Hinge Health, Inc.

Previous wording

Hinge Health leverages software, including AI, to automate care for joint and muscle health and migraine, delivering an outstanding member experience, improved member outcomes, and cost reductions for our clients. We have designed our platform to address a broad spectrum of MSK and MSK-related care —from acute injury, to chronic pain, to post-surgical rehabilitation. Members receive personalized and automated care through our AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by our AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches. Our platform can help to ease members’ pain, improve their function, and reduce their need for surgeries, all while driving health equity by allowing members to engage in their exercise therapy sessions from anywhere and embrace movement as a way of life.

Current wording

Hinge Health leverages software, including AI, to automate care for joint and muscle health, migraine, and gastrointestinal (GI) conditions, delivering an outstanding member experience, improved member outcomes, and cost reductions for our clients. We have designed our platform to address a broad spectrum of care—from acute injury, to chronic pain, to post-surgical rehabilitation. Members receive personalized and automated care through our AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by our AI-supported care team of licensed physical therapists, physicians, registered dietitians, and board-certified health coaches. Our platform can help to ease members’ pain, improve their function, and reduce their need for surgeries, all while driving health equity by allowing members to engage in their care sessions from anywhere.

Previous wording

We believe that we grow efficiently because of our scalable, repeatable go-to-market model. We sell through our direct sales force and our partners. Once we contract with a client, we are most often the sole digital MSK or migraine care provider offered to their contracted lives for an average contract term of three years. For the term of each contract, we are able to enroll, engage, and re-engage the client’s eligible lives, driving a recurring, repeatable revenue model. As of June 30, 2026, we had over 60 partners. Our partners include the five largest national health plans by self-insured lives, and the top three PBMs by market share.

Current wording

We believe that we grow efficiently because of our scalable, repeatable go-to-market model. We sell through our direct sales force and our partners. Once we contract with a client, we are most often the sole digital MSK, migraine or GI care provider offered to their contracted lives for an average contract term of three years. For the term of each contract, we are able to enroll, engage, and re-engage the client’s eligible lives, driving a recurring, repeatable revenue model. As of September 30, 2026, we had over 60 partners. Our partners include the five largest national health plans by self-insured lives, and the top three PBMs by market share.

Previous wording

Our software-led, AI-powered delivery model not only aims to provide a better experience for our members and a less expensive alternative for our clients, but also allows us to innovate and continuously improve our platform. Our AI-powered motion tracking technology, TrueMotion, allows us to deliver highly scalable care remotely and reduce the human hours associated with traditional physical therapy. According to our estimates based on data from 2025, our platform reduced the number of human care team hours associated with traditional physical therapy by approximately 97%. We have done this while improving our high member satisfaction over time. We are a research-led organization and routinely expand our platform with new programs, capabilities, and features. Over the last four years, we launched new programs to address six additional affected areas; launched Enso to deliver a non-addictive, non-invasive alternative for pain relief; developed HingeConnect for real-time targeted care support and external provider coordination; and integrated TrueMotion, our proprietary AI-powered motion tracking technology, to replace wearable sensors for our members. In 2022, we launched women’s pelvic health, a specialized care program within our chronic program, and, in 2023, we launched a fall prevention program for eligible lives in our Medicare Advantage population. In 2025, we launched our high-performance in-person provider network for care, HingeSelect, which allows us to now provide members with end-to-end care while further reducing costs for members, employers, and health plans. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members.

Current wording

Our software-led, AI-powered delivery model not only aims to provide a better experience for our members and a less expensive alternative for our clients, but also allows us to innovate and continuously improve our platform. Our AI-powered motion tracking technology, TrueMotion, allows us to deliver highly scalable care remotely and reduce the human hours associated with traditional physical therapy. According to our estimates based on data from 2025, our platform reduced the number of human care team hours associated with traditional physical therapy by approximately 97%. We have done this while improving our high member satisfaction over time. We are a research-led organization and routinely expand our platform with new programs, capabilities, and features. Over the last four years, we launched launched Enso to deliver a non-addictive, non-invasive alternative for pain relief; developed HingeConnect for real-time targeted care support and external provider coordination; and integrated TrueMotion, our proprietary AI-powered motion tracking technology, to replace wearable sensors for our members. In 2022, we launched women’s pelvic health, a specialized care program within our chronic program, and, in 2023, we launched a fall prevention program for eligible lives in our Medicare Advantage population. In 2025, we launched our high-performance in-person provider network for care, HingeSelect, which allows us to now provide members with end-to-end care while further reducing costs for members, employers, and health plans. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members. In August 2026, we acquired Cylinder Health, Inc. (“Cylinder”), a virtual-first digestive healthcare company, and we expect to launch an integrated Gastrointestinal Care Program in 2027.

Previous wording

We have rapidly grown our client base, expanding to 2,929 clients as of June 30, 2026 compared to 2,359 clients as of June 30, 2025. This expansion has given us access to an increased number of contracted lives, which was 25 million as of December 31, 2025. There are two ways we increase our contracted lives: through new client additions and through accessing additional contracted lives within a current client.

Current wording

We have rapidly grown our client base, expanding to 3,270 clients as of September 30, 2026 compared to 2,560 clients as of September 30, 2025. This expansion has given us access to an increased number of contracted lives, which was 25 million as of December 31, 2025. There are two ways we increase our contracted lives: through new client additions and through accessing additional contracted lives within a current client.

Previous wording

Depending on a client’s needs, we have the ability to contract directly or through one of our many partners. Similarly, we are able to invoice a client directly or submit via claims through a client’s health plan. If a client chooses to pay via claims through a health plan, the cost typically comes directly out of their medical budget for the year and is embedded in their medical costs, rather than a separate discretionary budget. Allocation of the spend on Hinge Health to the client’s existing healthcare budget enables faster implementation as it avoids a potentially lengthy approval process. Our agreements with partners help us simplify contracting and implementation with clients. In the first half of 2026 and in 2025, the vast majority of our contracts were completed via our partners, negating the need for many clients to contract directly with us since many clients can leverage existing contracts through our partners. This is a significant strategic advantage for us as it enables implementation and launch of our platform as quickly as a few weeks after entering into a contract. As a result, most implementations are completed in a 40-100 day period.

Current wording

Depending on a client’s needs, we have the ability to contract directly or through one of our many partners. Similarly, we are able to invoice a client directly or submit via claims through a client’s health plan. If a client chooses to pay via claims through a health plan, the cost typically comes directly out of their medical budget for the year and is embedded in their medical costs, rather than a separate discretionary budget. Allocation of the spend on Hinge Health to the client’s existing healthcare budget enables faster implementation as it avoids a potentially lengthy approval process. Our agreements with partners help us simplify contracting and implementation with clients. In the first nine months of 2026 and in 2025, the vast majority of our contracts were completed via our partners, negating the need for many clients to contract directly with us since many clients can leverage existing contracts through our partners. This is a significant strategic advantage for us as it enables implementation and launch of our platform as quickly as a few weeks after entering into a contract. As a result, most implementations are completed in a 40-100 day period.

Previous wording

Once our platform is launched, clients only pay for the members that engage with our programs. We typically provide various performance guarantees to our clients that may include engagement thresholds, member reported outcomes, and return on investment, where we put a portion of our fees at risk. We have historically paid an immaterial amount related to these performance guarantees. Upon onboarding, a member’s paid subscription is for one year. To increase awareness within our clients’ employee bases, we have an enrollment marketing team that engages with our partners and our clients’ human resources benefits team in targeted marketing campaigns to encourage eligible lives who would benefit from our platform to enroll.

Current wording

Once our platform is launched, clients only pay for the members that engage with our programs. We typically provide various performance guarantees to our clients that may include engagement thresholds, member reported outcomes, and return on investment, where we put a portion of our fees at risk. We have historically paid an immaterial amount related to these performance guarantees. Upon onboarding, a member’s paid subscription is typically for one year. To increase awareness within our clients’ employee bases, we have an enrollment marketing team that engages with our partners and our clients’ human resources benefits team in targeted marketing campaigns to encourage eligible lives who would benefit from our platform to enroll.

Previous wording

Retaining our existing clients is also integral to our success. Our software-led, AI-powered delivery model aims to provide a better experience for our members and a less expensive alternative for our clients. Once we contract with a client, we are typically the sole digital MSK or migraine care provider to their contracted lives for an average contract term of three years. Our 12-month client retention rate was 97% as of December 31, 2025.

Current wording

Retaining our existing clients is also integral to our success. Our software-led, AI-powered delivery model aims to provide a better experience for our members and a less expensive alternative for our clients. Once we contract with a client, we are typically the sole digital MSK, migraine or GI care provider to their contracted lives for an average contract term of three years. Our 12-month client retention rate was 97% as of December 31, 2025.

Previous wording

We are committed to continuous innovation at Hinge Health. We believe the market for automating care is still in its early stages and intend to continue investing for long-term growth. We enable positive member outcomes and proven cost reductions by pairing AI-powered motion tracking technology and wearable pain relief and have continually driven innovations in automating care since 2014.

Current wording

We are committed to continuous innovation at Hinge Health. We believe the market for automating care is still in its early stages and intend to continue investing for long-term growth. We enable positive member outcomes and proven cost reductions by pairing an AI-powered care model and wearable devices have continually driven innovations in automating care since 2014.

Previous wording

These innovations include TrueMotion, our proprietary AI-powered motion tracking technology, Enso, our FDA-cleared, wearable device for lasting pain relief, and HingeConnect, our proprietary AI-driven database for real-time care interventions and external provider coordination. We also launched specialized care for women’s pelvic health and a fall prevention program to help adults aged 65 and older improve their physical abilities. In 2025, we launched HingeSelect, our high performance in-person provider network for care. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members. All of our programs are available for use from a single application, with members having the ability to treat multiple indications at once.

Current wording

These innovations include TrueMotion, our proprietary AI-powered motion tracking technology, Enso, our FDA-cleared, wearable device for lasting pain relief, and HingeConnect, our proprietary AI-driven database for real-time care interventions and external provider coordination. We also offer specialized care for women’s pelvic health and a fall prevention program to help adults aged 65 and older improve their physical abilities. In 2025, we launched HingeSelect, our high performance in-person provider network for care. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members. All of our programs are available for use from a single application, with members having the ability to treat multiple indications at once.

Previous wording

On August 4, 2026, we announced that we entered into a definitive agreement to acquire Cylinder Health, Inc. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026. The acquisition will combine Cylinder Health’s clinical expertise and existing market footprint with Hinge Health’s AI-powered care model and technology platform to deliver support in a single app with an integrated Gastrointestinal Care Program, expected to launch in 2027.

Current wording

On August 31, 2026, we acquired Cylinder Health, Inc. ("Cylinder"). The acquisition is intended to combine Cylinder's clinical expertise and existing market footprint with Hinge Health’s AI-powered care model and technology platform to deliver support in a single app with an integrated Gastrointestinal Care Program, expected to launch in 2027.

Previous wording

Given our typical sales cycle, we experience seasonality in our business that has historically resulted in higher calculated billings and related costs during certain periods. A majority of clients enter contracts with us in the second half of each calendar year, in line with the typical employee benefit enrollment period. Most of these clients are launched in the first half of the following calendar year. While some clients choose to sign and launch within the same year, these clients represent a much smaller percentage of our clients. We believe that any improvements in the speed at which we can sign and launch new clients can increase our revenue in a given year. Through strategic partnerships with health plans, PBMs, TPAs, and other ecosystem entities, we have streamlined our implementation process to enable activation in a 40–100 day period compared to what we believe is a typically much longer implementation period in healthcare.

Current wording

Given our typical sales cycle, we experience seasonality in our business that has historically resulted in higher calculated billings and related costs during certain periods. A majority of clients enter contracts with us in the second half of each calendar year, in line with the typical employee benefit enrollment period. Most of these clients are launched in the first half of the following calendar year. While some clients choose to sign and launch within the same year, these clients represent a much smaller percentage of our clients. Any improvements in the speed at which we can sign and launch new clients can increase our revenue in a given year. Through strategic partnerships with health plans, PBMs, TPAs, and other ecosystem entities, we have streamlined our implementation process to enable activation in a 40–100 day period compared to what we believe is a typically much longer implementation period in healthcare.

Previous wording

Provision for (benefit from) income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions and certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.

Current wording

Provision for (benefit from) income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions and certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance against our U.S. federal and state deferred tax assets, except to the extent supported by reversals of deferred tax liabilities associated with acquired intangible assets. After applying the valuation allowance, we report a net deferred tax liability.

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

Revenue for the three months ended June 30, 2026 increased by $73.7 million, or 53%, compared to the three months ended June 30, 2025. Revenue for the six months ended June 30, 2026 increased by $132.2 million, or 50%, compared to the six months ended June 30, 2025. The increases were primarily due to revenue growth from existing clients. Due to the timing of our sales cycle, revenue from new clients contracted in a given year is largely recognized in the following year. As such, the majority of our revenue growth during the three and six months ended June 30, 2026 came from existing clients that were contracted in 2025 or prior. The increase within existing clients was the result of retaining members within, and adding more members to, our existing member base.

Current wording

Revenue for the three months ended September 30, 2026 increased by $80.8 million, or 52%, compared to the three months ended September 30, 2025. Revenue for the nine months ended September 30, 2026 increased by $213.0 million, or 51%, compared to the nine months ended September 30, 2025. The increases were primarily due to revenue growth from existing clients. Due to the timing of our sales cycle, revenue from new clients contracted in a given year is largely recognized in the following year. As such, the majority of our revenue growth during the three and nine months ended September 30, 2026 came from existing clients that were contracted in 2025 or prior. The increase within existing clients was the result of retaining members within, and adding more members to, our existing member base.

Previous wording

Cost of revenue for the six months ended June 30, 2026 decreased by $8.0 million, or 12%, compared to the six months ended June 30, 2025. The decrease was due to a decrease of $14.5 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs achieved in the second quarter of 2025 in connection with the IPO, $1.9 million in personnel-related costs and $0.8 million in employer payroll tax expense related to stock-based compensation expense, partially offset by an increase of $6.6 million in inventory costs, net of a tariff refund of $1.7 million, and $2.4 million in hosting costs.

Current wording

Cost of revenue for the nine months ended September 30, 2026 decreased by $5.4 million, or 6%, compared to the nine months ended September 30, 2025. The decrease was due to a decrease of $14.9 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs achieved in the second quarter of 2025 in connection with the IPO, a decrease of $3.3 million in personnel-related costs, and a decrease of $0.7 million in employer payroll tax expense related to stock-based compensation expense. The decrease was partially offset by an increase of $10.0 million in inventory costs, net of a tariff refund of $1.7 million, an increase of $2.8 million in hosting costs, and an increase of $0.5 million in amortization of intangible assets.

Previous wording

Gross margin for the three months ended June 30, 2026 increased by 16 percentage points compared to the three months ended June 30, 2025. Gross margin for the six months ended June 30, 2026 increased by 11 percentage points compared to the six months ended June 30, 2025. The increases were primarily due to a decrease in stock-based compensation expense and an increase in efficiencies related to our care team operations.

Current wording

Gross margin for the three months ended September 30, 2026 increased by 5 percentage points compared to the three months ended September 30, 2025. Gross margin for the nine months ended September 30, 2026 increased by 8 percentage points compared to the nine months ended September 30, 2025. The increases were primarily due to an increase in efficiencies related to our care team operations during the three and nine months ended September 30, 2026 and decreases in stock-based compensation expense during the nine months ended September 30, 2026.

Previous wording

Research and development expenses for the six months ended June 30, 2026 decreased by $239.1 million, or 79%, compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease of $238.3 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO. In addition, there was a decrease of $5.8 million in employer payroll tax expense related to stock-based compensation expense. This decrease was partially offset by an increase in information technology costs of $2.8 million and personnel-related costs of $1.1 million.

Current wording

Research and development expenses for the nine months ended September 30, 2026 decreased by $233.5 million, or 70%, compared to the nine months ended September 30, 2025. The decrease was primarily due to a decrease of $239.0 million in stock-based compensation expense, which related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO. In addition, there was a decrease of $4.3 million in employer payroll tax expense related to stock-based compensation expense. The decrease was partially offset by an increase of $4.6 million in information technology costs, $2.9 million in professional service costs and $1.5 million in acquisition-related costs.

Previous wording

Sales and marketing expenses for the three months ended June 30, 2026 decreased by $65.8 million, or 45%, compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease of $89.1 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $2.3 million. These decreases in costs were offset by an increase of $13.3 million in marketing and promotion costs, $9.5 million in commissions and $3.9 million in personnel-related costs.

Current wording

Sales and marketing expenses for the nine months ended September 30, 2026 decreased by $22.0 million, or 9%, compared to the nine months ended September 30, 2025. The decrease was primarily due to a decrease of $85.0 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and $1.4 million in employer payroll tax expense related to stock-based compensation expense. The decrease was partially offset by an increase of $25.2 million in commissions, $25.2 million in marketing and promotion costs, $9.9 million in personnel-related costs, $1.5 million in professional service costs, $1.1 million in hosting costs and $0.6 million in amortization of intangible assets.

Previous wording

General and administrative expenses for the three months ended June 30, 2026 decreased by $223.2 million, or 89%, compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease of $225.8 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $3.4 million. These decreases in costs were offset by an increase in legal and other costs of $4.5 million to support public company compliance activities and $0.8 million in information technology costs.

Current wording

General and administrative expenses for the three months ended September 30, 2026 decreased by $5.6 million, or 15%, compared to the three months ended September 30, 2025. The decrease was primarily due to a decrease of $14.2 million in stock-based compensation expense. The decrease was partially offset by an increase of $2.2 million in legal and other costs to support public company compliance activities, $2.1 million in acquisition-related costs, $1.5 million in personnel-related costs, $1.3 million in employer payroll tax expense related to stock-based compensation expense, and $0.6 million in information technology costs.

Previous wording

General and administrative expenses for the six months ended June 30, 2026 decreased by $217.1 million, or 81%, compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease of $222.4 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $3.1 million. These decreases in costs were offset by an increase in legal and other costs of $5.5 million to support public company compliance activities, $1.6 million in information technology costs and $1.3 million in personnel-related costs.

Current wording

General and administrative expenses for the nine months ended September 30, 2026 decreased by $222.6 million, or 73%, compared to the nine months ended September 30, 2025. The decrease was primarily due to a decrease of $236.6 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO. The decrease was partially offset by an increase of $7.5 million in legal and other costs to support public company compliance activities, $2.8 million in personnel-related costs, $2.2 million in information technology costs, and $1.9 million in acquisition-related costs.

Previous wording

Other income, net for the three months ended June 30, 2026 decreased $0.7 million, compared to the three months ended June 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period.

Current wording

Other income, net for the three months ended September 30, 2026 decreased $1.1 million, compared to the three months ended September 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period.

Previous wording

Other income, net for the six months ended June 30, 2026 decreased $1.8 million, compared to the six months ended June 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period.

Current wording

Other income, net for the nine months ended September 30, 2026 decreased $2.9 million, compared to the nine months ended September 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period.

Previous wording

In addition to our results prepared in accordance with GAAP, we believe the following non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP income from operations and operating margin, and free cash flow and free cash flow margin included in this Quarterly Report, provide users of our financial information with additional useful information in evaluating our performance and liquidity and allows them to more readily compare our results across periods without the effect of non-cash and other items as detailed below. Additionally, our management and board of directors use our non-GAAP financial measures to evaluate our performance and liquidity, identify trends and make strategic decisions.

Current wording

In addition to our results prepared in accordance with GAAP, we believe the following non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP income from operations and operating margin, and free cash flow and free cash flow margin included in this Quarterly Report, provide users of our financial information with additional useful information in evaluating our performance and liquidity and allow them to more readily compare our results across periods without the effect of non-cash and other items as detailed below. Additionally, our management and board of directors use our non-GAAP financial measures to evaluate our performance and liquidity, identify trends and make strategic decisions.

Previous wording

We define non-GAAP gross profit as gross profit presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including stock-based compensation expense, employer payroll tax expense related to stock-based compensation, and amortization of intangible assets. We define non-GAAP gross margin as non-GAAP gross profit divided by revenue.

Current wording

We define non-GAAP gross profit as gross profit presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets and acquisition-related expenses. We define non-GAAP gross margin as non-GAAP gross profit divided by revenue.

Previous wording

The following table provides a reconciliation of non-GAAP income from operations and operating margin to income from operations (loss) and operating margin, the most directly comparable financial measures presented in accordance with GAAP:

Current wording

The following table provides a reconciliation of non-GAAP income from operations and operating margin to income (loss) from operations and operating margin, the most directly comparable financial measures presented in accordance with GAAP:

Previous wording

As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $286.2 million, and marketable securities of $187.9 million. Our cash and cash equivalents consist of cash in bank accounts, money market accounts, and other highly liquid investments with original maturities of 90 days or less from the date of purchase. Our marketable securities consist of U.S. treasury securities, investment-grade corporate bonds, government agency securities, and commercial paper. Our primary uses of cash are personnel-related, inventory and selling, marketing and related costs.

Current wording

As of September 30, 2026, our principal sources of liquidity were cash and cash equivalents of $211.6 million, and marketable securities of $142.6 million. Our cash and cash equivalents consist of cash in bank accounts, money market accounts, and other highly liquid investments with original maturities of 90 days or less from the date of purchase. Our marketable securities consist of U.S. treasury securities, investment-grade corporate bonds, government agency securities, and commercial paper. Our primary uses of cash are personnel-related, including tax withholding payments on the net settlement of equity awards, inventory and selling, marketing and related costs, as well as repurchases of our Class A common stock and acquisitions.

Previous wording

Net cash provided by operating activities was $144.5 million for the six months ended June 30, 2026. This primarily related to our net income of $78.8 million adjusted for non-cash charges of $72.5 million and offset by net cash outflows of $6.8 million due to changes in operating assets and liabilities. The change in operating assets and liabilities was driven by an increase in accounts receivable of $61.0 million, an increase in deferred commissions of $49.1 million, an increase in prepaid expense and other current assets of $11.6 million, a decrease in operating lease liabilities of $2.2 million, and an increase in inventory of $1.1 million, partially offset by an increase in deferred revenue of $115.6 million, and an increase in accounts payable and accrued liabilities of $2.6 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors.

Current wording

Net cash provided by operating activities was $259.1 million for the nine months ended September 30, 2026. This primarily related to our net income of $136.2 million adjusted for non-cash charges of $115.3 million and offset by net cash inflows of $7.6 million due to changes in operating assets and liabilities. The change in operating assets and liabilities was driven by an increase in deferred revenue of $156.7 million and an increase in accounts payable and accrued liabilities of $12.6 million, partially offset by an increase in accounts receivable of $79.4 million, an increase in deferred commissions of $74.2 million, an increase in inventory of $3.3 million, a decrease in operating lease liabilities of $3.1 million and an increase in prepaid expense and other current assets of $1.8 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors.

Previous wording

Net cash provided by operating activities was $25.1 million for the six months ended June 30, 2025. This primarily related to our net loss of $558.5 million and net cash outflows of $34.7 million due to changes in operating assets and liabilities, adjusted for non-cash charges of $618.4 million. The change in operating assets and liabilities was driven by an increase in accounts receivable of $59.6 million, an increase in deferred commissions of $27.7 million, an increase in prepaid expenses and other current assets of $6.6 million, and an increase in inventory of $3.1 million, partially offset by an increase in deferred revenue of $57.5 million and an increase in accounts payable and accrued liabilities of $7.0 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors.

Current wording

Net cash provided by operating activities was $107.5 million for the nine months ended September 30, 2025. This primarily related to our net loss of $560.4 million and net cash outflows of $0.7 million due to changes in operating assets and liabilities, adjusted for non-cash charges of $668.6 million. The change in operating assets and liabilities was driven by an increase in accounts receivable of $47.6 million, an increase in deferred commissions of $38.3 million, an increase in other assets of $8.1 million, an increase in prepaid expenses and other current assets of $8.0 million, and an increase in inventory of $2.9 million, partially offset by an increase in deferred revenue of $82.1 million and an increase in accounts payable and accrued liabilities of $25.0 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors.

Previous wording

Net cash provided by investing activities was $76.7 million for the six months ended June 30, 2026, driven by net maturities of marketable securities of $80.1 million, partially offset by $3.4 million used for purchases of property, equipment and capitalized internal-use software.

Current wording

Net cash provided by investing activities was $12.5 million for the nine months ended September 30, 2026, driven by net maturities of marketable securities of $124.2 million, partially offset by cash used for the acquisition of Cylinder, net of cash acquired of $97.4 million, cash paid for an asset acquisition of $9.0 million, and purchases of property, equipment and capitalized internal-use software of $5.3 million.

Previous wording

Net cash used in investing activities was $17.3 million for the six months ended June 30, 2025, driven by net purchases of marketable securities of $10.7 million, $4.0 million used to purchase a business and $2.6 million used for purchases of property, equipment and capitalized internal-use software.

Current wording

Net cash used in investing activities was $76.1 million for the nine months ended September 30, 2025, driven by net purchases of marketable securities of $68.4 million, $4.0 million used to purchase a business and $3.7 million used for purchases of property, equipment and capitalized internal-use software.

Previous wording

Net cash used in financing activities was $143.3 million for the six months ended June 30, 2026, consisting of $131.5 million related to the share repurchase program described below, and $19.8 million used for employee taxes related to the net settlement of RSUs and PRSUs, partially offset by $7.3 million in proceeds from our employee share purchase plan and $0.7 million in proceeds from the exercise of employee stock options.

Current wording

Net cash used in financing activities was $265.6 million for the nine months ended September 30, 2026, consisting of $157.4 million related to the share repurchase program described below and $116.4 million used for employee taxes related to the net settlement of RSUs and PRSUs, partially offset by $7.3 million in proceeds from our employee share purchase plan and $0.9 million in proceeds from the exercise of employee stock options.

Previous wording

Net cash used in financing activities was $71.5 million for the six months ended June 30, 2025, consisting of $272.3 million used for employee taxes related to the net settlement of RSUs and PRSUs, $50.0 million related to the repurchase of Series E preferred stock and payments of deferred offering costs of $10.1 million, partially offset by proceeds of $255.7 million from the issuance of Class A common stock in connection with the IPO, net of issuance costs and $4.9 million in proceeds related to the repayment of non-recourse loans.

Current wording

Net cash used in financing activities was $70.9 million for the nine months ended September 30, 2025, consisting of $272.3 million used for employee taxes related to the net settlement of RSUs and PRSUs, $50.0 million related to the repurchase of Series E preferred stock and payments of deferred offering costs of $10.1 million, partially offset by proceeds of $255.7 million from the issuance of common stock in connection with the IPO, net of issuance costs and $4.9 million in proceeds related to the repayment of non-recourse loans.

Previous wording

On November 10, 2025, our board of directors approved a share repurchase program with authorization to purchase up to $250 million of our Class A common stock. As of July 29, 2026, we had repurchased an aggregate of $196.5 million of our Class A common stock under the program. On July 29, 2026, our board of directors approved an increase to the program, resulting in $300.0 million of our Class A common stock available for future repurchase, for a total aggregate amount authorized under the program of $496.5 million as of such date.

Current wording

On November 10, 2025, our board of directors approved a share repurchase program with authorization to purchase up to $250 million of our Class A common stock. On July 29, 2026, our board of directors approved an increase to the program, resulting in $300.0 million of our Class A common stock available for future repurchase as of such date, for a total aggregate amount authorized under the program of $496.5 million as of such date. As of September 30, 2026, we had repurchased an aggregate of $222.4 million of our Class A common stock under the program, and $274.1 million remained available for future repurchase.

Previous wording

We enter into various non-cancellable lease agreements for certain office space in the normal course of business. Our non-cancellable lease obligations as of June 30, 2026 were $5.9 million, of which $4.3 million is payable within 12 months.

Current wording

We enter into various non-cancellable lease agreements for certain office space in the normal course of business. Our non-cancellable lease obligations as of September 30, 2026 were $69.4 million, of which $5.0 million is payable within 12 months.

Previous wording

We enter into various non-cancellable agreements that are enforceable and legally binding, including the purchase of cloud hosting arrangements. Our noncancellable obligations as of June 30, 2026 were composed of $6.9 million for the remainder of 2026, $9.6 million for 2027, $9.8 million for 2028 and $2.9 million for 2029.

Current wording

We enter into various non-cancellable agreements that are enforceable and legally binding, including the purchase of cloud hosting arrangements. Our noncancellable obligations as of September 30, 2026 were composed of $4.5 million for the remainder of 2026, $11.5 million for 2027, $10.2 million for 2028, and $2.9 million for 2029.

Previous wording

There have been no material changes to our critical accounting policies and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

There have been no material changes to our critical accounting policies, and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025, except for the Business Combination accounting policy discussed in Note 2 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.