The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2025, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on February 26, 2026. Since the date of those financial statements, there have been no material changes to the Company’s significant accounting policies, except as described below.

Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles (“GAAP”) for complete financial statements. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, referred to as our “2025 Annual Report.”

During the three months ended June 30, 2026, we identified errors related to (i) the net overstatement of revenue associated with certain subscription arrangements and (ii) the accounting for vendor credits on server infrastructure trade-ins, resulting in errors in other income and depreciation expense. Also, we have other immaterial errors from prior periods, including certain balance sheet accounts originating from our 2021 separation from SolarWinds, primarily related to the calculation of foreign exchange. We assessed these errors individually and in the aggregate and concluded they were not material to any previously issued annual or interim consolidated financial statements. However, in accordance with Staff Accounting Bulletin No. 108 of the Securities and Exchange Commission (“SEC”), the Company concluded that correcting the cumulative errors in the current period would be material to its statement of operations for the three and six months ended June 30, 2026. As a result, we revised our previously issued financial statements.

Additionally, in conjunction with the revision, the Company is correcting certain other immaterial items that were previously corrected out of period and that were previously identified and concluded as immaterial, individually and in the aggregate, to its financial statements.

The revised amounts as of and for the three and six months ended June 30, 2025 are reflected in the accompanying Consolidated Financial Statements and related footnotes. In addition, the amounts presented for the six months ended June 30, 2026 in the accompanying Consolidated Financial Statements reflect the correction of the errors attributable to the three months ended March 31, 2026.

For the three and six months ended June 30, 2025 and the six months ended June 30, 2026, revisions to the Consolidated Statements of Stockholders’ Equity are limited to changes in net loss and foreign currency translation adjustments, and the resulting impact to accumulated other comprehensive (loss) income, retained earnings, and total stockholders’ equity. These revisions align to the revised Consolidated Balance Sheets and Consolidated Statements of Operations and Comprehensive Income presented below. Amounts presented herein for prior periods, including in the applicable notes to the Consolidated Financial Statements, reflect the revision.


	March 31, 2026
	As Previously Reported		Adjustments		As Revised
Assets
Current assets:
Cash and cash equivalents	$	117,812	$	—	$	117,812
Accounts receivable, net of allowance of $4,232 as of March 31, 2026	46,062		(370)		45,692




Total current assets	210,976		(370)		210,606
Property and equipment, net	37,786		338		38,124

Deferred taxes	4,262		(248)		4,014



Total assets	$	1,395,316	$	(280)	$	1,395,036
Liabilities and stockholders' equity
Current liabilities:

Accrued liabilities and other	40,298		(473)		39,825



Income taxes payable	9,717		(1,327)		8,390
Current portion of deferred revenue	20,677		4,019		24,696

Total current liabilities	167,396		2,219		169,615
Long-term liabilities:






Total liabilities	596,485		2,219		598,704

Stockholders’ equity:





Retained earnings	53,557		(2,499)		51,058
Total stockholders' equity	798,831		(2,499)		796,332
Total liabilities and stockholders' equity	$	1,395,316	$	(280)	$	1,395,036


	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
Revenue:
Subscription and other revenue	$	131,249	$	(728)	$	130,521	$	249,446	$	(837)	$	248,609
Cost of revenue:
Cost of revenue	24,468		74		24,542		47,979		129		48,108

Total cost of revenue	28,697		74		28,771		56,375		129		56,504
Gross profit	102,552		(802)		101,750		193,071		(966)		192,105






Operating income	10,122		(802)		9,320		11,946		(966)		10,980
Other expense, net:

Other (expense) income, net	(854)		39		(815)		531		162		693
Total other expense, net	(8,944)		39		(8,905)		(14,630)		162		(14,468)
Profit (loss) before income taxes	1,178		(763)		415		(2,684)		(804)		(3,488)
Income tax expense	5,200		(154)		5,046		8,500		(136)		8,364
Net loss	$	(4,022)	$	(609)	$	(4,631)	$	(11,184)	$	(668)	$	(11,852)
Other comprehensive income:
Foreign currency translation adjustment	37,307		(747)		36,560		53,732		(1,080)		52,652
Other comprehensive income	37,307		(747)		36,560		53,732		(1,080)		52,652
Comprehensive income	$	33,285	$	(1,356)	$	31,929	$	42,548	$	(1,748)	$	40,800


	Three Months Ended March 31, 2026
	As Previously Reported		Adjustments		As Revised
Revenue:
Subscription and other revenue	$	133,675	$	(1,306)	$	132,369
Cost of revenue:
Cost of revenue	27,510		92		27,602

Total cost of revenue	31,751		92		31,843
Gross profit	101,924		(1,398)		100,526





Total operating expenses	89,467		—		89,467
Operating income	12,457		(1,398)		11,059
Other expense, net:


Total other expense, net	(8,272)		—		(8,272)
Income before income taxes	4,185		(1,398)		2,787
Income tax expense	4,800		(330)		4,470
Net loss	$	(615)	$	(1,068)	$	(1,683)
Other comprehensive loss:
Foreign currency translation adjustment	(13,033)		1,180		(11,853)
Other comprehensive loss	(13,033)		1,180		(11,853)
Comprehensive loss	$	(13,648)	$	112	$	(13,536)
Net loss per share:
Basic loss per share	$	(0.00)	$	(0.01)	$	(0.01)
Diluted loss per share	$	(0.00)	$	(0.01)	$	(0.01)


	Six Months Ended June 30, 2025
	As Previously Reported		Adjustments		As Revised
Cash flows from operating activities
Net loss	$	(11,184)	$	(668)	$	(11,852)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	21,281		129		21,410


Gain on asset disposal	—		(162)		(162)







Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:



Current contract assets	(3,193)		94		(3,099)




Income taxes payable	(441)		(136)		(577)
Deferred revenue	(3,641)		743		(2,898)


Net cash provided by operating activities	43,864		—		43,864


	Three Months Ended March 31, 2026
	As Previously Reported		Adjustments		As Revised
Cash flows from operating activities
Net loss	$	(615)	$	(1,068)	$	(1,683)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	11,356		92		11,448










Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:








Income taxes payable	(1,100)		(330)		(1,430)
Deferred revenue	(4,207)		1,306		(2,901)


Net cash provided by operating activities	17,471		—		17,471

The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include:

As of June 30, 2026 and December 31, 2025, we have money market fund financial assets of $69.4 million and $68.2 million, respectively, which are included in “cash and cash equivalents” in our Consolidated Balance Sheets. See “Fair Value Measurements” below and Note 6. Fair Value Measurements for further details regarding the fair value measurements of our money market fund financial assets.

We apply the authoritative guidance on fair value measurements for financial assets and liabilities, such as our money market fund financial assets and contingent consideration liabilities, that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis.

The carrying values reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. See Note 6. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, the carrying value of our outstanding debt approximates its estimated fair value as the interest rate on the debt is adjusted for changes in market rates. See Note 8. Debt for further details regarding our debt.

The Company accounts for debt instruments in accordance with ASC 470, Debt. Debt is initially recorded at the amount of cash proceeds received, adjusted for debt discounts, premiums, and issuance costs, and is subsequently measured at amortized cost using the effective interest method. Debt is classified as current or noncurrent based on the contractual maturity date and the absence or presence of conditions that would require repayment within twelve months of the balance sheet date.

The Company’s financing arrangements may include non-revolving delayed draw debt commitments. Fees paid in connection with obtaining such commitments are deferred and recorded as a loan commitment asset, which represents the Company’s contractual right to access future financing. The loan commitment asset is initially measured at fair value and is assessed for impairment at each reporting period. Upon the funding of a delayed draw term loan, the Company derecognizes the associated portion of the loan commitment asset and records it as a discount to the funded debt, which is amortized to interest expense over the term of the related loan using the effective interest method. If it becomes probable that all or a portion of the loan commitment will not be drawn, the related portion of the loan commitment asset is expensed immediately.

quarter, or more frequently if events or changes in circumstances indicate that the carrying value of the reporting unit may exceed its fair value. We operate as a single reporting unit for purposes of goodwill impairment testing. An impairment charge is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the amount of goodwill allocated to the reporting unit.

We estimate the fair value of our single reporting unit using a market approach based on the Company’s market capitalization, as adjusted for an appropriate control premium. We operate as a single reporting unit and our common stock is actively traded in an observable market, and we therefore concluded that our market capitalization, as adjusted for a control premium, provides the most representative indication of the fair value of the reporting unit.

In applying the market approach, we believe a market participant buyer would generally be willing to pay a premium above the quoted market price of our common stock to obtain a controlling interest in the business. The control premium is derived from control premiums observed in comparable market transactions and is compared to the implied control premium based upon estimated synergies that would be realized by a hypothetical buyer. The selection of an appropriate control premium requires judgment and represents a key assumption used in estimating the fair value of the reporting unit. See Note 4. Goodwill for further information regarding the interim goodwill impairment test performed during the three months ended June 30, 2026.


	Foreign Currency Translation Adjustments		Accumulated Other Comprehensive Income

	(in thousands)
Balance as of December 31, 2025	$	32,514	$	32,514
Other comprehensive loss before reclassification	(14,845)		(14,845)
Amount reclassified from accumulated other comprehensive income	—		—
Net current period other comprehensive loss	(14,845)		(14,845)
Balance as of June 30, 2026	$	17,669	$	17,669


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

	(in thousands)
Subscription revenue	$	137,071	$	129,146	$	268,224	$	245,886
Other revenue	1,152		1,375		2,368		2,723
Total subscription and other revenue	$	138,223	$	130,521	$	270,592	$	248,609


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

	(in thousands)
Revenue recognized at a point in time	$	12,114	$	16,709	$	19,658	$	26,831
Revenue recognized over time	126,109		113,812		250,934		221,778
Total revenue recognized	$	138,223	$	130,521	$	270,592	$	248,609

Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from annually billed subscription agreements and maintenance services associated with our historical sales of perpetual license products which are delivered over time. Certain of our maintenance agreements are billed annually in advance or one-time for services to be performed over a 12-month period. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement.

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract assets are recorded as current if the invoice will be delivered to the customer within the succeeding 12-month period, with the remaining recorded as long-term. Current contract assets were $15.4 million and $19.5 million as of June 30, 2026 and December 31, 2025, respectively. Non-current contract assets were $0.3 million and $2.4 million as of June 30, 2026 and December 31, 2025, respectively, and are included in other non-current assets on our Consolidated Balance Sheets.

We recognize as an asset the incremental costs of obtaining a contract with a customer if we expect to recover those costs, and amortize the asset in accordance with the pattern of transfer of goods and services to which the asset relates. ASC 606 defines the incremental costs of obtaining a contract as the costs that an entity incurs in its efforts to obtain a contract that would not have been incurred if the contract had not been obtained.

We recognize the incremental costs of obtaining contracts as expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. For long-term committed contracts, we expect that commission fees paid to sales representatives as a result of obtaining these contracts are recoverable and are therefore capitalized. Current capitalized commissions were $3.3 million and $2.7 million as of June 30, 2026 and December 31, 2025, respectively, and are included in “prepaid and other current assets” in our Consolidated Balance Sheets. Non-current capitalized commissions were $2.1 million and $2.3 million as of June 30, 2026 and December 31, 2025, respectively, and are included in “other non-current assets” in our Consolidated Balance Sheets. Capitalized commissions are amortized on a straight-line basis over a period of three years, and are included in “sales and marketing” in our Consolidated Statements of Operations. We recognized amortization of capitalized commissions of $0.7 million and $0.5 million during the three months ended June 30, 2026 and 2025, respectively. We recognized amortization of capitalized commissions of $1.4 million and $0.8 million during the six months ended June 30, 2026 and 2025, respectively.

In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets,” (“ASU No. 2025-05”) to introduce a practical expedient for the application of the current expected credit loss model to current accounts receivable and contract assets. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2025 and early adoption is permitted. We adopted this standard as of January 1, 2026 and elected the practical expedient. The adoption of the standard did not have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the financial statements. The updated guidance is effective for public companies for fiscal periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, “Targeted Improvements to the Accounting for Internal-Use Software.” The updated guidance is effective for public companies for fiscal years beginning after December 15, 2027 and early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.