The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and related notes appearing in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). As discussed in the section titled “Special Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included under Part II, Item 1A below. 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 report to “Amplitude,” the “Company,” “we,” “our,” “us,” or similar terms refer to Amplitude, Inc. and its subsidiaries. Overview Amplitude is the leading AI Analytics Platform that helps businesses understand how people are using their products so they can build amazing digital experiences that increase acquisition, monetization and retention and drive revenue growth. We work with more than 5,200 paying customers of various sizes and stages of digital maturity, across many industries, including the teams behind some of the most beloved digital products in the world. We have experienced steady growth in recent years, with approximately 795 employees in ten global offices. At the core of our AI Analytics Platform is our Behavioral Graph, a proprietary, purpose-built behavioral database that is the largest of its kind. Our Behavioral Graph instantly finds patterns, makes recommendations, and connects customer actions along their journeys to the right business outcomes, like engagement, growth, and loyalty. We have also re-architected Amplitude to be AI-led from the ground up. This transformation integrates AI across our platform to deliver intelligent insights, automate complex workflows, and enable adaptive experiences for our customers. With built-in AI agents and infrastructure—not bolted-on features—Amplitude helps teams reduce guesswork and drive durable business growth. Consistently ranked #1 in multiple categories by G2, Amplitude offers a comprehensive and easy-to-use platform, which includes Product and Marketing Analytics, Session Replay, Feature and Web Experimentation, Activation, Guides and Surveys, AI Agents, Amplitude Model Context Protocol ("MCP"), AI Visibility, AI Feedback, Agent Analytics, Global Agent and Specialized Agents. Key Factors Affecting Our Performance We believe that the growth and future success of our business depends on many factors. While each of these factors presents significant opportunities for our business, they also pose important challenges that we must successfully address in order to sustain our growth and improve our results of operations. Customer Acquisition and Expansion We believe that our AI Analytics Platform can help businesses across industries, company size, and stages of digital maturity drive better business outcomes through optimizing the digital product experience of their customers. We are focused on continuing to acquire new customers and expanding our relationships with our existing installed base to support our long-term growth. We have invested, and expect to continue to invest, in our sales and marketing efforts to drive customer acquisition. Historically, we have been successful at efficiently growing our customer base and number of customers who have entered into and grown into larger subscriptions with us as evidenced by the growth of our number of paying customers and number of customers that represent greater than $100,000 in annual recurring revenue (“ARR”). As of June 30, 2026 and 2025, we had 824 and 634 customers, respectively, that each represented greater than $100,000 in ARR, representing a 30% increase year-over-year. We believe our relationship with some of the world’s most beloved product-led companies has resulted in increased brand credibility and access to many attractive growth opportunities. As of June 30, 2026 and 2025, our dollar-based net retention rate for the trailing 12 months ("TTM") was 105% and 99%, respectively, for paying customers. Additionally, our ending dollar-based net retention rate for paying customers as of June 30, 2026 and 2025, was 103% and 104%, respectively. Investments in Platform We believe that our customers will demand additional features and capabilities beyond our current platform offerings to assist them in optimizing their digital products. We have a history of, and will continue to invest significantly in, developing and delivering 23 innovative products, features, and functionality targeted at our core customer base. In addition, we may choose to add new products and offerings or enhance our platform capabilities through acquisitions. In recent years, we have acquired companies to improve and expand our platform capabilities. In October 2024, we acquired CommandAI to provide intuitive AI-powered user assistance to make complex software easier to adopt and navigate. In June 2025, we completed an asset acquisition of Inari to accelerate our AI roadmap, leveraging their team’s deep expertise in applied AI. In July 2025, we completed a talent acquisition of June.io, a startup focused on empowering early‑stage product teams, to contribute to our next generation of AI-driven analytics experiences. In July 2025, we completed the acquisition of Kraftful, integrating Kraftful's Voice of Customer Technology to unite quantitative user behavioral data and qualitative user feedback into Amplitude. In January 2026, we completed the acquisition of InfiniGrow Ltd., an AI marketing analytics company that helps organizations measure, forecast, and optimize the impact of marketing on revenue. In May 2026, we acquired the brand, perpetual non-exclusive license to use certain proprietary technology, and customers of Statsig to enhance our warehouse native experiment and feature flag initiatives. Going forward, we may pursue both strategic partnerships and acquisitions that we believe will be complementary to our business, accelerate customer acquisition, increase usage of our platform, and/or expand our platform offerings in our core markets. Investing for Growth Our investment for growth encompasses multiple critical areas, including product expansion, our sales force, sales support, partner ecosystem, and our international presence. We continue to evolve our technology and platform to ensure that we are best serving our customers’ needs. For example, in February 2025, following our acquisition of CommandAI, we rolled out Guides and Surveys to help organizations improve onboarding and user engagement. In May 2025, we rolled out a suite of new marketing capabilities that give visibility into the entire customer journey, enabling marketers to increase conversion, improve ROI, and target audiences more precisely. In June 2025, we introduced Amplitude AI Agents, which turned Amplitude into a team of specialized experts that works 24/7 to analyze user behavior, run experiments, and optimize digital experiences. In October 2025, we launched Amplitude MCP server that enables teams to analyze product data, experiments, and user behavior using conversational AI. In October 2025, we launched AI Visibility, a new capability that gives marketers unprecedented insight into how their brand shows up in AI search results, accompanied by recommendations on how to improve it based on a company’s actual data. In November 2025, we launched AI Feedback, a customer feedback engine with a proprietary LLM process that automatically turns raw input into prioritized, actionable insights. In December 2025, we launched Amplitude's Automated Insights that can replicate an expert's standard analysis process in a fraction of the time. In January 2026, we launched Global Agent, a fully automated AI Analyst. Global Agent is designed to do anything a human can do in Amplitude, from creating a cohort to deploying a guide in a few minutes. In the same month, we also launched Specialized Agents, including dashboard monitoring agent, feedback agent, website conversion agent, and session replay agent. In April 2026, we launched Amplitude AI Assistant, an embedded support agent that answers questions with behavioral data and user insights, guides users through tasks, and shows product teams whether problems are truly fixed. In May 2026, we launched the Amplitude AI plugin, which bundles the Amplitude MCP server with more than 25 reusable skills so external AI agents can analyze data, plan instrumentation, and monitor experiments directly. We also began a closed beta of Wave, our product agent that analyzes usage data and code to surface what to build next, orchestrate the work, and measure the impact. In June 2026, we launched Zoning Insights, which overlays conversion metrics directly on live pages so teams can see which elements drive engagement and revenue. We believe the evolution of our technology and platform will lead to increased retention and positive customer referrals that will continue to generate expansion opportunities within our existing installed base and from new customers. We plan to continue to invest in our research and development organization to maintain and strengthen our market leadership position, and we believe that attracting the best engineering and AI talent will continue to be critical to our long-term success. As we continue to invest in our platform, we expect our research and development expenses, including those capitalized for internal-use software, to increase in dollar amounts over time. Over the longer term, we believe these expenses as a percentage of revenue will decrease, though these expenses as a percentage of revenue could increase in the short term. We will continue to make strategic investments in our sales efforts to pursue attractive growth opportunities and ensure customer success, particularly with larger enterprises where we have experienced significant traction to date. We also plan to invest in our channel partners, such as independent software vendors and resellers, to extend our reach faster than we could do on our own. As we continue to invest in our sales efforts, we expect our sales and marketing expenses to increase in dollar amounts over time. Over the longer term, we believe these expenses as a percentage of revenue will decrease, though these expenses as a percentage of revenue could increase in the short term. Finally, we see opportunities to expand offices and headcount internationally to better serve targeted international markets where we believe we have a significant opportunity to accelerate existing traction and success. For the three and six months ended June 30, 2026, 40% of our revenue was generated outside the United States. As we seek to expand our business globally, we may be adversely affected by global economic and political instability. For example, as a result of the Russia-Ukraine War and related sanctions, we have terminated certain relationships with customers in Russia. Some of the businesses of our customers in the impacted regions have also experienced disruptions that have affected their ability to pay for our services. See “Risk Factors–Risks Related to 24 Our Business and Industry–Our operations are international in scope, and we plan further geographical expansion, creating a variety of operational challenges.” Key Business Metrics We review a number of operating and financial metrics, including the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies who may calculate similarly-titled metrics in a different way. As of June 30, 2026 2025 YoY Growth (dollar values in millions) Annual Recurring Revenue (ARR) $ 410 $ 335 22% Dollar-Based Net Retention Rate (TTM) 105 % 99 % Paying Customers with ARR of $100,000 or greater 824 634 30% Annual Recurring Revenue We define ARR as the annual recurring revenue of subscription agreements at a point in time based on the terms of customers’ contracts, including certain premium services that are subject to contractual subscription terms and Plus customers that we expect to recur. ARR should be viewed independently of revenue, and does not represent our U.S. GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal rates. ARR is also not intended to be a forecast of revenue. Dollar-Based Net Retention Rate We calculate our dollar-based net retention rate to measure our ability to retain and expand ARR from our customers and believe it is an indicator of the value our platform delivers to customers and our future business opportunities. Our net retention rate compares our ARR from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and attrition. We calculate dollar-based net retention rate as of a period-end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end (the “Prior Period ARR”). We then calculate the ARR from these same customers as of the current period-end (the “Current Period ARR”). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers as well as any overage charges in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate (“NRR”). We then calculate the average of the trailing 12-month dollar-based net retention rates, to arrive at the dollar-based net retention rate (“NRR (TTM)”). Paying Customers with ARR of $100,000 or greater For purposes of customer count, a customer is defined as an entity that has a unique Dun & Bradstreet Global Ultimate (“GULT”) Data Universal Numbering System (“DUNS”) number and an active subscription contract as of the measurement date. The DUNS number is a global standard for business identification and tracking. We make exceptions for holding companies, government entities, and other organizations for which the GULT, in our judgment, does not accurately represent the Amplitude customer or the DUNS does not exist. We define Paying Customers with ARR of $100,000 or greater as those Paying Customers on one or more paid subscriptions that have $100,000 or more in ARR. We believe our ability to grow the number of paying customers on our platform, particularly those spending $100,000 or more a year, provides a key indicator of the demand for our platform, growth of our business, and our future business opportunities. Increasing awareness of our platform and its broad range of capabilities, coupled with the mainstream adoption of cloud-based technology, has expanded the diversity of our customer base to include organizations of different sizes across virtually all industries. 25 Non-GAAP Financial Measures The following table presents certain non-GAAP financial measures, along with the most directly comparable U.S. GAAP measure, for each period presented below. In addition to our results determined in accordance with U.S. GAAP, we believe these non-GAAP financial measures are useful in evaluating our operating performance. See below for a description of the non-GAAP financial measures and their limitations as an analytical tool. A reconciliation is also provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) Gross Profit $ 69,102 $ 60,458 $ 137,385 $ 120,207 Non-GAAP Gross Profit $ 71,356 $ 62,114 $ 141,306 $ 123,312 Gross Margin 68 % 73 % 71 % 74 % Non-GAAP Gross Margin 71 % 75 % 73 % 76 % Loss from Operations $ (35,174 ) $ (27,094 ) $ (59,314 ) $ (51,292 ) Non-GAAP Loss from Operations $ (1,452 ) $ (1,475 ) $ (3,757 ) $ (3,592 ) Loss from Operations Margin (35 )% (33 )% (31 )% (31 )% Non-GAAP Loss from Operations Margin (1 )% (2 )% (2 )% (2 )% Net Cash Provided by Operating Activities $ 25,583 $ 20,054 $ 13,971 $ 12,032 Free Cash Flow $ 23,739 $ 18,168 $ 10,560 $ 8,942 Net Cash Provided by Operating Activities Margin 25 % 24 % 7 % 7 % Free Cash Flow Margin 24 % 22 % 5 % 6 % Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Income (Loss) from Operations, and Non-GAAP Income (Loss) from Operations Margin We define non-GAAP gross profit and non-GAAP gross margin as U.S. GAAP gross profit and U.S. GAAP gross margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related cost, and non-recurring costs such as restructuring and other related charges. Non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue. We define non-GAAP income (loss) from operations and non-GAAP income (loss) from operations margin as U.S. GAAP income (loss) from operations and U.S. GAAP loss from operations margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related cost, and non-recurring costs such as restructuring and other related charges. Non-GAAP income (loss) from operations margin is calculated as non-GAAP income (loss) from operations divided by total revenue. We exclude stock-based compensation expense and related employer payroll taxes, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. We exclude amortization of intangible assets, which is a non-cash expense, related to business combinations from certain of our non-GAAP financial measures because such expenses are related to business combinations and have no direct correlation to the operation of our business. We exclude acquisition-related costs because they are directly attributable to the acquisition, are not reflective of our ongoing cost structure, and are inconsistent in amount and frequency with the operation of our business. Although we exclude these expenses from certain non-GAAP financial measures, the revenue from acquired companies subsequent to the date of acquisition is reflected in these measures and the acquired intangible assets contribute to our revenue generation. We exclude non-recurring costs from certain of our non-GAAP financial measures because such expenses do not repeat period over period and are not reflective of the ongoing operation of our business. We use non-GAAP gross profit, non-GAAP gross margin and non-GAAP income (loss) from operations margin in conjunction with traditional U.S. GAAP measures to evaluate our financial performance. We believe that these measures provide our management 26 and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Free Cash Flow and Free Cash Flow Margin We define free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software costs. Free cash flow margin is calculated as free cash flow divided by total revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors with information about our ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives. Limitations and Reconciliations of Non-GAAP Financial Measures Non-GAAP financial measures are presented for supplemental informational purposes only. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under U.S. GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under U.S. GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures and to not rely on any single financial measure to evaluate our business. The following tables reconcile the most directly comparable U.S. GAAP financial measure to each of these non-GAAP financial measures. Non-GAAP Gross Profit and Gross Margin Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) (in thousands, except percentages) Gross profit $ 69,102 $ 60,458 $ 137,385 $ 120,207 Add: Stock-based compensation expense(1) 1,541 1,469 2,751 2,736 Amortization of acquired intangible assets 713 187 1,170 369 Non-GAAP Gross Profit $ 71,356 $ 62,114 $ 141,306 $ 123,312 Non-GAAP Gross Margin 71 % 75 % 73 % 76 % (1)Stock-based compensation expense-related charges include employer payroll tax-related expenses on employee stock transactions. 27 Non-GAAP Income (Loss) From Operations and Income (Loss) From Operations Margin Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) (in thousands, except percentages) Loss from operations $ (35,174 ) $ (27,094 ) $ (59,314 ) $ (51,292 ) Add: Stock-based compensation expense(1) 27,378 25,307 47,877 47,084 Amortization of acquired intangible assets 1,008 312 1,526 616 Acquisition-related costs 3,220 — 3,220 — Restructuring and other related charges 2,116 — 2,934 — Non-GAAP Income (Loss) from Operations $ (1,452 ) $ (1,475 ) $ (3,757 ) $ (3,592 ) Non-GAAP Income (Loss) from Operations Margin (1 )% (2 )% (2 )% (2 )% (1)Stock-based compensation expense-related charges include employer payroll tax-related expenses on employee stock transactions. Free Cash Flow and Free Cash Flow Margin Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except percentages) (in thousands, except percentages) Net cash provided by (used in) investing activities $ 37,028 $ (18,606 ) $ 79,169 $ (44,995 ) Net cash provided by (used in) financing activities $ (75,425 ) $ (12,962 ) $ (100,431 ) $ (19,052 ) Net cash provided by (used in) operating activities $ 25,583 $ 20,054 $ 13,971 $ 12,032 Less: Purchase of property and equipment (1,240 ) (538 ) (1,675 ) (977 ) Capitalization of internal-use software costs (604 ) (1,348 ) (1,736 ) (2,113 ) Free Cash Flow $ 23,739 $ 18,168 $ 10,560 $ 8,942 Free Cash Flow Margin 24 % 22 % 5 % 6 % Components of Results of Operations Revenue We generate revenue primarily from sales of subscription services for customers to access our platform. Revenue is driven primarily by the number of paying customers and the level of subscription plan. We generally recognize revenue ratably over the related contractual term beginning on the date that the platform is made available to a customer. Revenue from professional services have primarily been attributed to implementation and training services. We recognize professional services revenue as services are delivered. Cost of Revenue Cost of revenue consists primarily of the cost of providing our platform to our customers and consists of third-party hosting fees, personnel and related expenses for our operations and support personnel, and amortization of our capitalized internal-use software and acquired developed software. As we acquire new customers and existing customers increase their use of our platform, we expect that our cost of revenue will increase in dollar amounts. Gross Profit and Gross Margin Gross profit, or revenue less cost of revenue, and gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by various factors, including the timing of our acquisition of new customers, renewals of, and follow-on sales to existing customers, costs associated with operating our platform, and the extent to which we expand our operations and customer 28 support organizations. In the long term, we expect our gross profit to increase in dollar amount and our gross margin to improve as we optimize our system performance and leverage ingested data for new products though the gross margin percentage may fluctuate from quarter to quarter due to potential reinvestments into the business. The extent and timing of such investments may vary. Operating Expenses Our operating expenses consist of research and development, sales and marketing, general and administrative expenses, and restructuring and other related charges. Personnel and related expenses are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation expense, and, in the case of sales and marketing expenses, sales commissions. Operating expenses also include an allocation of overhead costs for facilities and shared IT-related expenses. As we invest in our business, we expect our operating expenses to increase in dollar amount, and although we believe our operating expenses as a percentage of revenue will decrease over the longer term, operating expenses as a percentage of revenue could increase in the short term as we invest in product innovation and sales growth. Research and Development Research and development expenses consist primarily of personnel and related expenses. These expenses also include third-party services and consulting expenses, software subscriptions, hosting expenses for research and development activities, product design costs not qualifying for capitalization as internal-use software, and allocated overhead costs for overhead used in research and development activities. A substantial portion of our research and development efforts are focused on enhancing our software, including researching ways to add new features and functionality to our platform. We anticipate continuing to invest in innovation and technology development, and as a result, we expect research and development expenses to increase in dollar amount but to decrease as a percentage of revenue over the longer term, though the percentage may fluctuate from quarter to quarter depending on the extent and timing of product development initiatives. In the short term, research and development costs could increase as a percentage of revenue. Sales and Marketing Sales and marketing expenses consist primarily of personnel and related expenses and expenses for performance marketing and lead generation, and brand marketing. These expenses also include allocated overhead costs and travel-related expenses. Sales commissions earned by our sales force that are considered incremental and recoverable costs of obtaining a subscription with a customer are deferred and amortized on a straight-line basis over the expected period of benefit of five years. We continue to make strategic investments in our sales and marketing organization, and we expect sales and marketing expenses to remain our largest operating expense in dollar amount. We expect our sales and marketing expenses to continue to increase in dollar amounts but to decrease as a percentage of revenue over the longer term, though the percentage may fluctuate from quarter to quarter depending on the extent and timing of our marketing initiatives. In the short term, sales and marketing costs could increase as a percentage of revenue. General and Administrative General and administrative expenses consist primarily of personnel and related expenses for our finance, human resources, information technology, and legal organizations. These expenses also include non-personnel costs, such as outside legal, accounting, and other professional fees, software subscriptions, as well as certain tax, license, and insurance-related expenses, and allocated overhead costs. We have also incurred certain expenses as part of operating as a publicly-traded company, including professional fees and other expenses. As a public company, we expect to continue to incur costs associated with accounting, compliance, insurance, and investor relations which could fluctuate from period to period. We expect our general and administrative expenses to continue to increase in dollar amount over time but to generally decrease as a percentage of our revenue over the longer term, though the percentage may fluctuate from period to period depending on the timing and amount of our general and administrative expenses, including in the short term. Restructuring and other related charges Restructuring and other related charges consists of charges related to employee transition, severance payments, employee benefits and stock-based compensation. Restructuring excludes allocated overhead costs. See Note 11 to our condensed consolidated 29 financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on the 2026 Restructuring Program. Other Income (Expense), Net Other income (expense), net consists primarily of interest income on our cash, cash equivalents, and marketable securities holdings and foreign currency transaction gains and losses. Provision for (Benefit from) Income Taxes Provision for (benefit from) income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. For the periods presented, the difference between the U.S. statutory rate and our effective tax rate is primarily due to the valuation allowance on deferred tax assets. Our effective tax rate is also impacted by earnings realized in foreign jurisdictions where the statutory tax rates are different from the federal statutory tax rate. We expect to maintain this full valuation allowance in U.S. jurisdictions for the foreseeable future as it is not more likely than not the deferred tax assets will be realized based on our history of losses. Results of Operations The following tables set forth our results of operations for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (in thousands) Revenue $ 100,886 $ 83,270 $ 194,378 $ 163,223 Cost of revenue(1) 31,784 22,812 56,993 43,016 Gross profit 69,102 60,458 137,385 120,207 Operating expenses: Research and development(1) 33,656 24,094 58,977 47,627 Sales and marketing(1) 49,857 46,955 99,960 91,101 General and administrative(1) 18,647 16,503 34,828 32,771 Restructuring and other related charges(2) 2,116 — 2,934 — Total operating expenses 104,276 87,552 196,699 171,499 Loss from operations (35,174 ) (27,094 ) (59,314 ) (51,292 ) Other income (expense), net 1,766 2,980 3,722 5,725 Loss before provision for (benefit from) income taxes (33,408 ) (24,114 ) (55,592 ) (45,567 ) Provision for (benefit from) income taxes 1,209 554 2,299 1,332 Net loss $ (34,617 ) $ (24,668 ) $ (57,891 ) $ (46,899 ) (1)Amounts include stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (in thousands) Cost of revenue $ 1,541 $ 1,469 $ 2,751 $ 2,736 Research and development 9,292 8,657 15,701 16,163 Sales and marketing 10,409 9,740 18,795 17,559 General and administrative 5,563 4,639 9,519 8,644 Total stock-based compensation expense $ 26,805 $ 24,505 $ 46,766 $ 45,102 (2)Six months ended June 30, 2026 amounts reflect a $0.8 million reclassification of restructuring expenses incurred in the first quarter of 2026 from Sales and Marketing and General and Administrative expenses to Restructuring and Other Related Charges. 30 The following table sets forth the components of our condensed consolidated statements of operations and comprehensive loss data, for each of the periods presented, as a percentage of revenue. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue 100 % 100 % 100 % 100 % Cost of revenue 32 % 27 % 29 % 26 % Gross margin 68 % 73 % 71 % 74 % Operating expenses: Research and development 33 % 29 % 30 % 29 % Sales and marketing 50 % 56 % 51 % 56 % General and administrative 18 % 20 % 18 % 20 % Restructuring and other related charges 2 % 0 % 2 % 0 % Total operating expenses 103 % 105 % 101 % 105 % Loss from operations (35 )% (33 )% (31 )% (31 )% Other income (expense), net 2 % 4 % 2 % 4 % Loss before provision for (benefit from) income taxes (33 )% (29 )% (29 )% (28 )% Provision for (benefit from) income taxes 1 % 1 % 1 % 1 % Net loss (34 )% (30 )% (30 )% (29 )% Note: Certain figures may not sum due to rounding. Revenue Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Revenue $ 100,886 $ 83,270 $ 17,616 21 % Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Revenue $ 194,378 $ 163,223 $ 31,155 19 % Revenue increased by $17.6 million, or 21%, and $31.2 million, or 19%, for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, respectively. The increases were primarily driven by growth in our paying customer base, including approximately $6.5 million of revenue contributed by customers from the Statsig asset acquisition during the three months ended June 30, 2026, as well as expansion within our existing customer base, partially offset by partial and full churn among existing customers which was lower than our expansion of existing customers as reflected by our NRR (TTM) of 105% as of June 30, 2026. Cost of Revenue and Gross Margin Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Cost of revenue $ 31,784 $ 22,812 $ 8,972 39 % Gross margin 68 % 73 % 31 Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Cost of revenue $ 56,993 $ 43,016 $ 13,977 32 % Gross margin 71 % 74 % Cost of revenue increased $9.0 million, or 39%, and $14.0 million, or 32%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The increases were primarily driven by a $4.9 million and $6.4 million increase, respectively, in third-party hosting costs, as we increased capacity to support paying customer usage and growth in our paying customer base, including the customers acquired from Statsig; a $2.7 million and $3.4 million increase, respectively, in subscription software costs; and a $0.8 million and $2.4 million increase, respectively, in personnel and services-related costs. Operating Expenses Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Research and development $ 33,656 $ 24,094 $ 9,562 40 % Sales and marketing 49,857 46,955 2,902 6 % General and administrative 18,647 16,503 2,144 13 % Restructuring and other related charges 2,116 — 2,116 100 % Total operating expenses $ 104,276 $ 87,552 $ 16,724 19 % Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Research and development $ 58,977 $ 47,627 $ 11,350 24 % Sales and marketing 99,960 91,101 8,859 10 % General and administrative 34,828 32,771 2,057 6 % Restructuring and other related charges 2,934 — 2,934 100 % Total operating expenses $ 196,699 $ 171,499 $ 25,200 15 % Research and Development Research and development expenses increased $9.6 million, or 40%, and $11.4 million, or 24%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The increases were primarily driven by a $3.8 million and $5.3 million increase, respectively, in personnel-related expenses; a $3.6 million and $3.8 million increase, respectively, in professional services costs relating to the transition costs for the Statsig asset acquisition; and a $1.6 million and $2.4 million increase, respectively, in software and IT costs. Sales and Marketing Sales and marketing expenses increased $2.9 million, or 6%, and $8.9 million, or 10%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The increases were primarily driven by a $1.3 million and $2.2 million increase, respectively, in commission expense; a $0.7 million and $4.6 million increase, respectively, in personnel-related expenses; a $0.4 million and $1.1 million increase, respectively, in travel costs; and a $0.6 million and $0.9 million increase, respectively, in stock-based compensation expense. 32 General and Administrative General and administrative expenses increased $2.1 million, or 13%, and $2.1 million, or 6%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The increases were primarily driven by a $1.0 million and $1.1 million increase, respectively, in subscription software costs; and a $0.9 million and $0.7 million increase, respectively, in stock-based compensation expense. Restructuring and other related charges During the three months ended June 30, 2026, we completed the second phase of our restructuring plan initiated in the first quarter of 2026, which was undertaken to reduce our workforce and streamline operations. We recognized restructuring and other related charges of $2.1 million and $2.9 million for the three and six months ended June 30, 2026, respectively, consisting primarily of employee severance and related benefits costs. We do not expect to incur material additional charges related to this restructuring plan. Other Income (Expense), Net Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Other income (expense), net $ 1,766 $ 2,980 $ (1,214 ) (41 )% Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Other income (expense), net $ 3,722 $ 5,725 $ (2,003 ) (35 )% Other income (expense), net decreased $1.2 million, or 41%, and $2.0 million, or 35%, during the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The decreases were primarily driven by $1.2 million and $2.0 million decrease, respectively, in interest income driven by a lower average invested balances following the sales and maturities of investments during the period. Provision for (Benefit from) Income Taxes Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Provision for (benefit from) income taxes $ 1,209 $ 554 $ 655 118 % Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Provision for (benefit from) income taxes $ 2,299 $ 1,332 $ 967 73 % Provision for (benefit from) income taxes increased $0.7 million, or 118%, and $1.0 million, or 73%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The increases were primarily driven by an increase in foreign taxes. 33 Liquidity and Capital Resources Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock as well as cash generated from the sale of subscriptions to our platform. We have generated losses from our operations as reflected in our accumulated deficit of $604.3 million as of June 30, 2026. We generated positive cash flows from operating activities for the six months ended June 30, 2026, and during the years ended December 31, 2025 and 2024. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support our platform, including growth in our customer base and customer usage, increased research and development expenses to support the growth of our business and related infrastructure, and increased general and administrative expenses to support being a publicly-traded company. As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $73.8 million and restricted cash of $0.9 million. We also had $87.6 million in marketable securities that provide additional capital resources. Additionally, a substantial source of our cash provided by operating activities is our deferred revenue, which is included on our condensed consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the term of the subscription agreement. As of June 30, 2026, we had $163.5 million of deferred revenue, all of which was recorded as a current liability. This deferred revenue will be recognized as revenue when or as the related performance obligations are met. We assess our liquidity primarily through our cash on hand as well as the projected timing of billings under contract with our paying customers and related collection cycles. We believe our current cash and cash equivalents on hand will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional funds when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. See “Risk Factors—Risks Related to Our Business and Industry—We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.” Cash Flows The following table shows a summary of our cash flows for the periods presented: Six Months Ended June 30, 2026 2025 (in thousands) Net cash provided by (used in) operating activities $ 13,971 $ 12,032 Net cash provided by (used in) investing activities $ 79,169 $ (44,995 ) Net cash provided by (used in) financing activities $ (100,431 ) $ (19,052 ) Operating Activities Our largest source of operating cash is cash collection from sales of subscriptions to our paying customers. Our primary uses of cash from operating activities are for personnel and related expenses, marketing expenses, and third-party hosting-related and software expenses. Net cash provided by operating activities of $14.0 million for the six months ended June 30, 2026 reflects our net loss of $57.9 million, adjusted by non-cash items of $57.0 million, consisting primarily of stock-based compensation expense of $46.8 million, depreciation and amortization of $6.1 million, non-cash operating lease costs of $2.2 million, and other non-cash adjustments of $2.0 million. Net cash provided by changes in our operating assets and liabilities was $14.9 million. The primary sources of cash from changes in operating assets and liabilities were a $23.4 million increase in deferred revenue driven by the timing of billings in excess of revenue recognized and, a $8.4 million increase in accrued expenses due to the timing of accruals. These sources were partially offset by a $5.5 million decrease in accounts payable due to the timing of payments, a $5.2 million increase in accounts receivable due to the timing of billings and collections, a $4.7 million increase in deferred commissions corresponding with new and renewed customer contracts, a $1.2 million decrease in operating lease liabilities, and a $0.5 million increase in prepaid expenses and other current assets. Net cash provided by operating activities of $12.0 million for the six months ended June 30, 2025 reflects our net loss of $46.9 million, adjusted by non-cash items such as stock-based compensation expense of $45.1 million, depreciation and amortization of $4.7 million, and non-cash operating lease costs of $2.3 million as well as net cash provided by changes in our operating assets and liabilities of $6.2 million. The net cash provided by changes in operating assets and liabilities primarily consisted of collections outpacing revenue recognized as evidenced through the net increase in cash of $16.7 million from changes in accounts receivable and 34 deferred revenue and a net increase in accrued expenses and accounts payable of $2.7 million. These changes were primarily offset by an increase in prepaid expenses and other current and noncurrent assets of $5.5 million, a $4.7 million increase related to additional payments for deferred commissions during the period, and a $3.0 million decrease in operating lease liabilities. Investing Activities Net cash provided by investing activities of $79.2 million for the six months ended June 30, 2026 consisted of $56.8 million of cash received from sales of marketable securities and $36.2 million of cash received from the maturities of marketable securities. These proceeds were partially offset by $10.2 million of purchases of marketable securities, $1.7 million of capitalized internal-use software development costs, $1.7 million in purchases of property and equipment, and $0.2 million of bridge loan issuances. Net cash used in investing activities of $45.0 million for the six months ended June 30, 2025 consisted of $64.5 million of purchases of marketable securities, $2.1 million of capitalized internal-use software development costs, $1.0 million in purchases of property and equipment, and $0.4 million in cash paid for an acquisition. These decreases were partially offset by $23.0 million of cash received from the maturities of marketable securities. Financing Activities Net cash used in financing activities of $100.4 million for the six months ended June 30, 2026, primarily consisted of $89.5 million of repurchases of common stock under our share repurchase program, $11.7 million in net tax remittance on equity awards related to the vesting of RSU awards under a withhold-to-cover method, and $0.1 million of cash paid for an acquisition holdback. These were partially offset by $0.9 million in proceeds from the exercise of stock options. Net cash used in financing activities of $19.1 million for the six months ended June 30, 2025 consisted of $18.6 million in net tax remittance on equity awards related to the vesting of RSU awards under a withhold-to-cover method and $2.5 million in repurchases of common stock. These decreases were partially offset by $2.1 million in proceeds from the exercise of stock options. Remaining Performance Obligations Remaining performance obligations (“RPO”) as of June 30, 2026 and 2025, including the expected timing of recognition is as follows: As of June 30, 2026 2025 % Change (in thousands, except percentages) Less than or equal to 12 months $ 322,186 $ 248,520 30% Greater than 12 months 160,768 109,574 47% Total remaining performance obligations $ 482,954 $ 358,094 35% Our RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancellable contracted amounts that will be invoiced and recognized as revenue in future periods. RPO excludes performance obligations from overages. RPO is influenced by a number of factors, including the timing of renewals, the timing of purchases, average contract terms, and seasonality. Due to these factors, it is important to review RPO in conjunction with product revenue and other financial metrics disclosed elsewhere in this Quarterly Report on Form 10-Q. Contractual Obligations and Commitments In April 2025, the Company entered into a new private pricing addendum with Amazon Web Services (“AWS”) for cloud computing infrastructure, which replaced the Company's prior agreement with AWS and terminated the remaining commitments under the prior agreement. Under the terms of the agreement, the Company has a minimum purchase commitment of $326.3 million in AWS services through March 2031. As of June 30, 2026, the Company had utilized $59.1 million of this commitment. During the six months ended June 30, 2026, there were no additional material changes in our contractual obligations and other commitments outside of those disclosed in the 2025 Form 10-K, other than an increase in our lease commitments. See Note 9 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on our commitments and contingencies. 35 Indemnification Agreements In the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us, or from intellectual property infringement claims made by third parties. Additionally, we have entered into indemnification agreements with our directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No demands have been made upon us to provide indemnification under such agreements, and there are no claims that we are aware of that could reasonably be expected to have a material effect on our financial position, results of operations, or cash flows. Off-Balance Sheet Arrangements For all periods presented in this Quarterly Report on Form 10-Q, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which would have been 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 are prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates. There have been no changes to our critical accounting policies and estimates during the six months ended June 30, 2026 as compared to those disclosed in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the 2025 Form 10-K. Recent Accounting Pronouncements See Note 1 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding recent accounting pronouncements. 36