EverQuote, Inc.

Previous wording

In the three months ended June 30, 2025 and 2024, our total revenue was $156.6 and $117.1 million, respectively, representing a year-over-year increase of 33.7%. We had net income of $14.7 million and $6.4 million for the three months ended June 30, 2025 and 2024, respectively, and had $22.0 and $12.9 million in adjusted EBITDA for the three months ended June 30, 2025 and 2024, respectively. In the six months ended June 30, 2025 and 2024, our total revenue was $323.3 million and $208.2 million, respectively, representing a year-over-year increase of 55.3%. We had net income of $22.7 million and $8.3 million for the six months ended June 30, 2025 and 2024, respectively, and had $44.5 million and $20.5 million in adjusted EBITDA for the six months ended June 30, 2025 and 2024, respectively. See the section titled “—Non-GAAP Financial Measure” for information regarding our use of adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the United States, or GAAP.

Current wording

In the three months ended September 30, 2025 and 2024, our total revenue was $173.9 million and $144.5 million, respectively, representing a year-over-year increase of 20.3%. We had net income of $18.9 million and $11.6 million for the three months ended September 30, 2025 and 2024, respectively, and had $25.1 million and $18.8 million in adjusted EBITDA for the three months ended September 30, 2025 and 2024, respectively. In the nine months ended September 30, 2025 and 2024, our total revenue was $497.2 million and $352.7 million, respectively, representing a year-over-year increase of 41.0%. We had net income of $41.6 million and $19.9 million for the nine months ended September 30, 2025 and 2024, respectively, and had $69.5 million and $39.3 million in adjusted EBITDA for the nine months ended September 30, 2025 and 2024, respectively. See the section titled “—Non-GAAP Financial Measure” for information regarding our use of adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the United States, or GAAP.

Previous wording

For the six months ended June 30, 2025 and 2024, we derived 90% and 87%, respectively, of our revenue from auto insurance providers and our financial results depend on the performance of the auto insurance industry. Furthermore, total revenue from our largest auto insurance carrier customers was 39% and 12% of our revenue for the six months ended June 30, 2025. In 2023 and 2022, the auto insurance industry experienced deteriorated underwriting performance due to a rise in claims, inflation, and inadequate policy premiums. This deteriorated underwriting performance caused our insurance carrier customers to reduce spending on new customer acquisition, which had a negative impact on the pricing and demand for consumer referrals in our marketplace throughout 2023. The state of the auto insurance market remains volatile, and while we have seen improvements in spending patterns, including from our two largest carrier customers, not all of our carrier customers have increased their spend in a proportional or significant manner, and a full recovery could be prolonged by further cost inflation, including the impact of potential increased tariffs; increased claim severity and frequency; or insufficient policy premium increases.

Current wording

For the nine months ended September 30, 2025 and 2024, we derived 90% and 88%, respectively, of our revenue from auto insurance providers and our financial results depend on the performance of the auto insurance industry. Furthermore, total revenue from our two largest auto insurance carrier customers was 37% and 11%, respectively, of our revenue for the nine months ended September 30, 2025. In 2023 and 2022, the auto insurance industry experienced deteriorated underwriting performance due to a rise in claims, inflation, and inadequate policy premiums. This deteriorated underwriting performance caused our insurance carrier customers to reduce spending on new customer acquisition, which had a negative impact on the pricing and demand for consumer referrals in our marketplace throughout 2023. The state of the auto insurance market remains volatile, and while we have seen improvements in spending patterns, including from our larger carrier customers, not all of our carrier customers have increased their spend in a proportional or significant manner, and a full recovery could be prolonged by further cost inflation, including the impact of increased tariffs; increased claim severity and frequency; or insufficient policy premium increases.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2025 and 2024

Current wording

Comparison of the Three and Nine Months Ended September 30, 2025 and 2024

Previous wording

Revenue increased by $39.5 million from $117.1 million for the three months ended June 30, 2024 to $156.6 million for the three months ended June 30, 2025. The increase in revenue was primarily due to an increase of $37.0 million in our automotive vertical, due to an increase in carrier spend for referrals, primarily from our two largest customers. Revenue also increased in our home and renters vertical by $3.2 million due to an increase in carrier spend for referrals.

Current wording

Revenue increased by $29.4 million from $144.5 million for the three months ended September 30, 2024 to $173.9 million for the three months ended September 30, 2025. The increase in revenue was primarily due to an increase of $27.6 million in our automotive vertical, due to an increase in carrier spend for referrals, primarily from two of our larger customers. Revenue also increased in our home and renters vertical by $2.1 million due to an increase in carrier spend for referrals.

Previous wording

Revenue increased by $115.1 million from $208.2 million for the six months ended June 30, 2024 to $323.3 million for the six months ended June 30, 2025. The increase in revenue was primarily due to an increase of $112.1 million in our automotive vertical, due to an increase in carrier spend for referrals, primarily from our two largest customers. Revenue also increased in our home and renters vertical by $4.4 million due to an increase in carrier spend for referrals.

Current wording

Revenue increased by $144.5 million from $352.7 million for the nine months ended September 30, 2024 to $497.2 million for the nine months ended September 30, 2025. The increase in revenue was primarily due to an increase of $139.8 million in our automotive vertical, due to an increase in carrier spend for referrals, primarily from three of our larger customers. Revenue also increased in our home and renters vertical by $6.5 million due to an increase in carrier spend for referrals.

Previous wording

Cost of revenue decreased by $0.2 million from $5.0 million for the three months ended June 30, 2024 to $4.8 million for the three months ended June 30, 2025. Cost of revenue decreased primarily due to a decrease in personnel-related costs related primarily to decreased headcount in our call center, partially offset by an increase in third-party call center costs due to a net increase in call volume and increased usage of the third-party call center.

Current wording

Cost of revenue decreased by $0.6 million from $15.5 million for the nine months ended September 30, 2024 to $14.9 million for the nine months ended September 30, 2025. Decreases in personnel-related costs of $0.6 million related primarily to decreased headcount in our call center were partially offset by increases of $0.4 million in third-party call center costs due to a net increase in call volume and increased usage of the third-party call center. Amortization expense also decreased primarily due to certain assets being fully depreciated in the third quarter of 2024. Additionally, an increase in technology costs was fully offset by decreases in lead verification services and office and occupancy costs due to lower rent expense.

Previous wording

Sales and marketing expense increased by $30.1 million from $90.9 million for the three months ended June 30, 2024 to $121.1 million for the three months ended June 30, 2025. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $30.4 million due to an increase in carrier spend, partially offset by a decrease in office and occupancy costs of $0.4 million due primarily to lower rent expense and a decrease in amortization of $0.3 million due to the sale of acquired intangible assets as part of the settlement of litigation.

Current wording

Sales and marketing expense increased by $23.6 million from $111.8 million for the three months ended September 30, 2024 to $135.4 million for the three months ended September 30, 2025. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $23.2 million due to an increase in carrier spend and an increase in consulting services of $0.9 million, partially offset by a decrease in office and occupancy costs of $0.5 million due primarily to lower rent expense and a decrease in amortization of $0.4 million due to the sale of acquired intangible assets in May 2025 as part of the settlement of litigation.

Previous wording

Sales and marketing expense increased by $88.8 million from $161.7 million for the six months ended June 30, 2024 to $250.5 million for the six months ended June 30, 2025. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $90.0 million due to an increase in carrier spend, partially offset by a decrease in office and occupancy costs due of $0.7 million due primarily to lower rent expense and a decrease in amortization of $0.4 million due to the sale of acquired intangible assets as part of the settlement of litigation.

Current wording

Sales and marketing expense increased by $112.4 million from $273.5 million for the nine months ended September 30, 2024 to $385.8 million for the nine months ended September 30, 2025. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $113.2 million due to an increase in carrier spend and an increase in consulting services of $1.1 million, partially offset by a decrease in office and occupancy costs due of $1.2 million due primarily to lower rent expense and a decrease in amortization of $0.8 million due to the sale of acquired intangible assets in May 2025 as part of the settlement of litigation.

Previous wording

Research and development expense increased by $1.4 million from $13.9 million for the six months ended June 30, 2024 to $15.3 million for the six months ended June 30, 2025. The increase in research and development expense was primarily due to an increase in personnel-related costs due to increased headcount and increased consulting expense.

Current wording

Research and development expense increased by $1.3 million from $21.9 million for the nine months ended September 30, 2024 to $23.2 million for the nine months ended September 30, 2025. The increase in research and development expense was primarily due to an increase in personnel-related costs due to increased headcount and increased consulting expense.

Previous wording

General and administrative expenses increased by $0.6 million from $7.9 million for the three months ended June 30, 2024 to $8.5 million for the three months ended June 30, 2025. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $0.4 million due to increased stock-based compensation. Personnel-related costs included stock-based compensation expense of $3.0 million and $2.2 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

General and administrative expenses increased by $0.8 million from $7.6 million for the three months ended September 30, 2024 to $8.4 million for the three months ended September 30, 2025. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $0.4 million due to increased stock-based compensation and to a lesser extent, increases in consulting services and bank service fees.

Previous wording

General and administrative expenses increased by $2.4 million from $14.5 million for the six months ended June 30, 2024 to $16.9 million for the six months ended June 30, 2025. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $1.3 million due to increased stock-based compensation. Personnel-related costs included stock-based compensation expense of $5.4 million and $3.8 million for the six months ended June 30, 2025 and 2024, respectively. Legal fees and consulting fees also increased by $0.5 million and $0.4 million, respectively.

Current wording

General and administrative expenses increased by $3.2 million from $22.1 million for the nine months ended September 30, 2024 to $25.3 million for the nine months ended September 30, 2025. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $1.8 million due to increased stock-based compensation of $2.0 million. Consulting fees, legal fees and bank service fees also increased by $0.6 million, $0.5 million, and $0.4 million, respectively.

Previous wording

Legal settlement expense was $0.3 million and $8.2 million for the three and six months ended June 30, 2025, respectively. Legal settlement expense for the three months ended June 30, 2025 consisted of legal expense related to the settlement of $0.4 million, partially offset by a $0.1 million reduction to the litigation accrual. Legal settlement expense for the six months ended June 30, 2025 consisted of the estimated costs to settle the litigation of $7.8 million and legal expense related to the settlement of $0.4 million. For additional information, see Note 8 to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

There was no legal settlement expense for the three months ended September 30, 2025. Legal settlement expense was $8.2 million for the nine months ended September 30, 2025. Legal settlement expense for the nine months ended September 30, 2025 consisted of costs to settle the litigation of $7.8 million and legal expense related to the settlement of $0.4 million. For additional information, see Note 8 to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Interest income increased by $0.5 million and $0.8 million in the three and six months ended June 30, 2025 compared to three and six months ended June 30, 2024, respectively, due to an increase in interest earned on our cash balances. Other income (expense), net was not significant for any periods presented.

Current wording

Interest income increased by $0.4 million and $1.2 million in the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, respectively, due to an increase in interest earned on our cash balances. Other income (expense), net was not significant for any periods presented.

Previous wording

For the three and six months ended June 30, 2025, we recorded income tax expense of $0.4 million and $1.0 million, respectively, consisting primarily of state income taxes as well as federal income taxes for the portion of our taxable income that was not offset by operating loss and tax credit carryforwards. For the three and six months ended June 30, 2024, we recorded income tax expense of $0.4 million and $0.7 million, consisting primarily of state income taxes as well as federal income taxes for the portion of our taxable income that was not offset by operating loss and tax credit carryforwards.

Current wording

For the three and nine months ended September 30, 2025, we recorded an income tax benefit of $0.3 million and an income tax expense of $0.7 million, respectively. We recorded an income tax benefit for the three months ended September 30, 2025 due to the favorable impact of changes to domestic research expensing for tax purposes under the OBBBA. Income tax expense of $0.7 million for the nine months ended September 30, 2025 consisted primarily of state income taxes as well as federal income taxes for the portion of our taxable income that was not offset by net operating loss and tax credit carryforwards.

Previous wording

At June 30, 2025 and December 31, 2024, we maintained a valuation allowance on our overall net deferred tax asset as it was deemed more likely than not the net deferred tax asset will not be realized. At each reporting period we evaluate the realizability of our deferred tax assets. Based on our recent trend of pre-tax income, it is possible that in the near future there may be sufficient positive evidence to release a portion or all of our valuation allowance. Release of any amount of valuation allowance would result in a benefit to income taxes for the period the release is recorded, which could have a material impact on net income. Release of the valuation allowance is subject to management judgment.

Current wording

At September 30, 2025 and December 31, 2024, we maintained a valuation allowance on our net deferred tax asset as it was deemed more likely than not the net deferred tax asset will not be realized. At each reporting period we evaluate the realizability of our net deferred tax assets. Based on our recent trend of pre-tax income, it is possible that in the near future, which could be as early as the fourth quarter of 2025, there may be sufficient positive evidence to release a portion or all of our valuation allowance. Release of any amount of valuation allowance would result in a benefit to income taxes for the period the release is recorded, which could have a material impact on net income. Release of the valuation allowance is subject to management judgment.

Previous wording

The increase in variable marketing dollars in the three and six months ended June 30, 2025 was due primarily to increased carrier spend. The decrease in variable marketing margin for the same period was due to competitive pricing for advertising spend and the relative mix of referral types.

Current wording

The increase in variable marketing dollars in the three and nine months ended September 30, 2025 was due primarily to increased carrier spend. The decrease in variable marketing margin for the same periods was due to competitive pricing for advertising spend and the relative mix of referral types.

Previous wording

As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents of $148.2 million and up to $25.0 million of availability under our revolving line of credit. As of June 30, 2025, we had no amounts outstanding under the revolving line of credit and the agreement expired on July 15, 2025. On August 1, 2025, we entered into a credit agreement, or the Credit Agreement, providing for a senior secured revolving credit facility, or the Revolving Facility, among us, as borrower, Western Alliance Bank, as administrative agent and collateral agent for the lenders, or the Agent, and as a lender itself, and the other lenders party thereto (collectively, the Lenders). The Credit Agreement provides for a $60.0 million senior secured revolving line of credit. Subject to customary terms and conditions (including the absence of any default or event of default under the Credit Agreement), we shall have the right, from time to time, to request incremental revolving commitments in an aggregate amount not to exceed up to $25.0 million during the term of the Credit Agreement. Availability under the Credit Agreement will terminate on August 1, 2028, or the Revolving Commitment Period, and all outstanding revolving loans must be paid on or before such date. We will pay a commitment fee of 0.075% per annum on the average daily unused portion of commitments under the Credit Agreement during the Revolving Period.

Current wording

On August 1, 2025, we entered into a credit agreement, or the Credit Agreement, providing for a senior secured revolving credit facility, or the Revolving Facility, among us, as borrower, Western Alliance Bank, as administrative agent and collateral agent for the lenders, or the Agent, and as a lender itself, and the other lenders party thereto, or collectively, the Lenders. The Credit Agreement provides for a $60.0 million senior secured revolving line of credit. Subject to customary terms and conditions (including the absence of any default or event of default under the Credit Agreement), we shall have the right, from time to time, to request incremental revolving commitments in an aggregate amount not to exceed up to $25.0 million during the term of the Credit Agreement. Availability under the Credit Agreement will terminate on August 1, 2028, or the Revolving Commitment Period, and all outstanding revolving loans must be paid on or before such date. We will pay a commitment fee of 0.075% per annum on the average daily unused portion of commitments under the Credit Agreement during the Revolving Commitment Period.

Previous wording

Borrowings are collateralized by substantially all of our assets and property. Under the Credit Agreement, we have agreed to certain affirmative and negative covenants, reporting requirements and other customary requirements to which we will remain subject until maturity. The covenants include limitations on our ability to incur additional indebtedness and engage in certain fundamental business transactions, such as mergers or acquisitions of other businesses. In addition, under the Credit Agreement and through the maturity date, for any period we do not maintain a minimum Adjusted Quick Ratio of 1.30 to 1.00, defined as the ratio of (1) the sum of (x) unrestricted cash and cash equivalents held at the Lender plus (y) net accounts receivable reflected on our balance sheet (excluding accounts receivable that are more than 90 days past due, intercompany receivables, and receivables subject to dispute) to (2) current liabilities, including all borrowings outstanding under Credit Agreement, but excluding the current portion of deferred revenue (in each case determined substantially in accordance with GAAP), the Agent shall have the ability to use our cash receipts to repay outstanding obligations until such time as the Adjusted Quick Ratio is equal to or greater than 1.30 to 1.00 for two consecutive months.

Current wording

Borrowings are collateralized by substantially all of our assets and property. Under the Credit Agreement, we have agreed to certain affirmative and negative covenants, reporting requirements and other customary requirements to which we will remain subject until maturity. The covenants include limitations on our ability to incur additional indebtedness and engage in certain fundamental business transactions, such as mergers or acquisitions of other businesses. In addition, under the Credit Agreement and through the maturity date, for any period we do not maintain a minimum Adjusted Quick Ratio of 1.30 to 1.00, defined as the ratio of (1) the sum of (x) unrestricted cash and cash equivalents held at the Lenders plus (y) net accounts receivable reflected on our balance sheet (excluding accounts receivable that are more than 90 days past due, intercompany receivables, and receivables subject to dispute) to (2) current liabilities, including all borrowings outstanding under Credit Agreement, but excluding the current portion of deferred revenue (in each case determined substantially in accordance with GAAP), the Agent shall have the ability to use our cash receipts to repay outstanding obligations until such time as the Adjusted Quick Ratio is equal to or greater than 1.30 to 1.00 for two consecutive months.

Previous wording

On July 22, 2025, our board of directors authorized a share repurchase program for up to $50.0 million of our Class A common stock for one year from the board approval date. Share repurchases under the new $50.0 million program may be made from time to time on the open market, pursuant to Rule 10b5-1 trading plans, or by other legally permissible means. The share repurchase program does not obligate us to acquire a specific number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Repurchases under the program are expected to be funded from a combination of existing cash balances and future cash flow.

Current wording

On July 22, 2025, our board of directors authorized a share repurchase program for up to $50.0 million of our Class A common stock for one year from the board approval date. Share repurchases under the $50.0 million program may be made from time to time on the open market, pursuant to Rule 10b5-1 trading plans, or by other legally permissible means. The share repurchase program does not obligate us to acquire a specific number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Repurchases under the program are expected to be funded from a combination of existing cash balances and future cash flow. In August 2025, we repurchased $21.0 million of Class A shares from an entity affiliated with funds advised by our board chairman and co-founder and other affiliated entities of this individual, and as of September 30, 2025, $29.0 million remained available for stock repurchases pursuant to the board authorization.

Previous wording

We believe our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of the consolidated financial statements, without considering the borrowing availability under the Credit Agreement. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our revenue, the timing and extent of spending on business initiatives, purchases of capital equipment to support our growth, sales and marketing activities, expansion of our business through acquisitions or our investments in complementary offerings, technologies or businesses, market acceptance of our platform and overall economic conditions. If we do not achieve our revenue goals as planned, we believe that we can reduce our operating costs. If we need additional funds and are unable to obtain funding on a timely basis, we may need to significantly curtail our operations in an effort to provide sufficient funds to continue our operations, which could adversely affect our business prospects.

Current wording

We believe our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of the consolidated financial statements, without considering the borrowing availability under the Credit Agreement. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our revenue, the timing and extent of spending on business initiatives, purchases of common stock under our share repurchase program, purchases of capital equipment to support our growth, sales and marketing activities, expansion of our business through acquisitions or our investments in complementary offerings, technologies or businesses, market acceptance of our platform and overall economic conditions. If we do not achieve our revenue goals as planned, we believe that we can reduce our operating costs. If we need additional funds and are unable to obtain funding on a timely basis, we may need to significantly curtail our operations in an effort to provide sufficient funds to continue our operations, which could adversely affect our business prospects.

Previous wording

The following table shows a summary of our cash flows for the six months ended June 30, 2025 and 2024:

Current wording

The following table shows a summary of our cash flows for the nine months ended September 30, 2025 and 2024:

Previous wording

Operating activities provided $48.6 million in cash during the six months ended June 30, 2025, primarily resulting from our net income of $22.7 million and adjusting for net non-cash charges of $22.1 million, including a litigation accrual of $7.8 million, and net cash provided by changes in our operating assets and liabilities of $3.8 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $6.4 million decrease in accounts receivable and a $1.9 million decrease in commissions receivable, partially offset by a $3.3 million decrease in accounts payable and accrued expenses and other current liabilities and an increase of $1.0 million in prepaid expenses and other current assets. Operating activities provided $22.8 million in cash during the six months ended June 30, 2024, primarily resulting from our net income of $8.3 million and adjusting for net non-cash charges of $12.4 million and net cash provided by changes in our operating assets and liabilities of $2.1 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $25.5 million increase in accounts payable and accrued expenses and other current liabilities and a $2.6 million decrease in commissions receivable, partially offset by an increase in accounts receivable of $26.9 million.

Current wording

Operating activities provided $68.4 million in cash during the nine months ended September 30, 2025, primarily resulting from our net income of $41.6 million and adjusting for net non-cash charges of $29.6 million, including a litigation accrual of $7.8 million, partially offset by net cash used by changes in our operating assets and liabilities of $2.8 million. Net cash used by changes in our operating assets and liabilities consisted primarily of a $6.8 million increase in accounts receivable and a $4.7 million increase in prepaid expenses, partially offset by a $7.2 million increase in accounts payable and accrued expenses and other current liabilities and a decrease of $1.9 million in commission receivable. Operating activities provided $46.4 million in cash during the nine months ended September 30, 2024, primarily resulting from our net income of $19.9 million and adjusting for net non-cash charges of $19.5 million and net cash provided by changes in our operating assets liabilities of $7.1 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $30.8 million increase in accounts payable and accrued expenses and other current liabilities and a $3.7 million decrease in commissions receivable, partially offset by an increase in accounts receivable of $27.1 million.

Previous wording

Net cash used in investing activities of $2.6 million and $1.6 million for the six months ended June 30, 2025 and 2024, respectively, was attributable to the acquisition of property and equipment, which included the capitalization of certain software development costs. During the six months ended June 30, 2025 and 2024, we capitalized $2.3 million and $1.5 million, respectively, of software development costs.

Current wording

Net cash used in investing activities of $3.9 million and $3.1 million for the nine months ended September 30, 2025 and 2024, respectively, was attributable to the acquisition of property and equipment, which included the capitalization of certain software development costs. During the nine months ended September 30, 2025 and 2024, we capitalized $3.4 million and $2.2 million, respectively, of software development costs.

Previous wording

Net cash provided by financing activities

Current wording

During the nine months ended September 30, 2025, net cash used in financing activities was $20.8 million primarily due to $21.0 million used to repurchase common stock under our share repurchase program from Link Ventures, which is an entity affiliated with funds advised by David Blundin, the Company's chairman of the board of directors and co-founder, and other affiliated entities of Mr. Blundin. Cash proceeds during the nine months ended September 30, 2025 included proceeds received from the exercise of common stock options, partially offset by tax withholding payments relating to net share settlements. During the nine months ended September 30, 2024, net cash provided by financing activities was $1.6 million, consisting of proceeds received from the exercise of common stock options, partially offset by tax withholding payments relating to net share settlements.

Previous wording

Our cash flows are dependent on a number of factors in addition to our operational expenditures, including our contractual and other obligations. As a result, our liquidity and capital resources in future periods should be analyzed in conjunction with such factors.

Current wording

Our cash flows are dependent on a number of factors in addition to our operational expenditures, including our share repurchase program and our contractual and other obligations. As a result, our liquidity and capital resources in future periods should be analyzed in conjunction with such factors.

Previous wording

In June 2025, we entered into a five-year, $18.5 million purchase commitment, in the ordinary course of business, for advertising with specified annual minimum payment amounts through July 2029. The remaining purchase commitment as of June 30, 2025 was $18.5 million, of which $3.0 million relates to the next twelve months. There have been no other material changes to the contractual obligations reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

In June 2025, we entered into a five-year, $18.5 million purchase commitment, in the ordinary course of business, for advertising with specified annual minimum payment amounts through July 2029. The remaining purchase commitment as of September 30, 2025 was $15.5 million, of which $3.5 million relates to the next twelve months. There have been no other material changes to the contractual obligations reported in our Annual Report on Form 10-K for the year ended December 31, 2024.