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price  over  the  ten  trading  days  prior  to  such  issuance  also  exceeds  that  threshold.  Although  our  board  of 
directors has approved this framework, any future contributions will be made at the discretion of our board of 
directors.  The  shares  that  are  contributed  to  the  Anthropic  Public  Benefit  Fund,  including  the  Initial  Public 
Benefit  Issuance,  may  be  transferred  or  donated  to  a  third  party,  or  otherwise  sold  in  a  registered  public 
offering or private placement transaction in furtherance of our public benefit initiatives. Our board of directors 
will  determine  the  allocations  and  distributions  from  the  Anthropic  Public  Benefit  Fund  until  it  approves  a 
specific governance structure for the entity, at which point decision-making authority is expected to transition 
to  designated  managers  of  the  Anthropic  Public  Benefit  Fund  operating  under  that  structure.  The  initial 
managers are Dario Amodei, Daniela Amodei, Jack Clark, and Dr. Neil “Buddy” Shah. The Initial Public Benefit 
Issuance  and  the  additional  share  contribution  framework  represent  one  of  the  ways  in  which  we  intend  to 
pursue the Company Purpose, but it is not the exclusive means of doing so. We expect to dedicate additional 
resources,  and  to  make  other  business  and  operational  decisions,  in  furtherance  of  our  Company  Purpose 
outside of, and in addition to, these equity contributions.

In  addition,  we  maintain  a  donation  matching  program  through  which  employees  can  pledge  a  meaningful 
portion  of  their  equity  awards  or  equivalent  cash  proceeds  to  a  donor-advised  fund  or  other  nonprofit 
organization,  and  we  match  those  donations  with  shares  of  our  Class  N  common  stock.  In  the  same  way  the 
Company Purpose defines how we direct our work as an organization, our donation matching program reflects 
a parallel commitment by our employees to direct their personal financial value created by that work toward the 
public good. We view our donation matching program as a meaningful expression of the Company Purpose and 
a  reflection  of  the  values  that  define  our  culture.  In  addition,  our  co-founders  have  each  pledged  to  dedicate 
80%  of  their  personal  equity  in  Anthropic  to  philanthropic  causes,  separate  from  and  not  eligible  for  our 
donation matching program.

Decisions  we  make  to  advance  our  public  benefit  initiatives  may,  in  any  given  period,  reduce  our  revenue, 
increase  our  expenses,  lower  our  Adjusted  Operating  Margin,  contribute  to  dilution,  and  reduce  our 
profitability  on  a  per  share  basis  relative  to  what  we  would  otherwise  report. Our  public  benefit-related 
expenses,  which  currently  consist  primarily  of  charitable  donations  under  our  donation  matching  program, 
have not historically been significant. For the year ended December 31, 2025, expenses related to our donation 
matching program were $541 million, representing approximately 4% of our total operating expenses. However, 
we expect the cadence and magnitude of resources directed toward our public benefit initiatives to increase in 
future periods and remain a factor affecting our results of operations.

Components of Results of Operations

Revenue

We generate revenue as customers use Claude through our platform and applications, including Claude Code, 
Claude Cowork, and vertical solutions for key industries. Claude is powered by our proprietary Claude model 
family,  a  set  of  frontier  models,  each  with  varying  levels  of  capability,  cost,  and  speed.  Enterprise  customers 
access  our  intelligence  service  directly  from  us  or  through  CSP  marketplaces,  where  we  maintain  direct 
contractual relationships with our customers.

Depending  on  the  model,  platform,  or  applications  chosen  by  our  customers,  they  enter  into  pay-for-
intelligence  pricing,  subscription-based  pricing,  or  both.  A  growing  number  of  enterprise  customers  agree  to 
annual or multi-year contracts with minimum spend commitments.

Revenue is recognized when customers use our intelligence service, based on the quantity of tokens consumed. 
Subscriptions are generally prepaid on a monthly or annual basis, and are subject to usage limits that reset over 
short periods, which results in revenue being recognized on a ratable basis over the subscription period, which 
is generally 12 months or less.

We expect our revenue growth rate to decline over time and to fluctuate from period to period. Revenue growth 
in any period may be affected by customer usage patterns, customer adoption, the deployment of our models, 
platform,  and  applications,  the  pricing  of  our  offerings, the  timing  and  success  of  new  model  and  product 
releases,  measures  we  decide  to  implement  to  safely  deploy  new  capabilities,  our  ability  to  continue  meeting 
customer  requirements,  and  other  factors  affecting  demand  for  our  models,  platform,  and  applications, 
including those described in the section titled “Risk Factors—We are at an early stage of our revenue growth, we 

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