Inspire(INSP) - 2025 Q2 - Quarterly Report

FORWARD-LOOKING STATEMENTS This section outlines the report's forward-looking statements and associated risks and uncertainties - The report contains forward-looking statements covered by safe harbor provisions, including future financial results, business strategy, product approvals, reimbursement expectations, R&D costs, and sales initiatives[8] - Key risks and uncertainties include operating losses, dependency on the Inspire system, market acceptance, reimbursement levels, competition, ability to expand indications, supply chain disruptions, and macroeconomic conditions[9][13] PART I. FINANCIAL INFORMATION This part contains the company's unaudited interim financial statements and management's analysis Item 1. Financial Statements This section presents the unaudited consolidated financial statements and accompanying notes Balance Sheets This section details the company's assets, liabilities, and stockholders' equity at specific points in time Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Assets | | | | Cash and cash equivalents | $106,927 | $150,150 | | Investments, short-term | $193,968 | $295,396 | | Accounts receivable, net | $137,687 | $93,068 | | Inventories, net | $121,633 | $80,118 | | Total current assets | $573,189 | $630,806 | | Total assets | $802,193 | $808,383 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $93,359 | $88,501 | | Total liabilities | $124,379 | $118,688 | | Total stockholders' equity | $677,814 | $689,695 | | Total liabilities and stockholders' equity | $802,193 | $808,383 | - Total assets decreased slightly from $808.4 million at December 31, 2024, to $802.2 million at June 30, 2025, driven by reductions in cash and short-term investments[17] - Accounts receivable and inventories increased significantly, indicating higher sales activity and inventory build-up[17] Statements of Operations and Comprehensive Income (Loss) This section reports the company's revenues, expenses, and resulting profit or loss over specific periods Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $217,086 | $195,885 | $418,403 | $359,895 | | Cost of goods sold | $34,672 | $29,843 | $65,381 | $54,600 | | Gross profit | $182,414 | $166,042 | $353,022 | $305,295 | | Operating (loss) income | $(3,316) | $5,099 | $(4,801) | $(10,119) | | Net income (loss) | $(3,592) | $9,793 | $(600) | $(212) | | Basic net income (loss) per share | $(0.12) | $0.33 | $(0.02) | $(0.01) | | Diluted net income (loss) per share | $(0.12) | $0.32 | $(0.02) | $(0.01) | - Revenue increased by 10.8% for the three months and 16.3% for the six months ended June 30, 2025, compared to the prior year periods[20] - The company reported a net loss of $3.6 million for Q2 2025, a significant decline from a net income of $9.8 million in the same period last year[20] Statements of Stockholders' Equity This section shows changes in the company's equity from net income, share repurchases, and other activities Consolidated Statements of Stockholders' Equity (in thousands) | Item | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :------------------------------------ | :---------------------- | :--------------------- | | Total Stockholders' Equity | $689,695 | $677,814 | | Common Stock (shares) | 29,740,176 | 29,569,477 | | Additional Paid-In Capital | $981,043 | $969,903 | | Accumulated Deficit | $(291,914) | $(292,514) | | Net income (loss) for the period | N/A | $(3,592) | | Share repurchase of common stock | N/A | $(75,009) | | Stock-based compensation expense | N/A | $72,780 | | Stock options exercised | N/A | $8,615 | - Total stockholders' equity decreased from $689.7 million to $677.8 million, primarily due to share repurchases and net loss[22] - The company repurchased 442,649 shares for $75.0 million during the first half of 2025 under its share repurchase program[22][103] Statements of Cash Flows This section summarizes cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows (in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(4,019) | $8,782 | | Net cash provided by (used in) investing activities | $45,009 | $(13,915) | | Net cash (used in) provided by financing activities | $(84,063) | $7,855 | | Net (decrease) increase in cash and cash equivalents | $(43,223) | $2,498 | | Cash and cash equivalents at end of period | $106,927 | $188,035 | - Operating activities shifted from providing $8.8 million in cash in H1 2024 to using $4.0 million in H1 2025[28][211] - Investing activities provided $45.0 million in H1 2025, a significant improvement from using $13.9 million in H1 2024[28][213] - Financing activities used $84.1 million in H1 2025, largely due to $75.0 million in share repurchases[28][216] Notes to Financial Statements This section provides detailed disclosures and explanations of the company's accounting policies and figures 1. Organization This note describes the company's business, products, and markets - Inspire Medical Systems, Inc is a medical technology company specializing in minimally invasive solutions for obstructive sleep apnea (OSA)[30] 2. Summary of Significant Accounting Policies This note outlines the key accounting principles and methods used in preparing the financial statements - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim reporting[31] - The company's functional and reporting currency is the U.S. dollar[35] - Investments are classified as available-for-sale and reported at fair value[38][40][41] - Fair value measurements are categorized into a three-tier hierarchy (Level 1, 2, 3) based on input observability[42][43][44][45][47][49] - Credit risk is mitigated by investing in high-quality debt securities and a diversified customer base[51][52][53][54] - Inventories are valued at the lower of cost or net realizable value (FIFO basis), with a reserve for excess and obsolete inventory of $1.9 million as of June 30, 2025[57][58] - Property and equipment are stated at cost less accumulated depreciation[59][61] - An impairment charge of $4.0 million was recognized on strategic investments in H1 2025[62] - Revenue from product sales is recognized when the customer obtains control, typically upon shipment[67][68][69][71][72] - Cost of goods sold includes acquisition costs, overhead, scrap, inventory obsolescence, and warranty replacement costs[74][75][76] - Stock-based compensation expense is recognized on a straight-line basis over the service period[77][78][79] - Operating leases are recognized on the balance sheet as ROU assets and liabilities[81][83] - A full valuation allowance is maintained against deferred tax assets due to cumulative net loss[84] - Comprehensive income (loss) includes net income (loss) and changes in unrealized gains/losses on investments and currency translation[85] - Basic and diluted net income (loss) per share are calculated, with dilutive shares excluded during net loss periods[86] - The company is evaluating the impact of new accounting pronouncements ASU 2023-09 and ASU 2024-03[87][90] 3. Leases This note details the company's operating lease agreements, assets, and liabilities - The company leases approximately 106,000 sq ft for its corporate headquarters through May 2035[92] - An additional warehouse and office space lease for 22,000 sq ft was entered through May 2035[93] Lease Balances (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Operating lease right-of-use assets | $24,524 | $23,314 | | Total operating lease liabilities | $33,059 | $31,793 | | Remaining lease terms (weighted average) | 9.9 years | N/A | | Weighted average discount rate | 4.9% | N/A | 4. Employee Retirement Plan This note describes the company's defined contribution 401(k) plan and matching contributions - The company sponsors a defined contribution plan, matching 50% of the first 6% of employee contributions[97][99] - Matching contributions totaled $3.3 million for H1 2025, up from $2.6 million in H1 2024[99] 5. Stockholders' Equity This note provides details on the company's share repurchase program - In August 2024, the Board authorized a $150.0 million share repurchase program[100] - An accelerated share repurchase (ASR) agreement in November 2024 resulted in the repurchase of 409,043 shares[101][102] - During H1 2025, an additional 442,649 shares were purchased for $75.0 million, leaving no amount available for future repurchases[103] 6. Stock-Based Compensation This note details the company's equity incentive plans, including options, RSUs, PSUs, and the ESPP - As of June 30, 2025, 1,376,932 shares were available for issuance under the equity incentive plan[104] - $11.2 million in accelerated expense was recorded in Q2 2025 for retirement-eligible employees due to policy changes[105][106] - Stock options have a four-year service period, vesting 25% after the first year and monthly thereafter[109] Stock Option Activity (in thousands, except shares) | Item | Options | Weighted Average Exercise Price | | :------------------------------------ | :-------- | :------------------------------ | | Outstanding at December 31, 2024 | 2,160,149 | $168.33 | | Exercised (H1 2025) | (118,184) | $73.96 | | Forfeited/expired (H1 2025) | (53,993) | $228.35 | | Outstanding at June 30, 2025 | 1,987,972 | $172.27 | | Unearned stock-based compensation (June 30, 2025) | N/A | $41.8 million | | Weighted average recognition period | N/A | 1.6 years | - Restricted Stock Units (RSUs) vest over three or four years for employees and one or three years for directors[116] Restricted Stock Units Activity (in thousands, except shares) | Item | Restricted Stock Units | Weighted Average Grant Date Fair Value | | :------------------------------------ | :--------------------- | :------------------------------------- | | Unvested at December 31, 2024 | 679,905 | $195.63 | | Granted (H1 2025) | 579,469 | $182.09 | | Vested (H1 2025) | (201,502) | $205.09 | | Forfeited (H1 2025) | (42,073) | $190.92 | | Unvested at June 30, 2025 | 1,015,799 | $186.21 | | Unearned stock-based compensation (June 30, 2025) | N/A | $152.1 million | | Weighted average recognition period | N/A | 2.1 years | - Performance Stock Units (PSUs) are earned based on performance against pre-established three-year goals[119] Performance Stock Units Activity (in thousands, except shares) | Item | Performance Stock Units | Weighted Average Grant Date Fair Value | | :------------------------------------ | :---------------------- | :------------------------------------- | | Unvested at December 31, 2024 | 323,302 | $220.82 | | Granted (H1 2025) | 236,333 | $199.70 | | Vested (H1 2025) | (143,518) | $228.48 | | Forfeited (H1 2025) | (24,459) | $223.34 | | Unvested at June 30, 2025 | 391,658 | $205.20 | | Unrecognized stock-based compensation (June 30, 2025) | N/A | $47.2 million | | Weighted average recognition period | N/A | 1.9 years | - The Employee Stock Purchase Plan (ESPP) allows employees to purchase stock at a 15% discount[121] 7. Income Taxes This note discusses the company's income tax expense, deferred tax assets, and valuation allowance - A full valuation allowance is recorded against all deferred tax assets due to the company's cumulative net loss position[122][126] Income Tax Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, | $1,260 | $1,053 | | Six Months Ended June 30, | $2,427 | $1,703 | - As of December 31, 2024, the company had $51.2 million in federal NOL carryforwards and $88.0 million in state NOL carryforwards[123] - An analysis confirmed that a 2018 ownership change did not cause federal NOLs or R&D credits to expire unused[125] - The company is evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA)[127] 8. Segment Reporting and Revenue Disaggregation This note provides revenue and asset data by geographic region, confirming a single operating segment - The company operates as a single operating segment[129] - The Chief Operating Decision Maker (CODM) uses consolidated net income (loss) to assess performance[130] Revenue by Geographic Region (in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $207,150 | $187,808 | $400,756 | $343,579 | | All other countries | $9,936 | $8,077 | $17,647 | $16,316 | | Total revenue | $217,086 | $195,885 | $418,403 | $359,895 | - U.S. revenue accounted for 95.8% of total revenue in H1 2025, showing continued strong domestic focus[135] Long-lived Tangible Assets by Geographic Location (in thousands) | Region | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | United States | $84,397 | $71,008 | | All other countries | $877 | $917 | | Total | $85,274 | $71,925 | 9. Income (Loss) Per Share This note presents the calculation of basic and diluted net income (loss) per share Net Income (Loss) Per Share | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(3,592) | $9,793 | $(600) | $(212) | | Basic EPS | $(0.12) | $0.33 | $(0.02) | $(0.01) | | Diluted EPS | $(0.12) | $0.32 | $(0.02) | $(0.01) | | Weighted average shares outstanding (basic) | 29,506,807 | 29,728,849 | 29,604,043 | 29,672,006 | | Weighted average shares outstanding (diluted) | 29,506,807 | 30,408,439 | 29,604,043 | 29,672,006 | - For periods with a net loss, diluted net loss per share is the same as basic because all potentially dilutive shares were antidilutive[138] Antidilutive Common Stock-Based Awards Excluded from Diluted EPS | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options | 1,794,133 | 1,536,085 | 1,849,317 | 2,187,189 | | Restricted stock units | 897,705 | 105,622 | 592,677 | 102,969 | | Total | 2,691,838 | 1,641,707 | 2,441,994 | 2,290,158 | 10. Related Party Transaction This note discloses a cost-sharing agreement with an entity controlled by the company's CEO - The company entered a cost-sharing agreement with an entity controlled by its CEO for a corporate suite at a sports venue[140][142] - Expense recognized for the suite was less than $0.1 million for Q2 2025 and $0.1 million for H1 2025[142] 11. Commitments and Contingencies This note details ongoing legal proceedings, including class actions, government investigations, and patent litigation - The company is involved in various claims and litigation in the ordinary course of business[143] - A federal securities class action lawsuit was dismissed with prejudice on March 24, 2025[144] - A related stockholder derivative lawsuit was voluntarily dismissed on September 5, 2024[145] - On January 17, 2025, the company received a Civil Investigative Demand (CID) from the Department of Justice[146] - On May 30, 2025, Inspire initiated a patent infringement lawsuit against Nyxoah SA and Nyxoah, Inc[147][149] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management provides its perspective on financial condition, operational results, and key business developments Overview This section provides a high-level summary of the company's business, products, market, and recent performance - Inspire Medical Systems is a medical technology company focused on minimally invasive solutions for obstructive sleep apnea (OSA)[151] - The company sells its Inspire system to hospitals and ASCs in the U.S, Europe, and Japan through a direct sales force[152] - Inspire therapy is covered by major U.S commercial payors, representing over 300 million lives[153] - For H1 2025, 95.8% of revenue was from the U.S and 4.2% from outside the U.S[154] - The company relies on third-party single-source suppliers and maintains higher inventory levels to mitigate supply disruptions[155][156] Financial Performance Summary (in thousands) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Revenue | $217,100 | $195,900 | $418,400 | $359,900 | | Gross Margin | 84.0% | 84.8% | 84.4% | 84.8% | | Net Income (Loss) | $(3,600) | $9,800 | $(600) | $(200) | | Accumulated Deficit (as of June 30, 2025) | $(292,500) | N/A | N/A | N/A | - The launch of the next-generation Inspire V system in May 2025 is expected to impact revenue through the end of 2025[159][160] - Direct-to-consumer marketing efforts are being refined and expanded to increase patient awareness[161][162] - The sales and marketing organization is expanding, with 348 U.S. sales territories as of June 30, 2025[163] - The rise of GLP-1 drugs for OSA may reduce demand in some patients but could also increase the number of eligible patients[164] Macroeconomic Environment This section discusses the potential impact of global economic conditions on the company's business - The global economy faces increased inflationary pressures and market instability[165] - These conditions may lead to customers decreasing or delaying product orders[166] Components of Our Results of Operations This section breaks down the key drivers of the company's revenue and expenses - Revenue is primarily derived from sales of the Inspire system to hospitals and ASCs[167] - Revenue has historically experienced seasonality, with higher sales in Q4 and lower sales in Q1[168][178] - Gross margin is affected by manufacturing costs, selling prices, and inventory obsolescence[170][171] - R&D expenses are expected to increase with the development of next-generation products[174] - SG&A expenses are projected to rise due to expansion of commercial infrastructure and increased headcount[176] - Other income, net, primarily consists of interest income and foreign currency impacts[177] Results of Operations This section provides a detailed comparison of financial results for recent periods Comparison of the Three Months Ended June 30, 2025 and 2024 This subsection analyzes the financial performance for the second quarter of 2025 versus 2024 Key Financials (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :----- | :----- | :------- | :------- | | Revenue | $217,086 | $195,885 | $21,201 | 10.8% | | Cost of goods sold | $34,672 | $29,843 | $4,829 | 16.2% | | Gross profit | $182,414 | $166,042 | $16,372 | 9.9% | | Gross margin | 84.0% | 84.8% | -0.8% | | | Operating (loss) income | $(3,316) | $5,099 | $(8,415) | (165.0)% | | Net income (loss) | $(3,592) | $9,793 | $(13,385) | (136.7)% | - U.S. revenue increased by 10.3% and international revenue increased by 23.0%, partially offset by Inspire V and GLP-1 trial delays[180][181][182][183] - Gross margin decreased to 84.0% from 84.8%, primarily due to a $2.1 million charge for excess Inspire IV components[184][185] - R&D expenses decreased by 9.2% to $26.2 million due to lower costs for next-gen products[186] - SG&A expenses increased by 20.8% to $159.5 million, driven by higher compensation, marketing, and general corporate costs[187] - Other income, net, decreased by 82.9% due to a $4.0 million impairment charge on a strategic investment[188] Comparison of the Six Months Ended June 30, 2025 and 2024 This subsection analyzes the financial performance for the first half of 2025 versus 2024 Key Financials (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | $ Change | % Change | | :------------------------------------ | :----- | :----- | :------- | :------- | | Revenue | $418,403 | $359,895 | $58,508 | 16.3% | | Cost of goods sold | $65,381 | $54,600 | $10,781 | 19.7% | | Gross profit | $353,022 | $305,295 | $47,727 | 15.6% | | Gross margin | 84.4% | 84.8% | -0.4% | | | Operating (loss) income | $(4,801) | $(10,119) | $5,318 | (52.6)% | | Net income (loss) | $(600) | $(212) | $(388) | 183.0% | - U.S. revenue increased by 16.6% and international revenue increased by 8.2%[190][191][192] - Gross margin decreased to 84.4% from 84.8%, primarily due to the $2.1 million charge for excess Inspire IV components[193][194] - R&D expenses decreased by 6.4% to $54.0 million due to lower costs for next-gen products[195] - SG&A expenses increased by 17.9% to $303.8 million, driven by higher compensation and general corporate costs[196] - Other income, net, decreased by $5.0 million due to a $4.0 million impairment charge on a strategic investment[197] Liquidity and Capital Resources This section discusses the company's financial position, sources of liquidity, and capital needs - Existing cash, cash equivalents, and investments are believed to be sufficient to cover needs for at least the next 12 months[199][207] - As of June 30, 2025, cash, cash equivalents, and available-for-sale debt securities totaled $410.7 million[201] - Working capital decreased by $62.5 million to $479.8 million, primarily due to share repurchases and inventory purchases[201][202] - The decrease in working capital was partially offset by a $44.6 million increase in accounts receivable and a $41.5 million increase in inventories[202] - The investment policy focuses on preserving capital while maximizing income[203] - SG&A and R&D expenditures are expected to increase in H2 2025, potentially reducing cash flow from operations[204] - Capital expenditures were $17.4 million in H1 2025, mainly for manufacturing equipment for Inspire V[205] Cash Flows This section provides a detailed analysis of cash flows from operating, investing, and financing activities Operating Activities This subsection details the cash generated from or used in the company's principal revenue-producing activities - Net cash used in operating activities was $4.0 million for H1 2025, a shift from $8.8 million provided in H1 2024[210][211] - The H1 2025 usage was due to a net loss and an $86.0 million increase in net operating assets[211] - The increase in accounts receivable was partly due to a temporary delay in customer invoice delivery[211] Investing Activities This subsection details cash flows related to the acquisition and disposal of long-term assets and other investments - Net cash provided by investing activities was $45.0 million for H1 2025, a significant increase from $13.9 million used in H1 2024[210][213] - This was driven by $173.7 million in proceeds from sales/maturities of investments, offset by purchases and capital expenditures[213] Financing Activities This subsection details cash flows resulting from changes in the size and composition of equity capital and borrowings - Net cash used in financing activities was $84.1 million for H1 2025, a reversal from $7.9 million provided in H1 2024[210][216] - The H1 2025 usage was primarily due to $75.0 million in share repurchases and $20.9 million in taxes paid on equity awards[216] Contractual Obligations and Commitments This section confirms there have been no material changes to contractual obligations since the last annual report - There have been no material changes to the company's contractual obligations since the Annual Report[218] Critical Accounting Policies and Estimates This section confirms there have been no material changes to critical accounting policies since the last annual report - No material changes to critical accounting policies and estimates have occurred since the Annual Report[219] Recent Accounting Pronouncements This section refers to the financial statement notes for information on new accounting standards - A discussion of recent accounting pronouncements is included in Note 2 to the financial statements[220] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section discusses the company's exposure to interest rate, credit, and foreign currency risks Interest Rate Risk This subsection describes the company's exposure to fluctuations in interest rates - Interest rate risk is primarily limited to cash equivalents and short-term investments[221] - A hypothetical 1% change in interest rates would have impacted interest income by approximately $2.0 million for H1 2025[221] Credit Risk, Foreign Currency Risk, and Inflation Risk This subsection confirms no material changes to other market risks since the last annual report - No material changes to credit, foreign currency, and inflation risks have occurred since the Annual Report[222] - Cash balances exceed insured limits, posing a risk in case of institutional failure[223] Item 4. Controls and Procedures This section details the evaluation of disclosure controls and changes in internal financial reporting controls Evaluation of disclosure controls and procedures This subsection provides management's conclusion on the effectiveness of disclosure controls - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[224] Changes in internal control over financial reporting This subsection reports on any significant changes to internal controls during the quarter - There were no changes in internal control over financial reporting during Q2 2025 that materially affected controls[225] PART II. OTHER INFORMATION This part includes information on legal proceedings, risk factors, and other corporate matters Item 1. Legal Proceedings This section incorporates by reference the detailed information on legal proceedings from the financial notes - The company is involved in claims and litigation in the ordinary course of business[227] - Information on legal proceedings is incorporated by reference from Note 11[144][145][146][147][227] Item 1A. Risk Factors This section updates risk factors, emphasizing potential fluctuations in financial results - No material changes to the risk factors disclosed in the Annual Report have occurred, other than those discussed[228] - Quarterly and annual results may fluctuate significantly due to factors like seasonality and delays in elective surgeries[230] - The launch of Inspire V is expected to impact consolidated revenue through H2 2025 as customers destock Inspire IV[231] - Other factors causing fluctuations include changes in payor coverage, reimbursement challenges, and new product offerings[232] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section states that there were no unregistered sales of equity securities to report - None to report[234] Item 3. Defaults Upon Senior Securities This section indicates that there were no defaults upon senior securities - None to report[235] Item 4. Mine Safety Disclosures This section states that mine safety disclosures are not applicable - Not applicable[236] Item 5. Other Information This section provides information on Rule 10b5-1 trading arrangements by directors and officers Rule 10b5-1 Trading Arrangements by Directors and Executive Officers | Name | Title | Action | Rule 10b5-1 Adoption/Termination Date | Aggregate Number of Shares of Common Stock to be Sold | Expiration Date | | :----------- | :-------------------------------- | :--------- | :------------------------------------ | :---------------------------------------------------- | :-------------- | | John Rondoni | Chief Product and Innovation Officer | Adopt | May 28, 2025 | 39,659 | May 12, 2026 | | John Rondoni | Chief Product and Innovation Officer | Terminate | May 13, 2025 | 21,832 | May 30, 2025 | - The reported shares include those issuable from unvested RSUs and PSUs, subject to vesting and performance conditions[238] - No other Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[239] Item 6. Exhibits This section lists all exhibits filed with the Quarterly Report - The exhibits include certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents[240] SIGNATURES This section contains the official signatures of the company's certifying officers - The report is signed by Timothy P. Herbert, CEO, and Richard J. Buchholz, CFO, on August 4, 2025[244]