Financial Analysis

"Commitments and Contingencies Legal Liability to Landlord Insurance We have a wholly owned subsidiary, Terra Mar Insurance Company, Inc., which was established in connection with reinsuring liability to landlord insurance policies offered to our customers by our third-party service provider. We assume a 100% quota share of the liability to landlord insurance policies placed with our customers by our third-party service provider. We accrue for reported claims, and include an estimate of losses incurred but not reported by our property manager customers, in cost of revenue because we bear the risk related to all such claims. Our estimated liability for reported claims and incurred but not reported claims as of June 30, 2026 and December 31, 2025 was $8.1 million and $6.6 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets. Included in Prepaid expenses and other current assets as of June 30, 2026 and December 31, 2025 are $4.6 million and $7.8 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service. Commitments In January 2026, we entered into an agreement with vendors for certain cloud computing services. We are committed to spend a minimum of at least $219.3 million through 2031, of which $36.2 million is short-term. We may pay more than the minimum purchase commitment to our cloud-computing vendors based on usage. Credit Facility On Septem …

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The following table presents our revenue categories for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Subscription Services $ 59,800 $ 52,473 $ 118,022 $ 101,986 Value Added Services 219,467 180,145 420,830 344,851 Other 1,857 2,957 4,486 6,440 Total revenue $ 281,124 $ 235,575 $ 543,338 $ 453,277

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"Stock-Based Compensation Restricted Stock Units A summary of activity in connection with our restricted stock units (""RSUs"") for the six months ended June 30, 2026, is as follows (number of shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested as of December 31, 2025 627 $ 200.81 Granted 496 193.47 Vested (205) 184.05 Forfeited (22) 209.51 Unvested as of June 30, 2026 896 $ 200.37 Unvested RSUs as of June 30, 2026 were composed of 0.8 million RSUs with only service conditions and 0.1 million performance share units (""PSUs"") with both service conditions and performance conditions. RSUs granted with only service conditions generally vest over a four-year period, assuming continued employment through the applicable vesting date. The number of PSUs granted, as included in the above table, assumes achievement of the performance metrics at 100% of the performance target. The unvested PSUs as of June 30, 2026, are subject to vesting based on the achievement of pre-established performance metrics for the year ending December 31, 2026 and will vest over a three-year period, assuming continued employment through each applicable vesting date. The actual number of shares to be granted at the end of the performance period will range from 0% to 150% of the target number of shares depending on achievement relative to the performance metrics over the applicable period; however, performance-based compensation expense is included in calculating a …

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Income Taxes We calculate our provision for income taxes on a quarterly basis by applying an estimated annual effective tax rate to income (loss) from operations and by calculating the tax effect of discrete items recognized during the quarter. For the three and six months ended June 30, 2026, we recorded income tax expense of $12.9 million and $23.5 million, representing an effective tax rate of 23.7% and 21.9%, respectively. Our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to state income taxes and non-deductible officers' compensation partially offset by tax benefits from research and development tax credits. For the three and six months ended June 30, 2025, our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to excess tax benefits from stock-based compensation and research and development tax credits, partially offset by state income taxes and non-deductible officers' compensation. We assess our ability to realize our deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. During the three months ended December 31, 2024, we assessed all available evidence …

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"Recent Accounting Pronouncements Adopted In July 2025, the Financial Accounting Standards Board (""FASB"") issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets , which amends ASC 326-202 to provide a practical expedient (for all entities) and an accounting policy election (for all entities, other than public business entities, that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The guidance will be applied on a prospective basis and is effective for calendar year-end public business entities in the 2026 annual period and its interim periods, with early adoption permitted. We adopted the standard from January 1, 2026 prospectively. The adoption of the standard has no material impact on our financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2024, FASB issued ASU 2024-03, Disaggregation of Income Statement Expense. The new standard requires additional disclosures about specific types of expenses included in the expense captions presented on the face of income statements as well as disclosures about selling expenses. The guidance applies prospectively with the option to apply the standard retrospectively and is effective for calendar year-end public business entities in the 2027 annual period and in 2028 for interim periods with early adoption permitted. We …

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Revenue and Deferred Costs The following table presents our revenue categories for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Subscription Services $ 59,800 $ 52,473 $ 118,022 $ 101,986 Value Added Services 219,467 180,145 420,830 344,851 Other 1,857 2,957 4,486 6,440 Total revenue $ 281,124 $ 235,575 $ 543,338 $ 453,277 Our revenue is generated primarily from customers in the United States. Deferred Costs Deferred costs were $24.2 million and $22.8 million as of June 30, 2026 and December 31, 2025, respectively, of which $12.2 million and $11.2 million, respectively, are included in Prepaid expenses and other current assets and $12.0 million and $11.6 million, respectively, are included in Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. Amortization expense for deferred costs was $3.3 million, and $2.7 million for the three months ended June 30, 2026 and 2025, respectively, and $6.5 million and $5.4 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, no impairments were identified in relation to the costs capitalized for the periods presented. Remaining Performance Obligations Transaction price allocated to remaining performance obligations (RPO) represents contracted revenue that has not been recognized, which includes deferred revenue and non-cancelable amounts that will be …

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