Rapid7 Announces First Quarter 2026 Financial Results

• Annualized recurring revenue (“ARR”) of $832 million
• Total revenue of $210 million; Product subscriptions revenue of $204 million
• GAAP loss from operations of $0.6 million; Non-GAAP operating income of $24 million
• Net cash provided by operating activities of $40 million; Free cash flow of $33 million
  
  

BOSTON, May 05, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (Nasdaq: RPD), a global leader in AI-powered managed cybersecurity operations, today announced its financial results for the first quarter 2026.

"As frontier models reshape the cybersecurity landscape, Rapid7's AI SOC and preemptive security infrastructure are more essential than ever," said Corey Thomas, CEO of Rapid7. "Our Exposure Management and Detection and Response capabilities are increasingly important to customers facing a groundswell of new vulnerabilities and attacks. And Rapid7's business is well positioned to meet that demand."

“During the first quarter, Rapid7 exceeded guidance expectations across all metrics and delivered strong free cash flow,” said Rafe Brown, CFO of Rapid7. “Anchored around our accelerated strategy to deliver the AI SOC capabilities customers need, we are focused on growing our Managed Detection and Response business while improving margins over the medium-term.”

First Quarter 2026 Financial Highlights

• Revenue: Total revenue of $210 million a decrease of 0.3% year-over-year. Product revenue of $204 million an increase of 0.1% year-over-year.
• ARR: Annualized recurring revenue of $832 million, a decrease of 0.6% year-over-year.
• Operating Income: GAAP loss from operations of $0.6 million; Non-GAAP operating income of $24.4 million.
• Net Income: GAAP net income of $1.1 million or $0.02 per diluted share and non-GAAP net income of $26.6 million or $0.36 per diluted share.
• Cash Flow: Net cash provided by operating activities of $39.8 million and free cash flow of $33.4 million.
• Total cash, cash equivalents, and government securities of $670 million as of March 31, 2026.
  
  

Recent Business Highlights

• In March, Rapid7 announced the acquisition of Kenzo Security, an agentic AI security platform built to scale security investigations autonomously, to accelerate its preemptive, AI-powered security operations, further integrating automated risk prioritization and remediation into its Command Platform.
• In March, Rapid7 released its 2026 Global Threat Landscape Report, revealing a 105% surge in the exploitation of high and critical-severity vulnerabilities as attack timelines continue to collapse.
• In March, Rapid7 expanded its Exposure Command platform with new cloud security capabilities, introducing runtime validation and Data Security Posture Management (DSPM) to enable organizations to identify, validate, and prioritize risks based on actual exploitability.
• In March, Rapid7 Labs published breakthrough research identifying sleeper cells embedded in global telecommunications networks by a state-sponsored actor with implications for government communications and critical systems. Alongside the research, Rapid7 released a free, open-source scanning script to support defenders.
• In March, Rapid7 launched updates to its PACT Partner Program, introducing a new Platinum tier and streamlined deal motions to drive partner-led growth for its Managed Detection and Response (MDR) services.
• In February, Rapid7 hosted its 2026 Partner of the Year Awards, recognizing top-performing partners for their excellence in delivering outcomes and scaling security practices within the Rapid7 ecosystem.
  
  

Second Quarter and Full Year 2026 Guidance

Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items such as acquisition-related expenses, impairment of long-lived assets, restructuring expense, induced conversion expense, change in the fair value of derivative assets, non-ordinary course litigation-related expenses and discrete tax items. Rapid7 has provided a reconciliation of each non-GAAP guidance measure to the most comparable GAAP measures in the financial statement tables included in this press release. The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.

Rapid7 anticipates ARR, revenue, non-GAAP income from operations, non-GAAP net income per share and free cash flow to be in the following ranges:

 Second Quarter 2026 Full-Year 2026 (in millions, except per share data)ARRApproximately $820 million Not providedYear-over-year growth(2)% Not providedRevenue$207to$209 $836to$842Year-over-year growth(3)%to(2)% (3)%to(2)%Non-GAAP income from operations$24to$26 $112to$118Non-GAAP net income per share, diluted$0.33to$0.36 $1.52to$1.60Weighted average shares used in non-GAAP earnings per share calculation, diluted78.3 79.4Free cash flowNot provided $125to$135      

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. Guidance for the second quarter 2026 and full-year 2026 does not include any potential impact of foreign exchange gains or losses.

Conference Call and Webcast Information

Rapid7 will host a conference call today, May 5, 2026, to discuss its results at 4:30 p.m. Eastern Time. The call will be available live via webcast on Rapid7's website at https://investors.rapid7.com. A webcast replay of the conference call will be available at https://investors.rapid7.com.

About Rapid7

Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

Non-GAAP Financial Measures and Other Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we provide investors with certain non-GAAP financial measures and other metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We also use certain non-GAAP financial measures as performance measures under our executive bonus plan. We believe that these non-GAAP financial measures and other metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, you should review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate our business.

Non-GAAP Financial Measures

We disclose the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, adjusted EBITDA and free cash flow. We also disclose non-GAAP gross margin and non-GAAP operating margin derived from these financial measures.

We define non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share as the respective GAAP balances excluding the effect of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs and certain other items such as acquisition-related expenses, impairment of long-lived assets, change in the fair value of derivative assets, restructuring expense, induced conversion expense and discrete tax items. Non-GAAP net income per basic and diluted share is calculated as non-GAAP net income divided by the weighted average shares used to compute net income per share, with the number of weighted average shares decreased, when applicable, to reflect the anti-dilutive impact of the capped call transactions entered into in connection with our convertible senior notes.

We believe these non-GAAP financial measures are useful to investors in assessing our operating performance due to the following factors:

Stock-based compensation expense. We exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period.

Amortization of acquired intangible assets. We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.

Amortization of debt issuance costs. The expense for the amortization of debt issuance costs related to our convertible senior notes and our former revolving credit facility is a non-cash item, and we believe the exclusion of this interest expense provides a more useful comparison of our operational performance in different periods.

Acquisition-related expenses. We exclude acquisition-related expenses, including accretion expense associated with contingent consideration, as costs that are unrelated to the current operations and are neither comparable to the prior period nor predictive of future results.

Discrete tax items. We exclude certain discrete tax items such as income tax expenses or benefits that are not related to ongoing business operations in the current year and adjustments to uncertain tax position reserves as these charges are not indicative of our ongoing operating results, and they are not considered when we are forecasting our future results.

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure that we define as net income (loss) before (1) interest income, (2) interest expense, (3) other (income) expense, net, (4) provision for income taxes, (5) depreciation expense, (6) amortization of intangible assets, (7) stock-based compensation expense, (8) acquisition-related expenses, and (9) discrete tax benefit. We believe that the use of adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods.

Free Cash Flow. Free cash flow is a non-GAAP measure that we define as cash provided by operating activities less purchases of property and equipment and capitalization of internal-use software costs. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures.

We include all non-GAAP financial measures in the current year or any comparative year that will be included in the non-GAAP reconciliation during the current fiscal year annual Form 10-K. As such, not all non-GAAP financial measures listed above may be included in the current reporting period non-GAAP reconciliation in the GAAP to Non-GAAP Reconciliation section below.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact upon our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in our business and an important part of the compensation provided to our employees.

Other Metrics

ARR. Annualized Recurring Revenue and Growth. ARR is defined as the annual value of all recurring revenue related to active contracts as of the last day of the period. ARR is measured at a specific point in time and does not incorporate consideration of any anticipated contract terminations or other prospective events, regardless of whether such events may exert a favorable or adverse influence on the metric. ARR should be viewed independently of revenue and deferred revenue, as ARR is an operating metric and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as professional services revenue in our consolidated statement of operations. We use ARR and believe it is useful to investors as a measure of the overall success of our business.

Number of Customers. We define a customer as any entity that has an active Rapid7 recurring revenue contract as of the specified measurement date, excluding only InsightOps and Logentries customers with a contract value less than $2,400 per year.

ARR per Customer. We define ARR per customer as ARR divided by the number of customers at the end of the period.

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the statements regarding our financial guidance for the second quarter and full-year 2026, and the assumptions underlying such guidance. Our use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. The events described in our forward-looking statements are subject to a number of risks and uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Such forward-looking statements are based on our current assumptions, expectations and estimates and involve a number of judgments and risks, many of which are outside of our control. Risks that could cause or contribute to such differences include, but are not limited to, macroeconomic uncertainty, unstable market and economic conditions, fluctuations in our quarterly results, our ability to successfully grow our sales of our cloud-based solutions, including through the shift to a consolidated platform sales approach, failure to meet our publicly announced guidance or other expectations about our business, our ability to grow our revenue, the ability of our products and professional services to correctly detect vulnerabilities, renewal of our customer's subscriptions, competition in the markets in which we operate, market growth, our ability to innovate, our sales cycles, our ability to successfully develop, deploy and realize the expected benefits of our artificial intelligence and automation capabilities, including risks related to performance, reliability, security and customer adoption of such technologies, our ability to successfully integrate acquired companies, including Kenzo Security, and achieve the expected synergies and benefits of such acquisitions in a timely manner or at all, exposure to greater than anticipated tax liabilities, our ability to operate in compliance with applicable laws, fluctuations in foreign currency exchange rates and their impact on our results, risks related to the accuracy, efficacy and perceived reliability of our threat intelligence, detection and response capabilities, including the potential for undetected vulnerabilities, false positives or failures in our systems, as well as other risks and uncertainties that could affect our business and results described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SEC on February 19, 2026, particularly in the section entitled "Item 1.A Risk Factors," and in the subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release

Investor contact: Press contact:Matthew Wells Alice RandallVP, Investor Relations Director, Global Corporate [email protected] [email protected](617) 865-4277 (214) 693-4727   

   

RAPID7, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
   March 31, 2026 December 31, 2025Assets    Current assets    Cash and cash equivalents $343,291  $246,664 Short-term investments  326,967   228,006 Accounts receivable, net  135,128   167,017 Deferred contract acquisition and fulfillment costs, current portion  47,342   48,370 Prepaid expenses and other current assets  47,617   47,230 Total current assets  900,345   737,287 Long-term investments  —   184,119 Property and equipment, net  30,492   31,990 Operating lease right-of-use assets  44,250   45,485 Deferred contract acquisition and fulfillment costs, non-current portion  65,554   66,978 Goodwill  593,334   575,268 Intangible assets, net  67,567   65,105 Other assets  18,101   20,232 Total assets $1,719,643  $1,726,464 Liabilities and Stockholders’ Equity    Current liabilities    Accounts payable $12,304  $11,041 Accrued expenses  84,407   96,998 Convertible senior notes, current portion, net  597,574   — Operating lease liabilities, current portion  17,964   16,176 Deferred revenue, current portion  442,260   451,155 Total current liabilities  1,154,509   575,370 Convertible senior notes, non-current portion, net  295,666   892,284 Operating lease liabilities, non-current portion  53,987   59,908 Deferred revenue, non-current portion  28,417   29,971 Other long-term liabilities  12,292   14,201 Total liabilities  1,544,871   1,571,734 Stockholders' equity:    Common stock $667  $658 Treasury stock  (4,765)  (4,765)Additional paid-in capital  1,142,304   1,120,963 Accumulated other comprehensive income  89   2,527 Accumulated deficit  (963,523)  (964,653)Total stockholders equity  174,772   154,730 Total liabilities and stockholders’ equity $1,719,643  $1,726,464          

RAPID7, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)   Three Months Ended March 31,   2026   2025 Revenue:    Product subscriptions $204,049  $203,935 Professional services  5,642   6,318 Total revenue  209,691   210,253 Cost of revenue:    Product subscriptions  59,154   54,368 Professional services  5,595   5,112 Total cost of revenue  64,749   59,480 Total gross profit  144,942   150,773 Operating expenses:    Research and development  48,354   47,888 Sales and marketing  78,934   79,400 General and administrative  18,212   23,586 Total operating expenses  145,500   150,874 Loss from operations  (558)  (101)Other income (expense), net:    Interest income  5,612   5,758 Interest expense  (2,498)  (2,654)Other (expense) income, net  (726)  1,802 Income before income taxes  1,830   4,805 Provision for income taxes  700   2,700 Net income $1,130  $2,105 Net income per share, basic $0.02  $0.03 Net income per share, diluted(1) $0.02  $0.03 Weighted average common shares outstanding, basic  66,174,341   63,835,945 Weighted average common shares outstanding, diluted  66,904,992   64,224,415 

(1) We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive. On an if-converted basis, for the three months ended March 31, 2026, the 2027 and 2029 Notes were anti-dilutive; for the three months ended March 31, 2025, the 2029 Notes, 2027 Notes and 2025 Notes were anti-dilutive.

RAPID7, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 Cash flows from operating activities:    Net income $1,130  $2,105 Adjustments to reconcile net income to net cash provided by operating activities:    Depreciation and amortization  11,210   11,665 Amortization of debt issuance costs  1,045   1,019 Stock-based compensation expense  19,890   27,151 Deferred income taxes  (1,220)  — Other  1,489   (1,153)Changes in assets and liabilities:    Accounts receivable  31,405   27,668 Deferred contract acquisition and fulfillment costs  2,453   5,295 Prepaid expenses and other assets  1,632   (1,995)Accounts payable  2,342   (6,555)Accrued expenses  (14,753)  (20,325)Deferred revenue  (11,114)  (12,874)Other liabilities  (5,692)  (2,244)Net cash provided by operating activities  39,817   29,757 Cash flows from investing activities:    Business acquisitions, net of cash acquired  (23,345)  — Purchases of property and equipment  (2,081)  (1,361)Capitalization of internal-use software  (4,319)  (3,719)Purchases of investments  —   (144,461)Sales and maturities of investments  85,000   69,000 Other investing activities  —   1,328 Net cash provided by (used in) investing activities  55,255   (79,213)Cash flows from financing activities:    Taxes paid related to net share settlement of equity awards  (255)  (1,303)Proceeds from employee stock purchase plan  2,889   4,446 Proceeds from stock option exercises  —   1,589 Net cash provided by financing activities  2,634   4,732 Effect of exchange rate changes on cash, cash equivalents and restricted cash  (1,079)  1,334 Net increase (decrease) in cash, cash equivalents and restricted cash  96,627   (43,390)Cash, cash equivalents and restricted cash, beginning of period $246,664  $342,101 Cash, cash equivalents and restricted cash, end of period $343,291  $298,711 Supplemental cash flow information:    Cash paid for interest on convertible senior notes $2,625  $1,571 Cash paid for income taxes, net of refunds  782   992 Reconciliation of cash, cash equivalents and restricted cash:    Cash and cash equivalents  343,291   291,462 Restricted cash included in prepaid expenses and other current assets  —   7,249 Total cash, cash equivalents and restricted cash $343,291  $298,711          

  

RAPID7, INC.
GAAP to Non-GAAP Reconciliation (Unaudited)
(in thousands, except share and per share data)   Three Months Ended March 31,   2026   2025 GAAP total gross profit $144,942  $150,773 Add: Stock-based compensation expense(1) $1,716  $2,264 Add: Amortization of acquired intangible assets(2) $4,423  $4,423 Non-GAAP total gross profit $151,081  $157,460 Non-GAAP gross margin  72%  75%     GAAP gross profit – product subscriptions $144,895  $149,567 Add: Stock-based compensation expense $1,369  $1,731 Add: Amortization of acquired intangible assets $4,423  $4,423 Non-GAAP gross profit – product subscriptions $150,687  $155,721 Non-GAAP gross margin - product subscriptions  74%  76%     GAAP gross profit – professional services $47  $1,206 Add: Stock-based compensation expense $347  $533 Non-GAAP gross profit – professional services $394  $1,739 Non-GAAP gross margin - professional services  7%  28%     GAAP loss from operations $(558) $(101)Add: Stock-based compensation expense(1) $19,890  $27,151 Add: Amortization of acquired intangible assets(2) $4,494  $5,120 Add: Acquisition-related expenses(3) $606  $183 Non-GAAP income from operations $24,432  $32,353      GAAP net income $1,130  $2,105 Add: Stock-based compensation expense(1) $19,890  $27,151 Add: Amortization of acquired intangible assets(2) $4,494  $5,120 Add: Amortization of debt issuance costs $1,045  $1,019 Add: Acquisition-related expenses(3) $606  $183 Add: Discrete tax items(4) $(600) $— Non-GAAP net income $26,565  $35,578 Add: Interest expense of convertible senior notes(5) $1,313  $1,571 Numerator for non-GAAP earnings per share calculation $27,878  $37,149      Weighted average shares used in GAAP earnings per share calculation, basic  66,174,341   63,835,945 Dilutive effect of convertible senior notes(5)  10,429,891   11,183,611 Dilutive effect of employee equity incentive plans(6)  730,651   388,471 Weighted average shares used in non-GAAP earnings per share calculation, diluted  77,334,883   75,408,027      Non-GAAP net income per share:    Basic $0.40  $0.56 Diluted $0.36  $0.49      (1)Includes stock-based compensation expense as follows:    Cost of revenue $1,716  $2,264 Research and development $8,406  $10,386 Sales and marketing $5,071  $7,241 General and administrative $4,697  $7,260      (2)Includes amortization of acquired intangible assets as follows:    Cost of revenue $4,423  $4,423 Sales and marketing $71  $652 General and administrative $—  $45      (3)Includes acquisition-related expenses as follows:    General and administrative $606  $183      (4)Includes discrete tax items as follows:    (Benefit) Provision for income taxes $(600) $—      (5)We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive.     (6)We use the treasury method to compute the dilutive effect of employee equity incentive awards. 

RAPID7, INC.
Reconciliation of Net Income to Adjusted EBITDA (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 GAAP net income $1,130  $2,105 Interest income  (5,612)  (5,758)Interest expense  2,498   2,654 Other expense (income), net  726   (1,802)Provision for income taxes  700   2,700 Depreciation expense  2,374   2,791 Amortization of intangible assets  8,836   8,874 Stock-based compensation expense  19,890   27,151 Acquisition-related expenses  606   183 Adjusted EBITDA $31,148  $38,898          

RAPID7, INC.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 Net cash provided by operating activities $39,817  $29,757 Less: Purchases of property and equipment  (2,081)  (1,361)Less: Capitalized internal-use software costs  (4,319)  (3,719)Free cash flow $33,417  $24,677          

RAPID7, INC.
Reconciliation of Non-GAAP Guidance
(in millions, except per share data)  Anticipated Second Quarter 2026 Anticipated Full-Year 2026 Low High Low HighGAAP income from operations$1to$3 $18 to$24 Add: Stock-based compensation expense 19to 19  76 to 76 Add: Amortization of acquired intangible assets 4to 4  17 to 17 Add: Acquisition-related expenses —to —  1 to 1 Non-GAAP income from operations$24to$26 $112 to$118         GAAP net income$1to$3 $19 to$25 Add: Stock-based compensation expense 19to 19  76 to 76 Add: Amortization of acquired intangible assets 4to 4  17 to 17 Add: Amortization of debt issuance costs 1to 1  4 to 4 Add: Acquisition-related costs —to —  1 to 1 Less: Discrete tax item —to — $(1)to$(1)Non-GAAP net income$25to$27 $116 to$122 Add: Interest expense on convertible senior notes 1to 1  5 to 5 Numerator for non-GAAP earnings per share calculation$26to$28 $121 to$127         GAAP net income per share1$0.01to$0.04 $0.28 to$0.37 Non-GAAP net income per share, diluted$0.33to$0.36 $1.52 to$1.60         Weighted average shares used in non-GAAP earnings per share calculation, diluted 78.3  79.4         1The anticipated GAAP net loss per share is calculated using basic weighted average shares for periods in which the Company anticipated a GAAP net loss. The anticipated GAAP net income per share is calculated using GAAP diluted weighted average shares for periods in which the Company anticipated GAAP net income.

The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty. As a result, the estimates shown for Anticipated GAAP loss from operations, Anticipated GAAP net loss and Anticipated GAAP net loss per share are expected to change.

 Full-Year 2026 Low HighNet cash provided by operating activities$149 to$159 Less: Purchases of property and equipment (7)to (7)Less: Capitalized internal-use software costs (17)to (17)Free cash flow$125  $135