Proto Labs Inc

Previous wording

Stock-based compensation expense included in the statements of operations data above for the three and six months ended June 30, 2025 and 2024 were as follows:

Current wording

Stock-based compensation expense included in the statements of operations data above for the three and nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

Our revenue increased $9.4 million, or 7.5%, for the three months ended June 30, 2025 compared to the same period in 2024. The growth in revenue was primarily driven by an increase in average order value for our larger customers in the three months ended June 30, 2025 compared to the same period in 2024. By reportable segment, revenue in the United States increased $12.2 million, or 12.4%, for the three months ended June 30, 2025 compared to the same period in 2024. Revenue in Europe decreased $2.7 million, or 10.1%, for the three months ended June 30, 2025 compared to the same period in 2024. International revenue was favorably impacted by $1.3 million during the three months ended June 30, 2025 compared to the same period in 2024 as a result of foreign currency movements, primarily due to the strengthening of the British Pound and Euro relative to the United States Dollar.

Current wording

Our revenue increased $9.7 million, or 7.8%, for the three months ended September 30, 2025 compared to the same period in 2024. The growth in revenue was primarily driven by an increase in average order value for our larger United States customers in the three months ended September 30, 2025 compared to the same period in 2024. By reportable segment, revenue in the United States increased $9.8 million, or 9.8%, for the three months ended September 30, 2025 compared to the same period in 2024. Revenue in Europe decreased less than $0.1 million, or 0.2%, for the three months ended September 30, 2025 compared to the same period in 2024. International revenue was favorably impacted by $1.2 million during the three months ended September 30, 2025 compared to the same period in 2024 as a result of foreign currency movements, primarily due to the strengthening of the British Pound and Euro relative to the United States Dollar.

Previous wording

During the three months ended June 30, 2025, we served 21,775 unique customer contacts, which is adecrease of 3.0% from the same period in 2024. During the three months ended June 30, 2025, our customer contacts served decreased while our revenue grew. This was primarily due to our mix of customers served in the quarter as compared to the same period in 2024 and our strategic focus to earn larger orders from our customers as we strive to be their supplier of choice by serving their custom parts needs through the comprehensive offer of our factory and the Protolabs Network. Our revenue per customer contact grew 10.9% for the three months ended June 30, 2025 compared to the same period in 2024.

Current wording

During the three months ended September 30, 2025, we served 21,252 unique customer contacts, which is adecrease of 5.6% from the same period in 2024. During the three months ended September 30, 2025, our customer contacts served decreased while our revenue grew. This was primarily due to our mix of customers served in the quarter as compared to the same period in 2024 and our strategic focus to earn larger orders from our customers as we strive to be their supplier of choice by serving their custom parts needs through the comprehensive offer of our factory and the Protolabs Network. Our revenue per customer contact grew 14.1% for the three months ended September 30, 2025 compared to the same period in 2024.

Previous wording

By product line, our revenue increase was driven by a 20.9% increase in CNC Machining revenue, a 9.7% increase in Sheet Metal revenue and a 69.7% increase in Other Revenue, partially offset by a 3.4% decrease in Injection Molding revenue and a 0.3% decrease in 3D Printing revenue, in each case for the three months ended June 30, 2025 compared to the same period in 2024.

Current wording

By product line, our revenue increase was driven by a 18.2% increase in CNC Machining revenue, a 2.0% increase in Injection Molding revenue and a 13.9% increase in Sheet Metal revenue, partially offset by a 6.3% decrease in 3D Printing revenue and a 25.6% decrease in Other Revenue, in each case for the three months ended September 30, 2025 compared to the same period in 2024.

Previous wording

Cost of Revenue. Cost of revenue increased $6.2 million, or 9.0%, for the three months ended June 30, 2025 compared to the same period in 2024, while revenue increased 7.5% for the three months ended June 30, 2025 compared to the same period in 2024. The increase in the cost of revenue of $6.2 million was primarily driven by higher revenue volumes resulting in increases of $4.0 million in raw material and production and fulfillment related costs, and $2.4 million in personnel and related costs, primarily due to overtime, medical related costs and incentive compensation, during the three months ended June 30, 2025 compared to the same period in 2024, partially offset by decreases in equipment and facility-related costs of $0.2 million.

Current wording

Cost of Revenue. Cost of revenue increased $5.7 million, or 8.3%, for the three months ended September 30, 2025 compared to the same period in 2024, while revenue increased 7.8% for the three months ended September 30, 2025 compared to the same period in 2024. The increase in the cost of revenue of $5.7 million was primarily driven by higher revenue volumes resulting in increases of $4.4 million in raw material and production and fulfillment related costs, and $2.0 million in personnel and related costs, primarily due to incentive compensation related to our annual short-term incentive compensation plan, contract labor and overtime, during the three months ended September 30, 2025 compared to the same period in 2024, partially offset by decreases in equipment and facility-related costs of $0.7 million.

Previous wording

Gross Profit and Gross Margin. Gross profit increased $3.2 million, or 5.7%, for the three months ended June 30, 2025 compared to the same period in 2024. Gross margin decreased from 45.0% in the three months ended June 30, 2024 to 44.3% in the three months ended June 30, 2025.

Current wording

Gross Profit and Gross Margin. Gross profit increased $4.1 million, or 7.1%, for the three months ended September 30, 2025 compared to the same period in 2024. Gross margin decreased from 45.6% in the three months ended September 30, 2024 to 45.3% in the three months ended September 30, 2025.

Previous wording

Marketing and Sales. Our marketing and sales expenses increased $1.4 million during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to increases in personnel and related costs of $1.4 million, primarily due to merit increases and incentive compensation related to commissions.

Current wording

Marketing and Sales. Our marketing and sales expenses increased $2.0 million during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to increases in personnel and related costs of $1.6 million, primarily due to incentive compensation related to our annual short-term incentive compensation plan and commissions and merit increases, and $0.4 million in marketing program costs.

Previous wording

Research and Development. Our research and development expenses increased $0.5 million, or 4.8%, during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to increases in personnel and related costs of $0.8 million, primarily due to incentive compensation and contract labor, partially offset by decreases of $0.2 million in operating costs and $0.1 million in professional services.

Current wording

Research and Development. Our research and development expenses increased $0.9 million, or 9.5%, during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to increases in personnel and related costs of $1.2 million, primarily due to incentive compensation related to our annual short-term incentive compensation plan, partially offset by decreases of $0.2 million in operating costs and $0.1 million in professional services.

Previous wording

General and Administrative. Our general and administrative expenses increased $2.2 million, or 13.0%, during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to increases of $1.8 million in personnel and related costs, primarily related to the previously disclosed CEO transition that occurred during the three months ended June 30, 2025, $0.2 million in administrative costs and $0.2 million in professional services.

Current wording

General and Administrative. Our general and administrative expenses increased $0.9 million, or 5.6%, during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to increases of $0.8 million in personnel and related costs, primarily related to incentive compensation related to our annual short-term incentive compensation plan, $0.4 million in administrative costs and $0.4 million in professional services, partially offset by decreases of $0.7 million in stock-based compensation.

Previous wording

Costs related to exit and disposal. Our decision to exit and close certain operations in Germany resulted in a $0.2 million expense related to the write-down of fixed assets and $0.1 million in personnel and related cost benefits during the six months ended June 30, 2025. These items are the result of changes from the estimated amounts accrued in 2024 and the timing of employee separation payments. We had no costs related to exit and disposal activities during the six months ended June 30, 2024.

Current wording

Costs related to exit and disposal. Our decision to exit and close certain operations in Germany resulted in less than a $0.1 million expense primarily related to professional services during the three months ended September 30, 2025. We had no costs related to exit and disposal activities during the three months ended September 30, 2024.

Previous wording

Other income, net. We recognized other income, net of $1.7 million for the three months ended June 30, 2025, an increase of $0.3 million compared to other income, net of $1.4 million for the three months ended June 30, 2024. Other income, net for the three months ended June 30, 2025 primarily consisted of $1.1 million in interest income on investments, $0.5 million of foreign currency gains and $0.1 million of other income. Other income, net for the three months ended June 30, 2024 primarily consisted of $1.5 million in interest income on investments and other income, partially offset by $0.1 million of foreign currency losses.

Current wording

Other income, net. We recognized other income, net of $1.4 million for the three months ended September 30, 2025, an increase of $0.2 million compared to other income, net of $1.3 million for the three months ended September 30, 2024. Other income, net for the three months ended September 30, 2025 primarily consisted of $1.2 million in interest income on investments and $0.2 million of other income. Other income, net for the three months ended September 30, 2024 primarily consisted of $1.3 million in interest income on investments and other income.

Previous wording

Provision for Income Taxes. Our effective tax rate of 33.7% for the three months ended June 30, 2025 decreased 4.6% compared to 38.3% for the same period in 2024. The decrease in the effective tax rate was primarily due to a decrease in tax expense from the vesting of restricted stock units and the exercise of stock options. Our income tax provision of $2.2 million for the three months ended June 30, 2025 decreased $0.6 million as compared to our income tax provision of $2.8 million for the same period in 2024.

Current wording

Provision for Income Taxes. Our effective tax rate of 29.6% for the three months ended September 30, 2025 increased 2.5% compared to 27.1% for the same period in 2024. The increase in the effective tax rate was primarily due to an increase in losses in jurisdictions that are not eligible for tax benefits due to valuation allowances. Our income tax provision of $3.0 million for the three months ended September 30, 2025 increased $0.3 million as compared to our income tax provision of $2.7 million for the same period in 2024.

Previous wording

Revenue by reportable segment and the related changes for the six months ended June 30, 2025 and 2024 were as follows:

Current wording

Revenue by reportable segment and the related changes for the nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

Our revenue increased $7.7 million, or 3.1%, for the six months ended June 30, 2025 compared to the same period in 2024. By reportable segment, revenue in the United States increased $11.0 million, or 5.5%, for the six months ended June 30, 2025 compared to the same period in 2024. Revenue in Europe decreased $3.2 million, or 6.0% for the six months ended June 30, 2025 compared to the same period in 2024. International revenue was favorable impacted by $0.9 million during six months ended June 30, 2025 compared to the same period in 2024 as a result of foreign currency movements, primarily the strengthening of the British Pound and Euro relative to the United States Dollar.

Current wording

Our revenue increased $17.5 million, or 4.6%, for the nine months ended September 30, 2025 compared to the same period in 2024. By reportable segment, revenue in the United States increased $20.7 million, or 6.9%, for the nine months ended September 30, 2025 compared to the same period in 2024. Revenue in Europe decreased $3.3 million, or 4.1% for the nine months ended September 30, 2025 compared to the same period in 2024. International revenue was favorably impacted by $2.1 million during nine months ended September 30, 2025 compared to the same period in 2024 as a result of foreign currency movements, primarily the strengthening of the British Pound and Euro relative to the United States Dollar.

Previous wording

During the six months ended June 30, 2025, we served 33,136 unique product developers and engineers, a decrease of 3.5% from the same period in 2024. During the six months ended June 30, 2025, our customer contacts served decreased while our revenue grew. This was primarily due to our mix of customers served during the six months ended June 30, 2025 as compared to the same period in 2024 and our strategic focus to earn larger orders from our customers as we strive to be their supplier of choice by serving their custom parts needs through the comprehensive offer of our factory and the Protolabs Network. Our revenue per customer contact grew 6.8% for the six months ended June 30, 2025 compared to the same period in 2024.

Current wording

During the nine months ended September 30, 2025, we served 41,873 unique product developers and engineers, a decrease of 4.1% from the same period in 2024. During the nine months ended September 30, 2025, our customer contacts served decreased while our revenue grew. This was primarily due to our mix of customers served during the nine months ended September 30, 2025 as compared to the same period in 2024 and our strategic focus to earn larger orders from our customers as we strive to be their supplier of choice by serving their custom parts needs through the comprehensive offer of our factory and the Protolabs Network. Our revenue per customer contact grew 9.1% for the nine months ended September 30, 2025 compared to the same period in 2024.

Previous wording

By product line, our revenue increase was driven by a 13.5% increase in CNC Machining revenue, a 13.9% increase in Sheet Metal revenue and a 55.8% increase in Other Revenue, partially offset by a 5.5% decrease in Injection Molding revenue and a 3.4% decrease in 3D Printing revenue in each case for the six months ended June 30, 2025 compared to the same period in 2024.

Current wording

By product line, our revenue increase was driven by a 15.1% increase in CNC Machining revenue, a 13.9% increase in Sheet Metal revenue and a 14.2% increase in Other Revenue, partially offset by a 3.1% decrease in Injection Molding revenue and a 4.4% decrease in 3D Printing revenue in each case for the nine months ended September 30, 2025 compared to the same period in 2024.

Previous wording

Cost of Revenue. Cost of revenue increased $6.3 million, or 4.5%, for the six months ended June 30, 2025 compared to the same period in 2024, which was higher than the rate of revenue increase of 3.1% for the six months ended June 30, 2025 compared to the same period in 2024. The increase in cost of revenue of $6.3 million was primarily driven by higher revenue volumes resulting in increases of $4.1 million in raw material and production and fulfillment related costs and $2.7 million in personnel and related costs, primarily due to overtime, medical related costs and incentive compensation, during the six months ended June 30, 2025 compared to the same period in 2024, partially offset by decreases in equipment and facility-related costs of $0.5 million.

Current wording

Cost of Revenue. Cost of revenue increased $12.0 million, or 5.8%, for the nine months ended September 30, 2025 compared to the same period in 2024, which was higher than the rate of revenue increase of 4.6% for the nine months ended September 30, 2025 compared to the same period in 2024. The increase in cost of revenue of $12.0 million was primarily driven by higher revenue volumes resulting in increases of $8.4 million in raw material and production and fulfillment related costs and $4.7 million in personnel and related costs, primarily due to incentive compensation related to our annual short-term incentive compensation plan, overtime, and medical related costs during the nine months ended September 30, 2025 compared to the same period in 2024, partially offset by decreases in equipment and facility-related costs of $1.1 million.

Previous wording

Gross Profit and Gross Margin. Gross profit increased from $114.0 million in the six months ended June 30, 2024 to $115.5 million in the six months ended June 30, 2025. Gross margin decreased from 45.0% in the six months ended June 30, 2024 to 44.2% in the six months ended June 30, 2025.

Current wording

Gross Profit and Gross Margin. Gross profit increased $5.5 million, or 3.2%, for the nine months ended September 30, 2025 compared to the same period in 2024. Gross margin decreased from 45.2% in the nine months ended September 30, 2024 to 44.6% in the nine months ended September 30, 2025.

Previous wording

Marketing and Sales. Our Marketing and sales expenses increased $2.0 million, or 4.4%, during the six months ended June 30, 2025 compared to the same period in 2024. The increase was driven by increases in personnel and related costs of $1.8 million, primarily due to merit increases and incentive compensation related to commissions, and marketing program cost increases of $0.2 million during the six months ended June 30, 2025 when compared to the same period in 2024.

Current wording

Marketing and Sales. Our Marketing and sales expenses increased $4.0 million, or 5.8%, during the nine months ended September 30, 2025 compared to the same period in 2024. The increase was driven by increases in personnel and related costs of $3.4 million, primarily due to incentive compensation related to commissions and our annual short-term incentive compensation plan and merit increases, and marketing program cost increases of $0.6 million during the nine months ended September 30, 2025 when compared to the same period in 2024.

Previous wording

Research and Development. Our research and development expenses during the six months ended June 30, 2025 compared to the same period in 2024 were flat primarily due to personnel and related cost increases of $0.4 million, primarily related to incentive compensation, being offset by decreases of $0.2 million in operating costs and $0.2 million in professional services.

Current wording

Research and Development. Our research and development expenses increased $0.9 million, or 2.8%, during the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to personnel and related cost increases of $1.6 million, primarily related to incentive compensation related to our annual short-term incentive compensation plan, partially offset by decreases of $0.4 million in operating costs and $0.3 million in professional services.

Previous wording

General and Administrative. Our general and administrative expenses increased $2.7 million, or 8.2%, during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to increases of $1.5 million in personnel and related costs, primarily related to the previously disclosed CEO transition that occurred during the six months ended June 30, 2025, $1.2 million in administrative costs and $0.2 million in professional services, partially offset by decreases of $0.1 million in stock-based compensation and $0.1 million intangible amortization costs.

Current wording

General and Administrative. Our general and administrative expenses increased $3.6 million, or 7.3%, during the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to increases of $2.3 million in personnel and related costs, primarily related to the previously disclosed CEO transition that occurred during the nine months ended September 30, 2025 and incentive compensation related to our annual short-term incentive compensation plan, $1.6 million in administrative costs and $0.5 million in professional services, partially offset by decreases of $0.8 million in stock-based compensation.

Previous wording

Costs related to exit and disposal. Our decision to exit and close certain operations in Germany resulted in a $0.2 million expense related to the write-down of fixed assets and $0.1 million in personnel and related cost benefits during the three months ended June 30, 2025. These items are the result of changes from the estimated amounts accrued in 2024 and the timing of employee separation payments. We had no costs related to exit and disposal activities during the three months ended June 30, 2024.

Current wording

Costs related to exit and disposal. Our decision to exit and close certain operations in Germany resulted in a $0.2 million expense related to the write-down of fixed assets and $0.1 million in professional services, partially offset by $0.1 million in personnel and related cost benefits during the nine months ended September 30, 2025. These items are the result of changes from the estimated amounts accrued in 2024 and the timing of employee separation payments. We had no costs related to exit and disposal activities during the nine months ended September 30, 2024.

Previous wording

Other loss, net. We recognized other income, net of $3.2 million for the six months ended June 30, 2025, an increase of $0.9 million compared to other income, net of $2.3 million for the six months ended June 30, 2024. Other income, net for the six months ended June 30, 2025 primarily consisted of $2.3 million in interest income on investments, $0.5 million of foreign currency gains and $0.4 million of other income. Other income, net for the six months ended June 30, 2024 primarily consisted of $2.6 million in interest income on investments and other income, partially offset by a $0.3 million of foreign currency losses.

Current wording

Other loss, net. We recognized other income, net of $4.6 million for the nine months ended September 30, 2025, an increase of $1.1 million compared to other income, net of $3.5 million for the nine months ended September 30, 2024. Other income, net for the nine months ended September 30, 2025 primarily consisted of $3.5 million in interest income on investments, $0.6 million of other income and $0.5 million of foreign currency gains. Other income, net for the nine months ended September 30, 2024 primarily consisted of $3.9 million in interest income on investments and other income, partially offset by a $0.4 million of foreign currency losses.

Previous wording

Provision for Income Taxes. Our effective tax rate of 36.6% for the six months ended June 30, 2025 increased 1.6% compared to 35.0% for the same period in 2024. The increase in the effective tax rate is primarily due to an increase in losses in jurisdictions that are not eligible for tax benefits due to valuation allowances. Our income tax provision of $4.6 million for the six months ended June 30, 2025 decreased $0.6 million compared to our income tax provision of $5.3 million for the six months ended June 30, 2024.

Current wording

Provision for Income Taxes. Our effective tax rate of 33.5% for the nine months ended September 30, 2025 increased 1.6% compared to 31.9% for the same period in 2024. The increase in the effective tax rate is primarily due to an increase in losses in jurisdictions that are not eligible for tax benefits due to valuation allowances. Our income tax provision of $7.7 million for the nine months ended September 30, 2025 decreased $0.3 million compared to our income tax provision of $8.0 million for the nine months ended September 30, 2024.

Previous wording

The following table summarizes our cash flows during the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our cash flows during the nine months ended September 30, 2025 and 2024:

Previous wording

Historically, we have primarily financed our operations and capital expenditures through cash flow from operations. We had cash and cash equivalents of $90.4 million as of June 30, 2025, an increase of $1.3 million from December 31, 2024. The increase in our cash was primarily due to cash provided by operating activities of $29.0 million and proceeds from call redemptions and maturities of marketable securities of $10.2 million, partially offset by $24.0 million in repurchases of common stock, $11.1 million for purchases of marketable securities and $2.7 million for purchases of property, equipment and other capital assets.

Current wording

Historically, we have primarily financed our operations and capital expenditures through cash flow from operations. We had cash and cash equivalents of $104.4 million as of September 30, 2025, an increase of $15.4 million from December 31, 2024. The increase in our cash was primarily due to cash provided by operating activities of $58.1 million, proceeds from call redemptions and maturities of marketable securities of $11.7 million, issuances of common stock from equity plans of $4.2 million and from the sale of equipment of $0.8 million, partially offset by $36.7 million in repurchases of common stock, $13.6 million for purchases of marketable securities, $6.8 million for purchases of property, equipment and other capital assets and $3.1 million of shares repurchased for tax obligations.

Previous wording

Cash flows from operating activities were $29.0 million during the six months ended June 30, 2025 and primarily consisted of net income of $8.0 million, adjusted for certain non-cash items, including depreciation and amortization of $17.3 million, stock-based compensation expense of $8.3 million and an impairments on a leased facility and fixed assets of $0.4 million, which were partially offset by deferred taxes of $4.0 million and changes in operating assets and liabilities and other items totaling $1.0 million. Cash flows from operating activities were $35.8 million during the six months ended June 30, 2024 and primarily consisted of net income of $9.8 million, adjusted for certain non-cash items, including depreciation and amortization of $18.1 million, stock-based compensation expense of $8.5 million and changes in operating assets and liabilities and other items totaling $3.5 million, which were partially offset by deferred taxes of $4.1 million.

Current wording

Cash flows from operating activities were $58.1 million during the nine months ended September 30, 2025 and primarily consisted of net income of $15.2 million, adjusted for certain non-cash items, including depreciation and amortization of $25.7 million, stock-based compensation expense of $11.9 million, deferred taxes of $2.4 million, changes in operating assets and liabilities and other items totaling $2.4 million, and an impairments on a leased facility and fixed assets of $0.4 million. Cash flows from operating activities were $60.5 million during the nine months ended September 30, 2024 and primarily consisted of net income of $17.0 million, adjusted for certain non-cash items, including depreciation and amortization of $27.0 million, stock-based compensation expense of $12.7 million and changes in operating assets and liabilities and other items totaling $9.6 million and a non-cash impairment of equipment of equipment of $0.3 million, which were partially offset by deferred taxes of $6.1 million.

Previous wording

Cash flows from operating activities decreased $6.8 million during the six months ended June 30, 2025 compared to the same period in 2024, primarily due to changes in operating assets and liabilities and other items totaling $4.5 million, decreases in net income of $1.8 million, decreases in depreciation and amortization of $0.8 million, decreases in stock-based compensation of $0.3 million, which were partially offset by increases in other property and equipment adjustments of $0.4 million and deferred taxes of $0.2 million.

Current wording

Cash flows from operating activities decreased $2.5 million during the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to changes in operating assets and liabilities and other items totaling $7.3 million, decreases in net income of $1.8 million, decreases in depreciation and amortization of $1.3 million, and decreases in stock-based compensation of $0.8 million, which were partially offset by increases in deferred taxes of $8.5 million and other property and equipment adjustments of $0.2 million.

Previous wording

Cash used in investing activities was $3.6 million during the six months ended June 30, 2025, consisting of $2.7 million for net purchases of property, equipment and other capital assets and $0.8 million of purchases of marketable securities, net of proceeds from call redemptions and maturities.

Current wording

Cash used in investing activities was $7.8 million during the nine months ended September 30, 2025, consisting of $6.0 million for net purchases of property, equipment and other capital assets and $1.8 million of purchases of marketable securities, net of proceeds from call redemptions and maturities.

Previous wording

Cash provided by investing activities was $3.7 million during the six months ended June 30, 2024, consisting of $10.4 million in proceeds from call redemptions and maturities of marketable securities, which were partially offset by $6.7 million for net purchases of property, equipment and other capital assets.

Current wording

Cash used in investing activities was $10.7 million during the nine months ended September 30, 2024, consisting of $8.3 million for net purchases of property, equipment and other capital assets and $2.4 million of purchases of marketable securities, net of proceeds from call redemptions and maturities.

Previous wording

Cash used in financing activities was $25.2 million during the six months ended June 30, 2025, consisting of $24.0 million in repurchases of common stock, $3.1 million in purchases of shares withheld for tax obligations associated with equity transactions and $0.2 million for repayments of finance lease obligations, which were partially offset by $2.1 million in proceeds related to equity plans.

Current wording

Cash used in financing activities was $35.9 million during the nine months ended September 30, 2025, consisting of $36.7 million in repurchases of common stock, $3.1 million in purchases of shares withheld for tax obligations associated with equity transactions and $0.2 million for repayments of finance lease obligations, which were partially offset by $4.2 million in proceeds related to equity plans.

Previous wording

Cash used in financing activities was $26.9 million during the six months ended June 30, 2024, consisting of $26.9 million in repurchases of common stock, $1.9 million in purchases of shares withheld for tax obligations associated with equity transactions and $0.2 million for repayments of finance lease obligations, which were partially offset by $2.1 million in proceeds from issuance of common stock from equity plans.

Current wording

Cash used in financing activities was $46.0 million during the nine months ended September 30, 2024, consisting of $46.0 million in repurchases of common stock, $1.9 million in purchases of shares withheld for tax obligations associated with equity transactions and $0.2 million for repayments of finance lease obligations, which were partially offset by $2.1 million in proceeds from issuance of common stock from equity plans.

Previous wording

We have adopted various accounting policies to prepare the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of these financial statements requires us to make estimates, judgements and assumptions. Our significant accounting policies and estimates are disclosed in Note 2 to the Consolidated Financial Statements included Part II, Item 8 in our Annual Report on Form 10-K for the year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025.

Current wording

We have adopted various accounting policies to prepare the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of these financial statements requires us to make estimates, judgements and assumptions. Our significant accounting policies and estimates are disclosed in Note 2 to the Consolidated Financial Statements included Part II, Item 8 in our Annual Report on Form 10-K for the year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2025.

Previous wording

For information on recent accounting pronouncements, see Note 2 to the Consolidated Financial Statements appearing in Part I, Item 1 in this Quarterly Report on Form 10-Q.

Current wording

For information on recent accounting pronouncements, see Note 2 to the Consolidated Financial Statements appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.