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Management’s Discussion and Analysis of 
Financial Condition and Results of Operations 

The following discussion and analysis of our financial condition and results of operations should be read in 
conjunction with the section titled “Summary Consolidated Financial and Other Data” and the consolidated 
financial statements and related notes thereto included elsewhere in this prospectus. This discussion contains 
forward-looking  statements  that  involve  risks  and  uncertainties.  Factors  that  could  cause  or  contribute  to 
such differences include those identified below and those discussed elsewhere in this prospectus, particularly 
in  the  sections  titled  “Risk  Factors”  and  “Special  Note  Regarding  Forward-looking  Statements.”  Financial 
data as of and for the years ended December 31, 2023, 2024, and 2025 have been derived from our audited 
consolidated  financial  statements  appearing  at  the  end  of  this  prospectus.  Our  historical  results  are  not 
necessarily indicative of the results that may be expected for any period in the future.

Overview

Anthropic was founded in 2021 by a team of researchers responsible for many of the breakthroughs that define 
AI. We are first and foremost a research lab—our mission is the responsible development and maintenance of 
advanced AI for the long-term benefit of humanity. This mission directs our focus—along with our talent and 
culture, our frontier and safety research, our approach to compute, and our enterprise strategy, it is one of the 
core advantages that set us apart. These advantages enable us to continuously advance frontier AI and shape 
the  standards  for  its  safe  and  responsible  development.  Our  frontier  AI,  Claude,  is  delivered  to  customers 
through our models, platform, and applications. Claude has experienced the fastest enterprise adoption of any 
technology in history, as demonstrated by revenue growing from $0 at commercial launch in the first quarter of 
2023 to $           for the three months ended September 30, 2026. 

Our Financial Model

Our financial model is built on four primary drivers that define the trajectory of our results:

• Adoption  of  Claude.  The  advancing  intelligence  and  capabilities  of  each  successive  version  of  a 
Claude model drive the diffusion of Claude across the global economy. As new customers adopt Claude 
and existing customers expand their usage into new workflows, our revenue grows. 

•

Compute Efficiency. We are focused on increasing the intelligence produced and revenue generated 
per dollar of compute invested and have delivered significant efficiency improvements.

• Operating  Efficiency.  Our  high  talent  density,  efficient  go-to-market,  and  how  extensively  our 
teams  leverage  Claude  in  their  work  help  to  drive  improved  operating  margin,  Adjusted  Operating 
Margin, and revenue per employee. 

•

Compute  Investments.  Investing  in  compute  is  critical  to  support  our  long-term  growth,  and  we 
intend to continue making substantial investments in compute.

The  drivers  of  our  financial  model  materialize  on  different  timelines.  The  adoption  of  Claude  and  associated 
revenue growth, compute efficiency, and operating efficiency have each increased rapidly over time. Compute is 
procured  and  committed  in  advance  and  the  expense  is  incurred  as  it  is  brought  online  and  added  to  our 
fungible pool, often in large, discrete steps. The fungible pool can support all workloads dynamically, including 
research,  model  development,  serving  customers,  and  internal  usage  of  Claude.  As  a  result,  there  is  a  lag 
between when investment is committed and when the full revenue associated with such investment is realized. 

This dynamic has produced a financial model in which our operating margin and Adjusted Operating Margin 
for  the  nine  months  ended  September  30,  2026  have  expanded  significantly  year  over  year.  As  significant 
incremental compute is brought online in future periods, the associated expense will be recognized in advance 
of  the  full  revenue  that  the  compute  will  ultimately  support,  and  we  expect  operating  margin  and  Adjusted 
Operating Margin may compress in those periods. At our current stage, this cycle is an inherent aspect of our 

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