CHEGG, INC

Previous wording

Our long-term strategy is centered upon our ability to utilize our Subscription Services to increase student engagement with our learning platform. We continue to invest in the expansion of our offerings and technology platform to provide a more compelling and personalized solution and deepen engagement with students. We continue to integrate artificial intelligence into our platform, and it is now conversational, more instructional, and interactive. We remain focused on providing a holistic and differentiated product offering that supports the whole student with 360 degrees of individualized academic and functional support, including the delivery of high-quality and accurate content. We believe the investments we are making will allow us to return to revenue growth over time. Our ability to achieve these long-term objectives is subject to numerous risks and uncertainties, which are described in greater detail below and in Part II, Item 1A, “Risk Factors.”

Current wording

Along those lines, Chegg is evolving into a skills focused organization, investing in two large growth areas: language learning, and workplace readiness and upskilling. These businesses are expected to serve as primary growth engines, while Chegg Study should remain a valuable service for millions of students and also generate cash to support investments in the growth businesses. We believe the investments we are making will allow us to return to revenue growth over time. Our ability to achieve these long-term objectives is subject to numerous risks and uncertainties, which are described in greater detail below and in Part II, Item 1A, “Risk Factors.”

Previous wording

Recent technological shifts, notably Google's roll out of its AI Overviews search experience, or AIO, and continued increase in adoption of free and paid generative AI services by students, have created and are expected to continue to create headwinds for our industry and our business, most notably a reduction in traffic to our website and customers subscribing to our services. In August 2024, Google broadly rolled out AIO, which displays AI-generated content at the top of its search results. This experience, which includes questions and solutions for education, keeps users on Google search results versus leading them onto our site. AIO’s prevalence has grown and will only continue to increase. While we continue to study the changes and adjust our SEO strategy, we expect Google to continue its shift from being a search origination point to the destination, which could materially adversely affect our business, operating results and financial condition.

Current wording

Recent technological shifts, notably Google's AI Overviews search experience, or AIO, and continued increase in adoption of free and paid generative AI services by students, have created and are expected to continue to create headwinds for our industry and our business, most notably a reduction in traffic to our website and customers subscribing to our services. In August 2024, Google broadly rolled out AIO, which displays AI-generated content at the top of its search results. This experience, which includes questions and solutions for education, keeps users on Google search results versus leading them onto our site. AIO’s prevalence has grown and will only continue to increase. We expect Google to continue its shift from being a search origination point to the destination, which we believe has materially adversely affected our business, operating results and financial condition.

Previous wording

In May 2025, we announced an additional restructuring plan to further manage costs and align with the market. The May 2025 restructuring plan included a reduction in workforce and the closure of one office. We estimate we will incur between $11 million and $13 million of additional restructuring charges over the next two fiscal quarters and we expect the plan to be substantially completed by the first quarter of the fiscal year 2026. For fiscal years 2025 and 2026, we expect to realize cost savings as a result of the May 2025 restructuring plan. See Note 12, “Restructuring Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Current wording

In May 2025, we announced an additional restructuring plan to further manage costs and align with the market. The May 2025 restructuring plan included a reduction in workforce and the closure of one office. We estimate we will incur between $2 million and $3 million of additional restructuring charges over the next fiscal quarter and we expect the plan to be substantially completed by the first quarter of the fiscal year 2026. For fiscal years 2025 and 2026, we expect to realize cost savings as a result of the May 2025 restructuring plan. See Note 11, “Restructuring Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Previous wording

Our Skills and Other product line includes revenues from Chegg Skills, advertising services, content licensing, print textbooks and eTextbooks. Our Chegg Skills learning platform offers professional courses focused on the latest technology skills. We work with leading brands and programmatic partners to deliver advertising across our platforms. Beginning in the first quarter of 2025, we enter into non-exclusive content library licensing agreements with third parties. We also provide a platform for students to rent or buy print textbooks and eTextbooks, which helps students save money compared to the cost of buying new.

Current wording

Our Skills and Other product line includes revenues from Chegg Skills, advertising services, content licensing, print textbooks and eTextbooks. Our Chegg Skills learning platform offers professional courses focused on the latest technology skills. We work with leading brands and programmatic partners to deliver advertising across our platforms. Beginning in the first quarter of 2025, we enter into non-exclusive content library licensing agreements with third parties. Until July 1, 2025, we also provided a platform for students to rent or buy print textbooks and eTextbooks, which helps students save money compared to the cost of buying new.

Previous wording

Subscription Services revenues decreased $57.1 million, or 39%, and $103.6 million, or 34%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The decrease was primarily due to a 40% and 31% decrease in subscribers who have paid to access our services during the three months ended June 30, 2025 and March 31, 2025, respectively, compared to the same periods in 2024.

Current wording

Subscription Services revenues decreased $50.7 million, or 42%, and $154.3 million, or 37%, during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The decrease was primarily due to a 43%, 38%, and 30% decrease in subscribers who have paid to access our services during the three months ended September 30, 2025, June 30, 2025 and March 31, 2025, respectively, compared to the same periods in 2024.

Previous wording

Skills and Other revenues decreased $0.9 million, or 6%, during the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in Chegg Skills of $3.3 million related to lower enrollments and a decrease in advertising services revenue of $3.9 million due to lower fulfillment partially offset by content licensing revenue of $6.6 million. Skills and Other revenues decreased $7.4 million, or 20%, during the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in Chegg Skills of $8.3 million related to lower enrollments and a decrease in advertising services revenues of $7.7 million due to lower fulfillment partially offset by content licensing revenue of $10.6 million.

Current wording

Skills and Other revenues decreased $8.1 million, or 49%, during the three months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in advertising services revenue of $4.5 million due to lower fulfillment, a decrease in Chegg Skills of $1.9 million related to lower enrollments, and a decrease of $1.7 million as we no longer provide a platform for students to rent or buy print textbooks and eTextbooks. Skills and Other revenues decreased $15.6 million, or 29%, during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in advertising services revenues of $12.2 million due to lower fulfillment, a decrease in Chegg Skills of $10.2 million related to lower enrollments, and a $3.8 million decrease as we no longer provide a platform for students to rent or buy print textbooks and eTextbooks, partially offset by content licensing revenue of $10.6 million.

Previous wording

Cost of revenues decreased $9.9 million, or 22%, during the three months ended June 30, 2025, compared to the same period in 2024. The decrease was primarily due to lower payment processing and other order fees of $4.8 million, primarily due to the decrease in subscribers who have paid to access our services, lower employee-related expenses of $1.2 million, and lower depreciation and amortization expense of $2.8 million. Gross margins decreased to 66% during the three months ended June 30, 2025, from 72% during the same period in 2024.

Current wording

Cost of revenues decreased $11.7 million, or 27%, during the three months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily due to lower payment processing and other order fees of $4.3 million, primarily due to the decrease in subscribers who have paid to access our services, lower depreciation and amortization expense of $4.0 million, lower web hosting fees of $1.7 million and lower employee-related expenses of $1.1 million. Gross margins decreased to 59% during the three months ended September 30, 2025, from 68% during the same period in 2024.

Previous wording

Cost of revenues decreased $2.5 million, or 3%, during the six months ended June 30, 2025, compared to the same period in 2024. The decrease was primarily due to lower contractor spend of $1.5 million, lower employee-related expenses of $2.2 million, lower payment processing and other order fees of $8.5 million, which is primarily due to the decrease in subscribers who have paid to access our services, which was partially offset by higher depreciation and amortization expense of $10.5 million primarily due to the accelerated depreciation recorded as we streamlined our product experiences. Gross margins decreased to 61% during the six months ended June 30, 2025, from 73% during the same period in 2024.

Current wording

Cost of revenues decreased $14.2 million, or 10%, during the nine months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily due to lower payment processing and other order fees of $12.8 million, which is primarily due to the decrease in subscribers who have paid to access our services, lower employee-related expenses of $3.3 million, lower web hosting fees of $2.4 million, lower contractor spend of $1.9 million, and lower advertising revenue costs of $1.0 million due to decreased spending, which was partially offset by higher depreciation and amortization expense of $6.5 million primarily due to the accelerated depreciation recorded as we streamlined our product experiences, and higher restructuring charges of $1.5 million. Gross margins decreased to 60% during the nine months ended September 30, 2025, from 71% during the same period in 2024.

Previous wording

Operating expenses decreased $496.6 million, or 82%, and $530.6 million, or 72%, during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to the absence of impairment expenses of $481.5 million recognized fiscal year 2024. The remaining decrease was primarily related to lower employee-related expenses and contractor spend as a result of restructuring actions. See "Note 1, “Background and Basis of Presentation” and Note 12, “Restructuring Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information regarding impairment expense and the restructuring actions, respectively.

Current wording

Operating expenses decreased $252.3 million, or 80%, and $782.9 million, or 75%, during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to the absence of impairment expenses of $195.7 million and $677.2 million recognized in the three and nine months ended September 30, 2024, respectively. The remaining decrease was primarily related to lower employee-related expenses and contractor spend as a result of restructuring actions. See "Note 1, “Background and Basis of Presentation” and Note 11, “Restructuring Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information regarding impairment expense and the restructuring actions, respectively.

Previous wording

Research and development expenses decreased $14.9 million, or 34%, during the three months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to lower employee-related expenses of $16.7 million, including share-based compensation expense, and lower contractor spend of $1.6 million, partially offset by higher restructuring charges of $4.8 million. Research and development expenses as a percentage of net revenues were flat at 27% during the three months ended June 30, 2025 and 2024.

Current wording

Research and development expenses decreased $23.0 million, or 56%, during the three months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily due to lower employee-related expenses of $20.2 million including share-based compensation expense, lower web hosting fees of $1.9 million, lower contractor spend of $1.2 million, and lower technology expenses of $0.7 million, partially offset by higher restructuring charges of $1.7 million. Research and development expenses as a percentage of net revenues were 24% during the three months ended September 30, 2025 compared to 30% during the same period in 2024.

Previous wording

Research and development expenses decreased $29.9 million, or 34%, during the six months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to lower employee-related expenses of $30.2 million, including share-based compensation expense, lower contractor spend of $3.6 million, and $1.2 million in lower technology expenses, partially offset by higher restructuring charges of $5.7 million. Research and development expenses as a percentage of net revenues were flat at 26% during the six months ended June 30, 2025 and 2024.

Current wording

Research and development expenses decreased $52.9 million, or 41%, during the nine months ended September 30, 2025 compared to the same period in 2024. The decrease was primarily due to lower employee-related expenses of $50.4 million including share-based compensation expense, lower contractor spend of $4.8 million, lower technology expenses of $1.9 million, lower web hosting fees of $1.8 million, and lower depreciation and amortization expense of $0.8 million, partially offset by higher restructuring charges of $7.4 million. Research and development expenses as a percentage of net revenues were 25% during the nine months ended September 30, 2025 compared to 27% during the same period in 2024.

Previous wording

Sales and marketing expenses decreased by $6.1 million, or 26%, during the three months ended June 30, 2025, compared to the same period in 2024. The decrease was primarily attributable to lower employee-related expenses of $3.6 million, including share-based compensation expense, lower paid marketing expenses of $1.1 million, lower indirect marketing expenses of $1.8 million, and lower amortization expense of $0.5 million, partially offset by higher restructuring charges of $1.1 million. Sales and marketing expenses as a percentage of net revenues were 17% during the three months ended June 30, 2025 compared to 14% during the same period in 2024.

Current wording

Sales and marketing expenses decreased by $14.9 million, or 56%, during the three months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily attributable to lower paid marketing expenses of $11.2 million and lower employee-related expenses of $4.4 million including share-based compensation expense, partially offset by higher indirect marketing expenses of $0.9 million. Sales and marketing expenses as a percentage of net revenues were 15% during the three months ended September 30, 2025 compared to 19% during the same period in 2024.

Previous wording

Sales and marketing expenses decreased by $10.9 million, or 20%, during the six months ended June 30, 2025, compared to the same period in 2024. The decrease was primarily attributable to lower employee-related expenses of $5.7 million, including share-based compensation expense, lower paid marketing expenses of $1.0 million, lower indirect marketing expenses of $2.9 million, and lower depreciation and amortization expense of $1.3 million, partially offset by higher restructuring charges of $1.2 million. Sales and marketing expenses as a percentage of net revenues were 19% during the six months ended June 30, 2025 compared to 16% during the same period in 2024.

Current wording

Sales and marketing expenses decreased by $25.8 million, or 32%, during the nine months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily attributable to lower paid marketing expenses of $12.2 million, lower employee-related expenses of $10.1 million including share-based compensation expense, lower indirect marketing expenses of $2.0 million, lower depreciation and amortization expense of $1.3 million, and $0.5 million in lower technology expenses, partially offset by higher restructuring charges of $1.3 million. Sales and marketing expenses as a percentage of net revenues were 18% during the nine months ended September 30, 2025 compared to 17% during the same period in 2024.

Previous wording

General and administrative expenses decreased $10.2 million, or 9%, during the six months ended June 30, 2025 compared to the same period in 2024. The decrease was due to lower employee-related expenses of $22.8 million, which is primarily due to share-based compensation expense, lower professional fees of $6.8 million, and lower contractor spend of $1.9 million, partially offset by higher restructuring charges of $7.6 million, a $6.0 million impairment loss on a strategic equity investment, and a $7.5 million loss contingency accrual. General and administrative expenses as a percentage of net revenues were 44% during the three months ended June 30, 2025 compared to 32% during the same period in 2024.

Current wording

General and administrative expenses decreased $28.9 million, or 18%, during the nine months ended September 30, 2025 compared to the same period in 2024. The decrease was due to lower employee-related expenses of $38.4 million including share-based compensation expense, lower professional fees of $7.5 million, and lower contractor spend of $2.8 million, partially offset by higher restructuring charges of $12.0 million, a $6.0 million impairment loss on a strategic equity investment, and higher loss contingency accruals of $2.4 million. General and administrative expenses as a percentage of net revenues were 44% during the nine months ended September 30, 2025 compared to 34% during the same period in 2024.

Previous wording

Impairment expense was $2.0 million during the six months ended June 30, 2025, consisting of impairment of property and equipment. See Note 5, Property and Equipment, Net” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information. Impairment expense was $481.5 million during the three and six months ended June 30, 2024, consisting of impairments of goodwill, intangible assets, and other related long-lived assets. See "Note 1, Background and Basis of Presentation" and "Note 5, Property and Equipment" of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information.

Current wording

Impairment expense was $2.0 million during the nine months ended September 30, 2025, consisting of impairment of property and equipment. See Note 5, Property and Equipment, Net” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information. Impairment expense was $195.7 million and $677.2 million during the three and nine months ended September 30, 2024, consisting of impairments of goodwill, intangible assets, and other related long-lived assets. See "Note 1, Background and Basis of Presentation" and "Note 5, Property and Equipment" of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Interest expense, net decreased $0.6 million, or 94%, and $0.8 million, or 61%, during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to the maturity of the 2025 notes and the early extinguishment of a portion of the 2026 notes.

Current wording

Interest expense, net decreased $0.6 million, or 94%, and $1.4 million, or 72%, during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to the maturity of the 2025 notes and the early extinguishment of a portion of the 2026 notes.

Previous wording

Other income, net decreased $5.1 million, or 71%, during the three months ended June 30, 2025 compared to the same period in 2024, primarily due to a decrease in interest income of $5.7 million due to lower investment balances.

Current wording

Other income, net decreased $6.2 million, or 82%, during the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a decrease in interest income of $6.0 million due to lower investment balances.

Previous wording

Other income, net decreased $2.8 million, or 16%, during the six months ended June 30, 2025 compared to the same period in 2024, primarily due to a decrease in interest income of $7.8 million due to lower investment balances and the absence of the gain on sale of the strategic equity investment in Sound Ventures of $3.8 million, partially offset by the $7.4 million gain on early extinguishment of a portion of the 2026 notes.

Current wording

Other income, net decreased $9.1 million, or 36%, during the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to a decrease in interest income of $13.8 million due to lower investment balances and $3.0 million of lower realized gains on investments, partially offset by the $7.4 million gain on early extinguishment of a portion of the 2026 notes.

Previous wording

Provision for income taxes decreased $137.1 million and $145.2 million during the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to the valuation allowance established in fiscal year 2024 against our U.S. federal and state deferred tax assets.

Current wording

Provision for income taxes increased $4.4 million during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to the absence of discrete one-time tax benefits from fiscal year 2024 and restructuring losses in foreign jurisdictions. Provision for income taxes decreased $140.8 million during the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to the valuation allowance established in fiscal year 2024 against our U.S. federal and state deferred tax assets.

Previous wording

Cash, cash equivalents, and investments decreased $414.3 million, or 78%, and convertible senior notes, net decreased $423.4 million, or 87% during the six months ended June 30, 2025. The decreases were primarily due to the net cash used for the maturity of the 2025 notes and the early extinguishment of a portion of the 2026 notes.

Current wording

Cash, cash equivalents, and investments decreased $416.7 million, or 79%, and convertible senior notes, net decreased $423.4 million, or 87% during the nine months ended September 30, 2025. The decreases were primarily due to the net cash used for the maturity of the 2025 notes and the early extinguishment of a portion of the 2026 notes.

Previous wording

As of June 30, 2025, our principal sources of liquidity were cash, cash equivalents, and investments totaling $114.1 million, which were held for working capital purposes. We believe that our existing sources of liquidity as well as net cash flows from operations will be sufficient to fund our operations and debt service obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, our investments in research and development activities, our acquisition of new products and services and our sales and marketing activities. To the extent that existing sources of liquidity are insufficient to fund our future operations, we may need to raise additional funds through public or private equity or debt financing. Additional funds may not be available on terms favorable to us or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, operating cash flows and financial condition. As of June 30, 2025, we have incurred cumulative losses of $942.6 million from our operations and we may incur additional losses in the future.

Current wording

As of September 30, 2025, our principal sources of liquidity were cash, cash equivalents, and investments totaling $111.7 million, which were held for working capital purposes. We believe that our existing sources of liquidity as well as net cash flows from operations will be sufficient to fund our operations and debt service obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, our investments in research and development activities, our acquisition of new products and services and our sales and marketing activities. To the extent that existing sources of liquidity are insufficient to fund our future operations, we may need to raise additional funds through public or private equity or debt financing. Additional funds may not be available on terms favorable to us or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, operating cash flows and financial condition. As of September 30, 2025, we have an accumulated deficit of $960.1 million from our operations and we may incur additional losses in the future.

Previous wording

Most of our cash, cash equivalents, and investments are held in the United States. As part of our ongoing cash management, we intend to repatriate a portion of earnings from our subsidiary in India by the end of fiscal year 2025. Accordingly, we do not assert an indefinite reinvestment of earnings and accrued a withholding tax of $2.0 million as of June 30, 2025, related to a potential future distribution of such earnings. This reflects our continued assessment of cash needs and the absence of an indefinite reinvestment assertion for our subsidiary in India. As a result of the Tax Cuts and Jobs Act, we anticipate the U.S. federal impact for the remaining foreign jurisdictions to be minimal if these funds are repatriated. In addition, based on our current and future needs, we believe our current funding and capital resources for our international operations are adequate.

Current wording

Accordingly, we do not assert an indefinite reinvestment of earnings and accrued a withholding tax of $2.4 million as of September 30, 2025, related to a potential future distribution of such earnings. This reflects our continued assessment of cash needs and the absence of an indefinite reinvestment assertion for our subsidiary in India. As a result of the Tax Cuts and Jobs Act, we anticipate the U.S. federal impact for the remaining foreign jurisdictions to be minimal if these funds are repatriated. In addition, based on our current and future needs, we believe our current funding and capital resources for our international operations are adequate.

Previous wording

Net cash flows from operating activities decreased $47.9 million, or 71%, during the six months ended June 30, 2025 compared to the same period in 2024 and was primarily related to a decrease in impairment expense of $480.0 million, as well as a decrease in deferred tax assets of $140.9 million, partially offset by a decrease in net loss of $565.2 million.

Current wording

Net cash flows from operating activities decreased $82.6 million, or 77%, during the nine months ended September 30, 2025 compared to the same period in 2024 and was primarily related to the net effect of a decrease in net loss of $760.3 million, a decrease in impairment expense of $675.2 million, and a decrease in deferred tax assets of $140.8 million.

Previous wording

Net cash flows from investing activities increased $336.3 million during the six months ended June 30, 2025 compared to the same period in 2024 and was primarily related to higher proceeds from the sale of investments of $181.2 million, fewer purchases of investments of $122.9 million, higher proceeds from the maturities of our investments of $17.8 million, fewer purchases of property and equipment of $29.9 million partially offset by the absence of proceeds from the sale of our strategic investment of $15.5 million that occurred in the six months ended June 30, 2024.

Current wording

Net cash flows from investing activities increased $353.3 million during the nine months ended September 30, 2025 compared to the same period in 2024 and was primarily related to higher proceeds from the sale of investments of $181.2 million, fewer purchases of investments of $133.4 million, higher proceeds from the maturities of our investments of $14.2 million, fewer purchases of property and equipment of $40.0 million partially offset by the absence of proceeds from the sale of our strategic investment of $15.5 million that occurred in the nine months ended September 30, 2024.

Previous wording

Net cash flows from financing activities decreased $411.5 million during the six months ended June 30, 2025 compared to the same period in 2024 and was primarily related to the repayment of our convertible debt of $416.5 million.

Current wording

Net cash flows from financing activities decreased $411.3 million during the nine months ended September 30, 2025 compared to the same period in 2024 and was primarily related to the repayment of our convertible debt of $416.5 million.

Previous wording

There have been no material changes in our critical accounting policies and estimates during the six months ended June 30, 2025 as compared to the critical accounting policies and estimates disclosed in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

There have been no material changes in our critical accounting policies and estimates during the nine months ended September 30, 2025 as compared to the critical accounting policies and estimates disclosed in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2024.