Mastech Digital, Inc.

Previous wording

Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025 for a more detailed discussion of our significant accounting policies and critical accounting estimates. There were no material changes to these critical accounting policies during the six months ended June 30, 2026.

Current wording

Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025 for a more detailed discussion of our significant accounting policies and critical accounting estimates. There were no material changes to these critical accounting policies during the nine months ended September 30, 2026.

Previous wording

Revenues for the three months ended June 30, 2026 totaled $41.4 million, compared to $49.1 million for the corresponding three-month period in 2025. This 15.6% year-over-year revenue decrease reflected a 16.2% revenue decrease in our Talent segment and a 14.3% decline in our Data & AI segment. For the three months ended June 30, 2026, the Company had one client that had revenues in excess of 10% of total revenues (Fidelity 26.7%). For the three months ended June 30, 2025, the Company had three clients that each had revenues in excess of 10% of total revenues (Fidelity = 15.0%, Populus = 12.4% and CGI = 11.0%). The

Current wording

Revenues for the three months ended September 30, 2026 totaled $42.0 million, compared to $48.5 million for the corresponding three-month period in 2025. This 13.4% year-over-year revenue decrease reflected a 16.4% revenue decrease in our Talent segment and a 6.8% decline in our Data & AI segment. For the three months ended September 30, 2026, the Company had one client that had revenues in excess of 10% of total revenues (Fidelity 28.5%). For the three months ended September 30, 2025, the Company had three clients that each had revenues in excess of 10% of total revenues (Fidelity = 18.1%, Populus = 12.7% and CGI = 10.4%). The Company’s top ten clients represented approximately 62% and 59% of total revenues for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Revenues from our Data & AI segment totaled $13.5 million in the three months ended June 30, 2026, which decreased compared to $15.7 million in the corresponding period last year. The year-over-year decrease in revenues primarily reflects lower bookings during the second half of 2025, which resulted in a smaller pipeline of revenue generating engagements entering 2026. New bookings in the second quarter of 2026 totaled approximately $13.6 million, compared to bookings of $9.0 million in the second quarter of 2025, reflecting stronger demand for Data & AI services.

Current wording

Revenues from our Data & AI segment totaled $14.1 million in the three months ended September 30, 2026, which decreased compared to $15.2 million in the corresponding period last year. The decrease in Data & AI revenues primarily reflects lower time-and-material and staff augmentation engagement volumes compared to the prior-year period, partially offset by increased revenue from fixed-price projects. While bookings have increased during 2026, the associated revenue contribution from recently awarded projects has not yet fully offset the decline in revenue from existing engagements. New bookings in the third quarter of 2026 totaled approximately $10.8 million, compared to bookings of $8.4 million in the third quarter of 2025, reflecting stronger demand for Data & AI services.

Previous wording

Revenues from our Talent segment totaled $28.0 million in the three months ended June 30, 2026, compared to $33.4 million during the corresponding 2025 period. The year-over-year decline in revenue primarily reflects lower billable consultants in 2026. Billable consultants at June 30, 2026 totaled 594-consultants compared to 764-consultants one year earlier. Our average bill rate during the second quarter of 2026 was $92.17 per hour compared to $88.36 per hour in the corresponding 2025 quarter. The increase in average bill rate was due to higher value assignments during the second quarter of 2026 and was reflective of the types of skill sets that we deployed to clients.

Current wording

Revenues from our Talent segment totaled $27.9 million in the three months ended September 30, 2026, compared to $33.3 million during the corresponding 2025 period. The year-over-year decline in revenue primarily reflects lower billable consultants in 2026. Billable consultants at September 30, 2026 totaled 580-consultants compared to 734-consultants one year earlier. Our average bill rate during the third quarter of 2026 was $92.37 per hour compared to $89.65 per hour in the corresponding 2025 quarter. The increase in average bill rate was due to higher value assignments during the third quarter of 2026 and was reflective of the types of skill sets that we deployed to clients.

Previous wording

Gross profits in the second quarter of 2026 totaled $12.0 million, which was $1.8 million lower than the second quarter of 2025 gross profits. Gross profit as a percentage of revenue increased 90-basis points to 29.0% for the three-month period ended June 30, 2026, compared to 28.1% during the same period of 2025, driven by higher margins in both the Talent and Data & AI segments.

Current wording

Gross profit for the third quarter of 2026 totaled $12.0 million, a decrease of $1.4 million compared to the third quarter of 2025. Gross margin was 28.7% in the third quarter of 2026 compared to 27.8% in the corresponding 2025 period. Excluding severance expenses of $0.1 million and $0.3 million in the third quarters of 2026 and 2025, respectively, gross margin increased 70 basis points to 29.0% from 28.3%. This increase was driven by higher gross margins in both the Talent and Data & AI segments.

Previous wording

Gross margins from our Talent segment were 23.4% in the second quarter of 2026 compared to 23.0% during the corresponding quarter of 2025. This 40-basis point increase was due to higher quality placements and better pricing on new assignments in 2026.

Current wording

Gross margins from our Talent segment were 23.1% in the third quarter of 2026 compared to 23.0% during the corresponding quarter of 2025. This 10-basis point increase was due to higher quality placements and better pricing on new assignments in 2026.

Previous wording

SG&A expenses for the three months ended June 30, 2026, totaled $12.3 million or 29.7% of total revenues, compared to $13.8 million or 28.1% of total revenues for the three months ended June 30, 2025. When excluding the amortization of acquired intangible assets in 2026 and the amortization of acquired intangible assets, severance expense and finance and accounting transition expense in 2025, SG&A expense as a percentage of total revenues was 28.3% and 24.8%, respectively.

Current wording

SG&A expenses for the three months ended September 30, 2026, totaled $12.0 million or 28.6% of total revenues, compared to $12.6 million or 26.0% of total revenues for the three months ended September 30, 2025. When excluding the amortization of acquired intangible assets in both periods and the severance expense and finance and accounting transition expense in 2025, SG&A expense as a percentage of total revenues was 27.1% and 21.0%, respectively.

Previous wording

Fluctuations within SG&A expense components during the second quarter of 2026, compared to the second quarter of 2025, included the following:

Current wording

Fluctuations within SG&A expense components during the third quarter of 2026, compared to the third quarter of 2025, included the following:

Previous wording

Sales and marketing expense decreased by $0.8 million from the corresponding 2025 period. Sales and marketing expense in our Data & AI segment increased by $0.2 million, primarily reflecting higher marketing travel costs. Sales and marketing expense in our Talent segment decreased by $1.0 million, primarily due to lower payroll and related costs and reduced marketing expenditures.

Current wording

Sales and marketing expense was flat from the corresponding 2025 period. Sales and marketing expense in our Data & AI segment increased by $0.4 million, primarily reflecting higher payroll and related costs, as well as an increase in marketing costs. Sales and marketing expense in our Talent segment decreased by $0.4 million, primarily due to lower payroll and related costs.

Previous wording

Operations expenses increased by $0.3 million in the 2026 period compared to the corresponding 2025 period. Operations expense increased by $0.5 million in our Data & AI segment due to AI-related personnel investments and decreased by $0.2 million in our Talent segment due to lower payroll costs, partially offset by higher legal expense.

Current wording

Operations expenses increased by $0.5 million in the 2026 period compared to the corresponding 2025 period. Operations expense increased by $0.8 million in our Data & AI segment due to AI-related personnel investments and decreased by $0.3 million in our Talent segment due to lower payroll and related costs.

Previous wording

General and administrative expenses decreased by $0.1 million in the 2026 period compared to the corresponding 2025 period. General and administrative expenses in the Data & AI segment remained unchanged compared with the prior-year period. General and administrative expense in the Talent segment decreased by $0.1 million, primarily reflecting lower consulting costs.

Current wording

General and administrative expenses increased by $0.7 million in the 2026 period compared to the corresponding 2025 period. General and administrative expenses in the Data & AI segment were unchanged compared with the prior-year period. General and administrative expenses in the Talent segment increased by $0.7 million, primarily reflecting $0.5 million in higher salary and related costs, and an increase in both legal expenses and facilities costs.

Previous wording

Finance and accounting transition expense was $0.7 million and severance expense was $0.2 million in the 2025 period, compared to no expense in the second quarter of 2026. These costs related to the Company's transition of its finance and accounting function to India and consisted primarily of severance, duplicate personnel costs during the transition period, and travel associated with training and knowledge transfer.

Current wording

Finance and accounting transition expense was $0.9 million and severance expense was $0.8 million in the 2025 period, compared to no significant expense in the third quarter of 2026. These costs related to the Company's transition of its finance and accounting function to India and consisted primarily of severance, duplicate personnel costs during the transition period, and travel associated with training and knowledge transfer.

Previous wording

Other Income / (Expense) for the three months ended June 30, 2026, consisted of interest income of $260,000 and foreign exchange gains of $63,000. For the three months ended June 30, 2025, Other Income / (Expense) consisted of interest income of $190,000 and foreign exchange losses of ($7,000). The higher level of interest income primarily reflected higher average cash balances during the current-year period.

Current wording

Other Income / (Expense) for the three months ended September 30, 2026, consisted of interest income of $266,000 and foreign exchange losses of ($29,000). For the three months ended September 30, 2025, Other Income / (Expense) consisted of interest income of $266,000 and foreign exchange gains of $149,000.

Previous wording

Income tax expense for the three months ended June 30, 2026, totaled $98,000, compared with income tax expense of $75,000 for the three months ended June 30, 2025. The 2026 effective tax rate was significantly greater than (100%) due to non-deductible executive compensation and excess tax expense arising from stock-based compensation, combined with a near break-even pre-tax loss. By comparison, the effective tax rate for the three months ended June 30, 2025 was 35.7%.

Current wording

Income tax expense for the three months ended September 30, 2026, totaled $243,000, representing an effective tax rate on pre-tax income of 97.2%, compared with income tax expense of $294,000 for the three months ended September 30, 2025, which represented an effective tax rate on pre-tax income of 23.8%. The 2026 effective tax rate was significantly higher than the statutory rate, primarily due to non-deductible executive compensation, foreign and other items, and state taxes, applied to near break-even pre-tax income of $250,000.

Previous wording

Results of Operations for the Six Months Ended June 30, 2026 as Compared to the Six Months Ended June 30, 2025:

Current wording

Results of Operations for the Nine Months Ended September 30, 2026 as Compared to the Nine Months Ended September 30, 2025:

Previous wording

Revenues for the six months ended June 30, 2026 totaled $82.5 million, compared to $97.4 million for the corresponding six-month period in 2025. This 15.3% year-over-year revenue decrease reflected a 14.0% revenue decrease in our Talent segment and a 17.9% decline in our Data & AI segment. For the six months ended June 30, 2026 the Company had one client that had revenues in excess of 10% of total revenues (Fidelity 25.6%). For the six months ended June 30, 2025, the Company had three clients that each had revenues in excess of 10% of total revenues (Fidelity = 14.0%, Populus = 12.1% and CGI = 11.5%). The Company’s top ten clients represented approximately 60% and 58% of total revenues for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Revenues for the nine months ended September 30, 2026 totaled $124.5 million, compared to $145.9 million for the corresponding nine-month period in 2025. This 14.7% year-over-year revenue decrease reflected a 14.8% revenue decrease in our Talent segment and a 14.3% decline in our Data & AI segment. For the nine months ended September 30, 2026 the Company had one client that had revenues in excess of 10% of total revenues (Fidelity 26.6%). For the nine months ended September 30, 2025, the Company had three clients that each had revenues in excess of 10% of total revenues (Fidelity = 15.4%, Populus = 12.3% and CGI = 11.1%). The Company’s top ten clients represented approximately 60% and 58% of total revenues for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Below is a tabular presentation of revenues by reportable segment for the six months ended June 30, 2026 and 2025, respectively:

Current wording

Below is a tabular presentation of revenues by reportable segment for the nine months ended September 30, 2026 and 2025, respectively:

Previous wording

Revenues from our Data & AI segment totaled $26.1 million for the six months ended June 30, 2026, which decreased compared to $31.7 million in the corresponding period in 2025. The year-over-year decrease in revenues primarily reflects lower bookings during the second half of 2025, which resulted in a smaller pipeline of revenue-generating engagements entering 2026. Order bookings for the first six months of 2026 totaled approximately $27.2 million, compared with $24.3 million for the corresponding period in 2025, reflecting stronger demand for Data & AI services.

Current wording

Revenues from our Data & AI segment totaled $40.2 million for the nine months ended September 30, 2026, which decreased compared to $46.9 million in the corresponding period in 2025. The decrease in Data & AI revenues primarily reflects lower time-and-material and staff augmentation engagement volumes entering 2026, partially offset by higher fixed-price revenue in the third quarter. As newer projects ramp up, the year-over-year revenue decline has moderated in recent quarters. Order bookings for the first nine months of 2026 totaled approximately $38.0 million, compared with $32.7 million for the corresponding period in 2025, reflecting stronger demand for Data & AI services.

Previous wording

Revenues from our Talent segment totaled $56.5 million in the six months ended June 30, 2026, compared to $65.7 million during the corresponding 2025 period. The year-over-year decline in revenue primarily reflects lower billable consultants in 2026. Billable consultants at June 30, 2026 totaled 594-consultants compared to 764-consultants one year earlier.

Current wording

Revenues from our Talent segment totaled $84.3 million in the nine months ended September 30, 2026, compared to $99.0 million during the corresponding 2025 period. The year-over-year decline in revenue primarily reflects lower billable consultants in 2026. Billable consultants at September 30, 2026 totaled 580-consultants compared to 734-consultants one year earlier.

Previous wording

Gross profits in the six months ended June 30, 2026 totaled $23.0 million compared to $26.7 million in the corresponding period last year. Gross profit as a percentage of revenue was 27.9% for the six months ended June 30, 2026, compared to 27.4% during the same period of 2025. This 50-basis point increase in gross margins was driven by higher margins in both the Talent and Data & AI segments.

Current wording

Gross profits in the nine months ended September 30, 2026 totaled $35.1 million compared to $40.2 million in the corresponding period last year. Gross profit as a percentage of revenue was 28.2% for the nine months ended September 30, 2026, compared to 27.5% during the same period of 2025. Excluding severance expenses of $0.1 million and $0.3 million for the nine months ended September 30, 2026 and 2025, respectively, gross margin increased 60 basis points to 28.3% from 27.7%.

Previous wording

Below is a tabular presentation of gross margin by reporting segment for the six months ended June 30, 2026 and 2025, respectively:

Current wording

Below is a tabular presentation of gross margin by reporting segment for the nine months ended September 30, 2026 and 2025, respectively:

Previous wording

Gross margins from our Data & AI segment were 38.9% of revenues during the six months ended June 30, 2026, which represented an increase of 50-basis points compared to 38.4% of revenues during corresponding period of 2025. The increase primarily reflected normal fluctuations in project mix and engagement profitability.

Current wording

Gross margins from our Data & AI segment were 39.4% of revenues during the nine months ended September 30, 2026, which represented an increase of 50-basis points compared to 38.9% of revenues during the corresponding period of 2025. The increase primarily reflected normal fluctuations in project mix and engagement profitability. Including severance expenses of $0.1 million and $0.3 million for the nine months ended September 30, 2026 and 2025, respectively, gross margin for the segment increased to 39.2% in 2026 from 38.3% in 2025.

Previous wording

Gross margins from our Talent segment were 22.8% in the six months ended June 30, 2026, compared to 22.1% during the corresponding period of 2025. This 70-basis point increase was due to higher quality placements and better pricing on new assignments in 2026.

Current wording

Gross margins from our Talent segment were 22.9% in the nine months ended September 30, 2026, compared to 22.4% during the corresponding period of 2025. This 50-basis point increase was due to higher quality placements and better pricing on new assignments in 2026.

Previous wording

Below is a tabular presentation of operating expenses by expense category for the six months ended June 30, 2026 and 2025, respectively:

Current wording

Below is a tabular presentation of operating expenses by expense category for the nine months ended September 30, 2026 and 2025, respectively:

Previous wording

SG&A expenses for the six months ended June 30, 2026, totaled $23.3 million or 28.2% of total revenues, compared to $28.5 million or 29.3% of total revenues for the six months ended June 30, 2025. When excluding the amortization of acquired intangible assets in 2026 and the amortization of acquired intangible assets, severance expense and finance and accounting transition expense in 2025, SG&A expense as a percentage of total revenues was 26.8% and 25.6%, respectively.

Current wording

SG&A expenses for the nine months ended September 30, 2026, totaled $35.3 million or 28.4% of total revenues, compared to $41.2 million or 28.2% of total revenues for the nine months ended September 30, 2025. When excluding the amortization of acquired intangible assets in both periods and the severance expense and finance and accounting transition expense in 2025, SG&A expense as a percentage of total revenues was 26.9% and 24.1%, respectively.

Previous wording

Fluctuations within SG&A expense components during the first six months of 2026, compared to the first six months of 2025, included the following:

Current wording

Fluctuations within SG&A expense components during the first nine months of 2026, compared to the first nine months of 2025, included the following:

Previous wording

Sales and marketing expense was $2.2 million lower in the 2026 period compared to the corresponding 2025 period. Sales and marketing expense in our Data & AI segment decreased by $0.3 million, primarily due to lower payroll and related costs, partially offset by higher marketing and consulting costs. Sales and marketing expense in our Talent segment decreased by $1.9 million, resulting from lower payroll and related costs, as well as reduced marketing spend.

Current wording

Sales and marketing expense was $2.2 million lower in the 2026 period compared to the corresponding 2025 period. Sales and marketing expense in our Data & AI segment increased by $0.1 million, primarily due to marketing costs, partially offset by lower payroll and related expense. Sales and marketing expense in our Talent segment decreased by $2.3 million, resulting from lower payroll and related costs, as well as reduced marketing spend.

Previous wording

Operations expenses decreased by $0.1 million in the 2026 period compared to the corresponding 2025 period. Operations expense in the Data & AI segment increased by $0.8 million, primarily due to AI-related personnel investments. Operations expense in the Talent segment decreased by $0.9 million, primarily due to workforce reductions, partially offset by higher legal expenses.

Current wording

Operations expenses increased by $0.3 million in the 2026 period compared to the corresponding 2025 period. Operations expense in the Data & AI segment increased by $1.6 million, primarily due to AI-related personnel investments. Operations expense in the Talent segment decreased by $1.3 million, primarily due to workforce reductions.

Previous wording

General and administrative expenses decreased by $0.5 million in the 2026 period compared to the corresponding 2025 period. General and administrative expenses in our Data & AI segment decreased by $0.4 million primarily due to lower recruiting costs and the absence of bad debt expense incurred in the prior-year period. In our Talent segment, general and administrative expenses decreased by $0.1 million as a result of several individually immaterial items.

Current wording

General and administrative expenses increased by $0.2 million in the 2026 period compared to the corresponding 2025 period. General and administrative expenses in our Data & AI segment decreased by $0.5 million primarily due to lower payroll and related costs, partially offset by higher facility costs. In our Talent segment, general and administrative expenses increased by $0.7 million primarily due to payroll and related costs.

Previous wording

SG&A included severance expense and finance and accounting transition expense of $1.6 million and $0.7 million in the 2025 period, respectively, compared to no similar expenses in the 2026 period. The expenses related to the departure of the Company's former Chief Financial Officer and the Company's transition of its finance and accounting function to India which consisted primarily of severance, duplicate personnel costs during the transition period, and travel associated with training and knowledge transfer.

Current wording

SG&A included severance expense and finance and accounting transition expense of $2.5 million and $1.6 million in the 2025 period, respectively, compared to no significant expenses in the 2026 period. The expenses related to the departure of the Company's former Chief Financial Officer and Talent segment Sales Management, and the Company's transition of its finance and accounting function to India which consisted primarily of severance, duplicate personnel costs during the transition period, and travel associated with training and knowledge transfer.

Previous wording

Other Income / (Expense) for the six months ended June 30, 2026, consisted of interest income of $548,000 and foreign exchange gains of $381,000. For the six months ended June 30, 2025, Other Income / (Expense) consisted of interest income of $305,000 and foreign exchange losses of ($31,000). The higher level of interest income primarily reflected higher average cash balances during the current six month period.

Current wording

Other Income / (Expense) for the nine months ended September 30, 2026, consisted of interest income of $814,000 and foreign exchange gains of $352,000. For the nine months ended September 30, 2025, Other Income / (Expense) consisted of interest income of $571,000 and foreign exchange gains of $118,000. The higher level of interest income primarily reflected higher average cash balances during the current nine month period.

Previous wording

Income tax expense for the six months ended June 30, 2026, totaled $491,000, representing an effective tax rate on pre-tax income of 75.0%, compared to an income tax benefit of ($248,000) for the six months ended June 30, 2025, which represented an effective tax rate on a pre-tax loss of (16.0%). The higher effective tax rate in the 2026 period primarily reflected non-deductible executive compensation and unfavorable tax effects associated with stock-based compensation.

Current wording

Income tax expense for the nine months ended September 30, 2026, totaled $734,000, representing an effective tax rate on pre-tax income of 81.1%, compared to income tax expense of $46,000 for the nine months ended September 30, 2025, which represented an effective tax rate on a pre-tax loss of (14.5%). The higher effective tax rate in the 2026 period primarily reflected non-deductible executive compensation, unfavorable tax effects associated with stock-based compensation and foreign and other items, and state taxes.

Previous wording

As of June 30, 2026, we had no bank debt, cash balances on hand of $35.6 million and approximately $20.4 million of borrowing capacity under our existing credit facility.

Current wording

As of September 30, 2026, we had no bank debt, cash balances on hand of $37.9 million and approximately $18.3 million of borrowing capacity under our existing credit facility.

Previous wording

Historically, we have funded our organic business needs with cash generated from operating activities. Controlling our operating working capital levels by closely managing our accounts receivable balance is an important element of cash generation. As of June 30, 2026, our accounts receivable “days sales outstanding” (“DSOs”) increased to 61-days, compared to 53-days reported at June 30, 2025.

Current wording

Historically, we have funded our organic business needs with cash generated from operating activities. Controlling our operating working capital levels by closely managing our accounts receivable balance is an important element of cash generation. As of September 30, 2026, our accounts receivable “days sales outstanding” (“DSOs”) increased to 56-days, compared to 55-days reported at September 30, 2025.

Previous wording

Cash (used in) operating activities for the six months ended June 30, 2026, totaled ($0.9) million compared to $0.4 million provided by operating activities during the six months ended June 30, 2025. Operating cash flows for the 2026 period were driven by net income of $0.2 million, non-cash charges of $4.2 million, and a ($5.3) million use of cash from changes in operating working capital. The use of cash from working capital was primarily attributable to a decrease in accrued payroll and related costs, reflecting the timing of annual bonus payments, as well as an increase in accounts receivable, and to a lesser extent decreases in accounts payable and other accrued liabilities and an increase in prepaid and other current assets

Current wording

Cash provided by operating activities for the nine months ended September 30, 2026, totaled $1.7 million compared to $6.8 million provided by operating activities during the nine months ended September 30, 2025. Operating cash flows for the 2026 period were driven by net income of $0.2 million, non-cash charges of $6.0 million, and a ($4.5) million use of cash from changes in operating working capital. The use of cash from working capital was primarily attributable to a decrease in accrued payroll and related costs, as well as an increase in prepaid and other current assets, and to a lesser extent decreases in accounts payable and other accrued liabilities. These uses of cash were partially offset by a decrease in accounts receivable.

Previous wording

In the prior year period, cash provided by operating activities reflected a net loss of ($1.3) million, non-cash charges of $3.3 million, and and a ($1.7) million use of cash from changes in operating working capital, primarily attributable to a decrease in accounts payable and accrued payroll and related costs, partially offset by a decrease in accounts receivable and prepaid and other current assets and an increase in other accrued liabilities.

Current wording

In the prior year period, cash provided by operating activities reflected a net loss of ($0.4) million, non-cash charges of $5.2 million, and a $1.9 million source of cash from changes in operating working capital, primarily attributable to a decrease in accounts receivable and an increase in accrued payroll and related costs, partially offset by a decrease in accounts payable and an increase in prepaid and other current assets.

Previous wording

Cash (used in) investing activities was ($0.1) million and ($0.2) million the six months ended June 30, 2026 and 2025. Investing activities in both periods consisted primarily of capital expenditures and changes in non-current deposits.

Current wording

Cash (used in) investing activities was ($0.4) million in both the nine months ended September 30, 2026 and 2025. Investing activities in both periods consisted primarily of capital expenditures and changes in non-current deposits.

Previous wording

Cash provided by financing activities for the six months ended June 30, 2026 totaled $0.8 million and consisted primarily of proceeds from the exercise of stock options of $0.8 million, and a small amount from the issuance of common shares related to our Employee Stock Purchase Plan. Cash provided by financing activities for the six months ended June 30, 2025, totaled $0.1 million and consisted of proceeds from the exercise of stock options and the issuance of common shares related to our Employee Stock Purchase Plan, partially offset by a small purchase of treasury shares.

Current wording

Cash provided by financing activities for the nine months ended September 30, 2026 totaled $0.8 million and consisted primarily of proceeds from the exercise of stock options of $0.8 million, and a small amount from the issuance of common shares related to our Employee Stock Purchase Plan. Cash used in financing activities for the nine months ended September 30, 2025, totaled ($1.0) million and consisted primarily of treasury stock purchases of ($1.6) million, partially offset by proceeds from the exercise of stock options of $0.5 million and the issuance of common shares related to our Employee Stock Purchase Plan.