RingCentral, Inc.
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
RNG$72.07-3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001384905-26-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001384905-26-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 96 current paragraphs.
55 unchanged; 27 reworded; 13 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Due to recent profitability, a reversal of our valuation allowance in certain jurisdictions in the foreseeable future is reasonably possible which would result in income tax benefit for the period in which we reduce the valuation allowance.
Current report
Other revenues. Other revenues increased by $1.7 million, or 8%, for the three months ended June 30, 2026, and $0.8 million, or 2%, for the six months ended June 30, 2026, as compared to the respective prior year period. The increase in other revenues was primarily driven by higher professional services and higher device sales as a result of overall growth in business compared to the respective prior year periods.
Current report
Research and development expenses increased by $5.3 million, or 7%, for the three months ended June 30, 2026, as compared to the respective prior year period, primarily driven by a $4.2 million increase in personnel costs.
Current report
Research and development expenses increased by $5.0 million, or 3%, for the six months ended June 30, 2026, as compared to the respective prior year period, primarily driven by a $5.1 million increase in personnel costs and a $2.3 million increase in overhead costs. These increases were partially offset by a $2.3 million reduction in share-based compensation expense due to lower new grant activity.
Current report
Sales and marketing expenses increased by $11.3 million, or 4%, for the three months ended June 30, 2026, as compared to the respective prior year period. The increase was primarily driven by a $8.5 million increase in third-party commissions and a $5.6 million increase in personnel costs, partially offset by a $2.1 million reduction in share-based compensation due to lower new grant activity.
Current report
Sales and marketing expenses increased by $9.3 million, or 2%, for the six months ended June 30, 2026, as compared to the respective prior year period. The increase was primarily driven by a $18.2 million increase in third-party commissions and a $5.2 million increase in personnel costs, partially offset by a $13.7 million reduction in share-based compensation due to lower new grant activity.
Current report
Interest expense. Interest expense increased by $2.2 million, or 13%, and $0.9 million, or 3%, for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year, primarily attributable to interest incurred on the incremental Term Loan.
Current report
Other income (expense). Other income (expense) increased by $15.5 million for the three months ended June 30, 2026, as compared to the respective prior year, primarily due to a $15.0 million net gain recognized in connection with an amended agreement with a partner.
Current report
Net cash provided by operating activities for the six months ended June 30, 2026 increased by $53.4 million, as compared to the respective prior year period, driven by a $66.9 million improvement in net income reflecting strong operating performance and continued efficiency gains, partially offset by $29.6 million reduction in stock-based compensation expense. Cash flow provided by operating activities also increased by $11.8 million, net due to changes in assets and liabilities, including benefits from customer and partner prepayments.
Current report
Since December 31, 2025, there have been no material changes to our critical accounting policies and estimates, other than income taxes described below.
Current report
Income Taxes
Current report
We evaluate our deferred tax assets for realizability considering both positive and negative evidence. In evaluating the need for a valuation allowance, we estimate future taxable income based on management’s business plans. Realization of deferred tax assets is dependent upon the generation of future taxable income, the timing and amount of which are uncertain. This process involves significant management judgment about assumptions that are subject to change from period to period based on changes in tax laws or variances between future projected operating performance and actual results.
Current report
We will continue to evaluate the need for a valuation allowance and may change our conclusion in a future period based on changes in facts. If we conclude that we are more likely than not to utilize some or all of our deferred tax assets, we will reduce some or all of our valuation allowance and our tax provision will decrease in the period in which we make such determination, which will cause a corresponding one-time increase to net income. Changes in the net deferred tax assets, less offsetting valuation allowance, in a period are recorded through the income tax provision and could have a material impact on the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
Removed paragraphs (4)
Previous report
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 report
Sales and marketing expenses decreased by $2.1 million, or (1)%, for the three months ended March 31, 2026, as compared to the respective prior year period, primarily driven by an $11.6 million reduction in share-based compensation due to lower new grant activity, partially offset by an $9.7 million increase from third-party commissions.
Previous report
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 report
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.
Reworded paragraphs (27)
Previous wording
Over the past 26 years, RingCentral, Inc., a global leader in AI-powered customer engagement, 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”), RingCentral AI solutions, Video and Events. RingCentral’s core tenets include: a) Trust: We provide a carrier-grade, cloud based communications platform that businesses can trust with reliability, security, and privacy; b) Innovation: We plan to invest over $250 million in research and development in 2026 to 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 27 years, RingCentral, Inc., a global leader in AI-powered customer engagement, 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”), RingCentral AI solutions, Video and Events. RingCentral’s core tenets include: a) Trust: We provide a carrier-grade, cloud-based communications platform that businesses can trust with reliability, security, and privacy; b) Innovation: We plan to invest over $250 million in research and development in 2026 to 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 business communications, making employee and customer experiences more productive and efficient.
Previous wording
Our cloud-based offerings, including RingEX, RingCentral Contact Center and RingCX are primarily subscription based and made available at different rates varying by the specific functionalities, services, and number of users. Our AI-led products are also being offered on a usage-based pricing model. During the three months ended March 31, 2026, we announced RingCentral AIR Pro™ (AI Representative), a voice-first, omnichannel AI agent platform. As part of the launch, AIR Pro™ includes a no-code environment, called AIR Pro Studio, enabling anyone to design, build, and deploy voice and digital AI agents in minutes using natural language.
Current wording
Our cloud-based offerings, including RingEX, Customer Engagement Bundle, RingCX, and RingCentral Contact Center, are primarily subscription based and made available at different rates varying by the specific functionalities, services, and number of users. Our AI-led products including AI Receptionist (AIR), and AI Conversation Expert (ACE) are offered on either a usage-based or seat-based pricing model.
Previous 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.
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 and six months ended June 30, 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
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.
Current wording
As of June 30, 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 and six months ended June 30, 2026, and 2025, 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 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.
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 to approximately 8.7% of total revenue for the three months ended June 30, 2026, compared to approximately 10.2% for the prior-year period. For the six months ended June 30, 2026, SBC decreased to approximately 8.6% of total revenue, compared to approximately 11.5% for the prior-year period.
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, 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.
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, 2026 was $229.7 million. As such, our ARR at June 30, 2026 was $2.76 billion compared to $2.59 billion at June 30, 2025.
Previous wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
Subscriptions revenues. Subscriptions revenues increased by $33.1 million, or 6%, for the three months ended March 31, 2026, as compared to the respective prior year period. Subscriptions revenues increased primarily due to acquisition of new customers and upsell of our products, including new AI-led products.
Current wording
Subscriptions revenues. Subscriptions revenues increased by $34.9 million, or 6%, for the three months ended June 30, 2026, and $68.0 million, or 6%, for the six months ended June 30, 2026, as compared to the respective prior year period. Subscriptions revenues increased primarily due to acquisition of new customers and upsell of our products, including new AI-led products.
Previous 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.
Current wording
Subscriptions cost of revenues and gross margin. Cost of subscriptions revenues increased by $8.7 million, or 6%, for the three months ended June 30, 2026, as compared to the respective prior year period. The increase was primarily driven by a $10.2 million increase in infrastructure support costs, partially offset by a $1.9 million decrease in third-party costs to support our solution offerings.
Previous wording
Our subscription gross margin remained relatively consistent for the three months ended March 31, 2026, as compared to the respective prior year period.
Current wording
Our subscription gross margin remained consistent for the three and six months ended June 30, 2026, as compared to the respective prior year period.
Previous wording
Other cost of revenues and gross margin. Cost of other revenues decreased by $2.3 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.
Current wording
Cost of other revenues and gross margin. Cost of other revenues decreased and gross margins improved for the three and six months ended June 30, 2026, as compared to the respective prior year period, primarily due to reduction in personnel costs.
Previous 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.
Current wording
General and administrative expenses remained relatively flat for the three months ended June 30, 2026, as compared to the respective prior year period as the increases in professional fees and overhead costs were partially offset by a $3.9 million reduction in share-based compensation due to lower new grant activity.
Previous 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.
Current wording
General and administrative expenses decreased by $3.2 million, or (3)%, for the six months ended June 30, 2026, as compared to the respective prior year period. This decrease was primarily driven by a $9.1 million reduction in share-based compensation resulting from lower new grant activity, partially offset by a $4.0 million increase in professional fees and $2.2 million increase in overhead costs.
Previous wording
Other (expense) income. Other (expense) income decreased by $2.5 million for the three months ended March 31, 2026, as compared to the respective prior year, primarily due to a $1.6 million loss on debt extinguishment recognized in connection with the repurchase of $25.0 million of principal on our 2030 Senior Notes for an aggregate repurchase price of $26.3 million.
Current wording
Other income (expense) increased by $12.9 million for the six months ended June 30, 2026, as compared to the respective prior year, primarily due to a $15.0 million net gain recognized in connection with an amended agreement with a partner, partially offset by a $1.6 million increase in loss on debt extinguishment recognized in connection with the repurchase of $100.0 million principal amount of our 2030 Senior Notes for an aggregate repurchase price of $105.0 million.
Previous 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.
Current wording
Other income (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.
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. 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.
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 June 30, 2026, and December 31, 2025, we had cash and cash equivalents of $111.5 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 June 30, 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
For the three months ended March 31, 2026, net cash provided by operating activities was $164.0 million. During the three months ended March 31, 2026, we generated $140.6 million of free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less capital expenditures (see below for a reconciliation to GAAP). Our capital allocation strategy includes reducing debt, returning capital to shareholders through share repurchases and dividend. For the three months ended March 31, 2026, we repurchased 2.6 million common shares for $81.3 million, repaid $45.6 million of long-term debt, used $7.9 million of cash for business combinations and used $6.4 million to pay first-ever quarterly cash dividend of $0.075 per share of our outstanding capital stock.
Current wording
For the six months ended June 30, 2026, net cash provided by operating activities was $370.5 million. During the six months ended June 30, 2026, we generated $320.8 million of free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less capital expenditures (see below for a reconciliation to GAAP). Our capital allocation strategy includes investing in innovation, reducing debt, returning capital to shareholders through share repurchases and dividends. For the six months ended June 30, 2026, we repurchased 4.8 million common shares for $175.0 million, repaid $132.2 million of long-term debt, used $7.9 million of cash for business combinations and used $12.8 million to pay quarterly cash dividend of $0.075 per share of our outstanding capital stock.
Previous 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.
Current wording
During the six months ended June 30, 2026, we reduced our outstanding debt by $132.2 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 $23.1 million as part of our regular scheduled quarterly principal repayment obligations under the Credit Agreement. As a result, as of June 30, 2026, the total outstanding Term Loan balance was $879.1 million and the Revolving Credit Facility balance was zero. We also repurchased $100.0 million of principal of 2030 Senior Notes. As a result, as of June 30, 2026, the total outstanding principal of the 2030 Senior Notes was $250.0 million. 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 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.
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 six months ended June 30, 2026, we repurchased and settled approximately 4.8 million shares of our Class A Common Stock, by paying an aggregate amount of approximately $175.0 million under the plans previously authorized by our board of directors. The authorization under these programs does not expire. As of June 30, 2026, approximately $325.8 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
In February 2026, our Board of Directors initiated our first-ever quarterly cash dividend of $0.075 per share of our outstanding capital stock, which was paid on March 16, 2026 to stockholders of record as of the close of business on March 9, 2026. In May 2026, the Company declared a cash dividend of $0.075 per share of our outstanding capital stock to be paid on June 11, 2026, to stockholders of record as of the close of business on June 2, 2026.
Current wording
In February 2026, our Board of Directors initiated our first-ever quarterly cash dividend program. In May 2026, the Company declared a quarterly cash dividend of $0.075 per share of our outstanding capital stock, payable on June 11, 2026 to stockholders of record as of the close of business on June 2, 2026. In July 2026, our Board of Directors approved a cash dividend of $0.125 per share, representing, approximately, a 67% increase from the previous quarterly dividend of $0.075 per share. The dividend is payable on August 20, 2026 to stockholders of record as of the close of business on August 6, 2026, on each of the Company's Class A common stock, Class B common stock, and Series A Convertible Preferred Stock (on an as-converted basis). We intend to pay a cash dividend on a quarterly basis going forward, subject to market conditions and approval by our Board.
Previous 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.
Current wording
Net cash provided by operating activities was $370.5 million for the six months ended June 30, 2026. The cash flow from operating activities was driven by timing of cash receipts from customers, partners 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 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.
Current wording
Net cash used in investing activities was $57.6 million for the six months ended June 30, 2026, driven by $49.6 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 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.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 increased by $15.1 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 $7.1 million increase in capital expenditures.
Previous 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.
Current wording
Net cash used in financing activities was $332.9 million for the six months ended June 30, 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 $175.0 million used to repurchase approximately 4.8 million shares of our Class A Common Stock, $105.0 million to repurchase $100.0 million of principal on our 2030 Senior Notes, $23.1 million of principal repayments in respect of our Term Loan, $15.5 million for taxes related to net share settlement of equity awards, and $12.8 million paid for dividends. These outflows were partially offset by $10.0 million in proceeds from issuance of stock in connection with our stock plans.
Previous wording
Net cash used in financing activities decreased by $72.4 million year-over-year. The decrease was primarily driven by lower net debt paydown of $120.7 million compared to the prior year ($45.6 million net principal paydown during the three months ended March 31, 2026 versus $166.3 million paydown in the comparable prior year period), partially offset by $31.3 million higher common stock repurchases, $8.9 million higher payments for taxes on net share settlement of equity awards, and our inaugural $6.4 million quarterly cash dividend.
Current wording
Net cash used in financing activities decreased by $20.9 million, as compared to the respective prior year period. The decrease was primarily driven by lower net debt repayments of $139.1 million, reflecting $132.2 million of net principal repayments during the six months ended June 30, 2026 compared to $271.3 million in the comparable prior-year period. This decrease was partially offset by $93.2 million of higher common stock repurchases, $12.0 million of higher payments for taxes on net share settlement of equity awards, and $12.8 million of cash dividends paid during the period.
Previous 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.
Current wording
During the six months ended June 30, 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.
Previous wording
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, deferred and prepaid sales commission costs, goodwill, useful lives of intangible assets, share-based compensation, capitalization of internally developed software, return reserves, derivative instruments, provision for income taxes, uncertain tax positions, change in the fair value of contingent consideration, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results may differ from these estimates.
Current wording
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, deferred and prepaid sales commission costs, goodwill, useful lives of intangible assets, share-based compensation, capitalization of internally developed software, return reserves, derivative instruments, provision for income taxes, uncertain tax positions, valuation allowance related to deferred tax assets, change in the fair value of contingent consideration, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results may differ from these estimates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Cost of subscriptions revenues increased by $10.0 million, or 3%, for the six months ended June 30, 2026, as compared to the respective prior year period. The increase was primarily driven by a $15.2 million increase in infrastructure support costs, partially offset by a $3.9 million decrease in third-party costs to support our solution offerings.