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TTM  revenue  targets,  which  we  have  historically  surpassed.  Each  note  issuance  is  funded  over  five  quarterly 
closings unless Google elects to fund it in a single closing, and Google may elect to defer funding of revenue-
linked  draws.  To  the  extent  shares  cannot  be  issued  without  exceeding  Google’s  ownership  cap,  which  limits 
issuances of shares under the Google 2026 NPA to the extent such issuances would cause Google’s ownership of 
us  to  exceed  14.99%  of  our  outstanding  capitalization  on  a  post-money,  as-converted  basis  as  calculated  in 
accordance with the terms of the Google 2026 NPA, unless Google elects to waive it in its sole discretion, the 
excess  will  be  funded  through  a  non-interest-bearing  rollover  note  maturing  10  years  from  issuance  and 
convertible into Class N common stock at the end of each fiscal quarter, with any unconverted balance payable 
in cash at maturity.

In connection with the Google 2026 NPA, we granted Google an option to purchase up to $10.0 billion of our 
Class N common stock in a private placement concurrent with this offering at the public offering price, which 
would  reduce  the  amount  of  notes  available  for  issuance  under  the  Google  2026  NPA  by  a  corresponding 
amount  if  exercised.  We  also  entered  into  a  registration  rights  agreement  with  Google.  See  “Description  of 
Capital Stock—Registration Rights.”

Cash Flows

The following table shows a summary of our cash flows for the periods presented:

(in millions)
Net cash provided by (used in)

Operating activities

Investing activities

Financing activities

Operating Activities

Year Ended December 31,
2024

2023

2025

Six Months Ended June 30,

2025

2026

$

(1,627) $
(2)

(5,692) $
(22)

(2,637) $
(3,077)

2,320

7,248

19,960

(1,513) $
(49)

4,749

3,929
(17,181)

110,774

Net cash used in operating activities for the year ended December 31, 2025 decreased by $3.1 billion compared 
to  the  year  ended  December  31,  2024.  The  decrease  was  primarily  driven  by  a  decrease  in  prepaid  hosting 
services reflecting the consumption during 2025 of hosting capacity that had been prepaid in prior periods and 
an increase in accounts payable, accrued expenses, and other current liabilities due to increased CSP costs and 
the timing of related payments. The decrease was partially offset by higher cash payments, including a payment 
related  to  the  Bartz  settlement,  higher  cash  compensation  costs  from  headcount  growth,  and  an  increase  in 
accounts receivable.

Net cash used in operating activities for the year ended December 31, 2024 increased by $4.1 billion compared 
to  the  year  ended  December  31,  2023.  The  increase  was  primarily  driven  by  an  increase  in  prepaid  hosting 
services due to business expansion requiring additional hosting capacity. 

Cash provided by operating activities was $3.9 billion for the six months ended June 30, 2026 as compared to 
cash  used  in  operating  activities  of $1.5  billion  for  the six  months  ended  June  30,  2025.  Our  operating  cash 
flows result primarily from cash received from our customers, offset by cash payments we make for products 
and services, employee compensation, operating leases, and interest payments. The increase in operating cash 
flow was primarily driven by an improvement in net loss adjusted for non-cash items, and changes in working 
capital,  primarily  reflecting  the  timing  of  payments  to  vendors  and  cash  receipts  from  customers.  Working 
capital at any point in time is subject to many variables, including the timing of billings and cash collections, 
vendor payment terms, and the timing of invoice receipt and payment.

Investing Activities

Net cash used in investing activities for the year ended December 31, 2025 increased by $3.1 billion compared 
to  the  year  ended  December  31,  2024.  The  increase  was  primarily  driven  by  increased  purchases  of  new 
marketable  securities,  including  U.S.  Treasury  and  agency  securities  and  corporate  debt  securities,  as  well  as 
higher  capital  expenditures  related  to  servers,  networking  and  infrastructure  equipment,  and  purchases  of 

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