PagerDuty, Inc. 10-Q

Financial Statements (unaudited)

Item 1. Financial Statements PAGERDUTY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) July 31, 2026 January 31, 2026 Assets Current assets: Cash and cash equivalents $ 233,651 $ 237,402 Investments 236,392 232,436 Accounts receivable, net of allowance for credit losses of $ 838 and $ 1,175 as of July 31, 2026 and January 31, 2026, respectively 71,738 108,430 Deferred contract costs, current 18,351 18,401 Prepaid expenses and other current assets 18,983 15,570 Total current assets 579,115 612,239 Property and equipment, net 34,355 29,192 Deferred contract costs, non-current 24,982 25,010 Lease right-of-use assets 11,325 12,509 Goodwill 137,401 137,401 Intangible assets, net 13,765 15,645 Deferred tax assets 153,657 153,657 Other assets 3,719 4,862 Total assets $ 958,319 $ 990,515 Liabilities, redeemable non-controlling interest, and stockholders’ equity Current liabilities: Accounts payable $ 5,581 $ 6,718 Accrued expenses and other current liabilities 18,288 19,868 Accrued compensation 23,810 25,856 Deferred revenue, current 233,528 246,451 Lease liabilities, current 6,010 5,000 Total current liabilities 287,217 303,893 Convertible senior notes, net, non-current 396,930 395,729 Deferred revenue, non-current 2,462 2,483 Lease liabilities, non-current 9,877 12,598 Other liabilities 14,929 5,147 Total liabilities 711,415 719,850 Commitments and contingencies (Note 10) Redeemable non-controlling interest (Note 3) 14,943 17,072 Stockholders' equity Common stock — — Additional paid-in capital 649,436 679,410 Accumulated other comprehensive loss ( 1,128 ) ( 183 ) Accumulated deficit ( 408,729 ) ( 421,797 ) Treasury stock ( 7,618 ) ( 3,837 ) Total stockholders’ equity 231,961 253,593 Total liabilities, redeemable non-controlling interest, and stockholders' equity $ 958,319 $ 990,515 See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents PAGERDUTY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three months ended July 31, Six months ended July 31, 2026 2025 2026 2025 Revenue $ 124,436 $ 123,411 $ 245,403 $ 243,216 Cost of revenue 20,037 19,001 39,057 38,185 Gross profit 104,399 104,410 206,346 205,031 Operating expenses: Research and development 30,897 30,897 60,885 64,945 Sales and marketing 38,325 44,456 77,935 94,501 General and administrat