RingCentral, Inc.

Previous 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.

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. We recently announced RingWEM that leverages and extends the recent acquisition of CommunityWFM workforce management. RingWEM complements RingCX by adding capabilities for agent performance, customer satisfaction through integrated, AI-powered insights.

Previous 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.

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 nine months ended September 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

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.

Current wording

Our revenue has primarily been driven by our flagship RingEX, RingCentral Contact Center, and RingCX. 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 September 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 nine months ended September 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, 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.

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 measures include disciplined hiring, vendor consolidation, disciplined stock-based grants and increasing internal use of AI.

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 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.

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 September 30, 2025 was $219.2 million. As such, our ARR at September 30, 2025 was $2.63 billion compared to $2.48 billion at September 30, 2024.

Previous wording

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

Current wording

Comparison of the Three and Nine Months Ended September 30, 2025 and 2024

Previous 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.

Current wording

Subscriptions revenue. Subscriptions revenue increased by $32.9 million, or 6%, for the three months ended September 30, 2025, and $97.1 million, or 6%, for the nine months ended September 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 $4.2 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.

Current wording

Other revenue. Other revenue decreased by $3.0 million, or (11)%, for the three months ended September 30, 2025, and $11.9 million, or (15)%, for the nine months ended September 30, 2025, as compared to the respective prior year period, primarily due to the timing of performance and lower pricing for professional services.

Previous 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.

Current wording

Subscriptions cost of revenues and gross margin. Cost of subscriptions revenues increased by $3.1 million, or 2%, for the three months ended September 30, 2025, as compared to the respective prior year period. The increase was primarily driven by a $2.7 million increase in third-party costs to support our solution offerings and a $2.3 million increase in infrastructure support costs. These increases were partially offset by a $2.1 million reduction in share-based compensation expense due to disciplined new grant activity.

Previous 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.

Current wording

Cost of subscriptions revenues increased by $15.2 million, or 3%, for the nine months ended September 30, 2025, as compared to the respective prior year period. The increase was primarily driven by a $10.3 million increase in third-party costs to support our solution offerings, a $9.0 million increase in infrastructure support costs, and a $4.5 million increase in headcount-related costs. These increases were partially offset by a $6.4 million reduction in share-based compensation expense due to disciplined new grant activity, and a $4.7 million decrease in amortization of intangible assets. Subscription gross margin remained relatively consistent period-over-period for the three and nine months ended September 30, 2025.

Previous 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.

Current wording

Other cost of revenues and gross margin. Cost of other revenues decreased by $2.9 million, or (10)%, for the three months ended September 30, 2025, and $2.8 million, or (3)%, for the nine months ended September 30, 2025 as compared to the respective prior year period, primarily due to reduction in personnel costs. Other revenue gross margin fluctuated mainly due to the timing of performance of professional services.

Previous wording

Sales and marketing expenses decreased by $5.9 million, or (2)%, for the three months ended June 30, 2025, as compared to the respective prior year period. The decrease was primarily driven by a $7.5 million reduction in share-based compensation due to disciplined new grant activity, a $6.5 million decrease in personnel and contractor costs, primarily due to headcount reductions, and a $1.8 million reduction in professional fees. These decreases were partially offset by a $10.5 million increase in third-party commissions.

Current wording

Sales and marketing expenses increased by $4.6 million, or 2%, for the three months ended September 30, 2025, as compared to the respective prior year period. This increase was primarily driven by $11.4 million in asset write-down charges, and a $10.5 million increase in third-party commissions. These increases were partially offset by a $10.1 million reduction in personnel and contractor costs primarily due to headcount reductions, and an $8.2 million decrease in share-based compensation due to disciplined new grant activity.

Previous 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.

Current wording

Sales and marketing expenses increased by $0.8 million, or 0%, for the nine months ended September 30, 2025, as compared to the respective prior year period. The increase was primarily driven by a $27.3 million increase from third-party commissions, $11.4 million from asset write-down charges, and $2.4 million from amortization of deferred sales commission costs. These increases were partially offset by a $21.4 million reduction in personnel and contractor costs, largely due to headcount reductions, a $14.4 million decrease in share-based compensation due to disciplined new grant activity, and a $4.3 million decrease in professional fees.

Previous wording

We expect to incur incremental sales and marketing expenses to support our growth while driving cost efficiencies by further optimizing our go-to-market strategies.

Current wording

We expect to incur incremental sales and marketing expenses to support our growth while driving operational efficiencies.

Previous wording

Other income decreased by $15.2 million for the six months ended June 30, 2025, as compared to the respective prior year. This decrease was primarily driven by a $7.7 million gain recognized in the prior-year period related to an amended agreement with a strategic partner. During the three months ended June 30, 2025, we recognized $4.7 million expense associated with the repurchase of our 2030 Senior Notes.

Current wording

Other income decreased by $16.1 million for the nine months ended September 30, 2025, as compared to the respective prior year. This decrease was primarily driven by a $7.7 million gain recognized in the prior-year period related to an amended agreement with a strategic partner, a $4.0 million reduction in interest income from our investments due to lower cash balances held in money market funds, and the recognition of a $4.7 million expense associated with the repurchase of our 2030 Senior Notes during the nine months ended September 30, 2025.

Previous 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.

Current wording

Net income increased by $25.4 million for the three months ended September 30, 2025, as compared to the respective prior year period. This improvement was largely due to a $27.5 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 $19.0 million reduction in share-based compensation.

Previous wording

Net income increased by $46.1 million for the six months ended June 30, 2025, as compared to the respective prior year period. This improvement was largely due to a $63.6 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 $33.6 million reduction in share-based compensation.

Current wording

Net income increased by $71.5 million for the nine months ended September 30, 2025, as compared to the respective prior year period. This improvement was largely due to a $91.1 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 $52.6 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 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.

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 September 30, 2025, and December 31, 2024, we had cash and cash equivalents of $145.4 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 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.

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. 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 nine months ended September 30, 2025, we repurchased and settled approximately 6.9 million shares of our Class A Common Stock, by paying an aggregate amount of approximately $199.0 million under the plans previously authorized by our board of directors. The authorization under this program does not expire. As of September 30, 2025, approximately $384.1 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.

Previous 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.

Current wording

During the nine months ended September 30, 2025, we reduced our outstanding debt by repaying $275.2 million of principal, including $161.3 million on our 2025 Convertible Notes upon maturity, $63.9 million on our Term Loan, and $50.0 million on our 2030 Senior Notes. As of September 30, 2025, we have access to additional liquidity of $650.0 million available under our delayed draw-down Term Loan and $305.0 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 September 30, 2025. We plan to utilize our cash flows from our operations, combined with $650.0 million of incremental capacity on our Term Loan and $305.0 million on our Revolving Credit Facility to settle 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. 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.

Current wording

We believe that cash flows from our operations, existing liquidity sources including 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 $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.

Current wording

Net cash provided by operating activities was $468.4 million for the nine months ended September 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.

Previous 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.

Current wording

Net cash provided by operating activities for the nine months ended September 30, 2025 increased by $118.0 million, as compared to the respective prior year period. This improvement reflects working capital impacts resulting from the timing of payments and collections and a $91.1 million increase in income from operations, driven by higher subscription revenues and lower operating expenses.

Previous 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.

Current wording

Net cash used in investing activities was $85.1 million for the nine months ended September 30, 2025, driven by $64.4 million in capital expenditures, including personnel-related costs associated with the development of internal-use software, and $20.8 million in cash paid for business combination.

Previous 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.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2025 decreased by $3.2 million, as compared to the respective prior year period. The change was primarily attributed to a $5.5 million decrease in cash used for business combinations and a $2.5 million decrease in cash used for the purchase of intangible assets. This was partially offset by a $4.9 million increase in capital expenditures, which includes personnel-related costs associated with the development of internal-use software.

Previous 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.

Current wording

Net cash used in financing activities was $484.7 million for the nine months ended September 30, 2025. The increase was primarily driven by the cash settlement of $161.3 million upon the maturity of our 2025 Convertible Notes, $63.9 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 $199.0 million used to repurchase and retire approximately 6.9 million shares of our Class A Common Stock under our share repurchase program, and $8.3 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 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.

Current wording

Net cash used in financing activities for the nine months ended September 30, 2025 increased by $211.6 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 $53.9 million cash payment to repurchase $50.0 million of principal on our 2030 Senior Notes, and a $48.9 million increase in principal repayments on our Term Loan. These increases were partially offset by an $46.0 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, 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.

Current 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.

Previous 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.

Current wording

During the nine months ended September 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.