Sprinklr, Inc.

Previous wording

Our customers include global enterprises across a broad array of industries and geographies, as well as marketing agencies and government departments along with non-profit and educational institutions. Our customers are located in over 80 countries, and our AI-based CXM platform recognizes over 150 languages. We define our large customers as customers with greater than or equal to $1.0 million in subscription revenue on a trailing 12-month basis, as of the period presented. As of July 31, 2025, we had 149 large customers, compared to 145 as of July 31, 2024.

Current wording

Our customers include global enterprises across a broad array of industries and geographies, as well as marketing agencies and government departments along with non-profit and educational institutions. Our customers are located in over 80 countries, and our AI-based CXM platform recognizes over 150 languages. We define our large customers as customers with greater than or equal to $1.0 million in subscription revenue on a trailing 12-month basis, as of the period presented. As of October 31, 2025, we had 145 large customers, compared to 147 as of October 31, 2024.

Previous wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of July 31, 2025, our RPO expected to be recognized as revenue was $923.8 million and our cRPO was $597.1 million.

Current wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of October 31, 2025, our RPO expected to be recognized as revenue was $857.6 million and our cRPO was $562.2 million.

Previous wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 102.2% and 110.8% for the 12-month periods ending July 31, 2025 and 2024, respectively. The decrease year-over-year was driven by elevated churn and down-selling of certain existing customers, partially driven by the current macroeconomic environment.

Current wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 102.3% and 107.3% for the 12-month periods ending October 31, 2025 and 2024, respectively. The decrease year-over-year was driven by elevated churn and down-selling of certain existing customers, partially driven by the current macroeconomic environment.

Previous wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, including fluctuations in inflation and interest rates, the imposition of tariffs in the United States and abroad, and the Russia-Ukraine and Israel-Hamas wars, have led to economic uncertainty globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses. While we have experienced growing inflationary pressures on the cost of wages, rent and data, the net result of inflationary impacts and our efforts to mitigate these impacts have not been material to us during the periods included in this report. In addition, general economic weakness may lead to longer collection cycles for payments due from our customers and an increase in customer provision for credit losses, as well as restructuring initiatives and associated expenses, and customers and potential customers may require extended financial concessions, which could result in adjustments to revenue recognition.

Current wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, including fluctuations in inflation and interest rates, the imposition of tariffs in the United States and abroad, the Russia-Ukraine and Israel-Hamas wars and the recent and any future U.S. government shutdown, have led to economic uncertainty both in the United States and globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses. While we have experienced growing inflationary pressures on the cost of wages, rent and data, the net result of inflationary impacts and our efforts to mitigate these impacts have not been material to us during the periods included in this report. In addition, general economic weakness may lead to longer collection cycles for payments due from our customers and an increase in customer provision for credit losses, as well as restructuring initiatives and associated expenses, and customers and potential customers may require extended financial concessions, which could result in adjustments to revenue recognition.

Previous wording

Sales and marketing expense consists primarily of personnel-related expenses for our sales and marketing organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, software costs, advertising, marketing, promotional and brand awareness activities, travel expenses and allocated overhead expense, including facilities costs. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over the expected period of benefit. In the near term, we expect sales and marketing expense to decrease given recent restructuring activities. In the long term, we expect sales and marketing expense to generally increase in absolute dollars as we continue to drive the growth of our business. We continue to optimize our sales and marketing expense and seek efficiencies in our investments.

Current wording

Sales and marketing expense consists primarily of personnel-related expenses for our sales and marketing organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, software costs, advertising, marketing, promotional and brand awareness activities, travel expenses and allocated overhead expense, including facilities costs. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over the expected period of benefit. We expect sales and marketing expense to generally increase in absolute dollars as we continue to drive the growth of our business. We continue to optimize our sales and marketing expense and seek efficiencies in our investments.

Previous wording

Restructuring expense includes costs associated with the global workforce reduction implemented in the first quarter of fiscal year 2026. The majority of these costs consist of severance, benefits and the acceleration of equity awards.

Current wording

Restructuring expense includes costs associated with the global workforce reductions implemented in fiscal years 2026 and 2025. The majority of these costs consist of severance, benefits and the acceleration of equity awards.

Previous wording

Provision for income taxes consists primarily of income taxes related to foreign and U.S. jurisdictions in which we conduct business. Our annual estimated effective tax rate differed from the U.S. federal statutory rate in fiscal 2026 primarily due to the impact of non-deductible items, stock-based compensation and foreign tax rate differential on non-U.S. income and withholding taxes. Our annual estimated effective tax rate differed from the U.S. federal statutory rate in fiscal 2025 primarily due primarily due to a full valuation allowance related to our U.S. deferred tax assets, partially offset by U.S. current state taxes and foreign tax rate differential on non-U.S. income and discrete items relating to releases of valuation allowances in certain foreign jurisdictions.

Current wording

Provision for income taxes consists primarily of income taxes related to foreign and U.S. jurisdictions in which we conduct business. Our annual estimated effective tax rate differed from the U.S. federal statutory rate in fiscal 2026 primarily due to the impact of non-deductible items, stock-based compensation and foreign tax rate differential on non-U.S. income and withholding taxes, as well as changes in our uncertain tax positions. Our annual estimated effective tax rate differed from the U.S. federal statutory rate in fiscal 2025 primarily due to a full valuation allowance related to our U.S. deferred tax assets, partially offset by U.S. current state taxes and foreign tax rate differential on non-U.S. income and discrete items relating to releases of valuation allowances in certain foreign jurisdictions.

Previous wording

The increase in costs of subscription revenue was primarily due to a $8.4 million increase in third-party data, cloud and network infrastructure costs, partially attributable to increased customer demand as well as higher rates from our third-party providers.

Current wording

The increase in costs of subscription revenue was primarily due to a $8.3 million increase in third-party data, cloud and network infrastructure costs, partially attributable to increased customer demand as well as higher rates from our third-party providers.

Previous wording

The increase in costs of professional services revenue was primarily due to (i) a $2.2 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $2.1 million, partially driven by increased bonus accrual versus prior year.

Current wording

The increase in costs of professional services revenue was primarily due to (i) a $3.0 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $2.4 million, partially driven by increased bonus accrual versus prior year.

Previous wording

Gross margin for subscription decreased by four percentage points, primarily driven by increased costs associated with third-party data, cloud and network infrastructure. Gross margin for professional services increased by two percentage points, largely driven by timing differences between our investment in CCaaS projects and the completion of implementations associated with these projects.

Current wording

Gross margin for subscription decreased by four percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services increased by twelve percentage points, largely driven by the delivery and implementation of various CCaaS projects.

Previous wording

The increase in research and development expense was primarily due to a $0.1 million increase in personnel-related costs driven by increased stock compensation expense, primarily related to new grants during fiscal year 2026 and the fourth quarter of fiscal year 2025, which was partially offset by cost savings associated with the restructuring activities we implemented in the second quarter of fiscal year 2025 and the first quarter of fiscal year 2026. For additional information regarding restructuring charges, see Note 13, Restructuring Charges included in Part I, Item 1 of this Form 10-Q.

Current wording

The increase in research and development expense was primarily due to (i) increased subcontractor and consulting costs of $0.8 million as a result of quality improvement projects implemented in the current fiscal year and (ii) higher personnel costs of $0.8 million, resulting from higher stock compensation, which was primarily driven by new grants during fiscal year 2026. The higher personnel costs were partially offset by cost savings associated with the restructuring activities we implemented in the second quarter of fiscal year 2025 and the first quarter of fiscal year 2026.

Previous wording

The decrease in sales and marketing expense was primarily due to a decrease in personnel costs of $5.5 million related to lower sales headcount as a result of the restructuring activities we implemented in the first quarter of fiscal year 2026 and second quarter of fiscal year 2025. For additional information regarding restructuring charges, see Note 13, Restructuring Charges included in Part I, Item 1 of this Form 10-Q.

Current wording

The decrease in sales and marketing expense was primarily due to (i) a decrease in personnel costs of $2.1 million related to lower sales headcount as a result of the restructuring activities we implemented in the first quarter of fiscal year 2026 and second quarter of fiscal year 2025, (ii) decreased software subscription costs of $0.4 million and (iii) lower consulting costs of $0.3 million as a result of an enablement program that was completed during fiscal year 2025.

Previous wording

The decrease in general and administrative expense was primarily due to lower provision for credit losses of $9.6 million associated with higher reserves during the prior year period for certain customers that we deemed to be uncollectible accounts, partially offset by an increase in personnel costs of $7.0 million, driven by increased stock compensation expense, primarily related to equity grants during fiscal year 2026 and the fourth quarter of fiscal year 2025.

Current wording

The decrease in general and administrative expense was primarily due to lower consulting costs of $4.6 million. This decrease was partially offset by an increase in personnel costs of $4.1 million, primarily driven by increased stock compensation expense, mostly related to equity grants during fiscal year 2026 and the fourth quarter of fiscal year 2025.

Previous wording

The decrease in restructuring expense was due to the fiscal year 2025 reduction in global workforce occurring in the second quarter while the fiscal year 2026 reduction on global workforce occurred in the first quarter. The fiscal year 2026 amount relates to reversals in restructuring charges recorded in the first quarter of fiscal year 2026 related to the reduction in global workforce implemented in February 2025. Refer to Note 13, Restructuring Charges, included in Part I, Item 1 of this Form 10-Q for additional information.

Current wording

The increase in restructuring expense was due to current quarter restructuring costs associated with delays in employee notifications. The fiscal year 2025 amount relates to reversals in restructuring charges recorded in the third quarter of fiscal year 2025 related to the reduction in global workforce implemented in the second quarter of fiscal year 2025. Refer to Note 13, Restructuring Charges, included in Part I, Item 1 of this Form 10-Q for additional information.

Previous wording

The increase in other income, net was primarily due to an increase of $2.4 million associated with net foreign currency gains, partially offset by a $1.2 million decrease in interest income from our money market and short-term investment accounts as a result of lower average balances in these accounts and lower average interest rates.

Current wording

The increase in other income, net was primarily due to an increase of $1.2 million associated with net foreign currency gains, partially offset by a $1.0 million decrease in interest income from our money market and short-term investment accounts as a result of lower average interest rates and lower average balances in these accounts.

Previous wording

The increase in provision for income tax relates primarily to the impact of including U.S. profit before tax in the annual effective tax rate computation for the three months ended July 31, 2025. For the three months ended July 31, 2024, we were in a valuation allowance position and therefore did not include U.S. profit before tax in the annual effective tax rate computation. The provision for income tax for the three months ended July 31, 2025 also includes a $1.5 million discrete income tax charge for non-deductible stock-based compensation.

Current wording

The increase in provision for income tax relates primarily to the impact of including U.S. profit before tax in the annual effective tax rate computation for the three months ended October 31, 2025. For the three months ended October 31, 2024, we were in a valuation allowance position and therefore did not include U.S. profit before tax in the annual effective tax rate computation. The provision for income tax for the three months ended October 31, 2025 also includes a $3.3 million discrete income tax charge for non-deductible stock-based compensation and a $6.2 million discrete income tax charge for changes to our uncertain tax positions related to our non-U.S. entities.

Previous wording

The increase in costs of subscription revenue was primarily due to an increase of $17.6 million in third-party data, cloud and network infrastructure costs, partially attributable to increased customer demand as well as higher rates from our third-party providers.

Current wording

The increase in costs of subscription revenue was primarily due to an increase of $25.9 million in third-party data, cloud and network infrastructure costs, partially attributable to increased customer demand as well as higher rates from our third-party providers.

Previous wording

The increase in costs of professional services revenue was primarily due to (i) a $3.8 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $2.3 million, partially driven by increased bonus accrual versus prior year.

Current wording

The increase in costs of professional services revenue was primarily due to (i) a $6.8 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $4.7 million, partially driven by increased bonus accrual versus prior year.

Previous wording

Gross margin for subscription decreased by four percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services decreased by one percentage point largely driven by timing differences between our investment in CCaaS projects and the completion of implementations associated with these projects.

Current wording

Gross margin for subscription decreased by four percentage points, primarily driven by increased costs associated with third-party data, cloud and network infrastructure. Gross margin for professional services increased by five percentage points, largely driven by driven by the delivery and implementation of various CCaaS projects.

Previous wording

The decrease in sales and marketing expense was primarily due to a decrease in personnel-related costs of $18.5 million, primarily due to lower sales headcount as a result of the restructuring activities we implemented in the first quarter of fiscal year 2026. For additional information regarding restructuring charges, see Note 13, Restructuring Charges included in Part I, Item 1 of this Form 10-Q.

Current wording

The decrease in sales and marketing expense was primarily due to (i) a decrease in personnel-related costs of $20.6 million, primarily due to lower sales headcount as a result of the restructuring activities we implemented in the first quarter of fiscal year 2026, and (ii) a decrease in other marketing-related costs of $4.2 million.

Previous wording

The increase in general and administrative expense was primarily due to the net effect of (i) a $12.3 million increase in personnel-related costs driven by increased stock compensation expense, primarily related to new grants during fiscal year 2026, as well as the fourth quarter of fiscal year 2025, (ii) lower provision for credit losses of $8.6 million as a result of increased reserves for certain customers that we deemed to be uncollectible accounts during the second quarter of fiscal year 2025 and (iii) a decrease in professional and related fees of $1.6 million.

Current wording

The increase in general and administrative expense was primarily due (i) a $16.5 million increase in personnel-related costs driven by increased stock compensation expense, primarily related to new grants during fiscal year 2026 and the fourth quarter of fiscal year 2025, (ii) an increase in professional and related fees of $2.6 million and (iii) an increase in costs associated with company meetings and events of $0.7 million as a result of an increase in leadership events during fiscal year 2026. These increases were partially offset by (i) lower provision for credit losses of $10.1 million as a result of increased reserves for certain customers that we deemed to be uncollectible accounts during the second quarter of fiscal year 2025 and (ii) lower consulting costs of $8.0 million.

Previous wording

The increase in other income, net was primarily attributable to a $5.1 million increase in net foreign currency gains, partially offset by a $4.4 million decrease in interest income from our money market and short-term investment accounts as a result of lower average balances in these accounts and lower average interest rates.

Current wording

The increase in other income, net was primarily attributable to a $6.3 million increase in net foreign currency gains, partially offset by a $5.4 million decrease in interest income from our money market and short-term investment accounts as a result of lower interest rates and lower average balances in these accounts.

Previous wording

The increase in provision for income tax relates primarily to the impact of including U.S. profit before tax in the annual effective tax rate computation for the six months ended July 31, 2025. For the six months ended July 31, 2024, we were in a valuation allowance position and therefore did not include U.S. profit before tax in the annual effective tax rate computation. The provision for income tax for the six months ended July 31, 2025 also includes a $4.5 million discrete income tax charge for non-deductible stock-based compensation.

Current wording

The increase in provision for income tax relates primarily to the impact of including U.S. profit before tax in the annual effective tax rate computation for the nine months ended October 31, 2025. For the nine months ended October 31, 2024, we were in a valuation allowance position and therefore did not include U.S. profit before tax in the annual effective tax rate computation. The provision for income tax for the nine months ended October 31, 2025 also includes a $7.8 million discrete income tax charge for non-deductible stock-based compensation and a $6.6 million discrete income tax charge for changes to our uncertain tax positions related to our non-U.S. entities.

Previous wording

(2)Includes $0.1 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended July 31, 2025 and 2024, respectively, and $0.5 million and $0.9 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2025 and 2024, respectively.

Current wording

(2)Includes $0.2 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended October 31, 2025 and 2024, respectively, and $0.7 million and $1.1 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

(4)Includes nil and $0.7 million of employer payroll tax related to the February 2025 restructuring for thethree and six months ended July 31, 2025, respectively.

Current wording

(4)Includes $0.1 million and $0.8 million of employer payroll tax related to the February 2025 restructuring for the three and nine months ended October 31, 2025, respectively.

Previous wording

(1)Includes $0.1 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended July 31, 2025 and 2024, respectively, and $0.5 million and $0.9 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2025 and 2024, respectively.

Current wording

(1)Includes $0.2 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended October 31, 2025 and 2024, respectively, and $0.7 million and $1.1 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

(2)Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for thethree and six months ended July 31, 2025. The Company uses an annual projected tax rate in its computation of the non-GAAP income tax provision, and excludes the direct impact of stock-based compensation, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense - capitalized internal-use software, non-recurring litigation costs and restructuring costs.

Current wording

(2)Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for thethree and nine months ended October 31, 2025. The Company uses an annual projected tax rate in its computation of the non-GAAP income tax provision, and excludes the direct impact of stock-based compensation, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs and restructuring costs.

Previous wording

(4)Includes nil and $0.7 million of employer payroll tax related to the February 2025 restructuring for thethree and six months ended July 31, 2025, respectively.

Current wording

(4)Includes $0.1 million and $0.8 million of employer payroll tax related to the February 2025 restructuring for thethree and nine months ended October 31, 2025, respectively.

Previous wording

As of July 31, 2025, our principal sources of liquidity were $125.4 million of cash and cash equivalents and $348.6 million of highly liquid marketable securities. We believe that our existing cash and cash equivalents, marketable securities and cash from operations will be sufficient to meet our working capital needs, capital expenditures and financing obligations for at least the next 12 months and over the long-term. The majority of our cash is held in the United States and we do not anticipate a need to repatriate cash held outside of the United States. Further, it is our intent to indefinitely reinvest these funds outside the United States, and, therefore, we have not provided for any United States income taxes.

Current wording

As of October 31, 2025, our principal sources of liquidity were $189.6 million of cash and cash equivalents and $290.8 million of highly liquid marketable securities. We believe that our existing cash and cash equivalents, marketable securities and cash from operations will be sufficient to meet our working capital needs, capital expenditures and financing obligations for at least the next 12 months and over the long-term. The majority of our cash is held in the United States and we do not anticipate a need to repatriate cash held outside of the United States. Further, it is our intent to indefinitely reinvest these funds outside the United States, and, therefore, we have not provided for any United States income taxes.

Previous wording

In April 2023, we entered into cash collateral agreements with Silicon Valley Bank (“SVB”) in lieu of a letter of credit facility, which are associated with certain leases. Approximately $1.1 million is outstanding on these cash collateral agreements as of July 31, 2025, which we have classified within restricted cash. As of July 31, 2025, nil and $1.1 million of this restricted cash is recorded within prepaid expenses and other current assets and within other non-current assets, respectively, on the condensed consolidated balance sheets.

Current wording

In April 2023, we entered into cash collateral agreements with Silicon Valley Bank in lieu of a letter of credit facility, which are associated with certain leases. Approximately $1.1 million is outstanding on these cash collateral agreements as of October 31, 2025, which we have classified within restricted cash. As of October 31, 2025, nil and $1.1 million of this restricted cash is recorded within prepaid expenses and other current assets and within other non-current assets, respectively, on the condensed consolidated balance sheets.

Previous wording

Starting in 2023, we entered into cash collateral agreements with J.P. Morgan Bank in lieu of a credit facility, through which approximately $7.3 million is outstanding as of July 31, 2025. As of July 31, 2025, $0.9 million of this restricted cash is recorded within prepaid expenses and other current assets and $6.4 million is recorded within other non-current assets on the condensed consolidated balance sheets.

Current wording

Starting in 2023, we entered into cash collateral agreements with J.P. Morgan Bank in lieu of a credit facility, through which approximately $7.3 million is outstanding as of October 31, 2025. As of October 31, 2025, $1.2 million of this restricted cash is recorded within prepaid expenses and other current assets and $6.1 million is recorded within other non-current assets on the condensed consolidated balance sheets.

Previous wording

On June 4, 2025, we announced that our board of directors had authorized and approved a share repurchase plan (the “2025 Share Repurchase Program”), whereby we intend to repurchase up to $150 million of Class A common stock. During the three and six months ended July 31, 2025, we repurchased 16,494,694 shares if our Class A common stock for a cost of $140.4 million including commissions. All of the shares repurchased have been returned to our authorized but unissued share reserve. As of July 31, 2025, the remaining amount available for repurchase under the 2025 Share Repurchase Program was $9.9 million. Between August 1, 2025 and August 7, 2025, we purchased an additional 1,121,854 shares of our Class A common stock for a cost of $9.9 million including commissions and completed the full purchase authorization of $150 million under the 2025 Share Repurchase Program. For additional information regarding the 2025 Share Repurchase Program, see “Issuer Purchases of Equity Securities” included in Part II, Item 2 of this Form 10-Q and Note 9, Stockholders’ Equity, included in Part I, Item 1 of this Form 10-Q.

Current wording

On June 4, 2025, we announced that our board of directors had authorized and approved a share repurchase plan (the “2025 Share Repurchase Program”), whereby we were authorized to repurchase up to $150 million of Class A common stock. During the three and nine months ended October 31, 2025, the Company repurchased 1,121,854 and 17,616,548 shares, respectively, of its Class A common stock for an aggregate cost of $9.9 million and $150.4 million, respectively, including commissions. All of the shares repurchased have been returned to our authorized but unissued share reserve. During the third quarter of fiscal year 2026, the Company completed the full purchase authorization of $150 million under the 2025 Share Repurchase Program. For additional information regarding the 2025 Share Repurchase Program, see “Issuer Purchases of Equity Securities” included in Part II, Item 2 of this Form 10-Q and Note 9, Stockholders’ Equity, included in Part I, Item 1 of this Form 10-Q.

Previous wording

For the six months ended July 31, 2025, cash provided by operating activities was $118.6 million, which consisted of net income of $11.0 million, adjusted for non-cash expenses of $64.6 million and $42.9 million of net cash flows provided as a result of changes in operating assets and liabilities. The $42.9 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.0 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flow from operations was partially offset by (i) a $17.5 million decrease in accrued expenses and other current liabilities primarily due to the timing of commission and bonus payments and (ii) a $13.2 million decrease in deferred revenue as a result of recognized revenue exceeding billings.

Current wording

For the nine months ended October 31, 2025, cash provided by operating activities was $138.5 million, which consisted of net income of $14.0 million, adjusted for non-cash expenses of $95.4 million and $29.2 million of net cash flows provided as a result of changes in operating assets and liabilities. The $29.2 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $133.4 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flow from operations was partially offset by (i) a $73.9 million decrease in deferred revenue as a result of recognized revenue exceeding billings, (ii) a $20.3 million increase in prepaid expenses and other current assets due to higher capitalized commissions, (iii) a $1.5 million increase in accrued expenses and other current liabilities primarily due to the timing of commission payments and (iv) a $6.2 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Previous wording

For the six months ended July 31, 2024, cash provided by operating activities was $63.0 million, which consisted of net income of $12.5 million, adjusted for non-cash expenses of $46.1 million, and $4.4 million of net cash flows provided as a result of changes in operating assets and liabilities. The $4.4 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected a $67.3 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $26.7 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (ii) a $15.3 million increase in prepaid expenses and other current assets due to higher prepaid hosting and data costs, (iii) a $9.3 million decrease in accounts payable due to timing of vendor payments, (iv) a $7.9 million decrease in deferred revenue as a result of recognized revenue exceeding billings and (v) a $2.7 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Current wording

For the nine months ended October 31, 2024, cash provided by operating activities was $72.2 million, which consisted of net income of $22.9 million, adjusted for non-cash expenses of $67.0 million and $17.7 million of net cash flows used as a result of changes in operating assets and liabilities. The $17.7 million of net cash flows used as a result of changes in our operating assets and liabilities reflected an $80.7 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $60.5 million decrease in deferred revenue as a result of recognized revenue exceeding billings, (ii) a $21.9 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (iii) a $9.1 million increase in prepaid expenses and other current assets due to higher prepaid hosting and data costs, and (iv) a $3.9 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Previous wording

For the six months ended July 31, 2025, cash used in investing activities was $15.4 million and primarily consisted of $269.7 million of purchases of marketable securities and $7.5 million in capitalized internal-use software costs. These decreases in cash flows from investing activities were partially offset by $262.6 million of sales and maturities of marketable securities.

Current wording

For the nine months ended October 31, 2025, cash provided by investing activities was $39.2 million and primarily consisted of $416.0 million of sales and maturities of marketable securities. This increase in cash flows from investing activities was partially offset by $363.9 million of purchases of marketable securities and $11.7 million in capitalized internal-use software costs.

Previous wording

For the six months ended July 31, 2024, cash provided by investing activities was $145.8 million and primarily consisted of $292.3 million of sales and maturities of marketable securities, partially offset by $136.1 million of purchases of marketable securities.

Current wording

For the nine months ended October 31, 2024, cash provided by investing activities was $110.0 million and primarily consisted of $453.9 million of sales and maturities of marketable securities, partially offset by $329.3 million of purchases of marketable securities.

Previous wording

For the six months ended July 31, 2025, cash used in financing activities was $125.1 million, which consisted of payments for the 2025 Share Repurchase Program of $140.8 million, offset by $12.9 million of proceeds from the exercise of stock options and proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”) of $2.8 million.

Current wording

For the nine months ended October 31, 2025, cash used in financing activities was $135.6 million, which consisted of payments for the 2025 Share Repurchase Program of $152.3 million, offset by $13.9 million of proceeds from the exercise of stock options and proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”) of $2.8 million.

Previous wording

For the six months ended July 31, 2024, cash used in financing activities was $253.2 million, which consisted of payments for the 2024 Share Repurchase Program of $273.9 million, offset by $17.2 million of proceeds from the exercise of stock options and proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”) of $3.4 million.

Current wording

For the nine months ended October 31, 2024, cash used in financing activities was $251.6 million, which consisted of payments for the 2024 Share Repurchase Program of $273.9 million, offset by $18.9 million of proceeds from the exercise of stock options and $3.4 million of proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”).