The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), and our audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 (the “2026 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on March 19, 2026. This discussion, particularly information with respect to our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Form 10-Q. You should review the disclosure under the heading “Risk Factors” in this Form 10-Q for a discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements. Overview Sprinklr provides a Unified Customer Experience Management (“Unified-CXM”) platform designed to help organizations manage customer interactions across multiple channels and teams. Our AI-native platform enables customer-facing teams, from Customer Service to Marketing, to collaborate across internal silos, communicate with customers across digital and traditional channels, and leverage AI to deliver improved customer experiences at scale. Sprinklr has four main product suites: Sprinklr Social, Sprinklr Insights, Sprinklr Marketing, and Sprinklr Service. We believe that these four suites enable large and leading brands to more effectively reach, engage, and listen to their customers on the channel of their choice. We continue to invest in our Unified-CXM platform and develop new features and enhancements for each suite in response to evolving customer needs. Our Unified-CXM platform utilizes an architecture purpose-built for managing Customer Experience Management (“CXM”) data and is powered by proprietary AI, collaborative workflow, automation, broad-based listening, and customer-led governance. This architecture is designed to help enterprises analyze massive amounts of unstructured and structured data. We generate revenue primarily from the sale of subscriptions to our Unified-CXM platform and related professional services. Our platform includes products that are licensed on a per-user basis as well as products that are licensed based on different volume tiers. Our customer base is diverse, spanning global enterprises across a broad array of industries and geographies, as well as marketing agencies, government departments, non-profit, and educational institutions. As of April 30, 2026, we have customers in more than 90 countries, with our platform supporting over 150 languages. Key Business Metrics We review a number of operating and financial metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. RPO and cRPO Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of April 30, 2026, our RPO was $1,038.3 million, and our cRPO was $627.1 million. Net Dollar Expansion Rate We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation, or expansion during the period, but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 103.5% and 101.8% for the 12-month periods ended April 30, 2026 and 2025, respectively. 23 Macroeconomic and Geopolitical Considerations Unfavorable economic conditions in the United States (“U.S.”) and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic and geopolitical events, including fluctuations in inflation, interest, and foreign currency rates, the imposition of tariffs in the U.S. and abroad, the Russia-Ukraine war, the 2026 Iran conflict and other military conflicts in the Middle East, and the 2025 U.S. government shutdown, have led to economic uncertainty both in the U.S. and globally. Historically, during periods of economic and geopolitical uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses. While we have experienced growing inflationary pressures on the cost of wages, rent, and data, the net result of inflationary impacts and our efforts to mitigate these impacts have not been material to us during the periods included in this report. In addition, general economic weakness may lead to longer collection cycles for payments due from our customers and an increase in customer provision for credit losses, as well as restructuring initiatives and associated expenses, and customers and potential customers may require extended financial concessions, which could result in adjustments to revenue recognition. Further, geopolitical events, such as Russia-Ukraine war, the 2026 Iran conflict, and other military or security-related events globally, may adversely affect our business. For example, our operations in the Middle East have been affected by the 2026 Iran conflict, including disruptions to our business activities in the region and inaccessibility, and potential loss, of certain customer data in connection with a third-party data center infrastructure in the United Arab Emirates on which we relied. Such events may result in a decrease in customer demand for our services, increased scrutiny from customers and regulators, and damage our reputation, which could adversely affect our business, financial condition, and results of operations. Further, we may incur significant and unanticipated expenses to mitigate the possibility of further harm, including through emergency data transfers, temporary changes to data processing locations, increased infrastructure costs, or as through the relocation of our employees or data to other regions not affected by the conflict. The effect of macroeconomic and geopolitical conditions may not be fully reflected in our results of operations until future periods. If, however, economic uncertainty increases or the global economy worsens, our business, financial condition, and results of operations may be harmed. For further discussion of the potential impacts of macroeconomic events on our business, financial condition, and operating results, see “Part II. Item 1A. Risk Factors” in this Form 10-Q and “Part I. Item 1A. Risk Factors” of the 2026 10-K. Components of Results of Operations Revenue We generate revenue from the sale of subscriptions to our Unified-CXM cloud-based software platform and related professional services. Subscription revenue consists primarily of fees for accessing our proprietary Unified-CXM platform, as well as related stand-ready services, and is generally recognized ratably over the committed subscription term. The majority of our subscription contracts have a term of two to three years. Historically, we have experienced seasonality in our sales cycle, as a large percentage of our customers make their purchases in the fourth quarter of a given fiscal year and pay us in the first quarter of the subsequent year. This seasonality may be reflected to a much lesser extent, and sometimes may not be immediately apparent, in our revenue, due to the fact that we recognize subscription revenue over the term of the applicable subscription agreement. Professional services revenue consists primarily of fixed-fee arrangements to provide implementation and managed services for our Unified-CXM platform. For managed services, our consultants work alongside our customers’ teams to help them realize their CXM goals, including platform configuration, ongoing education and ad-hoc support. Cost of Revenue Cost of subscription revenue consists primarily of costs to host our software platform; data costs, including cost of third-party data utilized in our platform; personnel-related expenses for our subscription and support operations personnel, including salaries, benefits, bonuses and stock-based compensation; professional fees; software costs; travel expenses; the amortization of our capitalized internal-use software; and allocated overhead expenses, including facilities costs for our subscription and support operations. We expect that cost of subscription revenue will increase in absolute dollars as we expand our customer base and make continued investments in our cloud infrastructure and support organization. Furthermore, we estimate that data and hosting costs with various partners may rise in the near term. Cost of professional services revenue consists primarily of personnel-related expenses for our professional services personnel, including salaries, benefits, bonuses and stock-based compensation; professional fees; software costs; subcontractor costs; travel expenses; and allocated overhead expenses, including facilities costs, for our professional services organization. We expect that our cost of professional services may vary from period to period based on the project-based nature of this work, which could include increased use of partners and additional headcount for the delivery of implementation services. 24 Gross Profit and Gross Margin Gross profit is defined as total revenue less total cost of revenue. Gross margin is gross profit expressed as a percentage of total revenue. We expect that gross profit and gross margin will continue to be affected by various factors, including our pricing, revenue mix and the costs required to deliver those revenues. Our gross margin on subscription revenue is significantly higher than our gross margin on professional services revenue, and as a result, our gross margin may vary from period to period if our mix of revenue or cost of revenue fluctuates. In addition, because personnel-related expenses represent the largest component of cost of professional services revenue, we may experience changes in our professional services gross margin due to the timing of delivery of those services. We expect that our gross margin will decline in the near term due to higher data and hosting costs, coupled with higher service delivery costs, and, in the long term, will vary from period to period. Operating Expenses Our operating expenses consist of research and development, sales and marketing, general and administrative and restructuring expenses. Research and Development Expenses Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of our cloud-based software platform and includes personnel-related expense for our research and development organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. We expect research and development expenses to generally increase in absolute dollars as we continue to innovate and invest in enhancing and expanding the capabilities of our Unified-CXM platform. Sales and Marketing Expenses Sales and marketing expenses consist primarily of personnel-related expenses for our sales and marketing organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, software costs, advertising, marketing, promotional and brand awareness activities, travel expenses and allocated overhead expense, including facilities costs. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over the expected period of benefit. We expect sales and marketing expenses to generally increase in absolute dollars as we continue to drive the growth of our business. We continue to optimize our sales and marketing expenses and seek efficiencies in our investments. General and Administrative Expenses General and administrative expenses include personnel-related expenses associated with administrative services, such as legal, human resources, information technology, accounting, and finance functions, as well as professional fees, software costs, travel expenses, provision for credit losses and allocated overhead expense, including facilities costs and any corporate overhead expenses not allocated to other expense categories. Restructuring Expenses Restructuring expenses include costs associated with the global workforce reductions implemented in fiscal year 2026. The majority of these costs consist of severance, benefits and the acceleration of equity awards. We do not expect to incur any further restructuring expenses with respect to the workforce reductions implemented in fiscal year 2026. Other Income, Net Other income, net, consists of interest income on invested cash and cash equivalents and marketable securities, foreign currency transaction gains and losses and other expenses and gains. Provision for Income Taxes Provision for income taxes consists primarily of income taxes related to foreign and U.S. jurisdictions in which we conduct business. Our annual estimated effective tax rate differed from the U.S. federal statutory rate in fiscal year 2027 and 2026 primarily due to the impact of non-deductible items, stock-based compensation expense and the foreign tax rate differential on non-U.S. income and withholding taxes, as well as changes in our uncertain tax positions. 25 Results of Operations The following table sets forth our condensed consolidated statements of operations data for the periods indicated: Three Months Ended April 30, (in thousands) 2026 2025 Revenue: Subscription $ 194,789 $ 184,127 Professional services 24,690 21,373 Total revenue 219,479 205,500 Cost of revenue: Subscription (1) 50,854 42,186 Professional services (1) 25,594 20,445 Total cost of revenue 76,448 62,631 Gross profit 143,031 142,869 Operating expenses: Research and development (1) 23,360 22,811 Sales and marketing (1) 74,931 71,071 General and administrative (1) 34,785 34,429 Restructuring (1) (654) 16,313 Total operating expenses 132,422 144,624 Operating income (loss) 10,609 (1,755) Other income, net 5,689 6,930 Income before provision for income taxes 16,298 5,175 Provision for income taxes 12,117 6,743 Net income (loss) $ 4,181 $ (1,568) (1) Includes stock-based compensation expense, net of amounts capitalized, as follows: Three Months Ended April 30, (in thousands) 2026 2025 Cost of revenue: Subscription $ 348 $ 265 Professional services 778 392 Research and development 4,174 3,886 Sales and marketing 4,797 6,295 General and administrative 9,904 9,576 Restructuring — 866 Stock-based compensation expense, net of amounts capitalized $ 20,001 $ 21,280 26 The following table sets forth our condensed consolidated statements of operations data expressed as a percentage of total revenue (1): Three Months Ended April 30, 2026 2025 Revenue: Subscription 89 % 90 % Professional services 11 % 10 % Total revenue 100 % 100 % Cost of revenue: Subscription 23 % 21 % Professional services 12 % 10 % Total cost of revenue 35 % 30 % Operating expenses: Research and development 11 % 11 % Sales and marketing 34 % 35 % General and administrative 16 % 17 % Restructuring 0 % 8 % Total operating expenses 60 % 70 % Operating income (loss) 5 % (1) % Other income, net 3 % 3 % Income before provision for income taxes 7 % 3 % Provision for income taxes 6 % 3 % Net income (loss) 2 % (1) % (1) Totals may not foot due to rounding Comparison of the Three Months Ended April 30, 2026 and 2025 Revenue Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Subscription $ 194,789 $ 184,127 $ 10,662 6 % Professional services 24,690 21,373 3,317 16 % Total revenue $ 219,479 $ 205,500 $ 13,979 7 % The increase in subscription revenue was primarily attributable to growth from existing customers, driven by customers expanding their use of our platform, both by increasing their subscription volumes and adding new features. These gains were partially offset by non-renewals and reductions in contract size, particularly among customers adjusting budgets or deferring investments in response to broader economic pressures. The increase in professional services revenue was primarily due to implementation services provided in connection with large-scale enterprise projects. 27 Cost of Revenue and Gross Margin Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Cost of revenue: Subscription $ 50,854 $ 42,186 $ 8,668 21 % Professional services 25,594 20,445 5,149 25 % Total cost of revenue $ 76,448 $ 62,631 $ 13,817 22 % Gross margin - subscription 74 % 77 % Gross margin - professional services (4) % 4 % The increase in cost of subscription revenue was primarily due to (i) an increase of $5.7 million in third-party cloud, data and network infrastructure costs, partially attributable to increased customer demand, as well as higher rates from our third-party providers, and (ii) higher personnel-related costs of $1.7 million, partially driven by increased headcount. The increase in cost of professional services revenue was primarily due to (i) a $3.2 million increase in subcontractor costs as a result of higher partner delivery costs and (ii) higher personnel-related costs of $1.6 million, partially driven by increased headcount. Gross margin for subscription decreased by three percentage points, primarily driven by increased costs associated with third-party cloud, data, and network infrastructure. Gross margin for professional services decreased by eight percentage points, largely driven by higher delivery costs associated with complex implementations. Research and Development Expenses Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Research and development $ 23,360 $ 22,811 $ 549 2 % % of revenue 11 % 11 % Research and development expenses remained relatively flat compared to the prior year period. Sales and Marketing Expenses Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Sales and marketing $ 74,931 $ 71,071 $ 3,860 5 % % of revenue 34 % 35 % The increase in sales and marketing expenses was primarily due to an increase in personnel costs of $5.3 million, including higher amortization expense resulting from previously capitalized sales commissions, and was partially offset by lower operational costs. General and Administrative Expenses Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change General and administrative $ 34,785 $ 34,429 $ 356 1 % % of revenue 16 % 17 % General and administrative expenses remained relatively flat compared to the prior year period. 28 Restructuring Expenses Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Restructuring $ (654) $ 16,313 $ (16,967) (104) % % of revenue N.M. 8 % N.M. - not meaningful The decrease in restructuring expenses was primarily attributable to workforce reduction initiatives implemented in the first quarter of fiscal year 2026, which were substantially completed during fiscal year 2026, whereas no comparable workforce reduction initiatives were undertaken in the first quarter of fiscal year 2027. Refer to Note 13, Restructuring Charges, included in “Part I. Item 1. Financial Statements” of this Form 10-Q for additional information related to our restructuring charges. Other Income, Net Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Other income, net $ 5,689 $ 6,930 $ (1,241) (18) % % of revenue 3 % 3 % The decrease in other income, net was primarily due to (i) lower interest income from money market and short-term investments, resulting from lower average balances and interest rates, and (ii) lower net foreign currency losses. Provision for Income Taxes Three Months Ended April 30, (in thousands) 2026 2025 $ Change % Change Provision for income taxes $ 12,117 $ 6,743 $ 5,374 80 % % of revenue 6 % 3 % The increase in provision for income tax relates primarily to increases in the income before provision for income taxes for the three months ended April 30, 2026 compared to the prior period. The provision for income tax for the three months ended April 30, 2026 also includes a $3.8 million discrete income tax charge for non-deductible stock-based compensation and a $2.3 million discrete income tax charge for changes to our uncertain tax positions related to our non-U.S. entities. 29 Non-GAAP Financial Measures In addition to our results determined in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”), we believe that the following non-GAAP financial measures are useful in evaluating our operating performance: •Non-GAAP gross profit and non-GAAP gross margin; •Non-GAAP operating income and non-GAAP operating margin; and •Non-GAAP net income and non-GAAP net income per share. We define these non-GAAP financial measures as the respective U.S. GAAP measures, excluding, as applicable, stock-based compensation expense and related charges; amortization of stock-based compensation expense associated with capitalized internal-use software; amortization of acquired intangible assets; restructuring charges; costs associated with acquisitions; litigation, settlement, and related costs deemed unrelated to our core business operations; facility exit costs; and the estimated tax effect of these non-GAAP adjustments. We believe that it is useful to exclude these items in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods. In addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters and experience higher collections of accounts receivable in the first half of the year, which results in a decrease in accounts receivable in the first half of the year. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our condensed consolidated financial statements presented in accordance with U.S. GAAP. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP: Three Months Ended April 30, (in thousands) 2026 2025 Non-GAAP gross profit and gross margin: U.S. GAAP gross profit $ 143,031 $ 142,869 Stock-based compensation expense and related charges(1) 1,152 670 Amortization of stock-based compensation expense - capitalized internal-use software 637 649 Non-GAAP gross profit $ 144,820 $ 144,188 Gross margin 65 % 70 % Non-GAAP gross margin 66 % 70 % Non-GAAP operating income and operating margin: U.S. GAAP operating income (loss) $ 10,609 $ (1,755) Stock-based compensation expense and related charges(2) 20,495 20,764 Amortization of stock-based compensation expense - capitalized internal-use software 637 649 Litigation costs(3) 648 769 Restructuring costs(4) (654) 16,313 Non-GAAP operating income $ 31,735 $ 36,740 Operating margin 5 % (1) % Non-GAAP operating margin 14 % 18 % (1) Employer payroll tax related to stock-based compensation for the periods ended April 30, 2026 and 2025 was immaterial as to the impact to gross profit. 30 (2) Includes employer payroll tax related to stock-based compensation expense of $0.5 million and $0.4 million for the three months ended April 30, 2026 and 2025, respectively. (3) Relates to litigation, settlement, and related costs deemed unrelated to our core business operations. (4) Includes employer payroll tax related to restructuring expenses of nil and $0.7 million for the three months ended April 30, 2026 and 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information. Three Months Ended April 30, 2026 2025 (in thousands) Per Share-Basic Per Share-Diluted (in thousands) Per Share-Basic Per Share-Diluted Non-GAAP net income and earnings per share: U.S. GAAP net income (loss) $ 4,181 $ 0.02 $ 0.02 $ (1,568) $ (0.01) $ (0.01) Stock-based compensation expense and related charges(1) 20,495 0.09 0.08 20,764 0.09 0.08 Amortization of stock-based compensation expense - capitalized internal-use software 637 — — 649 — — Income tax expense(2) 2,387 0.01 0.01 (4,611) (0.01) (0.01) Litigation costs(3) 648 — — 769 — — Restructuring costs(4) (654) — — 16,313 0.06 0.06 Non-GAAP net income $ 27,694 $ 0.12 $ 0.11 $ 32,316 $ 0.13 $ 0.12 Weighted-average shares outstanding 240,518 243,135 256,647 267,528 (1) Includes employer payroll tax related to stock-based compensation expense of $0.5 million and $0.4 million for the three months ended April 30, 2026 and 2025, respectively. (2) Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for both the three months ended April 30, 2026 and 2025. The Company uses an annual tax rate in its computation of the non-GAAP income tax provision and excludes the direct impact of stock-based compensation expense, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs, restructuring costs, and settlement of prior year tax positions. (3) Relates to litigation, settlement, and related costs deemed unrelated to our core business operations. (4) Includes employer payroll tax related to restructuring expenses of nil and $0.7 million, for the three months ended April 30, 2026 and 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information. (in thousands) Three Months Ended April 30, Free cash flow: 2026 2025 Net cash provided by operating activities $ 70,376 $ 83,776 Purchase of property and equipment (328) (289) Capitalized internal-use software (4,233) (2,786) Free cash flow $ 65,815 $ 80,701 Liquidity and Capital Resources Overview As of April 30, 2026, our principal sources of liquidity were $163.3 million of cash and cash equivalents and $279.5 million of highly liquid marketable securities. We believe that our existing cash, cash equivalents, marketable securities, and cash from operations will be sufficient to meet our working capital needs, capital expenditures, and financing obligations for at least the next 12 months and over the long term. The majority of our cash, cash equivalents, and marketable securities is held in the U.S., and we do not anticipate a need to repatriate cash held outside of the U.S. Further, it is our intent to indefinitely reinvest these funds outside the U.S., and, therefore, we have not provided for any U.S. income taxes. 31 Cash Collateral Agreements and Restricted Cash We maintain cash collateral agreements in lieu of letter of credit facilities for certain leases and customer contracts. As of April 30, 2026, $8.5 million was outstanding under these cash collateral agreements. For additional information regarding our collateral agreements, see Note 8, Commitments and Contingencies, included in “Part I, Item 1. Financial Statements” of this Form 10-Q. Share Repurchase Program On March 11, 2026, we announced that our board of directors (the “Board”) had authorized and approved a share repurchase plan (the “2026 Share Repurchase Program”), whereby we were authorized to periodically repurchase up to $200 million of Class A common stock through March 15, 2027. The 2026 Share Repurchase program consists of the following components: (i) a variable tenor accelerated share repurchase agreement (“ASR Agreement”) for $125 million under the 2026 Share Repurchase Program, which was entered into on March 13, 2026, and (ii) an authorization to purchase up to an additional $75 million of Class A common stock at the Company’s discretion over the next year, subject to market conditions and other factors. Repurchases under the program are expected to be funded using cash on hand, cash equivalents, and marketable securities. For additional information regarding the 2026 Share Repurchase Program, including the ASR Agreement, see “Part II, Item 2. “Issuer Purchases of Equity Securities” of this Form 10-Q and Note 9, Stockholders’ Equity, included in “Part I, Item 1. Financial Statements” of this Form 10-Q. Material Cash Requirements Our expected material cash requirements include obligations under data and service provider agreements, operating leases and the 2026 Share Repurchase Program. We have agreements in place with data and service providers that require us to make certain minimum guaranteed purchase commitments through fiscal year 2029, which totaled $117.2 million as of January 31, 2026, of which $70.9 million is due within 12 months from January 31, 2026. In the normal course of business, we may renew existing contracts throughout the year. In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2036. Refer to Note 7, Leases, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for a discussion of our leases. For additional information regarding the 2026 Share Repurchase Program and its expected funding sources, see “Share Repurchase Programs” above. There were no other significant changes in our material cash requirements as compared to the material cash requirements from known contractual and other obligations described in the 2026 10-K. Future Funding Requirements Our future capital requirements will depend on many factors, including our growth rate, the expansion of our direct sales force, strategic relationships, and international operations, the timing and extent of spending to support research and development efforts, and the continuing market acceptance of our solutions. We historically have expanded our business in part by investing in strategic growth initiatives, including acquisitions of products, technologies and businesses. We may finance such acquisitions using cash, debt, stock or a combination of the foregoing; however, we have used cash and stock as consideration for substantially all of our historical business acquisitions. We continually examine our options with respect to terms and sources of existing and future short-term and long-term capital resources to enhance our operating results and to ensure that we retain financial flexibility, and may from time to time elect to raise capital through the issuance of additional equity or the incurrence of debt. Sales of additional equity could result in dilution to our stockholders. If we raise funds by borrowing from third parties, the terms of those financing arrangements would require us to incur interest expense and may include negative covenants or other restrictions on our business that could impair our operating flexibility. We can provide no assurance that financing will be available at all or, if available, that we would be able to obtain financing on terms favorable to us. If we are unable to raise additional capital when needed, we would be required to curtail our operating activities and capital expenditures, and our business operating results and financial condition would be adversely affected. Cash Flows The following table shows a summary of our cash flows for the periods indicated: Three Months Ended April 30, (in thousands) 2026 2025 Net cash provided by operating activities $ 70,376 $ 83,776 Net cash provided by (used in) investing activities $ 55,337 $ (108,040) Net cash provided by (used in) financing activities $ (124,870) $ 2,847 Our net income (loss) and cash flows provided by operating activities are influenced significantly by our investments in headcount to support growth and by cost of revenue incurred to deliver our services. Non-cash charges primarily consist of depreciation and amortization, provision for credit losses, stock-based compensation, non-cash lease expense, deferred income taxes, and accretion on 32 marketable securities. Our largest source of operating cash is collections from customers. Our primary uses of cash from operating activities include employee-related costs, costs to deliver our services, and marketing expenses. We expect our free cash flow to fluctuate in future periods as our operating expenses change and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters, primarily due to increased renewal activity. As a result, collections of accounts receivable are generally higher in the first half of the year, leading to a decrease in accounts receivable during that period. Operating Activities For the three months ended April 30, 2026, cash provided by operating activities was $70.4 million, which consisted of net income of $4.2 million, adjusted for non-cash expenses of $33.3 million and $32.9 million of net cash flows provided as a result of changes in operating assets and liabilities. The $32.9 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.6 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $30.7 million decrease in accrued expenses and other liabilities primarily due to the timing of bonus and commission payments, (ii) a $7.2 million decrease in deferred revenue as a result of recognized revenue exceeding billings, and (iii) a $6.7 million increase in prepaid expenses and other assets due to higher deferred contract costs and prepaid marketing expenses, partially offset by the timing of vendor prepayments, lower contract asset balances, and reduced prepaid software costs. For the three months ended April 30, 2025, cash provided by operating activities was $83.8 million, which consisted of net loss of $1.6 million, adjusted for non-cash expenses of $31.7 million and $53.7 million of net cash flows provided as a result of changes in operating assets and liabilities. The $53.7 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.2 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by a $21.5 million decrease in accrued expenses and other liabilities primarily due to the timing of bonus and commission payments. Investing Activities For the three months ended April 30, 2026, net cash provided by investing activities was $55.3 million and primarily consisted of $128.9 million of sales and maturities of marketable securities. This increase in cash flows from investing activities was partially offset by $69.0 million of purchases of marketable securities. For the three months ended April 30, 2025, net cash used in investing activities was $108.0 million and primarily consisted of $236.7 million of purchases of marketable securities, partially offset by $132.0 million of sales and maturities of marketable securities. Financing Activities For the three months ended April 30, 2026, net cash used in financing activities was $124.9 million, which primarily consisted of the $125.0 million payment associated with the 2026 Share Repurchase Program. For the three months ended April 30, 2025, cash provided by financing activities was $2.8 million, which consisted solely of proceeds from the exercise of stock options. Critical Accounting Estimates Our interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Critical accounting estimates are those estimates that, in accordance with U.S. GAAP, involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our condensed consolidated financial statements. Management has determined that our most critical accounting estimates are those relating to revenue recognition and stock-based compensation expense, including historical common stock valuations and performance-based award valuations. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, included in “Part I, Item 1. Financial Statements” of this Form 10-Q and Note 2, Basis of Presentation and Summary of Significant Accounting Policies, included in “Part II, Item 8. Financial Statements” of the 2026 10-K for a discussion of our significant accounting policies. There have been no material changes to our critical accounting policies and accounting estimates as compared to those disclosed in the 2026 10-K. 33 Recent Accounting Pronouncements Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for more information regarding recently issued accounting pronouncements.