Market Newsdesk

February 11, 2026 4:09 pm

Paycom Software, Inc. Reports Fourth Quarter and Year-End 2025 Results

Paycom Software, Inc. Reports Fourth Quarter and Year-End 2025 Results

Full Year Revenues of $2,052 million, up 9% year-over-year

Full Year GAAP Net Income of $453 million, representing 22% of total revenues, or $8.08 per diluted share

Full Year Non-GAAP Net Income of $519 million, or $9.24 per diluted share

Full Year Adjusted EBITDA of $882 million, representing 43% of total revenues

OKLAHOMA CITY–(BUSINESS WIRE)–
Paycom Software, Inc. (“Paycom,” “we” and “our”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter and year ended December 31, 2025.

“We delivered strong results in 2025, exceeding our strategic and financial goals for the year by driving full solution automation and strengthening client retention to 91%,” said Paycom’s founder and CEO, Chad Richison. “Our commitment to world-class service and innovation—including the expansion of automated decisioning tools like IWant, Beti, and Gone—continues to set Paycom apart as the leader in our industry. With less than 5% of our total addressable market, we still have a long runway ahead of us.”

Financial Highlights for the Fourth Quarter of 2025

Total Revenues of $544.3 million represented a 10.2% increase compared to total revenues of $493.8 million in the same period last year. Recurring and other revenues of $517.1 million increased 11.2% from the comparable prior year period and constituted 95.0% of total revenues.

GAAP Net Income was $113.8 million, or $2.07 per diluted share, compared to GAAP net income of $113.6 million, or $2.02 per diluted share, in the same period last year.

Non-GAAP Net Income¹was $134.7 million, or $2.45 per diluted share, compared to $130.1 million, or $2.32 per diluted share, in the same period last year.

Adjusted EBITDA¹ was $236.3 million, compared to $214.9 million in the same period last year.

Cash and Cash Equivalents were $370.0 million as of December 31, 2025, compared to $402.0 million as of December 31, 2024. During the quarter ended December 31, 2025, Paycom paid $20.6 million in cash dividends and repurchased 554,226 shares of common stock for $108.8 million, in the aggregate.

Total Debt was $0 as of December 31, 2025 and December 31, 2024.

Financial Highlights for the Full Year 2025

Total Revenues of $2,051.7 million represented a 9.0% increase compared to total revenues of $1,883.2 million in the same period last year. Recurring and other revenues of $1,938.7 million increased 10.3% from the comparable prior year period and constituted 94.5% of total revenues.

GAAP Net Income was $453.4 million, or $8.08 per diluted share, compared to GAAP net income of $502.0 million, or $8.92 per diluted share, in the same period last year.

Non-GAAP Net Income¹was $518.6 million, or $9.24 per diluted share, compared to $462.0 million, or $8.21 per diluted share, in the same period last year.

Adjusted EBITDA¹ was $882.3 million, compared to $775.4 million in the same period last year.

¹Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share are non-GAAP financial measures. Please see the discussion below under the heading “Use of Non-GAAP Financial Information” and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Business Highlights

Annual revenue retention rate improved to 91% in 2025, compared to 90% in 2024.

Client count on a parent company grouping basis increased to approximately 20,300 as of December 31, 2025, representing 5% growth year-over-year.

Total client count on a taxpayer identification number or client code basis grew to approximately 39,200 as of December 31, 2025, up 4% from the prior year.

Employee records stored in our system increased to 7.4 million in 2025, up 5% year-over-year.

In 2025, Paycom launched its award-winning, command-driven AI solution, IWant™, making its software even easier to use for all user types.

Financial Outlook

Paycom provides the following expected financial guidance for the year ending December 31, 2026.

Total revenue in the range of $2.175 billion to $2.195 billion, representing year-over-year growth between 6% and 7%.

Recurring and other revenue growth between 7% and 8% year over year.

Interest on funds held for clients of approximately $103 million.

Adjusted EBITDA in the range of $950 million to $970 million, representing a margin of approximately 44% at the midpoint.

We have not reconciled the forward-looking adjusted EBITDA ranges and adjusted EBITDA margin presented above and discussed on the teleconference call to net income, nor the forward-looking non-GAAP effective income tax rate discussed on the teleconference call, to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense and other items. Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margin to net income margin, and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort.

Use of Non-GAAP Financial Information

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses, adjusted total research and development costs, adjusted EBITDA margin, non-GAAP effective income tax rate, free cash flow and free cash flow margin. Management uses these non-GAAP financial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We define (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense and certain transaction expenses that are not core to our operations (if any), less any gain on modification of the naming rights agreement, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense and certain transaction expenses that are not core to our operations (if any), less any gain on modification of the naming rights agreement, all of which are adjusted for the effect of income taxes, (iii) adjusted gross profit as gross profit plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross profit plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion), (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues, (viii) non-GAAP effective income tax rate as the provision for income taxes plus the income tax effect on non-GAAP adjustments divided by non-GAAP net income (calculated as described in clause (ii)) plus the provision for income taxes and the income tax effect on non-GAAP adjustments, (ix) free cash flow as net cash provided by operating activities less purchases of intangible assets and purchases of property and equipment (which we also refer to as “capital expenditures” or “cap ex”), and (x) free cash flow margin as free cash flow (calculated as described in clause (ix)) divided by total revenues. The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use similar non-GAAP financial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, paying dividends, repurchasing common stock and other purposes. Management believes that the non-GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our business and performance.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses, total research and development costs and GAAP effective income tax rate. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies, and other companies may not calculate such measures in the same manner as we do.

Conference Call Details

In conjunction with this announcement, Paycom will host a conference call today, February 11, 2026, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (833) 470-1428 (domestic) or (646) 844-6383 (international) and provide 829388 as the access code. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom’s website at investors.paycom.com.

About Paycom

Paycom Software, Inc. (NYSE: PAYC) simplifies business and employees’ lives through automated, command-driven HR and payroll technology that revolutionizes data access. From hire to retire, Paycom’s employee-first technology leverages AI and full-solution automation to streamline processes and drive efficiencies in a truly single database, providing a seamless experience for Paycom’s clients and their employees. With its industry-first AI engine, IWant™, Paycom provides instant and accurate access to employee data without having to navigate or learn the software. For over 25 years, Paycom has been recognized for its innovative technology and workplace culture while serving businesses of all sizes in the U.S. and internationally.

Financial Presentation

Dollar amounts are presented in millions, except amounts per share. As a result, some amounts may not sum or recalculate exactly due to rounding. All percentages have been calculated using unrounded amounts.

Forward-Looking Statements

Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to Paycom’s estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; competition; trends, opportunities and risks affecting our business, industry and financial results, including macroeconomic factors; future expansion or growth plans and potential for future growth, including internationally; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; the return on investment for users of our solution, as well as how certain applications may impact client employee usage and client satisfaction; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how the performance of certain of our offerings is sensitive to changes in the labor market; our plan to open additional sales offices and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to research and development and the expansion of our facilities; our plans to pay cash dividends; our plans to repurchase shares of our common stock through a stock repurchase plan using cash and/or borrowings under our senior secured revolving credit facility; and our expected income tax rate for future periods. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “will,” “would,” and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements are based only on information currently available to us, speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements as a result of the factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law.

Paycom Software, Inc.

Unaudited Consolidated Balance Sheets

(in millions, except per share amounts)

December 31, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

$

370.0

$

402.0

Accounts receivable

44.9

39.2

Prepaid expenses

47.5

44.4

Inventory

1.7

1.4

Income tax receivable

78.2

11.9

Deferred contract costs

159.5

140.4

Current assets before funds held for clients

701.8

639.3

Funds held for clients

5,137.0

3,665.5

Total current assets

5,838.8

4,304.8

Property and equipment, net

687.3

561.4

Intangible assets, net

37.4

46.2

Goodwill

51.9

51.9

Long-term deferred contract costs

857.4

783.6

Operating lease right-of-use assets

89.4

80.6

Other assets

36.5

31.4

Total assets

$

7,598.7

$

5,859.9

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

6.6

$

23.9

Accrued commissions and bonuses

28.2

33.0

Accrued payroll and vacation

60.1

59.0

Deferred revenue

28.3

30.0

Operating lease liabilities

28.4

20.4

Accrued expenses and other current liabilities

79.8

74.8

Current liabilities before client funds obligation

231.4

241.1

Client funds obligation

5,137.0

3,665.7

Total current liabilities

5,368.4

3,906.8

Deferred income tax liabilities, net

304.4

149.7

Long-term deferred revenue

121.9

114.6

Long-term operating lease liabilities

61.9

63.0

Other long-term liabilities

10.6

49.9

Total long-term liabilities

498.8

377.2

Total liabilities

5,867.2

4,284.0

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value (100.0 shares authorized, 63.6 and 63.0 shares issued at December 31, 2025 and December 31, 2024, respectively; 54.8 and 55.9 shares outstanding at December 31, 2025 and December 31, 2024, respectively)

0.6

0.6

Additional paid-in capital

878.4

724.8

Retained earnings

2,255.6

1,887.5

Accumulated other comprehensive earnings (loss)

0.3

(0.6

)

Treasury stock, at cost (8.8 and 7.1 shares at December 31, 2025 and December 31, 2024, respectively)

(1,403.4

)

(1,036.4

)

Total stockholders’ equity

1,731.5

1,575.9

Total liabilities and stockholders’ equity

$

7,598.7

$

5,859.9

Paycom Software, Inc.

Unaudited Consolidated Statements of Comprehensive Income

(in millions, except per share amounts)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Revenues

Recurring and other

$

517.1

$

464.8

$

1,938.7

$

1,758.3

Interest on funds held for clients

27.2

29.0

113.0

124.9

Total revenues

544.3

493.8

2,051.7

1,883.2

Cost of revenues

Operating expenses

64.2

65.3

263.0

267.4

Depreciation and amortization

23.6

18.3

82.4

67.2

Total cost of revenues

87.8

83.6

345.4

334.6

Administrative expenses

Sales and marketing

130.2

107.5

482.8

434.4

Research and development

72.2

66.7

283.4

242.6

General and administrative

71.1

66.0

279.0

158.6

Depreciation and amortization

25.8

21.5

93.9

78.7

Total administrative expenses

299.3

261.7

1,139.1

914.3

Total operating expenses

387.1

345.3

1,484.5

1,248.9

Operating income

157.2

148.5

567.2

634.3

Interest expense

(0.8

)

(1.0

)

(3.4

)

(3.4

)

Other income, net

2.8

4.0

55.6

18.1

Income before income taxes

159.2

151.5

619.4

649.0

Provision for income taxes

45.4

37.9

166.0

147.0

Net income

$

113.8

$

113.6

$

453.4

$

502.0

Earnings per share, basic

$

2.07

$

2.03

$

8.13

$

8.93

Earnings per share, diluted

$

2.07

$

2.02

$

8.08

$

8.92

Weighted average shares outstanding:

Basic

54.9

55.9

55.8

56.2

Diluted

55.1

56.2

56.1

56.3

Comprehensive earnings:

Net income

$

113.8

$

113.6

$

453.4

$

502.0

Unrealized net gains (losses) on available-for-sale securities

—

(0.3

)

1.0

1.0

Tax effect

(0.1

)

(0.2

)

(0.1

)

(0.6

)

Other comprehensive income (loss), net of tax

(0.1

)

(0.5

)

0.9

0.4

Comprehensive earnings

$

113.7

$

113.1

$

454.3

$

502.4

Paycom Software, Inc.

Unaudited Consolidated Statements of Cash Flows

(in millions)

Year Ended December 31,

2025

2024

Cash flows from operating activities

Net income

$

453.4

$

502.0

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

176.3

145.9

Stock-based compensation expense

118.7

(22.9

)

Amortization of debt issuance costs

1.4

1.1

Gain on disposition of property and equipment

(0.1

)

—

Accretion of discount on available-for-sale securities

(13.0

)

(0.1

)

Non-cash marketing expense

1.0

1.6

Deferred income taxes, net

154.4

5.8

Gain on modification of naming rights agreement

(35.6

)

—

Other

0.8

(0.5

)

Changes in operating assets and liabilities:

Accounts receivable

(5.7

)

(22.8

)

Prepaid expenses

1.7

(6.7

)

Inventory

(0.3

)

—

Other assets

(6.5

)

(2.7

)

Deferred contract costs

(89.5

)

(120.0

)

Income taxes, net

(66.3

)

6.5

Accounts payable

(16.2

)

9.1

Accrued commissions and bonuses

(4.8

)

2.5

Accrued payroll and vacation

1.1

2.9

Deferred revenue

5.6

14.1

Accrued expenses and other liabilities

4.5

17.4

Net change in operating right-of-use assets and operating lease liabilities

(2.0

)

0.7

Net cash provided by operating activities

678.9

533.9

Cash flows from investing activities

Purchases of investments from funds held for clients

(835.9

)

(24.9

)

Proceeds from investments from funds held for clients

500.0

200.0

Purchases of intangible assets

(4.5

)

(4.4

)

Purchases of property and equipment

(270.9

)

(192.9

)

Proceeds from sale of property and equipment

0.1

—

Net cash used in investing activities

(611.2

)

(22.2

)

Cash flows from financing activities

Repurchases of common stock

(325.5

)

(122.8

)

Withholding taxes paid related to net share settlements

(44.5

)

(21.7

)

Dividends paid

(84.8

)

(84.8

)

Proceeds from employee stock purchase plan

5.5

—

Net change in client funds obligation

1,471.3

1,337.6

Net cash provided by financing activities

1,022.0

1,108.3

Increase in cash, cash equivalents, restricted cash and restricted cash equivalents

1,089.7

1,620.0

Cash, cash equivalents, restricted cash and restricted cash equivalents

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

4,042.8

2,422.8

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$

5,132.5

$

4,042.8

Paycom Software, Inc.

Unaudited Consolidated Statements of Cash Flows, continued

(in millions)

Year Ended December 31,

2025

2024

Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents

Cash and cash equivalents

$

370.0

$

402.0

Restricted cash included in funds held for clients

4,762.5

3,640.8

Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$

5,132.5

$

4,042.8

Supplemental disclosures of cash flow information:

Cash paid for interest, net of amounts capitalized

$

2.1

$

2.0

Cash paid for income taxes, net of income tax refunds

$

78.1

$

134.8

Non-cash investing and financing activities:

Purchases of property and equipment, accrued but not paid

$

1.2

$

3.9

Stock-based compensation for capitalized software

$

25.2

$

17.5

Right-of-use assets obtained in exchange for operating lease liabilities

$

24.3

$

25.1

Paycom Software, Inc.

Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures

(in millions, except per share amounts)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net income to adjusted EBITDA:

Net income

$

113.8

$

113.6

$

453.4

$

502.0

Interest expense

0.8

1.0

3.4

3.4

Provision for income taxes

45.4

37.9

166.0

147.0

Depreciation and amortization

49.4

39.8

176.3

145.9

EBITDA

209.4

192.3

799.2

798.3

Non-cash stock-based compensation expense

27.0

22.6

118.7

(22.9

)

Gain on modification of naming rights agreement

—

—

(35.6

)

—

Adjusted EBITDA

$

236.3

$

214.9

$

882.3

$

775.4

Net income margin

20.9

%

23.0

%

22.1

%

26.7

%

Adjusted EBITDA margin

43.4

%

43.5

%

43.0

%

41.2

%

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net income to non-GAAP net income:

Net income

$

113.8

$

113.6

$

453.4

$

502.0

Non-cash stock-based compensation expense

27.0

22.6

118.7

(22.9

)

Gain on modification of naming rights agreement

—

—

(35.6

)

—

Income tax effect on non-GAAP adjustments

(6.1

)

(6.1

)

(17.9

)

(17.1

)

Non-GAAP net income

$

134.7

$

130.1

$

518.6

$

462.0

Weighted average shares outstanding:

Basic

54.9

55.9

55.8

56.2

Diluted

55.1

56.2

56.1

56.3

Earnings per share, basic

$

2.07

$

2.03

$

8.13

$

8.93

Earnings per share, diluted

$

2.07

$

2.02

$

8.08

$

8.92

Non-GAAP net income per share, basic

$

2.46

$

2.33

$

9.30

$

8.22

Non-GAAP net income per share, diluted

$

2.45

$

2.32

$

9.24

$

8.21

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Earnings per share to non-GAAP net income per share, basic:

Earnings per share, basic

$

2.07

$

2.03

$

8.13

$

8.93

Non-cash stock-based compensation expense

0.49

0.41

2.13

(0.41

)

Gain on modification of naming rights agreement

—

—

(0.64

)

—

Income tax effect on non-GAAP adjustments

(0.11

)

(0.11

)

(0.32

)

(0.30

)

Non-GAAP net income per share, basic

$

2.46

$

2.33

$

9.30

$

8.22

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Earnings per share to non-GAAP net income per share, diluted:

Earnings per share, diluted

$

2.07

$

2.02

$

8.08

$

8.92

Non-cash stock-based compensation expense

0.49

0.40

2.12

(0.41

)

Gain on modification of naming rights agreement

—

—

(0.64

)

—

Income tax effect on non-GAAP adjustments

(0.11

)

(0.10

)

(0.32

)

(0.30

)

Non-GAAP net income per share, diluted

$

2.45

$

2.32

$

9.24

$

8.21

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Adjusted gross profit:

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Less: Total cost of revenues

(87.8

)

(83.6

)

(345.4

)

(334.6

)

Total gross profit

456.5

410.2

1,706.3

1,548.6

Plus: Non-cash stock-based compensation expense

2.9

2.4

15.7

13.5

Total adjusted gross profit

$

459.4

$

412.6

$

1,722.0

$

1,562.1

Gross margin

83.9

%

83.1

%

83.2

%

82.2

%

Adjusted gross margin

84.4

%

83.6

%

83.9

%

83.0

%

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Adjusted sales and marketing expenses:

Sales and marketing expenses

$

130.2

$

107.5

$

482.8

$

434.4

Less: Non-cash stock-based compensation expense

(9.7

)

(5.4

)

(28.8

)

(19.0

)

Adjusted sales and marketing expenses

$

120.5

$

102.1

$

454.0

$

415.4

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Sales and marketing expenses as a % of revenues

23.9

%

21.8

%

23.5

%

23.1

%

Adjusted sales and marketing expenses as a % of revenues

22.1

%

20.7

%

22.1

%

22.1

%

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Adjusted total administrative expenses:

Total administrative expenses

$

299.3

$

261.7

$

1,139.1

$

914.3

Less: Non-cash stock-based compensation expense

(24.1

)

(20.2

)

(103.1

)

36.4

Adjusted total administrative expenses

$

275.3

$

241.5

$

1,036.0

$

950.7

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Total administrative expenses as a % of revenues

55.0

%

53.0

%

55.5

%

48.6

%

Adjusted total administrative expenses as a % of revenues

50.6

%

48.9

%

50.5

%

50.5

%

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Adjusted research and development expenses:

Research and development expenses

$

72.2

$

66.7

$

283.4

$

242.6

Less: Non-cash stock-based compensation expense

(5.3

)

(5.6

)

(34.7

)

(26.3

)

Adjusted research and development expenses

$

66.9

$

61.1

$

248.7

$

216.3

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Research and development expenses as a % of revenues

13.3

%

13.5

%

13.8

%

12.9

%

Adjusted research and development expenses as a % of revenues

12.3

%

12.4

%

12.1

%

11.5

%

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Total research and development costs:

Capitalized research and development costs

$

38.8

$

31.3

$

152.9

$

125.7

Research and development expenses

72.2

66.7

283.4

242.6

Total research and development costs

$

111.0

$

98.0

$

436.3

$

368.3

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Total research and development costs as a % of revenues

20.4

%

19.8

%

21.3

%

19.6

%

Adjusted total research and development costs:

Total research and development costs

$

111.0

$

98.0

$

436.3

$

368.3

Less: Capitalized non-cash stock-based compensation

(4.9

)

(3.7

)

(25.2

)

(17.5

)

Less: Non-cash stock-based compensation expense

(5.3

)

(5.6

)

(34.7

)

(26.3

)

Adjusted total research and development costs

$

100.8

$

88.7

$

376.4

$

324.5

Total revenues

$

544.3

$

493.8

$

2,051.7

$

1,883.2

Adjusted total research and development costs as a % of revenues

18.5

%

18.0

%

18.3

%

17.2

%

Year Ended December 31,

2025

2024

Free cash flow and free cash flow margin:

Net cash provided by operating activities

$

678.9

$

533.9

Purchases of property and equipment

(270.9

)

(192.9

)

Purchases of intangible assets

(4.5

)

(4.4

)

Free cash flow

$

403.5

$

336.6

Operating cash flow margin

33.1

%

28.4

%

Free cash flow margin

19.7

%

17.9

%

Paycom Software, Inc.

Unaudited Components of Non-Cash Stock-Based Compensation Expense

(in millions)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Non-cash stock-based compensation expense:

Operating expenses

$

2.9

$

2.4

$

15.7

$

13.5

Sales and marketing

9.7

5.4

28.8

19.0

Research and development

5.3

5.6

34.7

26.3

General and administrative

9.1

9.2

39.5

(81.7

)

Total non-cash stock-based compensation expense

$

27.0

$

22.6

$

118.7

$

(22.9

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211702693/en/

Paycom Software, Inc.

Investor Relations Contact:

James Samford, 800-580-4505

[email protected]

KEYWORDS: United States North America Oklahoma

INDUSTRY KEYWORDS: Professional Services Payments Data Management Technology Human Resources Software

MEDIA:

Logo

Posted on February 11, 2026 4:09 pm
SITE Centers’ Fourth Quarter 2025 Earnings to be Released Thursday, February 26, 2026

SITE Centers’ Fourth Quarter 2025 Earnings to be Released Thursday, February 26, 2026

BEACHWOOD, Ohio–(BUSINESS WIRE)–
SITE Centers Corp. (NYSE: SITC), announced today that it intends to release its fourth quarter earnings after market close on Thursday, February 26, 2026.

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. Additional information about the Company is available at www.sitecenters.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211911432/en/

For additional information:

Gerry Morgan, EVP and Chief Financial Officer

216-755-5500

KEYWORDS: Ohio United States North America

INDUSTRY KEYWORDS: Professional Services Retail Other Retail Commercial Building & Real Estate Finance Construction & Property REIT

MEDIA:

Logo

Posted on February 11, 2026 4:09 pm
Angel Oak Mortgage REIT, Inc. Sets Date for Fourth Quarter and Full Year 2025 Earnings Release and Conference Call

Angel Oak Mortgage REIT, Inc. Sets Date for Fourth Quarter and Full Year 2025 Earnings Release and Conference Call

ATLANTA–(BUSINESS WIRE)–Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”),a leading real estate finance company focused on acquiring and investing in non-QM loans and other mortgage-related assets in the U.S. mortgage market, announced today that the Company will release its fourth quarter and full year 2025 financial results before the market opens on Wednesday, February 25, 2026. A conference call will be held that day at 8:30 a.m. Eastern Time.

Webcast:

A webcast of the conference call will be available on the Investors section of the Company’s website at www.angeloakreit.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

To participate in the conference call, dial one of the following numbers at least 15 minutes prior to the start time:

Domestic: 1-844-826-3033

International: 1-412-317-5185

For the conference call playback (which can be accessed through March 11, 2026), dial one of the following numbers:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Pass code: 10205856

About Angel Oak Mortgage REIT, Inc.

Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211587596/en/

Investors:

[email protected]

855-502-3920

IR Agency Contact:

Nick Teves or Joseph Caminiti, Alpha IR Group

312-445-2870

[email protected]

Company Contact:

KC Kelleher, Head of Corporate Finance & Investor Relations

404-528-2684

[email protected]

KEYWORDS: United States North America District of Columbia

INDUSTRY KEYWORDS: REIT Finance Professional Services Residential Building & Real Estate Construction & Property

MEDIA:

Posted on February 11, 2026 4:09 pm
Arcus Biosciences to Host Conference Call to Discuss Fourth-Quarter and Full-Year 2025 Financial Results and Pipeline Updates

Arcus Biosciences to Host Conference Call to Discuss Fourth-Quarter and Full-Year 2025 Financial Results and Pipeline Updates

HAYWARD, Calif.–(BUSINESS WIRE)–
Arcus Biosciences (NYSE:RCUS), a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules and combination therapies for patients with cancer and inflammatory and autoimmune diseases, announced that its management team will host a conference call and webcast on Wednesday, February 25^th, 2026 at 1:30 PM PT / 4:30 PM ET to discuss details of the Company’s financial results and pipeline update for the quarter and year ended December 31^st, 2025.

Investors interested in listening to the conference call may do so by dialing +1 (646) 844-6383 (local) or +1 (833) 470-1428 (toll-free), using Access Code: 190500. Participants may also register for the call online using the following link: https://events.q4inc.com/attendee/640976415. To access the live webcast and accompanying slide presentation, please visit the “Investors & Media” section of the Arcus Biosciences website at www.arcusbio.com. A replay of the webcast will be available following the live event.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules for the treatment of cancer and inflammatory and autoimmune diseases. In partnership with industry collaborators, patients and physicians around the world, Arcus is expediting the development of its late-stage portfolio of first- and/or best-in-class medicines against well-characterized biological targets and pathways and studying novel, biology-driven combinations that have the potential to help people with cancer live longer. Founded in 2015, the company has advanced multiple investigational medicines into registrational clinical trials including casdatifan, a HIF-2a inhibitor for clear cell renal cell carcinoma, and quemliclustat, a small-molecule CD73 inhibitor for pancreatic cancer. For more information about Arcus Biosciences’ clinical and preclinical programs, please visit www.arcusbio.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211207137/en/

Investor Inquiries

Pia Eaves

VP of Investor Relations & Strategy

(617) 459-2006

[email protected]

Media Inquiries

Holli Kolkey

VP of Corporate Communications

(650) 922-1269

[email protected]

Maryam Bassiri

AD, Corporate Communications

(510) 406-8520

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Oncology Health Clinical Trials Research Science Pharmaceutical Biotechnology

MEDIA:

Posted on February 11, 2026 4:09 pm
AbCellera to Present at Upcoming Investor Conferences in March and April 2026

AbCellera to Present at Upcoming Investor Conferences in March and April 2026

VANCOUVER, British Columbia–(BUSINESS WIRE)–AbCellera (Nasdaq: ABCL) today announced that the Company will present at the following investor conferences:

TD Cowen 46th Annual Health Care Conference, March 4, 2026

KeyBanc Capital Markets Healthcare Forum, March 17, 2026

Bloom Burton & Co. Healthcare Investor Conference, April 21-22, 2026

A live audio webcast of each presentation may be accessed through a link that will be posted on AbCellera’s Investor Relations website closer to date. A replay will be available through the same link following the presentation.

About AbCellera Biologics Inc.

AbCellera (Nasdaq: ABCL) is a clinical-stage biotechnology company focused on discovering and developing antibody-based medicines in the areas of endocrinology, women’s health, immunology, and oncology. For more information, please visit www.abcellera.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260210650979/en/

Inquiries

Media: Tiffany Chiu; [email protected], +1(236)521-6774

Partnering: Murray McCutcheon, Ph.D.; [email protected], +1(604)559-9005

Investor Relations: Peter Ahn; [email protected], +1(778)729-9116

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Biotechnology Health Pharmaceutical Clinical Trials Oncology

MEDIA:

Logo

Posted on February 11, 2026 4:08 pm
Phreesia CEO Chaim Indig Named to The Software Report’s Top 50 CEOs of 2025

Phreesia CEO Chaim Indig Named to The Software Report’s Top 50 CEOs of 2025

ALL-REMOTE COMPANY/WILMINGTON, Del.–(BUSINESS WIRE)–
Phreesia is pleased to announce that Chaim Indig, CEO and co-founder of Phreesia, has been named to The Software Report’s Top 50 CEOs of 2025. This marks the third time Indig has received this recognition.

The annual award honors leaders of high-performing software companies who have demonstrated success in delivering value to customers and leading strong, mission-driven organizations.

The 2025 honorees were selected based on nominations from colleagues, peers and leaders across the software industry. Nominees were evaluated on demonstrated leadership, measurable contributions to their field, and the sustained performance, growth and impact of the organizations they lead.

Since co-founding Phreesia in 2005, Indig has helped transform the healthcare experience for patients, providers and staff. Under his leadership, Phreesia has grown into a publicly traded SaaS company supporting more than 4,400 healthcare organizations that use the company’s platform of solutions to improve efficiency, increase revenue, address gaps in care and enhance the patient experience.

“I’m truly honored to receive this recognition,” said Indig. “To me, it’s a testament to our team’s tireless work to support healthcare organizations and their patients, and to achieve our mission of making care easier every day.”

Indig was also recently recognized as a Top Executive of 2025 by TheHealthcare Technology Report, and Phreesia was named to The Software Report’s Top 50 Software Companies of 2025.

For more information on Phreesia, visit www.phreesia.com.

About Phreesia

Phreesia is the trusted leader in patient activation, giving healthcare providers, life sciences companies and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled approximately 170 million patient visits in 2024—1 in 7 visits across the U.S.—scale that we believe allows us to make meaningful impact. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives efficiency and improves healthcare outcomes. To learn more, visit phreesia.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211031565/en/

Media Contact:

Jason Rost

[email protected]

613-809-8136

KEYWORDS: Delaware United States North America

INDUSTRY KEYWORDS: Software Human Resources Public Relations/Investor Relations General Health Health Communications Professional Services Technology

MEDIA:

Logo

Posted on February 11, 2026 4:08 pm
Seagate to Participate in Upcoming Investor Events

Seagate to Participate in Upcoming Investor Events

SINGAPORE–(BUSINESS WIRE)–
Seagate Technology Holdings plc (NASDAQ: STX), a leading innovator of mass-capacity data storage, announced that management is scheduled to participate in the following investor events:

Event:

Bernstein’s 4^th Annual TMT Forum on Wednesday, February 25, 2026

Details:

Presentation at 11:00 AM PT / 2:00 PM ET

Event:

Morgan Stanley Technology, Media & Telecom Conference on Tuesday, March 3, 2026

Details:

Presentation at 10:45 AM PT / 1:45 PM ET

Event:

Loop Capital Markets 7^th Annual Investor Conference on Tuesday, March 10, 2026

Details:

Hosting investor meetings

Event:

Cantor Global Technology & Industrials Growth Conference on Wednesday, March 11, 2026

Details:

Hosting investor meetings

Management will be hosting investor meetings at these conferences.

The live webcast can be accessed online at Seagate’s Investor Relations website at investors.seagate.com.

A replay of the webcast will be available for at least 30 days following the event.

About Seagate Technology

Seagate Technology is a leading innovator of mass-capacity data storage. We create breakthrough technology so you can confidently store your data and easily unlock its value. Founded over 45 years ago, Seagate has shipped over four billion terabytes of data capacity and offers a full portfolio of storage devices, systems, and services from edge to cloud. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.

©2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, Mozaic 3+, Exos, and the Spiral logo are trademarks or registered trademarks of Seagate Technology LLC in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners. When referring to drive capacity, one gigabyte, or GB, equals one billion bytes, one terabyte, or TB, equals one trillion bytes, and one exabyte, or EB, equals one quintillion bytes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211177965/en/

Media Contact:

Karin Taylor (408) 772-8279

[email protected]

Investor Relations Contact:

Shanye Hudson, (510) 661-1600

[email protected]

KEYWORDS: Singapore Southeast Asia Asia Pacific

INDUSTRY KEYWORDS: Telecommunications Software Networks Internet Data Management Technology VoIP Security

MEDIA:

Logo

Posted on February 11, 2026 4:07 pm
NETSTREIT Corp. Announces Launch of Public Offering of Common Stock

NETSTREIT Corp. Announces Launch of Public Offering of Common Stock

DALLAS–(BUSINESS WIRE)–
NETSTREIT Corp. (the “Company”) announced today that it has commenced a public offering of 8,750,000 shares of its common stock in connection with the forward sale agreements described below, which is subject to market and other conditions. In connection with the offering, the Company also intends to grant the underwriters a 30-day option to purchase up to an additional 1,312,500 shares of common stock.

Wells Fargo Securities and BofA Securities are acting as joint book-running managers for the offering.

The Company expects to enter into forward sale agreements with affiliates of Wells Fargo Securities and BofA Securities (the “forward purchasers”) with respect to 8,750,000 shares of its common stock (or an aggregate of 10,062,500 shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 8,750,000 shares of the common stock that will be delivered in this offering (or an aggregate of 10,062,500 shares if the underwriters exercise their option to purchase additional shares in full). Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, the Company intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by the Company within approximately 12 months from the date of the prospectus supplement relating to the offering, an aggregate of 8,750,000 shares of its common stock (or an aggregate of 10,062,500 shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which will be the public offering price, less underwriting discounts and commissions, and will be subject to certain adjustments as provided in the forward sale agreements.

The Company initially will not receive any proceeds from the sale of shares of its common stock by the forward purchasers. The Company expects to contribute the net proceeds, if any, it receives upon the future settlement of the forward sale agreements to its operating partnership in exchange for common units of limited partnership in the operating partnership and the operating partnership intends to use the net proceeds for general corporate purposes, which may include the repayment of amounts outstanding from time to time under the Company’s revolving credit facility, and funding of acquisitions of properties and development activities in the Company’s pipeline. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon pricing the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding requirements described above have occurred.

The offering is being made pursuant to the Company’s shelf registration statement on Form S-3, which became automatically effective upon filing with the U.S. Securities and Exchange Commission on August 12, 2024. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, by contacting Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to [email protected] and BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 or by email at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About NETSTREIT Corp.

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements include statements regarding the proposed public offering and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “likely,” “will,” “believes,” “seeks,” “estimates,” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including statements regarding the size, timing, and expected use of proceeds of the proposed offering, are based on the Company’s current expectations and assumptions regarding capital markets conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include financial market and regulatory conditions, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s preliminary prospectus supplement and accompanying prospectus and in the Company’s annual and quarterly reports and other documents filed with the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211058211/en/

Investor Relations

[email protected]

972-694-3066

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Professional Services Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property REIT

MEDIA:

Logo

Posted on February 11, 2026 4:06 pm
Confluent Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Confluent Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Fourth quarter subscription revenue of $302 million, up 20% year over year; Confluent Cloud revenue of $169 million, up 23% year over year

Fiscal year 2025 subscription revenue of $1,120 million, up 21% year over year; Confluent Cloud revenue of $624 million, up 27% year over year

1,521 customers with $100,000 or greater in ARR, up 10% year over year

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Confluent, Inc. (NASDAQ: CFLT),the data streaming pioneer, today announced financial results for its fourth quarter and fiscal year 2025, ended December 31, 2025.

“Confluent delivered a strong fourth quarter to close the year, including 23% year over year growth in Confluent Cloud,” said Jay Kreps, co-founder and CEO, Confluent. “Our AI product advancements and continued innovation across our core offerings further strengthened our category leadership this quarter. We remain focused on delivering a complete data streaming platform to support our customers’ most mission-critical workloads, including emerging agentic AI applications.”

“We are pleased to finish the year strong, highlighted by solid top-line growth and continued margin expansion at scale,” said Rohan Sivaram, CFO, Confluent. “Our results reinforce the strategic value of our complete data streaming platform, and we remain focused on executing our diversified growth strategy across core streaming, DSP, AI, and the partner ecosystem.”

Fourth Quarter 2025 Financial Highlights

(In millions, except per share data and percentages)

Q4 2025

Q4 2024

Y/Y Change

Subscription Revenue

$301.6

$250.6

20%

Total Revenue

$314.8

$261.2

21%

GAAP Operating Loss

$(99.2)

$(105.8)

$6.6

Non-GAAP Operating Income

$27.6

$13.6

$14.0

GAAP Operating Margin

(31.5%)

(40.5%)

9.0 pts

Non-GAAP Operating Margin

8.8%

5.2%

3.6 pts

GAAP Net Loss Per Share

$(0.23)

$(0.27)

$0.04

Non-GAAP Net Income Per Diluted Share

$0.12

$0.09

$0.03

Net Cash Provided by Operating Activities

$42.1

$35.2

$6.9

Adjusted Free Cash Flow

$35.5

$29.1

$6.4

Fiscal Year 2025 Financial Highlights

(In millions, except per share data and percentages)

FY 2025

FY 2024

Y/Y Change

Subscription Revenue

$1,119.7

$922.1

21%

Total Revenue

$1,166.7

$963.6

21%

GAAP Operating Loss

$(380.1)

$(419.1)

$39.0

Non-GAAP Operating Income

$86.1

$27.5

$58.6

GAAP Operating Margin

(32.6%)

(43.5%)

10.9 pts

Non-GAAP Operating Margin

7.4%

2.9%

4.5 pts

GAAP Net Loss Per Share

$(0.86)

$(1.07)

$0.21

Non-GAAP Net Income Per Diluted Share

$0.42

$0.29

$0.13

Net Cash Provided by Operating Activities

$64.3

$33.5

$30.8

Adjusted Free Cash Flow

$76.0

$9.5

$66.5

Proposed Merger with International Business Machines

As announced on December 8, 2025, Confluent and International Business Machines Corporation (“IBM”) (NYSE: IBM) have entered into a definitive agreement under which IBM will acquire Confluent for $31.00 per share in cash, representing an enterprise value of $11 billion. The transaction is expected to close by the middle of 2026, subject to approval by Confluent shareholders, regulatory approvals, and other customary closing conditions.

In light of the pending transaction with IBM, Confluent will not be holding a conference call to discuss fourth quarter 2025 financial results or providing financial guidance.

Confluent uses its investor relations website and may use its X (Twitter), LinkedIn, and Facebook accounts as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding (i) our focus on delivering a complete data streaming platform, (ii) our market and category leadership position, (iii) execution of our growth strategy, (iv) our overall future prospects, and (v) the proposed merger with IBM, including the expected timing of the closing. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “seek,” “plan,” “project,” “target,” “looking ahead,” “look to,” “move into,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements represent our current beliefs, estimates and assumptions only as of the date of this press release and information contained in this press release should not be relied upon as representing our estimates as of any subsequent date. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) our limited operating history, including in uncertain macroeconomic environments, (ii) our ability to sustain and manage our recent growth, (iii) our ability to increase consumption of our offerings, (iv) our ability to successfully execute our go-to-market strategy and initiatives, (v) our ability to attract new customers and successfully ramp their consumption of our offerings, as well as retain and sell additional features and services to our existing customers, (vi) uncertain macroeconomic conditions, (vii) the estimated addressable market opportunity for our Data Streaming Platform, and our ability to capture our share of that market opportunity, (viii) our ability to compete effectively in an increasingly competitive market, (ix) our ability to attract, ramp, and retain highly qualified personnel, and the impacts of attrition and related challenges, (x) breaches in our security measures, intentional or accidental cybersecurity incidents or unauthorized access to our platform, our data, or our customers’ or other users’ personal data, (xi) our reliance on third-party cloud-based infrastructure to host Confluent Cloud and our other cloud-based offerings, (xii) our ability to accurately forecast our future performance, business and growth, (xiii) the possibility that the conditions to the closing of the proposed merger with IBM are not satisfied, including the risk that required approvals from Confluent’s stockholders or required regulatory approvals are not obtained, on a timely basis or at all, (xiv) the occurrence of any event, change or other circumstance that could give rise to a right to terminate the proposed merger with IBM, including circumstances requiring Confluent to pay a termination fee, and (xv) uncertainty as to timing of completion of the proposed merger and the ability of each party to complete the proposed merger. These risks are not exhaustive. Further information on these and other risks that could affect Confluent’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, and our future reports that we may file from time to time with the SEC. Additional information will be made available in our Annual Report on Form 10-K for the year ended December 31, 2025 that will be filed with the SEC, which should be read in conjunction with this press release and the financial results included herein. Confluent assumes no obligation to, and does not currently intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, and general and administrative), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow, free cash flow margin, adjusted free cash flow, and adjusted free cash flow margin. We use these non-GAAP financial measures and other key metrics internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business or results of operations. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies, including companies in our industry, may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Further, free cash flow and adjusted free cash flow are not substitutes for cash used in operating activities. The utility of free cash flow and adjusted free cash flow are limited as such measures do not reflect our future contractual commitments and do not represent the total increase or decrease in our cash balance for any given period. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, as presented below.

We define non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, and general and administrative), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per share as the respective GAAP measures, adjusted for, as applicable, stock-based compensation-related charges which include stock-based compensation expense, employer taxes on employee stock transactions and amortization of stock-based compensation capitalized in internal-use software; amortization of acquired intangibles; acquisition-related expenses; amortization of debt issuance costs; and income tax effects associated with these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions and income tax benefit from the release of a valuation allowance on certain deferred tax assets. Non-GAAP gross margin and non-GAAP operating margin are defined as non-GAAP gross profit and non-GAAP operating income as a percentage of revenue, respectively.

We define free cash flow as net cash provided by (used in) operating activities less capitalized internal-use software costs and capital expenditures and free cash flow margin as free cash flow as a percentage of revenue. We define adjusted free cash flow as free cash flow excluding the non-recurring impact from a change to timing of certain cash compensation payments and adjusted free cash flow margin as adjusted free cash flow as a percentage of revenue. We believe that free cash flow, free cash flow margin, adjusted free cash flow, and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the performance of core operations and future ability to generate cash that can be used for strategic opportunities or investing in our business.

Definition

Customers with $100,000 or greater in annual recurring revenue (“ARR”) represent the number of customers that contributed $100,000 or more in ARR as of period end. We define ARR as (1) with respect to Confluent Platform and Confluent Private Cloud customers, the amount of revenue to which our customers are contractually committed over the following 12 months assuming no increases or reductions in their subscriptions, and (2) with respect to Confluent Cloud and Confluent WarpStream customers, the amount of revenue that we expect to recognize from such customers over the following 12 months, calculated by annualizing actual consumption of Confluent Cloud and Confluent WarpStream in the last three months of the applicable period, assuming no increases or reductions in usage rate. Services arrangements are excluded from the calculation of ARR. For purposes of determining our customer count, we treat all affiliated entities with the same parent organization as a single customer and include pay-as-you-go customers. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

About Confluent

Confluent is the data streaming platform that is pioneering a fundamentally new category of data infrastructure that sets data in motion. Confluent’s cloud-native offering is the foundational platform for data in motion – designed to be the intelligent connective tissue enabling real-time data, from multiple sources, to constantly stream across the organization. With Confluent, organizations can meet the new business imperative of delivering rich, digital front-end customer experiences and transitioning to sophisticated, real-time, software-driven backend operations.

Confluent, Inc.

Consolidated Balance Sheets

(in thousands)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents
$

347,210

$

385,980

Marketable securities

1,706,762

1,524,583

Accounts receivable, net

390,752

314,306

Deferred contract acquisition costs

54,545

47,271

Prepaid expenses and other current assets

107,744

79,179

Total current assets

2,607,013

2,351,319

Property and equipment, net

93,179

78,680

Operating lease right-of-use assets

4,936

8,818

Goodwill

164,406

164,406

Intangible assets, net

6,054

7,924

Deferred contract acquisition costs, non-current

77,737

71,468

Other assets, non-current

31,945

12,296

Total assets
$

2,985,270

$

2,694,911

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable
$

20,708

$

7,531

Accrued expenses and other liabilities

182,735

194,250

Operating lease liabilities

8,178

8,694

Deferred revenue

468,984

378,771

Total current liabilities

680,605

589,246

Operating lease liabilities, non-current

1,205

9,138

Deferred revenue, non-current

29,655

30,430

Convertible senior notes, net

1,095,988

1,092,149

Other liabilities, non-current

8,678

12,722

Total liabilities

1,816,131

1,733,685

Stockholders’ equity:

Preferred stock

—

—

Class A common stock

3

2

Class B common stock

1

1

Additional paid-in capital

3,447,970

2,953,080

Accumulated other comprehensive income (loss)

5,656

(2,641

)

Accumulated deficit

(2,284,491

)

(1,989,216

)

Total stockholders’ equity

1,169,139

961,226

Total liabilities and stockholders’ equity
$

2,985,270

$

2,694,911

Confluent, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended December 31, Year Ended December 31,

2025

2024

2025

2024

Revenue:

Subscription
$

301,645

$

250,636

$

1,119,724

$

922,091

Services

13,174

10,584

47,024

41,551

Total revenue

314,819

261,220

1,166,748

963,642

Cost of revenue:

Subscription⁽¹⁾

65,423

55,220

245,355

208,600

Services⁽¹⁾

14,239

12,345

54,554

48,870

Total cost of revenue

79,662

67,565

299,909

257,470

Gross profit

235,157

193,655

866,839

706,172

Operating expenses:

Research and development⁽¹⁾

121,926

114,886

481,706

421,237

Sales and marketing⁽¹⁾

159,807

145,194

592,519

547,379

General and administrative⁽¹⁾

52,598

39,359

172,716

156,703

Total operating expenses

334,331

299,439

1,246,941

1,125,319

Operating loss

(99,174

)

(105,784

)

(380,102

)

(419,147

)

Other income, net

19,534

19,288

79,414

84,486

Loss before income taxes

(79,640

)

(86,496

)

(300,688

)

(334,661

)

(Benefit from) provision for income taxes

(393

)

1,558

(5,413

)

10,404

Net loss
$

(79,247

)

$

(88,054

)

$

(295,275

)

$

(345,065

)

Net loss per share, basic and diluted
$

(0.23

)

$

(0.27

)

$

(0.86

)

$

(1.07

)

Weighted-average shares used to compute net loss per share, basic and diluted

351,880

329,407

343,800

321,863

⁽¹⁾

Includes stock-based compensation-related charges as follows:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Cost of revenue – subscription
$

10,443

$

9,242

$

39,085

$

35,438

Cost of revenue – services

1,318

2,384

6,965

9,781

Research and development

50,692

45,938

193,345

171,487

Sales and marketing

30,476

35,178

127,654

139,929

General and administrative

13,749

14,837

54,959

60,466

Total stock-based compensation-related charges
$

106,678

$

107,579

$

422,008

$

417,101

Confluent, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss
$

(79,247

)

$

(88,054

)

$

(295,275

)

$

(345,065

)

Adjustments to reconcile net loss to cash provided by operating activities:

Depreciation and amortization

7,786

6,234

29,556

22,089

Net accretion of discounts on marketable securities

(4,441

)

(8,205

)

(22,300

)

(37,766

)

Amortization of debt issuance costs

969

966

3,839

3,836

Amortization of deferred contract acquisition costs

14,848

14,213

58,310

54,258

Non-cash operating lease costs

1,090

1,172

4,300

3,966

Stock-based compensation, net of amounts capitalized

101,625

102,924

397,325

395,660

Deferred income taxes

(1,848

)

46

(18,699

)

277

Other

1,100

1,675

5,686

3,370

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

Accounts receivable

(35,102

)

(36,327

)

(79,718

)

(86,562

)

Deferred contract acquisition costs

(26,768

)

(15,974

)

(71,853

)

(53,246

)

Prepaid expenses and other assets

4,292

1,205

(25,394

)

844

Accounts payable

8,893

(8,159

)

13,466

127

Accrued expenses and other liabilities

27,861

32,861

(15,512

)

25,639

Operating lease liabilities

(2,321

)

(4,191

)

(8,894

)

(10,140

)

Deferred revenue

23,375

34,825

89,437

56,173

Net cash provided by operating activities

42,112

35,211

64,274

33,460

CASH FLOWS FROM INVESTING ACTIVITIES

Capitalization of internal-use software costs

(6,152

)

(5,420

)

(22,558

)

(21,404

)

Purchases of marketable securities

(352,708

)

(367,357

)

(1,638,898

)

(1,539,716

)

Sales of marketable securities

—

2,567

6,144

15,311

Maturities of marketable securities

341,540

381,127

1,474,654

1,591,164

Purchases of investments in privately-held companies

—

—

(750

)

(2,250

)

Purchases of property and equipment

(442

)

(669

)

(3,597

)

(2,567

)

Cash paid for business combinations, net of cash acquired

—

—

—

(115,516

)

Net cash (used in) provided by investing activities

(17,762

)

10,248

(185,005

)

(74,978

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of common stock upon exercise of vested options

24,551

19,504

57,260

55,836

Proceeds from issuance of common stock under employee stock purchase plan

—

—

23,926

23,970

Net cash provided by financing activities

24,551

19,504

81,186

79,806

Effect of exchange rate changes on cash and cash equivalents

(228

)

(1,589

)

775

(2,069

)

Net increase (decrease) in cash and cash equivalents

48,673

63,374

(38,770

)

36,219

Cash and cash equivalents at beginning of period

298,537

322,606

385,980

349,761

Cash and cash equivalents at end of period
$

347,210

$

385,980

$

347,210

$

385,980

Confluent, Inc.

Reconciliation of GAAP Measures to Non-GAAP Measures

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Reconciliation of GAAP total gross profit to non-GAAP total gross profit:

Total gross profit on a GAAP basis
$

235,157

$

193,655

$

866,839

$

706,172

Total gross margin on a GAAP basis

74.7

%

74.1

%

74.3

%

73.3

%

Add: Stock-based compensation-related charges

11,761

11,626

46,050

45,219

Add: Amortization of acquired intangibles

471

780

1,870

2,368

Non-GAAP total gross profit
$

247,389

$

206,061

$

914,759

$

753,759

Non-GAAP total gross margin

78.6

%

78.9

%

78.4

%

78.2

%

Reconciliation of GAAP operating expenses to non-GAAP operating expenses:

Research and development operating expense on a GAAP basis
$

121,926

$

114,886

$

481,706

$

421,237

Research and development operating expense as a percentage of total revenue on a GAAP basis

38.7

%

44.0

%

41.3

%

43.7

%

Less: Stock-based compensation-related charges

50,692

45,938

193,345

171,487

Less: Acquisition-related expenses

7,115

10,046

29,797

24,750

Non-GAAP research and development operating expense
$

64,119

$

58,902

$

258,564

$

225,000

Non-GAAP research and development operating expense as a percentage of total revenue

20.4

%

22.5

%

22.2

%

23.3

%

Sales and marketing operating expense on a GAAP basis
$

159,807

$

145,194

$

592,519

$

547,379

Sales and marketing operating expense as a percentage of total revenue on a GAAP basis

50.8

%

55.6

%

50.8

%

56.8

%

Less: Stock-based compensation-related charges

30,476

35,178

127,654

139,929

Less: Acquisition-related expenses

—

717

—

717

Non-GAAP sales and marketing operating expense
$

129,331

$

109,299

$

464,865

$

406,733

Non-GAAP sales and marketing operating expense as a percentage of total revenue

41.1

%

41.8

%

39.8

%

42.2

%

General and administrative operating expense on a GAAP basis
$

52,598

$

39,359

$

172,716

$

156,703

General and administrative operating expense as a percentage of total revenue on a GAAP basis

16.7

%

15.1

%

14.8

%

16.3

%

Less: Stock-based compensation-related charges

13,749

14,837

54,959

60,466

Less: Acquisition-related expenses

12,514

302

12,528

1,702

Non-GAAP general and administrative operating expense
$

26,335

$

24,220

$

105,229

$

94,535

Non-GAAP general and administrative operating expense as a percentage of total revenue

8.4

%

9.3

%

9.0

%

9.8

%

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Reconciliation of GAAP operating loss to non-GAAP operating income:

Operating loss on a GAAP basis
$

(99,174

)

$

(105,784

)

$

(380,102

)

$

(419,147

)

GAAP operating margin

(31.5

%)

(40.5

%)

(32.6

%)

(43.5

%)

Add: Stock-based compensation-related charges

106,678

107,579

422,008

417,101

Add: Amortization of acquired intangibles

471

780

1,870

2,368

Add: Acquisition-related expenses

19,629

11,065

42,325

27,169

Non-GAAP operating income
$

27,604

$

13,640

$

86,101

$

27,491

Non-GAAP operating margin

8.8

%

5.2

%

7.4

%

2.9

%

Reconciliation of GAAP net loss to non-GAAP net income:

Net loss on a GAAP basis
$

(79,247

)

$

(88,054

)

$

(295,275

)

$

(345,065

)

Add: Stock-based compensation-related charges

106,678

107,579

422,008

417,101

Add: Amortization of acquired intangibles

471

780

1,870

2,368

Add: Acquisition-related expenses

19,629

11,065

42,325

27,169

Add: Amortization of debt issuance costs

969

966

3,839

3,836

Add: Income tax effects and adjustments⁽¹⁾

(2,720

)

(1,272

)

(18,291

)

(3,236

)

Non-GAAP net income
$

45,780

$

31,064

$

156,476

$

102,173

Non-GAAP net income per share, basic
$

0.13

$

0.09

$

0.46

$

0.32

Non-GAAP net income per share, diluted
$

0.12

$

0.09

$

0.42

$

0.29

Weighted-average shares used to compute non-GAAP net income per share, basic

351,880

329,407

343,800

321,863

Weighted-average shares used to compute non-GAAP net income per share, diluted

378,754

362,150

371,160

355,067

⁽¹⁾

Income tax effects and adjustments for the year ended December 31, 2025 includes an adjustment for the income tax benefit from the release of a valuation allowance on certain deferred tax assets.

The following table presents a reconciliation of free cash flow and adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP measure, as well as free cash flow margin and adjusted free cash flow margin to net cash provided by operating activities as a percentage of total revenue, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands, except percentages):

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Net cash provided by operating activities
$

42,112

$

35,211

$

64,274

$

33,460

Capitalized internal-use software costs

(6,152

)

(5,420

)

(22,558

)

(21,404

)

Capital expenditures

(442

)

(669

)

(3,597

)

(2,567

)

Free cash flow
$

35,518

$

29,122

$

38,119

$

9,489

Impact from compensation payments adjustment⁽¹⁾

—

—

37,930

—

Adjusted free cash flow
$

35,518

$

29,122

$

76,049

$

9,489

Net cash provided by operating activities as a percentage of total revenue

13.4

%

13.5

%

5.5

%

3.5

%

Free cash flow margin

11.3

%

11.1

%

3.3

%

1.0

%

Adjusted free cash flow margin

11.3

%

11.1

%

6.5

%

1.0

%

Net cash (used in) provided by investing activities
$

(17,762

)

$

10,248

$

(185,005

)

$

(74,978

)

Net cash provided by financing activities
$

24,551

$

19,504

$

81,186

$

79,806

⁽¹⁾

Represents an adjustment to reflect the non-recurring impact in the first quarter of 2025 from the change to timing of cash compensation payments for most of our non go-to-market employees implemented at the start of 2025.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260210008002/en/

Investor Contact

Faheem Khan

[email protected]

Media Contact

Justin Dorff

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Data Management Apps/Applications Technology Software Networks Internet

MEDIA:

Logo

Posted on February 11, 2026 4:05 pm
Outset Medical Reports Fourth Quarter and Full Year 2025 Financial Results

SAN JOSE, Feb. 11, 2026 (GLOBE NEWSWIRE) — Outset Medical, Inc. (Nasdaq: OM), a medical technology company pioneering a first-of-its-kind technology to improve clinical outcomes in dialysis with less cost and complexity, today reported financial results for the fourth quarter and year ended December 31, 2025.

Fourth Quarter, Year-End and Recent Highlights

Net revenue totaled $28.9 million in the fourth quarter, bringing revenue in 2025 to $119.5 million, a 5% increase over $113.7 million in 2024.

Recurring revenue consisting of Tablo consumables and services was $22.5 million in the fourth quarter and grew 6% in 2025 to $88.7 million compared to $83.9 million in 2024.

Gross margin expanded by nearly 600 basis points in the fourth quarter to 42.4% (42.9% on a non-GAAP basis). Gross margin for the year of 39.1% (39.6% on a non-GAAP basis) expanded more than 500 basis points from 33.9% in 2024.

Year-end cash, including restricted cash, cash equivalents and short-term investments, totaled $173 million. Net cash used in operations in 2025 was $46 million compared to $116 million in 2024.

Received clearance from the U.S. Food and Drug Administration for the next-generation Tablo platform, designed for enterprise-level cybersecurity, reliability and connectivity, which is expected to launch in the second quarter.

“We enter 2026 standing on a strong foundation for growth, well capitalized, and with a highly differentiated platform to help healthcare providers transform their clinical, operational and financial outcomes by insourcing dialysis with Outset,” said Leslie Trigg, Chair and Chief Executive Officer.

Fourth Quarter 2025 Financial Results

Revenue for the fourth quarter was $28.9 million, a decrease of 2% compared to $29.5 million in the fourth quarter of 2024. Product revenue was $19.9 million as compared to $21 million in the fourth quarter of 2024. Service and other revenue of $9 million increased 6% compared to $8.5 million in the fourth quarter of 2024. Recurring revenue from the sale of Tablo consumables and services was $22.5 million as compared to $23.7 million in the prior year period.

Gross profit of $12.2 million increased 14% from $10.7 million in the fourth quarter of 2024. Gross margin was 42.4%, compared to 36.5% in the fourth quarter of 2024. On a non-GAAP basis, gross margin reached 42.9%, as compared to 38.6% in the fourth quarter of 2024. Product gross profit was $10.1 million, compared to $9.2 million in the fourth quarter of 2024. Product gross margin reached 50.7%, compared to 44% in the fourth quarter of 2024. Service and other gross profit was $2.2 million, compared to $1.5 million in the fourth quarter of 2024. Service and other gross margin was 24%, compared to 17.8% in the fourth quarter of 2024.

Operating expenses of $29.9 million declined 8% from the prior year period as a result of reductions in spending during the year intended to streamline operations and accelerate the company’s path to profitability. Research and development (R&D) expenses were $5.1 million, sales and marketing (S&M) expenses were $12.9 million, and general and administrative (G&A) expenses were $11.9 million. This compared to operating expenses of $32.6 million in the fourth quarter of 2024, including R&D expenses of $7.9 million, S&M expenses of $15.5 million, and G&A expenses of $9.3 million.

Excluding stock-based compensation expense, severance and related charges, and litigation charges, non-GAAP operating expenses were $25.7 million, including R&D expenses of $4.1 million, S&M expenses of $12.4 million, and G&A expenses of $9.2 million.

Net loss was $19.5 million compared to a net loss of $25.6 million for the same period in 2024. On a non-GAAP basis, net loss was $15.1 million compared to a non-GAAP net loss of $19.3 million for the same period in 2024.

Total cash, including restricted cash, cash equivalents and short-term investments, was $173 million as of December 31, 2025.

Full Year 2025 Financial Results

Revenue for 2025 was $119.5 million, an increase of 5% as compared to $113.7 million in 2024. Product revenue was $84.8 million, representing an increase of 5% compared to $81 million in 2024. Service and other revenue was $34.7 million, an increase of 6% compared to $32.7 million in 2024. Recurring revenue grew 6% to $88.7 million compared to $83.9 million in 2024.

Total gross profit was $46.8 million, compared to $38.6 million for 2024. Total gross margin was 39.1%, compared to 33.9% in 2024. On a non-GAAP basis, gross margin improved 4 percentage points to 39.6% from 35.6% in 2024. Product gross profit was $41 million, compared to $34.5 million in 2024. Product gross margin was 48.4%, compared to 42.6% in 2024. Service and other gross profit was $5.7 million, compared to a gross profit of $4 million in 2024. Service and other gross margin was 16.5%, compared to 12.3% in 2024.

Operating expenses were $113.5 million, including R&D expenses of $21.2 million, S&M expenses of $54.4 million, and G&A expenses of $37.9 million. This compared to operating expenses of $151.9 million, including R&D expenses of $38.4 million, S&M expenses of $70 million, and G&A expenses of $43.5 million in 2024.

Excluding stock-based compensation expense, severance and related charges, and litigation charges, non-GAAP operating expenses were $97.8 million, including R&D expenses of $17.8 million, S&M expenses of $51.3 million, and G&A expenses of $28.7 million.

Net loss was $81.7 million compared to a net loss of $128 million in 2024. On a non-GAAP basis, net loss was $65.4 million compared to a non-GAAP net loss of $94.8 million in 2024.

Full Year 2026 Financial Guidance

Outset provided 2026 revenue guidance of $125 million to $130 million, a 5% to 9% increase over $119.5 million in 2025, and non-GAAP gross margin guidance in the low to mid-40% range for the year.

Webcast and Conference Call Details

Outset will host a conference call today, February 11, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its fourth quarter and full year 2025 financial results. Those interested in listening to the conference call may do so by registering online. Once registered, participants will receive dial-in numbers and a unique pin to join the call. Participants are encouraged to register more than 15 minutes before the start of the call. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at https://investors.outsetmedical.com. The webcast will be archived on the website following the completion of the call.

Use of Non-GAAP Financial Measures

The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. As listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release, the Company’s GAAP financial measures include stock-based compensation expense, severance and related charges net of the reversal of compensation accruals for impacted employees, as well as litigation charges incurred outside of the ordinary course of business in connection with the stockholder class action and relative derivative lawsuits as disclosed in the Company’s latest annual and quarterly reports. Stock-based compensation is a non-cash expense, and severance and related charges arise outside the ordinary course of continuing operations and are not reflective of the Company’s current operating performance. In addition, litigation charges related to the above-described matters are excluded because they constitute non-routine litigation costs, arise outside of the ordinary course of the Company’s business, and are not indicative of its recurring operating results or underlying performance trends. As such, management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the Appendix A of this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, cash use, cash burn, cash position, profitability and outlook; statements about the sufficiency of the Company’s cash balances through cashflow breakeven; statements regarding the anticipated impacts and benefits of the Company’s cost reduction actions, initiatives to optimize the commercial organization and improve forecasting and order visibility, and restructurings; statements regarding anticipated customer orders or other business opportunities including the expected closing and timing thereof; statements regarding the Company’s overall business strategy, plans and objectives of management; statements regarding the anticipated launch and timing of product enhancements and new features, as well as new or expanded services, and the expected benefits, performance, and impact thereof; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo; continued execution of the Company’s initiatives designed to expand gross margins; the Company’s ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors (including changes in tariff or trade laws and policies) on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise.

About Outset Medical, Inc.

Outset is a medical technology company transforming the dialysis experience across the continuum of care with a first-of-its-kind technology. The Tablo® Hemodialysis System, FDA-cleared for use from hospital to home, is trusted by more than 1,000 U.S. healthcare facilities and has enabled millions of treatments delivered by thousands of nurses. Designed to reduce the cost and complexity of dialysis, Tablo combines water purification and on-demand dialysate production into a single, integrated system that connects seamlessly with Electronic Medical Record systems and a proprietary data analytics platform. This enterprise solution empowers providers to develop an in-house dialysis program where they are in control – enabling better operational, clinical, and financial outcomes. Outset is redefining what’s possible in kidney care through innovation, scale, and a relentless commitment to improving the lives of patients and the professionals who care for them. For more information, visit www.outsetmedical.com.

Investor Contact

Jim Mazzola
[email protected]

Outset Medical, Inc.
Condensed Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended Years Ended

December 31, December 31,

2025 2024 2025 2024

Revenue:

Product revenue $ 19,874 $ 21,006 $ 84,808 $ 80,977

Service and other revenue 9,000 8,461 34,668 32,712

Total revenue 28,874 29,467 119,476 113,689

Cost of revenue:

Cost of product revenue⁽²⁾ 9,803 11,769 43,765 46,449

Cost of service and other revenue 6,840 6,951 28,957 28,676

Total cost of revenue 16,643 18,720 72,722 75,125

Gross profit ⁽¹⁾ 12,231 10,747 46,754 38,564

Gross margin ⁽¹⁾ 42.4 % 36.5 % 39.1 % 33.9 %

Operating expenses:

Research and development ⁽²⁾ 5,054 7,889 21,235 38,397

Sales and marketing ⁽²⁾ 12,879 15,451 54,361 70,044

General and administrative⁽²⁾⁽³⁾ 11,926 9,267 37,864 43,498

Total operating expenses 29,859 32,607 113,460 151,939

Loss from operations (17,628 ) (21,860 ) (66,706 ) (113,375 )

Interest income and other income, net 1,673 2,043 7,408 9,761

Interest expense (3,441 ) (5,825 ) (13,952 ) (23,871 )

Loss on extinguishment of term loan — — (7,685 ) —

Loss before provision for income taxes (19,396 ) (25,642 ) (80,935 ) (127,485 )

Provision for income taxes 95 (4 ) 718 491

Net loss $ (19,491 ) $ (25,638 ) $ (81,653 ) $ (127,976 )

Net loss per share, basic and diluted $ (1.09 ) $ (7.29 ) $ (5.37 ) $ (36.96 )

Shares used in computing net loss per share, basic and diluted 17,817 3,516 15,211 3,463

⁽¹
⁾ Gross profit and gross margin by source consisted of the following:

Three Months Ended Years Ended

December 31, December 31,

2025 2024 2025 2024

Gross profit

Product revenue $ 10,071 $ 9,237 $ 41,043 $ 34,528

Service and other revenue 2,160 1,510 5,711 4,036

Total gross profit $ 12,231 $ 10,747 $ 46,754 $ 38,564

Gross margin

Product revenue 50.7 % 44.0 % 48.4 % 42.6 %

Service and other revenue 24.0 % 17.8 % 16.5 % 12.3 %

Total gross margin 42.4 % 36.5 % 39.1 % 33.9 %

⁽²
⁾ Includes stock-based compensation expense and severance and related charges, net as follows:

Three Months Ended Years Ended

Stock-based compensation expense December 31, December 31,

2025 2024 2025 2024

Cost of revenue $ 145 $ 280 $ 583 $ 1,372

Research and development 940 1,266 3,366 7,291

Sales and marketing 497 1,224 3,083 6,122

General and administrative 2,481 2,175 8,584 14,571

Total stock-based compensation expense $ 4,063 $ 4,945 $ 15,616 $ 29,356

Three Months Ended Years Ended

Severance and related charges, net December 31, December 31,

2025 2024* 2025 2024*

Cost of revenue $ — 317 $ — 518

Research and development — 161 34 1,124

Sales and marketing — 873 — 1,765

General and administrative — 20 (42 ) 390

Total severance and related charges, net $ — 1,371 $ (8 ) 3,797

* Net of adjustments to compensation accrual

⁽³
⁾ Includes non-ordinary course litigation charges related to stockholder class action and related derivative lawsuits as follows:

Three Months Ended Years Ended

Litigation charges December 31, December 31,

2025 2024 2025 2024

General and administrative $ 284 $ — $ 626 $ —

Total litigation charges $ 284 $ — $ 626 $ —

Outset Medical, Inc.

Condensed Balance Sheets

(in thousands, except per share amounts)

December 31, December 31,

2025 2024

(unaudited)

Assets

Current assets:

Cash and cash equivalents $ 35,006 $ 124,014

Short-term investments 133,940 34,671

Accounts receivable, net 28,329 35,619

Inventories 47,609 59,387

Prepaid expenses and other current assets 5,999 4,530

Total current assets 250,883 258,221

Restricted cash 3,829 3,329

Property and equipment, net 4,670 8,133

Operating lease right-of-use assets 4,797 3,940

Other assets 317 2,172

Total assets $ 264,496 $ 275,795

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable $ 554 $ 3,862

Accrued compensation and related benefits 10,735 16,821

Accrued expenses and other current liabilities 9,433 8,205

Accrued warranty liability 1,374 1,938

Deferred revenue, current 13,795 12,753

Operating lease liabilities, current 1,739 1,799

Total current liabilities 37,630 45,378

Accrued interest — 2,695

Deferred revenue 406 844

Operating lease liabilities 3,271 2,684

Term loans 96,237 197,375

Total liabilities 137,544 248,976

Commitments and contingencies

Stockholders’ equity:

Preferred Stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of December 31, 2025 and 2024 — —

Common stock, $0.001 par value; 300,000 shares authorized as of December 31, 2025 and 2024; 18,169 and 3,530 shares issued and outstanding as of December 31, 2025 and 2024, respectively 18 4

Additional paid-in capital 1,298,138 1,116,496

Accumulated other comprehensive income 172 42

Accumulated deficit (1,171,376 ) (1,089,723 )

Total stockholders’ equity 126,952 26,819

Total liabilities and stockholders’ equity $ 264,496 $ 275,795

Outset Medical, Inc.
Condensed Statements of Cash Flows

(in thousands)

(unaudited)

Years Ended December 31,

2025 2024

Net cash used in operating activities $ (46,327 ) $ (116,303 )

Net cash (used in) provided by investing activities (97,684 ) 103,938

Net cash provided by financing activities 55,503 67,870

Net (decrease) increase in cash, cash equivalents and restricted cash (88,508 ) 55,505

Cash, cash equivalents and restricted cash at beginning of the period 127,343 71,838

Cash, cash equivalents and restricted cash at end of the period ⁽¹⁾ $ 38,835 $ 127,343

⁽¹⁾ The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands):

December 31,

2025 2024

Cash and cash equivalents $ 35,006 $ 124,014

Restricted cash 3,829 3,329

Total cash, cash equivalents and restricted cash^* $ 38,835 $ 127,343

* The total cash, including restricted cash, cash equivalents and investment securities as of December 31, 2025 was $172.8 million; compared to $162.0 million as of December 31, 2024.

Appendix A

Outset Medical, Inc.
Results of Operations – Non-GAAP

(in thousands, except per share amounts) (unaudited)

Reconciliation between GAAP and non-GAAP net loss per share:

Three Months Ended Years Ended

December 31, December 31,

2025 2024 2025 2024

GAAP net loss per share, diluted $ (1.09 ) $ (7.29 ) $ (5.37 ) $ (36.96 )

Stock-based compensation expense 0.23 1.41 1.03 8.48

Severance and related charges, net — 0.39 — 1.10

Litigation charges 0.02 — 0.04 —

Non-GAAP net loss per share, diluted $ (0.84 ) $ (5.49 ) $ (4.30 ) $ (27.38 )

Reconciliation between GAAP and non-GAAP net loss:

Three Months Ended Years Ended

December 31, December 31,

2025 2024 2025 2024

GAAP net loss, diluted $ (19,491 ) $ (25,638 ) $ (81,653 ) $ (127,976 )

Stock-based compensation expense 4,063 4,945 15,616 29,356

Severance and related charges, net — 1,371 (8 ) 3,797

Litigation charges 284 — 626 —

Non-GAAP net loss, diluted $ (15,144 ) $ (19,322 ) $ (65,419 ) $ (94,823 )

Reconciliation between GAAP and non-GAAP results of operations:

Three Months Ended Years Ended

December 31, December 31,

2025 2024 2025 2024

GAAP gross profit $ 12,231 $ 10,747 $ 46,754 $ 38,564

Stock-based compensation expense 145 280 583 1,372

Severance and related charges, net — 317 — 518

Non-GAAP gross profit $ 12,376 $ 11,344 $ 47,337 $ 40,454

GAAP gross margin 42.4 % 36.5 % 39.1 % 33.9 %

Stock-based compensation expense 0.5 1.0 0.5 1.2

Severance and related charges, net — 1.1 — 0.5

Non-GAAP gross margin 42.9 % 38.6 % 39.6 % 35.6 %

GAAP research and development expense $ 5,054 $ 7,889 $ 21,235 $ 38,397

Stock-based compensation expense (940 ) (1,266 ) (3,366 ) (7,291 )

Severance and related charges, net — (161 ) (34 ) (1,124 )

Non-GAAP research and development expense $ 4,114 $ 6,462 $ 17,835 $ 29,982

GAAP sales and marketing expense $ 12,879 $ 15,451 $ 54,361 $ 70,044

Stock-based compensation expense (497 ) (1,224 ) (3,083 ) (6,122 )

Severance and related charges, net — (873 ) — (1,765 )

Non-GAAP sales and marketing expense $ 12,382 $ 13,354 $ 51,278 $ 62,157

GAAP general and administrative expense $ 11,926 $ 9,267 $ 37,864 $ 43,498

Stock-based compensation expense (2,481 ) (2,175 ) (8,584 ) (14,571 )

Severance and related charges, net — (20 ) 42 (390 )

Litigation charges (284 ) — (626 ) —

Non-GAAP general and administrative expense $ 9,161 $ 7,072 $ 28,696 $ 28,537

GAAP total operating expense $ 29,859 $ 32,607 $ 113,460 $ 151,939

Stock-based compensation expense (3,918 ) (4,665 ) (15,033 ) (27,984 )

Severance and related charges, net — (1,054 ) 8 (3,279 )

Litigation charges (284 ) — (626 ) —

Non-GAAP total operating expense $ 25,657 $ 26,888 $ 97,809 $ 120,676

Posts pagination

Page 1 Page 2 … Page 40,685 Next page