IOT

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026, and (2) our unaudited condensed consolidated financial statements and related notes and other financial information included under Part I, Item 1 of this Quarterly Report on Form 10-Q. Some of the information contained in the following discussion and analysis, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Item 1A. Risk Factors” and “Special Note Regarding Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” included under Part I, Item 1A. of our Annual Report on Form 10-K filed with the SEC on March 16, 2026 for a discussion of forward-looking statements and important factors that could impact our business and cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or implied by past results and trends. These statements, like all statements in this Quarterly Report on Form 10-Q, speak only as of their date (unless another date is indicated), and we undertake no obligation to update or revise these statements in light of future developments. Our fiscal year ends on the Saturday closest to February 1, resulting in a 52-week or 53-week fiscal year. Our fiscal years 2027 and 2026 each consist of 52 weeks. Overview Samsara is on a mission to increase the safety, efficiency, and sustainability of the operations that power the global economy. To realize this vision, we pioneered the Connected Operations Platform, which is an open platform that connects the people, assets, and systems of some of the world’s most complex operations, allowing them to develop actionable insights and improve their operations. Our Connected Operations Platform consolidates data from our IoT devices and a growing ecosystem of connected assets and third-party systems, and makes it easy for organizations to access, analyze, and act on data insights using our cloud dashboard, custom alerts and reports, mobile apps, and workflows. Powered by our massive and growing data asset and expansive artificial intelligence (“AI”) technology, our differentiated, purpose-built suite of Applications and Agents enables organizations to embrace and deploy a digital, cloud-connected strategy across their operations. With Samsara, customers have the ability to drive safer operations, increase business efficiency, and achieve their sustainability goals, all to improve the lives of their employees and the customers they serve. We were founded in 2015 and have achieved significant growth since our inception. For the three months ended May 2, 2026 and May 3, 2025, our revenue was $478.8 million and $366.9 million, respectively. Our net income was $44.5 million for the three months ended May 2, 2026 and our net loss was $22.1 million for the three months ended May 3, 2025. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to expand our customers’ use of our Connected Operations Platform. Key Business Metrics The following table presents a summary of our key business metrics as of the periods presented (dollars in thousands): As of May 2, 2026 May 3, 2025 Annual recurring revenue (“ARR”) $ 1,990,621 $ 1,535,432 Customers > $100,000 ARR 3,363 2,638 ARR We believe that ARR is a key indicator of the trajectory of our business performance, enables measurement of the progress of our business initiatives, and serves as an indicator of future growth. We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date. ARR highlights trends that may be less visible from our financial statements due to ratable revenue recognition. ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and is not intended to be combined with or replace it. ARR is not a forecast, and the active contracts at the date used in calculating ARR may or may not be renewed. For all international customer contracts denominated in currencies other than the U.S. dollar, ARR is translated from local currency to U.S. dollar based on the currency exchange rate as of the effective date of the contract. 22 Table of Contents Number of Customers Over $100,000 in ARR We focus on customers representing over $100,000 in ARR, as this key business metric is indicative of our penetration with larger customers. The number of our customers over $100,000 in ARR has grown over time as we have focused our sales efforts on larger customers, invested in our partner ecosystem, and released more Applications to address the needs of our larger customers. Factors Affecting Our Performance Acquiring New Customers We believe that we have a substantial opportunity to continue to grow our customer base. We intend to drive new customer acquisition by continuing to invest significantly in sales and marketing to engage our prospective customers, increase brand awareness, and drive adoption of our Connected Operations Platform. Our ability to attract new customers depends on a number of factors, including the effectiveness of our sales and marketing efforts, macroeconomic factors and their impact on our customers’ businesses, and the success of our efforts to expand internationally. Expanding Within Our Existing Customer Base We believe that there is a significant opportunity to expand sales to existing customers following their initial adoption of our Connected Operations Platform. We expand within our customer base by selling more Applications and expanding existing Applications across geographies and divisions. Our ability to expand within our customer base will depend on a number of factors, including our customers’ satisfaction, pricing, competition, macroeconomic factors, and changes in our customers’ spending levels. Investments in Innovation and Future Growth Our performance is driven by continuous innovation on our Connected Operations Platform and our ability to scale our operations to grow our business. We continuously invest in adding new data types to our Connected Operations Platform and innovate with this growing data asset to introduce new Applications and Agents over time. Our performance is also impacted by our ability to scale our operations across our business to support our growth. We remain committed to investing in our sales and marketing capacity, investing in world-class talent and productivity tools, and driving revenue growth globally. Macroeconomic Trends Unfavorable conditions in the economy, both in the United States and abroad, may negatively affect the growth of our business and our results of operations. For example, our business and results of operations, as well as those of our customers, could be affected by global macroeconomic trends and events such as inflationary pressure, fluctuations in foreign currency exchange rates, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including fluctuating hardware component costs, memory, storage and computing costs, and fuel costs), labor shortages, delayed or reduced spending on technology, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts and geopolitical tension, the outcome of political elections, and new monetary, fiscal, and trade policies (including tariff policies and import and export restrictions) in the United States and abroad. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers. Refer to the section titled “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” in Part I, Item 1A and elsewhere in our Annual Report on Form 10-K filed on March 16, 2026, for further discussion of the impacts of macroeconomic trends on our business. 23 Table of Contents Components of Results of Operations Revenue We provide access to our Connected Operations Platform primarily through subscription arrangements, whereby the customer is charged a per-subscription fee for access for a specified term. Subscription agreements contain multiple service elements for one or more of our cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (which we also refer to as connected devices or IoT devices), that are delivered over the term of the arrangement, and warranty coverage. Our subscription contracts typically have an initial term of three to five years and are generally non-cancelable and non-refundable, subject to limited exceptions under our standard terms of service and other exceptions for public sector customers, who are often subject to annual budget appropriations cycles. Our Connected Operations Platform and IoT devices are highly interdependent and interrelated, and represent a combined performance obligation within the context of the contract. In each of our past two fiscal years, we generated approximately 98% of our revenue from subscriptions to our Connected Operations Platform. The remaining portion of our revenue not generated from subscriptions to our Connected Operations Platform is derived from the sale of replacement IoT devices, shipping and handling fees, and professional services. Cost of Revenue Cost of revenue consists primarily of the amortization of connected device costs associated with subscription agreements, third-party cloud and cellular costs, employee-related costs directly associated with our customer support and supply chain teams, including salaries, benefits, and stock-based compensation, amortization of internal-use software costs, fulfillment costs, warranty costs, provision for excess and obsolete inventory, and costs associated with software subscriptions and office facilities. As our customers expand and increase the use of our Connected Operations Platform driven by additional IoT devices and Applications, our cost of revenue may vary from quarter to quarter as a percentage of our revenue due to the timing and extent of these expenses. We intend to continue to invest additional resources in our Connected Operations Platform, including in our IoT device hardware, cloud infrastructure, and cellular connectivity, as well as in customer support and operations as we grow our business. The level and timing of investment in these areas will affect our cost of revenue in the future. Operating Expenses Research and Development Research and development expenses consist primarily of employee-related costs, including salaries, benefits, and stock-based compensation, associated with improvements to our platform and current offerings and the development of new products, and costs associated with software subscriptions and office facilities. We continue to focus our research and development efforts on adding new features and products and enhancing the utility of our Connected Operations Platform. We expect our research and development expenses to generally increase in absolute dollars for the foreseeable future as we continue to invest in research and development efforts to enhance our Connected Operations Platform. Our research and development expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses. Sales and Marketing Sales and marketing expenses consist primarily of employee-related costs, including salaries, benefits, stock-based compensation, and sales commissions incurred to acquire and retain new customers and increase product adoption with our existing customers. Sales and marketing expenses also include marketing activities, promotional events, and costs associated with software subscriptions and office facilities. We plan to continue to invest in sales and marketing to expand our customers’ use of our Connected Operations Platform and increase our brand awareness. As a result, we expect our sales and marketing expenses to generally increase in absolute dollars for the foreseeable future. Our sales and marketing expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses, including seasonally higher spend on promotional events in the first half of our fiscal year. 24 Table of Contents General and Administrative General and administrative expenses consist primarily of employee-related costs for executive, finance, legal, human resources, facilities, and certain IT personnel, including salaries, benefits, and stock-based compensation. General and administrative expenses also include costs related to professional services, including legal, accounting, recruiting and other consulting services, as well as costs associated with software subscriptions and office facilities. We expect our general and administrative expenses to continue to increase in absolute dollars for the foreseeable future to support our growth. Our general and administrative expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses. Interest Income and Other Income, Net Interest income and other income, net, consists primarily of income earned on our money market funds and marketable debt securities, including amortization of premiums and accretion of discounts, and net unrealized gains (losses) on our strategic investments. It also includes one-time gains and losses not associated with our core operations and the effect of changes in foreign currency exchange rates. As we have expanded our global operations, our exposure to fluctuations in foreign currencies has increased, and we expect this to continue. Provision for Income Taxes Provision for income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance against our U.S. deferred tax assets because we have concluded that it is more likely than not that the deferred tax assets will not be realized. Results of Operations Comparison of the Three Months Ended May 2, 2026 and May 3, 2025 Revenue Our total revenue is summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Revenue $ 478,844 $ 366,884 $ 111,960 31 % Revenue increased by $112.0 million, or 31%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to an increase in new customers and increased purchases by existing customers. Cost of Revenue, Gross Profit, and Gross Margin Our cost of revenue, gross profit, and gross margin are summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Cost of revenue $ 117,701 $ 83,169 $ 34,532 42 % Gross profit $ 361,143 $ 283,715 Gross margin 75 % 77 % Cost of revenue increased by $34.5 million, or 42%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to $16.1 million of increased cloud and cellular costs, $10.8 million of increased connected device costs, and $3.0 million of increased employee-related costs. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume and additional product features and functionality year-over-year. The increase in employee-related costs was primarily due to increased headcount. Our gross margin decreased to 75% for the three months ended May 2, 2026 compared to 77% for the three months ended May 3, 2025, mainly due to increased cloud and cellular costs. 25 Table of Contents Research and Development Research and development expense is summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Research and development $ 97,567 $ 83,242 $ 14,325 17 % Percentage of revenue 20 % 23 % Research and development expense increased by $14.3 million, or 17%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $5.9 million increase in costs associated with software subscriptions, a $4.6 million increase in cloud and cellular costs driven by investments in AI tooling and related development infrastructure, and a $3.9 million increase in employee-related costs. Sales and Marketing Sales and marketing expense is summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Sales and marketing $ 203,603 $ 165,400 $ 38,203 23 % Percentage of revenue 42 % 45 % Sales and marketing expense increased by $38.2 million, or 23%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $23.5 million increase in employee-related costs, which included a $18.1 million increase in salaries, benefits, and related employer taxes primarily due to increased headcount and a $5.8 million increase in sales commissions. The increase in sales and marketing expense was also due to a $9.7 million increase in expenditures incurred to generate demand through various marketing channels and promotional events. General and Administrative General and administrative expense is summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % General and administrative $ 52,778 $ 68,328 $ (15,550) (23 %) Percentage of revenue 11 % 18 % General and administrative expense decreased by $15.6 million, or 23%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to a $14.4 million decrease in non-recurring consulting and professional services fees and a $2.5 million decrease in stock-based compensation expense. Interest Income and Other Income, Net Interest income and other income, net, are summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Interest income and other income, net $ 41,732 $ 12,723 $ 29,009 228 % Interest income and other income, net, increased by $29.0 million, or 228%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025. This increase was primarily a result of a $30.3 million arbitration award issued in Samsara’s favor in the Motive breach of contract, fraud, unfair competition, and false advertising matter, partially offset by a $2.1 million increase in foreign currency losses. 26 Table of Contents Provision for Income Taxes Provision for income taxes is summarized as follows (in thousands, except percentages): Three Months Ended Change May 2, 2026 May 3, 2025 Amount % Provision for income taxes $ 4,419 $ 1,589 $ 2,830 178 % Effective tax rate 9.0 % (7.7 %) The provision for income taxes increased by $2.8 million, or 178%, for the three months ended May 2, 2026 compared to the three months ended May 3, 2025, primarily due to growth in our operations in foreign jurisdictions. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we review the following non-GAAP financial measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions (in thousands, except percentages): Three Months Ended May 2, 2026 May 3, 2025 Non-GAAP gross profit $ 366,309 $ 288,076 Non-GAAP gross margin 76 % 79 % Non-GAAP operating income $ 91,012 $ 51,071 Non-GAAP operating margin 19 % 14 % Non-GAAP net income $ 97,996 $ 62,205 Free cash flow $ 73,177 $ 45,692 Free cash flow margin 15 % 12 % Limitations and Reconciliations of Non-GAAP Financial Measures Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under 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 or the total increase or decrease of our cash balance for a given period. These and other limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. Expenses Excluded from Non-GAAP Performance Financial Measures Stock-based compensation expense-related charges include the amortization of deferred stock-based compensation expense for internal-use software and cloud computing arrangements and employer taxes on employee equity transactions. Stock-based compensation expense is a non-cash expense and is dependent on our stock price, which is beyond our control. Accordingly, we find it useful to exclude stock-based compensation expense in order to better understand our ongoing operational performance. Employer taxes on employee equity transactions, which are cash expenses, are excluded because such taxes are directly tied to the timing and size of employee equity transactions and the future fair market value of our common stock, which may vary from period to period independent of the operating performance of our business. Lease modification, impairment, and related charges, and legal settlements and awards are excluded because management believes that such charges are not reflective of our ongoing operational performance. 27 Table of Contents Non-GAAP Performance Financial Measures Non-GAAP Gross Profit and Non-GAAP Gross Margin We define non-GAAP gross profit as gross profit excluding the effect of stock-based compensation expense-related charges included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP gross profit to our GAAP gross profit for the periods presented (in thousands, except percentages): Three Months Ended May 2, 2026 May 3, 2025 Gross profit $ 361,143 $ 283,715 Add: Stock-based compensation expense-related charges (1) 5,166 4,361 Non-GAAP gross profit $ 366,309 $ 288,076 GAAP gross margin 75 % 77 % Non-GAAP gross margin 76 % 79 % __________ (1)Stock-based compensation expense-related charges included approximately $0.3 million and $0.4 million of employer taxes on employee equity transactions for the three months ended May 2, 2026 and May 3, 2025, respectively. Non-GAAP Operating Income and Non-GAAP Operating Margin We define non-GAAP operating income as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income as a percentage of total revenue. We use non-GAAP operating income and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP operating income to our GAAP income (loss) from operations for the periods presented (in thousands, except percentages): Three Months Ended May 2, 2026 May 3, 2025 Income (loss) from operations $ 7,195 $ (33,255) Add: Stock-based compensation expense-related charges (1) 83,817 84,326 Non-GAAP operating income $ 91,012 $ 51,071 GAAP operating margin 2 % (9 %) Non-GAAP operating margin 19 % 14 % __________ (1)Stock-based compensation expense-related charges included approximately $5.0 million and $6.5 million of employer taxes on employee equity transactions for the three months ended May 2, 2026 and May 3, 2025, respectively. 28 Table of Contents Non-GAAP Net Income We define non-GAAP net income as net income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements and awards. We use non-GAAP net income in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP net income to our GAAP net income (loss) for the periods presented (in thousands, except percentages): Three Months Ended May 2, 2026 May 3, 2025 Net income (loss) $ 44,508 $ (22,121) Add: Stock-based compensation expense-related charges 83,817 84,326 Legal gain from arbitration award (1) (30,329) — Non-GAAP net income (2) $ 97,996 $ 62,205 __________ (1)Samsara recognized a gain of $30.3 million for the three months ended May 2, 2026. Refer to Note 9, “Commitments and Contingencies.” (2)There were no material income tax effects on our non-GAAP adjustments for all periods presented. Non-GAAP Liquidity Financial Measures Free Cash Flow and Free Cash Flow Margin We define free cash flow as net cash provided by operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives. The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented (in thousands, except percentages): Three Months Ended May 2, 2026 May 3, 2025 Net cash provided by operating activities $ 81,413 $ 52,612 Purchases of property and equipment (8,236) (6,920) Free cash flow $ 73,177 $ 45,692 Net cash provided by operating activities margin 17 % 14 % Free cash flow margin 15 % 12 % Net cash used in investing activities $ (149,188) $ (18,289) Net cash used in financing activities $ (34,431) $ (356) Liquidity and Capital Resources Liquidity is a measure of our ability to access sufficient cash flows to meet the short-term and long-term cash requirements of our business operations. Since our founding, we have financed our operations primarily through the sale of equity securities and payments received from our customers. In December 2021, we completed our initial public offering (“IPO”), which resulted in aggregate net proceeds of $846.7 million, including proceeds from the underwriters’ exercise of their option to purchase additional shares of our Class A common stock in January 2022 and net of underwriting discounts and commissions. We have generated significant operating losses from our operations, as reflected in our accumulated deficit of $1,574.6 million as of May 2, 2026. We intend to continue investing in our business, and as a result, we may require additional capital resources to execute on our strategic initiatives to grow our business, particularly if we generate negative cash flows in future quarters. We believe that our existing cash, cash equivalents, and short-term and long-term investments will be sufficient to support working capital, including our non-cancelable arrangements, and capital expenditure requirements for at least the next 12 months. 29 Table of Contents As of May 2, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term and long-term investments of $1,281.4 million. Cash and cash equivalents consisted of cash as well as highly liquid investments with an original maturity of 90 days or less, when purchased. Our investments primarily consisted of U.S. government, and agency securities, and municipal securities, corporate notes and bonds, and commercial paper. Our primary uses of cash include employee-related expenditures, third-party cloud and cellular costs, sales and marketing expenses, overhead expenses, and funding other working capital requirements, such as inventory and related connected device costs to meet our performance obligations related to our Connected Operations Platform. Our future capital requirements will depend on many factors, including, but not limited to, our growth, our ability to attract and retain customers, the continued market acceptance of our solution, the timing and extent of spending necessary to support our efforts to develop our Connected Operations Platform and meet our performance obligations related to customers, the expansion of sales and marketing activities, and the impact of macroeconomic conditions on our and our customers’ and partners’ businesses. Further, we may in the future enter into arrangements to acquire or invest in businesses, products, services, and technologies. We may be required to seek additional equity or debt financing. In the event that additional financing is required, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, financial condition, and results of operations could be adversely affected. Cash Flows The following table presents a summary of our cash flows for the periods presented (in thousands): Three Months Ended May 2, 2026 May 3, 2025 Net cash provided by operating activities $ 81,413 $ 52,612 Net cash used in investing activities $ (149,188) $ (18,289) Net cash used in financing activities $ (34,431) $ (356) Operating Activities Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for employee-related expenditures, third-party cloud and cellular costs, sales and marketing expenses, general and administrative costs, and purchases of inventory and connected device costs. We have supplemented working capital through net proceeds from the sale of equity securities. Cash provided by operating activities mainly consists of our net income (loss) adjusted for certain non-cash items, including stock-based compensation, depreciation and amortization of property and equipment, and net accretion of discounts on marketable debt securities, and changes in operating assets and liabilities during each period. Cash provided by operating activities was $81.4 million for the three months ended May 2, 2026. This consisted of a net income of $44.5 million, adjusted for non-cash charges of $83.1 million, partially offset by net uses of cash from changes in our operating assets and liabilities of $46.2 million. The non-cash charges were primarily composed of stock-based compensation expense of $77.5 million and depreciation and amortization of $7.9 million. Changes in our operating assets and liabilities during the three months ended May 2, 2026 reflect the recognition of an arbitration award receivable, higher vendor payments, higher connected device costs and deferred commissions due to the growth of our business, and increases in inventory levels to meet anticipated demand requirements, partially offset by higher cash collections from customers and increases in deferred revenue due to the growth of our business during the three months ended May 2, 2026. Cash provided by operating activities was $52.6 million for the three months ended May 3, 2025. This consisted of a net loss of $22.1 million, adjusted for non-cash charges of $79.3 million, and changes in our operating assets and liabilities of $4.6 million. The non-cash charges were primarily composed of stock-based compensation expense of $77.1 million and depreciation and amortization of $5.1 million, partially offset by net accretion of discounts on marketable debt securities of $2.6 million. Changes in our operating assets and liabilities during the three months ended May 3, 2025 reflect higher vendor payments and higher deferred commissions and connected device costs due to the growth of our business, partially offset by increases in deferred revenue also due to the growth of our business and higher cash collections from customers during the three months ended May 3, 2025. Investing Activities Cash used in investing activities was $149.2 million for the three months ended May 2, 2026, which primarily consisted of $357.5 million of purchases of investments and $6.2 million of capitalized internal-use software costs, partially offset by $216.6 million of proceeds from maturities and redemptions of investments. 30 Table of Contents Cash used in investing activities was $18.3 million for the three months ended May 3, 2025, which primarily consisted of $173.1 million of purchases of investments and $5.1 million of capitalized internal-use software costs, partially offset by $162.0 million of proceeds from maturities and redemptions of investments. Financing Activities Cash used in financing activities was $34.4 million for the three months ended May 2, 2026, which primarily consisted of $34.3 million of tax payments to net share settle equity awards. Cash used in financing activities was $0.4 million for the three months ended May 3, 2025, which primarily consisted of $0.4 million in payments of principal on finance leases. Contractual Obligations and Commitments Our estimated future obligations consist of leases and non-cancelable purchase commitments as of May 2, 2026. For additional discussion on our leases and other commitments, refer to Notes 8, “Leases,” and 9, “Commitments and Contingencies,” to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Critical Accounting Estimates Our 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 our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect the amounts reported in those financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making those estimates, actual results reported in future periods could differ from those estimates. There were no material changes to our critical accounting estimates during the three months ended May 2, 2026. Recent Accounting Pronouncements For information on recently issued accounting pronouncements, refer to Note 2, “Summary of Significant Accounting Policies,” to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.