Fastly, Inc.

Previous wording

For the three months ended June 30, 2025 and 2024, our revenue was $148.7 million and $132.4 million, respectively, an increase of 12%. For the six months ended June 30, 2025 and 2024, our revenue was $293.2 million and $265.9 million, respectively, an increase of 10%. For the three months ended June 30, 2025 and 2024, we incurred a net loss of $37.5 million and $43.7 million, respectively. For the six months ended June 30, 2025 and 2024, we incurred a net loss of $76.7 million and $87.2 million, respectively.

Current wording

For the three months ended September 30, 2025 and 2024, our revenue was $158.2 million and $137.2 million, respectively, an increase of 15%. For the nine months ended September 30, 2025 and 2024, our revenue was $451.4 million and $403.1 million, respectively, an increase of 12%. For the three months ended September 30, 2025 and 2024, we incurred a net loss of $29.5 million and $38.0 million, respectively. For the nine months ended September 30, 2025 and 2024, we incurred a net loss of $106.2 million and $125.2 million, respectively.

Previous wording

Our 10 largest customers generated an aggregate of 32% and 37% of our revenue in the trailing 12 months ended June 30, 2025 and 2024, respectively.

Current wording

Our 10 largest customers generated an aggregate of 32% and 35% of our revenue in the trailing 12 months ended September 30, 2025 and 2024, respectively.

Previous wording

No single customer accounted for more than 10% of our revenue for both the three and six months ended June 30, 2025 and 2024. Affiliated customers that are business units of a single company generated an aggregate of 10% of our revenue for the three months ended June 30, 2025. No affiliated customers that are business units of a single company generated more than 10% of our revenue for the six months ended June 30, 2025. Affiliated customers that are business units of a single company in the streaming entertainment space generated an aggregate of 11% of our revenue for both the three and six months ended June 30, 2024.

Current wording

No single customer accounted for more than 10% of our revenue for each of the three and nine months ended September 30, 2025 and 2024. Affiliated customers that are business units of a single company generated an aggregate of 10% of our revenue for the three months ended September 30, 2025 and less than 10% our of revenue for the nine months ended September 30, 2025. Affiliated customers that are business units of a single company in the streaming entertainment space generated an aggregate of less than 10% of our revenue for the three months ended September 30, 2024 and 10% of our revenue for the nine months ended September 30, 2024.

Previous wording

In addition, we cannot be certain what actions the United States or another country’s government may take with respect to certain of our customers that may adversely affect our ability to do business with our customers that operate in China, target China as a market or that have strong business ties to China. And any such governmental action could have a negative impact on our business. In April 2024, under the prior administration, a bill was signed into law that would effectively ban TikTok in the United States if ByteDance, its China-based parent company, does not sell its stake in TikTok within a set time frame. The current administration issued an executive order on January 20, 2025 instructing the Attorney General not to enforce the law or impose any penalties against any entity for noncompliance for a period of 75 days and to provide written guidance as to how the law will be implemented. As of June 19, 2025, the current administration extended the prior non-enforcement instructions until September 17, 2025. TikTok was one of our largest customers for the three and six months ended June 30, 2025 and remains a customer of ours. While the full impact of the legislation is unknown, it could eventually lead to a reduction in TikTok’s United States traffic levels which could have a negative impact on our business. We do not know whether or how ByteDance might restructure its business and how that may impact our traffic levels.

Current wording

In addition, we cannot be certain what actions the United States or another country’s government may take with respect to certain of our customers that may adversely affect our ability to do business with our customers that operate in China, target China as a market or that have strong business ties to China. And any such governmental action could have a negative impact on our business. In April 2024, under the prior administration, a bill was signed into law that would effectively ban TikTok in the United States if ByteDance, its China-based parent company, does not sell its stake in TikTok within a set time frame. The current administration issued an executive order on January 20, 2025 instructing the Attorney General not to enforce the law or impose any penalties against any entity for noncompliance for a period of 75 days and to provide written guidance as to how the law will be implemented. On June 19, 2025, the current administration extended the prior non-enforcement instructions until September 17, 2025. As of September 25, 2025, the current administration further extended the non-enforcement instructions until January 23, 2026 in consideration of a proposed divestiture of TikTok's United States operations. TikTok was one of our largest customers for the three and nine months ended September 30, 2025 and remains a customer of ours. While the full impact of the legislation is unknown, it could eventually lead to a reduction in TikTok’s United States traffic levels which could have a negative impact on our business. We do not know whether or how ByteDance might restructure its business, including under the proposed divestiture, and how that may impact our traffic levels.

Previous wording

We are closely monitoring the unfolding events of the Russian invasion of Ukraine, as well as the more recent hostilities in the Middle East, and their global impacts. While the conflicts are still evolving and the outcomes remain highly uncertain, we do not believe the Russia-Ukraine, Israel-Hamas, or other conflicts will have a material impact on our business and results of operations. We do not have Points of Presence (“POPs”) in Russia, Ukraine, or Israel. However, some threat actors now engage and are expected to continue to engage in cyber-attacks, including without limitation nation-state actors for geopolitical reasons and in conjunction with military conflicts and defense activities. During times of war and other major conflicts, we, the third parties upon which we rely, and our customers may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our goods and services. If such conflicts continue or worsen, leading to greater global economic disruptions and uncertainty, our business and results of operations could be materially impacted.

Current wording

We are closely monitoring the conflict between Russia and Ukraine, as well as the more recent hostilities in the Middle East, and their global impacts. While the conflicts are still evolving and the outcomes remain highly uncertain, we do not believe the Russia-Ukraine, Israel-Hamas, or other conflicts will have a material impact on our business and results of operations. We do not have Points of Presence (“POPs”) in Russia, Ukraine, or Israel. However, some threat actors now engage and are expected to continue to engage in cyber-attacks, including, without limitation, nation-state actors for geopolitical reasons and in conjunction with military conflicts and defense activities. During times of war and other major conflicts, we, the third parties upon which we rely, and our customers may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our goods and services. If such conflicts continue or worsen, leading to greater global economic disruptions and uncertainty, our business and results of operations could be materially impacted.

Previous wording

We must continue to invest in our platform and network infrastructure to maintain our position in the market. We expect our revenue growth to be dependent on an expanding customer base and continued adoption of our edge cloud delivery, security, and other products and services. In anticipation of winning new customers and staying ahead of our customers’ needs, we plan to continue to invest in order to expand the scale and capacity of our software-defined modern network. This could result in increased network service provider fees, which could adversely affect our gross margins if we are unable to offset these costs with revenue from new customers and increase revenue from existing customers. Our customers require constant innovation within their own organizations and expect the same from us. Therefore, we will continue to invest in resources to enhance our development capabilities and introduce new products and features on our platform. We believe that investment in research and development will contribute to our long-term growth but may also negatively impact our short-term profitability. For the three months ended June 30, 2025 and 2024, our research and development expenses as a percentage of revenue were 28% and 27%, respectively. For the six months ended June 30, 2025 and 2024, our research and development expenses as a percentage of revenue were 27% and 28%, respectively. Our research and development expenses in each period are impacted by the amount of software development costs that meet the criteria for capitalization. We may also seek to acquire or invest in businesses, products, or technologies that we believe could complement or expand our platform, enhance our technical capabilities, or otherwise offer growth opportunities.

Current wording

We must continue to invest in our platform and network infrastructure to maintain our position in the market. We expect our revenue growth to be dependent on an expanding customer base and continued adoption of our edge cloud delivery, security, and other products and services. In anticipation of winning new customers and staying ahead of our customers’ needs, we plan to continue to invest in order to expand the scale and capacity of our software-defined modern network. This could result in increased network service provider fees, which could adversely affect our gross margins if we are unable to offset these costs with revenue from new customers and increase revenue from existing customers. Our customers require constant innovation within their own organizations and expect the same from us. Therefore, we will continue to invest in resources to enhance our development capabilities and introduce new products and features on our platform. We believe that investment in research and development will contribute to our long-term growth but may also negatively impact our short-term profitability. For the three months ended September 30, 2025 and 2024, our research and development expenses as a percentage of revenue were 26% and 23%, respectively. For the nine months ended September 30, 2025 and 2024, our research and development expenses as a percentage of revenue were 27% and 26%, respectively. Our research and development expenses in each period are impacted by the amount of software development costs that meet the criteria for capitalization. We may also seek to acquire or invest in businesses, products, or technologies that we believe could complement or expand our platform, enhance our technical capabilities, or otherwise offer growth opportunities.

Previous wording

In addition to our paying customers, we also have trial, developer, nonprofit and open source programs, and other non-paying accounts that are excluded from our customer count metric. We operate globally and as a result, the success of our ability to retain our customers is also affected by general economic and market conditions around the world. As of June 30, 2025 and 2024, we had 3,097 and 3,295 customers, respectively.

Current wording

In addition to our paying customers, we also have trial, developer, nonprofit and open source programs, and other non-paying accounts that are excluded from our customer count metric. We operate globally and as a result, the success of our ability to retain our customers is also affected by general economic and market conditions around the world. As of September 30, 2025 and 2024, we had 3,223 and 3,638 customers, respectively.

Previous wording

Historically our revenue has been driven primarily by a subset of our customers, our enterprise customers, who have leveraged our platform substantially from a usage standpoint. We believe that the recruitment and cultivation of enterprise customers is critical to our long-term success. Our enterprise customer count is defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue we recognized for each customer in the current quarter and multiplying it by four. As of June 30, 2025, we had 622 of such enterprise customers which generated 94% of the total annualized current quarter revenue for our total customers for the three months ended June 30, 2025. As of June 30, 2024, we had 601 of such enterprise customers which generated 91% of the total annualized current quarter revenue for our total customers for the three months ended June 30, 2024.

Current wording

Historically our revenue has been driven primarily by a subset of our customers, our enterprise customers, who have leveraged our platform substantially from a usage standpoint. We believe that the recruitment and cultivation of enterprise customers is critical to our long-term success. Our enterprise customer count is defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue we recognized for each customer in the current quarter and multiplying it by four. As of September 30, 2025, we had 627 of such enterprise customers which generated 94% of the total annualized current quarter revenue for our total customers for the three months ended September 30, 2025. As of September 30, 2024, we had 576 of such enterprise customers which generated 92% of the total annualized current quarter revenue for our total customers for the three months ended September 30, 2024.

Previous wording

Our LTM NRR removes some of the volatility that is inherent in a usage-based business model from the measurement of the NRR metric. We calculate LTM NRR by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. For the trailing twelve months ended June 30, 2025 and 2024 our LTM NRR was 104.4% and 109.6%, respectively.

Current wording

Our LTM NRR removes some of the volatility that is inherent in a usage-based business model from the measurement of the NRR metric. We calculate LTM NRR by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. For the trailing twelve months ended September 30, 2025 and 2024 our LTM NRR was 105.8% and 105.3%, respectively.

Previous wording

RPO represent future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. As of June 30, 2025, the aggregate amount of the transaction price in our contracts allocated to RPO that were unsatisfied or partially unsatisfied was $315.1 million.

Current wording

RPO represent future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. As of September 30, 2025, the aggregate amount of the transaction price in our contracts allocated to RPO that were unsatisfied or partially unsatisfied was $268.0 million.

Previous wording

We report our revenue by three product lines: Network Services, Security, and Other. Network Services include solutions designed to improve performance of websites, apps, application programming interfaces (“APIs”), and digital media. Security includes products designed to protect websites, apps, APIs and users. Other includes Compute solutions that allow developers to build and deploy modern web applications on our edge cloud platform, and Observability solutions that provide real-time logs, data and metrics streamed from our edge platform for actionable insights.

Current wording

We present our disaggregated revenue by three product lines: Network Services, Security, and Other. Network Services include solutions designed to improve performance of websites, apps, application programming interfaces (“APIs”), and digital media. Security includes products designed to protect websites, apps, APIs and users. Other includes Compute solutions that allow developers to build and deploy modern web applications on our edge cloud platform, and Observability solutions that provide real-time logs, data and metrics streamed from our edge platform for actionable insights.

Previous wording

In both the three and six months ended June 30, 2025 and 2024, approximately 95% of our revenue was driven by usage on our platform. Revenue was primarily from existing customers, as revenue from new customers contributed less than 10% of our revenue. The proportion of the revenue contribution between new and existing customers is consistent with prior periods and typical customer behavior as customers tend to contribute more revenue over time as their use of the platform increases. The remainder of our revenue was generated by our other products and services, including support and professional services.

Current wording

In both the three and nine months ended September 30, 2025, approximately 96% of our revenue was driven by usage on our platform. In both the three and nine months ended September 30, 2024, approximately 95% of our revenue was driven by usage on our platform. Revenue was primarily from existing customers, as revenue from new customers contributed less than 10% of our revenue. The proportion of the revenue contribution between new and existing customers is consistent with prior periods and typical customer behavior as customers tend to contribute more revenue over time as their use of the platform increases. The remainder of our revenue was generated by our other products and services, including support and professional services.

Previous wording

Network Services revenue was $114.9 million for the three months ended June 30, 2025, compared to $104.2 million for the three months ended June 30, 2024, an increase of $10.7 million, or 10%. The increase in Network Services revenue was primarily driven by growth in usage from existing customers. Security revenue was $29.3 million for the three months ended June 30, 2025, compared to $25.4 million for the three months ended June 30, 2024, an increase of $3.9 million, or 15%. The increase in Security revenue was primarily driven by an increase in Next-Gen WAF revenue. Other revenue was $4.5 million for the three months ended June 30, 2025, compared to $2.8 million for the three months ended June 30, 2024, an increase of $1.7 million, or 60%. The increase in Other revenue was primarily driven by further adoption of our Compute solutions.

Current wording

Network Services revenue was $118.8 million for the three months ended September 30, 2025, compared to $107.4 million for the three months ended September 30, 2024, an increase of $11.4 million, or 11%. The increase in Network Services revenue was primarily driven by growth in usage from existing customers. Security revenue was $34.0 million for the three months ended September 30, 2025, compared to $26.2 million for the three months ended September 30, 2024, an increase of $7.8 million, or 30%. The increase in Security revenue was primarily driven by an increase in Next-Gen WAF revenue. Other revenue was $5.4 million for the three months ended September 30, 2025, compared to $3.6 million for the three months ended September 30, 2024, an increase of $1.8 million, or 51%. The increase in Other revenue was primarily driven by further adoption of our Compute solutions.

Previous wording

Network Services revenue was $228.1 million for the six months ended June 30, 2025, compared to $210.2 million for the six months ended June 30, 2024, an increase of $17.9 million, or 9%. The increase in Network Services revenue was primarily driven by growth in usage from existing customers. Security revenue was $55.7 million for the six months ended June 30, 2025, compared to $50.0 million for the six months ended June 30, 2024, an increase of $5.7 million, or 11%. The increase in Security revenue was primarily driven by an increase in Next-Gen WAF revenue. Other revenue was $9.4 million for the six months ended June 30, 2025, compared to $5.8 million for the six months ended June 30, 2024, an increase of $3.6 million, or 63%. The increase in Other revenue was primarily driven by further adoption of our Compute solutions.

Current wording

Network Services revenue was $346.9 million for the nine months ended September 30, 2025, compared to $317.6 million for the nine months ended September 30, 2024, an increase of $29.3 million, or 9%. The increase in Network Services revenue was primarily driven by growth in usage from existing customers. Security revenue was $89.7 million for the nine months ended September 30, 2025, compared to $76.2 million for the nine months ended September 30, 2024, an increase of $13.5 million, or 18%. The increase in Security revenue was primarily driven by an increase in Next-Gen WAF revenue. Other revenue was $14.8 million for the nine months ended September 30, 2025, compared to $9.4 million for the nine months ended September 30, 2024, an increase of $5.4 million, or 58%. The increase in Other revenue was primarily driven by further adoption of our Compute solutions.

Previous wording

U.S. revenue was $112.8 million, or 76% of revenue, for the three months ended June 30, 2025, compared to $98.0 million, or 74% of revenue, for the three months ended June 30, 2024. This represents an increase of $14.8 million, or 15%. International revenue was $35.9 million, or 24% of revenue, for the three months ended June 30, 2025, compared to $34.4 million, or 26%, of revenue for the three months ended June 30, 2024. This represents an increase of $1.5 million, or 4%.

Current wording

U.S. revenue was $114.2 million, or 72% of revenue, for the three months ended September 30, 2025, compared to $104.5 million, or 76% of revenue, for the three months ended September 30, 2024. This represents an increase of $9.7 million, or 9%. International revenue was $44.1 million, or 28% of revenue, for the three months ended September 30, 2025, compared to $32.8 million, or 24%, of revenue for the three months ended September 30, 2024. This represents an increase of $11.3 million, or 35%.

Previous wording

U.S. revenue was $221.5 million, or 76% of revenue, for the six months ended June 30, 2025, compared to $196.5 million, or 74% of revenue, for the six months ended June 30, 2024. This represents an increase of $25.0 million, or 13%. International revenue was $71.6 million, or 24% of revenue, for the six months ended June 30, 2025, compared to $69.4 million, or 26%, of revenue for the six months ended June 30, 2024. This represents an increase of $2.2 million, or 3%.

Current wording

U.S. revenue was $337.5 million, or 75% of revenue, for the nine months ended September 30, 2025, compared to $300.9 million, or 75% of revenue, for the nine months ended September 30, 2024. This represents an increase of $36.6 million, or 12%. International revenue was $113.9 million, or 25% of revenue, for the nine months ended September 30, 2025, compared to $102.2 million, or 25%, of revenue for the nine months ended September 30, 2024. This represents an increase of $11.7 million, or 11%.

Previous wording

Cost of revenue was $135.3 million for the six months ended June 30, 2025 compared to $119.8 million for the six months ended June 30, 2024, an increase of $15.5 million, or 13%. The increase was primarily due to a $10.0 million increase in bandwidth costs, a $3.7 million increase in depreciation and amortization expense as a result of increased investments in our platform, a $2.2 million increase in software costs as well a $1.2 million increase in colocation costs. The increase was partially offset by a $1.6 million decrease in personnel-related costs.

Current wording

Cost of revenue was $65.9 million for the three months ended September 30, 2025 compared to $62.5 million for the three months ended September 30, 2024, an increase of $3.4 million, or 5%. The increase was primarily due to a $2.0 million increase in depreciation and amortization as a result of increased investments in our platform, a $1.4 million increase in colocation costs, a $1.0 million increase in software costs, as well as a $0.9 million increase in stock-based compensation expense. The increase was partially offset by a $0.7 million decrease in bandwidth costs, a $0.4 million decrease in equipment purchases, a $0.4 million decrease in maintenance costs, as well as a $0.3 million decrease in personnel-related costs.

Previous wording

Cost of revenue was $67.6 million for the three months ended June 30, 2025 compared to $59.5 million for the three months ended June 30, 2024, an increase of $8.1 million, or 14%. The increase was primarily due to a $4.0 million increase in bandwidth costs, a $1.7 million increase in depreciation and amortization expense as a result of increased investments in our platform, as well as a $1.2 million increase in software costs. The increase was also due to a $1.0 million increase in colocation costs and a $0.5 million increase in stock-based compensation expense. The increase was partially offset by a $0.5 million decrease in personnel-related costs.

Current wording

Cost of revenue was $201.2 million for the nine months ended September 30, 2025 compared to $182.2 million for the nine months ended September 30, 2024, an increase of $19.0 million, or 10%. The increase was primarily due to a $9.3 million increase in bandwidth costs and a $5.7 million increase in depreciation and amortization as a result of increased investments in our platform. The increase was also due to a $3.3 million increase in software costs, a $2.6 million increase in colocation costs, as well as a $0.6 million increase in stock-based compensation expense. The increase was partially offset by a $1.9 million decrease in personnel-related costs, a $0.7 million decrease in other network costs, as well as a $0.4 million decrease in maintenance costs.

Previous wording

Gross profit was$81.1 million for the three months ended June 30, 2025 compared to $72.9 million for the three months ended June 30, 2024, an increase of $8.2 million, or 11%. Gross margin was 55% for both the three months ended June 30, 2025 and June 30, 2024. Our flat gross margin was driven by consistent revenue growth during thethree months ended June 30, 2025 with comparable increases in the costs incurred to support the growth of our network.

Current wording

Gross profit was$250.2 million for thenine months ended September 30, 2025 compared to $220.9 million for the nine months ended September 30, 2024, an increase of $29.3 million, or 13%. Gross margin was 55% for both the nine months ended September 30, 2025 and 2024. Our flat gross margin was driven by consistent revenue growth during the nine months ended September 30, 2025 with comparable increases in the costs incurred to support the growth of our network.

Previous wording

Sales and marketing expenses were $51.1 million for the three months ended June 30, 2025 compared to $53.0 million for the three months ended June 30, 2024, a decrease of $1.9 million, or 4%. The decrease was primarily due to a $2.5 million decrease in personnel-related costs including commission expense. The decrease was partially offset by a $1.1 million increase in stock-based compensation expenses.

Current wording

Sales and marketing expenses were $50.0 million for the three months ended September 30, 2025 compared to $46.0 million for the three months ended September 30, 2024, an increase of $4.0 million, or 9%. The increase was primarily due to a $2.4 million increase in personnel-related costs including commission expense, a $1.6 million increase in stock-based compensation expenses, as well as a $0.7 million increase in marketing expenses. The increase was partially offset by a $0.3 million decrease in software costs and a $0.2 million decrease in professional fees.

Previous wording

Sales and marketing expenses were $100.4 million for the six months ended June 30, 2025 compared to $102.6 million for the six months ended June 30, 2024, a decrease of $2.2 million, or 2%. The decrease was primarily due to a $2.5 million decrease in personnel-related costs including commission expense, as well as a $0.3 million decrease in third-party commissions costs. The decrease was partially offset by a $0.9 million increase in travel and entertainment expenses.

Current wording

Sales and marketing expenses were $150.4 million for the nine months ended September 30, 2025 compared to $148.6 million for the nine months ended September 30, 2024, an increase of $1.8 million, or 1%. The increase was primarily due to a $1.6 million increase in stock-based compensation expenses, a $0.8 million increase in travel and entertainment expenses, as well as a $0.6 million increase in marketing expenses. The increase was partially offset by a $0.4 million decrease in third party commissions, a $0.3 million decrease in software costs, as well as a $0.3 million decrease in corporate costs.

Previous wording

Research and development expenses were $42.2 million for the three months ended June 30, 2025 compared to $35.1 million for the three months ended June 30, 2024, an increase of $7.1 million, or 20%. The increase was primarily due to a $3.8 million increase in stock-based compensation expenses, a $2.5 million decrease in capitalized software development costs, a $0.6 million increase in personnel-related costs as well as a $0.5 million increase in software costs.

Current wording

General and administrative costs were $82.3 million for the nine months ended September 30, 2025 compared to $87.2 million for the nine months ended September 30, 2024, a decrease of $4.9 million, or 6%. The decrease was primarily due to a $7.1 million decrease in stock-based compensation expenses, a $2.1 million decrease in personnel-related costs, as well as a $0.4 million decrease in equipment purchases. The decrease was partially offset by a $2.2 million increase in professional services fees, a $1.0 million increase in executive transition costs, a $0.6 million increase in corporate costs, a $0.8 million increase in provision for credit losses, as well as a $0.5 million increase in the sales and use tax reserve.

Previous wording

During the three and six months ended June 30, 2025, the Company recognized an impairment expense of $0.4 million. The impairment expense related to non-recurring write-off charges for intangible assets no longer in use as well as an abandoned internal-use software project.

Current wording

During the nine months ended September 30, 2025, the Company recognized an impairment expense of $0.4 million. The impairment expense related to non-recurring write-off charges for intangible assets no longer in use as well as an abandoned internal-use software project. The Company did not recognize any expense during the three months ended September 30, 2025.

Previous wording

During the three and six months ended June 30, 2024, the Company recognized an impairment expense of $3.1 million. The impairment expense related to non-recurring write-off charges for an abandoned internal-use software project as well as right-of-use assets which we no longer need.

Current wording

During the three months ended September 30, 2024, the Company recognized an impairment expense of $0.6 million related to the write-off of certain equipment. During the nine months ended September 30, 2024 we recognized an impairment charge of $3.7 million related to write-offs of certain equipment, an internal-use software project as well as right-of-use assets.

Previous wording

Interest income was $3.1 million for the three months ended June 30, 2025 compared to $3.9 million for the three months ended June 30, 2024, a decrease of $0.8 million, or 22%. This decrease was primarily driven by a decrease in interest rates and investment balance.

Current wording

Interest income was $3.1 million for the three months ended September 30, 2025 compared to $3.8 million for the three months ended September 30, 2024, a decrease of $0.7 million, or 19%. This decrease was primarily driven by a decrease in interest rates and investment balance.

Previous wording

Interest income was $6.1 million for the six months ended June 30, 2025 compared to $7.8 million for the six months ended June 30, 2024, a decrease of $1.7 million, or 22%. This decrease was primarily driven by a decrease in interest rates and investment balance.

Current wording

Interest income was $9.1 million for the nine months ended September 30, 2025 compared to $11.6 million for the nine months ended September 30, 2024, a decrease of $2.5 million, or 21%. This decrease was primarily driven by a decrease in interest rates and investment balance.

Previous wording

Interest expense was $3.2 million for the three months ended June 30, 2025 compared to $0.5 million for the three months ended June 30, 2024, an increase of $2.7 million, or 582%. Interest expense increased primarily due to the coupon interest of the 2028 Notes issued in December 2024.

Current wording

Interest expense was $3.2 million for the three months ended September 30, 2025 compared to $0.5 million for the three months ended September 30, 2024, an increase of $2.7 million, or 568%. Interest expense increased primarily due to the coupon interest of the 2028 Notes issued in December 2024.

Previous wording

Interest expense was $6.3 million for the six months ended June 30, 2025 compared to $1.0 million for the six months ended June 30, 2024, an increase of $5.3 million, or 508%. Interest expense increased primarily due to the coupon interest of the 2028 Notes issued in December 2024.

Current wording

Interest expense was $9.5 million for the nine months ended September 30, 2025 compared to $1.5 million for the nine months ended September 30, 2024, an increase of $8.0 million, or 527%. Interest expense increased primarily due to the coupon interest of the 2028 Notes issued in December 2024.

Previous wording

Other income was less than $0.1 million for the three months ended June 30, 2025 compared to $0.2 million for the three months ended June 30, 2024, a decrease of $0.2 million. The change was mainly driven by our foreign currency transaction gains and losses between the periods.

Current wording

Other expense was less than $0.1 million for the three months ended September 30, 2025 compared to $0.3 million for the three months ended September 30, 2024, a decrease of $0.3 million. The change was mainly driven by our foreign currency transaction gains and losses between the periods.

Previous wording

Other expense was less than $0.1 million for the six months ended June 30, 2025 compared to other income of $0.1 million for the six months ended June 30, 2024, a decrease of $0.1 million. The change was mainly driven by our foreign currency transaction gains and losses between the periods.

Current wording

Other expense was less than $0.1 million for the nine months ended September 30, 2025 compared to $0.2 million for the nine months ended September 30, 2024, a decrease of $0.1 million. The change was mainly driven by our foreign currency transaction gains and losses between the periods.

Previous wording

Income tax expense was $0.6 million for the three months ended June 30, 2025 compared to $0.7 million for the three months ended June 30, 2024, a decrease of $0.1 million. The Company continues to maintain a full valuation allowance in the U.S. and the tax expense for the periods were primarily due to foreign tax expense.

Current wording

Income tax expense was $0.6 million for the three months ended September 30, 2025 compared to $0.5 million for the three months ended September 30, 2024, an increase of $0.1 million. The Company continues to maintain a full valuation allowance in the U.S. and the tax expense for the periods were primarily due to foreign tax expense.

Previous wording

Income tax expense was $1.2 million for the six months ended June 30, 2025 compared to $1.0 million for the six months ended June 30, 2024, an increase of $0.2 million. The Company continues to maintain a full valuation allowance in the U.S. and the tax expense for the periods were primarily due to foreign tax expense.

Current wording

Income tax expense was $1.8 million for the nine months ended September 30, 2025 compared to $1.5 million for the nine months ended September 30, 2024, an increase of $0.3 million. The Company continues to maintain a full valuation allowance in the U.S. and the tax expense for the periods were primarily due to foreign tax expense.

Previous wording

As of June 30, 2025, we had cash, cash equivalents and marketable securities, totaling $321.2 million. Our cash, cash equivalents, and marketable securities primarily consisted of money market funds, investment-grade commercial paper, corporate notes and bonds, U.S. treasury securities, municipal bonds, and certificates of deposit. As of June 30, 2025, we did not have any marketable securities classified as non-current.

Current wording

As of September 30, 2025, we had cash, cash equivalents and marketable securities, totaling $342.9 million. Our cash, cash equivalents, and marketable securities primarily consisted of money market funds, investment-grade commercial paper, corporate notes and bonds, U.S. treasury securities, municipal bonds, agency bonds, and certificates of deposit. As of September 30, 2025, we did not have any marketable securities classified as non-current.

Previous wording

Interest payments on outstanding borrowings are due on the last day of each interest period. The Credit Agreement has a commitment fee on the unused portion of the borrowing commitment, which is payable on the last day of each calendar quarter at a rate per annum of 0.20% to 0.25% depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. The Credit Agreement contains a financial covenant that requires us to maintain a consolidated adjusted quick ratio of at least 1.25 to 1:00 tested on a quarterly basis as well as a springing revenue growth covenant for certain periods if our consolidated adjusted quick ratio falls below 1.75 to 1:00 on the last day of any fiscal quarter. As of June 30, 2025, we were in compliance with these covenants and we expect to continue to be in compliance for at least the next 12 months. During the six months ended June 30, 2025 and 2024, no amounts were drawn down on the Credit Agreement.

Current wording

Interest payments on outstanding borrowings are due on the last day of each interest period. The Credit Agreement has a commitment fee on the unused portion of the borrowing commitment, which is payable on the last day of each calendar quarter at a rate per annum of 0.20% to 0.25% depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. The Credit Agreement contains a financial covenant that requires us to maintain a consolidated adjusted quick ratio of at least 1.25 to 1:00 tested on a quarterly basis as well as a springing revenue growth covenant for certain periods if our consolidated adjusted quick ratio falls below 1.75 to 1:00 on the last day of any fiscal quarter. As of September 30, 2025, we were in compliance with these covenants and we expect to continue to be in compliance for at least the next 12 months. During the nine months ended September 30, 2025 and 2024, no amounts were drawn down on the Credit Agreement.

Previous wording

For the six months ended June 30, 2025, cash provided by operating activities was $43.1 million, consisting primarily of our net loss of $76.7 million, adjusted for non-cash items of $114.7 million, and net cash flows used in operating assets and liabilities of $5.0 million. The main drivers of the changes in operating assets and liabilities werea $17.9 million increase in other liabilities, a $6.0 million increase in accounts payable due to timing of payments and a $2.3 million increase in prepaid expenses and other current assets. This was offset by a $8.2 million decrease in other assets, $7.9 million of net operating lease payments, a net decrease of accounts receivable of $3.3 million, primarily due to the timing of cash receipts from our customers and a $1.8 million decrease in accrued expenses due to timing of payments.

Current wording

For the nine months ended September 30, 2025, cash provided by operating activities was $72.0 million, consisting primarily of our net loss of $106.2 million, adjusted for non-cash items of $178.8 million, and net cash flows used in operating assets and liabilities of $0.7 million. The main drivers of the changes in operating assets and liabilities were a $18.8 million increase in other liabilities, an increase of accounts receivable of $3.6 million, a $3.3 million increase in accounts payable and a $0.8 million increase in prepaid expenses and other current assets. This was offset by a $13.0 million decrease in other assets, $13.7 million of operating lease payments, and a $0.5 million decrease in accrued expenses.

Previous wording

For the six months ended June 30, 2024, cash provided by operating activities was $6.2 million, consisting primarily of our net loss of $87.2 million, adjusted for non-cash items of $118.2 million, and net cash flows used in operating assets and liabilities of $24.8 million. The main drivers of the changes in operating assets and liabilities were a$12.0 million decrease in operating lease liabilities, a $6.8 million decrease in accrued expenses due to timing of payments, a $5.0 million decrease in other assets, a $1.2 million decrease in other liabilities as well as a $4.8 million decrease in prepaid expenses and other current assets. This was offset by a net increase of accounts receivable of $5.3 million, primarily due to the growth of our business and the timing of cash receipts from our customers.

Current wording

For the nine months ended September 30, 2024, cash provided by operating activities was $11.2 million, consisting primarily of our net loss of $125.2 million, adjusted for non-cash items of $174.1 million, and net cash flows used in operating assets and liabilities of $37.8 million. The main drivers of the changes in operating assets and liabilities were$19.3 million of operating lease payments, a $4.1 million decrease in accrued expenses due to timing of payments, a $7.7 million decrease in other assets, a $4.9 million decrease in other liabilities, as well as a $7.4 million decrease in prepaid expenses and other current assets. This was offset by a $4.5 million increase in accounts payable due to timing of payments, as well as a net increase of accounts receivable of $1.3 million, primarily due to the growth of our business and the timing of cash receipts from our customers.

Previous wording

For the six months ended June 30, 2025, cash used in investing activities was $248.8 million, primarily consisting of $272.9 million purchases of marketable securities, $12.5 million of payments related to purchases of property and equipment to expand our network, and $9.3 million of additions to capitalized internal-use software. The cash outflow was partially offset by $45.8 million of maturities of marketable securities.

Current wording

For the nine months ended September 30, 2025, cash used in investing activities was $249.2 million, primarily consisting of $352.1 million purchases of marketable securities, $18.5 million of payments related to purchases of property and equipment to expand our network, and $14.0 million of additions to capitalized internal-use software. The cash outflow was partially offset by $117.2 million of maturities of marketable securities and $18.1 million from the sale of marketable securities.

Previous wording

For the six months ended June 30, 2024, cash provided by investing activities was $41.7 million, primarily consisting of $176.7 million of maturities and sales of marketable securities. The cash inflow was partially offset by $117.2 million purchases of marketable securities, $13.7 million of additions to capitalized internal-use software and $3.4 million of payments related to purchases of property and equipment to expand our network.

Current wording

For the nine months ended September 30, 2024, cash provided by investing activities was $108.0 million, primarily consisting of $289.7 million of maturities and sales of marketable securities. The cash inflow was partially offset by $155.1 million purchases of marketable securities, $20.5 million of additions to capitalized internal-use software, $5.4 million of payments related to purchases of property and equipment to expand our network and $0.8 million related to advance purchases of property and equipment.

Previous wording

For the six months ended June 30, 2025, cash provided by financing activities was $1.8 million, primarily consisting of $3.4 million in proceeds from the employee stock purchase plan (“ESPP”) and $0.7 million in proceeds from stock option exercises by our employees. The cash inflow was partially offset by $2.2 million of finance lease payments.

Current wording

For the nine months ended September 30, 2025, cash provided by financing activities was $3.9 million, primarily consisting of $5.5 million in proceeds from the employee stock purchase plan and $0.8 million in proceeds from stock option exercises by our employees. The cash inflow was partially offset by $2.3 million of finance lease payments.

Previous wording

For the six months ended June 30, 2024, cash used in financing activities was $8.7 million, primarily consisting of $9.1 million of finance lease payments as well as a $3.8 million payment of deferred consideration for business acquisition. The cash outflow was partially offset by inflow of $3.9 million in proceeds from the ESPP and $0.3 million in proceeds from stock option exercises by our employees.

Current wording

For the nine months ended September 30, 2024, cash used in financing activities was $9.8 million, primarily consisting of $12.4 million of finance lease payments as well as a $3.8 million payment of deferred consideration for business acquisition. The cash outflow was partially offset by inflow of $6.1 million in proceeds from the employee stock purchase plan and $0.3 million in proceeds from stock option exercises by our employees.