Xperi Inc.

Previous wording

We are a leading media and entertainment technology company. Our technologies are integrated into consumer devices, connected cars, and a variety of media platforms worldwide, enabling our unique audiences to connect with entertainment content in a more intelligent, immersive, and personal way. As our audiences engage with content on our platforms, we operate a global, cross-screen advertising solution that enables brands to reach millions of engaged consumers across our rapidly expanding digital entertainment ecosystem, driving increased value for our partners, customers, and consumers. We operate in one reportable business segment and group our revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Headquartered in Silicon Valley with operations around the world, we have approximately 1,380 employees and more than 35 years of operating experience.

Current wording

We are a leading media and entertainment technology company. Our technologies are integrated into consumer devices, connected cars, and a variety of media platforms worldwide, enabling our unique audiences to connect with entertainment content in a more intelligent, immersive, and personal way. As our audiences engage with content on our platforms, we operate a global, cross-screen advertising solution that enables brands to reach millions of engaged consumers across our rapidly expanding digital entertainment ecosystem, driving increased value for our partners, customers, and consumers. We operate in one reportable business segment and group our revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Headquartered in Silicon Valley with operations around the world, we have approximately 1,370 employees and more than 35 years of operating experience.

Previous wording

In November 2025, we approved a restructuring plan designed to improve cost efficiency and better align our operating structure with our long-term strategies and prevailing market conditions. The plan involved a reduction of approximately 250 employees across all business and functional areas and became effective immediately. In connection with this plan, we incurred restructuring and related charges of $13.9 million and $0.3 million in the fourth quarter of 2025 and the first half of 2026, respectively, substantially all of which consisted of employee severance and related costs. As of June 30, 2026, the remaining amount of accrued restructuring charges was immaterial. Upon completion, we estimate that the reductions will generate annualized savings in the range of approximately $30 million to $35 million. For further information, refer to Note 14—Restructuring of the notes to condensed consolidated financial statements.

Current wording

In November 2025, we approved a restructuring plan designed to improve cost efficiency and better align our operating structure with our long-term strategies and prevailing market conditions. The plan involved a reduction of approximately 250 employees across all business and functional areas and became effective immediately. In connection with this plan, we incurred restructuring and related charges of $13.9 million and $0.3 million in the fourth quarter of 2025 and the first nine months of 2026, respectively, substantially all of which consisted of employee severance and related costs. As of September 30, 2026, the remaining amount of accrued restructuring charges was immaterial. Upon completion, we estimate that the reductions will generate annualized savings in the range of approximately $30 million to $35 million. For further information, refer to Note 14—Restructuring of the notes to condensed consolidated financial statements.

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

We generate revenue primarily through the licensing of our technologies and solutions and the monetization of our global, cross-screen advertising platform. While licensing revenue continues to represent a significant portion of our total revenue, advertising and related revenue has grown substantially in recent periods, driven by the expansion of our advertising ecosystem and ongoing enhancements to our advertising products and capabilities. For a discussion of our revenue recognition policies and a description of our revenue-generating activities, see Note 2—Revenueto the unaudited condensed consolidated financial statements.

Current wording

We generate revenue primarily through the licensing of our technologies and solutions and the monetization of our global, cross-screen advertising platform. While licensing revenue continues to represent the majority of our total revenue, advertising and related revenue has grown substantially in recent periods, driven by the expansion of our advertising ecosystem and ongoing enhancements to our advertising products and capabilities. For a discussion of our revenue recognition policies and a description of our revenue-generating activities, see Note 2—Revenueto the unaudited condensed consolidated financial statements.

Previous wording

Licensing and other revenue increased by $3.3 million, or 3%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by a $15.0 million increase in Connected Car revenue, mainly due to higher minimum guarantee (“MG”) revenue from HD Radio and music metadata. This increase was partially offset by a $6.5 million decrease in Consumer Electronics revenue, primarily due to the absence of certain MG and settlement revenue recognized in the prior-year period, and a $5.3 million decrease in Pay-TV revenue, primarily reflecting declines in core guide products and related subscription revenue, partially offset by growth in TiVo video-over-broadband (“IPTV”) solutions.

Current wording

Licensing and other revenue decreased by $8.7 million, or 8%, for the three months ended September 30, 2026 compared to the same period in the prior year. The decrease was primarily attributable to decreases of $5.2 million in Consumer Electronics revenue, $4.7 million in Connected Car revenue, and $2.9 million in middleware licensing revenue within Media Platform, primarily due to the absence of certain minimum guarantee (“MG”) revenue recognized in the prior-year period. These decreases were partially offset by a $3.6 million increase in Pay-TV revenue, primarily driven by higher MG revenue from core guide products and growth in TiVo video-over-broadband (“IPTV”) solutions, partially offset by the expected declines in core Pay-TV products.

Previous wording

Advertising and related revenue increased by $6.6 million, or 42%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in ad impressions delivered, driven by continued expansion of TiVo One platform users, expanded advertising partnerships, and enhancements to our advertising products and services.

Current wording

Advertising and related revenue increased by $11.0 million, or 281%, for the three months ended September 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in revenue related to the TiVo One ad platform, driven by increases in monthly active users and ad impressions delivered, expanded advertising partnerships, customer satisfaction, and enhancements to our advertising products and services. The increase also reflected revenue recognized under a new multi-year agreement, including consideration related to historical viewership data.

Previous wording

Licensing and other revenue increased by $2.1 million, or 1%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by a $19.7 million increase in Connected Car revenue, mainly due to higher MG revenue from HD Radio, and a $2.5 million increase within Media Platform primarily due to middleware licensing. These increases were partially offset by a $10.9 million decrease in Consumer Electronics revenue, primarily due to the absence of certain MG and settlement revenue recognized in the prior-year period, as well as memory-related challenges in certain end product categories, and a $9.2 million decrease in Pay-TV revenue, primarily reflecting declines in core guide products and related subscription revenue, partially offset by growth in IPTV.

Current wording

Licensing and other revenue decreased by $6.6 million, or 2%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The decrease was primarily attributable to a $16.0 million decrease in Consumer Electronics revenue, primarily due to the absence of certain MG and settlement revenue recognized in the prior-year period and memory-related challenges in certain end-product categories, and a $5.6 million decrease in Pay-TV revenue, primarily due to declines in core guide products and related subscription revenue, partially offset by growth in IPTV. These decreases were partially offset by a $15.1 million increase in Connected Car revenue, primarily due to higher MG revenue from HD Radio.

Previous wording

Advertising and related revenue increased by $5.3 million, or 54%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in ad impressions delivered, driven by continued expansion of TiVo One platform users, expanded advertising partnerships, and enhancements to our advertising products and services.

Current wording

Advertising and related revenue increased by $17.6 million, or 90%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to growth in ad impressions delivered, driven by continued expansion of TiVo One platform users, expanded advertising partnerships, and enhancements to our advertising products and services.

Previous wording

Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, consists primarily of employee-related costs, content and data costs, royalties paid to third parties, hosting fees, service center expenses, maintenance costs and an allocation of facilities costs, as well as other expenses related to providing non-recurring engineering services.

Current wording

Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, consists primarily of employee-related costs, content and data costs, revenue share, royalties paid to third parties, hosting fees, service center expenses, maintenance costs and an allocation of facilities costs, as well as other expenses related to providing non-recurring engineering services.

Previous wording

Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, for the three months ended June 30, 2026 was $19.8 million, as compared to $22.1 million in the same period of the prior year, a decrease of $2.3 million, or 10%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, as well as reduced hardware-related costs following the discontinuation of hardware product sales by the end of 2025.

Current wording

Cost of licensing and other revenue, excluding depreciation and amortization of intangible assets, for the nine months ended September 30, 2026 was $67.2 million, as compared to $70.8 million in the same period of the prior year, a decrease of $3.6 million, or 5%. The decrease was primarily due to lower employee-related costs resulting from restructuring activities and lower hardware product-related costs following the discontinuation of hardware product sales by the end of 2025, partially offset by higher revenue share costs.

Previous wording

Research and development (“R&D”) expenses consist primarily of employee-related costs, stock-based compensation (“SBC”) expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as other costs related to patent applications and examinations, materials, supplies, and an allocation of facilities costs. Other than certain software development costs that are capitalized, all research and development costs are expensed as incurred.

Current wording

Research and development (“R&D”) expenses consist primarily of employee-related costs, stock-based compensation (“SBC”) expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as other costs related to patent applications and examinations, materials, supplies, and an allocation of facilities costs. Other than certain internal-use software development costs that are capitalized, all research and development costs are expensed as incurred.

Previous wording

R&D expenses for the three months ended June 30, 2026 was $21.8 million, as compared to $29.8 million in the same period of the prior year, a decrease of $8.0 million, or 27%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, reduced SBC expense, and lower spending on outside services.

Current wording

R&D expenses for the nine months ended September 30, 2026 were $72.4 million, as compared to $99.3 million in the same period of the prior year, a decrease of $26.9 million, or 27%. The decrease was primarily driven by lower employee-related costs, including SBC expense, resulting primarily from restructuring activities.

Previous wording

Selling, general and administrative expenses for the six months ended June 30, 2025 were $83.3 million, as compared to $89.8 million in the same period of the prior year, a decrease of $6.5 million, or 7%. The decrease was primarily attributable to lower employee salary-related costs resulting from restructuring activities and lower SBC expense, partially offset by higher bonus and commission expenses.

Current wording

Selling, general and administrative expenses for the three months ended September 30, 2026 were $41.7 million, as compared to $42.5 million in the same period of the prior year, a decrease of $0.8 million, or 2%. The decrease was primarily attributable to lower employee salary-related costs resulting from restructuring activities and lower SBC expense.

Previous wording

R&D expenses for the six months ended June 30, 2026 was $48.9 million, as compared to $69.3 million in the same period of the prior year, a decrease of $20.4 million, or 29%. The decrease was primarily driven by lower employee-related costs resulting from restructuring activities, reduced SBC expense, and lower spending on outside services.

Current wording

Selling, general and administrative expenses for the nine months ended September 30, 2026 were $125.1 million, as compared to $132.4 million in the same period of the prior year, a decrease of $7.3 million, or 5%. The decrease was primarily attributable to lower employee salary-related costs resulting from restructuring activities, reduced SBC expense, and decreased information technology spending.

Previous wording

The following table sets forth our SBC expense for the three and six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table sets forth our SBC expense for the three and nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

We recognized SBC expense from restricted stock units (“RSUs”) and purchases made under our employee stock purchase plan (“ESPP”). The decreases of $3.5 million and $7.8 million in SBC expense for the three and six months ended June 30, 2026, respectively, when compared to the same periods of the prior year, was primarily driven by reduced employee headcount, RSUs granted over time at lower valuations, and lower expense for performance-based restricted stock awards.

Current wording

We recognized SBC expense from restricted stock units (“RSUs”) and purchases made under our employee stock purchase plan (“2022 ESPP”). The decreases of $2.6 million and $10.4 million in SBC expense for the three and nine months ended September 30, 2026, respectively, when compared to the same periods of the prior year, were primarily driven by reduced employee headcount and RSUs granted over time at lower valuations.

Previous wording

We recognized depreciation expense for certain equipment, capitalized internal-use software, leasehold improvements, and buildings and improvements. Depreciation expense for the three months ended June 30, 2026 was $4.0 million, as compared to $3.4 million in the same period of the prior year, an increase of $0.6 million, or 15%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.

Current wording

We recognized depreciation expense for certain equipment, capitalized internal-use software, leasehold improvements, and buildings and improvements. Depreciation expense for the three months ended September 30, 2026 was $3.7 million, as compared to $3.5 million in the same period of the prior year, an increase of $0.2 million, or 6%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.

Previous wording

Depreciation expense for the six months ended June 30, 2026 was $8.2 million, as compared to $6.4 million in the same period of the prior year, an increase of $1.8 million, or 29%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.

Current wording

Depreciation expense for the nine months ended September 30, 2026 was $11.9 million, as compared to $9.8 million in the same period of the prior year, an increase of $2.1 million, or 21%. The increase was primarily driven by increased capitalized internal-use software costs over the preceding 12 months.

Previous wording

We recognized amortization expense for certain intangible assets we acquired in business combinations that are recognized separately from goodwill. For the three and six months ended June 30, 2026, amortization expense decreased by $1.1 million and $2.7 million, or 12% and 14%, respectively, as compared to the same periods of the prior year. The decreases were primarily due to certain intangible assets becoming fully amortized over the preceding 12 months.

Current wording

We recognized amortization expense for certain intangible assets we acquired in business combinations that are recognized separately from goodwill. For the three and nine months ended September 30, 2026, amortization expense decreased by $0.1 million and $2.8 million, or 1% and 11%, respectively, as compared to the same periods of the prior year. The decreases were primarily due to certain intangible assets becoming fully amortized over the preceding 12 months.

Previous wording

Interest and other income, net, was lower in the three months ended June 30, 2026, as compared to the same period in the prior year, principally due to foreign currency transaction losses recognized during the second quarter of 2026.

Current wording

Interest and other income, net, was lower for the nine months ended September 30, 2026 compared to the same period in the prior year, primarily due to foreign currency remeasurement losses recognized in the current-year period.

Previous wording

Interest expense on our debt did not change materially for the three and six months ended June 30, 2026, compared with the corresponding periods in the prior year.

Current wording

Interest expense on our debt did not change materially for the three and nine months ended September 30, 2026, compared with the corresponding periods in the prior year.

Previous wording

For the three and six months ended June 30, 2026, we recorded an income tax expense of $4.8 million and $14.9 million on a pretax income of $3.3 million and $5.6 million, respectively; which resulted in an effective tax rate of 145.1% and 266.0%, respectively. The income tax expense for the three and six months ended June 30, 2026 was primarily related to foreign income taxes and foreign withholding taxes.

Current wording

For the three and nine months ended September 30, 2026, we recorded an income tax expense of $7.4 million and $22.3 million on a pretax income of $2.1 million and $7.8 million, respectively; which resulted in an effective tax rate of 344.7% and 287.7%, respectively. The income tax expense for the three and nine months ended September 30, 2026 was primarily related to foreign income taxes and foreign withholding taxes.

Previous wording

For the three and six months ended June 30, 2025, we recorded an income tax expense of $4.6 million and $8.1 million on a pretax loss of $10.1 million and $25.0 million, respectively; which resulted in an effective tax rate of (45.7)% and (32.5)%, respectively. The income tax expense for the three and six months ended June 30, 2025 was primarily related to foreign withholding taxes and foreign income taxes.

Current wording

For the three and nine months ended September 30, 2025, we recorded an income tax expense of $4.8 million and $12.9 million on a pretax loss of $1.3 million and $26.3 million, respectively; which resulted in an effective tax rate of (369.0)% and (49.1)%, respectively. The income tax expense for the three and nine months ended September 30, 2025 was primarily related to foreign withholding taxes and foreign income taxes.

Previous wording

Our primary sources of liquidity and capital resources are our cash and cash equivalents and borrowings available under our accounts receivable securitization program (the “AR Facility”) with PNC Bank, National Association and PNC Capital Markets LLC (“PNC”). Cash and cash equivalents were $90.6 million as of June 30, 2026, compared to $96.8 million as of December 31, 2025, a decrease of $6.2 million. The decrease was primarily driven by $3.5 million of cash used in operating activities, $11.8 million of capital expenditures, including capitalized internal-use software costs, and $4.4 million of payments for withholding taxes related to the net share settlement of equity awards. These decreases were partially offset by $2.1 million of proceeds from the issuance of common stock under our ESPP and the receipt of a $12.0 million indemnification holdback payment in full related to the Perceive divestiture, of which $11.3 million was classified as a financing activity. For detailed information regarding the AR Facility, refer to “Long-Term Debt Financing” below.

Current wording

Our primary sources of liquidity and capital resources are our cash and cash equivalents and borrowings available under our accounts receivable securitization program (the “AR Facility”) with PNC Bank, National Association and PNC Capital Markets LLC (“PNC”). Cash and cash equivalents were $87.0 million as of September 30, 2026, compared to $96.8 million as of December 31, 2025, a decrease of $9.8 million. The decrease was primarily driven by $19.2 million of capital expenditures, including capitalized internal-use software costs, and $4.6 million of payments for withholding taxes related to the net share settlement of equity awards. These decreases were partially offset by $0.6 million of cash provided by operating activities, $2.1 million of proceeds from the issuance of common stock under our 2022 ESPP and the receipt of a $12.0 million indemnification holdback payment in full related to the Perceive Transaction, of which $11.3 million was classified as a financing activity. For detailed information regarding the AR Facility, refer to “Long-Term Debt Financing” below.

Previous wording

In April 2024, our Board of Directors (the “Board”) authorized the repurchase of up to $100.0 million of our common stock (the “Program”). Under the Program, we may make repurchases, from time to time, through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions, or other means. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under the Program. As of June 30, 2026, we have repurchased a total of approximately 2.2 million shares of common stock, since inception of the Program, at an average price of $9.23 per share for a total cost of approximately $20.0 million. We did not repurchase any common stock during the six months ended June 30, 2026. As of June 30, 2026, the total remaining amount available for repurchase was $80.0 million. We may continue to execute authorized repurchases from time to time under the Program. There is no guarantee that such repurchases under the Program will enhance the value of our common stock.

Current wording

In April 2024, our Board of Directors (the “Board”) authorized the repurchase of up to $100.0 million of our common stock (the “Program”). Under the Program, we may make repurchases, from time to time, through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions, or other means. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under the Program. As of September 30, 2026, we have repurchased a total of approximately 2.2 million shares of common stock, since inception of the Program, at an average price of $9.23 per share for a total cost of approximately $20.0 million. We did not repurchase any common stock during the nine months ended September 30, 2026. As of September 30, 2026, the total remaining amount available for repurchase was $80.0 million. We may continue to execute authorized repurchases from time to time under the Program. There is no guarantee that such repurchases under the Program will enhance the value of our common stock.

Previous wording

Net cash used in operating activities was $3.5 million for the six months ended June 30, 2026, primarily due to our net loss of $9.3 million being further adjusted by $32.4 million of changes in operating assets and liabilities, including an increase of $22.1 million in unbilled contracts receivable and payment of employee annual bonuses for 2025 performance, partially offset by non-cash items such as SBC expense of $14.7 million, amortization of intangible assets of $16.1 million, and depreciation expense of $8.2 million.

Current wording

Net cash provided by operating activities was $0.6 million for the nine months ended September 30, 2026, primarily due to our net loss of $14.6 million being further adjusted by $39.8 million of changes in operating assets and liabilities, including an increase of $36.8 million in unbilled contracts receivable, partially offset by non-cash items such as SBC expense of $21.7 million, amortization of intangible assets of $24.0 million, and depreciation expense of $11.9 million.

Previous wording

Net cash used in operating activities was $12.2 million for the six months ended June 30, 2025, primarily due to our net loss of $33.1 million being further adjusted by $26.1 million of changes in operating assets and liabilities, including payment of employee annual bonuses for 2024 performance, partially offset by non-cash items such as SBC expense of $22.4 million, amortization of intangible assets of $18.9 million, and depreciation expense of $6.4 million.

Current wording

Net cash used in operating activities was $4.6 million for the nine months ended September 30, 2025, primarily due to our net loss of $39.3 million being further adjusted by $32.8 million of changes in operating assets and liabilities, partially offset by non-cash items such as SBC expense of $32.1 million, amortization of intangible assets of $26.9 million, and depreciation expense of $9.8 million.

Previous wording

Net cash used in investing activities was $11.8 million and $9.0 million for the six months ended June 30, 2026 and 2025, respectively, which was related to capital expenditures, including capitalized internal-use software.

Current wording

Net cash used in investing activities was $19.2 million and $14.6 million for the nine months ended September 30, 2026 and 2025, respectively, which was related to capital expenditures, including capitalized internal-use software.

Previous wording

Our capital expenditures for property and equipment consist primarily of capitalized internal-use software, purchases of computer hardware and software, information systems, and production and test equipment. We expect capital expenditures in 2026 to be approximately $25.0 million, an increase of approximately $5.0 million from our original expectation, due primarily to continued constraints in the memory market, which have increased the cost of planned capital equipment purchases, as well as incremental investments to reduce memory requirements in our software platforms in response to partner demand. We expect these expenditures to be funded with existing cash and cash equivalents. However, there can be no assurance that our current expectations will be realized, and our plans remain subject to change based on further review of our capital expenditure needs.

Current wording

Our capital expenditures for property and equipment consist primarily of capitalized internal-use software, purchases of computer hardware and software, information systems, and production and test equipment. We expect capital expenditures in 2026 to be approximately $25.0 million. As previously disclosed, this reflects an increase of approximately $5.0 million from our original expectation, due primarily to continued constraints in the memory market, which have increased the cost of planned capital equipment purchases, as well as incremental investments to reduce memory requirements in our software platforms in response to partner demand. We expect these expenditures to be funded with existing cash and cash equivalents. However, there can be no assurance that our current expectations will be realized, and our plans remain subject to change based on further review of our capital expenditure needs.

Previous wording

Net cash provided by financing activities was $9.0 million for the six months ended June 30, 2026, primarily due to the receipt of $11.3 million of indemnification holdback proceeds in connection with the Perceive divestiture, net of $0.7 million relating to accreted interest classified within operating cash flows, and $2.1 million of proceeds from the issuance of common stock under our ESPP. These inflows were partially offset by $4.4 million of withholding tax payments related to the net share settlement of equity awards.

Current wording

Net cash provided by financing activities was $8.8 million for the nine months ended September 30, 2026, primarily due to the receipt of $11.3 million of indemnification holdback proceeds in connection with the Perceive Transaction, net of $0.7 million relating to accreted interest classified within operating cash flows, and $2.1 million of proceeds from the issuance of common stock under our 2022 ESPP. These inflows were partially offset by $4.6 million of withholding tax payments related to the net share settlement of equity awards.

Previous wording

Net cash used in financing activities was $14.3 million for the six months ended June 30, 2025, primarily due to the $50.0 million voluntary repayment of the Vewd senior unsecured promissory note, and $6.3 million in payment of withholding taxes related to net share settlement of equity awards, partially offset by $40.0 million in loan proceeds borrowed under the AR Facility with PNC and $3.3 million in proceeds from the issuance of common stock under our ESPP.

Current wording

Net cash used in financing activities was $14.6 million for the nine months ended September 30, 2025, primarily due to the $50.0 million voluntary repayment of the Vewd senior unsecured promissory note, and $6.6 million in payment of withholding taxes related to net share settlement of equity awards, partially offset by $40.0 million in loan proceeds borrowed under the AR Facility with PNC and $3.3 million in proceeds from the issuance of common stock under our 2022 ESPP.

Previous wording

We may supplement our short-term liquidity needs with access to capital markets, if necessary, and further strategic cost savings initiatives. Our access to capital markets may be constrained and our cost of borrowing may increase under certain business and market conditions, and our liquidity is subject to various risks including the risks identified in “Risk Factors” included in Part I, Item 1A of our Form 10-K.

Current wording

We may supplement our short-term liquidity needs with access to capital markets, if necessary, and further strategic cost savings initiatives. Our access to capital markets may be constrained and our cost of borrowing may increase under certain business and market conditions, and our liquidity is subject to various risks including the risks identified in “Risk Factors” included in Part I, Item 1A of our Form 10-K, as updated in Part II, Item 1A of this Quarterly Report.

Previous wording

During the six months ended June 30, 2026, there were no significant changes in our critical accounting estimates. For a discussion of our critical accounting estimates, see Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K.

Current wording

During the nine months ended September 30, 2026, there were no significant changes in our critical accounting estimates. For a discussion of our critical accounting estimates, see Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K.