What changed in this filing

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Item 1. Financial Statements

2026-06-30 compared with 2026-03-31 · 118 added, 76 removed, 380 unchanged (34% of the section changed)

1 unchanged sentence

Condensed Consolidated Balance Sheets

(in thousands, except share data) February 28, 2026 November 30, 2025

(in thousands, except share data) May 31, 2026 November 30, 2025

Current assets:

41 unchanged sentences

Condensed Consolidated Statements of Operations

Three Months Ended

(in thousands, except per share data) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands, except per share data) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

Software licenses $ 68,979 $ 50,795 $ 136,560 $ 109,240

33 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

Net income $ 21,073 $ 17,029 $ 43,886 $ 27,975

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation adjustments ( 1,707 ) 4,546 ( 1,231 ) 3,134

2 unchanged sentences

Condensed Consolidated Statements of Stockholders' Equity

Three Months Ended February 28, 2026

Three Months Ended May 31, 2026

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

(in thousands) Number of Shares Amount

Balance, December 1, 2025 42,336 $ 423 $ 383,696 $ 127,373 $ ( 33,143 ) $ 478,349

Balance, March 1, 2026 42,075 $ 421 $ 398,033 $ 133,008 $ ( 32,667 ) $ 498,795

Issuance of stock under employee stock purchase plan 223 2 4,870 — — 4,872

5 unchanged sentences

Net income — — — 21,073 — 21,073

Other comprehensive income — — — — 476 476

Balance, February 28, 2026 42,075 $ 421 $ 398,033 $ 133,008 $ ( 32,667 ) $ 498,795

Three Months Ended February 28, 2025

Other comprehensive loss — — — — ( 1,707 ) ( 1,707 )

Balance, May 31, 2026 41,312 $ 413 $ 415,630 $ 124,414 $ ( 34,374 ) $ 506,083

Six Months Ended May 31, 2026

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

9 unchanged sentences

Other comprehensive loss — — — — ( 1,231 ) ( 1,231 )

Balance, February 28, 2025 43,022 $ 430 $ 353,039 $ 115,999 $ ( 37,621 ) $ 431,847

Balance, May 31, 2026 41,312 $ 413 $ 415,630 $ 124,414 $ ( 34,374 ) $ 506,083

Three Months Ended May 31, 2025

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

(in thousands) Number of Shares Amount

Balance, March 1, 2025 43,022 $ 430 $ 353,039 $ 115,999 $ ( 37,621 ) $ 431,847

Issuance of stock under employee stock purchase plan 119 1 5,206 — — 5,207

Exercise of stock options 118 2 2,780 — — 2,782

Vesting of RSUs 290 3 ( 3 ) — — —

Withholding tax payments related to net issuance of RSUs ( 97 ) ( 1 ) ( 5,459 ) — — ( 5,460 )

Stock-based compensation — — 16,741 — — 16,741

Common stock repurchases and retirements ( 351 ) ( 4 ) ( 10,213 ) ( 9,774 ) — ( 19,991 )

Net income — — — 17,029 — 17,029

Other comprehensive income — — — — 4,546 4,546

Balance, May 31, 2025 43,101 $ 431 $ 362,091 $ 123,254 $ ( 33,075 ) $ 452,701

Six Months Ended May 31, 2025

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders' Equity

(in thousands) Number of Shares Amount

Balance, December 1, 2024 43,361 $ 434 $ 354,158 $ 120,405 $ ( 36,209 ) $ 438,788

Issuance of stock under employee stock purchase plan 176 1 7,402 — — 7,403

Exercise of stock options 155 2 4,250 — — 4,252

Vesting of RSUs 477 5 ( 5 ) — — —

Withholding tax payments related to net issuance of RSUs ( 178 ) ( 2 ) ( 10,099 ) — — ( 10,101 )

Stock-based compensation — — 31,424 — — 31,424

Common stock repurchases and retirements ( 890 ) ( 9 ) ( 25,039 ) ( 25,126 ) — ( 50,174 )

Net income — — — 27,975 — 27,975

Other comprehensive income — — — — 3,134 3,134

Balance, May 31, 2025 43,101 $ 431 $ 362,091 $ 123,254 $ ( 33,075 ) $ 452,701

See notes to unaudited condensed consolidated financial statements.

Condensed Consolidated Statements of Cash Flows

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Six Months Ended

(in thousands) May 31, 2026 May 31, 2025

Operating activities:

25 unchanged sentences

Dividend equivalent payments to stockholders ( 363 ) ( 654 )

Repurchases of convertible senior notes ( 360,000 ) —

Proceeds from revolving line of credit 360,000 —

Repayment of revolving line of credit ( 110,000 ) ( 70,000 )

1 unchanged sentence

Effect of exchange rate changes on cash and cash equivalents ( 705 ) 6,069

Net increase in cash and cash equivalents 18,364 6,084

Net increase (decrease) in cash and cash equivalents 8,171 ( 16,071 )

Cash and cash equivalents, beginning of period 94,807 118,077

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows, continued

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Six Months Ended

(in thousands) May 31, 2026 May 31, 2025

Supplemental disclosure:

5 unchanged sentences

Operating lease liabilities arising from obtaining right-of-use lease assets $ 9,517 $ 451

Contingent consideration payable in Nuclia acquisition $ 1,080 $ —

See notes to unaudited condensed consolidated financial statements.

36 unchanged sentences

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at February 28, 2026:

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at May 31, 2026:

Fair Value Measurements Using

2 unchanged sentences

Foreign exchange derivatives $ ( 3 ) $ — $ ( 3 ) $ —

Contingent consideration $ ( 1,080 ) $ — $ — $ ( 1,080 )

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2025:

11 unchanged sentences

We utilized the Monte Carlo simulation method to estimate the fair value of the contingent liability as of the acquisition date, and we have updated the fair value using an income approach in subsequent periods.

The fair value of the contingent consideration, which is primarily dependent on the revenue of the acquired business in fiscal 2026, is remeasured each reporting period, with adjustments to fair value recorded as acquisition-related expenses in our condensed consolidated statement of operations.

See Note 4, Business Combinations for additional details.

The following table reflects the activity for our contingent consideration obligation measured at fair value using Level 3 inputs for the three months ended February 28, 2026:

During the quarter ended May 31, 2026, we adjusted the carrying value of the contingent liability to zero .

The gain was reported in acquisition-related expenses in the condensed consolidated statements of operations.

The following table reflects the activity for our contingent consideration obligation measured at fair value using Level 3 inputs for the six months ended May 31, 2026:

(in thousands)

1 unchanged sentence

Changes in fair value of contingent consideration 1,080

Balance, February 28, 2026 $ ( 1,080 )

There were no transfers between levels of the fair value measurement hierarchy during the three months ended February 28, 2026 and 2025.

Balance, May 31, 2026

There were no transfers between levels of the fair value measurement hierarchy during the six months ended May 31, 2026 and 2025.

Assets and Liabilities Not Carried at Fair Value

Fair Value of the Convertible Senior Notes

The following table details the fair value and carrying value of our Convertible Senior Notes due 2026 and 2030 (together referred to as "the Notes"):

February 28, 2026 November 30, 2025

The following table details the fair value and carrying value of our Convertible Senior Notes that were due and paid in April 2026 and our Convertible Senior Notes due 2030 (together referred to as "the Notes"):

May 31, 2026 November 30, 2025

(in thousands) Carrying Value Fair Value Carrying Value Fair Value

4 unchanged sentences

Total $ 442,147 $ 428,099 $ 800,349 $ 809,595

(1) The carrying value of the convertible senior notes due 2026 (the "2026 Notes"), is reflected net of $ 0.3 million and $ 0.8 million of unamortized debt issuance costs as of February 28, 2026 and November 30, 2025, respectively.

(2) The carrying value of the convertible senior notes due 2030 (the "2030 Notes"), is reflected net of $ 8.3 million and $ 8.8 million of unamortized debt issuance costs as of February 28, 2026 and November 30, 2025, respectively.

(1) The carrying value of the convertible senior notes due 2026 (the "2026 Notes"), is reflected net of $ 0.8 million of unamortized debt issuance costs as of November 30, 2025.

(2) The carrying value of the convertible senior notes due 2030 (the "2030 Notes"), is reflected net of $ 7.9 million and $ 8.8 million of unamortized debt issuance costs as of May 31, 2026 and November 30, 2025, respectively.

The fair value of the Notes is based on quoted prices in an over-the-counter market on the last trading day of the reporting period and classified within Level 2 in the fair value hierarchy.

6 unchanged sentences

Intangible assets are comprised of the following significant classes:

February 28, 2026 November 30, 2025

May 31, 2026 November 30, 2025

(in thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value

3 unchanged sentences

Total $ 1,258,416 $ ( 743,837 ) $ 514,579 $ 1,258,416 $ ( 674,388 ) $ 584,028

In the three months ended February 28, 2026 and 2025, amortization expense related to intangible assets was $ 34.4 million and $ 36.2 million, respectively.

Future amortization expense for intangible assets as of February 28, 2026, is as follows:

In the three and six months ended May 31, 2026, amortization expense related to intangible assets was $ 35.1 million and $ 69.5 million, respectively.

In the three and six months ended May 31, 2025, amortization expense related to intangible assets was $ 36.6 million and $ 72.8 million, respectively.

Future amortization expense for intangible assets as of May 31, 2026, is as follows:

(in thousands)

2 unchanged sentences

Total $ 514,579

Changes in the carrying amount of goodwill in the three months ended February 28, 2026 are as follows:

Changes in the carrying amount of goodwill in the six months ended May 31, 2026 are as follows:

(in thousands)

Balance, December 1, 2025 $ 1,309,054

Translation adjustments 16

Balance, February 28, 2026

Measurement period adjustments (1) and other

Balance, May 31, 2026

(1) Represents measurement period adjustments related to Nuclia during fiscal year 2026.

Refer to Note 4, Business Combinations for further information.

Business Combinations

4 unchanged sentences

The fair value of the earn-out liability was determined to be $ 1.1 million as of the acquisition date.

Refer to Note 2, Fair Value Measurements for information regarding changes in the fair value of the earn-out liability, which are recorded as acquisition-related expenses in our condensed consolidated statements of operations.

We have not disclosed the amount of revenues and earnings of Nuclia since acquisition, nor pro forma financial information, as those amounts are not significant to our condensed consolidated financial statements.

As of February 28, 2026 and November 30, 2025, we had the following debt obligations:

(in thousands) February 28, 2026 November 30, 2025

As of May 31, 2026 and November 30, 2025, we had the following debt obligations:

(in thousands) May 31, 2026 November 30, 2025

Current portion of long-term debt:

10 unchanged sentences

Unamortized discount and issuance costs for the 2030 Notes

( 7,853 ) ( 8,814 )

Total long-term debt 1,292,147 1,041,186

Total debt $ 1,292,147 $ 1,400,349

(1) Unamortized debt issuance costs related to the revolving credit facility of $ 9.9 million and $ 10.4 million are included in other assets on the condensed consolidated balance sheets as of February 28, 2026 and November 30, 2025, respectively.

During the first fiscal quarter of 2026, we repaid $ 60.0 million on the revolving credit facility.

The interest rate as of February 28, 2026 was 5.42 %.

(1) Unamortized debt issuance costs related to the revolving credit facility of $ 9.3 million and $ 10.4 million are included in other assets on the condensed consolidated balance sheets as of May 31, 2026 and November 30, 2025, respectively.

In April 2026, the Company paid $ 361.8 million to redeem the outstanding portion of the 2026 Notes, including the outstanding principal amount and accrued interest through the April 2026 maturity date.

We funded the redemption through borrowings under our existing revolving credit facility and cash on hand.

In April 2021, in connection with the pricing of the 2026 Notes, the Company entered into privately negotiated capped call transactions (the "2021 Capped Call Transactions") to reduce potential dilution to our common stock upon any conversion of the 2026 Notes and/or offset any potential cash payments the Company was required to make in excess of the principal amount of converted 2026 Notes.

The 2021 Capped Call Transactions expired unexercised in April 2026.

During the six months ended May 31, 2026, we repaid $ 110.00 million on the revolving credit facility.

The interest rate as of May 31, 2026 was 5.37 %.

Common Stock Repurchases

On September 23, 2025, our Board of Directors increased the share repurchase authorization by $ 200.0 million to an aggregate authorization of $ 242.2 million.

During the three months ended February 28, 2026 and 2025, we repurchased and retired 0.5 million shares for $ 20.0 million and 0.5 million shares for $ 30.0 million, respectively.

As of February 28, 2026, there was $ 182.2 million remaining under the current authorization.

During the three and six months ended May 31, 2026, we repurchased and retired 1.2 million shares for $ 34.7 million and 1.7 million shares for $ 54.7 million, respectively.

During the three and six months ended May 31, 2025, we repurchased and retired 0.4 million shares for $ 20.0 million and 0.9 million shares for $ 50.0 million, respectively.

As of May 31, 2026, there was $ 147.5 million remaining under the current authorization.

Stock-Based Compensation

10 unchanged sentences

The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of operations:

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

Cost of maintenance, SaaS, and professional services $ 1,508 $ 1,560 $ 3,126 $ 2,755

7 unchanged sentences

Information relating to revenue from external customers by revenue type is as follows:

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

Performance obligations transferred at a point in time:

11 unchanged sentences

Information relating to revenue from external customers from different geographical areas is as follows:

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

North America $ 162,529 $ 147,326 $ 315,218 $ 301,972

4 unchanged sentences

No single customer, partner, or country outside the U.S.

accounted for more than 10% of our total revenue for the three months ended February 28, 2026 or 2025.

accounted for more than 10% of our total revenue for the three and six months ended May 31, 2026 or 2025.

Contract Balances

Unbilled Receivables and Contract Assets

As of February 28, 2026, billing of our non-current unbilled receivables is expected to occur as follows:

As of May 31, 2026, billing of our non-current unbilled receivables is expected to occur as follows:

(in thousands)

2 unchanged sentences

Contract assets arise when revenue is recognized in excess of billings and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation.

We did not have any net contract assets as of February 28, 2026 or November 30, 2025.

We did not have any net contract assets as of May 31, 2026 or November 30, 2025.

Deferred Revenue

2 unchanged sentences

Our deferred revenue balance is primarily made up of deferred maintenance and deferred revenue related to our SaaS offerings.

As of February 28, 2026, the changes in deferred revenue were as follows:

As of May 31, 2026, the changes in deferred revenue were as follows:

(in thousands)

3 unchanged sentences

Revenue recognized from current period arrangements ( 235,982 )

Balance, February 28, 2026 $ 424,611

Balance, May 31, 2026 $ 423,225

Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods.

As of February 28, 2026, transaction price allocated to remaining performance obligations was $ 527.5 million.

As of May 31, 2026, transaction price allocated to remaining performance obligations was $ 518.9 million.

We expect to recognize approximately 74 % of the revenue within the next year and the remainder thereafter.

4 unchanged sentences

We determined that a three to five year product life represents the period of benefit that we receive from these incremental costs based on both qualitative and quantitative factors, which include customer contracts, industry norms, and product upgrades.

Total deferred contract costs were $ 6.2 million and $ 6.5 million as of February 28, 2026 and November 30, 2025, respectively, and are included in other current assets and other assets on our condensed consolidated balance sheets.

Total deferred contract costs were $ 5.3 million and $ 6.5 million as of May 31, 2026 and November 30, 2025, respectively, and are included in other current assets and other assets on our condensed consolidated balance sheets.

Amortization of deferred contract costs is included in sales and marketing expense on our condensed consolidated statements of operations and was insignificant in all periods presented.

5 unchanged sentences

Cash disbursements ( 1,653 ) ( 3,504 ) ( 5,157 )

Asset impairment ( 447 ) — ( 447 )

Translation and other adjustments ( 2 ) ( 4 ) ( 6 )

Balance, February 28, 2026 $ 2,178 $ 1,445 $ 3,623

Costs incurred during the three months ended February 28, 2026 are primarily related to our restructuring action that commenced in fiscal year 2025 to optimize efficiency and sustainability, while ensuring alignment with the company’s long-term financial objectives.

Balance, May 31, 2026 $ 1,836 $ 579 $ 2,415

Costs incurred during the three and six months ended May 31, 2026 are primarily related to our restructuring action that commenced in fiscal year 2025 to optimize efficiency, while ensuring alignment with the Company's long-term financial objectives.

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the fourth quarter of fiscal year 2026.

The restructuring reserve is included in other accrued liabilities on the condensed consolidated balance sheet as of February 28, 2026.

The restructuring reserve is included in other accrued liabilities on the condensed consolidated balance sheet as of May 31, 2026.

We do not expect to incur additional material expenses in connection with this restructuring.

3 unchanged sentences

The following table sets forth the calculation of basic and diluted earnings per share on an interim basis:

Three Months Ended

(in thousands, except per share data) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands, except per share data) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

Net income $ 21,073 $ 17,029 $ 43,886 $ 27,975

6 unchanged sentences

Diluted $ 0.50 $ 0.39 $ 1.03 $ 0.63

We excluded stock awards representing approximately 3,486,000 and 397,000 shares of common stock, respectively, from the calculation of diluted earnings per share in the three months ended February 28, 2026 and 2025, respectively, as these awards were anti-dilutive.

We excluded stock awards representing approximately 4,289,000 and 3,888,000 shares of common stock from the calculation of diluted earnings per share in the three and six months ended May 31, 2026, respectively, as these awards were anti-dilutive.

We excluded stock awards representing approximately 776,000 and 586,000 shares of common stock, from the calculation of diluted earnings per share in the three and six months ended May 31, 2025, respectively, as these awards were anti-dilutive.

The dilutive impact of the Notes on our calculation of diluted earnings per share is measured using the if-converted method.

However, because the principal amount of the Notes will be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any.

During the three months ended February 28, 2026, we excluded the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money.

During the three months ended February 28, 2025, we included the 2026 Notes in our diluted earnings per share calculation and we excluded the 2030 Notes in our diluted earnings per share calculation because the conversion feature in the 2030 Notes was out of the money.

However, because the principal amount of the 2026 Notes was settled in cash and the principal amount of the 2030 Notes will be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any.

During the three and six months ended May 31, 2026, we excluded the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money.

During the three and six months ended May 31, 2025, we included the 2026 Notes in our diluted earnings per share calculation and we excluded the 2030 Notes in our diluted earnings per share calculation because the conversion feature in the 2030 Notes was out of the money.

Segment Information

6 unchanged sentences

The Company's significant expenses and other segment items are provided in the table below:

Three Months Ended

(in thousands) February 28, 2026 February 28, 2025

Three Months Ended Six Months Ended

(in thousands) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025

$ 253,465 $ 237,355 $ 501,264 $ 475,370

Cost of revenue (1)

Costs of revenue (1)

34,426 35,191 67,921 69,805

20 unchanged sentences

The MDL has also consolidated an insurance subrogation complaint (where an insurer is seeking recovery for expenses incurred on behalf of its insured in connection with the MOVEit Vulnerability) and, as of the date of this filing, one customer cross-claim.

The MDL remains in a relatively early stage and is not expected to conclude within the next twelve months.

Motions to dismiss were filed and partially granted in July 2025, then further partially granted in January 2026 in response to our motions for reconsideration.

In all, the court has dismissed, in whole or in part, 23 of the 33 claims asserted by the plaintiffs in the MDL.

In all, the court has dismissed, in whole or in part, 23 of the 33 claims asserted by the bellwether plaintiffs in the MDL.

The court has ordered the conclusion of fact discovery by September 29, 2026, and that the filing of class certification briefing will begin on August 28, 2026, and continue into the fourth quarter of 2026.

The MDL is not expected to conclude within the next twelve months.

As previously disclosed, we have also cooperated with inquiries and investigations from various governmental authorities, a number of which have been formally closed and, as of the date of this filing, have not resulted in any prosecution or enforcement actions.

Expenses Incurred and Future Costs

During the three months ended February 28, 2026 and 2025, we incurred net costs of approximately $ 1.4 million and $ 0.7 million, respectively, related to the MOVEit Vulnerability.

The costs recognized are net of insurance recoveries of $ 0.9 million and $ 0.7 million for the three months ended February 28, 2026 and 2025, respectively.

During the three and six months ended May 31, 2026, we incurred net costs of approximately $ 1.3 million and $ 2.6 million, respectively, related to the MOVEit Vulnerability.

The costs recognized are net of insurance recoveries of $ 2.4 million and $ 3.4 million for the three and six months ended May 31, 2026, respectively.

During the three and six months ended May 31, 2025, we incurred net costs of approximately $ 0.7 million and $ 1.5 million, respectively, related to the MOVEit Vulnerability.

The costs recognized are net of insurance recoveries of $ 0.6 million and $ 1.3 million for the three and six months ended May 31, 2025, respectively.

The timing of recognizing insurance recoveries may differ from the timing of recognizing the associated expenses.

We expect to continue to incur investigation, legal, and professional services expenses associated with the MOVEit Vulnerability in future periods.

We expect to continue to incur legal and professional services expenses associated with the MOVEit Vulnerability in future periods.

We will recognize these expenses as services are received, net of insurance recoveries.

While a loss from these matters is reasonably possible, we cannot reasonably estimate a range of possible losses at this time, particularly while the foregoing matters remain ongoing.

Furthermore, with respect to the MDL, the proceedings remain in the early stages, alleged damages have not been specified, there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified, and there are significant factual and legal issues to be resolved.

Furthermore, with respect to the MDL, alleged damages have not been specified, there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified, and there are significant factual and legal issues to be resolved.

With respect to the governmental inquiries and investigations, we are currently unable to reasonably estimate any possible adverse judgments, settlements, fines, or penalties.

Therefore, we have not recorded a loss contingency liability for the MOVEit Vulnerability as of February 28, 2026.

Therefore, we have not recorded a loss contingency liability for the MOVEit Vulnerability as of May 31, 2026.

Insurance Coverage

During the period when the MOVEit Vulnerability occurred, we maintained $ 15.0 million of cybersecurity insurance coverage, which is expected to reduce our exposure to expenses and liabilities arising from these events.

As of February 28, 2026, we have approximately $ 3.5 million of remaining cybersecurity insurance coverage under the applicable policy.

During the period when the MOVEit Vulnerability occurred, we maintained $ 15.0 million of cybersecurity insurance coverage, which has reduced our exposure to expenses and liabilities arising from these events.

As of May 31, 2026, we have approximately $ 1.1 million of remaining cybersecurity insurance coverage under the applicable policy.

We will pursue recoveries to the maximum extent available under our insurance policies.

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 1. Financial Statements