ALKAMI TECHNOLOGY, INC.

Previous wording

•our ability to raise necessary funds to repurchase the 2030 Convertible Notes (as defined below) or to pay any cash amounts due upon their maturity or conversion of the 2030 Convertible Notes and dilution to our common stock upon the conversion of the 2030 Convertible Notes;

Current wording

•our ability to raise necessary funds to repurchase the 2030 Convertible Notes or to pay any cash amounts due upon their maturity or conversion of the 2030 Convertible Notes and dilution to our common stock upon the conversion of the 2030 Convertible Notes;

Previous wording

•counterparty risk with respect to the Capped Calls (as defined below);

Current wording

•counterparty risk with respect to the Capped Calls;

Previous wording

•Integrations: Scalability and extensibility driven by more than 350 real-time integrations to back-office systems and third-party fintech solutions as of June 30, 2026, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.

Current wording

•Integrations: Scalability and extensibility driven by more than 400 real-time integrations to back-office systems and third-party fintech solutions as of September 30, 2026, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.

Previous wording

For the three months ended June 30, 2026 and 2025, our total revenues were $129.8 million and $112.1 million, respectively, representing a 15.9% increase period-over-period. For the six months ended June 30, 2026 and 2025, our total revenues were $256.0 million and $209.9 million, respectively, representing an increase of 22.0% period-over-period. SaaS subscription revenues, as further described below, represented 94.7% and 95.2% of total revenues for the three and six months ended June 30, 2026, respectively, and 94.5% and 94.7% of total revenues for the three and six months ended June 30, 2025, respectively. We incurred net losses of $8.9 million and $18.9 million for the three and six months ended June 30, 2026, respectively, and net losses of $13.6 million and $21.4 million for the three and six months ended June 30, 2025, respectively, largely on the basis of significant continued investment in sales, marketing, product development and post-sales client activities.

Current wording

For the three months ended September 30, 2026 and 2025, our total revenues were $134.9 million and $113.0 million, respectively, representing a 19.4% increase period-over-period. For the nine months ended September 30, 2026 and 2025, our total revenues were $390.9 million and $322.8 million, respectively, representing an increase of 21.1% period-over-period. SaaS subscription revenues, as further described below, represented 95.7% and 95.4% of total revenues for the three and nine months ended September 30, 2026, respectively, and 95.5% and 94.9% of total revenues for the three and nine months ended September 30, 2025, respectively. We incurred net losses of $6.7 million and $25.6 million for the three and nine months ended September 30, 2026, respectively, and net losses of $14.8 million and $36.2 million for the three and nine months ended September 30, 2025, respectively, largely on the basis of significant continued investment in sales, marketing, product development and post-sales client activities.

Previous wording

Growing our FI Client Base. A key part of our strategy is to grow our FI client base. As of June 30, 2026, we served 313 FIs through the Platform and more than 1,000 clients when including unique clients only subscribing to one or a combination of ACH Alert, Segmint, or MANTL products. Each of our digital banking client wins is a competitive takeaway, and as such, our historical ability to grow our client base has been a function of product depth, technological excellence and a sales and marketing function able to match our solutions with the strategic objectives of our clients. Our future success will significantly depend on our ability to continue to grow our FI client base through competitive wins.

Current wording

Growing our FI Client Base. A key part of our strategy is to grow our FI client base. As of September 30, 2026, we served 323 FIs through the Platform and more than 1,000 clients when including unique clients only subscribing to one or a combination of Onboarding & Account Opening, Data & Marketing or Fraud Prevention products. Each of our digital banking client wins is a competitive takeaway, and as such, our historical ability to grow our client base has been a function of product depth, technological excellence and a sales and marketing function able to match our solutions with the strategic objectives of our clients. Our future success will significantly depend on our ability to continue to grow our FI client base through competitive wins.

Previous wording

Deepening Client Customer or Member Penetration. We primarily generate revenues through a per-registered-user pricing model. Once we onboard a client, our ability to help drive incremental client customer or member digital adoption translates to additional revenues with very limited additional spend. Our FI clients are incentivized to market and encourage digital account sign-up based on identifiable improvement in customer engagement, as well as discounts received based on certain levels of customer or member penetration. We expect to continue to support digital adoption by client customers or members through continued investments in new products and platform enhancements. Our future success will depend on our ability to continue to deepen client customer or member penetration.

Current wording

Deepening Client Customer or Member Penetration. We primarily generate revenues through a per-user pricing model. Once we onboard a client, our ability to help drive incremental client customer or member digital adoption translates to additional revenues with very limited additional spend. Our FI clients are incentivized to market and encourage digital account sign-up based on identifiable improvement in customer engagement, as well as discounts received based on certain levels of customer or member penetration. We expect to continue to support digital adoption by client customers or members through continued investments in new products and platform enhancements. Our future success will depend on our ability to continue to deepen client customer or member penetration.

Previous wording

Expanding our Product Suite. Product depth is a key determinant in winning new clients. In a replacement market, we win based on our ability to bring a product suite to market that is superior to the incumbent, as well as to our broader competition. Of equal importance is the ability to cohesively deliver a deep product suite with as little friction as possible to the client customer or member. The depth of our product suite is a function of technology and platform partnerships. Our platform model with more than 350 integrations as of June 30, 2026 enables us to deliver thousands of configurations aligned with the digital platform strategies adopted by our clients. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to FI clients in a timely manner. Furthermore, expanding our product suite expands our Revenue per Registered User (“RPU”) potential. For additional information regarding RPU, see “Key Business Metrics.”

Current wording

Expanding our Product Suite. Product depth is a key determinant in winning new clients. In a replacement market, we win based on our ability to bring a product suite to market that is superior to the incumbent, as well as to our broader competition. Of equal importance is the ability to cohesively deliver a deep product suite with as little friction as possible to the client customer or member. The depth of our product suite is a function of technology and platform partnerships. Our platform model with more than 400 integrations as of September 30, 2026 enables us to deliver thousands of configurations aligned with the digital platform strategies adopted by our clients. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to FI clients in a timely manner. Furthermore, expanding our product suite expands our Revenue per Registered User (“RPU”) potential. For additional information regarding RPU, see “Key Business Metrics.”

Previous wording

Client Renewals. Our model and the stability of our revenue base is, in part, driven by our ability to renew our clients. In addition to extending existing relationships, renewals provide an opportunity to grow minimum contract value, as over the course of a contract term our clients often grow, or their needs evolve. Client renewals are also an important lever in driving our long-term gross margin targets, as we generally achieve approximately 70% gross margin upon renewal. We had 7 and 11 client renewals in the three and six months ended June 30, 2026, respectively. We expect client renewals to continue to play a key role in our future success.

Current wording

Client Renewals. Our model and the stability of our revenue base is, in part, driven by our ability to renew our clients. In addition to extending existing relationships, renewals provide an opportunity to grow minimum contract value, as over the course of a contract term our clients often grow, or their needs evolve. Client renewals for our Platform are also an important lever in driving our long-term gross margin targets, as we generally achieve approximately 70% gross margin upon renewal. We had 9 and 20 client renewals in the three and nine months ended September 30, 2026, respectively. We expect client renewals to continue to play a key role in our future success.

Previous wording

Continued Leadership in Innovation. Our ability to maintain a differentiated platform and offering is dependent upon our pace of innovation. Our single code base, built on a multi-tenant infrastructure and combined with continuous software delivery enables us to bring new, innovative products to market quickly and positions us with what we believe is market-leading breadth in terms of product offerings and feature sets. We remain committed to investing in our platform, notably through our research and development spend, which was 24.2% and 24.4% of our revenues for the three and six months ended June 30, 2026, respectively. Our future success will depend on our continued leadership in innovation.

Current wording

Continued Leadership in Innovation. Our ability to maintain a differentiated platform and offering is dependent upon our pace of innovation. Our single code base, built on a multi-tenant infrastructure and combined with continuous software delivery, enables us to bring new, innovative products to market quickly and positions us with what we believe is market-leading breadth in terms of product offerings and feature sets. We remain committed to investing in our platform, notably through our research and development spend, which was 24.2% and 24.3% of our revenues for the three and nine months ended September 30, 2026, respectively. Our future success will depend on our continued leadership in innovation.

Previous wording

We derive substantially all of our revenues from SaaS subscription services charged for the use of our digital sales and service solution. Our client relationships are predominantly based on multi-year contracts for the Platform that have had an average contract life of approximately 70 months as of June 30, 2026. Subscription services are recognized over time on a ratable basis over the client agreement term beginning on the date our solution is made available to our client. The promised consideration may include fixed or variable amounts. Our clients with enterprise license contracts are invoiced on an agreed upon monthly rate throughout the contract term, which may include fixed monthly or annual rate escalations. Fixed dollar or percentage escalations that are not based on registered users are considered part of the fixed transaction price and recognized on a straight-line basis over the SaaS subscription period evenly. The majority of our client contracts are based on registered users, for which clients are invoiced a monthly contractual minimum fee for each licensed solution. In addition, to the extent clients exceed their contractual minimum commitments, we invoice a monthly subscription fee based on (i) the number of registered users on each licensed solution and (ii) the number of bill-pay and certain other transactions conducted through our Platform. Our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer or member penetration, incentivizing our clients to internally market our products and promote digital engagement. Variable consideration earned for subscription fees in excess of contractual minimums is recognized as revenues in the month of actual usage. SaaS subscription services also include annual and monthly charges for maintenance and support services, which are recognized on a straight-line basis over the contract term.

Current wording

We derive substantially all of our revenues from SaaS subscription services charged for the use of our digital sales and service solution. The majority of our revenues are derived from multi-year contracts for the Platform, which have had an average contract life of approximately 70 months as of September 30, 2026. Subscription services are recognized over time on a ratable basis over the client agreement term beginning on the date our solution is made available to our client. The promised consideration may include fixed or variable amounts. Our clients with enterprise license contracts are invoiced on an agreed upon monthly rate throughout the contract term, which may include fixed monthly or annual rate escalations. Fixed dollar or percentage escalations that are not based on registered users are considered part of the fixed transaction price and recognized on a straight-line basis over the SaaS subscription period evenly. The majority of our client contracts are based on registered users, for which clients are invoiced a monthly contractual minimum fee for each licensed solution. In addition, to the extent clients exceed their contractual minimum commitments, we invoice a monthly subscription fee based on (i) the number of users on each licensed solution and (ii) the number of bill-pay and certain other transactions conducted through our Platform. Our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer or member penetration, incentivizing our clients to internally market our products and promote digital engagement. Variable consideration earned for subscription fees in excess of contractual minimums is recognized as revenues in the month of actual usage. Our SaaS subscription fees include maintenance and support services, which are recognized together with the subscription on a straight-line basis over the contract term.

Previous wording

The following table disaggregates our revenues for the three and six months ended June 30, 2026 and 2025 by major source:

Current wording

The following table disaggregates our revenues for the three and nine months ended September 30, 2026 and 2025 by major source:

Previous wording

We intend to continue to increase our investments in our implementation, client support teams and technology infrastructure to serve our clients and support our growth. We expect cost of revenues to continue to grow in absolute dollars as we grow our business, but to vary as a percentage of revenues from period to period as a function of the efficiency and utilization of implementation and support personnel and the extent to which we recognize fees from bill-pay services and other third-party functionality integrated into our solutions. Our gross margin for the three and six months ended June 30, 2026 was 56.8% and 57.7%, respectively, and 58.6% and 58.8% for the three and six months ended June 30, 2025, respectively.

Current wording

We intend to continue to increase our investments in our implementation, client support teams and technology infrastructure to serve our clients and support our growth. We expect cost of revenues to continue to grow in absolute dollars as we grow our business, but to vary as a percentage of revenues from period to period as a function of the efficiency and utilization of implementation and support personnel and the extent to which we recognize fees from bill-pay services and other third-party functionality integrated into our solutions. Our gross margin for the three and nine months ended September 30, 2026 was 57.5% and 57.6%, respectively, and 56.8% and 58.1% for the three and nine months ended September 30, 2025, respectively.

Previous wording

The major components of cost of revenues are represented in the following table as percentages of revenues for the three and six months ended June 30, 2026 and 2025, respectively:

Current wording

The major components of cost of revenues are represented in the following table as percentages of revenues for the three and nine months ended September 30, 2026 and 2025, respectively:

Previous wording

Research and Development. Research and development costs consist primarily of personnel-related costs for our engineering, information technology and product employees, including salaries, bonuses, other incentive-related compensation, employee benefits and stock-based compensation. In addition, we also include third-party contractor expenses, software development and testing tools, allocated corporate expenses and other expenses related to developing new solutions and upgrading and enhancing existing solutions. We expect research and development costs to increase as we expand our platform with new features and functionality, as well as enhance the existing Alkami Digital Sales & Service Platform.

Current wording

Research and Development. Research and development costs consist primarily of personnel-related costs for our engineering, information technology and product employees, including salaries, bonuses, other incentive-related compensation, employee benefits and stock-based compensation. In addition, we also include third-party contractor expenses, software development and testing tools, allocated corporate expenses and other expenses related to developing new solutions and upgrading and enhancing existing solutions. We expect research and development costs to increase as we expand our platform with new features and functionality, as well as enhance the existing Alkami Digital Sales & Service Platform. However, we expect that research and development expenses will decrease as a percentage of revenue over the long term.

Previous wording

General and Administrative. General and administrative expenses consist primarily of personnel-related costs for our executive, finance, legal, human resources, information technology, security and compliance and other administrative employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. General and administrative expenses also include accounting, auditing and legal professional services fees, acquisition-related expenses, loss on impairment of intangible assets, secondary offering related expenses, stockholder matters related expenses, travel and other unallocated corporate-related expenses, such as the cost of our facilities, employee relations, corporate telecommunication and software. We expect that general and administrative expenses will continue to increase as we scale our business and as we incur costs associated with being a publicly traded company, including legal, audit, business insurance and consulting fees. However, we expect that general and administrative expenses will decrease as a percentage of revenue over the long term.

Current wording

General and Administrative. General and administrative expenses consist primarily of personnel-related costs for our executive, finance, legal, human resources, security and compliance and other administrative employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. General and administrative expenses also include accounting, auditing and legal professional services fees, acquisition-related expenses, loss on impairment of intangible assets, secondary offering related expenses, stockholder matters related expenses, lease assignment related expenses, travel and other unallocated corporate-related expenses, such as the cost of our facilities, employee relations, corporate telecommunication and software. We expect that general and administrative expenses will continue to increase as we scale our business and as we incur costs associated with being a publicly traded company, including legal, audit, business insurance and consulting fees. However, we expect that general and administrative expenses will decrease as a percentage of revenue over the long term.

Previous wording

Non-operating income (expense) consists primarily of interest income from our cash balances, interest expense from borrowings under our Revolving Facility and 2030 Convertible Notes, amortization of debt discount and deferred debt costs, unrealized gains or losses on marketable securities and realized gains on sales of marketable securities.

Current wording

Non-operating income (expense) consists primarily of interest income from our cash balances, interest expense from borrowings under our revolving loan facility under the Amended Credit Agreement (the “Revolving Facility”) and 2030 Convertible Notes, amortization of debt discount and deferred debt costs, unrealized gains or losses on marketable securities and realized gains on sales of marketable securities.

Previous wording

The results of operations presented below should be reviewed in conjunction with the Unaudited Condensed Consolidated Financial Statements and notes included elsewhere in this filing. The following table presents our selected Unaudited Condensed Consolidated Statements of Operations data for the three and six months ended June 30, 2026 and 2025.

Current wording

The results of operations presented below should be reviewed in conjunction with the Unaudited Condensed Consolidated Financial Statements and notes included elsewhere in this filing. The following table presents our selected Unaudited Condensed Consolidated Statements of Operations data for the three and nine months ended September 30, 2026 and 2025.

Previous wording

(1) Includes amortization of acquired technology of $4.9 million for both the three months ended June 30, 2026 and 2025, and $9.8 million and $6.8 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(1) Includes amortization of acquired technology of $4.9 million for both the three months ended September 30, 2026 and 2025, and $14.7 million and $11.7 million for thenine months ended September 30, 2026 and 2025, respectively.

Previous wording

(2)Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. For additional information regarding adjusted EBITDA, see “Key Business Metrics.”

Current wording

(3)Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. For additional information regarding adjusted EBITDA, see “Key Business Metrics.”

Previous wording

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net loss before (benefit from) provision for income taxes; interest expense, net; depreciation and amortization; stock-based compensation expense; acquisition-related expenses; loss on impairment of intangible assets; and stockholder matters related expenses. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

Current wording

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net loss before (benefit from) provision for income taxes; interest expense, net; depreciation and amortization; stock-based compensation expense; acquisition-related expenses; loss on impairment of intangible assets; stockholder matters related expenses; and lease assignment related expenses. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

Previous wording

Comparison of Three and Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of Three and Nine Months Ended September 30, 2026 and 2025

Previous wording

The increase of $17.8 million in revenues for the three months ended June 30, 2026 was primarily attributable to growth in our SaaS subscription services revenue, driven by user growth on our Platform, from both existing client digital user growth and new client implementations, and higher RPU from selling additional solutions.

Current wording

The increase of $22.0 million in revenues for the three months ended September 30, 2026 was primarily attributable to growth in our SaaS subscription services revenue, driven by user growth on our Platform, from both existing client digital user growth and new client implementations, and higher RPU from selling additional solutions.

Previous wording

The increase of $46.1 million in revenues for the six months ended June 30, 2026 was primarily attributable to growth in our SaaS subscription services revenue, driven by user growth on our Platform, from both existing client digital user growth and new client implementations, and higher RPU from selling additional solutions.

Current wording

The increase of $68.0 million in revenues for the nine months ended September 30, 2026 was primarily attributable to growth in our SaaS subscription services revenue, driven by user growth on our Platform, from both existing client digital user growth and new client implementations, and higher RPU from selling additional solutions.

Previous wording

As of June 30, 2026, our existing clients added 1.5 million digital users and we implemented 39 new clients onto our platform representing 1.3 million digital users since June 30, 2025.

Current wording

As of September 30, 2026, our existing clients added 1.5 million digital users and we implemented 36 new clients onto our platform representing 1.4 million digital users since September 30, 2025.

Previous wording

Cost of revenues increased by $9.6 million, or 20.6%, and $21.8 million, or 25.2%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025.

Current wording

Cost of revenues increased by $8.5 million, or 17.5%, and $30.3 million, or 22.4%, for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025.

Previous wording

The increase of $9.6 million in cost of revenues for the three months ended June 30, 2026 was primarily driven by $7.6 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform and $1.5 million in higher hosting costs.

Current wording

The increase of $8.5 million in cost of revenues for the three months ended September 30, 2026 was primarily driven by $6.7 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform and $1.6 million in higher hosting costs.

Previous wording

The increase of $21.8 million cost of revenues for the six months ended June 30, 2026, was primarily driven by $14.2 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, $3.4 million in higher hosting costs, and a $3.1 million increase in amortization of intangible assets, primarily related to the acquisition of MANTL.

Current wording

The increase of $30.3 million in cost of revenues for the nine months ended September 30, 2026, was primarily driven by $20.3 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, $5.0 million in higher hosting costs, and a $3.1 million increase in amortization of intangible assets, primarily related to the acquisition of MANTL.

Previous wording

Our gross margin for the the three and six months ended June 30, 2026 and 2025, respectively, was 56.8% and 58.6%, and 57.7% and 58.8%, respectively. The driver for the decrease in gross margin for the three and six months ended June 30, 2026 compared to the same periods in 2025 is primarily related to increased third party and hosting costs.

Current wording

Our gross margin for the three and nine months ended September 30, 2026 was 57.5% and 57.6%, respectively, and 56.8% and 58.1% for the three and nine months ended September 30, 2025, respectively. The driver for the decrease in gross margin for the nine months ended September 30, 2026 compared to the same period in 2025 is primarily related to increased third-party and hosting costs.

Previous wording

Research and development expenses increased by $1.2 million, or 3.9%, and $5.3 million, or 9.2%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025.

Current wording

Research and development expenses increased by $2.5 million, or 8.3%, and $7.8 million, or 8.9%, for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025.

Previous wording

For the three months ended June 30, 2026, the increase was primarily due to a $0.8 million increase in personnel-related costs resulting from headcount growth in our engineering, and product teams dedicated to platform enhancements and innovation and $0.5 million in higher hosting costs.

Current wording

For the three months ended September 30, 2026, the increase of $2.5 million was primarily due to a $1.8 million increase in personnel-related costs resulting from headcount growth in our engineering, and product teams dedicated to platform enhancements and innovation and $0.4 million in higher hosting costs.

Previous wording

For the six months ended June 30, 2026, the increase was primarily due to a $4.4 million increase in personnel-related costs resulting from headcount growth in our engineering and product teams dedicated to platform enhancements and innovation, $0.9 million in higher hosting costs, and $0.9 million in higher software costs. These expenses were partially offset by $1.1 million in lower consulting costs and an increase of $1.1 million in capitalized development costs.

Current wording

For the nine months ended September 30, 2026, the increase of $7.8 million was primarily due to a $7.0 million increase in personnel-related costs resulting from headcount growth in our engineering and product teams dedicated to platform enhancements and innovation, $1.3 million in higher hosting costs, and $1.3 million in higher software costs. These expenses were partially offset by $1.5 million in lower consulting costs and an increase of $0.8 million in capitalized development costs.

Previous wording

Sales and marketing expenses decreased by $0.2 million, or 0.7%, and increased by $1.9 million, or 4.6%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025.

Current wording

Sales and marketing expenses decreased by $1.1 million, or 5.6%, and increased by $0.8 million, or 1.3%, for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025.

Previous wording

For the three months ended June 30, 2026, the decrease was primarily due to a $2.1 million decrease in personnel-related costs, partially offset by an increase in costs related to the timing of industry conferences and trade shows of $1.7 million.

Current wording

For the three months ended September 30, 2026, the decrease was primarily due to a $1.7 million decrease in personnel-related costs, partially offset by an increase in costs related to the timing of industry conferences and trade shows of $0.8 million.

Previous wording

For the six months ended June 30, 2026, the increase was primarily due to a $0.6 million increase in personnel-related costs and $1.3 million in higher various other costs.

Current wording

For the nine months ended September 30, 2026, the increase was primarily due to $1.0 million of higher costs related to the timing of industry conferences and trade shows and $0.9 million in higher various other costs, partially offset by a $1.1 million decrease in personnel-related costs.

Previous wording

For the three months ended June 30, 2026, the decrease was primarily due to $2.2 million lower various other costs, partially offset by an increase in stockholder matters related expenses of $1.1 million.

Current wording

For the three months ended September 30, 2026, the increase of $5.4 million was primarily due to increases in stockholder matters related expenses of $2.1 million, $2.1 million of lease assignment related expenses, and $1.2 million in higher various other costs.

Previous wording

Amortization of acquired intangibles increased by $1.1 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the acquisition of intangible assets as part of the acquisition of MANTL in March 2025 and related additional amortization.

Current wording

Amortization of acquired intangibles increased by $1.1 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to the acquisition of intangible assets as part of the acquisition of MANTL in March 2025 and related additional amortization.

Previous wording

Non-operating expense decreased by $0.6 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower net interest expense related to the payoff of the revolver facility under the Amended Credit Agreement (the “Revolving Facility”) in March 2026.

Current wording

Non-operating expense decreased by $0.5 million for the three months ended September 30, 2026 compared to the same period in 2025, primarily due to lower net interest expense related to the payoff of the Revolving Facility in March 2026.

Previous wording

Non-operating expense increased by $1.2 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to the increase in net interest expense related to the 2030 Convertible Notes.

Current wording

Non-operating expense increased by $0.7 million for the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to the increase in interest expense related to the 2030 Convertible Notes.

Previous wording

The Company recorded income tax benefit of $0.2 million and income tax expense of $2.5 million for the three and six months ended June 30, 2026, respectively, resulting in an effective tax rate of 2.3% and (15.6)%, respectively, compared to income tax benefit of $4.3 million and $11.6 million for the three and six months ended June 30, 2025, respectively, resulting in an effective tax rate of 24.0% and 35.1%, respectively.

Current wording

The Company recorded income tax benefit of $1.0 million and income tax expense of $1.6 million for the three and nine months ended September 30, 2026, respectively, resulting in an effective tax rate of 12.5% and (6.5)%, respectively, compared to income tax benefit of less than $0.1 million and $11.6 million for the three and nine months ended September 30, 2025, respectively, resulting in an effective tax rate of 0.2% and 24.3%, respectively.

Previous wording

The Company’s effective tax rates for the three and six months ended June 30, 2026 and 2025 differ from the U.S. statutory tax rate primarily due to unfavorable permanent differences and changes in the valuation allowance recorded against the Company’s deferred tax assets. For the three and six months ended June 30, 2025, the effective tax rate was further impacted by a deferred tax benefit resulting from the partial release of a pre-existing valuation allowance in connection with the MANTL business combination.

Current wording

The Company’s effective tax rates for the three and nine months ended September 30, 2026 and 2025 differ from the U.S. statutory tax rate primarily due to unfavorable permanent differences and changes in the valuation allowance recorded against the Company’s deferred tax assets. For the three and nine months ended September 30, 2025, the effective tax rate was further impacted by a deferred tax benefit resulting from the partial release of a pre-existing valuation allowance in connection with the MANTL business combination.