Nutanix, Inc.

Previous wording

Nutanix, Inc. ("we," "us," "our," or "Nutanix") is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications and AI and managing data anywhere. Our vision is to simplify the deployment and operation of the increasingly distributed landscape of apps and data while freeing organizations to focus on business goals. Our mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth.

Current wording

Nutanix, Inc. ("we," "us," "our," or "Nutanix") is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications, deploying enterprise AI workloads and managing data anywhere. Our vision is to simplify the deployment and operation of the increasingly distributed landscape of apps and data while freeing organizations to focus on business goals. Our mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth.

Previous wording

The Nutanix Cloud Platform is designed to enable organizations to build hybrid multicloud infrastructure, providing a consistent cloud operating model with a single platform for running applications and managing data in core data centers, at the edge, and in public clouds, while supporting customer choice across server platforms, storage options, public and managed clouds, and container and virtualization platforms. The Nutanix Cloud Platform supports a wide variety of workloads with varied compute, storage, and network requirements, including business-critical applications, data platforms (including SQL, NoSQL, and vector databases and business intelligence applications), enterprise AI workloads (including machine learning, generative AI, and agentic AI), general-purpose workloads (including system infrastructure, networking, and security), end-user computing and virtual desktop infrastructure services, and cloud native applications (including modern, containerized applications).

Current wording

The Nutanix Cloud Platform is designed to enable organizations to build hybrid multicloud infrastructure, providing a consistent cloud operating model with a single platform for running applications and enterprise AI workloads, and managing data in core data centers, at the edge, and in public clouds, while supporting customer choice across server platforms, storage options, public and managed clouds, and container and virtualization platforms. The Nutanix Cloud Platform supports a wide variety of workloads with varied compute, storage, and network requirements, including business-critical applications, data platforms (including SQL, NoSQL, and vector databases and business intelligence applications), enterprise AI workloads (including machine learning, generative AI, and agentic AI), general-purpose workloads (including system infrastructure, networking, and security), end-user computing and virtual desktop infrastructure services, and cloud native applications (including modern, containerized applications).

Previous wording

We had a broad and diverse base of over 29,000 end customers as of October 31, 2025. We define the number of end customers as the number of end customers for which we have received an order by the last day of the period, excluding partners to which we have sold products for their own demonstration purposes. A single organization or customer may represent multiple end customers for separate divisions, segments or subsidiaries, and the total number of end customers may contract due to mergers, acquisitions, or other consolidation among existing end customers.

Current wording

We had a broad and diverse base of over 30,000 end customers as of January 31, 2026. We define the number of end customers as the number of end customers for which we have received an order by the last day of the period, excluding partners to which we have sold products for their own demonstration purposes. A single organization or customer may represent multiple end customers for separate divisions, segments or subsidiaries, and the total number of end customers may contract due to mergers, acquisitions, or other consolidation among existing end customers.

Previous wording

Ratable—We recognize revenue from software maintenance subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software maintenance subscriptions and support subscriptions. These offerings represented approximately $274.4 million of our subscription revenue for the three months ended October 31, 2024 and $307.3 million of our subscription revenue for the three months ended October 31, 2025.

Current wording

Ratable—We recognize revenue from software maintenance subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software maintenance subscriptions and support subscriptions. These offerings represented approximately $286.1 million and $560.5 million of our subscription revenue for the three and six months ended January 31, 2025, respectively, and $320.8 million and $628.1 million of our subscription revenue for the three and six months ended January 31, 2026, respectively.

Previous wording

Upfront — We generally recognize revenue from our subscription software licenses upfront upon the transfer of control to the customer. For sales that include a server from a channel partner or OEM, revenue is typically recognized upon shipment of the server. For sales of software sold without a server, revenue is typically recognized when the software is made available to the customer. These subscription software licenses represented approximately $286.3 million of our subscription revenue for the three months ended October 31, 2024 and $330.5 million of our subscription revenue for the three months ended October 31, 2025.

Current wording

Upfront — We generally recognize revenue from our subscription software licenses upfront upon the transfer of control to the customer. For sales of our software purchased alongside a server from an OEM or other partner, revenue is typically recognized upon shipment of the server. For software sold separately from a server, revenue is typically recognized when the software is made available to the customer. These subscription software licenses represented approximately $338.3 million and $624.6 million of our subscription revenue for the three and six months ended January 31, 2025, respectively, and $369.7 million and $700.3 million of our subscription revenue for the three and six months ended January 31, 2026, respectively.

Previous wording

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed. Professional services revenue was approximately $27.3 million for the three months ended October 31, 2024 and $28.9 million for the three months ended October 31, 2025.

Current wording

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed. Professional services revenue was approximately $28.0 million and $55.3 million for the three and six months ended January 31, 2025, respectively, and $30.4 million and $59.3 million for the three and six months ended January 31, 2026, respectively.

Previous wording

We plan to continue to leverage our relationships with our channel and OEM partners and expand our network of cloud and ecosystem partners, all of which help to drive the adoption and sale of our solutions with our end customers. We sell our solutions primarily through our partners, and our solutions primarily run on hardware platforms that our customers often choose to purchase from our channel or OEM partners. We believe that increasing channel leverage, particularly as we expand our focus on opportunities in commercial accounts, by investing in sales enablement and co-marketing with our channel and OEM partners in the long term will extend and improve our engagement with a broad set of end customers. Our reliance on manufacturers, including our channel and OEM partners, to produce the hardware platforms on which our software runs exposes us to supply chain delays, which could impair our ability to provide services to end customers in a timely manner. Our business and results of operations will be significantly affected by our success in leveraging our relationships with our channel and OEM partners and expanding our network of cloud and ecosystem partners.

Current wording

We plan to continue to leverage our relationships with our channel and OEM partners and expand our network of cloud and ecosystem partners, all of which help to drive the adoption and sale of our solutions with our end customers. We sell our solutions primarily through our partners, and our solutions primarily run on hardware platforms that our customers often choose to purchase from our channel or OEM partners. We believe that increasing channel leverage, particularly as we expand our focus on opportunities in commercial accounts, by investing in sales enablement and co-marketing with our channel and OEM partners over the long term will extend and improve our engagement with a broad set of end customers. Our reliance on manufacturers to produce the hardware platforms on which our software runs exposes us to supply chain delays, which could impair our ability to provide services to end customers in a timely manner. In the latter half of the second quarter of fiscal of 2026, constraints affecting the availability of certain hardware components at manufacturers became increasingly acute, extending hardware lead times. These extended lead times have delayed, and may continue to delay, customers' ability to deploy hardware and consume our software, which affects the timing of revenue recognition and cash flows from period to period. While a majority of our customer transactions involve a software‑only fulfillment motion, in a subset of transactions, customers previously purchased our software in connection with Nutanix‑branded NX‑series hardware platforms. To provide customers in these transactions with greater flexibility when facing extended hardware lead times, beginning in the third quarter of fiscal 2026, we enabled these customers to purchase our software independently of hardware delivery, thereby aligning software provisioning for these transactions with our existing software‑only fulfillment motion. This may impact the timing of revenue recognition and our ARR. Our business and results of operations will be significantly affected by our success in leveraging our relationships with our channel and OEM partners and expanding our network of cloud and ecosystem partners.

Previous wording

Our end customers typically deploy our technology for a specific workload initially. After a new end customer's initial order, which includes the product and associated software maintenance subscriptions, support subscription and services, we focus on expanding our footprint by serving more workloads. We also generate recurring revenue from renewals, and given our subscription-focused business model, these renewals are having an increasing significance for our future revenue streams as existing subscriptions come up for renewal. We view continued purchases and upgrades as critical drivers of our success. As of October 31, 2025, our net dollar-based retention rate ("NRR") was 109%, compared to 112% as of October 31, 2024. NRR is calculated as of the end of a twelve-month period. We calculate NRR by starting with the ARR for all customers with subscription contracts at the beginning of the period. We then divide end-of-the-period ARR for the same customer group by the beginning-of-the-period ARR. NRR is a performance measure that we believe provides useful information to our management and investors as it provides an indication of our ability to retain and expand ARR from our existing customer base.

Current wording

Our end customers typically deploy our technology for a specific workload initially. After a new end customer's initial order, which includes the product and associated software maintenance subscriptions, support subscription and services, we focus on expanding our footprint by serving more workloads. We also generate recurring revenue from renewals, and given our subscription-focused business model, these renewals are having an increasing significance for our future revenue streams as existing subscriptions come up for renewal. We view continued purchases and upgrades as critical drivers of our success. As of January 31, 2026, our net dollar-based retention rate ("NRR") was 107%, compared to 109% as of January 31, 2025. NRR is calculated as of the end of a twelve-month period. We calculate NRR by starting with the ARR for all customers with subscription contracts at the beginning of the period. We then divide end-of-the-period ARR for the same customer group by the beginning-of-the-period ARR. NRR is a performance measure that we believe provides useful information to our management and investors as it provides an indication of our ability to retain and expand ARR from our existing customer base.

Previous wording

Product revenue —Product revenue primarily consists of software revenue. A majority of our product revenue is generated from the sale of the Nutanix Cloud Platform. We also sell renewals of previously purchased software licenses and SaaS offerings. We recognize revenue from our software products upon the transfer of control to the customer. For sales that include a server from a channel partner or OEM, revenue is typically recognized upon shipment of the server. For sales of software sold without a server, revenue is typically recognized when the software is made available to the customer. For our SaaS offerings, revenue is typically recognized as the services are performed. In the infrequent transactions where the hardware is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis.

Current wording

Product revenue —Product revenue primarily consists of software revenue. A majority of our product revenue is generated from the sale of the Nutanix Cloud Platform. We also sell renewals of previously purchased software licenses and SaaS offerings. We recognize revenue from our software products upon the transfer of control to the customer. For sales of our software purchased alongside a server from an OEM or other partner, revenue is typically recognized upon shipment of the server. For software sold separately from a server, revenue is typically recognized when the software is made available to the customer. For our SaaS offerings, revenue is typically recognized as the services are performed. In the infrequent transactions where the hardware is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis.

Previous wording

Provision for income taxes consists primarily of income taxes for certain foreign jurisdictions in which we conduct business and federal and state income taxes in the United States. We have recorded a full valuation allowance related to our federal and state net operating losses and other net deferred tax assets due to the uncertainty of the ultimate realization of the future benefits of those assets.

Current wording

Provision for income taxes consists primarily of income taxes for certain foreign jurisdictions in which we conduct business and federal and state income taxes in the United States. We continue to maintain a full valuation allowance against our U.S. federal and state deferred tax assets as of January 31, 2026. We will continue to maintain a full valuation allowance on our U.S. net deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of this allowance. However, given our recent history of profitable operating results and current and anticipated future earnings, we believe that if current trends persist, there is a reasonable possibility that over the next several quarters, sufficient positive evidence may become available to allow us to reach the conclusion that a significant portion of the valuation allowance will no longer be needed. The release of all, or a portion of, the valuation allowance would result in the recognition of certain deferred tax assets and a decrease in income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to significant judgment and our analysis of positive and negative factors.

Previous wording

The One Big Beautiful Bill Act ("OBBBA"), signed into law on July 4, 2025, has officially repealed the amortization requirement under IRC Section 174, restoring immediate expensing for domestic R&E expenditures. Effective for taxable years beginning after December 31, 2024, taxpayers may deduct domestic R&E expenditures immediately and for the R&E expenditures capitalized from 2022 to 2024, OBBBA also allows taxpayers to make an election to accelerate the deductions over one year or two years. We have assessed the impact of OBBBA on our fiscal 2026 provision for income taxes and determined that there is no material impact to our financial statements for fiscal 2026.

Current wording

The One Big Beautiful Bill Act ("OBBBA"), signed into law on July 4, 2025, has officially repealed the amortization requirement under IRC Section 174, restoring immediate expensing for domestic research and experimental ("R&E") expenditures. Effective for taxable years beginning after December 31, 2024, taxpayers may deduct domestic R&E expenditures immediately and for the R&E expenditures capitalized from 2022 to 2024, OBBBA also allows taxpayers to make an election to accelerate the deductions over one year or two years. We have assessed the impact of OBBBA on our fiscal 2026 provision for income taxes and determined that there is no material impact to our financial statements for fiscal 2026.

Previous wording

Comparison of the Three Months Ended October 31, 2024 and 2025

Current wording

Comparison of the Three and Six Months Ended January 31, 2025 and 2026

Previous wording

Product revenue increased by approximately $47.1 million, or 16%, for the three months ended October 31, 2025, as compared to the prior year period, due primarily to increases in software revenue as a result of increased adoption of our products, driven by growth in software renewals and the various programs we have put in place to attract new customers onto our platform and expand with existing customers.

Current wording

Product revenue increased by approximately $33.2 million, or 9%, and $80.3 million, or 12%, for the three and six months ended January 31, 2026, respectively, as compared to the respective prior year periods, due primarily to increases in software revenue as a result of increased adoption of our products, driven by growth in software renewals and the various programs we have put in place to attract new customers onto our platform and expand with existing customers.

Previous wording

Support, maintenance and other services revenue increased by approximately $32.5 million, or 11%, for the three months ended October 31, 2025, as compared to the prior year period, in conjunction with the growth of our end customer base, which grew approximately 10% from October 31, 2024 to October 31, 2025, and the related software maintenance and support subscription contracts and renewals.

Current wording

Support, maintenance and other services revenue increased by approximately $34.9 million, or 12%, and $67.5 million, or 11%, for the three and six months ended January 31, 2026, respectively, as compared to the respective prior year periods, in conjunction with the growth of our end customer base, which grew approximately 11% from January 31, 2025 to January 31, 2026, and the related software maintenance and support subscription contracts and renewals.

Previous wording

For the three months ended October 31, 2024, the total average contract duration was approximately 3.1 years. For the three months ended October 31, 2025, the total average contract duration was approximately 3.1 years. Total average contract duration represents the dollar-weighted term across all subscription contracts, as well as our limited number of life-of-device contracts billed during the period, using an assumed term of five years for licenses without a specified term, such as life-of-device licenses.

Current wording

For both the three and six months ended January 31, 2025, the total average contract duration was approximately 3.0 years. For both the three and six months ended January 31, 2026, the total average contract duration was approximately 3.1 years. Total average contract duration represents the dollar-weighted term across all subscription contracts, as well as our limited number of life-of-device contracts billed during the period, using an assumed term of five years for licenses without a specified term, such as life-of-device licenses.

Previous wording

Cost of product revenue decreased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to decreases in overhead resulting from lower operating and finance lease costs.

Current wording

Cost of product revenue decreased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to decreases in overhead resulting from lower operating lease and finance lease costs.

Previous wording

Product gross margin increased by approximately 1.6 percentage points for the three months ended October 31, 2025, as compared to the prior year period, due primarily to product revenue increasing while cost of product revenue decreased.

Current wording

Product gross margin increased by approximately 1.0 percentage points and 1.2 percentage points for the three and six months ended January 31, 2026, respectively, as compared to the respective prior year periods, due primarily to product revenue increasing while cost of product revenue decreased.

Previous wording

Cost of support, maintenance and other services revenue increased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to higher personnel-related costs, including costs for contractors, resulting from growth in our global customer support organization, as well as an increase in bonus expense and benefits costs.

Current wording

Cost of support, maintenance and other services revenue increased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to higher personnel-related costs, resulting from growth in our global customer support organization.

Previous wording

Support, maintenance and other services gross margin decreased by approximately 0.2 percentage points for the three months ended October 31, 2025, as compared to the prior year period, due primarily to support, maintenance and other services revenue growing at a slower rate than personnel-related costs.

Current wording

Support, maintenance and other services gross margin decreased by approximately 0.1 percentage points for both the three and six months ended January 31, 2026, respectively, as compared to the respective prior year periods, due primarily to support, maintenance and other services revenue growing at a slower rate than personnel-related costs.

Previous wording

Sales and marketing expense increased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to higher personnel-related costs resulting from the 8% growth in our sales and marketing headcount from October 31, 2024 to October 31, 2025, as well as increased marketing spend on events.

Current wording

Sales and marketing expense increased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to higher personnel-related costs resulting from the 8% growth in our sales and marketing headcount from January 31, 2025 to January 31, 2026, as well as increased marketing spending on events.

Previous wording

Research and development expense increased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to higher personnel-related costs due to the 13% growth in our R&D headcount from October 31, 2024 to October 31, 2025, as well as an increase in bonus expense and benefits costs.

Current wording

Research and development expense increased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to higher personnel-related costs due to the 12% growth in our R&D headcount from January 31, 2025 to January 31, 2026, as well as an increase in IT and facilities costs.

Previous wording

General and administrative expense increased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to higher legal and outside services costs and higher personnel-related costs, resulting from the 9% growth in our G&A headcount from October 31, 2024 to October 31, 2025, as well as an increase in overhead resulting from higher operating and finance lease costs.

Current wording

General and administrative expense increased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to an increase in overhead resulting from higher operating lease and finance lease costs, higher personnel-related costs, resulting from the 10% growth in our G&A headcount from January 31, 2025 to January 31, 2026, higher legal and outside services costs, an increase in costs related to software licenses, as well as an increase in data center costs.

Previous wording

Other income (expense), net increased for the three months ended October 31, 2025, as compared to the prior year period, due primarily to an increase in interest income from our short-term investments, which increased from $358.8 million as of October 31, 2024 to $1,281.8 million as of October 31, 2025, partially offset by an increase in interest expense related to our convertible notes, as the 2029 Notes were issued in the second quarter of fiscal 2025.

Current wording

Other income (expense), net increased for the three and six months ended January 31, 2026, as compared to the respective prior year periods, due primarily to approximately $11.3 million of inducement expense recognized during the second quarter of fiscal 2025 related to the partial repurchase of the 2027 Notes as well as an increase in interest income from our short-term investments, which increased from approximately $670.7 million as of January 31, 2025 to $1,270.6 million as of January 31, 2026. The increase in other income (expense), net was partially offset by an increase in interest expense related to our convertible notes, as the 2029 Notes were issued during the second quarter of fiscal 2025.

Previous wording

Our principal sources of liquidity are cash, cash equivalents and marketable securities and net accounts receivable. As of October 31, 2025, we had approximately $780.4 million of cash and cash equivalents and $1,281.8 million of short-term investments, which were held for general corporate purposes. Our restricted cash balance was not material. Our cash, cash equivalents and short-term investments primarily consist of bank deposits, money market accounts and highly rated debt instruments of the U.S. government and its agencies and debt instruments of highly rated corporations. As of October 31, 2025, we had accounts receivable of approximately $335.9 million, net of allowances of $2.2 million.

Current wording

Our principal sources of liquidity are cash, cash equivalents and marketable securities and net accounts receivable. As of January 31, 2026, we had approximately $603.4 million of cash and cash equivalents and $1,270.6 million of short-term investments, which were held for general corporate purposes. Our restricted cash balance was not material. Our cash, cash equivalents and short-term investments primarily consist of bank deposits, money market accounts and highly rated debt instruments of the U.S. government and its agencies and debt instruments of highly rated corporations. As of January 31, 2026, we had accounts receivable of approximately $260.6 million, net of allowances of $2.8 million.

Previous wording

As of October 31, 2025, we had non-cancelable contractual purchase obligations of $166.9 million, all of which was short-term. These purchase obligations primarily include guarantees with contract manufacturers and purchase obligations and other commitments pertaining to our daily business operations.

Current wording

As of January 31, 2026, we had non-cancelable contractual purchase obligations of $152.7 million. These purchase obligations primarily include guarantees with contract manufacturers and purchase obligations and other commitments pertaining to our daily business operations.

Previous wording

As of October 31, 2025, we had aggregate future minimum lease payments under non-cancelable operating leases and finance leases of $189.7 million, of which $41.7 million was short-term. Non-cancelable leases include leases that have been executed, but not yet commenced. We lease offices, research and development facilities, and data centers under operating leases expiring through October 2030 and lease certain data center equipment under finance leases.

Current wording

As of January 31, 2026, we had aggregate future minimum lease payments under non-cancelable operating leases and finance leases of $240.6 million, of which $51.4 million was short-term. Non-cancelable leases include leases that have been executed, but not yet commenced. We lease offices, research and development facilities, and data centers under operating leases expiring through January 2033 and lease certain data center equipment under finance leases.

Previous wording

Net cash provided by operating activities was approximately $196.8 million for the three months ended October 31, 2025, compared to approximately $161.8 million for the three months ended October 31, 2024. The increase in cash provided by operating activities for the three months ended October 31, 2025 was due primarily to the increase in our net income from operations.

Current wording

Net cash provided by operating activities was approximately $394.2 million for the six months ended January 31, 2026, compared to approximately $383.4 million for the six months ended January 31, 2025. The increase in cash provided by operating activities for the six months ended January 31, 2026 was due primarily to the increase in our net income from operations.

Previous wording

Net cash used in investing activities of approximately $28.2 million for the three months ended October 31, 2024 included approximately $110.0 million of short-term investment purchases and $9.8 million of purchases of property and equipment, partially offset by $91.6 million of maturities of short-term investments.

Current wording

Net cash used in investing activities of approximately $375.5 million for the six months ended January 31, 2025 included approximately $493.2 million of short-term investment purchases and $44.4 million of purchases of property and equipment, partially offset by approximately $162.1 million of maturities of short-term investments.

Previous wording

Net cash used in investing activities of approximately $74.5 million for the three months ended October 31, 2025 included approximately $290.1 million of short-term investment purchases and $22.3 million of purchases of property and equipment, partially offset by approximately $236.6 million of maturities of short-term investments and $1.3 million of sales of short-term investments.

Current wording

Net cash used in investing activities of approximately $67.3 million for the six months ended January 31, 2026 included approximately $472.8 million of short-term investment purchases and $28.2 million of purchases of property and equipment, partially offset by approximately $431.7 million of maturities of short-term investments and $2.0 million of sales of short-term investments.

Previous wording

Net cash used in financing activities of approximately $72.2 million for the three months ended October 31, 2024 included approximately $79.3 million of taxes paid related to the net share settlement of equity awards, $20.1 million of repurchases of our Class A common stock, and $1.0 million of payments for finance lease obligations, partially offset by $28.1 million of proceeds from the sale of shares through employee equity incentive plans.

Current wording

Net cash provided by financing activities of approximately $408.8 million for the six months ended January 31, 2025 included approximately $848.0 million of net proceeds from the issuance of the 2029 Notes and $29.3 million of proceeds from the sale of shares through employee equity incentive plans, partially offset by approximately $220.1 million of repurchases of our Class A common stock, $148.2 million of taxes paid related to the net share settlement of equity awards, $95.5 million related to the partial repurchase of the 2027 Notes, $2.8 million of third-party debt issuance costs related to the issuance of the 2029 Notes, and $1.9 million of payments for finance lease obligations.

Previous wording

Net cash used in financing activities of approximately $111.4 million for the three months ended October 31, 2025 included approximately $89.2 million of taxes paid related to the net share settlement of equity awards and $50.2 million of repurchases of our Class A common stock, partially offset by approximately $29.0 million of proceeds from the sale of shares through employee equity incentive plans.

Current wording

Net cash used in financing activities of approximately $492.9 million for the six months ended January 31, 2026 included approximately $383.1 million of repurchases of our Class A common stock and $137.0 million of taxes paid related to the net share settlement of equity awards, partially offset by approximately $29.0 million of proceeds from the sale of shares through employee equity incentive plans.