BlackLine Systems, Inc., is an American enterprise software company that develops cloud-based services designed to automate and manage the entire financial close process as well as consolidation, invoice-to-cash, and intercompany accounting. The Los Angeles–based company has 17 offices worldwide.3Wikipedia text CC BY-SA 4.0
BlackLine Systems, Inc., is an American enterprise software company that develops cloud-based services designed to automate and manage the entire financial close process as well as consolidation, invoice-to-cash, and intercompany accounting. The Los Angeles–based company has 17 offices worldwide.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Where each dollar of operating cash went, fiscal 2025
Share buybacks
Capital spending3¢$8.1M
Share buybacks97¢$235.5M
Out of $169.6M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.8
Financial statements
Revenue91011128$700.4M in 2025+142% since 2019Gross profit91011128$527.0M in 2025+129% since 2019Operating income91011128$25.6M in 2025Net income91011128$24.5M in 2025
Revenue1314$187.8M in Q2 FY2026+3% since Q1 FY2026Gross profit1314$142.7M in Q2 FY2026+3% since Q1 FY2026Operating income1314$11.0M in Q2 FY2026+76% since Q1 FY2026Net income1314$16.5M in Q2 FY2026+103% since Q1 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
Total revenues
$700.4M
$653.3M
$590.0M
Total cost of revenues
$173.4M
$162.0M
$146.8M
Gross profit
$527.0M
$491.4M
$443.2M
Sales and marketing
$258.9M
$248.3M
$243.2M
Research and development
$109.2M
$101.0M
$103.2M
General and administrative
$118.7M
$121.8M
$71.5M
Restructuring costs
$14.6M
$1.7M
$11.0M
Total operating expenses
$501.5M
$472.8M
$428.9M
Income from operations
$25.6M
$18.5M
$14.3M
Interest income
$32.8M
$49.8M
$52.1M
Interest expense
-$10.1M
-$8.8M
-$5.9M
Gain on extinguishment of convertible senior notes
$0
$65.1M
$0
Other income, net
$22.7M
$106.2M
$46.2M
Income before income taxes
$48.2M
$124.7M
$60.5M
Provision for (benefit from) income taxes
$21.0M
-$43.1M
$1.4M
Net income
$27.3M
$167.8M
$59.1M
Net income attributable to redeemable non-controlling interest (Note 4)
$3.1M
$2.0M
$892.0K
Adjustment attributable to redeemable non-controlling interest (Note 4)
-$347.0K
$4.6M
$5.3M
Net income attributable to BlackLine, Inc.
$24.5M
$161.2M
$52.8M
Basic net income per share attributable to BlackLine, Inc. (in usd per share)
$0.40
$2.59
$0.87
Shares used to calculate basic net income per share (in shares)
61.4M shares
62.1M shares
60.8M shares
Diluted net income per share attributable to BlackLine, Inc. (in usd per share)
$0.39
$1.45
$0.81
Shares used to calculate diluted net income per share (in shares)
65.9M shares
73.5M shares
72.0M shares
No quarter-by-quarter statement was filed.
Total assets1591011128$1.8B in 2025+73% since 2019Total liabilities1591011128$1.4B in 2025+127% since 2019Shareholders’ equity1011128$332.3M in 2025−17% since 2019Cash91011128$390.0M in 2025+224% since 2019
Total assets1314$1.5B in Q2 FY2026−17% since Q1 FY2025Total liabilities1314$1.1B in Q2 FY2026−19% since Q1 FY2025Shareholders’ equity1314$316.2M in Q2 FY2026−5% since Q1 FY2025Cash1314$242.9M in Q2 FY2026−38% since Q1 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$390.0M
$885.9M
$271.1M
Marketable securities (amortized cost of $387,936 and $0 at December 31, 2025 and 2024, respectively)
$388.2M
$0
Accounts receivable, net of allowances of $2,970 and $2,964 at December 31, 2025 and 2024, respectively
$218.1M
$178.1M
Prepaid expenses and other current assets
$28.9M
$28.3M
Total current assets
$1.0B
$1.1B
Capitalized software development costs, net
$49.5M
$45.4M
Property and equipment, net
$13.3M
$11.8M
Intangible assets, net
$49.4M
$59.5M
Goodwill
$465.8M
$449.0M
$449.0M
Operating lease right-of-use assets
$22.8M
$22.8M
Deferred tax assets, net
$39.3M
$53.2M
Other assets
$94.3M
$90.9M
Total assets
$1.8B
$1.8B
Accounts payable
$15.5M
$8.5M
Accrued expenses and other current liabilities
$76.8M
$71.6M
Deferred revenue, current
$368.6M
$338.6M
Finance lease liabilities, current
$12.0K
$66.0K
Operating lease liabilities, current
$4.4M
$3.5M
Convertible senior notes, net, current
$230.0M
$0
Total current liabilities
$695.4M
$422.2M
Finance lease liabilities, noncurrent
$40.0K
$53.0K
Operating lease liabilities, noncurrent
$19.9M
$20.3M
Convertible senior notes, net, noncurrent
$666.0M
$892.7M
Deferred tax liabilities, net
$5.2M
$4.5M
Deferred revenue, noncurrent
$922.0K
$1.4M
Other long-term liabilities
$593.0K
$708.0K
Total liabilities
$1.4B
$1.3B
Redeemable non-controlling interest (Note 4)
$39.1M
$36.5M
$30.1M
$23.9M
Common stock, $0.01 par value, 500,000,000 shares authorized, 59,880,563 and 62,813,352 issued and outstanding at December 31, 2025 and 2024, respectively
$599.0K
$628.0K
Additional paid-in capital
$356.8M
$495.4M
Accumulated other comprehensive loss
-$296.0K
-$361.0K
Accumulated deficit
-$24.8M
-$49.0M
Total stockholders' equity
$332.3M
$446.7M
$260.9M
$111.9M
Total liabilities, redeemable non-controlling interest, and stockholders' equity
$1.8B
$1.8B
Amortized cost
$387.9M
$0
Allowances for doubtful accounts
$3.0M
$3.0M
Common stock, par value (in usd per share)
$0.01
$0.01
Common stock, shares authorized (in shares)
500.0M shares
500.0M shares
Common stock, shares issued (in shares)
59.9M shares
62.8M shares
Common stock, shares outstanding (in shares)
59.9M shares
62.8M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$390.0M
$885.9M
$271.1M
Marketable securities (amortized cost of $387,936 and $0 at December 31, 2025 and 2024, respectively)
$388.2M
$0
Accounts receivable, net of allowances of $2,970 and $2,964 at December 31, 2025 and 2024, respectively
$218.1M
$178.1M
Prepaid expenses and other current assets
$28.9M
$28.3M
Total current assets
$1.0B
$1.1B
Capitalized software development costs, net
$49.5M
$45.4M
Property and equipment, net
$13.3M
$11.8M
Intangible assets, net
$49.4M
$59.5M
Goodwill
$465.8M
$449.0M
$449.0M
Operating lease right-of-use assets
$22.8M
$22.8M
Deferred tax assets, net
$39.3M
$53.2M
Other assets
$94.3M
$90.9M
Total assets
$1.8B
$1.8B
Accounts payable
$15.5M
$8.5M
Accrued expenses and other current liabilities
$76.8M
$71.6M
Deferred revenue, current
$368.6M
$338.6M
Finance lease liabilities, current
$12.0K
$66.0K
Operating lease liabilities, current
$4.4M
$3.5M
Convertible senior notes, net, current
$230.0M
$0
Total current liabilities
$695.4M
$422.2M
Finance lease liabilities, noncurrent
$40.0K
$53.0K
Operating lease liabilities, noncurrent
$19.9M
$20.3M
Convertible senior notes, net, noncurrent
$666.0M
$892.7M
Deferred tax liabilities, net
$5.2M
$4.5M
Deferred revenue, noncurrent
$922.0K
$1.4M
Other long-term liabilities
$593.0K
$708.0K
Total liabilities
$1.4B
$1.3B
Redeemable non-controlling interest (Note 4)
$39.1M
$36.5M
$30.1M
$23.9M
Common stock, $0.01 par value, 500,000,000 shares authorized, 59,880,563 and 62,813,352 issued and outstanding at December 31, 2025 and 2024, respectively
$599.0K
$628.0K
Additional paid-in capital
$356.8M
$495.4M
Accumulated other comprehensive loss
-$296.0K
-$361.0K
Accumulated deficit
-$24.8M
-$49.0M
Total stockholders' equity
$332.3M
$446.7M
$260.9M
$111.9M
Total liabilities, redeemable non-controlling interest, and stockholders' equity
$1.8B
$1.8B
Amortized cost
$387.9M
$0
Allowances for doubtful accounts
$3.0M
$3.0M
Common stock, par value (in usd per share)
$0.01
$0.01
Common stock, shares authorized (in shares)
500.0M shares
500.0M shares
Common stock, shares issued (in shares)
59.9M shares
62.8M shares
Common stock, shares outstanding (in shares)
59.9M shares
62.8M shares
Cash from operations91011128$169.6M in 2025+470% since 2019Capital spending91011128$8.1M in 2025+74% since 2019Free cash flow91011128$161.5M in 2025+544% since 2019Share buybacks8$235.5M in 2025
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
Net income attributable to BlackLine, Inc.
$24.5M
$161.2M
$52.8M
Net income and adjustment attributable to redeemable non-controlling interest (Note 4)
$2.7M
$6.6M
$6.2M
Net income
$27.3M
$167.8M
$59.1M
Depreciation and amortization
$46.5M
$50.3M
$50.1M
Change in fair value of contingent consideration
$0
$0
-$33.5M
Amortization of debt issuance costs
$3.4M
$4.5M
$5.5M
Stock-based compensation
$92.6M
$83.3M
$78.0M
Gain on extinguishment of convertible senior notes
$0
-$65.1M
$0
Noncash lease expense
$5.9M
$6.2M
$6.5M
Accretion of purchase discounts on marketable securities, net
-$11.7M
-$18.4M
-$33.9M
Net foreign currency losses
$605.0K
$279.0K
$853.0K
Deferred income taxes
$15.0M
-$54.8M
-$1.5M
Provision for (benefit from) credit losses
$107.0K
$84.0K
-$18.0K
Accounts receivable
-$38.2M
-$7.6M
-$20.9M
Prepaid expenses and other current assets
-$251.0K
$2.7M
-$6.6M
Other assets
-$3.7M
$2.5M
-$595.0K
Accounts payable
$5.3M
-$1.1M
-$5.1M
Accrued expenses and other current liabilities
$3.2M
$7.1M
-$924.0K
Deferred revenue
$29.2M
$19.0M
$41.3M
Contingent consideration paid in excess of original estimates
$0
$0
-$2.4M
Operating lease liabilities
-$5.9M
-$6.0M
-$7.2M
Lease incentive receipts
$30.0K
$0
$240.0K
Other long-term liabilities
-$77.0K
$96.0K
-$2.2M
Net cash provided by operating activities
$169.6M
$190.8M
$126.6M
Purchases of marketable securities
-$747.6M
-$396.1M
-$1.3B
Proceeds from maturities of marketable securities
$373.0M
$1.0B
$1.3B
Proceeds from sales of marketable securities
$200.0K
$324.1M
$0
Capitalized software development costs
-$26.6M
-$24.7M
-$21.6M
Purchases of property and equipment
-$8.1M
-$2.1M
-$6.0M
Acquisition, net of cash acquired
-$16.2M
$0
-$11.4M
Net cash provided by (used in) investing activities
-$425.3M
$924.4M
-$62.5M
Proceeds from issuance of convertible senior notes, net of issuance costs
$0
$662.0M
$0
Partial repurchase of convertible senior notes
$0
-$848.5M
$0
Repayment of convertible senior notes
$0
-$250.0M
$0
Purchase of capped calls related to convertible senior notes
$0
-$59.7M
$0
Principal payments under finance lease obligations
-$66.0K
-$999.0K
-$990.0K
Repurchases of common stock
-$235.5M
$0
Proceeds from exercises of stock options
$5.2M
$7.6M
$19.8M
Proceeds from employee stock purchase plan
$7.2M
$7.0M
$8.0M
Acquisition of common stock for tax withholding obligations
-$16.9M
-$17.5M
-$15.0M
Payment of contingent consideration for the 2013 Acquisition
$0
$0
-$5.6M
Net cash provided by (used in) financing activities
-$240.1M
-$500.1M
$6.1M
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash
-$92.0K
-$347.0K
-$120.0K
Net increase (decrease) in cash, cash equivalents, and restricted cash
-$495.9M
$614.8M
$70.2M
Cash paid for interest
$6.8M
$3.8M
$313.0K
Stock-based compensation capitalized for software development
$4.7M
$4.5M
$3.5M
Capitalized software development costs included in accounts payable and accrued expenses and other current liabilities at end of period
$2.0M
$2.8M
$1.5M
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities at end of period
$1.7M
$2.4M
$60.0K
Accrued liabilities for business acquisition purchase consideration holdback
$1.7M
$0
$0
Issuance of common stock for acquisition
$5.4M
$0
$0
Leased assets obtained in exchange for new financing lease liabilities
$0
$385.0K
$0
Leased assets obtained in exchange for new operating lease liabilities
BlackLine sits at the top of its group. 15 entities, 7 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
BlackLine Intermediate, Inc. Subsidiary · Delaware, United States
BlackLine International B.V. Subsidiary · Netherlands
BlackLine K.K. Subsidiary · Japan
BlackLine Modern Accounting Solutions, S. de R.L. de C.V. Subsidiary · Mexico
BlackLine Sp. z.o.o. Subsidiary · Poland
BlackLine Systems Development & Services Private Limited Subsidiary · India
BLACKLINE SYSTEMS, INC. Subsidiary · Los Angeles, California, United States
BlackLine WL, LLC Subsidiary · Delaware, United States
Data Interconnect Ltd. Subsidiary · United Kingdom
FourQ Systems Inc. Subsidiary · Delaware, United States
FourQ Systems International LLC Subsidiary · Delaware, United States
Rimilia Holdings Ltd. Subsidiary · United Kingdom
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What BlackLine reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our principal executive offices are located in Woodland Hills, California where we occupy approximately 89,000 square feet of space under a lease that expires in January 2029. We have additional offices in North America, Europe, and the Asia-Pacific region. We believe that our properties are generally suitable to meet our
needs for the foreseeable future. In addition, to the extent we require additional space in the future, we believe that it would be readily available on commercially reasonable terms.
BlackLine was founded in 2001 by Therese Tucker, a former CTO at SunGard Treasury Systems. The initial goal was to help customers replace their use of Excel with a suite of accounting software.
The company functioned with no outside funding until 2013 when the private equity firm, Silver Lake Partners invested more than $200 million in the company.
BlackLine reached an agreement to form a strategic alliance with the financial consulting firm McGladrey, in 2015. As part of the alliance, the companies began offering a business process as a service (BPaaS) platform.
The company's IPO was October 28, 2016; they're listed on the Nasdaq under the symbol BL.
Runbook acquisition
In September 2016, the company acquired its European competitor, Runbook for $34 million.
Runbook marketed a dashboard software application program for SAP; before it was acquired by BlackLine.
The software's "automation of recurring financial processes" adds "visibility and transparency" and strengthens "internal controls and compliance documentation" of data maintained by SAP.
SAP agreement
In 2018 BlackLine reached an agreement with SAP for the latter "to resell BlackLine's.. cloud-based finance and accounting solutions" as part of "SAP Solution Extensions."
Read the full text
Rimilia acquisition
In October 2020, the company acquired UK-based accounts receivable automation company Rimilia for $150 million.
Rimilia's cloud-based SaaS platform "uses AI to accurately apply payments to customer's invoices with any ERP system".
WiseLayer
In December 2025, it was announced that BlackLine had acquired WiseLayer, a New York–based artificial intelligence company specialising in AI agents for automating accounting processes. The transaction, for which financial terms were not disclosed, was intended to support the integration of AI-driven capabilities into BlackLine’s financial operations software.
BlackLine provides software for more than 4,400 companies including Costco, Netflix, Coca-Cola, JetBlue Airways, Google, Kraft Heinz, Under Armour, Sirius XM Holdings. The company creates enhanced financial controls, in contrast to basic general ledger applications. BlackLine's software manages financial data, reconciles balances from sub-systems, ensures accurate and complete closings, and monitors regulatory controls through a system known as continuous auditing. The company's software is cloud-based, primarily running on the Google Cloud Platform, and meets ISO 27001 standards.
Feb 11, 2025Reported quarterly or annual results70
Jan 13, 2025Reported quarterly or annual results71
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
518 filings to the SEC since October 2021: 6 annual reports, 15 quarterly reports, 55 major events, 341 insider forms, 22 large holders, 79 other. The latest 20:
104 open-market trades by officers, directors and large owners since October 2021: 5 buys and 99 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Feb 26, 2026 (Section 12(b) of the Exchange Act).16
Risk factors and legal proceedings
The risks BlackLine names in Item 1A of its 10-K filed Feb 26, 2026: 54 risks under these headings, as written.16
Risks Related to Our Business and Industry
If we are unable to attract new customers and expand sales to existing customers, our growth could be slower than we expect and our business may be harmed.
Our business and growth depend substantially on customers renewing their subscription agreements with us and any decline in our customer renewals could adversely affect our operating results.
Economic uncertainty and other unfavorable conditions in our industry or the global economy could limit our ability to grow our business and negatively affect our operating results.
If we fail to manage growth in our operations and organizational change effectively, we may be unable to execute our business plan.
If we are not able to provide successful enhancements, new features or modifications to our software solutions, our business could be adversely affected.
We derive substantially all of our revenues from a limited number of software solutions, and our growth is dependent on their success.
If our security controls are breached or unauthorized, or inadvertent access to customer, employee or other confidential data is otherwise obtained, our software solutions may be perceived as insecure, we may lose existing customers or fail to attract new customers, our business may be harmed and we may incur significant liabilities.
Our increased focus on the development and use of generative artificial intelligence and machine learning technologies in our platform and our business, or any failure to effectively implement, use, and market these technologies, may result in reputational harm or liability, or could otherwise adversely affect our business.
Interruptions or performance problems associated with our software solutions, platform and technology may adversely affect our business and operating results.
If our software contains serious errors or defects, we may lose revenue and market acceptance and may incur costs to defend or settle product liability claims.
We depend on our executive officers and other key employees and the loss of one or more of these employees or an inability to attract and retain highly-skilled employees could adversely affect our business.
The other 43 risks
If our industry does not continue to develop as we anticipate or if potential customers do not continue to adopt our platform, our sales will not grow as quickly as expected, or at all, and our business and operating results and financial condition would be adversely affected.
The market in which we participate is intensely competitive, and if we do not compete effectively, our operating results could be harmed.
Failure to effectively organize and motivate our sales resources could harm our ability to increase our customer base.
If we are not able to maintain and enhance our brand, our business, operating results and financial condition may be adversely affected.
We may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of these transactions and other strategic transactions.
Incorrect or improper implementation or use of our solutions could result in customer dissatisfaction and negatively affect our business, results of operations, financial condition, and growth prospects.
Any failure to offer high-quality product support may adversely affect our relationships with our customers and our financial results.
We provide service level commitments under our customer contracts, and if we fail to meet these contractual commitments, our revenues could be adversely affected.
Risks Related to Our Financial Performance or Results
We may not be able to sustain or increase profitability in the future.
Our quarterly results may fluctuate, and if we fail to meet the expectations of analysts or investors, our stock price and the value of your investment could decline substantially.
Our financial results may fluctuate due to our long and increasingly variable sales cycle.
We recognize subscription revenue over the term of our customer contracts and, consequently, downturns or upturns in new sales may not be immediately reflected in our operating results and may be difficult to discern.
We face exposure to foreign currency exchange rate fluctuations that could harm our results of operations.
If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.
Our ability to use our net operating losses to offset future taxable income may be subject to limitations.
Risks Related to Our Dependence on Third Parties
If our relationships with technology vendors and business process outsourcers are not successful, our business and growth will be harmed.
We rely on third-party computer hardware and software that may cause errors or failure of our software solutions, or may be difficult to replace.
We rely on Google Cloud Platform (“GCP”), Microsoft Azure (“Azure”), Amazon Web Services (“AWS”), Snowflake, and third-party data centers (collectively, “public cloud providers”) to deliver our cloud-based software solutions, and any disruption of our use of public cloud providers could negatively impact our operations and harm our business.
We depend and rely upon SaaS applications from third parties to operate our business and provide our software solutions, and interruptions, outages, or performance problems with these technologies may adversely affect our business and operating results.
If we are unable to develop and maintain successful relationships with resellers, our business, operating results and financial condition could be adversely affected.
Risks Related to Our Legal and Regulatory Environment
Our long-term success depends, in part, on our ability to expand the sales of our solutions to customers located outside of the U.S., and thus our business is susceptible to risks associated with international sales and operations.
Privacy and cybersecurity concerns, customer expectations, and evolving domestic or foreign laws and regulations, including increased regulation of cloud offerings and restrictions of cross-border data transfers, may limit or reduce the adoption of our services, result in significant costs and compliance challenges, and adversely affect our business.
We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in full compliance with applicable laws.
Changes in laws and regulations related to the internet and cloud computing or changes to internet infrastructure may diminish the demand for our solutions and could have a negative impact on our business.
Our international operations may subject us to potentially adverse tax consequences.
The enactment of legislation implementing changes in the U.S. and global taxation of international business activities or the adoption of other tax reform policies could materially impact our financial position and results of operations.
Taxing authorities may successfully assert that we should have collected, or in the future should collect, sales and use, value-added or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our results of operations.
Risks Related to Our Intellectual Property
Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
Lawsuits or other claims by third parties for alleged infringement of their proprietary rights could cause us to incur significant expenses or liabilities.
We use open source software in our products, which could subject us to litigation or other actions.
Risks Related to Ownership of Our Common Stock
The market price of our common stock may be volatile, and you could lose all or part of your investment.
Provisions of our corporate governance documents could make an acquisition of BlackLine more difficult and may impede attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders.
We do not intend to pay dividends on our common stock so any returns will be limited to changes in the value of our common stock.
Our amended and restated bylaws designate a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
Risks Related to Our Outstanding Convertible Senior Notes
Servicing our Notes may require a significant amount of cash and we may not have sufficient cash to settle conversions of the Notes in cash, to repurchase the Notes upon a fundamental change, or to repay the principal amount of the Notes in cash at their maturity, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
Our current and future indebtedness may limit our operating flexibility or otherwise affect our business.
The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and operating results.
The Capped Calls may affect the value of our common stock and we are subject to counterparty risk with respect to the Capped Calls.
General Risk Factors
We may require additional capital to support business growth, and this capital may not be available on acceptable terms, if at all.
The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members.
If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
We may fail to maintain an effective system of internal control over financial reporting in the future and may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and the price of our common stock.
Natural disasters, climate change, and other events beyond our control could harm our business.
Legal proceedings
From time to time, we may be subject to legal proceedings, including claims, litigation, investigations, and inquiries arising in the ordinary course of business. In addition, from time to time, third parties may assert intellectual property infringement claims against us in the form of letters and other forms of communication. As of the date of this Annual Report on Form 10-K for the year ended December 31, 2025, we are not a party to any litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our results of operations, prospects, cash flows, financial position or brand.
