Zoom Communications, Inc.

Previous wording

AI is core to Zoom’s product innovation. Over the past year, Zoom continues to invest in AI, expanding its agentic AI skills, agents, and models, focusing on three key areas: supporting individual productivity, powering better collaboration, and helping customer-facing teams get more done, do better work, and strengthen relationships with AI Companion. Our federated approach to AI dynamically leverages multiple Large Language Models (“LLMs”) (including those from OpenAI, Anthropic, and Meta), as well as Small Language Models (“SLMs”), making AI more accessible and affordable so that more people can incorporate it in their day-to-day workflows. In line with our commitment to responsible AI, Zoom does not use customer audio, video, chat, screen sharing, attachments, or other communications-like customer content (such as poll results, whiteboard, and reactions) to train Zoom’s or its third-party AI models.

Current wording

AI is core to Zoom’s product innovation. We continue to advance our AI capabilities, focusing on three priorities that bring our system of action to life: elevating Zoom Workplace with AI, driving growth of new AI products, and scaling AI-first customer experience. Zoom AI Companion is our smart assistant designed to empower workers to increase productivity, improve team effectiveness, and enhance skills. Our federated approach to AI enables the use of multiple large language models (“LLMs”), including Zoom’s own, to complete tasks for users. Zoom’s federated approach allows its platform architecture to dynamically select from multiple AI models, which currently include those from OpenAI, Anthropic, and NVIDIA, making AI accessible and affordable so more people can incorporate it into their day-to-day workflows. In addition to AI Companion, we have embedded AI capabilities across our broader product portfolio, including Zoom Revenue Accelerator and Zoom Virtual Agent, to support sales and customer service use cases. With these advancements in AI Companion and across our AI-enabled products, we believe we are well-positioned as AI technology continues to advance. We are enhancing our agentic AI capabilities within AI Companion to continue delivering practical value to customers while advancing our ambitious vision of AI that truly amplifies human potential. In line with our commitment to responsible AI, Zoom does not use customer audio, video, chat, screen sharing, attachments, or other communications (such as poll results, whiteboard, and reactions) to train Zoom’s or third-party AI models.

Previous wording

Zoom’s platform prioritizes security and privacy, with 30 co-located data centers globally and robust encryption options. We are committed to delivering high-quality, real-time video, even in low-bandwidth conditions, while safeguarding our customers' data.

Current wording

Zoom’s platform prioritizes security and privacy, with 18 co-located data centers globally and robust encryption options. We are committed to safeguarding our customers' data.

Previous wording

Revenue is driven by subscriptions to Zoom Workplace and Zoom Business Services. Our core offerings include Zoom Workplace Pro, Business, and Enterprise bundles, with vertical-specific plans for Education, Healthcare, and Government. We also offer Zoom Phone, with regional and global calling plans, and Zoom Contact Center, providing advanced customer experience solutions designed to meet diverse customer needs.

Current wording

Revenue is driven by subscriptions to Zoom Workplace and Zoom Business Services. Our core offerings include Zoom Workplace Pro, Business, and Enterprise bundles, as well as vertical-specific plans for Education, Healthcare, and Government. We also offer Zoom Phone, with regional and international calling plans, and Zoom Contact Center, providing advanced customer experience solutions designed to meet diverse customer needs.

Previous wording

Our revenue was $1,229.8 million and $1,177.5 million for the three months ended October 31, 2025 and 2024, respectively, representing period-over-period growth of 4.4%. We had net income of $612.9 million and $207.1 million for the three months ended October 31, 2025 and 2024, respectively. Our revenue was $3,621.8 million and $3,481.3 million for the nine months ended October 31, 2025 and 2024, respectively, representing period-over-period growth of 4.0%. We had net income of $1,226.1 million and $642.4 million for the nine months ended October 31, 2025 and 2024, respectively. Net cash provided by operating activities was $1,634.5 million and $1,520.7 million for the nine months ended October 31, 2025 and 2024, respectively.

Current wording

Our revenue was $1,239.0 million and $1,174.7 million for the three months ended April 30, 2026 and 2025, respectively, representing period-over-period growth of 5.5%. We generated net income of $425.7 million and $254.6 million for the three months ended April 30, 2026 and 2025, respectively. Net cash provided by operating activities was $521.6 million and $489.3 million for the three months ended April 30, 2026 and 2025, respectively.

Previous wording

In recent months, intensifying trade tensions and global market volatility as well as ongoing foreign currency fluctuations have impacted the macroeconomic environment. We continue to monitor the potential effects of these circumstances as well as the overall global economy and geopolitical landscape on our business and financial results. The implications of macroeconomic conditions on our business, results of operations, and overall financial position, particularly in the long term, remain uncertain.

Current wording

We continue to monitor the potential effects of these circumstances as well as the overall global economy and geopolitical landscape on our business and financial results. The implications of macroeconomic conditions on our business, results of operations, and overall financial position, particularly over the long term, remain uncertain.

Previous wording

We are focused on continuing to grow the number of customers who use Zoom Workplace and Zoom Business Services. Our operating results and growth prospects will depend, in part, on our ability to attract new customers. While we believe there is a significant market opportunity that our platform addresses, it is difficult to predict customer adoption rates or the future growth rate and size of the market for our platform. We will need to continue to invest in sales and marketing in order to address this opportunity by hiring, developing, and retaining talented sales personnel who are able to achieve desired productivity levels in a reasonable period of time.

Current wording

We review the following key business metrics and strategic factors to measure our performance, identify trends, formulate financial projections, and make strategic decisions, including evaluating our ability to grow the number of customers who use our AI-first, open work platform. Our operating results and growth prospects will depend, in part, on our ability to attract new customers. While we believe there is a significant market opportunity for our platform, it is difficult to predict customer adoption rates, the future growth rate, or the size of the market for our platform.

Previous wording

Customers Contributing More Than $100,000 of Trailing 12 Months Revenue

Current wording

Large Enterprise Customers - Customers Contributing More Than $100,000 of Trailing 12 Months Revenue

Previous wording

We focus on growing the number of customers that contribute more than $100,000 of trailing 12 months revenue as it is a measure of our ability to scale with our customers and attract larger organizations to Zoom. Revenue from these customers represented 32.4% and 30.8% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 32.5% and 30.7% of total revenue for the nine months ended October 31, 2025 and 2024, respectively. As of October 31, 2025 and 2024, we had 4,363 and 3,995 customers, respectively, that contributed more than $100,000 of trailing 12 months revenue, demonstrating our increasing penetration of larger organizations, including enterprises. These customers are a subset of Enterprise customers.

Current wording

We focus on growing the number of customers that contribute more than $100,000 of trailing 12 months revenue as it is a measure of our ability to scale with our customers and attract larger organizations to Zoom. Revenue from these customers represented 32.7% and 31.9% of total revenue for the three months ended April 30, 2026 and 2025, respectively. As of April 30, 2026 and 2025, we had 4,534 and 4,192 customers, respectively, that contributed more than $100,000 of trailing 12 months revenue, demonstrating our increasing penetration of larger organizations. These customers are a subset of Enterprise customers.

Previous wording

Expansion of Zoom Across Existing Enterprise Customers

Current wording

Expansion of Zoom Across Existing Enterprise Customers - Net Dollar Expansion Rate

Previous wording

We believe that there is a large opportunity for growth with many of our existing customers. Historically, customers have increased the size of their subscriptions as they have expanded their use of our platform across their operations. Over the past few years, macroeconomic headwinds have resulted in slower hiring and higher seat count downsells from our existing Enterprise customers in key markets, which have impacted the rate of expansion and have caused our net dollar expansion rate for Enterprise customers to drop below one hundred percent. Despite the decline, we believe there are still opportunities for future growth with our existing customers as we innovate our platform with additional product offerings and the use of AI. This expansion in the use of our platform also provides us with opportunities to market and sell additional products to our customers, such as Zoom Phone, Zoom Contact Center, and Workvivo. To address this opportunity and expand the use of our products with our existing customers, we will need to maintain the reliability of our platform and produce new features and functionality that are responsive to our customers’ requirements for enterprise-grade solutions.

Current wording

We believe that there is a large opportunity for growth with many of our existing Enterprise customers. Historically, customers have increased the size of their subscriptions as they expanded their use of our AI-first, open work platform across their operations. Over the past few years, macroeconomic headwinds resulted in slower hiring and higher seat count downsells from our existing Enterprise customers in key markets, which impacted the rate of expansion and caused our net dollar expansion rate for Enterprise customers to drop below one hundred percent. Despite the decline, we believe there are still opportunities for future growth with our existing Enterprise customers as we innovate our platform with additional product offerings and by incorporating AI. Expansion in the use of our platform also provides us with opportunities to market and sell additional products to our customers, such as Zoom Phone, Zoom Contact Center, and Workvivo. To address this opportunity and expand the use of our products by our existing Enterprise customers, we will need to maintain the reliability of our platform and produce new features and functionality that are responsive to our customers’ requirements for enterprise-grade solutions.

Previous wording

We quantify our expansion across existing Enterprise customers through our net dollar expansion rate. We define Enterprise customers as distinct business units who have been engaged by either our direct sales team, resellers, or strategic partners. Revenue from Enterprise customers represented 60.3% and 59.4% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 60.1% and 58.8% of total revenue for the nine months ended October 31, 2025 and 2024, respectively. Our net dollar expansion rate includes the increase in user adoption within our Enterprise customers, as our subscription revenue is primarily driven by the number of paid licenses within a customer and the purchase of additional products, and compares our subscription revenue from the same set of Enterprise customers across comparable periods. We calculate net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from all Enterprise customers as of 12 months prior (“Prior Period ARR”). We define ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. We then calculate the ARR from these Enterprise customers as of the current period end (“Current Period ARR”), which includes any upsells, contractions, and attrition. We divide the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, we take an average of the net dollar expansion rate over the trailing 12 months. Our net dollar expansion rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our Enterprise customers. Our trailing 12-month net dollar expansion rate for Enterprise customers was 98% as of both October 31, 2025 and 2024.

Current wording

We quantify our expansion across existing Enterprise customers through our net dollar expansion rate. We define Enterprise customers as distinct business units who have been engaged by either our direct sales team, resellers, or strategic partners. Revenue from Enterprise customers represented 61.0% and 60.0% of total revenue for the three months ended April 30, 2026 and 2025, respectively. Our net dollar expansion rate includes the increase in user adoption within our Enterprise customers, as our subscription revenue is primarily driven by the number of paid licenses within a customer and the purchase of additional products, and compares our subscription revenue from the same set of Enterprise customers across comparable periods. We calculate net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from all Enterprise customers as of 12 months prior (“Prior Period ARR”). We define ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. We then calculate the ARR from these Enterprise customers as of the current period end (“Current Period ARR”), which includes any upsells, contractions, and attrition. We divide the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, we take an average of the net dollar expansion rate over the trailing 12 months. Our net dollar expansion rate may fluctuate as a result of a number of factors, including the level of penetration within our Enterprise customer base, expansion of products and features, and our ability to retain our Enterprise customers. Our trailing 12-month net dollar expansion rate for Enterprise customers was 99% and 98% as of April 30, 2026 and 2025, respectively.

Previous wording

In addition to Enterprise customers, we also have a significant number of customers who subscribe to our services directly through our website (“Online customers” or “Online business”). Online customers represent a diverse customer base, ranging from individual consumers to small and medium-sized businesses. We continue to focus on acquisition and retention of our Online customer base through various strategies to improve the features and functionalities of our products and services. Revenue from Online customers represented 39.7% and 40.6% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 39.9% and 41.2% of total revenue for the nine months ended October 31, 2025 and 2024, respectively. Our ability to retain these Online customers will have an impact on our future revenue. The online monthly average churn for our Online customers was 2.7% per month for both the three months ended October 31, 2025 and 2024, and 2.8% and 3.0% per month for the nine months ended October 31, 2025 and 2024, respectively. One of the dynamics in the Online portion of the business is the MRR contribution from customers who have retained Zoom services for a certain portion of time as these customers tend to maintain their subscriptions and contribute meaningfully to the Online business. As of

Current wording

In addition to Enterprise customers, we also have a significant number of customers who subscribe to our services directly through our website (“Online customers” or “Online business”). Online customers represent a diverse customer base, ranging from individual consumers to small and medium-sized businesses. We continue to focus on acquisition and retention of our Online customer base through various strategies to improve the features and functionalities of our products and services. Revenue from Online customers represented 39.0% and 40.0% of total revenue for the three months ended April 30, 2026 and 2025, respectively. Our ability to retain these Online customers will have an impact on our future revenue. The online monthly average churn for our Online customers was 3.0% and 2.8% per month for the three months ended April 30, 2026 and 2025, respectively. One of the dynamics in the Online portion of the business is the MRR contribution from customers who have retained Zoom services for a certain portion of time as these customers tend to maintain their subscriptions and contribute meaningfully to the Online business. As of April 30, 2026 and 2025, the percentage of total Online MRR from Online customers with a continuous term of service of at least 16 months was 74.4% and 74.2%, respectively.

Previous wording

We continue to invest and enhance the capabilities of Zoom Workplace and Zoom Business Services. This includes ongoing investments in AI, with a focus on expanding agentic AI skills, agents, and models. Recent product innovations and enhancements include Zoom AI Companion, Zoom Docs, Zoom Tasks and continued enhancements for Phone, Meetings, Zoom Rooms, Sessions, Webinars, Events, Workvivo, Contact Center, and more. As of October 31, 2025, we also delivered Zoom Phone calling plans in more than 45 countries and territories.

Current wording

We continue to invest and enhance the capabilities of Zoom Workplace and Zoom Business Services, including ongoing investments in AI, with a focus on expanding agentic AI skills, agents, and models.

Previous wording

Zoom is an open platform, and third-party developers are a key component of our strategy for platform innovation to make it easier for customers and developers to extend our product portfolio with new functionalities. We believe that as more developers and other third parties use our platform to integrate major third-party applications, we will become the ubiquitous platform for communications and collaboration. We will need to expend additional resources to continue introducing new products, features, and functionality, and supporting the efforts of third parties to enhance the value of our platform with their own applications.

Current wording

Zoom is an AI-first, open work platform, and third-party developers are a key component of our strategy for platform innovation to make it easier for customers and developers to extend our product portfolio with new functionalities. We believe that as more developers and other third parties use our platform to integrate major third-party applications, we will become the ubiquitous platform for modern work as a system of action, turning live collaboration into completed results and moving conversations to completion. We will need to expend additional resources to continue introducing new products, features, and AI functionality, and supporting the efforts of third parties to enhance the value of our platform with their own applications.

Previous wording

Our platform addresses the communications and collaboration needs of users worldwide, and while our international revenue has stabilized in recent quarters, we continue to view international expansion as a meaningful long-term opportunity. Our revenue outside of the Americas (APAC and EMEA) represented 27.9% and 28.1% of our total revenue for the three months ended October 31, 2025 and 2024, respectively, and 28.0% and 28.2% of our total revenue for the nine months ended October 31, 2025 and 2024, respectively. We use strategic partners and resellers to sell in certain international markets where we have limited or no direct sales presence. While we believe global demand for our platform will continue to increase as international market awareness of Zoom grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems, and commercial markets.

Current wording

Our AI-first, open work platform addresses the communications and collaboration needs of users worldwide, and international expansion remains a meaningful component of our long-term growth strategy. Our revenue outside of the Americas (APAC and EMEA) represented 27.9% and 27.8% of our total revenue for the three months ended April 30, 2026 and 2025, respectively. We use strategic partners and resellers to sell in certain international markets where we have limited or no direct sales presence. While we believe global demand for our platform will continue to increase as international market awareness of Zoom grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems, and commercial markets.

Previous wording

We derive our revenue from subscription agreements with customers for access to our unified communications and collaboration platform. Our customers generally do not have the ability to take possession of our software. We also provide services, which include professional services, consulting services, and online event hosting, which are generally considered distinct from the access to our unified communications and collaboration platform. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services over the contract term, which can include a free period discount.

Current wording

We derive our revenue from subscription agreements with customers for access to our AI-first, open work platform. Our customers generally do not have the ability to take possession of our software. We also provide services, which include professional services, consulting services, and online event hosting, which are generally considered distinct from the access to our AI-first, open work platform. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services over the contract term, which can include a free period discount.

Previous wording

Cost of revenue primarily consists of costs related to hosting our unified communications and collaboration platform and providing general operating support services to our customers. These costs are related to our co-located data centers, third-party cloud hosting, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software development and acquired intangible assets, royalty payments, and allocated overhead.

Current wording

Cost of revenue primarily consists of costs related to hosting our AI-first, open work platform and providing general operating support services to our customers. These costs are related to our co-located data centers, third-party cloud hosting, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software development and acquired intangible assets, royalty payments, and allocated overhead.

Previous wording

Sales and marketing expenses primarily consist of personnel-related expenses directly associated with our sales and marketing organization. Other sales and marketing expenses include advertising and promotional events to promote our brand, such as awareness programs, digital programs, public relations, tradeshows, and our user conference, Zoomtopia, and allocated overhead. Sales and marketing expenses also include credit card processing fees related to sales and amortization of deferred contract acquisition costs.

Current wording

Sales and marketing expenses primarily consist of personnel-related expenses directly associated with our sales and marketing organization. Other sales and marketing expenses include advertising and promotional events to promote our brand, such as awareness programs, digital programs, public relations, tradeshows, and our user conference, Zoomtopia, and allocated overhead. Sales and marketing expenses also include credit card processing fees related to customer transactions and amortization of deferred contract acquisition costs.

Previous wording

Revenue for the three months ended October 31, 2025 increased by $52.3 million, or 4.4%, compared to the three months ended October 31, 2024. The increase was driven by 6.1% growth in revenue from Enterprise customers, of which 67% and 33% was from new and existing customers, respectively, and by a 2.0% increase in revenue from Online customers.

Current wording

Revenue for the three months ended April 30, 2026 increased by $64.3 million, or 5.5%, compared to the three months ended April 30, 2025. The increase was driven by 7.2% growth in revenue from Enterprise customers, of which 47.3% and 52.7% was from new and existing customers, respectively, and by a 2.8% increase in revenue from Online customers.

Previous wording

Cost of revenue for the three months ended October 31, 2025 decreased by $12.1 million, or 4.3%, compared to the three months ended October 31, 2024. The decline was mainly due to a $7.3 million reduction in stock-based compensation as well as lower hosting costs. The reduction in stock-based compensation is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Current wording

Cost of revenue for the three months ended April 30, 2026 decreased by $4.1 million, or 1.5%, compared to the three months ended April 30, 2025. The decline was mainly due to a $6.5 million reduction in stock-based compensation. The reduction in stock-based compensation is due to changes in our equity program.

Previous wording

Gross margin grew to 77.9% for the three months ended October 31, 2025, from 75.9% for the three months ended October 31, 2024. The increase in gross margin was mainly due to the reasons described above.

Current wording

Gross margin grew to 77.9% for the three months ended April 30, 2026, from 76.3% for the three months ended April 30, 2025. The increase in gross margin was driven by the decrease in stock-based compensation as well as other operational efficiencies.

Previous wording

Research and development expense for the three months ended October 31, 2025 decreased by $12.9 million, or 5.8%, compared to the three months ended October 31, 2024. The decrease was mainly driven by an $19.7 million decrease in stock-based compensation due to changes in our equity program partially offset by a$6.6 million increasein personnel-related expenses as a result of higher headcount as we invested in AI innovation.

Current wording

Research and development expense for the three months ended April 30, 2026 increased by $22.5 million, or 11.0%, compared to the three months ended April 30, 2025. The increase was mainly driven by a$20.0 million increasein personnel-related expenses as a result of higher headcount as we invested in AI innovation, partially offset by a $1.9 million decrease in stock-based compe nsation due to changes in our equity program.

Previous wording

General and administrative expense for the three months ended October 31, 2025 decreased by $31.4 million, or 24.9%, compared to the three months ended October 31, 2024. The favorable variance was primarily driven by the prior-year accrual of $18.0 million related to an SEC investigation and a $9.4 million decrease in stock-based compe nsation due to changes in our equity program.

Current wording

General and administrative expense for the three months ended April 30, 2026 decreased by $6.1 million, or 5.9%, compared to the three months ended April 30, 2025. The decrease was primarily driven by a $3.8 million decrease in stock-based compe nsation due to changes in our equity program.

Previous wording

Gains on strategic investments, net for the three months ended October 31, 2025 and October 31, 2024 were primarily driven by changes in the fair value of our privately held securities.

Current wording

Gains on strategic investments, net for the three months ended April 30, 2026 were primarily driven by changes in the fair value of our privately held securities, which were attributable to investments other than Anthropic, while losses on strategic investments, net for the three months ended April 30, 2025 were primarily driven by changes in the fair value of our publicly held securities.

Previous wording

Other income, net for the nine months ended October 31, 2025 decreased by $2.9 million, or 1.1%, compared to the nine months ended October 31, 2024. The decrease was primarily due to a $13.6 million decrease in interest income from cash and marketable securities resulting from the declining interest rate environment, largely offset by a$10.4 million increase from changes in foreign currency exchange rates.

Current wording

Other income, net for the three months ended April 30, 2026 decreased by $18.9 million, or 21.6%, compared to the three months ended April 30, 2025. The decrease was primarily driven by an $11.5 million decrease in interest income from cash and marketable securities and a $7.0 million unfavorable impact from changes in foreign currency exchange rates.

Previous wording

Provision for income taxes for the three months ended October 31, 2025 increased by $108.5 million, or 147.9%, compared to the three months ended October 31, 2024. The year-over-year change was primarily due to an increase in income before taxes partially offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Current wording

Provision for income taxes for the three months ended April 30, 2026 increased by $44.8 million, or 73.2%, compared to the three months ended April 30, 2025. The year-over-year change was primarily due to an increase in income before taxes partially offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Previous wording

As of October 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.9 billion, which were held for working capital purposes and for investment in growth opportunities. Our marketable securities generally consist of high-grade commercial paper, corporate bonds, agency bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills.

Current wording

As of April 30, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.7 billion, which were held for working capital purposes and for investment in growth opportunities. Our marketable securities generally consist of agency bonds, U.S. government agency securities, and treasury bills.

Previous wording

Except for the additional outstanding non-cancelable purchase obligations disclosed in Footnote 6, Commitments and Contingencies, included in Part I, Item 1 on this Form 10-Q, there have been no material changes to our material cash requirements from known contractual and other obligations from those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended January 31, 2025, filed with the SEC on February 28, 2025.

Current wording

There have been no material changes to our cash requirements from known contractual and other obligations from those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended January 31, 2026, filed with the SEC on February 27, 2026.

Previous wording

Our largest source of operating cash is cash collections from our customers for subscriptions to our platform. Our primary uses of cash from operating activities are for employee-related expenditures, costs related to hosting our platform, and marketing expenses. Net cash provided by operating activities is impacted by our net income adjusted for certain non-cash items, such as stock-based compensation expense, depreciation and amortization expenses, as well as the effect of changes in operating assets and liabilities.

Current wording

Our largest source of operating cash is cash collections from our customers for subscriptions to our AI-first, open work platform. Our primary uses of cash from operating activities are for employee-related expenditures, costs related to hosting our platform, and marketing expenses. Net cash provided by operating activities is impacted by our net income adjusted for certain non-cash items, such as stock-based compensation expense, depreciation and amortization expenses, as well as the effect of changes in operating assets and liabilities.

Previous wording

Net cash used in investing activities of $330.2 million for the nine months ended October 31, 2025 was primarily driven by net purchases of marketable securities of $257.2 million, purchases of property and equipment of $48.9 million, and purchases of strategic investments of $27.5 million.

Current wording

Net cash used in investing activities of $480.7 million for the three months ended April 30, 2026 was primarily driven by net purchases of marketable securities of $314.1 million, purchases of strategic investments of $145.7 million, which included an additional $46.0 million investment in preferred stock of Anthropic, and purchases of property and equipment of $21.1 million.

Previous wording

Net cash used in investing activities of $1,101.1 million for the nine months ended October 31, 2024 was primarily due to net purchases of marketable securities of $964.3 million, purchases of property and equipment of $128.2 million, and purchases of strategic investments of $13.5 million.

Current wording

Net cash used in investing activities of $125.1 million for the three months ended April 30, 2025 was due to net purchases of marketable securities of $99.2 million and purchases of property and equipment of $25.9 million.

Previous wording

Net cash used in financing activities of $699.1 million for the nine months ended October 31, 2024 was primarily due to cash paid for repurchases of common stock of $739.3 million, partially offset by proceeds from the issuance of common stock under our ESPP of $34.3 million.

Current wording

Net cash used in financing activities of $394.1 million for the three months ended April 30, 2026 was primarily due to cash paid for repurchases of common stock of $361.7 million and taxes paid related to net share settlement of equity awards of $62.2 million, partially offset by proceeds from employee equity transactions to be remitted to employees and tax authorities, net, of $29.2 million.

Previous wording

Net cash used in financing activities of $1,451.4 million for the nine months ended October 31, 2025 was primarily due to cash paid for repurchases of common stock, including excise taxes, of $1,297.0 million and taxes paid related to net share settlement of equity awards of $192.3 million, partially offset by proceeds from the issuance of common stock under our ESPP of $36.1 million.

Current wording

Net cash used in financing activities of $490.5 million for the three months ended April 30, 2025 was primarily due to cash paid for repurchases of common stock of $418.0 million and taxes paid related to net share settlement of equity awards of

Previous wording

The timing and the amount of any repurchased Class A common stock will be determined by our management based on its evaluation of market conditions and other factors. The repurchase program will be funded using our working capital. Any repurchased shares of Class A common stock will be retired. The repurchase program does not obligate us to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at our discretion.

Current wording

The timing and the amount of any repurchased Class A common stock will be determined by our management based on its evaluation of market conditions and other factors. The repurchase program will be funded using our working capital. Any repurchased shares of Class A common stock will be retired. The repurchase program, which has no expiration date, does not obligate us to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at our discretion.

Previous wording

During the three and nine months ended October 31, 2025, we repurchased and subsequently retired 5,111,488 and 16,624,306 shares of our Class A common stock, respectively, for an aggregate amount of $414.4 million and $1,295.8 million, respectively.

Current wording

During the three months ended April 30, 2026, we repurchased and subsequently retired 4,169,208 shares of our Class A common stock for an aggregate amount of $361.7 million. As of April 30, 2026, $625.0 million of the repurchase authorization remained available.