Cars.com Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
CARS$13.35-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-337949
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001193125-26-449769
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 64 previous paragraphs and 64 current paragraphs.
29 unchanged; 32 reworded; 2 added; 2 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Net income increased for the three and nine months ended September 30, 2026, compared to the same periods in 2025, primarily due to a decrease in amortization expense. The nine months ended September 30, 2026 increase was partially offset by $8.5 million of expense associated with an 11% reduction in workforce recorded in March 2026, as well as severance costs.
Current report
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Removed paragraphs (2)
Previous report
During the three months ended March 31, 2026, we recorded $8.5 million of expense associated with a plan to reduce our operating expenses and realign our resources via an 11% reduction in workforce. These costs are comprised of one-time termination benefits, substantially all of which is related to employee severance and substantially all of which was paid during the three months ended June 30, 2026.
Previous report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Reworded paragraphs (32)
Previous wording
UVs decreased 14% and 13% for the three and six months ended June 30, 2026, respectively, and Traffic decreased 12% and 9% for the three and six months ended June 30, 2026, respectively, which primarily reflects intentional marketing shifts towards effectively capturing high-intent consumer demand.
Current wording
UVs decreased 3% and 10% for the three and nine months ended September 30, 2026, respectively, and Traffic decreased 4% and 7% for the three and nine months ended September 30, 2026, respectively, which primarily reflects intentional marketing shifts towards capturing high-intent consumer demand.
Previous wording
For the three months ended June 30, 2026, Dealer Customers remained flat compared to each of the three months ended June 30, 2025 and March 31, 2026, as an increase in marketplace customers was offset by a decrease in digital solutions customers.
Current wording
For the three months ended September 30, 2026, Dealer Customers decreased slightly by 1% compared to the three months ended September 30, 2025 and remained flat compared to the three months ended June 30, 2026, as an increase in marketplace customers was offset by a decrease in digital solutions customers.
Previous wording
For the three months ended June 30, 2026, ARPD increased 3% compared to the three months ended June 30, 2025, primarily reflecting the adoption of new marketplace packages and ongoing improvements in value delivery, partially offset by declines in dealer media.
Current wording
For the three months ended September 30, 2026, ARPD increased 3% compared to the three months ended September 30, 2025, primarily reflecting the adoption of higher-tier marketplace packages driven by ongoing improvements in value delivery, partially offset by declines in dealer media.
Previous wording
For the three months ended June 30, 2026, ARPD increased 1% compared to the three months ended March 31, 2026, primarily reflecting the continued benefits of adoption of new marketplace packages and ongoing improvements in value delivery.
Current wording
For the three months ended September 30, 2026, ARPD increased 1% compared to the three months ended June 30, 2026, primarily reflecting the continued benefits of adoption of higher-tier marketplace packages and ongoing improvements in value delivery.
Previous wording
Dealer revenue. Dealer revenue is typically subscription-oriented and consists of marketplace, digital experience, including website solutions, trade and appraisal and media products sold to dealer customers. Dealer revenue is our largest revenue stream, representing 91% and 89% of total revenue for the three months ended June 30, 2026 and 2025, respectively. Dealer revenue increased $4.9 million or 3%, primarily due to growth in marketplace customers, partially offset by a decline in our media products.
Current wording
Dealer revenue. Dealer revenue is typically subscription-oriented and consists of marketplace, digital experience, including website solutions, trade and appraisal and media products sold to dealer customers. Dealer revenue is our largest revenue stream, representing 90% and 89% of total revenue for the three months ended September 30, 2026 and 2025, respectively. Dealer revenue increased $1.4 million or 1%, primarily due to increased adoption of higher-tier marketplace packages and growth in marketplace customers, partially offset by a decline in our media and solutions products.
Previous wording
OEM and National revenue. OEM and National revenue largely consists of media solutions products, including display advertising and other solutions to OEMs, advertising agencies, automotive dealer associations and auto adjacent businesses, including insurance companies. OEM and National revenue represented 7% and 9% of total revenue for the three months ended June 30, 2026 and 2025, respectively. OEM and National revenue decreased $3.0 million or 18%, primarily due to shifts in spending by OEM partners.
Current wording
OEM and National revenue. OEM and National revenue largely consists of media solutions products, including display advertising and other solutions to OEMs, advertising agencies, automotive dealer associations and auto adjacent businesses, including insurance companies. OEM and National revenue represented 9% of total revenue for each of the three months ended September 30, 2026 and 2025. OEM and National revenue decreased $0.5 million or 3%, primarily due to shifts in spending by OEM partners.
Previous wording
Other revenue. Other revenue primarily consists of revenue related to vehicle listing data sold to third parties. Other revenue represented 2% of total revenue for each of the three months ended June 30, 2026 and 2025. Other revenue decreased $0.7 million or 19%.
Current wording
Other revenue. Other revenue primarily consists of revenue related to vehicle listing data sold to third parties. Other revenue represented 1% and 2% of total revenue for the three months ended September 30, 2026 and 2025, respectively. Other revenue decreased $0.6 million or 18%.
Previous wording
Cost of revenue and operations. Cost of revenue and operations expense primarily consists of costs related to processing dealer vehicle inventory, product fulfillment and compensation and severance costs for the product fulfillment and customer service teams. Cost of revenue and operations expense represented 17% of total revenue for each of the three months ended June 30, 2026 and 2025. Cost of revenue and operations decreased $0.3 million or 1%, primarily due to lower compensation, partially offset by higher third-party costs.
Current wording
Cost of revenue and operations. Cost of revenue and operations expense primarily consists of costs related to processing dealer vehicle inventory, product fulfillment and compensation and severance costs for the product fulfillment and customer service teams. Cost of revenue and operations expense represented 17% of total revenue for each of the three months ended September 30, 2026 and 2025. Cost of revenue and operations increased $1.7 million or 6%, primarily due to third-party media costs, partially offset by lower compensation.
Previous wording
Product and technology. The product team creates and manages consumer and customer-facing innovation and consumer and customer experience. The technology team develops and supports our products, websites and mobile apps. Product and technology expense includes compensation costs, consulting and contractor costs, hardware and software maintenance, software licenses, other infrastructure costs, severance costs and costs related to the write-off of assets. Product and technology expense represented 15% and 16% of total revenue for the three months ended June 30, 2026 and 2025, respectively. Product and technology expense decreased $2.7 million or 9%, primarily due to lower compensation.
Current wording
Product and technology. The product team creates and manages consumer and customer-facing innovation and consumer and customer experience. The technology team develops and supports our products, websites and mobile apps. Product and technology expense includes compensation costs, consulting and contractor costs, hardware and software maintenance, software licenses, other infrastructure costs, severance costs and costs related to the write-off of assets. Product and technology expense represented 15% and 16% of total revenue for the three months ended September 30, 2026 and 2025, respectively. Product and technology expense decreased $0.5 million or 2%, primarily due to lower compensation, partially offset by cloud infrastructure costs.
Previous wording
Marketing and sales. Marketing and sales expense primarily consists of traffic and lead acquisition costs, performance and brand marketing, trade events, compensation costs and travel for the marketing, sales and sales support teams, severance costs and bad debt expense related to the allowance for doubtful accounts. Marketing and sales expense represented 34% and 32% of total revenue for the three months ended June 30, 2026 and 2025, respectively. Marketing and sales expense increased $2.7 million or 5%, primarily due to higher spend, building consumer awareness to more effectively capture high-intent demand.
Current wording
Marketing and sales. Marketing and sales expense primarily consists of traffic and lead acquisition costs, performance and brand marketing, trade events, compensation costs and travel for the marketing, sales and sales support teams, severance costs and bad debt expense related to the allowance for doubtful accounts. Marketing and sales expense represented 31% and 33% of total revenue for the three months ended September 30, 2026 and 2025, respectively. Marketing and sales expense decreased $2.9 million or 5%, primarily due to continued optimization of marketing investment and mix and lower compensation.
Previous wording
General and administrative. General and administrative expense primarily consists of compensation costs for certain of the executive, finance, legal, human resources, facilities and other administrative employees. In addition, general and administrative expense includes the cost of legal, accounting and other professional services, severance costs, office space, transformation and other exit costs and transaction-related costs. General and administrative expense represented 9% and 11% of total revenue for the three months ended June 30, 2026 and 2025, respectively. General and administrative expense decreased $3.5 million or 17%, primarily due to a reduction in costs as a result of the conclusion of the D2C Media earnout period and lower compensation, partially offset by higher third-party costs. For more information on the D2C Media earnout, see the "Liquidity and Capital Resources" section below.
Current wording
General and administrative. General and administrative expense primarily consists of compensation costs for certain of the executive, finance, legal, human resources, facilities and other administrative employees. In addition, general and administrative expense includes the cost of legal, accounting and other professional services, severance costs, office space, transformation and other exit costs and transaction-related costs. General and administrative expense represented 11% and 13% of total revenue for the three months ended September 30, 2026 and 2025, respectively. General and administrative expense decreased $3.0 million or 13%, primarily due to a reduction in costs as a result of the conclusion of the D2C Media earnout period and lower compensation, partially offset by higher severance-related costs. For more information on the D2C Media earnout, see the "Liquidity and Capital Resources" section below.
Previous wording
Depreciation and amortization. Depreciation and amortization expense decreased $17.9 million or 34%, primarily due to certain intangible assets being fully amortized as compared to the prior-year period and the accelerated depreciation associated with our amended headquarters office lease in the prior-year period.
Current wording
Depreciation and amortization. Depreciation and amortization expense decreased $7.1 million or 30%, primarily due to certain intangible assets being fully amortized as compared to the prior-year period.
Previous wording
Interest expense, net. Interest expense, net decreased $0.2 million or 3%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates as well as higher interest income. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
Interest expense, net. Interest expense, net decreased $0.4 million or 6%, primarily due to a reduction in total indebtedness compared to the prior-year period as well as higher interest income. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Dealer revenue. Dealer revenue represented 90% and 89% of total revenue for the six months ended June 30, 2026 and 2025, respectively. Dealer revenue increased $8.7 million or 3%, primarily due to growth in marketplace customers, ongoing improvements in value delivery and upgrades in website offerings, partially offset by a decline in our media products.
Current wording
Dealer revenue. Dealer revenue represented 90% and 89% of total revenue for the nine months ended September 30, 2026 and 2025, respectively. Dealer revenue increased $10.1 million or 2%, primarily due to increased adoption of higher-tier marketplace packages and growth in marketplace customers, partially offset by a decline in our media products.
Previous wording
OEM and National revenue. OEM and National revenue represented 8% and 9% of total revenue for the six months ended June 30, 2026 and 2025, respectively. OEM and National revenue decreased $5.0 million or 15%, primarily due to shifts in spending by OEM partners.
Current wording
OEM and National revenue. OEM and National revenue represented 8% and 9% of total revenue for the nine months ended September 30, 2026 and 2025, respectively. OEM and National revenue decreased $5.5 million or 11%, primarily due to shifts in spending by OEM partners, partially offset by a sequential quarterly increase in revenue from the three months ended June 30, 2026.
Previous wording
Other revenue. Other revenue represented 2% of total revenue for each of the six months ended June 30, 2026 and 2025. Other revenue decreased $1.3 million or 19%.
Current wording
Other revenue. Other revenue represented 2% of total revenue for each of the nine months ended September 30, 2026 and 2025. Other revenue decreased $1.9 million or 18%.
Previous wording
Cost of revenue and operations. Cost of revenue and operations expense represented 17% of total revenue for each of the six months ended June 30, 2026 and 2025. Cost of revenue and operations was essentially flat period over period.
Current wording
Cost of revenue and operations. Cost of revenue and operations expense represented 17% of total revenue for each of the nine months ended September 30, 2026 and 2025. Cost of revenue and operations increased $1.6 million or 2%, primarily due to increased third-party media costs and higher severance-related costs, partially offset by lower compensation.
Previous wording
Product and technology. Product and technology expense represented 16% and 17% of total revenue for of the six months ended June 30, 2026 and 2025, respectively. Product and technology expense decreased $1.9 million or 3%, primarily due to lower compensation, partially offset by higher severance-related costs and third-party costs, including licenses.
Current wording
Product and technology. Product and technology expense represented 16% of total revenue for each of the nine months ended September 30, 2026 and 2025. Product and technology expense decreased $2.3 million or 3%, primarily due to lower compensation, partially offset by third-party costs, including licenses, and higher severance-related costs.
Previous wording
Marketing and sales. Marketing and sales expense represented 34% of total revenue for each of the six months ended June 30, 2026 and 2025. Marketing and sales expense increased $1.9 million or 2%, primarily due to increased third-party costs, higher spend to build consumer awareness and more effectively capture high-intent demand, as well as elevated bad debt expense.
Current wording
Marketing and sales. Marketing and sales expense represented 33% of total revenue for each of the nine months ended September 30, 2026 and 2025. Marketing and sales expense decreased $0.9 million or 1%, primarily due to continued optimization of marketing investment and mix, partially offset by elevated bad debt expense.
Previous wording
General and administrative. General and administrative expense represented 11% and 12% of total revenue for the six months ended June 30, 2026 and 2025, respectively. General and administrative expense decreased $2.6 million or 6%, primarily due to a reduction in costs as a result of the conclusion of the D2C Media earnout period and lower compensation, partially offset by higher severance-related costs and third-party costs. For more information on the D2C Media earnout, see the "Liquidity and Capital Resources" section below.
Current wording
General and administrative. General and administrative expense represented 11% and 12% of total revenue for the nine months ended September 30, 2026 and 2025, respectively. General and administrative expense decreased $5.6 million or 9%, primarily due to a reduction in costs as a result of the conclusion of the D2C Media earnout period and lower compensation, partially offset by higher severance-related costs and third-party costs. For more information on the D2C Media earnout, see the "Liquidity and Capital Resources" section below.
Previous wording
Depreciation and amortization. Depreciation and amortization expense decreased $7.5 million or 30%, primarily due to certain intangible assets being fully amortized as compared to the prior-year period and the accelerated depreciation associated with our amended headquarters office lease in the prior-year period.
Current wording
Depreciation and amortization. Depreciation and amortization expense decreased $25.0 million or 33%, primarily due to certain intangible assets being fully amortized as compared to the prior-year period and the accelerated depreciation associated with our amended headquarters office lease in the prior-year period.
Previous wording
Interest expense, net. Interest expense, net decreased $0.7 million or 4%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates as well as higher interest income. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
Interest expense, net. Interest expense, net decreased $1.1 million or 5%, primarily due to a reduction in total indebtedness compared to the prior-year period as well as higher interest income. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Income tax expense. Income tax expense changed primarily due to increase in income before income taxes.
Current wording
Income tax expense. Income tax expense changed primarily due to an increase in Income before income taxes.
Previous wording
We may also seek to raise funds through debt or equity financing in the future to fund operations, significant investments or acquisitions that are consistent with our strategy. If we need to access the capital markets, there can be no assurance that financing may be available on attractive terms, if at all. As of June 30, 2026, Cash and cash equivalents were $33.3 million and including our undrawn Revolving Loan, our total liquidity was $333.3 million.
Current wording
We may also seek to raise funds through debt or equity financing in the future to fund operations, significant investments or acquisitions that are consistent with our strategy. If we need to access the capital markets, there can be no assurance that financing may be available on attractive terms, if at all. As of September 30, 2026, Cash and cash equivalents were $64.6 million and including our undrawn Revolving Loan, our total liquidity was $369.6 million.
Previous wording
Indebtedness. As of June 30, 2026, the outstanding aggregate principal amount of our indebtedness was $450.0 million, at an average interest rate of 6.3%, including $400.0 million of outstanding aggregate principal under the 6.375% Senior Unsecured Notes due in 2028 and $50.0 million of outstanding principal under the Revolving Loan which had an interest rate of 5.8%. During the six months ended June 30, 2026, we made $5.0 million in cash payments on our Revolving Loan, and there were no additional borrowings. As of June 30, 2026, $300.0 million was available to borrow under the Revolving Loan.
Current wording
Indebtedness. As of September 30, 2026, the outstanding aggregate principal amount of our indebtedness was $445.0 million, at an average interest rate of 6.3%, including $400.0 million of outstanding aggregate principal under the 6.375% Senior Unsecured Notes due in November 2028 and $45.0 million of outstanding principal under the Revolving Loan which had an interest rate of 6.1%. During the nine months ended September 30, 2026, we made $10.0 million in cash payments on our Revolving Loan, and there were no additional borrowings. As of September 30, 2026, $305.0 million was available to borrow under the Revolving Loan.
Previous wording
As of June 30, 2026, we were in compliance with the covenants under our debt agreements. Our borrowings are limited primarily by: 1) Senior Secured Net Leverage Ratio (as defined in our Credit Agreement) not to exceed 3.5x; and 2) Consolidated Interest Coverage Ratio (as defined in our Credit Agreement) not to be below 3.0x. As of June 30, 2026, our Senior Secured Net Leverage Ratio was 0.08x and our Consolidated Interest Coverage Ratio was 7.20x. As of March 31, 2026, our Total Net Leverage Ratio (as defined in the Credit Agreement) was 1.95x. For further information, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
As of September 30, 2026, we were in compliance with the covenants under our debt agreements. Our borrowings are limited primarily by: 1) Senior Secured Net Leverage Ratio (as defined in our Credit Agreement) not to exceed 3.5x; and 2) Consolidated Interest Coverage Ratio (as defined in our Credit Agreement) not to be below 3.0x. As of September 30, 2026, our Senior Secured Net Leverage Ratio was (0.09)x, due to its senior secured net debt balance being $(19.6) million, and our Consolidated Interest Coverage Ratio was 7.33x. As of September 30, 2026, our Total Net Leverage Ratio (as defined in the Credit Agreement) was 1.77x. For further information, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Share Repurchase Program. On February 27, 2025, we announced that our Board of Directors had authorized a three-year share repurchase program to acquire up to $250.0 million of our common stock. The repurchase program may be suspended or discontinued at any time and does not obligate us to repurchase any specific amount or number of shares. We may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements, and subject to our blackout periods. We intend to fund the share repurchase program principally with cash from operations. During the six months ended June 30, 2026, we repurchased and subsequently retired 6.2 million shares for $57.3 million at an average price paid per share of $9.23.
Current wording
Share Repurchase Program. On February 27, 2025, we announced that our Board of Directors had authorized a three-year share repurchase program to acquire up to $250.0 million of our common stock. The repurchase program may be suspended or discontinued at any time and does not obligate us to repurchase any specific amount or number of shares. We may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements, and subject to our blackout periods. We intend to fund the share repurchase program principally with cash from operations. During the nine months ended September 30, 2026, we repurchased and subsequently retired 7.6 million shares for $73.6 million at an average price paid per share of $9.68.
Previous wording
As part of the DealerClub acquisition, we may be required to pay additional performance-based consideration of up to $88.0 million, which may be paid in cash, or stock if mutually agreed upon, to certain former owners who are now employees of the Company. The amount to be paid will be determined by DealerClub's future achievement of certain revenue-related financial targets through December 31, 2028, and will be expensed over the relevant performance periods. Based on current performance trends, no such consideration was expensed during the six months ended June 30, 2026.
Current wording
As part of the DealerClub acquisition, we may be required to pay additional performance-based consideration of up to $88.0 million, which may be paid in cash, or stock if mutually agreed upon, to certain former owners who are now employees of the Company. The amount to be paid will be determined by DealerClub's future achievement of certain revenue-related financial targets through December 31, 2028, and will be expensed over the relevant performance periods. Based on current performance trends, no such consideration was expensed during the nine months ended September 30, 2026.
Previous wording
Operating Activities. Cash provided by operating activities for the six months ended June 30, 2026 decreased as compared to the six months ended June 30, 2025 primarily due to unfavorable working capital changes, partially offset by higher Net income and related adjustments in the Consolidated Statement of Cash Flows. For further information, see the Consolidated Statements of Cash Flows included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
Operating Activities. Cash provided by operating activities for the nine months ended September 30, 2026 increased slightly as compared to the nine months ended September 30, 2025 primarily due to higher Net income and related adjustments in the Consolidated Statement of Cash flows, partially offset by unfavorable working capital changes. For further information, see the Consolidated Statements of Cash Flows included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Investing Activities. The decrease in cash used in investing activities during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily due to the impact of the DealerClub acquisition, partially offset by the proceeds collected from the sale of the RepairPal equity investment, both of which occurred in the prior year period. For further information on these items, see Note 3 (Business Combinations) and Note 4 (RepairPal Equity Investment) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
Investing Activities. The decrease in cash used in investing activities during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 was primarily due to the impact of the DealerClub acquisition, partially offset by the proceeds collected from the sale of the RepairPal equity investment, both of which occurred in the prior year period. For further information on these items, see Note 3 (Business Combinations) and Note 4 (RepairPal Equity Investment) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Financing Activities. During the six months ended June 30, 2026, cash used in financing activities was primarily related to repurchases of our common stock, debt repayments and tax payments made in connection with the vesting of certain equity awards. During the six months ended June 30, 2025, cash used in financing activities was primarily related to repurchases of our common stock, debt repayments and tax payments made in connection with the vesting of certain equity awards, partially offset by proceeds from Revolving Loan borrowings. For information related to our debt and repurchases of our common stock, see Note 5 (Debt) and Note 7 (Stockholders' Equity) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Current wording
Financing Activities. During the nine months ended September 30, 2026, cash used in financing activities was primarily related to repurchases of our common stock, debt repayments and tax payments made in connection with the vesting of certain equity awards. During the nine months ended September 30, 2025, cash used in financing activities was primarily related to repurchases of our common stock, debt repayments and tax payments made in connection with the vesting of certain equity awards, partially offset by proceeds from Revolving Loan borrowings. For information related to our debt and repurchases of our common stock, see Note 5 (Debt) and Note 7 (Stockholders' Equity) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.
Previous wording
Critical Accounting Policies. For information related to critical accounting policies, see "Critical Accounting Policies and Estimates" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 and see Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q. During the six months ended June 30, 2026, there have been no changes to our critical accounting policies.
Current wording
Critical Accounting Policies. For information related to critical accounting policies, see "Critical Accounting Policies and Estimates" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 and see Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2026, there have been no changes to our critical accounting policies.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Other (expense) income, net. Other (expense) income, net decreased $1.8 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other (expense) income, net. Other (expense) income, net changed primarily due to unrealized losses on foreign currency denominated transactions.