The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties and our actual results, events or circumstances could differ materially from those described in forward-looking statements. Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled “Risk Factors” and other parts of this Quarterly Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Unless the context otherwise requires, all references in this Quarterly Report to “we,” “us,” “our,” “our company,” and “Hinge Health” refer to Hinge Health, Inc. and its consolidated subsidiaries, and references to our “common stock” include our Class A common stock and Class B common stock. Our fiscal year ends on December 31. Overview Our vision is to build a new health system that transforms outcomes, experience and costs by using technology to scale and automate the delivery of care. Hinge Health leverages software, including AI, to automate care for joint and muscle health and migraine, delivering an outstanding member experience, improved member outcomes, and cost reductions for our clients. We have designed our platform to address a broad spectrum of MSK and MSK-related care —from acute injury, to chronic pain, to post-surgical rehabilitation. Members receive personalized and automated care through our AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by our AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches. Our platform can help to ease members’ pain, improve their function, and reduce their need for surgeries, all while driving health equity by allowing members to engage in their exercise therapy sessions from anywhere and embrace movement as a way of life. We have developed an efficient go-to-market model by working directly with our partners and clients. We seek to be the most validated and the easiest to buy solution on the market. Our clients are primarily self-insured employers and include many of the nation’s leading enterprises across a broad range of industries and sizes. Within this market, we also serve many public sector self-insured employers, such as state and local city governments and labor unions. In most instances, for our self-insured clients, we partner with clients’ health plans, TPAs, PBMs, or other ecosystem entities to streamline contracting, onboarding, and billing. We also serve health plans’ fully-insured and Medicare Advantage populations and federal insurance plans. We believe that we grow efficiently because of our scalable, repeatable go-to-market model. We sell through our direct sales force and our partners. Once we contract with a client, we are most often the sole digital MSK or migraine care provider offered to their contracted lives for an average contract term of three years. For the term of each contract, we are able to enroll, engage, and re-engage the client’s eligible lives, driving a recurring, repeatable revenue model. As of June 30, 2026, we had over 60 partners. Our partners include the five largest national health plans by self-insured lives, and the top three PBMs by market share. Our software-led, AI-powered delivery model not only aims to provide a better experience for our members and a less expensive alternative for our clients, but also allows us to innovate and continuously improve our platform. Our AI-powered motion tracking technology, TrueMotion, allows us to deliver highly scalable care remotely and reduce the human hours associated with traditional physical therapy. According to our estimates based on data from 2025, our platform reduced the number of human care team hours associated with traditional physical therapy by approximately 97%. We have done this while improving our high member satisfaction over time. We are a research-led organization and routinely expand our platform with new programs, capabilities, and features. Over the last four years, we launched new programs to address six additional affected areas; launched Enso to deliver a non-addictive, non-invasive alternative for pain relief; developed HingeConnect for real-time targeted care support and external provider coordination; and integrated TrueMotion, our proprietary AI-powered motion tracking technology, to replace wearable sensors for our members. In 2022, we launched women’s pelvic health, a specialized care program within our chronic program, and, in 2023, we launched a fall prevention program for eligible lives in our Medicare Advantage population. In 2025, we launched our high-performance in-person provider network for care, HingeSelect, which allows us to now provide members with end-to-end care while further reducing costs for members, employers, and health plans. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members. 26 Our Business Model Go-to-Market Motion—Revenue Generation Process We have rapidly grown our client base, expanding to 2,929 clients as of June 30, 2026 compared to 2,359 clients as of June 30, 2025. This expansion has given us access to an increased number of contracted lives, which was 25 million as of December 31, 2025. There are two ways we increase our contracted lives: through new client additions and through accessing additional contracted lives within a current client. The majority of our revenue is generated from clients who are self-insured employers. We are increasingly diversifying our revenue through our partners into the fully-insured employers and Medicare Advantage markets (whereby the health plan is the client and purchasing entity). Our typical sales cycle is five months between initial engagement and entering into a signed contract with a client; however, our sales cycle can be more than 12 months for larger enterprise clients and fully-insured and Medicare Advantage plans. We sell an annual subscription model, whereby clients only pay for members that engage with our programs. We primarily recognize revenue ratably over the 12 months after an eligible life becomes a member, and as such our revenue has historically been highly predictable. Depending on a client’s needs, we have the ability to contract directly or through one of our many partners. Similarly, we are able to invoice a client directly or submit via claims through a client’s health plan. If a client chooses to pay via claims through a health plan, the cost typically comes directly out of their medical budget for the year and is embedded in their medical costs, rather than a separate discretionary budget. Allocation of the spend on Hinge Health to the client’s existing healthcare budget enables faster implementation as it avoids a potentially lengthy approval process. Our agreements with partners help us simplify contracting and implementation with clients. In the first half of 2026 and in 2025, the vast majority of our contracts were completed via our partners, negating the need for many clients to contract directly with us since many clients can leverage existing contracts through our partners. This is a significant strategic advantage for us as it enables implementation and launch of our platform as quickly as a few weeks after entering into a contract. As a result, most implementations are completed in a 40-100 day period. Once our platform is launched, clients only pay for the members that engage with our programs. We typically provide various performance guarantees to our clients that may include engagement thresholds, member reported outcomes, and return on investment, where we put a portion of our fees at risk. We have historically paid an immaterial amount related to these performance guarantees. Upon onboarding, a member’s paid subscription is for one year. To increase awareness within our clients’ employee bases, we have an enrollment marketing team that engages with our partners and our clients’ human resources benefits team in targeted marketing campaigns to encourage eligible lives who would benefit from our platform to enroll. We are able to bill our clients once an eligible life enrolls in our platform and performs a billable activity, in accordance with our clients’ billing arrangements. Most of our clients are billed through an engagement-based pricing model based on an annual upfront platform fee per member plus a fee per each completed billable session. We also have some clients that are billed for the entirety of the members’ annual subscriptions, and some that are billed in milestone-based payments, based on a subscription fee per member per year. The majority of new clients enter into contracts with us in the second half of each calendar year, which aligns with the typical employee benefit enrollment period. We launch our platform for most of these clients in the first half of the following calendar year. While some clients choose to sign and launch within the same year, these are generally a much smaller percentage of our business. Due to these patterns and our annual subscription-based model, the timing of our revenue has generally been predictable. Our calculated billings, however, show seasonality with fluctuations based on the timing of new client launches. Historically, our calculated billings are highest in the second quarter of the year, as this is when we are able to bill the majority of clients who entered into contracts in the preceding year. Consequently, our free cash flow is typically highest in the second or third quarter and is usually lowest in the first quarter due to increased new client onboarding expenses preceding cash inflows. We anticipate that this seasonality will continue, though may fluctuate year to year, and therefore we focus on LTM calculated billings. Given the annual subscription model and ratable revenue recognition, however, our quarterly revenue stream has historically been highly predictable and has not displayed the same seasonality trends. 27 Key Factors Affecting Our Performance Our business model delivers value for our clients by lowering care costs and driving positive member outcomes. We believe that our business performance and results of operations have been, and will continue to be, affected by many factors, including those below. While these key factors present significant opportunities, they also represent challenges that we must successfully address in order to sustain and grow our business and improve our results of operations. Ability to Grow and Retain our Client Base and Contracted Lives Adding new clients is one of the key pillars of our growth strategy. Our partners are a key part of this effort as they assist in the self-insured employer sales process with Hinge Health as their preferred partner. This partnership model allows for simplicity and speed in the contracting and implementation of new clients and provides for efficiency in our sales motion as well. While these partnerships are important and enhance our operational efficiency, we can and do engage directly with clients. In addition to self-insured employers, which currently make up the majority of our business, we also serve the fully-insured employers market and the Medicare Advantage and federal insurance plans markets. Our growth and financial results will depend on our ability to efficiently expand access to or acquire more contracted lives in the market segments where we plan to focus our growth efforts, as well as retain our existing clients. Retaining our existing clients is also integral to our success. Our software-led, AI-powered delivery model aims to provide a better experience for our members and a less expensive alternative for our clients. Once we contract with a client, we are typically the sole digital MSK or migraine care provider to their contracted lives for an average contract term of three years. Our 12-month client retention rate was 97% as of December 31, 2025. Expansion of Members within Existing Clients We also intend to grow by expanding the number of enrollments of eligible lives within our launched clients. The long-term value of our platform to our clients increases as our clients’ eligible lives increase adoption and usage of our platform. We focus on new product adoption, targeted interventions, brand awareness and marketing, and leverage our partnerships and referrals as methods of reaching more of our eligible lives. Innovation and Client Product Adoption We are committed to continuous innovation at Hinge Health. We believe the market for automating care is still in its early stages and intend to continue investing for long-term growth. We enable positive member outcomes and proven cost reductions by pairing AI-powered motion tracking technology and wearable pain relief and have continually driven innovations in automating care since 2014. These innovations include TrueMotion, our proprietary AI-powered motion tracking technology, Enso, our FDA-cleared, wearable device for lasting pain relief, and HingeConnect, our proprietary AI-driven database for real-time care interventions and external provider coordination. We also launched specialized care for women’s pelvic health and a fall prevention program to help adults aged 65 and older improve their physical abilities. In 2025, we launched HingeSelect, our high performance in-person provider network for care. In 2026, we launched our Migraine Care Program, our first expansion beyond joint and muscle pain, offering rapid drug-free pain relief, personalized trigger management, and expert-led prevention for members. All of our programs are available for use from a single application, with members having the ability to treat multiple indications at once. On August 4, 2026, we announced that we entered into a definitive agreement to acquire Cylinder Health, Inc. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026. The acquisition will combine Cylinder Health’s clinical expertise and existing market footprint with Hinge Health’s AI-powered care model and technology platform to deliver support in a single app with an integrated Gastrointestinal Care Program, expected to launch in 2027. 28 Expansion of Client Base in New Markets We see opportunities to expand beyond our current markets of self-insured and fully-insured employers, Medicare Advantage plans, and federal insurance plans. We currently primarily cover eligible lives within the United States and also offer our global program in multiple international countries, focused on clients that are United States-based multinational corporations. We are also looking to expand into additional government agencies and government healthcare programs such as Medicare and Medicaid. Sales Cycle Given our typical sales cycle, we experience seasonality in our business that has historically resulted in higher calculated billings and related costs during certain periods. A majority of clients enter contracts with us in the second half of each calendar year, in line with the typical employee benefit enrollment period. Most of these clients are launched in the first half of the following calendar year. While some clients choose to sign and launch within the same year, these clients represent a much smaller percentage of our clients. We believe that any improvements in the speed at which we can sign and launch new clients can increase our revenue in a given year. Through strategic partnerships with health plans, PBMs, TPAs, and other ecosystem entities, we have streamlined our implementation process to enable activation in a 40–100 day period compared to what we believe is a typically much longer implementation period in healthcare. Successful Management of Changes to Macroeconomic Conditions We believe our business is resilient even in difficult macroeconomic conditions given our focus on delivering positive outcomes for our members and ROI for our clients. In tougher economic periods, our business continued to see substantial growth as cost management became an even higher priority for clients. While we are monitoring the impact of evolving macroeconomic conditions, including tariffs and trade policy developments, on our business and our clients, we believe our value proposition as a cost-reducing healthcare solution remains strong. Our cost base is mostly variable, and we maintain strong operational focus with efficiency improvement targets for every function within the company. Key Metrics We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. We believe the following metrics are useful in evaluating our business. We present members and LTM average eligible lives on an annual basis as these metrics may create an inaccurate picture of our business on a quarterly basis primarily due to timing of launches and member enrollments in a given period. We present clients and LTM calculated billings on a quarterly basis. June 30, 2026 June 30, 2025 December 31, 2025 December 31, 2024 Clients 2,929 2,359 2,830 2,256 LTM calculated billings (in thousands) $ 861,776 $ 568,449 $ 671,418 $ 467,504 December 31, 2025 December 31, 2024 Members 782,890 532,326 LTM average eligible lives (in thousands) 20,105 15,747 Clients: We view this number as an important metric to assess the performance of our business as an increased number of clients drives growth, increases brand awareness, and helps provide scale to our business. Clients are defined as businesses or organizations, which we call entities, that have at least one active agreement with us at the end of a particular period. Entities that procure our platform through our partners are counted as individual clients. We do not count our partners as clients, unless they also separately have at least one active client agreement with us. When a partner has an agreement with us for their fully-insured population, that partner is deemed to be one client, despite there being multiple fully-insured employers within that entity that have access to our platform. 29 LTM Calculated Billings: We believe calculated billings on a last 12-months basis helps investors better understand our performance for a particular period given the seasonality in our model due to quarterly fluctuations based on the timing of new client launches. We anticipate that this seasonality will continue and therefore focus on LTM calculated billings. Our revenue generally does not reflect this seasonality and these quarterly fluctuations given that we recognize revenue ratably over the term that members have access to our platform. LTM calculated billings are defined as total revenue, plus the change in deferred revenue, less the change in contract assets for a given 12-month period. Members: Growth in the number of members is an indicator of penetration of our platform and programs within clients and expansion of our client base. This metric is a key driver of our calculated billings and provides an indication of our future revenue performance. We calculate the number of members at the end of a particular period based on the total number of eligible lives who have engaged with our platform in the last 12 months and whose engagements have been billed or are contractually eligible to be billed. LTM Average Eligible Lives: This represents the population to whom we can market and offer our solutions. As eligible lives can fluctuate throughout the year given changes in our clients’ populations, we take the average of the clients who are live in the first quarter to those who are live at the end of the last quarter in a given 12-month period to best determine the number of lives we had access to convert into members. Our management uses LTM average eligible lives to model the business and measure the enrollment we are able to achieve within our client base. Components of Results of Operations Revenue Revenue is the income generated from member subscription fees paid to access our technology platform to treat and prevent pain. Revenue recognition begins once a billable activity is completed and is typically ratable over the 12-month member subscription period. Due to the timing of our sales cycle, revenue from new clients contracted in a given year is largely recognized in the following year. Cost of Revenue Cost of revenue consists of costs that are related to the delivery of our platform. These costs primarily include personnel-related costs, including employee salaries, stock-based compensation, and other related expenses for our care team, support operations personnel, and site reliability engineering personnel. Cost of revenue also includes inventory costs, which are amortized over the member’s subscription period, provisions for excess and obsolete inventory, and technology support costs, which include hosting and information technology costs and amortization of internal-use software. In order to support the growth of our business and serve our members and clients, we expect our cost of revenue to increase on an absolute dollar basis as our revenue increases, and we expect our cost of revenue to fluctuate on a quarterly basis and grow on an annual basis. Gross Profit and Gross Margin Gross profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue and is affected by several factors, including the timing of the acquisition of new clients and launch of our programs, our introduction of new programs, and the extent to which we can increase the efficiency of our technology through ongoing improvements, cost reduction, and operational efficiency. We expect our gross profit to increase on an absolute dollar basis over time primarily due to an increase in revenue and we expect gross margin to fluctuate from quarter to quarter. 30 Research and Development Research and development expenses consist primarily of personnel-related costs, including employee salaries, stock-based compensation, and other related expenses for our engineering and product teams that are responsible for enhancing our platform and developing new or enhanced programs. Research and development expenses also include costs for third-party services and contractors and software-related costs. We capitalize internal-use software development costs that qualify for capitalization and appropriately reduce research and development expenses. We expect research and development expenses will increase on an absolute dollar basis as we continue to enhance our platform and develop new and enhanced programs. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related costs, including employee salaries, stock-based compensation, and other related expenses, internal and third-party sales commissions, and marketing and promotional expenses. We amortize third-party sales commissions and amortize a portion of internal sales commissions over the respective benefit periods. We expect sales and marketing expenses will increase on an absolute dollar basis as we continue to grow our business and expand into new markets, and we expect sales and marketing expenses will fluctuate on a quarterly basis to align with our member enrollment trends. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including employee salaries, stock-based compensation, and other related expenses for finance, legal, human resources, and other administrative related teams. General and administrative expenses also include third-party professional services for outside legal and accounting services, information technology and software related costs, and other corporate related expenses. We expect general and administrative expenses will increase as we continue to grow our business and incur compliance costs associated with being a publicly-traded company, including legal, audit, insurance, and consulting fees. Other Income, Net Other income, net consists primarily of interest income earned from our cash, cash equivalents, and marketable securities held in interest-bearing accounts. Provision For (Benefit From) Income Taxes Provision for (benefit from) income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions and certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Results of Operations The following tables set forth selected unaudited condensed consolidated statements of operations data and such data as a percentage of revenue for each of the periods indicated. The comparisons of our historical results are not necessarily indicative of the results that may be expected in the future, and the quarter-to-quarter comparisons are not necessarily indicative of the results to be expected for the full year or any other period. 31 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Revenue $ 212,817 $ 139,098 $ 395,124 $ 262,923 Cost of revenue (1) 28,868 41,335 56,942 64,927 Gross profit 183,949 97,763 338,182 197,996 Operating expenses: Research and development (1) 34,057 279,962 64,395 303,462 Sales and marketing (1) 81,408 147,228 150,210 193,944 General and administrative (1) 28,044 251,244 51,068 268,125 Total operating expenses 143,509 678,434 265,673 765,531 Income (loss) from operations 40,440 (580,671) 72,509 (567,535) Other income: Other income, net 3,990 4,694 7,863 9,695 Net income (loss) before income taxes 44,430 (575,977) 80,372 (557,840) Provision for (benefit from) income taxes 740 (326) 1,554 672 Net income (loss) $ 43,690 $ (575,651) $ 78,818 $ (558,512) (1)Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 1,128 $ 16,441 $ 1,965 $ 16,441 Research and development 7,118 248,809 10,551 248,809 Sales and marketing 5,965 95,050 9,969 95,050 General and administrative 4,881 230,683 8,299 230,690 Total stock-based compensation expense $ 19,092 $ 590,983 $ 30,784 $ 590,990 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (as percentage of revenue) Revenue 100 % 100 % 100 % 100 % Cost of revenue 14 % 30 % 14 % 25 % Gross profit 86 % 70 % 86 % 75 % Operating expenses: Research and development 16 % 201 % 16 % 115 % Sales and marketing 38 % 106 % 38 % 74 % General and administrative 13 % 180 % 13 % 102 % Total operating expenses 67 % 487 % 67 % 291 % Income (loss) from operations 19 % (417) % 19 % (216) % Other income: Other income, net 2 % 3 % 2 % 4 % Net income (loss) before income taxes 21 % (414) % 21 % (212) % Provision for (benefit from) income taxes — % — % — % — % Net income (loss) 21 % (414) % 21 % (212) % Note: Totals of percentage of revenue may not sum due to rounding. 32 Comparison of the Three and Six Months Ended June 30, 2026 and 2025 Revenue Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Revenue $ 212,817 $ 139,098 $ 73,719 53 % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Revenue $ 395,124 $ 262,923 $ 132,201 50 % Revenue for the three months ended June 30, 2026 increased by $73.7 million, or 53%, compared to the three months ended June 30, 2025. Revenue for the six months ended June 30, 2026 increased by $132.2 million, or 50%, compared to the six months ended June 30, 2025. The increases were primarily due to revenue growth from existing clients. Due to the timing of our sales cycle, revenue from new clients contracted in a given year is largely recognized in the following year. As such, the majority of our revenue growth during the three and six months ended June 30, 2026 came from existing clients that were contracted in 2025 or prior. The increase within existing clients was the result of retaining members within, and adding more members to, our existing member base. Cost of Revenue Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Cost of revenue $ 28,868 $ 41,335 $ (12,467) (30) % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Cost of revenue $ 56,942 $ 64,927 $ (7,985) (12) % Cost of revenue for the three months ended June 30, 2026 decreased by $12.5 million, or 30%, compared to the three months ended June 30, 2025. The decrease was due to a decrease of $15.3 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs achieved in the second quarter of 2025 in connection with the IPO, and $0.9 million in employer payroll tax expense related to stock-based compensation expense, partially offset by an increase of $2.9 million in inventory costs, net of a tariff refund of $1.7 million, and $1.4 million in hosting costs. Cost of revenue for the six months ended June 30, 2026 decreased by $8.0 million, or 12%, compared to the six months ended June 30, 2025. The decrease was due to a decrease of $14.5 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs achieved in the second quarter of 2025 in connection with the IPO, $1.9 million in personnel-related costs and $0.8 million in employer payroll tax expense related to stock-based compensation expense, partially offset by an increase of $6.6 million in inventory costs, net of a tariff refund of $1.7 million, and $2.4 million in hosting costs. Gross Profit and Gross Margin Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Gross profit $ 183,949 $ 97,763 $ 86,186 88 % Gross margin 86 % 70 % 33 Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Gross profit $ 338,182 $ 197,996 $ 140,186 71 % Gross margin 86 % 75 % Gross margin for the three months ended June 30, 2026 increased by 16 percentage points compared to the three months ended June 30, 2025. Gross margin for the six months ended June 30, 2026 increased by 11 percentage points compared to the six months ended June 30, 2025. The increases were primarily due to a decrease in stock-based compensation expense and an increase in efficiencies related to our care team operations. Operating Expenses Research and Development Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Research and development $ 34,057 $ 279,962 $ (245,905) (88) % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Research and development $ 64,395 $ 303,462 $ (239,067) (79) % Research and development expenses for the three months ended June 30, 2026 decreased by $245.9 million, or 88%, compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease of $241.7 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO. In addition, there was a decrease of $6.4 million in employer payroll tax expense related to stock-based compensation expense. This decrease was partially offset by an increase in information technology costs of $1.8 million. Research and development expenses for the six months ended June 30, 2026 decreased by $239.1 million, or 79%, compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease of $238.3 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO. In addition, there was a decrease of $5.8 million in employer payroll tax expense related to stock-based compensation expense. This decrease was partially offset by an increase in information technology costs of $2.8 million and personnel-related costs of $1.1 million. Sales and Marketing Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Sales and marketing $ 81,408 $ 147,228 $ (65,820) (45) % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Sales and marketing $ 150,210 $ 193,944 $ (43,734) (23) % 34 Sales and marketing expenses for the three months ended June 30, 2026 decreased by $65.8 million, or 45%, compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease of $89.1 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $2.3 million. These decreases in costs were offset by an increase of $13.3 million in marketing and promotion costs, $9.5 million in commissions and $3.9 million in personnel-related costs. Sales and marketing expenses for the six months ended June 30, 2026 decreased by $43.7 million, or 23%, compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease of $85.1 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $1.9 million. These decreases in costs were offset by an increase of $19.5 million in marketing and promotion costs, $16.9 million in commissions, and $6.9 million in personnel-related costs. General and Administrative Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) General and administrative $ 28,044 $ 251,244 $ (223,200) (89) % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) General and administrative $ 51,068 $ 268,125 $ (217,057) (81) % General and administrative expenses for the three months ended June 30, 2026 decreased by $223.2 million, or 89%, compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease of $225.8 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $3.4 million. These decreases in costs were offset by an increase in legal and other costs of $4.5 million to support public company compliance activities and $0.8 million in information technology costs. General and administrative expenses for the six months ended June 30, 2026 decreased by $217.1 million, or 81%, compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease of $222.4 million in stock-based compensation expense, which was related to the satisfaction of certain vesting criteria for RSUs and PRSUs achieved in the second quarter of 2025 in connection with the IPO and employer payroll tax expense related to stock-based compensation expense of $3.1 million. These decreases in costs were offset by an increase in legal and other costs of $5.5 million to support public company compliance activities, $1.6 million in information technology costs and $1.3 million in personnel-related costs. Other Income, Net Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Other income, net $ 3,990 $ 4,694 $ (704) (15) % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Other income, net $ 7,863 $ 9,695 $ (1,832) (19) % 35 Other income, net for the three months ended June 30, 2026 decreased $0.7 million, compared to the three months ended June 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period. Other income, net for the six months ended June 30, 2026 decreased $1.8 million, compared to the six months ended June 30, 2025. The decrease was primarily due to lower cash, cash equivalents, and marketable securities balances held in interest-bearing accounts, which resulted in less interest income during the period. Provision for Income Taxes Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Provision for (benefit from) income taxes $ 740 $ (326) $ 1,066 327 % Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Provision for income taxes $ 1,554 $ 672 $ 882 131 % Provision for income taxes for the three months ended June 30, 2026 increased by $1.1 million compared to the three months ended June 30, 2025. Provision for income taxes for the six months ended June 30, 2026 increased by $0.9 million compared to the six months ended June 30, 2025. The increases were primarily due to higher pre-tax income for the three and six months ended June 30, 2026, compared to significant pre-tax losses during the three and six months ended June 30, 2025, partially offset by a lower estimated annual effective tax rate in 2026. The provision for income taxes during the three and six months ended June 30, 2026 and 2025 included federal, state, and foreign income tax components. Non-GAAP Financial Measures In addition to our results prepared in accordance with GAAP, we believe the following non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP income from operations and operating margin, and free cash flow and free cash flow margin included in this Quarterly Report, provide users of our financial information with additional useful information in evaluating our performance and liquidity and allows them to more readily compare our results across periods without the effect of non-cash and other items as detailed below. Additionally, our management and board of directors use our non-GAAP financial measures to evaluate our performance and liquidity, identify trends and make strategic decisions. There are limitations to the use of the non-GAAP financial measures presented in this Quarterly Report. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Our non-GAAP financial measures should not be considered in isolation or as alternatives to gross profit, gross margin, income from operations, net cash provided by (used in) operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Non-GAAP Gross Profit and Gross Margin We define non-GAAP gross profit as gross profit presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including stock-based compensation expense, employer payroll tax expense related to stock-based compensation, and amortization of intangible assets. We define non-GAAP gross margin as non-GAAP gross profit divided by revenue. The principal limitation of non-GAAP gross profit and non-GAAP gross margin is that they exclude significant expenses that are required by GAAP to be recorded in our unaudited condensed consolidated financial statements, including non-cash expenses, and the impact of non-recurring charges that we do not consider to be indicative of our ongoing core operations. 36 The following table provides a reconciliation of non-GAAP gross profit and non-GAAP gross margin to gross profit and gross margin, which are the most directly comparable financial measures presented in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) GAAP gross profit $ 183,949 $ 97,763 $ 338,182 $ 197,996 GAAP gross margin 86 % 70 % 86 % 75 % Non-GAAP adjustments: Stock-based compensation expense (1) 1,128 16,441 1,965 16,441 Employer payroll tax expense related to stock-based compensation 45 893 150 893 Amortization of intangible assets 224 225 449 406 Non-GAAP gross profit $ 185,346 $ 115,322 $ 340,746 $ 215,736 Non-GAAP gross margin 87 % 83 % 86 % 82 % (1)For further stock-based compensation expense details, see the section titled “Non-GAAP Income From Operations and Operating Margin” below. Non-GAAP Income From Operations and Operating Margin We define non-GAAP income from operations as income (loss) from operations presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets and acquisition-related expenses. We define non-GAAP operating margin as non-GAAP income from operations divided by revenue. The principal limitation of non-GAAP income from operations and non-GAAP operating margin is that they exclude significant expenses that are required by GAAP to be recorded in our unaudited condensed consolidated financial statements, including non-cash expenses, and the impact of non-recurring charges that we do not consider to be indicative of our ongoing core operations. 37 The following table provides a reconciliation of non-GAAP income from operations and operating margin to income from operations (loss) and operating margin, the most directly comparable financial measures presented in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) GAAP income (loss) from operations $ 40,440 $ (580,671) $ 72,509 $ (567,535) GAAP operating margin 19 % (417) % 19 % (216) % Non-GAAP adjustments: Stock-based compensation expense (1) 19,092 590,983 30,784 590,990 Employer payroll tax expense related to stock-based compensation 1,316 14,227 2,800 14,227 Amortization of intangible assets 224 225 449 406 Acquisition-related expenses 440 1,337 1,134 2,968 Non-GAAP income from operations $ 61,512 $ 26,101 $ 107,676 $ 41,056 Non-GAAP operating margin 29 % 19 % 27 % 16 % (1)Stock-based compensation expense: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 1,128 $ 16,441 $ 1,965 $ 16,441 Research and development 7,118 248,809 10,551 248,809 Sales and marketing 5,965 95,050 9,969 95,050 General and administrative 4,881 230,683 8,299 230,690 Total stock-based compensation expense $ 19,092 $ 590,983 $ 30,784 $ 590,990 Free Cash Flow and Free Cash Flow Margin We define free cash flow as net cash provided by operating activities plus cash used for employer payroll taxes at IPO related to stock-based compensation less purchases of property, equipment and software (including capitalized internal-use software). We believe that free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by our operations that, after taking into account the employer payroll taxes paid as part of the vesting of shares at IPO as well as investments in property, equipment and software (including capitalized internal-use software), can be used for strategic initiatives, including investing in our business, acquisitions, and strengthening our financial position. The principal limitation of free cash flow is that it does not represent the total increase or decrease in our cash balance for a given period. We define free cash flow margin as free cash flow divided by revenue. 38 The following table provides a reconciliation of free cash flow and free cash flow margin to net cash provided by operating activities and operating cash flow margin, the most directly comparable financial measures presented in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) Net cash provided by operating activities $ 101,413 $ 20,227 $ 144,496 $ 25,150 Operating cash flow margin 48 % 15 % 37 % 10 % Adjustment for employer taxes related to pre-IPO stock-based compensation — 14,227 — 14,227 Less purchases of property, equipment and software (including capitalized internal use software) (1,854) (1,827) (3,384) (2,584) Free cash flow $ 99,559 $ 32,627 $ 141,112 $ 36,793 Free cash flow margin 47 % 23 % 36 % 14 % Liquidity and Capital Resources We have historically financed our operations primarily through payments received from our clients and net proceeds from the sale of our redeemable convertible preferred stock. As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $286.2 million, and marketable securities of $187.9 million. Our cash and cash equivalents consist of cash in bank accounts, money market accounts, and other highly liquid investments with original maturities of 90 days or less from the date of purchase. Our marketable securities consist of U.S. treasury securities, investment-grade corporate bonds, government agency securities, and commercial paper. Our primary uses of cash are personnel-related, inventory and selling, marketing and related costs. We believe our existing cash, cash equivalents, and marketable securities will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months, though we may require additional capital resources in the future. Our future capital requirements will depend on many factors, including our growth rate, headcount, sales and marketing activities, research and development activities, the introduction of new features and programs, tax withholding on settlement of RSUs and PRSUs and acquisitions. If we require additional capital, we may not be able to raise such capital on reasonable terms, or at all. Cash Flows The following table summarizes our cash flows for the periods indicated: Six Months Ended June 30, 2026 2025 (in thousands) Net cash provided by operating activities $ 144,496 $ 25,150 Net cash provided by (used in) investing activities 76,699 (17,310) Net cash used in financing activities (143,326) (71,454) Operating Activities Net cash provided by operating activities was $144.5 million for the six months ended June 30, 2026. This primarily related to our net income of $78.8 million adjusted for non-cash charges of $72.5 million and offset by net cash outflows of $6.8 million due to changes in operating assets and liabilities. The change in operating assets and liabilities was driven by an increase in accounts receivable of $61.0 million, an increase in deferred commissions of $49.1 million, an increase in prepaid expense and other current assets of $11.6 million, a decrease in operating lease liabilities of $2.2 million, and an increase in inventory of $1.1 million, partially offset by an increase in deferred revenue of $115.6 million, and an increase in accounts payable and accrued liabilities of $2.6 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors. 39 Net cash provided by operating activities was $25.1 million for the six months ended June 30, 2025. This primarily related to our net loss of $558.5 million and net cash outflows of $34.7 million due to changes in operating assets and liabilities, adjusted for non-cash charges of $618.4 million. The change in operating assets and liabilities was driven by an increase in accounts receivable of $59.6 million, an increase in deferred commissions of $27.7 million, an increase in prepaid expenses and other current assets of $6.6 million, and an increase in inventory of $3.1 million, partially offset by an increase in deferred revenue of $57.5 million and an increase in accounts payable and accrued liabilities of $7.0 million. The changes were primarily due to the growth of our business, timing of cash receipts from clients, and timing of cash payments to our vendors. Investing Activities Net cash provided by investing activities was $76.7 million for the six months ended June 30, 2026, driven by net maturities of marketable securities of $80.1 million, partially offset by $3.4 million used for purchases of property, equipment and capitalized internal-use software. Net cash used in investing activities was $17.3 million for the six months ended June 30, 2025, driven by net purchases of marketable securities of $10.7 million, $4.0 million used to purchase a business and $2.6 million used for purchases of property, equipment and capitalized internal-use software. Financing Activities Net cash used in financing activities was $143.3 million for the six months ended June 30, 2026, consisting of $131.5 million related to the share repurchase program described below, and $19.8 million used for employee taxes related to the net settlement of RSUs and PRSUs, partially offset by $7.3 million in proceeds from our employee share purchase plan and $0.7 million in proceeds from the exercise of employee stock options. Net cash used in financing activities was $71.5 million for the six months ended June 30, 2025, consisting of $272.3 million used for employee taxes related to the net settlement of RSUs and PRSUs, $50.0 million related to the repurchase of Series E preferred stock and payments of deferred offering costs of $10.1 million, partially offset by proceeds of $255.7 million from the issuance of Class A common stock in connection with the IPO, net of issuance costs and $4.9 million in proceeds related to the repayment of non-recourse loans. Cash Management We manage our operating cash activities through banking relationships with our domestic and international subsidiaries. We diversify our cash deposits across well-established financial institutions to reduce our exposure to counterparty and concentration risk. As our business continues to grow, we expect to maintain a strong cash balance. We expect to maintain a diversified cash management strategy to primarily include money market funds, highly-liquid debt instruments such as U.S. treasury securities, investment-grade corporate bonds, government agency securities, and commercial paper to reduce our exposure on banking deposits. Share Repurchase Program On November 10, 2025, our board of directors approved a share repurchase program with authorization to purchase up to $250 million of our Class A common stock. As of July 29, 2026, we had repurchased an aggregate of $196.5 million of our Class A common stock under the program. On July 29, 2026, our board of directors approved an increase to the program, resulting in $300.0 million of our Class A common stock available for future repurchase, for a total aggregate amount authorized under the program of $496.5 million as of such date. 40 Repurchases under the share repurchase program may be made in the open market, in privately negotiated transactions, or by other methods, with the amount and timing of repurchases to be determined at our discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our shares under this authorization. The share repurchase program does not obligate us to acquire any particular amount of Class A common stock, has no expiration date, and may be modified, suspended, or terminated at any time at the discretion of our board of directors. We expect to fund repurchases with existing cash and cash equivalents and cash from operations. Lease Obligations We enter into various non-cancellable lease agreements for certain office space in the normal course of business. Our non-cancellable lease obligations as of June 30, 2026 were $5.9 million, of which $4.3 million is payable within 12 months. Other Obligations We enter into various non-cancellable agreements that are enforceable and legally binding, including the purchase of cloud hosting arrangements. Our noncancellable obligations as of June 30, 2026 were composed of $6.9 million for the remainder of 2026, $9.6 million for 2027, $9.8 million for 2028 and $2.9 million for 2029. Off-Balance Sheet Arrangements We did not have during the years presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Critical Accounting Policies and Estimates Our unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of the unaudited condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected. There have been no material changes to our critical accounting policies and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025. Recent Accounting Pronouncements See Note 2 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for more information about recent accounting pronouncements, the timing of their adoption, and our assessment, to the extent we have made one yet, of their potential impact on our financial condition and results of operations. 41 JOBS Act Accounting Election We are an emerging growth company, as defined in the JOBS Act, and, for so long as we continue to be an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that would have been applicable were we a public company that was not an emerging growth company. Such exemptions include, but are not limited to, the exemption to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, the exemption from holding a non-binding advisory vote on executive compensation, and the exemption from stockholder approval of any golden parachute payments not previously approved. In addition, pursuant to Section 107 of the JOBS Act, as an emerging growth company, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies. Under currently applicable rules and regulations, based on the market value of our equity securities held by non-affiliates as of June 30, 2026, we expect to qualify as a large accelerated filer and to cease to be an emerging growth company as of December 31, 2026, after which we will no longer be able to take advantage of these exemptions or the extended transition period for complying with new or revised accounting standards.