Financial Analysis

"8. Commitments and Contingencies Leases We have operating leases for corporate offices and subleased offices. As of June 30, 2026, we did not have any operating leases that had not yet commenced. Lease costs for the three and six months ended June 30, 2026 and 2025 were insignificant. As a result, we have not presented a tabular summary of the components of lease costs for the period. ""Operating lease right-of-use assets"" are included within ""other assets"" in our unaudited, condensed consolidated balance sheets. ""Operating lease liabilities, current portion"" are included in ""accrued expenses and other current liabilities,"" while ""operating lease liabilities, net of current portion"" are included in ""other liabilities"" in our unaudited, condensed consolidated balance sheets. See Note 5 to these unaudited, condensed consolidated financial statements for additional information. Other commitments The term loans under the 2024 Credit Facilities require periodic principal payments. The balance of the term loans and any amounts drawn on the revolving credit loans are due upon maturity of the 2024 Credit Facilities in April 2029. The Real Estate Loans also require periodic principal payments and the balance of the Real Estate Loans are due upon maturity in April 2038. We have contractual obligations for third-party technology used in our solutions and for other services we purchase as part of our normal operations. In certain cases, these arrangements require a minimum an …

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"6. Debt The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements. Debt balance at Weighted average effective interest rate at (dollars in thousands) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Credit facility: Revolving credit loans $ 326,000 $ 286,400 5.91 % 5.50 % Term loans 760,000 770,000 5.46 % 5.21 % Real estate loans 52,395 53,352 5.23 % 5.23 % Other debt 13,802 691 7.38 % 9.13 % Total debt 1,152,197 1,110,443 5.60 % 5.29 % Less: Unamortized discount and debt issuance costs 2,190 746 Less: Debt, current portion 22,595 22,660 5.75 % 5.49 % Debt, net of current portion $ 1,127,412 $ 1,087,037 5.60 % 5.28 % 2024 Credit Facilities In April 2024, we entered into a five-year $1.5 billion senior credit facility (the ""2024 Credit Facilities""). At June 30, 2026, we were in compliance with our debt covenants under the 2024 Credit Facilities. Real estate loans In August 2020, we completed the purchase of our global headquarters facility. As part of the purchase price, we assumed the sellers obligations under two senior secured notes with a then-aggregate outstanding principal amount of $61.1 million (collectively, the Real Estate Loans). The Real Estate Loans require periodic principal payments and the balance of the Real Estate Loans are due upon maturity in April 2038. At June 30, 2026, we were in compliance with our debt covenants under the Real …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue by geographic area based on the location of our customers: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2026 2025 2026 2025 United States $ 233,963 $ 231,649 $ 467,058 $ 460,141 United Kingdom 37,004 33,708 66,554 59,830 Other countries 19,630 16,673 38,125 31,995 Total revenue $ 290,597 $ 282,030 $ 571,737 $ 551,966 The following table presents our revenue by type: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2026 2025 2026 2025 Contractual recurring $ 186,365 $ 180,128 $ 368,679 $ 355,593 Transactional recurring 98,926 96,151 193,097 184,011 Total recurring revenue $ 285,291 $ 276,279 $ 561,776 $ 539,604 One-time services and other 5,306 5,751 9,961 12,362 Total revenue $ 290,597 $ 282,030 $ 571,737 $ 551,966

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"9. Income Taxes Our income tax provision and effective income tax rates, including the effects of period-specific events, were: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2026 2025 2026 2025 Income tax provision $ 11,063 $ 13,575 $ 17,729 $ 14,117 Effective income tax rate 23.8 % 33.9 % 21.0 % 31.4 % The decreases in our effective income tax rate for the three and six months ended June 30, 2026 when compared to the same periods in 2025 were primarily due to a reduction in our valuation allowance recognized in 2026, reflected in our annual effective tax rate, resulting from the effect of OBBBA on the realizability of our deferred tax assets we expect to realize. This benefit was partially offset by the U.S. tax on certain foreign earnings under the net controlled foreign corporations (""CFC"") tested income (""NCTI"") regime, state income taxes, the limitation on deductible executive compensation under Section 162(m) and net discrete expense associated with our unrecognized tax benefits. Although our effective tax rate decreased in both periods, our income tax provision decreased for the three months ended June 30, 2026, and increased for the six months ended June 30, 2026, in each case reflecting the change in pre-tax book income between periods, together with the effect of the valuation allowance reduction described above. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The legislation makes permanent certain pr …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update is intended to improve transparency by requiring entities to disclose, in the notes to the financial statements, a disaggregation of certain expense categories that are included within the line items presented on the face of the income statement. The standard is effective for our annual reporting period beginning in 2027 and for interim reporting periods beginning in 2028, with early adoption permitted. The standard may be applied either prospectively or retrospectively, with early adoption permitted. We are currently evaluating the timing and method of adoption and assessing the impact of this ASU on the preparation of our financial statement disclosures. …

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12. Revenue Recognition Transaction price allocated to the remaining performance obligations As of June 30, 2026, approximately $1.6 billion of revenue under contract is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 45% of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter. We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for which we recognize revenue at the amount to which we have the right to invoice for services performed (transactional revenue). Contract balances Our closing balances of deferred revenue were as follows: (in thousands) June 30, 2026 December 31, 2025 Total deferred revenue $ 406,403 $ 371,764 The increase in deferred revenue during the six months ended June 30, 2026 was primarily due to a seasonal increase in customer contract billings. Historically, due to the timing of customer budget cycles, we have an increase in billings and customer contract renewals at or near the beginning of our third quarter. Generally, our lowest balance of deferred revenue during the year is at the end of our first quarter. The amount of revenue recognized during the six months ended June 30, 2026 that was included in the deferred reven ue balance at the beginning of the period was approximately $277 million. The amount of revenue recognized during the six months ended June 30, 2026 f …

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"11. Segment Information We have one operating segment and one reportable segment. Our chief operating decision maker is our chief executive officer (""CEO""), who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making decisions about assessing financial performance and allocating resources. Our CEO considers costs of revenue, sales, marketing and customer success, research and development, and general and administrative expense categories on our consolidated statements of comprehensive income as significant. Our CEO uses consolidated operating margin and net income as the primary measures of profit or loss. These financial metrics are used by our CEO to make key operating decisions, such as the allocation of budget between costs of revenues and our different operating expense categories. Our other segment items include amortization, interest expense, other income, net, and income tax provision on our consolidated statements of comprehensive income."

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10. Stockholders' Equity Stock repurchase program Under our stock repurchase program, we are authorized to repurchase shares from time to time in accordance with applicable laws both on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and in privately negotiated transactions. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. The repurchase program does not have an expiration date and may be limited, suspended or discontinued at any time without prior notice. Under the 2024 Credit Agreement, we have restrictions on our ability to repurchase shares of our common stock, which are summarized on page 37 in this report. We account for purchases of treasury stock under the cost method. On December 1, 2025, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program to $1.0 billion available for repurchases. During the three months ended June 30, 2026, we repurchased an aggregate of 797,795 shares for $28.0 million. During the six months ended June 30, 2026, we repurchased an aggregate of 2,398,852 shares for $110.1 million. The remaining amount available to purchase stock under the approved stock repurchase program was $850.4 million as of June 30, 2026. Changes in accumula …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing