ServiceTitan, Inc.

Previous wording

Our software provides an end-to-end, cloud-based software platform that connects, manages, and automates a wide array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. Tradespeople spend their days interfacing with the ServiceTitan platform across what we believe to be the five most business-critical functions, or the “core centers of gravity,” inside a trades business: CRM (customer relationship management, including sales enablement, marketing automation and customer service), FSM (field service management, including scheduling and dispatching), ERP (enterprise resource planning, including inventory), HCM (human capital management, including compensation and payroll integration) and FinTech (including payments and third-party consumer financing). By offering interoperable capabilities in all five centers of gravity, we continuously capture comprehensive data insights across key workflows in a trades business.

Current wording

Our software provides an end-to-end, AI-powered cloud-based software platform that connects, manages, and automates a wide array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. Tradespeople spend their days interfacing with the ServiceTitan platform across what we believe to be the five most business-critical functions, or the “core centers of gravity,” inside a trades business: CRM (customer relationship management, including sales enablement, marketing automation and customer service), FSM (field service management, including scheduling and dispatching), ERP (enterprise resource planning, including inventory), HCM (human capital management, including compensation and payroll integration) and FinTech (including payments and third-party consumer financing). By offering interoperable capabilities in all five centers of gravity, we continuously capture comprehensive data insights across key workflows in a trades business.

Previous wording

Our close customer proximity and deep connection with the industry enable us to make evidence-based recommendations that can improve our customers’ business outcomes by identifying and replicating what works and fixing what does not. Our insights are augmented by the vast amounts of structured and unstructured data that we synthesize into best practices. These insights are then delivered across automated workflows, many of which we enhance with artificial intelligence (“AI”), to address the distinct vertical-specific needs of the trades. In addition, in fiscal 2026, we began a pilot of Max, which packages our most advanced functionality and AI features with expert guidance to unlock AI automation.

Current wording

Our close customer proximity and deep connection with the industry enable us to make evidence-based recommendations that can improve our customers’ business outcomes by identifying and replicating what works and fixing what does not. Our insights are augmented by the vast amounts of structured and unstructured data that we synthesize into best practices. These insights are then delivered across automated workflows, many of which we enhance with artificial intelligence (“AI”), to address the distinct vertical-specific needs of the trades. In addition, in fiscal 2026, we introduced Max, which packages our most advanced functionality and AI features with expert guidance to unlock end-to-end AI automation.

Previous wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers through our platform, and adopt more add-on products. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering considerable return on investment (“ROI”), in our products. For the three months ended April 30, 2026 and 2025, we processed $21.7 billion and $17.7 billion of GTV, respectively.

Current wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers through our platform, and adopt more add-on products, including Max. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering considerable return on investment (“ROI”) in our products. For the three and six months ended July 31, 2026, we processed $26.8 billion and $48.5 billion of GTV, respectively, and for the three and six months ended July 31, 2025, we processed $22.9 billion and $40.7 billion of GTV, respectively.

Previous wording

We serve customers ranging from family-owned businesses with a few employees to large enterprises with a national footprint, some of which are an aggregation of multiple customers through a franchise network or other common buying partners. We define a customer as a parent organization, which may have multiple locations, brands or subsidiaries, that has been billed in the prior three months, and of those customers we define “Active Customers” as customers with over $10,000 of annualized billings. As of January 31, 2026, we had approximately 10,800 Active Customers representing over 97% of our annualized billings for fiscal 2026. As of April 30, 2026, we have surpassed 2,000 total customers with annualized billings greater than $100,000, which represents more than 60% of our total annualized billings as of April 30, 2026.

Current wording

We serve customers ranging from family-owned businesses with a few employees to large enterprises with a national footprint, some of which are an aggregation of multiple customers through a franchise network or other common buying partners. We define a customer as a parent organization, which may have multiple locations, brands or subsidiaries, that has been billed in the prior three months, and of those customers we define “Active Customers” as customers with over $10,000 of annualized billings. As of January 31, 2026, we had approximately 10,800 Active Customers representing over 97% of our annualized billings for fiscal 2026. In April 2026, we surpassed 2,000 total customers with annualized billings greater than $100,000, which represented more than 60% of our total annualized billings as of April 30, 2026.

Previous wording

Increase GTV By Entering New Trades and Markets. ServiceTitan began by serving a single trade—plumbing—and focusing on residential homes, and we now serve many trades that serve all sites: homes, businesses and even new construction. As we have penetrated new trades over time, we have significantly expanded our potential customer reach, unlocking new markets to drive future customer growth. We plan to continue to innovate and expand into new trade verticals through our playbook of harnessing common features of the trades industry, while also identifying and building features specific to each new trade vertical. It takes significant time and research and development to identify new trade verticals to enter and build out functionalities on top of our common products, as well as investment in sales and marketing resources, to ensure we can successfully go to market with an end-to-end offering in such new verticals. We also believe that there is a significant opportunity to strategically expand the usage of our platform outside of the United States and Canada over time based on the current needs of different regions.

Current wording

Increase GTV By Entering New Trades and Markets. ServiceTitan began by serving a single trade—plumbing—and focusing on residential homes, and we now serve many trades that serve all sites: homes, businesses and even new construction. As we have penetrated new trades over time, we have significantly expanded our potential customer reach, unlocking new markets to drive future customer growth. We plan to continue to innovate and expand into new trade verticals in the long-term through our playbook of harnessing common features of the trades industry, while also identifying and building features specific to each new trade vertical. It takes significant time, management attention, and research and development to identify new trade verticals to enter and build out functionalities on top of our common products, as well as investment in sales and marketing resources, to ensure we can successfully go to market with an end-to-end offering in such new verticals. With the introduction of AI technology generally and our Max offering specifically, we believe we have an opportunity to drive significant additional value for our customers. As a result, to enable increased investments in and attention on Max, during the quarter ended July 31, 2026, we elected to tighten our focus on existing commercial trades — like mechanical, electrical, plumbing and landscaping — and residential roofing, rather than the planned expansion of our offering to new trades within commercial or broader residential exteriors categories. We expect this focus on existing trades to allow us to execute on existing investments while also accelerating our shift towards Max and internal AI, addressing what we believe to be our most important opportunities today. We also believe that there is a significant opportunity to strategically expand the usage of our platform outside of the United States and Canada over time based on the current needs of different regions.

Previous wording

Drive More Value to Our Customers through Adoption of Add-on Products and Max. As we demonstrate the high ROI of our products to our customers, and as our customers grow and further professionalize, we are able to sell more add-on products to them and increase our share of wallet, which we measure as the portion of our customers’ GTV that we are able to earn. We efficiently expand our customer relationships over time to serve their additional needs and automate more workflows through our platform. We believe that the more our customers use our platform to power their workflows, the more value we deliver to them, and the higher revenue we can earn from them. As a result, we continue to invest in research and development to improve the functionality of our existing Core and add-on products, including our FinTech and Pro products. We also believe that the power of new AI solutions paired with the existing end-to-end nature of our platform further expands our opportunity to drive significant additional value for our customers, and increase our share of wallet, through adoption of Max. Our ability to increase adoption of our add-on products and Max will depend on customer satisfaction with our platform, competition, pricing and our ability to continuously demonstrate the value proposition of our add-on products and Max. We plan to continue investing in sales and marketing, thought leadership, industry resources and evolving our customer success teams to focus on driving additional expanded value to customers on our platform.

Current wording

Drive More Value to Our Customers through Adoption of Add-on Products and Max. As we demonstrate the high ROI of our products to our customers, and as our customers grow and further professionalize, we are able to sell more add-on products to them and increase our share of wallet, which we measure as the portion of our customers’ GTV that we are able to earn. We efficiently expand our customer relationships over time to serve their additional needs and automate more workflows through our platform. We believe that the more our customers use our platform to power their workflows, the more value we deliver to them, and the higher revenue we can earn from them. As a result, we continue to invest in research and development to improve the functionality of our existing Core and add-on products, including our FinTech and upsell products. We also believe that the power of AI solutions paired with the existing end-to-end nature of our platform further expands our opportunity to drive significant additional value for our customers, and increase our share of wallet, through adoption of Max. Our ability to increase adoption of our add-on products and Max will depend on customer satisfaction with our platform, competition, pricing and our ability to continuously demonstrate the value proposition of our add-on products and Max. We plan to continue investing in sales and marketing, thought leadership, industry resources and evolving our professional services and customer success teams to focus on the adoption of Max and driving additional expanded value to customers on our platform.

Previous wording

Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop and bundle new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added Pro, FinTech and other AI-powered products that complement our Core product. We build Pro and FinTech products as an integrated add-on to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products, particularly those powered by AI, to earn an even greater potential share of our customers’ GTV in the future. While our ingrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products will continue to require substantial time and research and development resources.

Current wording

Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop and bundle new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added upsell (including Pro, Max, and FinTech) and other AI-powered products that complement our Core product. We build upsell products as integrated add-ons to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products, particularly those powered by AI, to earn an even greater potential share of our customers’ GTV in the future. While our ingrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products, particularly those powered by AI, will continue to require substantial time and research and development resources.

Previous wording

We principally generate platform revenue through (i) subscription revenue generated from access to and use of our platform, including subscriptions to our Core and certain Pro products, and (ii) usage-based revenue generated from the transactions using our FinTech solutions and usage of certain Pro products and other usage-based services. Our customer contracts are generally based on the number of users, mix of products, number of end customers and the amount of GTV.

Current wording

We principally generate platform revenue through (i) subscription revenue generated from access to and use of our platform, including subscriptions to our Core and certain upsell products, and (ii) usage-based revenue generated from the transactions using our FinTech solutions and usage of certain upsell products and other usage-based services. Our customer contracts are generally based on the number of users, mix of products, number of end customers and the amount of GTV.

Previous wording

We offer tiered subscription plans for our Core and Pro products with varying contract lengths. Pursuant to these subscription contracts our customers do not have the ability to take possession of our proprietary software. For new customers, we primarily enter into either annual or multi-year subscription agreements with contract terms typically ranging from 12 to 36 months; however, certain Pro product and legacy customers are on month-to-month contracts. In nearly all cases, these contracts (monthly, annual, or multi-year) are renewed automatically unless cancelled in advance. We generally bill our customers on a monthly basis in advance of services, regardless of contract term. In some cases for certain products, the customer is billed in arrears. Pricing for these subscriptions are driven by the features included in the package and are linked to the size of the customer’s business, generally based on the number of field technicians at the customer but in some cases directly tied to the number of end customers or the customer’s revenue. In this way, our success is linked to the growth of our customers, which we measure through our net dollar retention rate. Our net dollar retention rate 1 was over 110% for the three months ended April 30, 2026.

Current wording

We offer tiered subscription plans for our Core and upsell products with varying contract lengths. Pursuant to these subscription contracts our customers do not have the ability to take possession of our proprietary software. For new customers, we primarily enter into either annual or multi-year subscription agreements with contract terms typically ranging from 12 to 36 months; however, certain upsell product and legacy customers are on month-to-month contracts. In nearly all cases, these contracts (monthly, annual, or multi-year) are renewed automatically unless cancelled in advance. We generally bill our customers on a monthly basis in advance of services, regardless of contract term. In some cases for certain usage-based products, the customer is billed in arrears. Pricing for these subscriptions are driven by the features included in the package and are linked to the size of the customer’s business, generally based on the number of field technicians at the customer but in some cases directly tied to the number of end customers or the customer’s revenue. In this way, our success is linked to the growth of our customers, which we measure through our net dollar retention rate. Our net dollar retention rate 1 was over 110% for the three months ended July 31, 2026.

Previous wording

Usage-based services primarily consist of payment processing where we connect to third-party processors to allow our customers to accept payments, primarily credit and debit cards, and also includes end-customer financing solutions and other forms of payment. The third-party processor determines the eligibility of the end customer to participate in the programs, provides the payment settlement and financing options to the end customer and is responsible for the provision of the payment or financing services. We receive a fee from the third-party processors, depending on the size and type of the transaction, which we recognize net of interchange and other direct expenses which are passed onto the customer. Revenue from financing and processing payments is recognized at the time of the transaction. In addition to payment processing revenue, we have a number of Pro products that generate revenue depending on the level of usage, which we recognize monthly in arrears based on consumption. Usage revenue also includes fees we earn from third-party partners based on transactions or customer activity facilitated through our platform, which we recognize in the period in which the underlying activity occurs. In addition, usage-based revenue also includes revenue from our Virtual Agents, which is consumption-based and recognized in the period in which the underlying usage occurs.

Current wording

Usage-based services primarily consist of payment processing where we connect to third-party processors to allow our customers to accept payments, primarily credit and debit cards, and also includes end-customer financing solutions and other forms of payment. The third-party processor determines the eligibility of the end customer to participate in the programs, provides the payment settlement and financing options to the end customer and is responsible for the provision of the payment or financing services. We receive a fee from the third-party processors, depending on the size and type of the transaction, which we recognize net of interchange and other direct expenses which are passed onto the customer. Revenue from financing and processing payments is recognized at the time of the transaction. In addition to payment processing revenue, we have a number of upsell products that generate revenue depending on the level of usage, which we recognize monthly in arrears based on consumption. Usage revenue also includes fees we earn from third-party partners based on transactions or customer activity facilitated through our platform, which we recognize in the period in which the underlying activity occurs. In addition, usage-based revenue also includes revenue from our Virtual Agents, which is consumption-based and recognized in the period in which the underlying usage occurs.

Previous wording

Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services are primarily comprised of fees paid to third-party service providers associated with delivery of Pro and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.

Current wording

Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services are primarily comprised of fees paid to third-party service providers associated with delivery of upsell and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.

Previous wording

We define annualized billings for a given quarter as the annualized value of the quarterly amount invoiced for our Core and Pro products, net of reserves, and the quarterly revenue recognized for our FinTech products. Contracts for our platform solutions range from monthly to multi-year. While monthly subscribers as a group have historically maintained or increased their subscriptions over time, there is no guarantee that any particular customer on a monthly subscription will renew its subscription in any given month, and therefore the calculation of annualized billings for these monthly subscriptions may not accurately reflect revenue to be received over a 12-month period from such customers. There may be seasonal fluctuations in annualized billings as a result of heightened demand for our customers during peak times. Annualized billings should be viewed independently of, and not as a replacement for, revenue and does not represent our revenue on an annualized basis.

Current wording

We define annualized billings for a given quarter as the annualized value of the quarterly amount invoiced for our Core and upsell products, net of reserves, and the quarterly revenue recognized for our usage-based products. Contracts for our platform solutions range from monthly to multi-year. While monthly subscribers as a group have historically maintained or increased their subscriptions over time, there is no guarantee that any particular customer on a monthly subscription will renew its subscription in any given month, and therefore the calculation of annualized billings for these monthly subscriptions may not accurately reflect revenue to be received over a 12-month period from such customers. There may be seasonal fluctuations in annualized billings as a result of heightened demand for our customers during peak times. Annualized billings should be viewed independently of, and not as a replacement for, revenue and does not represent our revenue on an annualized basis.

Previous wording

Professional services and other cost of revenue consists primarily of personnel-related costs in connection with providing customer onboarding and customer implementation, live voice and chat services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. Professional services and other cost of revenue also includes amortization of certain acquired intangible assets, allocated overhead, and the cost of other ancillary hardware products and services sold to customers. Professional services and other cost of revenue historically has exceeded professional services and other revenue as we invest in providing customers with implementation and onboarding services to enhance customer success. We expect our cost of professional services and other revenue to increase in absolute dollars as the adoption of our product offerings for both new and existing customers increases.

Current wording

Professional services and other cost of revenue consists primarily of personnel-related costs in connection with providing customer onboarding and customer implementation, live voice and chat services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. Professional services and other cost of revenue also includes amortization of certain acquired intangible assets, allocated overhead, and the cost of other ancillary hardware products and services sold to customers. Professional services and other cost of revenue historically has exceeded professional services and other revenue as we invest in providing customers with implementation and onboarding services to enhance customer success. We expect our cost of professional services and other revenue to increase in absolute dollars as the adoption of our product offerings for both new and existing customers increases, including the investment in our customers transition to Max.

Previous wording

Platform revenue increased by $52.6 million, or 25%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by subscription revenue, which increased by $39.3 million, or 24%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. In addition, revenue from our usage-based products increased by $13.3 million, or 29%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Current wording

Platform revenue increased by $51.8 million, or 22%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily driven by subscription revenue, which increased by $37.6 million, or 22%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. In addition, revenue from our usage-based products increased by $14.2 million, or 24%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Previous wording

Platform cost of revenue increased by $5.5 million, or 11%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to a $2.8 million increase in the costs related to the provisioning of our platform services products and an increase of $2.3 million in personnel-related costs, driven by an increase in headcount. Platform gross margin increased to 78.7% for the three months ended April 30, 2026, compared to 75.9% for the three months ended April 30, 2025, primarily due to improved efficiencies in delivering our platform at scale.

Current wording

Platform cost of revenue increased by $8.5 million, or 16%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily due to a $6.3 million increase in the costs related to the provisioning of our platform services products and an increase of $1.2 million in personnel-related costs, driven by an increase in headcount. Platform gross margin increased to 78.7% for the three months ended July 31, 2026, compared to 77.7% for the three months ended July 31, 2025, primarily due to improved efficiencies in delivering our platform at scale.

Previous wording

Professional services and other cost of revenue increased by $2.3 million, or 13%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase was primarily due to an increase of $2.4 million in personnel-related costs driven by an increase in headcount.

Current wording

Professional services and other cost of revenue increased by $4.4 million, or 23%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily due to an increase of $4.0 million in personnel-related costs, which was driven by headcount growth and annual salary increases, and a $1.1 million increase in stock-based compensation expense.

Previous wording

Sales and marketing expense increased by $3.8 million, or 6%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase in sales and marketing expense was primarily driven by an increase of $5.2 million in personnel-related costs, which included an increase of $3.3 million driven by an increase in headcount, $1.1 million in stock-based compensation expense, and $0.6 million in sales commissions. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use.

Current wording

Sales and marketing expense increased by $7.4 million, or 11%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. The increase in sales and marketing expense was primarily driven by an increase of $5.8 million in personnel-related costs, which included an increase of $3.1 million driven by headcount growth, $1.8 million in sales commissions, and $1.0 million in stock-based compensation expense. There was an additional increase of $1.0 million in marketing and advertising costs.

Previous wording

Other income, net, was $3.9 million for the three months ended April 30, 2026, compared to other income, net, of $3.4 million for the three months ended April 30, 2025. The increase was primarily due to a $1.9 million decline in interest expense resulting from the repayment, in full, of our term loan in fiscal 2026, partially offset by a $1.2 million decrease in interest income.

Current wording

Other income, net, was $4.0 million for the three months ended July 31, 2026, compared to other income, net, of $2.9 million for the three months ended July 31, 2025. The increase was primarily due to a $1.9 million decline in interest expense resulting from the repayment, in full, of our term loan in fiscal 2026, partially offset by a $0.9 million decrease in interest income.

Previous wording

Our provision for income taxes increased by $0.7 million for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The change is primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects for the three months ended April 30, 2026.

Current wording

Our provision for income taxes increased by $1.0 million for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. The change is primarily driven by the variability in the jurisdictional mix of our income (loss) before income taxes, as well as the impacts of our U.S. valuation allowance for the three months ended July 31, 2026.

Previous wording

Professional services and other revenue increased by $0.6 million, or 7%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by a higher volume of services performed.

Current wording

Professional services and other revenue decreased by $0.6 million, or 3%, for the six months ended July 31, 2026, compared to the six months ended July 31, 2025. This decrease was primarily driven by a lower volume of billable services performed.

Previous wording

Research and development expense increased by $18.9 million, or 27%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase in research and development expense was primarily driven by an increase of $16.7 million in personnel-related costs due to increased headcount, including hiring of senior level personnel to support the engineering function as we continue to scale our team. The increase in personnel-related costs also includes an $8.4 million increase in stock-based compensation expense associated with the increased headcount. There was an additional increase of $2.5 million in technology spend as a result of our continued investment in AI. These increases were partially offset by a decrease of $1.7 million of impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use.

Current wording

Research and development expense increased by $46.5 million, or 33%, for the six months ended July 31, 2026, compared to the six months ended July 31, 2025. The increase in research and development expense was primarily driven by an increase of $37.9 million in personnel-related costs due to annual salary increases and headcount growth, including hiring of senior level personnel to support the engineering function as we continue to scale our team. The increase in personnel-related costs also includes a $20.4 million increase in stock-based compensation expense associated with the increased headcount. There was an additional increase of $6.2 million in technology spend as a result of our continued investment in and leverage of AI.

Previous wording

General and administrative expense decreased by $1.1 million, or 2%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The decrease in general and administrative expense was primarily driven by a decrease of $2.9 million of impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use. This decrease was offset by an increase of $1.6 million in third-party consulting costs related to legal, and other consulting services.

Current wording

General and administrative expense decreased by $5.6 million, or 5%, for the six months ended July 31, 2026, compared to the six months ended July 31, 2025. The decrease in general and administrative expense was primarily driven by a decrease of $3.0 million in personnel-related costs resulting from lower stock-based compensation expense associated with award forfeitures resulting from employee terminations. There was also a decrease of $2.9 million in impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use in fiscal 2025.

Previous wording

Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.

Current wording

Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.

Previous wording

Acquisition-related items. We have incurred costs related to acquisitions, including legal, third-party valuation and due diligence, insurance costs, and one-time retention bonuses for employees of acquired companies. In addition, we periodically record the change to the fair value of contingent consideration related to past acquisitions. We exclude these items when assessing our actual performance and when budgeting, planning and forecasting future periods. We believe excluding these items allows investors to make meaningful comparisons between our core results of operations and those of other peer companies.

Current wording

Acquisition-related items. From time to time, we have and may continue to incur costs related to acquisitions, including legal, third-party valuation and due diligence, insurance costs, and one-time retention bonuses for employees of acquired companies. In addition, we periodically record the change to the fair value of contingent consideration related to past acquisitions. When applicable, we exclude these items when assessing our actual performance and when budgeting, planning and forecasting future periods. We believe excluding these items allows investors to make meaningful comparisons between our core results of operations and those of other peer companies.

Previous wording

We define non-GAAP research and development expense as GAAP research and development expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, and loss on operating lease assets.

Current wording

We define non-GAAP research and development expense as GAAP research and development expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, if applicable, and loss on operating lease assets.

Previous wording

We define non-GAAP general and administrative expense as GAAP general and administrative expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, and loss on operating lease assets.

Current wording

We define non-GAAP general and administrative expense as GAAP general and administrative expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, if applicable, and loss on operating lease assets.

Previous wording

We define non-GAAP income from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, and loss on operating lease assets. Non-GAAP operating margin represents non-GAAP income from operations as a percentage of total revenue.

Current wording

We define non-GAAP income from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, if applicable, and loss on operating lease assets. Non-GAAP operating margin represents non-GAAP income from operations as a percentage of total revenue.

Previous wording

We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.

Current wording

We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, if applicable, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.

Previous wording

We define free cash flow, a non-GAAP measure, as GAAP net cash provided by operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.

Current wording

We define free cash flow, a non-GAAP measure, as GAAP net cash provided by operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors that is useful in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.

Previous wording

As of April 30, 2026, we had cash and cash equivalents of $421.5 million, which excludes restricted cash of $0.4 million, and $250.0 million available under the Amended Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Current wording

As of July 31, 2026, we had cash and cash equivalents of $479.5 million, which excludes restricted cash of $0.4 million, and $250.0 million available under the Amended Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Previous wording

In January 2023, we entered into a secured credit agreement (the “Original Credit Agreement”) with Wells Fargo Bank N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we amended the Original Credit Agreement (the “First Amendment”) to, among other things, convert our existing term loan to a new term loan balance and a revolving credit facility. On January 30, 2026, we entered into a second amendment (the “Second Amendment”) to the Original Credit Agreement (as amended by the First Amendment and the Second Amendment, the “Amended Credit Agreement”) that increased the total borrowing capacity of the revolving credit facility made available under the Amended Credit Agreement from $140.0 million to $250.0 million and extended the term of the Amended Credit Agreement through January 30, 2031.

Current wording

January 30, 2026, we entered into a second amendment (the “Second Amendment”) to the Original Credit Agreement (as amended by the First Amendment and the Second Amendment, the “Amended Credit Agreement”) that increased the total borrowing capacity of the revolving credit facility made available under the Amended Credit Agreement from $140.0 million to $250.0 million and extended the term of the Amended Credit Agreement through January 30, 2031.

Previous wording

The following table summarizes our cashflows for the periods indicated:

Current wording

The following table summarizes our cash flows for the periods indicated:

Previous wording

Net cash used in operating activities was $1.6 million for the three months ended April 30, 2026. This primarily related to our non-cash charges of $82.2 million, adjusted for our net loss of $22.8 million and net cash outflows of $61.0 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $38.9 million as annual corporate bonuses are paid in the first fiscal quarter, an increase of $9.1 million in accounts receivable, an increase of $6.8 million in contract assets, a decrease of lease liabilities of $4.2 million, and an increase of $3.8 million in deferred contract costs. These were partially offset by and increase of $3.4 million in accounts payables and other accrued expenses.

Current wording

Net cash provided by operating activities was $56.4 million for the six months ended July 31, 2026. This primarily related to our non-cash charges of $171.0 million, adjusted for our net loss of $47.7 million and net cash outflows of $66.8 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel-related expenses of $29.3 million as annual corporate bonuses are paid in the first fiscal quarter, an increase of $17.1 million in accounts receivable, an increase of $10.5 million in contract assets, a decrease of lease liabilities of $7.5 million, an increase of $6.8 million in deferred contract costs, and an increase in prepaid expenses and other current assets of $4.2 million. These were partially offset by an increase of $8.3 million in other liabilities.

Previous wording

Net cash used in operating activities was $14.6 million for the three months ended April 30, 2025. This primarily related to our net loss of $46.4 million and net cash outflows of $49.1 million from changes in our operating assets and liabilities. These were partially offset by non-cash charges of $80.9 million. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $40.6 million as annual corporate bonuses are paid in the first fiscal quarter, an increase in deferred contract costs and contract assets of $7.1 million, an increase of $5.3 million in accounts receivable, and a decrease of lease liabilities of $3.2 million. These were partially offset by an increase of $4.0 million in accounts payable and other accrued expenses, a decrease in prepaid expenses and other assets of $2.2 million and an increase in other liabilities of $1.2 million.

Current wording

Net cash provided by operating activities was $25.8 million for the six months ended July 31, 2025. This primarily related to our net loss of $78.6 million and net cash outflows of $53.5 million from changes in our operating assets and liabilities. These were partially offset by non-cash charges of $157.8 million. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel-related expenses of $21.7 million, an increase in deferred contract costs and contract assets of $13.7 million, an increase of $12.7 million in accounts receivable, an increase in prepaid expenses and other current assets of $8.5 million, and a decrease of lease liabilities of $6.2 million. These were partially offset by an increase in other liabilities of $5.2 million and an increase of $2.9 million in accounts payable and other accrued expenses.

Previous wording

Net cash used in investing activities was $8.0 million for the three months ended April 30, 2026. This primarily consisted of $6.7 million for the investments in capitalized internal-use software, $0.8 million in deposits for property and equipment, and $0.6 million for the purchase of property and equipment.

Current wording

Net cash used in investing activities was $15.5 million for the six months ended July 31, 2026. This primarily consisted of $11.4 million for the investments in capitalized internal-use software, $2.4 million in deposits for property and equipment, and $1.7 million for the purchase of property and equipment.

Previous wording

Net cash used in investing activities was $7.8 million for the three months ended April 30, 2025. This consisted of cash outflows of $6.5 million for the investments in capitalized internal-use software and $1.3 million for the purchase of property and equipment.

Current wording

Net cash used in investing activities was $13.8 million for the six months ended July 31, 2025. This consisted of cash outflows of $11.4 million for the investments in capitalized internal-use software and $2.4 million for the purchase of property and equipment.

Previous wording

Net cash provided by financing activities was $2.2 million for the three months ended April 30, 2026. This consisted entirely of the proceeds from the exercise of stock options.

Current wording

Net cash provided by financing activities was $9.7 million for the six months ended July 31, 2026. This consisted entirely of the proceeds from the exercise of stock options.

Previous wording

Net cash provided by financing activities was $0.4 million for the three months ended April 30, 2025. This consisted primarily of proceeds from the exercise of stock options of $1.2 million. This was partially offset by payments related to IPO costs of $0.5 million and the repayment of debt of $0.3 million.

Current wording

Net cash provided by financing activities was $17.3 million for the six months ended July 31, 2025. This consisted primarily of proceeds from the exercise of stock options of $18.4 million. This was partially offset by payments related to IPO costs of $0.6 million and the repayment of debt of $0.5 million.