Samsara Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026, and (2) our unaudited condensed consolidated financial statements and related notes and other financial information included under Part I, Item 1 of this Quarterly Report on Form 10-Q. Some of the information contained in the following discussion and analysis, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Item 1A. Risk Factors” and “Special Note Regarding Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” included under Part I, Item 1A. of our Annual Report on Form 10-K filed with the SEC on March 16, 2026 for a discussion of forward-looking statements and important factors that could impact our business and 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 or implied by past results and trends. These statements, like all statements in this Quarterly Report on Form 10-Q, 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. Our fiscal year ends on the Saturday closest to February 1, resulting in a 52-week or 53-week fiscal year. Our fiscal years 2027 and 2026 each consist of 52 weeks.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026, and (2) our unaudited condensed consolidated financial statements and related notes and other financial information included under Part I, Item 1 of this Quarterly Report on Form 10-Q. Some of the information contained in the following discussion and analysis, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Item 1A. Risk Factors” and “Special Note Regarding Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” included under Part I, Item 1A. of our Annual Report on Form 10-K filed with the SEC on March 16, 2026, as supplemented by our subsequent quarterly reports on Form 10-Q, for a discussion of forward-looking statements and important factors that could impact our business and 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 or implied by past results and trends. Unless otherwise indicated, these statements, like all statements in this Quarterly Report on Form 10-Q, speak only as of their date, and we undertake no obligation to update or revise these statements in light of future developments. Our fiscal year ends on the Saturday closest to February 1, resulting in a 52-week or 53-week fiscal year. Our fiscal years 2027 and 2026 each consist of 52 weeks.

Previous wording

We were founded in 2015 and have achieved significant growth since our inception. For the three months ended May 2, 2026 and May 3, 2025, our revenue was $478.8 million and $366.9 million, respectively. Our net income was $44.5 million for the three months ended May 2, 2026 and our net loss was $22.1 million for the three months ended May 3, 2025. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to expand our customers’ use of our Connected Operations Platform.

Current wording

We were founded in 2015 and have achieved significant growth since our inception. For the three months ended August 1, 2026 and August 2, 2025, our revenue was $508.4 million and $391.5 million, respectively. Our net income was $16.2 million for the three months ended August 1, 2026 and our net loss was $16.8 million for the three months ended August 2, 2025. For the six months ended August 1, 2026 and August 2, 2025, our revenue was $987.3 million and $758.4 million, respectively. Ournet income was $60.8 million for the six months ended August 1, 2026 and our net loss was $38.9 million for the six months ended August 2, 2025. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to expand our customers’ use of our Connected Operations Platform.

Previous wording

We believe that we have a substantial opportunity to continue to grow our customer base. We intend to drive new customer acquisition by continuing to invest significantly in sales and marketing to engage our prospective customers, increase brand awareness, and drive adoption of our Connected Operations Platform. Our ability to attract new customers depends on a number of factors, including the effectiveness of our sales and marketing efforts, macroeconomic factors and their impact on our customers’ businesses, and the success of our efforts to expand internationally.

Current wording

We believe that we have a substantial opportunity to continue to grow our customer base. We intend to drive new customer acquisition by continuing to invest significantly in sales and marketing to engage our prospective customers, increase brand awareness, and drive adoption of our Connected Operations Platform. Our ability to attract new customers depends on a number of factors, including the effectiveness of our sales and marketing efforts, macroeconomic factors and their impact on our customers’ businesses, and the success of our efforts to expand our international presence.

Previous wording

We believe that there is a significant opportunity to expand sales to existing customers following their initial adoption of our Connected Operations Platform. We expand within our customer base by selling more Applications and expanding existing Applications across geographies and divisions. Our ability to expand within our customer base will depend on a number of factors, including our customers’ satisfaction, pricing, competition, macroeconomic factors, and changes in our customers’ spending levels.

Current wording

We believe that there is a significant opportunity to expand sales to existing customers following their initial adoption of our Connected Operations Platform. We expand within our customer base by selling more Applications and Agents and expanding existing Applications and Agents across geographies and divisions. Our ability to expand within our customer base will depend on a number of factors, including our customers’ satisfaction, pricing, competition, macroeconomic factors, and changes in our customers’ spending levels.

Previous wording

Unfavorable conditions in the economy, both in the United States and abroad, may negatively affect the growth of our business and our results of operations. For example, our business and results of operations, as well as those of our customers, could be affected by global macroeconomic trends and events such as inflationary pressure, fluctuations in foreign currency exchange rates, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including fluctuating hardware component costs, memory, storage and computing costs, and fuel costs), labor shortages, delayed or reduced spending on technology, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts and geopolitical tension, the outcome of political elections, and new monetary, fiscal, and trade policies (including tariff policies and import and export restrictions) in the United States and abroad. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers.

Current wording

Unfavorable conditions in the economy, both in the United States and abroad, may negatively affect the growth of our business and our results of operations. For example, our business and results of operations, as well as those of our customers, could be affected by global macroeconomic trends and events such as inflationary pressure, fluctuations in foreign currency exchange rates, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including elevated hardware component costs, memory, storage and computing costs, and fuel costs), labor shortages, delayed or reduced spending on technology, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts and geopolitical tension, the outcome of political elections, and new monetary, fiscal, and trade policies (including tariff policies and import and export restrictions) in the United States and abroad. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers.

Previous wording

Refer to the section titled “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” in Part I, Item 1A and elsewhere in our Annual Report on Form 10-K filed on March 16, 2026, for further discussion of the impacts of macroeconomic trends on our business.

Current wording

Refer to the section titled “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” in Part I, Item 1A and elsewhere in our Annual Report on Form 10-K filed on March 16, 2026, as supplemented by our subsequent quarterly reports on Form 10-Q, for further discussion of the impacts of macroeconomic trends on our business.

Previous wording

As our customers expand and increase the use of our Connected Operations Platform driven by additional IoT devices and Applications, our cost of revenue may vary from quarter to quarter as a percentage of our revenue due to the timing and extent of these expenses. We intend to continue to invest additional resources in our Connected Operations Platform, including in our IoT device hardware, cloud infrastructure, and cellular connectivity, as well as in customer support and operations as we grow our business. The level and timing of investment in these areas will affect our cost of revenue in the future.

Current wording

As our customers expand and increase the use of our Connected Operations Platform driven by additional IoT devices and Applications, our cost of revenue may vary from quarter to quarter as a percentage of our revenue due to the timing and extent of these expenses. Our cost of revenue may also increase as a result of higher market prices for hardware components. We intend to continue to invest additional resources in our Connected Operations Platform, including in our IoT device hardware, cloud infrastructure, and cellular connectivity, as well as in customer support and operations as we grow our business. The level and timing of investment in these areas will affect our cost of revenue in the future.

Previous wording

General and administrative expenses consist primarily of employee-related costs for executive, finance, legal, human resources, facilities, and certain IT personnel, including salaries, benefits, and stock-based compensation. General and administrative expenses also include costs related to professional services, including legal, accounting, recruiting and other consulting services, as well as costs associated with software subscriptions and office facilities.

Current wording

General and administrative expenses consist primarily of employee-related costs for executive, finance, legal, and human resources, including salaries, benefits, and stock-based compensation. General and administrative expenses also include costs related to professional services, including legal, accounting, recruiting and other consulting services, as well as costs associated with software subscriptions and office facilities.

Previous wording

Provision for income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance against our U.S. deferred tax assets because we have concluded that it is more likely than not that the deferred tax assets will not be realized.

Current wording

Provision for income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance against our U.S. deferred tax assets because we have concluded that it is not more likely than not that the deferred tax assets will be realized.

Previous wording

Comparison of the Three Months Ended May 2, 2026 and May 3, 2025

Current wording

Comparison of the Three and Six Months Ended August 1, 2026 and August 2, 2025

Previous wording

Revenue increased by $112.0 million, or 31%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to an increase in new customers and increased purchases by existing customers.

Current wording

Revenue increased by $117.0 million and $228.9 million, or 30%, for the three and six months ended August 1, 2026, respectively, compared to the three and six months ended August 2, 2025, primarily due to growth in new customers and increased purchases by existing customers.

Previous wording

Cost of revenue increased by $34.5 million, or 42%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to $16.1 million of increased cloud and cellular costs, $10.8 million of increased connected device costs, and $3.0 million of increased employee-related costs. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume and additional product features and functionality year-over-year. The increase in employee-related costs was primarily due to increased headcount.

Current wording

Cost of revenue increased by $25.4 million, or 28%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to $11.7 million of increased cloud and cellular costs, $6.4 million of increased connected device costs, and $3.3 million of increased employee-related costs. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume and additional product features and functionality year-over-year. The increase in employee-related costs was primarily due to increased headcount.

Previous wording

Our gross margin decreased to 75% for the three months ended May 2, 2026 compared to 77% for the three months ended May 3, 2025, mainly due to increased cloud and cellular costs.

Current wording

Our gross margin decreased to 76% for the six months ended August 1, 2026 compared to 77% for the six months ended August 2, 2025, primarily due to increased cloud and cellular costs.

Previous wording

Research and development expense increased by $14.3 million, or 17%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $5.9 million increase in costs associated with software subscriptions, a $4.6 million increase in cloud and cellular costs driven by investments in AI tooling and related development infrastructure, and a $3.9 million increase in employee-related costs.

Current wording

Research and development expense increased by $16.9 million, or 20%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to a $6.8 million increase in costs associated with software subscriptions, a $6.4 million increase in stock-based compensation expense, and a $6.2 million increase in platform costs driven by investments in AI tooling and related development infrastructure.

Previous wording

Sales and marketing expense increased by $38.2 million, or 23%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $23.5 million increase in employee-related costs, which included a $18.1 million increase in salaries, benefits, and related employer taxes primarily due to increased headcount and a $5.8 million increase in sales commissions. The increase in sales and marketing expense was also due to a $9.7 million increase in expenditures incurred to generate demand through various marketing channels and promotional events.

Current wording

Sales and marketing expense increased by $43.7 million, or 25%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to a $25.7 million increase in employee-related costs which included a $6.1 million increase in sales commissions and a $4.5 million increase in stock-based compensation expense primarily due to increased headcount. The increase in sales and marketing expense was also due to an $11.5 million increase in expenditures incurred to generate demand through various marketing channels and promotional events, including our annual customer and investor conference.

Previous wording

General and administrative expense decreased by $15.6 million, or 23%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $14.4 million decrease in non-recurring consulting and professional services fees and a $2.5 million decrease in stock-based compensation expense.

Current wording

General and administrative expense decreased by $16.1 million, or 12%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, primarily due to a $17.8 million decrease in professional services fees, driven primarily by lower legal fees.

Previous wording

Interest income and other income, net, increased by $29.0 million, or 228%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025. This increase was primarily a result of a $30.3 million arbitration award issued in Samsara’s favor in the Motive breach of contract, fraud, unfair competition, and false advertising matter, partially offset by a $2.1 million increase in foreign currency losses.

Current wording

Interest income and other income, net, increased by $30.2 million, or 125%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025. This increase was primarily due to a $30.3 million arbitration award issued in Samsara’s favor in the Motive breach of contract, fraud, unfair competition, and false advertising matter.

Previous wording

The provision for income taxes increased by $2.8 million, or 178%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to growth in our operations in foreign jurisdictions.

Current wording

The provision for income taxes increased by $2.5 million, or 79%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, due to growth in our operations in foreign jurisdictions.

Previous wording

Lease modification, impairment, and related charges, and legal settlements and awards are excluded because management believes that such charges are not reflective of our ongoing operational performance.

Current wording

In periods when they occur, significant lease modification, impairment and related charges, and legal settlements and awards are excluded because management believes that such charges are not reflective of our ongoing operational performance.

Previous wording

(1)Stock-based compensation expense-related charges included approximately $0.3 million and $0.4 million of employer taxes on employee equity transactions for the three months ended May 2, 2026 and May 3, 2025, respectively.

Current wording

(1)Stock-based compensation expense-related charges included approximately $0.2 million and $0.3 million of employer taxes on employee equity transactions for the three months ended August 1, 2026 and August 2, 2025, respectively.

Previous wording

We define non-GAAP operating income as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income as a percentage of total revenue. We use non-GAAP operating income and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP operating income to our GAAP income (loss) from operations for the periods presented (in thousands, except percentages):

Current wording

We define non-GAAP operating income as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment and related charges, and legal settlements and awards, in periods when they occur. Non-GAAP operating margin is defined as non-GAAP operating income as a percentage of total revenue. We use non-GAAP operating income and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP operating income to our GAAP income (loss) from operations for the periods presented (in thousands, except percentages):

Previous wording

We define non-GAAP net income asnet income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements and awards. We use non-GAAP net income in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP net income to our GAAPnet income (loss) for the periods presented (in thousands, except percentages):

Current wording

We define non-GAAP net income asnet income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment and related charges, and legal settlements and awards, in periods when they occur. We use non-GAAP net income in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP net income to our GAAPnet income (loss) for the periods presented (in thousands, except percentages):

Previous wording

(2)There were no material income tax effects on our non-GAAP adjustments for all periods presented.

Current wording

(1)There were no material income tax effects on our non-GAAP adjustments for all periods presented.

Previous wording

We define free cash flow as net cash provided by operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives. The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented (in thousands, except percentages):

Current wording

We define free cash flow as net cash provided by operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives. The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented (in thousands, except percentages):

Previous wording

Since our founding, we have financed our operations primarily through the sale of equity securities and payments received from our customers. In December 2021, we completed our initial public offering (“IPO”), which resulted in aggregate net proceeds of $846.7 million, including proceeds from the underwriters’ exercise of their option to purchase additional shares of our Class A common stock in January 2022 and net of underwriting discounts and commissions. We have generated significant operating losses from our operations, as reflected in our accumulated deficit of $1,574.6 million as of May 2, 2026. We intend to continue investing in our business, and as a result, we may require additional capital resources to execute on our strategic initiatives to grow our business, particularly if we generate negative cash flows in future quarters. We believe that our existing cash, cash equivalents, and short-term and long-term investments will be sufficient to support working capital, including our non-cancelable arrangements, and capital expenditure requirements for at least the next 12 months.

Current wording

Since our founding, we have financed our operations primarily through the sale of equity securities and payments received from our customers. In December 2021, we completed our initial public offering (“IPO”), which resulted in aggregate net proceeds of $846.7 million, including proceeds from the underwriters’ exercise of their option to purchase additional shares of our Class A common stock in January 2022 and net of underwriting discounts and commissions. We have generated significant operating losses from our operations, as reflected in our accumulated deficit of $1,558.4 million as of August 1, 2026. We intend to continue investing in our business, and as a result, we may require additional capital resources to execute on our strategic initiatives to grow our business, particularly if we generate negative cash flows in future quarters. We believe that our existing cash, cash equivalents, and short-term and long-term investments will be sufficient to support working capital, including our non-cancelable arrangements, and capital expenditure requirements for at least the next 12 months.

Previous wording

As of May 2, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term and long-term investments of $1,281.4 million. Cash and cash equivalents consisted of cash as well as highly liquid investments with an original maturity of 90 days or less, when purchased. Our investments primarily consisted of U.S. government, and agency securities, and municipal securities, corporate notes and bonds, and commercial paper. Our primary uses of cash include employee-related expenditures, third-party cloud and cellular costs, sales and marketing expenses, overhead expenses, and funding other working capital requirements, such as inventory and related connected device costs to meet our performance obligations related to our Connected Operations Platform.

Current wording

As of August 1, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term and long-term investments of $1,325.7 million. Cash and cash equivalents consisted of cash as well as highly liquid investments with an original maturity of 90 days or less, when purchased. Our investments primarily consisted of U.S. government, agency, and municipal securities, corporate notes and bonds, and commercial paper. Our primary uses of cash include employee-related expenditures, third-party cloud and cellular costs, sales and marketing expenses, overhead expenses, and funding other working capital requirements, such as inventory and related connected device costs to meet our performance obligations related to our Connected Operations Platform.

Previous wording

Cash provided by operating activities was $81.4 million for the three months ended May 2, 2026. This consisted of anet income of $44.5 million, adjusted for non-cash charges of $83.1 million, partially offset by net uses of cash from changes in our operating assets and liabilities of $46.2 million. The non-cash charges were primarily composed of stock-based compensation expense of $77.5 million and depreciation and amortization of $7.9 million. Changes in our operating assets and liabilities during the three months ended May 2, 2026 reflect the recognition of an arbitration award receivable, higher vendor payments, higher connected device costs and deferred commissions due to the growth of our business, and increases in inventory levels to meet anticipated demand requirements, partially offset by higher cash collections from customers and increases in deferred revenue due to the growth of our business during the three months ended May 2, 2026.

Current wording

Cash provided by operating activities was $154.9 million for the six months ended August 1, 2026. This consisted ofnet income of $60.8 million, adjusted for non-cash charges of $188.3 million, partially offset by $94.1 million of cash used by changes in our operating assets and liabilities. The non-cash charges were primarily composed of stock-based compensation expense of $173.9 million and depreciation and amortization of $16.3 million. Changes in our operating assets and liabilities during the six months ended August 1, 2026 reflect higher connected device costs (offset by a one-time $12.4 million cash refund related to tariffs), deferred commissions, and accounts receivable from customers due to the growth of our business; the recognition of an arbitration award receivable; and increases in inventory levels to meet anticipated demand. These increases were partially offset by increases in deferred revenue due to the growth of our business and lower vendor payments.

Previous wording

Cash provided by operating activities was$52.6 million for thethree months ended May 3, 2025. This consisted of anet loss of$22.1 million, adjusted for non-cash charges of$79.3 million, and changes in our operating assets and liabilities of$4.6 million. The non-cash charges were primarily composed of stock-based compensation expense of$77.1 million and depreciation and amortization of$5.1 million, partially offset by net accretion of discounts on marketable debt securities of$2.6 million. Changes in our operating assets and liabilities during thethree months ended May 3, 2025 reflect higher vendor payments and higher deferred commissions and connected device costs due to the growth of our business, partially offset by increases in deferred revenue also due to the growth of our business and higher cash collections from customers during the three months ended May 3, 2025.

Current wording

Cash provided by operating activities was$102.8 million for thesix months ended August 2, 2025. This consisted of anet loss of$38.9 million, adjusted for non-cash charges of$162.7 million, partially offset by$21.0 millionof cash used by changes in our operating assets and liabilities. The non-cash charges were primarily composed of stock-based compensation expense of$158.2 million and depreciation and amortization of$10.5 million, partially offset by net accretion of discounts on marketable debt securities of$5.0 million. Changes in our operating assets and liabilities during thesix months ended August 2, 2025 reflect an increase in deferred commissions, connected device costs, and accounts receivable from customers due to the growth of our business; increases in vendor payments; and inventory levels to meet anticipated demand. These increases were partially offset by increases in deferred revenue due to the growth of our business.

Previous wording

Cash used in investing activities was $149.2 million for the three months ended May 2, 2026, which primarily consisted of $357.5 million of purchases of investments and $6.2 million of capitalized internal-use software costs, partially offset by $216.6 million of proceeds from maturities and redemptions of investments.

Current wording

Cash used in investing activities was $129.5 million for the six months ended August 1, 2026, which primarily consisted of $578.5 million of purchases of investments and $12.2 million of capitalized internal-use software costs, partially offset by $465.9 million of proceeds from maturities and redemptions of investments.

Previous wording

Cash used in investing activities was$18.3 million for thethree months ended May 3, 2025, which primarily consisted of$173.1 million of purchases of investments and $5.1 million of capitalized internal-use software costs, partially offset by$162.0 million of proceeds from maturities and redemptions of investments.

Current wording

Cash used in investing activities was$86.4 million for thesix months ended August 2, 2025, which primarily consisted of$421.9 million of purchases of investments and $10.3 million of capitalized internal-use software costs, partially offset by$348.6 million of proceeds from maturities and redemptions of investments.

Previous wording

Cash used in financing activities was $34.4 million for the three months ended May 2, 2026, which primarily consisted of $34.3 million of tax payments to net share settle equity awards.

Current wording

Cash used in financing activities was $53.4 million for the six months ended August 1, 2026, which primarily consisted of $70.4 million of tax payments to net share settle equity awards, partially offset by$17.1 million of proceeds from employee stock purchases under the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) and exercises of stock options.

Previous wording

There were no material changes to our critical accounting estimates during the three months ended May 2, 2026.

Current wording

There were no material changes to our critical accounting estimates during the six months ended August 1, 2026.