What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-05 · 76 added, 136 removed, 183 unchanged (54% of the section changed)

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Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.

These factors include those contained in this Form 10-Q, as well as the disclosures made in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 27, 2025 (“Form 10-K”), and other filings we make with the Securities and Exchange Commission (the "SEC").

These factors include those contained in this Form 10-Q, as well as the disclosures made in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed on March 4, 2026 (“Form 10-K”), and other filings we make with the Securities and Exchange Commission (the "SEC").

We do not undertake any obligation to update forward-looking statements, except as required by law.

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These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition.

Our AI/ML-driven identity intelligence platform, CORE TM , is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence.

Our cloud-native, AI-embedded identity intelligence platform, CORE TM , is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence.

We drive workflow efficiency and enable organizations to make better data-driven decisions.

Organizations are challenged by the structure, volume, and disparity of data.

With artificial intelligence and machine learning embedded directly into CORE’s architecture from inception, and integrated with extensive proprietary data assets and regulated workflows, the platform enables customers to uncover actionable insights, accelerate decision-making, and operate at enterprise scale with materially reduced manual effort and operating costs.

These AI-driven capabilities support the streamlining of labor-intensive workflows through automated, intelligence-driven processes that materially enhance efficiency and outcomes across risk management, compliance, and investigative functions.

Organizations are challenged by the structure, volume, velocity, and disparity of data.

Our platform and applications provide real-time analytics, transforming the way our customers interact with information by presenting connections and relevance of information otherwise unattainable, which drives actionable insights and better outcomes.

Leveraging cloud-native proprietary technology and applying machine learning and advanced analytical capabilities, CORE provides essential solutions to public and private sector organizations through intuitive, easy-to-use analytical interfaces.

With massive data assets consisting of public record, proprietary, and publicly-available data, our differentiated information and innovative platform and solutions deliver identity intelligence – entities, relationships, affiliations, interactions, and events.

Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society.

With extensive data assets consisting of public record, proprietary, and publicly-available data, our differentiated information and innovative platform and solutions deliver identity intelligence – entities, relationships, affiliations, interactions, and events.

Our solutions are used today to enable frictionless commerce, enhance safety, and mitigate fraud and the related financial losses across the markets we serve.

While our platform powers a vast array of solutions for our customers, we presently market our solutions primarily through two brands, IDI and FOREWARN ® .

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FOREWARN is an app-based solution currently tailored for the real estate industry, providing instant knowledge prior to face-to-face engagement with a consumer, helping professionals identify and mitigate risk.

As of September 30, 2025 and 2024, IDI had 9,853 and 8,743 billable customers, respectively, and FOREWARN had 372,209 and 284,967 users, respectively.

As of March 31, 2026 and 2025, IDI had 10,422 and 9,241 billable customers, respectively, and FOREWARN had 417,680 and 325,336 users, respectively.

We define a billable customer of IDI as a single entity that generated revenue during the last three months of the period.

Billable customers are typically corporate organizations.

In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.

In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions;

however, we count the entire organization as a discrete customer.

We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period.

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Pricing contracts are generally annual contracts or longer, with auto renewal.

For the three months ended September 30, 2025 and 2024, 75% and 77% of total revenue was attributable to customers with pricing contracts, respectively, versus 25% and 23% attributable to transactional customers, respectively.

For the nine months ended September 30, 2025 and 2024, 75% and 76% of total revenue was attributable to customers with pricing contracts, respectively, versus 25% and 24% attributable to transactional customers, respectively.

For the three months ended March 31, 2026 and 2025, 75% and 74% of total revenue was attributable to customers with pricing contracts, respectively, versus 25% and 26% attributable to transactional customers, respectively.

We endeavor to understand our customers’ needs at the moment of first engagement.

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We employ a “land and expand” approach.

Our sales model generally begins with a free trial followed by an initial purchase on a transactional basis or minimum-committed monthly spend.

Our sales model generally begins with a trial followed by an initial purchase on a transactional basis or minimum-committed monthly spend.

As organizations derive benefits from our solutions, we are able to expand within organizations as additional use cases are presented across departments, divisions, and geographic locations, and customers become increasingly reliant on our solutions in their daily workflow.

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Management’s discussion and analysis of financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”).

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an ongoing basis, we evaluate our estimates, including those related to the revenue recognition, allowance for doubtful accounts, useful lives of intangible assets, recoverability of the carrying amounts of goodwill and intangible assets, share-based compensation, and income tax provision.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, useful lives of intangible assets, recoverability of the carrying amounts of goodwill and intangible assets, share-based compensation, and income tax provision.

We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

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See Note 1(b), “ Recently issued accounting standards,” in “Notes to Condensed Consolidated Financial Statements.”

Third Quarter Financial Results

For the three months ended September 30, 2025 as compared to the three months ended September 30, 2024:

First Quarter Financial Results

For the three months ended March 31, 2026 as compared to the three months ended March 31, 2025:

• Total revenue increased 17% to $25.8 million.

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Adjusted EBITDA margin increased to 41% from 38%.

• Adjusted net income increased 75% to $5.8 million, which resulted in adjusted earnings of $0.41 and $0.39 per basic and diluted share, respectively.

• Adjusted net income increased 29% to $6.6 million, which resulted in adjusted earnings of $0.46 per basic and diluted share.

• Net cash provided by operating activities increased 32% to $6.6 million.

• Cash and cash equivalents were $45.4 million as of September 30, 2025.

Third Quarter and Recent Business Highlights

• Added 304 customers to IDI during the third quarter, ending the quarter with 9,853 customers.

• Added 25,538 users to FOREWARN during the third quarter, ending the quarter with 372,209 users.

• Cash and cash equivalents were $43.5 million as of March 31, 2026.

First Quarter and Recent Business Highlights

• Added 400 customers to IDI during the first quarter, ending the quarter with 10,422 customers.

• Added 27,662 users to FOREWARN during the first quarter, ending the quarter with 417,680 users.

Over 640 REALTOR ® Associations throughout the U.S.

are now contracted to use FOREWARN.

• Increased the Stock Repurchase Program authorization by $15.0 million, bringing the total authorized to $30.0 million.

• Purchased 15,437 shares of the Company’s common stock during the third quarter at an average price of $42.26 per share pursuant to the Company’s Stock Repurchase Program.

The Company has $18.9 million remaining under the Stock Repurchase Program.

• Purchased 73,250 shares of the Company’s common stock year to date through April 30, 2026, at an average price of $41.90 per share pursuant to the Company’s Stock Repurchase Program.

As of April 30, 2026, the Company had $15.6 million remaining under the Stock Repurchase Program.

Use and Reconciliation of Non-GAAP Financial Measures

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The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in thousands)

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The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in thousands, except share data)

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Weighted average shares outstanding:

(1) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate.

The expected federal and state income tax rate was approximately 26.00% for the three and nine months ended September 30, 2025 and 2024.

(1) The tax effect of adjustments is calculated using the expected combined federal and state statutory tax rate, which was approximately 26.00% for the three months ended March 31, 2026 and 2025.

The resulting tax effect may differ from applying such rate to total adjustments due to the tax treatment of certain items.

Beginning with the Form 10-K, we updated the methodology for determining the income tax effects of adjustments in calculating non-GAAP adjusted net income.

Prior-period amounts have been revised to conform to the current methodology and presentation.

These revisions did not affect our previously reported GAAP financial statements.

The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in thousands)

Cost of revenue (exclusive of depreciation and

amortization)

Cost of revenue (exclusive of depreciation and amortization)

Depreciation and amortization related to cost of revenue

Depreciation and amortization of certain intangible

Depreciation and amortization of certain intangible assets (1)

Adjusted gross profit

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The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in thousands)

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Free cash flow

In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance.

In order to assist readers of our condensed consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance.

We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance.

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Results of Operations

Three months ended September 30, 2025 compared to three months ended September 30, 2024

Revenue increased $4.0 million, or 21%, to $23.1 million for the three months ended September 30, 2025, compared to $19.1 million for the same period in 2024.

Three months ended March 31, 2026 compared to three months ended March 31, 2025

Revenue increased $3.8 million, or 17%, to $25.8 million for the three months ended March 31, 2026, compared to $22.0 million for the same period in 2025.

The increase was driven by volume expansion across the existing customer base, partially offset by the decrease in revenue from new customers.

• Revenue from existing customers increased $4.1 million, or 24%.

• Revenue from new customers decreased $0.1 million, or 6%.

• Revenue from existing customers increased $4.6 million, or 24%, to $23.7 million;

• Revenue from new customers decreased $0.8 million, or 28%, to $2.1 million.

Revenue from new customers represents total monthly revenue generated from customers during their first six full calendar months of revenue contribution.

Revenue from existing customers represents total monthly revenue generated from customers beginning in their seventh full calendar month of revenue contribution.

Beginning in the first quarter of 2025, we consolidated our prior base revenue and growth revenue categories into a single revenue from existing customers metric to provide a more streamlined and meaningful view of ongoing customer contribution.

As of September 30, 2025, our IDI billable customer base increased to 9,853 customers, up from 8,743 customers a year earlier.

As of March 31, 2026, our IDI billable customer base increased to 10,422 customers, up from 9,241 customers a year earlier.

Our FOREWARN user base increased to 417,680 users, up from 325,336 users a year earlier.

Cost of revenue (exclusive of depreciation and amortization)

Cost of revenue (exclusive of depreciation and amortization) increased $0.3 million, or 9%, to $3.6 million for the three months ended September 30, 2025, compared to $3.3 million for the same period in 2024.

Our cost of revenue primarily consists of data acquisition costs, which includes the cost to acquire data under flat-fee licensing agreements, including unlimited usage arrangements, as well as purchases on a transactional basis.

We continue to enhance the breadth and depth of our data by the addition and expansion of relationships with key data suppliers, including our largest data supplier, which accounted for 46% and 48% of our total data acquisition costs for the three months ended September 30, 2025 and 2024, respectively.

Cost of revenue (exclusive of depreciation and amortization) increased $0.1 million, or 4%, to $3.8 million for the three months ended March 31, 2026, compared to $3.7 million for the same period in 2025.

Our cost of revenue primarily consists of data acquisition costs, which include the cost to acquire data under flat-fee licensing agreements, including unlimited usage arrangements, as well as purchases on a transactional basis.

We continue to enhance the breadth and depth of our data by the addition and expansion of relationships with key data suppliers, including our largest data supplier, which accounted for 46% and 43% of our total data acquisition costs for the three months ended March 31, 2026 and 2025, respectively.

Effective on May 1, 2025, we entered into an amendment with our largest data supplier, extending the term of the agreement through April 30, 2031.

Additional components of our cost of revenue include cloud infrastructure fees and pertinent personnel-related costs.

Due to the fixed-cost nature of our primary data licensing structure, cost of revenue as a percentage of revenue decreased to 16% for the three months ended September 30, 2025, compared to 17% for the same period in 2024.

Additional components of our cost of revenue include cloud infrastructure fees, and pertinent personnel-related costs and share-based compensation expense.

Due to the fixed-cost nature of our primary data licensing structure, cost of revenue as a percentage of revenue decreased to 15% for the three months ended March 31, 2026, compared to 17% for the same period in 2025.

We expect this percentage to continue to decline over time as our revenue increases.

Sales and marketing expenses

Sales and marketing expenses increased $0.6 million, or 12%, to $5.4 million for the three months ended September 30, 2025, compared to $4.8 million for the same period in 2024.

The increase reflects our continued investment in expanding our go-to-market capabilities to support long-term revenue growth.

Sales and marketing expenses increased $0.5 million, or 8%, to $5.9 million for the three months ended March 31, 2026, compared to $5.4 million for the same period in 2025.

We continued to invest in expanding our go-to-market capabilities to support long-term revenue growth.

Sales and marketing expenses include personnel-related expenses, advertising, marketing and agency expenses, travel expenses, and share-based compensation expense incurred by our sales team, and provision for bad debts.

The increase was primarily driven by:

• an increase of $0.3 million in personnel-related expenses;

• an increase of $0.1 million in advertising, marketing and agency expenses.

General and administrative expenses

General and administrative expenses increased $0.8 million, or 13%, to $6.8 million for the three months ended September 30, 2025, compared to $6.0 million for the same period in 2024.

The increase reflects higher personnel-related expenses to support the continued growth of the business.

For the three months ended September 30, 2025 and 2024, general and administrative expenses consisted primarily of:

For the three months ended March 31, 2026 and 2025, sales and marketing expenses consisted primarily of:

• personnel-related expenses of $4.7 million and $4.6 million, respectively;

• share-based compensation expense of $0.2 million and $0.2 million, respectively;

• professional fees of $1.2 million and $0.9 million, respectively.

Depreciation and amortization

Depreciation and amortization expenses increased $0.3 million, or 11%, to $2.7 million for the three months ended September 30, 2025, compared to $2.4 million for the same period in 2024.

The increase was primarily driven by the amortization of intangible assets that became ready for their intended use after September 30, 2024.

Interest income

Interest income remained consistent at $0.4 million for the three months ended September 30, 2025 and 2024.

The interest income was primarily attributable to yields on money market fund investments.

Income before income taxes

Income before income taxes increased $2.1 million, or 74%, to $5.0 million for the three months ended September 30, 2025, compared to $2.9 million for the same period in 2024.

The decrease was primarily driven by:

• an increase of $4.0 million in revenue;

partially offset by:

• an increase of $0.3 million in cost of revenue (exclusive of depreciation and amortization);

• an increase of $0.9 million in personnel-related expenses;

• an increase of $0.3 million in professional fees;

• an increase of $0.3 million in depreciation and amortization expense.

Income tax expense

Income tax expense was $0.7 million for the three months ended September 30, 2025, compared to $1.1 million for the same period in 2024.

The decrease in income tax expense was primarily attributable to a decrease in the effective tax rate to 15% for the three months ended September 30, 2025 from 40% for the same period in 2024, partially offset by higher pre-tax income.

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

The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including the full expensing of domestic research and experimentation expenditures.

For additional information, refer to Note 6, “Income taxes,” in the “Notes to Condensed Consolidated Financial Statements.”

Net income increased $2.5 million, or 145%, to $4.2 million for the three months ended September 30, 2025, compared to $1.7 million for the same period in 2024, as a result of the foregoing.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024

Revenue increased $11.3 million, or 20%, to $66.9 million for the nine months ended September 30, 2025, compared to $55.6 million for the same period in 2024.

The increase was driven by strong onboarding of new customers and volume expansion across the existing customer base.

• Revenue from new customers increased $0.9 million, or 17%.

• Revenue from existing customers increased $10.4 million, or 21%.

Revenue from new customers represents total monthly revenue generated from customers during their first six full calendar months of revenue contribution.

Revenue from existing customers represents total monthly revenue generated from customers beginning in their seventh full calendar month of revenue contribution.

As of September 30, 2025, our IDI billable customer base increased to 9,853 customers, up from 8,743 customers a year earlier.

Our FOREWARN user base increased to 372,209 users, up from 284,967 users a year earlier.

Cost of revenue (exclusive of depreciation and amortization)

Cost of revenue (exclusive of depreciation and amortization) increased $0.3 million, or 2%, to $10.8 million for the nine months ended September 30, 2025, compared to $10.5 million for the same period in 2024.

We continue to enhance the breadth and depth of our data by the addition and expansion of relationships with key data suppliers, including our largest data supplier, which accounted for 45% of our total data acquisition costs for the nine months ended September 30, 2025 and 2024.

Effective on May 1, 2025, we entered into an amendment with our largest data supplier, extending the term of the agreement through April 30, 2031.

Additional components of our cost of revenue include cloud infrastructure fees and pertinent personnel-related costs.

Due to the fixed-cost nature of our primary data licensing structure, cost of revenue as a percentage of revenue decreased to 16% for the nine months ended September 30, 2025, compared to 19% for the same period in 2024.

We expect this percentage to continue to decline over time as our revenue increases.

Sales and marketing expenses

Sales and marketing expenses increased $3.5 million, or 27%, to $16.4 million for the nine months ended September 30, 2025, compared to $12.9 million for the same period in 2024.

The increase reflects our continued investment in expanding our go-to-market capabilities to support long-term revenue growth.

The increase was primarily driven by:

• an increase of $2.9 million in personnel-related expenses;

• an increase of $0.2 million in advertising, marketing and agency expenses;

• an increase of $0.2 million in share-based compensation expense.

• advertising, marketing and agency expenses of $0.3 million and $0.2 million, respectively.

General and administrative expenses

General and administrative expenses increased $2.7 million, or 15%, to $20.2 million for the nine months ended September 30, 2025, compared to $17.5 million for the same period in 2024.

General and administrative expenses increased $1.7 million, or 28%, to $7.9 million for the three months ended March 31, 2026, compared to $6.2 million for the same period in 2025.

The increase reflects higher personnel-related expenses and share-based compensation expense to support the continued growth of the business.

For the nine months ended September 30, 2025 and 2024, general and administrative expenses consisted primarily of:

For the three months ended March 31, 2026 and 2025, general and administrative expenses consisted primarily of:

• personnel-related expenses of $4.0 million and $3.1 million, respectively;

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Depreciation and amortization

Depreciation and amortization expenses increased $0.8 million, or 12%, to $7.9 million for the nine months ended September 30, 2025, compared to $7.1 million for the same period in 2024.

The increase was primarily driven by the amortization of intangible assets that became ready for their intended use after September 30, 2024.

Depreciation and amortization expenses increased $0.2 million, or 10%, to $2.8 million for the three months ended March 31, 2026, compared to $2.6 million for the same period in 2025.

The increase was primarily driven by the amortization of intangible assets that became ready for their intended use after March 31, 2025.

Interest income

Interest income remained consistent at $1.0 million for the nine months ended September 30, 2025 and 2024.

Interest income was $0.3 million for each of the three months ended March 31, 2026 and 2025.

The interest income was primarily attributable to yields on money market fund investments.

Income before income taxes

Income before income taxes increased $4.0 million, or 46%, to $12.6 million for the nine months ended September 30, 2025, compared to $8.6 million for the same period in 2024.

Income before income taxes increased $1.3 million, or 28%, to $5.8 million for the three months ended March 31, 2026, compared to $4.5 million for the same period in 2025.

The increase was primarily driven by:

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partially offset by:

• an increase of $0.3 million in cost of revenue (exclusive of depreciation and amortization);

• an increase of $1.0 million in personnel-related expenses;

• an increase of $0.7 million in professional fees;

• an increase of $0.5 million in share-based compensation expense;

• an increase of $0.4 million in professional fees;

• an increase of $0.2 million in depreciation and amortization expense.

Income tax expense

Income tax expense was $2.2 million for the nine months ended September 30, 2025, compared to $2.4 million for the same period in 2024.

The decrease in income tax expense was primarily driven by a decrease in the effective tax rate to 18% for the nine months ended September 30, 2025 from 28% for the same period in 2024, partially offset by higher pre-tax income.

On July 4, 2025, the OBBBA was enacted into law, which makes permanent key elements of the Tax Cuts and Jobs Act, including the full expensing of domestic research and experimentation expenditures.

Income tax expense was $1.4 million for the three months ended March 31, 2026, compared to $1.1 million for the same period in 2025.

The increase in income tax expense was primarily attributable to higher pre-tax income, as the Company’s effective tax rate remained consistent at 24% in both periods.

For additional information, refer to Note 6, “Income taxes,” in the “Notes to Condensed Consolidated Financial Statements.”

Net income increased $4.2 million, or 68%, to $10.3 million for the nine months ended September 30, 2025, compared to $6.1 million for the same period in 2024, as a result of the foregoing.

Net income increased $1.0 million, or 28%, to $4.4 million for the three months ended March 31, 2026, compared to $3.4 million for the same period in 2025, as a result of the foregoing.

Effect of Inflation

We believe that persistent inflationary pressures throughout 2024 and into the nine months ended September 30, 2025 have contributed to a more challenging macroeconomic environment, increasing recessionary concerns and prompting some businesses to moderate discretionary spending.

While the pace of inflation has shown signs of moderation more recently, macroeconomic uncertainty and higher interest rates have continued to influence business sentiment and spending patterns in certain sectors.

These conditions have resulted in — and may continue to contribute to — fluctuations in transaction volumes, pricing dynamics, and operating margins across our services.

In addition, elevated interest rates implemented to curb inflation may reduce the demand for credit, which could in turn lead to lower usage of our services by customers in the banking, financial services, and adjacent industries.

In addition, elevated interest rates implemented to curb inflation may reduce demand for credit, which could in turn lead to lower usage of our services by customers in the banking, financial services, and adjacent industries.

Despite these broader market dynamics, inflation has not had a material impact on our financial results to date.

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Cash flows provided by operating activities

For the nine months ended September 30, 2025, net cash provided by operating activities was $22.7 million.

For the three months ended March 31, 2026, net cash provided by operating activities was $6.6 million.

This was primarily driven by:

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• non-cash adjustments totaling $6.1 million, including share-based compensation expense, depreciation and amortization, write-off of long-lived assets, provision for bad debts, noncash lease expenses, and deferred income tax expense;

• changes in operating assets and liabilities, which resulted in a net use of cash of $3.5 million, primarily due to an increase in accounts receivable, and prepaid expenses and other current assets, and a decrease in accrued expenses and other current liabilities and operating lease liabilities, partially offset by the increase in accounts payable.

For the nine months ended September 30, 2024, net cash provided by operating activities was $17.3 million.

• changes in operating assets and liabilities, which resulted in a net use of cash of $4.0 million, primarily due to an increase in accounts receivable, and a decrease in accrued expenses and other current liabilities, partially offset by the decrease in prepaid expenses and other current assets.

For the three months ended March 31, 2025, net cash provided by operating activities was $5.0 million.

This was primarily driven by:

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• non-cash adjustments totaling $5.3 million, including share-based compensation expense, depreciation and amortization, write-off of long-lived assets, provision for bad debts, noncash lease expenses, and deferred income tax expense;

• changes in operating assets and liabilities, which resulted in a net use of cash of $3.3 million, primarily due to an increase in accounts receivable, prepaid expenses and other current assets, and other noncurrent assets, and a decrease in accrued expenses and other current liabilities and operating lease liabilities, partially offset by the increase in accounts payable.

• changes in operating assets and liabilities, which resulted in a net use of cash of $3.7 million, primarily due to an increase in accounts receivable and other noncurrent assets, and a decrease in accrued expenses and other current liabilities.

Cash flows used in investing activities

For the nine months ended September 30, 2025 and 2024, net cash used in investing activities was $8.1 million and $7.3 million, respectively, primarily as a result of capitalized costs included in intangible assets.

For the three months ended March 31, 2026 and 2025, net cash used in investing activities was $3.5 million and $2.5 million, respectively, primarily as a result of capitalized costs included in intangible assets.

Cash flows used in financing activities

For the nine months ended September 30, 2025, net cash used in financing activities was $5.7 million.

For the three months ended March 31, 2026, net cash used in financing activities was $3.2 million.

This was primarily driven by:

• taxes paid in connection with the net share settlement of vesting RSUs totaling $0.5 million;

• common stock repurchases totaling $2.7 million, conducted pursuant to our Stock Repurchase Program (as defined below).

The Stock Repurchase Program was originally authorized by the Company's Board of Directors on May 2, 2022, permitting repurchases of our common stock from time to time, which was subsequently amended on each of December 19, 2023, March 28, 2024, and November 3, 2025, bringing the total authorization to $30.0 million.

For the three months ended March 31, 2025, net cash used in financing activities was $4.4 million.

This was primarily driven by:

• the payment of a special cash dividend totaling $4.2 million;

• taxes paid in connection with the net share settlement of vesting RSUs totaling $0.2 million.

• common stock repurchases totaling $0.7 million, conducted pursuant to our Stock Repurchase Program.

On December 3, 2024, we declared a special cash dividend of $0.30 per share on our common stock to shareholders of record as of January 31, 2025.

The dividend, totaling $4.2 million, was paid on February 14, 2025.

The Stock Repurchase Program was originally authorized by the Board of Directors on May 2, 2022, permitting repurchases of up to $5.0 million of our common stock.

On December 19, 2023, and again on March 28, 2024, the Board of Directors approved additional authorizations of $5.0 million each, expanding the total program size.

For the nine months ended September 30, 2024, net cash used in financing activities was $6.3 million.

This was primarily driven by:

• common stock repurchases totaling $5.9 million, conducted pursuant to our Stock Repurchase Program;

• taxes paid in connection with the net share settlement of vesting RSUs totaling $0.4 million.

As of September 30, 2025, we had material commitments under data licensing agreements and a cloud service agreement totaling $44.9 million.

As of March 31, 2026, we had material commitments under data licensing agreements and a cloud service agreement totaling $39.8 million.

We expect to fund these commitments, as well as our ongoing operating and capital requirements, using available cash on hand and cash flows generated from operations over the next twelve months.

Capital Resources

We reported net income of $4.2 million and $1.7 million for the three months ended September 30, 2025 and 2024, respectively, and net income of $10.3 million and $6.1 million for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, we had total shareholders’ equity of $101.7 million and cash and cash equivalents of $45.4 million.

We reported net income of $4.4 million and $3.4 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, we had total shareholders’ equity of $104.5 million and cash and cash equivalents of $43.5 million.

Based on our projected growth in revenue and operating results over the next twelve months, and the available cash on hand, we believe that our existing resources will be sufficient to fund operations and expected capital expenditures for at least the next twelve months.

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Off-Balance Sheet Arrangements

As of September 30, 2025, we did not have any off-balance sheet arrangements, as defined in Item 303 of Regulation S-K.

As of March 31, 2026, we did not have any off-balance sheet arrangements, as defined in Item 303 of Regulation S-K.

Quantitative and Qualitati ve Disclosures About Market Risk.

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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