PROCORE TECHNOLOGIES, INC.

Previous wording

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes thereto and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Form 10-K. You should review the disclosures under the section titled“Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and under Part I, Item 1A,“Risk Factors” in our 2025 Form 10-K for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. These statements, like all statements in this report, speak only as of their date (unless another date is indicated), and we undertake no obligation to update or revise these statements in light of future developments, except as required by law.

Current wording

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes thereto and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K dated February 24, 2026 (our“2025 Form 10-K”). You should review the disclosures under the section titled“Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and under Part I, Item 1A,“Risk Factors” in our 2025 Form 10-K for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. These statements, like all statements in this report, speak only as of their date (unless another date is indicated), and we undertake no obligation to update or revise these statements in light of future developments, except as required by law.

Previous wording

To support these efforts, we evolved our GTM operating model by, among other things, transitioning to a general manager model. We added new product and technical specialists to our GTM teams to match the evolving needs of our customers’ diverse buyer personas with our products and services and to help our customers understand and implement the full potential of our platform. Evolving our GTM operating model required new investment as we increased our sales headcount, ramped and invested in additional enablement for our sales teams, and added the new specialists to our teams. We believe that these investments have allowed, and will continue to allow, us to build stronger and deeper customer relationships and provide additional value to our customers. We have seen, and may continue to see, some disruptions and adverse impacts to our financial and operating results in the near-term in connection with the evolved GTM operating model. Over the longer term, if we fail to realize the benefits of our evolved GTM operating model, or otherwise fail to acquire new customers, retain existing customers, or expand existing customers’ use of our products, services, and platform, our business, financial condition, results of operations, and prospects will be adversely affected, potentially materially. Notwithstanding these risks, we believe that the evolved GTM operating model will improve our long-term operating efficiency, best position us for sustainable long-term growth, and enhance our ability to capture our large market opportunity.

Current wording

To support these efforts, beginning in 2024 and continuing through 2025, we evolved our GTM operating model by, among other things, transitioning to a general manager model, adding new product and technical specialists to our GTM teams and, increasing our sales headcount. We believe that the evolved GTM operating model will improve our long-term operating efficiency, best position us for sustainable long-term growth, and enhance our ability to capture our market opportunity. However, if we are not able to realize the benefits of this model, or otherwise fail to acquire new customers, retain existing customers, or expand existing customers’ use of our products, services, and platform, our business, financial condition, results of operations, and prospects will be adversely affected, potentially materially.

Previous wording

Despite macroeconomic challenges, we have seen an increase in the number of customers that contributed more than $100,000 of annual recurring revenue ("ARR"), which increased from 2,418 as of March 31, 2025 to 2,795 as of March 31, 2026, reflecting a year-over-year growth rate of 16%. All aforementioned customer counts exclude customers acquired from business combinations that do not have standard Procore annual contracts.

Current wording

Despite macroeconomic challenges, we have seen an increase in the number of customers that contributed more than $100,000 of annual recurring revenue (“ARR”), which increased from 2,517 as of June 30, 2025 to 2,871 as of June 30, 2026, reflecting a year-over-year growth rate of 14%. The number of customers that contributed more than $100,000 of ARR represented 68% and 64% of our total ARR as of June 30, 2026 and 2025, respectively. As of June 30, 2026, 59%, 26%, and 15% of our ARR was generated from general contractors, owners, and specialty contractors, respectively. All aforementioned customer counts, and the customer ARR mix exclude customers acquired from business combinations that do not have standard Procore annual contracts.

Previous wording

We believe that cRPO is a key metric to track our ability to win fixed revenue commitments from new customers and to expand and retain existing customers. However, as our average contract duration continues to lengthen due to increased purchases of multi-year subscriptions, our cRPO growth rate may not directly correlate with our actual or expected revenue growth in current or future periods. As of March 31, 2026, cRPO increased by $176.9 million, or 21%, year-over-year. Approximately 41% of the increase was attributable to existing customers and 59% was attributable to new customers acquired during the twelve months ended March 31, 2026. We expect RPO to change from period to period primarily due to the size, timing, and duration of new customer contracts and customer renewals.

Current wording

We believe that cRPO is a key metric to track our ability to win fixed revenue commitments from new customers and to expand and retain existing customers. However, as our average contract duration continues to lengthen due to increased purchases of multi-year subscriptions, our cRPO growth rate may not directly correlate with our actual or expected revenue growth in current or future periods. As of June 30, 2026, cRPO increased by $193.0 million, or 22%, year-over-year. Approximately 42% of the increase was attributable to existing customers and 58% was attributable to new customers acquired during the twelve months ended June 30, 2026. We expect RPO to change from period to period primarily due to the size, timing, and duration of new customer contracts and customer renewals.

Previous wording

We intend to continue to invest in building additional products, services, offerings, features, and functionality that expand our capabilities and facilitate the extension of our platform. For example, in January 2026, we acquired Toric Labs, Inc. (d/b/a Datagrid), a leader in agentic AI solutions for the construction industry, to accelerate our AI strategy, and in January 2025, we acquired Novorender AS, a leader in advanced building information model rendering technology, to enhance our capabilities for large-scale construction projects. We also intend to continue to evaluate strategic acquisitions and investments in businesses and technologies to drive product and market expansion. While the impact of these developments are not yet material to our business, our future success is dependent on our ability to successfully develop or acquire, market, and sell existing and new products and services to both new and existing customers.

Current wording

We intend to continue to invest in building additional products, services, offerings, features, and functionality that expand our capabilities and facilitate the extension of our platform. For example, in January 2026, we acquired Toric Labs, Inc. (d/b/a Datagrid), a leader in agentic AI solutions for the construction industry, to accelerate our AI strategy, and in January 2025, we acquired Novorender AS, a leader in advanced building information modeling rendering technology, to enhance our capabilities for large-scale construction projects. In addition, in July 2026, we entered into the DroneDeploy Merger Agreement to acquire DroneDeploy, a leader in reality capture and robotic automation. We also intend to continue to evaluate strategic acquisitions and investments in businesses and technologies to drive product and market expansion. While the impact of these developments are not yet material to our business, our future success is dependent on our ability to successfully develop or acquire, market, and sell existing and new products and services to both new and existing customers.

Previous wording

We see international expansion as a major, and largely greenfield, opportunity for growth as we look to capture a larger part of the worldwide construction market. We have an international sales and marketing presence with offices in Sydney, Australia; Toronto, Canada; London, England; Dublin, Ireland; and Dubai, United Arab Emirates (“UAE”). As a result of our international efforts, we support multiple languages and currencies. Non-U.S. revenue as a percentage of our total revenue was 15% for both of the three month periods ended March 31, 2026 and 2025. We determine the percentage of non-U.S. revenue based on the billing location of each customer. Fluctuations in foreign currencies may positively or negatively impact the amount of revenue that we report for our foreign subsidiaries upon the translation of these amounts into U.S. Dollars.

Current wording

We see international expansion as a major, and largely greenfield, opportunity for growth as we look to capture a larger part of the worldwide construction market. We have an international sales and marketing presence with offices in Sydney, Australia; Toronto, Canada; London, England; Dublin, Ireland; and Dubai, United Arab Emirates (“UAE”). As a result of our international efforts, we support multiple languages and currencies. Non-U.S. revenue as a percentage of our total revenue was 15% for both the six months ended June 30, 2026 and 2025. We determine the percentage of non-U.S. revenue based on the billing location of each customer. Fluctuations in foreign currencies may positively or negatively impact the amount of revenue that we report for our foreign subsidiaries upon the translation of these amounts into U.S. Dollars.

Previous wording

Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. For each of these categories of expense, personnel-related compensation expenses are the most significant component, which include salaries, stock-based compensation, commissions, benefits, payroll taxes, and bonuses.

Current wording

Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. For each of these categories of expense, personnel-related compensation expenses are the most significant component, which include salaries, stock-based compensation, commissions, benefits, bonuses, and payroll taxes.

Previous wording

Other (expense) income, net primarily consists of gains or losses on foreign currency transactions, unrealized gains or losses on equity securities, and miscellaneous other income and expenses.

Current wording

Other income, net primarily consists of gains or losses on foreign currency transactions, unrealized gains or losses on equity securities, and miscellaneous other income and expenses.

Previous wording

*Includes amortization of capitalized stock-based compensation of $3.5 million and $2.7 million, respectively, for the three months ended March 31, 2026 and 2025 which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs.

Current wording

*Includes amortization of capitalized stock-based compensation of $3.8 million and $2.8 million, respectively, for the three months ended June 30, 2026 and 2025; and $7.3 million and $5.6 million, respectively, for the six months ended June 30, 2026 and 2025; which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs.

Previous wording

During the three months ended March 31, 2026, our revenue increased by $48.7 million, or 16%, compared to the three months ended March 31, 2025, of which approximately 87% was attributable to revenue from existing customers and approximately 13% was attributable to revenue from new customers acquired during the three months ended March 31, 2026. The increase in revenue from existing customers includes the net benefit of a full quarter of subscription revenue in the first quarter of 2026 from customers that were newly acquired or expanded their subscriptions between the beginning of the first quarter of 2025 and the end of the fourth quarter of 2025 and continued or expanded their subscriptions, as applicable, in the first quarter of 2026.

Current wording

During the three months ended June 30, 2026, our revenue increased by $51.3 million, or 16%, compared to the three months ended June 30, 2025, of which approximately 88% was attributable to revenue from existing customers and approximately 12% was attributable to revenue from new customers acquired during the three months ended June 30, 2026. The increase in revenue from existing customers includes the net benefit of a full quarter of subscription revenue in the second quarter of 2026 from customers that were newly acquired or expanded their subscriptions between the second quarter of 2025 and the first quarter of 2026 and continued or expanded their subscriptions, as applicable, in the second quarter of 2026.

Previous wording

The increase in sales and marketing expenses during the three months ended March 31, 2026 was primarily attributable to an increase of $12.6 million in personnel-related expenses, including increases of $7.4 million in salaries and wages and $5.6 million in stock-based compensation expense. The increases in sales and marketing expenses were partially offset by a $2.2 million decrease in amortization of customer relationship intangible assets due to certain customer relationship intangible assets becoming fully amortized in 2025; and a $1.8 million decrease in professional fees for temporary contractor labor . We decreased our sales and marketing headcount by 5% since March 31, 2025.

Current wording

The increase in sales and marketing expenses during the three months ended June 30, 2026 was primarily attributable to an increase of $5.5 million in personnel-related expenses, including increases of $5.1 million in salaries and wages and $0.6 million in stock-based compensation expense. The increases in sales and marketing expenses were partially offset by a $2.4 million decrease in amortization of customer relationship intangible assets due to certain customer relationship intangible assets becoming fully amortized in Q4 2025. We decreased our sales and marketing headcount by 4% since June 30, 2025.

Previous wording

Interest Income, Interest Expense, Accretion Income, Net, Other (Expense) Income, Net, and (Benefit from) Provision for Income Taxes

Current wording

Interest Income, Interest Expense, Accretion Income, Net, Other Income, Net, and (Benefit from) Provision for Income Taxes

Previous wording

During the three months ended March 31, 2026, accretion income, net decreased by $1.5 million due to a decrease in the balance of our marketable securities portfolio year over year.

Current wording

During the three months ended June 30, 2026, accretion income, net decreased by $1.3 million due to a decrease in the balance of our marketable securities portfolio year over year.

Previous wording

The increase in cost of revenue during the three months ended March 31, 2026 was primarily attributable to an increase of $3.8 million in amortization of capitalized software development costs. The increase in cost of revenue was also attributable to a $1.0 million increase in third-party cloud hosting and related services as we grow our customer base; and a $0.9 million increase in personnel-related expenses for salaries and wages. Our cost of revenue headcount remained relatively consistent since March 31, 2025.

Current wording

The increase in cost of revenue during the six months ended June 30, 2026 was primarily attributable to an increase of $8.3 million in amortization of capitalized software development costs. The increase in cost of revenue was also attributable to a $3.6 million increase in third-party cloud hosting and related services as we grow our customer base, and a $1.1 million increase in personnel-related expenses for salaries and wages. We increased our cost of revenue headcount by 2% since June 30, 2025.

Previous wording

The decrease in research and development expenses during the three months ended March 31, 2026 was primarily attributable to a decrease of $3.1 million in personnel-related expenses for salaries and wages. The decrease in research and development expenses was also attributable to a $1.9 million decrease in professional fees for temporary contractor labor. The decreases in research and development expenses were partially offset by a $1.5 million increase in acquisition-related expenses. We increased our research and development headcount by 11% since March 31, 2025.

Current wording

The increase in research and development expenses during the six months ended June 30, 2026 was primarily attributable to an increase of $3.9 million in acquisition-related expenses. The increase in research and development expenses was also attributable to a $2.4 million increase in computer software expenses. The increases in research and development expenses were partially offset by a $4.0 million decrease in personnel-related expenses for salaries and wages. We increased our research and development headcount by 6% since June 30, 2025.

Previous wording

The increase in general and administrative expenses during the three months ended March 31, 2026 was primarily due to an increase of $8.8 million in legal fees, which were predominantly related to an ongoing lawsuit with Oracle. The increase in general and administrative expenses was also attributable to a $1.6 million increase in rent expense; a $0.9 million increase in acquisition-related expenses; and a $0.2 million increase in personnel-related expenses, including an increase of $3.0 million in stock-based compensation expense, partially offset by a decrease of $2.8 million in salaries and wages. Our general and administrative headcount remained relatively consistent since March 31, 2025.

Current wording

The increase in general and administrative expenses during the six months ended June 30, 2026 was primarily due to an increase of $15.9 million in professional fees, including an increase of $11.3 million in legal fees, which were predominantly related to an ongoing lawsuit with Oracle America, Inc. and certain of its affiliates (“Oracle”). The increase in general and administrative expenses was also attributable to a $2.0 million increase in acquisition-related expenses. The increases in general and administrative expenses were partially offset by a decrease of $3.2 million in rent expense, primarily related to modifications of leases in the second quarter of 2026; and a $0.9 million decrease in personnel-related expenses, including a decrease of $3.9 million in salaries and wages, partially offset by an increase of $3.5 million in stock-based compensation expense. Our general and administrative headcount has remained relatively consistent since June 30, 2025.

Previous wording

(Benefit from) income taxes for the three months ended March 31, 2026, differs from provision for income taxes for the three months ended March 31, 2025, primarily due to the release of a portion of our valuation allowance as a result of acquired deferred tax liabilities from the Datagrid acquisition that are an available source of income to realize our deferred tax assets. Further, in the prior year, the Company recognized a one-time tax expense related to foreign tax on the realignment of intellectual property attributable to the Novorender acquisition.

Current wording

(Benefit from) income taxes for the six months ended June 30, 2026, differs from provision for income taxes for the six months ended June 30, 2025, primarily due to the release of a portion of our valuation allowance as a result of acquired deferred tax liabilities from the Datagrid acquisition that are an available source of income to realize our deferred tax assets. Further, in the prior year, the Company recognized a one-time tax expense related to foreign tax on the realignment of intellectual property attributable to the Novorender acquisition.

Previous wording

As of March 31, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $591.5 million, which were held in money market funds, U.S. treasury securities, corporate notes and obligations, commercial paper, checking accounts, and savings accounts. Our investments in marketable securities are exposed to interest rate risk; however, due to the short-term nature of our investments, we do not anticipate being exposed to material risks due to changes in interest rates.

Current wording

As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $655.9 million, which were held in money market funds, U.S. treasury securities, corporate notes and obligations, checking accounts, and savings accounts. Our investments in marketable securities are exposed to interest rate risk; however, due to the short-term nature of our investments, we do not anticipate being exposed to material risks due to changes in interest rates.

Previous wording

During the three months ended March 31, 2026, we had additional contractual commitments beyond those disclosed in our 2025 Form 10-K, primarily related to new lease obligations. In the next 12 months, we have operating lease obligations of $0.5 million related to leases that commenced during the three months ended March 31, 2026. Beyond the next 12 months, we have net contractual commitments for operating lease obligations of $20.8 million related to leases that commenced during the three months ended March 31, 2026. There have been no other material changes to our contractual obligations from those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Form 10-K. We believe our existing cash, cash equivalents, and marketable securities will be sufficient to meet our needs for at least the next 12 months. While we have generated positive cash flows from operations in recent years, we have continued to generate losses from operations, as reflected in our accumulated deficit of $1.4 billion as of March 31, 2026. We may not achieve profitability in the foreseeable future and may require additional capital resources to execute strategic initiatives to grow our business.

Current wording

During the six months ended June 30, 2026, we had a $29.7 million decrease in contractual commitments beyond those disclosed in our 2025 Form 10-K, related to the Carpinteria lease modifications. The Company modified its office leases in Carpinteria, California to extend the term of its primary core lease space and decline renewal extensions for its remaining office suites. In the next 12 months, we have operating lease obligations of $1.7 million related to leases that commenced during the six months ended June 30, 2026. Beyond the next 12 months, we have additional net contractual commitments for operating lease obligations of $23.7 million related to leases that commenced during the six months ended June 30, 2026. There have been no other material changes to our contractual obligations from those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Form 10-K. We believe our existing cash, cash equivalents, and marketable securities will be sufficient to meet our needs for at least the next 12 months. While we have generated positive cash flows from operations in recent years, we have a limited history of generating profit from operations, as reflected in our accumulated deficit of $1.3 billion as of June 30, 2026. We may not maintain profitability in future periods and may require additional capital resources to execute strategic initiatives to grow our business.

Previous wording

Net cash provided by operating activities was $76.8 million during the three months ended March 31, 2026 which resulted from a net loss of $9.1 million, adjusted for non-cash charges of $86.3 million and a net cash outflow of $0.4 million from changes in operating expenses and liabilities. The $0.4 million of net cash outflows provided as a result of changes in our operating assets and liabilities primarily reflected the following:

Current wording

Net cash provided by operating activities was $164.6 million during the six months ended June 30, 2026 which resulted from net income of $7.8 million, adjusted for non-cash charges of $163.9 million and a net cash outflow of $7.1 million from changes in operating expenses and liabilities. The $7.1 million of net cash outflows as a result of changes in our operating assets and liabilities primarily reflected the following:

Previous wording

•a $51.2 million decrease in accrued expenses and other liabilities primarily due to the size and timing of bonus and commission accruals and payouts, accrued ESPP contributions, payroll, and cash payments to our vendors;

Current wording

•a $21.8 million decrease in accrued expenses and other liabilities primarily due to the size and timing of bonus and commission accruals and payouts, accrued ESPP contributions, payroll, and cash payments to our vendors;

Previous wording

•a $33.6 million decrease in deferred revenue primarily due to timing of billings and seasonality;

Current wording

•a $15.7 million decrease in deferred revenue primarily due to timing of billings and seasonality;

Previous wording

•a $1.3 million increase in deferred contract cost assets related to commissions as a result of additional customer contracts closed and a higher capitalization rate during the period.

Current wording

•a $15.7 million increase in deferred contract cost assets related to commissions as a result of additional customer contracts closed during the period;

Previous wording

•a $7.5 million increase in prepaid expenses and other assets primarily due to timing of cash payments to our vendors; and

Current wording

•a $6.6 million increase in prepaid expenses and other current assets primarily due to timing of cash payments to our vendors; and

Previous wording

These changes in our operating assets and liabilities were partially offset by a $103.9 million decrease in accounts receivable primarily due to timing of billings and cash receipts from customers.

Current wording

•a $46.8 million decrease in accounts receivable primarily due to timing of billings and cash receipts from customers; and

Previous wording

•a $6.9 million decrease in accounts payable primarily due to timing of cash payments to our vendors; and

Current wording

•a $8.2 million increase in accounts payable primarily due to timing of cash payments to our vendors.

Previous wording

Net cash provided by operating activities was $66.0 million during the three months ended March 31, 2025, which resulted from a net loss of $33.0 million, adjusted for non-cash charges of $75.0 million and net cash inflows of $24.0 million from changes in operating assets and liabilities. The $24.0 million of net cash inflows provided as a result of changes in our operating assets and liabilities primarily reflected an $86.3 million decrease in accounts receivable primarily due to timing of billings and cash receipts from customers, which was partially offset by the following:

Current wording

Net cash provided by operating activities was $96.9 million during the six months ended June 30, 2025, which resulted from a net loss of $54.1 million, adjusted for non-cash charges of $157.8 million and net cash inflows of $6.8 million from changes in operating assets and liabilities. The $6.8 million of net cash inflows provided as a result of changes in our operating assets and liabilities primarily reflected the following:

Previous wording

•a $26.6 million decrease in deferred revenue primarily due to timing of billings and seasonality;

Current wording

•a $28.3 million decrease in deferred revenue primarily due to the growth of our business and timing of billings;

Previous wording

•a $6.6 million increase in deferred contract cost assets related to commissions as a result of additional customer contracts closed and a higher capitalization rate during the period.

Current wording

•a $20.2 million increase in deferred contract cost assets related to commissions as a result of additional customer contracts closed during the period;

Previous wording

•a $11.1 million decrease in accounts payable primarily due to timing of cash payments to our vendors.

Current wording

•a $13.0 million decrease in accounts payable primarily due to timing of cash payments to our vendors;

Previous wording

•a $10.7 million increase in prepaid expenses and other assets primarily due to timing of cash payments to our vendors;

Current wording

•a $9.2 million increase in prepaid expenses and other current assets primarily due to timing of cash payments to our vendors; and

Previous wording

•a $9.9 million decrease in accrued expenses and other liabilities primarily due to the size and timing of bonus and commission accruals and payouts, accrued ESPP contributions, payroll, and cash payments to our vendors;

Current wording

•a $11.6 million increase in accrued expenses and other liabilities primarily due to the size and timing of bonus and commission accruals and payouts, accrued ESPP contributions, payroll, and cash payments to our vendors.

Previous wording

Net cash used in investing activities of $55.0 million during the three months ended March 31, 2026 consisted of cash outflows for business combinations of $158.9 million, capitalized software development costs of $17.8 million, purchases of property and equipment of $2.9 million, and purchases of strategic investments of $0.5 million; partially offset by sales of marketable securities of $106.7 million, and maturities of marketable securities of $18.4 million.

Current wording

Net cash used in investing activities of $33.1 million during the six months ended June 30, 2026 consisted of cash outflows for business combinations of $158.9 million, capitalized software development costs of $34.1 million, purchases of property and equipment of $9.9 million, and purchases of strategic investments of $0.4 million; partially offset by $106.7 million in sales of marketable securities, $63.1 million in maturities of marketable securities, and $0.4 million in sales of strategic investments.

Previous wording

Net cash used in investing activities of $63.5 million during the three months ended March 31, 2025 consisted of purchases of marketable securities of $134.6 million, business combinations of $41.3 million, capitalized software development costs of $15.3 million, and purchases of property and equipment of $4.0 million, asset acquisitions of $3.5 million, and purchases of strategic investments of $0.6 million; partially offset by $135.8 million in maturities of marketable securities.

Current wording

Net cash used in investing activities of $80.5 million during the six months ended June 30, 2025 consisted of cash outflows for purchases of marketable securities of $218.6 million, business combinations of $41.5 million, capitalized software development costs of $32.6 million, purchases of property and equipment of $7.0 million, and asset acquisitions of $3.5 million, and purchases of strategic investments of $0.9 million. Such outflows were partially offset by $223.7 million in maturities of marketable securities.

Previous wording

Net cash used in financing activities of $109.7 million during the three months ended March 31, 2026 consisted of repurchases of our common stock of $100.0 million, payments of tax withholding for net share settlement of $15.3 million, payments on our finance lease obligations of $0.4 million, and deferred asset acquisition payments of $0.3 million; partially offset by proceeds from stock option exercises of $2.5 million.

Current wording

Net cash used in financing activities of $92.0 million during the six months ended June 30, 2026 consisted of repurchases of our common stock of $100.0 million, payments of tax withholding for net share settlement of $30.5 million, payments on our finance lease obligations of $0.7 million, and payments of deferred asset acquisition consideration of $0.3 million; partially offset by a $22.1 million increase in funds held for customers, proceeds from employee purchases under the ESPP of $13.0 million and proceeds from stock option exercises of $4.4 million.

Previous wording

Net cash used in financing activities of $126.4 million during the three months ended March 31, 2025 consisted of repurchases of our common stock of $100.0 million, payments of tax withholding for net share settlement of $28.3 million, and payments on our finance lease obligations of $0.4 million; partially offset by proceeds from stock option exercises of $2.3 million.

Current wording

Net cash used in financing activities of $131.8 million during the six months ended June 30, 2025 consisted of repurchases of our common stock of $103.2 million, payments of tax withholding for net share settlement of $49.9 million, and payments on our finance lease obligations of $0.8 million; partially offset by proceeds from employee purchases under the ESPP of $14.4 million and proceeds from stock option exercises of $7.6 million.

Previous wording

On November 3, 2025, our Board authorized a stock repurchase program to repurchase up to $300.0 million of our outstanding common stock. We intend to opportunistically repurchase shares of our common stock from time to time through the open market or other transactions in accordance with applicable securities laws, in each case, subject to market conditions, applicable legal requirements, and other relevant factors. The timing of stock repurchases and the actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities, and will be subject to the discretion of our management within its authorization. The stock repurchase program will be funded using our working capital. The stock repurchase program does not obligate us to acquire any particular number of shares of our common stock, or any shares at all. The stock repurchase program expires on November 3, 2026, and may be suspended or discontinued at any time at our discretion and without notice. During the three months ended March 31, 2026, we repurchased and retired a total of 1,765,560 shares of our common stock at a weighted average per share price of $56.66 for an aggregate amount of $100.0 million, which includes the transaction costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.

Current wording

On November 3, 2025, our board of directors (our “Board”) authorized a stock repurchase program to repurchase up to $300.0 million of our outstanding common stock. We intend to opportunistically repurchase shares of our common stock from time to time through the open market or other transactions in accordance with applicable securities laws, in each case, subject to market conditions, applicable legal requirements, and other relevant factors. The timing of stock repurchases and the actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities, and will be subject to the discretion of our management within its authorization. The stock repurchase program will be funded using our working capital. The stock repurchase program does not obligate us to acquire any particular number of shares of our common stock, or any shares at all. The stock repurchase program expires on November 3, 2026, and may be suspended or discontinued at any time at our discretion and without notice. During the six months ended June 30, 2026, we repurchased and retired a total of 1,765,560 shares of our common stock at a weighted average per share price of $56.66 for an aggregate amount of $100.0 million, which includes the transaction costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.

Previous wording

Our significant accounting policies are described in Note 2 of our condensed consolidated financial statements. Our critical accounting policies and more significant judgments and estimates used in the preparation of our financial statements are discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Form 10-K. There have been no significant changes to these policies for the three months ended March 31, 2026.

Current wording

Our significant accounting policies are described in Note 2 of our condensed consolidated financial statements. Our critical accounting policies and more significant judgments and estimates used in the preparation of our financial statements are discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Form 10-K. There have been no significant changes to these policies for the six months ended June 30, 2026.