ServiceTitan, Inc.

Previous wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers to end customers through our platform, and adopt more add-on products. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering outsized return on investment (“ROI”), in our products. For the three and six months ended July 31, 2025, we processed $22.9 billion and $40.7 billion of GTV, respectively, and for the three and six months ended July 31, 2024, we processed $19.2 billion and $33.7 billion of GTV, respectively.

Current wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers to end customers through our platform, and adopt more add-on products. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering outsized return on investment (“ROI”), in our products. For the three and nine months ended October 31, 2025, we processed $21.7 billion and $62.4 billion of GTV, respectively, and for the three and nine months ended October 31, 2024, we processed $17.8 billion and $51.5 billion of GTV, respectively.

Previous wording

Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added Pro and FinTech products that complement our Core product. We build Pro and FinTech products as an integrated add-on to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products to earn an even greater potential share of our customers’ GTV in the future. While our engrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products will continue to require substantial time and research and development resources.

Current wording

Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added Pro and FinTech products that complement our Core product. We build Pro and FinTech products as an integrated add-on to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products to earn an even greater potential share of our customers’ GTV in the future. While our ingrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products will continue to require substantial time and research and development resources.

Previous wording

Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services are primarily comprised of fees paid to third-party service providers associated with delivery of Pro and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.

Current wording

Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services primarily comprises of fees paid to third-party service providers associated with delivery of Pro and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.

Previous wording

General and administrative expense consists primarily of personnel-related costs for our executive, finance, legal, information systems, operations and human resource teams. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. General and administrative expense also includes professional fees, other outside consulting expenses, acquisition-related expenses and allocated overhead. We expect that general and administrative expense will increase on an absolute dollar basis, but over time decrease as a percentage of total revenue, as we focus on the efficiency of our processes and systems that will enable our internal support functions to scale with the growth of our business. We expect increases to general and administrative expense to support our growth and as we incur the costs of compliance associated with being a public company, including increased accounting and legal expenses.

Current wording

General and administrative expense consists primarily of personnel-related costs for our executive, finance, legal, information systems, operations and human resource teams. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. General and administrative expense also includes professional fees, other outside consulting expenses, acquisition-related expenses and allocated overhead. We expect that general and administrative expense will increase on an absolute dollar basis, but over time decrease as a percentage of total revenue, as we focus on the efficiency of our processes and systems to enable our internal support functions to scale with the growth of our business. We expect increases to general and administrative expense to support our growth and as we incur the costs of compliance associated with being a public company, including increased accounting and legal expenses.

Previous wording

Other income (expense), net consists primarily of interest expense related to our debt arrangements with financial institutions, interest income earned on our cash and cash equivalents, gains or losses on foreign currency transactions and miscellaneous other income.

Current wording

Other income (expense), net consists primarily of interest expense related to our debt arrangements with financial institutions, interest income earned on our cash and cash equivalents, gains or losses on foreign currency transactions and miscellaneous other income and expense.

Previous wording

Included in U.S. H.R. 1 (119th Congress), which was signed into law in July 2025, are certain changes to the Internal Revenue Code including, but not limited to, deductions for domestic research and development expenditures and federal bonus depreciation. As the legislation was enacted within the six months ended July 31, 2025, we have considered and reflected the impacts on the condensed consolidated financial statements. Due to our current year loss before income taxes and valuation allowance, the legislation did not have a material impact on the condensed consolidated financial statements for the six months ended July 31, 2025, nor is it expected to have a material impact on the condensed consolidated financial statements for the full fiscal year.

Current wording

Included in U.S. H.R. 1 (119th Congress), which was signed into law in July 2025, are certain changes to the Internal Revenue Code including, but not limited to, deductions for domestic research and development expenditures and federal bonus depreciation. As the legislation was enacted within the nine months ended October 31, 2025, the Company has considered and reflected the impacts on the condensed consolidated financial statements. Due to our current year loss before income taxes and valuation allowance, the legislation did not have a material impact on the condensed consolidated financial statements for the nine months ended October 31, 2025, nor is it expected to have a material impact on the condensed consolidated financial statements for the full fiscal year 2026.

Previous wording

Platform revenue increased by $47.7 million, or 26%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by subscription revenue, which increased by $37.1 million, or 27%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. In addition, revenue from our usage-based products increased by $10.7 million, or 23%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Current wording

Platform revenue increased by $48.4 million, or 25%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by subscription revenue, which increased by $37.5 million, or 26%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. In addition, revenue from our usage-based products increased by $10.9 million, or 24%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Previous wording

Professional services and other revenue increased by $1.4 million, or 18%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by a higher volume of services performed.

Current wording

Professional services and other revenue increased by $1.5 million, or 19%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by a higher volume of services performed.

Previous wording

Platform cost of revenue increased by $2.8 million, or 6%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase was primarily due to a $3.4 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue and a $1.4 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $1.4 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. In addition, personnel-related costs decreased $0.4 million primarily due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026. Platform gross margin increased to 77.7% for the three months ended July 31, 2025, compared to 73.4% for the three months ended July 31, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment and improved efficiencies in delivering our platform at scale.

Current wording

Platform cost of revenue increased by $2.3 million, or 4%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase was primarily due to a $4.3 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue. This increase was partially offset by a decrease in personnel-related costs, which decreased $2.1 million primarily due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026. Platform gross margin increased to 77.2% for the three months ended October 31, 2025, compared to 72.7% for the three months ended October 31, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment and improved efficiencies in delivering our platform at scale.

Previous wording

Professional services and other cost of revenue increased by $1.9 million, or 11%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase was primarily due to an increase of $2.8 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by a decrease of $0.7 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use and a decrease of$0.5 million in third-party consulting costs. Professional services and other gross margin improved to (99.9)% for the three months ended July 31, 2025, compared to (111.7)% for the three months ended July 31, 2024, primarily due to cost savings from reduced third-party professional services fees.

Current wording

Professional services and other cost of revenue increased by $1.2 million, or 7%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase was primarily due to an increase of $1.6 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by a decrease of $0.6 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. Professional services and other gross margin improved to (91.0)% for the three months ended October 31, 2025, compared to (111.8)% for the three months ended October 31, 2024, primarily due to cost savings from reduced third-party professional services fees.

Previous wording

Research and development expense increased by $10.6 million, or 17%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in research and development expense was primarily driven by an increase of $12.5 million in personnel-related costs, which included $2.2 million increase in stock-based compensation expense, driven by an increase in headcount. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Current wording

Research and development expense increased by $12.6 million, or 19%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase in research and development expense was primarily driven by an increase of $10.4 million in personnel-related costs, which included a $4.0 million increase in stock-based compensation expense, driven by an increase in headcount, and an increase of $2.0 million in infrastructure and server costs. These increases were partially offset by a decrease of $1.5 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

General and administrative expense increased by $24.7 million, or 64%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in general and administrative expense was primarily driven by a $24.5 million increase in personnel-related costs primarily driven by an increase of $20.5 million in stock-based compensation. The increase in stock-based compensation includes $13.5 million related to performance-based RSUs granted to our Co-Founders in October 2024. Additionally, there was an increase of $3.0 million in third-party consulting costs related to legal, consulting and audit services. These increases were partially offset by a decrease of $4.5 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Current wording

General and administrative expense increased by $21.5 million, or 53%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase in general and administrative expense was primarily driven by a $19.7 million increase in personnel-related costs primarily driven by an increase of $17.9 million in stock-based compensation. The increase in stock-based compensation includes $13.5 million related to performance-based RSUs granted to our Co-Founders in October 2024. There was an additional increase of $1.6 million in third-party consulting costs related to legal, consulting and audit services. These increases were partially offset by a decrease of $3.7 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

Other income, net, was $2.9 million for the three months ended July 31, 2025, compared to other expense, net, of $2.6 million for the three months ended July 31, 2024. The increase was primarily due to a $3.1 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $2.2 million due to a lower debt balance in the three months ended July 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Current wording

Other income, net, was $3.3 million for the three months ended October 31, 2025, compared to other expense, net, of $2.0 million for the three months ended October 31, 2024. The increase was primarily due to a $3.3 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $1.9 million due to a lower debt balance in the three months ended October 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Previous wording

Our provision for income taxes decreased by $0.1 million, or 20%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The change was primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects.

Current wording

Our provision for income taxes increased by $0.2 million, or 50%, for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. The change is primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects and a release of a portion of the Company’s U.S. valuation allowance due to the acquisition of Conduit that occurred during the three months ended October 31, 2025.

Previous wording

Platform revenue increased by $92.5 million, or 27%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. This increase was primarily driven by subscription revenue, which increased by $73.7 million, or 28%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. In addition, revenue from our usage-based products increased by $18.7 million, or 22%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Current wording

Platform revenue increased by $140.9 million, or 26%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by subscription revenue, which increased by $111.2 million, or 27%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. In addition, revenue from our usage-based products increased by $29.6 million, or 23%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Previous wording

Professional services and other revenue increased by $2.0 million, or 13%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. This increase was primarily driven by a higher volume of services performed.

Current wording

Professional services and other revenue increased by $3.5 million, or 15%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by a higher volume of services performed.

Previous wording

Platform cost of revenue increased by $5.0 million, or 5%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. The increase was primarily due to a $8.1 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue and a $3.0 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $3.2 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. In addition, personnel-related costs decreased $1.5 million primarily, due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026, and depreciation expense decreased by $0.8 million. Platform gross margin increased to 76.8% for the six months ended July 31, 2025, compared to 72.1% for the six months ended July 31, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment, and improved efficiencies in delivering our platform at scale.

Current wording

Platform cost of revenue increased by $7.4 million, or 5%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase was primarily due to a $12.5 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue and a $4.1 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $4.4 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. In addition, personnel-related costs decreased $4.3 million primarily, due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026, and depreciation expense decreased by $1.2 million. Platform gross margin increased to 77.0% for the nine months ended October 31, 2025, compared to 72.3% for the nine months ended October 31, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment, and improved efficiencies in delivering our platform at scale.

Previous wording

Professional services and other cost of revenue increased by $2.5 million, or 8%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. The increase was primarily due to an increase of $5.3 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by a decrease of $1.2 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use, a decrease of$1.2 million in third-party consulting costs and a decrease of $0.5 million in amortization costs due to the acceleration of amortization certain acquired intangible assets in the prior year. Professional services and other gross margin improved to (110.7)% for the six months ended July 31, 2025, compared to (122.0)% for the six months ended July 31, 2024, cost savings from reduced third-party professional services fees.

Current wording

Professional services and other cost of revenue increased by $3.7 million, or 7%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase was primarily due to an increase of $5.8 million in personnel-related costs driven by an increase in headcount and an increase of $1.7 million in employee benefit expenses primarily related to health insurance. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use and a decrease of$1.7 million in third-party consulting costs. Professional services and other gross margin improved to (103.6)% for the nine months ended October 31, 2025, compared to (118.5)% for the nine months ended October 31, 2024, primarily due to cost savings from a decrease in impairment loss that was recognized in the prior period and reduced third-party professional services fees.

Previous wording

Sales and marketing expense increased by $22.9 million, or 20%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. The increase in sales and marketing expense was primarily driven by an increase of $22.5 million in personnel-related costs, which included a $4.4 million increase in stock-based compensation expense related to new equity granted as part of our annual performance cycle, as well as expense associated with equity awards that began vesting upon the successful completion of our IPO. Additionally, beginning in fiscal 2026, we shifted the roles of our customer success function to focus on both customer retention and customer expansion, and as a result, certain customer success costs are now being recorded in sales and marketing. In addition, there was an increase of $3.8 million in marketing and advertising costs for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. These increases were partially offset by a decrease of $3.7 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Current wording

Sales and marketing expense increased by $33.4 million, or 18%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in sales and marketing expense was primarily driven by an increase of $28.7 million in personnel-related costs, which included a $6.9 million increase in stock-based compensation expense related to new equity granted as part of our annual performance cycle, as well as expense associated with equity awards that began vesting upon the successful completion of our IPO. This increase in personnel-related costs also included an increase of $2.6 million in sales commissions. There was an additional increase of $4.1 million in employee benefit expenses primarily related to health insurance and $3.5 million in marketing and advertising costs. Additionally, beginning in fiscal 2026, we shifted the roles of our customer success function to focus on both customer retention and customer expansion, and as a result, certain customer success costs are now being recorded in sales and marketing. These increases were partially offset by a decrease of $5.1 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

Research and development expense increased by $21.1 million, or 17%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. The increase in research and development expense was primarily driven by an increase of $24.4 million in personnel-related costs, which included a $5.8 million increase in stock-based compensation expense, driven by an increase in headcount, and an increase of $1.3 million in infrastructure and server costs. These increases were partially offset by a decrease of $3.6 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use and a decrease of $1.0 million in restructuring charges.

Current wording

Research and development expense increased by $33.7 million, or 18%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in research and development expense was primarily driven by an increase of $32.5 million in personnel-related costs, which included a $9.8 million increase in stock-based compensation expense, driven by an increase in headcount, an increase of $3.7 million in employee benefit expenses primarily related to health insurance and an increase of $3.2 million in infrastructure and server costs. These increases were partially offset by a decrease of $5.0 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

General and administrative expense increased by $41.1 million, or 50%, for the six months ended July 31, 2025, compared to the six months ended July 31, 2024. The increase in general and administrative expense was primarily driven by a $45.5 million increase in personnel-related costs primarily driven by an increase of $38.5 million in stock-based compensation. The increase in stock-based compensation includes $26.6 million related to performance-based RSUs granted to our Co-Founders in October 2024. The remainder of the increase reflected new awards issued as part of our annual performance cycle and expense associated with equity awards that began vesting upon the successful completion of our IPO. Additionally, there was an increase of $3.7 million in third-party consulting costs related to legal, consulting and audit services, and our allowance for credit losses increased $3.2 million for the six months ended July 31, 2025, compared to the six months ended July 31, 2024 as we further integrated acquired businesses and aligned our processes. These increases were partially offset by a decrease of $10.4 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. Additionally, the six months ended July 31, 2024 included acquisition-related costs of $1.8 million.

Current wording

General and administrative expense increased by $62.6 million, or 51%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in general and administrative expense was primarily driven by a $63.9 million increase in personnel-related costs primarily driven by an increase of $56.5 million in stock-based compensation. The increase in stock-based compensation includes $40.1 million related to performance-based RSUs granted to our Co-Founders in October 2024. The remainder of the increase reflected new awards issued as part of our annual performance cycle and expense associated with equity awards that began vesting upon the successful completion of our IPO. Additionally, there was an increase of $5.3 million in third-party consulting costs related to legal, consulting and audit services, and our allowance for credit losses increased $4.5 million for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024 as we further integrated acquired businesses and aligned our processes. There was an additional increase of $2.2 million in corporate insurance and employee benefit expenses primarily related to health insurance. These increases were partially offset by a decrease of $14.1 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

Other income, net, was $6.3 million for the six months ended July 31, 2025, compared to other expense, net, of $4.8 million for the six months ended July 31, 2024. The increase was primarily due to a $6.4 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $4.3 million due to a lower debt balance in the six months ended July 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Current wording

Other income, net, was $9.6 million for the nine months ended October 31, 2025, compared to other expense, net, of $6.8 million for the nine months ended October 31, 2024. The increase was primarily due to a $9.7 million increase in interest income due to a higher cash balance, as well as a decrease in interest expense of $6.2 million due to a lower debt balance in the nine months ended October 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Previous wording

We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges, acquisition-related items, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.

Current wording

We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges, acquisition-related items, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.

Previous wording

(1) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income for the impact of the non-GAAP adjustments above.

Current wording

(1) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income (loss) for the impact of the non-GAAP adjustments above.

Previous wording

Since our inception, we have financed our operations, capital expenditures and acquisitions primarily through issuance of redeemable convertible preferred stock, non-convertible preferred stock, and debt as well as through payments received from our customers. As of July 31, 2025, we had cash and cash equivalents of $471.5 million and $140.0 million available under the Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Current wording

Since our inception, we have financed our operations, capital expenditures and acquisitions primarily through issuance of redeemable convertible preferred stock, non-convertible preferred stock, debt and through payments received from our customers, as well as the proceeds from our initial public offering. As of October 31, 2025, we had cash and cash equivalents of $493.2 million and $140.0 million available under the Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Previous wording

In January 2023, we entered into a secured credit agreement with Wells Fargo Bank, N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we entered into an amendment to the secured credit agreement, effective October 1, 2024 (as amended, the “Credit Agreement”) that converted our existing term loan balance of $177.3 million and $70.0 million revolver facility to a term loan of $107.3 million (as amended, the“Term Loan”) and a revolver facility of $140.0 million, of which $70.0 million was initially drawn (as amended, the“Revolver Facility”). In January 2025 we repaid all amounts outstanding under the Revolver Facility.

Current wording

In January 2023, we entered into a secured credit agreement with Wells Fargo Bank, N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we entered into an amendment to the secured credit agreement, effective October 1, 2024 (as amended, the “Credit Agreement”) that converted our existing term loan balance of $177.3 million and $70.0 million revolver facility to a term loan of $107.3 million (as amended, the“Term Loan”) and a revolver facility of $140.0 million, of which $70.0 million was initially drawn (as amended, the“Revolver Facility”). In January 2025 we repaid all amounts outstanding under the Revolver Facility. The Credit Agreement contains the standard and customary covenants for agreements of this type, including various reporting, affirmative and negative covenants. Among other things, these covenants set forth minimum revenue thresholds, require the maintenance of minimum liquidity and establish certain limits to our and our subsidiaries’ ability to create or incur liens on assets, make acquisitions of or investments in businesses, engage in any material line of business substantially different from our current lines of business, incur additional indebtedness or contingent obligations, sell or dispose of assets, pay dividends and make loans or advances to employees.

Previous wording

The Term Loan and Revolver Facility will mature in January 2028 and bear interest at a floating rate at our option of either (i) a term Secured Overnight Financing Rate (“SOFR”), based rate for a specified interest period plus an applicable margin, which is initially 2.5% per annum and ranges from 2.25% to 3.00% per annum based on a ratio of outstanding debt to annual recurring revenue, or (ii) a base rate plus an applicable margin, which is initially 1.5% per annum and ranges from 1.25% to 2.0% per annum based on the ratio of total outstanding debt to annual recurring revenue. On the first day of each calendar quarter, we have been required to repay an aggregate principal amount equal to 0.25% of the aggregate original principal amount of the Term Loan, which repayment amount became fixed at approximately $0.3 million beginning January 1, 2025. The Revolver Facility will incur a 0.25% annual fee for undrawn amounts.

Current wording

The Term Loan and Revolver Facility will mature in January 2028 and bear interest at a floating rate at our option of either (i) a term Secured Overnight Financing Rate (“SOFR”), based rate for a specified interest period plus an applicable margin, which is initially 2.5% per annum and ranges from 2.25% to 3.00% per annum based on a ratio of outstanding debt to annual recurring revenue, or (ii) a base rate plus an applicable margin, which is initially 1.5% per annum and ranges from 1.25% to 2.0% per annum based on the ratio of total outstanding debt to annual recurring revenue. On the first day of each calendar quarter, we were required to repay an aggregate principal amount equal to 0.25% of the aggregate original principal amount of the Term Loan, which repayment amount became fixed at approximately $0.3 million beginning January 1, 2025. The Revolver Facility will incur a 0.25% annual fee for undrawn amounts.

Previous wording

As of July 31, 2025, we had total debt of $104.8 million, consisting of the outstanding principal balance of the Term Loan of $106.5 million, net of unamortized debt issuance costs of $1.7 million. There was no balance drawn under the Revolver Facility.

Current wording

As of October 31, 2025, we had total debt of $104.6 million, consisting of the outstanding principal balance of the Term Loan of $106.2 million, net of unamortized debt issuance costs of $1.6 million. There was no balance drawn under the Revolver Facility.

Previous wording

Net cash provided by operating activities was $25.8 million for the six months ended July 31, 2025. This primarily related to our net loss of $78.6 million and net cash outflows of $53.5 million from changes in our operating assets and liabilities. These were partially offset by non-cash charges of $157.8 million. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $21.7 million, an increase in deferred contract costs and contract assets of $13.7 million, an increase of $12.7 million in accounts receivable, and a decrease of lease liabilities of $6.2 million. These were partially offset by an increase of $2.9 million in accounts payable and other accrued expenses, an increase in prepaid expenses and other current assets of $8.5 million and an increase in other liabilities of $5.2 million.

Current wording

Net cash provided by operating activities was $69.6 million for the nine months ended October 31, 2025. This primarily related to our non-cash charges of $231.7 million, adjusted for our net loss of $118.1 million and net cash outflows of $44.1 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to an increase in deferred contract costs and contract assets of $24.2 million, an increase in accounts receivable of $15.4 million, a decrease of lease liabilities of $6.4 million, a decrease in accrued personnel related expenses of $6.0 million, an increase in prepaid expenses and other current assets of $1.6 million. These were partially offset by an increase in accounts payable and other accrued expenses of $6.9 million, and an increase in deferred revenue of $1.8 million.

Previous wording

Net cash provided by operating activities was $6.1 million for the six months ended July 31, 2024. This primarily related to our net loss of $91.7 million and net cash outflows of $27.5 million from changes in our operating assets and liabilities, adjusted for non-cash charges of $125.3 million. The primary drivers of the changes in our operating assets and liabilities relate to an increase in accounts receivable of $11.1 million, a decrease in deferred contract costs and contract assets of $8.2 million, a decrease in accrued personnel-related expenses of $3.4 million, a decrease of lease liabilities of $3.9 million, and an increase in prepaid expenses and other current assets of $3.4 million. These were partially offset by an increase in deferred revenue of $1.3 million. The changes in our operating assets and liabilities were primarily due to the growth of our business, timing of cash receipts from customers, timing of cash payments to our vendors and timing of payroll.

Current wording

Net cash provided by operating activities was $21.6 million for the nine months ended October 31, 2024. This primarily related to our non-cash charges of $184.9 million, adjusted for our net loss of $138.2 million and net cash outflows of $25.2 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to an increase in deferred contract costs and contract assets of $15.1 million, an increase in accounts receivable of $13.6 million, a decrease of lease liabilities of $7.8 million, and a decrease in accounts payable and other accrued expenses of $4.4 million. These were partially offset by an increase in accrued personnel related expenses of $9.1 million, a decrease in prepaid expenses and other current assets of $3.3 million, an increase in deferred revenue of $2.6 million, and an increase in other liabilities of $1.4 million.

Previous wording

Net cash used in investing activities was $13.8 million for the six months ended July 31, 2025. This consisted of cash outflows of $11.4 million for the investments in capitalized internal-use software and $2.4 million for the purchase of property and equipment.

Current wording

Net cash used in investing activities was $39.7 million for the nine months ended October 31, 2025. This primarily consisted of $19.8 million of cash paid, net of cash acquired for the acquisition of Conduit, and cash outflows of $15.5 million for the investments in capitalized internal-use software and $4.0 million for the purchase of property and equipment.

Previous wording

Net cash used in investing activities was $13.2 million for the six months ended July 31, 2024. This consisted of cash outflows of $10.2 million for the investments in capitalized internal-use software and $1.8 million for the purchase of property and equipment, and $1.2 million of cash paid, net of cash acquired for the acquisition of Convex.

Current wording

Net cash used in investing activities was $18.1 million for the nine months ended October 31, 2024. This consisted of cash outflows of $14.2 million for the investments in capitalized internal-use software and $2.8 million for the purchase of property and equipment, and $1.2 million of cash paid, net of cash acquired for the acquisition of Convex.

Previous wording

Net cash provided by financing activities was $17.3 million for the six months ended July 31, 2025. This consisted primarily of proceeds from the exercise of stock options of $18.4 million. This was partially offset by payments related to IPO costs of $0.6 million and the repayment of debt of $0.5 million.

Current wording

Net cash provided by financing activities was $21.1 million for the nine months ended October 31, 2025. This consisted primarily of proceeds from the exercise of stock options of $22.5 million. This was partially offset by the repayment of debt of $0.8 million, and payments related to IPO costs of $0.6 million.

Previous wording

Net cash used in financing activities was $12.4 million for the six months ended July 31, 2024. This consisted primarily of the repurchase of shares for the tax withholdings upon settlement of RSUs of $13.6 million, payments related to initial public offering costs of $0.8 million and the repayment of debt of $0.9 million. These were partially offset by proceeds from the exercise of stock options of $3.2 million.

Current wording

Net cash used in financing activities was $17.3 million for the nine months ended October 31, 2024. This consisted primarily of the repurchase of shares for the tax withholdings upon settlement of RSUs of $19.0 million, the repayment of debt of $1.4 million, and payments related to IPO costs of $0.9 million. These were partially offset by proceeds from the exercise of stock options of $4.3 million.

Previous wording

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period. As a result, our condensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

Current wording

As of the filing of this Quarterly Report, we are an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period until we are no longer an EGC or until we affirmatively and irrevocably opt out of the extended transition period. As a result, our condensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. As of July 31, 2025, our aggregate worldwide market value of common equity held by non-affiliates exceeded $700 million. As we meet all other applicable criteria under the Exchange Act, we expect that we will lose EGC status and become a large accelerated filer as of January 31, 2026.