PagerDuty, Inc.
For the period ended Oct 31, 2025. Filed Nov 26, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 31, 2025 · Filed Nov 26, 2025
PD$15.68-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-07-31; filed 2025-09-04.
0001568100-25-000099
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-10-31; filed 2025-11-26.
0001568100-25-000107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 137 current paragraphs.
97 unchanged; 30 reworded; 9 added; 4 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
General and administrative expenses decreased primarily due to: (i) a decrease of $3.0 million in personnel costs, driven largely by a decrease in stock-based compensation; and (ii) a decrease of $0.2 million in training and travel-related costs; offset by (iii) an increase of $1.8 million in outside services spend for consulting services; (iv) an increase of $0.5 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Current report
Non-Operating Income (Expenses)
Current report
The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence in the various jurisdictions in which it operates related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of October 31, 2025, the Company achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent book-tax differences. Based on all available positive and negative evidence, including the amount of our taxable income in recent years which is objective and verifiable, and taking into account anticipated future taxable earnings, the Company concluded that it is more likely than not that its U.S. federal and certain state deferred tax assets will be realizable. We continue to maintain a valuation allowance of $0.8 million against certain other deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the more likely than not realization criteria. When a change in valuation allowance is recognized during an interim period, the change in valuation allowance resulting from current year income is included in the annual effective tax rate and the release of valuation allowance supported by projections of future taxable income is recorded as a discrete tax benefit in the interim period. The Company released $154.2 million of its valuation allowance as a discrete tax benefit during the three months ended October 31, 2025. The Company will continue to monitor the need for a valuation allowance against its deferred tax assets on a quarterly basis.
Current report
Non-Operating Income (Expenses)
Current report
The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence in the various jurisdictions in which it operates related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of October 31, 2025, the Company achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent book-tax differences. Based on all available positive and negative evidence, including the amount of our taxable income in recent years which is objective and verifiable, and taking into account anticipated future taxable earnings, the Company concluded that it is more likely than not that its U.S. federal and certain state deferred tax assets will be realizable. We continue to maintain a valuation allowance of $0.8 million against certain other deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the more likely than not realization criteria. When a change in valuation allowance is recognized during an interim period, the change in valuation allowance resulting from current year income is included in the annual effective tax rate and the release of valuation allowance supported by projections of future taxable income is recorded as a discrete tax benefit in the interim period. The Company released $154.2 million of its valuation allowance as a discrete tax benefit during the three months ended October 31, 2025. The Company will continue to monitor the need for a valuation allowance against its deferred tax assets on a quarterly basis.
Current report
Impairment of long-lived assets: PagerDuty views non-cash charges for impairment of long-lived assets, including impairments related to capitalized software costs, office leases, and acquired intangible assets, as events that are not necessarily reflective of operational performance during a period. Impairment charges can vary significantly in terms of amount and timing and PagerDuty believes the exclusion of such adjustments can assist in comparison of operational performance in different periods.
Current report
Net cash used in financing activities decreased, primarily due to a decrease in repurchases of common stock and an increase in proceeds of issuance from common stock upon exercise of stock options.
Current report
Income Taxes
Current report
The Company is subject to income taxes in the U.S. and in many foreign jurisdictions. Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against our net deferred tax assets that are not more likely than not to be realized. We monitor the realizability of our deferred tax assets, taking into account all relevant factors at each reporting period. In completing our assessment of realizability of our deferred tax assets, we consider our history of income (loss) measured at pre-tax income (loss) adjusted for permanent book-tax differences on a jurisdictional basis, volatility in actual earnings, excess tax benefits/shortfalls related to stock-based compensation in recent prior years, and impacts of the timing of reversal of existing temporary differences. We also rely on our assessment of the Company’s projected future results of business operations, including uncertainty in future operating results relative to historical results, volatility in the market price of our common stock and its performance over time, variable macroeconomic conditions impacting our ability to forecast future taxable income, and changes in business that may affect the existence and magnitude of future taxable income. Our valuation allowance assessment is based on our best estimate of future results considering all available information.
Removed paragraphs (4)
Previous report
General and administrative expenses decreased primarily due to: (i) a decrease of $0.3 million in training and travel-related costs; (ii) a decrease of $0.1 million in insurance, business taxes and licenses costs; (iii) a decrease of $0.1 million in personnel costs, driven largely by a decrease in stock-based compensation; and (iv) a decrease of $0.1 million in outside services spend due to higher leverage of internal resources; offset by (v) an increase of $0.3 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Previous report
Non-Operating Expenses
Previous report
Non-Operating Expenses
Previous report
Net cash used in financing activities increased, primarily due to the repayment of our 2025 Convertible Notes during the three months ended July 31, 2025.
Reworded paragraphs (30)
Previous wording
The following discussion and analysis of the financial condition and results of operations of PagerDuty, Inc. and its wholly-owned subsidiaries, and subsidiaries in which PagerDuty, Inc. holds a controlling interest (“PagerDuty,” “we,” “us” or “our”) should be read in conjunction with our unaudited consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements and related notes in our Annual Report on Form 10-K for the year ended January 31, 2025. You should review the sections titled “Special Note Regarding Forward-Looking Statements” above in this Quarterly Report on Form 10-Q for a discussion of forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, adverse effects on our business and general economic conditions as identified below, and those discussed in the section titled “Risk Factors” included in our Annual Report on Form 10-K. The last day of our fiscal year is January 31. Our fiscal quarters end on April 30, July 31, October 31 and January 31. Except as otherwise noted, all references to fiscal 2026 refer to the year ended January 31, 2026.
Current wording
The following discussion and analysis of the financial condition and results of operations of PagerDuty, Inc. and its wholly-owned subsidiaries, and subsidiaries in which PagerDuty, Inc. holds a controlling interest (“PagerDuty,” “we,” “us” or “our”) should be read in conjunction with our unaudited consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements and related notes in our Annual Report on Form 10-K for the year ended January 31, 2025. You should review the sections titled “Special Note Regarding Forward-Looking Statements” above in this Quarterly Report on Form 10-Q for a discussion of forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, adverse effects on our business and general economic conditions as identified below, and those discussed in the section titled “Risk Factors” included in our Annual Report on Form 10-K. The last day of our fiscal year is January 31. Our fiscal quarters end on April 30, July 31, October 31 and January 31. Except as otherwise noted, all references to fiscal 2026 refer to the fiscal year ending January 31, 2026.
Previous wording
Revenue increased primarily due to growth from existing customers, which was driven by an increase in the number of users and upsell of additional products and services.
Current wording
Revenue increased primarily due to a combination of growth from both new and existing customers. Growth from existing customers was driven by an increase in the number of users and upsell of additional products and services.
Previous wording
The decrease in cost of revenue is primarily due to: (i) a decrease of $1.7 million in amortization of acquired intangible assets; and (ii) a decrease of $1.1 million in outside services spend for the customer service team; offset by (iii) an increase of $1.0 million in hosting, software, and telecom costs; and (iv) an increase of $0.6 million in personnel costs as a result of an increase in headcount.
Current wording
The decrease in cost of revenue is primarily due to: (i) a decrease of $1.7 million in amortization of acquired intangible assets; (ii) a decrease of $0.7 million in outside services spend for the customer service team; and (iii) a decrease of $0.6 million in personnel costs, driven largely by a decrease in stock-based compensation; offset by (iv) an increase of $1.0 million in hosting, software, and telecom costs.
Previous wording
Research and development expenses decreased primarily due to a decrease of $4.1 million in personnel costs as a result of a decrease in headcount and a decrease in stock-based compensation.
Current wording
Research and development expenses decreased primarily due to: (i) a decrease of $6.1 million in personnel costs as a result of a decrease in headcount and a decrease in stock-based compensation; offset by (ii) an increase of $1.2 million primarily due to an impairment of capitalized software.
Previous wording
Sales and marketing expenses decreased primarily due to: (i) a decrease of $3.1 million in personnel costs, driven largely by a decrease in stock-based compensation; (ii) a decrease of $1.9 million in outside services spend due to higher leverage of internal resources; and (iii) a decrease of $1.3 million in training and travel-related costs; and (iv) a decrease of $0.5 million in marketing costs for media campaigns during the current period; offset by (v) an increase of $0.3 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Current wording
Sales and marketing expenses decreased primarily due to: (i) a decrease of $2.8 million in personnel costs, driven largely by a decrease in stock-based compensation; (ii) a decrease of $1.3 million in outside services spend due to higher leverage of internal resources; and (iii) a decrease of $0.9 million in training and travel-related costs.
Previous wording
Interest expense: Interest expense consists primarily of contractual interest expense and amortization of debt issuance costs on our 1.25% Convertible senior notes due 2025 (the “2025 Notes”) that were repaid during the three months ended July 31, 2025 and the contractual interest expense and amortization of debt issuance costs on our 1.50% Convertible Senior Notes due 2028 (the “2028 Notes”) that were issued in October 2023.
Current wording
Interest expense: Interest expense consists primarily of contractual interest expense and amortization of debt issuance costs on our 1.25% Convertible senior notes due 2025 (the “2025 Notes”) that were repaid during the nine months ended October 31, 2025 and the contractual interest expense and amortization of debt issuance costs on our 1.50% Convertible Senior Notes due 2028 (the “2028 Notes”) that were issued in October 2023.
Previous wording
Interest expense decreased primarily due to an decrease in interest expense related to the Convertible Notes, driven by the repayment of the 2025 Notes during the three months ended July 31, 2025.
Current wording
Interest expense decreased primarily due to an decrease in interest expense related to the Convertible Notes, driven by the repayment of the 2025 Notes during the nine months ended October 31, 2025.
Previous wording
(Benefit from) provision for income taxes: (Benefit from) provision for income taxes consists primarily of income taxes in certain foreign and U.S. jurisdictions in which we conduct business. We maintain a full valuation allowance on our net federal and state deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized for all years presented.
Current wording
(Benefit from) provision for income taxes: (Benefit from) provision for income taxes consists primarily of income taxes in certain foreign and U.S. jurisdictions in which we conduct business.
Previous wording
The change in (benefit from) provision for income taxes was primarily driven by foreign, federal, and state income taxes. The provision may fluctuate to the extent the mix of earnings fluctuates between jurisdictions with different tax rates.
Current wording
The change in (benefit from) provision for income taxes is primarily attributable to the release of the valuation allowance against U.S. federal and certain state deferred tax assets. The (benefit) provision may fluctuate to the extent the mix of earnings fluctuates between jurisdictions with different tax rates.
Previous wording
Six months ended July 31, 2025 compared to six months ended July 31, 2024
Current wording
Nine months ended October 31, 2025 compared to nine months ended October 31, 2024
Previous wording
Revenue increased primarily due to growth from existing customers, which was driven by an increase in the number of users and upsell of additional products and services.
Current wording
Revenue increased primarily due to growth from a combination of growth from both new and existing customers. Growth from existing customers was driven by an increase in the number of users and upsell of additional products and services.
Previous wording
The decrease in cost of revenue is primarily due to: (i) a decrease of $2.8 million in amortization of acquired intangible assets; and (ii) a decrease of $1.6 million in outside services spend for the customer service team; offset by (iii) an increase of $1.2 million in personnel costs as a result of an increase in headcount; (iv) an increase of $0.9 million in hosting, software, and telecom costs; (v) an increase of $0.5 million in costs to support the business and related infrastructure, which include allocated overhead costs; and (vi) an increase of $0.3 million in amortization of capitalized software.
Current wording
The decrease in cost of revenue is primarily due to: (i) a decrease of $4.5 million in amortization of acquired intangible assets; and (ii) a decrease of $2.3 million in outside services spend for the customer service team; offset by (iii) an increase of $1.9 million in hosting, software, and telecom costs; (iv) an increase of $0.7 million in costs to support the business and related infrastructure, which include allocated overhead costs; (v) an increase of $0.7 million in personnel costs as a result of an increase in headcount; and (vi) an increase of $0.3 million in other expenses which primarily consisted of merchant fees.
Previous wording
Research and development: Research and development expenses decreased primarily due to: (i) a decrease of $7.1 million in personnel costs as a result of a decrease in headcount and a decrease in stock-based compensation; and (ii) a decrease of $0.9 million in costs to support the business and related infrastructure, which include allocated overhead costs; offset by (iii) an increase of $0.4 million in training and travel-related costs.
Current wording
Research and development: Research and development expenses decreased primarily due to: (i) a decrease of $13.2 million in personnel costs as a result of a decrease in headcount and a decrease in stock-based compensation; and (ii) a decrease of $1.0 million in costs to support the business and related infrastructure, which include allocated overhead costs; offset by (iii) an increase of $1.1 million in other expenses, primarily related to the impairment of capitalized software; and (iv) an increase of $0.4 million in training and travel-related costs.
Previous wording
Sales and marketing: Sales and marketing expenses decreased primarily due to: (i) a decrease of $4.0 million in outside services spend due to higher leverage of internal resources; (ii) a decrease of $2.3 million in personnel costs primarily due to a decrease in stock-based compensation; (iii) a decrease of $1.3 million in training and travel-related costs; offset by (iv) an increase of $2.0 million in marketing costs for media campaigns during the current period; and (v) an increase of $0.8 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Current wording
Sales and marketing: Sales and marketing expenses decreased primarily due to: (i) a decrease of $5.4 million in outside services spend due to higher leverage of internal resources; (ii) a decrease of $5.1 million in personnel costs primarily due to a decrease in stock-based compensation; and (iii) a decrease of $2.2 million in training and travel-related costs; offset by (iv) an increase of $1.8 million in marketing costs for media campaigns during the current period; and (v) an increase of $0.7 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Previous wording
General and administrative: General and administrative expenses decreased primarily due to: (i) a decrease of $2.8 million in personnel costs, driven largely by a decrease in stock-based compensation; (ii) a decrease of $0.3 million in in training and travel-related costs; and (iii) a decrease of $0.2 million in insurance, business taxes and licenses costs; offset by (iv) an increase of $1.9 million in outside services spend; and (v) an increase of $0.6 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Current wording
General and administrative: General and administrative expenses decreased primarily due to: (i) a decrease of $5.8 million in personnel costs, driven largely by a decrease in stock-based compensation; (ii) a decrease of $0.5 million in in training and travel-related costs; and (iii) a decrease of $0.3 million in insurance, business taxes and licenses costs; offset by (iv) an increase of $3.6 million in outside services spend; and (v) an increase of $1.0 million in costs to support the business and related infrastructure, which include allocated overhead costs.
Previous wording
Interest expense: Interest expense decreased primarily due to an decrease in interest expense related to the Convertible Notes, driven by the repayment of the 2025 Notes during the three months ended July 31, 2025.
Current wording
Interest expense: Interest expense decreased primarily due to an decrease in interest expense related to the Convertible Notes, driven by the repayment of the 2025 Notes during the nine months ended October 31, 2025.
Previous wording
Other income (expense), net: The change in other income (expense), net was due to fluctuations in foreign currency during the period.
Current wording
Other income, net: The change in other income, net was due to fluctuations in foreign currency during the period.
Previous wording
(Benefit from) provision for income taxes: The change in (benefit from) provision for income taxes was primarily driven by foreign, federal, and state income taxes. The provision may fluctuate to the extent the mix of earnings fluctuates between jurisdictions with different tax rates.
Current wording
The change in (benefit from) provision for income taxes is primarily attributable to the release of the valuation allowance against U.S. federal and certain state deferred tax assets. The (benefit) provision may fluctuate to the extent the mix of earnings fluctuates between jurisdictions with different tax rates.
Previous wording
We define non-GAAP operating income as loss from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, which include transaction costs, acquisition-related retention payments, and asset impairment, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.
Current wording
We define non-GAAP operating income as loss from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, which include transaction costs, acquisition-related retention payments, restructuring costs, shareholder matters, and impairment of long-lived assets which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.
Previous wording
We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, which include transaction costs, acquisition-related retention payments and asset impairment, restructuring costs, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax adjustments, which are not necessarily reflective of operational performance during a given period.
Current wording
We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, which include transaction costs, acquisition-related retention payments, restructuring costs, shareholder matters, impairment of long-lived assets, adjustment attributable to redeemable non-controlling interest, and income tax adjustments, which are not necessarily reflective of operational performance during a given period.
Previous wording
As of July 31, 2025, our principal sources of liquidity were cash and cash equivalents and investments totaling $567.9 million. We believe that our existing cash and cash equivalents, investments, and net cash generated from our operating activities will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. Since inception, we have financed operations primarily through sales of our cloud-hosted software subscriptions, net proceeds received from sales of equity securities, and the issuance of our 2028 Notes. We believe we will meet long-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash and short-term investment balances.
Current wording
As of October 31, 2025, our principal sources of liquidity were cash and cash equivalents and investments totaling $547.8 million. We believe that our existing cash and cash equivalents, investments, and net cash generated from our operating activities will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. Since inception, we have financed operations primarily through sales of our cloud-hosted software subscriptions, net proceeds received from sales of equity securities, and the issuance of our 2028 Notes. We believe we will meet long-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash and short-term investment balances.
Previous wording
Refer to Note 9. Debt and Financing Arrangements, in the notes to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for discussion of our debt arrangements, including the timing of expected maturity of such arrangements. The $57.5 million principal of our 2025 Notes was repaid by us in cash at maturity during the three months ended July 31, 2025.
Current wording
Refer to Note 9. Debt and Financing Arrangements, in the notes to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for discussion of our debt arrangements, including the timing of expected maturity of such arrangements. The $57.5 million principal of our 2025 Notes was repaid by us in cash at maturity during the nine months ended October 31, 2025.
Previous wording
A significant majority of our customers pay in advance for our cloud-hosted and term-license software subscriptions. Therefore, a substantial source of our cash is from our deferred revenue, which is included in the liabilities section of our condensed consolidated balance sheet. Deferred revenue consists of the unearned portion of customer billings, which is recognized as revenue in accordance with our revenue recognition policy. As of July 31, 2025, we had deferred revenue of $229.9 million, of which $227.0 million was recorded as a current liability and expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria are met.
Current wording
A significant majority of our customers pay in advance for our cloud-hosted and term-license software subscriptions. Therefore, a substantial source of our cash is from our deferred revenue, which is included in the liabilities section of our condensed consolidated balance sheet. Deferred revenue consists of the unearned portion of customer billings, which is recognized as revenue in accordance with our revenue recognition policy. As of October 31, 2025, we had deferred revenue of $223.0 million, of which $221.8 million was recorded as a current liability and expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria are met.
Previous wording
In March 2025, we announced that our Board of Directors approved a share repurchase program (the “2025 Share Repurchase Program”) for the repurchase of shares of our common stock in an aggregate amount of up to $150.0 million. The 2025 Share Repurchase Program does not obligate us to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The repurchases are expected to be executed from time to time through March 2027, subject to general business and market conditions and other investment opportunities, through open market purchases or other legally permissible means, including through Rule 10b5-1 plans. As of July 31, 2025, no shares had been repurchased under the 2025 Share Repurchase Program and $150.0 million of the total amount authorized to be repurchased remained available.
Current wording
In March 2025, we announced that our Board of Directors approved a share repurchase program (the “2025 Share Repurchase Program”) for the repurchase of shares of our common stock in an aggregate amount of up to $150.0 million. In August 2025, our Board of Directors approved an additional $50.0 million under the 2025 Share Repurchase Program, thus allowing for the repurchase of shares of the Company’s common stock in an aggregate amount of up to $200.0 million. No other changes were made to the program. The 2025 Share Repurchase Program does not obligate us to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The repurchases are expected to be executed from time to time through March 2027, subject to general business and market conditions and other investment opportunities, through open market purchases or other legally permissible means, including through Rule 10b5-1 plans. As of October 31, 2025, we had repurchased 2,354,683 shares under the 2025 Share Repurchase Program and subsequently retired 2,092,300 of those shares. The cost of the remaining 262,383 shares is recorded as treasury stock in the condensed consolidated balance sheets. As of October 31, 2025, $162.1 million of the total amount authorized to be repurchased remained available.
Previous wording
Our estimated future obligations as of July 31, 2025 include both current and long-term obligations. Our debt obligations total $394.5 million, all of which is long-term. Additionally, we had $1.4 million of irrevocable standby letters of credit outstanding which were fully collateralized by our restricted cash, all of which represents a long-term cash obligation. Under our operating leases, we had a current obligation of $3.6 million and a long-term obligation of $10.2 million. Operating lease obligations primarily represent the initial contracted term for leases that have commenced as of July 31, 2025, not including any future optional renewal periods.
Current wording
Our estimated future obligations as of October 31, 2025 include both current and long-term obligations. Our debt obligations total $395.1 million, all of which is long-term. Additionally, we had $1.0 million of irrevocable standby letters of credit outstanding which were fully collateralized by our restricted cash, all of which represents a long-term cash obligation. Under our operating leases, we had a current obligation of $4.1 million and a long-term obligation of $9.3 million. Operating lease obligations primarily represent the initial contracted term for leases that have commenced as of October 31, 2025, not including any future optional renewal periods.
Previous wording
Our changes in cash can be impacted by the effect of fluctuating exchange rates. Foreign exchange had a negative effect on cash in the six months ended July 31, 2024, decreasing our total cash balance by $23.0 thousand as of July 31, 2024, and a positive effect on cash in the six months ended July 31, 2025, increasing our total cash balance by $0.1 million as of July 31, 2025.
Current wording
Our changes in cash can be impacted by the effect of fluctuating exchange rates. Foreign exchange had an immaterial effect on cash in the nine months ended October 31, 2025, and a negative effect on cash in the nine months ended October 31, 2024, decreasing our total cash balance by $0.1 million as of October 31, 2024.
Previous wording
Net cash provided by operating activities improved, primarily due to improvements in our operating loss performance due to the 7.1% increase in revenue, along with our 6.1% decrease in operating expenses. Cash provided by operating activities is subject to variability period-over-period as a result of timing differences, including with respect to the collection of receivables and payments of accounts payable, and other items.
Current wording
Net cash provided by operating activities improved, primarily due to improvements in our operating income (loss) performance due to the 6.3% increase in revenue, along with our 7.3% decrease in operating expenses. Cash provided by operating activities is subject to variability period-over-period as a result of timing differences, including with respect to the collection of receivables and payments of accounts payable, and other items.
Previous wording
Net cash used in investing activities increased, primarily due to a decrease in purchases of available-for-sale investments, offset by a decrease in proceeds from maturities of available-for-sale investments and proceeds from sales of available-for-sale investments, along with an increase in capitalized software costs and an increase in purchases of non-marketable equity investments.
Current wording
Net cash used in investing activities decreased, primarily due to a decrease in purchases of available-for-sale investments, offset by a decrease in proceeds from maturities of available-for-sale investments and proceeds from sales of available-for-sale investments, along with an increase in capitalized software costs and an increase in purchases of non-marketable equity investments.
Previous wording
We had $1.4 million of irrevocable standby letters of credit outstanding as of July 31, 2025. Letters of credit are primarily used as a form of security deposits for the spaces we lease.
Current wording
We had $1.0 million of irrevocable standby letters of credit outstanding as of October 31, 2025. Letters of credit are primarily used as a form of security deposits for the spaces we lease.
Previous wording
For a description of our critical accounting estimates, refer to Part II, Item 7, Critical Accounting Estimates in our Annual Report on Form 10-K for the year ended January 31, 2025. There have been no material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended January 31, 2025.
Current wording
For a description of our critical accounting estimates, refer to Part II, Item 7, Critical Accounting Estimates in our Annual Report on Form 10-K for the year ended January 31, 2025. In addition to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended January 31, 2025, we believe that the accounting policies described below involve a greater degree of judgment and complexity. Accordingly, these are the estimates we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(Benefit from) provision for income taxes: (Benefit from) provision for income taxes consists primarily of income taxes in certain foreign and U.S. jurisdictions in which we conduct business.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In August 2025, our Board of Directors approved an additional $50.0 million under the 2025 Share Repurchase Program, thus allowing for the repurchase of shares of the Company’s common stock in an aggregate amount of up to $200.0 million. No other changes were made to the program.