Q2 Holdings, Inc. Announces Third Quarter 2026 Financial Results; Appoints Jonathan Price as co-CEO

Q2 Holdings, Inc. Announces Third Quarter 2026 Financial Results; Appoints Jonathan Price as co-CEO AUSTIN, Texas--( BUSINESS WIRE)-- Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced results for its third quarter ending September 30, 2026.

GAAP Results for the Third Quarter 2026

Non-GAAP Results for the Third Quarter 2026

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

“We delivered another strong quarter, with solid bookings led by digital banking and continued momentum across the business,” said Matt Flake, Chairman, President and CEO, Q2. "Credit unions were a key contributor again this quarter, including multiple Tier 1 wins and some of our largest contracted deals in the period. Our AI progress was highlighted by our third annual Dev Days, and early demand for our new AI-driven fraud solution was particularly strong, with early-adopter sign-ups roughly twice what we initially expected. We feel good about our momentum as we move these offerings toward general availability, and with a healthy pipeline heading into year-end, we believe Q2 is well positioned to be the platform our customers build on as they put AI to work.”

“Our third quarter results exceeded the high end of our guidance on both revenue and adjusted EBITDA, with record gross margin and a record adjusted EBITDA margin of 30 percent reflecting the continued scalability of our model,” said Jonathan Price, CFO, Q2. “We also generated $55.0 million of free cash flow and repurchased $38.8 million of our shares while remaining debt-free, a combination of durable growth, expanding margins, and a strong balance sheet that we believe gives us real flexibility. This performance, coupled with our outlook for the rest of the year, gives us the confidence to raise our full-year guidance on both revenue and adjusted EBITDA for 2026.”

Co-CEO Appointment

Concurrent with this release, Q2 announced that its Board of Directors has appointed Jonathan Price as Co-Chief Executive Officer, effective October 29, 2026. Mr. Price will serve as Co-CEO alongside Matt Flake, who continues as President and Chairman of the Board, and will also join Q2’s Board of Directors as part of his appointment. Mr. Price will continue to serve as Q2’s Chief Financial Officer while the Company conducts a search for his successor. Additional information is available in a separate press release issued today, which can be found on the investor relations section of Q2’s website at http://investors.Q2.com.

Third Quarter Highlights

Dev Days 2026: Q2 Shows How AI Is Moving into the Daily Work of Banking

Share Repurchase Program

In the third quarter ended September 30, 2026, Q2 repurchased approximately 0.6 million shares of the Company’s outstanding common stock at an average price of approximately $61.27 per share, for total consideration of $38.8 million. Year-to-date, Q2 has repurchased approximately 2.9 million shares for total consideration of $158.9 million. As of September 30, 2026, Q2 had approximately $336.1 million remaining under its share repurchase authorization. Q2 may purchase shares in the open market or in privately negotiated transactions, including accelerated share repurchase transactions, block trades, or pursuant to Rule 10b5-1 trading plans.

Financial Outlook

As of October 28, 2026, Q2 Holdings is providing guidance for its fourth quarter of 2026 and updated guidance for its full year 2026, which represents Q2 Holdings’ current estimates on Q2 Holdings’ operations and financial results. The financial information below includes adjusted EBITDA, which represents forward-looking, non-GAAP financial information. GAAP net income is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net income in that it excludes items such as depreciation and amortization, stock-based compensation, transaction-related costs, interest and other (income) expense, income taxes, lease and other restructuring charges, and non-recurring legal settlements not in our ordinary course of business. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net income or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net income. However, it is important to note that these excluded items could be material to Q2's results computed in accordance with GAAP in future periods.

Q2 Holdings is providing guidance for the fourth quarter of 2026 as follows:

Q2 Holdings is providing updated guidance for the full-year 2026 as follows:

Conference Call Details

Date:

Wednesday, October 28, 2026

Time:

5:00 p.m. EDT

Hosts:

Matt Flake, Chairman, President & CEO / Jonathan Price, CFO

Webcast Registration:

https://events.q4inc.com/attendee/345954100

All participants must register using the above link. The webcast of the conference call and financial results will be accessible from the investor relations section of the Q2 website at http://investors.Q2.com/. An archived replay of the webcast will be available on this website for a limited time after the call. Q2 has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Q2 Holdings, Inc.

Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.co m. Follow us on LinkedIn and X to stay up to date.

Use of Non-GAAP Measures

Q2 uses the following non-GAAP financial measures: adjusted EBITDA; adjusted EBITDA margin; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating expense; non-GAAP operating income; non-GAAP net income; non-GAAP net income per common share, diluted; and free cash flow. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.

In the case of adjusted EBITDA, Q2 adjusts net income for such items as interest and other (income) expense, taxes, depreciation and amortization, stock-based compensation, transaction-related costs, lease and other restructuring charges, and non-recurring legal settlements not in our ordinary course of business. In the case of adjusted EBITDA margin, Q2 calculates adjusted EBITDA margin by dividing adjusted EBITDA by revenue. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation, amortization of acquired technology, transaction-related costs and lease and other restructuring charges. In the case of non-GAAP sales and marketing expense and non-GAAP research and development expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP general and administrative expense excludes stock-based compensation and non-recurring legal settlements not in our ordinary course of business. Non-GAAP operating expense is calculated by taking the sum of non-GAAP sales and marketing expenses, non-GAAP research and development expense and non-GAAP general and administrative expense. In the case of non-GAAP operating income and non-GAAP net income, Q2 adjusts operating income, for stock-based compensation, transaction-related costs, amortization of acquired technology, amortization of acquired intangibles, lease and other restructuring charges and non-recurring legal settlements not in our ordinary course of business, and with respect to non-GAAP net income, Q2 additionally adjusts for amortization of debt issuance costs and the related tax effects of the adjustments above. The tax effect of non-GAAP adjustments is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment and considers the current and deferred tax impact of those adjustments. The Company is in a cumulative income position on a non-GAAP basis and has not recorded a valuation allowance against deferred tax assets in the non-GAAP tax provision. As a result, the non-GAAP tax expense may differ significantly from the GAAP tax expense. In the case of non-GAAP net income per common share, diluted, Q2 divides non-GAAP net income by the diluted weighted average common shares outstanding. In the case of free cash flow, Q2 adjusts net cash provided by operating activities for purchases of property and equipment and capitalized software development costs. A reconciliation of prior quarter non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of Q2's Form 8-K filed on July 29, 2026.

There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income. As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.

Q2’s management uses these non-GAAP measures as measures of operating performance; to prepare Q2’s annual operating budget; to allocate resources to enhance the financial performance of Q2’s business; to evaluate the effectiveness of Q2’s business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2’s results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2’s financial performance.

Forward-looking Statements

This press release contains forward-looking statements and forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact, including statements about: Q2’s AI momentum; demand for Q2’s new AI-driven solutions and their expected general availability; the health of our sales pipeline; the importance of Q2’s platform to customer development and AI initiatives; the continued scalability of Q2’s model; the flexibility provided by Q2’s durable growth, expanding margins, and a strong balance sheet; confidence in Q2’s future financial performance; the capabilities and demand for Q2 Code, Q2 Assistant and User Activity Monitoring; expectations regarding AI innovation in financial services and the related value offered by Q2’s solutions .; and our quarterly and annual financial guidance.

The forward-looking statements contained in this press release are based upon Q2’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include risks related to: (a) the risks associated with cyberattacks, financial transaction fraud, data and privacy breaches and breaches of security measures within our products, systems and infrastructure or the products, systems and infrastructure of third parties upon which we rely and the resultant disruption, costs and liabilities and harm to our business and reputation and our ability to sell our solutions; (b) the risks associated with rapidly evolving technologies, such as quantum computing, and advances in artificial intelligence, or AI, including the increasing availability of more capable AI models to the public that may further enhance the ability of threat actors or autonomous AI agent systems to identify, develop and exploit vulnerabilities, automate certain aspects of cyberattacks and conduct more targeted or scalable social engineering, fraud schemes or end-to-end intrusions; (c) the risks associated with the pace of AI development and resulting cybersecurity threats, including as presented by autonomous AI agent systems, and the limitations of traditional cybersecurity defenses, which may not be fully effective against these novel threat vectors now or as they quickly evolve, the security community’s rapidly evolving understanding of agentic-specific attack services, and the resource commitments and investments required to stay informed and evolve our cybersecurity defenses, vulnerability management and solutions to secure them;(d) the impact of and our ability to respond to global economic uncertainties and challenges or changes in the financial services industry and credit markets, including as a result of mergers and acquisitions within the banking sector, inflationary pressures, fluctuating interest rates, instability in the financial services industry, any changes to, or new, financial regulations and their potential impacts on our prospects' and customers' operations, increased acceptance and use of emerging financial products, such as cryptocurrencies or stablecoins, including any impact on the timing of prospect and customer implementations and purchasing decisions, our business sales cycles and on account holder or end user, or End User, usage of our solutions; (e) the risks associated with continued market volatility, including in the financial services sector, inflationary pressures and the impact of any monetary policy changes that may be implemented as a result, such as the recent increase in interest rates by the Federal Reserve, the impact of existing and future U.S. tariffs, uncertainty regarding the legal authority for certain tariffs, global trade measures, including retaliatory tariffs, and the impact on the valuation of marketable securities; (f) the risk of increased or new competition in our existing markets and as we enter new markets or new segments of existing markets, or as we offer new solutions; (g) the risks associated with the development of our solutions, including AI-based solutions, our AI and data strategies and solutions, our use of AI tools and solutions, changes to regulation related to AI and data privacy and any discordance between the market for our solutions compared to our expectations; (h) quarterly fluctuations in our operating results relative to our expectations and guidance and the accuracy of our forecasts; (i) the risks and increased costs associated with managing growth and global operations, including hiring, training, retaining and motivating employees to support such growth; (j) the risks associated with our transactional business which are typically driven by End-User behavior and can be influenced by external drivers outside of our control; (k) the risks associated with effectively managing our business and cost structure in an uncertain economic environment, including as a result of challenges in the financial services industry and the effects of seasonality and unexpected trends; (l) the risks associated with geopolitical instability, including acts of war or military conflict, uncertainties or discord, including the continuing war in Ukraine, the war in Iran and related disruptions to shipping through the Strait of Hormuz and resulting volatility in energy prices, other conflicts in the Middle East and other parts of the world, heightened risk of state-sponsored cyberattacks or cyber fraud on financial services and other critical infrastructure; (m) the risks associated with accurately forecasting and managing the impacts of any economic downturn or challenges in the financial services industry on our customers and their End Users, including in particular the impacts of any downturn on financial technology companies or alternative finance companies and our arrangements with them, which may include more complex revenue arrangements for us and which may be more vulnerable to an economic downturn than our financial institution customers; (n) the challenges and costs associated with selling, implementing and supporting our solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of our solutions and the impact that the timing of bookings and go-lives may have on our revenue and financial performance in a period; (o) the risk that errors, interruptions or delays in our solutions or Web hosting negatively impact our business and sales; (p) the risks associated with the operation of and reliance on third-party public cloud service providers, including any vendor concentration, dependency, integration, resiliency, performance or cost risks and post-migration specific risks; (q) the difficulties and risks associated with developing and selling complex new solutions and enhancements, including those using AI, in an environment in which the technical and regulatory specifications and functionality required by our customers and relevant governmental authorities are difficult to predict; (r) the risks associated with operating within and selling into a regulated industry, including risks related to the rapidly evolving regulation of, and litigation with respect to, AI and machine learning, the receipt, collection, storage, processing and transfer of data and increased regulatory scrutiny on financial technology and related services, including specifically on banking-as-a-service, or BaaS, services; (s) the risks associated with our sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of our sales cycle; (t) the risks inherent in third-party technology and implementation partnerships, including defects, failures, interruptions or disruptions in third-party services or solutions, that could disrupt our services or otherwise cause harm to our business; (u) the risks associated with our reliance on a limited number of third-party AI vendors and concentration in such relationships, including potential disruption of hosted AI services, pricing increases, contractual limitations or the loss of access to key AI capabilities; (v) the risk that we will not be able to maintain historical contract terms such as pricing and duration; (w) the general risks associated with the complexity of our customer arrangements and our solutions; (x) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (y) the risks and challenges around increased regulatory scrutiny and evolving requirements for money movement services and the resulting potential higher costs, increased complexity and limitations on offerings on our business and financial results; (z) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (aa) the risks associated with further consolidation in the financial services industry; (bb) the risks associated with selling our solutions internationally and with the continued expansion of our international operations; and (cc) the risk that we may not be able to obtain capital when desired or needed on favorable terms.

Additional information relating to the uncertainty affecting the Q2 business is contained in Q2’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Q2’s website at http://investors.Q2.com/. These forward-looking statements represent Q2’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and except as required by law, Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Q2 Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

September 30, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

116,312

367,631

Restricted cash

1,746

1,672

Investments

6,679

65,064

Accounts receivable, net

94,041

51,716

Contract assets, current portion, net

8,868

8,596

Prepaid expenses and other current assets

20,611

28,234

Deferred solution and other costs, current portion

22,562

22,631

Deferred implementation costs, current portion

11,873

10,508

Total current assets

282,692

556,052

Property and equipment, net

27,855

27,783

Right of use assets

25,282

27,188

Deferred solution and other costs, net of current portion

29,342

27,827

Deferred implementation costs, net of current portion

34,080

28,929

Intangible assets, net

71,456

78,377

Goodwill

512,869

Contract assets, net of current portion and allowance

15,948

14,103

Other long-term assets

4,530

3,149

Total assets

1,004,054

1,276,277

Liabilities and stockholders' equity

Current liabilities:

Accounts payable and accrued liabilities

72,872

76,799

Convertible notes, current portion

—

303,368

Deferred revenues, current portion

197,693

155,003

Lease liabilities, current portion

8,411

8,915

Total current liabilities

278,976

544,085

Deferred revenues, net of current portion

27,467

26,826

Lease liabilities, net of current portion

30,482

33,832

Other long-term liabilities

9,344

9,723

Total liabilities

346,269

614,466

Stockholders' equity:

Common stock

Additional paid-in capital

1,183,238

1,275,980

Accumulated other comprehensive loss

(2,954

)

(1,953

)

Accumulated deficit

(522,505

)

(612,222

)

Total stockholders' equity

657,785

661,811

Total liabilities and stockholders' equity

1,004,054

1,276,277

Q2 Holdings, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands, except per share data)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenues (1)

225,771

201,704

662,042

586,587

Cost of revenues (2)

90,928

92,859

269,085

272,188

Gross profit

134,843

108,845

392,957

314,399

Operating expenses:

Sales and marketing

24,536

26,401

76,200

79,965

Research and development

41,356

38,932

124,351

113,699

General and administrative

33,641

31,705

98,896

95,061

Transaction-related costs

—

270

—

Amortization of acquired intangibles

—

Lease and other restructuring charges

1,352

803

2,252

2,548

Total operating expenses

100,885

97,841

301,969

291,366

Income from operations

33,958

11,004

90,988

23,033

Total other income, net

373

4,204

4,813

10,912

Income before income taxes

34,331

15,208

95,801

33,945

Provision for income taxes

(1,111

)

(160

)

(6,084

)

(2,380

)

Net income

33,220

15,048

89,717

31,565

Other comprehensive income (loss):

Unrealized gain (loss) on available-for-sale investments

—

(61

)

(12

)

Foreign currency translation adjustment

(274

)

(483

)

(940

)

Comprehensive income

32,946

14,630

88,716

31,582

Net income per common share

Basic

0.53

0.24

1.44

0.51

Diluted

0.52

0.23

1.38

0.49

Weighted average common shares outstanding

Basic

62,153

62,458

62,325

62,015

Diluted

63,529

69,858

65,690

65,076

(1)

The following table disaggregates the Company's revenue by major source:

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Subscription

188,156

165,218

550,815

477,929

Transactional

18,060

17,886

53,792

53,237

Services and Other

19,555

18,600

57,435

55,421

Total Revenues

225,771

201,704

662,042

586,587

(2)

Includes amortization of acquired technology of $4.3 million and $5.5 million for the three months ended September 30, 2026 and 2025, respectively, and $13.0 million and $16.5 million for the nine months ended September 30, 2026 and 2025, respectively.

Q2 Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended September 30,

2026

2025

Cash flows from operating activities:

Net income

89,717

31,565

Adjustments to reconcile net income to net cash from operating activities:

Amortization of deferred implementation, solution and other costs

22,548

21,983

Depreciation and amortization

36,274

40,888

Amortization of debt issuance costs

768

1,628

Amortization of premiums and discounts on investments

(20

)

(934

)

Stock-based compensation expense

60,806

66,767

Deferred income taxes

(1,284

)

(897

)

Other non-cash items

(180

)

639

Changes in operating assets and liabilities:

(26,973

)

(23,874

)

Net cash provided by operating activities

181,656

137,765

Cash flows from investing activities:

Net maturities (purchases) of investments

58,517

(7,353

)

Purchases of property and equipment

(10,366

)

(4,812

)

Capitalized software development costs

(21,119

)

(16,175

)

Net cash provided by (used in) investing activities

27,032

(28,340

)

Cash flows from financing activities:

Repurchases of common shares

(158,881

)

—

Payment for maturity of convertible notes

(303,995

)

—

Proceeds from exercise of stock options and ESPP

3,617

4,218

Net cash provided by (used in) financing activities

(459,259

)

4,218

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(674

)

Net increase (decrease) in cash, cash equivalents and restricted cash

(251,245

)

113,739

Cash, cash equivalents and restricted cash, beginning of period

369,303

360,793

Cash, cash equivalents and restricted cash, end of period

118,058

474,532

Q2 Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(in thousands)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

GAAP gross profit

134,843

108,845

392,957

314,399

Stock-based compensation

2,140

2,323

6,442

7,603

Amortization of acquired technology

4,347

5,503

13,043

16,512

Lease and other restructuring charges

—

143

333

460

Non-GAAP gross profit

141,330

116,814

412,775

338,974

Revenues

225,771

201,704

662,042

586,587

GAAP gross margin

59.7

54.0

59.4

53.6

Non-GAAP gross margin

62.6

57.9

62.3

57.8

GAAP sales and marketing expense

24,536

26,401

76,200

79,965

Stock-based compensation

(1,918

)

(3,945

)

(6,741

)

(11,386

)

Non-GAAP sales and marketing expense

22,618

22,456

69,459

68,579

GAAP research and development expense

41,356

38,932

124,351

113,699

Stock-based compensation

(3,746

)

(4,349

)

(12,044

)

(12,552

)

Non-GAAP research and development expense

37,610

34,583

112,307

101,147

GAAP general and administrative expense

33,641

31,705

98,896

95,061

Stock-based compensation

(12,179

)

(12,640

)

(35,579

)

(35,226

)

Non-recurring legal settlements

—

(1,750

)

Non-GAAP general and administrative expense

21,462

19,065

63,317

58,085

GAAP operating income

33,958

11,004

90,988

23,033

Stock-based compensation

19,983

23,257

60,806

66,767

Transaction-related costs

—

270

—

Amortization of acquired technology

4,347

5,503

13,043

16,512

Amortization of acquired intangibles

—

Lease and other restructuring charges

1,352

946

2,585

3,008

Non-recurring legal settlements

—

1,750

Non-GAAP operating income

59,640

40,710

167,692

111,163

GAAP net income

33,220

15,048

89,717

31,565

Stock-based compensation

19,983

23,257

60,806

66,767

Transaction-related costs

—

270

—

Amortization of acquired technology

4,347

5,503

13,043

16,512

Amortization of acquired intangibles

—

Lease and other restructuring charges

1,352

946

2,585

3,008

Non-recurring legal settlements

—

1,750

Amortization of debt issuance costs

558

767

1,791

Tax adjustment

(12,070

)

(11,199

)

(33,638

)

(28,060

)

Non-GAAP net income

46,879

34,113

133,550

93,426

Weighted average common shares outstanding, diluted

63,529

69,858

65,690

65,076

GAAP net income per common share, diluted

0.52

0.23

1.38

0.49

Non-GAAP net income per common share, diluted

0.74

0.50

2.05

1.44

Reconciliation of GAAP net income to adjusted EBITDA:

GAAP net income

33,220

15,048

89,717

31,565

Stock-based compensation

19,983

23,257

60,806

66,767

Transaction-related costs

—

270

—

Depreciation and amortization

12,472

13,613

36,274

40,888

Lease and other restructuring charges

1,352

946

2,585

3,008

Non-recurring legal settlements

—

1,750

Provision for income taxes

1,111

160

6,084

2,380

Interest and other income, net

(375

)

(4,206

)

(5,153

)

(11,032

)

Adjusted EBITDA

67,763

48,818

190,583

135,326

Adjusted EBITDA margin

30.0

24.2

28.8

23.1

Q2 Holdings, Inc.

Reconciliation of Free Cash Flow

(in thousands)

(unaudited)

Nine Months Ended September 30,

2026

2025

Net cash provided by operating activities

181,656

137,765

Purchases of property and equipment

(10,366

)

(4,812

)

Capitalized software development costs

(21,119

)

(16,175

)

Free cash flow

150,171

116,778