income. The decrease in other income during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 is primarily attributable to lower interest income received due to lower cash and cash equivalents balances following the repurchases of our common stock during the second and third quarters of 2025 and maturity of the remaining 2025 Notes in September 2025, partially offset by $0.5 million of interest income received in connection with the IEEPA tariffs refund during the three months ended June 30, 2026.

Current wording

Interest and Other Income (Expense), Net. Interest and other income (expense), net changed by $0.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by a $0.8 million decrease in other income.

Previous wording

Research and Development. Research and development expenses decreased by $0.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Research and Development. Research and development expenses decreased by $2.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

Selling, General, and Administrative. Selling, general, and administrative expenses increased by $2.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to an increase of $5.5 million in employee-related expenses and an increase of $2.6 million in consulting expenses, partially offset by a decrease of $4.6 million in the allowance for credit losses and a decrease of $2.7 million for legal and regulatory expenses compared to the six months ended June 30, 2025.

Current wording

Selling, General, and Administrative. Selling, general, and administrative expenses increased by $0.5 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to an increase of $4.4 million in consulting expenses and increases in commissions and employee-related expenses, partially offset by a decrease of $4.3 million in the allowance for credit losses and a decrease of $2.7 million for legal and regulatory expenses, as well as lower depreciation and amortization expense compared to the nine months ended September 30, 2025.

Previous wording

Interest and Other Income (Expense), Net. Interest and other income (expense), net changed by $3.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $3.6 million decrease in other income. The decrease in other income during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 is primarily attributable to lower interest income received due to lower cash and cash equivalents balances following the repurchases of our common stock during the second and third quarters of 2025 and maturity of the remaining 2025 Notes in September 2025, partially offset by $0.5 million of interest income received in connection with the IEEPA tariffs refund during the three months ended June 30, 2026.

Current wording

Interest and Other Income (Expense), Net. Interest and other income (expense), net changed by $3.6 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $4.4 million decrease in other income and a $0.8 million decrease in other expense. The decrease in other income during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 is primarily attributable to lower interest income received due to lower cash and cash equivalents balances following the repurchases of our common stock during the second and third quarters of 2025 and maturity of the remaining 2025 Notes in September 2025, partially offset by $0.5 million of interest income received in connection with the IEEPA tariffs refund during the three months ended June 30, 2026.

Previous wording

For the six months ended June 30, 2026 and June 30, 2025, we recorded income tax expense of $15.1 million and $2.3 million, respectively. The change in income tax expense for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to changes in income before income taxes.

Current wording

For the nine months ended September 30, 2026 and September 30, 2025, we recorded income tax expense of $19.9 million and $6.5 million, respectively. The change in income tax expense for the nine months ended September 30, 2026, compared to the same period in 2025, was primarily due to changes in income before income taxes.

Previous wording

We had cash and cash equivalents of $292.2 million at June 30, 2026 compared to $196.5 million at December 31, 2025. All of our cash and cash equivalents are invested in bank accounts and money market funds held in sweep and asset management accounts with financial institutions of high credit quality. As of June 30, 2026, a substantial portion of the Company’s cash and cash equivalents were held with a limited number of financial institutions and money market funds, which may expose the Company to concentration risk in the event of a failure or adverse condition affecting those entities.

Current wording

We had cash and cash equivalents of $314.9 million at September 30, 2026 compared to $196.5 million at December 31, 2025. All of our cash and cash equivalents are invested in bank accounts and money market funds held in sweep and asset management accounts with financial institutions of high credit quality. As of September 30, 2026, a substantial portion of the Company’s cash and cash equivalents were held with a limited number of financial institutions and money market funds, which may expose the Company to concentration risk in the event of a failure or adverse condition affecting those entities.

Previous wording

Our ratio of current assets to current liabilities was 1.6:1 at June 30, 2026 and 1.4:1 at December 31, 2025.

Current wording

Our ratio of current assets to current liabilities was 1.7:1 at September 30, 2026 and 1.4:1 at December 31, 2025.

Previous wording

Net cash provided by operating activities was $122.8 million for the six months ended June 30, 2026, primarily consisting of operating inflows of $110.7 million and favorable working capital movements of $12.1 million. Operating inflows consisted of net income of $35.6 million, adjusted for non-cash items of $75.1 million, which consisted primarily of depreciation and amortization expense of $37.4 million, share-based compensation expense of $21.7 million, and a change in deferred income taxes of $10.9 million. The favorable working capital was primarily due to an increase in deferred revenues of $13.1 million, driven primarily by an increase in billings for certain technical services, SaaS and Expert Services, and connected devices offerings, an increase in accounts payable of $7.2 million primarily due to the timing of payments, a decrease in inventories of $4.2 million, and a decrease in investment in sales-type leases of $4.0 million. These cash inflows were partially offset by an increase in accounts receivable and unbilled receivables of $10.2 million primarily due to the timing of billings, shipments, and collections, a decrease in operating lease liabilities of $6.0 million, and an increase in other current assets of $5.1 million.

Current wording

Net cash provided by operating activities was $155.9 million for the nine months ended September 30, 2026, primarily consisting of operating inflows of $156.9 million and unfavorable working capital movements of $1.0 million. Operating inflows consisted of net income of $46.7 million, adjusted for non-cash items of $110.2 million, which consisted primarily of depreciation and amortization expense of $55.8 million, share-based compensation expense of $33.1 million, a change in deferred income taxes of $13.4 million, and amortization of operating lease right-of-use assets of $5.8 million. The unfavorable working capital was primarily due to an increase in accounts receivable and unbilled receivables of $19.2 million primarily due to the timing of billings, shipments, and collections, an increase in prepaid expenses of $16.9 million primarily due to the timing of certain vendor deposits and subscription obligations, an increase in other current assets of $12.6 million primarily due to an increase in deferred cost of sales due to the timing of installations, a decrease in operating lease liabilities of $9.0 million, and an increase in investment in sales-type leases of $8.2 million. These cash outflows were partially offset by an increase in deferred revenues of $28.7 million, driven primarily by the timing of shipments and invoicing and an increase in billings for certain technical services, SaaS and Expert Services, and connected devices offerings, an increase in accounts payable of $18.2 million primarily due to the timing of payments, and an increase in accrued compensation of $11.2 million primarily due to an increase in accrued employee bonuses and commissions, as well as timing of payroll.

Previous wording

Net cash provided by operating activities was $68.7 million for the six months ended June 30, 2025, primarily consisting of operating inflows of $63.0 million and favorable working capital movements of $5.7 million. Operating inflows consisted of a net loss of $1.4 million, adjusted for non-cash items of $64.4 million, which consisted primarily of depreciation and amortization expense of $39.6 million and share-based compensation expense of $21.3 million. The favorable working capital was primarily due to a decrease in accounts receivable and unbilled receivables of $25.9 million primarily due to the timing of billings, shipments, and collections, an increase in deferred revenues of $15.1 million, due to the timing of billings and customers’ installation schedules, and an increase in accounts payable of $10.7 million primarily due to an increase in inventory spend and timing of payments. These cash inflows were partially offset by an increase in inventories of $15.9 million to support production requirements, including advanced purchases of certain components, a decrease in accrued liabilities of $14.9 million primarily due a decrease in taxes payable, a decrease in accrued compensation of $8.6 million primarily due to a decrease in accrued employee bonuses and commissions, and a decrease in operating lease liabilities of $5.8 million.

Current wording

Net cash provided by operating activities was $96.9 million for the nine months ended September 30, 2025, primarily consisting of operating inflows of $105.3 million and unfavorable working capital movements of $8.4 million. Operating inflows consisted of net income of $4.1 million, adjusted for non-cash items of $101.2 million, which consisted primarily of depreciation and amortization expense of $59.0 million and share-based compensation expense of $32.5 million. The unfavorable working capital was primarily due to an increase in inventories of $17.7 million to support production requirements, including advanced purchases of certain components, as well as the impact of tariffs, a decrease in accrued liabilities of $13.1 million primarily due a decrease in taxes payable, a decrease in accrued compensation of $11.0 million primarily due to a decrease in accrued employee bonuses and commissions, as well as timing of ESPP purchases, an increase in other current assets of $10.0 million, and a decrease in operating lease liabilities of $8.8 million. These cash outflows were partially offset by an increase in deferred revenues of $26.9 million, due to the timing of billings and customers’ installation schedules, a decrease in accounts receivable and unbilled receivables of $12.5 million primarily due to the timing of billings, shipments, and collections, an increase in accounts payable of $10.7 million primarily due to an increase in inventory spend and timing of payments, and a decrease in other long-term assets of $5.9 million.

Previous wording

Net cash used in investing activities was $31.7 million for the six months ended June 30, 2025, which consisted of capital expenditures of $23.0 million for property and equipment and $8.7 million for external-use software development costs.

Current wording

Net cash used in investing activities was $41.5 million for the nine months ended September 30, 2026, which consisted of capital expenditures of $32.7 million for property and equipment and $8.8 million for external-use software development costs.

Previous wording

Net cash used in investing activities was $28.4 million for the six months ended June 30, 2026, which consisted primarily of capital expenditures of $21.4 million for property and equipment and $7.0 million for external-use software development costs.

Current wording

Net cash used in investing activities was $45.9 million for the nine months ended September 30, 2025, which consisted of capital expenditures of $32.7 million for property and equipment and $13.2 million for external-use software development costs.

Previous wording

Net cash used in financing activities was $21.0 million for the six months ended June 30, 2026, primarily due to a net change in the customer funds balances of $23.9 million, partially offset by $7.9 million in proceeds from employee stock option exercises and ESPP purchases.

Current wording

Net cash used in financing activities was $25.9 million for the nine months ended September 30, 2026, primarily due to a net change in the customer funds balances of $31.7 million and employees’ taxes paid related to restricted stock unit vesting of $7.8 million, partially offset by $14.0 million in proceeds from employee stock option exercises and ESPP purchases.

Previous wording

Net cash used in financing activities was $7.4 million for the six months ended June 30, 2025, primarily due to $15.7 million paid for repurchases of shares of our common stock, partially offset by $8.3 million in proceeds from employee stock option exercises and ESPP purchases.

Current wording

Net cash used in financing activities was $227.4 million for the nine months ended September 30, 2025, due to the repayment of the remaining principal balance of our 2025 Notes of $175.0 million, repurchases of shares of our common stock of $77.6 million, and $6.0 million in employees’ taxes paid related to restricted stock unit vesting, partially offset by $15.2 million in proceeds from employee stock option exercises and ESPP purchases and a net change in the customer funds balances of $16.0 million.

Previous wording

There have been no significant changes during the six months ended June 30, 2026 to the contractual obligations disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

There have been no significant changes during the nine months ended September 30, 2026 to the contractual obligations disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2025.