Financial Analysis

Commitments and Contingencies Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors, and parties to other transactions with the Company with respect to certain matters, such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position, or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Operating Leases The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. See Note 6 , Leases, for more information on the Company's leases and the future minimum lease payments. Purchase Obligations The Company's purchase obligations include contracts with third-party c …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Convertible Senior Notes and Term Loan Components of convertible senior notes and term loan were as follows as of December 31, 2025 and March 31, 2025, respectively (in thousands): December 31, 2025 March 31, 2025 2024 Term Loan 2028 Notes Total 2024 Term Loan 2028 Notes Total Principal $ 122,000 $ 201,914 $ 323,914 $ 152,000 $ 201,914 $ 353,914 Unamortized debt discount and issuance costs (428) (2,316) (2,744) (826) (3,124) (3,950) Net carrying amount $ 121,572 $ 199,598 $ 321,170 $ 151,174 $ 198,790 $ 349,964 Current portion of long-term debt 26,700 26,700 11,593 11,593 Non-current portion of long-term debt $ 94,872 $ 199,598 $ 294,470 $ 139,581 $ 198,790 $ 338,371 Components of debt interest expense were as follows as of the three and nine months ended December 31, 2025 and 2024, respectively (in thousands): Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 2024 Term Loan 2028 Notes Total 2024 Term Loan 2022 Term Loan 2028 Notes Total Contractual interest expense $ 2,207 $ 2,019 $ 4,226 $ 3,396 $ $ 2,019 $ 5,415 Amortization of debt discount and issuance costs 1 80 281 361 158 269 427 Total debt interest expense $ 2,287 $ 2,300 $ 4,587 $ 3,554 $ $ 2,288 $ 5,842 1 Amount represents the non-cash amortization of debt discount and issuance costs associated with the Company's debt instruments. These costs are amortized to interest expense over the respective terms of the debt using the effective interest method. Nine Months Ended December 31, 2025 Nine …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Cash, cash equivalents, and available-for-sale investments were as follows (in thousands): As of December 31, 2025 Amortized Costs Estimated Fair Value Cash and Cash Equivalents Restricted Cash (Current) Cash $ 63,638 $ 63,638 $ 62,320 $ 1,318 Level 1: Money market funds 24,562 24,562 24,562 Total assets $ 88,200 $ 88,200 $ 86,882 $ 1,318 As of March 31, 2025 Amortized Costs Estimated Fair Value Cash and Cash Equivalents Restricted Cash (Current & Non-Current) Cash $ 64,765 $ 64,765 $ 63,953 $ 812 Level 1: Money market funds 24,559 24,559 24,097 462 Total assets $ 89,324 $ 89,324 $ 88,050 $ 1,274 As of December 31, 2024, cash, cash equivalents and restricted cash of $104.6 million included $104.2 million and $0.5 million of cash and cash equivalents and restricted cash, respectively. To support its current operations, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The restricted cash component of the money market funds is comprised of letters of credit securing leases for certain office facilities and funds related to business combinations. The Company uses the Black-Scholes option-pricing valuation model to value its detachable warrants from inception and at each reporting period. During the three months ended December 31, 2025, the Company used historical volatility to determine the fair value of the warrants liability due to the low trading volume and moneyness assess …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets and Goodwill The carrying value of intangible assets consisted of the following (in thousands): December 31, 2025 March 31, 2025 Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 5.0 $ 105,895 $ (49,679) $ 56,216 $ 105,881 $ (40,670) $ 65,211 Developed technology 0.8 46,738 (45,568) 1,170 46,696 (44,003) 2,693 Trade names and domains 0.0 638 (638) 630 (585) 45 Total acquired identifiable intangible assets $ 153,271 $ (95,885) $ 57,386 $ 153,207 $ (85,258) $ 67,949 At December 31, 2025, annual amortization of intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands): Remainder of fiscal year 2026 $ 3,496 2027 11,842 2028 11,123 2029 11,044 2030 and thereafter 19,881 Total $ 57,386 The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Balance as of March 31, 2025 $ 271,530 Foreign currency translation 2,474 Balance as of December 31, 2025 $ 274,004 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes The Company's effective tax rate was 9.4% and 23.1% for the three months ended December 31, 2025 and 2024, respectively, and 56.6% and (14.0)% for the nine months ended December 31, 2025 and 2024, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance that the Company maintains against its U.S. deferred tax assets after adjusting for the impact of certain provisions enacted under the Tax Cuts and Jobs Act, current tax liabilities of profitable foreign subsidiaries subject to different local income tax rates, and state taxes in the United States. The effective tax rate is calculated by dividing the provision for income taxes by the income (loss) before provision for income taxes. One Big Beautiful Bill Act On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act (the ""OBBBA"") (formally known as An Act to provide for reconciliation, pursuant to title II of H. Con. Res. 14). Included in this legislation are provisions that allow the immediate expensing of domestic U.S. research and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. The legislation has multiple effective dates, with certain provisions coming into effect for the Company in its fiscal year ending March 31, 2026 and other provisions coming into effect in subsequen …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The components of lease expense were as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Operating lease expense $ 2,715 $ 2,869 $ 8,244 $ 8,907 Variable lease expense $ 965 $ 960 $ 2,880 $ 3,008 The supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Cash outflows from operating leases $ 3,334 $ 3,639 $ 10,274 $ 11,034 Right-of-use assets obtained in exchange for operating lease obligations $ $ $ $ 1,954 Short-term lease expense was immaterial during the nine months ended December 31, 2025 and 2024, respectively. The following table presents supplemental lease information: December 31, 2025 March 31, 2025 Weighted-average remaining lease term 4.7 years 5.4 years Weighted-average discount rate 4.6% 4.7% The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of December 31, 2025 (in thousands): Remainder of fiscal year 2026 $ 3,406 2027 12,304 2028 11,554 2029 11,430 2030 11,433 Thereafter 7,937 Total lease payments 58,064 Less: imputed interest (5,640) Present value of lease liabilities $ 52,424 Operating lease liabilities 10,574 Operating lease liabilities, non-current $ 41,850 The Company continues to evaluate its leases for potential impairments, noting no further impairments during the nine months ended December 31, 2025. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Not Yet Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entitys income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The standard is effective for annual periods beginning after December 15, 2024, and will therefore be adopted by the Company in its Form 10-K for the fiscal year ending March 31, 2026. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and annual income tax disclosures. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220): Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, and issued subsequent amendments to the implementation guidance (including ASU 2025-01), which requires companies to disclose additional information about specific expense categories in the notes to financial statements. The update is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact this guidance will have on the presentation of its consolidated financial statements and accompanying notes. In November 2024, the FASB issued ASU 2024-04, Debt (Topic 470): Debt with Conversion and Other Options, which clarifies w …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions The Company has conducted business with an outside sales and marketing vendor since December 2017, which became a related party in July 2022 when a member of the Company's board of directors joined the vendor's board of directors. During the nine months ended December 31, 2025, the Company renewed its existing one-year contract with the vendor for an additional one-year contractual term valued at $0.5 million. During the nine months ended December 31, 2025, the Company paid $0.6 million for services rendered to this vendor.

RelatedPartyTransactionsDisclosureTextBlock

Revenue Disaggregation of Revenue The Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors are most appropriately depicted by (i) geographic region, and (ii) type of revenue or service provided. The following tables set forth the revenue geographic information based on the billing address for the customers for each period (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 United States $ 112,450 $ 117,037 $ 339,479 $ 361,354 United Kingdom 32,079 31,862 95,446 93,496 Other International 1 40,521 29,983 115,581 83,177 Total revenue $ 185,050 $ 178,882 $ 550,506 $ 538,027 Service revenue and other revenue were 97.1% and 2.9% of total revenue for three months ended December 31, 2025, respectively, and 97.0% and 3.0% of total revenue for the three months ended December 31, 2024, respectively. Service revenue and other revenue were 97.2% and 2.8% of total revenue for nine months ended December 31, 2025, respectively, and 96.9% and 3.1% of total revenue for the nine months ended December 31, 2024, respectively. 1 No individual other international country represented 10% or more of the Companys total revenue for the three and nine months ended December 31, 2025 or 2024. Service revenue consists of communication services subscriptions and platform usage revenue and related fees from our UCaaS, CCaaS and CPaaS offerings. Subscription and Platform usag …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing