On September 30, 2024, we completed the sale of our former Software Integrity business (the Software Integrity Divestiture) to entities controlled by funds affiliated with Clearlake Capital Group, L.P. and Francisco Partners (together, the Sponsors). The aggregate consideration for the sale was $1.65 billion, comprised of: (i) cash of $1.48 billion received upon closing; (ii) $121.5 million reflecting the present value of $125.0 million in deferred consideration receivable in equal installments over five fiscal quarters beginning on January 17, 2025, subject to acceleration at our option prior to the closing of the Ansys Merger; (iii) $22.2 million reflecting the fair value of contingent consideration of up to $475.0 million receivable upon the Sponsors achieving a specified rate of return in the event of one or more potential liquidity transactions; and (iv) additional consideration receivable of $27.1 million as a result of net working capital adjustments. As a result of the Software Integrity Divestiture, we derecognized net assets of $720.5 million and incurred transaction costs of $61.7 million, resulting in a pre-tax gain of $868.8 million in fiscal 2024.

In the second quarter of fiscal 2025, we finalized the working capital adjustments and received $20.0 million from the Sponsors. The remainder receivable balance of $7.1 million was recorded as a reduction to the previously recorded gain from the Software Integrity Divestiture. We recorded a total pre-tax gain, net of transaction costs, of $860.5 million from the Software Integrity Divestiture.

The financial results of the Software Integrity business were presented as income from discontinued operations, net of income taxes in our condensed consolidated statements of income. The following table presents the major components of financial results of our Software Integrity business for the periods presented:


	Three Months Ended July 31,				Nine Months Ended July 31,
	2025		2024		2025		2024
			(in thousands)
Revenue	$	—	$	127,917	$	—	$	392,579
Cost of revenue	—		40,279		—		136,010
Operating expenses	—		91,854		—		262,745
Other income (expense), net	—		605		—		1,601
Income (loss) from discontinued operations	—		(3,611)		—		(4,575)
Loss on Software Integrity Divestiture	—		—		(8,299)		—
Income (loss) from discontinued operations before income taxes	—		(3,611)		(8,299)		(4,575)
Income tax provision (benefit)	—		14,202		(4,399)		8,580
Income (loss) from discontinued operations, net of income taxes	$	—	$	(17,813)	$	(3,900)	$	(13,155)


	Nine Months Ended July 31,
	2025		2024
	(in thousands)
Amortization and depreciation	$	—	$	16,317
Reduction of operating lease right-of-use assets	$	—	$	2,162
Amortization of capitalized costs to obtain revenue contracts	$	—	$	20,808
Stock-based compensation	$	—	$	47,476
Deferred income taxes	$	(6,933)	$	18,939
Purchases of property and equipment	$	—	$	972