Doximity, Inc.

Previous wording

We are the leading digital platform for U.S. medical professionals, as measured by the number of members. Our members include more than 85% of U.S. physicians, spanning all 50 states and every medical specialty.

Current wording

We are the leading digital platform for U.S. medical professionals, with over 3 million registered members 1 as of March 31, 2026. Our registered members represent more than 85% of U.S. physicians, spanning all 50 states and every medical specialty. As of March 31, 2026, the total number of U.S. physicians was approximately 1 million. We calculate U.S. physicians as all U.S. physicians (MDs/DOs) who are under the age of 76, not retired, hold an active medical license, and have a physician status on the National Provider Identifier (NPI) registry. To be included in our calculation of registered members as a percentage of U.S. physicians, we include those U.S. physicians who meet the above criteria and have registered on Doximity by claiming their pre-populated profile or creating a new profile.

Previous wording

Our mission is to help every physician be more productive and provide better care for their patients. We are physicians-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians and their colleagues. Doximity puts modern software in the hands of physicians and other medical professionals. We provide our members with digital tools specifically built for medicine, enabling our members to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits.

Current wording

Our mission is to help every physician be more productive and provide better care for their patients. We are physician-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians and their colleagues. We provide our members with AI-powered tools specifically built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, and conduct virtual patient visits. Our Clinical AI Suite supports the full day-to-day workflow of a physician, from patient communication to documentation to answering clinical questions.

Previous wording

At the core of our platform is the largest medical professional network in the nation, which creates proximity within our community of doctors and other medical professionals. Verified members can search and connect with colleagues and specialists, which allows them to better coordinate patient care and streamline referrals. Our newsfeed addresses the ever increasing sub-specialization of medical expertise and volume of medical research by delivering news and information that is relevant to each physician's clinical practice. We also support physicians in their day-to-day practice of medicine with mobile-friendly and easy-to-use workflow tools such as voice and video dialer, secure messaging, digital faxing, and our AI-powered workflow tools. Our business model is designed to both respect and support physicians while driving value for our customers through our Marketing, Hiring, and Workflow Solutions. Our revenue-generating customers, primarily pharmaceutical manufacturers and health systems, have access to a suite of commercial solutions that benefit from broad physician usage.

Current wording

At the core of our platform is the largest medical professional network in the nation, which creates proximity within our community of doctors and other medical professionals. Verified members can search and connect with colleagues and specialists, which allows them to better coordinate patient care and streamline referrals. Our newsfeed addresses the ever increasing sub-specialization of medical expertise and volume of medical research by delivering news and information that is relevant to each physician’s clinical practice. We also support physicians in their day-to-day practice of medicine with mobile-friendly and easy-to-use workflow tools such as voice and video dialer, secure messaging, digital faxing, and our Clinical AI Suite, including Ask (formerly DoxGPT) and Scribe. Our business model is designed to both respect and support physicians while driving value for our customers through our Marketing, Hiring, and Workflow Solutions. Our revenue-generating customers, primarily pharmaceutical manufacturers and health systems, have access to a suite of commercial solutions that benefit from broad physician usage.

Previous wording

Our business model has delivered high revenue growth at scale with profitability. For the three months ended December 31, 2025 and 2024, we recognized revenue of $185.1 million and $168.6 million, respectively, representing a year-over-year growth rate of 10%. For the nine months ended December 31, 2025 and 2024, we recognized revenue of $499.5 million and $432.1 million, respectively, representing a year-over-year growth rate of 16%. For the three months ended December 31, 2025 and 2024, our net income was $61.6 million and $75.2 million and our adjusted EBITDA was $111.4 million and $102.0 million, respectively. For the nine months ended December 31, 2025 and 2024, our net income was $176.9 million and $160.7 million and our adjusted EBITDA was $292.0 million and $244.1 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.

Current wording

Our business model has delivered high revenue growth at scale with profitability. For the three months ended June 30, 2026 and 2025, we recognized revenue of $156.6 million and $145.9 million, respectively, representing a year-over-year growth rate of 7%. For the three months ended June 30, 2026 and 2025, our net income was $24.3 million and $53.3 million and our adjusted EBITDA was $74.8 million and $79.8 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.

Previous wording

Customers with Trailing 12-Month Subscription Revenue Greater than $500,000. The number of customers with trailing 12-month (“TTM”) subscription revenue greater than $500,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.

Current wording

Customers with Trailing 12-Month Subscription Revenue Greater than $500,000. The number of customers with trailing 12-month (“TTM”) subscription revenue greater than $500,000 is a key indicator of the scale of our business and the value we create for large customers, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.

Previous wording

The number of customers with at least $500,000 of revenue has grown steadily in recent years as we have engaged new customers and expanded within existing ones. This cohort of customers accounted for approximately 84% of our revenue for the TTM ended December 31, 2025.

Current wording

The number of customers with at least $500,000 of TTM revenue has grown steadily in recent years as we have engaged new customers and expanded within existing ones. This cohort of customers accounted for approximately 83% of our revenue for the TTM ended June 30, 2026.

Previous wording

Net Revenue Retention Rate. Net revenue retention rate is calculated by taking the TTM subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.

Current wording

Net Revenue Retention Rate. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Net revenue retention rate is calculated by taking the TTM subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.

Previous wording

We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, impairment charge, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Current wording

We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Previous wording

Marketing Solutions. Our customers purchase a subscription to Marketing Solutions, either directly or through marketing agencies, for the ability to share tailored content on the Doximity platform via a variety of modules for defined time periods. We generally bill customers a portion of the contract upon contract execution and then bill throughout the remainder of the contract based on various time-based milestones. Generally, we bill in advance of revenue recognition. When revenue is recognized in advance of billings, we record unbilled revenue. Unbilled revenue is recorded on the condensed consolidated balance sheets within prepaid expenses and other current assets. Subscriptions to Marketing Solutions include the following contractual arrangements:

Current wording

Marketing Solutions. Our customers purchase a subscription to Marketing Solutions, either directly or through marketing agencies, to share tailored content on the Doximity platform via a variety of modules for defined time periods. We generally bill customers either upon contract execution for a portion of the contract, with the remainder billed based on various time-based milestones, or on a monthly basis beginning in the month services are launched. When revenue is recognized in advance of billings, we record unbilled revenue. Unbilled revenue is recorded on the condensed consolidated balance sheets within prepaid expenses and other current assets. Subscriptions to Marketing Solutions include the following contractual arrangements:

Previous wording

Hiring and Workflow Solutions. We provide Hiring Solutions customers access to our platform which enables them to post job openings or deliver a fixed number of monthly messages to our network of medical professionals. We offer Workflow Solutions customers access to telehealth tools, on-call scheduling, and our AI writing assistant during the subscription period. Hiring and Workflow Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period, and revenue is recognized ratably over the contractual term.

Current wording

Hiring and Workflow Solutions. We provide Hiring Solutions customers access to our platform which enables them to post job openings or deliver a fixed number of monthly messages to our network of medical professionals. We offer Workflow Solutions customers access to telehealth tools, on-call scheduling, and our Clinical AI Suite, including Dialer, Scribe and Ask (formerly DoxGPT), during the subscription period. Hiring and Workflow Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period, and revenue is recognized ratably over the contractual term.

Previous wording

We also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively. For the three and nine months ended December 31, 2025 and 2024, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.

Current wording

We also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively. For the three months ended June 30, 2026 and 2025, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.

Previous wording

Cost of revenue is primarily comprised of expenses related to cloud hosting, personnel-related expenses for our customer success team, costs for third-party platform access, information technology, software costs, and other services used in connection with thedelivery and support of our platform. Our cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead. Cost of revenue is driven by the growth of our member network and utilization of our workflow tools. We intend to continue to invest additional resources in our cloud infrastructure and our customer support organizations to support the growth of our business.

Current wording

Cost of revenue is primarily comprised of expenses related to cloud hosting, personnel-related expenses for our customer success team, costs for third-party platform access, information technology, software costs, including generative AI platform usage and inference costs, amortization of acquired intangibles, and other services used in connection with thedelivery and support of our platform. Our cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead. Cost of revenue is driven by the growth of our member network and utilization of our workflow tools. We intend to continue to invest additional resources in our cloud infrastructure, AI initiatives, and our customer support organizations to support the growth of our business.

Previous wording

Gross profit is total revenue less total cost of revenue. Gross margin is gross profit expressed as a percentage of total revenue. Gross profit and gross margin has been and will continue to be affected by a number of factors, including the timing of our acquisition of new customers andsales of additional solutions to existing customers, the timing and extent of our investments in our operations, cloud hosting costs, growth in our customer success team, and the timing of internal-use software development costs amortization. We expect our gross margin to remain relatively steady over the near term, although our quarterly gross margin is expected to fluctuate from period to period depending on the interplay of these and other factors.

Current wording

Gross profit is total revenue less total cost of revenue. Gross margin is gross profit expressed as a percentage of total revenue. Gross profit and gross margin has been and will continue to be affected by a number of factors, including the timing of our acquisition of new customers andsales of additional solutions to existing customers, the timing and extent of our investments in our operations, cloud hosting costs, growth in our customer success team, AI and related efforts, the timing of internal-use software development costs amortization, and amortization of acquired intangibles.

Previous wording

Research and development expense is primarily comprised of personnel-related expenses associated with our engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for information technology, software-related costs, contractors, third-party services, amortization of acquired intangibles, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred. We expect research and development expenses will increase on an absolute dollar basis as we continue to grow our platform and product offerings.

Current wording

Research and development expense is primarily comprised of personnel-related expenses associated with our engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for information technology, software-related costs, including generative AI platform usage and inference costs, contractors, third-party services, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred.

Previous wording

Sales and marketing expense is primarily comprised ofpersonnel-related expenses, sales incentive compensation, advertising costs, travel, and other event expenses. Sales and marketing expense also includes costs for information technology, software-related costs, contractors, third-party services, allocated overhead, intangible assets amortization, and change in fair value of contingent earn-out consideration liability. We capitalize sales incentive compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. These sales incentive compensation costs are amortized over the period of benefit. We expect sales and marketing expense to increase and to be our largest expense on an absolute basis.

Current wording

Sales and marketing expense is primarily comprised ofpersonnel-related expenses, sales incentive compensation, advertising costs, travel, and other event expenses. Sales and marketing expense also includes costs for information technology, software-related costs, contractors, third-party services, allocated overhead, intangible assets amortization, and change in fair value of contingent earn-out consideration liability. We capitalize sales incentive compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. These sales incentive compensation costs are amortized over the period of benefit.

Previous wording

General and administrative expense is primarily comprised ofpersonnel-related expenses associated with our executive, finance, legal, human resources, information technology, and facilities employees. General and administrative expense includes fees for third-party legal and accounting services, insurance expense, information technology, software-related costs, and allocated overhead. We expect that general and administrative expense will increase on an absolute dollar basis as we incur compliance costs associated with being a publicly-traded company, including legal, audit, and consulting fees.

Current wording

General and administrative expense is primarily comprised ofpersonnel-related expenses associated with our executive, finance, legal, human resources, information technology, and facilities employees. General and administrative expense includes fees for third-party legal and accounting services, insurance, information technology, software-related costs, and allocated overhead.

Previous wording

Provision for income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions in which we conduct business. We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes Arizona research and development credits and capital loss carryforwards. We calculate income taxes in interim periods by applying an estimated annual effective tax rate to income before income taxes and by calculating the tax effect of discrete items recognized during the period. Our effective income tax rate generally differs from the U.S. statutory tax rate of 21.0% primarily due to stock-based compensation related tax benefits, which are subject to limitations for certain executive officers under IRC section 162(m), and federal and state research and development tax credits.

Current wording

Provision for income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions in which we conduct business. We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes Arizona research and development credits and capital loss carryforwards. We calculate income taxes in interim periods by applying an estimated annual effective tax rate to income before income taxes and by calculating the tax effect of discrete items recognized during the period. Our effective income tax rate generally differs from the U.S. statutory tax rate of 21.0% primarily due to excess tax deficiencies from equity awards, which are subject to limitations for certain executive officers under IRC section 162(m), and federal and state research and development tax credits.

Previous wording

(1)Costs and expenses include stock-based compensation expense as follows:

Current wording

(1)Cost of revenue and operating expenses include stock-based compensation expense as follows:

Previous wording

Comparison of the three and nine months ended December 31, 2025 and 2024.

Current wording

Comparison of the three months ended June 30, 2026 and 2025.

Previous wording

Revenue for the three months ended December 31, 2025 increased $16.5 million as compared to the same period in 2024. The increase was primarily driven by a $13.1 million increase in subscription revenue. Of the increase in subscription revenue, $7.1 million was driven by the addition of new subscription customers 1 and $6.0 million was due to the expansion of existing customers. The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customers increasing by approximately 7% as a result of adding new and growing existing brands and service lines. Approximately 95% of our revenue for the three months ended December 31, 2025 was derived from subscription customers.

Current wording

Revenue for the three months ended June 30, 2026 increased $10.7 million as compared to the same period in 2025. The increase was primarily driven by a $8.4 million increase in subscription revenue. Of the increase in subscription revenue, $7.1 million was driven by the addition of new subscription customers 3 and $1.3 million was due to the expansion of existing customers. The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customers increasing by approximately 3% as a result of adding new and growing existing brands and service lines. Approximately 93% of our revenue for the three months ended June 30, 2026 was derived from subscription customers. The majority of the remainder of the increase was driven by an increase in our temporary staffing and permanent placement revenue.

Previous wording

Cost of revenue for the three and nine months ended December 31, 2025 increased $4.5 million and $9.5 million as compared to the same periods in 2024. The increase was primarily driven by increases in hosting and software costs, personnel, and other costs to support revenue growth.

Current wording

Cost of revenue for the three months ended June 30, 2026 increased $7.9 million as compared to the same period in 2025. The increase was primarily driven by a $4.9 million increase in hosting and software costs and a $1.5 million increase related to amortization of an acquired intangible and internally-developed software. Both increases were incurred to support our AI initiatives. The remaining increases were due to personnel and other costs to support revenue growth.

Previous wording

The gross margin for the three and nine months ended December 31, 2025 remained consistent as compared to the same period in 2024.

Current wording

Gross margin for the three months ended June 30, 2026 decreased 4% as compared to the same period in 2025, primarily due to the increased cost of revenue incurred to support our AI initiatives.

Previous wording

Research and development expense for the three months ended December 31, 2025 increased $12.2 million as compared to the same period in 2024. The increase was driven by a $9.7 million increase in stock-based compensation as a result of new service-based as well as performance-based awards granted to new hires and existing employees, a $1.1 million increase in personnel costs due to merit increases and increases in average headcount, and a $0.8 million increase in third-party contractor costs.

Current wording

Research and development expense for the three months ended June 30, 2026 increased $11.7 million as compared to the same period in 2025. The increase was primarily driven by a $9.6 million increase in stock-based compensation as a result of new service-based as well as performance-based awards granted to new hires and existing employees, a $1.5 million increase in personnel costs due to merit increases and increases in average headcount, and a $1.1 million increase in hosting and software costs. These increases were partially offset by a $1 million increase in capitalization of internally-developed software costs.

Previous wording

1 We define new subscription customers as revenue generating subscription customers in the current fiscal period who did not contribute any revenue for the same period in the prior fiscal year.

Current wording

3 We define new subscription customers as revenue generating subscription customers in the current fiscal period who did not contribute any revenue for the same period in the prior fiscal year.

Previous wording

Sales and marketing expense for the three months ended December 31, 2025 increased $3.7 million as compared to the same period in 2024, primarily driven by $3.4 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees, and $1.3 million increase in marketing activities.

Current wording

Sales and marketing expense for the three months ended June 30, 2026 increased $8.7 million as compared to the same period in 2025, primarily driven by a $4.7 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees, a $1.8 million increase in marketing activities, and a $1.8 million increase in personnel costs driven by merit increases and incentive compensation.

Previous wording

General and administrative expense for the three months ended December 31, 2025 increased $4.1 million as compared to the same period in 2024, primarily driven by $3.2 million increase in legal expenses, and $1.5 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees.

Current wording

General and administrative expense for the three months ended June 30, 2026 increased $3.3 million as compared to the same period in 2025, primarily driven by a $2.2 million increase in legal expenses and a $1.1 million increase in stock-based compensation as a result of new service-based as well as performance-based awards granted to new hires and existing employees.

Previous wording

Other income, net for the three months ended December 31, 2025 decreased $1.0 million as compared to the same period in 2024, primarily driven by decreases in interest income due to lower yields earned on our cash equivalents and marketable securities portfolio, partially offset by a higher average portfolio balance.

Current wording

Other income, net for the three months ended June 30, 2026 decreased $2.9 million as compared to the same period in 2025, primarily driven by a decrease in interest income due to lower yields earned on our cash equivalents and marketable securities portfolio and by a lower average portfolio balance.

Previous wording

Income tax expense for the three months ended December 31, 2025 increased $4.6 million as compared to the same period in 2024, primarily driven by decreased research and development credit and tax deductions from stock award activities offset in part by lower income before taxes.

Current wording

Income tax expense for the three months ended June 30, 2026 increased $5.2 million as compared to the same period in 2025. This increase was primarily driven by reduced tax deductions from stock award activities and lower research and development tax credits, partially offset by lower income before taxes.

Previous wording

Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers. As of December 31, 2025, our principal sources of liquidity were cash and cash equivalents and marketable securities of $735.1 million. Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, and commercial paper.

Current wording

Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers. As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents and marketable securities of $687.8 million. Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, and commercial paper.

Previous wording

On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of December 31, 2025, the Company repurchased and retired 8,648,145 shares of Class A common stock under this program for an aggregate purchase price of $417.0 million and $83.0 million remained available and authorized for repurchase.

Current wording

On February 3, 2026, the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of June 30, 2026, the Company repurchased and retired 4,759,886 shares of Class A common stock under this program for an aggregate purchase price of $99.1 million and $400.9 million remained available and authorized for repurchase.

Previous wording

Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. As of December 31, 2025, the Company had accrued excise taxes of $1.7 million and nil as of March 31, 2025.

Current wording

Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. The Company’s accrued excise taxes were $3.0 million and $2.3 million as of June 30, 2026 and March 31, 2026, respectively.

Previous wording

Cash provided by operating activities was $216.9 million for the nine months ended December 31, 2025. This consisted of net income of $176.9 million, adjusted for non-cash items of $99.5 million and a net outflow from operating assets and liabilities of $59.5 million. Non-cash items primarily consisted of stock-based compensation expense of $84.9 million, depreciation and amortization expense of $10.3 million, amortization of deferred contract costs of $9.3 million, and non-cash lease expense of $1.4 million, partially offset by the accretion of discount on marketable securities of $6.5 million. The net outflow from operating assets and liabilities was driven by a $48.1 million decrease in deferred revenue due to the timing of customer billings and program launches, a $28.6 million increase in accounts receivable due to the timing of billings and collections, a $11.3 million increase in deferred contract costs, $9.4 million increase in prepaid expenses and other assets primarily due to prepaid taxes, and a $1.7 million decrease in operating lease liabilities. The outflows were partially offset by a $39.5 million increase in accounts payable, accrued expenses, and other liabilities due to timing of payments.

Current wording

Cash provided by operating activities was $42.0 million for the three months ended June 30, 2026. This consisted of net income of $24.3 million, adjusted for non-cash items of $44.8 million and a net outflow from operating assets and liabilities of $27.1 million. Non-cash items primarily consisted of stock-based compensation expense of $36.8 million, depreciation and amortization expense of $4.3 million, and amortization of deferred contract costs of $4.3 million, partially offset by the accretion of discount on marketable securities of $0.6 million. The net outflow from operating assets and liabilities was driven by a $33.3 million increase in accounts receivable due to the timing of billings and collections, a $2.6 million increase in deferred contract costs, and a $2.4 million decrease in accounts payable, accrued expenses, and other liabilities due to timing of payments. The outflows were partially offset by a $9.1 million decrease in prepaid expenses and other assets primarily due to prepaid taxes and a $2.6 million increase in deferred revenue due to the timing of customer billings and program launches.

Previous wording

Cash provided by operating activities was $174.8 million for the nine months ended December 31, 2024. This consisted of net income of $160.7 million, adjusted for non-cash items of $66.1 million and a net outflow from operating assets and liabilities of $52.1 million. Non-cash items primarily consisted of stock-based compensation expense of $54.3 million, depreciation and amortization expense of $7.8 million, amortization of deferred contract costs of $6.5 million, impairment of long-lived assets of $2.3 million, deferred income taxes of $2.2 million, and non-cash lease expense of $1.4 million, partially offset by the accretion of discount on marketable securities of $8.7 million. The net outflow from operating assets and liabilities was driven by a $36.5 million increase in accounts receivable due to the timing of billings and collections, a $30.1 million decrease in deferred revenue due to the timing of customer billings and program launches, and a $9.1 million increase in deferred contract costs. The outflows were partially offset by a $21.3 million decrease in prepaid expenses and other assets primarily due to prepaid taxes and a $3.9 million increase in accounts payable, accrued expenses, and other liabilities. During the nine months ended December 31, 2024, the Company made $35.8 million in payments for taxes. The increase in cash paid for income taxes in this period, as compared to prior years, was partially related to the Tax Cuts and Jobs Act of 2017, which eliminated the option to deduct research and development expenditures and required taxpayers to capitalize and amortize them over five or fifteen years.

Current wording

Cash provided by operating activities was $62.1 million for the three months ended June 30, 2025. This consisted of net income of $53.3 million, adjusted for non-cash items of $26.1 million and a net outflow from operating assets and liabilities of $17.3 million. Non-cash items primarily consisted of stock-based compensation expense of $21.9 million, depreciation and amortization expense of $2.8 million, amortization of deferred contract costs of $3.9 million, and non-cash lease expense of $0.5 million, partially offset by the accretion of discount on marketable securities of $2.5 million. The net outflow from operating assets and liabilities was driven by a $13.4 million increase in accounts receivable due to the timing of billings and collections, a $4.2 million increase in prepaid expenses and other assets primarily due to prepaid taxes, a $2.0 million increase in deferred contract costs, and a $0.6 million decrease in operating lease liabilities. The outflows were partially offset by a $3.0 million increase in deferred revenue due to the timing of customer billings and program launches.

Previous wording

Cash provided by investing activities was $9.2 million for the nine months ended December 31, 2025, which primarily consisted of proceeds from the maturities of marketable securities of $413.2 million and the sales of marketable securities of $10.4 million, partially offset by $381.1 million of marketable securities purchases, $26.5 million cash paid for acquisition, and $6.6 million for internal-use software development costs.

Current wording

Cash provided by investing activities was $113.0 million for the three months ended June 30, 2026, which primarily consisted of proceeds from the maturities of marketable securities of $126.1 million and the sales of marketable securities of $4.0 million, partially offset by $14.7 million of marketable securities purchases and $2.3 million for internal-use software development costs.

Previous wording

Cash used in investing activities was $4.8 million for the nine months ended December 31, 2024, which primarily consisted of $531.8 million of marketable securities purchases and $5.0 million for internal-use software development costs, partially offset by proceeds from the maturities of marketable securities of $517.2 million and $14.8 million of proceeds from the sale of marketable securities.

Current wording

Cash provided by investing activities was $2.7 million for the three months ended June 30, 2025, which primarily consisted of proceeds from the maturities of marketable securities of $144.6 million, partially offset by $139.9 million of marketable securities purchases and $2.0 million for internal-use software development costs.

Previous wording

Cash used in financing activities was $101.5 million for the nine months ended December 31, 2024, which primarily consisted of common stock repurchases of $93.5 million, $5.5 million of payments for contingent consideration related to the AMiON acquisition, and $16.3 million of taxes paid related to the net share settlement of equity awards. These payments were partially offset by $13.9 million of proceeds from the exercise of stock options and common stock warrants.

Current wording

Cash used in financing activities was $100.6 million for the three months ended June 30, 2026, which primarily consisted of common stock repurchases of $91.6 million, $7.0 million of taxes paid related to the net share settlement of equity awards, and $5.0 million of payments for contingent consideration related to the AMiON acquisition. These payments were partially offset by $3.1 million of proceeds from the exercise of stock options and common stock warrants.

Previous wording

Cash used in financing activities was $370.9 million for the nine months ended December 31, 2025, which primarily consisted of common stock repurchases of $341.1 million, $33.4 million of taxes paid related to the net share settlement of equity awards, and $5.2 million of payments for contingent consideration related to the AMiON acquisition. These payments were partially offset by $7.0 million of proceeds from the exercise of stock options and common stock warrants and $1.8 million of proceeds from the issuance of common stock in connection with the employee stock purchase plan.

Current wording

Cash used in financing activities was $137.1 million for the three months ended June 30, 2025, which primarily consisted of common stock repurchases of $122.4 million, $5.2 million of payments for contingent consideration related to the AMiON acquisition, and $11.9 million of taxes paid related to the net share settlement of equity awards. These payments were partially offset by $2.4 million of proceeds from the exercise of stock options and common stock warrants.

Previous wording

There have been no material changes to our critical accounting policies and estimates during the three and nine months ended December 31, 2025 as compared to those described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and filed with the SEC on May 20, 2025.

Current wording

There have been no material changes to our critical accounting policies and estimates during the three months ended June 30, 2026 as compared to those described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and filed with the SEC on May 19, 2026.