What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-04-29 compared with 2025-11-05 · 84 added, 166 removed, 105 unchanged (70% of the section changed)

16 unchanged sentences

We caution investors that our business and financial performance are subject to substantial risks and uncertainties.

Everspin is a pioneer in the successful commercialization of Magnetoresistive Random Access Memory (MRAM) technology.

Our portfolio of MRAM technologies, including Toggle MRAM and Spin-transfer Torque MRAM (STT-MRAM), is delivering superior performance, persistence and reliability in non-volatile memories that transform how mission-critical data is protected against power loss.

With over 15 years of MRAM technology and manufacturing leadership, our memory solutions deliver significant value to our customers in key markets such as industrial, medical, automotive/transportation, aerospace and data center.

We are the leading supplier of discrete MRAM components and a successful licensor of our broad portfolio of related technology intellectual property.

We sell our products directly and through our established distribution channels to industry-leading OEMs and ODMs.

We are a pioneer in the successful commercialization of Magnetoresistive Random Access Memory (MRAM) technology.

Our portfolio of MRAM technologies, including Toggle MRAM, Tunnel Magneto Resistance (TMR) Sensors, and Spin-transfer Torque MRAM (STT-MRAM), is delivering superior performance, persistence and reliability in non-volatile memories that transform how mission-critical data is protected against power loss.

With almost 20 years of MRAM technology and manufacturing leadership, our memory solutions deliver significant value to our customers in key markets such as industrial, medical, automotive/transportation, aerospace and defense, and data center.

We are the leading supplier of discrete MRAM components and a successful licensor of our broad portfolio of related technology and intellectual property.

We sell our products directly and through our established distribution channels to industry-leading original equipment manufacturers, original design manufacturers and contract manufacturers.

We manufacture our MRAM products using both captive and third-party manufacturing capabilities.

We purchase industry-standard complementary metal-oxide semiconductor (CMOS) wafers from semiconductor foundries and perform back end of line (BEOL) processing that includes our magnetic-bit technology at our 200mm fabrication facility in Chandler, Arizona.

We also manufacture full-flow 300mm CMOS wafers with our STT-MRAM magnetic-bit technology integrated in BEOL as part of our strategic relationship with GLOBALFOUNDRIES.

We also manufacture full-flow 300mm CMOS wafers with our STT-MRAM magnetic-bit technology integrated in BEOL as part of our strategic relationship with GLOBALFOUNDRIES Inc.

We monitor a variety of key financial metrics to help us evaluate trends, establish budgets, measure the effectiveness of our business strategies, and assess operational efficiencies.

5 unchanged sentences

Our management and board of directors use adjusted net income to assess and evaluate our overall performance and financial trends, inform the annual budgeting process, and guide both short-term and long-term operational and strategic planning.

As such, we believe Adjusted net income provides meaningful insight for investors into our financial performance, consistent with how our management team and board view and analyze our results.

As such, we believe adjusted net income provides meaningful insight for investors into our financial performance, consistent with how our management team and board of directors view and analyze our results.

Adjusted net income is a non-GAAP financial measure and should be considered alongside, but not as a replacement for or superior to, net income as reported in accordance with GAAP.

The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to adjusted net income for the periods presented:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

(in thousands)

Adjusted net income (loss) reconciliation:

Net income (loss) $ 54 $ 2,271 $ (1,782) $ (433)

Net loss $ (296) $ (1,166)

Stock-based compensation expense 1,300 1,577

Adjusted Net Income (Loss) $ 1,461 $ 3,803 $ 2,621 $ 4,675

Litigation costs

Adjusted net income

$ 2,633 $ 411

Results of Operations

The following tables set forth our results of operations for the periods indicated:

Three Months Ended September 30,

The following table sets forth our results of operations for the periods indicated:

Three Months Ended March 31,

2026 2025 2026 2025

1 unchanged sentence

Product sales $ 14,100 $ 11,026 95 % 84 %

Licensing, royalty, patent, and other revenue 1,370 1,650 10 14

Licensing, royalty, patent, engineering services and other revenue 772 2,112 5 16

Total revenue 14,872 13,138 100 100

Cost of product sales 6,955 6,029 47 46

Cost of licensing, royalty, patent, and other revenue 226 390 2 3

Cost of licensing, royalty, patent, engineering services and other revenue 74 356 — 3

Total cost of sales 7,029 6,385 47 49

8 unchanged sentences

Other income, net 2,106 388 14 3

Net income before income taxes 51 2,281 — 19

Income tax benefit (expense) 3 (10) — —

Net income and comprehensive income $ 54 $ 2,271 — % 19 %

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

We generated 86% and 84% of our revenue from products sold to distributors for the three months ended September 30, 2025 and 2024, respectively.

In addition to selling our products to our distributors, we maintain a direct selling relationship, for strategic purposes, with several key customer accounts.

Net loss before income taxes

(293) (1,136) (2) (9)

Income tax expense

Net loss and comprehensive loss

$ (296) $ (1,166) (2) % (9) %

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

We generated 90% and 60% of our revenue from products sold through distributors for the three months ended March 31, 2026 and 2025, respectively.

We maintain a direct selling relationship, for strategic purposes, with several key customer accounts.

We have organized our sales team and representatives into three primary regions:

Asia-Pacific (APAC);

North America;

We recognize revenue by geography based on the region in which our customer is located and to which our products are sold, and not to where the end products in which they are assembled are shipped.

Our revenue by region and by type of revenue for the periods indicated were as follows (in thousands):

Three Months Ended September 30,

and Europe, Middle East and Africa (EMEA).

We recognize revenue by geography based on the region in which our products are sold, and not where the end products in which they are assembled are shipped.

Our revenue by region for the periods indicated was as follows (in thousands):

Three Months Ended March 31,

APAC $ 9,194 $ 7,259

2 unchanged sentences

Total revenue $ 14,872 $ 13,138

Three Months Ended September 30, Change

Three Months Ended

March 31, Change

2026 2025 Amount %

1 unchanged sentence

Product sales $ 14,100 $ 11,026 $ 3,074 27.9 %

Licensing, royalty, patent, and other revenue 1,370 1,650 (280) (17.0) %

Licensing, royalty, patent, engineering services and other revenue

772 2,112 (1,340) (63.4) %

Total revenue $ 14,872 $ 13,138 $ 1,734 13.2 %

Total revenue increased by $2.0 million, or 16.3%, from $12.1 million during the three months ended September 30, 2024 to $14.1 million during the three months ended September 30, 2025.

The increase was due to an increase in product sales of $2.2 million, and partially offset by a decrease of licensing, royalty, patent, and other revenue of $0.3 million.

Licensing, royalty, patent, and other revenue is a highly variable revenue item characterized by a small number of transactions annually with revenue based on size and terms of each transaction.

Licensing, royalty, patent, and other revenue decreased by $0.3 million, or 17.0% from $1.7 million during the three months ended September 30, 2024, to $1.4 million during the three months ended September 30, 2025.

The decrease was primarily due to the reduced pace of deliverables in our contractual agreements with customers for the development of RAD-Hard products, along with the conclusion of a contractual arrangement with a customer for the development of reliability models for strategic radiation hardened toggle MRAM, and partially offset by a new agreement for the development of an AI technology application.

Total revenue increased by $1.7 million, or 13.2%, from $13.1 million during the three months ended March 31, 2025 to $14.9 million during the three months ended March 31, 2026.

The increase was due to an increase in product sales of $3.1 million or 27.9%, and partially offset by a decrease in licensing, royalty, patent, engineering services and other revenue of $1.3 million.

Licensing, royalty, patent, engineering services and other revenue is a highly variable revenue item characterized by a small number of transactions annually with revenue based on size and terms of each transaction.

We estimate royalty revenue earned throughout the year, with an annual adjustment recognized for actual sales in the first quarter of each fiscal year.

Licensing, royalty, patent, engineering services and other revenue decreased by $1.3 million, or 63.4% from $2.1 million during the three months ended March 31, 2025, to $0.8 million during the three months ended March 31, 2026.

The decrease was primarily due to the conclusion of an agreement for the development of an AI technology application.

Cost of Sales and Gross Margin

Three Months Ended September 30, Change

Three Months Ended

March 31, Change

2026 2025 Amount %

1 unchanged sentence

Cost of product sales $ 6,955 $ 6,029 $ 926 15.4 %

Cost of licensing, royalty, patent, and other revenue 226 390 (164) (42.1) %

Cost of licensing, royalty, patent, engineering services and other revenue

74 356 (282) (79.2) %

Total cost of sales $ 7,029 $ 6,385 $ 644 10.1 %

Gross margin 52.7 % 51.4 %

Cost of product sales increase d by $0.9 million , or 15.2% , from $5.8 million during the three months ended September 30, 2024 , to $6.6 million during the three months ended September 30, 2025 .

Cost of product sales relate primarily to costs of our toggle and STT products.

Cost of licensing, royalty, patent, and other revenue slightly decreased by $0.2 million, or 42.1% from $0.4 million during the three months ended September 30, 2024, to $0.2 million during the three months ended September 30, 2025.

The decrease was primarily due to a decrease in licensing costs related to labor and materials associated with the progression of our RAD-Hard projects.

Gross margin increased from 49.2% during the three months ended September 30, 2024, to 51.3% during the three months ended September 30, 2025.

Gross margin increased as a result of improved yields and improved fabrication facility ("Fab") utilization.

Cost of product sales increase d by $0.9 million , or 15.4% , from $6.0 million during the three months ended March 31, 2025 , to $7.0 million during the three months ended March 31, 2026 .

Cost of product sales relate primarily to costs of our Toggle and STT products and have increased consistently and proportionately with the increase in revenues.

Cost of licensing, royalty, patent, engineering services and other revenue decreased by $0.3 million, or 79.2%, from $0.4 million during the three months ended March 31, 2025, to $0.1 million during the three months ended March 31, 2026.

The decrease was primarily due to a decrease in licensing costs related to labor and materials associated with the development of an AI technology application.

Gross margin increased from 51.4% during the three months ended March 31, 2025, to 52.7% during the three months ended March 31, 2026.

Gross margin increased as a result of the different revenue mix and yield improvements.

Operating Expenses

Our operating expenses consist of research and development, general and administrative and sales and marketing expenses.

Personnel-related expenses, including salaries, benefits, bonuses and stock-based compensation, are among the most significant components of each of our operating expense categories.

Personnel-related expenses, including salaries, benefits, bonuses and stock-based compensation, are among the most significant component of each of our operating expense categories.

Three Months Ended

September 30, Change

March 31, Change

2026 2025 Amount %

3 unchanged sentences

Research and Development Expenses .

Research and development expenses increased by $0.2 million , or 5.9% , from $3.4 million during the three months ended September 30, 2024 , to $3.6 million during the three months ended September 30, 2025 .

Research and development expenses relate primarily to the development and enhancement of our new Extended Serial Peripheral Interface (xSPI) family of STT-MRAM products, which offer high-performance, multiple I/O, SPI-compatibility and feature a high-speed, low pin count SPI compatible interface.

Three Months Ended September 30, Change

Research and development expenses increased by $0.2 million , or 7.4% , from $3.4 million during the three months ended March 31, 2025 , to $3.6 million during the three months ended March 31, 2026 .

The research and development expenses increase relates primarily to higher compensation costs and contract labor .

Three Months Ended

March 31, Change

2026 2025 Amount %

3 unchanged sentences

General and Administrative Expenses .

General and administrative expenses increased by $0.3 million, or 9.7%, from $3.4 million during the three months ended September 30, 2024, to $3.7 million during the three months ended September 30, 2025.

The increase is primarily due to increases in professional service fees.

Three Months Ended September 30, Change

General and administrative expenses increased by $1.2 million, or 31.9%, from $3.8 million during the three months ended March 31, 2025, to $5.1 million during the three months ended March 31, 2026.

The increase is primarily due to the litigation costs related to the patent infringement lawsuit described in Note 5 to our condensed financial statements included in Item 1 of this report.

Three Months Ended

March 31, Change

2026 2025 Amount %

3 unchanged sentences

Sales and Marketing Expenses .

Sales and marketing expenses increased by $0.2 million, or 12.0%, from $1.3 million during the three months ended September 30, 2024, to $1.5 million during the three months ended September 30, 2025.

Sales and marketing expenses relate primarily to compensation costs and contract labor.

Three Months Ended September 30, Change

Sales and marketing expenses increased by $0.4 million, or 27.0%, from $1.5 million during the three months ended March 31, 2025, to $1.9 million during the three months ended March 31, 2026.

The increase is sales and marketing expenses relates primarily to higher compensation costs and contract labor.

Three Months Ended

March 31, Change

2026 2025 Amount %

1 unchanged sentence

Interest income $ 317 $ 408 $ (91) (22.3) %

Interest income decreased by $31,000, or 6.7%, from $0.5 million interest income during the three months ended September 30, 2024, to $0.4 million interest income during the three months ended September 30, 2025.

Interest income slightly decreased by $0.1 million, or 22.3%, from $0.4 million during the three months ended March 31, 2025, to $0.3 million during the three months ended March 31, 2026.

The decrease is primarily due to the decrease in interest rates.

Other Income, Net

Three Months Ended September 30, Change

Three Months Ended

March 31, Change

2026 2025 Amount %

1 unchanged sentence

Other income, net $ 2,106 $ 388 $ 1,718 442.8 %

Other income, net decreased by $2.8 million, or 70.4%, from $3.9 million other expense during the three months ended September 30, 2024, to $1.2 million other income during the three months ended September 30, 2025.

Other income, net increased by $1.7 million, or 442.8%, from $0.4 million during the three months ended March 31, 2025, to $2.1 million during the three months ended March 31, 2026.

Other income relates primarily to other income recognized from a strategic award we received to develop a long-term plan to provide manufacturing services for aerospace and defense segments.

Nine Months Ended September 30,

2025 2024 2025 2024

(In thousands) (As a percentage of revenue)

Product sales $ 34,807 $ 31,190 86 % 84 %

Licensing, royalty, patent, and other revenue 5,592 5,969 14 16

Total revenue 40,399 37,159 100 100

Cost of product sales 18,823 16,989 47 46

Cost of licensing, royalty, patent, and other revenue 849 842 2 2

Total cost of sales 19,672 17,831 49 48

Gross profit 20,727 19,328 51 52

Operating expenses:

Research and development 10,519 10,259 26 28

General and administrative 11,170 10,653 28 29

Sales and marketing 4,476 3,950 11 11

Total operating expenses 26,165 24,862 65 67

Loss from operations (5,438) (5,534) (13) (15)

Interest income 1,263 1,325 3 4

Other income, net 2,394 3,862 6 10

Net loss before income taxes (1,781) (347) (4) (1)

Income tax expense (1) (86) — —

Net loss and comprehensive loss $ (1,782) $ (433) (4) % (1) %

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

We generated 71% and 80% of our revenue from products sold to distributors for the nine months ended September 30, 2025 and 2024, respectively.

Our revenue by region and by type of revenue for the periods indicated were as follows (in thousands).

Nine Months Ended September 30,

APAC $ 24,412 $ 21,163

North America 7,906 7,857

EMEA 8,081 8,139

Total revenue $ 40,399 $ 37,159

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Product sales $ 34,807 $ 31,190 $ 3,617 11.6 %

Licensing, royalty, patent, and other revenue 5,592 5,969 (377) (6.3) %

Total revenue $ 40,399 $ 37,159 $ 3,240 8.7 %

Total revenue increased by $3.2 million, or 8.7%, from $37.2 million during the nine months ended September 30, 2024 to $40.4 million during the nine months ended September 30, 2025.

The increase was due to increase in product sales revenue of $3.6 million.

Licensing, royalty, patent, and other revenue decreased by $0.4 million, or 6.3% from $6.0 million during the nine months ended September 30, 2024, to $5.6 million during the nine months ended September 30, 2025.

The decrease was primarily due to the conclusion of a contractual arrangement with a customer for the development of reliability models for strategic radiation hardened toggle MRAM, and by the reduced pace of deliverables in our contractual agreements with customers for the development of RAD-Hard products a new agreement for the development of an AI technology application.

Cost of Sales and Gross Margin

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Cost of product sales $ 18,823 $ 16,989 $ 1,834 10.8 %

Cost of licensing, royalty, patent, and other revenue 849 842 7 0.8 %

Total cost of sales $ 19,672 $ 17,831 $ 1,841 10.3 %

Gross margin 51.3 % 52.0 %

Cost of product sales increased by $1.8 million , or 10.8% , from $17.0 million during the nine months ended September 30, 2024 , to $18.8 million during the nine months ended September 30, 2025 .

Cost of product sales relate primarily to costs of our toggle and STT products.

Cost of licensing, royalty, patent, and other revenue remained consistent at $0.8 million during the nine months ended September 30, 2024 and 2025, respectively.

Gross margin decreased from 52.0% during the nine months ended September 30, 2024, to 51.3% during the nine months ended September 30, 2025.

Gross margin decreased as a result of a decrease in other revenue.

Operating Expenses

Our operating expenses consist of research and development, general and administrative and sales and marketing expenses.

Personnel-related expenses, including salaries, benefits, bonuses and stock-based compensation, are among the most significant components of each of our operating expense categories.

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Research and development $ 10,519 $ 10,259 $ 260 2.5 %

Research and development as a % of revenue 26 % 28 %

Research and Development Expenses

Research and development expenses increased by $0.3 million , or 2.5% , from $10.3 million during the nine months ended September 30, 2024 , to $ 10.5 million during the nine months ended September 30, 2025 .

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

General and administrative $ 11,170 $ 10,653 $ 517 4.9 %

General and administrative as a % of revenue 28 % 29 %

General and Administrative Expenses .

General and administrative expenses increased by $0.5 million, or 4.9%, from $10.7 million during the nine months ended September 30, 2024, to $11.2 million during the nine months ended September 30, 2025.

The increase is primarily due to one-time professional service fees.

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Sales and marketing $ 4,476 $ 3,950 $ 526 13.3 %

Sales and marketing as a % of revenue 11 % 11 %

Sales and Marketing Expenses .

Sales and marketing expenses increased by $0.5 million, or 13.3%, from $4.0 million during the nine months ended September 30, 2024, to $4.5 million during the nine months ended September 30, 2025.

Sales and marketing expenses relate primarily to compensation costs and contract labor.

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Interest income $ 1,263 $ 1,325 $ (62) (4.7) %

Interest incom e remained consistent at $1.3 million during the nine months ended September 30, 2024 and 2025 , respectively.

Other Income, Net

Nine Months Ended September 30, Change

2025 2024 Amount %

(Dollars in thousands)

Other income, net $ 2,394 $ 3,862 $ (1,468) (38.0) %

Other income, net decreased by $1.5 million, or 38.0%, from $3.9 million other expense during the nine months ended September 30, 2024, to $2.4 million other income during the nine months ended September 30, 2025.

Other income relates primarily to income recognized from a strategic award we received to develop a long-term plan to provide manufacturing services for aerospace and defense industries.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing its impact on our consolidated financial statements.

Liquidity and Capital Resources

As of September 30, 2025, we had $45.3 million of cash and cash equivalents, compared to $42.1 million as of December 31, 2024.

We believe our cash and cash equivalents are sufficient to meet our anticipated capital requirements in

the next 12 months.

Our long-term capital requirements will depend on many factors, including, among other things, our growth rate, the timing and extent of our spending to support research and development activities, the timing and cost of establishing additional sales and marketing capabilities, and the introduction of new products.

As of March 31, 2026, we had $40.5 million of cash and cash equivalents, compared to $44.5 million as of December 31, 2025.

We believe our cash and cash equivalents are sufficient to meet our anticipated capital requirements in the next 12 months.

Our long-term capital requirements will depend on many factors, including, among other things, our growth rate, the timing and extent of our spending to support our current and future manufacturing requirements, research and development activities, the timing and cost of establishing additional sales and marketing capabilities, and the introduction of new products.

The following table summarizes our cash flows for the periods indicated (in thousands):

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

3 unchanged sentences

Cash Flows From Operating Activities

During the nine months ended September 30, 2025 , cash provided by operating activities was $7.3 million , which consisted of net loss of $1.8 million , non-cash charges of $6.9 million and changes of net operating assets and liabilities of $2.2 million .

The non-cash charges consisted of stock-based compensation of $4.4 million and depreciation and amortization of $2.6 million .

The change in our net operating assets and liabilities was primarily due to a decrease in accounts receivable of $3.0 million, an increase in deferred revenue of $0.9 million, an increase in accrued liabilities of $0.5 million, an increase in contract obligation of $0.5 million, a decrease in prepaid and other current assets of $0.4 million, an increase in long-term income tax liability of $0.1 million, offset by an increase in inventory of $2.7 million and a decrease in accounts payable of $0.6 million.

During the nine months ended September 30, 2024 , cash provided by operating activities was $3.3 million , which consisted of net loss of $0.4 million , non-cash charges of $ 6.3 million and changes of net operating assets and liabilities of $2.6 million .

During the three months ended March 31, 2026 , cash provided by operating activities was $0.6 million , which consisted of net loss of $0.3 million , non-cash charges of $2.0 million and changes of net operating assets and liabilities of $1.1 million .

The non-cash charges primarily consisted of stock-based compensation of $1.3 million , depreciation and amortization of $0.7 million .

The change in our net operating assets and liabilities was primarily due to an increase in accounts payable of $0.2 million , an increase in contract obligations of $3.0 million , an increase in prepaid and other current assets of $3.6 million , a decrease in accounts receivable of $0.1 million due to timing of cash receipts for outstanding balances, and a decrease in accrued liabilities of $2.2 million .

The change in our net operating assets and liabilities was primarily due to an increase in

accounts payable of $1.6 million , an increase in accrued liabilities of $0.9 million , offset by an increase in accounts receivable of $2.1 million , a decrease in contract obligation of $1.2 million , and an increase in inventory of $0.5 million .

During the three months ended March 31, 2025 , cash provided by operating activities was $1.4 million , which consisted of net loss of $1.2 million , non-cash charges of $ 2.4 million and changes of net operating assets and liabilities of $0.2 million .

The non-cash charges primarily consisted of stock-based compensation of $1.6 million , depreciation and amortization of $0.8 million .

The change in our net operating assets and liabilities was primarily due to an increase in accounts payable of $1.1 million , an increase in deferred revenue of $1.1 million , an increase in contract obligations of $0.6 million , a decrease in prepaid expenses and other current assets of $0.2 million , offset by an increase in inventory of $1.9 million , and an increase in accounts receivable of $0.8 million .

Cash Flows From Investing Activities

Cash used in investing activities during the nine months ended September 30, 2025 was $4.7 million due to $3.2 million of purchases of manufacturing equipment and $1.5 million in purchases of intangible assets.

Cash used in investing activities during the nine months ended September 30, 2024 was $1.3 million, reflecting purchases of manufacturing equipment.

Cash used in investing activities during the three months ended March 31, 2026 was $4.8 million primarily due to $4.4 million in purchases of manufacturing equipment and $0.5 million in purchase of intangible assets.

Cash used in investing activities during the three months ended March 31, 2025 was $1.4 million primarily due to $0.9 million in purchases of manufacturing equipment and $0.5 million in purchase of intangible assets.

Cash Flows From Financing Activities

Cash provided by financing activities during the nine months ended September 30, 2025 was $0.6 million, primarily due to proceeds from the exercise of employee stock options and purchase of shares under our employee stock purchase plan offset by a nominal amount in payments on finance leases.

Cash provided by financing activities during the nine months ended September 30, 2024 was $0.7 million, consisting of proceeds from the exercise of employee stock options and purchase of shares under our employee stock purchase plan.

Cash provided by financing activities during the three months ended March 31, 2026 was $0.3 million, consisting of proceeds from the exercise of employee stock options and purchase of shares under our employee stock purchase plan, offset by payments of finance leases.

Cash provided by financing activities during the three months ended March 31, 2025 was $0.01 million, consisting of proceeds from the exercise of employee stock options and purchase of shares under our employee stock purchase plan, offset by payments of finance leases.

Critical Accounting Policies and Significant Judgments and Estimates

Our condensed financial statements have been prepared in accordance with GAAP.

The preparation of these condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the

reported revenue generated, and expenses incurred during the reporting periods.

We base our estimates on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates under different assumptions or conditions.

There have been no changes to our critical accounting policies and estimates described in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025, that have had a material impact on our condensed financial statements and related notes.

There have been no changes to our critical accounting policies and estimates described in the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 4, 2026, that have had a material impact on our condensed financial statements and related notes.

Quantitative and Qualitative Disclosures About Market Risk

1 unchanged sentence

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