DROPBOX, INC.

Previous wording

By solving these universal problems, we’ve become invaluable to our users. The popularity of our platform allows us to scale efficiently. We’ve built a thriving global business with 18.19 million paying users.

Current wording

By solving these universal problems, we’ve become invaluable to our users. The popularity of our platform allows us to scale efficiently. We’ve built a thriving global business with 18.20 million paying users.

Previous wording

We generate revenue from individuals, families, teams, and organizations by selling subscriptions to our platform, which serve the varying needs of our diverse customer base. Our subscriptions include individual licenses through our Plus, Simple, Professional or Essentials plans, or multiple licenses through our Family plan or our Standard, Advanced, Business, Business Plus and Enterprise team plans. We also offer Dash, our AI-powered universal search tool, which we offer to teams at an additional cost. Each team or family represents a separately billed deployment that is managed through a single administrative dashboard. Teams must have a minimum of three users, but can also have more than tens of thousands of users. Families can have up to six users. Customers can choose between an annual or monthly plan, with a small number of large organizations on multi-year plans. A majority of our customers opt for our annual plans, which are offered at a discount compared to our monthly plans, although we have seen and may continue to see an increase in customers opting for our monthly plans. We typically bill our customers at the beginning of their respective terms and recognize revenue ratably over the term of the subscription period. International customers can pay in U.S. dollars or a select number of foreign currencies.

Current wording

We generate revenue from individuals, families, teams, and organizations by selling subscriptions to our platform, which serve the varying needs of our diverse customer base. Our subscriptions include individual licenses through our Plus, Simple, Professional or Essentials plans, or multiple licenses through our Family plan or our Standard, Advanced, Business, Business Plus and Enterprise team plans. We also offer Dash, our AI-powered universal search tool, which we offer to teams at an additional cost. Each team or family represents a separately billed deployment that is managed through a single administrative dashboard. Teams can range from a single user to tens of thousands of users. Families can have up to six users. Customers can choose between an annual or monthly plan, with a small number of large organizations on multi-year plans. A majority of our customers opt for our annual plans, which are offered at a discount compared to our monthly plans, although we have seen and may continue to see an increase in customers opting for our monthly plans. We typically bill our customers at the beginning of their respective terms and recognize revenue ratably over the term of the subscription period. International customers can pay in U.S. dollars or a select number of foreign currencies.

Previous wording

We offer FormSwift, our cloud-based service that gives individuals and businesses a simple solution to create, complete, edit, and save critical business forms and agreements. We offer only monthly subscriptions based on their individual or business needs. We typically bill FormSwift customers at the beginning of their respective terms and recognize revenue ratably over the subscription period. FormSwift primarily sells within the United States, and the majority of its sales are in U.S. dollars. We made the strategic decision to significantly reduce investments in FormSwift at the beginning of 2025 and plan to wind down operations by the end of 2026, which has negatively impacted our annual recurring revenue ("ARR"), revenue and paying users.

Current wording

At the beginning of 2025, we made the strategic decision to significantly reduce investments in FormSwift, our cloud-based service for business forms and agreements, and as of the end of the third quarter of 2026, we completed the wind down of operations, which negatively impacted our annual recurring revenue ("ARR"), revenue and paying users. Prior to the wind down, we offered monthly subscriptions to FormSwift and we typically billed FormSwift customers at the beginning of their respective terms and recognized revenue ratably over the subscription period.

Previous wording

Our ARR fluctuates and may decrease in some periods as compared to prior periods. In the near term, ARR has experienced and may continue to experience a slight decline, primarily reflecting our strategic decision to significantly reduce investments in FormSwift at the beginning of 2025 as well as our plan to wind down operations by the end of 2026.

Current wording

Our ARR fluctuates and may decrease in some periods as compared to prior periods. In the near term, ARR has experienced and may continue to experience a slight decline, primarily reflecting our strategic decision to significantly reduce investments in FormSwift at the beginning of 2025 as well as the winding down of operations which was completed as of the end of the third quarter of 2026.

Previous wording

Total ARR increased for the period ended June 30, 2026, compared to the periods ended December 31, 2025 and June 30, 2025, primarily driven by a favorable impact of changes in foreign exchange rates across multiple currencies relative to the U.S. dollar, improved retention from Teams plans and growth in Individual plans, offset by our strategic decision to significantly reduce our investment in FormSwift.

Current wording

Total ARR increased for the period ended September 30, 2026, compared to the periods ended December 31, 2025 and September 30, 2025, primarily driven by a favorable impact of changes in foreign exchange rates across multiple currencies relative to the U.S. dollar and growth in Teams plans, offset by the impact of the FormSwift wind down.

Previous wording

For DocSend, FormSwift and Reclaim, we define paying users as the number of users who have active paid licenses for access to our platform as of the end of the period.

Current wording

For DocSend and Reclaim, we define paying users as the number of users who have active paid licenses for access to our platform as of the end of the period.

Previous wording

The number of paying users as of June 30, 2026 increased as compared to December 31, 2025 and June 30, 2025, largely due to growth in our Simple Plan, partially offset by reduced investment in FormSwift and continued softness in our Teams plans, for which we are starting to see signs of improvement in retention. We expect that the total number of paying users will continue to fluctuate from period to period and may decrease in some periods as compared to prior periods.

Current wording

The number of paying users as of September 30, 2026 increased as compared to December 31, 2025 and September 30, 2025, largely due to growth in our Simple plan and slight growth in Teams plans, offset by the completion of the wind down of FormSwift as of the end of the third quarter of 2026. We expect that the total number of paying users will continue to fluctuate from period to period and may decrease in some periods as compared to prior periods.

Previous wording

We define average revenue per paying user, or ARPU, as our revenue for the period presented divided by the average paying users during the same period. For interim periods, we use annualized revenue, which is calculated by dividing the revenue for the particular period by the number of days in that period and multiplying this value by 365 days. Average paying users are calculated based on adding the number of paying users as of the beginning of the period to the number of paying users as of the end of the period, and then dividing by two.

Current wording

We define average revenue per paying user, or ARPU, as our subscription revenue for the period presented divided by the average paying users during the same period. For interim periods, we use annualized revenue, which is calculated by dividing the revenue for the particular period by the number of days in that period and multiplying this value by 365 days. Average paying users are calculated based on adding the number of paying users as of the beginning of the period to the number of paying users as of the end of the period, and then dividing by two.

Previous wording

The average revenue per paying user increased for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, as a result of the favorable impact of changes in foreign exchange rates across multiple currencies relative to the U.S. dollar and a shift to monthly subscription plans, offset by an increased mix of sales toward lower priced plans, such as Simple.

Current wording

The average revenue per paying user decreased for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, as a result of an increased mix of sales toward lower priced plans, such as Simple. The average revenue per paying user increased for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, as a result of the favorable impact of changes in foreign exchange rates across multiple currencies relative to the U.S. dollar and a shift to monthly subscription plans, offset by an increased mix of sales toward lower priced plans, such as Simple.

Previous wording

The below table sets forth our ARPU for the three and six months ended June 30, 2026 and 2025.

Current wording

The below table sets forth our ARPU for the three and nine months ended September 30, 2026 and 2025.

Previous wording

We expect our FCF to fluctuate in the near term due to ongoing operating efficiency initiatives and variability in interest payments now that our term loan facility is fully drawn, as well as fluctuations in market interest rates. We expect capital expenditures will generally remain consistent in future periods as we continue to invest in our internal infrastructure, network and security, except for a one-time incremental investment related to the build-out of our new San Francisco, California headquarters, which we expect to complete this year. The timing of our operating expenses as described below, may cause FCF to vary from period to period as a percentage of revenue.

Current wording

We expect our FCF to fluctuate in the near term due to ongoing operating efficiency initiatives, partly due to our 2026 reductions in workforce, and variability in interest payments now that our term loan facility is fully drawn, as well as fluctuations in market interest rates. We expect capital expenditures will generally remain consistent in future periods as we continue to invest in our internal infrastructure, network and security, except for a one-time incremental investment related to the build-out of our new San Francisco, California headquarters, which we expect to complete this year. The timing of our operating expenses as described below, may cause FCF to vary from period to period as a percentage of revenue.

Previous wording

Cost of revenue. Our cost of revenue consists primarily of expenses associated with the storage, delivery, and distribution of our platform for both paying users and free users. These costs, which we refer to as infrastructure costs, include depreciation of our servers located in co-location facilities that we lease and operate, rent and facilities expense for those datacenters, network and bandwidth costs, support and maintenance costs for our infrastructure equipment, and payments to third-party datacenter service providers. Cost of revenue also includes salaries, bonuses, employer payroll taxes and benefits, travel-related expenses, and stock-based compensation, which we refer to as employee-related costs, for employees whose primary responsibilities relate to supporting our infrastructure and delivering user support. Other non-employee costs included in cost of revenue include credit card fees related to processing customer transactions, and allocated overhead, such as facilities, including rent, utilities, depreciation on leasehold improvements and other equipment shared by all departments, and shared information technology costs. In addition, cost of revenue includes amortization of developed technologies, professional fees related to user support initiatives, property taxes related to datacenter equipment, and copyright levies or similar fees imposed by collection agencies in European and other jurisdictions.

Current wording

Cost of revenue. Our cost of revenue consists primarily of expenses associated with the storage, delivery, and distribution of our platform for both paying users and free users. These costs, which we refer to as infrastructure costs, include depreciation of our servers located in co-location facilities that we lease and operate, rent and facilities expense for those datacenters, network and bandwidth costs, support and maintenance costs for our infrastructure equipment, and payments to third-party datacenter service providers. Cost of revenue also includes salaries, bonuses, employer payroll taxes and benefits, travel-related expenses, expenses related to our second and third quarter 2026 reductions in workforce such as severance, benefits, and other related items, and stock-based compensation, which we refer to as employee-related costs, for employees whose primary responsibilities relate to supporting our infrastructure and delivering user support. Other non-employee costs included in cost of revenue include credit card fees related to processing customer transactions, and allocated overhead, such as facilities, including rent, utilities, depreciation on leasehold improvements and other equipment shared by all departments, and shared information technology costs. In addition, cost of revenue includes amortization of developed technologies, professional fees related to user support initiatives, property taxes related to datacenter equipment, and copyright levies or similar fees imposed by collection agencies in European and other jurisdictions.

Previous wording

We plan to continue increasing the capacity and enhancing the capability and reliability of our infrastructure to support user growth and increased use of our platform. We expect that cost of revenue will increase in absolute dollars in both the near term and long term.

Current wording

We plan to continue increasing the capacity and enhancing the capability and reliability of our infrastructure to support user growth and increased use of our platform. We expect that cost of revenue will increase in absolute dollars in future periods.

Previous wording

Gross margin. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin may fluctuate from period to period based on the timing of capital expenditures and the related depreciation expense, or other increases in our infrastructure costs, as well as revenue fluctuations. We expect gross margin to remain relatively constant in both the near term and long term.

Current wording

Gross margin. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin may fluctuate from period to period based on the timing of capital expenditures and the related depreciation expense, or other increases in our infrastructure costs, as well as revenue fluctuations. We expect gross margin to remain relatively constant in future periods.

Previous wording

Research and development. Our research and development expenses consist primarily of employee-related costs for our engineering, product, and design teams, expenses related to our recent reduction in workforce such as severance, benefits and other related items, compensation expenses related to key personnel from acquisitions and allocated overhead. These groups are responsible for the design, development, testing, delivery of new technologies and features, and support of our self-serve platform. We continue to focus our product development efforts on adding new features and enhancing the functionality and ease of use of our offerings. Additionally, research and development expenses include internal development-related third-party hosting fees. We have expensed almost all of our research and development costs as they were incurred.

Current wording

Research and development. Our research and development expenses consist primarily of employee-related costs for our engineering, product, and design teams, expenses related to our second and third quarter 2026 reductions in workforce such as severance, benefits and other related items, compensation expenses related to key personnel from acquisitions and allocated overhead. These groups are responsible for the design, development, testing, delivery of new technologies and features, and support of our self-serve platform. We continue to focus our product development efforts on adding new features and enhancing the functionality and ease of use of our offerings. Additionally, research and development expenses include internal development-related third-party hosting fees. We have expensed almost all of our research and development costs as they were incurred.

Previous wording

We expect that research and development costs will decrease in absolute dollars and as a percentage of revenue in both the near term and long term as we continue to drive operating efficiencies across the business, partially offset by ongoing investment in key growth initiatives.

Current wording

We expect that research and development costs will decrease in absolute dollars and as a percentage of revenue in future periods as a result of our 2026 reductions in workforce and as we continue to drive operating efficiencies across the business, partially offset by ongoing investment in key growth initiatives.

Previous wording

Sales and marketing. Our sales and marketing expenses relate to both self-serve and outbound sales activities, and consist primarily of employee-related costs, advertising costs, brand marketing costs, lead generation costs, sponsorships and allocated overhead. Sales commissions earned by our outbound sales team and the related payroll taxes, as well as commissions earned by third-party resellers that we consider to be incremental and recoverable costs of obtaining a contract with a customer, are deferred and are typically amortized over an estimated period of benefit of five years. Additionally, sales and marketing expenses include non-employee costs related to app store fees, fees payable to third-party sales representatives and amortization of acquired customer relationships.

Current wording

Sales and marketing. Our sales and marketing expenses relate to both self-serve and outbound sales activities, and consist primarily of employee-related costs, expenses related to our second and third quarter 2026 reductions in workforce such as severance, benefits, and other related items, advertising costs, brand marketing costs, lead generation costs, sponsorships and allocated overhead. Sales commissions earned by our outbound sales team and the related payroll taxes, as well as commissions earned by third-party resellers that we consider to be incremental and recoverable costs of obtaining a contract with a customer, are deferred and are typically amortized over an estimated period of benefit of five years. Additionally, sales and marketing expenses include non-employee costs related to app store fees, fees payable to third-party sales representatives and amortization of acquired customer relationships.

Previous wording

We expect that sales and marketing expenses could fluctuate in absolute dollars in the near term and in the long term as we seek to grow our user base and increase our brand awareness while also retaining flexibility to invest in growth.

Current wording

We expect that sales and marketing expenses could fluctuate in absolute dollars in future periods as a result of our 2026 reductions in workforce and as we seek to grow our user base and increase our brand awareness while also retaining flexibility to invest in growth.

Previous wording

General and administrative. Our general and administrative expenses consist primarily of employee-related costs for our legal, finance, human resources, and other administrative teams, as well as certain executives. In addition, general and administrative expenses include allocated overhead, outside legal, accounting and other professional fees, and non income-based taxes.

Current wording

General and administrative. Our general and administrative expenses consist primarily of employee-related costs for our legal, finance, human resources, and other administrative teams, as well as certain executives. In addition, general and administrative expenses include expenses related to our second and third quarter 2026 reductions in workforce such as severance, benefits, and other related items, allocated overhead, outside legal, accounting and other professional fees, and non income-based taxes.

Previous wording

We expect to incur additional general and administrative expenses to support the growth of the Company. We expect that general and administrative expenses will fluctuate in absolute dollars in future periods and remain relatively constant in both the near term and the long term as a percentage of revenue.

Current wording

We expect to incur additional general and administrative expenses to support the growth of the Company. We expect that general and administrative expenses will decrease in absolute dollars and as a percentage of revenue in future periods as a result of our 2026 reductions in workforce.

Previous wording

Other income (expense), net consists of other non-operating gains or losses, including those related to gains or losses on sale of assets, foreign currency transaction gains and losses, lease arrangements, which include sublease income, and gains and losses related to our short-term investments.

Current wording

Other income, net consists of other non-operating gains or losses, including those related to gains or losses on sale of assets, foreign currency transaction gains and losses, lease arrangements, including sublease income from corporate offices that exceeds associated lease expense, and gains and losses related to our short-term investments.

Previous wording

Revenue increased $5.8 million or 0.9% during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025 primarily due to positive impacts from changes in foreign exchange rates across multiple currencies and growth from our Individual plans, offset byour strategic decision to significantly reduce our investment in FormSwift and our plan to wind down operations by the end of 2026.

Current wording

Revenue increased $2.9 million or 0.5% during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025 primarily due to positive impacts from changes in foreign exchange rates across multiple currencies and growth from our Simple plan, offset byour strategic decision to significantly reduce our investment in FormSwift and wind down operations at the end of September 2026.

Previous wording

Cost of revenue increased $12.7 million or 5.3% during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. This increase was primarily driven by a $14.4 million increase in infrastructure costs, including costs associated with adding equipment in support of our data center refresh cycle, data center facilities costs, and third party hosting fees.

Current wording

Cost of revenue decreased $4.7 million or 3.7% during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. This decrease was primarily driven by a $5.4 million decrease in infrastructure costs, including costs associated with third party hosting fees and support and expensed equipment.

Previous wording

Our gross margin decreased during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to a 5.3% increase in our cost of revenue, partially offset by a 0.8% increase in revenue during the period, as described above.

Current wording

Our gross margin increased during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a 0.5% increase in revenue during the period and a 3.7% decrease in our cost of revenue as described above.

Previous wording

Research and development expenses increased $3.7 million or 2.0% during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to an increase of $2.5 million in employee-related costs driven by costs related to our recent workforce reduction, primarily severance, benefits, and other related items, as well as a $1.0 million increase in third-party infrastructure costs.

Current wording

Research and development expenses increased $3.1 million or 1.7% during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to increases of $1.5 million in employee-related costs driven by costs related to our recent workforce reductions, primarily severance, benefits, and other related items, as well as a $1.1 million increase in allocated overhead.

Previous wording

General and administrative expenses increased $5.0 million or 8.5% during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to an increase of $5.0 million in employee-related costs driven by an increase in headcount.

Current wording

General and administrative expenses increased $8.9 million or 15.5% during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to an increase of $8.9 million in employee-related costs driven by an increase in headcount.

Previous wording

Interest expense, net increased by $31.4 million during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to an increase in interest expense related to our term loan facility now that it is fully drawn.

Current wording

Interest expense, net increased by $30.9 million during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to an increase in interest expense related to our term loan facility now that it is fully drawn.

Previous wording

Revenue increased $10.6 million or 0.8% during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025 primarily due to positive impacts from changes in foreign exchange rates across multiple currencies and growth from our Individual plans, offset byour strategic decision to significantly reduce our investment in FormSwift and our plan to wind down operations by the end of 2026.

Current wording

Revenue increased $13.5 million or 0.7% during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025 primarily due to positive impacts from changes in foreign exchange rates across multiple currencies and growth from our Simple plans, offset by our strategic decision to significantly reduce our investment in FormSwift and wind down operations at the end of September 2026.

Previous wording

Cost of revenue increased $1.3 million or 1.1% during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. This increase was primarily driven by a $2.9 million increase in infrastructure costs, including costs associated with data center facilities costs and third party hosting fees, partially offset by a $1.6 million decrease in outside services.

Current wording

Cost of revenue increased $8.0 million or 2.2% during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. This increase was primarily driven by a $9.0 million increase in infrastructure costs, data center facilities costs, and third party hosting fees.

Previous wording

Our gross margin remained flat during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, as the 0.9% increase in revenue during the period, as described above, was largely offset by a 1.1% increase in cost of revenue.

Current wording

Our gross margin remained flat during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, as the 0.7% increase in revenue during the period, as described above, was largely offset by a 2.2% increase in cost of revenue.

Previous wording

Research and development expenses increased $9.5 million or 2.6% during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to an increase of $8.6 million in employee-related costs driven by annual performance-based compensation increases and costs related to our recent workforce reduction, primarily severance, benefits, and other related items, partially offset by lower ending headcount compared to the prior period.

Current wording

Research and development expenses increased $12.6 million or 2.3% during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to an increase of $10.1 million in employee-related costs driven by annual performance-based compensation increases and costs related to our recent workforce reductions, primarily severance, benefits, and other related items, partially offset by lower ending headcount compared to the prior period.

Previous wording

Sales and marketing expenses decreased $3.1 million or 1.7% during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease was primarily driven by a $2.2 million reduction in employee-related costs driven by a decrease in headcount and a $1.6 million decrease in other expenses, partially offset by a $1.0 million increase in merchant fees.

Current wording

Sales and marketing expenses decreased $8.0 million or 2.9% during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The decrease was primarily driven by a $4.6 million decrease in merchant fees and a $2.4 million decrease in other expenses.

Previous wording

General and administrative expenses increased $8.7 million or 7.7% during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increase was primarily driven by a $6.8 million increase in employee-related costs driven by an increase in headcount, and lower expenses in the first quarter of 2025 due to the release of $4.3 million of non-income tax reserves, partially offset by a $2.5 million decrease in professional services expense.

Current wording

General and administrative expenses increased $17.6 million or 10.3% during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase was primarily driven by a $15.9 million increase in employee-related costs driven by an increase in headcount, and an increase in non-income tax expense of $2.1 million.

Previous wording

Net loss on real estate assets was $2.6 million during the three months ended June 30, 2025 and there were no similar charges during the three months ended June 30, 2026.

Current wording

Net loss on real estate assets was $2.6 million during the nine months ended September 30, 2025 and there were no similar charges during the nine months ended September 30, 2026.

Previous wording

Interest expense, net increased by $53.5 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to an increase in interest expense related to our term loan facility now that it is fully drawn.

Current wording

Interest expense, net increased by $84.4 million during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to an increase in interest expense related to our term loan facility now that it is fully drawn.

Previous wording

Other income (expense), net increased by $9.9 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to a $7.3 million increase in foreign currency transaction gains and a $2.6 million gain on datacenter equipment resales.

Current wording

Other income, net increased by $12.7 million during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to a $8.6 million increase in foreign currency transaction gains and a $5.1 million increase in gains on datacenter equipment resales.

Previous wording

Provision for income taxes increased $7.4 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to the impact of the One Big Beautiful Bill Act reflected in the six months ended June 30, 2026, a reduction in stock-based compensation tax benefits, and changes to our unrecognized tax benefits.

Current wording

Provision for income taxes decreased $12.5 million during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to lower income before income taxes and the cumulative impact of the One Big Beautiful Bill Act reflected in the nine months ended September 30, 2025.

Previous wording

As of June 30, 2026, we had cash and cash equivalents of $1,056.2 million and short-term investments of $57.6 million, which were held for working capital purposes. Our cash, cash equivalents, and short-term investments consist primarily of cash, money market funds, corporate notes and obligations, U.S. Treasury securities, asset-backed securities, U.S. agency obligations, supranational securities, and municipal securities. As of June 30, 2026, $265.2 million of our cash and cash equivalents was held by our foreign subsidiaries. We do not expect to incur material taxes in the event we repatriate any of these amounts. Our cash is held at several large financial institutions and our investments are focused on the preservation of capital, fulfillment of our liquidity needs, and maximization of investment performance within the parameters set forth in our investment policy and subject to market conditions. The investment policy sets forth credit rating minimums, permissible allocations, and limits our exposure to specific investment types. We believe these policies mitigate our exposure to risk concentrations.

Current wording

As of September 30, 2026, we had cash and cash equivalents of $1,104.8 million and short-term investments of $37.4 million, which were held for working capital purposes. Our cash, cash equivalents, and short-term investments consist primarily of cash, money market funds, corporate notes and obligations, U.S. Treasury securities, asset-backed securities, and municipal securities. As of September 30, 2026, $247.0 million of our cash and cash equivalents was held by our foreign subsidiaries. We do not expect to incur material taxes in the event we repatriate any of these amounts. Our cash is held at several large financial institutions and our investments are focused on the preservation of capital, fulfillment of our liquidity needs, and maximization of investment performance within the parameters set forth in our investment policy and subject to market conditions. The investment policy sets forth credit rating minimums, permissible allocations, and limits our exposure to specific investment types. We believe these policies mitigate our exposure to risk concentrations.

Previous wording

The initial term loans and initial delayed draw term loans have a maturity date of December 11, 2029 and the 2025 delayed draw term loans have a maturity date of September 9, 2030. Quarterly principal payments for the initial term loans and initial delayed draw term loans began on March 31, 2025 and on the last business day of the quarter after the funding of such loans, respectively, and will continue on the last business day of each quarter thereafter, equal to 0.25% of the original principal amount of such term loans or such greater percentage as may be required to make the initial delayed draw term loans fungible with any then-outstanding initial term loans and initial delayed draw term loans. Quarterly repayments of 0.25% of the original principal amount of the 2025 delayed draw term loans began on March 31, 2026 and on the last business day of the quarter after the funding of such loans and continuing thereafter. As of June 30, 2026, we had $2,674.8 million outstanding on the term loan facility and no commitment remained available. As of June 30, 2026, $21.1 million of letters of credit were issued and $13.9 million remains to be issued under the letter of credit facility.

Current wording

The initial term loans and initial delayed draw term loans have a maturity date of December 11, 2029 and the 2025 delayed draw term loans have a maturity date of September 9, 2030. Quarterly principal payments for the initial term loans and initial delayed draw term loans began on March 31, 2025 and on the last business day of the quarter after the funding of such loans, respectively, and will continue on the last business day of each quarter thereafter, equal to 0.25% of the original principal amount of such term loans or such greater percentage as may be required to make the initial delayed draw term loans fungible with any then-outstanding initial term loans and initial delayed draw term loans. Quarterly repayments of 0.25% of the original principal amount of the 2025 delayed draw term loans began on March 31, 2026 and on the last business day of the quarter after the funding of such loans and continuing thereafter. As of September 30, 2026, we had $2,668.1 million outstanding on the term loan facility and no commitment remained available. As of September 30, 2026, $22.2 million of letters of credit were issued and $12.8 million remains available to be issued under the letter of credit facility.

Previous wording

Our principal uses of cash in recent periods have been funding our operations, repurchases of our Class A common stock, the satisfaction of tax withholding obligations in connection with the settlement of RSUs and RSAs, making principal payments on our finance lease obligations, and capital expenditures. Our Board of Directors has authorized a share repurchase program for the repurchase of shares of our Class A common stock. As of June 30, 2026 $1.4 billion remained available for repurchases, including an increase of $900.0 million authorized by our Board of Directors in June 2026. Share repurchases are made from time-to-time in private transactions or open market purchases as permitted by securities laws and other legal requirements and are subject to a review of the circumstances in place at that time, including prevailing market prices. The program does not obligate us to repurchase any specific number of shares and has no specified time limit; it may be discontinued at any time. During the three and six months ended June 30, 2026, we repurchased and subsequently retired 12.6 million and 26.9 million shares, respectively, of our Class A common stock for an aggregate amount of $318.0 million and $688.0 million, respectively. This amount includes the 1% excise tax under the Inflation Reduction Act, as well as repurchase execution costs incurred in connection with our share repurchase program. The pace of our share repurchases may fluctuate due to various circumstances, including market conditions, our stock price, and other strategic investments.

Current wording

Our principal uses of cash in recent periods have been funding our operations, repurchases of our Class A common stock, the satisfaction of tax withholding obligations in connection with the settlement of RSUs and RSAs, making principal payments on our finance lease obligations, and capital expenditures. Our Board of Directors has authorized a share repurchase program for the repurchase of shares of our Class A common stock. As of September 30, 2026, $1.2 billion remained available for repurchases, including an increase of $900.0 million authorized by our Board of Directors in June 2026. Share repurchases are made from time-to-time in private transactions or open market purchases as permitted by securities laws and other legal requirements and are subject to a review of the circumstances in place at that time, including prevailing market prices. The program does not obligate us to repurchase any specific number of shares and has no specified time limit; it may be discontinued at any time. During the three and nine months ended September 30, 2026, we repurchased and subsequently retired 4.7 million and 31.6 million shares, respectively, of our Class A common stock for an aggregate amount of $151.0 million and $839.0 million, respectively. This amount includes the 1% excise tax under the Inflation Reduction Act, as well as repurchase execution costs incurred in connection with our share repurchase program. The pace of our share repurchases may fluctuate due to various circumstances, including market conditions, our stock price, and other strategic investments.