What changed in this filing

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Item 1. Financial Statements

2026-08-10 compared with 2026-05-06 · 125 added, 70 removed, 289 unchanged (40% of the section changed)

3 unchanged sentences

(Amounts in thousands, except share data)

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

Accounts receivable, net of allowance for doubtful accounts of $ 145 and $ 231 as of

March 31, 2026 and December 31, 2025, respectively

June 30, 2026 and December 31, 2025, respectively

Prepaid expenses and other current assets

17 unchanged sentences

Preferred stock—$ 0.001 par value, 10,000,000 shares authorized, and 0 shares

issued and outstanding, as of March 31, 2026 and December 31, 2025

issued and outstanding, as of June 30, 2026 and December 31, 2025

Common stock—$ 0.001 par value, 200,000,000 shares authorized, 14,114,395 and

14,151,350 shares issued, and 14,111,891 and 14,151,350 shares outstanding, as of

March 31, 2026 and December 31, 2025

Treasury stock, at cost, 500 and 0 shares as of March 31, 2026 and December 31, 2025

14,151,350 shares issued and outstanding, as of June 30, 2026 and December 31, 2025

Additional paid-in capital

6 unchanged sentences

(Amounts in thousands, except share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Costs and expenses:

15 unchanged sentences

Treasury stock

paid-in capital

Retained earnings

Balance at March 31, 2025

Vesting of restricted stock units

Increase in treasury stock resulting

from shares withheld to cover

statutory taxes

Retirement of treasury stock

Share-based compensation

Balance at June 30, 2025

Balance at March 31, 2026

Vesting of restricted stock units

Increase in treasury stock resulting

from shares withheld to cover

statutory taxes

Common stock repurchased

Retirement of treasury stock

Share-based compensation

Balance at June 30, 2026

Treasury stock

Retained earnings

paid-in capital

7 unchanged sentences

Share-based compensation

Balance at March 31, 2025

Balance at June 30, 2025

Balance at December 31, 2025

6 unchanged sentences

Share-based compensation

Balance at March 31, 2026

Balance at June 30, 2026

See notes to condensed consolidated financial statements.

2 unchanged sentences

(Amounts in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

24 unchanged sentences

Net cash used in financing activities

Net decrease in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

5 unchanged sentences

Retirement of treasury stock

Right-of-use assets obtained in exchange of operating lease liabilities

See notes to condensed consolidated financial statements.

7 unchanged sentences

The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for any future interim periods or for the full year ending December 31, 2026.

The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026 (“Form 10-K”).

The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date included in the 2025 Form 10-K, but does not include all disclosures required by US GAAP.

24 unchanged sentences

The Company is currently evaluating the impact this ASU may have on its condensed consolidated financial statements.

In December 2025, the FASB issued ASU No.

2025-12, "Codification Improvements." The ASU clarifies, corrects and makes minor improvements to various provisions of the Accounting Standards Codification.

Among other amendments, the ASU clarifies that, upon the formal or constructive retirement of treasury stock, the excess of the repurchase price over par value may be recognized entirely as a deduction from additional paid-in capital, provided that additional paid-in capital does not become negative.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted.

The Company does not expect the adoption of this ASU to have a material effect on its condensed consolidated financial statements.

Earnings per share

1 unchanged sentence

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, vested, or converted into common stock and is calculated using the treasury stock method and contingently issuable share guidance, as applicable.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except share data)

1 unchanged sentence

Earnings per share:

(1) For the three months ended March 31, 2026 and 2025, diluted weighted average shares outstanding reflect the dilutive effect of certain unvested restricted stock units ("RSUs").

(1) For the three and six months ended June 30, 2026 and 2025, diluted weighted average shares outstanding reflect the dilutive effect of certain unvested restricted stock units ("RSUs").

Intangible assets, net

Intangible assets other than goodwill consist of the following:

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

The gross carrying amount of acquired intangible assets reflects the acquisition cost of certain data assets for which the Company has obtained perpetual usage rights.

Amortization expenses of $ 2,746 and $ 2,500 were included in depreciation and amortization expense for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, intangible assets of $ 7,211 , included in the gross carrying amounts of intangible assets, have not yet commenced amortization, as they are not ready for their intended use.

The Company capitalized costs of intangible assets of $ 3,661 and $ 3,991 during the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, estimated amortization expense related to the Company’s intangible assets for the remainder of 2026 through 2031 and thereafter is as follows:

Amortization expenses of $ 2,716 and $ 2,595 for the three months ended June 30, 2026 and 2025, respectively, and $ 5,462 and $ 5,095 for the six months ended June 30, 2026 and 2025, respectively, were included in depreciation and amortization expense.

As of June 30, 2026, intangible assets of $ 7,790 , included in the gross carrying amounts of intangible assets, have not yet commenced amortization, as they are not ready for their intended use.

The Company capitalized costs of intangible assets of $ 3,733 and $ 2,784 during the three months ended June 30, 2026 and 2025, respectively, and $ 7,394 and $ 6,775 during the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, estimated amortization expense related to the Company’s intangible assets for the remainder of 2026 through 2031 and thereafter is as follows:

(In thousands)

March 31, 2026

June 30, 2026

Remainder of 2026

2031 and thereafter

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination.

As of March 31, 2026 and December 31, 2025, the balance of goodwill of $ 5,227 resulted from the acquisition of Interactive Data, LLC, a wholly-owned subsidiary of red violet, effective on October 2, 2014.

In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value.

The measurement date of the Company’s annual goodwill impairment test is October 1 .

The Company did no t record a goodwill impairment loss during the three months ended March 31, 2026 and 2025, and as of March 31, 2026, there was no accumulated goodwill impairment loss.

Revenue recognition

3 unchanged sentences

The pricing for the customer contracts is based on usage, a monthly fee, or a combination of both.

Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts.

Permitted under Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts.

Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract-by-contract basis.

1 unchanged sentence

The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided.

Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date.

Furthermore, the Company has elected the “right to invoice” practical expedient, permitted under Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date.

In some arrangements, a right to consideration for the Company's performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable.

As of March 31, 2026, the current and noncurrent portions of unbilled accounts receivable of $ 1,408 and $ 964 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets .

As of June 30, 2026, the current and noncurrent portions of unbilled accounts receivable of $ 1,296 and $ 777 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets .

As of December 31, 2025, the current and noncurrent portions of unbilled accounts receivable of $ 1,137 and $ 880 , respectively, were included within accounts receivable and other noncurrent assets, respectively , on the condensed consolidated balance sheets.

The Company's revenue arrangements do not contain significant financing components.

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.

For each of the three months ended June 30, 2026 and 2025, 77 % of total revenue was attributable to customers with pricing contracts, versus 23 % attributable to transactional customers.

For each of the six months ended June 30, 2026 and 2025, 76 % of total revenue was attributable to customers with pricing contracts, versus 24 % attributable to transactional customers.

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

If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue.

As of March 31, 2026 and December 31, 2025, the balance of deferred revenue was $ 956 and $ 1,028 , respectively, all of which is expected to be realized in the next 12 months.

In relation to the deferred revenue balance as of December 31, 2025, $ 440 was recognized into revenue during the three months ended March 31, 2026.

As of March 31, 2026, $ 22,177 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied , related to pricing contracts that have a term of more than 12 months, of which, $ 9,507 of revenue will be recognized in the remainder of 2026, $ 8,750 in 2027, $ 2,986 in 2028, $ 814 in 2029, and $ 120 in 2030 and thereafter.

As of June 30, 2026 and December 31, 2025, the balance of deferred revenue was $ 1,195 and $ 1,028 , respectively, all of which is expected to be recognized as revenue in the next 12 months.

In relation to the deferred revenue balance as of December 31, 2025, $ 287 and $ 727 were recognized as revenue during the three and six months ended June 30, 2026, respectively.

As of June 30, 2026, $ 23,770 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied , related to pricing contracts that have a term of more than 12 months, of which, $ 7,032 of revenue will be recognized in the remainder of 2026, $ 10,300 in 2027, $ 4,144 in 2028, $ 1,625 in 2029, $ 370 in 2030, and $ 299 in 2031 and thereafter.

The actual timing of recognition may vary due to factors outside of the Company’s control.

6 unchanged sentences

In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter.

The Company concluded that, due to its established historical cumulative positive income before income taxes plus permanent differences for recent years, projections of future taxable income, and the reversal of taxable temporary differences, the realization of deferred tax assets as of March 31, 2026 was more likely than not.

The Company’s effective income tax rate was 24 % for each of the three months ended March 31, 2026 and 2025.

The effective tax rate differed from the U.S.

federal statutory rate of 21 % primarily due to state income taxes and certain nondeductible expenses, partially offset by research and development tax credits and excess tax benefits related to share-based compensation.

The Company’s effective income tax rate was 24 % and 13 % for the three months ended June 30, 2026 and 2025, respectively, and 24 % and 19 % for the six months ended June 30, 2026 and 2025, respectively, differing from the U.S.

federal statutory rate of 21 %.

For the three and six months ended June 30, 2026, the effective income tax rates were higher than the statutory rate, primarily driven by state income taxes and nondeductible expenses, partially offset by research and development tax credits and excess tax benefits related to share-based compensation.

In contrast, for the three and six months ended June 30, 2025, the effective income tax rates were lower than the statutory rate, primarily attributable to the research and development tax credits and excess tax benefits related to share-based compensation, partially offset by state income taxes and nondeductible expenses.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date.

3 unchanged sentences

Due to the existence of net operating loss carryforwards since inception, all of the Company’s income tax filings remain open for tax examinations.

The Company does no t have any material unrecognized tax benefits as of March 31, 2026 and December 31, 2025.

The Company does no t have any material unrecognized tax benefits as of June 30, 2026 and December 31, 2025.

Shareholders' equity

Common stock and treasury stock

As of March 31, 2026 and December 31, 2025, the number of issued shares of common stock was 14,112,391 and 14,151,350 , respectively, which included shares of treasury stock of 500 and 0 , respectively.

As of June 30, 2026 and December 31, 2025, the number of issued shares of common stock was 14,114,395 and 14,151,350 , respectively.

The Company held no shares of treasury stock as of either date.

The changes in the number of issued shares of common stock and treasury stock were due to the following factors:

• An aggregate of 53,469 shares of common stock were issued as a result of the vesting of RSUs, of which, 15,924 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $ 714 .

All 10,618 shares of treasury stock were retired during the three months ended March 31, 2026.

• During the three months ended March 31, 2026, the Company repurchased 63,500 shares of common stock under the Stock Repurchase Program, as defined below, which was reflected in treasury stock, with a cost of $ 2,704 .

Related treasury stock of 63,000 shares, with a cost of $ 2,687 , was retired during the three months ended March 31, 2026, resulting in a treasury stock balance of $ 17 as of March 31, 2026 .

All 15,924 shares of treasury stock were retired during the six months ended June 30, 2026.

• During the six months ended June 30, 2026, the Company repurchased 74,500 shares of common stock under the Stock Repurchase Program, as defined below, which was reflected in treasury stock, with a cost of $ 3,122 .

All 74,500 shares of treasury stock were retired during the six months ended June 30, 2026 .

On May 2, 2022, the Company's Board of Directors authorized a stock repurchase program to repurchase the Company's common stock from time to time through open market purchases, privately negotiated transactions or other means, including pursuant to Rule 10b5-1 trading plans, 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 (the "Stock Repurchase Program").

5 unchanged sentences

The primary purpose of the 2018 Plan is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to contribute to the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company.

As of March 31, 2026, there were 1,636,286 shares of common stock available for future issuance under the 2018 Plan.

As of June 30, 2026, there were 1,583,202 shares of common stock available for future issuance under the 2018 Plan.

To date, all share-based awards granted under the 2018 Plan have been in the form of RSUs.

RSUs granted under the 2018 Plan vest upon the satisfaction of either service-based vesting conditions or both service-based and performance-based vesting conditions.

Service-based vesting conditions are generally satisfied over three or four years with annual vesting.

Unvested activity related to RSUs subject solely to service-based vesting conditions for the three months ended March 31, 2026 was as follows :

Service-based vesting conditions are generally satisfied over periods ranging from one to four years with annual vesting.

Unvested activity related to RSUs subject solely to service-based vesting conditions for the six months ended June 30, 2026 was as follows :

Number of units

4 unchanged sentences

Withheld as treasury stock (2)

Unvested as of March 31, 2026

(1) During the three months ended March 31, 2026, the Company granted an aggregate of 22,657 RSUs to certain employees and directors at grant date fair values ranging from $ 42.39 to $ 52.81 per share, with vesting periods ranging from three to four years .

Unvested as of June 30, 2026

(1) During the six months ended June 30, 2026, the Company granted an aggregate of 60,641 RSUs to certain employees and directors, and a consultant, at grant date fair values ranging from $ 42.39 to $ 54.09 per share, with vesting periods ranging generally from one to four years .

(2) Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs.

Refer to Note 6, "Shareholders' equity" for details.

As of March 31, 2026, unrecognized share-based compensation expense associated with the granted RSUs subject solely to service-based vesting conditions amounted to $ 18,055 , which is expected to be recognized over a remaining weighted average period of 2.3 years.

As of June 30, 2026, unrecognized share-based compensation expense associated with the granted RSUs subject solely to service-based vesting conditions amounted to $ 16,846 , which is expected to be recognized over a remaining weighted average period of 2.1 years.

Performance-based awards

On March 18, 2024, the Company granted 130,000 RSUs to one non-executive employee, subject to performance-based vesting conditions, with a grant-date fair value of $ 18.30 per share.

The RSUs will vest only upon the achievement of specified revenue targets for a portion of the Company's business on or prior to December 31, 2030, the last achievement date deadline (collectively, the "2024 Performance Criteria").

Of the 130,000 RSUs granted, 15,000 vested and delivered prior to December 31, 2025.

No amortization of share-based compensation expense has been recognized for 70,000 RSUs from this grant because, as of March 31, 2026, the Company determined that it is not probable the applicable 2024 Performance Criteria will be met in the future.

On January 9, 2026, the Company granted an aggregate of 832,690 RSUs to certain key executive officers under the 2018 Plan, subject to performance-based vesting conditions, with a grant-date fair value of $ 52.77 per share.

In addition to RSUs subject solely to service-based vesting conditions as described above, all RSUs granted by the Company that are subject to performance-based vesting conditions also carry service-based vesting conditions.

Unvested activity related to RSUs subject to both service-based and performance-based vesting conditions for the six months ended June 30, 2026 was as follows:

Number of units

Weighted average

grant-date fair value

Unvested as of December 31, 2025

Vested not delivered

Unvested as of June 30, 2026

On March 18, 2024, the Company granted 130,000 RSUs to one non-executive employee, subject to both service-based and performance-based vesting conditions, with a grant-date fair value of $ 18.30 per share.

The RSUs vest upon the achievement of specified revenue targets for a portion of the Company's business on or prior to December 31, 2030 (the "2024 Performance Criteria").

As of December 31, 2025, 15,000 RSUs had vested and been delivered.

Of the remaining 115,000 unvested RSUs included in "Unvested as of December 31, 2025" in the table above, achievement of the applicable performance conditions for 45,000 RSUs was considered probable.

During the six months ended June 30, 2026, 20,000 of these RSUs vested but had not yet been delivered, and the Company determined that achievement of performance conditions applicable to an additional 35,000 RSUs had become probable.

Accordingly, as of June 30, 2026, 60,000 RSUs remained probable of achievement but unvested.

No share-based compensation expense has been recognized for the remaining 35,000 unvested RSUs because achievement of the applicable performance conditions was not considered probable as of June 30, 2026.

On January 9, 2026, the Company granted an aggregate of 832,690 RSUs to certain key executive officers under the 2018 Plan, subject to both service-based and performance-based vesting conditions, with a grant-date fair value of $ 52.77 per share.

The awards vest upon achievement of specified revenue and adjusted EBITDA margin targets over a trailing twelve-month period on or prior to March 31, 2030 (the "2026 Performance Criteria").

2 unchanged sentences

Compensation expense for these awards will be recognized if and when the performance conditions are determined to be probable of achievement.

No share-based compensation expense related to these awards has been recognized, because, as of March 31, 2026, the 2026 Performance Criteria are not determined to be probable.

As of March 31, 2026 and December 31, 2025, the unvested RSUs with the performance-based vesting conditions probable of achievement are 45,000 shares.

As of March 31, 2026, the unrecognized share-based compensation expense associated with the granted RSUs subject to performance-based vesting conditions amounted to $ 45,582 .

No share-based compensation expense related to these awards has been recognized because, as of June 30, 2026, achievement of the 2026 Performance Criteria was not considered probable.

On April 7, 2026, the Company granted 30,000 RSUs to one non-executive employee, subject to both service-based and performance-based vesting conditions, with a grant-date fair value of $ 37.23 per share.

The award vests in increments upon the achievement of specified qualifying acquisitions on or prior to March 2, 2029 (the "2026 Acquisition Performance Criteria").

No share-based compensation expense related to this award has been recognized because, as of June 30, 2026, achievement of the 2026 Acquisition Performance Criteria was not considered probable.

As of June 30, 2026 and December 31, 2025, the number of unvested RSUs subject to both service-based and performance-based vesting conditions that were considered probable of achievement was 60,000 and 45,000 , respectively.

As of June 30, 2026, the unrecognized share-based compensation expense associated with the granted RSUs subject to both service-based and performance-based vesting conditions amounted to $ 46,843 .

For awards probable of achievement, the unrecognized share-based compensation expense amounted to $ 504 , which is expected to be recognized over a remaining weighted average period of 2.8 years.

Summary of share-based compensation

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands)

7 unchanged sentences

The extension options of such agreements were not included in the determination of the lease terms.

On December 20, 2024, the Company entered into a non-cancellable 80-month operating lease agreement for its new Seattle office space of 6,709 rentable square feet, with the lease commencement date on May 1, 2025.

For the three months ended March 31, 2026 and 2025, a summary of the Company’s lease information is shown below:

Three Months Ended March 31,

For the three and six months ended June 30, 2026 and 2025, a summary of the Company’s lease information is shown below:

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands)

2 unchanged sentences

Cash paid for operating leases

As of March 31, 2026 and December 31, 2025, the weighted average remaining operating lease term was 4.4 years and 4.6 years, respectively, and the weighted average discount rate used to measure the operating lease liabilities was 8.16 % and 8.23 %, respectively.

As of March 31, 2026, scheduled future maturities and present value of the operating lease liabilities are as follows:

Right-of-use assets obtained in exchange for new

operating lease liabilities (1)

(1) The New Seattle Lease resulted in the recognition of $ 1,153 in right-of-use assets obtained in exchange for operating lease liabilities as of May 1, 2025.

The Company applied a 6.0 % discount rate, its estimated incremental borrowing rate for similar secured assets, to determine the present value of the lease payments, as the implicit rate in the lease is not readily determinable.

The discount rate was based on information available as of the lease commencement date.

As of June 30, 2026 and December 31, 2025, the weighted average remaining operating lease term was 4.2 years and 4.6 years, respectively, and the weighted average discount rate used to measure the operating lease liabilities was 8.09 % and 8.23 %, respectively.

As of June 30, 2026, scheduled future maturities and present value of the operating lease liabilities are as follows:

(In thousands)

March 31, 2026

June 30, 2026

Remainder of 2026

11 unchanged sentences

Information about reported segment revenue, segment net income, and significant segment expenses is shown as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

13 unchanged sentences

(1) Cost of revenue (exclusive of depreciation and amortization) includes certain personnel-related expenses and share-based compensation expense, which are not included in the related line items below.

(2) Professional fees for the three months ended March 31, 2026 included $ 259 of acquisition-related costs incurred in connection with due diligence of potential strategic targets.

No acquisition-related costs were incurred during the three months ended March 31, 2025.

(2) Professional fees for the three and six months ended June 30, 2026 included $ 49 and $ 308 , respectively, of acquisition-related costs incurred in connection with due diligence of potential strategic targets.

Comparable acquisition-related costs were $ 370 for each of the three and six months ended June 30, 2025.

(3) Other segment items include primarily travel and entertainment, write-off of long-lived assets, and other selling, general and administrative expenses.

1 unchanged sentence

(a) Capital commitment

The Company incurred data costs, included within cost of revenue (exclusive of depreciation and amortization), of $ 2,439 and $ 2,542 for the three months ended March 31, 2026 and 2025, respectively , under certain data licensing agreements.

The Company incurred data costs, included within cost of revenue (exclusive of depreciation and amortization), of $ 2,443 and $ 2,417 for the three months ended June 30, 2026 and 2025, respectively , and $ 4,882 and $ 4,959 for the six months ended June 30, 2026 and 2025, respectively, under certain data licensing agreements.

In April 2025, the Company entered into a five-year, non-cancellable cloud services agreement with a third-party provider.

1 unchanged sentence

Costs incurred under this agreement are either (i) expensed as infrastructure fees and included in cost of revenue (exclusive of depreciation and amortization) when used in the delivery of our services to customers, or (ii) capitalized as internal-use software costs within intangible assets when consumed in the development or enhancement of the Company’s internal-use software.

As of March 31, 2026, the total material capital commitments under certain data licensing agreements and the cloud service agreement amounted to $ 39,813 , shown as follows:

As of June 30, 2026, the total material capital commitments under certain data licensing agreements and the cloud service agreement amounted to $ 35,498 , shown as follows:

(In thousands)

March 31, 2026

June 30, 2026

Remainder of 2026

5 unchanged sentences

To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss.

The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated.

The Company does not record liabilities when the likelihood that the loss has been incurred is probable, but the amount cannot be reasonably estimated.

On February 7, 2024 , the Company was named as a defendant by Atlas Data Privacy Corporation (“Atlas”), Jane Doe-1, Jane Doe-2, Edwin Maldonado, Scott Maloney, Justyna Maloney, Patrick Colligan, and William Sullivan in an action filed in the Superior Court of New Jersey, Law Division, Monmouth County (the “Action”).

14 unchanged sentences

However, the results of such matters cannot be predicted with certainty, and the Company cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on its business, financial condition, results of operations, and cash flows.

Subsequent events

On August 5, 2026, the Company entered into an underwriting agreement with Raymond James & Associates, Inc.

and Needham & Company, LLC, as representatives of the several underwriters (the “Underwriters”), relating to an underwritten public offering (the “Offering”) of 1,666,667 shares of its common stock.

The Company also granted the Underwriters a 30-day option to purchase up to an additional 250,000 shares, which the Underwriters exercised in full on August 6, 2026, resulting in the issuance and sale of an aggregate of 1,916,667 shares.

On August 7, 2026, the Company closed the Offering at a public offering price of $ 60.00 per share.

The shares were issued under the Company’s effective shelf registration statement on Form S-3.

Net proceeds to the Company were approximately $ 108.6 million, after deducting underwriting discounts and commissions and estimated offering expenses.

The Company intends to use the net proceeds for working capital and general corporate purposes, including potential strategic acquisitions.

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