Gitlab Inc.

Previous wording

We believe we have built a highly differentiated platform that gives us an advantage over our competitors by empowering business, development, security, operations, and IT teams to collaborate in a single application across the entire DevSecOps lifecycle. Our technology leadership is an outcome of various factors, including our strong community, network of contributors, and continued enhancement of The DevSecOps platform by developing new features and expanding the functionality of existing features with speed and consistency. We have had a history of releasing enhanc ements to The DevSecOps platform every month and, as of July 31, 2025, had done so for the last 166 months. We intend to continue releasing new software on a monthly cadence.

Current wording

We believe we have built a highly differentiated platform that gives us an advantage over our competitors by empowering business, development, security, operations, and IT teams to collaborate in a single application across the entire DevSecOps lifecycle. Our technology leadership is an outcome of various factors, including our strong community, network of contributors, and continued enhancement of The DevSecOps platform by developing new features and expanding the functionality of existing features with speed and consistency. We have had a history of releasing enhanc ements to The DevSecOps platform every month and, as of October 31, 2025, had done so for the last 169 months. We intend to continue releasing new software on a monthly cadence.

Previous wording

Our future growth depends in large part on our ability to acquire new customers. This, in turn, relies on our ability to reach teams and organizations through our marketing and sales efforts. To this end, we are making investments in our sales and marketing efforts to expand our reach and differentiate The DevSecOps platform from competitive products and services. We believe that eventually the vast majority of organizations will switch to a DevSecOps platform and embrace a single application approach, creating a substantial opportunity to continue to grow our customer base. As a result, our Base Customers increased to 10,338 as of July 31, 2025 from 9,314 as of July 31, 2024, an increase of 11% and our $100,000 ARR customers increased to 1,344 as of July 31, 2025 from 1,076 as of July 31, 2024, an increase of 25%. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define ARR.

Current wording

Our future growth depends in large part on our ability to acquire new customers. This, in turn, relies on our ability to reach teams and organizations through our marketing and sales efforts. To this end, we are making investments in our sales and marketing efforts to expand our reach and differentiate The DevSecOps platform from competitive products and services. We believe that eventually the vast majority of organizations will switch to a DevSecOps platform and embrace a single application approach, creating a substantial opportunity to continue to grow our customer base. As a result, our Base Customers increased to 10,475 as of October 31, 2025 from 9,519 as of October 31, 2024, an increase of 10% and our $100,000 ARR customers increased to 1,405 as of October 31, 2025 from 1,144 as of October 31, 2024, an increase of 23%. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define ARR.

Previous wording

We employ a “land and expand” business strategy that focuses on efficiently acquiring new customers and growing our relationships with existing customers over time. We believe that as our customers realize the benefits of a single application approach, they will increase the use of The DevSecOps platform, enhancing our ability to expand revenue generation within our existing customers over time. As a result of our approach, as of July 31, 2025 and 2024, our Dollar-Based Net Retention Rate was 121% and 126%, respectively. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define Dollar-Based Net Retention Rate.

Current wording

We employ a “land and expand” business strategy that focuses on efficiently acquiring new customers and growing our relationships with existing customers over time. We believe that as our customers realize the benefits of a single application approach, they will increase the use of The DevSecOps platform, enhancing our ability to expand revenue generation within our existing customers over time. As a result of our approach, as of October 31, 2025 and 2024, our Dollar-Based Net Retention Rate was 119% and 124%, respectively. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define Dollar-Based Net Retention Rate.

Previous wording

Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing personnel, advertising, travel and entertainment related expenses, branding and marketing events, promotions, software subscriptions, and our allocated cloud infrastructure expenses for our free tier. Sales and marketing expenses also include sales commissions paid to our sales force. Such costs incurred on acquisition of an initial contract are capitalized and amortized over an estimated period of benefit of three years, and any such expenses paid for the renewal of a subscription are capitalized and amortized over the contractual term ofthe renewal. However, prorated costs for commissions that are incremental to obtain a self-managed license contract are expensed immediately.

Current wording

Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing personnel, advertising, travel and entertainment related expenses, branding and marketing events, promotions, software subscriptions, and our allocated cloud infrastructure expenses for our free tier. Sales and marketing expenses also include sales commissions paid to our sales force. Such costs incurred on acquisition of an initial contract are capitalized and amortized over an estimated period of benefit of three years, and any such expenses paid for the renewal of a subscription are capitalized and amortized over the contractual term ofthe renewal. However, prorated costs for sales commissions that are incremental to obtain a self-managed license contract are expensed immediately.

Previous wording

Other income (expense), net consists primarily of foreign currency transaction gains and losses.

Current wording

Other income (expense), net consists primarily of foreign currency transaction gains and losses and indirect tax credit expense related to the JiHu formation.

Previous wording

Comparison of the Three and Six Months Ended July 31, 2025 and 2024

Current wording

Comparison of the Three and Nine Months Ended October 31, 2025 and 2024

Previous wording

Revenue increased $53.4 million, or 29%, to $236.0 million for the three months ended July 31, 2025 from $182.6 million for the three months ended July 31, 2024. Revenue increased $98.7 million, or 28%, to $450.5 million for the six months ended July 31, 2025 from $351.8 million for the six months ended July 31, 2024. The increasewas primarily due to the ongoing demand for The DevSecOps platform, including adding new customers, the expansion within our existing paid customers, and an increase in our number of customers with $100,000 or greater in ARR. As of July 31, 2025 and 2024, our expansion is reflected by our Dollar-Based Net Retention Rate being 121% and 126%, respectively. We had 1,344 customers with ARR over $100,000 as of July 31, 2025, increasing from 1,076 customers with ARR over $100,000 as of July 31, 2024.

Current wording

Revenue increased $48.3 million, or 25%, to $244.4 million for the three months ended October 31, 2025 from $196.0 million for the three months ended October 31, 2024. Revenue increased $147.0 million, or 27%, to $694.8 million for the nine months ended October 31, 2025 from $547.8 million for the nine months ended October 31, 2024. The increasewas primarily due to the ongoing demand for The DevSecOps platform, including adding new customers, the expansion within our existing paid customers, and an increase in our number of customers with $100,000 or greater in ARR. As of October 31, 2025 and 2024, our expansion is reflected by our Dollar-Based Net Retention Rate being 119% and 124%, respectively. We had 1,405 customers with ARR over $100,000 as of October 31, 2025, increasing from 1,144 customers with ARR over $100,000 as of October 31, 2024.

Previous wording

Revenue attributed to our variable interest entity, JiHu, was $2.2 million and $1.8 millionfor the three months ended July 31, 2025 and 2024, respectively, and $4.1 million and $3.4 millionfor thesix months ended July 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Current wording

Revenue attributed to our variable interest entity, JiHu, was $2.3 million and $1.9 millionfor the three months ended October 31, 2025 and 2024, respectively, and $6.4 million and $5.3 millionfor thenine months ended October 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Previous wording

Cost of revenue increased by $7.1 million, to $28.5 million for the three months ended July 31, 2025 from $21.4 million for the three months ended July 31, 2024, primarily due to an increase of $3.7 million in hosting expenses for increased SaaS and cloud usage. The remaining change was primarily attributable to an increase of $1.6 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.2 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $1.3 million in fees associated with professional services revenue delivery and an increase of $0.6 million of marketplace transaction processing fees. Gross margin remained at 88% for the three months ended July 31, 2025 compared tothe three months ended July 31, 2024.

Current wording

Cost of revenue increased by $10.1 million, to $32.2 million for the three months ended October 31, 2025 from $22.1 million for the three months ended October 31, 2024, primarily due to an increase of $5.7 million in hosting expenses for increased SaaS and cloud usage. The remaining change was primarily attributable to an increase of $2.2 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.3 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $1.6 million in fees associated with professional services revenue delivery and an increase of $0.5 million of marketplace transaction processing fees. Gross margin decreased by 2% at 87% for the three months ended October 31, 2025 compared to 89% for the three months ended October 31, 2024.

Previous wording

Cost of revenue increased by $13.4 million, to $53.5 million for the six months ended July 31, 2025 from $40.1 million for the six months ended July 31, 2024, primarily due to an increase of $6.5 million in third-party hosting costs for increased SaaS and cloud usage. The remaining change was primarily attributable to an increase of $2.5 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.3 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $1.7 million in fees associated with professional services revenue delivery, an increase of $1.3 million of marketplace transaction processing fees, and $0.6 million in the amortization of intangible assets. Gross margin decreased by 1% to 88% for the six months ended July 31, 2025 compared to 89% for the six months ended July 31, 2024.

Current wording

Cost of revenue increased by $23.5 million, to $85.8 million for the nine months ended October 31, 2025 from $62.3 million for the nine months ended October 31, 2024, primarily due to an increase of $12.1 million in third-party hosting costs for increased SaaS and cloud usage. The remaining change was primarily attributable to an increase of $4.7 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.6 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $3.3 million in fees associated with professional services revenue delivery, and an increase of $1.8 million of marketplace transaction processing fees. Gross margin decreased by 1% to 88% for the nine months ended October 31, 2025 compared to 89% for the nine months ended October 31, 2024.

Previous wording

Cost of revenue attributed to our variable interest entity, JiHu, was$0.4 million and $0.5 million the three months ended July 31, 2025 and 2024, and$0.9 million and$1.0 million for thesix months ended July 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Current wording

Cost of revenue attributed to our variable interest entity, JiHu, was$0.5 million for each of the three months ended October 31, 2025 and 2024, and$1.4 million and$1.5 million for thenine months ended October 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Previous wording

Sales and marketing expenses increased by $27.0 million, to $217.2 million for the six months ended July 31, 2025 from $190.2 million for the six months ended July 31, 2024, primarily due to an increase of $22.0 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount and an increase of $4.8 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $4.9 million in commissions expense. The remaining change was primarily attributed to an increase of $2.7 million in hosting expenses.

Current wording

Sales and marketing expenses increased by $9.6 million, to $105.0 million for the three months ended October 31, 2025 from $95.3 million for the three months ended October 31, 2024, primarily due to an increase of $6.6 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount and an increase of $0.3 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $0.8 million in sales commissions expense. The remaining change was primarily attributed to an increase of $1.6 million in hosting expenses.

Previous wording

Sales and marketing expenses increased by $11.8 million, to $109.6 million for the three months ended July 31, 2025 from $97.8 million for the three months ended July 31, 2024, primarily due to an increase of $8.2 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount and an increase of $0.1 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $2.1 million in commissions expense. The remaining change was primarily attributed to an increase of $2.1 million in marketing spend, and an increase of $1.6 million in hosting expenses.

Current wording

Sales and marketing expenses increased by $36.6 million, to $322.1 million for the nine months ended October 31, 2025 from $285.5 million for the nine months ended October 31, 2024, primarily due to an increase of $28.7 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount and an increase of $5.1 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $5.8 million in sales commissions expense. The remaining change was primarily attributed to an increase of $4.3 million in hosting expenses.

Previous wording

Sales and marketing expenses attributed to our variable interest entity, JiHu, were$1.5 million and$1.4 million forthe three months ended July 31, 2025 and 2024, respectively, and$3.0 million for each of thesix months ended July 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Current wording

Sales and marketing expenses attributed to our variable interest entity, JiHu, were$1.7 million and$1.8 million forthe three months ended October 31, 2025 and 2024, respectively, and$4.7 million and$4.9 million for thenine months ended October 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Previous wording

Research and development expenses increased by$10.2 million, to $71.5 million for the three months ended July 31, 2025 from $61.3 million for the three months ended July 31, 2024, primarily due to an increase of $8.2 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $3.1 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was primarily attributed to an increase of $1.4 million in hosting expenses.

Current wording

Research and development expenses increased by$7.4 million, to $68.7 million for the three months ended October 31, 2025 from $61.4 million for the three months ended October 31, 2024, primarily due to an increase of $5.4 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $1.2 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was primarily attributed to an increase of $1.9 million in hosting expenses.

Previous wording

Research and development expenses increased by$21.5 million, to $136.9 million for the six months ended July 31, 2025 from $115.4 million for the six months ended July 31, 2024, primarily due to an increase of $17.5 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $5.0 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was primarily attributed to an increase of $3.3 million in hosting expenses.

Current wording

Research and development expenses increased by$28.8 million, to $205.6 million for the nine months ended October 31, 2025 from $176.8 million for the nine months ended October 31, 2024, primarily due to an increase of $22.9 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $6.2 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was primarily attributed to an increase of $5.2 million in hosting expenses.

Previous wording

Research and development expenses attributed to our variable interest entity, JiHu, were$0.7 million and$0.6 million net gainfor the three months ended July 31, 2025 and 2024, respectively, and$0.3 million and$0.4 million for thesix months ended July 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Current wording

Research and development expenses attributed to our variable interest entity, JiHu, were$0.5 million and$0.6 million for the three months ended October 31, 2025 and 2024, respectively, and$0.7 million and$1.0 million for thenine months ended October 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Previous wording

General and administrative expenses increased by$1.6 million, to$44.7 million for the three months ended July 31, 2025 from$43.2 million for the three months ended July 31, 2024, primarily driven by an increase of $4.1 million in personnel-related expenses, driven by an increase in our average general and administrative headcount and an increase of$2.0 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $0.9 million in software and consulting expenses. This was partially offset by a decrease of $3.8 million from the prior year expense related to fair value remeasurement of acquisition-related contingent consideration.

Current wording

General and administrative expenses increased by$4.8 million, to$50.8 million for the three months ended October 31, 2025 from$46.0 million for the three months ended October 31, 2024, primarily driven by an increase of $5.7 million in personnel-related expenses, driven by an increase in our average general and administrative headcount and an increase of$1.8 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). This was partially offset by a decrease of $1.0 million in charitable donation of common stock.

Previous wording

General and administrative expenses decreased by$4.8 million, to$95.8 million for the six months ended July 31, 2025 from$100.7 million for the six months ended July 31, 2024, primarily driven by $15.4 million expense related to our in-person company-wide event that took place in the six months ended July 31, 2024 and a decrease from the prior year $3.8 million expense related to fair value remeasurement of acquisition-related contingent consideration. This was partially offset by an increase of $12.3 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount and an increase of$8.8 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), and an increase of $1.3 million in consulting expenses.

Current wording

General and administrative expenses were$146.6 million for both the nine months ended October 31, 2025 and 2024. This reflects a decrease of $15.4 million in expense related to our in-person company-wide event that took place in the nine months ended October 31, 2024, a decrease from the prior year $3.8 million expense related to fair value remeasurement of acquisition-related contingent consideration and a decrease of $3.4 million in charitable donations of common stock. This was offset by an increase of $18.0 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount and an increase of$10.7 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below) and an increase of $3.0 million in consulting and software expense.

Previous wording

Stock-based compensation expense increased by $5.3 million, to $54.3 millionfor the three months ended July 31, 2025 from $49.0 million for the three months ended July 31, 2024, primarily due to an increase of $5.6 million of expense from RSUs.

Current wording

Stock-based compens ation expense increased by $3.6 million, to $51.7 millionfor the three months ended October 31, 2025 from $48.0 million for the three months ended October 31, 2024, primarily due to an increase of $4.1 million of expense from RSUs, partially offset by a $1.0 million decrease in PSUs.

Previous wording

Stock-based compensation expense increased by $18.9 million, to $110.1 million for the six months ended July 31, 2025 from $91.2 million for the six months ended July 31, 2024, primarily due to an increase of $15.2 million of expense from RSUs and $2.4 million related to stock options.

Current wording

Stock-based compensation expense increased by $22.5 million, to $161.8 million for the nine months ended October 31, 2025 from $139.3 million for the nine months ended October 31, 2024, primarily due to an increase of $19.3 million of expense from RSUs and $3.2 million related to stock options.

Previous wording

Stock-based compensation attributed to our variable interest entity, JiHu, were $1.0 million and $0.1 million net expense for the three months ended July 31, 2025 and 2024, respectively, and $0.8 million net expense and $0.2 million net gain for the six months ended July 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Current wording

Stock-based compensation attributed to our variable interest entity, JiHu, were $0.7 million net expense and $1.0 million expense for the three months ended October 31, 2025 and 2024, respectively, and $1.4 million net expense and $0.8 million net expense for the nine months ended October 31, 2025 and 2024, respectively. See “Note 10. Joint Venture” to our condensed consolidated financial statements for additional details.

Previous wording

For thethree and six months ended July 31, 2025 compared to thethree and six months ended July 31, 2024, interest income decreased primarily due to income earned from our cash, cash equivalents and short-term investments as a result of lower interest rates during thethree and six months ended July 31, 2025 compared to thethree and six months ended July 31, 2024.

Current wording

Interest income decreased for the three and nine months ended October 31, 2025 compared to thethree and nine months ended October 31, 2024, primarily due to income earned from our cash, cash equivalents and short-term investments as a result of lower interest rates during thethree and nine months ended October 31, 2025 compared to thethree and nine months ended October 31, 2024.

Previous wording

The increase in foreign exchange losses is primarily related to the revaluation of non-functional currency denominated monetary assets and liabilities for the three and six months ended July 31, 2025 compared to thethree and six months ended July 31, 2024.

Current wording

Foreign exchange losses increased for the three and nine months ended October 31, 2025 compared to thethree and nine months ended October 31, 2024 primarily related to the revaluation of non-functional currency denominated monetary assets and liabilities.

Previous wording

Our effective tax rate decreased by approximately 181.4% for the three months ended July 31, 2025 as compared to thethree months ended July 31, 2024. A tax expense is expressed as a negative rate because of our pretax loss. The increase in tax expense from 2024 to 2025 in the same three month period was primarily due to the tax benefit recorded in thethree months ended July 31, 2024 related to the BAPA negotiations between the United States and Dutch tax authorities.

Current wording

Our effective tax rate decreased by approximately 417.6% for the three months ended October 31, 2025 as compared to thethree months ended October 31, 2024. A tax expense is expressed as a negative rate because of our pretax loss. The increase in tax expense from 2024 to 2025 in the same three month period was primarily due to the tax benefit recorded in thethree months ended October 31, 2024 related to the BAPA negotiations between the United States and Dutch tax authorities, and the Company’s recurring foreign operations.

Previous wording

Our effective tax rate decreased by approximately 50.1% for the six months ended July 31, 2025 as compared to the six months ended July 31, 2024. A tax expense is expressed as a negative rate because of our pretax loss. The increase in tax expense from 2024 to 2025 for the same six month period was primarily due to the tax benefit recorded in the six months ended July 31, 2024 related to the BAPA negotiations between the United States and Dutch tax authorities.

Current wording

Our effective tax rate decreased by approximately 97.3% for the nine months ended October 31, 2025 as compared to the nine months ended October 31, 2024. A tax expense is expressed as a negative rate because of our pretax loss. The increase in tax expense from 2024 to 2025 for the same nine month period was primarily due to the tax benefit recorded in the nine months ended October 31, 2024 related to the BAPA negotiations between the United States and Dutch tax authorities, and the Company’s recurring foreign operations.

Previous wording

Our effective tax rate for the three and six months ended July 31, 2025 was different than the U.S. federal statutory tax rate of 21%, primarily due to the Company’s foreign and domestic operations and losses not benefited.

Current wording

Our effective tax rate for the three and nine months ended October 31, 2025 was different than the U.S. federal statutory tax rate of 21%, primarily due to the Company’s foreign and domestic operations and losses not benefited.

Previous wording

We executed the BAPA agreements with the U.S. IRS and the Netherlands DTA on October 10, 2024, and October 22, 2024, respectively. On October 28, 2024, we paid $187.7 million to satisfy the tax assessment issued by the DTA, including accrued interest, which reflected the BAPA negotiations and the agreement to reduce the rate of tax on the gain from the transfer of economic IP rights. As a result of the BAPA and DTA assessment, the 2015 through 2017 tax years are closed for GitLab B.V. Pursuant to the terms in the BAPA, we have filed amended returns for the 2018 through 2023 fiscal years. All U.S.

Current wording

We executed the BAPA agreements with the U.S. IRS and the Netherlands DTA on October 10, 2024, and October 22, 2024, respectively. On October 28, 2024, we paid $187.7 million to satisfy the tax assessment issued by the DTA, including accrued interest, which reflected the BAPA negotiations and the agreement to reduce the rate of tax on the gain from the transfer of economic IP rights. As a result of the BAPA and DTA assessment, the 2015 through 2017 tax years are closed for GitLab B.V. Pursuant to the terms in the BAPA, we have filed amended returns for the 2018 through 2023 fiscal years. All U.S. federal and state tax net operating losses (“NOLs”) and credits, as well as Netherlands NOLs, are not yet recognized due to the determination that they are not more likely than not to be realized.

Previous wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead expenses. We have generated positive cash flows for each of the six months ended July 31, 2025 and 2024 from operating activities.

Current wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead expenses. We have generated positive and negative cash flows for the nine months ended October 31, 2025 and 2024 from operating activities, respectively.

Previous wording

Cash provided by operating activities during the six months ended July 31, 2025 was $155.7 million, primarily consisting of our net loss of $46.3 million, adjusted for non-cash items of $152.0 million (mainly attributable to stock-based compensation expense of $110.1 million and amortization of deferred contract acquisition costs, net of $27.3 million), and net cash inflows of $49.9 million used in changes of our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the decrease of accounts receivable of $69.8 million, the increase in accrued expenses and other liabilities of $4.3 million and the increase in deferred revenue of $9.5 million, partially offset by the decrease in accrued compensation and related expenses of $11.1 million and the decrease in deferred contract acquisition costs of $20.4 million. These changes primarily reflect improved operational performance with successful collections driving lower accounts receivable, higher accrued expenses for research and development spending, ongoing customer subscription growth contributing to increased deferred revenue, and the seasonal payment of prior period commissions and bonuses impacting accrued compensation balances.

Current wording

Cash provided by operating activities during the nine months ended October 31, 2025 was $187.1 million, primarily consisting of our net loss of $55.1 million, adjusted for non-cash items of $222.9 million (mainly attributable to stock-based compensation expense of $161.8 million and amortization of deferred contract acquisition costs, net of $40.7 million), and net cash inflows of $19.2 million provided by changes of our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the decrease of accounts receivable of $46.3 million, the increase in deferred revenue of $17.5 million and the increase in accrued expenses and other liabilities of $1.9 million, partially offset by the decrease in deferred contract acquisition costs of $36.3 million and the decrease in accrued compensation and related expenses of $7.9 million. These changes primarily reflect improved operational performance with successful collections driving lower accounts receivable, higher accrued expenses for research and development spending, ongoing customer subscription growth contributing to increased deferred revenue, and the seasonal payment of prior period sales commissions and bonuses impacting accrued compensation balances.

Previous wording

Cash provided by operating activities during thesix months ended July 31, 2024 was $49.8 million, primarily consisting of our net loss of $43.2 million, adjusted for non-cash items of $119.8 million (mainly attributable to stock-based compensation expense of $91.2 million and amortization of deferred contract acquisition costs, net of $22.9 million), and net cash outflows of $26.8 million provided by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the decrease in deferred contract acquisition costs of $21.0 million, the decrease in accrued expenses and other liabilities of $21.1 million, the decrease in accrued compensation and related expenses of $6.9 million, and the decrease in other non-current liabilities of $8.1 million, partially offset by the decrease in prepaid expenses and other current assets of $13.3 million, and the increase in deferred revenue of $14.8 million.

Current wording

Cash used in operating activities during thenine months ended October 31, 2024 was $127.2 million, primarily consisting of our net loss of $15.4 million, adjusted for non-cash items of $178.2 million (mainly attributable to stock-based compensation expense of $139.3 million and amortization of deferred contract acquisition costs, net of $35.7 million), and net cash outflows of $290.0 million used in changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the increase of accounts receivable of $31.7 million, the increase in deferred contract acquisition costs of $35.7 million, the decrease in accrued expenses and other liabilities of $240.6 million (mainly attributable to $187.7 million for the BAPA payment), the decrease in accrued compensation and related expenses of $8.8 million, and the decrease in other non-current liabilities of $11.1 million, partially offset by the decrease in prepaid expenses and other current assets of $2.5 million, and the increase in deferred revenue of $34.5 million.

Previous wording

Cash used in investing activities during the six months ended July 31, 2025 was $138.5 million, primarily consisting of $134.6 million in purchases of short-term investments, net of proceeds from maturities and sales of short-term investments, and $3.8 million in purchases of property and equipment.

Current wording

Cash used in investing activities during the nine months ended October 31, 2025 was $214.2 million, primarily consisting of $207.4 million in purchases of short-term investments, net of proceeds from maturities and sales of short-term investments, and $6.9 million in additions to property and equipment.

Previous wording

Cash provided by investing activities during thesix months ended July 31, 2024 was $84.2 million, primarily consisting of $112.8 million in proceeds from maturities, net of purchases of short-term investments, partially offset by a $20.2 million payment for a business combination, net of cash acquired, a $7.3 million payment for an asset acquisition, and $1.6 million in purchases of property and equipment.

Current wording

Cash used in investing activities during the nine months ended October 31, 2024 was $8.6 million, primarily consisting of $21.5 million in proceeds from maturities, net of purchases of short-term investments, partially offset by a $20.2 million payment for a business combination, net of cash acquired, a $7.7 million payment for an asset acquisition, and $2.6 million in additions to property and equipment.

Previous wording

Cash provided by financing activities during the six months ended July 31, 2025 was $7.3 million, attributable to proceeds from the issuance of common stock upon stock options exercises and $8.4 million of proceeds from the issuance of common stock under the ESPP.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2025 was $23.3 million, attributable to $15.5 million proceeds from the issuance of common stock upon stock options exercises and $8.4 million of proceeds from the issuance of common stock under the ESPP, partially offset by $0.5 million of payments for taxes related to net share settlement of equity awards.

Previous wording

Cash provided by financing activities during thesix months ended July 31, 2024 was $18.0 million, attributable to $10.1 million proceeds from the issuance of common stock upon stock options exercises and $7.9 million of proceeds from the issuance of common stock under the ESPP.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2024 was $20.9 million, attributable to $17.9 million proceeds from the issuance of common stock upon stock options exercises, and $7.9 million of proceeds from the issuance of common stock under the ESPP, partially offset by $4.9 million of settlement of acquisition related contingent cash consideration.

Previous wording

Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.

Current wording

Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used fora dditions to property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments inadditions to property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.