BLACKLINE, INC.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
BL$25.89-23.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032255
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001628280-26-053353
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 131 previous paragraphs and 164 current paragraphs.
58 unchanged; 62 reworded; 32 added; 9 removed; 2 previous and 12 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
The platform is comprised of four primary functional layers that work as one:
Current report
•The Unified Financial Data Foundation: Aggregates and harmonizes transactional data from disparate enterprise resource planning (“ERP”) and banking systems into a consolidated, extensible data model.
Current report
•The Auditable Trust and Governance Layer: Enforces configurable rules, permissions, and financial controls to ensure system and user actions remain traceable and compliant.
Current report
•The Event-Driven Orchestration Engine: Sequences and automates workflows in real time across systems, personnel, and artificial intelligence agents.
Current report
•The Embedded Intelligence Layer (Verity AI): Integrates machine learning, generative artificial intelligence, and agentic reasoning directly into financial workflows to assist with risk detection, proposing solutions, and automating decision-making under the direction and oversight of finance and accounting teams.
Current report
For the six months ended June 30, 2026 and 2025, we had revenues totaling $371.0 million and $339.0 million, respectively. We generated net income attributable to BlackLine, Inc. of $24.6 million and $14.3 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
•$2.9 million increase in computer software expenses due to higher cloud hosting costs and continued strategic investments in our embedded product solutions; and
Current report
•$0.7 million decrease in employee compensation and benefits; and
Current report
The increase in total cost of revenues for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to the following:
Current report
•$6.6 million increase in computer software expenses due to higher cloud hosting costs and continued strategic investments in our embedded product solutions;
Current report
•$0.4 million increase in depreciation and amortization due to the addition of developed technology from the WiseLayer acquisition, net of certain assets becoming fully amortized in prior periods; partially offset by
Current report
•$1.7 million decrease in employee compensation and benefits; and
Current report
•$0.4 million decrease in professional fees.
Current report
The increase in sales and marketing expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to the following:
Current report
•$8.1 million increase in employee compensation and benefits; and
Current report
•$1.7 million increase in travel-related expenses; partially offset by
Current report
•$0.6 million decrease in digital marketing expense due to streamlined marketing efforts.
Current report
•$3.0 million increase in employee compensation and benefits; and
Current report
•$0.9 million increase in computer software expenses due to continued strategic investments in automation; partially offset by
Current report
The increase in research and development expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to the following:
Current report
•$8.1 million increase in employee compensation and benefits;
Current report
•$0.8 million decrease in professional fees.
Current report
The increase in general and administrative expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to the following:
Current report
•$1.8 million increase in employee compensation and benefits;
Current report
•$5.4 million increase in other long-term liabilities;
Current report
•$4.8 million net decrease in prepaid expenses and other current assets primarily due to amortization of prepaid balances and timing of tax payments, partially offset by prepaid insurance and cloud-based data storage costs to support our suite of solutions;
Current report
•$2.2 million increase in deferred revenue primarily due to customer growth and timing of billings for subscription and support.
Current report
•$1.4 million increase in other assets due to a net increase in prepaid commissions and cloud computing costs.
Current report
For the six months ended June 30, 2026, cash used in financing activities was $326.4 million primarily as a result of the following:
Current report
•$4.1 million of proceeds from the employee stock purchase plan.
Current report
For the six months ended June 30, 2025, cash used in financing activities was $92.2 million primarily as a result of the following:
Current report
•$4.6 million of proceeds from the employee stock purchase plan.
Removed paragraphs (9)
Previous report
In September 2025, we launched Verity, a comprehensive suite of AI capabilities that provides finance and accounting teams with a digital workforce of embedded and auditable AI. Verity is integrated throughout our solutions and supports a broad range of use cases across our customers’ financial operations, offering flexible capabilities that help deliver best practices across end-to-end record-to-report and invoice-to-cash processes.
Previous report
•$3.8 million increase in computer software expenses due to upgrades to support business growth;
Previous report
•$4.9 million increase in employee compensation and benefits; and
Previous report
•$1.0 million increase in travel-related expenses; partially offset by
Previous report
•$5.0 million increase in employee compensation and benefits; and
Previous report
•$0.3 million decrease in professional fees.
Previous report
•$2.3 million increase in employee compensation and benefits;
Previous report
For the quarter ended March 31, 2026, cash used in financing activities was $291.0 million primarily as a result of the following:
Previous report
For the quarter ended March 31, 2025, cash used in financing activities was $54.3 million primarily as a result of the following:
Reworded paragraphs (62)
Previous wording
We offer a future-ready platform that drives digital finance transformation by empowering organizations with accurate, efficient, and intelligent financial operations. Built on the Studio360 platform, BlackLine unifies data, streamlines processes, and delivers real-time insights through automation and intelligence powered by Verity - a comprehensive suite of embedded, auditable AI capabilities that provides finance and accounting teams with a new digital workforce.
Current wording
BlackLine’s Agentic Financial Operations Platform drives digital finance transformation by empowering organizations with accurate, efficient, and intelligent financial operations. Powered by Studio360 and using intelligence powered by Verity - a comprehensive suite of embedded, auditable AI capabilities - BlackLine unifies data, streamlines processes, and delivers real-time insights. Our platform is built on an architecture that separates the system processing transactions from the system that independently validates and controls them.
Previous wording
At March 31, 2026, we had 4,301 customers, exclusive of on-premise software. Additionally, we continue to build strategic relationships with technology vendors, professional services firms, business process outsourcers, and resellers.
Current wording
At June 30, 2026, we had 4,260 customers, exclusive of on-premise software. Additionally, we continue to build strategic relationships with technology vendors, providers of learning language models, professional services firms, business process outsourcers, and resellers.
Previous wording
Our cloud-based solutions, delivered by our BlackLine Studio360 Platform, include Account Reconciliations, Transaction Matching, Task Management, Reporting & Analysis, Journal Entry, Journals Risk Analyser, Account Analysis, Consolidation, Compliance, Smart Close for SAP, Cash Application, Credit & Risk Management, Collections Management, Disputes & Deductions Management, Team & Task Management, AR Intelligence, Electronic Invoicing & Payments, Intercompany Create, Intercompany Balance & Resolve, and Intercompany Net & Settle.
Current wording
Our cloud-based solutions, delivered by our BlackLine Studio360 Platform, include Account Reconciliations, Transaction Matching, Task Management, Reporting & Analysis, Journal Entry, Journals Risk Analyser, Account Analysis, Consolidation, Compliance, Smart Close for SAP, Verity Accruals, Cash Application, Credit & Risk Management, Collections Management, Disputes & Deductions Management, Team & Task Management, AR Intelligence, Electronic Invoicing & Payments, Intercompany Create, Intercompany Balance & Resolve, and Intercompany Net & Settle.
Previous wording
We derived approximately 95% of our revenue from subscriptions to our cloud-based software platform and approximately 5% from professional services for the quarter ended March 31, 2026. Our subscription contracts have initial non-cancellable terms of one year to three years with renewal options. The majority of new contracts in 2025 and during the quarter ended March 31, 2026 carried an initial non-cancellable term of three years. In 2025, we updated our pricing model to reflect the value of our solutions based on factors such as product mix, organization size, and volumetrics (e.g. number of transactions or entities). We typically invoice subscription fees annually in advance, which are initially recorded as deferred revenue and recognized ratably over the contract term. First-year subscription fees are generally payable within 30 days of contract execution, with subsequent fees due upon renewal.
Current wording
We derived approximately 95% of our revenue from subscriptions to our cloud-based software platform and approximately 5% from professional services for the six months ended June 30, 2026. Our subscription contracts have initial non-cancellable terms of one year to three years with renewal options. The majority of new contracts in 2025 and during the six months ended June 30, 2026 carried an initial non-cancellable term of three years. In 2025, we updated our pricing model to reflect the value of our solutions based on factors such as product mix, organization size, and volumetrics (e.g., number of transactions or entities). We typically invoice subscription fees annually in advance, which are initially recorded as deferred revenue and recognized ratably over the contract term. First-year subscription fees are generally payable within 30 days of contract execution, with subsequent fees due upon renewal.
Previous wording
Our ability to maximize the lifetime value of our customer relationships depends, in part, on the willingness of customers to purchase additional licenses and products from us. Our sales and customer success teams focus on maintaining high satisfaction and educating customers on the value of our full product portfolio to support account expansion.
Current wording
Our ability to maximize the lifetime value of our customer relationships depends, in part, on the willingness of customers to purchase additional licenses and products from us. Our sales and customer success teams focus on maintaining high satisfaction and educating customers on the value and use of our full product portfolio to support account expansion.
Previous wording
The length of our sales cycle depends on the size of a potential customer and contract, as well as the type of solution or product being purchased. Sales cycles for global enterprise customers are generally longer than those for mid-size customers, and cycle duration increases for larger or more strategic products, such as our Intercompany solutions. As we focus on increasing average contract size and expanding adoption of strategic products, we expect the sales cycle to lengthen and remain less predictable which may contribute to variability in period-to-period results.
Current wording
The length of our sales cycle depends on the size of a potential customer and contract, as well as the type of solution or product being purchased. Sales cycles for global enterprise customers are generally longer than those for mid-size customers, and cycle duration increases for larger or more strategic products, such as our Intercompany solutions. As we focus on increasing average contract size and expanding adoption of strategic products, we have seen and expect the sales cycle to lengthen and remain less predictable which may contribute to variability in period-to-period results.
Previous wording
We have historically signed a high percentage of agreements with new customers, as well as renewal agreements with existing customers, in the fourth quarter of each year and usually during the last month of the quarter. Because most contracts have annual terms, agreements entered into late in the year typically renew during the same period in subsequent years. While this seasonality is reflected in our billings and bookings, the impact on overall revenue is minimal due to our ratable revenue recognition model.
Current wording
We have historically signed a high percentage of agreements with new customers, as well as renewal agreements with existing customers, in the fourth quarter of each year and usually during the last month of the quarter. Because a significant number of contracts have renewal terms of one year, agreements entered into late in the year typically renew during the same period in subsequent years. While this seasonality is reflected in our billings and bookings, the impact on overall revenue is minimal due to our ratable revenue recognition model.
Previous wording
For the quarters ended March 31, 2026 and 2025, we had revenues totaling $183.2 million and $166.9 million, respectively. We generated net income attributable to BlackLine, Inc. of $8.1 million and $6.1 million for the quarters ended March 31, 2026 and 2025, respectively.
Current wording
For the quarters ended June 30, 2026 and 2025, we had revenues totaling $187.8 million and $172.0 million, respectively. We generated net income attributable to BlackLine, Inc. of $16.5 million and $8.3 million for the quarters ended June 30, 2026 and 2025, respectively.
Previous wording
Our operating results may vary due to the impact of industry or global economic conditions on us or our customers. General macroeconomic conditions, such as political conflicts, recession, inflation or rising interest rates, an economic downturn in the U.S. or internationally, adverse business conditions and liquidity concerns, have and could continue to adversely affect demand for our products and make it difficult to accurately forecast and plan our future business activities. As a result of economic uncertainty, we have seen customers delay and defer purchasing decisions, which has adversely impacted our near-term demand.
Current wording
Our operating results may vary due to the impact of industry or global economic conditions on us or our customers. General macroeconomic conditions, such as political conflicts, recession, inflation or rising interest rates, an economic downturn in the U.S. or internationally, adverse business conditions and liquidity concerns, have and could continue to adversely affect demand for our products and make it difficult to accurately forecast and plan our future business activities. As a result of economic uncertainty, and protracted vendor selection processes associated with our customers’ analysis of our, and others’ AI offerings, we may see customers delay and defer purchasing decisions, which could adversely impact our near-term demand.
Previous wording
Dollar-based net revenue retention rate. We believe that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain and grow our relationships with existing customers over time. We calculate dollar-based net revenue retention rate as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which we generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. We define implied monthly subscription and support revenue as the total amount of minimum subscription and support revenue contractually committed to, under each of our customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. At March 31, 2026, our dollar-based net revenue retention rate remained consistent from the year ended December 31, 2025, reflecting continued customer engagement and retention, despite the impact of unfavorable foreign exchange rates. Our ability to maximize the lifetime value of our customer relationships will depend, in part, on the willingness of the customer to purchase additional products from us. We rely on our customer success and sales teams to support and grow our existing customers by maintaining high customer satisfaction and educating the customer on the value our products provide.
Current wording
Dollar-based net revenue retention rate. We believe that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain and grow our relationships with existing customers over time. We calculate dollar-based net revenue retention rate as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which we generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. We define implied monthly subscription and support revenue as the total amount of minimum subscription and support revenue contractually committed to, under each of our customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. At June 30, 2026, our dollar-based net revenue retention rate declined from the quarter ended March 31, 2026, primarily due to the impact of unfavorable foreign exchange rates. Our ability to maximize the lifetime value of our customer relationships will depend, in part, on the willingness of the customer to purchase additional products from us. We rely on our customer success and sales teams to support and grow our existing customers by maintaining high customer satisfaction and educating the customer on the value our products provide.
Previous wording
Platform pricing ARR as a percentage of eligible ARR. Platform pricing ARR as a percentage of eligible ARR is calculated as platform annual recurring revenue divided by our eligible annual recurring revenue. We define eligible ARR as total annual recurring revenue, excluding revenue from SAP SolEx and the public sector.
Current wording
Platform pricing ARR as a percentage of eligible ARR. Platform pricing ARR as a percentage of eligible ARR is calculated as platform annual recurring revenue divided by our eligible annual recurring revenue. We define eligible ARR as total annual recurring revenue, excluding revenue from SAP SolEx and the public sector. Management believes that this metric is useful for tracking the progress of the new pricing strategy launched in 2025.
Previous wording
Number of customers. We believe that our ability to expand our customer base is an indicator of our market penetration and the growth of our business. We define a customer as a company that contributes to our subscription and support revenue as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. However, where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. For the quarters ended March 31, 2026 and 2025, no single customer accounted for more than 10% of our total revenues.
Current wording
Number of customers. We believe that our ability to expand our customer base is an indicator of our market penetration and the growth of our business. We define a customer as a company that contributes to our subscription and support revenue as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. However, where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. For the quarters and six months ended June 30, 2026 and 2025, no single customer accounted for more than 10% of our total revenues.
Previous wording
Comparison of Quarters Ended March 31, 2026 and 2025
Current wording
Comparison of Quarters and Six Months Ended June 30, 2026 and 2025
Previous wording
The increase in revenues for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was primarily driven by revenue from product expansion from existing customers and bookings from new customers. The total number of customers at March 31, 2026 declined marginally compared to March 31, 2025, primarily due to our strategic prioritization of enterprise and mega‑enterprise customers. Importantly, this shift reflects our focus on higher‑quality revenue and long‑term growth.
Current wording
The increase in revenues for the quarter and six months ended June 30, 2026, compared to the quarter and six months ended June 30, 2025, was primarily driven by revenue from product expansion from existing customers and bookings from new customers. The total number of customers at June 30, 2026 declined marginally compared to June 30, 2025, primarily due to our strategic prioritization of enterprise and mega‑enterprise customers. Importantly, this shift reflects our focus on higher‑quality revenue and long‑term growth.
Previous wording
•$0.7 million increase in amortization of developed technology due to net additions to software placed into service; partially offset by
Current wording
•$0.6 million increase in amortization of developed technology due to net additions to software placed into service; partially offset by
Previous wording
•$1.1 million decrease in employee compensation and benefits; and
Current wording
•$1.1 million decrease in professional fees.
Previous wording
•$3.3 million increase in prepaid expenses and other current assets primarily due to timing of payments for license renewals; and
Current wording
•$3.3 million increase in employee compensation and benefits; and
Previous wording
•$1.0 million increase in capitalized software costs primarily due to the continued development of new solution offerings. Collectively, these increases resulted in a decrease in net expenses; and
Current wording
•$0.5 million increase in capitalized software costs primarily due to the continued development of new solution offerings. Collectively, these increases resulted in a decrease in net expenses; and
Previous wording
•$0.9 million increase in computer software expenses due to new investments in automation and higher spend on cloud hosting services; partially offset by
Current wording
•$1.8 million increase in computer software expenses due to higher spend on cloud hosting services and continued strategic investments in automation; and
Previous wording
•$1.9 million increase primarily due to an unfavorable change in foreign currency, net of the impact of foreign currency forward contracts;
Current wording
•$4.3 million increase primarily due to an unfavorable change in foreign currency, net of the impact of foreign currency forward contracts;
Previous wording
•$0.3 million increase in advisory and legal-related expenses.
Current wording
•$0.6 million increase in advisory and legal-related expenses;
Previous wording
•$0.4 million increase in professional fees; and
Current wording
•$0.5 million increase in professional fees; and
Previous wording
The decrease in restructuring costs during the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was primarily due to lower additional one-time termination benefits under the Fiscal 2025 restructuring programs. Refer to “Note 10 - Restructuring Costs” in our unaudited condensed consolidated financial statements for additional information.
Current wording
Restructuring costs were relatively flat during the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. The decrease in restructuring costs during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to lower additional one-time termination benefits under the Fiscal 2025 restructuring programs.
Previous wording
The decrease in interest income during the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was primarily due to decreased average balances on our investments and cash balances, and to a lesser extent, a decrease in average interest rates on our investments and cash balances.
Current wording
The decrease in interest income during the quarter and six months ended June 30, 2026, compared to the quarter and six months ended June 30, 2025, was primarily due to decreased average balances on our investments and cash balances, and to a lesser extent, a decrease in average interest rates on our investments and cash balances.
Previous wording
Interest expense for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, decreased slightly due to the repayment of our 2026 Notes in March 2026. Refer to “Note 9 - Convertible Senior Notes” in our unaudited condensed consolidated financial statements for additional information.
Current wording
Interest expense for the quarter and six months ended June 30, 2026, compared to the quarter and six months ended June 30, 2025, decreased slightly due to the repayment of our 2026 Notes in March 2026. Refer to “Note 8 - Convertible Senior Notes” in our unaudited condensed consolidated financial statements for additional information.
Previous wording
We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter ended March 31, 2026, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in our valuation allowance for income taxes.
Current wording
We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter ended June 30, 2026, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, changes in our valuation allowance for income taxes, and a one-time tax benefit associated with the base erosion and anti-abuse tax.
Previous wording
For the quarters ended March 31, 2026 and 2025, we recorded $5.9 million and $4.7 million in income tax expense, respectively. The increase in income tax expense for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, resulted primarily from non-deductible officer compensation and stock-based compensation shortfalls, along with changes in the mix of profitable foreign jurisdictions.
Current wording
For the quarters ended June 30, 2026 and 2025, we recorded $3.5 million and $6.2 million in income tax expense, respectively. For the six months ended June 30, 2026 and 2025, we recorded $9.4 million and $10.8 million in income tax expense, respectively. The decrease in income tax expense for the quarter and six months ended June 30, 2026, compared to the quarter and six months ended June 30, 2025, resulted primarily from a one-time tax benefit associated with the base erosion and anti-abuse tax recognized in the current quarter, along with changes in the mix of profitable jurisdictions.
Previous wording
At March 31, 2026, our principal sources of liquidity were an aggregate of $525.1 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, U.S. treasury securities, commercial paper, and corporate bonds.
Current wording
At June 30, 2026, our principal sources of liquidity were an aggregate of $527.8 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, U.S. treasury securities, commercial paper, and corporate bonds.
Previous wording
At March 31, 2026, we had $675.0 million aggregate principal amount of 2029 Notes outstanding, following the repayment of the total outstanding $230.2 million aggregate principal amount of our 2026 Notes on March 15, 2026. We plan to, and believe we are able to, make all expected interest payments on the 2029 Notes in the next 12 months.
Current wording
At June 30, 2026, we had $675.0 million aggregate principal amount of 2029 Notes outstanding. We plan to, and believe we are able to, make all expected interest payments on the 2029 Notes in the next 12 months.
Previous wording
In connection with the offering of the 2029 Notes, we entered into privately-negotiated capped call transactions (the “2029 Capped Calls” and together with the 2026 Capped Calls (as defined below), the “Capped Calls”) with certain counterparties covering, subject to anti-dilution adjustments, approximately 9.9 million shares of our common stock, and are generally expected to offset the potential economic dilution of our common stock upon any conversions of the 2029 Notes up to the initial cap price. The 2029 Capped Calls have an initial strike price of $68.47 per share subject to certain adjustments, which corresponds to the initial conversion price of the 2029 Notes and an initial cap price of $92.17 per share, subject to certain adjustments. At March 31, 2026, all of the 2029 Capped Calls remained outstanding.
Current wording
In connection with the offering of the 2029 Notes, we entered into privately-negotiated capped call transactions (the “2029 Capped Calls”) with certain counterparties covering, subject to anti-dilution adjustments, approximately 9.9 million shares of our common stock, and are generally expected to offset the potential economic dilution of our common stock upon any conversions of the 2029 Notes up to the initial cap price. The 2029 Capped Calls have an initial strike price of $68.47 per share subject to certain adjustments, which corresponds to the initial conversion price of the 2029 Notes and an initial cap price of $92.17 per share, subject to certain adjustments. At June 30, 2026, all of the 2029 Capped Calls remained outstanding.
Previous wording
At March 31, 2026, we have obligations totaling $20.6 million related to existing property and equipment leases. As of March 31, 2026, we committed $28.2 million for leases signed but not yet commenced. These leases, which are expected to commence within the next twelve months, have lease terms ranging from 10.0 years to 15.5 years.
Current wording
At June 30, 2026, we have obligations totaling $23.4 million related to existing property and equipment leases. As of June 30, 2026, we committed $25.0 million for a lease signed but not yet commenced. This lease, which is expected to commence within the next twelve months, has a lease term of 15.5 years.
Previous wording
Purchase obligations represent our most significant contractual obligations in the ordinary course of business for which we have not received the related goods or services, in whole or in part. At March 31, 2026, we had $156 million of contractual obligations, with approximately $53 million payable within 12 months, and have additional contractual obligations with other vendors that are individually immaterial and which we can readily settle given our liquidity position and capital resources.
Current wording
Purchase obligations represent our most significant contractual obligations in the ordinary course of business for which we have not received the related goods or services, in whole or in part. At June 30, 2026, we had $147 million of contractual obligations, with approximately $52 million payable within 12 months, and have additional contractual obligations with other vendors that are individually immaterial and which we can readily settle given our liquidity position and capital resources.
Previous wording
At March 31, 2026, while we have liabilities for unrecognized tax benefits of $22.3 million, due to their nature, there is a high degree of uncertainty regarding the timing of future cash outflows and other events that extinguish these liabilities.
Current wording
At June 30, 2026, while we have liabilities for unrecognized tax benefits of $22.7 million, due to their nature, there is a high degree of uncertainty regarding the timing of future cash outflows and other events that extinguish these liabilities.
Previous wording
Under our stock repurchase program, which authorizes the periodic repurchase of our common stock, the Board of Directors (the “Board”) approved an increase to the stock repurchase program of an additional $100 million of common stock on March 13, 2026. This increased the total authorization for repurchases under our stock repurchase program from $400 million to $500 million. Repurchases may be made from time to time through open market repurchases or through privately-negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The repurchase program does not obligate us to acquire any particular amount of our common stock, and it may be suspended at any time in our discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.
Current wording
Repurchases may be made from time to time through open market repurchases or through privately-negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The repurchase program does not obligate us to acquire any particular amount of our common stock, and it may be suspended at any time in our discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.
Previous wording
We repurchased and retired approximately 1.2 million shares of common stock for $47.1 million during the quarter ended March 31, 2026. At March 31, 2026, $217.4 million remained available for repurchases under this program.
Current wording
We repurchased and retired approximately 1.2 million shares of common stock for $37.7 million during the quarter ended June 30, 2026, and 2.4 million shares for $84.8 million during the six months ended June 30, 2026. At June 30, 2026, $179.7 million remained available for repurchases under this program.
Previous wording
For the quarter ended March 31, 2025, cash provided by operating activities was $46.7 million, resulting from net non-cash expenses of approximately $28.9 million, net cash flows provided as a result of changes in operating assets and liabilities of $12.6 million, and net income of $5.3 million. The $12.6 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected primarily the following:
Current wording
For the six months ended June 30, 2026, cash provided by operating activities was $91.3 million, resulting from net non-cash expenses of approximately $78.6 million and net income of $13.2 million, partially offset by net cash flows used as a result of changes in operating assets and liabilities of $0.5 million. The $0.5 million of net cash flows used as a result of changes in our operating assets and liabilities reflected primarily the following:
Previous wording
•$17.5 million decrease in accrued expenses and other current liabilities primarily due to annual bonus payments and payments related to our Fiscal 2025 restructuring programs, partially offset by timing of payments for salaries and employee benefits;
Current wording
•$16.8 million decrease in accrued expenses and other current liabilities primarily due to payments for annual bonuses, commissions, our Fiscal 2025 restructuring programs, and taxes, partially offset by the timing of invoices for professional and third-party services;
Previous wording
•$7.7 million decrease in accounts payable due to timing of payments;
Current wording
•$7.0 million decrease in accounts payable due to timing of payments;
Previous wording
•$9.5 million decrease in deferred revenue primarily due to seasonality in the sales cycle, which led to lower billings and higher revenue recognition;
Current wording
•$4.3 million decrease in deferred revenue primarily due to seasonality in the sales cycle, which led to lower billings and higher revenue recognition; and
Previous wording
•$1.6 million decrease in operating lease liabilities.
Current wording
•$3.6 million decrease in operating lease liabilities.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
The total number of customers at June 30, 2026 declined marginally compared to June 30, 2025, primarily due to our strategic prioritization of enterprise and mega‑enterprise customers. Importantly, this shift reflects our focus on higher‑quality revenue and long‑term growth.
Current report — wording carried from elsewhere
•$1.3 million increase in amortization of developed technology due to net additions to software placed into service; and
Current report — wording carried from elsewhere
•$0.7 million increase in travel-related expenses; partially offset by
Current report — wording carried from elsewhere
•$1.0 million decrease in professional fees; and
Current report — wording carried from elsewhere
•$0.4 million increase in travel-related expenses; partially offset by
Current report — wording carried from elsewhere
•$1.5 million increase in capitalized software costs primarily due to the continued development of new solution offerings. Collectively, these increases resulted in a decrease in net expenses; and
Current report — wording carried from elsewhere
•$2.4 million increase primarily due to an unfavorable change in foreign currency, net of the impact of foreign currency forward contracts; partially offset by
Current report — wording carried from elsewhere
•$0.5 million decrease in employee compensation and benefits.
Current report — wording carried from elsewhere
•$0.4 million increase in travel-related expenses.
Current report — wording carried from elsewhere
Refer to “Note 9 - Restructuring Costs” in our unaudited condensed consolidated financial statements for additional information.
Current report — wording carried from elsewhere
Under our stock repurchase program, which authorizes the periodic purchase of our common stock, the Board of Directors (the "Board") approved two increases to the stock repurchase program: an additional $100 million of common stock on March 13, 2026, and an additional $100 million of common stock on July 31, 2026. These authorizations increased the total authorized amount under the program from $400 million to $500 million, and subsequently to $600 million.
Current report — wording carried from elsewhere
•$3.2 million decrease in operating lease liabilities; and
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Management believes that this metric is useful for tracking the progress of the new pricing strategy launched in 2025.
Previous report — wording carried elsewhere
•$8.0 million decrease in deferred revenue primarily due to seasonality in the sales cycle, which led to lower billings and higher revenue recognition;