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 the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 13, 2026, or our Annual Report. As discussed in the section titled “Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. 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” under Part II, Item 1A in this Quarterly Report on Form 10-Q and under Part I, Item IA in our Annual Report. Overview JFrog provides a foundational platform for managing and securing the software supply chain. The JFrog Platform enables organizations to unify software development, security, governance, and distribution across hybrid teams, including developers, security professionals, Artificial Intelligence/Machine Learning (“AI/ML”) engineers and Artificial Intelligence agents. It supports the consumption, creation, and continuous delivery of software from any user to any destination which we refer to as “Liquid Software.” We have designed our subscription structure and go-to-market strategy to align our growth with the success of our customers. Our business model benefits from our ability to serve the needs of all customers, from individual software developers, security teams, AI/ML teams, and IT operators to the largest organizations, in a value-oriented manner. All references to our customers included in this Quarterly Report on Form 10-Q refer to paying customers. We generate revenue from the sale of subscriptions to customers. We offer subscription tiers for self-managed deployments, where our customers deploy and manage our products across their public cloud, on-premises, private cloud, or hybrid environments, as well as JFrog-managed public cloud deployments, which we refer to as our SaaS subscriptions. Revenue from SaaS subscriptions contributed 53% and 52% of our total revenue for the three and six months ended June 30, 2026, respectively, compared to 45% and 44% for the corresponding periods in 2025, respectively. Our self-managed subscriptions are offered on an annual and multi-year basis, and our SaaS subscriptions are offered on a monthly, annual, and multi-year basis. Revenue from Enterprise Plus subscription represented approximately 59% of our total revenue for the three and six months ended June 30, 2026, respectively, compared to approximately 55% for each of the corresponding periods in 2025. The growth in revenue from our Enterprise Plus subscription demonstrates the increased demand for our end-to-end solutions for customers’ entire software supply chain management. We have an unwavering commitment to the software developer, security teams, AI/ML engineers, and IT operator communities, and show this commitment by offering varying forms of free access to our products in addition to the paid subscriptions described above. This free access takes the form of free trials and open source software, and helps generate demand for our paid offerings within the software developer, security professionals, AI/ML engineers, and IT operator communities. We generated revenue of $163.8 million and $127.2 million for the three months ended June 30, 2026 and 2025, respectively, representing 29% growth, and $317.7 million and $249.6 million for the six months ended June 30, 2026 and 2025, respectively, representing 27% growth. We have continued to invest in our business and had a net loss of $4.2 million and $21.7 million for the three months ended June 30, 2026 and 2025, respectively, and $12.4 million and $40.2 million for the six months ended June 30, 2026 and 2025, respectively. Middle East Conflict On October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel’s southern border from the Gaza Strip and conducted a series of terror attacks on civilian and military targets. Following the attack, Israel declared war against Hamas and commenced a military campaign against these terrorist organizations. Israel has also been involved in military conflicts with Hezbollah, a terrorist organization based in Lebanon, and Iran, both directly and through proxies such as the Houthi movement in Yemen. In October 2025, a ceasefire agreement was reached between Israel and Hamas, leading to a cessation of direct military activities between these parties. In June 2025, following intelligence assessments indicating imminent attacks, Israel conducted strikes against Iranian military and nuclear infrastructure together with the United States, which led to Iranian 23 Table of Contents counterattacks before a ceasefire was reached on June 24, 2025, after 12 days of hostilities. On February 28, 2026, Israel and the United States launched a second, larger-scale offensive against Iran. Iran retaliated with sustained attacks across the Middle East and was joined by renewed Hezbollah attacks on Israel. On April 8, 2026, a temporary ceasefire agreement was reached, resulting in a cessation of military activities. Since then, however, there have been mutual attacks between Iran and the United States, indicating that the situation remains volatile and subject to further escalation. Although we are domiciled in Israel, we are a global, cloud-based company with operations spanning numerous countries and redundant infrastructure and code located outside of Israel. We have activated and maintained a comprehensive three-pillar business continuity plan and have taken the necessary steps, which we believe are in line with such plan, in an effort to ensure that our operations and service to our customers remain consistent. The first pillar is our internal plan focused on the safety of our employees in Israel and maintaining internal communication channels. The second pillar revolves around technology to support the continuity of our services, security, cyber defense, and research and development. The third pillar is dedicated to our external-facing activities to promote the continuity of customer engagements, support, and external communication. While certain of our employees and consultants have been called into military service, there has been no major interruption or material adverse impact on our operating results as of the date of this Quarterly Report on Form 10-Q. We will continue to monitor the situation as it progresses. Factors Affecting Our Performance We believe that our future performance will depend on many factors, including, but not limited to, the following: Extending Our Technology Leadership We intend to continue to enhance our hybrid, universal, end-to-end software supply chain platform by developing new products and expanding the functionality of existing products to maintain our technology leadership. We invest heavily in integrating our products with the major package technologies so that our products can be easily adopted in any development environment. We believe that these integrations increase the value of our platform to our customers, as they provide freedom of choice for software developers, security teams, and IT operators and help avoid vendor lock-in. We intend to expend additional resources in the future to continue introducing new products, features, and functionality. Expanding Usage by Existing Customers We believe that there is a significant opportunity for growth with many of our existing customers. Many customers purchase our products through self-service channels and often materially expand their usage over time. Increased engagement with our products provides our support and customer success teams opportunities to work directly with customers and introduce them to additional products and features, as well as drive usage of our products across large teams and more broadly across organizations. Furthermore, we see expansion opportunities when customers migrate from self-managed subscriptions to SaaS solutions because customers have generally increased their platform usage levels after migration. We will continue to expand our strategic team to identify new use cases and drive expansion and standardization on JFrog within our largest customers, to maintain engineering-level customer support, and to introduce new products and features that are responsive to our customers’ needs. We quantify our expansion across existing customers through our net dollar retention rate. Our net dollar retention rate compares our annual recurring revenue (“ARR”) from the same set of customers across comparable periods. We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers so long as we generate revenue from these customers. We annualize our monthly subscriptions by taking the revenue we would contractually expect to receive from such customers in a given month and multiplying it by 12. We calculate net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). We then calculate the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. We then divide total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. Our net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. Our net dollar retention rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. As of June 30, 2026 and 2025, our net dollar retention rate was 121% and 118%, respectively. We expect our net dollar retention rate to remain relatively stable, with minor fluctuations around current levels. 24 Table of Contents We focus on growing the number of large customers as a measure of our ability to scale with our customers and attract larger organizations to adopt our products. As of June 30, 2026, 1,291 of our customers had ARR of $100,000 or more, increasing from 1,168 customers as of December 31, 2025. We had 97 customers with ARR of at least $1.0 million as of June 30, 2026, increasing from 74 customers as of December 31, 2025. Acquiring New Customers We believe there is a significant opportunity to grow the number of customers that use our platform. Our operating results and growth prospects will depend in part on our ability to attract new customers. To date, we have primarily relied on our self-service and inbound sales model to attract new customers. Prospective customers can evaluate and adopt our products through our free trials and open source software options. The costs associated with providing these free trials and open source software options are included in sales and marketing. While we believe we have a significant market opportunity that our platform addresses, we will need to continue to invest in customer support, research and development, and sales and marketing in order to address this opportunity. Additionally, we believe our products address the software release needs of customers worldwide, and we see international expansion as a major opportunity. We have been operating and selling our products in international markets since our inception. While we believe global demand for our products will continue to increase as international market awareness of our brand grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems, and commercial markets. Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe that free cash flow, a non-GAAP financial measure, is useful in evaluating the performance of our business. Free Cash Flow Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less purchases of property and equipment. We believe this is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property and equipment, can be used for strategic initiatives, including investing in our business, making strategic acquisitions, and strengthening our balance sheet. Free cash flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities. Some of the limitations of free cash flow are that this metric does not reflect our future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure. We expect our free cash flow to fluctuate in future periods as we invest in our business to support our plans for growth. The following table provides a reconciliation of net cash from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, a non-GAAP financial measure, for each of the periods presented: Six Months Ended June 30, 2026 2025 (in thousands) Net cash provided by operating activities $ 95,412 $ 64,877 Less: purchases of property and equipment (4,377 ) (1,274 ) Free cash flow $ 91,035 $ 63,603 25 Table of Contents Components of Results of Operations Revenue Our revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to our self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. Our SaaS subscriptions provide access to our latest managed version of our product hosted in a public cloud. Subscription—Self-Managed and SaaS Subscription—self-managed and SaaS revenue is generated from the sale of subscriptions for our self-managed software products and the sale of our SaaS subscriptions. For subscriptions to our self-managed software products, revenue is recognized ratably over the subscription term. For our SaaS subscriptions, revenue is recognized ratably over each commitment period within the subscription term, based on minimum usage commitments and any excess usage in the corresponding commitment period. License—Self-Managed The license component of our self-managed subscriptions reflects the revenue recognized by providing customers with access to proprietary software features. License revenue is recognized upfront when the software license is made available to our customer. Cost of Revenue Subscription—Self-Managed and SaaS Cost of subscription—self-managed and SaaS revenue primarily consists of expenses related to providing support to our customers and cloud-related costs, such as hosting and managing costs. These costs primarily consist of personnel-related expenses of our services and customer support personnel, share-based compensation expenses, amortization of acquired intangible assets, public cloud infrastructure costs, depreciation of property and equipment, and allocated overhead. We expect our cost of subscription and SaaS revenue to increase in absolute dollars as our subscription and SaaS revenue increases. License—Self-Managed Cost of license self-managed revenue consists of amortization of acquired intangible assets. Operating Expenses Research and Development Research and development costs, net of applicable refundable tax credits, primarily consist of personnel-related expenses, share-based compensation expenses, associated with our engineering personnel responsible for the design, development, and testing of our products, cost of development environments and tools, and allocated overhead. We expect that our research and development expenses will continue to increase as we increase our research and development headcount to further strengthen and enhance our products and invest in the development of our software. Sales and Marketing Sales and marketing expenses primarily consist of personnel-related expenses, share-based compensation expenses, sales commissions, public cloud infrastructure costs associated with our free trials and open source software options, and costs associated with marketing programs and user events. Marketing programs include advertising, promotional events, and brand-building activities. We plan to increase our investment in sales and marketing over the foreseeable future, as we continue to hire additional personnel and invest in sales and marketing programs. General and Administrative General and administrative expenses primarily consist of personnel-related expenses, share-based compensation expenses, associated primarily with our finance, legal, human resources and other operational and administrative functions, professional 26 Table of Contents fees for external legal, accounting and other consulting services, directors and officer’s insurance expenses, and allocated overhead. We expect to increase the size of our general and administrative function to support the growth of our business. Interest and Other Income, Net Interest and other income, net primarily consists of income earned on our cash equivalents and short-term investments. Interest and other income, net also includes foreign exchange gains and losses. Income Tax Expense (Benefit) Income tax expense (benefit) consists primarily of income taxes related to the foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on deferred tax assets in Israel as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance. Results of Operations The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of total revenue for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Revenue: Subscription—self-managed and SaaS $ 155,545 $ 121,071 $ 301,827 $ 237,496 License—self-managed 8,227 6,149 15,922 12,131 Total subscription revenue 163,772 127,220 317,749 249,627 Cost of revenue: Subscription—self-managed and SaaS(1)(2) 36,152 30,202 69,752 60,267 License—self-managed(2) — — — 116 Total cost of revenue—subscription 36,152 30,202 69,752 60,383 Gross profit 127,620 97,018 247,997 189,244 Operating expenses: Research and development(1)(3) 54,028 47,424 105,840 90,759 Sales and marketing(1)(2)(3) 61,142 55,431 118,894 108,243 General and administrative(1)(3) 25,699 20,134 49,443 39,183 Total operating expenses 140,869 122,989 274,177 238,185 Operating loss (13,249 ) (25,971 ) (26,180 ) (48,941 ) Interest and other income, net 7,669 6,305 14,821 12,270 Loss before income taxes (5,580 ) (19,666 ) (11,359 ) (36,671 ) Income tax expense (benefit) (1,415 ) 2,009 1,073 3,507 Net loss $ (4,165 ) $ (21,675 ) $ (12,432 ) $ (40,178 ) _________________________________________ (1) Includes share-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 4,076 $ 4,209 $ 8,169 $ 8,410 Research and development 13,981 14,186 28,191 28,163 Sales and marketing 12,518 13,357 25,327 26,087 General and administrative 9,002 6,257 17,517 12,194 Total share-based compensation expense $ 39,577 $ 38,009 $ 79,204 $ 74,854 27 Table of Contents (2) Includes amortization expense of acquired intangible assets as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 4,498 $ 4,497 $ 8,996 $ 8,996 Cost of revenue: license—self-managed — — — 116 Sales and marketing 175 1,169 350 2,371 Total amortization expense of acquired intangible assets $ 4,673 $ 5,666 $ 9,346 $ 11,483 (3) Includes acquisition-related costs as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Research and development $ 1,101 $ 1,160 $ 2,187 $ 2,340 Sales and marketing 472 474 938 937 General and administrative 20 17 39 32 Total acquisition-related costs $ 1,593 $ 1,651 $ 3,164 $ 3,309 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue: Subscription—self-managed and SaaS 95 % 95 % 95 % 95 % License—self-managed 5 5 5 5 Total subscription revenue 100 100 100 100 Cost of revenue: Subscription—self-managed and SaaS 22 24 22 24 License—self-managed — — — — Total cost of revenue—subscription 22 24 22 24 Gross profit 78 76 78 76 Operating expenses: Research and development 33 37 33 36 Sales and marketing 37 43 37 44 General and administrative 16 16 16 16 Total operating expenses 86 96 86 96 Operating loss (8 ) (20 ) (8 ) (20 ) Interest and other income, net 5 5 4 5 Loss before income taxes (3 ) (15 ) (4 ) (15 ) Income tax expense (benefit) — 2 — 1 Net loss (3 )% (17 )% (4 )% (16 )% Comparison of the Three Months Ended June 30, 2026 and 2025 Revenue Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Subscription—self-managed and SaaS $ 155,545 $ 121,071 $ 34,474 28 % License—self-managed 8,227 6,149 2,078 34 % Total subscription revenue $ 163,772 $ 127,220 $ 36,552 29 % The increase in total subscription revenue for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 consisted of approximately $30.3 million in growth from existing customers and the remaining attributable to new customers. 28 Table of Contents Cost of Revenue and Gross Margin Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Subscription—self-managed and SaaS $ 36,152 $ 30,202 $ 5,950 20 % License—self-managed — — — — % Total cost of revenue—subscription $ 36,152 $ 30,202 $ 5,950 20 % Gross margin 78 % 76 % Total cost of revenue increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $4.2 million in third-party hosting costs mainly driven by increased revenue from SaaS subscriptions and an increase of $1.4 million in personnel-related expenses mainly as a result of increased headcount. Gross margin increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to revenue growth with improved operating leverage. Operating Expenses Research and Development Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Research and development $ 54,028 $ 47,424 $ 6,604 14 % Research and development expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $6.1 million in personnel-related expenses mainly as a result of increased headcount and an increase of $2.3 million in costs for third-party software, development environment, and engineering tools, partially offset by $1.5 million refundable tax credits commencing in 2026. Sales and Marketing Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Sales and marketing $ 61,142 $ 55,431 $ 5,711 10 % Sales and marketing expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily attributable to an increase of $4.9 million in personnel-related expenses mainly as a result of increased headcount. General and Administrative Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) General and administrative $ 25,699 $ 20,134 $ 5,565 28 % General and administrative expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $2.7 million in share-based compensation expense as discussed in the section titled “Share-Based Compensation Expense” below and an increase of $2.3 million in personnel-related expenses mainly as a result of increased headcount. 29 Table of Contents Share-based Compensation Expense Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Cost of revenue: subscription–self-managed and SaaS $ 4,076 $ 4,209 $ (133 ) (3 )% Research and development 13,981 14,186 (205 ) (1 )% Sales and marketing 12,518 13,357 (839 ) (6 )% General and administrative 9,002 6,257 2,745 44 % Total share-based compensation expense $ 39,577 $ 38,009 $ 1,568 4 % Share-based compensation expenses increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily within general and administrative expenses. The increase was attributable to equity awards granted to new and existing employees and an increased allocation to general and administrative functions. Interest and Other Income, Net Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Interest and other income, net $ 7,669 $ 6,305 $ 1,364 22 % Interest and other income, net increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher interest income on short-term investments as a result of higher investment balances. Income Tax Expense (Benefit) Three Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Income tax expense (benefit) $ (1,415 ) $ 2,009 $ (3,424 ) (170 )% Effective income tax rate 25 % (10 )% Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance. Comparison of the Six Months Ended June 30, 2026 and 2025 Revenue Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Subscription—self-managed and SaaS $ 301,827 $ 237,496 $ 64,331 27 % License—self-managed 15,922 12,131 3,791 31 % Total subscription revenue $ 317,749 $ 249,627 $ 68,122 27 % The increase in total subscription revenue for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 consisted of approximately $58.0 million in growth from existing customers and the remaining attributable to new customers. 30 Table of Contents Cost of Revenue and Gross Margin Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Subscription—self-managed and SaaS $ 69,752 $ 60,267 $ 9,485 16 % License—self-managed — 116 (116 ) (100 )% Total cost of revenue—subscription $ 69,752 $ 60,383 $ 9,369 16 % Gross margin 78 % 76 % Total cost of revenue increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to an increase of $6.2 million in third-party hosting costs mainly driven by increased revenue from SaaS subscriptions and an increase of $2.9 million in personnel-related expenses mainly as a result of increased headcount. Gross margin increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to revenue growth with improved operating leverage. Operating Expenses Research and Development Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Research and development $ 105,840 $ 90,759 $ 15,081 17 % Research and development expense increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to an increase of $13.3 million in personnel-related expenses mainly as a result of increased headcount and an increase of $3.8 million in costs for third-party software, development environment, and engineering tools, partially offset by $1.5 million refundable tax credits commencing in 2026. Sales and Marketing Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Sales and marketing $ 118,894 $ 108,243 $ 10,651 10 % Sales and marketing expense increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to an increase of $9.2 million in personnel-related expenses mainly as a result of increased headcount and an increase of $2.0 million in commissions, partially offset by a decrease of $2.0 million in intangible amortization due to certain intangibles becoming fully amortized. General and Administrative Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) General and administrative $ 49,443 $ 39,183 $ 10,260 26 % General and administrative expense increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to an increase of $5.3 million in share-based compensation expense as discussed in the section titled “Share-Based Compensation Expense” below and an increase of $4.3 million in personnel-related expenses mainly as a result of increased headcount. 31 Table of Contents Share-based Compensation Expense Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentages) Cost of revenue: subscription–self-managed and SaaS $ 8,169 $ 8,410 $ (241 ) (3 )% Research and development 28,191 28,163 28 0 % Sales and marketing 25,327 26,087 (760 ) (3 )% General and administrative 17,517 12,194 5,323 44 % Total share-based compensation expense $ 79,204 $ 74,854 $ 4,350 6 % Share-based compensation expenses increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily within general and administrative expenses. The increase was attributable to equity awards granted to new and existing employees and an increased allocation to general and administrative functions. Interest and Other Income, Net Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Interest and other income, net $ 14,821 $ 12,270 $ 2,551 21 % Interest and other income, net increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to higher interest income on short-term investments as a result of higher investment balances. Income Tax Expense Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands, except percentage) Income tax expense $ 1,073 $ 3,507 $ (2,434 ) (69 )% Effective income tax rate (9 )% (10 )% Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance. Liquidity and Capital Resources Since our inception, we have financed our operations primarily through cash generated from operations and sales of equity securities. Our principal uses of cash in recent periods have been funding our operations, investing in capital expenditures, and business and asset acquisitions. As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term investments of $824.5 million. Cash and cash equivalents primarily consist of cash in banks and money market funds. Short-term investments generally consist of bank deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, and government and agency debt. We believe our existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet our needs for the next 12 months, as well as in the long-term. Our future capital requirements will depend on many factors including our revenue growth rate, subscription renewal activity, billing frequency, the timing, and extent of spending to support further sales and marketing and research and development efforts, the continuing market acceptance of our products and services, as well as expenses associated with our international expansion, the timing, and extent of additional capital expenditures to invest in existing and new office spaces. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights; additionally, we may repurchase our ordinary shares from time to time under our share repurchase program. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, 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, results of operations, and financial condition would be materially and adversely affected. 32 Table of Contents The following table summarizes our cash flows for the periods presented: Six Months Ended June 30, 2026 2025 (in thousands) Net cash provided by operating activities $ 95,412 $ 64,877 Net cash used in investing activities $ (103,130 ) $ (85,330 ) Net cash provided by financing activities $ 28,885 $ 21,097 Operating Activities Net cash provided by operating activities of $95.4 million for the six months ended June 30, 2026 was related to our net loss of $12.4 million adjusted for non-cash charges of $93.1 million, including share-based compensation expense of $79.2 million and depreciation and amortization expense of $11.1 million, and changes in our operating assets and liabilities of $14.7 million. Changes in our operating assets and liabilities were primarily related to an increase of $43.8 million in deferred revenue and an increase of $16.3 million in accrued expense and other liabilities mainly due to accrued compensation and benefits, accrued acquisition-related compensation, and incentives received in connection with a lease that has not commenced. The inflows were partially offset by an increase of $15.9 million in accounts receivable, an increase of $10.6 million in deferred contract acquisition costs, an increase of $8.5 million in prepaid expenses and other assets mainly due to timing of payments for software subscriptions and hosting services, and a decrease of $6.1 million in accounts payable due to timing of payments. The increases in deferred revenue, accounts receivable, and deferred contract acquisition costs were driven by higher sales. Net cash provided by operating activities of $64.9 million for the six months ended June 30, 2025 was related to our net loss of $40.2 million adjusted for non-cash charges of $89.0 million, including share-based compensation expense of $74.9 million and depreciation and amortization expense of $13.3 million, and changes in our operating assets and liabilities of $16.0 million. Changes in our operating assets and liabilities were primarily related to an increase of $9.5 million in accrued expense and other liabilities mainly due to accrued compensation and benefits and accrued acquisition-related compensation, a decrease of $7.7 million in accounts receivable due to timing of collection, and an increase of $7.6 million in deferred revenue. The inflows were partially offset by a decrease of $4.3 million in operating lease liabilities as a result of payments, and an increase of $3.1 million in deferred contract acquisition costs. The increases in deferred revenue and deferred contract acquisition costs were driven by higher sales. Investing Activities Net cash used in investing activities of $103.1 million for the six months ended June 30, 2026 consisted primarily of net purchases of short-term investments of $98.8 million. Net cash used in investing activities of $85.3 million for the six months ended June 30, 2025 consisted primarily of net purchases of short-term investments of $84.1 million. Financing Activities Net cash provided by financing activities of $28.9 million for the six months ended June 30, 2026 consisted primarily of net proceeds from employee equity transactions to be remitted to tax authorities or refunded to employees of $18.0 million and proceeds from employee share purchases under our ESPP of $8.2 million. Net cash provided by financing activities of $21.1 million for the six months ended June 30, 2025 consisted of net proceeds from employee equity transactions to be remitted to tax authorities or refunded to employees of $7.9 million, proceeds from exercise of share options of $6.9 million, and proceeds from employee share purchases under our ESPP of $6.3 million. 33 Table of Contents Material Cash Requirements Contractual Obligations The following table summarizes our non-cancellable contractual obligations as of June 30, 2026: Payments Due by Period Total 2026 (Remainder) 2027 and Thereafter (in thousands) Operating lease obligations $ 17,247 $ 2,303 $ 14,944 Purchase obligations 264,969 23,160 241,809 Total $ 282,216 $ 25,463 $ 256,753 As of June 30, 2026, we had an additional commitment of $122.2 million under an operating lease for office space that we occupied beginning in July 2026 and has a lease term of 10 years. The contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding. Purchase obligations represent our commitments primarily for hosting services, software products and services under contracts with remaining terms of 12 months or longer. Obligations under contracts that we can cancel without a significant penalty are not included in the table above. We believe we will have sufficient liquidity from our operations to fulfill the commitments. Share Repurchases In February 2026, the Board of Directors approved a share repurchase program authorizing the repurchase of up to $300.0 million of our ordinary shares. The program became effective in March 2026 and has no expiration date but may be suspended, terminated, or modified at any time. Shares may be repurchased from time to time in the open market or through negotiated transactions at prevailing market rates, or by other means in accordance with U.S. federal securities laws. The timing of the repurchases will depend on certain factors, including market conditions, prices, and management’s discretion. As of June 30, 2026, $298.0 million remained available for repurchases. Critical Accounting Policies and Estimates Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as 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. As events continue to evolve and additional information becomes available, our estimates and assumptions may change materially in future periods. Our critical accounting policies and estimates were disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. There have been no significant changes to these policies and estimates during the six months ended June 30, 2026. 34 Table of Contents