What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-05 compared with 2025-03-06 · 76 added, 76 removed, 374 unchanged (29% of the section changed)

9 unchanged sentences

A discussion regarding our financial condition and results of operations for the fiscal year ended December 31, 2024 compared to the fiscal year ended December 31, 2023 can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 8, 2024, which is incorporated herein by reference.

We are a provider of outsourced digital services and next-generation customer experience to the world’s most innovative companies, helping our clients represent, protect and grow their brands.

We serve our clients by supporting their end customers’ urgent needs, helping them navigate an increasingly complex compliance landscape, handling sensitive tasks, including online content moderation, and enabling artificial intelligence technology and automation.

As of December 31, 2024, we supported approximately 200 clients spanning established and emerging industry sectors, including social media, e-commerce, gaming, streaming media, food delivery and ride-sharing, technology, financial services, and healthcare.

We deliver outsourced digital services that power the companies shaping the future.

By combining specialized human talent and intelligent technology, we solve complex operational challenges for global category leaders within AI, autonomous vehicles, robotics, social media, financial services, healthcare, and beyond.

We enable our clients to elevate their customer experience, protect their platforms, and grow their brands.

As of December 31, 2025, we supported approximately 200 clients.

Our global, omnichannel delivery model is focused on providing our clients three key services – Digital Customer Experience (“Digital CX”), Trust & Safety, and Artificial Intelligence (“AI”) Ser vices.

7 unchanged sentences

Business Highlights

During 2024, we supported both new and existing clients as they navigated an uncertain global macroeconomic environment.

We expanded our client portfolio, winning 39 new clients in 2024 and achieving a 45% new client win rate, and increasing the scope of services provided to our current clients, with 63 current clients signing new statements of work.

While continuing investments in resources and technology to achieve our goal of returning to growth following a challenging year in 2023, we maintained our focus on cost optimization, profit margins and cash generation.

We also made new investments in technology and talent in support of our goal of leading the industry in the implementation of generative AI-enabled tools, to deliver the next generation of specialized and customer experience services.

During 2025, we won 34 new clients and achieved a 36% new client win rate, while increasing the scope of services provided to our current clients, with 67 current clients signing new statements of work.

Since returning to revenue growth of 7.6% in 2024, our continuing focus on clients and focused investments in technology and talent has supported an acceleration of revenue growth to 19.0% while increasing our net income margin to 8.6%.

2025 Developments

Return to Revenue Growth

During 2024, we have seen some of the challenges and market uncertainty we faced in 2023 begin to subside.

Through our continued focus on partnering with our clients and strategic investments we have made in sales and marketing, including our focus on landing enterprise clients and cross-selling our specialized services, we achieved revenue growth of 7.6% for the the year ended December 31, 2024 compared to a revenue decline of 3.8% for the year ended December 31, 2023.

This acceleration of revenue growth requires additional investments in operations, facilities, hiring and training.

Additionally, we have seen an increase in pricing pressure as our clients remain focused on cost reduction and competitors reduce their rates.

While we believe we are a premium provider of specialized services, we have and expect to continue to price our services competitively in order to achieve above market growth rates and take share from our competitors.

These factors may impact our margins and cash flow.

AI Investments

Certain of our clients, including our largest client, have announced automation initiatives which include significant investments in generative AI.

In some cases, TaskUs is supporting these initiatives, which may lead to revenue growth in the near term but may ultimately result in the automation of some services that TaskUs currently provides for these clients.

We continue to pursue opportunities to transform our business, and create new, enduring revenue streams, in response to these developments.

This includes our partnerships with developers of agentic AI technologies to help our clients seamlessly integrate advanced AI technologies into their customer experience operations.

While certain of our clients’ initiatives have driven revenue growth in recent quarters, there can be no assurance that our revenue will continue at the same level, or that revenue in other service offerings will not be negatively impacted by our clients' automation investments.

Recent Financial Highlights

For the year ended December 31, 2025, we recorded service revenue of $1,183.5 million, a 19.0% increase from $995.0 million for the year ended December 31, 2024.

For the year ended December 31, 2024, we recorded net income of $45.9 million consistent with $45.7 million for the year ended December 31, 2023, due primarily to higher revenue growth and higher interest income, mostly offset by higher cost of services and certain litigation costs.

Adjusted Net Income for the year ended December 31, 2024 decreased 6.2% to $118.7 million from $126.5 million for the year ended December 31, 2023.

Adjusted EBITDA for the year ended December 31, 2024 decreased 5.0% to $209.9 million from $220.8 million for the year ended December 31, 2023.

For the year ended December 31, 2025, we recorded net income of $102.3 million a 123.0% increase from $45.9 million for the year ended December 31, 2024, due primarily to higher revenue growth and the impact of foreign currency exchange rates, partially offset by higher cost of services.

Adjusted Net Income for the year ended December 31, 2025 increased 27.8% to $151.7 million from $118.7 million for the year ended December 31, 2024.

Adjusted EBITDA for the year ended December 31, 2025 increased 18.7% to $249.1 million from $209.9 million for the year ended December 31, 2024.

For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see " — Non-GAAP Financial Measures below."

Our operating results in any period are not necessarily indicative of the results that may be expected for any future period.

Subsequent Events

For a description of subsequent events, see Note 17, "Subsequent Events" in the Notes to Consolidated Financial Statements included included in this Annual Report.

Trends and Factors Affecting our Performance

11 unchanged sentences

This approach has earned us the opportunity to support some of the most innovative companies and has enabled significant expansion opportunities with large global enterprises.

We continue to implement generative AI into our offerings, augmenting the support our talented teammates provide to meaningfully improve client outcomes and operational efficiencies, as well as supporting clients with the creation and tuning of AI algorithms and training AI models to align them with human values and protect marketplaces against adverse effects of generative AI outputs.

Within Digital Customer Experience, we are deploying generative AI solutions to improve customer experiences and help our clients operate more efficiently to grow their business, including through our expanded sales and customer acquisition services.

Within Trust + Safety, we have seen an increase in client demand for our Financial Crimes + Compliance services where we leverage a combination of data analytics, technology and human expertise to reduce regulatory compliance risk and detect and prevent activities that could involve money laundering, fraud, or other financial crimes.

During 2025, we focused on expanding the following specialized service offerings:

• AI Deployment Management in the Field:

Working with autonomous vehicle and robotics companies to deploy and manage the performance of AI in real-world production environments.

Evaluating and fine-tuning Large Language Models, ensuring client deployments remain compliant with evolving international safety standards and ethical guidelines.

Providing an integrated approach that addresses the critical 'human-in-the-loop' requirement for developing trustworthy AI while reducing operational risks associated with generative technology for our clients.

• Agentic AI Partnerships:

Partnering with agentic AI platform companies to apply agentic AI upfront to automate many simple, repetitive customer service functions, while providing human support from our talented experts.

Expanding geographically

We expanded our presence to 31 sites in 13 countries as of December 31, 2025.

During 2024, we significantly increased our Headcount outside of the U.S., the Philippines and India (the “Rest of World”) from approximately 6,000 employees as of December 31, 2023 to approximately 8,700 as of December 31, 2024, with particularly strong growth in Colombia and Greece.

During 2025, we significantly increased our Headcount in India, the Philippines and the Rest of World by approximately 3,300 employees, 2,600 employees and 800 employees, respectively.

We plan to continue expanding our geographic footprint to drive growth with both existing and new clients, which may result in one-time costs that may impact profitability.

1 unchanged sentence

This allows us to serve our clients better in the long term in most cases and deepens our relationship as we tend to grow and operate over multiple geographies with our larger clients over time as they grow.

As of December 31, 2024, we supported 83 clients from more than one geography, an increase of 32% year-over-year.

As of December 31, 2025, we supported 78 clients from more than one geography, a decrease of 6% year-over-year.

These changes in geographic mix may result in fluctuations in revenue and cost of service which are driven by the geography in which the work is being performed.

5 unchanged sentences

While we incurred certain costs associated with these activities, including severance in some cases, we believe these actions will have long-term benefits to the goal of enabling our future growth and profitability.

In 2024, our cost management activities enabled us to make investments in growth including resources in sales and marketing, global delivery locations, and the deployment of technologies.

Our technology investments include the implementation of TaskGPT, our suite of generative AI-enabled tools which allow our teammates to drive increased efficiency, quality, and customer satisfaction.

We also increased our investments in industry and service line expertise and operational excellence.

We believe this combination of technology, expertise, and our well-trained teammates is a critical part of what makes us the provider of choice for our clients.

We generated net cash flow from operating activities of $138.9 million and Free Cash Flow of $99.8 million, respectively, resulting in an increase of cash and cash equivalents of $66.4 million, while reducing our debt.

These cost management activities enabled us to make investments in growth including resources in sales and marketing, global delivery locations, and the deployment of technologies.

During the year ended December 31, 2025 , we generated net cash flow from operating activities of $137.2 million and Free Cash Flow of $73.7 million, respectively, resulting in an increase of cash and cash equivalents of $19.5 million, while reducing our debt.

As of December 31, 2025 , we had cash and cash equivalents totaling $211.7 million and $190.0 million of borrowing availability under the 2022 Revolving Credit Facility, which we believe positions us well to continue investing in our future growth and profitability.

17 unchanged sentences

• AI Services :

Principally consists large language model support and high-quality data labeling services, annotation, context relevance and transcription services performed for the purpose of training and tuning machine learning algorithms, enabling them to develop cutting-edge AI systems.

Principally consists of large language model support and high-quality data labeling services, annotation, context relevance and transcription services performed for the purpose of training and tuning machine learning algorithms, enabling them to develop cutting-edge AI systems.

As these services are delivered, we bill our clients on either time-and-materials, cost-plus, unit-priced, fixed-price, or outcome oriented basis.

40 unchanged sentences

Net income $ 102,275 $ 45,870 $ 56,405 123.0 %

not meaningful

NM = not meaningful

Service revenue

10 unchanged sentences

$ 1,183,547 $ 994,985 $ 188,562 19.0 %

Digital Customer Experience was primarily driven by an increase from new clients, including Financial Services, Healthcare and Professional Services + Industry.

This increase was mostly offset by a decrease from existing clients, including On Demand Travel + Transportation and Entertainment + Gaming, partially offset by an increase in Financial Services.

Trust + Safety was primarily driven by an increase from existing clients, including Social Media and Financial Services.

AI Services was primarily driven by an increase from new clients, including Professional Services + Industry, Technology and Social Media.

This increase was partially offset by a decrease from existing clients, including On Demand Travel + Transportation, partially offset by Technology.

Digital Customer Experience was primarily driven by an increase from existing clients, including Technology, Healthcare and Financial Services, partially offset by a decrease in On Demand Travel + Transportation.

The remaining increase was primarily driven by new clients in Retail + E-Commerce and Technology.

Trust & Safety was primarily driven by an increase from existing clients, primarily in Social Media, partially offset by a decrease in On Demand Travel + Transportation.

AI Services was primarily driven by an increase from existing clients, primarily in Social Media, as well as On Demand Travel + Transportation.

Service revenue by delivery geography

12 unchanged sentences

$ 1,183,547 $ 994,985 $ 188,562 19.0 %

Trust + Safety contributed 6.6% of the total increase primarily driven by clients in Social Media and Financial Services.

Digital Customer Experience contributed 4.0% of the total increase primarily driven by clients in Financial Services, Technology and Healthcare, partially offset by clients in Retail + E-Commerce.

AI Services reduced 0.5% of the total increase primarily driven by clients in Social Media.

AI Services contributed 6.3% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation.

Digital Customer Experience contributed 5.1% of the total increase primarily driven by clients in Technology, Financial Services and Healthcare, partially offset by clients in Retail + E-Commerce and On Demand Travel + Transportation.

Trust & Safety contributed 1.9% of the total increase primarily driven by clients in Social Media, partially offset by clients in Financial Services.

United States:

Digital Customer Experience contributed 23.5% of the total decrease primarily driven by clients in On Demand Travel + Transportation, Entertainment + Gaming, Technology, Social Media, Healthcare and Retail + E-Commerce.

Trust + Safety reduced 2.7% of the total decrease primarily driven by clients in Social Media and On Demand Travel + Transportation.

AI Services was flat driven by a decrease in clients in On Demand Travel + Transportation, mostly offset by clients in Social Media.

Trust + Safety contributed 7.6% of the total increase primarily driven by clients in Social Media, On Demand Travel + Transportation and Retail + E-Commerce.

AI Services contributed 4.2% of the total increase primarily driven by clients in Professional Services + Industry and Social Media.

Digital Customer Experience reduced 4.9% of the total increase primarily driven by clients in On Demand Travel + Transportation, partially offset by clients in Retail + E-Commerce.

AI Services contributed 22.0% of the total increase driven by clients in Social Media and On Demand Travel + Transportation.

Trust & Safety contributed 1.5% of the total increase primarily driven by clients in Social Media.

Digital Customer Experience reduced 11.4% of the total increase primarily driven by clients in Technology, On Demand Travel + Transportation, Financial Services and Healthcare.

Digital Customer Experience contributed 22.9% of the total increase primarily driven by clients in On Demand Travel + Transportation, Retail + E-Commerce, Healthcare, Technology and Professional Services + Industry, partially offset by clients in Financial Services.

AI Services contributed 7.6% of the total increase primarily driven by clients in Social Media.

Trust & Safety reduced 6.3% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation.

Rest of World:

Digital Customer Experience contributed 17.6% of the total increase primarily driven by clients in Financial Services, Professional Services + Industry, On Demand Travel + Transportation and Technology.

Trust & Safety contributed 28.6% of the total increase primarily driven by clients in Social Media and Financial Services.

AI Services contributed 0.6% of the total increase primarily driven by clients in Technology.

Growth in the Rest of World was driven by Colombia, Greece and Mexico.

AI Services contributed 4.4% of the total increase primarily driven by clients in Social Media and Entertainment + Gaming.

Digital Customer Experience contributed 3.4% of the total increase primarily driven by clients in Technology, Financial Services and Professional Services + Industry, partially offset by clients in On Demand Travel + Transportation and Retail + E-Commerce.

Growth in the Rest of World was driven by Latin America and Europe.

Operating expenses

Cost of services

The increase was primarily driven by higher personnel costs of $46.4 million associated with increased headcount.

The remaining increase included facilities and related costs associated with site expansion and recruiting costs to prepare for accelerating growth.

The increase was primarily driven by higher personnel costs of $108.2 million associated with increased headcount and facilities costs associated with site expansion.

The remaining increase includes employee engagement and transportation costs.

These increases were partially offset by realized gains on cash flow hedges of $4.1 million.

Selling, general, and administrative expense

The increase was primarily driven by certain litigation costs of $15.4 million.

This increase was partially offset by lower personnel costs of $2.9 million, due primarily to a reduction in stock-based compensation expense of $9.9 million, as well as earn-out consideration of $7.9 million, partially offset by an increase in headcount and bonus, associated with higher revenue attainment.

The increase was primarily driven by transaction costs of $11.9 million and operational efficiency costs of $2.4 million.

The remaining increase includes higher employee and client engagement expenses.

These increases were partially offset by a reduction of litigation costs of $15.4 million and personnel costs of $1.0 million, including a $11.0 million reduction in stock-based compensation expense.

Loss (gain) on disposal of assets

The change wa s associated with optimizing our footprint in 2023, resulting in exiting certain sites in the United States and the Philippines.

The change was primarily driven by the write-off of software due to the determination that it would no longer be used in our operations or provide future economic benefit.

Other income, net

3 unchanged sentences

Financing expense

Changes in financing expense are primarily driven by changes in the rate of SOFR used to calculate the interest rate of our deb t, as well as quarterly payments.

Changes in financing expense are primarily driven by changes in the rate of SOFR used to calculate the interest rate of our debt, as well as quarterly payments.

See “—Liquidity and Capital Resources—Indebtedness—2022 Credit Agreement” for additional information.

1 unchanged sentence

Our effective tax rate for the years ended December 31, 2025 and 2024 was 25.2% and 38.2%, respectiv ely.

Costs related to the issuance of stock-based compensation, the acquisition of heloo, litigation costs and severance within the provision for income taxes calculation are adjusted for Non-GAAP purposes.

Costs related to the issuance of stock-based compensation, litigation costs, transaction costs, severance and operational efficiency costs within the provision for income taxes calculation are adjusted for Non-GAAP purposes.

If those costs are removed, the provision for income taxes would have been $43.6 million and $35.0 million and the effective tax rate would have been 23.9% and 26.4% for the years ended December 31, 2025 and December 31, 2024, respectively.

20 unchanged sentences

Net revenue retention rate (1)

(1) “Headcount” refers to the total number of TaskUs teammates globally as of the end of a given measurement period.

As of December 31, 2024 and 2023, our Headcount included approximately 150 and 350, respectively, of contractor and agency teammates who support our heloo operations.

(1) “Net revenue retention rate” is an important metric we calculate annually to measure the retention and growth in the use of our services by our existing clients.

11 unchanged sentences

Adjusted Net Income is a non-GAAP profitability measure that represents net income or loss for the period before the impact of amortization of intangible assets and certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses.

During the periods presented, we excluded from Adjusted Net Income amortization of intangible assets, transaction costs, earn-out consideration, the effect of foreign currency gains and losses, gains and losses on disposals of assets, non-recurring severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP.

During the periods presented, we excluded from Adjusted Net Income amortization of intangible assets, transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP.

Our management believes that the inclusion of supplementary adjustments to net income applied in presenting Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.

7 unchanged sentences

11,899 — 11,899 100.0 %

Earn-out consideration (2)

Operational efficiency costs (2)

2,383 — 2,383 100.0 %

Foreign currency losses (3)

1,302 431 871 202.1 %

(8,029) 1,302 (9,331) NM

Loss (gain) on disposal of assets 525 (80) 605 NM

12 unchanged sentences

NM = not meaningful

(1) Represents professional service fees related to non-recurring transactions.

(2) Represents earn-out consideration recognized as compensation expense related to the acquisition of heloo.

(3) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S.

(1) Represents non-recurring professional service fees related to the take-private transaction that have been expensed during the period.

(2) Represents professional service fees related to certain efforts to enhance efficiency of client delivery and operations support.

(3) Represents the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S.

dollar-denominated accounts to foreign currency.

2 unchanged sentences

(6) Represents stock-based compensation expense, as well as associated payroll tax.

(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation, the acquisition of heloo, litigation costs and severance.

(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation, transaction costs, operational efficiency costs, litigation costs and severance.

After these adjustments, we applied a non-GAAP effective tax rate of 23.9% and 26.4% for the year ended December 31, 2025 and 2024, respectively, to non-GAAP income before income taxes.

14 unchanged sentences

Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses.

During the periods presented, we excluded from Adjusted EBITDA transaction costs, earn-out consideration, the effect of foreign currency gains and losses, gains and losses on disposals of assets, non-recurring severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and interest income, which include costs that are required to be expensed in accordance with GAAP.

During the periods presented, we excluded from Adjusted EBITDA transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and interest income, which include costs that are required to be expensed in accordance with GAAP.

Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.

10 unchanged sentences

11,899 — 11,899 100.0 %

Earn-out consideration (2)

Operational efficiency costs (2)

2,383 — 2,383 100.0 %

Foreign currency losses (3)

1,302 431 871 202.1 %

(8,029) 1,302 (9,331) NM

Loss (gain) on disposal of assets 525 (80) 605 NM

12 unchanged sentences

NM = not meaningful

(1) Represents professional service fees related to non-recurring transactions.

(2) Represents earn-out consideration recognized as compensation expense related to the acquisition of heloo.

(3) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S.

(1) Represents non-recurring professional service fees related to the take-private transaction that have been expensed during the period.

(2) Represents professional service fees related to certain efforts to enhance efficiency of client delivery and operations support.

(3) Represents the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S.

dollar-denominated accounts to foreign currency.

36 unchanged sentences

The share repurchase program was initially announced in September 2022 for up to $100.0 million of shares of our Class A common stock and capacity was increased to a total authorization of $200.0 million of shares of our Class A common stock (exclusive of any commissions, fees or excise taxes) in May 2023.

Pursuant to our share repurchase program, we may repurchase shares of our Class A common stock from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act.

Open market purchases are expected to be structured to occur within the pricing volume requirements of Rule 10b-18.

The timing and total amount of stock repurchases will depend upon, business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, restrictions under the terms of our loan agreements and other relevant considerations.

The repurchase program may be modified, suspended or discontinued at any time at the Company’s discretion and does not obligate the Company to acquire any amount of Class A common stock.

During the year ended December 31, 2025, we repurchased 2,112,247 shares of our Class A common stock under the share repurchase program for $27.7 million, which we funded principally with available cash.

As of December 31, 2024, approximately $39.6 million remained available for share repurchases under our share repurchase program.

The share repurchase program expired in accordance with its scheduled terms on December 31, 2025.

Additionally, on February 25, 2026, the Board of Directors declared a special cash dividend of $3.65 per share, or approximately $333.0 million in the aggregate, payable on March 25, 2026.

The Company intends to fund the dividend and the repayment of existing debt obligations using proceeds from a refinancing of its credit facilities and cash on the Company’s balance sheet.

As of December 31, 2025, our total indebtedness, net of debt financing fees was $241.4 million .

33 unchanged sentences

Net cash used in investing activities for the year ended December 31, 2025 was $63.5 million compared to net cash used in investing activities of $39.1 million for the year ended December 31, 2024.

The increase was primarily due to higher site build-out costs and purchases of technology and computers for replacements and to support revenue growth , partially offset by the investment in loan receivable in 2023 .

The increase was primarily due to higher site build-out costs as well as purchases of technology and computers to support revenue growth.

Financing Activities

Net cash used in financing activities for the year ended December 31, 2025 was $44.2 million compared to net cash used in financing activities of $25.2 million for the year ended December 31, 2024.

The decrease was due primarily to lower payments to acquire shares under our share repurchase agreement.

The increase was due primarily to the additional shares acquired under our share repurchase program, higher payments on long-term debt and increased payments for taxes related to net share settlement, partially offset by higher proceeds from employee stock plans.

Contractual Obligations

37 unchanged sentences

We have elected to use the extended transition period until we are no longer an emerging growth company or until we choose to affirmatively and irrevocably opt out of the extended transition period.

As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public com panies.

We will lose our status as an emerging growth company on December 31, 2026, the last day of the fiscal year following the fifth anniversary of our initial public offering.

As a result, we will no longer be entitled to take advantage of specified reduced reporting requirements after that date.

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-K

Item 7. Management’s Discussion and Analysis