RingCentral, Inc.

Previous wording

Over the past 25 years, RingCentral has transformed business communications, leading the shift from on-premises legacy communications to the cloud. Today, the company has an AI-powered multi-product portfolio including Unified Communications as a Service (“UCaaS”), Contact Center as a Service (“CCaaS”), Video & Events, and RingSense AI solutions. RingCentral’s core tenets include: a) Trust: We provide communications that businesses can trust with reliability, security, and privacy; b) Innovation: We execute through focused and strategic innovation, setting the bar in the industry for many market firsts; c) Partnerships: We have a diverse set of strategic partners, global service providers, channel partners, and third-party developers. RingCentral is designed for intelligent, connected, and effortless businesses communications, making employee and customer experiences more productive and efficient.

Current wording

Over the past 26 years, RingCentral has transformed business communications, leading the shift from on-premises legacy communications to the cloud. Today, the company has an AI-powered multi-product portfolio including Unified Communications as a Service (“UCaaS”), Contact Center as a Service (“CCaaS”), Video & Events, and RingSense AI solutions. RingCentral’s core tenets include: a) Trust: We provide communications that businesses can trust with reliability, security, and privacy; b) Innovation: We execute through focused and strategic innovation, setting the bar in the industry for many market firsts; and c) Partnerships: We have a diverse set of strategic partners, global service providers, channel partners, and third-party developers.

Previous wording

•RingCentral Contact Center. RingCentral Contact Center is a collaborative contact center solution that delivers AI-powered omni-channel and workforce engagement solutions integrated with RingEX. RingCentral Contact Center brings together the powerful integration of Contact Center as a Service (CCaaS) which leverages technology from NICE Ltd., along with RingEX, enabling an easy collaboration while delivering seamless omnichannel experiences across more than 30 digital and voice channels.

Current wording

•RingCentral Contact Center. RingCentral Contact Center is a collaborative contact center solution that delivers AI-powered omni-channel and workforce engagement solutions integrated with RingEX. RingCentral Contact Center brings together the powerful integration of CCaaS which leverages technology from NICE Ltd., along with RingEX, enabling an easy collaboration while delivering seamless omnichannel experiences across more than 30 digital and voice channels.

Previous wording

•RingCX is our native next-generation CCaaS solution, delivering an AI-powered customer engagement solution with deep CRM integrations and a broad ecosystem of integrated partner solutions.

Current wording

•RingCX. RingCX is our native CCaaS solution, that delivers an AI-powered customer experience across multiple voice and digital channels with deep CRM integrations and a broad ecosystem of integrated partner solutions.

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•RingCentral Artificial Intelligence Solutions. RingCentral provides multiple AI solutions for RingEX and RingCX designed to improve employee productivity, elevate customer experience and automate routine tasks.

Current wording

•RingCentral Artificial Intelligence Solutions. RingCentral provides multiple AI solutions for RingEX and RingCX, including AI Assistant and AIR, designed to improve employee productivity, elevate customer experience and automate routine tasks.

Previous wording

•RingCentral for Microsoft Teams. RingCentral seamlessly embeds into Microsoft Teams, providing reliable, global enterprise-grade phone, SMS, fax, and customer experience solutions—without requiring a Teams Phone license.

Current wording

•RingCentral for Microsoft Teams. RingCentral seamlessly embeds into Microsoft Teams, providing reliable, global enterprise-grade phone, SMS, fax, and customer experience solutions—without requiring a Microsoft Teams Phone license.

Previous wording

Our flagship cloud-based offerings, RingEX and RingCX, are subscription based and made available at different rates varying by the specific functionalities, services, and number of users. We primarily generate revenues from the sale of subscriptions to our offerings. Our subscription plans have monthly, annual, or multi-year contractual terms. We believe that this flexibility in contract duration is important to meet the different needs of our customers. For the three months ended March 31, 2025 and 2024, subscriptions revenues accounted for over 90% of our total revenues. The remainder of our revenues are primarily comprised of product revenues from the sale of pre-configured phones and professional services. We do not develop or manufacture physical phones and only offer them as a convenience to our customers. We rely on third-party providers to develop and manufacture these devices and fulfillment partners to successfully serve our customers.

Current wording

Our flagship cloud-based offerings, RingEX and RingCX, are subscription based and made available at different package and pricing tiers, varying by the specific functionalities, services, and number of users. We primarily generate revenues from the sale of subscriptions to our offerings. Our subscription plans have monthly, annual, or multi-year contractual terms. We believe that this flexibility in contract duration is important to meet the different needs of our customers. For the three and six months ended June 30, 2025 and 2024, subscriptions revenues accounted for over 90% of our total revenues. The remainder of our revenues are primarily comprised of product revenues from the sale of pre-configured phones and professional services. We do not develop or manufacture physical phones and only offer them as a convenience to our customers. We rely on third-party providers to develop and manufacture these devices and fulfillment partners to successfully serve our customers.

Previous wording

We use our direct inside sales force and indirect sales channels to market our product and our subscription offerings. Our indirect sales channels who sell our solutions consist of:

Current wording

We use our direct sales force and indirect sales channels to market our multi-product portfolio . Our indirect sales channels who sell our solutions consist of:

Previous wording

•Regional and global network of resellers and distributors;

Current wording

•Regional and global network of resellers and distributors; and

Previous wording

Our revenue has primarily been driven by our flagship RingEX, RingCentral Contact Center, RingCX, and other fees. Our revenue is derived from sales through our direct and indirect sales channels, including resellers and distributors, strategic partners and global service providers. As of March 31, 2025, we had customers from a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, among others. For each of the three months ended March 31, 2025 and 2024, the vast majority of our total revenues were generated in the U.S. and Canada.

Current wording

Our revenue has primarily been driven by our flagship RingEX, RingCentral Contact Center, RingCX, and other fees. Our revenue is derived from sales through our direct and indirect sales channels, including resellers and distributors, strategic partners and global service providers. As of June 30, 2025, we had customers from a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, among others. For each of the three and six months ended June 30, 2025 and 2024, the vast majority of our total revenues were generated in the U.S. and Canada.

Previous wording

We have been actively implementing various measures to enhance operational efficiencies. These include stricter discipline in spending, increased productivity, efficiency gains, and optimizing our go-to-market strategies.

Current wording

We have been actively implementing various measures to enhance operational efficiencies, expand margins and free cash flows while optimizing our working capital requirements. These include stricter discipline in spending, including stock-based grants, increased productivity, efficiency gains, and optimizing our go-to-market strategies.

Previous wording

We believe that our Annualized Exit Monthly Recurring Subscriptions (“ARR”) is a leading indicator of our anticipated subscriptions revenues. We believe that trends in revenue are important to understanding the overall health of our business, and we use these trends in order to formulate financial projections and make strategic business decisions. Our ARR equals our Monthly Recurring Subscriptions multiplied by 12. Our Monthly Recurring Subscriptions equals the monthly value of all customer recurring charges at the end of a given month. For example, our Monthly Recurring Subscriptions at March 31, 2025 was $211.0 million. As such, our ARR at March 31, 2025 was $2.53 billion compared to $2.37 billion at March 31, 2024.

Current wording

We believe that our Annualized Exit Monthly Recurring Subscriptions (“ARR”) is a leading indicator of our anticipated subscriptions revenues. We believe that trends in revenue are important to understanding the overall health of our business, and we use these trends in order to formulate financial projections and make strategic business decisions. Our ARR equals our Monthly Recurring Subscriptions multiplied by 12. Our Monthly Recurring Subscriptions equals the monthly value of all customer recurring charges at the end of a given month. For example, our Monthly Recurring Subscriptions at June 30, 2025 was $215.6 million. As such, our ARR at June 30, 2025 was $2.59 billion compared to $2.43 billion at June 30, 2024.

Previous wording

Comparison of the Three Months Ended March 31, 2025 and 2024

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Comparison of the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

Subscriptions revenue. Subscriptions revenue increased by $32.6 million, or 6%, for the three months ended March 31, 2025, as compared to the respective prior year period. The increase was due to the acquisition of new customers, sale of new products, upsells of RingEX and additional offerings to our existing customer base. Our sales are derived from our direct and indirect sales channels, including resellers, distributors, strategic partners and global service providers.

Current wording

Subscriptions revenue. Subscriptions revenue increased by $31.7 million, or 6%, for the three months ended June 30, 2025, and $64.3 million, or 6%, for the six months ended June 30, 2025, as compared to the respective prior year period. The increase was due to the acquisition of new customers, sale of new products, upsells of RingEX and additional offerings to our existing customer base. Our sales are derived from our direct and indirect sales channels, including resellers, distributors, strategic partners and global service providers.

Previous wording

Other revenue. Other revenue decreased by $4.8 million, or (18)%, for the three months ended March 31, 2025, as compared to the respective prior year period, primarily due to the timing of performance of professional services.

Current wording

Other revenue. Other revenue decreased by $4.2 million, or (16)%, for the three months ended June 30, 2025, and $9.0 million, or (17)%, for the six months ended June 30, 2025, as compared to the respective prior year period, primarily due to the timing of performance of professional services, and lower pricing for professional services.

Previous wording

Subscriptions cost of revenues and gross margin. Cost of subscriptions revenues increased by $9.4 million, or 7%, for the three months ended March 31, 2025, as compared to the respective prior year period. The higher cost of subscription revenues was due to a $4.0 million increase in third-party costs to support our solution offerings, a $4.5 million increase in infrastructure support costs, and a $3.0 million increase in personnel and contractor costs. These increases were partially offset by a $2.9 million reduction in the amortization of our intangible assets.

Current wording

Subscriptions cost of revenues and gross margin. Cost of subscriptions revenues increased by $2.7 million, or 2%, for the three months ended June 30, 2025, as compared to the respective prior year period. The increase was primarily driven by a $3.6 million increase in third-party costs to support our solution offerings, a $2.0 million increase in headcount-related costs, and a $1.9 million increase in infrastructure support costs. These increases were partially offset by a $2.9 million reduction in share-based compensation expense due to disciplined new grant activity and a $2.5 million decrease in the amortization of intangible assets.

Previous wording

For the three months ended March 31, 2025, as compared to the respective prior year period, our subscription gross margin remained relatively consistent period over period.

Current wording

Cost of subscriptions revenues increased by $12.1 million, or 4%, for the six months ended June 30, 2025, as compared to the respective prior year period. The increase was primarily driven by a $7.6 million increase in third-party costs to support our solution offerings, a $6.4 million increase in infrastructure support costs, and a $5.7 million increase in headcount-related costs. These increases were partially offset by a $4.3 million reduction in share-based compensation expense due to disciplined new grant activity and a $5.4 million decrease in amortization of intangible assets. Subscription gross margin remained relatively consistent period-over-period for the three and six months ended June 30, 2025.

Previous wording

Other cost of revenues and gross margin. Cost of other revenues increased by $0.5 million, or 2%, for the three months ended March 31, 2025, as compared to the respective prior year period. Other revenue gross margin fluctuated mainly due to lower transaction price of products.

Current wording

Other cost of revenues and gross margin. Cost of other revenues remained relatively consistent period-over-period for the three and six months ended June 30, 2025. Other revenue gross margin fluctuated mainly due to the timing of performance of professional services.

Previous wording

We believe that investment in our products is important for our future growth, and our research and development expenses may fluctuate as a percentage of our total revenues from period to period depending on the timing of these expenses.

Current wording

We believe that investment in our products, including new AI-first products, is important for our future growth, and our research and development expenses may fluctuate as a percentage of our total revenues from period to period depending on the timing of these expenses.

Previous wording

Sales and marketing expenses increased by $2.2 million, or 1%, for the three months ended March 31, 2025, as compared to the respective prior year period. This increase was driven by a $8.1 million increase in third-party commissions, partially offset by a $3.4 million decrease in personnel and contractor costs due to headcount reductions, and a $1.7 million decline in advertising and marketing costs driven by disciplined spending.

Current wording

Sales and marketing expenses decreased by $3.7 million, or (1)%, for the six months ended June 30, 2025, as compared to the respective prior year period. This decrease was primarily driven by a $11.2 million decrease in personnel and contractor costs due to headcount reductions, a $6.2 million reduction in share-based compensation due to disciplined new grant activity, and a $3.6 million decrease in professional fees. These decreases were partially offset by a $16.8 million increase in third-party commissions.

Previous wording

Net loss decreased by $18.2 million for the three months ended March 31, 2025, as compared to the respective prior year period. This improvement was largely due to a $21.2 million reduction in loss from operations, driven by higher subscription revenues and lower operating expenses as a percentage of total revenue. The reduction in operating expenses reflects ongoing disciplined spending, including a $10.3 million reduction in share-based compensation.

Current wording

Net income increased by $27.9 million for the three months ended June 30, 2025, as compared to the respective prior year period. This improvement was largely due to a $42.3 million increase in income from operations, driven by higher subscription revenues and lower operating expenses. The reduction in operating expenses reflects ongoing disciplined spending, including a $23.3 million reduction in share-based compensation.

Previous wording

We finance our operations primarily through sales to our customers, which could be billed either monthly or annually one year in advance. For customers with annual or multi-year contracts and those who opt for annual invoicing, we generally invoice only one annual period in advance and revenue is deferred for such advanced billings. We also have access to additional liquidity from our Term Loan and Revolving Credit Facility. As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents of $154.4 million and $242.8 million, respectively. These amounts include $7.4 million in restricted cash for both periods, held as a bank deposit for issuance of a foreign bank guarantee.

Current wording

We finance our operations primarily through sales to our customers, which could be billed either monthly or annually one year in advance. For customers with annual or multi-year contracts and those who opt for annual invoicing, we generally invoice only one annual period in advance and revenue is deferred for such advanced billings. We also have access to additional liquidity from our Term Loan and Revolving Credit Facility. As of June 30, 2025, and December 31, 2024, we had cash and cash equivalents of $168.1 million and $242.8 million, respectively. These amounts include restricted cash of $8.3 million and $7.4 million, respectively, held as a bank deposit for issuance of a foreign bank guarantee.

Previous wording

Under our share repurchase programs, share repurchases may be made at our discretion from time to time in open market transactions, privately negotiated transactions, or other means, subject to a minimum cash balance. The programs do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares of our Class A Common Stock. The timing and number of any shares repurchased under the programs will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. During the three months ended March 31, 2025, we repurchased and settled approximately 1.8 million shares of our Class A Common Stock, by paying an aggregate amount of approximately $50.0 million under the plans previously authorized by our board of directors. In February 2025, our board of directors authorized an incremental $100.0 million share repurchase, subject to certain limitations. The authorization does not expire. As of March 31, 2025, approximately $218.1 million remained authorized and available under our share repurchase programs for future share repurchases. Refer to Note 10, Stockholders’ Deficit in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Current wording

Under our share repurchase programs, share repurchases may be made at our discretion from time to time in open market transactions, privately negotiated transactions, or other means, subject to a minimum cash balance. The programs do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares of our Class A Common Stock. The timing and number of any shares repurchased under the programs will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. During the six months ended June 30, 2025, we repurchased and settled approximately 3.0 million shares of our Class A Common Stock, by paying an aggregate amount of approximately $81.8 million under the plans previously authorized by our board of directors. As of June 30, 2025, approximately $186.0 million remained authorized and available under our share repurchase programs for future share repurchases. On July 30, 2025, our board of directors further increased this authorization to $500.0 million, subject to certain limitations. This authorization does not expire. Refer to Note 9, Stockholders’ Deficit in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

In March 2025, the Company repaid the remaining $161.3 million of the 2025 Convertible Notes upon maturity using cash and cash equivalents. We have access to additional liquidity of $350.0 million available under our delayed draw-down Term Loan and $225.0 million available under our Revolving Credit Facility. Refer to Note 5, Long-Term Debt, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our Credit Agreement, the 2030 Senior Notes, and the 2026 Convertible Notes. We were in compliance with all debt covenants as of March 31, 2025. We believe that cash flows from our operations, combined with $350.0 million of incremental capacity on our Term Loan and $225.0 million on our Revolving Credit Facility, as well as our ability to raise cash through additional financing, will provide adequate liquidity to extinguish our 2026 Convertible Notes on a timely basis as contractually required.

Current wording

During the first half of 2025, we made significant progress in reducing our outstanding debt by repaying $271.3 million of the principal amount. In March 2025, we repaid the remaining $161.3 million principal amount of our 2025 Convertible Notes upon maturity using cash and cash equivalents. In June 2025, we repaid $55.0 million of principal on our Term Loan, including $5.0 million scheduled quarterly payments. In June 2025, we further reduced our debt by making a $53.9 million cash payment to repurchase $50.0 million of principal on our 2030 Senior Notes. As of June 30, 2025, we have access to additional liquidity of $350.0 million available under our delayed draw-down Term Loan and $225.0 million available under our Revolving Credit Facility. Refer to Note 5, Long-Term Debt, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our Credit Agreement, the 2030 Senior Notes, and the 2026 Convertible Notes. We were in compliance with all debt covenants as of June 30, 2025. We believe that cash flows from our operations, combined with $350.0 million of incremental capacity on our Term Loan and $225.0 million on our Revolving Credit Facility, as well as our ability to raise cash through additional financing, will provide adequate liquidity to extinguish our 2026 Convertible Notes on a timely basis as contractually required.

Previous wording

We believe that cash flows from our operations, existing liquidity sources as well as capital resources and ability to raise cash through additional financing will satisfy our future cash requirements and obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support customer growth, acquisitions and expansions, operating expenses, and capital equipment required to support our headcount and in support of our co-location data center facilities, our interest payments for both our Term Loan and 2030 Senior Notes, and the repayment of our 2026 Convertible Notes. Our capital expenditures in future periods are expected to grow in line with our business. We continually evaluate our capital needs and may decide to raise additional capital to fund the growth of our business for general corporate purposes through public or private equity offerings or through additional debt financing. The timing and amount of any such financing requirements will depend on a number of factors, including the maturity dates of our existing debt. We may from time to time seek to refinance certain of our outstanding debt through issuances of new notes or convertible debt, term loans, exchange transactions or debt repurchases. Such issuances, exchanges or repurchases, if any, will depend on prevailing market conditions, our ability to negotiate acceptable terms, our liquidity position and other factors. Refer to risk factors in Part II, Item 1A of this Quarterly Report on Form 10-Q for discussion of risks relating to our liquidity and capital resources.

Current wording

We believe that cash flows from our operations, existing liquidity sources as well as capital resources and ability to raise cash through additional financing will satisfy our future cash requirements and obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support customer growth, acquisitions and expansions, operating expenses, and capital equipment required to support our headcount and in support of our co-location data center facilities, our interest payments for both our Term Loan and 2030 Senior Notes, and the repayment of our 2026 Convertible Notes. Our capital expenditures in future periods are expected to grow in line with our business. We continually evaluate our capital needs and may decide to raise additional capital to fund the growth of our business for general corporate purposes through public or private equity offerings or through additional debt financing. The timing and amount of any such financing requirements will depend on a number of factors, including the maturity dates of our existing debt. We may from time to time seek to refinance certain of our outstanding debt through issuances of new notes or convertible debt, term loans, exchange transactions or debt repurchases. Such issuances, exchanges or repurchases, if any, will depend on prevailing market conditions, our ability to negotiate acceptable terms, our liquidity position and other factors. We may also from time to time seek to early repay or repurchase our debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such early repayments or repurchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. Refer to risk factors in Part II, Item 1A of this Quarterly Report on Form 10-Q for discussion of risks relating to our liquidity and capital resources.

Previous wording

Net cash provided by operating activities was $149.7 million for the three months ended March 31, 2025. The cash flow from operating activities was driven by timing of cash receipts from customers and global service providers, offset by cash payments for personnel-related costs and payments to vendors along with interest payments on our debt obligations. The improvement also reflects a $21.2 million reduction in loss from operations, driven by higher subscription revenues and lower operating expenses as a percentage of total revenue.

Current wording

Net cash provided by operating activities was $317.1 million for the six months ended June 30, 2025. The cash flow from operating activities was driven by timing of cash receipts from customers and global service providers, offset by cash payments for personnel-related costs and payments to vendors along with interest payments on our debt obligations. The improvement also reflects a $63.6 million increase in income from operations, driven by higher subscription revenues and lower operating expenses.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025 increased by $53.6 million, as compared to the respective prior year period. This change reflects working capital impacts resulting from the timing of payments and collections.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025 increased by $93.9 million, as compared to the respective prior year period. This change reflects working capital impacts resulting from the timing of payments and collections.

Previous wording

Net cash used in investing activities was $19.5 million for the three months ended March 31, 2025, driven by capital expenditures, which included personnel-related costs associated with the development of internal-use software.

Current wording

Net cash used in investing activities was $42.5 million for the six months ended June 30, 2025, driven by capital expenditures, which included personnel-related costs associated with the development of internal-use software.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 increased by $0.1 million, as compared to the respective prior year period, due to capital expenditures, including personnel-related costs associated for the development of internal-use software.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 decreased by $21.5 million, as compared to the respective prior year period. The decrease was primarily driven by $26.3 million in cash paid for business combinations during the six months ended June 30, 2024. This was partially offset by a $4.8 million increase in capital expenditures, including personnel-related costs associated with the development of internal-use software.

Previous wording

Net cash used in financing activities was $219.9 million for the three months ended March 31, 2025. This was primarily driven by the cash settlement of $161.3 million upon the maturity of our 2025 Convertible Notes and $50.0 million to repurchase and retire approximately 1.8 million shares of Class A Common Stock under our share repurchase program. Additionally, other cash outflows included $6.0 million for debt service costs and repayments, $1.9 million for taxes associated with our stock plans, and $0.6 million to fulfill our existing financing commitments.

Current wording

Net cash used in financing activities was $353.8 million for the six months ended June 30, 2025. The increase was primarily driven by the cash settlement of $161.3 million upon the maturity of our 2025 Convertible Notes, $60.0 million of principal repayments on our Term Loan, and a $53.9 million cash payment to repurchase $50.0 million of principal on our 2030 Senior Notes. Additional cash outflows included $81.8 million used to repurchase and retire approximately 3.0 million shares of our Class A Common Stock under our share repurchase program, and $3.6 million for taxes associated with our stock plans. These outflows were partially offset by $9.1 million in proceeds from issuance of stock in connection with our stock plans.

Previous wording

Net cash used in financing activities for the three months ended March 31, 2025 increased by $125.2 million, as compared to the respective prior year period. This increase was driven by a cash outflow of $161.3 million related to the cash settlement of our 2025 Convertible Notes. This was partially offset by a $30.5 million decrease in payments for the repurchase and retirement of our Class A Common Stock, a $4.1 million decrease in contingent consideration payments, and a $0.8 million decrease in debt service costs and repayments.

Current wording

Net cash used in financing activities for the six months ended June 30, 2025 increased by $172.9 million, as compared to the respective prior year period. The increase was primarily driven by a $161.3 million cash outflow related to the settlement of our 2025 Convertible Notes upon maturity, a $50.0 million increase in principal repayments on our Term Loan, and a $53.9 million cash payment to repurchase $50.0 million of principal on our 2030 Senior Notes. These increases were partially offset by an $80.2 million decrease in payments for the repurchase and retirement of our Class A Common Stock, and a $10.3 million decrease in contingent consideration payments.

Previous wording

Except as set forth below, and in Notes 3, 5, 8 and 9 in the accompanying notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no significant changes in our commitments under contractual obligations, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Except as set forth below, and in Notes 3, 5, 7 and 8 in the accompanying notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no significant changes in our commitments under contractual obligations, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

During the three months ended March 31, 2025 and 2024, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Current wording

During the six months ended June 30, 2025 and 2024, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.