What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-05 compared with 2025-05-06 · 119 added, 74 removed, 307 unchanged (39% of the section changed)

24 unchanged sentences

Many of our customer contracts contain termination for convenience provisions.

For the three months ended March 31, 2025, we generated $883.9 million in revenue, reflecting a 39% growth rate from the three months ended March 31, 2024, when we generated $634.3 million in revenue.

In the three months ended March 31, 2025, we generated income from operations of $176.0 million, or adjusted income from operations of $390.7 million when excluding stock-based compensation and related employer payroll taxes.

In the three months

ended March 31, 2024, we generated income from operations of $80.9 million, or adjusted income from operations of $226.5 million when excluding stock-based compensation and related employer payroll taxes.

In the three months ended March 31, 2025, our gross profit was $710.9 million, reflecting a gross margin of 80%, or 82% when excluding stock-based compensation.

In the three months ended March 31, 2024, our gross profit was $518.1 million, reflecting a gross margin of 82%, or 83% when excluding stock-based compensation.

For the three months ended June 30, 2025, we generated $1.0 billion in revenue, reflecting a 48% growth rate from the three months ended June 30, 2024 when we generated $678.1 million in revenue.

For the six months ended June 30, 2025, we generated $1.9 billion in revenue, reflecting a 44% growth rate from the six months ended June 30, 2024 when we generated $1.3 billion in revenue.

In the three months ended June 30, 2025, we generated income from operations of $269.3 million, or adjusted income from operations of $464.4 million when excluding stock-based compensation and related employer payroll taxes.

In the three months ended June 30, 2024, we generated income from operations of $105.3 million, or adjusted income from operations of $253.6

million when excluding stock-based compensation and related employer payroll taxes.

In the six months ended June 30, 2025, we generated income from operations of $445.4 million, or adjusted income from operations of $855.1 million when excluding stock-based compensation and related employer payroll taxes.

In the six months ended June 30, 2024, we generated income from operations of $186.2 million, or adjusted income from operations of $480.0 million when excluding stock-based compensation and related employer payroll taxes.

In the three months ended June 30, 2025, our gross profit was $810.8 million, reflecting a gross margin of 81%, or 82% when excluding stock-based compensation.

In the three months ended June 30, 2024, our gross profit was $549.6 million, reflecting a gross margin of 81%, or 83% when excluding stock-based compensation.

In the six months ended June 30, 2025, our gross profit was $1.5 billion, reflecting a gross margin of 81%, or 82% when excluding stock-based compensation.

In the six months ended June 30, 2024, our gross profit was $1.1 billion, reflecting a gross margin of 81%, or 83% when excluding stock-based compensation.

For more information about our adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes;

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We define a customer as an organization from which we have recognized revenue during the trailing twelve-month period.

During the period ended March 31, 2025, we had 769 customers, including companies in various commercial sectors and government agencies around the world.

During the period ended March 31, 2024, we had 554 customers.

During the period ended June 30, 2025, we had 849 customers, including companies in various commercial sectors and government agencies around the world.

During the period ended June 30, 2024, we had 593 customers.

For large government agencies, where a single institution has multiple divisions, units, or subsidiary agencies, each such division, unit, or subsidiary agency that enters into a separate contract with us and is invoiced as a separate entity is treated as a separate customer.

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We have built lasting and significant customer relationships and partnerships with some of the world’s leading government institutions and companies.

Our average revenue for the top twenty customers during the trailing twelve months ended March 31, 2025 was $69.9 million, which grew 26% from an average of $55.5 million in revenue from the top twenty customers during the trailing twelve months ended March 31, 2024, demonstrating our expanding relationships with existing customers.

Our average revenue for the top twenty customers during the trailing twelve months ended June 30, 2025 was $74.7 million, which grew 30% from an average of $57.3 million in revenue from the top twenty customers during the trailing twelve months ended June 30, 2024, demonstrating our expanding relationships with existing customers.

Organizations in the commercial and government sectors face similar challenges when it comes to managing data, and we intend to expand our reach in both markets moving forward.

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We manage customers at the account level, not by industry or sector, so that we can optimize on the specific growth opportunities for each customer.

In the three months ended March 31, 2025, 55% of our revenue came from government customers and 45% came from commercial customers.

In the six months ended June 30, 2025, 55% of our revenue came from government customers and 45% came from commercial customers.

customers have been a meaningful source of revenue growth for our business.

In the three months ended March 31, 2025, we generated 71% of our revenue from customers in the United States and the remaining 29% from non-U.S.

In the six months ended June 30, 2025, we generated 72% of our revenue from customers in the United States and the remaining 28% from non-U.S.

Revenue from our U.S.

customers during the trailing twelve months ended March 31, 2025 was $2.1 billion, which grew 47% from the prior twelve-month period.

customers during the trailing twelve months ended June 30, 2025 was $2.4 billion, which grew 55% from the prior twelve-month period.

We expect that U.S.

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The speed with which our platforms can be deployed has significantly expanded the range of potential customers with which we plan on partnering over the long term.

We anticipate that our reach among an increasingly broad set of customers, in both the commercial and government sectors, will accelerate moving forward.

We anticipate that our reach among an increasingly broad set of customers, in both

the commercial and government sectors, will accelerate moving forward.

We believe that, as these new partners grow, we will grow with them.

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Macroeconomic Trends

As a corporation with an international presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, geopolitical tensions, heightened interest rates, monetary policy changes, foreign currency fluctuations, and the imposition of tariffs or other impacts on trade relations.

As a corporation with an international presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, geopolitical tensions, heightened interest rates, monetary policy changes, foreign currency fluctuations, and the potential or actual imposition of tariffs or other impacts on trade relations.

Additionally, these macroeconomic impacts have disrupted, and may continue to disrupt, the operations of our customers and prospective customers.

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subsidiaries may hold monetary assets and liabilities in currencies other than their functional currency (primarily the Japanese Yen (“JPY”), Euro, and GBP), which could subject our results of operations and cash flows to adverse fluctuations due to changes in such foreign currency exchange rates as compared to the U.S.

For the three months ended March 31, 2025 such impacts were not material to our financial position or results of operations.

For the six months ended June 30, 2025 such impacts were not material to our financial position or results of operations.

Customer Impacts

9 unchanged sentences

Our software engineers working with existing customers often manage the deployment and operation of our platforms as well as identify new ways that those platforms can be used.

calculate the contribution by segment, we allocate cost of revenue and sales and marketing expenses, excluding stock-based compensation, to an account pro rata based on headcount and time spent on the account during the period.

To calculate the contribution by segment, we allocate cost of revenue and sales and marketing expenses, excluding stock-based compensation, to an account pro rata based on headcount and time spent on the account during the period.

To the extent certain costs or personnel are not directly assigned to a specific account, they are allocated pro rata based on total headcount staffed during such period.

24 unchanged sentences

Contribution Margin

The following table provides a reconciliation of contribution margin for the three months ended March 31, 2025 and 2024 (in thousands, except percentages):

Three Months Ended March 31,

The following table provides a reconciliation of contribution margin for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Income from operations $ 269,317 $ 105,339 $ 445,365 $ 186,220

8 unchanged sentences

Gross Profit and Gross Margin, Excluding Stock-Based Compensation

The following table provides a reconciliation of gross profit and gross margin, excluding stock-based compensation for the three months ended March 31, 2025 and 2024 (in thousands, except percentages):

Three Months Ended March 31,

The following table provides a reconciliation of gross profit and gross margin, excluding stock-based compensation for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Gross profit $ 810,763 $ 549,572 $ 1,521,648 $ 1,067,654

3 unchanged sentences

Adjusted Income from Operations

The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Income from operations $ 269,317 $ 105,339 $ 445,365 $ 186,220

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We agree to provide continuous access to our hosted software throughout the contract term.

Revenue associated with Palantir Cloud subscriptions is

generally recognized over the contract term on a ratable basis, which is consistent with the transfer of control of the Palantir services to the customer.

Revenue associated with Palantir Cloud subscriptions is generally recognized over the contract term on a ratable basis, which is consistent with the transfer of control of the Palantir services to the customer.

On-Premises Software

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The following table summarizes our condensed consolidated statements of operations data (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenue $ 1,003,697 $ 678,134 $ 1,887,552 $ 1,312,472

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The following table sets forth the components of our condensed consolidated statements of operations data as a percentage of revenue:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenue 100 % 100 % 100 % 100 %

14 unchanged sentences

Net income attributable to common stockholders 33 % 20 % 29 % 18 %

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

Three Months Ended March 31, Change

2025 2024 Amount %

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 Amount % 2025 2024 Amount %

Government $ 552,983 $ 370,767 $ 182,216 49 % $ 1,039,946 $ 706,140 $ 333,806 47 %

1 unchanged sentence

Total revenue $ 1,003,697 $ 678,134 $ 325,563 48 % $ 1,887,552 $ 1,312,472 $ 575,080 44 %

Revenue increased by $249.5 million, or 39%, for the three months ended March 31, 2025 compared to the same period in 2024.

Revenue from government customers increased by $151.6 million, or 45%, for the three months ended March 31, 2025 compared to the same period in 2024.

Revenue increased by $325.6 million, or 48%, for the three months ended June 30, 2025 compared to the same period in 2024.

Revenue from government customers increased by $182.2 million, or 49%, for the three months ended June 30, 2025 compared to the same period in 2024.

Of the increase, $174.2 million was from government customers existing as of December 31, 2024.

Revenue from U.S.

government customers was $373.0 million for the three months ended March 31, 2025 compared to $256.7 million for the same period in 2024.

Revenue from commercial customers increased by $97.9 million, or 33%, for the three months ended March 31, 2025 compared to the same period in 2024.

government customers was $426.1 million for the three months ended June 30, 2025 compared to $278.0 million for the same period in 2024.

Revenue from commercial customers increased by $143.3 million, or 47%, for the three months ended June 30, 2025 compared to the same period in 2024.

Of the increase, $86.5 million was from commercial customers existing as of December 31, 2024, including a decrease of $4.1 million of revenue from Strategic Commercial Contracts.

Revenue from U.S.

commercial customers was $255.5 million for the three months ended March 31, 2025 compared to $149.7 million for the same period in 2024, a 71% increase.

commercial customers was $306.5 million for the three months ended June 30, 2025 compared to $159.2 million for the same period in 2024, a 92.5% increase.

Revenue increased by $575.1 million, or 44%, for the six months ended June 30, 2025 compared to the same period in 2024.

Revenue from government customers increased by $333.8 million, or 47%, for the six months ended June 30, 2025 compared to the same period in 2024.

Of the increase, $322.9 million was from government customers existing as of December 31, 2024.

Revenue from U.S.

government customers was $799.1 million for the six months ended June 30, 2025 compared to $534.7 million for the same period in 2024.

Revenue from commercial customers increased by $241.3 million, or 40%, for the six months ended June 30, 2025 compared to the same period in 2024.

Of the increase, $159.7 million was from commercial customers existing as of December 31, 2024, including a decrease of $22.8 million of revenue from Strategic Commercial Contracts.

Revenue from U.S.

commercial customers was $562.0 million for the six months ended June 30, 2025 compared to $308.9 million for the same period in 2024, a 82% increase.

Generally, increases in revenue from our existing customers are related to increased adoption of our products and services within their organizations.

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Cost of Revenue and Gross Profit

Three Months Ended March 31, Change

2025 2024 Amount %

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount % 2025 2024 Amount %

Cost of revenue $ 192,934 $ 128,562 $ 64,372 50 % $ 365,904 $ 244,818 $ 121,086 49 %

1 unchanged sentence

Gross margin 81 % 81 % — % 81 % 81 % — %

Cost of revenue for the three months ended March 31, 2025 increased by $56.7 million, or 49%, compared to the same period in 2024.

The increase was primarily due to increases of $17.6 million in subcontractor and field service representatives expenses, $13.7 million in third-party cloud hosting services, and $11.5 million in stock-based compensation expense and related expenses.

Our gross margin for the three months ended March 31, 2025 decreased from 82% for the same period in 2024 to 80% as a result of cost of revenue growth outpacing revenue growth.

Cost of revenue for the three months ended June 30, 2025 increased by $64.4 million, or 50%, compared to the same period in 2024.

The increase was primarily due to increases of $25.9 million in subcontractor expenses and field service representatives, $15.2 million in third-party cloud hosting services, $7.5 million in payroll and other payroll-related costs, and $6.6 million in stock-based compensation expense and related expenses.

Our gross margin for the three months ended June 30, 2025 and 2024 was 81%.

Cost of revenue for the six months ended June 30, 2025 increased by $121.1 million, or 49%, compared to the same period in 2024.

The increase was primarily due to increases of $43.5 million in subcontractor expenses and field-service representatives, $28.9 million in third-party cloud hosting services, $18.1 million in stock-based compensation expense and related expenses, and $15.3 million in payroll and other payroll-related costs.

Our gross margin for the six months ended June 30, 2025 and 2024 was 81%.

For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.

Operating Expenses

Three Months Ended March 31, Change

2025 2024 Amount %

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount % 2025 2024 Amount %

Sales and marketing $ 243,788 $ 196,809 $ 46,979 24 % $ 480,097 $ 389,986 $ 90,111 23 %

3 unchanged sentences

Sales and Marketing

Sales and marketing expenses increased by $43.1 million, or 22%, for the three months ended March 31, 2025 compared to the same period in 2024.

Sales and marketing costs increased by $47.0 million, or 24%, for the three months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $18.2 million in stock-based compensation expense and related expenses and $16.0 million in payroll and other payroll-related costs.

Sales and marketing costs increased by $90.1 million, or 23%, for the six months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $41.1 million in stock-based compensation expense and related expenses and $23.8 million in payroll and other payroll-related costs.

For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.

Research and Development

Research and development expenses increased by $24.8 million, or 23%, for the three months ended March 31, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $13.5 million in stock-based compensation expense and related expenses and $4.0 million in payroll and other payroll-related costs.

Research and development costs increased by $26.3 million, or 24%, for the three months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $10.3 million in stock-based compensation expense and related expenses, $6.9 million in third-party cloud hosting services, and $4.8 million in payroll and other payroll-related costs.

Research and development costs increased by $51.1 million, or 23%, for the six months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $23.8 million in stock-based compensation expense and related expenses, $9.9 million in third-party cloud hosting services, and $8.8 million in payroll and other payroll-related costs.

For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.

General and Administrative

General and administrative expenses increased by $29.7 million, or 22%, for the three months ended March 31, 2025 compared to the same period in 2024.

The increase was primarily due to an increase of $21.1 million in stock-based compensation expense and related expenses.

General and administrative costs increased by $24.0 million, or 17%, for the three months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to an increase of $11.8 million in stock-based compensation expense and related expenses and $4.2 million in payroll and other payroll-related costs.

General and administrative costs increased by $53.6 million, or 20%, for the six months ended June 30, 2025 compared to the same period in 2024.

The increase was primarily due to an increase of $32.9 million in stock-based compensation expense and related expenses and $7.8 million in payroll and other payroll-related costs.

For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.

Stock-Based Compensation

Three Months Ended March 31, Change

2025 2024 Amount %

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount % 2025 2024 Amount %

Cost of revenue $ 14,973 $ 12,402 $ 2,571 21 % $ 29,989 $ 22,818 $ 7,171 31 %

3 unchanged sentences

Total stock-based compensation expense $ 159,971 $ 141,764 $ 18,207 13 % $ 315,310 $ 267,415 $ 47,895 18 %

Stock-based compensation expenses increased by $29.7 million, or 24%, for the three months ended March 31, 2025 compared to the same period in 2024.

The increase was driven by expense from new grants awarded since March 31, 2024, including restricted stock units (“RSUs”), performance-based RSUs (“P-RSUs”), and stock appreciation rights (“SARs’), partially offset by reductions in expense from equity awards that became fully vested and forfeitures.

Stock-based compensation expenses increased by $18.2 million, or 13%, and $47.9 million, or 18%, for the three and six months ended June 30, 2025 compared to the same periods in 2024, respectively.

The increase was driven by expense from new grants awarded since June 30, 2024, including restricted stock units (“RSUs”), performance-based RSUs (“P-RSUs”), and stock appreciation rights (“SARs”), partially offset by reductions in expense from equity awards that became fully vested and forfeitures.

Interest Income

Three Months Ended March 31, Change

2025 2024 Amount

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount 2025 2024 Amount

Interest income $ 56,255 $ 46,593 $ 9,662 $ 106,696 $ 89,945 $ 16,751

Interest income increased by $7.1 million for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in our interest-bearing cash, cash equivalents, and investments in short-term U.S.

Interest income increased by $9.7 million and $16.8 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to an increase in our interest-bearing cash, cash equivalents, and investments in short-term U.S.

Treasury securities.

Other Income (Expense), Net

Three Months Ended March 31, Change

2025 2024 Amount

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount 2025 2024 Amount

Other income (expense), net $ 6,596 $ (11,173) $ 17,769 $ 3,423 $ (24,680) $ 28,103

Other income (expense), net changed by $10.3 million for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to favorable changes in foreign currency exchange gains and losses and upward adjustments related to privately-held equity securities.

Other income (expense), net changed by $17.8 million and $28.1 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to unrealized gains and lower realized losses from marketable securities.

Provision for Income Taxes

Three Months Ended March 31, Change

2025 2024 Amount

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2025 2024 Amount 2025 2024 Amount

Provision for income taxes $ 3,596 $ 5,189 $ (1,593) $ 9,195 $ 9,844 $ (649)

Provision for income taxes increased by an immaterial amount for the three months ended March 31, 2025 compared to the same period in 2024.

Provision for income taxes decreased by an immaterial amount for the three and six months ended June 30, 2025 compared to the same periods in 2024.

For additional information see Note 10.

Income Taxes in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses.

We are evaluating the full effects of the legislation on our estimated annual effective tax rate but do not expect that the legislation will have a material impact on our consolidated financial statements.

As the legislation was signed into law after the close of the second quarter ended June 30, 2025, any potential impacts are not included in our operating results included in this Quarterly Report on Form 10-Q.

Liquidity and Capital Resources

We generated positive cash flow from operations for the three months ended March 31, 2025.

We had cash, cash equivalents, and short-term U.S.

Treasury securities totaling $5.4 billion available as of March 31, 2025.

We generated positive cash flow from operations for the six months ended June 30, 2025.

We had cash and cash equivalents and short-term U.S.

Treasury securities totaling $6.0 billion available as of June 30, 2025.

We believe that we have sufficient liquidity to meet our operating requirements for at least the next twelve months and thereafter for the foreseeable future.

We continue to evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance future capital requirements.

As of March 31, 2025, our accumulated deficit balance was $5.0 billion, and our principal sources of liquidity were cash, cash equivalents, and short-term U.S.

As of June 30, 2025, our accumulated deficit balance was $4.6 billion, and our principal sources of liquidity were cash, cash equivalents, and short-term U.S.

Treasury securities totaling $6.0 billion.

As of March 31, 2025, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500.0 million under our credit facility.

As of June 30, 2025, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500 million under our credit facility.

For more information, see Note 6.

1 unchanged sentence

In August 2023, our Board of Directors authorized a stock repurchase program of up to $1.0 billion of our outstanding shares of Class A common stock (the “Share Repurchase Program”).

During the three months ended March 31, 2025, the Company repurchased and subsequently retired 0.2 million shares of its Class A common stock for an aggregate amount, including commissions, of $18.0 million under the Share Repurchase Program.

As of March 31, 2025, approximately $917.8 million of the originally authorized amount under our Share Repurchase Program remained available for future repurchases.

During the six months ended June 30, 2025, the Company repurchased and subsequently retired 0.4 million shares of its Class A common stock for an aggregate amount, including commissions, of $36.6 million under the Share Repurchase Program.

As of June 30, 2025, approximately $899.2 million of the originally authorized amount under our Share Repurchase Program remained available for future repurchases.

Our future capital requirements will depend on many factors, including, but not limited to, the rate of our growth, our ability to attract and retain customers and their willingness and ability to pay for our products and services, and the timing and extent of spending to support our efforts to market and develop our products.

7 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

Net cash provided by (used in):

3 unchanged sentences

Effect of foreign exchange on cash, cash equivalents, and restricted cash 11,518 (4,948)

3,980 (4,024)

Net decrease in cash, cash equivalents, and restricted cash

1 unchanged sentence

Operating Activities

Net cash provided by operating activities was $310.3 million and $129.6 million for the three months ended March 31, 2025 and 2024, respectively.

The increase was primarily driven by revenue growth partially offset by timing of payments received from customers.

Net cash provided by operating activities was $849.5 million and $273.8 million for the six months ended June 30, 2025 and 2024, respectively.

The increase was primarily driven by revenue growth, timing of payments from and billings to customers, and timing of payments to vendors.

Investing Activities

Net cash used in investing activities was $1.4 billion and $511.2 million for the three months ended March 31, 2025 and 2024, respectively.

Net cash used in investing activities was $2.0 billion and $0.7 billion for the six months ended June 30, 2025 and 2024, respectively.

The increase in cash used in investing activities was primarily due to increased purchases of short-term U.S.

Treasury securities compared to the prior year.

Treasury securities compared to prior year.

Financing Activities

Net cash used in financing activities was $28.9 million for the three months ended March 31, 2025 and net cash provided by financing activities was $75.2 million for the three months ended March 31, 2024.

Financing cash inflows consisted primarily of proceeds from the exercise of common stock options.

Net cash used in financing activities was $22.4 million for the six months ended June 30, 2025 and net cash provided by financing activities was $73.3 million for the six months ended June 30, 2024.

Financing cash inflows consisted primarily of

proceeds from the exercise of common stock options.

Financing cash outflows were driven by taxes paid related to the net share settlement of SARs and repurchases of our Class A common stock.

18 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