# UiPath, Inc. (PATH) Informational only - not investment advice. CIK: 0001734722 SIC: 7372 Services-Prepackaged Software SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/) Latest 10-K filed: 2026-03-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=1734722 Filing source: https://www.sec.gov/Archives/edgar/data/1734722/000173472226000012/path-20260131.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1610572000 | USD | 2026 | 2026-03-25 | | Net income | 282330000 | USD | 2026 | 2026-03-25 | | Assets | 3179200000 | USD | 2026 | 2026-03-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001734722.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 336,156,000 | 607,643,000 | 892,252,000 | 1,058,581,000 | 1,308,072,000 | 1,429,664,000 | 1,610,572,000 | | Net income | | -519,933,000 | -92,393,000 | -525,586,000 | -328,352,000 | -89,883,000 | -73,694,000 | 282,330,000 | | Operating income | | -517,283,000 | -110,323,000 | -500,946,000 | -348,283,000 | -164,720,000 | -162,569,000 | 56,760,000 | | Gross profit | | 276,751,000 | 541,786,000 | 723,384,000 | 878,530,000 | 1,112,148,000 | 1,182,722,000 | 1,339,588,000 | | Diluted EPS | | -3.41 | -0.55 | -1.16 | -0.60 | -0.16 | -0.13 | 0.52 | | Assets | | | 866,461,000 | 2,572,450,000 | 2,735,206,000 | 2,954,758,000 | 2,865,270,000 | 3,179,200,000 | | Liabilities | | | 448,197,000 | 650,533,000 | 815,048,000 | 938,644,000 | 1,019,508,000 | 1,096,613,000 | | Stockholders' equity | -297,943,000 | -799,511,000 | -803,704,000 | 1,921,917,000 | 1,920,158,000 | 2,016,114,000 | 1,845,762,000 | 2,082,587,000 | | Cash and cash equivalents | | | 357,690,000 | 1,768,723,000 | 1,402,119,000 | 1,061,678,000 | 879,196,000 | 871,157,000 | | Net margin | | | -15.21% | -58.91% | -31.02% | -6.87% | -5.15% | 17.53% | | Operating margin | | | -18.16% | -56.14% | -32.90% | -12.59% | -11.37% | 3.52% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001734722.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q2 | 2022-07-31 | | | -0.22 | reported discrete quarter | | 2023-Q3 | 2022-10-31 | | | -0.10 | reported discrete quarter | | 2024-Q1 | 2023-04-30 | | | -0.06 | reported discrete quarter | | 2024-Q2 | 2023-04-30 | | -31,901,000 | | reported discrete quarter | | 2024-Q3 | 2023-07-31 | | -60,361,000 | | reported discrete quarter | | 2024-Q2 | 2023-07-31 | 287,310,000 | | -0.11 | reported discrete quarter | | 2024-Q3 | 2023-10-31 | 325,921,000 | | -0.06 | reported discrete quarter | | 2024-Q4 | 2024-01-31 | 405,253,000 | 33,916,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-04-30 | 335,112,000 | -28,736,000 | -0.05 | reported discrete quarter | | 2025-Q2 | 2024-04-30 | | -28,736,000 | | reported discrete quarter | | 2025-Q2 | 2024-07-31 | 316,253,000 | | -0.15 | reported discrete quarter | | 2025-Q3 | 2024-07-31 | | -86,097,000 | | reported discrete quarter | | 2025-Q3 | 2024-10-31 | 354,653,000 | | -0.02 | reported discrete quarter | | 2025-Q4 | 2025-01-31 | 423,646,000 | 51,794,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q2 | 2025-04-30 | | -22,555,000 | | reported discrete quarter | | 2026-Q1 | 2025-04-30 | 356,624,000 | -22,555,000 | -0.04 | reported discrete quarter | | 2026-Q3 | 2025-07-31 | | 1,584,000 | | reported discrete quarter | | 2026-Q2 | 2025-07-31 | 361,728,000 | | 0.00 | reported discrete quarter | | 2026-Q3 | 2025-10-31 | 411,113,000 | | 0.37 | reported discrete quarter | | 2026-Q4 | 2026-01-31 | 481,107,000 | 104,462,000 | | derived Q4 = FY annual - nine-month YTD | | 2027-Q1 | 2026-04-30 | 418,382,000 | 22,525,000 | 0.04 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1734722/000173472226000041/path-20260430.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-06-04 Report date: 2026-04-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 25, 2026 (the "2026 Form 10-K"). This discussion, particularly information with respect to our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. You should review the disclosure under Part I, Item 1A, "Risk Factors," in the 2026 Form 10-K for discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements. Overview Building upon decades of leadership in automation, UiPath is pioneering the evolution from rule-based automation to intelligent, agentic automation. The UiPath Platform™ uniquely combines controlled agency, developer flexibility, and seamless integration to help organizations scale agentic automation safely and confidently. Committed to security, governance, and interoperability, we support enterprises as they transition into a future where automation delivers on the full potential of AI to transform industries. Historically, we have grown our revenue and ARR significantly by helping customers adopt automation as a tool, process by process, to unlock human potential. Today, our automation platform builds upon this experience by providing our customers with a foundation for enterprise-scale agentic automation. Business Highlights for the Three Months Ended April 30, 2026: •Revenue of $418.4 million increased 17% year-over-year. •ARR at April 30, 2026 of $1,901.2 million increased 12% year-over-year. •Gross margin was 82% for the three months ended April 30, 2026 and 2025. •Cash flow from operations was $131.9 million for the three months ended April 30, 2026, compared to $119.0 million for the three months ended April 30, 2025. •Cash and cash equivalents, restricted cash, and marketable securities were $1,417.2 million as of April 30, 2026, compared to $1,689.9 million as of January 31, 2026. Macroeconomic Environment As a corporation with a global presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, the impact of changes in geopolitical relationships, fluctuating inflation and interest rates, monetary and trade policy changes, government efficiency initiatives, and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of our customers, prospective customers, and partners. Internationally, we price our platform in currencies that may not be the functional currency. Accordingly, the heightened volatility of global markets has exposed us and will continue to expose us to foreign currency fluctuations, which may impact demand for our platform, our near-term results, comparability of results to prior periods, and our ability to predict future results. Further, cash, cash equivalents, and marketable securities represent a significant portion of our total assets, and the return on our cash, cash equivalents, and marketable securities is sensitive to changes in interest rates. Volatility in the interest rate environment may impact the amount of interest and other income reported on our condensed consolidated statements of operations, the comparability of these amounts to prior periods, and our ability to predict future profitability. We continuously monitor the direct and indirect impacts of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape. 25 Table of Contents Fiscal Year 2025 Workforce Restructuring On July 8, 2024, our board of directors approved restructuring actions (the "Fiscal Year 2025 Workforce Restructuring") to reshape the organization by streamlining our structure, particularly in operational and corporate functions, to better prioritize our go-to-market investments and focus our research and development investments on AI and driving innovation across our platform. The Fiscal Year 2025 Workforce Restructuring was completed during the second quarter of fiscal year 2026. Key Performance Metric We monitor annualized renewal run-rate ("ARR") to help us measure and evaluate the effectiveness of our operations. ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support. ARR also does not reflect nonrecurring rebates payable to partners (upon establishing sufficient history of their nonrecurring nature), the impact of nonrecurring incentives (such as one-time discounts provided under sales promotional programs), and any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves (for example those for credit losses or disputed amounts). At April 30, 2026 and 2025, our ARR was $1,901.2 million and $1,692.7 million, respectively, representing a growth rate of 12%. Approximately 30% of this growth rate was due to new customers and 70% of this growth rate was due to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 109% and 108% as of April 30, 2026 and 2025, respectively. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. Our ARR may fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers’ spending levels, acquisitions, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our U.S. GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement as of the end of an invoiced period and divides that amount by the corresponding term and multiplies by 365 days to derive the annualized renewal value. In contrast, for our revenue calculated in accordance with U.S. GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and software-as-a-service ("SaaS") revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, revenue is impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a multi-year contract invoiced upfront, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics. 26 Table of Contents A summary of ARR-related data at April 30, 2026 and 2025 is as follows: At April 30, 2026 2025 (dollars in thousands) ARR $ 1,901,211  $ 1,692,683  Incremental ARR (1) 208,528  184,953  Customers with ARR ≥ $1 million: Number of customers 374  316  Percent of current period revenue 52  % 47  % Customers with ARR ≥ $100 thousand: Number of customers 2,624  2,365  Percent of current period revenue 87  % 87  % Dollar-based net retention rate 109  % 108  % (1) For the twelve months ended April 30, 2026 and 2025, respectively Components of Results of Operations Revenue We derive revenue from the sale of: (1) software licenses for use of our proprietary software and related maintenance and support; (2) the right to access certain software products we host (i.e., SaaS); and (3) professional services. We have a unified commercial offering for software products with both on-premises and cloud deployment options that allows customers the choice of either deployment option throughout the term of the contract. These offerings are comprised of three types of performance obligations: term license, maintenance and support, and SaaS. Licenses Our term licenses (typically sold as a part of flexible deployment offerings) provide customers the right to use software for a specified period of time. Revenue for licenses is recognized at the point in time at which the customer is able to use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. As licenses revenue is recognized at a point in time, any shift in license start dates or duration will have a direct impact on our licenses revenue. Subscription Services We generate subscription services revenue through the provision of: (1) maintenance and support services, which include technical support and unspecified updates and upgrades on a when-and-if-available basis for our licenses, and (2) SaaS products (typically sold as a portion of flexible deployment offerings). Maintenance and support and SaaS products represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements. Professional Servi [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes for the fiscal year ended January 31, 2026 included elsewhere in this Annual Report on Form 10-K. This discussion, particularly with respect to our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Annual Report on Form 10-K. Readers should review the disclosure under the heading “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K for a discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements. Our fiscal quarters end on April 30, July 31, and October 31, and our fiscal year ends January 31. References to fiscal years 2026, 2025, and 2024 in this Annual Report on Form 10-K refer to our fiscal years ended January 31, 2026, 2025, and 2024, respectively. A discussion regarding our financial condition and our results of operations for fiscal year 2026 compared to fiscal year 2025 is presented below. For a discussion regarding our results of operations for fiscal year 2025 compared to fiscal year 2024 see the 2025 Form 10-K, under the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is incorporated herein by reference. 59 Table of Contents Overview Building upon decades of leadership in automation, UiPath is pioneering the evolution from rule-based automation to intelligent, agentic automation. The UiPath Platform™ uniquely combines controlled agency, developer flexibility, and seamless integration to help organizations scale agentic automation safely and confidently. Committed to security, governance, and interoperability, we support enterprises as they transition into a future where automation delivers on the full potential of AI to transform industries. Historically, we have grown our revenue and ARR significantly by helping customers adopt automation as a tool, process by process, to unlock human potential. Today, our automation platform builds upon this experience by providing our customers with a foundation for enterprise-scale agentic automation. Our results of operations and financial condition are impacted by the macroeconomic factors affecting our industry, including the proliferation of cloud-based applications, the cost of skilled human capital, and the global demand for agentic automation solutions. While our business is influenced by these macroeconomic factors, our results of operations are more directly affected by certain company-specific factors, including: •our ability to attract new customers, which depends on a number of other factors, including our ability to drive awareness of the benefits and power of agentic automation among our existing and prospective customers, the effectiveness and pricing of our products, the offerings of our competitors, and competition among resellers; •our ability to increase sales to existing customers, which depends on factors such as our customers’ satisfaction with our platform, competition, and pricing, and overall changes in our customers’ propensity to invest in automation; •our ability to grow our partner base and execute on all aspects of partner relationships, which depends on the competitiveness of our platform and the profitability of our relationship for our partners and potential partners; •our ability to sustain innovation and automation leadership in order to maintain our competitive advantage, which depends on our capacity to invest in research and development to expand the capabilities of our platform, our ability to collaborate with other leading technology companies to develop integrations, and our ability to execute strategic acquisitions and investments in businesses and technologies to drive our product and market expansion; and •our ability to continue to grow our business over the long term, which depends on our ability to invest in scaling across all organizational functions and domestic and international operations. For further discussion of our business, our platform, and our growth strategies, refer to Part I, Item 1. Business of this Annual Report on Form 10-K. Fiscal Year 2026 Highlights •Revenue of $1,610.6 million increased 13% year-over-year. •ARR of $1,852.6 million increased 11% year-over-year. •Gross margin was 83% for fiscal year 2026 and fiscal year 2025. •Cash and cash equivalents, restricted cash, and marketable securities were $1,689.9 million as of January 31, 2026, compared to $1,724.1 million as of January 31, 2025. Macroeconomic Environment As a corporation with a global presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, the impact of changes in geopolitical relationships, fluctuating inflation and interest rates, monetary and trade policy changes, government efficiency initiatives, and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of our customers, prospective customers, and partners. Internationally, we price our platform in currencies that may not be the functional currency. Accordingly, the heightened volatility of global markets has exposed us and will continue to expose us to foreign currency 60 Table of Contents fluctuations, which may impact demand for our platform, our near-term results, comparability of results to prior periods, and our ability to predict future results. Further, cash, cash equivalents, and marketable securities represent a significant portion of our total assets, and the return on our cash, cash equivalents, and marketable securities is sensitive to changes in interest rates. Volatility in the interest rate environment may impact the amount of interest and other income reported on our consolidated statements of operations, the comparability of these amounts to prior periods, and our ability to predict future profitability. We continuously monitor the direct and indirect impacts of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape. Seasonality Historically, we have experienced seasonality in new and renewal customer bookings, as typically we enter into a higher percentage of license agreements with new customers and renewals with existing customers in the second half of our fiscal year. We believe that this seasonality results from the procurement, budgeting, and deployment cycles of many of our customers, particularly our enterprise customers. Seasonal fluctuations in our sales mean that our revenue may not be consistent from period to period. Workforce Restructurings On June 24, 2022, our board of directors approved the Fiscal Year 2023 Workforce Restructuring to manage our operating expenses by reducing our global workforce by approximately 5%. The workforce reduction aimed to simplify our go-to-market approach and improve sales productivity. In connection with these workforce reductions, we also ceased use of our office in Brooklyn, NY. On November 10, 2022, our board of directors approved further restructuring actions to reduce our global workforce across functions by an additional 6%. The Fiscal Year 2023 Workforce Restructuring was completed during the second quarter of fiscal year 2024. On July 8, 2024, our board of directors approved the Fiscal Year 2025 Workforce Restructuring to reshape the organization by streamlining our structure, particularly in operational and corporate functions, to better prioritize our go-to-market investments and focus our research and development investments on AI and driving innovation across our platform. The Fiscal Year 2025 Workforce Restructuring was completed during the second quarter of fiscal year 2026. Refer to Note 10, Commitments and Contingencies—Workforce Restructurings included in Part II, Item 8 of this Annual Report on Form 10-K for more information. Components of Results of Operations Revenue We derive revenue from the sale of: (1) software licenses for use of our proprietary software and related maintenance and support; (2) the right to access certain software products we host (i.e., SaaS); and (3) professional services. We have a unified commercial offering for software products with both on-premises and cloud deployment options that allows customers the choice of either deployment option throughout the term of the contract. These offerings are comprised of three types of performance obligations: term license, maintenance and support, and SaaS. Licenses Our term licenses (typically sold as a part of flexible deployment offerings) provide customers the right to use software for a specified period of time. Revenue for licenses is recognized at the point in time at which the customer is able to use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. As licenses revenue is recognized at a point in time, any shift in license start dates or duration will have a direct impact on our licenses revenue. 61 Table of Contents Subscription Services We generate subscription services revenue through the provision of: (1) maintenance and support services, which include technical support and unspecified updates and upgrades on a when-and-if-available basis for our licenses, and (2) SaaS products (typically sold as a portion of flexible deployment offerings). Maintenance and support and SaaS products represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements. Professional Services and Other Professional services and other revenue consists of fees associated with professional services, including deployment of agentic automation, customer education, and training services. Our professional services contracts are structured on a time and materials or fixed price basis, and the related revenue is recognized as the services are rendered. Cost of Revenue Licenses Cost of licenses revenue consists of all direct costs to deliver our licenses to customers, amortization of software development costs related to our licenses, and amortization of acquired developed technology. Subscription Services Cost of subscription services revenue primarily consists of personnel-related expenses of our customer support and technical support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of subscription services revenue also includes third-party consulting services, hosting costs related to our SaaS products, amortization of acquired developed technology and capitalized software development costs related to SaaS products, depreciation, and allocated overhead. Overhead is allocated based on applicable headcount. We recognize these expenses as they are incurred. We expect cost of subscription services revenue to increase in absolute dollars in the longer term, particularly with regard to hosting and cloud infrastructure costs as our SaaS business grows. In the future, we expect further expansion of our cloud-based deployments, and as more of our customer base deploys our products via SaaS, we expect our gross margin to be impacted by these costs. Professional Services and Other Cost of professional services and other revenue primarily consists of personnel-related expenses of our professional services team, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of professional services and other revenue also includes expenses related to subcontracted third-party services, depreciation, and allocated overhead. We recognize these expenses as they are incurred. We expect cost of professional services and other revenue to increase in absolute dollars for the foreseeable future. Operating Expenses Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries and bonuses, stock-based compensation expense, and employee benefit costs. Operating expenses also include allocated overhead. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing teams and related sales support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Sales and marketing expenses also include sales and partner commissions, marketing event costs, advertising costs, travel, trade shows, other marketing materials, amortization of acquired customer relationships, and allocated overhead. We expect that over the longer term our sales and marketing expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses. 62 Table of Contents Research and Development Research and development expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefit costs, for our research and development employees, hosting and software services costs, and allocated overhead. Research and development costs are expensed as incurred, with the exception of certain software development costs which are eligible for capitalization. We expect that our research and development expenses will increase in absolute dollars for the foreseeable future as we continue to invest in efforts to develop new technology and enhance the functionality and capabilities of our existing products and platform infrastructure. Our research and development expenses may fluctuate as a percentage of revenue from period to period due to the timing and extent of expenses. General and Administrative General and administrative expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefit costs, associated with our finance, legal, human resources, compliance, and other administrative teams, as well as accounting and legal professional services fees, other corporate-related expenses, and allocated overhead. We expect that over the longer term our general and administrative expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses. Interest Income Interest income consists of interest earned on our cash and cash equivalents and marketable securities. Other (Expense) Income, Net Other (expense) income, net primarily consists of foreign exchange gains and losses. Other (expense) income, net also includes accretion of discounts and premiums on marketable securities. (Benefit from) Provision for Income Taxes (Benefit from) provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. Our effective tax rate is impacted by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances. We currently maintain a full valuation allowance on certain U.S. state DTAs and a full valuation allowance on our Romania DTA, as we have concluded as of January 31, 2026 that it is more likely than not that these DTAs will not be fully realized. However, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to conclude that a valuation allowance is no longer needed for our U.S. state DTAs within the next 12 months, and for our Romania DTA, or a portion thereof, within the next 24 months, which would result in income tax benefit in the period of the respective release. 63 Table of Contents Results of Operations The following table sets forth selected consolidated statement of operations data for each of the periods indicated (in thousands): Year Ended January 31, 2026 2025 Revenue: Licenses $ 606,394  $ 587,162  Subscription services 954,472  801,947  Professional services and other 49,706  40,555  Total revenue 1,610,572  1,429,664  Cost of revenue: Licenses(1) 5,334  8,565  Subscription services(1)(2)(3)(4) 157,588  167,630  Professional services and other (2)(3)(4) 108,062  70,747  Total cost of revenue 270,984  246,942  Gross profit 1,339,588  1,182,722  Operating expenses: Sales and marketing(1)(2)(3)(4) 683,329  738,493  Research and development(2)(3)(4) 385,208  380,682  General and administrative(1)(2)(3)(4) 214,291  226,116  Total operating expenses 1,282,828  1,345,291  Operating income (loss) 56,760  (162,569) Interest income 48,023  49,422  Other (expense) income, net (4,155) 35,047  Income (loss) before income taxes 100,628  (78,100) Benefit from income taxes (181,702) (4,406) Net income (loss) $ 282,330  $ (73,694) (1) Includes amortization of acquired intangible assets as follows (in thousands): Year Ended January 31, 2026 2025 Cost of licenses revenue $ 991  $ 2,747  Cost of subscription services revenue 3,449  2,382  Sales and marketing 3,630  1,428  General and administrative 121  154  Total amortization of acquired intangible assets $ 8,191  $ 6,711  (2) Includes stock-based compensation expense as follows (in thousands): Year Ended January 31, 2026 2025 Cost of subscription services revenue $ 13,676  $ 19,401  Cost of professional services and other revenue 9,484  11,386  Sales and marketing 87,746  134,646  Research and development 132,890  132,757  General and administrative 46,880  59,961  Total stock-based compensation expense $ 290,676  $ 358,151  64 Table of Contents (3) Includes employer payroll tax expense related to employee equity transactions as follows (in thousands): Year Ended January 31, 2026 2025 Cost of subscription services revenue $ 333  $ 448  Cost of professional services and other revenue 145  188  Sales and marketing 2,054  3,069  Research and development 2,358  2,188  General and administrative 852  1,106  Total employer payroll tax expense related to employee equity transactions $ 5,742  $ 6,999  (4) Includes restructuring expense as follows (in thousands): Year Ended January 31, 2026 2025 Cost of subscription services revenue $ 585  $ 2,745  Cost of professional services and other revenue 18  105  Sales and marketing 2,524  15,452  Research and development (52) 3,058  General and administrative 1,332  3,366  Total restructuring expense $ 4,407  $ 24,726  The following table sets forth our consolidated statement of operations data expressed as a percentage of revenue for the periods indicated: Year Ended January 31, 2026 2025 Revenue: Licenses 38  % 41  % Subscription services 59  % 56  % Professional services and other 3  % 3  % Total revenue 100  % 100  % Cost of revenue: Licenses —  % —  % Subscription services 10  % 12  % Professional services and other 7  % 5  % Total cost of revenue 17  % 17  % Gross profit 83  % 83  % Operating expenses: Sales and marketing 42  % 52  % Research and development 24  % 27  % General and administrative 13  % 15  % Total operating expenses 79  % 94  % Operating income (loss) 4  % (11) % Interest income 3  % 3  % Other (expense) income, net —  % 3  % Income (loss) before income taxes 7  % (5) % (Benefit from) provision for income taxes (11) % —  % Net income (loss) 18  % (5) % 65 Table of Contents Comparison of Fiscal Year 2026 and Fiscal Year 2025 Revenue Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Licenses $ 606,394  $ 587,162  $ 19,232  3  % Subscription services 954,472  801,947  152,525  19  % Professional services and other 49,706  40,555  9,151  23  % Total revenue $ 1,610,572  $ 1,429,664  $ 180,908  13  % Total revenue increased by $180.9 million, or 13%, for fiscal year 2026 compared to fiscal year 2025, driven by a $152.5 million increase in subscription services revenue, a $19.2 million increase in licenses revenue, and a $9.2 million increase in professional services and other revenue. As we continued to expand our sales efforts in the U.S. and internationally, our revenue increased across all regions. Of the growth in total revenue, 15% was attributable to new customers and 85% was attributable to existing customers. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven both by sales in prior periods for which we continue to provide maintenance and support and SaaS, and by new sales in the current period. Cost of Revenue and Gross Margin Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Licenses $ 5,334  $ 8,565  $ (3,231) (38) % Subscription services 157,588  167,630  (10,042) (6) % Professional services and other 108,062  70,747  37,315  53  % Total cost of revenue $ 270,984  $ 246,942  $ 24,042  10  % Gross margin 83  % 83  % Total cost of revenue increased by $24.0 million, or 10%, for fiscal year 2026 compared to fiscal year 2025, primarily due to a $37.3 million increase in cost of professional services revenue, partially offset by a $10.0 million decrease in cost of subscription services revenue and a $3.2 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by a $33.5 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers. The decrease in cost of subscription services revenue was primarily driven by a $22.1 million decrease in personnel-related expenses, which included an $11.1 million decrease in salary-related and bonus expenses associated with reduced headcount, a $5.7 million decrease in stock-based compensation expense, a $2.2 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026, and a $1.7 million aggregate decrease in employee insurance costs and employer payroll taxes. This decrease was partially offset by a $10.1 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services. The decrease in cost of licenses revenue was primarily driven by a $2.2 million decrease in depreciation and amortization expense and a $1.0 million decrease in software services costs. Our gross margin remained constant at 83% for fiscal year 2026 compared to 83% for fiscal year 2025, reflecting increased subscription services revenue and margin offset by a decrease in the proportion of higher-margin licenses revenue. 66 Table of Contents Operating Expenses Sales and Marketing Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Sales and marketing $ 683,329  $ 738,493  $ (55,164) (7) % Percentage of revenue 42  % 52  % Sales and marketing expense decreased by $55.2 million, or 7%, for fiscal year 2026 compared to fiscal year 2025. This decrease was primarily attributable to a $76.0 million decrease in personnel-related expenses, which included a $46.9 million decrease in stock-based compensation expense, a $15.8 million decrease in salary-related and bonus expenses, a $12.9 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026, and a $2.1 million aggregate decrease in employee insurance costs and employer payroll taxes, partially offset by a $1.6 million increase in general employee severance. This decrease was partially offset by a $7.9 million increase in third-party consulting fees, a $7.0 million increase in sales commissions expense, a $3.7 million increase in marketing expenses, and a $2.7 million increase in depreciation and amortization expense. Research and Development Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Research and development $ 385,208  $ 380,682  $ 4,526  1  % Percentage of revenue 24  % 27  % Research and development expense increased by $4.5 million, or 1%, for fiscal year 2026 compared to fiscal year 2025. The increase was primarily attributable to a $15.6 million increase in personnel-related costs, which included a $16.3 million increase in salary-related and bonus expenses and a $2.2 million aggregate increase in employee insurance costs and employer payroll taxes associated with higher headcount and merit increases, partially offset by a $3.1 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026. This decrease was partially offset by a $10.8 million decrease in hosting and software services costs. General and Administrative Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) General and administrative $ 214,291  $ 226,116  $ (11,825) (5) % Percentage of revenue 13  % 15  % General and administrative expense decreased by $11.8 million, or 5%, for fiscal year 2026 compared to fiscal year 2025. This decrease was primarily attributable to a $14.8 million decrease in personnel-related expenses, which included a $13.1 million decrease in stock-based compensation expense and a $2.0 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026. General and administrative expense was also impacted by a $5.0 million decrease in software service and implementation costs, a $2.4 million decrease in charitable donation expense due to the reduced value of our Class A common shares contributed to a donor-advised fund in the current year, and a $1.2 million aggregate decrease in depreciation and amortization and rent expense. These decreases were partially offset by a $9.0 million increase in third-party advisory and services fees, including a $5.5 million increase in legal advisory fees related to acquisitions, intellectual property, and other matters, and a $3.8 million increase in credit loss expense associated with specific reserves. 67 Table of Contents Interest Income Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Interest income $ 48,023  $ 49,422  $ (1,399) (3) % Percentage of revenue 3  % 3  % Interest income decreased by $1.4 million, or 3%, for fiscal year 2026 compared to fiscal year 2025 as a result of a period-over-period decrease in our aggregate balance of cash and cash equivalents and marketable securities, as well as decreased interest rates. Other (Expense) Income, Net Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Other (expense) income, net $ (4,155) $ 35,047  $ (39,202) (112) % Percentage of revenue —  % 3  % Other expense, net increased by $39.2 million, or 112%, for fiscal year 2026 compared to fiscal year 2025, primarily due to a $21.5 million decrease in accretion of net discounts on marketable securities, a $13.9 million increase in losses from foreign currency transactions, and a $4.1 million increase in legal expense related to shareholder litigation. Benefit From Income Taxes Year Ended January 31, 2026 2025 Change % Change (dollars in thousands) Benefit from income taxes $ (181,702) $ (4,406) $ (177,296) NM(1) Percentage of revenue (11) % —  % (1) Not meaningful Benefit from income taxes increased by $177.3 million for fiscal year 2026 compared to fiscal year 2025, mainly driven by release of valuation allowance associated with our U.S. entity, as well as period-over-period change in the proportion of operating profits realized across jurisdictions. Key Performance Metric We monitor ARR to help us measure and evaluate the effectiveness of our operations. ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support. ARR also does not reflect nonrecurring rebates payable to partners (upon establishing sufficient history of their nonrecurring nature), the impact of nonrecurring incentives (such as one-time discounts provided under sales promotional programs), and any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves (for example those for credit losses or disputed amounts). At January 31, 2026 and 2025, our ARR was $1,852.6 million and $1,666.1 million, respectively, representing a growth rate of 11%. Approximately 32% of this growth rate was due to new customers and 68% of this growth rate was due to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 107% and 110% as of January 31, 2026 and 2025, respectively. We calculate dollar-based net retention rate as of a period end by starting with Prior Period ARR, the ARR from the cohort of all customers as of 12 months prior to such period end. We then calculate Current Period ARR, the ARR 68 Table of Contents from these same customers as of the current period end. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. Our ARR may fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers’ spending levels, acquisitions, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our U.S. GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement as of the end of an invoiced period and divides that amount by the corresponding term and multiplies by 365 days to derive the annualized renewal value. In contrast, for our revenue calculated in accordance with U.S. GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and SaaS revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, revenue is impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a multi-year contract invoiced up front, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics. For further information, see the section titled “Risk Factors—Risks Related to Our Business, Products, Operations, and Industry" included in Part I, Item 1A of this Annual Report on Form 10-K. A summary of ARR-related data at January 31, 2026 and 2025 is as follows: At January 31, 2026 2025 (dollars in thousands) ARR $ 1,852,567  $ 1,666,136  Incremental ARR (1) $ 186,431  $ 202,438  Customers with ARR ≥ $1 million: Number of customers 357  317  Percent of fiscal year revenue 52  % 51  % Customers with ARR ≥ $100 thousand: Number of customers 2,565  2,292  Percent of fiscal year revenue 89  % 87  % Dollar-based net retention rate 107  % 110  % (1) For the fiscal years ended January 31, 2026 and 2025, respectively Liquidity and Capital Resources As of January 31, 2026 and 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,689.5 million and $1,723.6 million, respectively, and we had an accumulated deficit of $1,705.5 million and $1,987.9 million, respectively. During the fiscal years ended January 31, 2026 and 2025, we reported net income (loss) of $282.3 million and $(73.7) million, respectively, and net cash provided by operations of $371.2 million and $320.6 million, respectively. Cash generated by our operations in recent periods has principally 69 Table of Contents been used to fund working capital requirements such as personnel and facilities costs, invest in capital expenditures, engage in various business and asset acquisitions, and repurchase shares of our Class A common stock. Our future capital requirements will depend on many factors, including our revenue growth rate, sales of our products and services, license renewal activity, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, expenses associated with international expansion, the timing and extent of capital expenditures to invest in existing and new office spaces, and the timing and extent of stock repurchases. We may in the future enter into arrangements to acquire or invest in complementary businesses or assets. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operations and financial condition. We believe that our existing cash and cash equivalents, marketable securities, and cash flows from operations will be sufficient to fund our anticipated cash requirements for the next twelve months and the long term. Stock Repurchases On September 1, 2023, our board of directors authorized a stock repurchase program, pursuant to which we could repurchase from time to time up to $500.0 million of our outstanding shares of Class A common stock. On August 30, 2024, our board of directors authorized the repurchase of an additional $500.0 million of our outstanding shares of Class A common stock. Subsequent to January 31, 2026, we fulfilled the aforementioned authorizations, and in March 2026, our board of directors authorized a new stock repurchase program, pursuant to which we may repurchase from time to time up to $500.0 million of our Class A common stock. Refer to Note 11, Stockholders' Equity—Stock Repurchases for further details. Cash Flows The following table summarizes our cash flows for the periods presented: Year Ended January 31, 2026 2025 (dollars in thousands) Net cash provided by operating activities(1) $ 371,208  $ 320,565  Net cash used in investing activities (22,466) (45,503) Net cash used in financing activities (372,375) (450,515) (1) Inclusive of: Cash paid for employer payroll taxes related to employee equity transactions $ (5,750) $ (6,907) Net receipts of employee tax withholdings on stock option exercises 15  3  Cash paid for restructuring costs (14,101) (15,283) Operating Activities Our largest source of operating cash is cash generation from sales to our customers. Our primary uses of cash from operating activities are for personnel-related expenses, direct costs to deliver licenses and provide subscription and professional services, and marketing expenses. Net cash provided by operating activities for fiscal year 2026 of $371.2 million was driven by cash collections from our customers, which were approximately 4% higher than in the prior year. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2025 bonuses paid in the first quarter of fiscal year 2026. Other cash operating expenditures included payments related to our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026, and payments for professional services, software, and office rent. 70 Table of Contents Net cash provided by operating activities for fiscal year 2025 of $320.6 million was driven by cash collections from our customers and interest income on our marketable securities. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2024 bonuses paid in the first quarter of fiscal year 2025 and employer payroll taxes related to employee equity transactions. Other cash operating expenditures included payments related to our Fiscal Year 2025 Workforce Restructuring and payments for professional services, software, and office rent. Investing Activities Net cash used in investing activities for fiscal year 2026 of $22.5 million was driven by a net payment of $24.8 million in connection with the acquisition of Peak, $19.0 million in capital expenditures primarily related to leasehold improvements, and $15.4 million in other investing outflows, partially offset by $36.8 million in net maturities of marketable securities. Net cash used in investing activities for fiscal year 2025 of $45.5 million was primarily driven by a $35.8 million investment in the H Company and $14.9 million in capital expenditures, partially offset by $5.2 million in net maturities of marketable securities. Financing Activities Net cash used in financing activities for fiscal year 2026 of $372.4 million was primarily driven by $329.1 million in repurchases of Class A common stock under our stock repurchase program and $59.1 million in payments of tax withholdings on net settlement of equity awards, partially offset by $14.9 million in proceeds from ESPP contributions and $1.1 million in proceeds from stock option exercises. Net cash used in financing activities for fiscal year 2025 of $450.5 million was primarily driven by $390.8 million in repurchases of Class A common stock under our stock repurchase program, $77.9 million in payments of tax withholdings on net settlement of equity awards, and $5.6 million loan note payment on the second anniversary of the acquisition of Re:infer LTD, partially offset by $15.6 million in proceeds from ESPP contributions and $8.0 million in proceeds from stock option exercises. Material Cash Requirements Our material cash requirements predominantly relate to working capital requirements, including employee compensation, payment of employee tax withholdings on net settlement of equity awards, and material contractual obligations, including leases and purchase commitments. As of January 31, 2026, accrued compensation and benefits of $121.0 million are included in current liabilities on our consolidated balance sheet. Refer to Note 9, Balance Sheet Components—Accrued Expenses and Other Current Liabilities for details of additional short-term payroll-related obligations included in accrued expenses and other current liabilities as of January 31, 2026. The following table summarizes the aggregate effect that our material contractual obligations as of January 31, 2026 are expected to have on our cash flows in the periods indicated (in thousands): Payments Due by Period Total Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years (dollars in thousands) Operating lease commitments(1) $ 122,585  $ 16,808  $ 29,603  $ 22,647  $ 53,527  Purchase commitments 346,861  163,400  183,458  3  —  Total contractual obligations $ 469,446  $ 180,208  $ 213,061  $ 22,650  $ 53,527  (1) Inclusive of $12.2 million of commitments related to operating leases which have not yet commenced. The amounts in the table above are associated with agreements that are enforceable and legally binding. Obligations under contracts that we can cancel without a significant penalty are not included in the table above. 71 Table of Contents Refer to Note 8, Operating Leases for more detailed information regarding timing of future lease payments, and to Note 10, Commitments and Contingencies—Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments with terms of twelve months or longer. Additionally, stock repurchases may represent a material use of cash depending upon the number of shares repurchased, which is ultimately discretionary. Refer to Note 11, Stockholders' Equity—Stock Repurchases for further details. Critical Accounting Estimates Our consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the consolidated financial statements and amounts of revenue and expenses reported during the period. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances, and we evaluate our estimates on an ongoing basis. The following are the accounting estimates that we believe have the most significant impact on our consolidated financial statements. Revenue Recognition We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers. ASC 606 requires recognition of revenue when control of promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Revenue recognition is inherently judgmental, particularly for complex arrangements that include multiple performance obligations, which are common for us. Our most significant judgment relates to allocation of the transaction price, specifically determining the SSP for each performance obligation, which impacts the pattern and timing of revenue recognition. At the inception of a contract with a customer, we assess the goods or services promised to identify distinct performance obligations. The distinct performance obligations identified in our typical contracts include, but are not limited to, software licenses, SaaS, maintenance and support, and professional services. The pattern and timing of revenue recognition for each of these performance obligations varies. Specifically, revenue from licenses is recognized at the point in time at which the customer is able to use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term; revenue from SaaS and maintenance and support services is recognized ratably over the contract term; and revenue from professional services is recognized over time as the services are performed. Most of our contracts contain multiple of these performance obligations. In such arrangements, the transaction price is allocated to the separate performance obligations on a relative SSP basis. Since the performance obligations have different revenue recognition models, SSP estimates directly affect the timing and amount of revenue recognized during a particular period. For example, if the SSP of a license delivered in one period is greater than the SSP of professional services that are sold with that license but delivered in future periods, a greater portion of the transaction price will be recognized at contract inception in the current period versus over time as the services are performed in later periods. Whenever possible, we allocate the transaction price based on observable SSP, which is the price of the same good or service in standalone sales to similar customers in similar circumstances. If observable SSP is not available, we estimate the SSP using data that may include historical prices, discounting practices, list prices, cost data, and other observable inputs. We may have more than one SSP for individual performance obligations when our data population indicates that pricing practices vary by class of customer (for example, based on the customer’s geographic region). We review our SSP at least annually and update when necessary to reflect changes in facts and circumstances. For further information about our revenue recognition, refer to Note 2, Summary of Significant Accounting Policies—Revenue Recognition and Note 3, Revenue Recognition, included in Part II, Item 8 of this Annual Report on Form 10-K. 72 Table of Contents Income Taxes We are subject to income taxes in the U.S and in a number of foreign jurisdictions. We apply significant judgment in determining our (benefit from) provision for income taxes, particularly with regard to assessment of DTAs and evaluation of tax positions. Pursuant to ASC 740, Income Taxes, we account for income taxes using the asset and liability method, whereby DTAs and DTLs are recognized to represent the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities, and for NOL and tax credit carryforwards. DTAs and DTLs are measured using the currently enacted tax rates and laws that are expected to apply in the years in which we expect to realize or settle them. In the case of DTAs, we regularly assess the realizability of future associated tax benefits by considering both positive and negative evidence, such as the adequacy of expected future taxable income on a jurisdictional basis (including forecasted income and whether a sustained trend of profitability exists historically), any carryforward periods available, and prudent and feasible tax planning strategies. The evaluation of this evidence requires judgment. If we determine that it is more likely than not that all or a portion of a DTA will not be realized in the future, a valuation allowance is provided. If and when sufficient positive evidence becomes available to indicate that it is more likely than not at all or a portion of a DTA will be realized, we may release all or a portion of a valuation allowance accordingly. For example, during fiscal year 2026, based on the available positive and negative evidence including the amount of taxable income in the U.S. in recent years and our expectations of future profits in the U.S., we determined it to be more likely than not that a significant part of our U.S. DTA is realizable and therefore released $186.3 million of the valuation allowance associated with the U.S. federal DTA and $18.6 million of the valuation allowance associated with certain state DTAs. However, we continue to maintain full valuation allowances against our Romania DTA and some U.S. state DTAs because we believe that it is more likely than not that these DTAs will not be fully realized. Our remaining valuation allowances total $150.5 million as of January 31, 2026. We may release some or all of these valuation allowances in future periods if objective negative evidence of cumulative losses is no longer present and if positive evidence of sustained profitability is established to support the realization of the related DTAs. Such release would result in a decrease in the provision for income taxes in the period of the release. Similarly, significant judgment is required in evaluating our tax positions. In the ordinary course of business, there exist many transactions and calculations for which the ultimate tax settlement is uncertain. ASC 740 prescribes a two-step approach to recognizing and measuring uncertain tax positions: (1) evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon audit, based on the technical merits of the tax position, and including resolution of related appeals or litigation processes, if any; and (2) measure the tax benefit as the largest amount which is more likely than not of being realized and effectively settled. We consider a number of factors when evaluating tax positions and estimating tax benefits, including changes in facts and circumstances, changes in tax law, tax audit status, and communications with tax authorities. Any changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our provision for income taxes in the period in which the change is made. In particular, if a tax position is not sustained upon audit and we are required to pay amounts in excess of the associated accrual, or if no accrual has been made, our provision for income taxes will increase. For further information about our income taxes, including DTAs and associated valuation allowances and tax positions, refer to Note 13. Income Taxes, included in Part II, Item 8 of this Annual Report on Form 10-K. Recent Accounting Pronouncements See Note 2, Summary of Significant Accounting Policies—Recently Adopted Accounting Pronouncements and —Recently Issued Accounting Pronouncements, included in Part II, Item 8 of this Annual Report on Form 10-K for more information.