SailPoint, Inc.

Filing receipts

“The following table summarizes our free cash flow for the periods presented: Three Months Ended April 30, 2026 2025 (in thousands) GAAP net cash provided by (used in) operating activities $ 38,241 $ (96,807) Less: Purchase of property and equipment (969) (2,191) Less: Capitalized software development costs (4,752) (1,706) Free cash flow $ 32,520 $ (100,704) Our free cash flow for the three months ended April 30, 2026 increased when compared to the three months ended April 30, 2025, primarily due to a lower net operating loss from higher revenue growth compared to the prior period.”

“This decrease was primarily due to a $22.1 million net decrease in interest expense due to the full repayment of our Term Loans in the prior year, which included a $15.3 million loss on the 30 Table of Contents extinguishment of debt and $6.7 million in related interest expense, partially offset by a $2.8 million increase in other expense related to foreign currency exchange loss.”

“Cost of subscription revenue increased $4.7 million, or 6%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 primarily due to an increase in employee-related costs of $5.6 million due to higher headcount and increased investments in existing employees, an increase in software and hosting costs of $4.1 million from the increase in sales of SaaS subscriptions, an increase in amortization of intangible assets of $0.8 million, an increase in third-party royalties of $0.7 million, and an increase in amortization of capitalized software of $0.4 million.”