LIFE 10-K & 10-Q changes, risk factors and insider trading

We rely on a limited number of agency counterparties, and if we are unsuccessful in maintaining relationships with these and new agencies,agencies and their ultimate owners, our results of operations will be harmed.

Our success depends on individual agent adoption and engagement, and if agents do not engage with or adopt our platform, our results of operationoperations will be harmed.

Our business is subject to risks related to disputes, legal proceedings, and governmental inquiries and investigations.inquiries.

We and the third parties with whom we work are subject to stringent and evolving U.S. laws, regulations, and rules, contractual obligations, industry standards, policies and other obligations related to data privacy and security. Our actual or perceived failure (or that of the third parties with whom we work) to comply with such obligations could lead, and in certain cases has led, to regulatory investigations or actions, litigation (including class action claims), arbitration, and mass arbitration demands, fines and penalties, disruptions of our business operations, reputational harm, loss of revenue or profits, loss of consumers or sales, and other adverse business consequences.

In addition, following the closing of our initial public offering on January 30, 2026, the stock-based compensation expense related to our restricted stock units, or RSUs, has resulted in significant increases in our expenses for the three months ended MarchJune 31,30, 2026, which could impair our ability to maintain profitability.

While we have demonstrated the ability to reach profitability in certain recent periods, we may not maintain it in the future, and we may continue to incur significant losses. For exampleexample, infor the threesix months ended MarchJune 31,30, 2026, we incurred a net loss of $166.4$146.9 million.

We have limited experience operating our business at its current scale, scope, and complexity, particularly given the recent growth in our carrier and agency relationships. Our limited history and experience operating our current business may negatively impact our ability to accurately predict our future results and plan strategic investments and initiatives to further expand our business and offerings, including to support agencies and carriers with whom we work, certain of which may require changes to our liquidity strategy and cash flow management, as well as to maintain or improve efficiency in our operations and costs. For example, changes in observed persistency from unexpected termination trends have in the past resulted in and could in the future result in similar changes to persistency estimates, leading to in-period adjustments to our revenue or expensesexpenses, including agent compensation expenses, as such changes are applied to previously activated policies and impact on revenue recognized for newly activated policies. Several factors have resulted in, and may in the future result in, such fluctuations in our persistency estimates, including when we begin working with new carriers or introduce new products, the growth and maturity of any of our distribution channels and changes or improvements in our operational processes, as we have limited historical data on policy terminations and resulting persistency in such cases to help inform our persistency estimates. Further, as we continue to scale our platform and increase the total number of activated policies at any given time, we may experience larger and more frequent in-period adjustments to revenue in respect of previously activated policies as well as greater variation in persistency estimates for newly activated policies, as a larger number of activated policies contribute to and impact observed persistency as well as persistency estimates. We also have limited experience with the post-issue audit and termination practices with new carriers. Policies and practices relating to carrier implementation of the results of our post-issue audits, and ensuing policy terminations by carriers, can differ across carriers or for the same carrier across periods for various factors that are outside of our control and over which we have limited to no visibility. If these carrier actions following our post-issue audits are delayed for any reason, or if carriers do not implement our recommendations as we expect, we have at times experienced and in the future may experience an outsized amount of policy terminations concentrated in certain periods when such carriers address their backlog of policy audits, impacting persistency and persistency estimates for the relevant periods and resulting in fluctuations in revenue growth. These dynamics have negatively impacted and may in the future negatively impact our ability to accurately predict future revenue and cash flows and may in future periods result in unexpected differences between actual results compared to our forecasts.

We also have limited experience with our third-party channel, which is becoming an increasingly significant portion of our total revenue and growth strategy. In particular, as we expand our agency relationships, we have faced and may continue to face increased pressure to offer higher agent compensation or incentives, which could harm our margins and profitability even if agent engagement on our platform is sustained or grows. Because of our relatively limited experience with our third-party channel, we have less historical data to help inform our persistency estimates and less operational experience with incorporating persistency data into our estimates. As we continue to scale our third-party channel, we have taken, and expect to continue to take, actions to improve the operational processes relating to persistency of policies sold by these agents, which has historically impacted and may in the future further impact our revenue and agent compensation expense.

As we expand our business, we may also face integration challenges as well as potential unknown liabilities and reputational concerns in connection with third-party agencies or carriers we work with, including challenges, liabilities, and concerns that may impact and cause fluctuations in our financial results. For example, when working with new carriers or new products with existing carriers, our limited historical experience and data may result in more frequent changes to persistency and resulting persistency estimates, which can result in more frequent adjustments to revenue or expenses in future periods. We intend to further expand our overall business but our revenue may not continue to grow. As part of that expansion, we expect to grow our team across various functions, which will increase our costs and the complexity of our operations and place additional demands on our management, systems, and infrastructure. If we are unable to manage operational and integration challenges, or suffer unknown liabilities and reputational damage, our business may be adversely affected.

As we grow, we will be required to continue to improve our financial controls and procedures, and we may not be able to do so effectively. For exampleexample, risk of compliance failures may increase if our internal controls and systems do not keep pace with evolving regulatory requirements or increased transaction volumes. In addition, as the volume of personal and sensitive data we process increases, so does the importance of maintaining robust data privacy and security protections. We have been the subject of, and may in the future be exposed to, regulatory investigations and actions, which may result in reputational harm and a loss of trust among our consumers and counterparties.

Under certain of our carrier contracts, upon certain policy terminations, we are obligated to repay to our carriers or their affiliates all or a portion of the commissions received. Larger or more frequent than expected policy terminations result in changes to persistency and our persistency estimates, including as a result of lower persistency on policies sold through certain agencies that we have onboarded more recently, which may lead to larger adjustments to revenue in future periods.periods, whereas fewer than expected policy terminations may lead to lesser in-period adjustments to revenue. Reductions in revenue in such circumstances could negatively impact our results of operations and financial condition and decrease predictability and comparability across periods. In particular, when implementation of our post-issue audit results are delayed by carriers, the resulting terminations, if any, and related adjustments to our revenue will also be delayed and may not have been accounted for in our estimates of future performance. This dynamic negatively impacts the comparability of our results of operations across periods and may negatively impact investor perception of our financial performance. Additionally, upon the termination of policies sold through agents, we may not be able to fully or promptly recoup agent payments owed to us from the applicable agency or agent.agent, and in certain cases such amounts may prove entirely uncollectible. This could negatively impact our cash flows and financial results and could adversely impact our ability to budget for future expenditures, particularly if we are also obligated to repay carriers’ commissions received upon any such policy terminations.

While we continue to expand our carrier relationships, a significant portion of our policy volume is attributable to a limited number of carriers. For the three and six months ended MarchJune 31,30, 20252026 and 2026,2025, our top three carrier relationships, which are Ameritas, Banner Life (formerly Legal & General America), and TruStage, represented approximately 88%, respectively,88% of our total revenue. As our business and the insurance industry evolve, it may become necessary for us to offer insurance products from a reduced number of carriers or to derive a greater portion of our revenue from a more concentrated number of carriers. Should our dependence on a smaller number of carriers increase, whether as a result of the termination of carrier relationships, carrier consolidation or otherwise, we may become more vulnerable to adverse changes in our relationships with our carriers, particularly in states where we offer insurance products from a relatively small number of carriers or where a small number of carriers dominate the market. The termination, amendment or consolidation of our relationship with carriers could harm our business, financial condition, and results of operations.

Our success depends on individual agent engagement. Agent-level adoption of our platform is not guaranteed and may vary significantly across agencies. If agents are slow to adopt our platform, choose to deprioritize it, or lack sufficient support or training, the anticipated benefits of a given agency or agent relationship may not materialize. Agent acceptance of our platform also depends on its perceived quality, effectiveness, and usability compared to alternative selling methods. Moreover, agent behavior can be affected by changes we may implement to compensation-advance or agent-eligibility practices in response to persistency or agent quality concerns, as well as factors beyond our control, such as changes in agency compensation structures, internal agency incentives, or technical issues that disrupt agent workflows or compensation accuracy, which factors may be influenced or directed by agencies as part of their own competitive strategies. These dynamics have in the past, and may in the future, reduce agents’ platform engagement and impact the volume of policies sold.

levels of terminations that result in larger than expected changes in observed persistency and our persistency estimatesestimates, including with respect to our third-party channel;

geopolitical tensions or ongoing conflicts, and economic instability, including the ongoing conflicts in the Middle Eastinstability;

We prepare our condensed consolidated financial statements in accordance with GAAP. These accounting principles require us to make assumptions, estimates or judgments that affect the reported amounts of assets, liabilities, revenue, and expenses in our consolidated financial statements. We are required to make certain judgments and estimates that affect the disclosed and recorded amounts of revenue and expenses related to accounting under Accounting Standards Codification, or ASC, Topic 606 Revenue Recognition. For example, persistency estimates may be more variable early in the life cycle of a product or carrier relationship due to lack of relevant historical data to analyze. Lack of historical data as well as experience with post-issue audit practices of new carriers on our platform can result in greater fluctuations in future revenue and cash flows. We also make estimates and assumptions regarding the compensation expense associated with our third-party channel, including the amounts we expect to recoup from agents and the allowances we establish for agent debt that we may be unable to collect. These estimates and assumptions require a significant amount of discretionary judgment and complexity. We have revised these estimates and assumptions in the past, resulting in adjustments to previously reported amounts, and we may revise them again in the future. Changes in these estimates, including as a result of deterioration in persistency or collection experience or the onboarding of agencies with different risk profiles, could result in charges that adversely affect our financial position and results of operations, including in periods after the related policies were sold. We periodically evaluate our assumptions, estimates and judgment and conduct persistency assessments with outside advisors on a quarterly basis. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. Such assumptions, estimates or judgments, however, are both subjective and could change in the future as more information becomes known, which could impact the amounts reported and disclosed in our consolidated financial statements. Additionally, changes in accounting standards could increase costs to the organization and could have an adverse impact on our future financial position and results of operations.

Upon termination of a policy within certain time periods of activation, we are entitled to recoup all or a portion of agent payments. We typically advance to agents a portion of the commissions we expect to earn on a policy at the time the policy is activated. When a policy lapses before the advanced compensation has been earned, the unearned portion of that advance becomes an amount owed to us, which we refer to as agent debt. We have historically experienced and may continue to experience delays in receiving recoupment payments from agents beyond contractually prescribed repayment periods.periods, and in certain cases we may be unable to collect these amounts in full or at all. We have limited means to pursue repayments from individual agents, and actions we take to pursue repayments may be perceived negatively by applicable agencies, which may harm our relationships with such agencies. In addition, if we take, or are perceived to take, punitive action against certain highly productive agents who are delayed in paying recoupment amounts, it could negatively impact our business and results of operations. Delays in recoupment of agent repayments may negatively impact our ability to make commission repayments to carriers upon lapses of policies. Any delays in our commission repayments in connection with policy lapses may harm our reputation and relationship with carriers, which would negatively impact our business, financial condition, and results of operations.

State insurance laws grant supervisory agencies, including state insurance departments, broad administrative authority. State insurance regulators and the National Association of Insurance Commissioners continually review existing laws and regulations, some of which affect our business. These supervisory agencies regulate many aspects of the insurance business, including the licensing of insurance brokers and agents and other insurance intermediaries, the handling of third-party funds held in a fiduciary capacity, and trade practices, such as marketing, advertising and compensation arrangements entered into by insurance brokers and agents. These regulators are also increasingly focused on the use of AI in offering and underwriting consumer products. In addition, because we act as both a producer and a third-party administrator to support policy distribution and provide certain administrative services on behalf of carriers, we are required to maintain various state licenses to operate in these roles. Failure to obtain or maintain these licenses, or to comply with associated regulatory requirements, could impair our ability to operate in certain jurisdictions and adversely affect our business. This legal and regulatory oversight could reduce our profitability or limit our growth by increasing the costs of legal and regulatory compliance and by limiting or restricting the products or services we sell, the markets we serve or enter, the methods by which we sell our products and services, and the form of compensation we can accept from our consumers, carriers, and third parties.third-parties.

We are also subject to U.S. federal and state laws governing marketing and consumer outreach. For example, certain outreach activities, such as marketing calls or text messages, may be subject to Telephone Consumer Protection Act, or TCPA, as interpreted and implemented by the Federal Communications Commission, or FCC and U.S. courts, as well as similar state telemarketing laws, which regulate how and when such communications may be made and can impose significant restrictions on the use of telephone calls and text messages to residential and mobile telephone numbers as a means of communication when prior consent of the person being contacted has not been obtained. Violations of the TCPA may be enforced by the FCC or by individuals through litigation, as we have experienced in the past, including through costly class actions, of which numerous suits under federal and state laws have been filed in recent years against companies who conduct telemarketing and/or SMS texting programs, resulting in significant judgementsjudgments or settlement awards to the plaintiffs. Further, any changes to the TCPA, its interpretation, or enforcement that further restricts the way we or our agents contact and communicate with potential consumers or generate leads could harm our business, financial condition, and resultresults of operations. Additionally, CAN-SPAM establishes specific requirements for commercial email messages and specifies penalties for the transmission of commercial email. Although we have implemented compliance controls and may rely on enterprise partners or vendors to manage these activities, we may still face, and have faced, regulatory scrutiny or claims regarding actual or perceived violations of these laws. Our uses of certain personal or health information for marketing and other purposes may also be restricted by federal and state laws and regulations. In addition, we are subject to certain anti-money laundering and economic sanctions laws and regulations, including those administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control, or OFAC. Failure to comply with these requirements could result in significant penalties, regulatory investigations, reputational harm, or limitations on our ability to operate.

Macroeconomic challenges, including adverse conditions resulting from uncertainty concerning tariffs, the volatility and strength of the capital markets, increased rates of inflation, high interest rates, government shutdowns, debt ceilings or funding, and public health emergencies can and have affected the life insurance industry. Life insurance trends have historically been impacted by changes in interest rates, employment levels, and median household income. The current macroeconomic environment, characterized by elevated interest rates and heightened consumer price sensitivity, has impacted and may continue to impact the insurance industry, including by contributing to fluctuations in policy demand and pricing behavior across the industry. Downward fluctuations in the year-over-year insurance premiums charged by insurers to protect against the same risk could adversely affect our commission rates and our revenue growth and margins. Shifts in life insurance trends resulting from macroeconomic uncertainty or changes in mortality rates also harm our ability to accurately predict our business trends as well as our persistency assumptions,assumptions for both our direct and third-party channels, which can cause fluctuations in revenue and cash flow in future periods, including from policy cancellations. Insolvencies and consolidations associated with an economic downturn, especially insolvencies in the insurance industry, could adversely affect our business through the reduction in activity of or loss of carriers or agencies as well as a slowdown in the life insurance market. Also, some of our consumers or some agencies may experience liquidity problems or other financial difficulties in the event of a prolonged deterioration in macroeconomic conditions or a recession, which could result in our consumers becoming more price-sensitive to life insurance products and may reduce our ability to or impact the rate at which we recover the portion of agent payments due back to us from terminations. Shifts in consumer demand for product offerings away from those that we or our carriers offer may also negatively impact our revenue growth and margins. For all these reasons, a decline in economic activity could have a material adverse effect on our business, financial condition, and results of operations.

Additionally, the U.S. Department of Justice issued a rule entitled the Preventing Access to U.S. Sensitive Personal Data and Government-Related Data by Countries of Concern or Covered Persons, which places additional restrictionrestrictions on certain data transactions involving countries of concern (e.g., China, Russia, Iran) and covered persons (i.e., individuals and entities who are designated as such by the U.S. Attorney General or considered “foreign persons” and are majority owned by, organized under the laws of, a primary resident in, or a contractor of, a covered person or country of concern, as applicable) that may impact certain business activities such as vendor engagements, sale or sharing of data, employment of certain individuals, and investor agreements. Violations of the rule could lead to significant civil and criminal fines and penalties. The rule applies regardless of whether data is anonymized, key-coded, pseudonymized, de-identified or encrypted, which presents particular challenges for companies like ours and may impact our ability to transfer data in connection with certain transactions or agreements.

We also rely on third parties to operate critical business systems to process sensitive data in a variety of contexts including, without limitation, cloud-based infrastructure, data center facilities, encryption and authentication technology, employee email, content delivery to customers, and other functions. Our ability to monitor these third parties’ information security practices is limited, and these third parties may not have adequate information security measures in place despite any statements or representations they might make. If the thirdThird parties with whom we work experiencehave aexperienced, and may again experience, security incidentincidents or other interruption,interruptions wethat have in the past, and could experiencein adversethe consequences.future, adversely affect our business, results of operations, and financial condition. While we may be entitled to damages if the third parties with whom we work fail to satisfy their privacy or security-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such award. In addition, supply-chain attacks have increased in frequency and severity, and at any given moment third parties’ infrastructure in our supply chain or that of the third parties with whom we work could be compromised.

The legal and regulatory frameworks that apply to AI technologies continue to rapidly evolve, and it is impossible to predict the full extent of current or future risks related thereto. The technologies underlying AI and its uses are subject to a variety of laws and regulations, including intellectual property, data privacy and cybersecurity, consumer protection, competition, and equal opportunity laws, and are expected to be subject to increased regulation and new laws or new applications of existing laws and regulations. AI is the subject of ongoing review by various U.S. governmental and regulatory agencies, and various U.S. states are applying, or are considering applying, their laws and regulations to AI or are considering or have passed legal frameworks governing AI. Certain U.S. states have proposed, enacted, or are considering laws governing the development and use of AI technologies, such as the Utah Artificial Intelligence Policy Act, Colorado Artificial Intelligence Act and the CCPA regulations on automated decision-making technology. We expect other jurisdictions will adopt similar laws and, as a result of the rapidly evolving regulatory landscape, implementation standards, enforcement practices, and available scope of protection are likely to remain uncertain for the foreseeable future, and we cannotcan yetneither determine the impact future laws, regulations, or standards may have on our business (including our positioning with respect to our competition) andnor mayanticipate notthe alwaysappropriate be ableresponse to anticipatenew how to respond to thesesuch laws or regulations.regulations as they emerge.

Although we strive to use AI in compliance with applicable legal and ethical guidelines, including human-in-the loophuman-in-the-loop oversight for keycertain decision-making processes, we may use AI technologies to assist us in making certain decisions. Due to inaccuracies or flaws in the inputs, outputs, or logic of the AI technologies, the model could be biased and could lead us to make decisions that could bias certain individuals (or classes of individuals), and adversely impact their rights, employment, and ability to obtain certain pricing, products, services, or benefits.

Our use of third party AI platforms and technologies presents a number of risks. Use of AI technologies could also include the input of our confidential information (including non-public information and personal information) by third parties in contravention of non-disclosure agreements or by our personnel or other related parties in contravention of our policies and procedures and, in each case, could result in such confidential information becoming part of a dataset that is generally accessible by AI technologies, applications, and users. Further, the use of AI technologies could be affected by claims of infringement, misappropriation or other violations of intellectual property, including based on the use of large datasets used to train AI technologies or the use of output generated by AI technologies, in either case which contain or are substantially similar to material protected by intellectual property, including patents, copyrights or trademarks. Similar claims of infringement, misappropriation or other violations of intellectual property could be made against providers of AI technologies, and affecting users of such AI technologies, which are considered to have substantial similarities to other, pre-existing AI technologies. Moreover, AI technologies will likely be competitive with certain business practices, or increase the obsolescence of certain organizations’ products or services (which might include competitiveness with, or causing the obsolescence of, other AI technologies). Further, we could be exposed to risks to the extent our third-party service providers or other partners use AI technologies in their business activities notwithstanding any preventativepolicies policiesor contractual requirements we impose aimed at governing or restricting the use of such AI technologies. We are not able to control the way third-party products or services are developed, trained or maintained or the way third-party services utilizing AI technologies are provided to us.

Our Class B common stock has 20 votes per share, and our Class A common stock, which is the stock we have listed for trading on Nasdaq, has one vote per share. As of MarchJune 31,30, 2026, stockholders who hold shares of Class B common stock, including our co-founders, entities affiliated with Accel, and entities affiliated with Sequoia Capital, together hold approximately 95.4%95.3% of the voting power of our outstanding capital stock. As a result, our co-founders, Accel, and Sequoia Capital have significant influence over our management and affairs and over all matters requiring stockholder approval, including election of directors and significant corporate transactions, such as a merger or other sale of the companyCompany or our assets, for the foreseeable future.

Further, based on shares outstanding as of April 30, 2026,certain holders of approximately 38,641,516 shares of our common stock, or 61% of our shares outstandingstock have rights, subject to some conditions, to require us to file registration statements covering the sale of their shares or to include their shares in registration statements that we may file for ourselves or other stockholders.

We may also issue our shares of Class A common stock or securities convertible into shares of our Class A common stock from time to time in connection with a financing, acquisition, investments, or otherwise. If we are unable to effectively manage the risks relating to the price of our Class A common stock, our business, financial condition, results of operations, and prospects could be adversely affected.affected

Our amended and restated certificate of incorporation, provides that the Court of Chancery of the State of Delaware (or, if and only if the Court of Chancery of the State of Delaware lacks subject matter jurisdiction, any state court located within the State of Delaware or, if and only if all such state courts lack subject matter jurisdiction, the federal district court for the District of Delaware) is the sole and exclusive forum for the following types of actions or proceedings under Delaware statutory or common law: (i) any derivative action or proceeding brought on our behalf; (ii) any action or proceeding asserting a claim of breach of a fiduciary duty owed by any of our current or former directors, officers, or other employees to us or our stockholders, or any action asserting a claim for aiding and abetting such breach of fiduciary duty; (iii) any action or proceeding asserting a claim against us or any of our current or former directors, officers or other employees arising out of or pursuant to any provision of the Delaware General Corporation Law, our amended and restated certificate of incorporation or our amended and restated bylaws; (iv) any action or proceeding to interpret, apply, enforce or determine the validity of our amended and restated certificate of incorporation or our amended and restated bylaws (including any right, obligation, or remedy thereunder); (v) any action or proceeding as to which the Delaware General Corporation Law confers jurisdiction to the Court of Chancery of the State of Delaware; and (vi) any action or proceeding asserting a claim against us or any of our current or former directors, officers, or other employees that is governed by the internal affairs doctrine, in all cases to the fullest extent permitted by law and subject to the court’s having personal jurisdiction over the indispensable parties named as defendants. This provision would not apply to suits brought to enforce a duty or liability created by the Securities Exchange Act of 1934, as amended, or the Exchange Act, or any other claim for which the federal courts have exclusive jurisdiction. In addition, to prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our amended and restated certificate of incorporationincorporation, ,providesprovides that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, including all causes of action asserted against any defendant named in such complaint. For the avoidance of doubt, this provision is intended to benefit and may be enforced by us, our officers and directors, the underwriters to any offering giving rise to such complaint, and any other professional entity whose profession gives authority to a statement made by that person or entity and who has prepared or certified any part of the documents underlying the offering. However, as Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder, there is uncertainty as to whether a court would enforce such provision. Our amended and restated certificate of incorporation, further provides that any person or entity holding, owning or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to these provisions. Investors also cannot waive compliance with the federal securities laws and the rules and regulations thereunder.

As of December 31, 2025, we had net operating loss,loss carryforwards, or NOL, carryforwardsNOLs, for U.S. federal and state income tax purposes of $271.9 million and $159.1 million, respectively, which may be available to offset taxable income in the future, and portions of which expire in various years beginning in 2036 for U.S. federal purposes and 2030 for state purposes if not utilized. Under current law, U.S. federal NOLs incurred in taxable years beginning after December 31, 2017 may be carried forward indefinitely, but such federal NOLs are permitted to be used in any taxable year to offset only up to 80% of taxable income in such year. A lack of future taxable income would adversely affect our ability to utilize certain of these NOLs before they expire. In addition, under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, a corporation that undergoes an “ownership change” (as defined under Section 382 of the Code and applicable Treasury Regulations; generally a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year period) is subject to limitations on its ability to utilize its pre-change NOLs to offset futurepost-change taxable income. We have experienced ownership changes under Section 382 of the Code in the past, and we may experience additional ownership changes in the future which could affect our ability to utilize our NOLs to offset our income. Similar provisions of state tax law may also apply. Furthermore, our ability to utilize NOLs of companies that we have acquired or may acquire in the future also may be subject to limitations. There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to reduce future income tax liabilities, including for state tax purposes. For these reasons, we may not be able to utilize a material portion of the NOLs reflected on our balance sheet, which could potentially result in increased future tax liability to us and could adversely affect our results of operations and financial condition.

Cost-Effectively Activating New Policies. Our continued growth is dependent on cost-effectively activating new policies. We reach consumers by investing in direct marketing and agent payments. Our direct marketing is diversified and includes affiliate marketing, search engine marketing, social media advertising, TV advertising, and others. We dynamically adjust our direct marketing on a daily basis to optimize our acquisition strategy. Spending to activate a new policy is governed by our payback period, which we define as the number of months it takes for the cash commissions received to offset advertising spend and agent payments, as well as underwriting, sales team and payment processing costs. As of MarchJune 31,30, 2026, our average payback period was within two months.

Strategic Carrier Relationships. Maintaining our active carrier relationships and establishing new carrier relationships are critical for our continued growth. However, we still have significant opportunities to increase our share, as we accounted for a minority of thesethe top three carriers’ life insurance premiums in 2025. Beyond our current relationships, we intend to selectively work with new carriers, primarily to facilitate new product introductions and further diversify our positions within our existing carrier base.

Macroeconomic and Regulatory Trends. Macroeconomic factors, including a high interest rate environment, equity market returns, and a tight labor market impact the financial services and life insurance industries. Moreover, changes in the tax code (demand for insurance for tax planning purposes) or onin capital reserving requirements (such as the approval of the principles-based reserving regime in 2017) impact the demand for the life insurance products we offer and the profitability of the carriers with whom we work. These macroeconomic and regulatory factors have the potential to affect demand for our underwriting and distribution services.

In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. The following table presents our key business metrics for the three and six months ended MarchJune 31,30, 2026 and 2025 (in thousands, except percentages):

The total number of activated policies increased by 84%133% and 108% for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025.

Average Revenue Per Unit. We define average revenue per unit, or ARPU,ARPU as our total GAAP revenue for a given period, divided by the total number of activated policies during the period.

Contribution Profit. We define Contribution Profit as our gross profit less sales and marketing expenses, which includes agent payments and underwriting costs for non-activated policies, plus stock-based compensation and related taxes related to our employees and overhead costs allocated to sales and marketing expenses. Gross profit is defined as revenue less cost of revenue. Cost of revenue primarily consists of underwriting costs associated with activated policies. Overhead costs allocated to sales and marketing expenses include professional fees, technology expenses, and other related expenses. Contribution Margin is calculated by dividing Contribution Profit for a period by revenue for the same period.

Contribution ProfitMargin increasedwas by33% $18.1and million from $40.5 million42% for the three months ended MarchJune 31,30, 20252026 toand $58.62025, millionrespectively, and 32% and 43% for the six months ended June 30, 2026 and 2025, respectively. For the three months ended MarchJune 31,30, 2026.2026 Thisand increase2025, inthe Contribution Profitdecrease was primarily driven by continuedthe revenuechange growthto acrossthird-party bothagent our directcompensation and third-partypersistency channels,estimates partiallyimplemented offset byin the increase in sales and marketing expenses. The Contribution Margins were 30% and 43% for the three monthsperiod ended March 31, 2026. For the six months ended June 30, 2026 and 2025, respectively. Thethe decrease was primarilydriven attributableby to oura one-time charge of $16.5 million in agent compensation in sales and marketing expensesexpenses, asrecorded a result of our updated third-party agent compensation and persistency estimates to better reflect both maturing cohort experience andin the impactthree ofmonths recentended operationalMarch improvements.31, 2026. We use Contribution Profit and Contribution Margin to evaluate our operating performance. We believe that Contribution Profit and Contribution Margin provide useful information to investors about our business and financial performance because they offer insight into how efficiently we activate new policies and ultimatelygenerate revenue by accounting for the direct expenses associated with those activated policies. Contribution Profit and Contribution Margin should not be considered as alternatives to gross profit and gross margin, or any other measure of financial performance calculated and presented in accordance with GAAP.

Adjusted EBITDA. We define Adjusted EBITDA as net income excluding interest expense, interest income net,income, income tax expense,expense (benefit), depreciation and amortization, and stock-based compensation expenseand related taxes as set forth in the table below. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period. We use Adjusted EBITDA and Adjusted EBITDA Margin to assess performance, to inform the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to assist our board of directors in monitoring our business and financial performance. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors about our business and financial performance, enhance their overall understanding of our past performance and future prospects, including by providing consistency and comparability with our past financial performance, and allow for greater transparency with respect to measures used by our management in investors’ financial and operational decision making. In addition, we believe Adjusted EBITDA is widely used by investors, securities analysts, and other parties in evaluating companies in its industry as a measure of operational performance.

For the three and six months ended June 30, 2026, Adjusted EBITDA increased by $9.9$14.5 million and $24.3 million, respectively, compared to $33.6 million for the threesame monthsperiods endedin March 31, 2026, from $23.7 million for the three months ended March 31, 2025, representing Adjusted EBITDA Margins of 17% and 25%, respectively.2025. The increase in Adjusted EBITDA was primarily due to the increase in revenue partially offset by the increase in operating expenses excluding stock-based compensation and related taxes expenses. The decrease in Adjusted EBITDA Margin was primarily attributable to our one-time charge of $16.5 million in agent compensation in sales and marketing expenses during the three months ended March 31, 2026.

We primarily generate revenue through commissions paid by carriers from policies activated and sold through our platform as well as from our provision of third-party administrator,administrator or TPA,("TPA") services for such policies. Our commission revenue is recognized upfront upon delivering new policyholders to carriers, and we have no material additional obligations post-sale. Our revenue for an activated policy includes both the first-year commission and renewal commissions, both of which require significant judgment in applying a persistency estimate. In future periods following policy activation, we recognize in-period adjustments in revenue as the applicable persistency estimates are updated.

CostCosts and Expenses

Interest expense consists of interest costs associated with the sale of commissions receivable. For a portion of our policies, we have at times entered into arrangements in which we sell the rights to a portion of future commissions in exchange for upfront cash payments to unaffiliated entities. During the three and six months ended MarchJune 31,30, 2026 and 2025, no such arrangements were used. We impute interest on the unamortized portion of the liability for the sale of commissions receivable using the effective interest method, which is based on forecasted payments expected to be made over the term of the agreements.

We account for uncertain tax positions in accordance with Accounting Standards Codification,Codification or ASC,("ASC") 740-10, Accounting for Uncertainty in Income Taxes. We recognize the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and only in an amount more likely than not to be sustained upon review by the tax authorities. Interest and penalties related to uncertain tax positions are classified in the condensed consolidated financial statements as income tax expense.

RevenueFor the three and six months ended June 30, 2026, revenue increased by $98.2$100.7 million and $198.9 million, or 104%,113% forand the108%, three months ended March 31, 2026respectively, compared to the threesame monthsperiods ended March 31,in 2025. The increase in revenue in both periods was primarily driven by an 84% increaseincreases in activated policies of 133% and 108%, respectively, across both direct and third-party channels.

DirectFor the three and six months ended June 30, 2026, direct channel revenue grew by $84.3$66.0 million and $150.3 million, or 136%,131% whereasand 134%, respectively, compared to the same periods in 2025. For the three and six months ended June 30, 2026, third-party channel revenue grew by $13.9$34.7 million and $48.6 million, or 42%.90% and 68%, respectively, compared to the same periods in 2025. Revenue from our direct channel increased at a higher rate,rate in both periods, reflecting unit economics improvements that enabled efficient deployment of capital across our consumer acquisition channels. Revenue from our third-party channel was primarily driven by contributions from both new and existing agencies, alongside enhancements to our agent portal that improved conversion rates and agent productivity.

SalesFor the six months ended June 30, 2026, sales and marketing expenses increased by $87.7$164.1 million, or 156%, for the three months ended March 31, 2026152%, compared to the threesame monthsperiod endedin March2025. 31,The 2025,increase was primarily dueattributable to $73.1a $144.3 million increase in total advertising, agent payment, and other policy acquisition expenses, which included a one-time increase of $16.5 million in agent compensation expenses as a result of our updated third-party agent compensation and persistency estimates to better reflect both maturing cohort experience and the impact of recent operational improvements, and $7.9an increase of $9.6 million increase in stock-based compensation charge and related taxes associated with RSUs with a liquidity event vesting condition that was satisfied upon the effectiveness of our IPO. This increase reflects our strategic expansion across both direct and third-party distribution channels to grow and support higher application volumes.

GeneralFor the three months ended June 30, 2026, general and administrative expenses increased by $167.2$15.8 million, or 1248%, for the three months ended March 31, 2026193%, compared to the threesame monthsperiod ended March 31,in 2025. ThisThe increase was primarily attributable to an increase of $166.5$11.5 million in stock-based compensation charge and related taxes associated with RSUs with a liquidity event vesting condition that was satisfied upon the effectiveness of our IPO.taxes.

Technology expenses increased by $17.4 million, or 180%, forFor the three months ended MarchJune 31,30, 20262026, technology expenses increased by $6.6 million, or 90%, compared to the threesame monthsperiod ended March 31,in 2025. The increase was primarily attributable to an increase of $0.9$2.3 million in stock-based compensation charge and related taxes, an increase of $2.2 million in personnel-related compensation expenses due to headcount growth, an increase of $0.5 million in hosting fees, and an increase of $0.7$1.0 million in software and web services to support both the maintenance and expansion of our product suite and technology infrastructure, and an increase of $13.9$0.6 million in stock-basedhosting compensation charge and related taxes associated with RSUs with a liquidity event vesting condition that was satisfied upon the effectiveness of our IPO.fees.

CostFor the three and six months ended June 30, 2026, cost of revenue expenses increased by $1.7$2.6 million and $4.3 million, or 105%,183% forand the142%, three months ended March 31, 2026respectively, compared to the threesame monthsperiods ended March 31,in 2025. The increase in both periods was primarily attributable to an increase in underwriting costs, driven by growth in application and activated policy volume.

InterestFor the three and six months ended June 30, 2026, interest expense decreased by less than $0.1 million and $0.3 million, or 32%,5% forand the21%, three months ended March 31, 2026respectively, compared to the threesame monthsperiods ended March 31,in 2025. The decrease was primarily due to the lower liability balance resulting from the sale of commissions for the three and six months ended MarchJune 31,30, 2026 compared to the threesame monthsperiods ended March 31,in 2025.

InterestFor the three and six months ended June 30, 2026, interest income decreasedincreased by $0.2 million and $0.1 million, or 9%,14% forand the3%, three months ended March 31, 2026respectively, compared to the threesame monthsperiods ended March 31,in 2025. The decreaseincrease in both periods was primarily attributable to lower interest rates, which were partially offset by a higher average investment and cash equivalents balancebalances asduring ofthe Marchthree 31,and 2026.six months ended June 30, 2026, compared to the same periods in 2025.

The increase in provision for income taxes of $3.0 million duringFor the threesix months ended MarchJune 31,30, 20262026, income tax expense increased by $1.5 million, or 68%, compared to the threesame monthsperiod endedin March2025. 31,The 2025,increase was primarily driven by changes to the valuation allowance attributable to the increases to deferred tax liabilities associated with revenue recognition and income taxes in foreign jurisdictions.

Since our inception, we have financed our operations primarily through net proceeds from our equity financings (including from our IPO and from pre-IPO sales of our convertible preferred stock) and commissions received from the sale of our products. Upon the closing of our initial public offeringIPO in January 2026, we received approximately $82.6 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses paid or payable by us. As of MarchJune 31,30, 2026, our principal sources of liquidity were cash, cash equivalents, and investments of $223.8$252.9 million and working capital of $104.4$103.0 million. Cash and cash equivalents are comprised of cash held in demand deposit accounts and short-term, highly liquid investments with original maturities of three months or less. Marketable securities are comprised primarily of commercialgovernment paperbonds, agency bonds, and investment grade U.S. and non-U.S.-issued corporate debt securities. Our principal use of cash has been to fund our operations and invest in technology to support our growth.

We have generated significant losses from operations and negative cash flows from operating activities in the past as reflected in our accumulated deficit of $268.9$249.4 million as of MarchJune 31,30, 2026. Our future cash flows from operating activities may fluctuate as a result of investments we continue to make across our organization. However, we believe that our existing cash and cash equivalents will be sufficient to meet our working capital requirements for at least the next twelve months. However, our liquidity assumptions may prove to be incorrect, and we could utilize our available financial resources sooner than we currently expect. Our future capital requirements and the adequacy of available funds will depend on many factors, including our growth rate, accuracy of persistency estimates, expansion of sales and marketing activities, expansion of carrier and agency relationships, investments in technology enhancements, continued market adoption of our platform and services, and timing and amount of sales of commissions receivable. In addition, we may enter into agreements to acquire or invest in complementary businesses, products, teams, and technologies, including intellectual property rights, which could increase our cash requirements. As a result of these and other factors, we may be required to seek additional financing sooner than we currently anticipate. However, we may not be able to secure additional financing to meet our operating requirements or growth strategies on acceptable terms, or at all.

In particular, recent volatility in the global financial markets, including due to heightened inflation, rising interest rates, tariffs, and other macroeconomic conditions, geopolitical events, such as theand ongoing conflicts between Russia and Ukraine and in the Middle East,conflicts, and disruptions in access to bank deposits or lending commitments due to bank failures could reduce our ability to access capital and negatively affect our liquidity in the future. If we raise additional funds by issuing equity or equity-linked securities, the ownership of our existing stockholders will be diluted. If we raise additional financing by the incurrence of indebtedness, we will be subject to increased fixed payment obligations and could also be subject to restrictive covenants, such as limitations on our ability to incur additional debt, and other operating restrictions that could adversely impact our ability to conduct our business. If we are unable to obtain needed additional funds, we will have to reduce our operating costs, which would impair our growth prospects and could otherwise negatively impact our business.

The following table sets forth certain cash flow information for the threesix months ended MarchJune 31,30, 2026 and 2025:

For the threesix months ended MarchJune 31,30, 2026, net cash provided by operating activities was $31.2$66.9 million. ThisWhile waswe drivenreported a net loss of $146.9 million for the period, primarily byattributable non-cashto expenses of $192.7$208.2 million relatedin tonon-cash stock-based compensation, $3.2$2.9 million related to deferred taxes, $1.3$2.9 million related to depreciation and amortization, $0.7and $1.3 million related to non-cash interest expense, offsetsour tocore theoperations netgenerated losspositive ofcash $166.4 million.flow. In addition, during thethis three months ended March 31, 2026,period, significant changes in our operating assets and liabilities resulted from the following:

Increase in other current liabilities of $4.6$39.5 million due primarily to aan reclassificationincrease ofin contractthe assetpersistency balancesreserve to contract liabilities.liability.

For the threesix months ended MarchJune 31,30, 2026, net cash used in investing activities was $52.1$79.1 million. This was primarily driven by $77.2$122.4 million in investment purchases and $1.6$3.3 million investment in software development costs, which were partially offset by $27.0$47.3 million in proceeds from maturities and sales of investments.

For the threesix months ended MarchJune 31,30, 2025, net cash provided by investing activities was $2.0$21.2 million. This was primarily due to proceeds from maturity and sale of investments of $25.2$45.8 million, partially offset by purchases of investments of $22.2 million.

For the threesix months ended MarchJune 31,30, 2026, cash provided by financing activities was $37.8$33.4 million. This was primarily driven by $91.6 million in proceeds from initial public offering and $0.7 million proceeds from exercise of stock options, partially offset by $49.1 million of payment of tax withholdings on settlement of RSUs, $3.6$7.0 million repayments of the liabilities related to the sale of commissions receivable and $1.8$2.8 million payments of deferred offering costs.

For the threesix months ended MarchJune 31,30, 2025, cash providedused byin financing activities was $3.4less than $0.1 million, which primarily consisted of proceeds from the sale of commissions receivable of $5.0 million and proceeds from stock option exercise of $0.8 million, offset by repayments of the liabilities related to the sale of commissions receivable of $2.2$4.7 million and proceeds from stock option exercisepayment of $0.7deferred offering costs of $1.1 million.