Klaviyo, Inc.

Previous wording

We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 205,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data, intelligence, and action layers into one vertically-integrated solution with advanced machine learning and AI capabilities and over 350 integrations, enabling businesses to create and store unified consumer profiles, derive new insights, and rapidly segment their consumers.

Current wording

We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 211,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data, intelligence, and action layers into one vertically-integrated solution with advanced machine learning and AI capabilities and over 400 integrations, enabling businesses to create and store unified consumer profiles, derive new insights, and rapidly segment their consumers.

Previous wording

Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. The Klaviyo Data Platform (“KDP”) generates unified, highly granular consumer profiles populated with data from customers’ own systems and over 350 third-party integrations, and provides customers user-friendly ways to track new types of data, sync data in and out of Klaviyo at scale, and drive revenue growth. Building upon our robust data infrastructure, we developed tools, initially focusing on marketing automation, where we revolutionized email practices. Our innovation shifted the industry paradigm away from batch and blast practices with a fast, data-rich marketing tool. In addition to our email offering, we now incorporate text messaging and WhatsApp channels, Reviews, Klaviyo Service, Klaviyo Analytics, and others.

Current wording

Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. The Klaviyo Data Platform (“KDP”) generates unified, highly granular consumer profiles populated with data from customers’ own systems and over 400 third-party integrations, and provides customers user-friendly ways to track new types of data, sync data in and out of Klaviyo at scale, and drive revenue growth. Building upon our robust data infrastructure, we developed tools, initially focusing on marketing automation, where we revolutionized email practices. Our innovation shifted the industry paradigm away from batch and blast practices with a fast, data-rich marketing tool. In addition to our email offering, we now incorporate text messaging and WhatsApp channels, Reviews, Klaviyo Service, Klaviyo Analytics, and others.

Previous wording

In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs across marketing, service and analytics. In September 2025, we launched Marketing Agent and Customer Agent, establishing Klaviyo as the AI-first B2C CRM. In June 2026, we announced the public beta of Composer, our next generation agent for marketing and analysis. Taken together, this is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and AI, we combine marketing, service, analytics, and our data platform into a single solution designed to meet the high-volume, fast-paced needs of our customers.

Current wording

In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs across marketing, service and analytics. In September 2025, we launched Marketing Agent and Customer Agent, establishing Klaviyo as the AI-first B2C CRM. In June 2026, we announced the public beta of Composer, our next generation agent for marketing and analysis, which became generally available to all Klaviyo customers in October 2026. Taken together, this is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and AI, we combine marketing, service, analytics, and our data platform into a single solution designed to meet the high-volume, fast-paced needs of our customers.

Previous wording

Klaviyo Service is an AI-powered customer service offering that integrates with marketing and data to help businesses provide seamless customer support via Customer Hub, Customer Agent and Helpdesk. Marketing Analytics gives brands real-time AI-powered insight into customer and purchase behavior so they can take action faster. Our Advanced KDP offering unlocks advanced features for even more powerful ways to track, transform, cleanse, and analyze data as well as run more advanced reporting and predictive analytics to drive revenue growth for our customers. These offerings leverage Klaviyo’s unified platform to deliver an integrated, AI-first customer experience that enhances automation, personalization, and efficiency across channels.

Current wording

Klaviyo Service is an AI-powered customer service offering that integrates with marketing and data to help businesses provide seamless customer support via Customer Hub, Customer Agent and Helpdesk. Our Personalization offering, formerly Marketing Analytics, gives brands real-time AI-powered insight into customer and purchase behavior so they can take action faster. Our Advanced KDP offering unlocks advanced features for even more powerful ways to track, transform, cleanse, and analyze data as well as run more advanced reporting and predictive analytics to drive revenue growth for our customers. These offerings leverage Klaviyo’s unified platform to deliver an integrated, AI-first customer experience that enhances automation, personalization, and efficiency across channels.

Previous wording

Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we have also seen organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. As of June 30, 2026, our platform had efficiently scaled to over 205,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.

Current wording

Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we have also seen organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. As of September 30, 2026, our platform had efficiently scaled to over 211,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.

Previous wording

Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails, text messages and WhatsApp messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as text messaging, WhatsApp messaging, and mobile push and additional use cases, such as Customer Agent, Composer, Marketing Analytics, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.

Current wording

Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails, text messages and WhatsApp messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as text messaging, WhatsApp messaging, and mobile push, and additional use cases, such as Composer, Customer Agent, Personalization, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.

Previous wording

We believe our product-led growth strategy enables us to efficiently expand penetration within our existing customer base. We focus on expansion in three primary ways. First, as our customers increase their usage of our platform through the number of active consumer profiles they store and email, text messages and WhatsApp messages they send, they move to higher subscription tiers. Second, we cross-sell additional use cases (e.g. Customer Agent, Marketing Analytics, etc.) and marketing channels (e.g. text messaging and WhatsApp) to customers who started on our platform with our email offering. Finally, we offer our platform to our customers’ other brands, business units, and geographies. Going forward, our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solutions and the ability of our customers to attract new consumers. We expect these three forms of revenue expansion to continue in the future.

Current wording

We believe our product-led growth strategy enables us to efficiently expand penetration within our existing customer base. We focus on expansion in three primary ways. First, as our customers increase their usage of our platform through the number of active consumer profiles they store and email, text messages and WhatsApp messages they send, they move to higher subscription tiers. Second, we cross-sell additional use cases (e.g. Composer, Customer Agent, Personalization, etc.) and marketing channels (e.g. text messaging and WhatsApp) to customers who started on our platform with our email offering. Finally, we offer our platform to our customers’ other brands, business units, and geographies. Going forward, our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solutions and the ability of our customers to attract new consumers. We expect these three forms of revenue expansion to continue in the future.

Previous wording

We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. In 2024, we expanded our presence in the European region by adding operations in Dublin, Ireland. In 2025, we continued our expansion into the Asia Pacific and European regions by adding operations in Singapore and France, respectively. In 2026, we further expanded our North American presence by adding operations in Canada. We have already experienced significant growth with international sales outside of the Americas accounting for 36.8% of our revenue for the six months ended June 30, 2026. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer text messaging capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish, Italian, Dutch, Swedish, Spanish (Mexico), and Polish. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.

Current wording

We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. In 2024, we expanded our presence in the European region by adding operations in Dublin, Ireland. In 2025, we continued our expansion into the Asia Pacific and European regions by adding operations in Singapore and France, respectively. In 2026, we further expanded our North American and European presence by adding operations in Canada and Germany, respectively. We have already experienced significant growth with international sales outside of the Americas accounting for 37.0% of our revenue for the nine months ended September 30, 2026. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer text messaging capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish, Italian, Dutch, Swedish, Spanish (Mexico), Polish, and Japanese. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars and Canadian Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.

Previous wording

Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as text messaging, mobile push, and WhatsApp messaging, and additional use cases, such as Customer Agent, Composer, Marketing Analytics, and Advanced KDP. We have also introduced AI features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement, including our Composer and Customer Agent offerings as well as our MCP Server capability.

Current wording

Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as text messaging, mobile push, and WhatsApp messaging, and additional use cases, such as Composer, Customer Agent, Personalization, and Advanced KDP. We have also introduced AI features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement, including our Composer and Customer Agent offerings as well as our MCP Server capability.

Previous wording

We have seen notable success in the expansion of our platform with our text messaging and WhatsApp messaging offerings. Once customers adopt our text messaging and WhatsApp messaging offerings, they typically grow their usage over time as they gain comfort and confidence in the new channel. Our text messaging and WhatsApp messaging offerings have higher associated communication sending costs, and as the number of text messages and WhatsApp messages sent by our customers increases, we expect our gross margin to decline modestly. Text messaging and WhatsApp messaging are particularly concentrated in the fourth quarter of each year due to the holiday shopping season, and as a result, we expect our gross margin to be most heavily impacted in that quarter. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin products by our customers, and ongoing efforts to drive infrastructure efficiency. We believe we will see our overall gross profit dollars increase as customers send more text messages and WhatsApp messages if our text messaging and WhatsApp messaging offerings continue to gain traction.

Current wording

We have seen notable success in the expansion of our platform with our text messaging and WhatsApp messaging offerings. Once customers adopt our text messaging and WhatsApp messaging offerings, they typically grow their usage over time as they gain comfort and confidence in the new channels. Our text messaging and WhatsApp messaging offerings have higher associated communication sending costs, and as the number of text messages and WhatsApp messages sent by our customers increases, we expect our gross margin to decline modestly. Text messaging and WhatsApp messaging are particularly concentrated in the fourth quarter of each year due to the holiday shopping season, and as a result, we expect our gross margin to be most heavily impacted in that quarter. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin products by our customers, and ongoing efforts to drive infrastructure efficiency. We believe we will see our overall gross profit dollars increase as customers send more text messages and WhatsApp messages if our text messaging and WhatsApp messaging offerings continue to gain traction.

Previous wording

Customers Generating Over $50,000 of ARR. We calculate our number of customers generating over $50,000 of ARR (as defined below) as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination. We believe the number of customers generating over $50,000 of ARR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it is an indicator of our ability to grow the number of customers that are exceeding this ARR threshold, both from our existing customers expanding their usage of our platform and from our sales to larger customers. We believe this is an important indicator of our ability to continue to successfully move up-market.

Current wording

Customers Generating Over $50,000, $250,000, and $500,000 of ARR. We calculate our number of customers generating over $50,000, $250,000, and $500,000, respectively, of ARR (as defined below) as those customers that have an average ARR of greater than $50,000, $250,000, or $500,000, respectively, over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination. We believe the number of customers generating over $50,000 $250,000, and $500,000, respectively, of ARR are key performance metrics to help investors and others understand and evaluate our results of operations in the same manner as our management team, as they are indicators of our ability to grow the number of customers that are exceeding these ARR thresholds, both from our existing customers expanding their usage of our platform and from our sales to larger customers. We believe this is an important indicator of our ability to continue to successfully move up-market.

Previous wording

As of June 30, 2026, we had 4,477 customers generating over $50,000 of ARR, compared to 3,291 customers generating over $50,000 of ARR as of June 30, 2025, representing growth of 36% year-over-year.

Current wording

As of September 30, 2026, we had 4,725 customers generating over $50,000 of ARR, compared to 3,563 customers generating over $50,000 of ARR as of September 30, 2025, representing growth of 33% year-over-year.

Previous wording

As of June 30, 2026 and 2025, our NRR was 109% and 108%, respectively. The increase in this metric from June 30, 2025 to June 30, 2026 was largely driven by expansion of existing customer plans and cross-selling additional offerings.

Current wording

As of September 30, 2026 and 2025, our NRR was 108% and 109%, respectively. The decrease in this metric from September 30, 2025 to September 30, 2026 was largely driven by lapping of prior year pricing changes.

Previous wording

Generally, demand for our services increases during the fourth quarter as our customers run more marketing campaigns and deploy marketing spend as a result of increased consumer spending patterns during the holiday shopping season. This is specifically prominent within the retail and eCommerce sector in which the majority of our customers operate today. Given our revenue model allows our customers to scale usage as needed, our sequential revenue growth has been historically stronger in the fourth quarter of each year compared to the revenue growth we see in other quarters. Our customers utilize the text messaging offering in particular during the holidays; as such, to the extent that the text messaging offering grows in proportion to our other channels, we expect that we would see further seasonality. While our profile-based pricing structure helps reduce the impact of seasonality on our revenue, we believe seasonality may continue to impact our quarterly results.

Current wording

Generally, demand for our services increases during the fourth quarter as our customers run more marketing campaigns and deploy marketing spend as a result of increased consumer spending patterns during the holiday shopping season. This is specifically prominent within the retail and eCommerce sector in which the majority of our customers operate today. Given our revenue model allows our customers to scale usage as needed, our sequential revenue growth has been historically stronger in the fourth quarter of each year compared to the revenue growth we see in other quarters. Our customers utilize our text messaging offering in particular during the holidays; as such, to the extent that our text messaging offering grows in proportion to our other channels, we expect that we would see further seasonality. While our profile-based pricing structure helps reduce the impact of seasonality on our revenue, we believe seasonality may continue to impact our quarterly results.

Previous wording

We expect our gross profit to increase over time due to an increase in revenue. We expect our gross margin to decline modestly in the near term as the volume of text messages and WhatsApp messages sent through our platform increases and as our cloud-based infrastructure costs and outbound communication sending costs increase as our customers increase usage of our platform and capabilities. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin offerings by our customers, and ongoing efforts to drive infrastructure efficiency.

Current wording

We expect our gross profit to increase over time due to an increase in revenue. We expect our gross margin to decline modestly in the near term as the volume of text messages and WhatsApp messages sent through our platform increases and as our outbound communication sending costs and cloud-based infrastructure costs increase as our customers increase usage of our platform and capabilities. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin offerings by our customers, and ongoing efforts to drive infrastructure efficiency.

Previous wording

Our general and administrative expenses consist of employee-related costs including payroll, benefits, bonuses, and stock-based compensation in general corporate functions, such as procurement, accounting and finance, tax, legal, project management, and human resources, as well as allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology. Credit card processing fees are also part of general and administrative expenses.

Current wording

Our general and administrative expenses consist of employee-related costs including payroll, benefits, bonuses, and stock-based compensation; credit card processing fees; general corporate functions, such as procurement, accounting and finance, tax, legal, project management, and human resources; and allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology.

Previous wording

Three and Six Months Ended June 30, 2026 Compared to the Three and Six Months Ended June 30, 2025

Current wording

Three and Nine Months Ended September 30, 2026 Compared to the Three and Nine Months Ended September 30, 2025

Previous wording

Revenue for the three months ended June 30, 2026 increased by $77.5 million or 26.4%, to $370.6 million compared to $293.1 million for the three months ended June 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the three months ended June 30, 2026, sales to existing customers accounted for approximately 42% of the increase in revenue while approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the three months ended September 30, 2026 increased by $76.3 million or 24.6%, to $387.2 million compared to $310.9 million for the three months ended September 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the three months ended September 30, 2026, sales to existing customers accounted for approximately 40% of the increase in revenue while approximately 60% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Revenue for the six months ended June 30, 2026 increased by $155.6 million or 27.2%, to $728.6 million compared to $572.9 million for the six months ended June 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the six months ended June 30, 2026, sales to existing customers accounted for approximately 43% of the increase in revenue while approximately 57% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the nine months ended September 30, 2026 increased by $232.0 million or 26.2%, to $1,115.8 million compared to $883.8 million for the nine months ended September 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the nine months ended September 30, 2026, sales to existing customers accounted for approximately 42% of the increase in revenue while approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Cost of revenue for the three months ended June 30, 2026 increased by $30.2 million or 42.4%, to $101.5 million compared to $71.2 million for the three months ended June 30, 2025. This was primarily due to an increase of approximately $14.6 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $8.0 million in cloud-based infrastructure costs, $3.0 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $2.0 million in amortization from capitalized software costs, and $2.0 million in technology expenses.

Current wording

Cost of revenue for the three months ended September 30, 2026 increased by $23.7 million or 31.1%, to $99.8 million compared to $76.1 million for the three months ended September 30, 2025. This was primarily due to an increase of approximately $14.6 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $3.0 million in technology expenses, $2.1 million in cloud-based infrastructure costs, $2.0 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, and $1.7 million in amortization from capitalized software costs.

Previous wording

Cost of revenue for the six months ended June 30, 2026 increased by $51.7 million or 37.2%, to $190.6 million compared to $138.9 million for the six months ended June 30, 2025. This was primarily due to an increase of approximately $26.3 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $10.7 million in cloud-based infrastructure costs, $6.6 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $3.9 million in amortization from capitalized software costs, and $3.3 million in technology expenses.

Current wording

Cost of revenue for the nine months ended September 30, 2026 increased by $75.3 million or 35.0%, to $290.4 million compared to $215.1 million for the nine months ended September 30, 2025. This was primarily due to an increase of approximately $41.0 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $12.8 million in cloud-based infrastructure costs, $8.5 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $6.3 million in technology expenses, and $5.6 million in amortization from capitalized software costs.

Previous wording

Gross profit for the three months ended June 30, 2026 increased by $47.2 million or 21.3%, to $269.1 million compared to $221.9 million for the three months ended June 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Current wording

Gross profit for the three months ended September 30, 2026 increased by $52.6 million or 22.4%, to $287.4 million compared to $234.7 million for the three months ended September 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Previous wording

Gross profit for the six months ended June 30, 2026 increased by $104.0 million or 24.0%, to $538.0 million compared to $434.0 million for the six months ended June 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Current wording

Gross profit for the nine months ended September 30, 2026 increased by $156.6 million or 23.4%, to $825.4 million compared to $668.7 million for the nine months ended September 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Previous wording

Selling and marketing expenses for the three months ended June 30, 2026 increased by $12.7 million or 10.0%, to $139.3 million compared to $126.6 million for the three months ended June 30, 2025. This increase was primarily due to an increase of approximately $5.6 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $3.3 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $2.2 million in partnership-related expenses across our ecosystem, and $1.5 million in professional services.

Current wording

Selling and marketing expenses for the three months ended September 30, 2026 increased by $16.0 million or 12.6%, to $143.7 million compared to $127.7 million for the three months ended September 30, 2025. This increase was primarily due to an increase of approximately $5.8 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $5.1 million in professional services, $3.9 million in marketing expenses associated with events and our advertising campaigns across multiple channels of media, and $1.9 million in partnership-related expenses across our ecosystem.

Previous wording

Selling and marketing expenses for the six months ended June 30, 2026 increased by $23.2 million or 9.3%, to $273.4 million compared to $250.2 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $16.0 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $3.9 million in partnership-related expenses across our ecosystem, and $3.1 million in professional services, $1.2 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $1.2 million in technology expenses, partially offset by a decrease of $2.1 million in stock-based compensation driven by forfeitures of unvested equity awards and the completion of vesting of certain equity awards.

Current wording

Selling and marketing expenses for the nine months ended September 30, 2026 increased by $39.2 million or 10.4%, to $417.0 million compared to $377.8 million for the nine months ended September 30, 2025. This increase was primarily due to an increase of approximately $21.8 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $8.2 million in professional services, $5.8 million in partnership-related expenses across our ecosystem, $5.1 million in marketing expenses associated with events and our advertising campaigns across multiple channels of media, and $1.8 million in technology expenses, partially offset by a decrease of $3.2 million in stock-based compensation driven by forfeitures of unvested equity awards and the completion of vesting of certain equity awards.

Previous wording

Research and development costs for the six months ended June 30, 2026 increased by $30.2 million or 21.3%, to $172.0 million compared to $141.8 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $14.1 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $13.8 million in technology expenses, and $2.0 million in stock-based compensation due to the vesting of RSUs.

Current wording

Research and development costs for the three months ended September 30, 2026 increased by $24.9 million or 34.2%, to $97.5 million compared to $72.7 million for the three months ended September 30, 2025. This increase was primarily due to an increase of approximately $10.7 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $8.7 million in technology expenses, and $4.8 million in amortization of intangibles acquired in acquisition.

Previous wording

Research and development costs for the three months ended June 30, 2026 increased by $19.5 million or 26.9%, to $91.9 million compared to $72.5 million for the three months ended June 30, 2025. This increase was primarily due to an increase of approximately $9.3 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $8.9 million in technology expenses, and $1.2 million in stock-based compensation due to the vesting of RSUs.

Current wording

Research and development costs for the nine months ended September 30, 2026 increased by $55.0 million or 25.6%, to $269.5 million compared to $214.5 million for the nine months ended September 30, 2025. This increase was primarily due to an increase of approximately $24.8 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $22.2 million in technology expenses, $4.8 million in amortization of intangibles acquired in acquisition, and $2.6 million in stock-based compensation due to the vesting of RSUs.

Previous wording

General and administrative expenses for the three months ended June 30, 2026 decreased by $1.3 million or 2.4%, to $52.8 million compared to $54.1 million for the three months ended June 30, 2025. This decrease was primarily due to a decrease of $12.8 million in salaries and related personnel expenses as a result of lower payroll taxes from decreased option exercises and decreased allocatable costs, partially offset by an increase of approximately $4.5 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $2.1 million in technology expenses, $2.1 million in professional services, and $1.9 million in payment processing fees related to increased volume of customer transactions.

Current wording

General and administrative expenses for the three months ended September 30, 2026 increased by $5.4 million or 12.0%, to $50.7 million compared to $45.3 million for the three months ended September 30, 2025. This increase was primarily due to an increase of approximately $2.5 million in technology expenses, $2.0 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $1.7 million in payment processing fees related to increased volume of customer transactions, and $1.1 million in professional services partially offset by a decrease of $2.1 million in salaries and related personnel expenses as a result of a decrease in headcount and allocatable costs.

Previous wording

General and administrative expenses for the six months ended June 30, 2026 increased by $8.8 million or 9.0%, to $105.9 million compared to $97.1 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $8.4 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $4.2 million in technology expenses, $4.2 million in professional services, and $3.7 million in payment processing fees related to increased volume of customer transactions, partially offset by a decrease of $11.4 million in salaries and related personnel expenses as a result of lower payroll taxes from decreased option exercises and decreased allocatable costs.

Current wording

General and administrative expenses for the nine months ended September 30, 2026 increased by $14.2 million or 10.0%, to $156.6 million compared to $142.4 million for the nine months ended September 30, 2025. This increase was primarily due to an increase of approximately $10.4 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $6.7 million in technology expenses, and $5.4 million in payment processing fees related to increased volume of customer transactions, and $5.3 million in professional services, partially offset by a decrease of $13.5 million in salaries and related personnel expenses as a result of lower payroll taxes from decreased option exercises and decreased allocatable costs.

Previous wording

Other expense, net, for the six months ended June 30, 2026 decreased by $0.6 million or 39.8% to $(0.9) million compared to $(1.6) million for the six months ended June 30, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.

Current wording

Other expense, net, for the three months ended September 30, 2026 increased by $0.1 million or 153.9% to $(0.2) million compared to $(0.1) million for the three months ended September 30, 2025. This increase was primarily due to unfavorable foreign exchange fluctuations.

Previous wording

Other expense, net, for the three months ended June 30, 2026 decreased by $0.4 million or 43.8% to $(0.5) million compared to $(0.9) million for the three months ended June 30, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.

Current wording

Other expense, net, for the nine months ended September 30, 2026 decreased by $0.5 million or 29.3% to $(1.2) million compared to $(1.7) million for the nine months ended September 30, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.

Previous wording

Since our inception through June 30, 2026, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our IPO in September 2023. As of June 30, 2026, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $833.4 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $605.0 million in money market funds.

Current wording

Since our inception through September 30, 2026, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our IPO in September 2023. As of September 30, 2026, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $706.2 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $484.2 million in money market funds.

Previous wording

Net cash provided by operating activities of $128.2 million for the six months ended June 30, 2026 was primarily attributable to a net income of $0.2 million adjusted for non-cash charges of $169.0 million and net cash outflows of $41.1 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $93.2 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $20.4 million of amortization related to deferred contract acquisition costs, $14.3 million of operating lease costs, and $13.6 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $40.5 million increase in deferred contract acquisition costs related to higher sales commissions resulting from our increased revenues, a $19.7 million increase in accounts receivable due to an increase in customer billings, a $12.7 million decrease in operating lease liabilities due to payments related to our operating lease obligations, and a

Current wording

Net cash provided by operating activities of $180.8 million for the nine months ended September 30, 2026 was primarily attributable to a net income of $0.9 million adjusted for non-cash charges of $256.8 million and net cash outflows of $76.8 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $135.3 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $32.0 million of amortization related to deferred contract acquisition costs, $26.3 million of depreciation and amortization expense, and $21.6 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $61.3 million increase in deferred contract acquisition costs related to higher sales commissions resulting from our increased revenues, a $22.8 million increase in accounts receivable due to an increase in customer billings, and a $20.9 million decrease in operating lease liabilities due to payments related to our operating lease obligations. The cash outflow was offset by cash inflows primarily from a $22.6 million increase in deferred revenue resulting from increased billings for subscriptions, a $5.4 million increase in accrued expenses and accounts payable due to timing of payments, and a $2.0 million decrease in prepaid expenses and other assets.

Previous wording

Net cash provided by operating activities of $70.1 million for the six months ended June 30, 2025 was primarily attributable to a net loss of $38.4 million adjusted for non-cash charges of $146.5 million and net cash outflows of $38.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $83.7 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $13.8 million of amortization related to deferred contract acquisition costs, $12.4 million of operating lease costs, $8.7 million of depreciation and amortization expense, and $1.5 million of bad debt expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $22.6 million increase in deferred contract acquisition costs related to an increase in sales commissions resulting from the increase in revenues, a $17.3 million increase in accounts receivable due to an increase in customer billings, a $11.3 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $4.5 million increase in prepaid expenses and other assets, and a $0.3 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $18.2 million increase in deferred revenue resulting from increased billings for subscriptions.

Current wording

Net cash provided by operating activities of $124.8 million for the nine months ended September 30, 2025 was primarily attributable to a net loss of $38.8 million adjusted for non-cash charges of $217.1 million and net cash outflows of $53.5 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $124.2 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $21.5 million of amortization related to deferred contract acquisition costs, $18.2 million of operating lease costs, $13.1 million of depreciation and amortization expense, and $1.9 million of bad debt expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $35.2 million increase in deferred contract acquisition costs related to an increase in sales commissions resulting from the increase in revenues, a $20.0 million increase in accounts receivable due to an increase in customer billings, a $17.5 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $1.7 million increase in prepaid expenses and other assets, and a $1.9 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $23.4 million increase in deferred revenue resulting from increased billings for subscriptions.

Previous wording

Net cash used in investing activities of $26.7 million for the six months ended June 30, 2026 consisted primarily of $18.2 million purchases of property and equipment and $8.0 million of capitalized software development costs.

Current wording

Net cash used in investing activities of $54.6 million for the nine months ended September 30, 2026 consisted primarily of $26.2 million purchases of property and equipment, $15.3 million related to the acquisition of intangible assets, and $12.6 million of capitalized software development costs.

Previous wording

Net cash used in investing activities of $15.0 million for the six months ended June 30, 2025 consisted of $10.3 million of capitalized software development costs and $4.7 million purchases of property and equipment.

Current wording

Net cash used in investing activities of $24.8 million for the nine months ended September 30, 2025 consisted of $15.7 million of capitalized software development costs and $7.0 million purchases of property and equipment, and $2.0 million of business acquisition costs.

Previous wording

Net cash used in financing activities was $333.7 million for the six months ended June 30, 2026 and primarily consisted of approximately $333.6 million used for payments relating to our share repurchase program, including the accelerated share repurchase, and $4.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting offset by $4.0 million of proceeds from our employee stock purchase plan and $0.8 million of proceeds from the exercise of stock options.

Current wording

Net cash used in financing activities was $485.7 million for the nine months ended September 30, 2026 and primarily consisted of approximately $484.4 million used for payments relating to our share repurchase program, including the accelerated share repurchase, and $6.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting offset by $4.8 million of proceeds from our employee stock purchase plan and $0.9 million of proceeds from the exercise of stock options.

Previous wording

Net cash used in financing activities was $1.4 million for the six months ended June 30, 2025 and primarily consisted of approximately $6.1 million of proceeds from our employee stock purchase plan and $1.5 million of proceeds from the exercise of stock options offset by $8.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Current wording

Net cash used in financing activities was $1.6 million for the nine months ended September 30, 2025 and primarily consisted of approximately $9.7 million of proceeds from our employee stock purchase plan and $1.7 million of proceeds from the exercise of stock options offset by $13.1 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Previous wording

We expect a continued increase in our cash balances as our business continues to grow. We expect to continue to diversify our cash management strategy to primarily include money market funds, highly-liquid debt instruments of the U.S. government and its agencies, senior corporate bonds, and commercial paper to reduce our global exposure on banking deposits.

Current wording

We expect continued growth in cash provided by operating activities as our business continues to grow. We expect to continue to diversify our cash management strategy to primarily include money market funds, highly-liquid debt instruments of the U.S. government and its agencies, senior corporate bonds, and commercial paper to reduce our global exposure on banking deposits.

Previous wording

On March 2, 2026, the Company announced that its Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may repurchase up to $500.0 million of its issued and outstanding shares of Series A common stock. Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, or any combination of the foregoing, and in compliance with applicable securities laws and other applicable requirements. As part of the Share Repurchase Program, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a third-party investment bank (the “Dealer”) to repurchase $100.0 million of shares of its Series A common stock. Under the ASR Agreement, on March 3, 2026, the Company paid the Dealer $100.0 million and received an initial delivery of 4,307,869 shares of Series A common stock at a price of $18.87 per share, representing approximately 75% of the total value of shares to be received under the ASR Agreement.

Current wording

On March 2, 2026, we announced that our board of directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which we may repurchase up to $500.0 million of our issued and outstanding shares of Series A common stock. Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, or any combination of the foregoing, and in compliance with applicable securities laws and other applicable requirements. As part of the Share Repurchase Program, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a third-party investment bank (the “Dealer”) to repurchase $100.0 million of shares of our Series A common stock. Under the ASR Agreement, on March 3, 2026, we paid the Dealer $100.0 million and received an initial delivery of 4,307,869 shares of Series A common stock at a price of $18.87 per share, representing approximately 75% of the total value of shares to be received under the ASR Agreement.