Financial Analysis

COMMITMENTS AND CONTINGENCIES Purchase Obligations Our purchase obligations primarily relate to a third-party cloud infrastructure agreement, subscription arrangements, and service agreements used to facilitate our operations. As of March 31, 2026, we had approximately $8.4 million in future minimum payments due under our non-cancelable purchase obligations with a remaining term in excess of one year. These are expected to be paid through 2028. Legal Proceedings From time to time, we may be subject to legal proceedings, as well as demands, claims, and threatened litigation. The outcomes of legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. Regardless of the outcome, litigation can have an adverse impact on our business because of defense and settlement costs, diversion of management resources, and other factors. We are not currently party to any legal proceeding that we believe, as of the filing of this Quarterly Report on Form 10-Q, could have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation or claim be resolved unfavorably. We regularly review the status of each significant matter and assess its potential likelihood of loss or exposure. We record an accrual for loss contingencies for legal proceedings when we believe that an unfavorable outcome is both (i) prob …

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10. EMPLOYEE BENEFIT PLANS Stock Incentive Plans As of March 31, 2026, 18.6 million shares and 7.7 million shares of our common stock were reserved for future issuance under our 2021 Stock Incentive Plan (the 2021 Plan) and 2021 Employee Stock Purchase Plan (the ESPP). Shares issuable under the 2021 Plan and the ESPP may be drawn from authorized but unissued shares or from treasury stock. In 2024, we began settling stock option exercises, vesting of RSUs, and ESPP purchases by reissuing shares of our common stock from treasury stock. In September 2025, we reissued all of our remaining treasury stock. Stock Options We grant stock options at prices equal to the grant date fair value. Typically, these stock options expire ten years from the grant date and vest ratably over a four-year service period. Stock option activity for the three months ended March 31, 2026 was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value BalanceDecember 31, 2025 11.1 $ 8.63 6.54 $ 6.1 Exercised (0.1) 2.48 BalanceMarch 31, 2026 11.0 $ 8.67 6.31 $ 2.5 Options vested 6.2 $ 9.16 4.46 $ 2.5 RSUs and PSUs RSUs have a service-based vesting condition, which is satisfied generally either (i) over four years with a 25% cliff vesting period after one year and 6.25% vesting each quarter thereafter for new hires, or (ii) over four years with 6.25% vesting each quarter for new grants to existing employees. The related sto …

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INCOME TAXES Income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are considered in the relevant period. Each quarter, we update the estimate of the annual effective tax rate, and if the estimated tax rate changes, we record a cumulative adjustment. Our effective tax rate for the three months ended March 31, 2026 and 2025 was (7.3%) and (23.1%). The difference between the effective tax rate and the U.S. federal statutory rate is primarily due to a valuation allowance for our federal and state net deferred tax assets, income taxes on foreign operations, United States (U.S.) state income taxes, and stock-based compensation expense. As of March 31, 2026, we continued to have a full valuation allowance against our U.S. federal and state deferred tax assets. Management regularly evaluates the realizability of our deferred tax assets. Adjustments are recorded to income during the period in which management makes the determination a deferred tax asset is more likely than not to be realized. …

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LEASES We have entered into various non-cancelable office space operating leases with lease periods expiring through June 2030. These leases do not contain residual value guarantees, covenants, or other restrictions.

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Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure, on an annual and interim basis, of specified disaggregated information about certain costs and expenses. Additionally, in January 2025, the FASB issued ASU 2025-01, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) , to clarify the effective date of ASU 2024-03. ASU 2024-03 will be effective for annual reporting periods beginning with our fiscal year ending December 31, 2027 and for interim reporting periods beginning with our fiscal quarter ending March 31, 2028, with early adoption permitted. The amendments may be applied either prospectively or retrospectively. We are currently evaluating the impact ASU 2024-03 will have on our financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606, Revenue from Contracts with Customers . The practical expedient allows entities to assume that current conditions as of the balan …

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RELATED PARTY TRANSACTIONS We have an ongoing content sourcing agreement with DeepLearning.AI Corp (DeepLearning.AI), which is owned by our chairman and co-founder, Dr. Andrew Ng. This agreement was entered into in the ordinary course of business and subject to standard commercial terms. Fees associated with this agreement are included within cost of revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss. We recognized content fees under this agreement of $1.9 million and $2.2 million during the three months ended March31, 2026 and 2025. Related content liabilities were $1.9 million and $4.1 million as of March31, 2026 and December31, 2025. …

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RESTRUCTURING RELATED CHARGESIn October 2024, we announced a commitment to reduce overall expenses, focus our efforts, and prioritize future investments in key initiatives that we expect will drive long-term, sustainable growth. This initiative resulted in a reduction of our global workforce by approximately 9%, creating capacity for targeted investments, as well as incremental profitability. As a result, we recognized restructuring related charges of $0.7 million, made cash payments of $5.2million, and recognized a reversal of stock-based compensation of $1.6million due to the forfeiture of RSUs and stock options during the three months ended March31, 2025. …

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REVENUE RECOGNITION Deferred Revenue Revenue recognized during the three months ended March 31, 2026 and 2025, which was included in the corresponding deferred revenue balance at the beginning of each year, was $90.8 million and $82.1 million. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue in the Condensed Consolidated Balance Sheets and unbilled amounts that will be recognized as revenue in future periods. As of March 31, 2026, we had remaining performance obligations of $355.1 million and expect to recognize approximately 74% as revenue over the next 12 months and the remainder thereafter. Costs to Obtain and Fulfill Contracts The following table presents our capitalization and amortization of commissions and related payroll tax expenditures recorded within sales and marketing in the Condensed Consolidated Statements of Operations and Comprehensive Loss: Three Months Ended March 31, Commissions and related payroll tax expenditures: 2026 2025 Capitalization $ 3.1 $ 1.7 Amortization $ 3.8 $ 3.9 Deferred commissions and related payroll tax expenditures, which are included in deferred costs and other assets, were as follows: March 31, 2026 December 31, 2025 Deferred costs, net $ 12.7 $ 12.8 Other assets $ 11.3 $ 11.9

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SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Our chief operating decision maker (CODM) is our Chief Executive Officer. Based on how our CODM assesses performance and allocates resources, we have identified two reporting segments: Consumer and Enterprise. This is also consistent with how we disaggregate revenue. Our CODM primarily measures each segments performance based on revenue and gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment content costs within cost of revenue. These costs are considered significant segment expenses that are regularly reviewed by our CODM. Other costs of revenue, including platform operation and maintenance costs, amortization of internal-use software and intangible assets, and stock-based compensation expense, are managed on an enterprise-wide basis and not reported by segment. In addition, we do not report operating expenses, other income (expense), net, or income tax expense (benefit) by segment because our CODM reviews this financial information on a consolidated basis. Our CODM does not use segment-level asset information to assess performance or allocate resources. Therefore, we do not track our long-lived assets by segment. The geographic identification of these assets is provided below. Financial information for each reportable segment was as follows: Three Months Ended March 31, 2026 2025 Consumer Enterprise Consolidated Consumer Enterprise Consolidated Revenue $ 129.5 $ 66.2 $ 195. …

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