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

If some of our customers experience financial distress or suffer disruptions in their business, their weakened financial position could negatively affect our own financial position and results.

Effective internal controls are necessary for us to provide reliable and accurate financial reports and effectively prevent fraud. We have devoted significant resources and time to comply with the internal controlcontrols over financial reporting requirements of the Sarbanes-Oxley ("SOX") Act of 2002. In addition, SOX Section 404 requires that we assess and in certain instances for our auditors to attest to the effectiveness of our controls over financial reporting. Our current and future compliance with the annual internal control report requirementrequirements will depend on the effectiveness of our financial reporting and data systems and controls across our operating subsidiaries. We expect these systems and controls to become increasingly complex to the extent that we integrate acquisitions and our business grows. To effectively manage this growth, we will need to continue to improve our operational, financialfinancial, and management controls and our reporting systems and procedures. We cannot be certain that these measures will ensure that we design, implement, and maintain adequate controls over our financial processes and reporting in the future. Any failure to implement required new or improved controls, or difficulties encountered in their implementation or operation, could harm our operating results, or cause us to fail to meet our financial reporting obligations. Inadequate internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock and our access to capital.

The actual or perceived improper sending of text messages or voice calls may subject us to potential risks, including liabilities or claims relating to consumer protection laws and regulatory enforcement, including fines. For example, the Telephone Consumer Protection Act of 1991 ("TCPA") of 1991 restricts telemarketing and the sending of automatic short message service ("SMS") text messages without explicit customer consent. The scope and interpretation of the federal and state laws and regulations that are or may be applicable to the delivery of text messages or voice calls are continuously evolving and developing. If we do not comply with these laws or regulations or if we become liable under these laws or regulations due to the failure of our customers to comply with these laws by obtaining proper consent, we could face direct liability. We rely on contractual representations made to us by our customers that they will comply with our acceptable use restrictions and applicable law and regulations in using our services. We cannot predict whether our role in facilitating our customers’ or other users’ activities would expose us to liability under applicable law.

The Communications Act of 1934, as amended by the Telecommunications Act of 1996 (the “ActTA”), and the regulations promulgated by the FCC under Title II of the Act,TA, may impose federal licensing, reporting and other regulatory obligations on the Company. To the extent we contract with and use the networks of VoIP service providers, new legislation or FCC regulation in this area could restrict our business, prevent us from offering service or increase our cost of doing business. There are an increasing number of regulations and rulings that specifically address access to commerce and communications services on the Internet, including internet protocol ("IP") telephony. We are unable to predict the impact, if any, that future legislation, legal decisions, or regulations concerning voice services offered via the Internet may have on our business, financial condition, and results of operations.

Federal and state telemarketing laws including the TCPA which limits the use of autodialing systems, artificial or prerecorded voice messages, SMS text messages and fax machines, the Telemarketing Sales Rule, the Telemarketing Consumer Fraud and Abuse Prevention Act and the rules and regulations promulgated thereunder. In recent years, the TCPA has become a fertile source for both individual and class action lawsuits and regulatory actions. Specifically, the TCPA restricts telemarketing and the transmission of automatic SMS text messages without proper consent. The scope and interpretation of the laws and regulations that are or may be applicable to the delivery of text messages and/or to the allowable methods of obtaining proper consent are continuously evolving and developing. If we do not comply with these laws or regulations or if we become liable under these laws or regulations due to the failure of our customers to comply with these laws by obtaining proper consent, we could face liability. In addition, certain regulatory developments in this area may adversely impact the demand for some of our services (e.g. our text analytics and communications services) if some our customers become unable to obtain proper consents for their communications at historical volumes.

The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act and the rules and regulations promulgated thereunder. The FCC has adopted rules requiring originating and terminating voice service providers to implement the STIR/SHAKEN caller identification ("ID") authentication framework to combat spoofed robocalls and is expected to adopt additional measures for that purpose. A number of our information services depend on integrations with voice service providers subject to these regulations. We maintain a registration in the FCC’s Robocall Mitigation Database as a Non-Gateway Intermediate Provider. If we do not comply with our providers’ evolving requirements pertaining to these regulations or if future regulatory measures relative to the STIR/SHAKEN caller ID authentication framework result in unforeseen interoperability issues for our information services that we are unable to address in a timely and efficient manner, our business, financial condition, and results of operations could be negatively impacted and/or we could face liability.

Laws affecting telephone call recording and associated consent requirements. Under the Federal Wiretap Act, at least one party taking part in a call must be notified if the call is being recorded. Under this law, and most state laws, there is nothing illegal about one of the parties to a telephone call recording the conversation. However, a number of states (i.e. California, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Pennsylvania, and Washington) require that all parties consent when one party wants to record a telephone conversation. The telephone recording laws in other states, like federal law, require only one party to be aware of the recording. The scope of the consent requirements under these laws may expand over time based on evolving case law in this area.

Laws in most U.S. states of the United States of America may require registration or licensing of one or more of our subsidiaries, and may impose additional taxes, fees or telecommunications surcharges on the provision of our services which we may not be able to pass through to customers.

We may also be subject to costs and liabilities with respect to privacy issues. Several companies have incurred penalties for failing to abide by the representations made in their public-facing privacy policies. In addition, a significant number of U.S. states have enacted laws that require businesses and their service providers to implement and maintain reasonable security procedures and practices to protect personal information and to provide notice to consumers in the event of a security breach. For example, California enacted the California Consumer Privacy Act, which was subsequently amended by the California Privacy Rights Act of 2020 (collectively, “CPRA”), which went into effect on January 1, 2023. The CPRA gives California residents rights to access, correct, and delete their personal information, opt out of certain types of personal information sharing, limit the use of sensitive personal information as well as receive detailed information about how their personal information is retained and used. The CPRA and the regulations promulgated thereunder also include requirements for provisions to be included by businesses in their respective contracts with service providers, which limit the scope of permissible use for personal data processed as part of the services and give businesses certain rights to assess their service providers’ data processing operations. The CPRA provides for civil penalties for violations, as well as a private right of action for data breaches that is expected to increase data breach litigation. MultipleSeveral other states have enacted privacy-related legislation that provides for consumer rights similar to the CPRA. Further, it is anticipated that additional federal and state privacy-related legislation may be enacted. Such legislation could negatively affect our business in various ways such as by increasing our and/or our customers’ costs of compliance. Finally, the majority of the aforementioned privacy laws and regulations do not apply to information historically regulated by certain industry-specific legislation and regulations such as the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and/or the Gramm-Leach-Bliley Act, each of which include separate sets of security standards for the processing of covered data and provide for significant civil and/or criminal penalties for violations. To the extent that we increase our market share of conversational analytics offerings for customers in the healthcare and/or financial services industries, our risk of possible costs and liabilities related to compliance with these additional laws increases as well.

In addition, for the stock market in general,general and the NASDAQ, the market for technology companies in particular, have experienced significant price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the listed companies. These broad market and industry factors may seriously harm the market price of our Class B common stock, regardless of our operating performance. In the past, following periods of volatility in the market, securities class action litigation has often been instituted against these companies.

Our founder controls the outcome of stockholder voting, and there may be an adverse effect on the price of our Class B common stock due to the disparate voting rights of our Class A common stock and our Class B common stock.

As of December 31, 2024,2025, Russell C. Horowitz, our founder, beneficially owned 100% of the outstanding shares of our Class A common stock, which shares representedrepresent about 75% of the voting power of all outstanding shares of our capital stock. The holders of our Class A common stock and Class B common stock have identical rights except that the holders of our Class B common stock are entitled to one vote per share, while holders of our Class A common stock are entitled to twenty-five25 votes per share on all matters to be voted on by stockholders. This concentration of control could be disadvantageous to our other stockholders with interests different from those of our founder. This difference in the voting rights of our Class A common stock and Class B common stock could adversely affect the price of our Class B common stock to the extent that investors or any potential future purchaser of our shares of Class B common stock give greater value to the superior voting rights of our Class A common stock.

Our certificate of incorporation, as amended, our by-laws, as amended, and Delaware law contain provisions that could discourage, delay or prevent a third partythird-party from acquiring us, even if doing so may be beneficial to our stockholders. In addition, these provisions could limit the price investors would be willing to pay in the future for shares of our Class B common stock. The following are examples of such provisions in our certificate of incorporation, as amended, or our by-laws, as amended: the authorized number of our directors can be changed only by a resolution of our board of directors; advance notice is required for proposals that can be acted upon at stockholder meetings; there are limitations on who may call stockholder meetings; and our board of directors is authorized, without prior stockholder approval, to create and issue “blank check” preferred stock.

We are also subject to Section 203 of the Delaware General Corporation Law ("DGCL"), which provides, subject to enumerated exceptions, that if a person acquires 15% or more of our voting stock, the person is an “interested stockholder” and may not engage in “business combinations” with us for a period of three years from the time the person acquired 15% or more of our voting stock. The application of the DGCL could have the effect of delaying or preventing a change of control of our company.

The following discussion should be read in conjunction with the audited Consolidated Financial Statements and the notes to those statements which appear elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements. Please see page 1 on this Annual Report on Form 10-K “Forward-Looking Statements” and Item 1A of this Annual Report on Form 10-K under the caption “Risk Factors” for a discussion of the risks, uncertainties and assumptions associated with these statements.

Marchex, Inc.Marchex harnesses the power of AI and conversationalconversation intelligence to provide actionable insights alignedderived withfrom prescriptive vertical market data analytics, driving operational excellence and revenue acceleration.analytics. Marchex enables executive,organizations sales,across andbusiness marketing teamsfunctions to optimize customer journey experiences across communications channels. Through our prescriptive analytics solutions, we enable the alignment of enterprise strategy, empowering businesses to increase revenue through informed decision-makingacquisitions and strategicexperiences, execution.transforming conversations into meaningful business outcomes. Marchex provides conversationalAI-powered conversation intelligence AI-powered solutions for market-leading companies in leading B2B2C vertical markets, including severalmany of the world’s most innovative and successful brands.

We were incorporated in Delaware on January 17, 2003. We have officesoffice space in Seattle, Washington and Wichita, Kansas.WA.

Our cost of revenue represents the cost of providing our services to our customers. These costs primarily consist of cloud computing and hosting costs, telecommunication costs, including the use of phone numbers relating to our services; bandwidth and software license fees; network operations; and payroll and related expenses of personnel, including stock based compensation.

Sales and marketing expenses consist primarily of payroll and related expenses for personnel engaged in marketing and sales functions; advertising and promotional expenditures including online and outside marketing activities; cost of systems used to sell to and serve customers; and stock-based compensation of related personnel.

Product development costs consist primarily of expenses incurred in the research and development,development and creation and enhancement,("R&D") of our products and services. These costs primarily consist of payroll and related expenses for personnel; costs of computer hardware and software; costs incurred in developingfor features and functionality of the services we offer; and stock-based compensation of related personnel.

For the periods presented, substantially all of our product development expenses are researchR&D and development. Product development costs are expensed as incurred or capitalized into property and equipment in accordance with the U.S. generally accepted accounting principles ("GAAP"). once requirements have been met. See Note 1: Description of Business and Summary of Significant Accounting Policies for more information on software development capitalization.

Amortization of intangible assets excluding goodwill relates to intangible assets identified in connection with our acquisitions. The intangible assets have been identified as customer relationships; acquired technology; non-competition agreements; and trade names. These assets arewere fully amortized as of December 31, 2024.

See Note 6: Stockholders' Equity of the Notes to the Consolidated Financial Statements, as well as our Critical Accounting Policies for additional information about stock-based compensation.

ProductCost Development.of ProductRevenue. developmentCost expensesof revenue decreased $3.0$0.5 million, or 19%,3%, to $12.4$16.7 million for the year ended December 31, 20242025 from $15.4$17.2 million for the year ended December 31, 2023.2024. As a percentage of revenue, productcost developmentof expensesrevenue werewas 26%37% and 31%36% for the years ended December 31, 20242025 and 2023,2024, respectively. The change from the prior year was primarily attributable to $2.9a milliondecrease in lowercosts from investment in cloud infrastructure and platform integration, and personnel and contractoroutside costs,labor costs of $0.5 million, as we reorganized and realigned our researchpersonnel andin development teams.2025.

GeneralSales and Administrative.Marketing. GeneralSales and administrativemarketing expenses wasincreased consistent$0.4 atmillion, $10.2or 3%, to $12.5 million for both the yearsyear ended December 31, 20242025 andfrom 2023.$12.1 million for the year ended December 31, 2024. As a percentage of revenue, generalsales and administrativemarketing expenses were 21%28% and 20%25% for the years ended December 31, 20242025 and 2023,2024, respectively. The change from prior year was primarily attributable to an increase in contract asset amortization charges of $0.6 million.

Income Tax. Income tax expense was $0.4$0.1 million and $0.1$0.4 million for the years ended December 31, 20242025 and 2023,2024, respectively, consisting primarily of deferred tax expense and U.S. state income taxes. We incurred federal taxable losses in both 20242025 and 2023.2024. The effective tax rate differed from the expected tax rate of 21% in both years primarily due to a the valuation allowance and, to a lesser extent, state income taxes, foreign branch income and rate differential,allowance, non-deductible stock-based compensation related to restricted stock units and incentive stock options recorded under the fair-value method, and other non-deductible amounts.

As of December 31, 20242025 and 2023,2024, we had cash and cash equivalents of $12.8$9.9 million and $14.6$12.8 million, respectively. As of December 31, 2024,2025, we had current and non-current contractual obligations of $11.4$7.3 million, of which $1.8$0.8 million is for payments due under our facilitiesfacility and financed equipment leases.lease.

Cash used in investing activities for the yearsyear ended December 31, 2025 was $1.3 million and was primarily attributable to cash paid for capitalized software development projects, partially offset by proceeds collected from the domain asset sale in the current year. Cash used in investing activities for the year ended December 31, 2024 and 2023, was $0.4 million and $1.3 million, respectively, and was primarily attributable to cash paid for purchases of property and equipment for our technology infrastructure platform as well as capitalized software development costs in both years.platform.

Cash used in financing activities for the years ended December 31, 20242025 and 2023,2024, was $0.3$0.1 million and $0.2$0.3 million, respectively,respectively. andCash used in financing activities for the year ended December 31, 2025 was primarily attributable to payments made related to equipment financing lease obligationsobligations, partially offset by proceeds from exercises of stock options, and issuances and vesting of restricted stock. Cash used in financing activities for boththe years.year ended December 31, 2024 was primarily attributable to payments made related to equipment financing lease obligations.

Based on our operating plans we believe that our resources will be sufficient to fund our operations, including any investments in strategic initiatives, for at least twelve months, however macroeconomic factors could influence our operating plans and resources significantly. Additional equity and debt financing may be needed to support our acquisition strategy, our long-term obligations, and ourother Company’s needs. There can be no assurance that, if we needed additional funds, financing arrangements would be available in amounts or on terms acceptable to us, if at all. Failure to generate sufficient revenue or raise additional capital could have a material adverse effect on our ability to continue as a going concern and to achieve our intended business objectives.

Our Consolidated Financial Statements have been prepared in accordanceconformity with U.S. GAAP. Our critical accounting policies are those that we believe have the most significant impact to reported amounts of assets, liabilities, revenue and expensesexpenses, and the related disclosures of contingent assets and liabilities and that require the most difficult, subjective, or complex judgments.

The policies below are critical to our business operations and the understanding of our results of operations. In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of our results. We base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 718, Compensation – Stock Compensation, requires the measurement and recognition of compensation for all stock-based awards made to employees, non-employees and directors including stock options, restricted stock issuances,awards ("RSAs"), and restricted stock units ("RSUs") be based on estimated fair values. We account for forfeitures as they occur. We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize it as expense over the vesting or service period, as applicable, of the stock-based award using the straight-line method.

Although the fair value of stock-based awards is determined in accordance with ASC 718, the assumptions used in calculating fair value of stock-based awards and the use of the Black-Scholes option pricing model is highly subjective, and other reasonable assumptions could provide differing results. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. See Note 6: Stockholders' Equity in the Notes to Consolidated Financial Statements for additional information.

We had an accumulated deficit of $333.1$333.5 million as of MarchJune 31,30, 2026. Our net expenses may increase based on the initiatives we undertake which for instance, may include increasing our sales and marketing activities, hiring additional personnel, incurring additional costs as a result of being a public company, acquiring additional businesses, and making additional equity grants to our employees. This may result in the reduction of our cash balances or the incurrence of debt.

We received approximately 36% and 35% of our revenue from our five largest customers for the three and six months ended MarchJune 31,30, 2026, and the loss of one or more of these customers could adversely impact our results of operations and financial condition.

Our five largest customers accounted for approximately 36% and 35% of our total revenues for the three and six months ended MarchJune 31,30, 2026. In particular, our customers in the automotive and related services sectors account for a significant portion of our revenue.

Our quarterly results have fluctuated in the past and may fluctuate in the future due to seasonality.seasonality in call volumes, consumer demand, advertising and marketing budgets, and the purchasing cycles of our customers and advertisers. Our experience has shown that during the spring and summer months, call volumes in certain verticals, such as home servicesservices, are generally higher than during other times of the yearyear, andwhile during the latter part of the fourth quarter of the calendar year, we generally experience lower call volumes.volumes and reduced demand for calls from certain performance advertising customers. The extent to which callvolumes volumesor demand may decrease during these off-peak periods is difficult to predict. Prolonged or severe decreases in call volumes during these periods may adversely affect our growth rate and results, and in turn,turn the market price of our securities. Historically, we have seen thisthese trendtrends generally reversingreverse in the first quarter of the calendar yearquarter, with increased call volumes and often new budgets at the beginning of the year for many of our customers withand advertisers whose fiscal years endingend December 31. However, there can be no assurancesassurance suchthat these seasonal trends will consistently repeat each year, particularly as customers and advertisers may adjust budgets, marketing strategies, agency relationships or media tactics throughout the year.

As of MarchJune 31,30, 2026 and December 31, 2025, Russell Horowitz, our founder, beneficially owned 100% of the outstanding shares of our Class A common stock, which shares represent about 75% of the voting power of all outstanding shares of our capital stock. The holders of our Class A and Class B common stock have identical rights except that the holders of our Class B common stock are entitled to one vote per share, while holders of our Class A common stock are entitled to 25 votes per share on all matters to be voted on by stockholders. This concentration of control could be disadvantageous to our other stockholders with interests different from those of our founder. This difference in the voting rights of our Class A and Class B common stock could adversely affect the price of our Class B common stock to the extent that investors or any potential future purchaser of our shares of Class B common stock give greater value to the superior voting rights of our Class A common stock.

Revenue decreased $0.8$0.7 million, or 7%,6%, to $10.6$11.0 million for the three months ended MarchJune 31,30, 2026 from $11.4$11.7 million for the three months ended MarchJune 31,30, 2025. Revenue decreased $1.5 million, or 6%, to $21.6 million for the six months ended June 30, 2026 from $23.1 million for the six months ended June 30, 2025. The three and six month comparativecurrent year periods were impacted by certain new sales during the periods as well as offsets during the second half of 2025, largely due to customer migration activities from our legacy platforms onto the new Marchex Engage Platform. These offsets adversely impacted certain revenue run rates entering 2026 as compared to 2025.

Cost of Revenue. Cost of revenue wasincreased $4.2$0.3 million, or 7%, to $4.4 million for both the three months ended MarchJune 31,30, 2026 andfrom $4.1 million for the three months ended June 30, 2025. As a percentage of revenue, cost of revenue was 40% and 37%35% for the three months ended MarchJune 31,30, 2026 and 2025, respectively. During the three months ended MarchJune 31,30, 2026 payrolldepreciation costs increased $0.1 million as awell resultas $0.2 million of reorganizationother chargescosts ofassociated $0.1with millioncustomer relatedpilot toand severance.other Thenew increaserevenue was offset by savings of $0.1 million realized as a result of the platform migration activities.opportunities.

ProductCost Development.of Productrevenue development expenses decreasedincreased $0.3 million, or 11%,4%, to $2.4$8.6 million for the threesix months ended MarchJune 31,30, 2026 from $2.7$8.3 million for the threesix months ended MarchJune 31,30, 2025. As a percentage of revenue, productcost developmentof expensesrevenue werewas 23%40% and 24%36% for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. TheDuring threethe six months ended MarchJune 31,30, 2026 includesdepreciation reorganizationcosts charges ofincreased $0.2 million related to severance. Inclusive of theand $0.2 million of reorganizationother chargescosts associated with customer pilot and other new revenue opportunities. The increase was offset by savings of $0.1 million realized as a result of the decreaseplatform wasmigration primarily attributable to $0.3 million in lower personnel and outside labor costs due the reorganization and realignment of our personnel that occurred in 2025 and 2026.activities.

GeneralSales and Administrative.Marketing. GeneralSales and administrativemarketing expenses decreased $1.0$0.9 million, or 32%,28%, to $2.1$2.3 million for the three months ended MarchJune 31,30, 2026 from $3.1$3.2 million for the three months ended MarchJune 31,30, 2025. As a percentage of revenue, generalsales and administrativemarketing expenses were 20%21% and 27% for the three months ended MarchJune 31,30, 2026 and 2025, respectively. TheDuring changethe fromthree priormonths yearended wasJune primarily30, attributable2026 to a decrease in personnelpayroll costs ofdecreased $0.9 million and share-based compensation of $0.2 million, largely due to reorganization charges that occurred in 2025 and reduced the payroll cost run-rate entering 2026.million.

Income Tax. Income tax expense was $0.2$0.1 million and $5.0 thousand for the three months ended June 30, 2026 and 2025, respectively. Income tax expense was $0.3 million and $0.1 million for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The income tax expense consists primarily of deferred tax expense and U.S. state income taxes. The effective tax rate differed from the expected tax rate of 21% in both years primarily due to the valuation allowance and, non-deductible stock-based compensation related to incentive stock options recorded under the fair-value method, and other non-deductible amounts.

At both MarchJune 31,30, 2026 and December 31, 2025, based on all the available evidence, both positive and negative, we determined that it is more likely than not that our deferred tax assets will not be realized and accordingly recorded a full valuation allowance.

As of MarchJune 31,30, 2026 and December 31, 2025, wethe Company had cash and cash equivalents of $9.0$8.2 million and $9.9 million, respectively. As of MarchJune 31,30, 2026, wethe Company had current and non-current contractual obligations of $6.0$1.7 million, of which $0.6$0.5 million is for payments due under our facility operating lease.

Cash used in operating activities was $0.5$1.2 million during the threesix months ended MarchJune 31,30, 2026. The cash used in operating activities was primarily a result of a net loss of $1.7$2.1 million, adjusted for an increase in cash due to non-cash items of $1.6$2.7 million, which primarily included depreciation, amortization, and stock-based compensation, partially offset by a decrease in cash due to changes in working capital of $0.4$1.8 million. The change in working capital was driven primarily by a decrease in accountsaccrued payablebenefits and an increase in accounts receivable and prepaid expenses,payroll, other currentaccrued assets,expenses, and other assets.liabilities. Cash used in operating activities was $2.6$1.8 million for the threesix months ended MarchJune 31,30, 2025. The cash used in operating activities was primarily a result of a net loss of $2.0$1.9 million adjusted for an increase in cash due to non-cash items of $1.1$2.2 million, which primarily included depreciation, amortization, losses on disposals, and stock-based compensation, and gain on a domain asset sale, offset by a decrease in cash due to changes in working capital of $1.7$2.1 million, which primarily included a decrease in accrued benefits and payroll, other accrued expenses, and other current liabilities and an increase in prepaid expenses, other current assets, and other assets, all partially offset by an increase in accounts receivable.payable.

Cash used in investing activities for the threesix months ended MarchJune 31,30, 2026 and 2025, was $0.4$0.7 million and $0.3$0.5 million, respectively. During the threesix months ended MarchJune 31,30, 2026 the cash used in investing activities was primarily attributable to software development costs for new products in development, partially offset by proceeds forfrom the prior year domain asset sale. During the threesix months ended MarchJune 31,30, 2025, the cash used in investing activities was also primarily attributable to software development costs for new products in development.development, partially offset by proceeds from the domain asset sale.

Cash from financing activities for the threesix months ended MarchJune 31,30, 2026 and 2025 was $2.0$0.1 thousandmillion and $0.2$0.1 million, respectively. During the threesix months ended MarchJune 31,30, 2026, the cash from financing activities was attributable to cash received from the exercise of stock options. During the threesix months ended MarchJune 31,30, 2025, the cash from financing activities was primarily attributable to cash received from the exercise of stock options, partially offset by payments made for equipment financing lease obligations.

There have been no significant changes in our critical accounting policies and estimates during the three and six months ended MarchJune 31,30, 2026, as compared to those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Form 10-K for the year ended December 31, 2025, filed with the SEC on March 26, 2026.