We capitalize software development costs related to software developed or obtained for internal use in accordance with ASC 350-40. For the three and six months ended June 30, 2026, we capitalized $15.6 million and $41.0 million, respectively, of software development costs related to software developed or obtained for internal use. For the three and six months ended June 30, 2025, we capitalized $36.9 million and $70.7 million, respectively, of software development costs related to software developed or obtained for internal use.

Rental clocks included in property and equipment, net in the consolidated balance sheets, represent time clocks issued to clients under month-to-month operating leases. As such, these items are transferred from inventory to property and equipment and depreciated over their estimated useful lives.

For the three and six months ended June 30, 2026, we incurred interest costs of $10.5 million and $14.5 million, respectively, none of which was capitalized. For the three and six months ended June 30, 2025, we incurred interest costs of $0.8 million and $1.6 million, respectively, none of which was capitalized.

Depreciation and amortization expense for property and equipment was $46.7 million and $94.4 million for the three and six months ended June 30, 2026, respectively. Depreciation and amortization expense for property and equipment was $41.0 million and $80.0 million for the three and six months ended June 30, 2025, respectively.