Backblaze, Inc.

Previous wording

We provide cloud services through a purpose-built, web-scale software infrastructure built on commodity hardware. We believe that by offering a cloud storage solution optimized for price-to-performance at scale, engineered for efficiency, and priced predictably, we substantially reduce the cost, complexity and frustration of storing, using, and protecting data, and we empower customers to focus on their core business operations. We focus on specialized storage and an open cloud ecosystem that integrates with a broad range of partners. Ongoing investment in our technology platform and related features has driven customer, community, and product milestones. Customers use us to support their AI workflows, help ensure the cyber-resilience of their organizations, streamline their media workflows, and enable a variety of other data-focused application and information technology (“IT”) needs. Through our blog and culture of transparency, we have built a community of millions of readers and brand advocates. Our direct sales activities, channel and technology partners, and referrals from our community of brand advocates, combined with our highly efficient and self-serve customer acquisition model have allowed us to attract over 500,000 customers as of March 31, 2026, and our direct sales activities have historically supported us in acquiring larger customers, including leading neocloud platforms. As we continue expanding and accelerating our movement up-market, we expect our direct sales activities to increasingly contribute to the acquisition of customers like these. Our customers use our Backblaze Storage Cloud platform across more than 175 countries to store and protect their data with an aggregate of approximately 5 billion gigabytes of data storage under management.

Current wording

Backblaze has multiple go-to-market motions. Through our blog and culture of transparency, we have built a community of millions of readers and brand advocates. Our direct sales activities, channel and technology partners, and referrals from our community of brand advocates, combined with our self-serve customer acquisition model have allowed us to attract over 500,000 customers as of June 30, 2026. Our direct sales activities have also supported our efforts to acquire larger customers, including leading neocloud platforms. As we continue expanding and accelerating our movement up-market, we expect our direct sales activities to increasingly contribute to the acquisition of customers like these. Customers use the Backblaze Storage Cloud platform across more than 175 countries to store and protect their data with an aggregate of more than 5 billion gigabytes of data storage under management.

Previous wording

Our Backblaze Storage Cloud provides a platform that is the foundation for our B2 Cloud Storage Infrastructure-as-a-Service (“IaaS”) offering, our B2 Overdrive high-performance IaaS offering, our Powered by Backblaze white label IaaS offering, and our Computer Backup Software-as-a-Service (“SaaS”) offering. B2 Cloud Storage enables customers to store data, developers to build applications, and partners to expand their use cases. The amount of data stored in this cloud service can scale up and down as needed primarily on a pay-as-you-go basis or can be paid for on a capacity or committed contract basis for greater predictability. B2 Overdrive is built on the foundation of B2 Cloud Storage. It enables AI and data-driven workloads with up to 1Tbps throughput, unlimited free egress, and private networking support. Powered by Backblaze is also built on the foundation of B2 Cloud Storage. It enables neocloud and application platforms to bolster existing products or expand their product offerings with cloud storage via the Backblaze Partner API and custom domains technology. Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. This cloud backup service offers easily understood primarily flat-rate pricing to continuously back up a virtually unlimited amount of data.

Current wording

B2 Cloud Storage enables customers to store data, AI platform providers to deliver new services, developers to build applications, and partners to expand their use cases. The amount of data stored in this cloud service can scale up and down as needed, on a pay-as-you-go basis or can be paid for on a capacity or committed contract basis for greater predictability. B2 Overdrive, B2 Neo, and Powered by Backblaze are all built on the foundation of B2 Cloud Storage. B2 Overdrive enables AI and data-driven workloads with up to 1Tbps throughput, unlimited free egress, and private networking support.

Previous wording

To continue expanding and accelerating our movement up-market and aligning to emerging AI-related opportunities, we recently launched B2 Neo and the Backblaze Flamethrower startup program. B2 Neo is our white-label, enterprise-grade cloud object storage solution purpose-built for and with neocloud platforms. B2 Neo enables neoclouds to ship a native, branded storage offering in weeks rather than months, without diverting engineering resources from their core GPU and compute roadmaps. Flamethrower is our founder-first startup program designed for the next generation of AI developers, builders, and entrepreneurs. The program offers up to $100,000 in storage credits coupled with direct support from the Backblaze team and a community of peers to help startup companies build economically sound businesses at a critical time in their lifecycle. Together, these launches reflect our dual motion of capturing large, AI supply-side platform relationships at the enterprise level while seeding a developer-led growth pipeline through our self-serve motion.

Current wording

To continue expanding and accelerating our movement up-market and aligning to emerging AI-related opportunities, we have introduced a set of product, developer, and go-to-market initiatives designed to position Backblaze across the AI data lifecycle. B2 Neo is our white-label cloud object storage solution designed for neocloud platforms. B2 Neo enables neoclouds to provide native, branded storage, without diverting engineering resources from their core GPU and compute roadmaps. Flamethrower is our founder-first startup program designed for the next generation of AI developers, builders, and entrepreneurs. The program offers up to $100,000 in storage credits coupled with direct support from the Backblaze team and a community of peers to help startup companies build economically sound businesses at a critical time in their lifecycle. Together, these launches reflect our dual motion of capturing large, AI supply-side platform relationships at the enterprise level while seeding a developer-led growth pipeline through our self-serve motion.

Previous wording

In November 2025, we initiated a restructuring and transformation plan designed primarily to improve the effectiveness and efficiency of our sales and marketing functions in support of our go-to-market objectives (the “2025 Restructuring and Transformation Plan”). The 2025 Restructuring and Transformation Plan includes the redesign and implementation of new strategies and processes, organizational realignment and reallocation of resources, and other corporate actions. From inception to date, we have incurred charges of approximately $4.7 million, including employee termination expenses, an impairment charge related to our exit from our corporate headquarters facility, and other transformation costs. For the three months ended March 31, 2026, we have incurred charges of approximately $2.2 million, primarily related to employee termination expenses and other transformation costs.

Current wording

In November 2025, we initiated a restructuring and transformation plan designed primarily to improve the effectiveness and efficiency of our sales and marketing functions and enhance the pace of product innovation in support of our go-to-market objectives (the “2025 Restructuring and Transformation Plan”). The 2025 Restructuring and Transformation Plan includes the redesign and implementation of new strategies and processes, organizational realignment and reallocation of resources, and other corporate actions. From inception to date, we have incurred charges of approximately $6.1 million, including employee termination expenses, an impairment charge related to our exit from our corporate headquarters facility, and other transformation costs. For the three and six months ended June 30, 2026, we have incurred charges of approximately $1.3 million and $3.5 million, respectively, primarily related to employee termination expenses and other transformation costs.

Previous wording

We expect to incur additional charges of approximately $2.1 million to $4.3 million through the first quarter of 2027, at which time the 2025 Restructuring and Transformation Plan is expected to be completed. These charges include estimated employee termination expenses of approximately $0.1 million to $0.2 million, and other business transformation costs.

Current wording

We expect to incur additional charges of approximately $2.4 million to $3.7 million through the first quarter of 2027, at which time the 2025 Restructuring and Transformation Plan is expected to be completed. These charges include estimated employee termination expenses of approximately $1.0 million to $1.1 million, and other business transformation costs.

Previous wording

We are optimizing our direct sales organization to focus on larger enterprise customers and strategic accounts. Our refined go-to-market motion is designed to improve sales productivity while preserving the cost-efficient self-serve model that has historically supported our customer acquisition. We believe effective execution of this transformation will improve customer acquisition efficiency, increase average contract values, and drive long-term revenue growth.

Current wording

We are continuing to optimize our direct sales organization to focus on larger customer opportunities and strategic accounts, while continuing to grow business in traditional segments. Our refined go-to-market motion is designed to improve sales productivity while preserving the cost-efficient self-serve model that has historically supported our customer acquisition. We believe effective execution of this transformation will continue to improve customer acquisition efficiency, increase average contract values, and to drive long-term revenue growth.

Previous wording

Additionally, we are investing in targeted marketing initiatives including account-based marketing, digital advertising, industry events, and content programs anchored by our blog, case studies, and earned media, to increase brand awareness, improve conversion rates, and prioritize higher-value prospects. This disciplined acquisition mix is intended to reduce reliance on promotional or lower-margin license types while cultivating long-term customer relationships that generate referrals and advocacy.

Current wording

Additionally, we are investing in targeted marketing initiatives including account-based marketing, digital advertising, industry events, and content programs anchored by our blog, case studies, and earned media, to increase brand awareness and perceived relevance in modern architectures, improve conversion rates, and pursue higher-value prospects.

Previous wording

Finally, we are focused on expanding revenue within our current customer base through the introduction of new features and use cases, continued enhancement of our Customer Success programs under new leadership, and the natural growth of customer data stored on our platform. Customers continue to broaden their use of Backblaze for complementary workloads, including media storage, hybrid cloud support, and analytics repositories.

Current wording

Finally, we are focused on expanding revenue within our current customer base by introducing new features and addressing new use cases, continuing enhancement of our Customer Success programs under new leadership, and benefitting from natural growth of customer data stored on our platform. Customers continue to broaden their use of Backblaze for complementary workloads within their organizations, including AI training data storage, media storage, hybrid cloud support, and analytics repositories.

Previous wording

We believe the AI era is reshaping the cloud storage landscape and creating opportunities to establish Backblaze in emerging ecosystems where the scale, economics, and openness of our platform are differentiated. We are making targeted investments to position the Company in two such ecosystems where we see meaningful market potential.

Current wording

We believe the AI era is reshaping the cloud storage landscape and creating opportunities to establish Backblaze in emerging ecosystems where the scale, economics, and openness of our platform are differentiated. We are making targeted investments to position the Company in AI-related ecosystems where we see meaningful market potential, including neocloud platform providers and AI-native developers and startups.

Previous wording

Through the Backblaze Flamethrower program, our founder-first startup initiative, we are working to engage the next generation of AI developers, builders, and entrepreneurs. The program offers up to $100,000 in storage credits coupled with direct support from the Backblaze team and a community of peers to help startup companies build economically sound businesses at a critical point in their lifecycle. We view Flamethrower as a seeding investment in a developer-led growth pipeline that complements our self-serve motion.

Current wording

Where Neoclouds operate at one end of the AI ecosystem, startups and AI developers make up the vast majority of users and practitioners building the next generation of technology and businesses. Through the Backblaze Flamethrower program, our founder-first startup initiative, we are working to engage these AI developers, builders, and entrepreneurs at the beginning of their journey. We view Flamethrower as a seeding investment in a developer-led growth pipeline that complements our self-serve motion.

Previous wording

We remain committed to continued investment in our technology platform to meet the performance requirements of modern enterprise and AI workloads. We believe this continued focus on enhancing our core platform is critical to supporting existing customers and driving increased usage over time.

Current wording

We remain committed to continued investment in our technology platform to meet the performance, durability, security, compliance, and integration requirements of modern enterprise and AI workloads. This includes continued development of our core B2 Cloud Storage platform, B2 Overdrive, B2 Neo, partner APIs, custom domains technology, private networking support, managed storage capabilities, and other platform features designed to support data-intensive use cases. We believe this continued focus on enhancing our core platform is critical to supporting existing customers, driving increased usage over time, and enabling larger strategic relationships.

Previous wording

While our sales and marketing efforts have primarily focused on the United States, our existing customer base spans more than 175 countries, with 28% and 27%of our total revenue originating outside of the United States for thethree months ended March 31, 2026 and 2025, respectively. We believe international expansion may represent a meaningful opportunity. We may invest in our operations internationally to reach new customers by expanding into targeted key geographies where we believe there are opportunities for significant return on investment. In January 2025, for example, we entered into an agreement with a leading hybrid cloud solutions provider in Canada to extend our market reach in this region. This agreement resulted in the launch of a new data center region in Canada in January 2025.

Current wording

While our sales and marketing efforts have primarily focused on the United States, our existing customer base spans more than 175 countries, with 28% of our total revenue originating outside of the United States for each of thesix months ended June 30, 2026 and 2025, respectively. We believe international expansion may represent a meaningful opportunity. We may invest in our operations internationally to reach new customers by expanding into targeted key geographies where we believe there are opportunities for significant return on investment.

Previous wording

We monitor the key business metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing investments, and assess operational efficiencies. The calculation of the key metrics discussed are calculated under the same method for B2 Cloud Storage, Computer Backup, and total Company. The below metrics may differ from other similarly titled metrics used by other companies, securities analysts or investors.

Current wording

We monitor the key business metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing investments, and assess operational efficiencies. The key metrics discussed below are calculated using the same methodology for B2 Cloud Storage, Computer Backup, and total Company. The below metrics may differ from other similarly titled metrics used by other companies, securities analysts or investors.

Previous wording

We believe the growth in the use of our platform by our existing customers is an important measure of the health of our business and our future growth prospects. We measure this growth by monitoring our overall net revenue retention rate, which measures our ability to retain and expand revenue from existing customers. The enhancement of our B2 Cloud Storage offerings is driving significant revenue retention, resulting in NRRs of 110%and 105% as of March 31, 2026 and March 31, 2025, respectively. The decrease in the NRR for Computer Backup reflects the prior-year period benefit from the phased impact of earlier price increases on renewing subscriptions, whereas pricing was stabilized in the NRRas of March 31, 2026.

Current wording

We believe the growth in the use of our platform by our existing customers is an important measure of the health of our business and our future growth prospects. We measure this growth by monitoring our overall net revenue retention rate, which measures our ability to retain and expand revenue from existing customers. The enhancement of our B2 Cloud Storage offerings is driving significant revenue retention, resulting in NRRs of 113%and 114% as of June 30, 2026 and June 30, 2025, respectively. The decrease in the NRR for Computer Backup reflects the prior-year period benefit from the phased impact of earlier price increases on renewing subscriptions, whereas pricing was stabilized in the NRRbeginning in 2026.

Previous wording

We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We have maintained gross customer retention rates of approximately 90% across our revenue products as of both March 31, 2026 and March 31, 2025. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next.

Current wording

We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. As of June 30, 2026 and 2025, gross customer retention rates across our revenue products were approximately 91% and 90%, equivalent to approximately ten years of customer retention. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next.

Previous wording

While ARR is not a guarantee of future revenue, we consider substantially all of our revenue as recurring in nature for the periods presented. As noted above, our gross customer retention rate has been consis tent over the periods presented at approximately 90%. Although B2 Cloud Storage is generally consumption-based and paid for by customers in arrears, we recognize revenue in the month these storage services are delivered and consider this revenue recurring as customers are charged as long as their data is stored with us. Further, during the periods presented, customers who store data with us generally increase the amount of their data stored over time, as evidenced by our B2 Cloud Storage NRR rate of 110% as of March 31, 2026. Computer Backup (subscription-based arrangements) revenue is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service commences, provided that all other revenue recognition criteria have been met. See Note 2 to our audited consolidated financial statements included in our Annual Report for details on our revenue recognition policy. Additional limitations of ARR include the fact that consumption-based revenue is not guaranteed for future periods, although we believe that our high historic gross customer retention rate is indicative of ARR, and the fact that our subscription terms can be on a monthly basis, although the significant majority of our customers have subscription terms of one year or longer during the periods presented above.

Current wording

While ARR is not a guarantee of future revenue, we consider substantially all of our revenue as recurring in nature for the periods presented. As noted above, our gross customer retention rate has been consis tent over the periods presented at approximately 90%. Although B2 Cloud Storage is generally consumption-based and paid for by customers in arrears, we recognize revenue in the month these storage services are delivered and consider this revenue recurring as customers are charged as long as their data is stored with us. Further, during the periods presented, customers who store data with us generally increase the amount of their data stored over time, as evidenced by our B2 Cloud Storage NRR rate of 113% as of June 30, 2026. Computer Backup (subscription-based arrangements) revenue is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service commences, provided that all other revenue recognition criteria have been met. See Note 2 to our audited consolidated financial statements included in our Annual Report for details on our revenue recognition policy. Additional limitations of ARR include the fact that consumption-based revenue is not guaranteed for future periods, although we believe that our high historic gross customer retention rate support the recurring nature of ARR, and the fact that our subscription terms can be on a monthly basis, although the significant majority of our customers have subscription terms of one year or longer during the periods presented above.

Previous wording

Changes to recurring revenue may result from the expansion of our offerings to our existing customers, as well as new customer acquisition and the timing of customer renewals. Our ARR increased by $20.5 million for B2 Cloud Storage as of March 31, 2026 compared to March 31, 2025, representing 28% growth. ARR for Computer Backup experienced a slight decline of$1.7 million compared to the prior year, but continues to serve as a stable source of recurring revenue, supported by multi-year subscription commitments and increased demand from business environments.

Current wording

Changes to recurring revenue may result from the expansion of our offerings to our existing customers, as well as new customer acquisition and the timing of customer renewals. Our ARR increased by $31.5 million for B2 Cloud Storage as of June 30, 2026 compared to June 30, 2025, representing 39% growth. The increase in B2 Cloud Storage ARR was primarily driven by the May 2026 price increase, as well as revenue recognized from a new enterprise customer engagement. ARR for Computer Backup experienced a slight decline of$1.3 million compared to the prior year, but continues to serve as a stable source of recurring revenue, supported by multi-year subscription commitments and increased demand from business environments.

Previous wording

We plan to continue investing in our infrastructure to support the growth of our business. These investments include the purchase and expansion of infrastructure equipment (and related depreciation) as well as software development activities and associated amortization. Because these costs are often incurred ahead of revenue generation, delays in realizing anticipated revenue or fluctuations in the timing of revenue could adversely affect our gross margin from period to period.

Current wording

We plan to continue investing in our infrastructure to support the growth of our business. These investments include the purchase and expansion of infrastructure equipment (and related depreciation) as well as software development activities and associated amortization. These investments may also be affected by higher equipment prices and supply chain constraints, which could adversely affect our gross margin. Because these costs are often incurred ahead of revenue generation, delays in realizing anticipated revenue or fluctuations in the timing of revenue could adversely affect our gross margin from period to period.

Previous wording

During the second quarter of 2025, we completed a study on the useful lives of our property and equipment, resulting in an extension of the useful life of our infrastructure equipment. This update resulted in a reduction in depreciation expense of approximately $0.9 million for the three months ended March 31, 2026, and is anticipated to result in further reduction of approximately $2.8 million for the remainder of the year ending December 31, 2026 as a result of this change in estimate.

Current wording

During the second quarter of 2025, we completed a study that resulted in an extension of the useful lives of certain infrastructure equipment. The change in estimate reduced depreciation expense by approximately $0.9 million for the six months ended June 30, 2026 compared with the prior-year period, reflecting the benefit recognized in the first quarter of 2026.

Previous wording

We expect our investments in research and development to increase in absolute dollars for the foreseeable future as we continue to add new features to our platform, integrate advanced technologies such as AI into our development lifecycle, further enhancing our cloud service offerings, and increase the functionality of our existing features. Our research and development expenses may fluctuate as a percentage of total revenue from period to period due to the timing and extent of these expenses.

Current wording

We expect our investments in research and development to increase in absolute dollars for the foreseeable future as we continue to add new features to our platform, integrate advanced technologies such as AI into our development lifecycle, further enhancing our cloud service offerings, and increase the functionality of our existing features. Our research and development expenses may fluctuate as a percentage of total revenue from period to period due to the timing, nature, and extent of these expenses.

Previous wording

(1) $0.2 million of stock-based compensation expense incurred during the three months ended March 31, 2026 is classified as restructuring charges in the table above, including $0.1 million related to sales and marketing costs, and $0.1 million related to general and administrative costs. For further information on our restructuring plans, see Note 14 to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Current wording

(1)$0.4 million and $0.6 million of stock-based compensation expense incurred during the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above, including an immaterial amount and $0.1 million, respectively, related to sales and marketing costs, and $0.4 million and $0.5 million, respectively, related to general and administrative costs. For further information on our restructuring plans, see Note 14 to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Previous wording

(2) $0.1 million of depreciation and amortization expense related to cost of revenue for the three months ended March 31, 2026 is classified as restructuring charges in the table above.

Current wording

(3)$0.1 million and $0.3 million of depreciation and amortization expense recorded to cost of revenue for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

Previous wording

Comparison of the Three Months Ended March 31, 2026 and 2025

Current wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Previous wording

Total revenue increased by $4.1 million, or 12%, for the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

Total revenue increased by $6.4 million, or 18%, for the three months ended June 30, 2026 compared to the same period in 2025.

Previous wording

•a $2.7 million increase in sales to new customers; and

Current wording

•a $4.5 million increase in sales to new customers;

Previous wording

•a $1.7 million increase driven by higher storage usage as a result of upselling and organic growth by existing customers.

Current wording

•a $0.7 million increase driven by higher storage usage as a result of upselling and organic growth by existing customers.

Previous wording

•a $0.9 million decrease from a decline in license counts;

Current wording

•a $0.7 million decrease from a decline in license counts;

Previous wording

•a $0.3 million increase driven by increased utilization by existing customers.

Current wording

•a $0.3 million increase driven by increased utilization by existing customers; and

Previous wording

•a $0.3 million increase from the phased impact of earlier price increases on renewing subscriptions; and

Current wording

•a $0.1 million increase from the phased impact of earlier price increases on renewing subscriptions.

Previous wording

•a $0.6 million increase primarily reflecting incremental rent and facility costs associated with expanding our data center footprint to support increased storage capacity;

Current wording

•a $0.9 million increase primarily reflecting incremental rent and facility costs associated with expanding our data center footprint to support increased storage capacity;

Previous wording

•a $0.1 million increase in baseline operating spend.

Current wording

•a $0.2 million increase in baseline operating spend.

Previous wording

•a $0.4 million increase in amortization expense related to capitalized investments in platform enhancements and new software features;

Current wording

•a $0.8 million increase in amortization expense related to capitalized investments in platform enhancements and new software features;

Previous wording

•a $1.5 million decrease in depreciation expense primarily due to the extension of the useful life of our infrastructure equipment;

Current wording

•a $0.5 million net decrease in depreciation expense, which includes a $1.5 million decrease primarily due to the extension of the useful life of our infrastructure equipment, partially offset by a $1.0 million increase associated with infrastructure equipment placed in service to support increased storage capacity; and

Previous wording

Gross margin was 61% for the three months ended March 31, 2026, compared to 56% for the same period in 2025. The increase in our gross margin was primarily driven by higher revenue and lower fixed costs, including reduced depreciation expense resulting from the extension of the useful life of our infrastructure equipment, effective April 1, 2025, which increased gross margin by approximately 2% for the three months ended March 31, 2026. In addition, improved economies of scale related to personnel supporting cost of sales contributed to the increase. These benefits were partially offset by higher variable costs associated with the expansion of our data center spaces.

Current wording

Gross margin increased to 62% for the six months ended June 30, 2026 from 60% for the same period in 2025. The increase in our gross margin was primarily driven by higher revenue and lower fixed costs, including reduced depreciation expense resulting from the extension of the useful life of our infrastructure equipment, as well as reduced personnel-related costs, following our restructuring and ongoing efficiency initiatives. These benefits were partially offset by higher variable and facility costs associated with the expansion of our data center spaces.

Previous wording

•a decrease of $0.6 million in stock-based compensation expense, including a $0.9 million decrease primarily related to outstanding options vested during the prior year and a lower number of award grants and a $0.2 million decrease related to higher capitalization of internally developed software resulting from changes in project timing and scope, partially offset by a $0.5 million increase related to our 2026 bonus plan;

Current wording

•an increase of $0.2 million in stock-based compensation expense, including an increase of $1.5 million related to our 2026 bonus plan, offset by a decrease of $0.6 million due to higher capitalization of personnel costs related to internally developed software, and a decrease of $0.8 million primarily related to the timing of award grants and a reduction in headcount.

Previous wording

•an increase of $0.4 million in advertising and marketing costs; and

Current wording

•an increase of $0.4 million in advertising and marketing costs primarily associated with trade show and partner marketing activities; and

Previous wording

•a decrease of $0.2 million in personnel-related costs due to a decrease of $0.2 million related to higher capitalization of internally developed software resulting from the timing and level of qualifying development activities, a $0.1 million decrease primarily related to lower headcount, partially offset by an increase of $0.1 million in workforce reduction costs related to our restructuring activities; and

Current wording

•a decrease of $1.0 million in personnel-related costs, including a decrease of $1.2 million due to higher capitalization of internally developed software costs reflecting the timing and level of qualifying development activities, partially offset by an increase of $0.2 million in workforce reduction costs related to our restructuring activities; and

Previous wording

•an increase of $1.4 million in restructuring costs, including $1.2 million to support our go-to-market transformation initiatives and $0.2 million in workforce reduction costs;

Current wording

•an increase of $1.9 million in restructuring costs, including $1.2 million to support our go-to-market transformation initiatives and $0.7 million in workforce reduction costs;

Previous wording

•decreases of $0.4 million and $0.2 million in personnel-related expenses and stock-based compensation, respectively, primarily related to a reduction in headcount following our recent restructuring and ongoing efficiency initiatives.

Current wording

•decreases of $1.6 million and $0.6 million in personnel-related expenses and stock-based compensation, respectively, primarily related to a reduction in headcount following our recent restructuring and ongoing efficiency initiatives.

Previous wording

Investment income decreased for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest rates on marketable securities.

Current wording

Investment income decreased for the three and six months ended June 30, 2026 compared to the same period in 2025 primarily due to lower interest rates on marketable securities.