FORRESTER RESEARCH, INC.

Previous wording

Our key metrics focus on our contract value ("CV") products. We are focusing on CV products as these products are our most profitable products and historically our contracts for CV products have renewed at high rates (as measured by our client retention and wallet retention metrics). Our CV products make up essentially all our research revenues, and research revenues as a percentage of total revenues increased from approximately 73% for the six months ended June 30, 2025 to approximately 75% for the six months ended June 30, 2026.

Current wording

Our key metrics focus on our contract value ("CV") products. We are focusing on CV products as these products are our most profitable products and historically our contracts for CV products have renewed at high rates (as measured by our client retention and wallet retention metrics). Our CV products make up essentially all our research revenues, and research revenues as a percentage of total revenues increased from approximately 74% for the nine months ended September 30, 2025 to approximately 77% for the nine months ended September 30, 2026.

Previous wording

We calculate CV at the foreign currency rates used for internal planning purposes each year. For comparative purposes, we have recast historical CV and wallet retention at the planned 2026 foreign currency rates. We have included the recast metrics below for the six months ended June 30, 2025, and we have also provided recast metrics dating back to the second quarter of 2024, on the investor relations section of our website.

Current wording

We calculate CV at the foreign currency rates used for internal planning purposes each year. For comparative purposes, we have recast historical CV and wallet retention at the planned 2026 foreign currency rates. We have included the recast metrics below for the nine months ended September 30, 2025, and we have also provided recast metrics dating back to the third quarter of 2024, on the investor relations section of our website.

Previous wording

Contract value at June 30, 2026 decreased by 3% compared to the prior year period due to wallet retention being at 89% for the period (representing retention and enrichment of the prior year CV base) and new client acquisition not fully offsetting the net retention loss. Client retention increased by 3 percentage points at June 30, 2026 compared to the prior year period, and decreased by 1 percentage point compared to the prior quarter. The increase in client retention compared to prior year period was primarily due to our ongoing retention initiatives and to the launch of our AI Access product in the third quarter of 2025. Wallet retention increased by 4 percentage points at June 30, 2026 compared to the prior year period, and was consistent compared to the prior quarter. The increase in wallet retention compared to the prior year period was primarily due to improved client retention.

Current wording

Contract value at September 30, 2026 decreased by 4% compared to the prior year period due to wallet retention, which represents retention and enrichment of the prior year CV base, being at 89% for the period. New client acquisition contributed approximately 8 percentage points of new CV during the period. Client retention increased by 4 percentage points at September 30, 2026 compared to the prior year period, and increased 1 percentage point compared to the prior quarter. The increase in client retention compared to prior year period was primarily due to our ongoing retention initiatives and to the launch of our AI Access product in the third quarter of 2025. Wallet retention increased by 3 percentage points at September 30, 2026 compared to the prior year period, and was consistent compared to the prior quarter. The increase in wallet retention compared to the prior year period was primarily due to improved client retention.

Previous wording

Research revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally 12 or 24-month periods. Research revenues decreased 8% and 5% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods, primarily due to the decrease in CV, as discussed above. From a product perspective, the decrease in revenues during the three and six months ended June 30, 2026 was primarily due to a decline in revenue from subscriptions to our research as well as a decrease in reprint revenue.

Current wording

Research revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally 12 or 24-month periods. Research revenues decreased 3% and 5% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods, primarily due to the decrease in CV, as discussed above. From a product perspective, the decrease in revenues during the three and nine months ended September 30, 2026 was primarily due to a decline in revenue from subscriptions to our research as well as a decrease in reprint revenue.

Previous wording

Consulting revenues decreased 15% and 14% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2026 was due to a decrease in delivery of consulting services due to lower client bookings. In February 2026, we announced that we would discontinue selling strategy consulting engagements and would fulfill our backlog of strategy consulting engagements during 2026. Our ongoing consulting business will consist of content marketing consulting and advisory. We anticipate that, on a year over year basis, our 2026 consulting revenues will decline in the low 20 percent range due primarily to the cessation of strategy consulting in 2026.

Current wording

Consulting revenues decreased 31% and 20% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The decrease in revenues during the three and nine months ended September 30, 2026 was due to a decrease in delivery of consulting services due to lower client bookings for both strategy consulting and content marketing. In February 2026, we announced that we would discontinue selling strategy consulting engagements and would fulfill our backlog of strategy consulting engagements during 2026. Our ongoing consulting business will consist of content marketing consulting and advisory. We anticipate that, on a year over year basis, our 2026 consulting revenues will decline in the low 20 percent range due primarily to the cessation of strategy consulting in 2026.

Previous wording

Events revenues decreased 17% and 18% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2026 was due to a decrease in sponsorship revenues as well as a decrease in event ticket revenue.

Current wording

Events revenues increased 629% and decreased 7% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The increase in revenues during the three months ended September 30, 2026 was due to holding two events in the third quarter of 2026 that were held in the fourth quarter of the prior year. The decrease in revenues during the nine months ended September 30, 2026 was due to a decrease in event ticket revenue, due primarily to a decrease in the pricing of tickets.

Previous wording

Cost of services and fulfillment expenses decreased 12% during the three months ended June 30, 2026 compared to the prior year period. The decrease was primarily due (1) a $1.9 million decrease in event costs due primarily to the reformatting of certain of our events to smaller regional venues, (2) a $1.5 million decrease in compensation and benefits costs due to a decrease in headcount, (3) a $1.0 million decrease in professional services costs related to the decrease in consulting revenues, (4) a $0.8 million decrease in stock compensation expense, and (5) a $0.7 million decrease in facilities costs primarily due to a decrease in lease expense.

Current wording

Cost of services and fulfillment expenses decreased 9% during the three months ended September 30, 2026 compared to the prior year period. The decrease was primarily due (1) a $2.3 million decrease in compensation and benefits costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs, (2) a $0.7 million decrease in professional services costs related to the decrease in consulting revenues, (3) a $0.6 million decrease in stock compensation expense, and (4) a $0.5 million decrease in facilities costs primarily due to a decrease in lease expense. These decreases were partially offset by a $0.8 million increase in event costs due to holding two events in the third quarter of 2026 that were held in fourth quarter of the prior year.

Previous wording

Cost of services and fulfillment expenses decreased 8% during the six months ended June 30, 2026 compared to the prior year period. The decrease was primarily due (1) a $1.9 million decrease in event costs due primarily to the reformatting of certain of our events to smaller regional venues, (2) a $1.8 million decrease in facilities costs primarily due to a decrease in lease expense, (3) a $1.3 million decrease in compensation and benefits costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs, (4) a $1.1 million decrease in professional services costs related to the decrease in consulting revenues, and (5) a $0.8 million decrease in stock compensation expense.

Current wording

Cost of services and fulfillment expenses decreased 8% during the nine months ended September 30, 2026 compared to the prior year period. The decrease was primarily due (1) a $3.5 million decrease in compensation and benefits costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs and benefit costs, (2) a $2.4 million decrease in facilities costs primarily due to a decrease in lease expense, (3) a $1.8 million decrease in professional services costs related to the decrease in consulting revenues, (4) a $1.4 million decrease in stock compensation expense, and (5) a $1.1 million decrease in event costs due primarily to the reformatting of certain of our events to smaller regional venues.

Previous wording

Selling and marketing expenses decreased 7% during the three months ended June 30, 2026 compared to the prior year period. The decrease was primarily due to (1) a $1.4 million decrease in compensation and benefits costs due to a decrease in headcount and commissions expense and (2) a $0.5 million decrease in facilities costs primarily due to a decrease in lease expense.

Current wording

Selling and marketing expenses decreased 7% during the three months ended September 30, 2026 compared to the prior year period. The decrease was primarily due to (1) a $1.2 million decrease in compensation and benefits costs due to a decrease in headcount and commissions expense and (2) a $0.4 million decrease in facilities costs primarily due to a decrease in lease expense.

Previous wording

Selling and marketing expenses decreased 5% during the six months ended June 30, 2026 compared to the prior year period. The decrease was primarily due to (1) a $1.7 million decrease in compensation and benefits costs due to a decrease in headcount and commissions expense, (2) a $1.4 million decrease in facilities costs primarily due to a decrease in lease expense, and (3) a $0.8 million decrease in professional services costs.

Current wording

Selling and marketing expenses decreased 6% during the nine months ended September 30, 2026 compared to the prior year period. The decrease was primarily due to (1) a $2.9 million decrease in compensation and benefits costs due to a decrease in headcount and commissions expense, partially offset by an increase in incentive bonus costs and benefit costs, (2) a $1.9 million decrease in facilities costs primarily due to a decrease in lease expense, and (3) a $1.2 million decrease in professional services costs.

Previous wording

General and administrative expenses increased 4% during the six months ended June 30, 2026 compared to the prior year period. The increase was primarily due to a $1.5 million increase in legal costs, partially offset by a $0.6 million decrease in facilities costs primarily due to a decrease in lease expense.

Current wording

General and administrative expenses increased 3% during the nine months ended September 30, 2026 compared to the prior year period. The increase was primarily due to (1) a $1.3 million increase in legal costs and (2) a $0.5 million increase in professional services costs. These increases were partially offset by a $0.7 million decrease in facilities costs primarily due to a decrease in lease expense.

Previous wording

Depreciation expense decreased by $0.5 million during the three and six months ended June 30, 2026 compared to the prior year periods due to certain software and leasehold improvement assets becoming fully depreciated.

Current wording

Depreciation expense was consistent during the three months ended September 30, 2026 compared to the prior year period. Depreciation expense decreased by $0.5 million during the nine months ended September 30, 2026 compared to the prior year period due to certain software and leasehold improvement assets becoming fully depreciated.

Previous wording

The fluctuation for amortization expense was immaterial during the three and six months ended June 30, 2026 compared to the prior year periods.

Current wording

The fluctuation for amortization expense was immaterial during the three and nine months ended September 30, 2026 compared to the prior year periods.

Previous wording

We concluded that a triggering event did not occur during the three months ended June 30, 2026 and as such, a quantitative impairment test of goodwill was not required during the period. We will continue to monitor relevant facts and circumstances, including future changes in our stock price. We may be required to record additional goodwill impairment charges. While we cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on our results of operations and financial condition.

Current wording

We concluded that a triggering event did not occur during the three months ended June 30, 2026 and September 30, 2026 and as such, a quantitative impairment test of goodwill was not required during the periods. We will continue to monitor relevant facts and circumstances, including future changes in our stock price. We may be required to record additional goodwill impairment charges. While we cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on our results of operations and financial condition.

Previous wording

As a result of the substantial and sustained decline in our stock price and our overall market capitalization from mid-February 2025 through March 31, 2025, along with other qualitative considerations, including the continued impact from the conditions in the macroeconomic environment, uncertainty created by changes in the United States’ trade policies, and the larger than expected decline in contract bookings during the first quarter of 2025, it was determined that a triggering event occurred as of March 31, 2025, indicating goodwill may be impaired. Accordingly, we conducted a quantitative impairment test of our goodwill as of March 31, 2025 for our Research and Consulting reporting units. As a result of the quantitative impairment test, we determined goodwill was impaired for our Research reporting unit and recorded a goodwill impairment charge of $83.9 million during the three month period ended March 31, 2025, which is not deductible for tax purposes.

Current wording

As a result of the substantial and sustained decline in our stock price and our overall market capitalization from mid-February 2025 through March 31, 2025, along with other qualitative considerations, including the impact from conditions in the macroeconomic environment, uncertainty created by changes in the United States’ trade policies, and the larger than expected decline in contract bookings during the first quarter of 2025, it was determined that a triggering event occurred as of March 31, 2025, indicating goodwill may be impaired. Accordingly, we conducted a quantitative impairment test of our goodwill as of March 31, 2025 for our Research and Consulting reporting units. As a result of the quantitative impairment test, we determined goodwill was impaired for our Research reporting unit and recorded a goodwill impairment charge of $83.9 million during the three-month period ended March 31, 2025, which is not deductible for tax purposes.

Previous wording

In February 2026, we implemented a reduction in our workforce of approximately 8% across various geographies and functions to better align our cost structure with the revenue outlook for the year. We recorded $8.8 million of severance and related costs for this action during the fourth quarter of 2025, $1.2 million during the first quarter of 2026, and $2.0 million during the second quarter of 2026. In addition, we incurred approximately $1.1 million for contract termination costs during the fourth quarter of 2025 and $0.6 million during the first quarter of 2026. We also approved plans to close certain of our smaller offices both inside and outside the United States, resulting in a non-cash charge of $0.4 million for accelerated ROU asset amortization in the first quarter of 2026.

Current wording

In February 2026, we implemented a reduction in our workforce of approximately 8% across various geographies and functions to better align our cost structure with the revenue outlook for the year. We recorded $8.8 million of severance and related costs for this action during the fourth quarter of 2025, $1.2 million during the first quarter of 2026, and $2.0 million during the second quarter of 2026. During the third quarter of 2026, we recorded a reversal of severance and related costs of $0.6 million to reflect changes to the cost expectations regarding the reduction in our workforce. In addition, we incurred approximately $1.1 million for contract termination costs during the fourth quarter of 2025, $0.6 million during the first quarter of 2026, and $0.1 million during the third quarter of 2026. We also approved plans to close certain of our smaller offices both inside and outside the United States, resulting in a non-cash charge of $0.4 million for accelerated ROU asset amortization in the first quarter of 2026.

Previous wording

Interest expense consists of interest on our borrowings. The fluctuation in interest expense was immaterial during the three and six months ended June 30, 2026 compared to the prior year periods.

Current wording

Interest expense consists of interest on our borrowings. The fluctuation in interest expense was immaterial during the three and nine months ended September 30, 2026 compared to the prior year periods.

Previous wording

Loss on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. The fluctuation for loss on investments, net was immaterial during the three and six months ended June 30, 2026 compared to the prior year periods.

Current wording

Loss on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. The fluctuation for loss on investments, net was immaterial during the three and nine months ended September 30, 2026 compared to the prior year periods. We received our final payout from the funds during the three months ended September 30, 2026 and the funds were fully liquidated as of September 30, 2026.

Previous wording

Other income, net primarily consists of interest income, gains and losses on foreign currency, and gains and losses on foreign currency forward contracts. The fluctuation for other income, net was immaterial during the three and six months ended June 30, 2026 compared to the prior year periods.

Current wording

Other income, net primarily consists of interest income, gains and losses on foreign currency, and gains and losses on foreign currency forward contracts. The fluctuation for other income, net was immaterial during the three months ended September 30, 2026 compared to the prior year period. Other income, net decreased by $0.6 million during the nine months ended September 30, 2026 compared to the prior year period primarily due to a decrease in interest income.

Previous wording

The effective tax rate of 58.4% for the six months ended June 30, 2026 differs from the statutory tax rate of 21% primarily due to the impact of nondeductible expenses on the forecasted effective tax rate offset by the impact of the non-deductible goodwill impairment, which is recorded as a discrete item during the period. The recognition of the $9.2 million tax benefit for the six months ended June 30, 2026 resulted in an approximate $24.0 million tax asset (in prepaid and other current assets) and an approximate $15.0 million deferred tax liability being recorded in the Consolidated Balance Sheets. We are forecasting tax expense to be recorded in the remaining six months of the year, resulting in an effective tax rate in the range of negative 10% to negative 20% for the full year, which is expected to significantly reduce these balances by December 31, 2026.

Current wording

The effective tax rate of 17.6% for the nine months ended September 30, 2026 differs from the statutory tax rate of 21% primarily due to the impact of nondeductible expenses on the forecasted effective tax rate offset by the impact of the non-deductible goodwill impairment, which is recorded as a discrete item during the period. The recognition of the $2.3 million tax benefit for the nine months ended September 30, 2026 resulted in an approximate $12.2 million tax asset (in prepaid and other current assets) and an approximate $8.6 million deferred tax liability (in other non-current liabilities) being recorded in the Consolidated Balance Sheets. We are forecasting tax expense to be recorded in the remaining three months of the year, resulting in an effective tax rate in the range of negative 10% to negative 20% for the full year, which is expected to significantly reduce these balances by December 31, 2026.

Previous wording

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting our events. As of January 1, 2025, we realigned our events sponsorship sales team and as such the costs of this team were not reported as a direct expense of the Events segment during the first and second quarters of 2025. During the third quarter of 2025, the events sponsorship sales team was aligned back to Events and the costs of this team are now being reported as a direct expense of the Events segment. The three and six months ended June 30, 2025 have been conformed to the current presentation.

Current wording

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting our events.

Previous wording

We evaluate reportable segment performance and allocate resources based on segment operating income (loss). Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, goodwill impairment, restructuring costs, interest expense, credit loss expense on note receivable, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

Current wording

We evaluate reportable segment performance and allocate resources based on segment operating income (loss). Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, goodwill impairment, restructuring costs (credits), interest expense, credit loss expense on note receivable, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

Previous wording

Research segment revenues decreased 7% and 5% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. For the three and six months ended June 30, 2026, research product revenues within this segment decreased 8% and 5%, respectively, primarily due to the decrease in CV. For the three and six months ended June 30, 2026, consulting product revenues within this segment decreased 1% and 2%, respectively, primarily due to decreased delivery of consulting services by our research analysts, partially offset by increased delivery of advisory services.

Current wording

Research segment revenues decreased 6% and 5% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. For the three and nine months ended September 30, 2026, research product revenues within this segment decreased 3% and 5%, respectively, primarily due to the decrease in CV. For the three and nine months ended September 30, 2026, consulting product revenues within this segment decreased 34% and 13%, respectively, primarily due to decreased delivery of consulting and advisory services by our research analysts.

Previous wording

Research segment expenses decreased 2% during the three months ended June 30, 2026 compared to the prior year period. The decrease in expenses during the three months ended June 30, 2026 was primarily due to a $0.6 million decrease in compensation and benefit costs primarily due to a decrease in headcount. Research segment expenses were consistent during the six months ended June 30, 2026 compared to the prior year period

Current wording

Research segment expenses decreased 4% and 1% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The decrease in expenses during the three and nine months ended September 30, 2026 was primarily due to a $1.2 million decrease in compensation and benefit costs primarily due to a decrease in headcount.

Previous wording

Consulting segment revenues decreased 19% and 18% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2026 was due to a decrease in delivery of consulting services due to lower client bookings and due to the discontinuation of selling strategy consulting engagements.

Current wording

Consulting segment revenues decreased 30% and 22% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The decrease in revenues during the three and nine months ended September 30, 2026 was due to a decrease in delivery of consulting services due to lower client bookings and due to the discontinuation of selling strategy consulting engagements.

Previous wording

Consulting segment expenses decreased 21% and 10% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in expenses during the three months ended June 30, 2026 was primarily due to (1) a $1.2 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $0.5 million decrease in billable fees. The decrease in expenses during the six months ended June 30, 2026 was primarily due to (1) a $1.1 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $0.6 million decrease in billable fees.

Current wording

Consulting segment expenses decreased 28% and 16% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The decrease in expenses during the three months ended September 30, 2026 was primarily due to (1) a $2.0 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $0.5 million decrease in professional services costs. The decrease in expenses during the nine months ended September 30, 2026 was primarily due to (1) a $3.1 million decrease in compensation and benefit costs primarily due to a decrease in headcount, (2) a $0.8 million decrease in professional services costs, and (3) a $0.7 million decrease in billable fees.

Previous wording

Event segment expenses decreased 19% and 16% during the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in expenses for both the three and six months ended June 30, 2026 was due primarily to a $1.9 million decrease in event costs due primarily to the reformatting of certain of our events to smaller regional venues.

Current wording

Event segment expenses increased 51% and decreased 8% during the three and nine months ended September 30, 2026, respectively, compared to the prior year periods. The increase in expenses for the three months ended September 30, 2026 was due primarily to a $0.8 million increase in event costs due to holding two events in the third quarter of 2026 that were held in the fourth quarter of the prior year. The decrease in expenses for the nine months ended September 30, 2026 was due primarily to a $1.1 million decrease in event costs due primarily to the reformatting of certain of our events to smaller regional venues.

Previous wording

We have historically financed our operations primarily through funds generated from operations. Research revenues, which constituted approximately 75% of our revenues during the six months ended June 30, 2026, are generally renewable and are typically payable in advance. We generated cash from operating activities of $25.0 million and $23.1 million during the six months ended June 30, 2026 and 2025, respectively. The $1.9 million increase in cash from operations for the six months ended June 30, 2026 compared to the prior year period was primarily due to $2.7 million received for the tenant improvement allowance related to the new lease for our principal headquarters. The remaining $14.5 million of the tenant improvement allowance is expected to be received in the third quarter of 2026.

Current wording

We have historically financed our operations primarily through funds generated from operations. Research revenues, which constituted approximately 77% of our revenues during the nine months ended September 30, 2026, are generally renewable and are typically payable in advance. We generated cash from operating activities of $33.4 million and $24.3 million during the nine months ended September 30, 2026 and 2025, respectively. The $9.1 million increase in cash from operations for the nine months ended September 30, 2026 compared to the prior year period was primarily due to $17.1 million received for the tenant improvement allowance related to the new lease for our principal headquarters and a $3.8 million reduction in income taxes paid, partially offset by a reduction in pre-tax income, excluding non-cash items.

Previous wording

During the six months ended June 30, 2026, we used cash in investing activities of $25.9 million primarily from $18.2 million of purchases of property and equipment, which included approximately $16.6 million of leasehold improvements and furniture and fixtures for the renovation of our headquarters, and $7.5 million in net purchases of marketable investments. We anticipate spending an additional $10.0 million to $11.0 million during the third quarter of 2026 on the renovation of our headquarters. During the six months ended June 30, 2025, we used cash in investing activities of $14.7 million primarily from $15.2 million in net purchases of marketable investments and $1.3 million of purchases of property and equipment, primarily consisting of computer software, partially offset by a $1.4 million distribution received from an equity method investment.

Current wording

During the nine months ended September 30, 2026, we used cash in investing activities of $24.1 million primarily from $24.8 million of purchases of property and equipment, which included approximately $22.3 million of leasehold improvements and furniture and fixtures for the renovation of our headquarters, partially offset by a $0.5 million distribution received from an equity method investment and $0.4 million in net maturities and sales of marketable investments. The renovation of our headquarters is essentially complete and we anticipate making the final payments of approximately $2.5 million during the fourth quarter of 2026. During the nine months ended September 30, 2025, we used cash in investing activities of $15.7 million primarily from $15.4 million in net purchases of marketable investments and $1.9 million of purchases of property and equipment, primarily consisting of computer software, partially offset by a $1.4 million distribution received from an equity method investment.

Previous wording

On April 11, 2025, we entered into a third amendment of our lease, and a new lease, for our principal headquarters located in Cambridge, Massachusetts. The effect of these agreements was to early terminate the original lease with respect to the first, second and third floors of the facility by the end of the second quarter of 2026, while also extending the lease term with respect to the fourth, fifth and six floors of the facility through June 30, 2039. As a result of reducing the number of floors that we will occupy, we are renovating floors four to six of the facility.

Current wording

On April 11, 2025, we entered into a third amendment of our lease, and a new lease, for our principal headquarters located in Cambridge, Massachusetts. The effect of these agreements was to early terminate the original lease with respect to the first, second and third floors of the facility by the end of the second quarter of 2026, while also extending the lease term with respect to the fourth, fifth and six floors of the facility through June 30, 2039. As a result of reducing the number of floors that we occupy, we renovated floors four to six of the facility.

Previous wording

During the six months ended June 30, 2026, we used $1.5 million of cash in financing activities primarily due to $1.0 million for purchases of our common stock and $0.9 million in taxes paid related to net share settlements of restricted stock units, partially offset by $0.5 million of net proceeds from the issuance of common stock under our stock-based incentive plans. During the six months ended June 30, 2025, we used $0.3 million of cash in financing activities primarily due to $0.9 million in taxes paid related to net share settlements of restricted stock units, partially offset by $0.7 million of net proceeds from the issuance of common stock under our stock-based incentive plans. As of June 30, 2026, our remaining stock repurchase authorization was approximately $76.4 million. We anticipate purchasing additional shares of our common stock in the second half of 2026.

Current wording

During the nine months ended September 30, 2026, we used $16.8 million of cash in financing activities primarily due to $11.3 million for purchases of our common stock, $5.0 million in discretionary repayments of our revolving credit facility, and $1.2 million in taxes paid related to net share settlements of restricted stock units, partially offset by $1.0 million of net proceeds from the issuance of common stock under our stock-based incentive plans. During the nine months ended September 30, 2025, we used $2.4 million of cash in financing activities primarily due to $2.4 million for purchases of our common stock and $1.2 million in taxes paid related to net share settlements of restricted stock units, partially offset by $1.3 million of net proceeds from the issuance of common stock under our stock-based incentive plans. As of September 30, 2026, our remaining stock repurchase authorization was approximately $66.0 million. We anticipate purchasing additional shares of our common stock in the fourth quarter of 2026.

Previous wording

Additional future contractual cash obligations extending over the next 12 months and beyond primarily consist of operating lease payments. We lease office space under non-cancelable operating lease agreements. The remaining duration of non-cancelable office space leases ranges from less than 1 year to 13 years. Remaining lease payments within one year, within two to three years, within four to five years, and after five years from June 30, 2026, are $5.0 million, $15.4 million, $13.2 million, and $37.6 million respectively.

Current wording

Additional future contractual cash obligations extending over the next 12 months and beyond primarily consist of operating lease payments. We lease office space under non-cancelable operating lease agreements. The remaining duration of non-cancelable office space leases ranges from less than 1 year to 13 years. Remaining lease payments within one year, within two to three years, within four to five years, and after five years from September 30, 2026, are $2.5 million, $15.4 million, $13.2 million, and $37.7 million respectively.

Previous wording

As of June 30, 2026, we had cash, cash equivalents, and marketable investments of $130.8 million. This balance includes $99.8 million held outside of the U.S. If the cash outside of the U.S. is needed for operations in the U.S., we would be required to accrue and pay U.S. state taxes and may be required to pay withholding taxes to foreign jurisdictions to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We believe that our current cash balance and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months and to meet our known long-term cash requirements.

Current wording

As of September 30, 2026, we had cash, cash equivalents, and marketable investments of $117.6 million. This balance includes $84.3 million held outside of the U.S. If the cash outside of the U.S. is needed for operations in the U.S., we would be required to accrue and pay U.S. state taxes and may be required to pay withholding taxes to foreign jurisdictions to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We believe that our current cash balance and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months and to meet our known long-term cash requirements.