What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-04 compared with 2025-08-05 · 100 added, 93 removed, 333 unchanged (37% of the section changed)

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We have built four principal software platforms, Gotham, Foundry, Apollo, and our Artificial Intelligence Platform (“AIP”).

Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of our existing machine learning technologies alongside generative AI models, including large language models (“LLMs”), directly within Gotham and/or Foundry to help operationalize AI on enterprise data.

Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of our existing machine learning technologies alongside generative and agentic AI models, including large language models (“LLMs”), directly within Gotham and/or Foundry to help operationalize AI on enterprise data.

For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond.

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Many of our customer contracts contain termination for convenience provisions.

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 the three months ended September 30, 2025, we generated $1.2 billion in revenue, reflecting a 63% growth rate from the three months ended September 30, 2024, when we generated $0.7 billion in revenue.

For the nine months ended September 30, 2025, we generated $3.1 billion in revenue, reflecting a 51% growth rate from the nine months ended September 30, 2024, when we generated $2.0 billion in revenue.

In the three months ended September 30, 2025 and 2024, we generated income from operations of $393.3 million and $113.1 million, respectively, or adjusted income from operations of $600.5 million and $275.5 million, respectively, when excluding stock-based compensation and related employer payroll taxes.

In the nine months ended September 30, 2025 and 2024, we generated income from operations of $838.6 million and $299.4 million, respectively, or adjusted income from operations of $1.5 billion and $0.8 billion, respectively, when excluding stock-based compensation and related employer payroll taxes.

In the three months ended September 30, 2025 and 2024, our gross profit was $973.8 million and $578.9 million, respectively, reflecting a gross margin of 82% and 80%, respectively, or 84% and 82%, respectively, when excluding stock-based compensation.

In the nine months ended September 30, 2025 and 2024, our gross profit was $2.5 billion and $1.6 billion, respectively, reflecting a gross margin of 81% and 81%, respectively, or 83% and 83%, respectively, 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 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.

During the period ended September 30, 2025, we had 911 customers, including companies in various commercial sectors and government agencies around the world.

During the period ended September 30, 2024, we had 629 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 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.

Our average revenue for the top twenty customers during the trailing twelve months ended September 30, 2025 was $83.0 million, which grew 38% from an average of $60.1 million in revenue from the top twenty customers during the trailing twelve months ended September 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 six months ended June 30, 2025, 55% of our revenue came from government customers and 45% came from commercial customers.

In the nine months ended September 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 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.

In the nine months ended September 30, 2025, we generated 73% of our revenue from customers in the United States and the remaining 27% from non-U.S.

Revenue from our U.S.

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

customers during the trailing twelve months ended September 30, 2025 was $2.8 billion, which grew 64% from the prior twelve-month period.

We expect that U.S.

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

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

Customer Impacts

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Contribution Margin

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,

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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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 and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

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

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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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 and six months ended June 30, 2025 and 2024 (in thousands, except percentages):

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

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 nine months ended September 30, 2025 and 2024 (in thousands, except percentages):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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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 June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Net income attributable to common stockholders 40 % 20 % 33 % 19 %

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

Comparison of the Three and Nine Months Ended Months Ended September 30, 2025 and 2024

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount % 2025 2024 Amount %

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Total revenue $ 1,181,092 $ 725,516 $ 455,576 63 % $ 3,068,644 $ 2,037,988 $ 1,030,656 51 %

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.

Revenue increased by $455.6 million, or 63%, for the three months ended September 30, 2025 compared to the same period in 2024.

Revenue from government customers increased by $224.3 million, or 55%, for the three months ended September 30, 2025 compared to the same period in 2024.

Of the increase, $205.7 million was from government customers existing as of December 31, 2024.

Revenue from U.S.

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.

government customers was $485.9 million for the three months ended September 30, 2025 compared to $319.8 million for the same period in 2024.

Revenue from commercial customers increased by $231.2 million, or 73%, for the three months ended September 30, 2025 compared to the same period in 2024.

Of the increase, $124.1 million was from commercial customers existing as of December 31, 2024, including a decrease of $6.7 million of revenue from Strategic Commercial Contracts.

Revenue from U.S.

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.

commercial customers was $396.7 million for the three months ended September 30, 2025 compared to $179.2 million for the same period in 2024, a 121% increase.

Revenue increased by $1.0 billion, or 51%, for the nine months ended September 30, 2025 compared to the same period in 2024.

Revenue from government customers increased by $558.1 million, or 50%, for the nine months ended September 30, 2025 compared to the same period in 2024.

Of the increase, $528.6 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.

government customers was $1.3 billion for the nine months ended September 30, 2025 compared to $854.5 million for the same period in 2024.

Revenue from commercial customers increased by $472.5 million, or 51%, for the nine months ended September 30, 2025 compared to the same period in 2024.

Of the increase, $283.9 million was from commercial customers existing as of December 31, 2024, including a decrease of $29.5 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.

commercial customers was $958.6 million for the nine months ended September 30, 2025 compared to $488.1 million for the same period in 2024, a 96% 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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Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount % 2025 2024 Amount %

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Gross margin 82 % 80 % 2 % 81 % 81 % — %

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%.

Cost of revenue for the three months ended September 30, 2025 increased by $60.7 million compared to the same period in 2024.

The increase was primarily due to increases of $29.5 million in third-party cloud hosting services, $8.3 million in subcontractor expenses, $7.3 million in field service representatives and $6.5 million in payroll and other payroll-related costs.

Our gross margin for the three months ended September 30, 2025 and 2024 was 82% and 80%, respectively.

Cost of revenue for the nine months ended September 30, 2025 increased by $181.8 million, or 46%, compared to the same period in 2024.

The increase was primarily due to increases of $58.4 million in third-party cloud hosting services, $35.0 million in subcontractor expenses, $24.1 million in field-service representatives, $22.4 million in stock-based compensation expense and related expenses, and $21.8 million in payroll and other payroll-related costs.

Our gross margin for each of the nine months ended September 30, 2025 and 2024 was 81%.

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

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Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount % 2025 2024 Amount %

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Sales and Marketing

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.

Sales and marketing costs increased by $65.2 million, or 31%, for the three months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $24.6 million in payroll and other payroll-related costs, $16.6 million in stock-based compensation expense and related expenses, and $5.6 million in marketing expenses.

Sales and marketing costs increased by $155.3 million, or 26%, for the nine months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $57.8 million in stock-based compensation expense and related expenses, $48.4 million in payroll and other payroll-related costs, and $12.0 million in travel costs.

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

Research and Development

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.

Research and development costs increased by $26.6 million, or 23%, for the three months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $12.3 million in third-party cloud hosting services and $8.4 million in stock-based compensation expense and related expenses.

Research and development costs increased by $77.7 million, or 23%, for the nine months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $32.2 million in stock-based compensation expense and related expenses, $22.2 million in third-party cloud hosting services, and $13.1 million in payroll and other payroll-related costs.

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General and Administrative

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.

General and administrative costs increased by $23.0 million, or 17%, for the three months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $15.6 million in stock-based compensation expense and related expenses and $4.8 million in payroll and other payroll-related costs.

General and administrative costs increased by $76.6 million, or 19%, for the nine months ended September 30, 2025 compared to the same period in 2024.

The increase was primarily due to increases of $48.5 million in stock-based compensation expense and related expenses and $12.5 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.

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Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount % 2025 2024 Amount %

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Total stock-based compensation expense $ 172,318 $ 142,425 $ 29,893 21 % $ 487,628 $ 409,840 $ 77,788 19 %

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.

Stock-based compensation expenses increased by $29.9 million and $77.8 million, or 21% and 19%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.

The increase was driven by expense from new grants awarded since September 30, 2024 or during the three and nine months ended September 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

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount 2025 2024 Amount

Interest income $ 59,762 $ 52,120 $ 7,642 $ 166,458 $ 142,065 $ 24,393

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.

Interest income increased by $7.6 million and $24.4 million for the three and nine months ended September 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.

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Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount 2025 2024 Amount

Other income (expense), net $ 27,483 $ (8,110) $ 35,593 $ 30,906 $ (32,790) $ 63,696

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.

Other income (expense), net changed by $35.6 million and $63.7 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to unrealized gains and lower realized losses from marketable securities, including upward adjustments in privately-held securities.

Provision for Income Taxes

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

September 30, Change Nine Months Ended

September 30, Change

2025 2024 Amount 2025 2024 Amount

Provision for income taxes $ 3,753 $ 7,809 $ (4,056) $ 12,948 $ 17,653 $ (4,705)

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.

Provision for income taxes decreased by $4.1 million and $4.7 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.

The decreases were primarily related to non-recurring foreign tax expense in the prior year related to foreign tax audits, as well as decreased foreign withholding taxes.

For additional information see Note 10.

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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.

The provisions have multiple effective dates, with certain provisions effective in the current fiscal year and others in subsequent years.

We are evaluating the full effects of the legislation and, based on preliminary analysis, do not expect that the legislation will have a material impact on our estimated annual effective tax rate or consolidated financial statements in the current fiscal year.

Liquidity and Capital Resources

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 generated positive cash flow from operations for the nine months ended September 30, 2025.

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

Treasury securities totaling $6.4 billion available as of September 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 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.

As of September 30, 2025, our accumulated deficit balance was $4.2 billion, and our principal sources of liquidity were cash, cash equivalents, and short-term U.S.

Treasury securities totaling $6.4 billion.

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.

As of September 30, 2025, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500.0 million under our credit facility.

For more information, see Note 6.

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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 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.

During the nine months ended September 30, 2025, the Company repurchased and subsequently retired 0.5 million shares of its Class A common stock for an aggregate amount, including commissions, of $55.8 million under the Share Repurchase Program.

As of September 30, 2025, approximately $880.0 million of the originally authorized amount under the 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.

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

Six Months Ended June 30,

Nine Months Ended

September 30,

Net cash provided by (used in):

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Operating Activities

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.

Net cash provided by operating activities was $1.4 billion and $0.7 billion for the nine months ended September 30, 2025 and 2024, respectively.

The increase was primarily driven by revenue growth.

Investing Activities

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 prior year.

Net cash used in investing activities was $1.8 billion and $1.0 billion for the nine months ended September 30, 2025 and 2024, respectively.

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

Treasury securities compared to prior year, partially offset by sales and redemptions of marketable securities.

Financing Activities

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.

Net cash used in financing activities was $16.0 million for the nine months ended September 30, 2025, and net cash provided by financing activities was $224.7 million for the nine months ended September 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.

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Commitments and Contingencies in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there has been no material change in our contractual obligations and commitments other than in the ordinary course of business since our fiscal year ended December 31, 2024.

See our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission (“SEC”) on February 18, 2025, for additional information regarding the Company’s contractual obligations.

See our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and

Exchange Commission (“SEC”) on February 18, 2025, for additional information regarding the Company’s contractual obligations.

Critical Accounting Policies and Estimates

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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