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 Annual Report on Form 10-K filed with the SEC on March 13, 2026. As described 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 correct, 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. Overview Asana is the work management platform built for the agentic enterprise, where humans and AI agents run critical workflows together. Our platform enables individuals to work smarter, teams to move faster, and organizations to deliver results. Customers use Asana to connect their work to company goals and orchestrate mission critical workflows like product launches, employee onboarding, resource planning, tracking company-wide strategic initiatives and more. By combining shared memory with enterprise-grade governance, our platform enables organizations to coordinate work across human and AI team members on the same live plan. This drives clarity, accountability, and impact across the organization from executives and department heads to team leads, individuals, and agents delivering the work. In Asana, the “Who, What, When, and Why” of work is transparent, ensuring that every action, whether taken by a person or an AI agent, is grounded in real business context and aligned to strategic goals. We offer complementary products within the Asana platform to meet the needs of diverse organizations: •our core work management product, available in a tiered, seat-based model; •AI Teammates, collaborative AI agents that work like real teammates to accelerate outcomes, which operates on a consumption basis; and •Asana AI Studio, a no-code builder that lets teams build and embed AI into workflows, also on a consumption basis. We employ a hybrid go-to-market approach, combining a product-led model, direct sales and channel partners. Key Business Metrics We believe that our growth and financial performance are dependent upon many factors, including the key factors described below. Paying Customers We are focused on continuing to grow the number of customers that use our platform, and specifically on growing the number of customers spending over $5,000 on an annualized basis (“Core customers”), and those spending over $100,000 on an annualized basis. Our operating results and growth opportunity depend, in part, on our ability to attract new customers and expand within those same organizations. We believe we have significant greenfield opportunities among addressable customers worldwide, and we will continue to invest in our research and development and our sales and marketing organizations to address this opportunity. We define a customer as a distinct account, which could include a team, company, educational or government institution, organization, or distinct business unit of a company, that is on a paid subscription plan, a free version, or a free trial of one of our paid subscription plans. A single organization may have multiple customers. We define a paying customer as a customer on a paid subscription plan. We define customers spending over $5,000 and $100,000 as those organizations on a paid subscription plan that had $5,000 or more or $100,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discounts. As customers realize the productivity benefits we provide, our platform often becomes critical to 25 managing their work, increasing employee productivity and achieving their objectives, which drives further adoption and expansion opportunities, and results in higher annualized contract values. We believe that our ability to increase the number of these customers is an important indicator of the components of our business, including: the continued acquisition of new customers, retaining and expanding our user base within existing customers, our continued investment in product development and functionality required by larger organizations, and the strategic expansion of our direct sales force. As of April 30, 2026, we had 26,103 Core customers contributing approximately 76% of revenues for the three months then ended. As of April 30, 2025, we had 24,297 Core customers who contributed approximately 75% of revenues for the three months then ended. As of April 30, 2026 and 2025, we had 817 and 728 customers spending over $100,000, on an annualized basis, respectively. Dollar-based Net Retention Rate We expect to derive a portion of our revenue growth from expansion within our existing customer base, where we have an opportunity to expand adoption of Asana across teams, departments, and organizations. We believe that our dollar-based net retention rate demonstrates our opportunity to further expand within our existing customer base, particularly those that generate higher levels of annual revenues. Our reported dollar-based net retention rate equals the simple arithmetic average of our quarterly dollar-based net retention rate for the four quarters ending with the most recent fiscal quarter. We calculate our dollar-based net retention rate by comparing our revenues from the same set of customers in a given quarter, relative to the comparable prior-year period. To calculate our dollar-based net retention rate for a given quarter, we start with the revenues in that quarter from customers that generated revenues in the same quarter of the prior year. We then divide that amount by the revenues attributable to that same group of customers in the prior-year quarter. Current period revenues include any upsells and are net of contraction or attrition over the trailing 12 months, but exclude revenues from new customers in the current period. We expect our dollar-based net retention rate to fluctuate due to a number of factors, including the expected growth of our revenue base, the level of penetration within our customer base, our ability to retain our customers, and the macroeconomic environment. For example, macroeconomic conditions have affected customers’ renewal decisions, which has impacted our dollar-based net retention rate in recent periods. As of April 30, 2026 and 2025, our dollar-based net retention rate was 96% and 95%, respectively. As of April 30, 2026 and 2025, our dollar-based net retention rate for our Core customers was 97% and 96%, respectively. Our dollar-based net retention rate for customers spending over $100,000 on an annualized basis for the same periods was 96% and 95%, respectively. Current Economic Conditions Global macroeconomic events including inflation, fluctuating interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty. These macroeconomic conditions have and are likely to continue to have adverse effects on the rate of global IT spending, including the buying patterns of our customers and prospective customers, and the length of our sales cycles. Additionally, the introduction and acceptance of AI-assisted technologies has impacted traditional search engine user discovery of our products, particularly by small and midsize businesses. While we have aligned our product-led growth initiatives to this new environment and seen modest quarter-over-quarter traffic recovery from these customers as well as improvements in web conversion and retention, we expect these shifting dynamics to continue to impact us throughout fiscal year 2027. Acquisition of StackAI On May 28, 2026, we announced the acquisition of Eigen Inc. (“StackAI”), a privately held artificial intelligence company that offers a no-code AI automation platform that allows businesses to build, test, and deploy custom AI agents and complex workflows. The acquisition is expected to help accelerate our broader AI platform strategy. 26 Leadership Transitions In March 2026, we announced the resignation of our former Chief Financial Officer, Sonalee Parekh, and the appointment of our new Chief Financial Officer, Aziz Megji, effective March 24, 2026. In March 2026, we also announced the appointment of Veronica Sosa as our Chief Accounting Officer and principal accounting officer, effective March 11, 2026. Components of Results of Operations Revenues We primarily generate revenues from subscription fees earned from customers accessing our cloud-based platform. Subscription revenues are driven primarily by the number of paying customers, the number of paying users within the customer base, and the level of subscription plan. We recognize revenues ratably over the related contractual term beginning on the date that the platform is made available to a customer. We also generate revenues from our consumption-based AI product and professional services, which are not material to the consolidated financial statements. Cost of Revenues Cost of revenues consists primarily of the cost of providing our platform to free users and paying customers and is comprised of third-party hosting fees, personnel-related expenses for our operations and support personnel including allocated overhead costs for facilities and shared IT-related expenses, third-party implementation services partner fees, credit card processing fees, infrastructure and application performance monitoring costs, and amortization of our capitalized internal-use software costs. As we acquire new customers and existing customers increase their use of our cloud-based platform, we expect that our cost of revenues will continue to increase. Gross Profit and Gross Margin Gross profit, or revenues less cost of revenues, and gross margin, or gross profit as a percentage of revenues, 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 cloud-based platform, and the extent to which we expand our operations and customer support organizations. We expect our gross profit to increase in dollar amount and our gross margin to remain relatively consistent over the long term. Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries, employer payroll taxes, benefits, 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, including depreciation expense. Research and Development Research and development expenses consist primarily of personnel-related expenses. These expenses also include product design costs, third-party services and consulting expenses, software subscriptions and computer equipment used in research and development activities, and allocated overhead costs. A substantial portion of our research and development efforts are focused on enhancing our software architecture and adding new features and functionality to our platform. We anticipate continuing to invest in innovation and technology development, including the integration of AI in our products, and as a result, we expect research and development expenses to continue to increase in dollar amount, but to decrease as a percentage of revenues over time. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related expenses and expenses for performance marketing, brand marketing, pipeline generation, and sponsorship activities. These expenses also include allocated 27 overhead costs, travel-related expenses, and professional fees. 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 three 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 amount but to decrease as a percentage of revenues over time, although the percentage may fluctuate from period to period depending on the extent and timing of our initiatives. General and Administrative General and administrative expenses consist primarily of personnel-related expenses for our finance, human resources, information technology, and legal organizations, and for certain of our executives. These expenses also include non-personnel costs, such as outside legal, accounting, and other professional fees, software subscriptions and expensed computer equipment, certain tax, license, and insurance-related expenses, impairment charges, and allocated overhead costs. We have recognized and will continue to recognize certain expenses as part of being a publicly traded company, consisting of professional fees and other expenses. As a public company, we incur additional costs associated with accounting, compliance, insurance, and investor relations. We expect our general and administrative expenses to continue to increase in dollar amount for the foreseeable future but to generally decrease as a percentage of our revenues, although the percentage may fluctuate from period to period depending on the timing and amount of our general and administrative expenses. Interest Income and Other Income (Expense), Net and Interest Expense Interest income and other income (expense), net consists of income earned on our marketable securities and investments, in addition to foreign currency transaction gains and losses. Interest expense consists of interest expense from our credit facilities. Provision for Income Taxes Provision for income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. To date, we have not recorded a material provision for income taxes for any of the periods presented other than for foreign income tax. In the United States, we have recorded deferred tax assets for which we provide a full valuation allowance, which primarily include net operating loss carryforwards and research and development tax credit carryforwards. We expect to maintain this full valuation allowance for the foreseeable future as it is more likely than not the deferred tax assets will not be realized based on our history of losses. 28 Results of Operations The following tables set forth our results of operations for the periods presented and as a percentage of our revenues for those periods. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods. Three Months Ended April 30, 2026 2025 (in thousands) Revenues $ 205,095 $ 187,267 Cost of revenues (1) 25,414 19,227 Gross profit 179,681 168,040 Operating expenses: Research and development (1) 66,089 75,127 Sales and marketing (1) 92,464 99,841 General and administrative (1) 36,368 36,976 Total operating expenses 194,921 211,944 Loss from operations (15,240) (43,904) Interest income and other income (expense), net 2,903 5,830 Interest expense (649) (791) Loss before provision for income taxes (12,986) (38,865) Provision for income taxes 1,419 1,153 Net loss $ (14,405) $ (40,018) __________________ (1)Amounts include stock-based compensation expense as follows: Three Months Ended April 30, 2026 2025 (in thousands) Cost of revenues $ 504 $ 344 Research and development 18,068 24,364 Sales and marketing 8,739 14,823 General and administrative 9,011 8,636 Total stock-based compensation expense $ 36,322 $ 48,167 29 The following table sets forth the components of our statements of operations data, for each of the periods presented, as a percentage of revenues. Three Months Ended April 30, 2026 2025 (percent of revenues) Revenues 100 % 100 % Cost of revenues 12 10 Gross margin 88 90 Operating expenses: Research and development 32 40 Sales and marketing 45 53 General and administrative 18 20 Total operating expenses 95 113 Loss from operations (7) (23) Interest income and other income (expense), net 1 3 Interest expense * * Loss before provision for income taxes (6) (21) Provision for income taxes * * Net loss (7) % (21) % _______________ * Less than 1%. Note: Certain figures may not sum due to rounding. Comparison of Three Months Ended April 30, 2026 to Three Months Ended April 30, 2025 Revenues Three Months Ended April 30, 2026 2025 $ Change % Change (dollars in thousands) Revenues $ 205,095 $ 187,267 $ 17,828 10 % Revenues increased $17.8 million, or 10%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced Enterprise+ subscription plan. Cost of Revenues Three Months Ended April 30, 2026 2025 $ Change % Change (dollars in thousands) Cost of revenues $ 25,414 $ 19,227 $ 6,187 32 % Cost of revenues increased $6.2 million, or 32%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The increase was primarily due to an increase of $2.4 million in third-party hosting costs, an increase of $1.9 million in personnel-related costs, an increase of $1.1 million in amortization of capitalized software development costs, an increase of $0.4 million in infrastructure-related costs and an increase of $0.3 million in credit card processing fees. 30 Operating Expenses Three Months Ended April 30, 2026 2025 $ Change % Change (dollars in thousands) Research and development $ 66,089 $ 75,127 $ (9,038) (12) % Sales and marketing 92,464 99,841 (7,377) (7) % General and administrative 36,368 36,976 (608) (2) % Total operating expenses $ 194,921 $ 211,944 $ (17,023) (8) % Research and Development Research and development expenses decreased $9.0 million, or 12%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The decrease was primarily due to a decrease of $7.6 million in personnel-related costs and an increase of $1.4 million in capitalized software costs. Sales and Marketing Sales and marketing expenses decreased $7.4 million, or 7%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The decrease was primarily due to a decrease of $4.2 million in personnel-related costs, a decrease of $2.0 million in travel and entertainment costs, and a decrease of $1.1 million in allocated overhead costs. General and Administrative General and administrative expenses decreased $0.6 million, or 2%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The decrease was primarily due to a decrease of $0.7 million in allocated overhead costs, a decrease of $0.6 million in regulatory and compliance costs, a decrease of $0.5 million in provision for credit losses, and offset by an increase of $1.2 million in professional fees. Interest Income, Interest Expense, and Other Income (Expense), Net Three Months Ended April 30, 2026 2025 $ Change % Change (dollars in thousands) Interest income and other income (expense), net $ 2,903 $ 5,830 $ (2,927) (50) % Interest expense (649) (791) 142 18 % Interest income and other income (expense), net decreased by $2.9 million, or 50%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025, primarily due to a decrease of $2.6 million in foreign currency transaction gains (losses) and a decrease of $0.3 million in interest income on marketable securities. Interest expense decreased by $0.1 million, or 18%, during the three months ended April 30, 2026 compared to the three months ended April 30, 2025, primarily due to a decrease in interest rates. 31 Non-GAAP Financial Measures The following tables present certain non-GAAP financial measures for each period presented below. In addition to our results determined in accordance with 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. Three Months Ended April 30, 2026 2025 (in thousands) Non-GAAP income from operations $ 23,576 $ 8,137 Non-GAAP net income $ 24,411 $ 12,023 Free cash flow $ 34,350 $ 3,995 Adjusted free cash flow $ 34,350 $ 9,882 Non-GAAP Income (Loss) From Operations and Non-GAAP Net Income (Loss) We define non-GAAP income (loss) from operations as loss from operations plus stock-based compensation-related charges including the related employer payroll tax associated with RSUs and amortization of stock-based compensation capitalized in internal-use software, impairment of long-lived assets, restructuring costs, and acquisition-related costs. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and that do not correlate to the operation of the business. The restructuring costs are related to the reduction of our global workforce, which resulted in expenses related to severance, benefits, and other related items. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe the costs associated with restructuring are distinguishable from ongoing operating costs and are not reflective of underlying trends in our business. We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business, to facilitate comparison of our results to those of peer companies, and to facilitate comparison over multiple periods. We define non-GAAP net income (loss) as net loss plus stock-based compensation expense-related charges including the related employer payroll tax associated with RSUs and amortization of stock-based compensation capitalized in internal-use software, impairment of long-lived assets, and restructuring costs. We use non-GAAP income (loss) from operations and non-GAAP net income (loss) in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP net income (loss) provide our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Free Cash Flow and Adjusted Free Cash Flow We define free cash flow as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs. We define adjusted free cash flow as free cash flow plus restructuring costs paid. We believe that free cash flow and adjusted free cash flow are useful indicators of liquidity that provide information to management and investors, even if negative, about the amount of cash used in our operations other than that used for investments in property and equipment and capitalized internal-use software costs, adjusted for expenditures which are distinguishable from our ongoing operations. 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 and adjusted free cash flow do not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. All of these 32 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. The following tables reconcile the most directly comparable GAAP financial measure to each of these non-GAAP financial measures. Non-GAAP Income (Loss) From Operations Three Months Ended April 30, 2026 2025 (in thousands) Loss from operations $ (15,240) $ (43,904) Add: Stock-based compensation-related charges (1) 38,269 49,824 Restructuring costs — 2,217 Acquisition-related costs 547 — Non-GAAP income from operations $ 23,576 $ 8,137 __________________ (1)Stock-based compensation-related charges includes related payroll tax associated with RSUs and amortization of stock-based compensation capitalized in internal-use software. We began excluding amortization of stock-based compensation capitalized in internal-use software from our non-GAAP measures starting in the quarter ended April 30, 2026 and have presented the change prospectively as prior period amounts were immaterial. The amounts of amortization of stock-based compensation capitalized in internal-use software was $1.1 million for the three months ended April 30, 2026 and was $0.6 million for the three months ended April 30, 2025. This change has no impact on our GAAP financial results. Non-GAAP Net Income (Loss) Three Months Ended April 30, 2026 2025 (in thousands) Net loss $ (14,405) $ (40,018) Add: Stock-based compensation-related charges (1) 38,269 49,824 Restructuring costs — 2,217 Acquisition-related costs 547 — Non-GAAP net income $ 24,411 $ 12,023 __________________ (1)Stock-based compensation-related charges includes related payroll tax associated with RSUs and amortization of stock-based compensation capitalized in internal-use software. We began excluding amortization of stock-based compensation capitalized in internal-use software from our non-GAAP measures starting in the quarter ended April 30, 2026 and have presented the change prospectively as prior period amounts were immaterial. The amounts of amortization of stock-based compensation capitalized in internal-use software was $1.1 million for the three months ended April 30, 2026 and was $0.6 million for the three months ended April 30, 2025. This change has no impact on our GAAP financial results. 33 Free Cash Flow and Adjusted Free Cash Flow Three Months Ended April 30, 2026 2025 (in thousands) Net cash (used in) provided by investing activities $ (3,422) $ 4,176 Net cash used in financing activities $ (41,925) $ (5,523) Net cash provided by operating activities $ 40,244 $ 6,764 Less: Purchases of property and equipment (2,808) (638) Capitalized internal-use software costs (3,086) (2,131) Free cash flow $ 34,350 $ 3,995 Add: Restructuring costs paid — 5,887 Adjusted free cash flow $ 34,350 $ 9,882 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, the issuance of senior mandatory convertible promissory notes in January and June 2020 to a trust affiliated with our co-founder, Chair, and former CEO, Dustin Moskovitz, cash generated from the sale of subscriptions to our platform, and financing activities including a private placement transaction with Mr. Moskovitz. We have generated losses from our operations as reflected in our accumulated deficit of $2,209.1 million as of April 30, 2026. As of April 30, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $424.6 million. In November 2022, we entered into a four-year credit agreement with SVB, which provided for a senior secured credit facilities in the aggregate principal amount of up to $150.0 million, consisting of a term loan facility in the aggregate principal amount of $50.0 million and a revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $30.0 million letter of credit sub-facility (as amended on April 13, 2023, June 18, 2024, November 18, 2024, May 29, 2025, and February 26, 2026, the “November 2022 Senior Secured Credit Facility”). The November 2022 Senior Secured Credit Facility refinanced our prior credit agreement with SVB (the “April 2020 Senior Secured Term Loan”) and terminates on November 7, 2026. Borrowings under the November 2022 Senior Secured Credit Facility may be designated as ABR Loans or SOFR Loans, subject to certain terms and conditions under the agreement. Interest will accrue on any outstanding balance at a floating rate tied to the adjusted term SOFR, the prime rate or the federal funds effective rate. Interest is payable monthly in arrears. Pursuant to the terms of the revolving credit facility, we are required to pay an annual commitment fee that accrues at a rate of 0.15% per annum on the unused portion of the borrowing commitments under the revolving credit facility. Refer to Note 6. Debt for further details. As of April 30, 2026, under the November 2022 Senior Secured Credit Facility there was $50.0 million drawn and $38.1 million was outstanding under the term loan, no amounts outstanding under the revolving credit facility and an aggregate $21.7 million in letters of credit issued under the credit sub-facility. Our total available borrowing capacity under the revolving credit facility was $78.3 million as of April 30, 2026. On March 27, 2023, First Citizens BancShares, Inc. (“First Citizens”) announced that it had entered into an agreement to purchase assets and liabilities of SVB, inclusive of our November 2022 Senior Secured Credit Facility. We continue to have the ability to make additional borrowings under the November 2022 Senior Secured Credit Facility which is now held by SVB as a division of First Citizens. In June 2024, our board of directors authorized a stock repurchase program of up to $150.0 million of our outstanding Class A common stock (the “Repurchase Program”). Repurchases are made on the open market, including via pre-set trading plans, in accordance with applicable securities laws. The Repurchase Program is funded 34 using our working capital and was initially authorized through June 2025. The Repurchase Program does not obligate us to acquire any particular amount of Class A common stock, and the Repurchase Program may be suspended or discontinued at any time at our discretion. During the three months ended April 30, 2026, we repurchased 7.4 million shares of our outstanding Class A common stock for an aggregate purchase price of $45.0 million. During the three months ended April 30, 2025, we repurchased 1.0 million shares of our outstanding Class A common stock for an aggregate purchase price of $15.6 million. All shares of Class A common stock repurchased were retired. The Repurchase Program was later amended on May 30, 2025 to remove the original expiration date and authorize the repurchase of an additional $100.0 million of Class A common stock. The Repurchase Program was later amended on February 27, 2026 to authorize the repurchase of an additional $160.0 million of Class A common stock. As of April 30, 2026, $154.5 million remained available for future stock repurchases under the Repurchase Program. The Repurchase Program, as amended, has no specified expiration date and will continue until the funds committed to the Repurchase Program are exhausted or such authorization is revoked by our board of directors. See Note 10. Stockholders’ Equity to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding stock repurchases. A substantial source of our cash provided by operating activities is our customer billings for subscription to our platform. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is included on our condensed consolidated balance sheets as a liability and is recorded as revenues over the term of the subscription agreement. As of April 30, 2026, we had $323.1 million of deferred revenue, of which $322.9 million was recorded as a current liability. This deferred revenue will be recognized as revenues when all of the revenue recognition criteria 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, cash equivalents, marketable securities, and amounts available under our November 2022 Senior Secured Credit Facility will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months. Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, billing frequency, our dollar-based-net-retention rate, the timing and extent of spending to support our research and development efforts, particularly for the introduction of new and enhanced products and features, including the integration of AI in our products, the performance of sales and marketing activities, costs associated with international expansion, additional capital expenditures to invest in existing and new office spaces, as well as increased general and administrative expenses to support being a publicly traded company. We may, in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. Additionally, cash from operations could also be affected by various risks and uncertainties in connection with the impact of an economic downturn or recession, significant market volatility in the global economy, timing and ability to collect payments from our customers and other risks detailed in Part II—Other Information, Item 1A. Risk Factors. Cash Flows The following table shows a summary of our cash flows for the periods presented: Three Months Ended April 30, 2026 2025 (in thousands) Net cash provided by operating activities $ 40,244 $ 6,764 Net cash (used in) provided by investing activities (3,422) 4,176 Net cash used in financing activities (41,925) (5,523) 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-related expenses, marketing expenses, and third-party hosting-related and software expenses. Prior to fiscal 2025, we generated negative cash flows from operating 35 activities and supplemented working capital requirements through net proceeds from the sale of equity and equity-linked securities. Net cash provided by operating activities of $40.2 million for the three months ended April 30, 2026 reflects our net loss of $14.4 million, adjusted by non-cash items such as stock-based compensation expense of $36.3 million, amortization of deferred contract acquisition costs of $6.8 million, depreciation and amortization of $6.1 million, non-cash lease expense of $4.9 million, and provision for expected credit losses of $0.5 million, partially offset by net accretion of discount on marketable securities of $0.3 million, and net cash inflows of $0.3 million from changes in our operating assets and liabilities. The net cash inflows from changes in operating assets and liabilities primarily consisted of a $36.5 million decrease in accounts receivable and a $7.4 million increase in accounts payable. These amounts were partially offset by a $15.5 million decrease in accrued expenses and other liabilities primarily from accrued advertising expenses and accrued payroll liability, a $10.7 million decrease in deferred revenue resulting from decreased billings for subscriptions, a $10.1 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $6.4 million decrease in operating lease liabilities, and a $0.9 million increase in other assets. Net cash provided by operating activities of $6.8 million for the three months ended April 30, 2025 reflects our net loss of $40.0 million, adjusted by non-cash items such as stock-based compensation expense of $48.2 million, amortization of deferred contract acquisition costs of $6.7 million, depreciation and amortization of $5.0 million, non-cash lease expense of $4.5 million, and provision for expected credit losses of $1.0 million, partially offset by net accretion of discount on marketable securities of $0.7 million, and net cash outflows of $17.9 million from changes in our operating assets and liabilities. The net cash outflows from changes in operating assets and liabilities primarily consisted of a $12.5 million decrease in deferred revenue resulting from decreased billings for subscriptions, a $8.8 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $7.4 million decrease in accrued expenses and other liabilities primarily from accrued payroll liabilities, a $5.4 million decrease in operating lease liabilities, a $1.7 million decrease in accounts payable, and a $0.7 million increase in other assets. These amounts were partially offset by a $18.7 million decrease in accounts receivable. Investing Activities Net cash used in investing activities of $3.4 million for the three months ended April 30, 2026 consisted of $50.0 million in purchases of marketable securities, $3.1 million in capitalized internal-use software costs, and $2.8 million in purchases of property and equipment. This was partially offset by $52.5 million in maturities of marketable securities. Net cash provided by investing activities of $4.2 million for the three months ended April 30, 2025 consisted of $41.0 million in maturities of marketable securities, partially offset by $34.1 million in purchases of marketable securities, $2.1 million in capitalized internal-use software costs, and $0.6 million in purchases of property and equipment. Financing Activities Net cash used in financing activities of $41.9 million for the three months ended April 30, 2026 consisted of $45.0 million in repurchases of Class A common stock and $2.5 million in repayment of term loan. This was partially offset by $4.9 million in proceeds from our employee stock purchase plan and $0.7 million in proceeds from the exercise of stock options. Net cash used in financing activities of $5.5 million for the three months ended April 30, 2025 consisted of $14.5 million in repurchases of Class A common stock. This was partially offset by $7.7 million in proceeds from our employee stock purchase plan and $1.3 million in proceeds from the exercise of stock options. Contractual Obligations and Commitments During the three months ended April 30, 2026, there were no material changes in our contractual obligations and other commitments as disclosed in our Annual Report on Form 10-K filed with the SEC on March 13, 2026. 36 For further information on our commitments and contingencies, refer to Note 7. Commitments and Contingencies in the condensed consolidated financial statements contained within this Quarterly Report on Form 10-Q. In November 2022, we entered into the November 2022 Senior Secured Credit Facility with SVB, as discussed in Liquidity and Capital Resources above. 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, in connection with the listing of our Class A common stock on the NYSE, 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 have a material effect on our financial position, results of operations, or cash flows. Critical Accounting Estimates Our unaudited condensed consolidated financial statements are prepared in accordance with 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. Except as noted below, there have been no changes to our critical accounting policies and estimates during the three months ended April 30, 2026 as compared to those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K filed with the SEC on March 13, 2026. Stock-Based Compensation Expense Accounting for stock-based compensation expense related to equity awards requires the use of significant estimates and assumptions, most notably for Performance-Based Awards. Refer to Note 10. Stockholders’ Equity for further discussion of the estimates and assumptions which impact the reported amount and recognition of stock-based compensation expense for Performance-Based Awards, which can contain both market conditions and performance conditions. Recent Accounting Pronouncements See Note 2. Basis of Presentation and Summary of Significant Accounting Policies 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.