EPAM Systems, Inc.

Previous wording

Russia’s attack on Ukraine has had, and could continue to have, a material adverse effect on our operations. As of March 31, 2026, Ukraine continues to be a significant delivery location with a large number of delivery professionals operating from safe locations at levels of productivity consistent with those achieved prior to the attack. We have maintained our $100 million humanitarian aid commitment to our people in Ukraine, and as of March 31, 2026, we have $7.1 million remaining to be expensed under this humanitarian commitment.

Current wording

Russia’s attack on Ukraine has had, and could continue to have, a material adverse effect on our operations. As of June 30, 2026, Ukraine continues to be a significant delivery location with a large number of delivery professionals operating from safe locations at levels of productivity consistent with those achieved prior to the attack. We have maintained our $100 million humanitarian aid commitment to our people in Ukraine, and as of June 30, 2026, we have $4.6 million remaining to be expensed under this humanitarian commitment.

Previous wording

For the first three months of 2026, our revenues were $1.400 billion, an increase of 7.6% from $1.302 billion reported for the same period of 2025. Revenues have been positively impacted by improving demand for our services and foreign exchange fluctuations. Income from operations as a percentage of revenues increased to 8.3% for the three months ended March 31, 2026 as compared to 7.6% for the three months ended March 31, 2025, largely driven by a decrease in cost of revenues (exclusive of depreciation and amortization) as a percentage of revenues. Diluted earnings per share increased to $1.52 for the three months ended March 31, 2026 from $1.28 for the three months ended March 31, 2025, principally resulting from an increase in income from operations as well as reduced common shares outstanding resulting from share repurchases, including repurchases made under the Accelerated Share Repurchase Agreement (“ASR”) in connection with the 2025 Repurchase Program. See Note 10 “Stockholders’ Equity” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding the ASR.

Current wording

For the first six months of 2026, our revenues were $2.815 billion, an increase of 6.0% from $2.655 billion reported for the same period of 2025. Revenues have been positively impacted by improving demand for our services and foreign exchange fluctuations. Income from operations as a percentage of revenues increased to 9.6% for the six months ended June 30, 2026 as compared to 8.5% for the six months ended June 30, 2025, largely driven by a decrease in cost of revenues (exclusive of depreciation and amortization) as a percentage of revenues. Diluted earnings per share increased to $3.49 for the six months ended June 30, 2026 from $2.84 for the six months ended June 30, 2025, principally resulting from an increase in income from operations as well as reduced common shares outstanding resulting from share repurchases, including repurchases made under the Accelerated Share Repurchase Agreement (“ASR”) in connection with the 2025 Repurchase Program. See Note 10 “Stockholders’ Equity” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding the ASR.

Previous wording

During the three months ended March 31, 2026, there have been no material changes to our critical accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

During the three and six months ended June 30, 2026, there have been no material changes to our critical accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

(1)Includes $22,853 and $23,923 of stock-based compensation expense for the three months ended March 31, 2026 and 2025, respectively.

Current wording

(1)Includes $22,833 and $18,161 of stock-based compensation expense for the three months ended June 30, 2026 and 2025, respectively, and $45,686 and $42,084 of stock-based compensation expense for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

(2)Includes $27,066 and $24,533 of stock-based compensation expense for the three months ended March 31, 2026 and 2025, respectively.

Current wording

(2)Includes $23,568 and $20,397 of stock-based compensation expense for the three months ended June 30, 2026 and 2025, respectively, and $50,634 and $44,930 of stock-based compensation expense for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

During the three months ended March 31, 2026, our total revenues increased by 7.6% to $1.400 billion compared to the corresponding period in 2025. During the three months ended March 31, 2026 as compared to the same period last year, revenues have been positively impacted by improving demand for our services and fluctuations in foreign currency exchange rates which contributed 3.9% to revenue growth.

Current wording

During the three months ended June 30, 2026, our total revenues increased by 4.5% to $1.415 billion compared to the corresponding period in 2025. During the three months ended June 30, 2026 as compared to the same period last year, revenues have been positively impacted by improving demand for our services and fluctuations in foreign currency exchange rates which contributed 1.1% to revenue growth.

Previous wording

Revenues by client location for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Revenues by client location for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

During the three months ended March 31, 2026, the United States continued to be our largest client location. During the three months ended March 31, 2026, revenues in the United States increased 3.4% to $711.8 million from $688.5 million in the first quarter of 2025, largely due to increased spending at certain large accounts in the region.

Current wording

During the three and six months ended June 30, 2026, the United States continued to be our largest client location. During the three months ended June 30, 2026, revenues in the United States increased 0.7% to $715.0 million from $710.0 million in the second quarter of 2025. During the six months ended June 30, 2026, revenues in the United States increased 2.0% to $1.427 billion as compared to $1.398 billion in the same period of the prior year, largely due to increased spending at certain large accounts.

Previous wording

During the three months ended March 31, 2026, the top three revenue contributing countries by client location in EMEA were the United Kingdom, Switzerland, and the Netherlands, generating $158.5 million, $114.3 million and $63.2 million in revenues, respectively compared to $144.6 million, $104.9 million, and $47.0 million, respectively, in the corresponding period last year. Revenues in the EMEA region were positively impacted by increased spending at certain large accounts and changes in foreign currency exchange rates during the three months ended March 31, 2026 as compared to the same period in the previous year.

Current wording

During the three months ended June 30, 2026, the top three revenue contributing countries by client location in EMEA were the United Kingdom, Switzerland, and the Netherlands, generating $159.6 million, $112.3 million and $63.2 million in revenues, respectively, compared to $149.6 million, $110.1 million, and $57.1 million, respectively, in the corresponding period last year. During the six months ended June 30, 2026, the United Kingdom, Switzerland and the Netherlands performed as EMEA’s top revenue generating locations and contributed $318.1 million, $226.5 million, and $126.4 million, respectively compared to $294.2 million, $214.9 million, and $104.0 million, respectively, in the corresponding period last year. Revenues in the EMEA region were positively impacted by increased spending at certain large accounts and changes in foreign currency exchange rates during the three and six months ended June 30, 2026 as compared to the same period in the previous year.

Previous wording

During the three months ended March 31, 2026, revenues from clients in the APAC region increased by $0.3 million or 1.2% compared to the corresponding period of 2025.

Current wording

During the three months ended June 30, 2026, revenues from clients in the APAC region decreased by $0.1 million or 0.3%, and increased by $0.2 million or 0.4% during the six months ended June 30, 2026, compared to the corresponding periods of 2025.

Previous wording

During the three months ended March 31, 2026, cost of revenues (exclusive of depreciation and amortization) was $1,012.1 million representing an increase of 6.3% from $952.0 million in the corresponding period of 2025. The increase primarily resulted from increased compensation expense due to salary increases and promotions implemented during the prior year annual compensation cycle, a 2.2% increase in the average number of production professionals in the first quarter of 2026 compared to the first quarter of 2025, and foreign exchange fluctuations. Expressed as a percentage of revenues, cost of revenues (exclusive of depreciation and amortization) was 72.3% and 73.1% in the first quarter of 2026 and 2025, respectively. This year-over-year decrease is primarily due to a decrease in compensation expense, including stock-based compensation expense, as a percentage of revenues, partially offset by the negative impact from foreign currency fluctuations.

Current wording

During the three months ended June 30, 2026, cost of revenues (exclusive of depreciation and amortization) was $985.2 million representing an increase of 2.2% from $964.0 million in the corresponding period of 2025. The increase primarily resulted from a 1.6% increase in the average number of production professionals in the second quarter of 2026 compared to the second quarter of 2025, foreign exchange fluctuations, and increased stock-based compensation expense. Expressed as a percentage of revenues, cost of revenues (exclusive of depreciation and amortization) was 69.6% and 71.2% in the second quarter of 2026 and 2025, respectively. This year-over-year decrease is primarily due to a decrease in compensation expense as a percentage of revenues, partially offset by the negative impact from foreign currency fluctuations.

Previous wording

Selling, general and administrative expenses represent expenditures associated with promoting and selling our services and general and administrative functions of our business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising, and other promotional activities. Additionally, selling, general and administrative expenses include costs of relocating our employees and various one-time and unusual expenses such as impairment charges.

Current wording

Selling, general and administrative expenses represent expenditures associated with promoting and selling our services and general and administrative functions of our business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising, and other promotional activities. Additionally, selling, general and administrative expenses include various one-time and unusual expenses such as impairment charges.

Previous wording

During the three months ended March 31, 2026, selling, general and administrative expenses were $239.7 million representing a 9.5% increase as compared to $218.9 million in the corresponding period of 2025. The increase was mainly driven by increased personnel-related costs, which included impacts from salary increases and promotions implemented during the prior year annual compensation cycle, increases in stock-based compensation expense, and severance, which reflects the impact from cost optimization programs, and foreign exchange fluctuations. See Note 7 “Cost Optimization Programs” for more information regarding the Company’s restructuring programs. Expressed as a percentage of revenues, selling, general and administrative expenses increased by 0.3% to 17.1% for the three months ended March 31, 2026 as compared to the same period from the prior year, primarily driven by an increase in personnel-related costs as a percentage of revenues.

Current wording

During the three months ended June 30, 2026, selling, general and administrative expenses were $245.2 million representing a 5.9% increase as compared to $231.7 million in the corresponding period of 2025. The increase was mainly driven by increased personnel-related costs including stock-based compensation expense and foreign exchange fluctuations. Expressed as a percentage of revenues, selling, general and administrative expenses increased by 0.2% to 17.3% for the three months ended June 30, 2026 as compared to the same period from the prior year. The year-over-year increase is primarily due to higher stock-based compensation expense as a percentage of revenues.

Previous wording

During the three months ended March 31, 2026, depreciation and amortization expense was $31.5 million as compared to $31.4 million in the corresponding period last year. The composition of depreciable and amortizable assets has not changed significantly since the first quarter of 2025.

Current wording

During the three and six months ended June 30, 2026, depreciation and amortization expense was $32.1 million and $63.6 million, respectively, as compared to $31.3 million and $62.7 million, respectively, in the corresponding periods last year. The composition of depreciable and amortizable assets has not changed significantly since the beginning of the prior year.

Previous wording

Interest and Other Income, Net

Current wording

Interest and Other Income (Loss), Net

Previous wording

Interest and other income, net includes interest earned on cash and cash equivalents and short-term investments, gains and losses from certain financial instruments, interest expense related to our borrowings, and changes in the fair value of contingent consideration. Interest and other income, net was $1.6 million during the three months ended March 31, 2026, compared to $5.8 million during the three months ended March 31, 2025. The decrease in Interest and other income, net during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was largely driven by a $2.7 million difference in the change in fair value of contingent consideration and a $0.8 million decrease in interest income from our cash, cash equivalents and short-term investments.

Current wording

Interest and other income (loss), net includes interest earned on cash and cash equivalents and short-term investments, gains and losses from certain financial instruments, interest expense related to our borrowings, and changes in the fair value of contingent consideration. Interest and other income (loss), net was a loss of $1.8 million and $0.2 million during the three and six months ended June 30, 2026, respectively, compared to income of $3.5 million and $9.3 million during the three and six months ended June 30, 2025, respectively. The decrease in Interest and other income (loss), net during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was largely driven by a $1.7 million difference in the change in fair value of contingent consideration, a $1.2 million increase in interest expense, mainly related to our line of credit, and a $0.9 million decrease in interest income from our cash, cash equivalents and short-term investments. The decrease in Interest and other income (loss), net during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was largely driven by a $4.4 million difference in the change in fair value of contingent consideration, a $1.8 million decrease in interest income from our cash, cash equivalents and short-term investments, and a $1.3 million increase in interest expense, mainly related to our line of credit.

Previous wording

During the three months ended March 31, 2026, foreign exchange gain was $2.3 million compared to a loss of $10.7 million reported in the corresponding period last year. Exchange rate movements impact the reported value of our assets and liabilities denominated in currencies other than the U.S. dollar or where the currency of such items is different than the functional currency of the entity where these items were recorded.

Current wording

During the three and six months ended June 30, 2026, foreign exchange loss was $9.9 million and $7.6 million, respectively, compared to a loss of $6.2 million and $17.0 million, respectively, reported in the corresponding periods last year. Exchange rate movements impact the reported value of our assets and liabilities denominated in currencies other than the U.S. dollar or where the currency of such items is different than the functional currency of the entity where these items were recorded.

Previous wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Americas segment for the three months ended March 31, 2026, and 2025:

Current wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Americas segment for the three and six months ended June 30, 2026, and 2025:

Previous wording

During the three months ended March 31, 2026, revenues for the Americas segment increased $18.2 million, or 2.3%, compared to the same period last year and segment operating profit increased $17.0 million, or 14.8%, compared to the same period last year. During the three months ended March 31, 2026, revenues from our Americas segment were 56.8% of total revenues, a decrease from 59.7% reported in the corresponding period of 2025. As a percentage of Americas segment revenues, the Americas segment’s operating profit increased to 16.6% during the first quarter of 2026 from 14.8% in the first quarter of 2025. This increase is primarily attributable to improved profitability as a result of our cost optimization initiatives, partially offset by the impact of changes in foreign currency exchange rates.

Current wording

During the three months ended June 30, 2026, revenues for the Americas segment increased $4.9 million, or 0.6%, compared to the same period last year and segment operating profit increased $19.6 million, or 15.1%, compared to the same period last year. During the three months ended June 30, 2026, revenues from our Americas segment were 56.0% of total revenues, a decrease from 58.2% reported in the corresponding period of 2025. As a percentage of Americas segment revenues, the Americas segment’s operating profit increased to 18.8% during the second quarter of 2026 from 16.4% in the second quarter of 2025. This increase is primarily attributable to improved profitability as a result of our cost optimization initiatives, partially offset by the impact of changes in foreign currency exchange rates.

Previous wording

During the three months ended March 31, 2026, Financial Services was the largest industry vertical in the Americas segment and grew 10.8% compared to the corresponding period of 2025, primarily due to increased spend at a large wealth management client and growth in fintech, insurance, and payment processing clients. Software & Hi-Tech declined 2.1% during the three months ended March 31, 2026, which was a result of lower spend from our technology clients. Life Sciences & Healthcare declined 0.8% during the three months ended March 31, 2026. Consumer Goods, Retail & Travel grew 6.6% during the three months ended March 31, 2026, primarily due to growth from our consumer goods clients. Business Information & Media grew 2.4% during the three months ended March 31, 2026, primarily due to improvement in demand from information services clients. Emerging Verticals declined 3.1% during the three months ended March 31, 2026, primarily due to lower revenues from clients in industrial materials, telecommunications, and real estate, which were partially offset by increased revenues from clients in the energy sector.

Current wording

During the three and six months ended June 30, 2026, Financial Services was the largest industry vertical in the Americas segment and grew 15.3% and 13.0%, respectively, compared to the corresponding periods of 2025, primarily due to increased spend at a large wealth management client and growth in insurance, asset management, and payment processing clients. Software & Hi-Tech declined 10.8% and 6.6% during the three and six months ended June 30, 2026, respectively, which was a result of lower spend from our technology clients. Life Sciences & Healthcare declined 1.3% and 1.0% during the three and six months ended June 30, 2026, respectively. Consumer Goods, Retail & Travel grew 1.0% and 3.7% during the three and six months ended June 30, 2026, respectively, primarily due to growth from our consumer goods and distribution clients. Business Information & Media declined 2.4% and 0.1% during the three and six months ended June 30, 2026, respectively, primarily due to lower demand from information services clients. Emerging Verticals grew 0.8% during the three months ended June 30, 2026 and declined 1.2% during the six months ended June 30, 2026, respectively, with growth coming from clients in the energy sector and lower revenues experienced from clients in industrial materials, telecommunications, and real estate in both periods.

Previous wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Europe segment for the three months ended March 31, 2026, and 2025:

Current wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Europe segment for the three and six months ended June 30, 2026, and 2025:

Previous wording

During the three months ended March 31, 2026, Europe’s segment revenues were $604.7 million, representing an increase of $80.1 million, or 15.3%, from the same period last year. Revenues were positively impacted by changes in foreign currency exchange rates during the first quarter of 2026 and had our Europe segment revenues been expressed in constant currency terms using the exchange rates in effect during the first quarter of 2025, we would have reported revenue growth of 7.8%. Europe’s segment revenues accounted for 43.2% and 40.3% of total segment revenues during the three months ended March 31, 2026 and 2025, respectively. During the first quarter of 2026, the segment’s operating profit increased 15.4% to $82.3 million compared to the first quarter of 2025. Expressed as a percentage of revenues, Europe’s segment operating profit remained consistent at 13.6% compared to the same period of the prior year.

Current wording

During the three months ended June 30, 2026, Europe’s segment revenues were $622.5 million, representing an increase of $56.5 million, or 10.0%, from the same period last year. Revenues were positively impacted by changes in foreign currency exchange rates during the second quarter of 2026 and had our Europe segment revenues been expressed in constant currency terms using the exchange rates in effect during the second quarter of 2025, we would have reported revenue growth of 8.5%. Europe’s segment revenues accounted for 44.0% and 41.8% of total segment revenues during the three months ended June 30, 2026 and 2025, respectively. During the second quarter of 2026, the segment’s operating profit increased 24.4% to $100.5 million compared to the second quarter of 2025. Expressed as a percentage of revenues, Europe’s segment operating profit increased to 16.1% compared to 14.3% in the same period of the prior year. This increase is primarily attributable to improved profitability as a result of our cost optimization initiatives.

Previous wording

During the three months ended March 31, 2026, Financial Services was the largest industry vertical in the Europe segment and grew 12.2% compared to the corresponding period of 2025, primarily due to improved demand from clients in asset management and insurance. During the three months ended March 31, 2026, revenues in Consumer Goods, Retail & Travel grew 7.7% primarily due to improved demand from clients in the retail and consumer goods industries. During the three months ended March 31, 2026, revenues in Software & Hi-Tech grew 43.2% primarily due to increased demand at a large hardware client and several technology services clients. During the three months ended March 31, 2026, revenues in Business Information & Media declined 7.2% primarily due to decreased demand from information services clients. Revenues in Life Sciences & Healthcare grew 34.9% during the three months ended March 31, 2026, primarily due to the growth experienced from clients in the pharmaceutical sector. Revenues in Emerging Verticals grew 23.5% during the three months ended March 31, 2026, due to the growth from various clients in the energy and government sectors.

Current wording

During the three and six months ended June 30, 2026, Financial Services was the largest industry vertical in the Europe segment and grew 8.4% and 10.2%, respectively, compared to the corresponding periods of 2025, primarily due to improved demand from clients in asset management and insurance. During the three and six months ended June 30, 2026, revenues in Consumer Goods, Retail & Travel grew 3.4% and 5.5%, respectively, primarily due to improved demand from clients in the retail and consumer goods industries. During the three and six months ended June 30, 2026, revenues in Software & Hi-Tech grew 21.5% and 31.8%, respectively, primarily due to increased demand at a large hardware client and several technology services clients. During the three and six months ended June 30, 2026, revenues in Business Information & Media declined 1.6% and 4.4%, respectively, primarily due to decreased demand from information services clients. Revenues in Life Sciences & Healthcare grew 45.1% and 40.2%, respectively, during the three and six months ended June 30, 2026, primarily due to the growth experienced from new and existing clients in the pharmaceutical sector. Revenues in Emerging Verticals grew 10.6% and 16.6%, respectively, during the three and six months ended June 30, 2026, due to the growth from various clients in the energy sector.

Previous wording

Our cash generated from operations has been our primary source of liquidity to fund operations, to repurchase shares and make investments to support the growth of our business. As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents totaling $1.037 billion, short-term investments totaling $4.3 million, and $535.0 million of available borrowings under our revolving credit facility. During the quarter ended March 31, 2026, we drew an additional $140 million on this facility to partially fund our $300 million ASR. As of March 31, 2026, $165.0 million was outstanding under this facility and we were in compliance with all covenants contained in the facility. See Note 6 “Debt” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding drawdowns on our revolving credit facility.

Current wording

Our cash generated from operations has been our primary source of liquidity to fund operations, to repurchase shares and make investments to support the growth of our business. As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents totaling $789.4 million, short-term investments totaling $4.8 million, and $675.0 million of available borrowings under our revolving credit facility. As of June 30, 2026, $25.0 million was outstanding under this facility and we were in compliance with all covenants contained in the facility. See Note 6 “Debt” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding drawdowns on our revolving credit facility.

Previous wording

Our largest source of cash provided by operating activities is cash generated from our professional services that we provide to our clients. Our primary uses of cash from operating activities include compensation to our employees and related costs, payments for leased facilities, various general corporate expenditures and income tax payments. The first three months of 2026 were negatively impacted by higher payments for variable compensation as compared to the first three months of 2025, attributable to a higher level of financial performance for the year ended December 31, 2025.

Current wording

Our largest source of cash provided by operating activities is cash generated from our professional services that we provide to our clients. Our primary uses of cash from operating activities include compensation to our employees and related costs, payments for leased facilities, various general corporate expenditures and income tax payments. The first six months of 2026 were negatively impacted by a higher level of variable compensation payments made based on 2025 performance and a larger increase in days sales outstanding compared to the first six months of 2025.

Previous wording

Our primary uses of cash in investing activities consist of purchases of computer hardware, software and office equipment, as well as investments into office buildings and new businesses. We also use cash for short-term investments and time deposits and receive cash upon maturity of these deposits. Most of our investments are typically short-term and cash equivalent in nature but we may invest in longer term deposits if the terms are favorable. The cash used in investing activities during the three months ended March 31, 2026 was primarily attributable to $17.9 million used for capital expenditures compared to $9.3 million used for capital expenditures in the corresponding period of 2025.

Current wording

Our primary uses of cash in investing activities consist of purchases of computer hardware, software and office equipment, as well as investments into office buildings and new businesses. We also use cash for short-term investments and time deposits and receive cash upon maturity of these deposits. Most of our investments are typically short-term and cash equivalent in nature but we may invest in longer term deposits if the terms are favorable. The cash used in investing activities during the six months ended June 30, 2026 was primarily attributable to $33.1 million used for capital expenditures compared to $19.2 million used for capital expenditures in the corresponding period of 2025.

Previous wording

Cash used in financing activities mainly consists of repurchases of shares of EPAM common stock under our share repurchase programs, payments of withholding taxes related to net share settlements of restricted stock units, repayments of debt, and settlements of the acquisition-date fair value of contingent consideration related to acquisitions of businesses. Cash provided by financing activities mainly consists of the proceeds from the purchases of shares under our ESPP and exercises of stock options issued under our long-term incentive plans as well as proceeds from debt. We typically do not rely on debt to supplement our cash flows. During the first three months of 2026, our main use of cash in financing activities consisted of $324.0 million of payments to repurchase our common stock, including $300 million related to the accelerated share repurchase, compared to $160.0 million in the corresponding period of 2025. The cash outflows during the first three months of 2026 were partially offset by $140.0 million of proceeds from a drawdown on our revolving credit facility.

Current wording

Cash used in financing activities mainly consists of repurchases of shares of EPAM common stock under our share repurchase programs, payments of withholding taxes related to net share settlements of equity awards, repayments of debt, and settlements of the acquisition-date fair value of contingent consideration related to acquisitions of businesses. Cash provided by financing activities mainly consists of the proceeds from the issuance of shares under our ESPP and exercises of stock options issued under our long-term incentive plans as well as proceeds from debt. We typically do not rely on debt to supplement our cash flows. During the first six months of 2026, our main use of cash in financing activities consisted of $409.0 million of payments to repurchase our common stock, including $300 million related to the accelerated share repurchase, compared to $356.5 million in the corresponding period of 2025.