What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-06 compared with 2025-08-07 · 89 added, 82 removed, 223 unchanged (43% of the section changed)

1 unchanged sentence

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q for the three months ended June 30, 2025 (the “Quarterly Report on Form 10-Q”) contains “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

This Quarterly Report on Form 10-Q for the three months ended September 30, 2025 (the “Quarterly Report on Form 10-Q”) contains “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

When used in this Quarterly Report on Form 10-Q, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

21 unchanged sentences

Business and Macroeconomic Conditions

During the three and six months ended June 30, 2025 , we continued to execute against our plan to expand our footprint by selling and placing our patented hydradermabrasion delivery systems (“Delivery Systems”) worldwide, drive consumables, which consist of single-use tips, solutions, serums and other consumables used to provide a Hydrafacial treatment that cleanses, extracts, and hydrates the skin (collectively “Consumables”), invest in our community of providers, partners, and consumers, drive brand awareness, and optimize our global infrastructure.

During the three and nine months ended September 30, 2025 , we continued to execute against our plan to expand our footprint by selling and placing our patented hydradermabrasion delivery systems (“Delivery Systems”) worldwide, drive consumables, which consist of single-use tips, solutions, serums and other consumables used to provide a Hydrafacial treatment that cleanses, extracts, and hydrates the skin (collectively “Consumables”), invest in our community of providers, partners, and consumers, drive brand awareness, and optimize our global infrastructure.

Although we believe we can be successful in our current operating environment, various factors may impact our business in unpredictable ways such as:

9 unchanged sentences

During the second quarter of 2025, the Company transitioned sales in the China market to a distributor partner, and as a result, the Company has discontinued direct sales to customers in China.

Comparison of Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024

Comparison of Three Months Ended September 30, 2025 to Three Months Ended September 30, 2024

The following tables set forth our consolidated results of operations in dollars and as a percentage of net sales for the periods presented.

The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.

The results of operations data for the three months ended June 30, 2025 and June 30, 2024, have been derived from the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

The results of operations data for the three months ended September 30, 2025 and September 30, 2024, have been derived from the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Amounts and percentages may not foot due to rounding.

Three Months Ended June 30,

Three Months Ended September 30,

(in millions) 2025 % of Net Sales 2024 % of Net Sales

12 unchanged sentences

Change in fair value of warrant liabilities (0.2) (0.3) (0.4) (0.5)

Foreign currency transaction (gain) loss, net (4.5) (5.7) 1.1 1.3

Income (loss) before provision for income taxes 18.7 23.9 (0.2) (0.2)

Income tax benefit (1.0) (1.3) (0.4) (0.4)

Net income $ 19.7 25.2 % $ 0.2 0.2 %

Three Months Ended June 30, Change

Foreign currency transaction loss (gain), net 0.2 0.2 (2.3) (2.9)

Loss before provision for income taxes (10.6) (15.1) (16.3) (20.7)

Income tax expense 0.4 0.5 1.9 2.5

Net loss $ (11.0) (15.6) % $ (18.3) (23.2) %

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

3 unchanged sentences

Total net sales $ 70.7 $ 78.8 $ (8.1) (10.3) %

Three Months Ended June 30,

Three Months Ended September 30,

Percentage of net sales 2025 2024

2 unchanged sentences

Total 100.0% 100.0%

Total net sales for the three months ended June 30, 2025 decreased $12.4 million, or 13.7%, compared to the three months ended June 30, 2024.

Delivery Systems net sales for the three months ended June 30, 2025 decreased $12.9 million, or 36.5%, compared to the three months ended June 30, 2024, with decreases across all regions.

Total net sales for the three months ended September 30, 2025 decreased $8.1 million, or 10.3%, compared to the three months ended September 30, 2024.

Delivery Systems net sales for the three months ended September 30, 2025 decreased $6.8 million, or 24.6%, compared to the three months ended September 30, 2024, with decreases across all regions.

Delivery Systems net sales were negatively impacted globally by unfavorable macroeconomic and credit conditions.

Consumables net sales for the three months ended June 30, 2025 increased $0.4 million, or 0.8%, compared to the three months ended June 30, 2024.

The slight increase in Consumables net sales was primarily attributable to increased placements of Delivery Systems and the adjoining consumption of Consumables during the three months ended June 30, 2025.

Consumables net sales for the three months ended September 30, 2025 decreased $1.4 million, or 2.6%, compared to the three months ended September 30, 2024.

The slight decrease in Consumables net sales includes declines related to the China transition to a distributor partner.

Excluding the impact of the China transition, Consumables net sales increased slightly, with price increases offset by lower volume.

Cost of Sales, Gross Profit, and Gross Margin

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

2 unchanged sentences

Gross margin 64.6 % 51.6 %

Cost of sales for the three months ended June 30, 2025 decreased $20.6 million, compared to the three months ended June 30, 2024 primarily due to lower net sales and inventory related charges.

Cost of sales for the three months ended June 30, 2024 include $13.8 million of inventory charges for discontinued, excess, obsolete inventory, including the write-down of Delivery System inventory to its net realizable value and the write-off of excess raw materials.

Gross margin increased to 62.8% for the three months ended June 30, 2025 from 45.2% for the three months ended June 30, 2024 primarily due to lower inventory related charges and favorable mix shift towards consumable net sales, partially offset by lower average selling price of equipment net sales.

Cost of sales for the three months ended September 30, 2025 decreased $13.1 million, compared to the three months ended September 30, 2024 primarily due to lower inventory related charges and net sales.

Cost of sales for the three months ended September 30, 2024 include approximately $8 million of manufacturing optimization related costs.

Gross margin increased to 64.6% for the three months ended September 30, 2025 from 51.6% for the three months ended September 30, 2024 primarily due to lower inventory related charges and favorable mix shift towards consumable net sales, partially offset by lower average selling price of equipment net sales.

Operating Expenses

Selling and Marketing

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 29.6 % 35.0 %

Selling and marketing expense for the three months ended June 30, 2025 decreased $7.4 million, or 24.2%, compared to the three months ended June 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, including share-based compensation expense and lower sales commission expense, marketing related spend, and depreciation and amortization expense.

Selling and marketing expense for the three months ended September 30, 2025 decreased $6.7 million, or 24.2%, compared to the three months ended September 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, including share-based compensation expense, and lower depreciation and amortization expense.

Research and Development

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 2.4 % 1.4 %

Research and development expense for the three months ended June 30, 2025 remained relatively flat compared to the three months ended June 30, 2024.

Research and development expense for the three months ended September 30, 2025 increased $0.6 million, or 53.2%, compared to the three months ended September 30, 2024.

The increase is primarily driven by higher other professional services expenses.

General and Administrative

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 41.4 % 42.4 %

General and administrative expense for the three months ended June 30, 2025 decreased $4.0 million, or 12.6%, compared to the three months ended June 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, including share-based compensation expense, lower severance, depreciation and amortization expense, and other general corporate spend, and bad debt recoveries.

The decrease was partially offset by higher legal fees.

Interest Income, Change in Fair Value of Warrant Liabilities, and Other Income, Net

Three Months Ended June 30, Change

General and administrative expense for the three months ended September 30, 2025 decreased $4.2 million, or 12.5%, compared to the three months ended September 30, 2024.

The decrease is primarily driven by lower share-based compensation expense and other general corporate spend, and bad debt recoveries.

The decrease was partially offset by higher amortization expense, severance expense, and legal fees.

Interest Expense, Interest Income, Change in Fair Value of Warrant Liabilities, and Other Income, Net

Three Months Ended September 30, Change

(in millions) 2025 2024 Amount %

Interest expense $ 6.3 $ 2.5 $ 3.8 155.7 %

Interest income

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Other income, net

$ (18.1) $ (17.3) $ (0.8) 4.8 %

$ (0.6) $ (0.1) $ (0.5) N/M

N/M - Not meaningful

Interest income for the three months ended June 30, 2025 decreased $1.0 million, compared to the three months ended June 30, 2024, primarily due to lower average invested balances during the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company recognized expense of $0.2 million related to the change in the fair value of the warrant liabilities as compared to income of $4.0 million for the three months ended June 30, 2024, driven primarily by the fluctuation of the price of the Company’s Class A common stock (the “Class A Common Stock”).

Other income, net for the three months ended June 30, 2025 included $18.1 million net gain related to the exchange and repurchases of the 1.25% Convertible Senior Notes due October 1, 2026 (the “2026 Notes”).

Other income, net for the three months ended June 30, 2024 included $17.3 million net gain related to the repurchases of the 2026 Notes.

Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024

Interest expense for the three months ended September 30, 2025 increased $3.8 million compared to the three months ended September 30, 2024, primarily due to interest and amortization of debt issuance costs related to the 2028 Notes, partially offset by lower outstanding balances related to the 2026 Notes.

Interest income for the three months ended September 30, 2025 decreased $3.6 million compared to the three months ended September 30, 2024 primarily due to lower average invested balances and interest rates during the three months ended September 30, 2025.

Comparison of Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024

The following tables set forth our consolidated results of operations in dollars and as a percentage of net sales for the periods presented.

The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.

The results of operations data for the six months ended June 30, 2025 and June 30, 2024 have been derived from the condensed consolidated financial statements included elsewhere in this Form 10-Q.

The results of operations data for the nine months ended September 30, 2025 and September 30, 2024 have been derived from the condensed consolidated financial statements included elsewhere in this Form 10-Q.

Amounts and percentages may not foot due to rounding.

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) 2025 % of Net Sales 2024 % of Net Sales

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Foreign currency transaction (gain) loss, net (6.2) (2.8) 0.2 0.1

Income (loss) before provision for income taxes 9.5 6.4 (1.5) (0.9)

Income tax benefit (0.1) (0.1) (1.0) (0.6)

Net income (loss) $ 9.6 6.5 % $ (0.5) (0.3) %

Six Months Ended June 30, Change

Loss before provision for income taxes (1.1) (0.5) (17.8) (7.1)

Income tax expense 0.3 0.1 0.9 0.4

Net loss $ (1.4) (0.6) % $ (18.8) (7.5) %

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

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Total net sales $ 218.4 $ 250.8 $ (32.4) (12.9) %

Six Months Ended June 30,

Nine Months Ended September 30,

Percentage of net sales 2025 2024

2 unchanged sentences

Total 100.0% 100.0%

Total net sales for the six months ended June 30, 2025 decreased $24.2 million , or 14.1% , compared to the six months ended June 30, 2024.

Delivery System net sales for the six months ended June 30, 2025 decreased $28.4 million , or 40.0% , compared to the six months ended June 30, 2024, with decreases across all regions.

Total net sales for the nine months ended September 30, 2025 decreased $32.4 million , or 12.9% , compared to the nine months ended September 30, 2024.

Delivery System net sales for the nine months ended September 30, 2025 decreased $35.2 million , or 35.7% , compared to the nine months ended September 30, 2024, with decreases across all regions.

Delivery Systems net sales were negatively impacted globally by unfavorable macroeconomic and credit conditions.

Consumables net sales for the six months ended June 30, 2025 increased $4.2 million , or 4.1% , compared to the six months ended June 30, 2024.

The increase in Consumables net sales was primarily attributable to increased placements of Delivery Systems and the adjoining consumption of Consumables during the six months ended June 30, 2025.

Consumables net sales for the nine months ended September 30, 2025 increased $2.8 million , or 1.9% , compared to the nine months ended September 30, 2024.

The increase in Consumables net sales was primarily attributable to increased placements of Delivery Systems and the adjoining consumption of Consumables during the nine months ended September 30, 2025.

Cost of Sales, Gross Profit, and Gross Margin

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

2 unchanged sentences

Gross margin 65.6 % 51.8 %

Cost of sales for the six months ended June 30, 2025 decreased $32.6 million, compared to the six months ended June 30, 2024 primarily due to lower net sales and inventory related charges.

Cost of sales for the six months ended June 30, 2024 include $19.3 million of inventory charges for discontinued, excess, obsolete inventory, including the write-down of Delivery System inventory to its net realizable value and the write-off of excess raw materials.

Gross margin increased to 66.1% for the six months ended June 30, 2025 from 51.9% for the six months ended June 30, 2024 primarily due to lower inventory related charges and favorable mix shift towards consumable net sales, partially offset by lower average selling price of equipment net sales.

Cost of sales for the nine months ended September 30, 2025 decreased $45.8 million, compared to the nine months ended September 30, 2024 primarily due to lower inventory related charges and net sales.

Cost of sales for the nine months ended September 30, 2024 include $22.7 million of inventory charges for discontinued, excess, obsolete inventory, including the write-down of Delivery System inventory to its net realizable value and the write-off of excess raw materials and approximately $8 million of manufacturing optimization related costs.

Gross margin increased to 65.6% for the nine months ended September 30, 2025 from 51.8% for the nine months ended September 30, 2024 primarily due to lower inventory related charges and favorable mix shift towards consumable net sales, partially offset by lower average selling price of equipment net sales.

Operating Expenses

Selling and Marketing

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 32.1 % 36.6 %

Selling and marketing expense for the six months ended June 30, 2025 decreased $15.0 million, or 23.4%, compared to the six months ended June 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, including share-based compensation expense, and lower sales commission expense, marketing related spend and depreciation and amortization expense.

Selling and marketing expense for the nine months ended September 30, 2025 decreased $21.7 million, or 23.7%, compared to the nine months ended September 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, including share-based compensation expense and sales commission expense, and lower marketing related spend and depreciation and amortization expense.

Research and Development

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 1.8 % 2.0 %

Research and development expense for the six months ended June 30, 2025 decreased $1.7 million, or 43.3%, compared to the six months ended June 30, 2024.

The decrease is primarily driven by lower personnel-related expenses.

Research and development expense for the nine months ended September 30, 2025 decreased $1.1 million, or 22.2%, compared to the nine months ended September 30, 2024.

The decrease is primarily driven by lower personnel-related expenses, partially offset by higher other professional services expenses.

General and Administrative

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

1 unchanged sentence

As a percentage of net sales 41.3 % 37.4 %

General and administrative expense for the six months ended June 30, 2025 remained relatively flat compared to the six months ended June 30, 2024, with higher legal fees and severance being partially offset by lower personnel-related expenses, including share-based compensation expense, lower other general corporate spend and depreciation and amortization expense, and bad debt recoveries.

Interest Income, Change in Fair Value of Warrant Liabilities, and Other Income, Net

Six Months Ended June 30, Change

General and administrative expense for the nine months ended September 30, 2025 decreased $3.4 million, or 3.7%, compared to the nine months ended September 30, 2024.

The decrease is primarily driven by lower share-based compensation expense, depreciation expense, and other general corporate spend, and bad debt recoveries.

The decrease is partially offset by higher legal fees, amortization expense, and severance expense.

Interest Expense, Interest Income, Change in Fair Value of Warrant Liabilities, and Other Income, Net

Nine Months Ended September 30, Change

(in millions) 2025 2024 Amount %

Interest expense $ 13.0 $ 7.9 $ 5.0 63.0 %

Interest income

5 unchanged sentences

N/M - Not meaningful

Interest income for the six months ended June 30, 2025 decreased $3.4 million compared to the six months ended June 30, 2024 primarily due to lower average invested balances during the six months ended June 30, 2025 .

During the six months ended June 30, 2025 , the Company recognized income of $0.1 million related to the change in the fair value of the warrant liabilities, as compared to income of $2.6 million for the six months ended June 30, 2024 , driven primarily by the fluctuation of the price of the Class A Common Stock.

Other income, net for the six months ended June 30, 2025 included $18.1 million net gain related to the exchange and repurchases of the 2026 Notes.

Other income, net for the six months ended June 30, 2024 included $33.4 million net gain related to the repurchases of the 2026 Notes.

Interest expense for the nine months ended September 30, 2025 increased $5.0 million compared to the nine months ended September 30, 2024, primarily due to interest and amortization of debt issuance costs related to the 2028 Notes, partially offset by lower outstanding balances related to the 2026 Notes.

Interest income for the nine months ended September 30, 2025 decreased $7.0 million compared to the nine months ended September 30, 2024 primarily due to lower average invested balances and interest rates during the nine months ended September 30, 2025 .

During the nine months ended September 30, 2025 , the Company recognized income of $0.3 million related to the change in the fair value of the warrant liabilities, as compared to income of $3.0 million for the nine months ended September 30, 2024 , driven primarily by the fluctuation of the price of the Company’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock”) .

Other income, net for the nine months ended September 30, 2025 included $18.1 million net gain related to the exchange and repurchases of the 2026 Notes.

Other income, net for the nine months ended September 30, 2024 included $33.4 million net gain related to the repurchases of the 2026 Notes.

Liquidity and Capital Resources

Our primary sources of capital have been (i) cash flow from operating activities, (ii) net proceeds received from the consummation of the Business Combination, (iii) net proceeds received from the 2026 Notes, and (iv) net proceeds received from the exercise of public and private placement warrants.

As of June 30, 2025, we had cash, cash equivalents, and restricted cash of $212.0 million.

As of September 30, 2025, we had cash, cash equivalents, and restricted cash of $219.4 million.

Our operating cash flows result primarily from cash received from sales of Delivery Systems and Consumables, offset primarily by cash payments made for products and services, employee compensation, payment processing and related transaction costs, operating leases, marketing expenses, and interest payments for our Notes.

23 unchanged sentences

The 2026 Notes issued on September 14, 2021 include the $100.0 million principal amount of 2026 Notes issued pursuant to the full exercise by the initial purchasers of such option.

During the three months ended March 31, 2024, the Company repurchased $75.0 million principal amount of its 2026 Notes at a weighted-average price equal to 77% for $57.8 million and recognized a net gain of $16.1 million, which includes $1.2 million of unamortized debt issuance costs.

Additionally, during the three months ended June 30, 2024, the Company repurchased $117.3 million principal amount of its 2026 Notes at a weighted-average price equal to 84% for $98.3 million and recognized a net gain of $17.3 million, which includes $1.6 million of unamortized debt issuance costs.

The total amount paid and net gain recognized to repurchase $192.3 million principal amount during the six months ended June 30, 2024 was $156.1 million and $33.4 million, respectively.

During the three and six months ended June 30, 2025, the Company repurchased an additional $20.0 million principal amount of its 2026 Notes at a weighted-average price equal to 92% for $18.4 million and recognized a net gain of $1.5 million, which includes $0.1 million of unamortized debt issuance costs.

During the three months ended September 30, 2024, there were no repurchases related to the 2026 Notes.

During the nine months ended September 30, 2024, the Company repurchased $192.3 million principal amount of the 2026 Notes for $156.1 million and recognized a net gain of $33.4 million, which includes $2.8 million of unamortized debt issuance costs related to the repurchase.

During the three months ended September 30, 2025, there were no repurchases related to the 2026 Notes.

During the nine months ended September 30, 2025, the Company repurchased $20.0 million principal amount of the 2026 Notes for $18.4 million and recognized a net gain of $1.5 million, which includes $0.1 million of unamortized debt issuance costs related to the repurchase.

The net gain is included in other income, net in the Condensed Consolidated Statements of Comprehensive Income (Loss).

Convertible Senior Secured Notes - 2028

On May 21, 2025, the Company entered into privately negotiated exchange agreements (the “Exchange Agreements”) with certain holders (the “Exchanging Holders”) of the 2026 Notes (the “Existing Notes”).

Pursuant to the Exchange Agreements, the Company exchanged and repurchased approximately $413.2 million aggregate principal amount of the Existing Notes.

Pursuant to the Exchange Agreements, the Company exchanged and repurchased $413.2 million aggregate principal amount of the Existing Notes.

Of the $413.2 million aggregate principal amount of the Existing Notes, $263.2 million principal amount were exchanged at a weighted-average price equal to 95% for $250.0 million principal amount of new 7.95% Convertible Senior Secured Notes due November 15, 2028 (the “2028 Notes”), and $150.1 million principal amount were repurchased at a weighted-average price equal to 95% for $142.6 million.

5 unchanged sentences

The 2028 Notes are the Company’s senior, secured obligations and are guaranteed by certain of the Company’s subsidiaries (including the Company’s material domestic, wholly-owned subsidiaries) and are secured on a first-priority basis by substantially all assets of the Company and such guarantors, subject to certain exceptions.

The 2028 Indenture also contains a number of restrictive covenants and limitations, including restrictions on the Company’s ability to incur certain indebtedness and other limitations on liens, investments and restricted payments, as further described in the 2028 Indenture.

The 2028 Indenture also contains a number of restrictive covenants and limitations, including restrictions on the Company’s ability to incur certain indebtedness

and other limitations on liens, investments and restricted payments, as further described in the 2028 Indenture.

For more information, see Part I, Item 1 “Financial Statements — Note 5 - “Long-term Debt” in this Quarterly Report on Form 10-Q.

13 unchanged sentences

Amounts may not foot due to rounding.

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions) 2025 2024

2 unchanged sentences

Operating activities:

Net income (loss) 9.6 (0.5)

Net loss (1.4) (18.8)

Non-cash adjustments 21.2 51.6

9 unchanged sentences

Operating Activities

Net cash provided by operating activities for the six months ended June 30, 2025 was $12.6 million, as compared to net cash used for operating activities of $10.7 million for the six months ended June 30, 2024.

The change in cash provided by operating activities was primarily related to lower working capital usage and changes in net income and non-cash adjustments.

The current year net income and non-cash adjustments include $18.1 million of net gain related to the exchange and repurchases of the 2026 Notes.

Net cash provided by operating activities for the nine months ended September 30, 2025 was $22.3 million, as compared to net cash used for operating activities of $0.3 million for the nine months ended September 30, 2024.

The change in cash provided by operating activities was primarily related to lower working capital usage and changes in net loss and non-cash adjustments.

The current year net loss and non-cash adjustments include $18.1 million of net gain related to the exchange and repurchases of the 2026 Notes.

The prior year net loss and non-cash adjustments include $33.4 million of net gain related to the repurchases of the 2026 Notes and the prior year changes in working capital includes the impact of the costs associated with the Syndeo Program of $21.0 million.

Investing Activities

Net cash used for investing activities for the six months ended June 30, 2025 was $2.7 million, as compared to $3.8 million for the six months ended June 30, 2024.

The change in cash used for investing activities was due to lower capital expenditures during the six months ended June 30, 2025.

Net cash used for investing activities for the nine months ended September 30, 2025 was $3.8 million, as compared to $5.9 million for the nine months ended September 30, 2024.

The change in cash used for investing activities was due to lower capital expenditures during the nine months ended September 30, 2025.

Financing Activities

Net cash used for financing activities for the six months ended June 30, 2025 was $173.6 million, as compared to $157.4 million for the six months ended June 30, 2024.

The cash used for financing activities for the six months ended June 30, 2025 was primarily related to the exchange and repurchases of the Company’s 2026 Notes.

The cash used for financing activities for the six months ended June 30, 2024 was primarily related to the repurchases of the Company’s 2026 Notes.

Net cash used for financing activities for the nine months ended September 30, 2025 was $174.4 million, as compared to $157.6 million for the nine months ended September 30, 2024.

The cash used for financing activities for the nine months ended September 30, 2025 was primarily related to the exchange and repurchases of the Company’s 2026 Notes.

The cash used for financing activities for the nine months ended September 30, 2024 was primarily related to the repurchases of the Company’s 2026 Notes.

Critical Accounting Policies and Estimates

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis