Financial Analysis

"Business Acquisitions WorkFusion, Inc. On February 5, 2026 , we acquired all outstanding equity of WorkFusion, Inc. (""WorkFusion""), a U.S.-based software company specializing in AI agents for financial crimes compliance. With this acquisition, we expand our portfolio of agentic AI-powered solutions for the financial services and banking industries. The total purchase consideration was $189.5 million, consisting of initial cash consideration totalling $160.0 million and contingent consideration with an acquisition-date fair value of $29.5 million. The WorkFusion acquisition was accounted for as a business combination. The following table summarizes the allocation of purchase price to the assets acquired and liabilities assumed as of the acquisition date (in thousands): February 5, 2026 Intangible assets $ 92,400 Deferred tax asset 30,436 Other net assets 8,534 Goodwill 58,157 Total $ 189,527 The following table sets forth the identifiable intangible assets acquired and their estimated useful lives as of the acquisition date: Fair Value (in thousands) Estimated Useful Life (in years) Customer relationships $ 48,900 7.0 Developed technology 43,500 5.0 Total $ 92,400 The acquisition of WorkFusion generated goodwill of $58.2 million representing expected synergies and acquired skilled workforce. None of this goodwill is deductible for tax purposes. Peak AI Limited On March 7, 2025 , we acquired all outstanding equity of Peak AI Limited (""Peak""), a UK-based software company th …

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"Commitments and Contingencies Letters of Credit We had a total of $4.0 million and $3.0 million in letters of credit outstanding in favor of certain landlords for office space as of July 31, 2026 and January 31, 2026, respectively. These letters of credit renew annually and expire on various dates through fiscal year 2030. Indemnification In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, vendors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of agreements, from services to be provided by us, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments we could be required to make under these indemnification provisions is indeterminable. As of July 31, 2026 and January 31, 2026, we have not accrued a liability for these indemnification arrangements because the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements was remote. Defined Contribution Plans We sponsor retirement plans for qualifying employees, including a 401(k) plan in the U.S. and defined contribution plans in certain other countries, …

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The following tables summarize revenue by geographical region (dollars in thousands): Three Months Ended July 31, 2026 2025 Amount Percentage of Revenue Amount Percentage of Revenue Americas (1) $ 205,042 50 % $ 181,081 50 % Europe, Middle East, and Africa 136,110 33 % 113,026 31 % Asia-Pacific 69,104 17 % 67,621 19 % Total revenue $ 410,256 100 % $ 361,728 100 % (1) Revenue from the U.S. represented 44% and 47% of our total revenue for the three months ended July 31, 2026 and 2025, respectively. Six Months Ended July 31, 2026 2025 Amount Percentage of Revenue Amount Percentage of Revenue Americas (1) $ 404,769 49 % $ 342,488 48 % Europe, Middle East, and Africa 273,264 33 % 236,690 33 % Asia-Pacific 150,605 18 % 139,174 19 % Total revenue $ 828,638 100 % $ 718,352 100 % (1) Revenue from the U.S. represented 44% and 45% of our total revenue for the six months ended July 31, 2026 and 2025, respectively.

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"Equity Incentive Plans and Stock-Based Compensation 2021 Stock Plan In April 2021, prior to and in connection with our initial public offering (""IPO""), we adopted our 2021 Equity Incentive Plan (the ""2021 Plan""), which provides for grants of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards (""RSAs""), restricted stock units (""RSUs""), performance stock units (""PSUs""), and other forms of awards. As of July 31, 2026, we have reserved 256.7 million shares of our Class A common stock to be issued under the 2021 Plan. The number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on February 1 of each year for a period of ten years, which began on February 1, 2022 and continues through February 1, 2031, in an amount equal to (1) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31, or (2) a lesser number of shares determined by our board of directors no later than the February 1 increase. 2021 Employee Stock Purchase Plan In April 2021, prior to and in connection with the IPO, we adopted our 2021 Employee Stock Purchase Plan (the ESPP). As of July 31, 2026, the ESPP authorizes the issuance of 38.1 million shares of our Class A common stock under purchase rights granted to our employees. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 …

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Fair Value Measurement The following tables present the fair value hierarchy of our financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2026 and January 31, 2026 (in thousands): As of July 31, 2026 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 223,575 $ $ $ 223,575 Treasury bills 29,901 29,901 Commercial paper 9,956 9,956 Total cash equivalents 253,476 9,956 263,432 Treasury bills and U.S. government securities 579,403 579,403 Corporate bonds 190,777 190,777 Commercial paper 24,518 24,518 Yankee bonds 2,913 2,913 Total marketable securities 579,403 218,208 797,611 Other investments carried at fair value 14,112 14,112 Total $ 832,879 $ 228,164 $ 14,112 $ 1,075,155 Financial liabilities: Contingent consideration $ $ $ 30,392 $ 30,392 Total $ $ $ 30,392 $ 30,392 As of January 31, 2026 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 279,658 $ $ $ 279,658 Treasury bills 21,982 21,982 Total cash equivalents 301,640 301,640 Treasury bills and U.S. government securities 620,155 620,155 Corporate bonds 160,877 160,877 Commercial paper 34,390 34,390 Yankee bonds 2,897 2,897 Total marketable securities 620,155 198,164 818,319 Other investments carried at fair value 14,202 14,202 Total $ 921,795 $ 198,164 $ 14,202 $ 1,134,161 Financial liabilities: Contingent consideration $ $ $ 1,532 $ 1,532 Total $ $ $ 1,532 $ 1,532 Our money market funds and treasury bills and U.S. government securities are classified …

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Intangible Assets and Goodwill Intangible Assets, Net Acquired intangible assets, net consisted of the following as of July 31, 2026 (dollars in thousands): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted-Average Remaining Useful Life (years) Developed technology $ 80,519 $ (33,018) $ 47,501 4.3 Customer relationships 69,567 (16,363) 53,204 5.9 Trade names and trademarks 815 (516) 299 1.7 Other intangibles 1,231 (756) 475 5.4 Total $ 152,132 $ (50,653) $ 101,479 Acquired intangible assets, net consisted of the following as of January 31, 2026 (dollars in thousands): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted-Average Remaining Useful Life (years) Developed technology $ 37,716 $ (28,021) $ 9,695 3.1 Customer relationships 20,910 (11,546) 9,364 2.3 Trade names and trademarks 826 (430) 396 2.2 Other intangibles 1,231 (697) 534 5.7 Total $ 60,683 $ (40,694) $ 19,989 We record amortization expense associated with acquired developed technology in cost of licenses revenue and cost of subscription services revenue, trade names and trademarks in sales and marketing expense, customer relationships in sales and marketing expense, and other intangibles in general and administrative expense in the condensed consolidated statements of operations. Amortization of acquired intangible assets was $6.0 million and $2.3 million for the three months ended July 31, 2026 and 2025, respectively, and $10.6 million and $3.7 millio …

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"Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. Each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate may change due to several factors, including the relative amount of income we earn in various jurisdictions and certain book-tax differences. For the three and six months ended July 31, 2026, we had a provision for income taxes of $16.8 million and $35.2 million, respectively, reflecting an effective tax rate of 31.7% and 37.5%, respectively . Our effective tax rate for these periods differed from the U.S. federal statutory rate primarily as a result of U.S. tax on foreign earnings and tax rate differences between the U.S. and foreign countries. For the three and six months ended July 31, 2025, we had a provision for income taxes of $1.7 million and $4.6 million, respectively, reflecting an effective tax rate of 52.4% and (27.9)%, respectively . Our effective tax rate for these periods differed from the U.S. federal statutory rate primarily as a result of not recognizing deferred tax expense due to a full valuation allowance on U.S. and Romania deferred tax assets (""DTAs"") and due to tax rate differences between the U.S. and foreign countries. The realization of tax benefits of net DTAs is dependent upon future levels of taxable income of an approp …

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Operating Leases Our operating leases consist of real estate and vehicles and have remaining lease terms of one year to 12 years. F or purposes of calculating operating lease liabilities, lease terms are deemed to include options to extend the lease when it is reasonably certain that we will exercise those options. Our operating lease arrangements do not contain any material restrictive covenants or residual value guarantees. Lease costs are presented below (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Operating lease cost $ 4,344 $ 5,314 $ 8,661 $ 8,691 Short-term lease cost 693 696 1,318 1,356 Variable lease cost 896 711 1,664 1,649 Total $ 5,933 $ 6,721 $ 11,643 $ 11,696 The following table represents the weighted-average remaining lease term and discount rate as of the periods presented: As of July 31, 2026 January 31, 2026 Weighted-average remaining lease term (years) 8.7 9.1 Weighted-average discount rate 7.1 % 7.2 % Future undiscounted lease payments for our operating lease liabilities as of July 31, 2026 were as follows (in thousands): Amount Remainder of year ending January 31, 2027 $ 7,525 Year ending January 31, 2028 15,978 2029 12,698 2030 11,412 2031 10,643 Thereafter 48,304 Total operating lease payments 106,560 Less: imputed interest (26,800) Total operating lease liabilities $ 79,760 As of July 31, 2026, we had non-cancelable commitments in the amount of $10.5 million primarily related to operating leases of real est …

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"Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures . ASU No. 2024-03 requires additional disclosure on specific expense categories included in the expense captions presented on the statements of operations, and may be applied prospectively or retrospectively. ASU No. 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and for interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, I ntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU No. 2025-06 amends certain aspects of the accounting for and disclosure of software costs under Accounting Standards Codification (""ASC"") 350-40, and is effective for annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements."

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Related Party Transactions We have at times made use of an aircraft which is owned by Daniel Dines, our CEO, through a special purpose limited liability company and which is operated by a third-party aircraft management company. Mr. Dines, through this special purpose limited liability company, bears all associated operating, personnel, and maintenance costs. For the six months ended July 31, 2026 and 2025, we incurred expenses of $1.2 million and $0.9 million, respectively, in connection with our business use of the aircraft.

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Revenue Recognition Disaggregation of Revenue The following tables summarize revenue by geographical region (dollars in thousands): Three Months Ended July 31, 2026 2025 Amount Percentage of Revenue Amount Percentage of Revenue Americas (1) $ 205,042 50 % $ 181,081 50 % Europe, Middle East, and Africa 136,110 33 % 113,026 31 % Asia-Pacific 69,104 17 % 67,621 19 % Total revenue $ 410,256 100 % $ 361,728 100 % (1) Revenue from the U.S. represented 44% and 47% of our total revenue for the three months ended July 31, 2026 and 2025, respectively. Six Months Ended July 31, 2026 2025 Amount Percentage of Revenue Amount Percentage of Revenue Americas (1) $ 404,769 49 % $ 342,488 48 % Europe, Middle East, and Africa 273,264 33 % 236,690 33 % Asia-Pacific 150,605 18 % 139,174 19 % Total revenue $ 828,638 100 % $ 718,352 100 % (1) Revenue from the U.S. represented 44% and 45% of our total revenue for the six months ended July 31, 2026 and 2025, respectively. Deferred Revenue During the six months ended July 31, 2026 and 2025, we recognized $369.2 million and $362.6 million of revenue that was included in the deferred revenue balance as of January 31, 2026 and 2025, respectively . Remaining Performance Obligations Our remaining performance obligations are comprised of licenses, subscription services, and professional services not yet delivered. As of July 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,377.6 million, which con …

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"Summary of Significant Accounting Policies Our significant accounting policies are discussed in greater scope and detail in Note 2, Summary of Significant Accounting Policies , in the notes to consolidated financial statements included in the 2026 Form 10-K. There have been no significant changes to such policies during the six months ended July 31, 2026. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and applicable regulations of the SEC regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the accompanying notes thereto for the fiscal year ended January 31, 2026, which are included in the 2026 Form 10-K. The unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of our financial information. The unaudited condensed consolidated financial statements inclu …

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Stockholders Equity Stock Repurchases On September 1, 2023, our board of directors approved a stock repurchase program which authorized the repurchase from time to time of up to $500.0 million of our outstanding shares of Class A common stock. This authorization was originally scheduled to expire on March 1, 2025. On August 30, 2024, our board of directors authorized the repurchase of an additional $500.0 million of our Class A common stock. These authorizations were fulfilled during the first quarter of fiscal year 2027, and on March 5, 2026 , our board of directors authorized the repurchase of an additional $500.0 million of our Class A common stock. The current authorization may be suspended or discontinued at any time and does not have a specified expiration date. Repurchases under the program may be effected through open market purchases, privately-negotiated transactions, or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternate uses of capital. We repurchased 22.8 million and 30.2 million shares of our Class A common stock at an average price of $11.28 and $10.87 per share (inclusive of brokerage commission) during the six months ended July 31, 2026 and 2025, respectively. For the six months ended July 31, 2026 and 20 …

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Subsequent Events On September 3, 2026, we granted a total of 5.3 million PSUs to certain members of senior management under the 2021 Plan, subject to (i) market conditions tied to two stock price hurdles that must be satisfied by July 31, 2029 and July 31, 2031, respectively; and (ii) service-based vesting requirements.

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