Cytek Biosciences, Inc.

Previous wording

To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 69% and 69% of total revenue for the three and six months ended June 30, 2026, respectively, and 73% and 73% of total revenue for the three and six months ended June 30, 2025, respectively. Revenue from distributors represented 31% and 31% of total revenue for the three and six months ended June 30, 2026, respectively, and 27% and 27% of total revenue for the three and six months ended June 30, 2025, respectively.

Current wording

To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 79% and 73% of total revenue for the three and nine months ended September 30, 2026, respectively, and 72% and 73% of total revenue for the three and nine months ended September 30, 2025, respectively. Revenue from distributors represented 21% and 27% of total revenue for the three and nine months ended September 30, 2026, respectively, and 28% and 27% of total revenue for the three and nine months ended September 30, 2025, respectively.

Previous wording

We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $9.7 million and $19.3 million for the three and six months ended June 30, 2026, respectively, and $8.8 million and $18.6 million for the three and six months ended June 30, 2025, respectively. We intend to continue to make significant investments in research and development in the future.

Current wording

We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $9.4 million and $28.7 million for the three and nine months ended September 30, 2026, respectively, and $9.0 million and $27.5 million for the three and nine months ended September 30, 2025, respectively. We intend to continue to make significant investments in research and development in the future.

Previous wording

We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $13.2 million and $24.8 million for the three and six months ended June 30, 2026, respectively, and $12.1 million and $24.6 million for the three and six months ended June 30, 2025, respectively.

Current wording

We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $11.9 million and $36.7 million for the three and nine months ended September 30, 2026, respectively, and $11.7 million and $36.3 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

Our net loss was $12.2 million and $31.0 million for the three and six months ended June 30, 2026, respectively, and $5.6 million and $17.0 million for the three and six months ended June 30, 2025, respectively. The change for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, resulted primarily from an increase in revenues and gross profit as well as an increase in operating expenses.

Current wording

Our net loss was $6.1 million and $37.1 million for the three and nine months ended September 30, 2026, respectively, and $5.5 million and $22.5 million for the three and nine months ended September 30, 2025, respectively. The change for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, resulted primarily from an increase in revenues and gross profit as well as an increase in operating expenses.

Previous wording

We believe that our financial performance has been, and in the foreseeable future will continue to be, primarily driven by multiple factors as described below, each of which presents growth opportunities for our business. These factors also pose important challenges that we must successfully address to sustain our growth and improve our results of operations. Our ability to successfully address these challenges is subject to various risk and uncertainties, including those described under the heading “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

We believe that our financial performance has been, and in the foreseeable future will continue to be, primarily driven by multiple factors as described below, each of which presents growth opportunities for our business. These factors also pose important challenges that we must successfully address to sustain our growth and improve our results of operations. Our ability to successfully address these challenges is subject to various risks and uncertainties, including those described under the heading “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

We focus our research and development efforts on the greatest value-additive products to meet the growing and unmet needs of the research and clinical markets. We work closely with researchers, clinicians and scientists to optimize and implement new panels and applications to meet their specific needs. We also gain valuable insight on potential new products, new applications and enhancements to existing products, as well as biomarker combinations that would be beneficial in different fields, through collaborations with our customers, academic laboratories, KOLs and industry partners. We plan to continue to invest in new product development and enhancements to support our expansion into new markets.

Current wording

We focus our research and development efforts on the greatest value-additive products to meet the growing and unmet needs of the research and clinical markets. We work closely with researchers, clinicians and scientists to optimize and implement new panels and applications to meet their specific needs. We also gain valuable insight on potential new products, new applications and enhancements to existing products, as well as biomarker combinations that would be beneficial in different fields, through collaborations with our customers, academic laboratories, key opinion leaders (“KOLs”) and industry partners. We plan to continue to invest in new product development and enhancements to support our expansion into new markets.

Previous wording

We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was $48.1 million and $45.6 million for the three months ended June 30, 2026 and 2025, respectively, and $92.3 million and $87.1 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was $53.2 million and $52.3 million for the three months ended September 30, 2026 and 2025, respectively, and $145.5 million and $139.4 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Comparison of the three and six months ended June 30, 2026 and 2025

Current wording

Comparison of the three and nine months ended September 30, 2026 and 2025

Previous wording

Total revenue, net increased by $2.5 million to $48.1 million, or 6%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Total revenue, net increased by $5.2 million to $92.3 million, or 6%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

Total revenue, net increased by $0.9 million to $53.2 million, or 2%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Total revenue, net increased by $6.2 million to $145.5 million, or 4%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

Service revenue increased $1.4 million to $15.6 million, or 10%, and by $3.4 million to $30.9 million, or 12%, for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, respectively. The increase was primarily due to continued growth of the installed base with the related increase in service contracts and maintenance activity.

Current wording

Service revenue increased $1.9 million to $16.1 million, or 13%, and by $5.3 million to $47.0 million, or 13%, for the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025, respectively. The increase was primarily due to continued growth of the installed base with the related increase in service contracts and maintenance activity.

Previous wording

Total cost of sales decreased by $1.9 million to $19.8 million, or 9%, and by $0.4 million to $42.7 million or 1%, for the three and six months ended June 30, 2026, respectively, as compared to the three and six months ended June 30, 2025. The decrease in cost of sales was primarily driven bya one-time$2.8 million reduction in cost of goods sold related totariff refunds, partially offset by other product costs and higher service personnel costs.

Current wording

Total cost of sales decreased by $2.7 million to $22.0 million, or 11%, and by $3.1 million to $64.7 million or 5%, for the three and nine months ended September 30, 2026, respectively, as compared to the three and nine months ended September 30, 2025. The decrease in cost of sales for the three months ended September 30, 2026 was due to lower product cost of sales primarily resulting from lower overhead, material and tariff costs. The decrease for the nine months ended September 30, 2026 was due to lower product cost of sales, primarily driven by a one-time $2.8 million tariff refund and lower product overhead costs, partially offset by other product costs and higher service personnel costs.

Previous wording

Total gross profit margin was 59% and 52% of total revenue for the three months ended June 30, 2026 and 2025, respectively, and 54% and 51% for the six months ended June 30, 2026 and 2025, respectively. The increase in gross profit margin was primarily due to the recognition ofa$2.8 million reduction in cost of goods sold related totariff refunds, as well as lower service material costs in 2026 compared to 2025. Excluding the tariff refunds, total gross margin would have been 53% and 51% for thethree and six months ended June 30, 2026, respectively. Overall, gross profit margin depends on many factors, including market conditions that might affect our pricing; services; product mix changes between instrument configurations; excess and obsolete inventories; our cost structure for manufacturing operations relative to volume, freight costs and product support.

Current wording

Total gross profit margin was 59% and 53% of total revenue for the three months ended September 30, 2026 and 2025, respectively, and 56% and 51% for the nine months ended September 30, 2026 and 2025, respectively. The increase in gross profit margin for the three months ended September 30, 2026 was due to lower product cost of sales. The increase for the nine months ended September 30, 2026 was also due to lower product cost of sales, primarily due toa$2.8 million tariff refund and lower manufacturing overhead costs. Service cost of sales increased at a slower rate than service revenue primarily due to lower service material costs. Excluding the tariff refunds recognized in the quarter ended June 30, 2026, total gross margin would have been 54% for the nine months ended September 30, 2026. Overall, gross profit margin depends on many factors, including market conditions that might affect our pricing; services; product mix changes between instrument configurations; excess and obsolete inventories; our cost structure for manufacturing operations relative to volume, freight costs and product support.

Previous wording

Product revenue for the three and six months ended June 30, 2026 increased by 4% and 3%, respectively, as compared to the three and six months ended June 30, 2025. Product cost of sales for the three months ended June 30, 2026, decreased by 14% and 5%, respectively, as compared to the same period in 2025, primarily due to a one-time $2.8 million reduction in cost of goods sold related to tariff refunds during the second quarter of 2026, and lower manufacturing overhead, partially offset by higher material costs, inventory reserves and scrap expenses.

Current wording

Product revenue decreased by 3% for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, and increased by 1% for the nine months ended September 30, 2026, as compared to nine months ended September 30, 2025. Product cost of sales for the three and nine months ended September 30, 2026 decreased by 19% and 10%, respectively, as compared to the same period in 2025. The decrease in cost of sales for the three months ended September 30, 2026 was primarily attributable to lower manufacturing overhead, including lower compensation expenses and lower material costs. The decrease for the nine months ended September 30, 2026 was reflective of the same factors as well as a one-time $2.8 million reduction in cost of sales from tariff refunds recognized in the second quarter of 2026.

Previous wording

Product gross profit for the three and six months ended June 30, 2026 increased 19% and 12%, respectively, as compared to the three and six months ended June 30, 2025. Product gross profit margins for the three and six months ended June 30, 2026 were 60% and 53%, respectively, as compared to 53% and 49% for the corresponding periods in 2025. The increases were primarily driven by the $2.8 million tariff refunds, offset by other costs mentioned above. Excluding the tariff refunds, product gross margin would have been 52% and 48% for three and six months ended June 30, 2026, respectively.

Current wording

Product gross profit for the three and nine months ended September 30, 2026 increased 11% and 12%, respectively, as compared to the three and nine months ended September 30, 2025. Product gross profit margins for the three and nine months ended September 30, 2026 were 61% and 56%, respectively, as compared to 53% and 51%, respectively, for the three and nine months ended September 30, 2025. The increases were primarily driven by the decreases in cost of sales discussed above and, for the nine-month period ending September 30, 2026, the $2.8 million tariff refunds described above. Excluding the impact of this tariff refund, product gross margin would have been 53% for the nine months ended September 30, 2026.

Previous wording

Service revenue for the three and six months ended June 30, 2026 increased 10% and 12%, respectively, as compared to the three and six months ended June 30, 2025. Service cost of sales for the three and six months ended June 30, 2026 increased by 1% and 10%, respectively, as compared to the same period in 2025. Service gross profit for the three and six months ended June 30, 2026 increased 18% and 14%, respectively, as compared to the three and six months ended June 30, 2025. Service gross margins for the three and six months ended June 30, 2026 were 56% and 55%, respectively, compared to 52% and 54% for the corresponding periods in 2025. The higher service gross margins in the three and six months ended June 30, 2026 compared to the corresponding periods in 2025, were mainly driven by lower service material costs.

Current wording

Service revenue for the three and nine months ended September 30, 2026 increased 13% and 13%, respectively, as compared to the three and nine months ended September 30, 2025. Service cost of sales for the three and nine months ended September 30, 2026 increased by 8% and 10%, respectively, as compared to the same period in 2025. Service gross profit for the three and nine months ended September 30, 2026 increased 18% and 16%, respectively, as compared to the three and nine months ended September 30, 2025. Service gross margins for the three and nine months ended September 30, 2026 were 53% and 54%, respectively, compared to 51% and 53%, respectively, for the three and nine months ended September 30, 2025. The higher service gross margin in the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was mainly driven by slower growth in service overhead costs compared to the rate of revenue growth. For the nine months ended September 30, 2026, the higher service gross margin was primarily due to lower material costs.

Previous wording

Research and development expenses were $9.7 million and $19.3 million for the three and six months ended June 30, 2026, respectively, as compared to $8.8 million and $18.6 million for the three and six months ended June 30, 2025, respectively. The increase in expenses for the three months ended June 30, 2026 was primarily driven by higher personnel costs. The increase in expenses for the six months ended June 30, 2026 was primarily driven by higher outside services, personnel, and business expenses.

Current wording

Research and development expenses were $9.4 million and $28.7 million for the three and nine months ended September 30, 2026, respectively, as compared to $9.0 million and $27.5 million for the three and nine months ended September 30, 2025, respectively. The increase in expenses for the three months ended September 30, 2026 was primarily driven by higher personnel costs, offset by lower engineering expenses. The increase in expenses for the nine months ended September 30, 2026 was primarily driven by higher outside services, personnel, and business expenses.

Previous wording

Sales and marketing expenses were $13.2 million and $24.8 million for the three and six months ended June 30, 2026, respectively, as compared to $12.1 million and $24.6 million for the three and six months ended June 30, 2025, respectively. The increase in expenses for the three months ended June 30, 2026 was primarily driven by higher severance, other personnel costs and higher advertising and marketing expenses.

Current wording

Sales and marketing expenses were $11.9 million and $36.7 million for the three and nine months ended September 30, 2026, respectively, as compared to $11.7 million and $36.3 million for the three and nine months ended September 30, 2025, respectively. The increase in expenses for the nine months ended September 30, 2026 was primarily driven by higher severance, other personnel costs, and higher advertising and marketing expenses.

Previous wording

General and administrative expenses were $16.8 million and $35.3 million for the three and six months ended June 30, 2026, respectively, as compared to $13.5 million and $26.4 million for the three and six months ended June 30, 2025, respectively. The increase in expenses for the three months ended June 30, 2026 was primarilydue to higher litigation-related expenses, and higher severance and other personnel costs. The increase in expenses for the six months ended June 30, 2026 was primarily due to higher litigation-related expenses, and also higher outside consulting expenses, bad debt reserves, severance, and other personnel costs.

Current wording

General and administrative expenses were $18.4 million and $53.7 million for the three and nine months ended September 30, 2026, respectively, as compared to $16.1 million and $42.6 million for the three and nine months ended September 30, 2025, respectively. The increase in expenses for the three months ended September 30, 2026 was primarilydue to higher litigation-related expenses, offset partially by lower compensation and severance expenses, and the non-recurrence of a write-off of deferred offering costs in the prior period. The increase in expenses for thenine months ended September 30, 2026 was primarily due to higher litigation-related expenses, andbad debt reserves, offset by lower severance and other personnel costs, and the non-recurrence of the write-off in the prior period mentioned above.

Previous wording

Interest income was $0.8 million and $1.6 million for the three and six months ended June 30, 2026, respectively, as compared to $0.6 million and $1.1 million for the three and six months ended June 30, 2025, respectively. The increase in interest income was primarily attributable to the $0.2 million of interest income on Federal income tax refunds recognized in Q1 2026, and a change in mix of marketable securities toward a higher proportion of interest income generating securities during thethree and six months ended June 30, 2026.

Current wording

Interest income was $1.0 million and $2.6 million for the three and nine months ended September 30, 2026, respectively, as compared to $0.6 million and $1.6 million for the three and nine months ended September 30, 2025, respectively. For the three months and nine months ended September 30, 2026, the increase in interest income was primarily driven bya change in mix of marketable securities toward a higher proportion of interest income generating securities. Additionally, for the nine months ended September 30, 2026, the increase in interest income was primarily attributable to the $0.2 million of interest income on Federal income tax refunds recognized in the first quarter of 2026.

Previous wording

Other income (expense), net was $0.8 million and $0.2 million for the three and six months ended June 30, 2026, respectively, as compared to other income (expense), net of $3.7 million and $7.2 million for the three and six months ended June 30, 2025, respectively. The decrease in other income (expense), net was primarily driven by an increase in realized and unrealized foreign exchange losses of $0.7 million and $1.8 million in the three and six months ended June 30, 2026, respectively, compared with a realized and unrealized foreign exchange gain of $1.6 million and $2.9 million in the three and six months ended June 30, 2025, respectively. Other factors reducing other income included a $1.6 million impairment charge on a non-marketable equity investment in an early-stage technology company incurred in the second quarter of 2026, as well as the year-over-year decline in interest rates and a change in mix of marketable securities toward a lower proportion of investment income generating securities.

Current wording

Other income (expense), net was $0.8 million for the three months ended September 30, 2026, compared to other income (expense), net of $1.3 million for the three months ended September 30, 2025. The decrease in other income (expense), net was primarily driven by a reduction in investment and other income of $0.9 million, offset by a reduction in realized and unrealized foreign exchange losses of$0.4 million compared in the prior year period. Other income (expense), net was$0.5 million for thenine months ended September 30, 2026, compared to$8.5 million for thenine months ended September 30, 2025. The decrease in other income (expense) was primarily driven by $2.3 million of foreign exchange losses in the current period compared to $2.0 million of foreign exchange gains in the prior period, $4.5 million of investment and other income in the current period compared to $6.6 million in the prior period, driven bya change in mix of marketable securities toward a lower proportion of investment income generating securitiesanda $1.6 million impairment charge on a non-marketable equity investment in an early-stage technology company incurred in the second quarter of 2026.

Previous wording

Provision for income taxes was $0.5 million and $2.0 millionfor thethree and six months ended June 30, 2026, respectively, as compared to a benefit from income taxes of $1.2 million and$1.1 millionfor thethree and six months ended June 30, 2025, respectively. The net increases of $1.7 million and $3.1 million for the three and six months ended June 30, 2026, respectively, were primarily due to the domestic valuation allowance established in the last quarter of 2025, which negates the tax benefit from losses within the U.S. jurisdiction for the current period.

Current wording

Income tax benefit was $0.8 million for the three months ended September 30, 2026, as compared to an income tax benefit of $2.3 million for the three months ended September 30, 2025. Income tax expense was $1.2 million for the nine months ended September 30, 2026, as compared to an income tax benefit of $3.3 million for the nine months ended September 30, 2025. The net increase in expenses of $1.5 million and $4.5 million for the three and nine months ended September 30, 2026 was primarily due to the domestic valuation allowance established in the last quarter of 2025, which negates the tax benefit from losses within the U.S. jurisdiction for the current period.

Previous wording

To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of June 30, 2026 and December 31, 2025, we had approximately $262.0 million and $261.5 million, respectively, in cash and cash equivalents and marketable securities, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.

Current wording

To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of September 30, 2026 and December 31, 2025, we had approximately $256.3 million and $261.5 million, respectively, in cash, cash equivalents, restricted cash, and marketable securities, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.

Previous wording

In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2030. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $20.9 million as of June 30, 2026.

Current wording

In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2030. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $20.1 million as of September 30, 2026.

Previous wording

Net cash used inoperating activities for thesix months ended June 30, 2026 was $1.4 million. The primary factors affecting our operating cash flows during the period were our net loss of$31.0 million and our non-cash charges of $16.5 million, primarily consisting ofstock-based compensation expense of $10.2 million, depreciation and amortization of $3.9 million, amortization of right-of-use assets of $1.9 million, provision for excess and obsolete inventory of $0.6 million, and provision for credit losses of $0.5 million, partially offset by a gain on investments, accretion and amortization, net of $2.6 million, and deferred income taxes of $0.2 million. The cash provided by changes in our operating assets and liabilities of $13.2 million in the six months ended June 30, 2026 was primarily due to a decrease in trade accounts receivable of $11.6 million due to seasonality, with our first quarter typically being lower than our fourth quarter, a decrease in prepaid expenses and other assets of $1.6 million, decrease in trade accounts payable of $2.1 million, decrease in operating lease liabilities of $1.9 million and a decrease in deferred revenue of $0.8 million. These amounts were partially offset by cash used from changes in our operating assets and liabilities, including an increase in inventories of $4.5 million and decrease in legal settlement liabilities of $0.6 million.

Current wording

Net cash used inoperating activities for thenine months ended September 30, 2026 was $5.8 million. The primary factors affecting our operating cash flows during the period were our net loss of$37.1 million and our non-cash charges of $24.0 million, primarily consisting ofstock-based compensation expense of $15.1 million, depreciation and amortization of $6.0 million, amortization of right-of-use assets of $2.9 million, provision for credit losses of $0.9 million and provision for excess and obsolete inventory of $0.8 million, partially offset by a gain on investments, accretion and amortization, net of $3.4 million, and deferred income taxes of $0.2 million. The cash provided by changes in our operating assets and liabilities of $7.3 million in the nine months ended September 30, 2026 was primarily due to a decrease in prepaid expenses and other assets of $4.7 million, an increase in accrued expenses and other liabilities of $4.5 million, a decrease in trade accounts receivable of $1.5 million due to seasonality, with our first quarter typically being lower than our fourth quarter, an increase in deferred revenue of $2.5 million, and an increase in operating lease liabilities of $1.0 million. These amounts were partially offset by cash used from changes in our operating assets and liabilities, including an increase in inventories of $4.7 million, a decrease in trade accounts payable of $1.4 million, and decrease in legal settlement liabilities of $0.9 million.

Previous wording

Net cash used in operating activities for thesix months ended June 30, 2025 was$0.02 million. The primary factors affecting our operating cash flows during the period were our net loss of$17.0 million and our non-cash charges of $14.7 million, primarily consisting ofstock-based compensation expense of $13.4 million, depreciation and amortization of $3.8 million, amortization of right-of-use assets of $2.1 million, and excess and obsolete inventory of $0.3 million, partially offset by a gain on investments, accretion and amortization, net of $3.1 million, and deferred income taxes of $2.4 million. The cash provided by changes in our operating assets and liabilities of $2.2 million in the six months ended June 30, 2025 were primarily due to a decrease in trade accounts receivable of $7.1 million due to seasonality, with our first quarter typically being lower than our fourth quarter, and increase in trade accounts payable of $1.2 million. These amounts were partially offset by cash used from changes in our operating assets and liabilities, including an increase in inventories of $5.1 million, a decrease in operating lease liabilities of $2.2 million, and decrease in legal settlement liabilities of $0.6 million.

Current wording

Net cash used in operating activities for thenine months ended September 30, 2025 was$3.9 million. The primary factors affecting our operating cash flows during the period were our net loss of$22.5 million and our non-cash charges of $19.9 million, primarily consisting ofstock-based compensation expense of $19.1 million, depreciation and amortization of $5.7 million, amortization of right-of-use assets of $3.2 million, and excess and obsolete inventory of $0.5 million, partially offset by deferred income taxes of $5.0 million, and a gain on investments, accretion and amortization, net of $4.5 million. The cash used in changes in our operating assets and liabilities of $1.3 million in the nine months ended September 30, 2025 were primarily due to an increase in inventories of $7.3 million, a decrease in operating lease liabilities of $3.3 million, and a decrease in legal settlement liabilities of $0.8 million, and an increase in prepaid expenses and other assets of $0.7 million. These amounts were partially offset by cash provided from changes in our operating assets and liabilities, including a decrease in trade accounts receivable of $6.5 million, an increase in deferred revenue of $1.9 million, and an increase in trade accounts payable of $1.8 million.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2026 was $20.1 million driven by purchases of marketable securities of $156.9 million and purchases of fixed assets and intangibles of approximately $4.4 million, partially offset by proceeds from maturities of marketable securities of $141.3 million.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2026 was $21.9 million driven by purchases of marketable securities of $210.5 million and purchases of fixed assets and intangibles of approximately $6.0 million, partially offset by proceeds from maturities of marketable securities of $194.6 million.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2025 was $7.0 million driven by purchase of marketable securities of $141.4 million, and purchase of property and equipment of approximately $2.5 million, partially offset by proceeds from maturities of marketable securities of $136.9 million.

Current wording

Net cash provided by investing activities during the nine months ended September 30, 2025 was $12.0 million driven by proceeds from maturities of marketable securities of $216.1 million, proceeds from sale of property and equipment of $0.1 million, partially offset by the purchase of marketable securities of $201.0 million, and purchase of property and equipment of approximately $3.2 million.

Previous wording

Net cash provided by financing activities during the six months ended June 30, 2026 was $3.2 million, primarily driven by the proceeds from a line of credit of $5.1 million, partially offset by the repayment of loans of $2.5 million.

Current wording

Net cash provided by financing activities during the nine months ended September 30, 2026 was $2.6 million, primarily driven by the proceeds from a line of credit of $6.2 million and proceeds from issuance of common stock under employee stock plans of $1.1 million, partially offset by the repayment of loans of $4.8 million.

Previous wording

Net cash used in financing activities during the six months ended June 30, 2025 was $14.1 million, primarily driven by payments for the repurchase of shares of $15.1 million and the repayment of loans of $1.7 million, partially offset by the proceeds from a line of credit of $2.1 million.

Current wording

Net cash used in financing activities during the nine months ended September 30, 2025 was $12.2 million, primarily driven by payments for the repurchase of shares of $15.1 million and the repayment of loans of $1.8 million, partially offset by the proceeds from a line of credit of $4.2 million.

Previous wording

During the six months ended June 30, 2026, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 26, 2026.

Current wording

During the nine months ended September 30, 2026, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 26, 2026.