Omada Health, Inc.

Previous wording

Our mission is to bend the curve. Our hope is that, one day, tomorrow’s epidemiologists will notice a bend in disease curves, wonder what might be happening, and conclude that part of that impact has been Omada. As part of that mission, we strive to inspire and enable people to make lasting health changes on their own terms. We launched our initial program in diabetes prevention and weight health in 2012, with the goal of showing that a virtual program could achieve the same clinical results as its in-person archetype. Today, we offer cardiometabolic programs for prediabetes, diabetes, hypertension, and high cholesterol; a physical therapy program to address musculoskeletal (“MSK”) conditions; additional support for members taking glucagon-like peptide-1 agonists (“GLP-1”) in our cardiometabolic programs (“GLP-1 Care Tracks”); and behavioral health support across all programs. As of March 31, 2026, we had over 1,025,000 total members enrolled in one or more programs, surpassing one million total members for the first time.

Current wording

Our mission is to bend the curve. Our hope is that, one day, tomorrow’s epidemiologists will notice a bend in disease curves, wonder what might be happening, and conclude that part of that impact has been Omada. As part of that mission, we strive to inspire and enable people to make lasting health changes on their own terms. We launched our initial program in diabetes prevention and weight health in 2012, with the goal of showing that a virtual program could achieve the same clinical results as its in-person archetype. Today, we offer cardiometabolic programs for prediabetes, diabetes, hypertension, and high cholesterol; a physical therapy program to address musculoskeletal (“MSK”) conditions; additional support for members taking glucagon-like peptide-1 agonists (“GLP-1”) in our cardiometabolic programs (“GLP-1 Care Tracks”); a prescribing capability for GLP-1s and other anti-obesity medications (“AOMs”); and behavioral health support across all programs. As of June 30, 2026, we had approximately 1,091,000 total members enrolled in one or more programs.

Previous wording

Our virtual care programs are rooted in evidence and combine relationship-based, human-led clinical care with purpose-built technology. We call this approach Compassionate Intelligence. Our Care Teams, composed of health coaches, select relevant specialists, and licensed physical therapists, depending on the program, deliver healthcare to our members within the scope of their credentials. Our prescribing capability also incorporates third-party licensed obesity care providers for prescribing anti-obesity medications (“AOMs”) and related medication management, expanding the ways in which we can support customers and channel partners across a broader range of GLP-1 access models. Omada Care Teams are supported by our proprietary Care Team Platform that is purpose-built to magnify the impact of our Between-Visit Care model and drive operational excellence in a trusted and secure way. Broadly, our integrated technology platform supports activities across the entire lifecycle of our work with customers, channel partners, and members: from benefit eligibility confirmation and enrollment outreach to application and member onboarding, device management and fulfillment, member-facing tools and applications, Care Team tools, data capture and storage, and platform and billing infrastructure. The investments in our technology and Care Team Platform have enabled us to scale and serve over two million members since launch, while maintaining the ability to deliver an exceptional member experience, with high clinical quality and consistency.

Current wording

Our virtual care programs are rooted in evidence and combine relationship-based, human-led clinical care with purpose-built technology. Our “Care Teams,” composed of health coaches, select relevant specialists, and licensed physical therapists, depending on the program, deliver healthcare to our members within the scope of their credentials. Our prescribing capability also incorporates third-party licensed obesity care providers for prescribing AOMs and related medication management, expanding the ways in which we can support customers and channel partners across a broader range of GLP-1 access models. Omada Care Teams are supported by our proprietary “Care Team Platform” that is purpose-built to magnify the impact of our Between-Visit Care model and drive operational excellence in a trusted and secure way. Broadly, our integrated technology platform supports activities across the entire lifecycle of our work with customers, channel partners, and members: from benefit eligibility confirmation and enrollment outreach to application and member onboarding, device management and fulfillment, member-facing tools and applications, Care Team tools, data capture and storage, and platform and billing infrastructure. The investments in our technology and Care Team Platform have enabled us to scale and serve over two million members since launch, while maintaining the ability to deliver an exceptional member experience, with high clinical quality and consistency.

Previous wording

We generate services revenue from our customers by providing access to our virtual care programs in which our Care Teams implement clinically validated behavior change protocols for individuals living with prediabetes and weight management issues, diabetes, and hypertension (collectively referred to as “cardiometabolic” conditions) and MSK conditions over the term of the program. Our MSK program generally includes a fixed, upfront consultation fee and an additional fee for members that opt in to a physical therapist-guided treatment plan. We use a number of pricing models for our cardiometabolic programs. In general, our legacy pricing models for cardiometabolic programs may include a fixed, upfront enrollment fee and include variable monthly fees which are based on either outcomes or milestones for the respective member service period. In general, our latest pricing models for cardiometabolic programs are based on the respective member’s level of activity in the program. Each month, members that have completed a minimum number of qualifying activities during an agreed-upon backward-looking measurement period are considered billable members. The length of the measurement period and the qualifying activities may vary based on negotiations with customers and channel partners. Most activity measurement periods are defined as the preceding three or six months, and in most cases, members are considered active if they complete three activities during that period, such as logging in or interacting with the Omada mobile app, sending messages to Omada Care Team members, or recording metrics such as weight, blood pressure, or blood glucose values.

Current wording

We generate services revenue from our customers by providing access to our virtual care programs in which our Care Teams implement clinically validated behavior change protocols for individuals living with prediabetes and weight management issues, diabetes, hypertension, and high cholesterol (collectively referred to as “cardiometabolic” conditions) and MSK conditions over the term of the program. Our MSK program generally includes a fixed, upfront consultation fee and an additional fee for members that opt in to a physical therapist-guided treatment plan. We use a number of pricing models for our cardiometabolic programs. In general, our legacy pricing models for cardiometabolic programs may include a fixed, upfront enrollment fee and include variable monthly fees which are based on either outcomes or milestones for the respective member service period. In general, our latest pricing models for cardiometabolic programs are based on the respective member’s level of activity in the program. Each month, members that have completed a minimum number of qualifying activities during an agreed-upon backward-looking measurement period are considered billable members. The length of the measurement period and the qualifying activities may vary based on negotiations with customers and channel partners. Most activity measurement periods are defined as the preceding three or six months, and in most cases, members are considered active if they complete three activities during that period, such as logging in or interacting with the Omada mobile app, sending messages to Omada Care Team members, or recording metrics such as weight, blood pressure, or blood glucose values.

Previous wording

Sales from or through our top five health plan and PBM partners, including any sales to these entities as customers and sales through these entities as channel partners, represented 78% and 73% of our revenue for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Sales from or through our top five health plan and PBM partners, including any sales to these entities as customers and sales through these entities as channel partners, represented 79% and 76% of our revenue for the three months ended June 30, 2026 and 2025, respectively, and 79% and 75% for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Significant customers and channel partners are those which represent 10% or more of the accounts receivable balance or revenue for the periods presented. Customers and channel partners that accounted for 10% or more of accounts receivable, net as of March 31, 2026 and December 31, 2025 or 10% or more of revenue as of and for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Significant customers and channel partners are those which represent 10% or more of the accounts receivable balance or revenue for the periods presented. Customers and channel partners that accounted for 10% or more of accounts receivable, net as of June 30, 2026 and December 31, 2025 or 10% or more of revenue as of and for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

Under the OBBBA and newly enacted Section 174A of the Code, taxpayers may accelerate the recovery of previously capitalized domestic research and development expenditures that remained unamortized as of 2025, either entirely in 2025 or ratably over 2025 and 2026. We have elected to recover these costs ratably over 2025 and 2026 and recognized a deduction of approximately $36.1 million in 2025 to such expenditures.

Current wording

Under the OBBBA and newly enacted Section 174A of the Code, taxpayers may accelerate the recovery of previously capitalized domestic research and development expenditures that remained unamortized as of 2025, either entirely in 2025 or ratably over 2025 and 2026. We intend to elect to recover these costs ratably over 2025 and 2026 and recognized a deduction of approximately $36.1 million in 2025 to such expenditures.

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

Services revenue increased by $20.1 million, or 41%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by an increase of $24.1 million related to growth in total members due toacquisition of new customers and channel partners, sales of additional programs to our existing customers and continued progress in enrollment effectiveness, with the average number of total members during the three months ended March 31, 2026 increasing by 51% compared to the average for the three months ended March 31, 2025. The increase was partially offset by a $3.8 million aggregate decrease in average fees per member.

Current wording

Services revenue increased by $23.7 million, or 42%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by an increase of $26.2 million related to growth in total members due toacquisition of new customers and channel partners, sales of additional programs to our existing customers and continued progress in enrollment effectiveness, with the average number of total members during the three months ended June 30, 2026 increasing by 48% compared to the average for the three months ended June 30, 2025. The increase was partially offset by a $2.4 million decrease primarily attributable to lower average service fees per member and a greater portion of revenue allocated to hardware, rather than services, due to incrementally higher device cost compared to prior year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Previous wording

Hardware revenue increased by $3.0 million, or 55%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven bya 51% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which directly drove the number of devices that we delivered.

Current wording

Hardware revenue increased by $5.7 million, or 58%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven bya 45% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which directly drove the number of devices that we delivered. The increase also reflects higher average hardware fees per member, due to a greater portion of revenue allocated to hardware as device costs increased year over year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Previous wording

Total cost of revenue increased by $6.3 million, or 27%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Current wording

Total cost of revenue increased by $3.0 million, or 14%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Total cost of revenue increased by $9.3 million, or 21%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Previous wording

Cost of hardware revenue increased by $4.6 million, or 44%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a 51% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which drove new devices, supplies, and fulfillment costs, which include tariffs, compared to the prior period.

Current wording

Cost of hardware revenue increased by $2.0 million, or 24%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a 45% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which drove new devices, supplies, and fulfillment costs, which include tariffs, compared to the prior period.

Previous wording

Cost of services revenue increased by $1.7 million, or 13%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $0.9 million increase in personnel costs related toour Care Teams, reflecting additional care activities in onboarding the higher number of new members enrolled in our programs compared to the prior-year period, and a $0.6 million increase in technology infrastructure expenses.

Current wording

Cost of services revenue increased by $2.6 million, or 10%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $1.1 million increase in technology infrastructure expenses, a $1.0 million increase in personnel costs related toour Care Teams, reflecting additional care activities in onboarding the higher number of new members enrolled in our programs compared to the prior-year period and a $0.5 million increase in depreciation and amortization.

Previous wording

Gross profit increased by $16.8 million, or 53%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven by a 51% increase in total members and by a decrease in personnel costs per total member needed to support enrolled members as a result of strategic efficiency initiatives such as improving the effectiveness of our Care Team interventions and Care Team time management (“Care Team efficiency initiatives”), as well as the expanded use of supporting technologies, such as tools that can surface helpful templates for our Care Team’s consideration in frequently recurring scenarios (“Care Team message support”).

Current wording

Gross profit increased by $23.5 million, or 58%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, driven by a 45% increase in total members and by a decrease in personnel costs per total member needed to support enrolled members as a result of strategic efficiency initiatives such as improving the effectiveness of our Care Team interventions and Care Team time management (“Care Team efficiency initiatives”), as well as the expanded use of supporting technologies, such as tools that can surface helpful templates for our Care Team’s consideration in frequently recurring scenarios (“Care Team message support”).

Previous wording

Gross margin expanded by 4.3 percentage points for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The expansion of gross margin was primarily driven by lower personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives as well as the expanded use of supporting technologies, such as tools for Care Team message support.

Current wording

Gross margin expanded by 7 percentage points for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The expansion of gross margin was primarily driven by lower personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives as well as the expanded use of supporting technologies, such as tools for Care Team message support.

Previous wording

General and administrative expenses increased by $2.7 million, or 24%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $2.4 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in business insurance expenses, partially offset by a $0.5 million decrease in professional and outside services costs.

Current wording

Research and development expenses increased by $4.6 million, or 46%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a $4.3 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in technology infrastructure expenses, partially offset by a $0.1 million decrease in third-party consulting and professional services.

Previous wording

Research and development expenses increased by $3.9 million, or 44%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $3.5 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in technology infrastructure expenses.

Current wording

Research and development expenses increased by $8.5 million, or 45%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $7.8 million increase in personnel costs related to an increase in headcount and a $0.8 million increase in technology infrastructure expenses.

Previous wording

Sales and marketing expenses increased by $6.6 million, or 33%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $2.7 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $2.1 million increase in personnel costs related primarily to an increase in headcount, a $1.2 million increase in other marketing programs and sales commissions, and a $0.6 million increase in third-party consulting and professional services.

Current wording

Sales and marketing expenses increased by $7.6 million, or 34%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a $3.1 million increase in personnel costs related primarily to an increase in headcount, a $2.0 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $2.0 million increase in other marketing programs and sales commissions, and a $0.4 million increase in third-party consulting and professional services.

Previous wording

Interest expense decreased by $1.1 million, or 98%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the extinguishment of our financing arrangements with MidCap Funding IV Trust on July 31, 2025, as discussed in “Liquidity and Capital Resources” below.

Current wording

Interest expense decreased by $1.1 million, or 99%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to the extinguishment of our financing arrangements with MidCap Funding IV Trust on July 31, 2025, as discussed in “Liquidity and Capital Resources” below.

Previous wording

Interest income increased by $1.3 million, or 237%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.

Current wording

Interest income increased by $0.9 million, or 104%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.

Previous wording

The change in fair value of warrant liabilities decreased by $0.5 million, or 100%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Current wording

The change in fair value of warrant liabilities decreased by $0.7 million, or 100%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Previous wording

Since our inception, we have financed our operations primarily through proceeds from issuance of our redeemable convertible preferred stock and common stock, debt financing agreements, and cash generated from the sale of our products and services. On June 9, 2025, we completed our IPO and received proceeds of approximately $151.6 million, after deducting underwriting discounts and commissions and offering expenses. As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents of $211.8 million and working capital of $200.7 million. Cash and cash equivalents are composed of cash held in sweep accounts, checking accounts, and money market funds. Our principal use of cash is to fund our operations and invest in R&D to support our growth.

Current wording

Since our inception, we have financed our operations primarily through proceeds from issuance of our redeemable convertible preferred stock and common stock, debt financing agreements, and cash generated from the sale of our products and services. On June 9, 2025, we completed our IPO and received proceeds of approximately $151.6 million, after deducting underwriting discounts and commissions and offering expenses. As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $221.7 million and working capital of $219.4 million. Cash and cash equivalents are composed of cash held in sweep accounts, checking accounts, and money market funds. Our principal use of cash is to fund our operations and invest in R&D to support our growth.

Previous wording

We have generated significant losses from operations and negative cash flows from operating activities in the past, as reflected in our accumulated deficit of $459.7 million as of March 31, 2026. We believe that our current cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months. Our future capital requirements, however, will depend on many factors, including our growth rate, the timing and extent of our sales and marketing and R&D expenditures, the continuing market acceptance of our products and services, and the use of cash to fund potential mergers or acquisitions. In the event that additional financing is required from outside sources, we may seek to raise additional funds through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and on acceptable terms, our business, results of operations, and financial condition could be materially and adversely affected. In June 2023, we entered into a financing arrangement with Physera, Inc., MidCap Funding IV Trust (“MidCap”), as administrative agent, MidCap Financial Trust, as term loan servicer, certain funds managed by MidCap, as lenders, and the lenders, additional borrowers, and guarantors from time to time party thereto (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “MidCap Credit Agreement”), for a senior secured term loan (the “MidCap Term Facility”) in an aggregate principal amount of up to $60.0 million, with up to $30.0 million available upon the initial closing date and up to $30.0 million available for draw from October 2024 through March 2025 and a revolving line of credit facility (the “MidCap Revolving Facility”).

Current wording

We have generated significant losses from operations and negative cash flows from operating activities in the past, as reflected in our accumulated deficit of $454.4 million as of June 30, 2026. We believe that our current cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months. Our future capital requirements, however, will depend on many factors, including our growth rate, the timing and extent of our sales and marketing and R&D expenditures, the continuing market acceptance of our products and services, and the use of cash to fund potential mergers or acquisitions. In the event that additional financing is required from outside sources, we may seek to raise additional funds through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and on acceptable terms, our business, results of operations, and financial condition could be materially and adversely affected. In June 2023, we entered into a financing arrangement with Physera, Inc., MidCap Funding IV Trust (“MidCap”), as administrative agent, MidCap Financial Trust, as term loan servicer, certain funds managed by MidCap, as lenders, and the lenders, additional borrowers, and guarantors from time to time party thereto (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “MidCap Credit Agreement”), for a senior secured term loan (the “MidCap Term Facility”) in an aggregate principal amount of up to $60.0 million, with up to $30.0 million available upon the initial closing date and up to $30.0 million available for draw from October 2024 through March 2025 and a revolving line of credit facility (the “MidCap Revolving Facility”).

Previous wording

Net cash used in operating activities during the three months ended March 31, 2026 of $11.8 million was the result of a $3.0 millionnet loss, adjusted for $7.5 million of non-cash adjustments and $16.3 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $4.2 million of share-based compensation expense, $1.5 million of depreciation and amortization expense, $1.0 million of amortization of deferred commissions, and a $0.8 million increase in the provision for credit losses. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $9.2 million decrease in accrued expenses and other current liabilities, a $6.2 million increase in accounts receivable, a $2.2 million increase in deferred commissions, a $2.1 million decrease in accounts payable, a $1.5 million increase in prepaid and other current assets, and a $0.1 million increase in other non-current assets, partially offset by a $4.3 million increase in deferred revenue and a $0.7 million decrease in inventory.

Current wording

Net cash used in operating activities during the six months ended June 30, 2026 of $7.8 million was the result of a $2.3 millionnet income, adjusted for $16.1 million of non-cash adjustments and $26.2 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $9.8 million of share-based compensation expense, $3.1 million of depreciation and amortization expense, $1.9 million of amortization of deferred commissions, and a $1.2 million increase in the provision for credit losses. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $23.2 million increase in accounts receivable, a $4.4 million decrease in accrued expenses and other current liabilities, a $2.9 million increase in deferred commissions, a $0.1 million increase in other non-current assets, and a $0.3 million increase in prepaid and other current assets, partially offset by a $2.6 million increase in deferred revenue, a $1.5 million increase in accounts payable, and a $0.4 million decrease in inventory.

Previous wording

Net cash used in operating activities during the three months ended March 31, 2025 of $16.1 million was the result of a $9.4 million net loss, adjusted for $6.4 million of non-cash adjustments and $13.0 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments primarily consisted of $2.8 million in share-based compensation expense, $1.3 million of depreciation and amortization expense, $0.7 million of amortization of deferred commissions, $0.6 million in provision for credit losses, $0.5 million in fair value of warrant liabilities, $0.2 million of amortization of operating lease right-of-use assets, and $0.1 million of amortization of debt issuance costs. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $8.4 million decrease in accrued expenses and other current liabilities, a $6.5 million increase in accounts receivable, a $1.2 million increase in deferred commissions, a $0.6 million increase in prepaid and other current assets, and a $0.2 million decrease in operating lease liabilities, partially offset by a $3.3 million increase in deferred revenue, a $0.3 million decrease in inventory, and a $0.3 million increase in accounts payable.

Current wording

Net cash used in operating activities during the six months ended June 30, 2025 of $13.3 million was the result of a $14.8 million net loss, adjusted for $12.3 million of non-cash adjustments and $10.8 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $5.7 million of share-based compensation expense, $2.7 million of depreciation and amortization expense, $1.6 million of amortization of deferred commissions, $1.3 million increase in the fair value of warrant liabilities, a $0.5 million increase in the provision for credit losses, $0.4 million of amortization of operating lease right-of-use assets, and $0.3 million of amortization of debt issuance costs. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $10.4 million increase in accounts receivable, a $4.8 million decrease in accrued expenses and other current liabilities, a $1.4 million increase in deferred commissions, a $0.9 million increase in prepaid and other current assets, a $0.4 million decrease in operating lease liabilities, and a $0.2 million increase in inventory, partially offset by a $6.0 million increase in deferred revenue, a $1.0 million increase in accounts payable, a $0.1 million decrease in other non-current assets, and a $0.1 million increase in other non-current liabilities.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2026 of$1.6 million was the result of capitalized internal-use software costs of $1.5 million and purchases of property and equipment of $0.1 million.

Current wording

Net cash used in investing activities during the six months ended June 30, 2026 of$3.2 million was the result of capitalized internal-use software costs of $3.0 million and purchases of property and equipment of $0.2 million.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2025 of $1.2 million was the result of purchases of property and equipment of $0.3 million and capitalized internal-use software costs of $0.9 million.

Current wording

Net cash used in investing activities during the six months ended June 30, 2025 of $2.5 million was the result of capitalized internal-use software costs of $1.9 million and purchases of property and equipment of $0.6 million.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2026 of $3.1 million was the result of $3.2 million of proceeds from the exercise of stock options, partially offset by$0.1 million of taxes paid related to net share settlement of equity awards.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2026 of $10.7 million was the result of $11.4 million of proceeds from the exercise of stock options, partially offset by$0.7 million of taxes paid related to net share settlement of equity awards.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 of $0.4 million was the result of $0.9 million of proceeds from the exercise of stock options, partially offset by $0.5 million of payments for deferred offering costs.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025 of $162.5 million was the result of $160.5 million of proceeds from the IPO net of underwriting discounts and commissions and $3.9 million of proceeds from the exercise of stock options, partially offset by $1.9 million of payments for deferred offering expenses.

Previous wording

Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of March 31, 2026, we had $4.4 million of unconditional purchase commitments due in 2026 and $5.5 million due in 2027 and thereafter. The purchase obligation amounts do not represent the entire anticipated purchases in the future but represent only those items for which we are contractually obligated. The majority of our goods and services are purchased as needed, with no unconditional commitment. For this reason, these amounts do not provide an indication of our expected future cash outflows related to purchases. See Note 5 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of June 30, 2026, we had $4.6 million of unconditional purchase commitments due in 2026 and $6.6 million due in 2027 and thereafter. The purchase obligation amounts do not represent the entire anticipated purchases in the future but represent only those items for which we are contractually obligated. The majority of our goods and services are purchased as needed, with no unconditional commitment. For this reason, these amounts do not provide an indication of our expected future cash outflows related to purchases. See Note 5 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

In the ordinary course of business, we include in our agreements indemnification provisions of varying scope and terms pursuant to which we agree to indemnify customers, channel partners, suppliers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us, or from intellectual property infringement claims made by third parties. The term of these indemnification provisions generally survive the termination of the agreements indefinitely. The maximum potential amount of future payments we could be required to make under these arrangements is not determinable. No demands have ever been made upon us to provide indemnification under such agreements, and there are no claims under those indemnification terms that we are aware of that could have a material effect on our consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. As a result, we believe the fair value of these agreements is minimal.

Current wording

In the ordinary course of business, we include in our agreements indemnification provisions of varying scope and terms pursuant to which we agree to indemnify customers, channel partners, suppliers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us, or from intellectual property infringement claims made by third parties. The term of these indemnification provisions generally survive the termination of the agreements indefinitely. The maximum

Previous wording

We qualify as an “emerging growth company,” as defined in the JOBS Act. As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include: (i) being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure in this Quarterly Report on Form 10-Q; (ii) reduced disclosure about our executive compensation arrangements; (iii) not being required to hold advisory votes on executive compensation or to obtain stockholder approval of any golden parachute arrangements not previously approved; (iv) an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and (v) an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor’s report on the financial statements.

Current wording

We qualify as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include: (i) being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure in this Quarterly Report on Form 10-Q; (ii) reduced disclosure about our executive compensation arrangements; (iii) not being required to hold advisory votes on executive compensation or to obtain stockholder approval of any golden parachute arrangements not previously approved; (iv) an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and (v) an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor’s report on the financial statements.