PLAYSTUDIOS, Inc.

Previous wording

The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, and “the Company” are intended to mean the business and operations of PLAYSTUDIOS, Inc. and its consolidated subsidiaries.

Current wording

The following discussion and analysis provide information which our management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, and “the Company” are intended to mean the business and operations of PLAYSTUDIOS, Inc. and its consolidated subsidiaries.

Previous wording

Each of our legacy social casino games and our Tetris®-branded mobile games are powered by our proprietary playAWARDS program and incorporates loyalty points that are earned by players as they engage with our games. The rewards are provided by our collection of rewards partners, with the majority of rewards partners providing their rewards at no cost to us, in exchange for product integration, marketing support, and participation in our loyalty program. The program is enabled by our playAWARDS platform which consists of a robust suite of tools that enable our rewards partners to manage their rewards in real time, measure the value of our players’ engagement, and gain insight into the effectiveness and value they derive from the program. Through our self-service platform, rewards partners can launch new rewards, make changes to existing rewards, and in real time see how players are engaging with their brands. The platform tools also provide rewards partners the ability to measure the off-line value our players generate as consumers and patrons of their real-world establishments.

Current wording

Each of our legacy social casino games and our Tetris®-branded mobile games are powered by our proprietary playAWARDS program and incorporates loyalty points that are earned by players as they engage with our games. The rewards are provided by our collection of rewards partners, with the majority of rewards partners providing their rewards at no cost to us, in exchange for product integration, marketing support, and participation in our loyalty program. The program is enabled by our playAWARDS platform which consists of a robust suite of tools that enable our rewards partners to manage their rewards in real time, measure the value of our players’ engagement, and gain insight into the effectiveness and value they derive from the program. Through our self-service platform, rewards partners can launch new rewards, make changes to existing rewards, and in real time see how players are engaging with their brands. The platform tools also provide rewards partners with the ability to measure the off-line value our players generate as consumers and patrons of their real-world establishments.

Previous wording

DPU is defined as the number of individuals who made a purchase in a game during a particular day. As with DAU and MAU, we track DPU based on account activity. As such, an individual who makes a purchase in two different games in a particular day is counted as two DPU while an individual who makes purchases in the same game on two different devices is counted as one DPU. The term "Average DPU" is defined as the average of the DPU, determined as described above, for each day during the period presented. We use DPU and Average DPU to help us understand the size of our active player base that makes in-game purchases. This focus directs our strategic goals in setting player acquisition and pricing strategy.

Current wording

DPU is defined as the number of individuals who made a purchase in a game during a particular day. As with DAU and MAU, we track DPU based on account activity. As such, an individual who makes purchases in two different games in a particular day is counted as two DPU while an individual who makes purchases in the same game on two different devices is counted as one DPU. The term "Average DPU" is defined as the average of the DPU, determined as described above, for each day during the period presented. We use DPU and Average DPU to help us understand the size of our active player base that makes in-game purchases. This focus directs our strategic goals in setting player acquisition and pricing strategy.

Previous wording

Retail Value of Purchases is defined as the cumulative retail value of all rewards listed as Purchases for the period identified. The retail value of each reward listed as Purchases is the retail value as determined by the partner upon creation of the reward. In the case where the retail value of a reward adjusts depending on time of redemption, the average retail value is used. Retail Value of Purchases only include the retail value of real-world partner rewards and exclude the cost of any PLAYSTUDIOS branded merchandise. We use Retail Value of Purchases to help us understand the real-world value of the rewards that are purchased by our players.

Current wording

Retail Value of Purchases is defined as the cumulative retail value of all rewards listed as Purchases for the period identified. The retail value of each reward listed as Purchases is the retail value as determined by the partner upon creation of the reward. In the case where the retail value of a reward adjusts depending on time of redemption, the average retail value is used. Retail Value of Purchases only include the retail value of real-world partner rewards and excludes the cost of any PLAYSTUDIOS branded merchandise. We use Retail Value of Purchases to help us understand the real-world value of the rewards that are purchased by our players.

Previous wording

Retail Value of Daily Rewards Inventory is defined as the cumulative retail value of all rewards listed as available for the period divided by the number days in the period. For rewards with unlimited inventory, the maximum of number of rewards used in the calculation is 50. The retail value of each reward listed as available is the retail value as specified by the rewards partner upon creation of the reward. Retail Value of Daily Rewards Inventory only includes the retail value of real-world partner rewards and excludes the cost of any PLAYSTUDIOS branded merchandise. We use Retail Value of Daily Rewards Inventory to help us understand the real-world value of the rewards within our playAWARDS platform.

Current wording

Retail Value of Daily Rewards Inventory is defined as the cumulative retail value of all rewards listed as available for the period divided by the number days in the period. For rewards with unlimited inventory, the maximum number of rewards used in the calculation is 50. The retail value of each reward listed as available is the retail value as specified by the rewards partner upon creation of the reward. Retail Value of Daily Rewards Inventory only includes the retail value of real-world partner rewards and excludes the cost of any PLAYSTUDIOS branded merchandise. We use Retail Value of Daily Rewards Inventory to help us understand the real-world value of the rewards within our playAWARDS platform.

Previous wording

Comparison of the three and six months ended June 30, 2025 versus the three and six months ended June 30, 2024

Current wording

Comparison of the three and nine months ended September 30, 2025 versus the three and nine months ended September 30, 2024

Previous wording

The following table summarizes our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

Current wording

The following table summarizes our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands, except percentages):

Previous wording

Net revenue decreased $13.5 million, or (18.6)%, to $59.1 million during the three months ended June 30, 2025 compared to $72.6 million during the three months ended June 30, 2024. The decrease was due to a $8.5 million decrease in virtual currency revenue primarily driven by decreases in DPU and a $4.9 million decrease in advertising revenue mainly driven by decreases in DAU.

Current wording

Net revenue decreased $13.8 million, or (19.4)%, to $57.4 million during the three months ended September 30, 2025 compared to $71.2 million during the three months ended September 30, 2024. The decrease was due to a $11.4 million decrease in virtual currency revenue primarily driven by decreases in DPU and a $2.4 million decrease in advertising revenue mainly driven by decreases in DAU.

Previous wording

Net revenue decreased $28.8 million, or (19.1)%, to $121.7 million during the six months ended June 30, 2025 compared to $150.4 million during the six months ended June 30, 2024. The decrease was due to a $18.1 million decrease in virtual currency revenue primarily driven by decreases in DPU and a $10.5 million decrease in advertising revenue mainly driven by decreases in DAU.

Current wording

Net revenue decreased $42.6 million, or (19.2)%, to $179.0 million during the nine months ended September 30, 2025 compared to $221.6 million during the nine months ended September 30, 2024. The decrease was due to a $29.5 million decrease in virtual currency revenue primarily driven by decreases in DPU and a $12.8 million decrease in advertising revenue mainly driven by decreases in DAU.

Previous wording

Net revenue remained flat during the six months ended June 30, 2025 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Current wording

Net revenue remained flat during the nine months ended September 30, 2025 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Previous wording

Cost of revenue decreased by $3.5 million to $14.6 million during the three months ended June 30, 2025 compared to $18.1 million during the three months ended June 30, 2024. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 24.9% for the three months ended June 30, 2024 to 24.5% for the three months ended June 30, 2025.

Current wording

Cost of revenue decreased by $4.2 million to $13.6 million during the three months ended September 30, 2025 compared to $17.8 million during the three months ended September 30, 2024. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 25.0% for the three months ended September 30, 2024 to 23.6% for the three months ended September 30, 2025.

Previous wording

Cost of revenue decreased by $6.7 million to $30.3 million during the six months ended June 30, 2025 compared to $37.0 million during the six months ended June 30, 2024. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue increased from 24.6% for the six months ended June 30, 2024 to 24.9% for the six months ended June 30, 2025.

Current wording

Cost of revenue decreased by $10.9 million to $44.0 million during the nine months ended September 30, 2025 compared to $54.9 million during the nine months ended September 30, 2024. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 24.7% for the nine months ended September 30, 2024 to 24.5% for the nine months ended September 30, 2025.

Previous wording

Selling and marketing expenses decreased by $4.0 million to $13.1 million during the three months ended June 30, 2025 compared to $17.1 million during the three months ended June 30, 2024. The decrease was primarily due to a decrease in user acquisition expense of $4.1 million. This was offset by an increase of other selling and marketing expense of $0.1 million.

Current wording

Selling and marketing expenses decreased by $0.9 million to $14.2 million during the three months ended September 30, 2025 compared to $15.1 million during the three months ended September 30, 2024. The decrease was primarily due to a decrease in user acquisition expense of $0.7 million and other selling and marketing expense of $0.2 million.

Previous wording

Selling and marketing expenses decreased by $9.4 million to $26.3 million during the six months ended June 30, 2025 compared to $35.6 million during the six months ended June 30, 2024. The decrease was primarily due to decreases in user acquisition expense of $8.7 million, outside service costs of $0.6 million, and stock compensation of $0.4 million. This was offset by an increase of other selling and marketing expense of $0.3 million.

Current wording

Selling and marketing expenses decreased by $10.3 million to $40.5 million during the nine months ended September 30, 2025 compared to $50.8 million during the nine months ended September 30, 2024. The decrease was primarily due to decreases in user acquisition expense of $9.3 million, outside service costs of $0.8 million, and stock compensation of $0.7 million. This was offset by an increase of other selling and marketing expense of $0.5 million.

Previous wording

Research and development expenses decreased by $2.5 million to $14.2 million during the three months ended June 30, 2025 compared to $16.7 million during the three months ended June 30, 2024. The decrease was primarily due to decreases in employee costs of $2.2 million and stock compensation of $0.6 million as a result of the 2024 Reorganization Plan. This was offset by an increase of other research and development expense of $0.3 million.

Current wording

Research and development expenses decreased by $1.8 million to $14.8 million during the three months ended September 30, 2025 compared to $16.7 million during the three months ended September 30, 2024. The decrease was primarily due to decreases in employee costs of $1.1 million and stock compensation of $0.8 million as a result of the 2024 Reorganization Plan. This was offset by an increase of other research and development expense of $0.1 million.

Previous wording

Research and development expenses decreased by $6.9 million to $27.9 million during the six months ended June 30, 2025 compared to $34.8 million during the six months ended June 30, 2024. The decrease was primarily due to decreases in employee costs of $5.2 million, stock compensation of $1.3 million, and other research and development expense of $0.4 million as a result of the 2024 Reorganization Plan.

Current wording

Research and development expenses decreased by $8.7 million to $42.7 million during the nine months ended September 30, 2025 compared to $51.4 million during the nine months ended September 30, 2024. The decrease was primarily due to decreases in employee costs of $6.3 million, stock compensation of $2.1 million, and outside services cost of $0.6 million as a result of the 2024 Reorganization Plan. This was offset by an increase in other research and development expense of $0.3 million.

Previous wording

General and administrative expenses decreased by $0.3 million to $11.3 million during the three months ended June 30, 2025 compared to $11.6 million during the three months ended June 30, 2024. The decrease is primarily due to decreases to facilities cost of $0.4 million and other general and administrative cost of $0.4 million. This was offset by an increase to stock compensation of $0.5 million.

Current wording

General and administrative expenses increased by $0.5 million to $12.1 million during the three months ended September 30, 2025 compared to $11.6 million during the three months ended September 30, 2024. The increase is primarily due to a charitable donation of $1.3 million. This was offset by decreases to stock compensation of $0.4 million and other general and administrative cost of $0.4 million.

Previous wording

General and administrative expenses decreased by $0.2 million to $23.2 million during the six months ended June 30, 2025 compared to $23.4 million during the six months ended June 30, 2024. The decrease is primarily due to decreases in employee costs of $0.4 million and other general and administrative costs of $0.6 million. This was offset by an increase to stock compensation of $0.8 million as a result of the 2024 Reorganization Plan.

Current wording

General and administrative expenses increased by $0.3 million to $35.3 million during the nine months ended September 30, 2025 compared to $35.0 million during the nine months ended September 30, 2024. The increase is primarily due to increases of charitable donations of $1.4 million, legal expense of $0.5 million, and stock compensation of $0.4 million. This was offset by decreases in employee costs of $0.5 million and other general and administrative costs of $1.5 million.

Previous wording

Depreciation and amortization expenses decreased by $2.1 million to $9.5 million during the three months ended June 30, 2025 compared to $11.7 million during the three months ended June 30, 2024. The decrease was primarily due to decreases of internal-use software amortization in connection with write-downs of certain assets during the second half of the year ended December 31, 2024 as a result of the 2024 Reorganization Plan, as well as the renewal of a licensing agreement.

Current wording

Depreciation and amortization expenses decreased by $2.0 million to $9.6 million during the three months ended September 30, 2025 compared to $11.6 million during the three months ended September 30, 2024. The decrease was primarily due to decreases of internal-use software amortization in connection with write-downs of certain assets during the fourth quarter of 2024 as a result of the 2024 Reorganization Plan.

Previous wording

Depreciation and amortization expenses decreased by $4.1 million to $19.2 million during the six months ended June 30, 2025 compared to $23.2 million during the six months ended June 30, 2024. The decrease was primarily due to decreases of internal-use software amortization in connection with write-downs of certain assets during the second half of the year ended December 31, 2024 as a result of the 2024 Reorganization Plan, as well as the renewal of a licensing agreement.

Current wording

Depreciation and amortization expenses decreased by $6.1 million to $28.7 million during the nine months ended September 30, 2025 compared to $34.8 million during the nine months ended September 30, 2024. The decrease was primarily due to decreases of internal-use software amortization in connection with write-downs of certain assets during the fourth quarter of 2024 as a result of the 2024 Reorganization Plan.

Previous wording

Restructuring expenses decreased by $1.3 million to $0.1 million during the three months ended June 30, 2025 compared to $1.4 million during the three months ended June 30, 2024. The decrease was primarily due to decreases to non-recurring legal expense of $0.5 million, costs related to various merger and acquisition opportunities of $0.3 million, internal reorganization costs of $0.3 million, and other restructuring and related costs of $0.2 million.

Current wording

Restructuring expenses decreased by $2.0 million to $1.3 million during the three months ended September 30, 2025 compared to $3.2 million during the three months ended September 30, 2024. The decrease was primarily due to decreases to impairment charges of $1.8 million, non-recurring legal expense of $0.7 million, and internal reorganization costs of $0.2 million. This was offset by an increase of costs related to various merger and acquisition opportunities of $0.7 million.

Previous wording

The change in fair value of warrant liabilities is related to the warrants discussed in Note 11—Accrued and Other Current Liabilities to our condensed consolidated financial statements herein. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 13—Long-Term Debt to our condensed consolidated financial statements herein. Other income primarily relates to gains or (losses) from equity investments and gains or (losses) from foreign currency transactions with our foreign subsidiaries.

Current wording

The change in fair value of warrant liabilities is related to the warrants discussed in Note 11—Accrued and Other Current Liabilities to our condensed consolidated financial statements herein. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 13—Long-Term Debt to our condensed consolidated financial statements herein. Other (loss) income primarily relates to gains or (losses) from equity investments and gains or (losses) from foreign currency transactions with our foreign subsidiaries.

Previous wording

Provision for income taxes resulted in a tax expense of $0.2 million for the three months ended June 30, 2025, compared to a tax expense of $0.5 million for the three months ended June 30, 2024.

Current wording

Provision for income taxes resulted in a tax expense of $0.3 million for the three months ended September 30, 2025, compared to a tax benefit of $0.5 million for the three months ended September 30, 2024.

Previous wording

Provision for income taxes resulted in a tax expense of $0.6 million for the six months ended June 30, 2025, compared to a tax expense of $0.6 million for the six months ended June 30, 2024.

Current wording

Provision for income taxes resulted in a tax expense of $0.9 million for the nine months ended September 30, 2025, compared to a tax expense of $0.1 million for the six months ended September 30, 2024.

Previous wording

Comparison of the three and six months ended June 30, 2025 versus the three and six months ended June 30, 2024

Current wording

Comparison of the three and nine months ended September 30, 2025 versus the three and nine months ended September 30, 2024

Previous wording

playGAMES AEBITDA was $16.5 million for the three months ended June 30, 2025 compared to $21.9 million for the three months ended June 30, 2024, a decrease of $5.4 million. playGAMES AEBITDA margin was 27.9% for the three months ended June 30, 2025 compared to 30.2% for the three months ended June 30, 2024. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue primarily driven by decreases in DPU. This was offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as a reduction of user acquisition costs.

Current wording

playGAMES AEBITDA was $13.4 million for the three months ended September 30, 2025 compared to $23.2 million for the three months ended September 30, 2024, a decrease of $9.8 million. playGAMES AEBITDA margin was 23.3% for the three months ended September 30, 2025 compared to 32.6% for the three months ended September 30, 2024. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue primarily driven by decreases in DPU. This was offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as a reduction of user acquisition costs.

Previous wording

playGAMES AEBITDA was $34.8 million for the six months ended June 30, 2025 compared to $45.4 million for the six months ended June 30, 2024, a decrease of $10.6 million. playGAMES AEBITDA margin was 28.6% for the six months ended June 30, 2025 compared to 30.2% for the six months ended June 30, 2024. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue primarily driven by decreases in DPU. This was offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as a reduction of user acquisition costs.

Current wording

playGAMES AEBITDA was $48.2 million for the nine months ended September 30, 2025 compared to $68.6 million for the nine months ended September 30, 2024, a decrease of $20.4 million. playGAMES AEBITDA margin was 26.9% for the nine months ended September 30, 2025 compared to 31.0% for the nine months ended September 30, 2024. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue primarily driven by decreases in DPU. This was offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as a reduction of user acquisition costs.

Previous wording

playAWARDS AEBITDA was $(2.4) million for the three months ended June 30, 2025 compared to $(3.5) million for the three months ended June 30, 2024. The increase in AEBITDA can be attributed to a decrease in employee costs as a result of the 2024 Reorganization Plan.

Current wording

playAWARDS AEBITDA was $(2.4) million for the three months ended September 30, 2025 compared to $(4.0) million for the three months ended September 30, 2024. The increase in AEBITDA can be attributed to a decrease in employee costs as a result of the 2024 Reorganization Plan.

Previous wording

playAWARDS AEBITDA was $(4.7) million for the six months ended June 30, 2025 compared to $(7.1) million for the six months ended June 30, 2024. The increase in AEBITDA can be attributed to a decrease in employee costs as a result of the 2024 Reorganization Plan.

Current wording

playAWARDS AEBITDA was $(7.1) million for the nine months ended September 30, 2025 compared to $(11.1) million for the nine months ended September 30, 2024. The increase in AEBITDA can be attributed to a decrease in employee costs as a result of the 2024 Reorganization Plan.

Previous wording

(1)Amounts reported during the three and six months ended June 30, 2024 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger, acquisition and restructuring opportunities, and legal fees and others costs incurred in connection with litigation arising out of the Acies Merger transaction. Amounts reported during the three and six months ended June 30, 2025 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and non-recurring legal costs.

Current wording

(1)Amounts reported during the three and nine months ended September 30, 2024 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and legal fees and others costs incurred in connection with litigation arising out of the Acies Merger transaction. Amounts reported during the three and nine months ended September 30, 2025 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and non-recurring legal costs.

Previous wording

(2)Amounts reported in “Other, net” include interest expense, interest income, gains/losses from equity investments, foreign currency gains/losses, and non-cash gains/losses on the disposal of assets.

Current wording

(3)Amounts reported in “Other, net” include interest expense, interest income, gains/losses from equity investments, foreign currency gains/losses, and non-cash gains/losses on the disposal of assets.

Previous wording

As of June 30, 2025, we had cash and cash equivalents of $112.9 million, which consisted of cash on hand and money market mutual funds. As of June 30, 2025 we had restricted cash of $0.6 million. Historically, we have funded our operations, including capital expenditures, primarily through cash flow from operating activities. We believe that our existing cash and cash equivalents, the cash generated from operations, and the borrowing capacity under our Credit Agreement as described below will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financing to secure additional funds or we may decide to do so opportunistically.

Current wording

As of September 30, 2025, we had cash and cash equivalents of $106.3 million, which consisted of cash on hand and money market mutual funds. As of September 30, 2025 we had restricted cash of $0.6 million. Historically, we have funded our operations, including capital expenditures, primarily through cash flow from operating activities. We believe that our existing cash and cash equivalents, the cash generated from operations, and the borrowing capacity under our Credit Agreement as described below will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financing to secure additional funds or we may decide to do so opportunistically.

Previous wording

During the six months ended June 30, 2025, operating activities provided $16.9 million of net cash as compared to $19.5 million during the six months ended June 30, 2024. The decrease in cash provided from operating activities was primarily due to a decrease in net revenue, which was offset by a reduction in cost of sales, less employee costs due to a reduced headcount, and a favorable change in operating assets and liabilities due to timing fluctuations in receivables being collected.

Current wording

During the nine months ended September 30, 2025, operating activities provided $22.6 million of net cash as compared to $34.1 million during the nine months ended September 30, 2024. The decrease in cash provided from operating activities was primarily due to a decrease in net revenue, which was offset by a reduction in cost of sales, less employee costs due to a reduced headcount, and a favorable change in operating assets and liabilities due to timing fluctuations in receivables being collected.

Previous wording

During the six months ended June 30, 2025, investing activities used $8.0 million of net cash as compared to $13.1 million during the six months ended June 30, 2024. The change in cash used in investing activities was due to less additions to internal-use software and property and equipment during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2025, investing activities used $12.7 million of net cash as compared to $22.1 million during the nine months ended September 30, 2024. The change in cash used in investing activities was due to less assets acquired from business combinations and less additions to internal-use software and property and equipment during the nine months ended September 30, 2025.

Previous wording

During the six months ended June 30, 2025, financing activities used $7.0 million of net cash as compared to $32.4 million during the six months ended June 30, 2024. The change in cash used in financing activities was due to $25.2 million less in share repurchases and $0.2 million less in payments made for tax withholding on stock-based compensation.

Current wording

During the nine months ended September 30, 2025, financing activities used $14.5 million of net cash as compared to $38.6 million during the nine months ended September 30, 2024. The change in cash used in financing activities was due to $25.7 million less in share repurchases and $0.6 million less in payments made for tax withholding on stock-based compensation. This was offset by an increase in minimum guarantees paid of $2.0 million.

Previous wording

As of June 30, 2025, there had been no material changes to our aggregated indebtedness and other contractual obligations previously reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

As of September 30, 2025, there had been no material changes to our aggregated indebtedness and other contractual obligations previously reported in our 2024 Annual Report on Form 10-K filed on March 14, 2025 and amended on Form 10-K/A filed on April 4, 2025.