Planet Labs PBC

Previous wording

In connection with the calculation of several of the key operational and business metrics we utilize, we calculate Annual Contract Value (“ACV”) for contracts of one year or greater as the total amount of value that a customer has contracted to pay for the most recent 12 month period for the contract. ACV includes imagery licensing arrangements, data solutions, and dedicated image tasking capacity but excludes customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts. For short-term contracts (contracts less than 12 months), ACV is equal to total contract value.

Current wording

In connection with the calculation of several of the key operational and business metrics we utilize, we calculate Annual Contract Value (“ACV”) for contracts of one year or greater as the total amount of value that a customer has contracted to pay for the most recent 12 month period for the contract. ACV includes imagery licensing arrangements, data solutions, and dedicated image tasking but excludes customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts. For short-term contracts (contracts less than 12 months), ACV is equal to total contract value.

Previous wording

We define Net Dollar Retention Rate as the percentage of ACV generated by existing customers in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We define existing customers as customers with an active contract with Planet. We believe our Net Dollar Retention Rate is a useful metric for investors as it can be used to measure our ability to retain and grow revenue generated from our existing customers, on which our ability to drive long-term growth and profitability is, in part, dependent. We use Net Dollar Retention Rate to assess customer adoption of new products, inform opportunities to make improvements across our products, identify opportunities to improve operations, and manage go to market functions, as well as to understand how much future growth may come from cross-selling and up-selling customers. Management applies judgment in determining the value of active contracts in a given period, as set forth in the definition of ACV above. Net Dollar Retention Rate increased to 113% for the three months ended April 30, 2026, as compared to 103% for the three months ended April 30, 2025, primarily due to large defense and intelligence contract expansions.

Current wording

We define Net Dollar Retention Rate as the percentage of ACV generated by existing customers in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We define existing customers as customers with an active contract with Planet. We believe our Net Dollar Retention Rate is a useful metric for investors as it can be used to measure our ability to retain and grow revenue generated from our existing customers, on which our ability to drive long-term growth and profitability is, in part, dependent. We use Net Dollar Retention Rate to assess customer adoption of new products, inform opportunities to make improvements across our products, identify opportunities to improve operations, and manage go to market functions, as well as to understand how much future growth may come from cross-selling and up-selling customers. Management applies judgment in determining the value of active contracts in a given period, as set forth in the definition of ACV above. Net Dollar Retention Rate increased to 109% for the six months ended July 31, 2026, as compared to 107% for the six months ended July 31, 2025, primarily due to large defense and intelligence contract expansions.

Previous wording

We assess two metrics for net dollar retention—Net Dollar Retention Rate, as described above, and Net Dollar Retention Rate including winbacks. A winback is a previously existing customer that was inactive at the start of the measurement period but has reactivated during the measurement period. The reactivation period must be within 24 months from the last active contract with the customer; otherwise, the customer is counted as a new customer and therefore excluded from the retention rate metrics. We define Net Dollar Retention Rate including winbacks as the percentage of ACV generated by existing customers and winbacks in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We believe this metric is useful to investors as it captures the value of customer contracts that resume business with Planet after being inactive and thereby provides a quantification of Planet’s ability to recapture lost business. Management uses this metric to understand the adoption of our products and long-term customer retention, as well as the success of marketing campaigns and sales initiatives in re-engaging inactive customers. Beyond the judgments underlying managements’ calculation of Net Dollar Retention Rate set forth above, there are no additional assumptions or estimates made in connection with Net Dollar Retention Rate including winbacks. Net Dollar Retention Rate including winbacks increased to 114% for the three months ended April 30, 2026, as compared to 104% for the three months ended April 30, 2025, primarily due to large defense and intelligence contract expansions.

Current wording

We assess two metrics for net dollar retention—Net Dollar Retention Rate, as described above, and Net Dollar Retention Rate including winbacks. A winback is a previously existing customer that was inactive at the start of the measurement period but has reactivated during the measurement period. The reactivation period must be within 24 months from the last active contract with the customer; otherwise, the customer is counted as a new customer and therefore excluded from the retention rate metrics. We define Net Dollar Retention Rate including winbacks as the percentage of ACV generated by existing customers and winbacks in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We believe this metric is useful to investors as it captures the value of customer contracts that resume business with Planet after being inactive and thereby provides a quantification of Planet’s ability to recapture lost business. Management uses this metric to understand the adoption of our products and long-term customer retention, as well as the success of marketing campaigns and sales initiatives in re-engaging inactive customers. Beyond the judgments underlying managements’ calculation of Net Dollar Retention Rate set forth above, there are no additional assumptions or estimates made in connection with Net Dollar Retention Rate including winbacks. Net Dollar Retention Rate including winbacks increased to 110% for the six months ended July 31, 2026, as compared to 108% for the six months ended July 31, 2025, primarily due to large defense and intelligence contract expansions.

Previous wording

Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature. We define ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts. ACV includes imagery licensing arrangements, data solutions, and dedicated image tasking capacity but excludes customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts. We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Planet Insights Platform self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business. We believe Percent of Recurring ACV is useful to investors to better understand how much of our revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature. We track Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results. There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV. Percent of Recurring ACV increased to 99% for the three months ended April 30, 2026, as compared to 97% for the three months ended April 30, 2025, primarily due to large defense and intelligence contract expansions.

Current wording

Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature. We define ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts. ACV includes imagery licensing arrangements, data solutions, and dedicated image tasking capacity but excludes customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts. We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Planet Insights Platform self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business. We believe Percent of Recurring ACV is useful to investors to better understand how much of our revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature. We track Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results. There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV. Percent of Recurring ACV was 98% for the six months ended July 31, 2026 and 2025.

Previous wording

We define capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. We define Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for our data services and related revenue, and to provide a comparable view of our performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. We use an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver our data to clients. As a result of our strategy and our business model, our capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, we believe it is important to look at our level of capital expenditure investments relative to revenue when evaluating our performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. We believe Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate our business and our relative capital efficiency. Capital Expenditures as a Percentage of Revenue increased to 19% for the three months ended April 30, 2026, as compared to 14% for the three months ended April 30, 2025. The increase was primarily attributable to an increase in capitalized labor and material related to the build of our next generation high resolution Pelican satellites and our medium resolution satellites. We expect our capital expenditures to continue to increase in the foreseeable future through purchases of property and equipment as we seek to grow the number of internal-use satellites in orbit. Additionally, working capital is expected to increase as we purchase raw materials inventories intended for customer-owned satellites.

Current wording

We define capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. We define Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for our data services and related revenue, and to provide a comparable view of our performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. We use an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver our data to clients. As a result of our strategy and our business model, our capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, we believe it is important to look at our level of capital expenditure investments relative to revenue when evaluating our performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. We believe Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate our business and our relative capital efficiency. Capital Expenditures as a Percentage of Revenue decreased to 25% for the three months ended July 31, 2026, as compared to 29% for the three months ended July 31, 2025. Capital Expenditures as a Percentage of Revenue was 22% for the six months ended July 31, 2026 and 2025. The decrease was primarily attributable to an increase in revenue and timing of purchases related to the build of our next generation high resolution Pelican satellites and our medium resolution satellites. We expect our capital expenditures to continue to increase in the foreseeable future through purchases of property and equipment as we seek to grow the number of internal-use satellites in orbit. Additionally, working capital is expected to increase as we purchase raw materials inventories intended for customer-owned satellites.

Previous wording

We also provide a small amount of other services to customers, including professional services such as training, analytical services, and other value-added activities related to our imagery, data and technology. These revenues are recognized as the services are rendered, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services and analytics contracts. Training revenues are recognized as the services are performed.

Current wording

We also provide a small amount of other services to customers, including professional services such as training, analytical services, and other value-added activities related to our imagery, data and technology. This revenue is recognized as the services are rendered, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services and analytics contracts. Training revenue is recognized as the services are performed.

Previous wording

Revenue increased $27.9 million, or 42%, to $94.2 million for the three months ended April 30, 2026 from $66.3 million for the three months ended April 30, 2025. The increase was primarily driven by a $24.7 million increase in the defense and intelligence vertical.

Current wording

Revenue increased $42.7 million, or 58%, to $116.1 million for the three months ended July 31, 2026 from $73.4 million for the three months ended July 31, 2025. The increase was primarily driven by a $39.1 million increase in the defense and intelligence vertical. The increase was primarily due to large contract expansions with existing customers and partially due to the delivery of satellite hardware, for which revenue was recognized at a point-in-time when control transferred.

Previous wording

Research and development expenses increased $10.3 million, or 45%, to $33.4 million for the three months ended April 30, 2026, from $23.1 million for the three months ended April 30, 2025. The increase was primarily due to a $6.3 million increase in employee-related costs, primarily due to increased headcount. The increase was also partially due to a $1.6 million increase in stock-based compensation expense and a $1.5 million increase in spacecraft hardware costs for research and development activities.

Current wording

Research and development expenses increased $11.0 million, or 46%, to $35.2 million for the three months ended July 31, 2026, from $24.2 million for the three months ended July 31, 2025. The increase was primarily due to a $5.8 million increase in employee-related costs, primarily due to increased headcount. The increase was also partially due to a $3.7 million increase in spacecraft hardware costs for research and development activities, a $1.7 million increase in stock-based compensation expense, and a $1.0 million increase in hosting costs. These increases were partially offset by a $3.0 million increase in funding recognized for our research and development arrangements.

Previous wording

Interest income increased $3.3 million to $5.2 million for the three months ended April 30, 2026, from $1.9 million for the three months ended April 30, 2025. The increase was primarily due to an increase in our cash equivalent and short-term investment balances.

Current wording

Interest income increased $4.3 million to $6.4 million for the three months ended July 31, 2026, from $2.2 million for the three months ended July 31, 2025. The increase was primarily due to an increase in our cash equivalent and short-term investment balances.

Previous wording

Interest expense increased $0.9 million to $1.4 million for the three months ended April 30, 2026, from $0.5 million for the three months ended April 30, 2025. The increase was primarily due to $0.7 million of amortization of deferred debt discount and issuance costs and $0.6 million of interest incurred on our 2030 Notes.

Current wording

Interest expense increased $1.1 million to $1.4 million for the three months ended July 31, 2026, from $0.3 million for the three months ended July 31, 2025. The increase was primarily due to amortization of deferred debt discount and issuance costs and interest incurred on our 2030 Notes.

Previous wording

Provision for income taxes was $1.0 million for the three months ended April 30, 2026 and was $0.9 million for the three months ended April 30, 2025. For the three months ended April 30, 2026 and 2025, the income tax expense was primarily driven by the current tax on foreign earnings. The effective tax rate for the three months ended April 30, 2026 and 2025 differed from the federal statutory tax rate primarily due to the valuation allowance on the majority of our U.S. and foreign deferred tax assets and foreign rate differences.

Current wording

Provision for income taxes was $0.7 million for the three months ended July 31, 2026 and was $0.5 million for the three months ended July 31, 2025. For the three months ended July 31, 2026 and 2025, the income tax expense was primarily driven by the current tax on foreign earnings. The effective tax rate for the three months ended July 31, 2026 and 2025 differed from the federal statutory tax rate primarily due to the valuation allowance on the majority of our U.S. and foreign deferred tax assets and foreign rate differences.

Previous wording

Cost of revenue increased $14.1 million, or 47%, to $43.7 million for the three months ended April 30, 2026, from $29.7 million for the three months ended April 30, 2025. The increase was primarily due to a $5.8 million increase in costs paid to solution partners and subcontractors, primarily related to our data solutions offerings. The increase was also partially due to a $2.6 million increase in spacecraft hardware costs and a $2.0 million increase in ground station expenses, both of which were related to fulfilling our satellite services contract performance obligations. The increase was also partially due to a $2.0 million increase in employee-related costs, due to the allocation of labor to fulfill our satellite services contract performance obligations and a $1.2 million increase in hosting costs.

Current wording

Cost of revenue increased $33.4 million, or 55%, to $94.2 million, for the six months ended July 31, 2026, from $60.8 million for the six months ended July 31, 2025. The increase was primarily due to a $11.8 million increase in spacecraft costs and a $4.0 million increase in ground station expenses, both of which were related to fulfilling our satellite services contract performance obligations. The increase was also partially due to a $10.5 million increase in costs paid to solution partners and subcontractors, primarily related to our data solutions offerings, a $3.3 million increase in hosting costs, and a $2.9 million increase in employee-related costs.

Previous wording

General and administrative expenses increased $9.1 million, or 46%, to $29.1 million for the three months ended April 30, 2026, from $20.0 million for the three months ended April 30, 2025. The increase was primarily due to a $6.2 million increase in legal expenses, which was primarily due to litigation contingency expenses. The increase was also partially due to a $1.7 million increase in employee-related costs, primarily due to increased headcount, and a $0.8 million increase in stock-based compensation expense.

Current wording

General and administrative expenses increased $13.1 million, or 34%, to $51.6 million for the six months ended July 31, 2026, from $38.5 million for the six months ended July 31, 2025. The increase was primarily due to a $6.2 million increase in legal expenses, which was primarily due to litigation contingency expenses. The increase was also partially due to a $3.4 million increase in employee-related costs, primarily due to increased headcount, and a $2.0 million increase in stock-based compensation expense.

Previous wording

The change in fair value of warrant liabilities for both the three months ended April 30, 2026 and 2025 represents the change in fair value of the public and private placement warrants, which primarily fluctuates based on the change in trading price of our Class A common stock and the impact of time decay as the time to expiration approaches.

Current wording

The change in fair value of warrant liabilities for the six months ended July 31, 2026 and 2025 represents the change in fair value of the public and private placement warrants, which primarily fluctuates based on the change in trading price of our Class A common stock and the impact of time decay as the time to expiration approaches.

Previous wording

An increasing and meaningful portion of our revenue is generated from contracts with the U.S. government and other government customers. Cancellation provisions, such as termination for convenience clauses, are common in contracts with the U.S. government and certain other government customers. We present Backlog because the portion of our customer contracts with such cancellation provisions represents a meaningful amount of our expected future revenues. Management uses backlog to more effectively forecast our future business and results, which supports decisions around capital allocation. It also helps us identify future growth or operating trends that may not otherwise be apparent. We also believe Backlog is useful for investors in forecasting our future results and understanding the growth of our business. Customer cancellation provisions relating to termination for convenience clauses and funding appropriation requirements are outside of our control, and as a result, we may fail to realize the full value of such contracts.

Current wording

An increasing and meaningful portion of our revenue is generated from contracts with the U.S. government and other government customers. Cancellation provisions, such as termination for convenience clauses, are common in contracts with the U.S. government and certain other government customers. We present Backlog because the portion of our customer contracts with such cancellation provisions represents a meaningful amount of our expected future revenue. Management uses backlog to more effectively forecast our future business and results, which supports decisions around capital allocation. It also helps us identify future growth or operating trends that may not otherwise be apparent. We also believe Backlog is useful for investors in forecasting our future results and understanding the growth of our business. Customer cancellation provisions relating to termination for convenience clauses and funding appropriation requirements are outside of our control, and as a result, we may fail to realize the full value of such contracts.

Previous wording

(1)Expenses relating to the Delaware class action lawsuit and an acquisition-related dispute. Refer to Note 8 “Commitments and Contingencies” to our condensed consolidated financial statements in Item 1 of this Form 10-Q.

Current wording

(1)Expenses relating to non-ordinary course legal matters. Refer to Note 8 “Commitments and Contingencies” to our condensed consolidated financial statements in Item 1 of this Form 10-Q.

Previous wording

Adjusted EBITDA does not reflect certain litigation expenses, consisting of legal fees and contingency accruals for certain proceedings, which reduces cash available to us;

Current wording

Adjusted EBITDA does not reflect certain litigation expenses, consisting of legal fees and contingency accruals for certain proceedings, which reduce cash available to us;

Previous wording

For remaining performance obligations as of April 30, 2026, the Company expects to recognize approximately 35% within the next 12 months, approximately 66% within the next 24 months, and the remainder thereafter. For Backlog as of April 30, 2026, the Company expects to recognize approximately 40% within the next 12 months, approximately 69% within the next 24 months, and the remainder thereafter.

Current wording

For remaining performance obligations as of July 31, 2026, the Company expects to recognize approximately 46% within the next 12 months, approximately 68% within the next 24 months, and the remainder thereafter. For Backlog as of July 31, 2026, the Company expects to recognize approximately 50% within the next 12 months, approximately 70% within the next 24 months, and the remainder thereafter.

Previous wording

Since inception, we have incurred net losses. We recorded positive net cash flows from operations for the three months ended April 30, 2026. Our operations have historically been primarily funded by the net proceeds from the sale of our debt and equity securities and borrowings under credit facilities, as well as cash received from our customers.

Current wording

Since inception, we have incurred net losses. We recorded positive net cash flows from operations for the three and six months ended July 31, 2026. Our operations have historically been primarily funded by the net proceeds from the sale of our debt and equity securities, borrowings under credit facilities, net proceeds received from our ATM Equity Offering, as well as cash received from our customers.

Previous wording

As of April 30, 2026 and January 31, 2026, we had $368.1 million and $229.4 million, respectively, in cash and cash equivalents. Additionally, as of April 30, 2026 and January 31, 2026, we had short-term investments of $362.7 million and $410.6 million, respectively, which are highly liquid in nature and available for current operations. We believe our anticipated operating cash flows together with our cash on hand provide us with the ability to meet our obligations as they become due during the next 12 months.

Current wording

As of July 31, 2026 and January 31, 2026, we had $415.1 million and $229.4 million, respectively, in cash and cash equivalents. Additionally, as of July 31, 2026 and January 31, 2026, we had short-term investments of $450.3 million and $410.6 million, respectively, which are highly liquid in nature and available for current operations. We believe our anticipated operating cash flows together with our cash on hand provide us with the ability to meet our obligations as they become due during the next 12 months.

Previous wording

Net cash provided by operating activities for the three months ended April 30, 2026 primarily consisted of the net loss of $138.9 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included a change in fair value of warrant liabilities of $106.5 million, stock-based compensation expense of $16.5 million, and depreciation and amortization expense of $11.2 million. The net change in operating assets and liabilities primarily consisted of a $22.5 million decrease in accounts receivable and a $4.1 million increase in accounts payable, accrued and other liabilities, which was partially offset by a $3.4 million increase in prepaid expenses and other assets.

Current wording

Net cash provided by operating activities for the six months ended July 31, 2026 primarily consisted of the net loss of $148.2 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included a change in fair value of warrant liabilities of $106.5 million, stock-based compensation expense of $33.5 million, and depreciation and amortization expense of $22.0 million. The net change in operating assets and liabilities primarily consisted of a $47.1 million increase in deferred revenue and a $23.9 million decrease in accounts receivable, which was partially offset by a $11.5 million increase in prepaid expenses and other assets.

Previous wording

Net cash provided by operating activities for the three months ended April 30, 2025, primarily consisted of the net loss of $12.6 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included stock-based compensation expense of $12.5 million and depreciation and amortization expense of $11.1 million, which were partially offset by a change in fair value of warrant liabilities of $10.4 million. The net change in operating assets and liabilities primarily consisted of a $42.1 million increase in deferred revenue, which were partially offset by a $21.2 million increase in accounts receivable and a $8.9 million decrease in accounts payable, accrued and other liabilities.

Current wording

Net cash provided by operating activities for the six months ended July 31, 2025 primarily consisted of the net loss of $35.2 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included stock-based compensation expense of $26.0 million and depreciation and amortization expense of $21.7 million, which were partially offset by a change in fair value of warrant liabilities of $4.7 million. The net change in operating assets and liabilities primarily consisted of a $75.8 million increase in deferred revenue, which was partially offset by a $4.3 million decrease in accounts payable, accrued and other liabilities.

Previous wording

Net cash provided by investing activities for the three months ended April 30, 2026 primarily consisted of sales of available-for-sale securities of $44.5 million and maturities of available-for-sale securities of $37.5 million, which were partially offset by purchases of available-for-sale securities of $33.4 million and purchases of property and equipment of $17.3 million.

Current wording

Net cash used in investing activities for the six months ended July 31, 2026 primarily consisted of purchases of available-for-sale securities of $208.5 million and purchases of property and equipment of $44.7 million, which were partially offset by maturities of available-for-sale securities of $113.0 million and sales of available-for-sale securities of $56.5 million.

Previous wording

Net cash provided by investing activities for the three months ended April 30, 2025, primarily consisted of maturities of available-for-sale securities of $11.1 million, partially offset by purchases of property and equipment of $8.1 million and capitalized internal-use software of $1.2 million.

Current wording

Net cash used in investing activities for the six months ended July 31, 2025 primarily consisted of purchases of property and equipment of $28.4 million and purchases of available-for-sale securities of $22.4 million, which were partially offset by maturities of available-for-sale securities of $27.1 million and sales of available-for-sale securities of $9.3 million.

Previous wording

Net cash provided by financing activities for the three months ended April 30, 2026 primarily consisted of proceeds from the exercise of warrants of $107.8 million and proceeds from the exercise of common stock options of $3.6 million, which were partially offset by payments for withholding taxes related to the net share settlement of equity awards of $17.3 million.

Current wording

Net cash provided by financing activities for the six months ended July 31, 2026 primarily consisted of proceeds from ATM equity offerings of $122.4 million and proceeds from the exercise of warrants of $107.8 million, which were partially offset by payments for withholding taxes related to the net share settlement of equity awards of $26.0 million.

Previous wording

Net cash used in financing activities for the three months ended April 30, 2025, primarily consisted of payments for withholding taxes related to the net share settlement of equity awards of $5.3 million and payments of contingent consideration for business acquisitions of $4.8 million, which was partially offset by proceeds from the exercise of common stock options of $3.0 million.

Current wording

Net cash used in financing activities for the six months ended July 31, 2025 primarily consisted of payments for withholding taxes related to the net share settlement of equity awards of $12.4 million and payments for contingent consideration for business acquisitions of $4.8 million, which were partially offset by proceeds from the exercise of common stock options of $8.5 million.

Previous wording

Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our unaudited condensed consolidated financial statements and related disclosures requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures. The accounting policies that have been identified as critical to our business operations and to understanding the results of our operations pertain to revenue recognition, and property and equipment and long-lived assets. The application of each of these critical accounting policies and estimates is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2026 Form 10-K.

Current wording

Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our unaudited condensed consolidated financial statements and related disclosures requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. The accounting policies that have been identified as critical to our business operations and to understanding the results of our operations pertain to revenue recognition, and property and equipment and long-lived assets. The application of each of these critical accounting policies and estimates is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2026 Form 10-K.