Snap Inc

Previous wording

•Daily Active Users, or DAUs, increased 8% year-over-year to 477 million.

Current wording

•Daily Active Users, or DAUs, increased 5% year-over-year to 483 million.

Previous wording

•Average revenue per user, or ARPU, was $3.16, compared to $3.10 in the prior year.

Current wording

•Average revenue per user, or ARPU, was $3.17, compared to $2.96 in the prior year.

Previous wording

•Revenue was $1,506.8 million, compared to $1,372.6 million in the prior year, an increase of 10% year-over-year.

Current wording

•Revenue was $1,528.8 million, compared to $1,363.2 million in the prior year, an increase of 12% year-over-year.

Previous wording

•Total costs and expenses were $1,635.2 million, compared to $1,545.8 million in the prior year.

Current wording

•Total costs and expenses were $1,603.2 million, compared to $1,557.1 million in the prior year.

Previous wording

•Diluted net loss per share was$(0.06), compared to$(0.09) in the prior year.

Current wording

•Dilutednet loss per share was$(0.05), compared to$(0.08) in the prior year.

Previous wording

•Cash, cash equivalents, and marketable securities were $3.0 billion as of September 30, 2025.

Current wording

•Cash, cash equivalents, and marketable securities were $2.8 billion as of March 31, 2026.

Previous wording

We periodically make changes to our business and priorities. In recent years, we conducted a strategic reprioritization to realign our focus on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality. We believe that we can be successful in our current operating environment, with various macroeconomic factors impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners. However, the impact of our strategic reprioritization and recent restructurings is difficult to predict.

Current wording

We periodically make changes to our business and priorities. In recent years, our focus has been on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality, including our investments in Spectacles. We believe that we can be successful in our current operating environment, with various macroeconomic factors and geo-political events and conflicts impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners.

Previous wording

Macroeconomic factors such as labor shortages and disruptions, supply chain disruptions, inflation, changes in interest and foreign currency exchange rates, banking instability, tariffs and retaliatory countermeasures, war and other armed conflict, and other risks and uncertainties have in the past and may continue to cause logistical challenges, increased input costs, and inventory constraints for our advertisers, which in turn may cause our advertisers to halt or decrease advertising spending on our platform. Such macroeconomic factors may also negatively impact, in the short-term or long-term, the global economy, advertising ecosystem, our customers and their budgets with us, user engagement, other user metrics, and our business, financial condition, and results of operations.

Current wording

Macroeconomic factors and geo-political events and conflicts such as labor shortages and disruptions, supply chain disruptions, inflation, changes in interest and foreign currency exchange rates, banking instability, tariffs and retaliatory countermeasures, war and other armed conflict, and other risks and uncertainties have in the past and may continue to cause logistical challenges, increased input costs, and inventory constraints for our advertisers, which in turn may cause our advertisers to halt or decrease advertising spending on our platform. Such macroeconomic factors and geo-political events and conflicts may also negatively impact, in the short-term or long-term, the global economy, advertising ecosystem, our customers and their budgets with us, user engagement, other user metrics, and our business, financial condition, and results of operations.

Previous wording

We define a DAU as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We define ARPU as quarterly revenue divided by the average DAUs. We assess the health of our business by measuring DAUs and ARPU because we believe that these metrics are important ways for both management and investors to understand engagement and monitor the performance of our platform. We also measure ARPU because we believe that this metric helps our management and investors to assess the extent to which we are monetizing our service.

Current wording

We define a DAU as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We define ARPU as quarterly revenue divided by the average DAUs. We assess the health of our business by measuring DAUs and ARPU because we believe that these metrics are important ways for both management and investors to understand engagement and monitor the performance of our platform. We also measure ARPU because we believe that this metric helps our management and investors to assess the extent to which we are monetizing our service. However, as our business and the way users engage with our platform evolve, we periodically review the metrics we use to evaluate our performance, including metrics broken out by geography, and may refine, change, or remove these metrics in the future in connection with changes to our products, our business, or how management believes we can best monitor engagement with and performance of our platform.

Previous wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 477 million DAUs on average in the third quarter of 2025, an increase of 34 million, or 8%, from the third quarter of 2024.

Current wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 483 million DAUs on average in the first quarter of 2026, an increase of 23 million, or 5%, from the first quarter of 2025.

Previous wording

(3)North America includes Mexico, the Caribbean, and Central America.

Current wording

(2)North America includes Mexico, the Caribbean, and Central America.

Previous wording

(4)Europe includes Russia and Turkey.

Current wording

(3)Europe includes Russia and Turkey.

Previous wording

We recorded revenue of $1,506.8 million for the three months ended September 30, 2025, compared to revenue of $1,372.6 million for the same period in 2024, an increase of 10% year-over-year. We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads.

Current wording

We recorded revenue of $1,528.8 million for the three months ended March 31, 2026, compared to revenue of $1,363.2 million for the same period in 2025, an increase of 12% year-over-year. We monetize our business primarily through advertising and to a lesser extent through other revenue.

Previous wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $3.16 in the third quarter of 2025, compared to $3.10 in the third quarter of 2024. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer.

Current wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $3.17 in the first quarter of 2026, compared to $2.96 in the first quarter of 2025. For purposes of calculating ARPU, we attribute revenue to regions based on our estimate of where revenue-generating activities occur, which is generally determined by the billing address of the customer. For advertising revenue, we allocate revenue based on the geographic location where advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where all revenue is based on the billing address of the customer.

Previous wording

We generate the majority of our revenue through the sale of our advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue. Snap Ads may be subject to revenue sharing arrangements between us and the content partner. We also generate revenue from Snapchat+, our subscription product that provides subscribers access to exclusive, experimental, and pre-release features, and subscriptions and sales of hardware products. Sales of hardware products are reported net of allowances for returns.

Current wording

We generate the substantial majority of our revenue through the sale of our advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue. Snap Ads may be subject to revenue sharing arrangements between us and the content partner. Additionally, we generate revenue from subscriptions, such as Snapchat+, Lens+, and Snapchat Platinum, which provide subscribers access to exclusive, experimental, and pre-release features, as well as an ad-free experience for Snapchat Platinum subscribers. We generate revenue from Memories Storage Plans, which provide subscribers with the ability to purchase cloud storage. We also generate revenue from partnerships which allow leading companies to connect with our global community on Snapchat and through subscriptions and sales of physical products. Sales of physical products are reported net of allowances for returns.

Previous wording

Sales and marketing expenses primarily consist of personnel-related costs, including salaries, benefits, commissions, and stock-based compensation expense for our employees engaged in sales and sales support, business development, media, marketing, corporate partnerships, and customer service functions. Sales and marketing expenses also include costs incurred for advertising, market research, tradeshows, branding, marketing, promotional expense, and public relations, as well as facilities and other supporting overhead costs, including depreciation and amortization.

Current wording

Sales and marketing expenses primarily consist of personnel-related costs, including salaries, benefits, commissions, and stock-based compensation expense for our employees engaged in sales and sales support, business development, media, marketing, corporate partnerships, and customer service functions. Sales and marketing expenses also include costs incurred for advertising, market research, tradeshows, branding, marketing, promotional expense, and public relations, as well as costs incurred for marketing events, which are recognized when the event occurs. Sales and marketing expenses also include facilities and other supporting overhead costs, including depreciation and amortization.

Previous wording

Three and Nine Months Ended September 30, 2025 and 2024

Current wording

Three Months Ended March 31, 2026 and 2025

Previous wording

Revenue for the three and nine months ended September 30, 2025 increased $134.3 million and $410.9 million, respectively, compared to the same periods in 2024. The increase was driven by a $67.8 million and $212.3 million increase in advertising revenue for the three and nine months ended September 30, 2025, respectively. The increase in advertising revenue is due to a year-over-year increase in global advertising impressions volume of approximately 22% and 18% for the three and nine months ended September 30, 2025, respectively, which is driven by expanded advertising delivery within Sponsored Snaps and Spotlight. The increase in advertising revenue was partially offset by a year-over-year decrease in the cost per advertising impression of approximately 13% and 10% for the three and nine months ended September 30, 2025, respectively, which is driven by strong growth in impressions delivery. The increase in total revenue was also driven by a $66.5 million and $198.6 million increase in other revenue for the three and nine months ended September 30, 2025, respectively, which is due to higher subscription revenue due to growth in the number of subscribers.

Current wording

Revenue for the three months ended March 31, 2026 increased $165.6 million compared to the same period in 2025. The increase was driven by a $32.6 million increase in advertising revenue for the three months ended March 31, 2026. The increase in advertising revenue is due to a year-over-year increase in global advertising impressions volume of approximately 17% for the three months ended March 31, 2026, which is driven by expanded advertising delivery with Sponsored Snaps. The increase in advertising revenue was partially offset by a year-over-year decrease in the cost per advertising impression of approximately 12% for the three months ended March 31, 2026, which is driven by strong growth in impressions delivery. Additionally, the increase in total revenue was also driven by a $133.0 million increase in other revenue for the three months ended March 31, 2026, which is due to higher subscription revenue from growth in the number of subscribers, partially attributable to Memories Storage Plans.

Previous wording

Research and development expenses for the three and nine months ended September 30, 2025 increased $40.6 million and $52.2 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily due to investments in product development, including higher employee compensation due to additional research and development headcount. The increase for the nine months ended September 30, 2025 was partially offset by $38.8 million in restructuring charges primarily recognized in the first quarter of 2024.

Current wording

Research and development expenses for the three months ended March 31, 2026 increased $54.1 million compared to the same period in 2025. The increase was primarily driven by investments in product development, including higher employee compensation due to additional research and development headcount.

Previous wording

Interest income for the three and nine months ended September 30, 2025 decreased $6.3 million and $12.4 million, respectively, compared to the same periods in 2024. The decrease was primarily driven by lower interest rates.

Current wording

Interest income for the three months ended March 31, 2026 decreased $10.6 million compared to the same period in 2025. The decrease was primarily driven by decreased investments in marketable debt securities and lower interest rates.

Previous wording

Interest expense for the three and nine months ended September 30, 2025 increased $28.6 million and $69.8 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily driven by additional interest expense on our 2033 Notes and 2034 Notes which were issued in February 2025 and August 2025, respectively.

Current wording

Interest expense for the three months ended March 31, 2026 increased $13.4 million compared to the same period in 2025. The increase was primarily driven by additional interest expense on our 2033 Notes and 2034 Notes which were issued in February 2025 and August 2025, respectively, and which are discussed within Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

Other income, net for the three months ended September 30, 2025 was primarily driven by a $29.8 million gain on extinguishment associated with the August 2025 Note Repurchases, which is discussed within Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report. Other expense, net for the three months ended September 30, 2024 was not material.

Current wording

Other expense, net for the three months ended March 31, 2026 was not material. Other income, net for the three months ended March 31, 2025 was primarily driven by a $66.9 million gain on extinguishment associated with the

Previous wording

Other income, net for the nine months ended September 30, 2025 was primarily driven by $96.7 million in total gains on extinguishment associated with the 2025 Note Repurchases, partially offset by $12.2 million in net losses on strategic investments. Other expense, net for the nine months ended September 30, 2024 was primarily driven by $7.1 million in net losses on strategic investments, a $6.7 million net loss on extinguishment associated with the 2024 Note Repurchases, and $5.2 million in unrealized losses on publicly traded securities classified as marketable securities.

Current wording

February 2025 Note Repurchases, which is discussed within Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report, partially offset by $11.6 million in net losses on strategic investments and $4.2 million in unrealized losses on publicly traded securities classified as marketable securities.

Previous wording

Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Current wording

Income tax expense for the three months ended March 31, 2026 was $3.2 million compared to an income tax expense of $8.4 million for the same period in 2025. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Previous wording

Net loss for the three and nine months ended September 30, 2025 was $103.5 million and $505.7 million, respectively, compared to $153.2 million and $707.0 million, respectively, for the same periods in 2024. The fluctuations in net loss for both periods were primarily the result of the changes in revenues and expenses discussed above.

Current wording

Net loss for the three months ended March 31, 2026 was $89.0 million compared to $139.6 million for the same period in 2025. The fluctuation in net loss was primarily the result of the changes in revenues and expenses discussed above.

Previous wording

Adjusted EBITDA for the three and nine months ended September 30, 2025 was $182.0 million and $331.7 million, respectively, compared to $132.0 million and $232.6 million, respectively, for the same periods in 2024. The fluctuations for both periods were primarily attributable to increased revenue and lower sales and marketing expenses, partially offset by higher cost of revenue, research and development expenses, and general and administrative expenses.

Current wording

Adjusted EBITDA for the three months ended March 31, 2026 was $233.3 million compared to $108.4 million for the same period in 2025. The fluctuation was primarily attributable to increased revenue and lower sales and marketing and general and administrative expenses, partially offset by higher cost of revenue and research and development expenses.

Previous wording

Cash, cash equivalents, and marketable securities were $3.0 billion as of September 30, 2025, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, money market funds, corporate debt securities, certificates of deposit, commercial paper, and publicly traded equity securities. Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Current wording

Cash, cash equivalents, and marketable securities were $2.8 billion as of March 31, 2026, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government securities, money market funds, corporate debt securities, and publicly traded equity securities. Our primary source of liquidity is cash generated through operating cash flows as well as financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity, except as disclosed herein. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Previous wording

As of September 30, 2025, approximately 6.2% of our cash, cash equivalents, and marketable securities was held by our foreign subsidiaries, primarily in the United Kingdom. Cash held by our foreign subsidiaries is utilized to fund our foreign operations and may be repatriated, subject to certain limitations. Upon repatriation, these funds would be available to fund our domestic operations, but repatriation may result in additional tax liabilities. We maintain substantially all of our cash, cash equivalents, and marketable securities in accounts with major United States and multi-national financial institutions. We believe our existing cash balance is sufficient to fund our working capital needs.

Current wording

As of March 31, 2026, approximately 9% of our cash, cash equivalents, and marketable securities was held by our foreign subsidiaries, primarily in the United Kingdom. Cash held by our foreign subsidiaries is utilized to fund our foreign operations and may be repatriated, subject to certain limitations. Upon repatriation, these funds would be available to fund our domestic operations, but repatriation may result in additional tax liabilities. We maintain substantially all of our cash, cash equivalents, and marketable securities in accounts with major United States and multi-national financial institutions. We believe our existing cash balance in the United States is sufficient to fund our working capital needs.

Previous wording

As of September 30, 2025, we had $1.05 billion of revolving credit facilities, of which $250.0 million expires in May 2027 and $800.0 million expires in February 2030. The interest rates for all credit facilities are determined based on a formula using certain market rates, as described in Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report. The Credit Facility also contains an annual commitment fee of 0.10%on the daily undrawn balance of the facility. As of September 30, 2025, we had $80.3 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.

Current wording

As of March 31, 2026, we had $1.05 billion under our revolving credit facility (the “Credit Facility”), of which $250.0 million expires in May 2027 and $800.0 million expires in February 2030. The interest rates for the Credit Facility are determined based on a formula using certain market rates, as described in Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report. The Credit Facility also contains an annual commitment fee of 0.10%on the daily undrawn balance of the facility. As of March 31, 2026, we had $94.9 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.

Previous wording

As of September 30, 2025, we had outstanding debt in the form of senior unsecured notes and senior convertible notes for an aggregate principal amount of $3.5 billion, which mature from 2026 through 2034. Short-term and long-term future interest payment obligations as of September 30, 2025 were $149.3 million and $969.8 million, respectively.

Current wording

As of March 31, 2026, we had outstanding debt in the form of Senior Notes and Convertible Notes for an aggregate principal amount of $3.5 billion, which mature between 2026 and 2034. Short-term and long-term future interest payment obligations as of March 31, 2026 were $145.5 million and $897.1 million, respectively.

Previous wording

Under certain circumstances, holders of the Convertible Notes may convert all or a portion of their notes prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. As of September 30, 2025 the Convertible Notes will not be eligible for optional conversion during the fourth quarter of 2025.

Current wording

Under certain circumstances, holders of the outstanding Convertible Notes may convert all or a portion of their notes prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. As of March 31, 2026 the Convertible Notes will not be eligible for optional conversion during the second quarter of 2026, other than the 2026 Notes, which became eligible for optional conversion as of May 1, 2026.

Previous wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $3.9 billion in commitments, as of September 30, 2025, primarily due within three years. For additional discussion on our leases, see Note 9 to our consolidated financial statements.

Current wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $3.0 billion in commitments as of March 31, 2026, primarily due within two years. For additional discussion on our leases, see Note 9 to our consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

In October 2024, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock. We completed this program in May 2025. For the nine months ended September 30, 2025, we repurchased and retired 57.3 million shares of our Class A common stock for $500.6 million, including costs associated with the repurchases.

Current wording

In November 2025 and February 2026, our board of directors authorized two stock repurchase programs for the repurchase of up to $500.0 million of our Class A common stock under each program. During the three months ended March 31, 2026, we repurchased and retired a total of 49.9 million shares of our Class A common stock for $350.5 million, including costs associated with the repurchases. We completed the November 2025 program in January 2026, and the remaining availability under the February 2026 program as of March 31, 2026 was $400.0 million. Repurchases of Class A common stock from the remaining availability may be made from time to time and will be funded from existing cash and cash equivalents. Repurchases have been authorized through February 2027 but the program may be initiated, modified, suspended, or terminated at any time during the program.

Previous wording

The following table sets forth the major components of our consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024:

Current wording

The following table sets forth the major components of our consolidated statements of cash flows for the three months ended March 31, 2026 and 2025:

Previous wording

Net cash provided by operating activities was $386.6 million for the nine months ended September 30, 2025, compared to $182.8 million for the same period in 2024, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $759.6 million, depreciation and amortization expense of $120.3 million, and gains on debt extinguishment of $96.7 million. Net cash provided by operating activities for the nine months ended September 30, 2025 was also driven by a $102.0 million decrease in accounts receivable due to the timing of collections, partially offset by a $21.8 million decrease in accounts payable primarily due to the timing of payments.

Current wording

Net cash provided by operating activities was $326.8 million for the three months ended March 31, 2026, compared to $151.6 million for the same period in 2025, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $250.0 million, and depreciation and amortization expense of $44.7 million. Net cash provided by operating activities for the three months ended March 31, 2026 was also driven by a $174.6 million decrease in accounts receivable, primarily due to the timing of collections, partially offset by $74.9 million in interest payments on our Notes.

Previous wording

Net cash provided by investing activities was $110.3 million for the nine months ended September 30, 2025, compared to net cash used in investing activities of $568.3 million for the same period in 2024. Our investing activities for the nine months ended September 30, 2025 primarily consisted of maturities of marketable securities of $785.3 million and sales of marketable securities of $539.7 million, partially offset by purchases of marketable securities of $1,015.3 million and purchases of property and equipment of $155.0 million. Our investing activities for the nine months ended September 30, 2024 primarily consisted of purchases of marketable securities of $1.9 billion and purchases of property and equipment of $146.6 million, partially offset by maturities of marketable securities of $1.2 billion and sales of marketable securities of $354.3 million.

Current wording

Net cash provided by investing activities was $57.3 million for the three months ended March 31, 2026, compared to net cash provided by investing activities of $2.8 million for the same period in 2025. Our investing activities for the three months ended March 31, 2026 primarily consisted of sales of marketable securities of $232.1 million and maturities of marketable securities of $213.6 million, partially offset by purchases of marketable securities of $302.4 million and purchases of property and equipment of $40.8 million. Our investing activities for the three months ended March 31, 2025 primarily consisted of maturities of marketable securities of $263.8 million and sales of marketable securities of $12.0 million, partially offset by purchases of marketable securities of $235.8 million and purchases of property and equipment of $37.2 million.

Previous wording

Net cash used in financing activities was $591.6 million for the nine months ended September 30, 2025, compared to net cash used in financing activities of $428.6 million for the same period in 2024. Our financing activities for the nine months ended September 30, 2025 primarily consisted of the 2025 Note Repurchases for $2.0 billion, repurchases of our Class A common stock for $500.6 million, deferred payments for acquisitions of $67.5 million, and the repayment of the 2025 Notes for $36.2 million, partially offset by the issuance of the 2033 Notes and 2034 Notes for total net proceeds of $2.0 billion. Our financing activities for the nine months ended September 30, 2024 primarily consisted of the 2024 Note Repurchases for$859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the 2030 Capped Call Transactions for $68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of $740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of $62.7 million.

Current wording

Net cash used in financing activities was $352.1 million for the three months ended March 31, 2026, compared to net cash used in financing activities of $288.5 million for the same period in 2025. Our financing activities for the three months ended March 31, 2026 primarily consisted of repurchases of our Class A common stock for $350.5 million. Our financing activities for the three months ended March 31, 2025 primarily consisted of the 2025 Note Repurchases for $1.4 billion, repurchases of our Class A common stock for $257.1 million and deferred payments for acquisitions of $58.0 million, partially offset by the issuance of the 2033 Notes for net proceeds of $1.5 billion.

Previous wording

Free Cash Flow was $231.6 million for the nine months ended September 30, 2025, compared to $36.3 million for the same period in 2024. Free Cash Flow in all periods was composed of net cash provided by (used in) operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $155.0 million for the nine months ended September 30, 2025, compared to $146.6 million for the same period in 2024. Purchases of property and equipment in all periods are primarily related to improvements to our leased facilities to support our team workspaces. See “Non-GAAP Financial Measures.”

Current wording

Free Cash Flow was $286.0 million for the three months ended March 31, 2026, compared to $114.4 million for the same period in 2025. Free Cash Flow in all periods was composed of net cash provided by operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $40.8 million for the three months ended March 31, 2026, compared to $37.2 million for the same period in 2025. Purchases of property and equipment in all periods are primarily related to improvements to our leased facilities to support our team workspaces. See “Non-GAAP Financial Measures.”

Previous wording

The critical accounting estimates, assumptions, and judgments that we believe to have the most significant impact on our consolidated financial statements are revenue recognition, valuation of assets, loss contingencies, and income taxes.

Current wording

The critical accounting policies, estimates, assumptions, and judgments that we believe to have the most significant impact on our consolidated financial statements are revenue recognition, valuation of assets, loss contingencies, and income taxes.