What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-07-24 compared with 2025-04-23 · 94 added, 71 removed, 251 unchanged (40% of the section changed)

25 unchanged sentences

However, if the conflicts continue or worsen, leading to greater global economic disruptions and uncertainty, our business and results of operations could be materially impacted.

Our customers in these regions represented an immaterial portion of our net assets as of March 31, 2025 and December 31, 2024, and of our total consolidated revenues for each of the three months ended March 31, 2025 and 2024.

Our customers in these regions represented an immaterial portion of our net assets as of June 30, 2025 and December 31, 2024, and of our total consolidated revenues for each of the three and six months ended June 30, 2025 and 2024.

Additionally, other macroeconomic events, including interest rates, global inflation and tariffs, have led to economic uncertainty in the global economy.

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Current remaining performance obligations (“cRPO”) represents RPO that will be recognized as revenue in the next 12 months.

As of March 31, 2025, our RPO was $22.1 billion, of which 47% represented cRPO.

RPO and cRPO increased by 25% and 22%, respectively, compared to March 31, 2024.

As of June 30, 2025, our RPO was $23.9 billion, of which 46% represented cRPO.

RPO and cRPO increased by 29% and 24%, respectively, compared to June 30, 2024.

Factors that may cause our RPO to vary from period to period include the following:

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We count the total number of customers with annual contract value (“ACV”) greater than $5 million as of the end of the period.

We had 508 and 425 customers with ACV greater than $5 million as of March 31, 2025 and 2024, respectively.

We had 528 and 442 customers with ACV greater than $5 million as of June 30, 2025 and 2024, respectively.

For purposes of customer count, a customer is defined as an entity that has a unique Dunn & Bradstreet Global Ultimate (“GULT”) Data Universal Numbering System (“DUNS”) number and an active subscription contract as of the measurement date.

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A calculation of free cash flow is provided below:

Three Months Ended March 31, % Change

Six Months Ended June 30, % Change

(dollars in millions)

Free cash flow:

Net cash provided by operating activities $ 1,677 $ 1,341 25%

GAAP net cash provided by operating activities

$ 2,393 $ 1,961 22%

Purchases of property and equipment (395) (397) (1%)

Business combination and other related costs 14 20 (30%)

Free cash flow $ 1,477 $ 1,225 21%

Non-GAAP free cash flow

$ 2,012 $ 1,584 27%

We have historically seen higher collections in the quarter ended March 31 due to seasonality in timing of entering into customer contracts, which is significantly higher in the quarter ended December 31.

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This non-GAAP measure is used by the chief operating decision maker to allocate resources and assess performance.

We define non-GAAP consolidated income from operations as income from operations excluding certain non-cash or non-recurring items, including stock-based compensation expense, amortization of purchased intangibles, legal settlements and business combination and other related costs.

We believe these adjustments provide useful supplemental information to investors and facilitate the analysis of our operating results and comparison of those results across reporting periods.

The following table shows the reconciliation of our reported consolidated income from operations to non-GAAP consolidated income from operations.

Three Months Ended March 31, % Change

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions)

GAAP income from operations

1 unchanged sentence

Stock-based compensation

499 444 12% 969 866 12%

Amortization of purchased intangibles

25 24 4% 46 48 (4%)

Business combination and other related costs

14 12 17% 25 25 —%

Impairment of assets

30 — 100% 30 — 100%

Severance costs

29 — 100% 29 — 100%

Non-GAAP income from operations

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We adjust our renewal rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occurring at the time of renewal.

Our renewal rate was 98% for each of the three months ended March 31, 2025 and 2024.

Our renewal rate was 98% for each of the three and six months ended June 30, 2025 and 2024.

As our renewal rate is impacted by the timing of renewals, which could occur in advance of, or subsequent to the original contract end date, period-to-period comparison of renewal rates may not be meaningful.

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We also generate revenues from certain professional services and from training of customers and partner personnel, through both our direct team and indirect sales channel.

Revenues from our direct sales organization represented 77% of our total revenues for the three months ended March 31, 2025 and 78% of our total revenues for the three months ended March 31, 2024.

Revenues from our direct sales organization represented 78% of our total revenues for each of the three and six months ended June 30, 2025 and 79% and 78% of our total revenues for the three and six months ended June 30, 2024, respectively.

For purposes of calculating revenues from our direct sales organization, revenues from systems integrators and managed services providers are included as part of the direct sales organization.

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Fees paid by us to third-party partners are primarily recognized as cost of revenues as the professional services are delivered.

Cost of revenues associated with our professional services engagements contracted with third-party partners as a percentage of professional services and other revenues was 34% for the three months ended March 31, 2025 and 15% for the three months ended March 31, 2024.

Cost of revenues associated with our professional services engagements contracted with third-party partners as a percentage of professional services and other revenues was 33% and 34% for the three and six months ended June 30, 2025, respectively, and 21% and 18% for the three and six months ended June 30, 2024, respectively.

Sales and Marketing

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Provision for income taxes consists of federal, state and foreign income taxes.

Our income tax provision for the three months ended March 31, 2025 is primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.

Our income tax provision for the three and six months ended June 30, 2025 is primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.

We continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years.

Comparison of the Three Months Ended March 31, 2025 and 2024

Three Months Ended March 31, % Change

(dollars in millions)

Comparison of the Three and Six Months Ended June 30, 2025 and 2024

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Subscription $ 3,113 $ 2,542 22% $ 6,118 $ 5,065 21%

5 unchanged sentences

Total 100% 100% 100% 100%

Subscription revenues increased by $482 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by increased purchases by new and existing customers.

Included in subscription revenues is $157 million and $126 million of revenues recognized upfront from the delivery of software associated with self-hosted offerings during the three months ended March 31, 2025 and 2024, respectively.

Subscription revenues increased by $571 million and $1,053 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily driven by increased purchases by new and existing customers.

Included in subscription revenues is $109 million and $68 million of revenues recognized upfront from the delivery of software associated with self-hosted offerings during the three months ended June 30, 2025 and 2024, respectively, and $266 million and $194 million during the six months ended June 30, 2025 and 2024, respectively.

We expect subscription revenues for the year ending December 31, 2025 to increase in absolute dollars and remain relatively flat as a percentage of revenue as we continue to add new customers and existing customers increase their usage of our products compared to the year ended December 31, 2024.

Our expectations for revenues, cost of revenues and operating expenses for the remainder of 2025 are based on the 31-day average of foreign exchange rates for March 31, 2025.

Professional services and other revenues increased by $3 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Our expectations for revenues, cost of revenues and operating expenses for the remainder of 2025 are based on the 30-day average of foreign exchange rates for June 30, 2025.

Professional services and other revenues increased by $17 million and $20 million during the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to an increase in services and trainings provided to new and existing customers.

We expect professional services and other revenues for the year ending December 31, 2025 to increase in absolute dollars and to remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

Cost of Revenues and Gross Profit Percentage

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Cost of revenues:

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Gross profit $ 2,491 $ 2,075 $ 4,928 $ 4,158

Cost of subscription revenues increased by $120 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to increased headcount and increased costs to support the growth of our subscription offerings including costs to support customers in regulated markets.

Personnel-related costs, including stock-based compensation and overhead expenses, increased by $62 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Depreciation expense related to infrastructure hardware equipment and expenses associated with software, maintenance, and other costs, which together support the expansion of our data center capacity, increased by $32 million and $19 million, respectively, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Cost of subscription revenues increased by $156 million and $276 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to increased headcount and increased costs to support the growth of our subscription offerings including costs to support customers in regulated markets.

Personnel-related costs, including stock-based compensation and overhead expenses, increased by $82 million and $144 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024.

Depreciation expense related to infrastructure hardware equipment and expenses associated with software, maintenance, third-party cloud services and other costs, which together support the expansion of data center capacity, increased by $65 million and $126 million, respectively, for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024.

We expect our cost of subscription revenues for the year ending December 31, 2025 to increase in absolute dollars as we provide subscription services to more customers and increase usage within our customer instances and increase slightly as a percentage of revenue compared to the year ended December 31, 2024.

1 unchanged sentence

To the extent future acquisitions are consummated, our cost of subscription revenues may increase due to additional non-cash charges associated with the amortization of intangible assets acquired.

Our subscription gross profit percentage was 81% for the three months ended March 31, 2025 and 83% for the three months ended March 31, 2024.

Our subscription gross profit percentage was 80% and 81% for the three and six months ended June 30, 2025, respectively, and 82% for each of the three and six months ended June 30, 2024.

We expect our subscription gross profit percentage to decrease slightly for the year ending December 31, 2025 compared to the year ended December 31, 2024.

Cost of professional services and other revenues increased by $11 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by an increase in partner ecosystem spend to further help accelerate customer value realization.

Our professional services and other gross loss percentage was 8% for the three months ended March 31, 2025, compared to a gross profit percentage of 1% for the three months ended March 31, 2024, and was primarily driven by partner ecosystem spend to further help accelerate customer value realization increasing at a faster rate than revenue.

Cost of professional services and other revenues increased by $16 million and $27 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily driven by an increase in partner ecosystem spend to further help accelerate customer value realization.

Our professional services and other gross profit percentage was 3% for the three months ended June 30, 2025 compared to 2% for the three months ended June 30, 2024.

Our professional services and other gross loss percentage was 2% for the six months ended June 30, 2025 compared to a gross profit percentage of 2% for the six months ended June 30, 2024, and was primarily driven by partner ecosystem spend to further help accelerate customer value realization increasing at a faster rate than revenue.

We expect our professional services and other gross loss percentage to increase for the year ending December 31, 2025 compared to the year ended December 31, 2024.

Sales and Marketing

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Sales and marketing $ 1,128 $ 960 18% $ 2,182 $ 1,883 16%

Percentage of revenues 35% 37% 35% 36%

Sales and marketing expenses increased by $131 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to increased headcount resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $100 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Amortization expenses associated with deferred commissions increased $13 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in contracts with new customers, expansion and renewal contracts.

Other sales and marketing program expenses, which include branding, costs associated with purchasing advertising, marketing events and market data, increased by $11 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Sales and marketing expenses increased by $168 million and $299 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to increased headcount resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $103 million and $203 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024.

Amortization expenses associated with deferred commissions increased by $15 million and $28 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to an increase in contracts with new customers, expansion and renewal contracts.

Other sales and marketing program expenses, which include branding, costs associated with purchasing advertising, marketing events and market data, increased by $32 million and $43 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to increased program costs and travel costs for our annual Knowledge user conference.

We expect sales and marketing expenses for the year ending December 31, 2025 to increase in absolute dollars and to decrease slightly as a percentage of revenue compared to the year ended December 31, 2024, as we continue to see leverage from increased sales productivity and marketing efficiencies.

Research and Development

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Research and development $ 734 $ 643 14% $ 1,437 $ 1,249 15%

Percentage of revenues 23% 24% 23% 24%

Research and development (“R&D”) expenses increased by $97 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to increased headcount, resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $83 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Outside services increased $10 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Research and development (“R&D”) expenses increased by $91 million and $188 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to increased headcount, resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $85 million and $168 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024.

We expect R&D expenses for the year ending December 31, 2025 to increase in absolute dollars but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024, as we continue to improve the existing functionality of our services, develop new applications to fill market needs and enhance our core platform.

General and Administrative

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

General and administrative $ 271 $ 232 17% $ 500 $ 454 10%

Percentage of revenues 8% 9% 8% 9%

General and administrative (“G&A”) expenses increased by $7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in personnel-related costs, including stock-based compensation.

We expect G&A expenses for the year ending December 31, 2025 to increase in absolute dollars and to decrease slightly as a percentage of revenue compared to the year ended December 31, 2024, as we continue to see leverage from continued G&A productivity.

General and administrative (“G&A”) expenses increased by $39 million and $46 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to impairment of assets of $30 million and an increase in personnel-related costs, including stock-based compensation.

We expect G&A expenses for the year ending December 31, 2025 to increase in absolute dollars and to remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024, as we continue to see leverage from continued G&A productivity.

Stock-based Compensation

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Cost of revenues:

7 unchanged sentences

Percentage of revenues 16% 17% 15% 17%

Stock-based compensation increased by $48 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to additional grants to current and new employees.

Stock-based compensation increased by $55 million and $103 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily due to additional grants to current and new employees.

Stock-based compensation is inherently difficult to forecast due to fluctuations in our stock price.

Based upon our stock price as of March 31, 2025, we expect stock-based compensation to continue to increase in absolute dollars for the year ending December 31, 2025 as we continue to issue stock-based awards to our employees, but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

Based upon our stock price as of June 30, 2025, we expect stock-based compensation to continue to increase in absolute dollars for the year ending December 31, 2025 as we continue to issue stock-based awards to our employees, but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

We expect stock-based compensation as a percentage of revenue to decline over time as we continue to grow.

1 unchanged sentence

Our international operations have provided and will continue to provide a significant portion of our total revenues.

Revenues outside North America represented 36% and 37% of total revenues for the three months ended March 31, 2025 and 2024, respectively.

Revenues outside North America represented 38% and 37% of total revenues for the three and six months ended June 30, 2025, respectively, and 37% for each of the three and six months ended June 30, 2024.

We primarily transact in certain foreign currencies for sales outside of the United States.

The movement of the U.S.

Dollar had an immaterial impact on our revenues for the three months ended March 31, 2025.

Dollar had an immaterial impact on our revenues for the three and six months ended June 30, 2025.

In addition, we primarily transact in several foreign currencies for cost of revenues and operating expenses outside of the United States.

The movement of the U.S.

Dollar had an immaterial impact on our expenses for the three months ended March 31, 2025.

Dollar had an immaterial impact on our expenses for the three and six months ended June 30, 2025.

Interest Income

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Interest income $ 116 $ 104 12% $ 231 $ 205 13%

Percentage of revenues 4 % 4% 4 % 4%

Interest income increased by $14 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by an increase in investment income from our managed portfolio resulting from higher portfolio balances.

Interest income increased by $12 million and $26 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024, primarily driven by an increase in investment income from our managed portfolio resulting from higher portfolio balances.

Other Expense, net

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Interest expense $ (6) $ (6) —% $ (12) $ (12) —%

2 unchanged sentences

Percentage of revenues —% —% —% —%

Other expense, net increased by $3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Other expense, net decreased by $7 million and $4 million for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024.

To mitigate our risks associated with fluctuations in foreign currency exchange rates, we enter into foreign currency forward contracts with maturities of 12 months or less to hedge a portion of our net outstanding monetary assets and liabilities.

These hedging contracts may reduce, but cannot entirely eliminate, the impact of adverse currency exchange rate movements.

The gains (losses) recognized for these foreign currency forward contracts in other expense, net were immaterial for the three months ended March 31, 2025 and 2024.

The gains recognized for foreign currency forward contracts from derivatives not designated as hedging instruments in other expense, net of $86 million and $120 million, offset the remeasurement losses of the related foreign currency denominated assets and liabilities of $87 million and $125 million for the three and six months ended June 30, 2025, respectively.

The gains (losses) recognized for foreign currency forward contracts from derivatives not designated as hedging instruments were immaterial for each of the three and six months ended June 30, 2024.

Provision for Income Taxes

Three Months Ended March 31, % Change

(dollars in millions)

Three Months Ended June 30, % Change Six Months Ended June 30, % Change

2025 2024 2025 2024

(dollars in millions) (dollars in millions)

Income before income taxes $ 471 $ 334 41% $ 1,026 $ 759 35%

2 unchanged sentences

Effective tax rate 18% 22% 18% 20%

Our income tax provision was $95 million and $78 million for the three months ended March 31, 2025 and 2024, respectively.

Our income tax provision was $86 million and $181 million for the three and six months ended June 30, 2025, respectively, and $72 million and $150 million for the three and six months ended June 30, 2024, respectively.

The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.

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We have generated positive operating cash flows for more than ten years as we continue to grow our business in pursuit of our business strategy, and we expect to grow our business and generate positive cash flows from operations during 2025.

When assessing sources of liquidity, we also include cash and cash equivalents, short-term investments and long-term investments totaling $10.9 billion as of March 31, 2025.

When assessing sources of liquidity, we also include cash and cash equivalents, short-term investments and long-term investments totaling $10.8 billion as of June 30, 2025.

Our capital requirements are principally comprised of capital expenditures to support data center capacity expansion, non-contract workforce salaries, bonuses, commissions and benefits and, to a lesser extent, cancellable and non-cancellable licenses, operating leases and services arrangements that are integral to our business operations.

1 unchanged sentence

Operating lease obligations totaling $1,085 million are principally associated with leased facilities and have varying maturities with $656 million due over the next five years.

Our supply chain finance (“SCF”) program provides suppliers with the opportunity to sell their receivables due from us to a global financial institution.

A supplier’s election to receive early payment at a discounted amount from the financial institution does not change the amount that we must remit to the financial institution on our payment date, which is generally 90 days from the invoice date.

As of June 30, 2025, our outstanding payment obligations to suppliers participating in the SCF program totaled $49 million.

These obligations are included in accounts payable in our condensed consolidated balance sheets, and all activity related to these obligations is presented within operating activities in the condensed consolidated statements of cash flows.

We may repurchase our shares of common stock in the open market, in privately negotiated transactions or by other means, with the objective to return value to our stockholders and manage the dilution from future employee equity grants and employee stock purchase programs.

In May 2023, our board of directors authorized a program to repurchase up to $1.5 billion of our common stock and authorized an additional $3.0 billion in repurchases under the program in January 2025.

During the three months ended March 31, 2025, the Company repurchased 0.3 million shares of our common stock for $298 million.

During the three and six months ended June 30, 2025, the Company repurchased 0.4 million and 0.7 million shares of our common stock for $361 million and $659 million, respectively.

All repurchases were made in open market transactions.

Repurchases of common stock are recognized as treasury stock and held for future issuance.

As of March 31, 2025, approximately $3.0 billion of the authorized amount under the share repurchase program remained available for future repurchases.

As of June 30, 2025, approximately $2.6 billion of the authorized amount under the share repurchase program remained available for future repurchases.

We have also issued long-term debt to finance our business.

In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”).

Our free cash flows, together with our other sources of liquidity, are available to service our liabilities as well as our cancellable and non-cancellable arrangements.

Our operating cash flows, together with our other sources of liquidity, are available to service our liabilities as well as our cancellable and non-cancellable arrangements.

We anticipate cash flows generated from operations, cash, cash equivalents and investments will be sufficient to meet our liquidity needs for at least the next 12 months.

As we look beyond the next 12 months, we seek to continue to grow free cash flows necessary to fund our operations and grow our business.

As we look beyond the next 12 months, we seek to continue to grow cash flows necessary to fund our operations and grow our business.

If we require additional capital resources, we may seek to finance our operations from the current funds available or additional equity or debt financing.

Three Months Ended March 31,

Six Months Ended June 30,

(dollars in millions)

3 unchanged sentences

Net increase in cash, cash equivalents and restricted cash

$ 1,067 $ 160

Operating Activities

Net cash provided by operating activities was $1,677 million for the three months ended March 31, 2025 compared to $1,341 million for the three months ended March 31, 2024.

Net cash provided by operating activities was $2,393 million for the six months ended June 30, 2025 compared to $1,961 million for the six months ended June 30, 2024.

The net increase in operating cash flows was primarily due to higher collections driven by revenue growth.

Investing Activities

Net cash used in investing activities was $217 million for the three months ended March 31, 2025 compared to $734 million for the three months ended March 31, 2024.

The net decrease in cash used in investing activities was primarily due to a $573 million decrease in net purchases of investments, a $38 million decrease in purchases of non-marketable investments, partially offset by a $70 million increase in purchases of property and equipment, a $13 million increase in purchases of other intangible assets, and an $8 million increase in business combinations.

Net cash used in investing activities was $640 million for the six months ended June 30, 2025 compared to $1,105 million for the six months ended June 30, 2024.

The net decrease in cash used in investing activities was primarily due to a $506 million decrease in net purchases of investments and a $46 million increase in realized gains on foreign currency forward contracts from derivatives not designated as hedging instruments, partially offset by a $50 million increase in purchases of non-marketable investments, a $35 million increase in business combinations and a $4 million increase in purchases of other intangible assets.

Financing Activities

Net cash used in financing activities was $398 million for the three months ended March 31, 2025 compared to $443 million for the three months ended March 31, 2024.

The net decrease in cash used in financing activities is primarily due to an $184 million decrease in business combination related to the second installment payment in the acquisition of G2K Group GmbH made during the three months ended March 31, 2024 and a $22 million increase in proceeds from employee stock plans, partially offset by an increase in repurchases of common stock of $123 million and a $38 million increase in taxes paid related to net share settlement of equity awards.

Net cash used in financing activities was $944 million for the six months ended June 30, 2025 compared to $580 million for the six months ended June 30, 2024.

The net increase in cash used in financing activities is due to an increase in repurchases of common stock of $484 million and an $86 million increase in taxes paid related to net share settlement of equity awards, partially offset by a $184 million decrease in business combination related to the second installment payment in the acquisition of G2K Group GmbH and a $22 million increase in proceeds from employee stock plans.

Critical Accounting Policies and Significant Judgments and Estimates

3 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