“Research and Development Expenses Research and development expenses decreased by $12.2 million during the three months ended March 31, 2026 as compared to the prior year period, primarily due to: • a $10.9 million decrease due to a higher number of initiatives subject to capitalization of internal-use software costs; and • a $2.7 million decrease in personnel-related expense, including stock-based compensation expense, primarily driven by the decrease from our RIFs executed during the current fiscal year; partially offset by • a $1.1 million increase in other costs, primarily from higher software licenses and subscriptions and an increase in shared overhead.”
“The following table sets forth our Consolidated Statements of Operations data as a percentage of net revenues for the periods indicated: Fiscal Year 2026 2025 Net revenues 100 % 100 % Cost of revenues 22 20 Gross profit 78 80 Operating expenses: Sales and marketing 25 19 Research and development 8 8 General and administrative (2) 7 Amortization of intangible assets 4 4 Restructuring and other costs 1 0 Impairment of intangible assets — 0 Total operating expenses 36 39 Operating income (loss) 42 41 Interest expense (11) (15) Other income (expense), net (1) 0 Income (loss) before income taxes 30 26 Income tax expense (benefit) 11 10 Net income (loss) 19 % 16 % Note: The percentages may not add due to rounding.”
“The increase in SaaS revenue, which was driven by strong customer demand for our SaaS solutions, was partially offset by an expected decrease in term license and support revenues.”