Item 7. Management’s Discussion and Analysis
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
You should read the following discussion and analysis of our financial condition and results of operations together with
our audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and
uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result
of various factors, including those set forth under Part I, Item 1A, “Risk Factors” and in other parts of this Annual Report on
Form 10-K. A discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023 and other
information related to the year ended December 31, 2023 has been reported previously in our Annual Report on Form 10-K
for the year ended December 31, 2024 filed with the SEC on February 27, 2025, under the heading “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
Overview
Our mission is to help Americans save time and money when filling their medications. To achieve this, we are building
the leading consumer-focused digital healthcare platform in the United States. For example, during 2025, we announced the
launch of our first condition-specific subscription program for erectile dysfunction and continued to expand to other
conditions including hair loss and weight loss. Certain of these condition-specific subscription programs offer consumers a
single solution for comprehensive care by bundling the clinician visit, prescription (if deemed medically appropriate by the
treating healthcare provider), and related delivery for a single total subscription price. During 2025, we also continued to
grow our consumer direct pricing and announced a collaboration with a pharmaceutical manufacturer to offer eligible
patients nationwide two of the most in-demand GLP-1 medications at a significantly lower cash price through our platform.
With respect to the healthcare landscape, change has become a constant with positive and negative impacts on our
business. For example, in July 2025, Congress passed a budget bill that cuts federal funding for Medicaid among other
health insurance programs, as well as tightens eligibility requirements and increases the frequency of Medicaid coverage
determinations. Further, copays on prescription medication have continued to trend upward in recent years and we believe
as insurance providers and government programs continue to shift the cost burden more to consumers, including through
changes to ACA marketplace subsidies, consumers are now more than ever searching for sustainable and affordable
healthcare solutions which we believe strengthens our value proposition. Separately, certain major drug producers and
manufacturers have negotiated or are in negotiations with the current Presidential administration to receive relief from the
potential imposition of a 100% tariff on any branded or patented pharmaceutical product produced outside of the United
States. As a result of these negotiations, certain manufacturers have announced their participation in a new government
sponsored direct-to-consumer platform called “TrumpRx.gov” ("TrumpRx"), which was launched in February 2026 and is
designed to offer consumers discounts on their products and some specialty brands. GoodRx is a key integration partner for
pharma manufacturers offering discounted cash prices on TrumpRx at launch . Any potential impact on our business,
offerings, or results of operations are unclear at this time but may be significant . With the introduction of these federal
initiatives, including the renewed focus on Most-Favored-Nation pricing, the market is shifting decisively toward greater
transparency and direct-to-consumer access. For us, this evolution is both an opportunity and a clear validation of our
mission.
Conversely, we have seen rapid changes in the U.S. retail pharmacy landscape as well, with announcements of store
closures and reduction of footprint from various retail pharmacies, including Rite Aid and Walgreens. In early May 2025, Rite
Aid announced its plan to pursue a sale of substantially all of its assets through a voluntary bankruptcy process.
Consequently, we saw several PBMs remove Rite Aid from their networks, causing immediate cessation in the associated
claims volume, as well as rapid store closures, which altogether adversely impacted our ability to recapture these claims in
the near term. As an extension of the changing retail pharmacy landscape, we have seen and continue to expect heightened
renegotiations between pharmacies and PBMs, including changes in retailer reimbursement models, as a result of the
pharmacies' increased focus on rationalizing their spending. Furthermore, in 2025, we saw a material volume reduction in
one of our integrated savings programs, which integrate our competitive discounts and pricing in a seamless experience at
the pharmacy counter for eligible plan members served by certain PBM partners. Integrated savings programs are operated
through PBMs who decide how to implement and manage these programs. These external factors have adversely impacted
our prescription transactions revenue, financial results, and Monthly Active Consumers that we expect will continue in the
near term with the combined total impact to prescription transactions revenue estimated to be $35. 0 million to $40.0 million
in 2025 .
While our prescription transactions offering remains foundational, given the evolving dynamics of prescription access
and pharmacy economics, including the growing relevance of self-pay and direct-to-consumer distribution models, we are
continuing to position our pharma direct offering as a key driver of growth. As we increase investment in our pharma direct
as well as subscription offerings, we expect near-term impact on our prescription transactions unit economics and revenue
in 2026. Accordingly, while this transition may impact near-term financial performance, we believe it enhances our long-term
growth prospect and ability to create sustainable value.
For the year ended December 31, 2025 as compared to the year ended December 31, 2024 :
• Revenue increased 1% to $796.9 million from $792.3 million ;
60
Table of Contents
• Net income and net income margin were $30.4 million and 3.8% , respectively, compared to $16.4 million and
2.1% , respectively; and
• Adjusted EBITDA and Adjusted EBITDA Margin were $270.5 million and 33.9% , respectively, compared to
$260.2 million and 32.8% , respectively.
Revenue, net income , and net income margin are financial measures prepared in conformity with accounting principles
generally accepted in the United States ("GAAP"). Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial
measures. For a reconciliation and presentation of Adjusted EBITDA and Adjusted EBITDA Margin to the most directly
comparable GAAP financial measures, information about why we consider Adjusted EBITDA and Adjusted EBITDA Margin
useful and a discussion of the material risks and limitations of these measures, please see “Key Financial and Operating
Metrics – Non-GAAP Financial Measures" included within this Part II, Item 7 of this Annual Report on Form 10-K.
Seasonality
We typically experience stronger consumer demand during the first and fourth quarters of each year, which coincide
with generally higher consumer healthcare spending, doctor office visits, annual benefit enrollment season, and seasonal
cold and flu trends. For our integrated savings program, we may experience stronger traffic during the first half of each year
since more claims are likely to be routed through GoodRx while plan members are in the deductible phase of their health
plans. We may also experience stronger demand for our GoodRx Pharma Direct (formerly pharma manufacturer solutions
and referred to hereafter as "pharma direct" ) offering during the fourth quarter of each year, which coincides with pharma
manufacturers' annual budgetary spending patterns. In addition, this seasonality may impact revenue and sales and
marketing expense. PBM-pharmacy issues, including changes in the retail landscape, as well as macroeconomic events
may have masked some of these trends in recent periods and may continue to impact these trends in the future.
Key Financial and Operating Metrics
We use Monthly Active Consumers, subscription plans, Adjusted EBITDA, and Adjusted EBITDA Margin to assess our
performance, make strategic and offering decisions and build our financial projections. The number of Monthly Active
Consumers and subscription plans are key indicators of the scale of our consumer base and a gauge for our marketing and
engagement efforts. We believe these operating metrics reflect our scale, growth and engagement with consumers. As our
business continues to evolve, we are reassessing the Monthly Active Consumers metric as a primary indicator of
performance to ensure it aligns with how we measure growth and profitability.
Monthly Active Consumers
The factors described in the "Overview" section have adversely impacted our Monthly Active Consumers beginning in
the second quarter of 2025.
Three Months Ended
(in millions)
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Monthly Active Consumers
5.3
5.4
5.7
6.4
6.6
6.5
6.6
6.7
Subscription Plans
Subscription plans through the second quarter of 2024 included subscription plans for Kroger Savings, which sunset in
July 2024.
As of
(in thousands)
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Subscription plans
674
671
668
680
684
701
696
778
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin are key measures we use to assess our financial performance and are
also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA Margin are
helpful to investors, analysts and other interested parties because they can assist in providing a more consistent and
comparable overview of our operations across our historical financial periods. In addition, these measures are frequently
used by analysts, investors and other interested parties to evaluate and assess performance.
We define Adjusted EBITDA for a particular period as net income or loss before interest, taxes, depreciation and
amortization, and as further adjusted, as applicable, for acquisition related expenses, stock-based compensation expense,
payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss
61
Table of Contents
on operating lease asset s , restructuring related expenses, legal settlement expenses , gain on sale of business and other
income or expense, net. These excluded items are either non-cash charges or such that we believe they do not represent
our underlying core operating performance and that their exclusion provides investors with a better understanding of the
factors and trends affecting our business. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of
Adjusted Revenue. A djusted Revenue is a non-GAAP financial measure defined as revenue excluding client contract
termination costs associated with restructuring related activities. We exclude these costs from revenue because we believe
they are not indicative of past or future underlying performance of the business. For 2025 and 2024, revenue equaled
Adjusted Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures and are presented for supplemental
informational purposes only and should not be considered as alternatives or substitutes to financial information presented in
accordance with GAAP. These measures have certain limitations in that they do not include the impact of certain costs that
are reflected in our consolidated statements of operations that are necessary to run our business. Other companies,
including other companies in our industry, may not use these measures or may calculate these measures differently than as
presented in this Annual Report on Form 10-K, limiting their usefulness as comparative measures.
The following table presents a reconciliation of net income , the most directly comparable financial measure calculated in
accordance with GAAP, to Adjusted EBITDA, and presents net income margin, the most directly comparable financial
measure calculated in accordance with GAAP, with Adjusted EBITDA Margin:
Year Ended December 31,
(dollars in thousands)
2025
2024
Net income
$ 30,439
$ 16,390
Adjusted to exclude the following:
Interest income
(10,933)
(23,273)
Interest expense
42,605
52,922
Income tax expense
26,099
15,070
Depreciation and amortization
85,218
69,538
Other (income) expense
(718)
2,660
Loss on extinguishment of debt
—
2,077
Financing related expenses (1)
—
898
Acquisition related expenses (2)
1,539
557
Restructuring related expenses (3)
7,676
8,902
Legal settlement expenses (4)
5,855
13,000
Stock-based compensation expense
76,626
99,026
Payroll tax expense related to stock-based compensation
1,697
2,471
Loss on operating lease asset (5)
4,409
—
Adjusted EBITDA
$ 270,512
$ 260,238
Revenue
$ 796,853
$ 792,324
Net income margin
3.8%
2.1%
Adjusted EBITDA Margin
33.9%
32.8%
_____________________________________________________
(1) Financing related expenses include third party fees related to proposed financings.
(2) Acquisition related expenses principally include costs for actual or planned acquisitions including related third party
fees, legal, consulting, and other expenditures, and as applicable, severance costs and retention bonuses to
employees related to acquisitions. From time to time, acquisition related expenses may also include similar
transaction related costs for business dispositions.
(3) Restructuring related expenses include costs for various workforce optimization and organizational changes to
better align with our strategic goals and future scale including employee severance and other personnel related
costs, and as applicable, contract termination costs and losses from the disposal of certain technology and
capitalized software.
(4) Legal settlement expenses consist of periodic settlement costs for significant or unusual litigation matters.
(5) Loss on operating lease asset represents losses incurred from time to time relating to the impairment or
abandonment of leased office space.
62
Table of Contents
Components of our Results of Operations
For a description of the components of our results of operations, see Note 2 to our audited consolidated financial
statements included elsewhere in this Annual Report on Form 10-K.
Our revenue is primarily derived from prescription transactions revenue that is generated when pharmacies fill
prescriptions for consumers, and from other revenue streams such as pharma direct, our subscription offerings, and our
telehealth services. We consider PBMs, pharmacies, pharma manufacturers, healthcare providers, and consumers of our
subscription and telehealth services, for which we have direct contractual agreements, to be our primary customers. All of
our revenue has been generated in the United States .
Results of Operations
The following table sets forth our results of operations for the years ended December 31, 2025 and 2024 :
(dollars in thousands)
Year Ended
December
31, 2025
% of Total
Revenue
Year Ended
December
31, 2024
% of Total
Revenue
Change
($)
Change
(%)
Revenue:
Prescription transactions revenue
$ 544,001
68%
$ 577,549
73%
$ (33,548)
(6%)
Subscription revenue
83,786
11%
86,536
11%
(2,750)
(3%)
Pharma direct revenue
151,380
19%
107,237
14%
44,143
41%
Other revenue
17,686
2%
21,002
3%
(3,316)
(16%)
Total revenue
796,853
792,324
Costs and operating expenses:
Cost of revenue, exclusive of
depreciation and amortization
presented separately below
57,597
7%
48,215
6%
9,382
19%
Product development and technology
121,026
15%
123,749
16%
(2,723)
(2%)
Sales and marketing
331,560
42%
367,114
46%
(35,554)
(10%)
General and administrative
113,960
14%
117,862
15%
(3,902)
(3%)
Depreciation and amortization
85,218
11%
69,538
9%
15,680
23%
Total costs and operating expenses
709,361
726,478
Operating income
87,492
65,846
Other expense, net:
Other income (expense)
718
0%
(2,660)
0%
3,378
(127%)
Loss on extinguishment of debt
—
0%
(2,077)
0%
2,077
n/m
Interest income
10,933
1%
23,273
3%
(12,340)
(53%)
Interest expense
(42,605)
5%
(52,922)
7%
10,317
(19%)
Total other expense, net
(30,954)
(34,386)
Income before income taxes
56,538
31,460
Income tax expense
(26,099)
3%
(15,070)
2%
(11,029)
73%
Net income
$ 30,439
$ 16,390
Revenue
Prescription transactions revenue decreased $33.5 million , or 6% , year-over-year, primarily as a result of a 14%
decrease in Monthly Active Consumers due to the broader changes in the retail pharmacy landscape, including store
closures, and volume reduction in one of our integrated savings programs as discussed above, partially offset principally by
improved unit economics related to contracting with certain of our customers and partners and favorable changes in sales
mix. Revenue contribution from our 2025 acquisitions was approximately 1% of prescription transactions revenue.
Subscription revenue decreased $2.8 million , or 3% , year-over year, primarily driven by a decrease in the number of
subscription plans with 674 thousand subscription plans as of December 31, 2025 compared to 684 thousand as of
December 31, 2024 .
Pharma direct revenue increased $44.1 million , or 41% , year-over year, driven by organic growth as we continued to
expand our market penetration with pharma manufacturers and other customers. We expect pharma direct revenue to
continue to grow as a percentage of total revenue in the near to medium term as we continue to scale and expand available
services, capabilities and platforms of our pharma direct offering.
63
Table of Contents
Costs and Operating Expenses
Cost of revenue, exclusive of depreciation and amortization
Cost of revenue is largely driven by the growth of our visitor, subscriber and active consumer base, as well as our
offering mix. Our cost of revenue as a percentage of revenue may vary based on the change in mix of our various offerings.
Cost of revenue increased $9.4 million , or 19% , year-over-year, primarily driven by an increase in processing fees .
Product development and technology
Product development and technology expenses are primarily driven by changes in headcount and investments to
support and develop our various products. We capitalize certain qualified costs related to the development of internal-use
software, which may cause product development and technology expenses to vary from period to period.
Product development and technology expenses decreased $2.7 million , or 2% , year-over-year, primarily driven by a
$8.4 million decrease in payroll and related costs largely due to higher capitalization of such costs related to the
development of internal-use software , partially offset principally by an increase in third-party services and contractors
associated with non-capitalizable product development activities.
Sales and marketing
Sales and marketing expenses are primarily driven by investments to grow and retain our consumer base and may
fluctuate based on the timing of our investments in consumer acquisition and retention. We continuously evaluate the impact
of sales and marketing activities on our business and actively manage our sales and marketing spend, including investment
in consumer acquisition, which is largely variable, as market and business conditions change.
Sales and marketing expenses decreased $35.6 million , or 10% , year-over-year primarily driven by a $13.2 million
decrease in stock-based compensation expense largely as a result of changes in our employee composition, $12.4 million
decrease in third-party marketing expenses, and an $8.1 million decrease in advertising expenses.
General and administrative
General and administrative expenses are primarily driven by changes in headcount and investments to support our
compliance and reporting obligations as a public company. General and administrative expenses may vary from period to
period based on the timing and extent of business mergers, acquisitions and dispositions, to support our organic growth, and
financing activities. Impairments and disposals of long-lived assets may also cause general and administrative expenses to
fluctuate period to period.
General and administrative expenses decreased $3.9 million , or 3% , year-over-year, primarily driven by a $7.5 million
decrease in estimated legal settlement expense with respect to an ongoing class action litigation , partially offset principally
by an increase in professional fees . We recognized a $4.4 million impairment loss related to a leased office space in 2025
which was entirely offset by a $4.4 million decrease in stock-based compensation expense related to awards granted to our
Co-Founders in 2020 that fully vested by the end of 2024.
Depreciation and amortization
Our depreciation and amortization changes are primarily based on changes in our property and equipment, intangible
assets, and capitalized software balances and estimates of useful lives.
Depreciation and amortization expenses increased $15.7 million , or 23% , year-over-year, primarily driven by higher
amortization related to capitalized software due to higher capitalization costs for platform improvements and the introduction
of new products and features.
Other Expense
We recognized other expense of $2.7 million in 2024 related to third-party transaction costs as a result of our debt
refinancing in July 2024.
Loss on Extinguishment of Debt
We recognized a loss on extinguishment of debt of $2.1 million in 2024 related to the write-off of a portion of existing
unamortized debt issuance costs and discounts as a result of our debt refinancing in July 2024.
Interest Income
64
Table of Contents
Interest income decreased $12.3 million , or 53% , year-over-year, primarily due to lower average balance of cash
equivalents held in U.S. treasury securities money market funds and lower interest rates .
Interest Expense
Interest expense decreased $10.3 million , or 19% , year-over-year, primarily due to lower average debt balances and
lower interest rates .
Income Taxes
For the years ended December 31, 2025 and 2024, we had an income tax expense of $26.1 million and $15.1 million ,
respectively, and an effective income tax rate of 46.2% and 47.9% , respectively. The year-over-year change in income tax
expense was primarily due to higher income before income taxes a nd lower 2025 tax benefits due to the timing of expiration
of statute of limitation of unrecognized tax benefits.
Liquidity and Capital Resources
Since our inception, we have financed our operations primarily through net cash provided by operating activities, equity
issuances, and borrowings under our long-term debt arrangements. As of December 31, 2025 , our principal sources of
liquidity are our cash and cash equivalents and borrowings available under our $88.0 million secured revolving credit facility
that matures on April 10, 2029 . As of December 31, 2025 , we had cash and cash equivalents of $261.8 million and $80.2
million available under our revolving credit facility. For additional information regarding our revolving credit facility and our
term loan, see Note 12 to our audited consolidated financial statements included elsewhere in this Annual Report on Form
10-K.
Our primary short-term and long-term requirements for liquidity and capital are to finance working capital including our
noncancelable operating lease obligations, interest and principal payments related to our outstanding debt arrangements,
share repurchases, capital expenditures, general corporate purposes, and business acquisitions and investments we may
make from time to time.
Based on our current conditions, we believe that our net cash provided by operating activities and cash on hand will be
adequate to meet our operating, investing and financing needs for at least the next twelve months from the date of the
issuance of our consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K. Our future
capital requirements will depend on many factors, including the growth of our business, the timing and extent of investments,
sales and marketing activities, and many other factors as described in Part I, Item 1A, “Risk Factors.” For additional
information regarding our cash requirements from noncancelable operating lease obligations, terms and commitments under
our debt arrangements including our term loan and revolving credit facility, and other commitments and contingencies, see
Note 10 , Note 12 and Note 13 to our audited consolidated financial statements included elsewhere in this Annual Report on
Form 10-K, respectively.
If necessary, we may borrow funds under our revolving credit facility to finance our liquidity requirements, subject to
customary borrowing conditions. To the extent additional funds are necessary to meet our long-term liquidity needs as we
continue to execute our business strategy, we anticipate that they will be obtained through the incurrence of additional
indebtedness, additional equity financings or a combination of these potential sources of funds; however, such financing
may not be available on favorable terms, or at all. In particular, the current economic uncertainty, including rising inflation,
new or increased tariffs, and socio-political events, has resulted in, and may continue to result in, significant disruption of
global financial markets, including rising interest rates, which could reduce our ability to access capital. If we are unable to
raise additional funds when needed or on the terms desired, our business, financial condition, and results of operations
could be adversely affected.
Holding Company Status
GoodRx Holdings, Inc. is a holding company that does not conduct any business operations of its own. As a result,
GoodRx Holdings, Inc. is largely dependent upon cash distributions and other transfers from its subsidiaries to meet its
obligations and to make future dividend payments, if any. Our existing debt arrangements contain covenants restricting
payments of dividends by our subsidiaries, including GoodRx, Inc., unless certain conditions are met. These covenants
provide for certain exceptions for specific types of payments. Based on these restrictions, all of the net assets of GoodRx,
Inc. were restricted pursuant to the terms of our debt arrangements as of December 31, 2025 . Since the restricted net
assets of GoodRx, Inc. and its subsidiaries exceed 25% of our consolidated net assets, in accordance with Regulation S-X,
refer to Note 18 to our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K for
condensed parent company financial information of GoodRx Holdings, Inc.
65
Table of Contents
Cash Flows
Year Ended December 31,
(in thousands)
2025
2024
Net cash provided by operating activities
$ 167,904
$ 183,892
Net cash used in investing activities
(119,960)
(70,347)
Net cash used in financing activities
(234,470)
(337,495)
Net change in cash and cash equivalents
$ (186,526)
$ (223,950)
Net cash provided by operating activities
Net cash provided by operating activities consists of net income adjusted for certain non-cash items and changes in
assets and liabilities. The $16.0 million year-over-year decrease in net cash provided by operations was due to an increase
of $58.5 million in cash outflow from changes in operating assets and liabilities, partially offset by an increase in earnings
after adjusting for non-cash adjustments. The changes in operating assets and liabilities were primarily driven by the timing
of payments of accounts payable and prescription reimbursement liabilities, collections of accounts receivable and
prescription reimbursement assets, and the timing of income tax payments and refunds.
Net cash used in investing activities
Net cash used in investing activities primarily consists of cash used for software development costs and capital
expenditures, and may also include cash used for acquisitions and investments that we may make from time to time. The
$49.6 million increase in net cash used in investing activities was primarily driven by cash paid for business acquisitions in
2025.
Net cash used in financing activities
Net cash used in financing activities primarily consists of payments related to our debt arrangements, repurchases of
our Class A common stock, and net share settlement of equity awards, partially offset by debt borrowings and proceeds from
exercise of stock options. The $103.0 million year-over-year decrease in net cash used in financing activities was primarily
driven by a decrease of $162.0 million in net repayments on our term loan as a result of our debt refinance in July 2024 and
a $15.3 million decrease in employee taxes paid related to net share settlement of equity awards. The impact from these
drivers was partially offset by a $57.5 million increase in payments for repurchases of our Class A common stock and a
$19.0 million decrease in proceeds from exercise of stock options.
Recent Accounting Pronouncements
See Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K for
further information on an accounting standard adopted in 2025 and recent accounting announcements that have not yet
been required to be implemented and may be applicable to our future operations.
Critical Accounting Policies and Estimates
Our audited consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on
Form 10-K are prepared in accordance with GAAP. The preparation of consolidated financial statements also requires us to
make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and
related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be
reasonable under the circumstances. Actual results could differ significantly from our estimates. An accounting policy is
deemed critical if it is both important to the portrayal of our financial condition and results and requires us to make difficult,
subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are
inherently uncertain. An accounting estimate is deemed critical where the nature of the estimate is material due to the levels
of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to
change, and the impact of the estimate on our financial condition or operating performance is material. We believe that the
accounting policies described below involve a significant degree of judgment and complexity. Accordingly, we believe these
are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of
operations. For further information of the below critical accounting policies and estimates and our other significant
accounting policies, see Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report on
Form 10-K.
Revenue Recognition
Revenue recognition represents an important accounting policy to the understanding of our financial condition and
results of operations. Our revenue recognition does not involve any critical accounting estimates. For information regarding
66
Table of Contents
our revenue recognition accounting policy, see Note 2 to our audited consolidated financial statements included elsewhere
in this Annual Report on Form 10-K.
67
Table of Contents