Financial Analysis

Acquisitions On May 19, 2026, the Company acquired Ekumen Inc., CR77 SRL, and Gethen GmbH (collectively referred to as Ekumen) for a purchase price of $18.4 million, including cash paid at closing of $16.8 million and contingent consideration with an acquisition-date fair value of $1.6 million. The maximum amount of potential contingent cash consideration is $2.5 million, subject to attainment of certain revenue and gross margin metrics within 12 months. Ekumen is a Buenos Aires-based Robotics and Physical AI Product Engineering group with more than 13 years of experience delivering industrial robotics solutions for leading companies across the Americas, Spain, and Germany. This acquisition significantly expands Companys capabilities to design, build and deploy production-grade robotic systems and agentic AI for enterprise clients. Assets acquired and liabilities assumed The following table summarizes the fair values of the assets acquired and liabilities assumed as of June 30, 2026. The estimated fair values are provisional and based on the information available as of the acquisition date. The Company expects to complete the purchase price allocation of Ekumen as soon as practicable but no later than one year from the acquisition date. Ekumen (in thousands) Cash, cash equivalents and restricted cash $ 2,725 Trade receivables (1) 1,553 Prepaid expenses and other current assets 80 Intangible assets 11,020 Goodwill (2) 7,728 Property and equipment, and other noncurrent assets 5 …

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Commitments and contingencies Legal Matters The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. Management evaluates each claim and provides for potential loss when the claim is probable to be paid and reasonably estimable. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular periods results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities, management believes that any future accruals with respect to these currently known contingencies would not have a material effect on the financial condition, liquidity or cash flows of the Company. There were no material amounts required to be reflected in these unaudited condensed consolidated financial statements related to contingencies. …

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Debt Revolving Credit Facility On March 15, 2022, the Company entered into a Credit Agreement (as amended, the Credit Agreement) by and among the Company, as borrower, the guarantors party thereto from time to time, the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent for the lenders. The Credit Agreement provides for a secured multi-currency revolving loan facility with an initial aggregate principal amount of up to $30.0 million, with a $10.0 million letter of credit sub-limit. The Company may increase the size of the revolving loan facility up to $50.0 million, subject to certain conditions and additional commitments from existing and/or new lenders. O n May 20, 2025, the Credit Agreement was amended to extend its maturity to March 15, 2028. At the Companys option, borrowings under the Credit Agreement accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 1.0% to 1.5%, (ii) an adjusted term Secured Overnight Financing Rate (SOFR) or adjusted the Euro Interbank Offer Rate (EURIBOR) (based on one, three or six-month interest periods) plus a margin ranging from 2.0% to 2.5%, or (iii) an adjusted daily simple SOFR rate (or SONIA rate in the case of loans denominated in pounds sterling, or SARON rate in the case of loans denominated in Swiss francs), plus a margin ranging from 2.0% to 2.5%, in each case, with the applicable margin determined based on the Companys consolidated total leverag …

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The following table shows the disaggregation of the Companys revenues by major customer location. Revenues are attributed to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Customer Location (in thousands) North America $ 74,626 $ 71,086 $ 145,649 $ 143,770 Europe 25,039 20,855 49,671 39,818 Other 8,499 9,154 16,944 17,922 Revenues $ 108,164 $ 101,095 $ 212,264 $ 201,510 The following table shows the disaggregation of the Companys revenues by main vertical markets: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Vertical (in thousands) Technology, Media and Telecom $ 34,357 $ 25,188 $ 65,116 $ 48,790 Retail 28,640 28,845 56,423 60,000 Finance 24,736 25,386 49,190 50,414 CPG/Manufacturing (1) 11,796 11,316 23,344 22,453 Healthcare and Pharma 2,109 2,556 4,263 4,961 Other 6,526 7,804 13,928 14,892 Revenues $ 108,164 $ 101,095 $ 212,264 $ 201,510 __________________________ (1) CPG stands for Consumer Packaged Goods. The following table shows the disaggregation of the Companys revenues by contract types: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Contract Type (in thousands) Time-and-material $ 100,527 $ 93,827 $ 196,066 $ 186,245 Fixed-fe …

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Stockholders equity Stock-based compensation expense Employee stock-based compensation cost recognized in the unaudited condensed consolidated statements of income was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cost of revenues $ 333 $ 564 $ 843 $ 1,134 Engineering, research, and development 290 669 744 1,812 Sales and marketing 488 1,106 1,719 2,946 General and administrative 3,318 4,378 9,577 11,568 Total stock-based compensation $ 4,429 $ 6,717 $ 12,883 $ 17,460 Stock Options 2018 Stock Plan Stock option activity under the Companys 2018 Stock Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term (in years) Options outstanding as of January 1, 2026 1,240,525 $ 3.54 $ 6,811 Options exercised $ Options outstanding as of June 30, 2026 1,240,525 $ 3.54 $ 2,655 2.6 Options vested and exercisable as of June 30, 2026 1,240,525 $ 3.54 $ 2,655 2.6 As of June 30, 2026, the Company fully recognized stock-based compensation costs related to 2018 Stock Plan options. 2020 Equity Incentive Plan As of June 30, 2026, 4.9 million shares were available for grant under 2020 Equity Incentive Plan, as amended (2020 Plan). Stock option activity under the Companys 2020 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term (in years) Options outstanding …

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Fair value Estimates of fair value of financial instruments not carried at fair value on a recurring basis are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Companys financial assets and liabilities are generally short-term in nature; therefore, the carrying value of these items approximates their fair value. The following table summarizes certain fair value information as of June 30, 2026 and December 31, 2025 for financial assets and liabilities measured at fair value on a recurring basis, as well as estimated fair values of certain other financial assets and liabilities not measured on a recurring basis: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) June 30, 2026 Financial Assets: Cash equivalents: Money market funds $ 234,309 $ 234,309 $ 234,309 $ $ Long-term investments: Non-marketable equity securities (1) $ 1,250 Financial Liabilities: Contingent consideration payable $ 1,654 $ 1,654 $ $ $ 1,654 Foreign exchange derivative liabilities $ 390 $ 390 $ $ 390 $ December 31, 2025 Financial Assets: Cash equivalents: Money market funds $ 271,513 $ 271,513 $ 271,513 $ $ Foreign exchange derivative assets $ 196 $ 196 $ $ 196 $ Long-term investments: Non-marketable equity securities (1) $ 1,250 Financial Liabilities: Contingent consideration payable $ 3,370 $ 3,370 $ $ $ 3,370 __________________________ (1) E …

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Income taxes The Company recorded income tax expense of $1.6 million and $2.0 million for the three months ended June 30, 2026 and 2025, respectively. The Companys effective tax rate was 36.1% and 27.8% for the second quarter of 2026 and 2025, respectively. The Company recorded income tax expense of $2.6 million and $1.6 million for the six months ended June 30, 2026 and 2025, respectively. The Companys effective tax rate was 65.7% and 16.2% during the six months ended June 30, 2026 and 2025, respectively. The change in the effective tax rate for the three and six months ended June 30, 2026, as compared to the same periods in 2025, was attributable mainly to non-taxable income in the prior year, higher tax expense for stock-based compensation, and additional tax expense related to prior year state tax returns. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law. The Act includes certain changes to the U.S. tax law applicable to the Company in 2026. These changes include provisions allowing accelerated tax deductions for qualified property and research expenditures, including immediate expensing for qualifying domestic research expenditures, and revisions to the U.S. taxation of profits derived from international operations. The Act did not have a material impact on the Company's consolidated financial statements for the six months ended June 30, 2026. …

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Leases A major part of the Companys lease obligations is for office real estate. The Company may also lease corporate apartments, cars and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index. Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessors cost. The Companys leases have remaining lease terms ranging from 0.2 to 5.0 years as of June 30, 2026. Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised. As of June 30, 2026 and December 31, 2025, the Company had no finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. During the three and six months ended June 30, 2026 and 2025, lease costs were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Operating lease cost $ 1,574 $ 1,458 $ 3,197 $ 2,938 Variable lease cost 223 129 356 250 Short-term lease cost 220 209 522 429 Total lease cost $ 2,017 $ 1,796 $ 4,075 $ 3,617 Supplemental information …

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Recently issued accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the FASB), in the form of Accounting Standards Updates (ASUs), to the FASBs Accounting Standards Codification (ASC). The Company will adopt these changes according to the various timetables the FASB specifies. In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This update establishes specific guidance for the recognition, measurement, and presentation of government grants received by business entities. The amendments are effective for annual reporting periods beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an annual reporting period. The Company is currently evaluating the timing of adoption and the impact of this standard on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Accounting for Internal-Use Software Costs. The update simplifies the accounting for internal-use software by eliminating the project stage framework and replacing it with a new capitalization threshold based on whether significant development uncertainty exists. Under the new guidance, costs cannot be capitalized if the software involves novel technological innovations or if significant performanc …

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Revenues Disaggregation of revenues The tables below present disaggregated revenues from contracts with customer by customer location, industries and contract-types. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors. The Company has a single reportable segment for the three and six months ended June 30, 2026 and 2025. The following table shows the disaggregation of the Companys revenues by major customer location. Revenues are attributed to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Customer Location (in thousands) North America $ 74,626 $ 71,086 $ 145,649 $ 143,770 Europe 25,039 20,855 49,671 39,818 Other 8,499 9,154 16,944 17,922 Revenues $ 108,164 $ 101,095 $ 212,264 $ 201,510 The following table shows the disaggregation of the Companys revenues by main vertical markets: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Vertical (in thousands) Technology, Media and Telecom $ 34,357 $ 25,188 $ 65,116 $ 48,790 Retail 28,640 28,845 56,423 60,000 Finance 24,736 25,386 49,190 50,414 CPG/Manufacturing (1) 11,796 11,316 23,344 …

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Segment and geographic information Operating segments are components of the Company for which separate financial information is available and is regularly reviewed and evaluated by the chief operating decision maker (CODM) to assess performance of each operating segment and to allocate resources. The Companys CODM is the Chief Executive Officer (CEO). The Company operates as a single operating segment engaged in delivery of various software development and hosting services to customers across its five main industry-based verticals: Retail, Finance, TMT, CPG/Manufacturing, and Healthcare and Pharma. The Company derives revenues from multiple locations; however, North America continues to be its main sales market. The Companys determination that it operates as a single segment is based on the financial information regularly reviewed by the CODM. The CODM assesses core operating performance and allocates operating and capital resources of the Company based on gross profit, income/(loss) from operations and net income/(loss) that are also reported on the unaudited condensed consolidated statements of income. All three metrics are used to analyze budget-to-actual variances on a monthly and quarterly basis and to decide on the allocation of operating and capital resources to a single segment or new acquisitions. Additionally, the CODM reviews operating expenses, including cost of revenues, engineering, research, and development, sales and marketing, general and administrative expen …

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Subsequent events The Company performed its subsequent event procedures through July 30, 2026, the date these unaudited condensed consolidated financial statements were issued.

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