RingCentral, Inc.

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 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.

Current wording

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, 2026, and 2025, subscriptions revenues accounted for over 90% of our total revenues. Other revenues are 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, 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.

Current wording

As of March 31, 2026, we had customers from a range of industries, including healthcare, financial and professional services, retail, state and local government, education, legal services, real estate, technology, insurance, construction and hospitality, among others. For the three months ended March 31, 2026, and 2025, the vast majority of our total revenues were generated in the U.S. and Canada.

Previous wording

The growth of our business and our future success depend on many factors, including our ability to expand our customer base, expand our indirect sales channels, continue to innovate, grow revenues from our existing customer base, increase sales and revenues from our existing and new products, expand our distribution channels, and scale internationally.

Current wording

The growth of our business and our future success depend on many factors, including our ability to add new customers, retain and expand within our existing customer base, continue to innovate and successfully monetize our AI-led product portfolio, increase sales and revenues from our existing and new products, and execute efficiently on our go-to-market strategy.

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

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, expanded use of offshore service providers, vendor consolidation, optimization of our go-to-market motions, and increased internal deployment of AI tools to drive productivity. A key component of our margin expansion strategy is the reduction of stock-based compensation (SBC) as a percentage of revenue. SBC decreased from approximately 13.1% of total revenue in prior year to approximately 8.9% of total revenue during the three months ended March 31, 2026.

Previous wording

We are subject to risks and exposures caused by the current macroeconomic environment. Macroeconomic factors include persistent inflation, higher interest rates, change in government administrations, supply chain disruptions, the imposition of tariffs and other non-tariff trade barriers, decreased economic output, geopolitical conflict and fluctuations in currency exchange rates, all of which can cause uncertainty. The overall macroeconomic environment may affect buying behavior from our customers, potentially reducing demand for our products and adversely impacting our results. We have in the past and may in the future experience lower upsell and increased downsell of additional RingEX services within our existing base as customers slow hiring and rationalize their employee counts. We continuously monitor the impact of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape. The implications of macroeconomic conditions on our business, results of operations, and overall financial position remains uncertain.

Current wording

Our business is subject to risks and exposures caused by the macroeconomic environment. Macroeconomic factors include persistent inflation, elevated interest rates, change in government administrations, supply chain disruptions, the imposition of tariffs and other non-tariff trade barriers, decreased economic output, geopolitical conflict and fluctuations in currency exchange rates, all of which can cause uncertainty. The overall macroeconomic environment may affect buying behavior from our customers, potentially reducing demand for our products and adversely impacting our results. We have in the past and may in the future experience lower upsell and increased downsell within our existing base as customers may slow hiring and rationalize their employee counts or lower average revenue per user. We continuously monitor the impact of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape. The implications of macroeconomic conditions on our business, results of operations, and overall financial position remains uncertain.

Previous wording

In addition to United States generally accepted accounting principles (“U.S. GAAP”) and financial measures such as total revenues, gross margin, and cash flows from operations, we review a number of key business metrics to evaluate growth trends, measure our performance, and make strategic decisions. We discuss revenues and gross margin under “Results of Operations”, and cash flow from operations and free cash flows under “Liquidity and Capital Resources.” Other key business metrics are discussed below.

Current wording

In addition to United States generally accepted accounting principles (“U.S. GAAP”) and financial measures such as total revenues, gross margin, and cash flows from operations, we review a number of key business metrics to evaluate growth trends, measure our performance, and make strategic decisions. We discuss revenues and gross margin under “Results of Operations”, and cash flow from operations and free cash flow under “Liquidity and Capital Resources.” Other key business metrics are discussed below.

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 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.

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 March 31, 2026 was $225.6 million. As such, our ARR at March 31, 2026 was $2.71 billion compared to $2.53 billion at March 31, 2025.

Previous wording

We believe that our Net Monthly Subscription Dollar Retention Rate provides insight into our ability to retain and grow subscriptions revenue, as well as our customers’ potential long-term value to us. We believe that our ability to retain our customers and expand their use of our solutions over time is a leading indicator of the stability of our revenue base and we use these trends in order to formulate financial projections and make strategic business decisions. We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Monthly Recurring Subscriptions.

Current wording

We believe that our Net Monthly Subscription Dollar Retention Rate provides insight into our ability to retain and grow subscriptions revenues, as well as our customers’ potential long-term value to us. We believe that our ability to retain our customers and expand their use of our solutions over time is a leading indicator of the stability of our revenue base and we use these trends in order to formulate financial projections and make strategic business decisions. We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Monthly Recurring Subscriptions.

Previous wording

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

Current wording

Comparison of the Three Months Ended March 31, 2026 and 2025

Previous 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.

Current wording

Other revenues. Other revenues decreased by $0.9 million, or (4)%, for the three months ended March 31, 2026, as compared to the respective prior year period. The decrease in other revenues is primarily driven by lower professional services due to the timing of performance and lower pricing for professional services.

Previous wording

Although we expect to continue to add new customers for our products, including new product sales, and increase the usage of our products for existing customers, we will monitor the macroeconomic factors that could impact customer buying behavior and demand, including contract duration, timing of customer purchases, churn, upsell and down-sell, renewals, payment terms, and credit card declines, all of which could cause variability in our revenue.

Current wording

Although we expect to continue to add new customers for our products, including new product sales, and increase the usage of our products for existing customers, we will monitor the macroeconomic factors that could impact customer buying behavior and demand, including contract duration, timing of customer purchases, pricing changes, churn, upsell and down-sell, renewals, payment terms, and credit card declines, all of which could cause variability in our revenue.

Previous 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.

Current wording

Subscriptions cost of revenues and gross margin. Cost of subscriptions revenues increased by $1.3 million, or 1%, for the three months ended March 31, 2026, as compared to the respective prior year period. The increase was primarily driven by a $5.1 million increase in infrastructure support costs, partially offset by a $2.0 million reduction in share-based compensation expense due to lower new grant activity, and $2.0 million decrease in third-party costs to support our solution offering.

Previous 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.

Current wording

Our subscription gross margin remained relatively consistent for the three months ended March 31, 2026, as compared to the respective prior year period.

Previous 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.

Current wording

Other cost of revenues and gross margin. Cost of other revenues decreased by $2.3 million, or (9)%, for the three months ended March 31, 2026 as compared to the respective prior year period, primarily due to reduction in personnel costs. Other revenues gross margin improved primarily due to a reduction in personnel costs.

Previous wording

Research and development expenses decreased by $4.2 million, or (5)%, for the three months ended September 30, 2025, as compared to the respective prior year period. The decrease was primarily driven by a $3.9 million reduction in share-based compensation expense due to disciplined new grant activity.

Current wording

Research and development expenses remained relatively flat for the three months ended March 31, 2026, as compared to the respective prior year period. The decrease was primarily driven by reduction in share-based compensation expense due to lower new grant activity of $3.4 million, partially offset by a $2.1 million increase in headcount-related costs.

Previous 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.

Current wording

We believe that investment in our products, including new AI-led 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

General and administrative expenses decreased by $14.1 million, or (7)%, for the nine months ended September 30, 2025, as compared to the respective prior year period. This decrease was primarily driven by a $19.0 million reduction in share-based compensation resulting from disciplined new grant activity, and a $5.5 million reduction in headcount-related costs. These decreases were partially offset by a $3.8 million increase in business fees and taxes and $2.4 million in overhead costs.

Current wording

General and administrative expenses decreased by $4.2 million, or (7)%, for the three months ended March 31, 2026, as compared to the respective prior year period. This decrease was primarily driven by a $5.2 million reduction in share-based compensation resulting from lower new grant activity, partially offset by a $2.1 million increase in professional fees.

Previous wording

Interest expense. Interest expense decreased by $2.5 million, or (15)%, for the three months ended September 30, 2025, and $2.1 million, or (4)%, for the nine months ended September 30, 2025, as compared to the respective prior year period, primarily driven by reduction in our outstanding Term Loan and 2030 Senior Notes due to principal repayments aggregating to $113.9 million.

Current wording

Interest expense. Interest expense decreased by $1.3 million, or (8)%, for the three months ended March 31, 2026, as compared to the respective prior year period, primarily driven by reduction in our outstanding 2030 Senior Notes due to the repurchase of $50.0 million and $25.0 million of principal in June 2025 and March 2026, respectively.

Previous wording

Other income and expense, net, can fluctuate in the future due to changes in interest rates on our money market funds, interest expense on our Credit Agreement, and fluctuations in currency exchange rates in the current macroeconomic environment.

Current wording

Other (expense) income, net, can fluctuate in the future due to changes in interest rates on our money market funds, interest expense on our Credit Agreement, and fluctuations in currency exchange rates in the current macroeconomic environment.

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 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.

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. As of March 31, 2026, and December 31, 2025, we had cash and cash equivalents of $116.6 million and $132.6 million, respectively. These amounts include restricted cash of $8.4 million and $8.4 million, respectively, held as a bank deposit for issuance of a foreign bank guarantee. As of March 31, 2026, we have access to additional liquidity of $50.0 million available under our delayed draw-down Term Loan and $305.0 million available under our Revolving Credit Facility.

Previous 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.

Current wording

During the three months ended March 31, 2026, we reduced our outstanding debt by $45.6 million by repaying in full the remaining $609.1 million outstanding principal of our 2026 Convertible Notes using $600.0 million of proceeds from borrowings under our Term Loan, and cash on hand equal to $9.1 million. Further, we made payments aggregating to $11.6 million as part of our regular scheduled quarterly principal repayment obligations under the Credit Agreement. As a result, as of March 31, 2026, the total outstanding Term Loan balance was $890.7 million and the Revolving Credit Facility balance was zero. We also repurchased $25.0 million of principal of 2030 Senior Notes. As a result, as of March 31, 2026, the total outstanding principal of the 2030 Senior Notes was $325.0 million. Subsequent to March 31, 2026, we repurchased an additional $75.0 million of principal on our 2030 Senior Notes, using our cash on hand. 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, and the 2030 Senior Notes.

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. 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.

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 three months ended March 31, 2026, we repurchased and settled approximately 2.6 million shares of our Class A Common Stock, by paying an aggregate amount of approximately $81.3 million under the plans previously authorized by our board of directors. The authorization under these programs do not expire. As of March 31, 2026, approximately $417.9 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

The following table sets forth the future minimum principal payments for long-term debt as of September 30, 2025 (in thousands):

Current wording

The following table sets forth the current outstanding debt principal and the future contractual payments as of March 31, 2026 (in thousands):

Previous 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.

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, and our interest payments for both our Term Loan and 2030 Senior 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

Cash provided by operating activities is driven by the timing of customer collections, as well as the amount and timing of disbursements to our vendors, the amount of cash we invest in personnel, sales, marketing, innovation and infrastructure costs to support the anticipated growth of our business, and payments under strategic arrangements.

Current wording

Cash provided by operating activities is driven by the timing of customer collections, as well as the amount and timing of disbursements to our vendors, the amount of cash we invest in personnel, sales, marketing, innovation and infrastructure costs to support the anticipated growth of our business, payments under strategic arrangements, and interest costs.

Previous 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.

Current wording

Net cash provided by operating activities was $164.0 million for the three months ended March 31, 2026. 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 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.

Current wording

Net cash provided by operating activities for the three months ended March 31, 2026 increased by $14.4 million, as compared to the respective prior year period, driven by a $39.7 million improvement in income from operations reflecting higher subscription revenues and lower operating expenses, partially offset by unfavorable working capital movements from the timing of payments and collections.

Previous 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.

Current wording

Net cash used in investing activities was $31.3 million for the three months ended March 31, 2026, driven by $23.4 million in capital expenditures, including personnel-related costs associated with the development of internal-use software, and $7.9 million in cash paid for business combination.

Previous 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.

Current wording

Net cash used in investing activities for the three months ended March 31, 2026 increased by $11.8 million, as compared to the respective prior year period. The change was attributed to $7.9 million of cash used for business combinations, and a $3.9 million increase in capital expenditures.

Previous wording

Our primary financing activities include utilizing cash to repurchase Class A Common Stock under our share repurchase programs, servicing and repaying debt, paying contingent consideration, proceeds from issuance under our stock plans, paying taxes related to these plans, and meeting our existing financing commitments.

Current wording

Our primary financing activities include utilizing cash to repurchase Class A Common Stock under our share repurchase programs, paying dividends, servicing and repaying debt, paying contingent consideration, proceeds from issuance under our stock plans, paying taxes related to these plans, and meeting our existing financing commitments.

Previous 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.

Current wording

Net cash used in financing activities was $147.5 million for the three months ended March 31, 2026. This was primarily driven by the cash settlement of $609.1 million upon the maturity of our 2026 Convertible Notes, partially offset by $600.0 million of Term Loans drawn under our Credit Agreement. Additional outflows included $81.3 million used to repurchase approximately 2.6 million shares of our Class A Common Stock, $26.3 million to repurchase $25.0 million of principal on our 2030 Senior Notes, $11.6 million of principal repayments in respect of our Term Loan, $10.8 million for taxes related to net share settlement of equity awards, and $6.4 million paid for dividends.

Previous wording

We have generally signed new customer contracts with typical subscription terms ranging from one month to five years. At any point in the contract term, there can be amounts allocated to services that we have not yet contractually performed, which constitute our remaining performance obligations. Until we meet our performance obligations, we do not recognize them as revenues in our condensed consolidated financial statements. Our remaining performance obligations exclude contracts with an original expected length of less than one year. Contract revenue as of September 30, 2025 that has not yet been recognized was approximately $2.6 billion.

Current wording

We have generally signed new customer contracts with typical subscription terms ranging from one month to five years. At any point in the contract term, there can be amounts allocated to services that we have not yet contractually performed, which constitute our remaining performance obligations. Until we meet our performance obligations, we do not recognize them as revenues in our condensed consolidated financial statements. Our remaining performance obligations exclude contracts with an original expected length of less than one year. Contract revenue as of March 31, 2026 that has not yet been recognized was approximately $2.7 billion.

Previous wording

Deferred revenue primarily consists of the unearned portion of monthly or annual invoiced fees for our subscriptions, which we recognize as revenue in accordance with our revenue recognition policy. For customers with multi-year contracts, we generally invoice for monthly or only one annual subscription period in advance. Therefore, our deferred revenue balance does not capture the full contract value of multi-year contracts. Accordingly, we believe that deferred revenue is not a reliable indicator of future revenues and we do not utilize deferred revenue as a key management metric internally.

Current wording

Deferred revenue primarily consists of the unearned portion of monthly or annual invoiced fees for our subscriptions, which we recognize as revenue in accordance with our revenue recognition policy. For customers with multi-year contracts, we generally invoice for monthly or only one annual subscription period in advance. As a result, our deferred revenue balance does not capture the full value of multi-year contracts and may not be a complete indicator of future subscription revenues on a standalone basis, therefore, we do not utilize deferred revenue as a key management metric internally.

Previous 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.

Current wording

During the three months ended March 31, 2026 and 2025, 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.