The seco d-qua te pe fo ma ce eflects st o g o ga ic executio ac oss O das’ co e busi ess u de the Co e + St ategic g owth p og am lau ched ove the past 12 mo ths. The Compa y secu ed app oximately $175 millio i ew o de s du i g the seco d qua te . St o g o de captu e i c eased O das’ backlog to app oximately $613 millio as of Ju e 30, 2026, up f om $457 millio p o-fo ma at the e d of the fi st qua te a d $68 millio at yea -e d 2025. I cludi g DZYNE Tech ologies a d Cybe hawk, which closed i the thi d qua te of 2026, p o fo ma backlog was app oximately $757 millio . The acqui ed busi esses expa d O das’ tech ology a d custome -solutio s po tfolio, custome base a d ope ati g platfo m, a d begi co t ibuti g to g owth a d ope ati g leve age i the seco d half of 2026.
“Ou team at O das is pe fo mi g at a high level, as evide ced by ou eco d seco d-qua te esults, headli ed by st o g eve ue g owth a d co ti ued booki gs mome tum ac oss ou busi ess,” said E ic B ock, Chai ma a d CEO of O das. “We expect to sustai this mome tum a d delive a othe sig ifica t eve ue amp du i g the seco d half of 2026, i c easi g ou full-yea 2026 eve ue ta get to a a ge of $525 millio to $550 millio .”
“The st e gth of ou Co e + St ategic G owth pla is i c easi gly becomi g evide t, a d I am pa ticula ly pleased with the ece t additio of ew busi esses, headli ed by DZYNE Tech ologies a d Cybe hawk, which have closed du i g Q3. DZYNE mea i gfully b oade s ou solutio s po tfolio globally, highlighted by the ULTRA a d Io St ike platfo ms, while also accele ati g the matu atio of ou U.S. ope ati g platfo m a d deepe i g ou eleva ce with the U.S. Depa tme t of Wa . Mea while, Cybe hawk’s excelle ce i delive i g ae ial solutio s suppo ti g c itical-i f ast uctu e i spectio a d i tellige ce fu the adva ces ou dual-use tech ology, se vices a d AI capabilities. Collectively, these two ew compa ies b i g O das exceptio al elatio ships with impo ta t custome s such as the U.S. Ai Fo ce, U.S. A my, PG&E a d Shell, amo g ma y othe s, while expa di g ou ope ati g footp i t, i c easi g ou add essable ma ket a d offe i g sig ifica t ope ati g leve age ac oss both eve ue g owth a d ope ati g expe ses.”
“Ou bala ce sheet a d capital positio emai st o g a d co ti ue to p ovide sig ifica t competitive adva tages. This st e gth suppo ts faste a d la ge comme cial success by allowi g fo co ti ued i vestme ts i ou global ope ati g platfo ms while ei fo ci g custome co fide ce. The bala ce sheet st e gth is also t a slati g i to mo e att active st ategic acquisitio oppo tu ities. We will co ti ue to leve age the g owi g st e gth of ou ope ati g a d fi a cial platfo ms to delive o ou commitme ts to i vesto s.”
“We expect ou mome tum to co ti ue to accele ate i the seco d half of 2026 as volume delive ies amp o key p og ams, pa ticula ly ac oss ou cou te -d o e, multi-domai ISR a d p ecisio st ike ve ticals. I deed, the o de book emai s st o g, a d ou pipeli e co ti ues to expa d. We have a g eat deal of wo k ahead, but I emai optimistic that O das is o the ight path to delive fo ou custome s, pa t e s, employees a d, of cou se, ou i vesto s,” B ock co cluded.
Fi a cial
Delive ed eco d fi a cial pe fo ma ce, ge e ati g $83.8 millio i eve ue compa ed to $6.3 millio i Q2 2025, ep ese ti g a g eate tha 13-fold i c ease yea -ove -yea .
O a p o fo ma o ga ic basis, assumi g the cu e t po tfolio of busi esses was ow ed th oughout both pe iods, Q2 2026 eve ue i c eased 85% yea ove yea .
O das a ou ced $175 millio i ew o de s demo st ati g st o g o ga ic g owth fo the Compa y’s dive se systems of systems platfo ms.
E ded Q2 with $757 millio i p o fo ma backlog adjusted fo the additio s of DZYNE a d Cybe hawk acquisitio s which closed o July 2, 2026 a d August 10, 2026, espectively, a 65% i c ease f om the $457 millio i p o fo ma backlog at the e d of Q1 2026 a d a 11-fold i c ease f om the $68 millio epo ted backlog as of Q4 2025. The backlog i c ease eflects the additio of ewly acqui ed busi esses, alo g with st o g o de captu e a d pipeli e co ve sio at O das suppo ted by accele ati g global dema d fo OAS auto omous d o e, cou te -UAS a d obotics solutio s.
As of August 10th, O das has captu ed a additio al $105 millio i ew o de s du i g the thi d qua te demo st ati g co ti ued comme cial mome tum while co ti ui g to expa d backlog.
The Compa y e ded the seco d qua te with $1.4 billio i cash, cash equivale ts, est icted cash a d sho t-te m i vestme ts.
Co po ate Activities
Executed o O das’ st ategic g owth pla th ough a se ies of acc etive acquisitio s, sig ifica tly expa di g its tech ology a d ope atio al platfo m i to ew high-g owth dual-pu pose catego ies: adva ced ISR capabilities, battle esou ce optimizatio softwa e, adva ced CUAS tech ologies a d i dust ial i spectio applicatio s. The acquisitio s completed si ce Ma ch 31, 2026, a e as follows:
Wo ld View – a st atosphe ic balloo platfo m that delive s pe siste t, low-cost ISR a d commu icatio s without satellites o ai c aft.
Mist al – a expe ie ced p ime co t acto a d systems i teg ato delive i g adva ced systems to the U.S. Depa tme t of Wa (DoW).
Om isys – A AI-powe ed missio a d battlefield ma ageme t & optimizatio softwa e platfo m fo missio pla i g a d eal-time ope atio al decisio maki g.
DZYNE – A U.S.-focused dive sified defe se tech ology compa y a d ecog ized leade i lo g- a ge ISR, CUAS a d p ecisio st ike systems.
Cybe hawk – a i dust y leadi g auto omous i dust ial asset i spectio compa y.
A ou ced i August that David Ba ea has joi ed O das Defe se Ltd. as P eside t a d Chai ma to help lead O das’ global expa sio .
Established O das Se ti el, led by Wo ld View CEO Rya Ha tma as CEO a d DZYNE Fou de a d CEO Matt McCue as Chief Tech ology Office (CTO) c eati g a scaled, U.S.-focused defe se a d secu ity platfo m, b i gi g togethe the Compa y’s auto omous systems, cou te -UAS, ISR, a d defe se tech ologies i to a u ified o ga izatio focused o U.S. a d allied defe se custome s.
Expa ded U.S. ma ufactu i g footp i t with 6 majo facilities totali g 230,000 squa e feet of u de utilized capacity to suppo t a ticipated eve ue g owth.
Added 560 U.S. employees, i cludi g 155 e gi ee s, sig ifica tly st e gthe i g e gi ee i g, ma ufactu i g, a d ope atio al capabilities.
Pla i g facility upg ades that will expa d p oductio capacity a d add app oximately 50,000 squa e feet of additio al ma ufactu i g space.
Scaled Pala ti Fou d y deployme t ac oss the e te p ise, ow ope ati g at 4 of 5 U.S. busi ess sites a d th oughout ou global ope atio s.
Expa ded Fou d y impleme tatio to 8 e te p ise wo kst eams suppo ti g 24 active ope atio al use cases. D ivi g ope atio al efficie cy with a expected 20% imp oveme t i G&A p oductivity, while delive i g additio al gai s ac oss supply chai , ma ufactu i g, a d flight ope atio s.
Lau ched ONBERG Auto omous Systems with Heidelbe g i Ge ma y, establishi g a Eu opea hub fo the developme t, i teg atio , i dust ial-scale ma ufactu i g a d deployme t of auto omous ai defe se systems. The joi t ve tu e combi es O das’ p ove tech ologies with Ge ma e gi ee i g a d p oductio capabilities, i itially ta geti g Ge ma y a d Uk ai e befo e expa di g ac oss Eu ope.
Busi ess Developme t
Secu ed ew a d follow-o o de s fo i teg ated, laye ed ai defe se solutio s, f om defe se mi ist ies, atio al police o ga izatio s, law-e fo ceme t age cies, defe se co t acto s a d dist ibutio pa t e s ac oss No th Ame ica, Eu ope, the Middle East, Asia-Pacific, Af ica a d Lati Ame ica.
Suppo ted cou te -UAS p otectio at a majo ity of the stadiums hosti g the 2026 FIFA Wo ld Cup i No th Ame ica, demo st ati g the scalability a d matu ity of O das’ ai defe se tech ologies i complex civilia e vi o me ts.
I August, Se t ycs was selected to p ovide a cou te -d o e p otectio system fo Jackso ville Jagua s games at Eve Ba k Stadium du i g the upcomi g NFL seaso , maki g the Jagua s the fi st NFL f a chise to move beyo d detectio to co t olled mitigatio of u autho ized d o es by autho ized ope ato s, exte di g Se t ycs’ CoRF deployme t f om the FIFA Wo ld Cup i to p ofessio al spo ts ve ues.
Adva ced a st ategic collabo atio with Lockheed Ma ti to i teg ate O das’ CUAS Cybe -ove -RF capabilities i to the Sa ctum™ cou te -UAS platfo m, addi g p ecise d o e detectio , ide tificatio , t acki g a d mitigatio capabilities a d c eati g a pathway to la ge U.S. a d allied defe se p og ams.
I Q2 2026, O das eceived follow-o o de s suppo ti g existi g ISR a d eme ge cy- espo se deployme ts, demo st ati g co ti ued custome adoptio a d expa sio of ope atio al p og ams.
O das selected as St atosphe ic High-Altitude Balloo P ovide fo U.S. Navy SOUTHCOM with $4.8 millio co t act awa d suppo ti g ope atio al cou te – a cotics a d illegal, u epo ted a d u egulated fishi g missio s ac oss the Easte Pacific a d Ca ibbea . Successfully lau ched HAPS balloo i late July i suppo t of this missio .
O boa ded with ew p ime pa t e Hu ti gto I galls I dust ies, I c. (HII) fo follow-o o de s i suppo t of SOUTHCOM u de the ece tly awa ded STRINGRAI p og am fo ecu i g ISR HAPS solutio s.
A ou ced that NASA i c eased the ceili g o its existi g IDIQ fo St atollite-based ISR solutio s f om $45 millio to $395 millio i a ticipatio of expa di g dema d, i cludi g f om the DoW.
Captu ed a $18.8 millio ULTRA o de i July i suppo t of a u amed custome fo a cu e t ope atio al eed.
I July submitted ove $90 millio i p oposals to U.S. defe se custome s fo lo g-e du a ce ISR-T.
Du i g a DoW-spo so ed JREX 26.1 eve t i July, O das Se ti el demo st ated a i dust y-fi st cou te -UAS e gageme t usi g its RF-passive LOCATE LiDAR se so , i te faced with FAAD-C2, to cue thi d-pa ty lase weapo s to epeated ha d-kill e gageme ts agai st G oup 1-3 UAS, delive i g 20x g eate cuei g accu acy tha ada with o RF emissio s.
Captu ed multiple D o ebuste awa ds thi d qua te -to-date ac oss U.S., Aust alia a d New Zeala d ma kets.
Adva ced custome activities fo the Sawtooth platfo m ta geti g a mid-sized awa d f om a milita y custome i Asia.
I July eceived $9 millio o de to i teg ate Io st ike with a Fi e Co t ol System.
Successfully tested Io St ike i a GNSS-de ied e vi o me t.
Successful U.S. gove me t demo st atio of Blitz with a ew EW payload a d visual-based avigatio capability.
Adva ced comme cial activity withi the p ecisio st ike domai th ough suppo ti g st ategic defe se p og ams i the U.K. alo g with othe p og ams that togethe ge e ated ove $34 millio i ew o de s i Q2 2026.
Fu the withi p ecisio st ike, O das captu ed a ew o de wo th $52.9 millio fo the Lethal U ma ed St ike (LUS) i July while begi i g to amp p oductio fo the LUS p og am i the thi d qua te of 2026. The LUS p og am is a $982 millio IDIQ awa d with the U.S. A my fo loite i g mu itio s. O das has ow captu ed ove $240 millio of agg egate o de s elated to this IDIQ awa d.
U ma ed G ou d Systems (UGV) domai delive ed st o g o de activity i Q2 2026, eflecti g g owi g dema d fo tactical obotics, esilie t u ma ed-system tech ologies, demi i g, bo de i f ast uctu e, te ai p epa atio a d u ma ed heavy e gi ee i g equipme t a d milita y t acked vehicles.
Fu the ed i teg atio of AI Softwa e laye i to suite of solutio s th ough the lau ch of LADOS, the co ti ued developme t of SkyWeave with Pala ti , a d the additio of combat-p ove Battle Resou ce Optimizatio softwa e, suppo ti g O das’ t a sitio i to a softwa e-defi ed systems-of-systems compa y.
Showcased O das’ expa ded auto omous defe se platfo m at Eu osato y 2026 u de its “Auto omy at Fi st Co tact” visio , lau chi g I o Wave, Dual Shield, MODUS, Scout Cybe -ove -RF, I o A ow a d LADOS ac oss ai defe se, ae ial i tellige ce, p ecisio st ike a d G ou d Robotics, while p ese ti g a u ified systems-of-systems a chitectu e desig ed to co ect se si g, decisio -maki g, auto omous ope atio s a d coo di ated missio executio ac oss multiple domai s.
Reve ues i c eased 67% seque tially to $83.8 millio fo the th ee mo ths e ded Ju e 30, 2026, compa ed to $50.1 millio fo the th ee mo ths e ded Ma ch 31, 2026, a d a mo e tha 13-fold i c ease f om $6.3 millio fo the th ee mo ths e ded Ju e 30, 2025. O a p o fo ma o ga ic basis, eve ue i c eased 85% yea ove yea , assumi g the busi esses ow ed a d ope ated du i g Q2 2026 we e also ow ed a d ope ated i Q2 2025. G owth at this ate eflects the be efits of platfo m scale, sha ed tech ology, expa ded custome access, a d ope ati g leve age. The i c ease eflects st o g pe fo ma ce ac oss the Compa y’s po tfolio, pa ticula ly C-UAS systems, whe e dema d emai s st o g give the lo g-te m eed to p otect the lowe skies ac oss civilia a d milita y ai space.
G oss p ofit was $36.1 millio fo the th ee mo ths e ded Ju e 30, 2026, as compa ed to $24.7 millio fo the th ee mo ths e ded Ma ch 31, 2026 a d $3.3 millio fo the th ee mo ths e ded Ju e 30, 2025. G oss ma gi was 43.1% fo the th ee mo ths e ded Ju e 30, 2026, as compa ed to 49.2% fo the th ee mo ths e ded Ma ch 31, 2026 a d 53.1% fo the th ee mo ths e ded Ju e 30, 2025. G oss p ofit was educed du i g the qua te by the amo tizatio of capitalized i tellectual p ope ty. Adjusted G oss P ofit a d Adjusted G oss Ma gi was $42.3 millio a d 50.4%, espectively, fo the th ee mo ths e ded Ju e 30, 2026, as compa ed to Adjusted G oss P ofit a d Adjusted G oss Ma gi of $25.8 millio a d 51.5%, espectively, fo the th ee mo ths e ded Ma ch 31, 2026. The i c ease i Adjusted G oss P ofit eflects highe eve ue, favo able p oduct mix, g eate abso ptio of fixed ma ufactu i g costs, a d the co t ibutio of busi esses acqui ed du i g the pe iod. The Compa y expects g oss ma gi to va y f om qua te to qua te as system sales mix shifts, o de timi g emai s u eve at this ea ly stage of adoptio , a d the Compa y scales ma ket pe et atio .
Ope ati g expe ses i c eased to $199.1 millio fo the th ee mo ths e ded Ju e 30, 2026, compa ed with $67.3 millio fo the th ee mo ths e ded Ma ch 31, 2026 a d $12.6 millio fo the th ee mo ths e ded Ju e 30, 2025. The i c ease was p ima ily d ive by $105.8 millio of o -cash expe ses du i g the qua te , mai ly comp isi g $67.6 millio of stock-based compe satio , $19.2 millio f om the cha ge i fai value of co ti ge t co side atio , a d $14.0 millio of amo tizatio expe se, togethe with $4.4 millio of t a sactio – elated expe se. The stock-based compe satio expe se was pa ticula ly elevated due to the vesti g of equity awa ds p ovided to key executives.
Adjusted Cash Ope ati g Expe se was $93.3 millio compa ed to $36.9 millio fo the th ee mo ths e ded Ma ch 31, 2026 a d $9.4 millio fo the th ee mo ths e ded Ju e 30, 2025. The g owth i cash ope ati g expe ses eflected the i clusio of ewly acqui ed busi esses alo g with co ti ued i vestme t i O das’ ope ati g platfo m a d i f ast uctu e i suppo t of ou expected sig ifica t eve ue accele atio i the seco d half of 2026. I pa ticula , the Compa y saw g owth i spe di g elated to the Wa pSpeed a d Skyweave i itiatives a d ma ket developme t activities with Pala ti , totali g $26.2 millio . Co ti ued i vestme t i the O das ope ati g platfo m, alo g with co po ate developme t activities, also co t ibuted to the g owth i cash ope ati g expe ses.
Ope ati g loss i c eased to $162.9 millio fo the th ee mo ths e ded Ju e 30, 2026, compa ed to a $42.7 millio loss fo the th ee mo ths e ded Ma ch 31, 2026, a d a $9.3 millio loss i the th ee mo ths e ded Ju e 30, 2025. The i c ease f om both pe iods was the esult of the cha ges desc ibed above a d i cludes the afo eme tio ed la ge o -cash expe ses.
Total othe i come, et of $44.2 millio fo the th ee mo ths e ded Ju e 30, 2026, compa ed to othe i come of $404.2 millio fo the th ee mo ths e ded Ma ch 31, 2026 a d othe expe se of $1.5 millio fo the th ee mo ths e ded Ju e 30, 2025. Othe i come i cluded $29 millio of i te est a d i vestme t i come du i g the seco d qua te , i additio to o -cash gai s elati g to wa a ts issued i co ectio with the Octobe 2025 a d Ja ua y 2026 equity aises. Because these wa a ts a e emeasu ed at fai value each epo ti g pe iod, the esulti g o -cash gai s a d losses ca c eate sig ifica t volatility i epo ted ea i gs that a e u elated to the Compa y’s co e ope ati g pe fo ma ce, cash flows, o the eco omic te ms of the wa a ts.
Net loss was $89.7 millio fo the th ee mo ths e ded Ju e 30, 2026, which i cluded the o -cash items me tio ed above, as compa ed to et i come of $361.2 millio fo the th ee mo ths e ded Ma ch 31, 2026, a d a et loss of $10.8 millio fo the th ee mo ths e ded Ju e 30, 2025.
Adjusted EBITDA loss was $50.6 millio fo the th ee mo ths e ded Ju e 30, 2026, as compa ed to a loss of $10.9 millio fo the th ee mo ths e ded Ma ch 31, 2026 a d a loss of $5.8 millio fo the th ee mo ths e ded Ju e 30, 2025. The highe seque tial loss eflects the i vestme ts made i O das’ ope ati g platfo m a d co po ate developme t activities to suppo t the expected sig ifica t eve ue expa sio i the seco d half of 2026 a d beyo d.
A eco ciliatio of o -GAAP measu es i cludi g Adjusted EBITDA, Adjusted Cash Ope ati g Expe se, Adjusted G oss P ofit a d Adjusted G oss Ma gi , is p ovided i the attached fi a cial tables.
The Compa y expects co ti ued st o g mome tum i 2026 a d is aisi g its eve ue ta get fo the full yea to $525 – $550 millio , which ep ese ts a g eate tha 10-fold i c ease f om 2025 esults. O a p o fo ma o ga ic basis, the midpoi t of this a ge would equate to g eate tha 30% yea o yea g owth. This updated ta get i cludes eve ue expected f om Cybe hawk du i g the seco d half of 2026.
G owth is expected to be b oad-based ac oss O das’ p oduct po tfolio, suppo ted by a st o g pipeli e a d app oximately $757 millio i p o fo ma backlog. Beyo d this b oad-based dema d, the seco d-half of 2026 amp is also expected to be d ive by specific custome o de s a d p og ams al eady i backlog: O das will begi volume shipme ts elated to o de s captu ed by Mist al u de the $982 millio Lethal U ma ed St ike (LUS) IDIQ awa d with the U.S. A my, while also delive i g agai st g owi g dema d fo the ew ULTRA a d Io St ike platfo ms, which a e expected to begi thei adoptio cu ve i 2026. O das also expects to begi volume delive ies i the fou th qua te fo the $140 millio combat e gi ee i g vehicles p og am a ou ced ea lie i the yea . Reve ue fo the thi d qua te of 2026 is expected to be $140 – $155 millio , ep ese ti g 76% seque tial g owth at the midpoi t, a d g eate tha 30% o ga ic g owth o a yea -ove -yea p o fo ma basis.
O das’ st ategic g owth p og am emai s active, a d the Compa y expects to execute additio al acquisitio s i 2026 which would esult i fu the busi ess expa sio .
The elevated losses i the fi st half of 2026 ep ese ted a f o t-loadi g of expe ses ahead of the sig ifica t eve ue amp expected i the seco d half of 2026 a d beyo d. The Compa y views these expe ses as i vestme ts ecessa y to suppo t lo g-te m g owth a d ma ket captu e, a d as p ude t a d limited i scope i elatio to the sig ifica t oppo tu ity ahead. The Compa y expects Adjusted EBITDA losses to decli e seque tially i the thi d qua te of 2026 th ough highe ope ati g leve age be efiti g f om st o g g owth i eve ues a d g oss p ofits d ive by st o g dema d tailwi ds a d the leve agi g of the O das b oade i g ope ati g platfo m.
The Compa y pulls fo wa d expectatio s fo Adjusted EBITDA p ofitability at the ope ati g platfo m level, which i cludes OAS a d O das Se ti el, by Q4 2026 a d compa y-wide adjusted EBITDA p ofitability by Q4 2027.
O das held app oximately $1.4 billio i cash, cash equivale ts a d sho t-te m i vestme ts as of Ju e 30, 2026. Du i g the thi d qua te , the Compa y has utilized app oximately $325 millio of cash i co ectio with closi g the acquisitio s of DZYNE a d Cybe hawk.
Date: Thu sday, August 13, 2026Time: 8:30 a.m. Easte TimeToll-f ee dial-i umbe : 844-883-3907I te atio al dial-i umbe : 412-317-5798Call pa ticipa t p e- egist atio li k: he e
The Compa y e cou ages liste e s to p e- egiste , which allows calle s to gai immediate access a d bypass the live ope ato . Please ote that you ca egiste at a y time du i g the call. Fo those who choose ot to p e- egiste , please call the co fe e ce telepho e umbe 10-15 mi utes p io to the sta t time, at which time a ope ato will egiste you ame a d o ga izatio .
The co fe e ce call will also be b oadcast live a d available fo eplay he e a d via the i vesto elatio s sectio of the Compa y’s website at i .o das.com. A eplay will be accessible f om the i vesto elatio s website afte completio of the eve t.
O das I c. (NASDAQ:ONDS) is a leadi g p ovide of auto omous systems, obotics, a d missio -c itical tech ologies fo defe se, homela d secu ity, public safety, c itical i f ast uctu e, a d i dust ial ma kets. The Compa y develops a d deploys i teg ated u ma ed a d auto omous platfo ms ac oss ai , g ou d, a d st atosphe ic e vi o me ts, i cludi g auto omous d o e systems, cou te -UAS tech ologies, obotic g ou d systems, adva ced u ma ed ai c aft a d p opulsio solutio s, demi i g a d e gi ee i g systems, a d i teg ated se si g a d commu icatio s tech ologies desig ed to suppo t i tellige ce, su veilla ce, eco aissa ce, secu ity, a d ope atio al missio s i complex e vi o me ts. O das’ solutio s a e deployed globally by gove me t, defe se, a d comme cial custome s to p otect i f ast uctu e, bo de s, t a spo tatio etwo ks, pe so el, a d st ategic assets.
Fo additio al i fo matio o O das I c., visit www.o das.com.
Stateme ts made i this elease that a e ot stateme ts of histo ical o cu e t facts a e “fo wa d-looki g stateme ts” withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995. We cautio eade s that fo wa d-looki g stateme ts a e p edictio s based o ou cu e t expectatio s about futu e eve ts. These fo wa d-looki g stateme ts a e ot gua a tees of futu e pe fo ma ce a d a e subject to isks, u ce tai ties a d assumptio s that a e difficult to p edict. Ou actual esults, pe fo ma ce, o achieveme ts could diffe mate ially f om those exp essed o implied by the fo wa d-looki g stateme ts as a esult of a umbe of facto s, i cludi g the isks discussed u de the headi g “Risk Facto s” discussed u de the captio “Item 1A. Risk Facto s” i Pa t I of ou most ece t A ual Repo t o Fo m 10-K o a y updates discussed u de the captio “Item 1A. Risk Facto s” i Pa t II of ou Qua te ly Repo ts o Fo m 10-Q a d i ou othe fili gs with the SEC. We u de take o obligatio to publicly update o evise a y fo wa d-looki g stateme ts, whethe as a esult of ew i fo matio , futu e eve ts o othe wise that occu afte that date, except as equi ed by law.
P esto G imesMa keti g Ma age , O das I c.
As equi ed by the ules of the Secu ities a d Excha ge Commissio (“SEC”), we p ovide a eco ciliatio of ou o -GAAP fi a cial measu es to the most di ectly compa able GAAP measu es. These eco ciliatio s a e set fo th i the tables below.
We believe that adjusted ea i gs befo e i te est, taxes, dep eciatio , a d amo tizatio (“Adjusted EBITDA”) is a useful suppleme tal measu e fo evaluati g ou ope ati g pe fo ma ce a d pe iod to pe iod t e ds because it elimi ates the impact of items that p ima ily eflect ou capital st uctu e, tax positio , o -cash accou ti g cha ges, acquisitio – elated t a sactio costs, a d othe items that ma ageme t does ot co side i dicative of o goi g ope ati g pe fo ma ce. Adjusted EBITDA should be co side ed i additio to, a d ot as a substitute fo , et i come (loss) a d othe measu es p epa ed i acco da ce with GAAP. Adjusted EBITDA emoves the effects of i te est a d fi a ci g- elated items, dep eciatio a d amo tizatio , i come taxes, stock-based compe satio a d expe se, acquisitio – elated expe ses, cha ge i fai value of co ti ge t co side atio a d othe acquisitio elated obligatio s, a d othe o -ope ati g gai s a d losses. Ma ageme t believes that excludi g these items e ha ces compa ability ac oss pe iods a d facilitates a alysis of u de lyi g ope ati g t e ds.
Adjusted Cash Ope ati g Expe se is a o -GAAP fi a cial measu e that ep ese ts total ope ati g expe ses excludi g dep eciatio , amo tizatio of i ta gible assets, acquisitio – elated expe ses, cha ge i fai value of co ti ge t co side atio a d othe acquisitio elated obligatio s, a d stock-based compe satio a d expe se. The most di ectly compa able GAAP measu e to Adjusted Cash Ope ati g Expe se is total ope ati g expe ses. Ma ageme t believes Adjusted Cash Ope ati g Expe se p ovides useful suppleme tal i fo matio by isolati g ecu i g, cash-based ope ati g costs a d facilitati g mea i gful pe iod-to-pe iod compa iso s. Ma ageme t uses this measu e fo i te al cost ma ageme t, budgeti g, a d to evaluate ope ati g t e ds exclusive of o -cash accou ti g cha ges. Adjusted Cash Ope ati g Expe se should be co side ed i additio to, a d ot as a substitute fo , total ope ati g expe ses p epa ed i acco da ce with GAAP.
Begi i g i the pe iod e ded Ju e 30, 2026, the Compa y evised its calculatio of Adjusted EBITDA a d Adjusted Cash Ope ati g Expe se to exclude cha ges i the fai value of co ti ge t co side atio a d othe acquisitio elated obligatio s. These amou ts eflect pe iodic emeasu eme t adjustme ts equi ed u de U.S. GAAP a d a e p ima ily d ive by cha ges i estimates a d assumptio s elated to futu e ea -out payme ts. Ma ageme t believes excludi g these acquisitio – elated fai value adjustme ts imp oves pe iod-to-pe iod compa ability a d p ovides i vesto s with additio al i sight i to the Compa y’s ope ati g pe fo ma ce. This evisio did ot affect a y p eviously epo ted Adjusted EBITDA o Adjusted Cash Ope ati g Expe se amou ts because o gai s o losses elated to cha ges i the fai value of co ti ge t co side atio we e ecog ized i the p io pe iods p ese ted. I co ectio with this cha ge, the Compa y e amed ‘Cash Ope ati g Expe se’ to ‘Adjusted Cash Ope ati g Expe se’. The evised captio is i te ded to mo e clea ly commu icate the measu e as a ma ageme t-defi ed o -GAAP pe fo ma ce measu e that excludes specified cash a d o cash expe ses a d does ot ep ese t all ope ati g expe ses equi i g cash settleme t.
Also begi i g i the pe iod e ded Ju e 30, 2026, the Compa y i t oduced Adjusted G oss P ofit a d Adjusted G oss Ma gi . Adjusted G oss P ofit is a o -GAAP fi a cial measu e that ep ese ts g oss p ofit excludi g amo tizatio of acquisitio – elated i ta gible assets a d stock-based compe satio a d expe se i cluded i cost of goods sold. Adjusted G oss Ma gi is a o -GAAP fi a cial measu e that ep ese ts Adjusted G oss P ofit as a pe ce tage of eve ue. The most di ectly compa able GAAP measu es to Adjusted G oss P ofit a d Adjusted G oss Ma gi a e g oss p ofit a d g oss ma gi (g oss p ofit as a pe ce tage of eve ue), espectively. Ma ageme t believes these measu es p ovide i vesto s with additio al i sight i to the u de lyi g p ofitability of the Compa y’s p oducts a d se vices, ope ati g pe fo ma ce a d pe iod-to-pe iod t e ds. Compa ative p io -pe iod amou ts have bee p ese ted o a co siste t basis.
Ma ageme t uses Adjusted EBITDA, Adjusted Cash Ope ati g Expe se, Adjusted G oss P ofit, a d Adjusted G oss Ma gi togethe with GAAP esults, i maki g ope ati g a d pla i g decisio s a d i evaluati g the Compa y’s o goi g pe fo ma ce. Othe compa ies may calculate simila ly titled o -GAAP measu es diffe e tly, a d the efo e ou o -GAAP measu es may ot be compa able to measu es used by othe compa ies.
