What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-11 compared with 2026-05-08 · 150 added, 72 removed, 249 unchanged (47% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read together with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited financial statements and notes thereto as of and for the year ended December 31, 2025 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our final prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”) on April 17, 2026 (the “Prospectus”) that forms a part of the Company’s Registration Statement on Form S-1 (File No.

The following discussion and analysis of our financial condition and results of operations should be read together with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited financial statements and notes thereto as of and for the year ended December 31, 2025 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our final prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) under the Securities Act of 1933, as amended on April 17, 2026 (the “Prospectus”) that forms a part of our Registration Statement on Form S-1 (File No.

333-294697) (the “Registration Statement”).

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Unless the context otherwise requires, all references in this section to the “Company”, “Alamar”, “we”, “our” or “us” refers to the business of Alamar Biosciences, Inc.

and its subsidiary.

and its subsidiaries.

We are a commercial-stage proteomics company establishing a gold standard in protein detection and analysis.

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Our customers include top global research and academic institutions, biopharmaceutical companies, contract research organizations and service labs.

We have also established multiple multi-million dollar collaborations with renowned research foundations to help support the development of our ARGO HT/DX instrument and the discovery of biomarkers in neurodegenerative disease.

We have also established multiple collaborations with renowned research foundations to help support the development of our ARGO HT/DX instrument and the discovery of biomarkers in neurodegenerative disease.

We are a trusted partner to our customers, with a market reputation built on our deep understanding of, and ability to address, their evolving needs.

For the three months ended March 31, 2026, 56% of our sales revenue was generated from academic institutions, 39% was generated from biopharmaceutical companies and 4% was generated from distributors.

For the three months ended June 30, 2026, 52% of our sales revenue was generated from academic institutions, 42% was generated from biopharmaceutical companies and 6% was generated from distributors.

We sell our products primarily through our direct sales channels in North America, Europe, and China, which together account for the majority of our revenue.

In addition, we have established distribution agreements in Australia, portions of Eastern Europe, India, Japan, Singapore and South Korea.

In addition, we have established distribution agreements in Australia, portions of Eastern Europe, Middle East, India, Japan, Singapore and South Korea.

Our products are currently sold for research use only.

For the three months ended March 31, 2026, 62% of sales were from the Americas region, 29% was from the Europe and in the Middle East & Africa (“EMEA”) region and 9% was from the Asia-Pacific (“APAC”).

For the three months ended June 30, 2026, 69% of sales were from the Americas region, 22% was from the Europe and in the Middle East & Africa (“EMEA”) region and 9% was from the Asia-Pacific (“APAC”) region.

We devote a significant portion of our resources to research and development.

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Since our inception in 2018, we have incurred net losses each year.

Net losses were $21.3 million and $7.7 million in the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, we had an accumulated deficit of $190.1 million and unrestricted cash and cash equivalents of $64.6 million.

Net losses were $13.2 million and $7.0 million in the three months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, we had an accumulated deficit of $203.3 million and unrestricted cash, cash equivalents and short-term investments of $250.1 million.

Substantially all of our net losses have resulted from costs incurred in connection with our research and development efforts and, to a lesser extent, from selling, general and administrative costs associated with our operations.

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Revenue is recognized as the services are rendered over the contract term beginning after the one-year limited warranty.

We expect that our maintenance and repair services revenue to grow as the initial warranty period expires and as our instrument installed base grows.

As our platform continues to gain increased adoption and the number of publications covering our products increase, we expect that our TAP services grow at a slower rate than other areas of our business.

We expect our maintenance and repair services revenue to grow as the initial warranty period expires and as our instrument installed base grows.

As our platform continues to gain increased adoption and the number of publications covering our products increases, we expect our TAP services to grow at a slower rate than other areas of our business.

Revenue mix and gross margin

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We aim to mitigate downward pressure on our average selling prices by increasing the value proposition offered by the performance of our instruments and consumables, primarily by, for example, expanding the applications for our instruments, increasing the quantity and quality of data that can be obtained using our consumables, and improving the user experience.

In the near term, as we expect increased demand for our products, we expect to increase costs for the expansion of manufacturing, warehousing and product distribution facilities which could negatively impact on our gross margins as we add capacity in advance of full utilization.

In the near term, as we expect increased demand for our products, we expect to increase costs for the expansion of manufacturing, warehousing and product distribution facilities which could negatively impact our gross margins as we add capacity in advance of full utilization.

In addition to the impact of competing products entering the market, the future margin profiles of our instruments and consumables and any royalties, may impact our gross margins.

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Results of operations

Comparison of the three months ended March 31, 2026 and 2025

Comparison of the three months ended June 30, 2026 and 2025

Our results of operations for each of the periods indicated are summarized in the table below:

Three months ended March 31,

Three Months Ended June 30,

(dollars in thousands)

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Net loss before income tax

Provision (benefit) for income taxes

N/M – Not meaningful

(1) - Includes stock-based compensation expense as follows:

Three Months Ended June 30,

(in thousands)

Cost of product revenue

Cost of service and other revenue

Research and development

Selling, general and administrative

Total stock-based compensation expense

Three Months Ended June 30,

(dollars in thousands)

Total product revenue

Total service and other revenue

Total revenue

Revenue was $29.4 million in the three months ended June 30, 2026 compared to $16.2 million in the three months ended June 30, 2025.

Product revenue, which is comprised of instrument revenue and consumables revenue, increased by $11.2 million, or 93%, to $23.3 million in the three months ended June 30, 2026, compared to $12.0 million in the three months ended June 30, 2025.

Instrument revenue increased by $2.0 million, or 35%, primarily due to the increase of the number of instruments delivered.

Consumables revenue increased by $9.2 million, or 147%, due to increased demand for our multiplex panel kits which was driven by growth of our instrument installed base.

Service and other revenue increased by $2.0 million, or 49%, to $6.2 million in the three months ended June 30, 2026, compared to $4.1 million in the three months ended June 30, 2025.

The increase was primarily due to increased TAP services, including services to develop custom assays.

Cost of revenue

Cost of revenue was $11.7 million in the three months ended June 30, 2026 compared to $7.6 million in the three months ended June 30, 2025.

Cost of product revenue increased by $3.4 million, or 52%, to $9.9 million in the three months ended June 30, 2026, compared to $6.5 million in the three months ended June 30, 2025.

The increase was primarily driven by increased sales volume of both instruments and consumables, partially offset by realization of manufacturing efficiencies as consumable production has scaled.

Cost of service and other revenue increased by $0.8 million, or 70%, to $1.9 million in the three months ended June 30, 2026, compared to $1.1 million in the three months ended June 30, 2025.

The increase was primarily due to an increase in TAP services.

Gross profit and gross margin

Gross profit was $17.7 million in the three months ended June 30, 2026, compared to $8.6 million in the three months ended June 30, 2025.

Gross margin was 60% in the three months ended June 30, 2026, compared to 53% in the three months ended June 30, 2025.

The increase in gross margin was primarily attributable to the realization of manufacturing efficiencies for consumables due to larger production volumes and a change in product mix (with a greater proportion of revenue derived from consumables, which have higher gross margins than instruments and services).

Operating expenses

Research and development

Research and development expense increased by $4.9 million, or 55%, to $13.8 million in the three months ended June 30, 2026, compared to $8.9 million in the three months ended June 30, 2025.

The increase was primarily attributable to a $2.6 million increase in lab supply costs to expand our consumable product offerings, as well as $2.3 million increase in salaries and benefits arising from the increase in personnel headcount, which resulted in higher

compensation-related costs and higher consulting costs associated with technology and product development.

Compensation-related costs include a $0.6 million increase in stock-based compensation expense.

Selling, general and administrative

Selling, general and administrative expense increased by $9.8 million, or 129%, to $17.4 million in the three months ended June 30, 2026, compared to $7.6 million in the three months ended June 30, 2025.

The increase was primarily attributable to a $6.0 million increase in salaries and benefits arising from the increase in personnel headcount which resulted in higher compensation-related costs associated with the growth of our sales, marketing and support teams as well as other functions and a $2.5 million increase in professional services costs for legal and accounting services.

Compensation-related costs include a $1.9 million increase in stock-based compensation expense.

Interest income, net

Interest income, net increased by $1.2 million, or 198%, to $1.9 million in the three months ended June 30, 2026, compared to $0.6 million in the three months ended June 30, 2025.

The increase was primarily attributable to higher average invested balances throughout the periods arising from IPO proceeds.

Interest expense

Interest expense increased by $0.2 million, or 367%, to $0.2 million in the three months ended June 30, 2026, compared to less than $0.1 million in the three months ended June 30, 2025.

The increase was primarily attributable to our term loan balance of $10.0 million outstanding under the amended SVB Loan Agreement during the three months ended June 30, 2026, which was drawn in September 2025.

Loss on remeasurement of convertible notes

Loss on remeasurement of convertible notes was $1.4 million in the three months ended June 30, 2026.

The loss was due to the increase in the fair value of the convertible notes prior to conversion upon IPO.

Other (expense) income, net

Changes in other (expense) income, net are primarily driven by realized and unrealized gains from foreign currency rate measurement fluctuations.

Comparison of the six months ended June 30, 2026 and 2025

Our results of operations for each of the periods indicated are summarized in the table below:

Six Months Ended June 30,

(dollars in thousands)

Product revenue

Service and other revenue

Total revenue

Cost of revenue:

Cost of product revenue (1)

Cost of service and other revenue (1)

Total cost of revenue

Operating expenses:

Research and development (1)

Selling, general and administrative (1)

Total operating expenses

Loss from operations

Interest income, net

Interest expense

Loss on remeasurement of convertible notes

Other (expense) income, net

Net loss before income tax

Provision for income taxes

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(1) - Includes stock-based compensation expense as follows:

Three months ended March 31,

Six Months Ended June 30,

(in thousands)

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Total stock-based compensation expense

Three months ended March 31,

Six Months Ended June 30,

(dollars in thousands)

Total product revenue

Total services and other revenue

Total service and other revenue

Total revenue

Revenue was $26.0 million in the three months ended March 31, 2026 compared to $13.1 million in the three months ended March 31, 2025.

Product revenue, which is comprised of instrument revenue and consumables revenue, increased by $12.2 million, or 133%, to $21.3 million in the three months ended March 31, 2026, compared to $9.2 million in the three months ended March 31, 2025.

Revenue was $55.5 million in the six months ended June 30, 2026 compared to $29.3 million in the six months ended June 30, 2025.

Product revenue, which is comprised of instrument revenue and consumables revenue, increased by $23.4 million, or 110%, to $44.6 million in the six months ended June 30, 2026, compared to $21.2 million in the six months ended June 30, 2025.

Instrument revenue increased by $5.3 million, or 53%, primarily due to the increase of the number of instruments delivered.

Consumables revenue increased by $18.2 million, or 161%, due to increased demand for our multiplex panel kits which was driven by growth of our instrument installed base.

A portion of the increase was also attributable to a slight increase in the average selling price of our consumables.

Service and other revenue increased by $0.8 million, or 20%, to $4.7 million in the three months ended March 31, 2026, compared to $3.9 million in the three months ended March 31, 2025.

The increase was primarily due to increased TAP services, including services to develop custom assays, as well as higher volumes of instrument maintenance service agreements.

Service and other revenue increased by $2.8 million, or 35%, to $10.9 million in the six months ended June 30, 2026, compared to $8.0 million in the six months ended June 30, 2025.

The increase was primarily due to increased TAP services, including services to develop custom assays.

Cost of revenue

Cost of revenue was $11.6 million in the three months ended March 31, 2026 compared to $6.7 million in the three months ended March 31, 2025.

Cost of product revenue increased by $4.4 million, or 83%, to $9.8 million in the three months ended March 31, 2026, compared to $5.4 million in the three months ended March 31, 2025.

Cost of revenue was $23.3 million in the six months ended June 30, 2026 compared to $14.3 million in the six months ended June 30, 2025.

Cost of product revenue increased by $7.8 million, or 66%, to $19.7 million in the six months ended June 30, 2026, compared to $11.9 million in the six months ended June 30, 2025.

The increase was primarily driven by increased sales volume of both instruments and consumables, partially offset by realization of manufacturing efficiencies as consumable production has scaled.

Cost of service and other revenue increased by $0.4 million, or 33%, to $1.8 million in the three months ended March 31, 2026, compared to $1.3 million in the three months ended March 31, 2025.

The increase was primarily due to an increase in TAP services and services provided under instrument maintenance service agreements.

Cost of service and other revenue increased by $1.2 million, or 49%, to $3.6 million in the six months ended June 30, 2026, compared to $2.4 million in the six months ended June 30, 2025.

The increase was primarily due to an increase in TAP services.

Gross profit and gross margin

Gross profit was $14.5 million in the three months ended March 31, 2026, compared to $6.4 million in the three months ended March 31, 2025.

Gross margin was 56% in the three months ended March 31, 2026, compared to 49% in the three months ended March 31, 2025.

The increase in gross margin was primarily attributable to the realization of manufacturing efficiencies for consumables due to larger production volumes, higher average selling prices for both instruments and consumables, and a change in product mix (with a greater proportion of revenue derived from consumables, which have higher gross margins than instruments).

Gross profit was $32.2 million in the six months ended June 30, 2026, compared to $15.0 million in the six months ended June 30, 2025.

Gross margin was 58% in the six months ended June 30, 2026, compared to 51% in the six months ended June 30, 2025.

Operating expenses

Research and development

Research and development expense increased by $4.7 million, or 57%, to $13.0 million in the three months ended March 31, 2026, compared to $8.3 million in the three months ended March 31, 2025.

The increase was primarily attributable to an increase in lab supply costs to expand our consumable product offerings, as well as 55% increase in

personnel headcount, which resulted in higher compensation-related costs and higher consulting costs associated with technology and product development.

Research and development expense increased by $9.6 million, or 56%, to $26.8 million in the six months ended June 30, 2026, compared to $17.2 million in the six months ended June 30, 2025.

The increase was primarily attributable to a $5.0 million increase in lab supply costs to expand our consumable product offerings, as well as $4.0 million increase in salaries and benefits arising from the increase in personnel headcount, which resulted in higher

compensation-related costs and higher consulting costs associated with technology and product development.

Compensation-related costs include a $0.7 million increase in stock-based compensation expense.

Selling, general and administrative

Selling, general and administrative expense increased by $7.1 million, or 108%, to $13.8 million in the three months ended March 31, 2026, compared to $6.6 million in the three months ended March 31, 2025.

The increase was primarily attributable to a 69% increase in personnel headcount which resulted in higher compensation-related costs associated with the growth of our sales, marketing and support teams as well as other functions and increased professional services costs for legal and accounting services.

Selling, general and administrative expense increased by $17.0 million, or 119%, to $31.2 million in the six months ended June 30, 2026, compared to $14.2 million in the six months ended June 30, 2025.

The increase was primarily attributable to a $9.5 million increase in salaries and benefits arising from the increase in personnel headcount which resulted in higher compensation-related costs associated with the growth of our sales, marketing and support teams as well as other functions and a $4.8 million increase in professional services costs for legal and accounting services.

Compensation-related costs include a $2.6 million increase in stock-based compensation expense.

Interest income, net

Interest income, net decreased by $0.2 million, or 31%, to $0.5 million in the three months ended March 31, 2026, compared to $0.8 million in the three months ended March 31, 2025.

The decrease was primarily attributable to lower average invested balances throughout the periods, as funds were utilized to support operating activities as well as a decrease in market interest rates.

Interest income, net increased by $1.0 million, or 70%, to $2.4 million in the six months ended June 30, 2026, compared to $1.4 million in the six months ended June 30, 2025.

The increase was primarily attributable to higher average invested balances throughout the periods arising from IPO proceeds and convertible notes issued.

Interest expense

Interest expense increased by $0.2 million, or 385%, to $0.2 million in the three months ended March 31, 2026, compared to less than $0.1 million in the three months ended March 31, 2025.

The increase was primarily attributable to the Company's term loan balance of $10.0 million outstanding under the amended SVB Loan Agreement during the three months ended March 31, 2026, which was drawn in September 2025.

Interest expense increased by $0.3 million, or 376%, to $0.4 million in the six months ended June 30, 2026, compared to $0.1 million in the six months ended June 30, 2025.

The increase was primarily attributable to the Company's term loan balance of $10.0 million outstanding under the amended SVB Loan Agreement during the six months ended June 30, 2026, which was drawn in September 2025.

Loss on remeasurement of convertible notes

Loss on remeasurement of convertible notes was $8.6 million in the three months ended March 31, 2026.

The loss was due to the increase in the fair value of the convertible notes issued during the three months ended March 31, 2026 resulting from increased proximity to our IPO.

Loss on remeasurement of convertible notes was $10.0 million in the six months ended June 30, 2026.

The loss was due to the increase in the fair value of the convertible notes issued during the six months ended June 30, 2026 resulting from the remeasurement to fair value of the convertible notes at the IPO.

Other (expense) income, net

Changes in other (expense) income, net are primarily driven by realized and unrealized gains from foreign currency rate measurement fluctuations.

Provision for income taxes

Changes in provision for income taxes primarily relates to a foreign tax provision.

Liquidity and capital resources

As of March 31, 2026, we had $64.6 million in unrestricted cash and cash equivalents, $4.9 million in restricted cash, and access to a total of up to $50.0 million of unused committed term loan facility and undrawn revolver balance with Silicon Valley Bank, a division of First Citizens Bank (“SVB”), subject to certain conditions.

Management believes that our cash and cash equivalents at March 31, 2026 and the proceeds from our IPO will be sufficient to fund our current operating plans and meet our anticipated obligations for at least the next 12 months.

As of June 30, 2026, we had $250.1 million in unrestricted cash, cash equivalents and short-term investments, $6.3 million in restricted cash, and access to a total of up to $50.0 million of unused committed term loan facility and undrawn revolver balance with Silicon Valley Bank, a division of First Citizens Bank (“SVB”), subject to certain conditions.

Management believes that our cash, cash equivalents and short-term investments at June 30, 2026 will be sufficient to fund our current operating plans and meet our anticipated obligations for at least the next 12 months.

Since inception, our principal sources of liquidity have been proceeds from the sale of our equity securities, revenue from sales of our products and services, and, to a lesser extent, borrowings from loan facilities.

As of March 31, 2026, we had an accumulated deficit of $190.1 million, attributable to ongoing operating losses as business activities expanded toward commercialization.

As of June 30, 2026, we had an accumulated deficit of $203.3 million, attributable to ongoing operating losses as business activities expanded toward commercialization.

On July 11, 2024, we entered into a loan and security agreement with SVB which permitted us to draw term loan advances of up to an aggregate sum of $35.0 million under Tranche A and Tranche B.

This amount remained undrawn until the agreement was amended in September 2025.

On September 19, 2025, we entered into an amendment to the SVB Loan Agreement (the “Amendment”), which modified the availability, maturity, and certain other terms of the loan facility.

This amount remained undrawn

until the agreement was amended in September 2025.

On September 19, 2025, we entered into an amendment to the loan and security agreement (the “Amendment”), which modified the availability, maturity, and certain other terms of the loan facility.

As a result of the Amendment, the total borrowing capacity increased to $75.0 million, consisting of a $10.0 million revolving line of credit and up to three tranches of term loan borrowings:

Tranche 1, up to $35.0 million

available through June 30, 2027, Tranche 2, up to $15.0 million available through June 30, 2027 if we have achieved at least $40.0 million in revenue on a trailing six month basis on or prior to December 31, 2026, and an uncommitted accordion of $15.0 million we may request through June 30, 2028 subject to SVB’s discretion.

Tranche 1, up to $35.0 million available through June 30, 2027, Tranche 2, up to $15.0 million available through June 30, 2027 if we have achieved at least $40.0 million in revenue on a trailing six month basis on or prior to December 31, 2026, and an uncommitted accordion of $15.0 million we may request through June 30, 2028 subject to SVB’s discretion.

These borrowings on the term loan are also conditional on maintaining ongoing covenant compliance.

Borrowings on the line of credit are also subject to a borrowing base limitation of 85% of our eligible accounts receivable.

Upon signing the Amendment, we borrowed $10.0 million under the loan facility as required and issued a warrant to purchase 28,685 shares of our Class B common stock to SVB.

Borrowings under the SVB Loan Agreement mature on June 1, 2029 or on June 1, 2030 if certain revenue and compliance criteria are met, and the revolver matures on September 19, 2028.

Additional details of the SVB Loan Agreement are included in Note 7 - Financing arrangements to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Upon signing the Amendment, we borrowed $10.0 million under the loan facility as required and issued a warrant to purchase 28,685 shares of our Class B common stock to SVB, which automatically became exercisable for shares of common stock upon the Redesignation.

Borrowings under the loan and security agreement mature on June 1, 2029 or on June 1, 2030 if certain revenue and compliance criteria are met, and the revolver matures on September 19, 2028.

Additional details of the loan and security agreement are included in Note 7 — Financing arrangements to our consolidated financial statements included in our Prospectus.

On August 6, 2026, we entered into a Third Amendment to Loan and Security Agreement with SVB, which refinanced and replaced our existing $10.0 million term loan and $10.0 million revolving line of credit with a single revolving credit facility of up to $60.0 million (with the outstanding $10.0 million previously drawn under the term loan reallocated as an advance under the new revolving line), together with an uncommitted accordion feature of up to an additional $40.0 million available at SVB's sole discretion, for total potential borrowing capacity of up to $100.0 million.

The facility matures on July 1, 2029, with no scheduled amortization prior to maturity.

On January 8, 2026, we issued unsecured convertible loan notes (the “Convertible Notes”) to certain investors in an aggregate principal amount of $56.5 million.

Upon the closing of our IPO, the Convertible Notes automatically converted into 3,910,025 shares of the Company's common stock.

Upon the closing of our IPO, the Convertible Notes automatically converted into 3,910,025 shares of our common stock.

On April 20, 2026, we completed our IPO and received net proceeds of $197.8 million after deducting underwriter commissions and discounts and estimated offering expenses incurred by the Company.

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We expect to continue incurring substantial operating losses in the near term as we invest in research and development, manufacturing, and the continued commercialization of our platform and NULISA technology, including the ARGO HT instrument as well as development of the ARGO HT/DX instrument.

As of March 31, 2026, we had $64.6 million in unrestricted cash and cash equivalents, as well as an unused committed term loan facility and undrawn revolver balance totaling up to $50.0 million with SVB, subject to certain conditions.

While management believes that our cash and cash equivalents at March 31, 2026 and the proceeds from our IPO will fund our current operating plans and meet our anticipated obligations for at least the next 12 months, substantial additional capital may be required to support longer-term growth and operational objectives.

As of June 30, 2026, we had $250.1 million in unrestricted cash, cash equivalents and short-term investments, as well as an unused committed term loan facility and undrawn revolver balance totaling up to $50.0 million with SVB, subject to certain conditions.

While management believes that our cash, cash equivalents and short-term investments at June 30, 2026 will fund our current operating plans and meet our anticipated obligations for at least the next 12 months, substantial additional capital may be required to support longer-term growth and operational objectives.

Our future capital requirements will depend on various factors, including, but not limited to, the continued scaling efforts for the ARGO HT System and consumables;

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and potential debt service or repayment obligations on our term loan facility.

As of March 31, 2026, contractual obligations for operating leases totaled $47.0 million as further described in Note 10 - Leases to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

As of June 30, 2026, contractual obligations for operating leases that had commenced totaled $79.9 million as further described in Note 10 — Leases to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

We may seek to raise additional capital through public or private equity offerings, additional debt financing, or via strategic collaborations, partnerships, or other arrangements with third parties.

The availability and terms of future financing will depend on a variety of factors, including general economic and market conditions, our operating performance, and investor interest.

The availability and terms of future financing will depend on a variety of factors, including general economic and market conditions, our operating

performance, and investor interest.

Additional funding may not be available on acceptable terms, if at all.

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The following table summarizes our cash flows for each of the periods presented:

Three Months Ended

Six Months Ended June 30,

(in thousands)

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Effect of exchange rate changes on cash and cash equivalents, and restricted cash

Net increase in cash and cash equivalents

Net increase in cash, cash equivalents and restricted cash

Operating activities

Net cash used in operating activities was $20.3 million in the three months ended March 31, 2026.

This was primarily due to a net loss of $21.3 million, adjusted for non-cash items, including loss on remeasurement of convertible notes of $8.6 million, depreciation and amortization expense of $1.2 million, and stock-based compensation expense of $1.5 million.

Net cash used in operating activities was $31.7 million in the six months ended June 30, 2026.

This was primarily due to a net loss of $34.5 million, adjusted for non-cash items, including loss on remeasurement of convertible notes of $10.0 million, stock-based compensation expense of $4.7 million, depreciation and amortization expense of $2.3 million, and non-cash operating lease costs of $1.1 million.

Net cash used in operating activities also reflected net cash outflows of $16.2 million from changes in operating assets and liabilities associated with higher levels of working capital necessary to support the growth of our operations.

This was primarily the result of an increase in accounts receivable of $6.9 million due to our sales growth, an increase in prepaid expenses and other current assets of $2.0 million, an increase in inventory of $1.3 million, a decrease in operating lease liabilities of $1.1 million, and a decrease in accrued expenses and other liabilities of $1.2 million.

This was primarily the result of an increase in accounts receivable of $7.8 million due to our sales growth, an increase in inventory of $7.0 million, a decrease in accrued expenses and other liabilities of $4.4 million, an increase in prepaid expenses and other current assets of $2.9 million, a decrease in operating lease liabilities of $0.9 million, and an increase in other noncurrent assets of $0.8 million.

These decreases in cash flows were partially offset by an increase in accounts payable of $7.7 million.

Net cash used in operating activities was $13.1 million in the three months ended March 31, 2025.

This was primarily due to a net loss of $7.7 million, adjusted for non-cash items, including depreciation and amortization expense of $0.8 million, net accretion and amortization of premiums and discounts on investments of $0.2 million, non-cash operating lease costs of $0.5 million and stock-based compensation expense of $0.6 million.

Net cash used in operating activities was $25.0 million in the six months ended June 30, 2025.

This was primarily due to a net loss of $14.7 million, adjusted for non-cash items, including depreciation and amortization expense of $1.8 million, stock-based compensation expense of $1.3 million, non-cash operating lease costs of $0.9 million, net accretion and amortization of premiums and discounts on investments of $0.2 million, and unrealized foreign exchange gains of $0.5 million.

Net cash used in operating activities also reflected net cash outflows of $13.6 million from changes in operating assets and liabilities associated with higher levels of working capital necessary to support the growth in our operations.

This was primarily the result of a decrease in accrued expenses and other current liabilities of $5.0 million, an increase in inventory of $2.4 million, an increase in accounts receivable of $0.5 million.

These decreases in cash flows were partially offset by an increase in accounts payable of $0.6 million.

This was primarily the result of an increase in inventory of $9.4 million, an increase in accounts receivable of $2.8 million, a decrease in accounts payable of $1.2 million, a decrease in operating lease liabilities of $1.0 million, and a decrease in accrued expenses and other current liabilities of $0.2 million.

These decreases in cash flows were partially offset by a decrease in contract assets of $0.4 million, and a decrease in prepaid expenses and other current and noncurrent assets of $0.5 million.

Investing activities

Net cash used in investing activities was $0.8 million in the three months ended March 31, 2026.

This was primarily due to purchases of property and equipment of $0.6 million and capitalized software development costs of $0.2 million.

Net cash provided by investing activities was $17.0 million in the three months ended March 31, 2025.

This was primarily due to maturities of short-term investments of $18.0 million, partially offset by purchases of property and equipment of $0.6 million and capitalized software development costs of $0.4 million.

Net cash used in investing activities was $121.6 million in the six months ended June 30, 2026.

This was primarily due to purchase of short-term investments of $117.0 million, purchases of property and equipment of $4.2 million and capitalized software development costs of $0.3 million.

Net cash provided by investing activities was $35.0 million in the six months ended June 30, 2025.

This was primarily due to maturities of short-term investments of $42.0 million, partially offset by purchases of short-term investments of $4.9 million, purchases of property and equipment of $1.3 million and capitalized software development costs of $0.8 million.

Financing activities

Net cash provided by financing activities was $55.8 million in the three months ended March 31, 2026.

This was primarily due to proceeds from our Convertible Notes of $56.5 million and proceeds from issuance of common stock

upon exercise of stock options of $1.8 million, partially offset by payment of deferred offering costs of $2.2 million and payment of third-party debt issuance costs of $0.3 million.

Net cash provided by financing activities was $0.2 million in the three months ended March 31, 2025, and consisted primarily of proceeds from issuance of common stock upon exercise of stock options of $0.2 million.

Net cash provided by financing activities was $257.6 million in the six months ended June 30, 2026.

This was primarily due to proceeds from IPO of $204.5 million, proceeds from our Convertible Notes of $56.5 million and proceeds from issuance of common stock upon exercise of stock options of $3.0 million, partially offset by payment of IPO offering issuance costs of $6.2 million and payment of third-party debt issuance costs of $0.3 million.

Net cash provided by financing activities was $0.4 million in the six months ended June 30, 2025, and consisted primarily of proceeds from issuance of common stock upon exercise of stock options of $0.4 million.

Critical accounting estimates

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We may use these provisions until the last day of our fiscal year following the fifth anniversary of the completion of our IPO.

However, if certain events occur prior to the end of such five-year period, including if we become a “large accelerated filer,” our annual gross revenues exceed $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

if certain events occur prior to the end of such five-year period, including if we become a “large accelerated filer,” our annual gross revenues exceed $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

We are also a “smaller reporting company” as defined in the Exchange Act.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis