Technology

Webull Reports First Quarter 2026 Financial Results

Published

5 hours ago

May 21, 2026

Webull reports another strong quarter of growth, marked by record trading volumes and strong net deposits despite challenging market environment. Webull will continue to invest behind strategic priorities, including enhanced offerings for its active traders user base, international expansion to export the U.S. retail experience globally and continued adoption by institutional investors and B2B partners

ST. PETERSBURG, Fla., May 22, 2026 /PRNewswire/ — Webull Corporation (NASDAQ: BULL) (“Webull” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2026.

“I’m proud to report a strong start to our second year as a public company and meaningful progress in enhancing, expanding and extending our leading-platform for self-directed active traders,” said Anthony Denier, Group President and U.S. CEO of Webull. “We continue to innovate in AI, including beta-testing for our Vega Analyst, which will bring comprehensive research reports to our users, as well as launching agentic trading solutions on Webull. Our geographic expansion continues at a rapid pace, and we now have the license to operate across the European Economic Area, and we are deepening our presence in other markets across the globe. The demand from sophisticated, self-directed investors, including institutional and B2B clients, has never been greater and we are proud to be the platform of choice for our users and are committed to continuously improving the user experience while broadening our reach.”

“Webull continued to deliver in the first quarter of 2026, recording strong revenue growth and our sixth consecutive quarter of profitability on an adjusted basis,” said H.C. Wang, Chief Financial Officer of Webull. “We will continue to invest behind key growth drivers to further power our platform while prioritizing diligent execution and capital allocation priorities, including returning capital to shareholders through our previously announced share repurchase program.”

First Quarter Results

Financial Results

Total revenues increased 36% year-over-year to $159.9 million.Trading-related revenue increased 36% year-over-year.Total operating expenses increased 68% year-over-year, primarily driven by higher marketing and branding expenses, brokerage and transaction costs reflecting rapid growth in trading volumes and product expansion, and increased share-based compensation expense.Adjusted operating expenses increased 64% year-over-year to $145.1 million.Loss before income taxes totaled $12.8 million for the quarter, compared to income before taxes of $19.5 million for the prior year comparative quarter. The decrease of $32.3 million in income was primarily due to increased share-based compensation expense, marketing and branding expenses and continued investment in our product and global expansion efforts.Adjusted operating profit totaled $14.8 million for the quarter, compared to $28.7 million for the prior year comparative quarter.Adjusted operating profit per share – basic and diluted was $0.03, compared with a basic and diluted adjusted operating profit per share of $0.21 and $0.06, respectively, in the prior year comparative quarter1.Net loss attributable to the Company was $21.7 million for the quarter, compared to $13.1 million of net income for the prior year comparative quarter.Adjusted net income decreased to $9.2 million for the quarter, compared to $21.3 million for the prior year comparative quarter.Net Loss per ordinary share – basic and diluted was $0.04 per share, compared to basic and diluted loss per ordinary share of $0.06 per share for the prior year comparative quarter[1].

[1] The first quarter year-over-year decrease in basic and diluted net loss per ordinary share and adjusted operating profit per share was primarily driven by the conversion of our preferred stock into ordinary shares upon the closing of our business combination transaction with SK Growth Opportunities Corporation in April 2025, which had the effect of increasing our weighted-average shares outstanding.

Operating Results

Customer assets totaled $24 billion, representing 90% year-over-year growth, driven by strong net deposits which grew 91% year-over-year despite a challenging market environment.
Registered users increased 15% year-over-year to 27.6 million users.Funded accounts increased to 5.1 million, representing 8% year-over-year growth.Equity notional volume grew to $261 billion, representing a 104% year-over-year increase and an increase of 9% from the previous quarter.Options contracts volume grew to 159 million, a 31% year-over-year increase and an increase of 3% from the previous quarter.DARTs increased to 1.3 million, representing 42% year-over-year growth.

Company Highlights

Developed Pattern Day Trader (“PDT”) infrastructure to be well-positioned for the increase in active trading expected from FINRA’s PDT rule change taking effect on June 4, 2026.In April, FINRA approved Webull Securities US for self and correspondent clearing, marking a pivotal step toward long-term cost savings and operational scale. This approval lays the groundwork for further growth by offering clearing services to institutional partners.Received permission to operate in all of the countries in the European Economic Area and launched the Webull App in Germany.Successfully developed and deployed Model Context Protocol (MCP) infrastructure functionality within Webull’s trading platform, establishing a secure, scalable foundation for integrating third-party agentic AI platforms.Began initial rollout of AI-enabled research analyst tool, bring comprehensive research reports to platform users.

Conference Call Information

Webull will host a conference call to discuss its results at 5:00 p.m. E.T. today, May 21, 2026. The conference call can be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=GOLJRG6O or participants may dial 1-844-744-1431 (U.S.) or 1-412-564-6518 (international).

Following the call, a replay and transcript will be available on the Company’s website at www.webullcorp.com/investor-relations, as well as the earnings press release and accompanying slide presentation.

About Webull Corporation

Webull Corporation (NASDAQ: BULL) owns and operates Webull, a leading digital investment platform built on next-generation global infrastructure. Through its global network of licensed brokerages, Webull offers investment services in 15 markets across North America, Asia Pacific, Europe, Africa, and Latin America. Webull serves more than 27 million registered users globally, providing retail investors with 24/7 access to global financial markets. Users can put investment strategies to work by trading global stocks, ETFs, options, futures, fractional shares, and digital assets through Webull’s trading platform, which seamlessly integrates market data and information, its user community, and investor education resources. Learn more at www.webullcorp.com. You may also access certain information on Webull and its securities on the website of the U.S. Securities and Exchange Commission (the “SEC”) at http://www.sec.gov, where Webull will, among others, be filing reports, such as Reports on Form 6-K and its Annual Report on Form 20-F.

Contacts

For Investors
ir@webullcorp.com

For Media
5W Public Relations
Nicholas Koulermos
Webull@5wpr.com
(212) 999-5585

Use of Non-GAAP Financial Measures

We use adjusted operating profit, adjusted operating profit per share, adjusted net income, and adjusted operating expenses, all of which are non-GAAP financial measures, to evaluate our operating results and for financial and operational decision-making purposes. Adjusted operating profit represents income from continuing operations, before income taxes, excluding share-based compensation expenses, one-time transactions, and other expense (income), net. Adjusted operating profit per share represents adjusted operating profit divided by our weighted average shares outstanding on a basic and diluted basis. Adjusted net income represents net income attributable to the Company, excluding share-based compensation expenses, foreign currency transaction gains and losses, and one-time transactions. Adjusted operating expenses represent total operating expenses, excluding share-based compensation expenses and one-time transactions.

We believe that adjusted operating profit, adjusted operating profit per share, adjusted net income, and adjusted operating expenses help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in income before income taxes, net income, and total operating expenses. We believe that adjusted operating profit, adjusted net income, and adjusted operating expenses provide useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted operating profit, adjusted operating profit per share, adjusted net income, and adjusted operating expenses should not be considered in isolation or construed as an alternative to income before income taxes, earnings per share, net income attributable to the Company, and total operating expenses or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted operating profit, adjusted operating profit per share, adjusted net income, and adjusted operating expenses presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Quarterly Reconciliations of Non-GAAP and GAAP Financial Measures” set forth at the end of this press release.

Definitions

“Customer assets” refer to the sum of the fair value of all equities, ETFs, options, warrants, futures, digital assets and cash held by customers in their Webull brokerage accounts, net of customer margin balances, as of the record date. While customer assets are significantly impacted by mark-to-market valuations of customers’ investments and digital holdings, we consider customer assets an important metric as growth in customer assets generally leads to an increase in trading volumes and revenue.

“DARTs” refer to daily average revenue trades, which is the number of customer trades executed during a given period divided by the number of trading days in that period. DARTs provide us information on how active our customers trade. A limitation of this metric is that it does not capture the size of the trade and revenue per trade varies significantly depending on size and type of trades.

“Equity notional volume” refers to the aggregate dollar value (purchase price or sale price as applicable) of trades executed over a specified period of time. Equity notional volume directly drives our equities trading revenue, as we earn payment for order flow or commissions for customers’ equities trades based on a percentage of notional value. However, equity notional volume is highly sensitive to market conditions in the short-term which makes predicting our equity trading revenue with precision difficult.

“Funded accounts” refer to Webull brokerage accounts into which the customer has made an initial deposit or money transfer, of any amount, whose account balance (which is measured as the fair value of assets in the customer’s account less the amount due from the customer) has not dropped to or below zero for 45 consecutive calendar days as of the record date. Funded accounts reflect unique customers, and multiple funded accounts by a single customer are counted as one funded account. Growth in our funded accounts provides insight as to the effectiveness of our marketing efforts and our ability to acquire monetizable customers. Funded accounts are positively correlated with, but are not determinative, of customer assets, trading volumes, and revenue.

“Options contracts volume” refers to the total number of options contracts bought or sold over a specified period of time. Options contracts volume directly drives our options trading revenue, as we earn payment for order flow or commissions for customers’ options trades on a per contract basis. However, options contracts volume is highly sensitive to market conditions in the short-term, which makes predicting our options trading revenue with precision difficult.

“Registered users” refer to those users who have registered on our platform but not necessarily have opened a brokerage account with one of our licensed broker-dealers. Growth in our registered users provides insight as to the popularity of the Webull App. While we do not generate revenue from registered users who do not have brokerage accounts with us, registering an account on the Webull App is the first step toward opening and funding a brokerage account with us.

Webull Corporation

Condensed Consolidated Statements of Financial Position

March 31, 2026

December 31, 2025

(Unaudited)

Assets

Cash and cash equivalents

677,154,737

653,188,906

Cash and cash equivalents segregated under federal and foreign requirements

1,276,042,349

1,537,119,275

Receivables from brokers, dealers, and clearing organizations

499,661,318

562,961,145

Receivables from customers, net

843,830,424

708,785,550

Prepaid expenses and other current assets

53,774,736

50,208,272

Customer-held fractional shares

174,696,145

172,309,953

Total current assets

3,525,159,709

3,684,573,101

Right-of-use assets

63,793,434

64,357,655

Property and equipment, net

37,032,857

35,894,855

Intangible assets, net

54,912,666

55,434,567

Goodwill

30,264,138

Deferred tax assets

1,319,263

9,346,987

Other non-current assets

1,000,000

Total non-current assets

188,322,358

196,298,202

Total assets

3,713,482,067

3,880,871,303

Liabilities and shareholders’ equity

Payables due to customers

2,504,723,555

2,667,837,626

Payables due to brokers, dealers, and clearing organizations

3,611,459

3,481,115

Lease liabilities – current portion

3,319,483

3,611,195

Accounts payable and other accrued expenses

97,114,181

102,183,377

Total current liabilities

2,608,768,678

2,777,113,313

Lease liabilities – non-current portion

8,189,194

8,911,821

Unsecured promissory notes

65,000,000

Deferred tax liabilities

13,301,770

13,366,222

Total non-current liabilities

86,490,964

87,278,043

Total liabilities

2,695,259,642

2,864,391,356

Commitments and Contingencies

–

Shareholders’ equity

Class A ordinary shares ($0.00001 par value; 4,000,000,000 shares authorized,
447,778,197 and 446,863,712 shares issued and outstanding as of March 31, 2026,
respectively; and 440,715,769 and 439,591,284 shares issued and outstanding as of
December 31, 2025, respectively)

4,468

4,396

Class B ordinary shares ($0.00001 par value, 1,000,000,000 shares authorized,
83,859,005 shares issued and outstanding as of March 31, 2026 and December 31,
2025)

839

Treasury shares (914,485 and 1,124,485 shares as of March 31, 2026 and December 31,
2025, respectively)

–

Additional paid in capital

3,210,754,470

3,192,952,827

Accumulated deficit

(2,199,912,575)

(2,178,189,845)

Accumulated other comprehensive income

7,207,133

1,524,496

Total shareholders’ equity

1,018,054,335

1,016,292,713

Noncontrolling interest

168,090

187,234

Total equity

1,018,222,425

1,016,479,947

Total liabilities and total equity

3,713,482,067

3,880,871,303

Webull Corporation

Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

For the Three Months Ended
March 31,

2026

2025

Revenues

Equity and option order flow rebates

84,392,839

64,111,182

Interest related income

40,050,378

31,140,064

Handling charge income

26,412,742

17,547,010

Other revenues

9,072,057

4,570,579

Total revenues

159,928,016

117,368,835

Operating expenses

Brokerage and transaction

38,393,140

23,245,456

Technology and development

23,860,822

16,924,892

Marketing and branding

49,411,166

22,991,038

General and administrative

50,641,443

33,620,720

Total operating expenses

162,306,571

96,782,106

Other expense (income), net

10,432,161

1,089,417

(Loss) income before income taxes

(12,810,716)

19,497,312

Provision for income taxes

8,927,156

6,558,225

Net (loss) income

(21,737,872)

12,939,087

Less net loss attributable to noncontrolling interest

(15,142)

(146,720)

Net (loss) income attributable to the Company

(21,722,730)

13,085,807

Preferred shares redemption value accretion

–

(21,702,737)

Net loss attributable to ordinary shareholders

(21,722,730)

(8,616,930)

Net loss per share attributable to ordinary shareholders

Basic

(0.04)

(0.06)

Diluted

(0.04)

(0.06)

Weighted-average shares outstanding

Basic

526,127,355

139,307,224

Diluted

526,127,355

139,307,224

Net (loss) income

(21,737,872)

12,939,087

Other comprehensive income, net of tax:

Change in cumulative foreign currency translation adjustment

5,678,635

1,741,649

Other comprehensive income

5,678,635

1,741,649

Comprehensive (loss) income

(16,059,237)

14,680,736

Less comprehensive loss attributable to noncontrolling interest

(15,142)

(146,720)

Less foreign currency translation adjustment attributable to noncontrolling interest

(4,002)

(28,127)

Preferred shares redemption value accretion

–

(21,702,737)

Comprehensive loss attributable to ordinary shareholders

(16,040,093)

(6,847,154)

Webull Corporation
Unaudited Quarterly Reconciliation of Non-GAAP and GAAP Financial Measures

Adjusted Operating Expenses Reconciliation

(Unaudited)

For the Three Months Ended December 31,

For the Three Months Ended March 31,

(Unaudited)

2025

2026

Total operating expenses (GAAP)

147,999,822

96,782,106

162,306,571

Less: Share-based compensation

4,350,886

8,069,045

17,201,576

Adjusted operating expenses (Non-GAAP)

143,648,936

88,713,061

145,104,995

Adjusted Operating Profit Reconciliation

(Unaudited)

For the Three Months Ended December 31,

For the Three Months Ended March 31,

(Unaudited)

2025

2026

Income (loss) from before income taxes

8,133,523

19,497,312

(12,810,716)

Add: Other expense (income), net

9,065,477

1,089,417

10,432,161

Add: Share-based compensation

4,350,886

8,069,045

17,201,576

Adjusted operating profit (Non-GAAP)

21,549,886

28,655,774

14,823,021

Adjusted operating profit per share (Non-GAAP) – basic

0.04

0.21

0.03

Adjusted operating profit per share (Non-GAAP) – diluted

0.04

0.06

0.03

Weighted-average shares outstanding – basic

521,969,391

139,307,224

526,127,355

Weighted-average shares outstanding – diluted

535,685,132

458,155,514

536,653,076

Adjusted Net Income Reconciliation

(Unaudited)

For the Three Months Ended December 31,

For the Three Months Ended March 31,

(Unaudited)

2025

2026

Net income (loss) attributable to the Company (GAAP)

3,041,326

13,085,807

(21,722,730)

Add: Share-based compensation

4,350,886

8,069,045

17,201,576

Add: Deferred tax effect from IRC 162(m) limitation

–

8,038,222

Add: Foreign currency transaction losses (gains)

7,213,228

103,707

5,718,697

Adjusted net income (Non-GAAP)

14,605,440

21,258,559

9,235,765

Contra Revenue Impact

Most of our platform users are not considered customers under ASC 606, Revenues from Contracts with Customers (“ASC 606”), and promotional payments made to these platform users are accounted for as a marketing and branding expense. Conversely, for our platform users who have been determined to be customers under ASC 606, we account for these promotional payments as a reduction in revenue (i.e., “contra revenue”). The following presents how contra revenue impacted our revenues.

Quarterly Impact:

For the Three Months Ended December 31,

For the Three Months Ended March 31,

(Unaudited)

2025

2026

Contra revenue impact on:

Option handling fees

(6,193,427)

(118,541)

(3,992,973)

Platform and trading fees

(2,726,550)

(2,706,115)

(8,685,529)

Other income

(688,946)

–

(966,876)

Total contra revenue

(9,608,923)

(2,824,656)

(13,645,378)

Statement Regarding Unaudited Financial and Operational Information

The unaudited financial and operational information included in this press release is subject to potential adjustments and is based on the information available to management at this time. Potential adjustments to operational and consolidated financial information may be identified from work performed during Webull’s preparation of financial statements subsequently hereto or its year-end audit. Information may also be presented differently from the information included herein in the future. This could result in significant differences from the unaudited or other historical operational and financial information included herein.

Cautionary Note Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release or other statements of the Company made in connection herewith, including, for instance, statements as to business strategy and plans, future results of operations and financial position, planned products and services, objectives of management for future operations or strategies of the Company, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “anticipate,” “expect,” “suggests,” “plan,” “believe,” “predict,” “potential,” “seek,” “future,” “propose,” “continue,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology.

All forward-looking statements are based upon current estimates and forecasts and reflect the reasonable views, assumptions, expectations, and opinions of the Company and its management as of the date of this press release, and are therefore subject to a number of factors, risks and uncertainties, some of which are not currently known to the Company and its management and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to: (1) the ability of the Company to grow and manage growth profitably, maintain relationships and deepen engagement with users, customers and suppliers, and retain its management and key employees; (2) the reliance of key functions of the Company’s business on third-parties and the risk that the Company’s platform and systems rely on software and applications that are highly technical and may contain undetected errors that could result in unexpected network interruptions, failures, security breaches, or computer virus attacks; (3) the risks associated with the Company’s global operations and continued global expansion, including, but not limited to, the risks related to complex or constantly evolving political or regulatory environments that may result in substantial costs or require adverse changes to the Company’s business practices; (4) the Company’s estimates of expenses and costs, of profitability or of other operational and financial metrics as well as the Company’s expectations regarding demand for and market acceptance of its products and service; (5) the Company’s reliance on trading related income, including payment for order flow (“PFOF”), and the risk of new regulation or bans on PFOF and similar practices; (6) the Company’s exposure to fluctuations in interest rates, rapidly changing interest rate environments, volatile prices of securities and digital assets and their respective trading volumes; (7) the Company’s reliance on a limited number of market makers and liquidity providers to generate a large portion of its revenues, and the negative impact of the loss of any of those market makers or liquidity providers; (8) the effects of competition in the Company’s industry and the Company’s need to constantly innovate and invest in new markets, products, technologies or services to retain, attract and deepen engagement with users; (9) changes in international trade policies and trade disputes that could result in tariffs, taxes or other protectionist measures adversely affecting our business; (10) risks related to general political, economic and business conditions globally and in jurisdictions where the Company operates; (11) risk of further actions taken by various government bodies in the United States that have made the Company the subject of inquiries and investigations relating to concerns about our connections to China; (12) the risk that the failure to protect customer data and privacy or to prevent security breaches relating to the Company’s platform could result in economic loss, damage to its reputation, deter customers from using its products and services, and expose it to legal penalties and liability; (13) the risks associated with incorporating artificial intelligence technologies into certain of our products and processes, including potential regulatory, operational, reputational, or compliance challenges; (14) risks related to the Company’s need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures as well as to maintain capital levels required by regulators and self-regulatory organizations; (15) the ability to meet, or continue to meet, stock exchange listing standards; (16) the possibility of adverse developments in pending or new litigation and regulatory investigations; (17) risks relating to our offering of event contracts or prediction market products in the United States, including potential changes in regulatory interpretations or enforcement priorities; (18) risks related to significant disruptions in the cryptocurrency market that negatively impacts user engagement with cryptocurrency trading on our platform; (19) political, regulatory or economic changes that affect cryptocurrencies, including changes in the governance of a cryptocurrency; (20) risks related to the offer and resale of our securities, such as dilution from the issuance of additional Class A ordinary shares upon the exercise of warrants, and increased volatility, or significant declines, in the price of our securities based on increased trading activity and the perception that sales of our securities may occur; (21) risks relating to the Company’s share repurchase program under which the Company may repurchase up to $100 million of its Class A ordinary shares, including that the program may be suspended, modified or discontinued at any time, and that the actual amount, timing and manner of any repurchases will depend on market conditions, share price, applicable legal requirements, contractual restrictions and other factors; and (22) other risks and uncertainties that are more fully described in filings made, or to be made, by the Company with the SEC, including in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s filings with the SEC, such as the Company’s Annual Report on Form 20-F filed with the SEC on April 9, 2026. The foregoing list of factors is not exhaustive. Reported results should not be considered an indication of future performance. There may be additional risks that the Company and its management presently do not know about or that the Company and its management currently believe are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In light of these factors, risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur, and any estimates, assumptions, expectations, forecasts, views or opinions set forth in this press release should be regarded as preliminary and for illustrative purposes only and accordingly, undue reliance should not be placed upon the forward-looking statements. The Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

SOURCE Webull Corporation

Technology

CRTC takes action to support the creation and discoverability of Canadian and Indigenous content

Published

5 hours ago

May 21, 2026

GATINEAU, QC, May 21, 2026 /CNW/ – The CRTC is taking important steps to implement the modernized Broadcasting Act (the Act) by updating how Canadian and Indigenous content is supported and made available.

The Act requires the CRTC to modernize Canada’s broadcasting framework and ensure that online broadcasters make meaningful contributions to Canadian and Indigenous content. In 2024, the CRTC took a first step by requiring online broadcasters to make a base contribution of 5% of their Canadian revenues to support the broadcasting system.

Building on that work, the CRTC held broad public consultations on the creation of Canadian content in the audio-visual sector and market dynamics and the sustainability of Canada’s broadcasting system. During these consultations, the CRTC received more than 600 submissions and held two public hearings. At those hearings, the CRTC heard a wide range of perspectives from nearly 150 groups, including creators, traditional and online broadcasters, production groups, public interest organizations, Indigenous peoples, official language minority communities and other participants.

Following the consultations, the CRTC issued a first decision to modernize the definition of Canadian audio-visual content. Today’s decisions build on that work.

First, the CRTC is setting new rules to ensure that traditional and online broadcasters contribute to the creation of Canadian and Indigenous content in an equitable way that reflects their size and business models.

Under the new rules, broadcasters with annual Canadian broadcasting revenues above $25 million will make meaningful contributions to the broadcasting system. No broadcasters below that threshold will be required to spend on Canadian content, which will reduce the overall regulatory burden in the system.

Contributions will be recalibrated so that traditional broadcasters will contribute 25% of their annual revenues to support Canadian and Indigenous content and benefit from greater flexibility in how they meet this requirement. For major broadcasters, this will provide relief as their current requirements range from 30% to 45%. Online broadcasters will contribute 15%, which includes their existing 5% base contribution.

The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news. This also includes the creation of a new fund to support services of exceptional importance. These measures will help ensure that Canadian stories continue to be told and made available to audiences across the country.

Secondly, the CRTC is setting clear expectations for the discoverability of Canadian and Indigenous content so that it is made available and visible to audiences. This will make it easier for people to find this content on the platforms they use, while giving broadcasters flexibility in how they meet the new expectations.

With these decisions, the CRTC has completed most of the foundational work required to implement the modernized Act in the audio-visual sector. To find out more, check out the CRTC’s regulatory plan.

Quote

“Today’s decisions are about building a stronger broadcasting system. We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable.”

– Vicky Eatrides, Chairperson and Chief Executive Officer, CRTC

Quick facts

The CRTC is an independent quasi-judicial tribunal that regulates the Canadian communications sector in the public interest. The CRTC holds public consultations on telecommunications and broadcasting matters and makes decisions based on the public record.The decision on contribution requirements builds on the base contributions decision and addresses the remaining issues from the consultation on the creation of Canadian content in the audio-visual sector.

Associated links

Broadcasting Regulatory Policy CRTC 2026-96: The Path Forward – Supporting the creation and distribution of Canadian programming in the audio-visual sector – Part 2 – A modernized framework for Canadian programming expenditures Broadcasting Regulatory Policy CRTC 2026-95: The Path Forward – Working towards a sustainable Canadian broadcasting system – Part 1 – Discoverability of Canadian and Indigenous content and services, and support for services of exceptional importance Broadcasting Regulatory Policy CRTC 2025-299: The Path Forward – Defining “Canadian program” and supporting the creation and distribution of Canadian programming in the audio-visual sector – Part 1 – Certification framework for Canadian programs, artificial intelligence, data collection and publication, and reporting requirements Broadcasting Notice of Consultation CRTC 2025-2: The Path Forward – Working towards a sustainable Canadian broadcasting system Broadcasting Notice of Consultation CRTC 2024-288: The Path Forward – Defining “Canadian program” and supporting the creation and distribution of Canadian programming in the audio-visual sector Consultation on Canadian content for TV and online streaming services Broadcasting Regulatory Policy CRTC 2024-121: The Path Forward – Supporting Canadian and Indigenous content through base contributions CRTC requires online streaming services to contribute to Canada’s broadcasting system Modernization of Canada’s broadcasting framework

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SOURCE Canadian Radio-television and Telecommunications Commission (CRTC)

Technology

Climate Solutions Prize Unveils 2026 Top 10 Finalists Ahead of Largest Festival Yet in Montréal, June 8-9

Published

5 hours ago

May 21, 2026

The festival will feature leading voices in climate capital, policy, and innovation — seven thematic tracks and over $1.5 million in prizes

MONTREAL, May. 21, 2026 /CNW/ – At a moment when scaling proven climate technologies has become the central challenge of the transition the Climate Solutions Prize (CSP) Festival has announced the 10 finalists for the 2026 Climate Tech Trailblazer Prize, selected from the strongest applicant pool in the Prize’s history. The finalists will pitch live to a jury of investors and industry leaders in a Dragons’ Den-style event on the final day of the Festival, with the winner revealed at the closing ceremony. The 2026 edition of the Festival will take place at Marché Bonsecours in Montréal on June 8–9. With seven thematic tracks — three of which are new — more than $1.5 million in prizes, and 2,000 expected participants, the 2026 edition will be the largest to date.

Confirmed speakers include David Suzuki, renowned Canadian scientist, broadcaster and founder of the David Suzuki Foundation; Jean Charest, former Deputy Prime Minister of Canada and former Premier of Québec; Henry Stern, California State Senator, former environmental attorney and longtime clean energy advocate; Sage Lenier, climate educator, founder of Sustainable & Just Future and a 2023 TIME Next Generation Leader; and Bruce Friedrich, founder and CEO of the Good Food Institute and a TED Fellow. They will take the stage alongside entrepreneurs, researchers, innovators and public sector actors from 20+ countries and 5 continents.

“The research and solutions exist, and there is a growing base of climate-focused investors and the talent to lead. The challenge is building the connective infrastructure: the mechanisms and platforms that help innovations survive the journey from lab to market. That is what the CSP is designed to provide,” says Galith Levy, CEO and co-founder of the Climate Solutions Prize.

2026 Climate Tech Trailblazer Prize: The Top 10 Finalists

The 2026 Climate Tech Trailblazer Prize finalists represent BC, Ontario, Nova Scotia and Quebec and span sectors including Built Environment, AgTech, Water, Resource Technology (green chemistry, critical minerals, industrial decarbonization), Energy and Power, Nature and Biodiversity (restoration), and Changemaker — each recognized for the strength and impact of their climate solutions.

Local Energy (Daniel Bastien) — Helps factories, industrial parks and cities reduce emissions by capturing and redistributing excess energy that would otherwise be wasted.Tydra Biomaterial Labs Ltd (Jaiya Varshney) — Transforms food waste into chitin through microbial recycling, creating a powerful material for water remediation, wound healing and soil health.Cellulotech Inc (Romain Metivet) — A fast, low-cost green chemistry process that makes paper water- and grease-resistant while keeping it recyclable, offering a plastic-free packaging alternative.Cardinal Volta (Nan Ge) — Captures wasted industrial heat and converts it into reusable energy, helping factories reduce costs and emissions.Planetary (Michael Kelland) — Removes carbon by safely restoring ocean alkalinity, enabling seawater to absorb and permanently store more CO₂ while reducing ocean acidification.Alter Biota Inc (Mark Masotti) — Uses biochar from wood waste and computer vision aggregate analysis to help concrete producers make stronger, lower-carbon concrete.TerraFixing (Samantha Usas) — Stores low-cost renewable electricity as high-temperature heat, replacing fossil fuels in heat-intensive industrial production.Tersa Earth Innovations Inc (Earl Oliver) — Uses microbe-powered water treatment to clean mine-impacted water, neutralize acidity and recover valuable metals.Tree Track Intelligence (Amir Soleimani) — Combines engineered Seedpods and precision UAV deployment to restore wildfire-damaged landscapes with stronger seedling survival rates.Neptune Nanotechnologies (Aaron Guan) — Turns discarded crab and lobster shells into a bio-based fire-safety additive for plastics, reducing reliance on toxic chemicals.

Three more prizes recognizing climate leadership

In addition to the Climate Tech Trailblazer Prize, the Festival will present three additional awards recognizing innovations with strong environmental and economic impact:

The 2026 Breakthrough Research Prize, recognizing leading climate research from Canadian universities and non-profit institutions, with awards directed to the host institution to support continued innovation.The 2026 Climate Startup Equity Prize Powered by Cycle Momentum, recognizing early-stage Quebec-based climate startups with strong commercial and environmental impact.The 2026 Student Entrepreneur Innovation Prize, recognizing the next generation of climate solution builders.

The 2026 edition drew a record level of interest, with a 30% increase in applications over the previous year. The full list of finalists for all prizes is available in the attached fact sheet and at www.climatesolutionsprize.com.

Bridging the gap between climate innovation and deployment

Since its founding in 2020, the CSP has become an international platform that has supported more than 1,400 innovators across 20 countries, awarded over $12 million in prizes, and helped generate more than $111 million in follow-on funding. The 2026 edition marks a new phase of expansion. Three new thematic tracks — Nature & Biotechnologies, Resource Technologies and Energy & Power — join four returning tracks to bring the total to seven.

“I’ve been to hundreds of sustainability conferences over the course of my career, and most times cannot wait to get home. The Climate Solutions Prize Festival is different — one of the most incredible experiences of my entire career. Being surrounded by leaders from across sectors, all sharing ideas to reduce our carbon impact, made it one of the most inspiring and impactful few days I’ve ever had in sustainability.” — Rob Johnson, Senior Vice President, Sustainability, Seattle Kraken & Climate Pledge Arena

“Events like the Climate Solutions Prize Festival are wonderful opportunities to highlight concrete solutions and bring initiatives forward. In this province, there are extraordinary initiatives and extraordinary creativity to support. We are proud to be part of it.” — Grégoire Baillargeon, President, BMO Financial Group, Québec

Click here to discover the full program and register.

To register as media, please contact Emmy Vande Rosieren at emmyvdr@copticom.ca or (514) 603-3209.

About the Climate Solutions Prize

Founded in 2020, the Climate Solutions Prize acts as a catalyst for the ecological transition by accelerating innovation, investment and collaboration. Through its flagship annual event, the Climate Solutions Prize Festival, the initiative brings together researchers, entrepreneurs, investors, public sector actors and strategic partners to foster the emergence, funding and global reach of innovative environmental technologies.

FACT SHEET

2026 Climate Solutions Prize Festival : Full List of Finalists

The 2026 Climate Solutions Prize Festival will recognize finalists across four prize categories. Below are the complete lists of finalists.

2026 Breakthrough Research Prize: The Top 10 Finalists

The Breakthrough Research Prize recognizes leading climate research from Canadian universities and non-profit institutions, with awards directed to the host institution to support continued innovation.

University of British Columbia — Armand Bonakdarpour (Narval Energy): A safe, low-cost sodium and iron battery for long-duration energy storage that performs in extreme temperatures and can replace diesel power in remote communities.University of Toronto and Western University, in partnership with Xatoms Inc — Diana Virgovicova: AI-discovered, light-activated materials that break down industrial water pollution without chemical additives or secondary waste.National Research Council of Canada — Parisa Karimi (Hyperion): A circular carbon recycling system that captures CO₂ from cement production and converts it into useful low-carbon minerals.RXN Hub, in partnership with CERT Systems — Steacy Coombs: Uses clean electricity to convert CO₂ and water into ethylene, replacing fossil-based production for plastics, fuels and everyday materials.RXN Hub, in partnership with Secant Fuel — Sandra Walker [confirm name]: Turns CO₂ and water into clean syngas, creating a scalable pathway to lower-carbon fuels for shipping and aviation.Biopterre — Rodrigue Dasani [confirm spelling]: Transforms stored mine-site soils into biologically active carbon sinks, turning land restoration into a measurable climate solution.Université Laval — MicroMea — Juliette Gagnon: Converts businesses’ organic waste into onsite biogas through compact, bacteria-powered containers, reducing landfill use and emissions.University of Waterloo, in partnership with CarbonLume Inc — Abdelaziz Gouda: Uses modular, light-driven technology to convert methane into battery-grade carbon nanotubes and clean hydrogen.Simon Fraser University — Majid Bahrami [confirm spelling]: A waste-heat-to-cooling platform that uses heat from buildings and data centres to produce affordable, low-carbon cooling.Concordia University — Ashlee Howarth (Anodyne Chemistries): A reusable sorbent-based process that turns captured CO₂ into carbon-negative chemicals with lower energy and emissions.

2026 Climate Tech Trailblazer Prize: The Top 10 Finalists

The 2026 Climate Tech Trailblazer Prize saw a 30% increase in applications over last year. This year’s finalists represent [X] countries and span sectors from [X to Y]. The finalists will pitch live to a jury of investors and industry leaders in a Dragons’ Den-style event on June 9, with the winner revealed at the closing ceremony.

2026 Climate Startup Equity Prize Powered by Cycle Momentum: The Top 10 Finalists

The Climate Startup Equity Prize recognizes early-stage Quebec-based climate startups with strong commercial and environmental impact.

AgFlo — Brings precision to feed inventory, reducing costs and emissions at scale.Partake (Partage Club Inc.) — Live more than you own.PakVille — Reinventing construction with high-performance building panels made from recycled materials.PlasmaGear — PFAS is being phased out, and PlasmaGear is ready to replace it.Local Energy — Uses AI to turn complex thermal and industrial energy systems into flexible energy assets.BeNat — Waste less. Build more.Carbon Saver — Embeds carbon intelligence directly into existing building design tools, making emissions reduction automatic, fast and cost-effective.Altiro — Patented iron fuel technology that stores clean power and delivers it anywhere in the world.Polaris Aerospace — Redefining access to space.Secant Fuel — Turns captured CO₂ and water into low-carbon syngas, creating a simpler, lower-cost pathway to cleaner fuels and chemicals.

For more information: www.climatesolutionsprize.com

SOURCE Climate Solutions Prize

Technology

Workday Announces Fiscal 2027 First Quarter Financial Results

Published

5 hours ago

May 21, 2026

Fiscal First Quarter Total Revenues of $2.542 Billion, Up 13.5% Year-Over-Year

Subscription Revenues of $2.354 Billion, Up 14.3% Year-Over-Year

PLEASANTON, Calif., May 21, 2026 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT, today announced results for the fiscal 2027 first quarter ended April 30, 2026.

Fiscal 2027 First Quarter Results

Total revenues were $2.542 billion, an increase of 13.5% from the first quarter of fiscal 2026. Subscription revenues were $2.354 billion, an increase of 14.3% from the same period last year.Operating income was $338 million, or 13.3% of revenues, compared to an operating income of $39 million, or 1.8% of revenues, in the same period last year. Operating income in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP operating income for the first quarter was $809 million, or 31.8% of revenues, compared to a non-GAAP operating income of $677 million, or 30.2% of revenues, in the same period last year.1Diluted net income per share was $0.87, compared to diluted net income per share of $0.25 in the same period last year. Diluted net income per share in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP diluted net income per share was $2.66, compared to non-GAAP diluted net income per share of $2.23 in the same period last year.112-month subscription revenue backlog was $8.806 billion, up 15.5% from the same period last year. Total subscription revenue backlog was $27.294 billion, increasing 10.9% year-over-year.Operating cash flows were $696 million compared to $457 million in the same period last year. Free cash flows were $616 million compared to $421 million in the same period last year.1Workday repurchased approximately 12.0 million shares of Class A common stock for $1.6 billion as part of its share repurchase programs.Cash, cash equivalents, and marketable securities were $4.353 billion as of April 30, 2026.

1 See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.

Comments on the News

“We had a great Q1, and it makes one thing clear: Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and we’re moving with the speed and focus required to lead,” said Aneel Bhusri, co-founder, CEO, and chair, Workday. “I am very excited about Workday’s position and our path ahead. We have the platform, the trust, and the innovation to lead this next chapter, just as we did when we founded the company.”

“Our first quarter results demonstrate ongoing customer adoption across our platform, as enterprises around the globe turn to Workday to manage and empower their most important assets,” said Zane Rowe, CFO, Workday. “We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion, while increasing our fiscal 2027 non-GAAP operating margin guidance to 30.5%. Our focus remains on executing on our agentic AI roadmap while driving operational efficiencies as we scale.”

Recent Business Highlights

Workday welcomed new customers including ACHM Hotels by Marriott, Australian Gas Infrastructure Group, Del Monte Fresh Produce Company, Smiths Group, and State of Delaware, and expanded existing relationships with Bank OZK, GE Vernova, and Queensland University of Technology.The number of customers using Workday’s organically developed agents has more than doubled quarter-over-quarter, with over 4,000 customers using at least one of these agents, as of today, to support their business processes.In Q1, Workday supported 14 million hiring processes with its Recruiting Agent, up 44% year-over-year.The Workday customer community now represents more than 80 million users under contract.Sana from Workday – superintelligence for work – is now available to customers worldwide. Workday also introduced Sana for IT Service Management (ITSM) to handle common service tasks from HR, finance, and IT, and a new Travel Agent to bring travel and expenses together in one seamless experience.The Workday Agent System of Record is now generally available, giving customers visibility and control over all of their AI agents.Workday introduced new innovations to support the public sector and veteran workforce, including the Personnel Action Request Agent to modernize federal HR transactions and Military Skills Mapper to help organizations more effectively identify and hire military veteran talent.Workday expanded into Vietnam, its sixth market in the ASEAN region, joining Singapore, Malaysia, Thailand, Indonesia, and the Philippines.Workday announced EU-based data residency in Frankfurt and multilingual support for Workday Contract Lifecycle Management, providing organizations with a contract management solution that meets EU data residency requirements.Workday expanded its partnership with Microsoft; announced new partner offerings through Workday Recognition provided by Achievers and the Insperity HRScale™ solution; and welcomed Morgan Stanley at Work and PerkSpot to the Workday Wellness program.Workday was the only vendor to be named a Customers’ Choice in the 2026 Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises1 for two consecutive years.Workday was named a Leader in the Gartner® Magic Quadrant™ for Student Information Systems.2Workday was named one of the 2026 World’s Most Ethical Companies® by Ethisphere for the sixth consecutive year.KLAS Research recognized Workday as the 2026 Best in KLAS winner for ERP for large organizations.

Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises, Peer Community Contributor, 24 April 2026

Gartner Magic Quadrant for Higher Education SaaS Student Information Systems, Robert Yanckello, Grace Farrell, 31 March 2026

Financial Outlook

Workday is providing guidance for the fiscal 2027 second quarter ending July 31, 2026 as follows:

Subscription revenues of $2.455 billion, representing growth of 13%Non-GAAP operating margin of 30.0%1

Workday is updating guidance for the fiscal 2027 full year ending January 31, 2027 as follows:

Subscription revenues of $9.925 billion to $9.950 billion, representing growth of 12% to 13%Non-GAAP operating margin of 30.5%1

The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin
in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to predict with reasonable
certainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to stock-based
compensation and its related tax effects, acquisition-related costs, and restructuring costs.

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2027 first quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses its blog.workday.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Workday

Workday operates at the heart of the enterprise – HR, finance, and IT – where the margin for error is effectively zero. By tightly coupling AI with the context, guardrails, and trusted processes that run the business, Workday goes beyond AI that assists with work to agents that are capable of driving measurable outcomes. More than 11,500 organizations worldwide, including more than 65% of the Fortune 500, trust Workday to deliver. For more information about Workday, visit workday.com.

© 2026 Workday, Inc. All rights reserved. Workday and the Workday logo are trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Workday’s second quarter and full year fiscal 2027 subscription revenues and non-GAAP operating margin, momentum, growth, and innovation. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers’ or other users’ personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (iv) privacy concerns and evolving domestic or foreign laws and regulations; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) our reliance on our network of partners to drive additional growth of our revenues; (vii) the regulatory, economic, and political risks associated with our domestic and international operations; (viii) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers’ and users’ satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) delays or reductions in information technology spending; (xii) adverse litigation results; (xiii) changes in sales, which may not be immediately reflected in our results due to our subscription model; and (xiv) the impact of continuing global economic and geopolitical volatility and conflicts on our business, as well as on our customers, prospects, partners, and service providers. Further information on these and additional risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

Workday, Inc.

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

April 30, 2026

January 31, 2026

Assets

Current assets:

Cash and cash equivalents

$ 559

$ 1,501

Marketable securities

3,794

3,942

Trade and other receivables, net

1,575

2,332

Deferred costs

307

306

Prepaid expenses and other current assets

357

348

Total current assets

6,592

8,429

Property and equipment, net

1,121

1,093

Operating lease right-of-use assets

706

719

Deferred costs, noncurrent

619

634

Acquisition-related intangible assets, net

645

681

Deferred tax assets

745

829

Goodwill

5,228

5,229

Other assets

435

460

Total assets

$ 16,091

$ 18,074

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$ 116

$ 142

Accrued expenses and other current liabilities

457

454

Accrued compensation

508

642

Unearned revenue

4,325

5,010

Operating lease liabilities

131

130

Debt, current

998

Total current liabilities

6,535

6,378

Debt, noncurrent

1,990

2,987

Unearned revenue, noncurrent

Operating lease liabilities, noncurrent

686

704

Other liabilities

127

129

Total liabilities

9,408

10,269

Stockholders’ equity:

Common stock

Additional paid-in capital

12,932

12,673

Treasury stock

(5,834)

(4,220)

Accumulated other comprehensive loss

(125)

(136)

Accumulated deficit

(290)

(512)

Total stockholders’ equity

6,683

7,805

Total liabilities and stockholders’ equity

$ 16,091

$ 18,074

Workday, Inc.

Condensed Consolidated Statements of Operations

(in millions, except number of shares which are reflected in thousands and per share data)

(unaudited)

Three Months Ended April 30,

2026

2025

Revenues:

Subscription services

$ 2,354

$ 2,059

Professional services

188

181

Total revenues

2,542

2,240

Costs and expenses (1):

Costs of subscription services

412

350

Costs of professional services

192

187

Product development

705

663

Sales and marketing

679

623

General and administrative

216

212

Restructuring

166

Total costs and expenses

2,204

2,201

Operating income

338

Other income, net

Income before provision for income taxes

355

103

Provision for income taxes

133

Net income

$ 222

$ 68

Net income per share, basic

$ 0.87

$ 0.25

Net income per share, diluted

$ 0.87

$ 0.25

Weighted-average shares used to compute net income per share, basic

253,891

266,516

Weighted-average shares used to compute net income per share, diluted

254,313

270,296

(1) Costs and expenses include share-based compensation expense as follows:

Three Months Ended April 30,

2026

2025

Costs of subscription services

$ 37

$ 42

Costs of professional services

Product development

184

183

Sales and marketing

General and administrative

Restructuring

Total share-based compensation expense

$ 409

$ 459

Workday, Inc.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Three Months Ended April 30,

2026

2025

Cash flows from operating activities:

Net income

$ 222

$ 68

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Share-based compensation expense

409

459

Amortization of deferred costs

Non-cash lease expense

Net losses on investments

Accretion of discounts on marketable debt securities, net

(9)

(20)

Deferred income taxes

Asset impairments

Other

Changes in operating assets and liabilities:

Trade and other receivables, net

747

601

Deferred costs

(65)

(53)

Prepaid expenses and other assets

(31)

(38)

Accounts payable

(1)

(4)

Accrued expenses and other liabilities

(200)

(131)

Unearned revenue

(685)

(670)

Net cash provided by operating activities

696

457

Cash flows from investing activities:

Purchases of marketable securities

(200)

(1,345)

Maturities of marketable securities

231

722

Sales of marketable securities

140

Capital expenditures

(80)

(36)

Purchases of non-marketable equity and other investments

(4)

Sales of non-marketable equity and other investments

Other

Net cash provided by (used in) investing activities

(523)

Cash flows from financing activities:

Repurchases of common stock

(1,587)

(290)

Taxes paid related to net share settlement of equity awards

(146)

(211)

Net cash used in financing activities

(1,733)

(501)

Effect of exchange rate changes

(1)

Net decrease in cash, cash equivalents, and restricted cash

(941)

(566)

Cash, cash equivalents, and restricted cash at the beginning of period

1,509

1,554

Cash, cash equivalents, and restricted cash at the end of period

$ 568

$ 988

Workday, Inc.

Reconciliations of GAAP to Non-GAAP Data

Reconciliations of Workday’s GAAP to non-GAAP operating results are included in the following tables (in millions, except
number of shares which are reflected in thousands, percentages, and per share data). See the section titled “About Non-GAAP
Financial Measures” below for further details.

Three Months Ended April 30,

2026

2025

Non-GAAP operating income

Operating income

$ 338

$ 39

Share-based compensation expense (1)

409

417

Employer payroll tax-related items on employee stock transactions

Amortization of acquisition-related intangible assets

Acquisition-related costs

Restructuring costs

166

Non-GAAP operating income

$ 809

$ 677

Non-GAAP operating margin (2)

Operating margin

13.3 %

1.8 %

Share-based compensation expense (1)

16.1 %

18.6 %

Employer payroll tax-related items on employee stock transactions

0.7 %

1.2 %

Amortization of acquisition-related intangible assets

1.4 %

0.9 %

Acquisition-related costs

0.3 %

Restructuring costs

0.0 %

7.4 %

Non-GAAP operating margin

31.8 %

30.2 %

Non-GAAP net income

Net income

$ 222

$ 68

Share-based compensation expense (1)

409

417

Employer payroll tax-related items on employee stock transactions

Amortization of acquisition-related intangible assets

Acquisition-related costs

Restructuring costs

166

Net (gains) losses on strategic investments

Income tax effects

(26)

(105)

Non-GAAP net income

$ 676

$ 602

Non-GAAP diluted net income per share (2)(3)

Diluted net income per share

$ 0.87

$ 0.25

Share-based compensation expense (1)

1.61

1.54

Employer payroll tax-related items on employee stock transactions

0.08

0.10

Amortization of acquisition-related intangible assets

0.14

0.08

Acquisition-related costs

0.03

0.02

Restructuring costs

0.00

0.61

Net (gains) losses on strategic investments

0.03

0.00

Income tax effects

(0.10)

(0.37)

Non-GAAP diluted net income per share

$ 2.66

$ 2.23

(1)

Share-based compensation expense in the GAAP to non-GAAP reconciliation tables above excludes share-based compensation associated with
restructuring activities of $42 million for the three months ended April 30, 2025. These expenses are included in Restructuring costs.

(2)

Operating margin and diluted net income per share are calculated using unrounded data.

(3)

Weighted-average shares used to calculate GAAP and non-GAAP diluted net income per share were 254,313 and 270,296 for the three months
ended April 30, 2026, and 2025, respectively.

Reconciliation of Workday’s GAAP cash flows from operating activities to non-GAAP free cash flow is as follows (in millions). See the section titled
“About Non-GAAP Financial Measures” below for further details.

Three Months Ended April 30,

2026

2025

Net cash provided by operating activities

$ 696

$ 457

Less: Capital expenditures

(80)

(36)

Free cash flows

$ 616

$ 421

About Non-GAAP Financial Measures

To provide investors and others with additional information regarding Workday’s results, the following non-GAAP financial measures are disclosed: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and free cash flows. Workday has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP operating income and non-GAAP operating margin differ from GAAP in that they exclude share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, and restructuring costs. Non-GAAP net income and non-GAAP diluted net income per share differ from GAAP in that they exclude share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, restructuring costs, gains and losses on strategic investments, and income tax effects. Free cash flows differ from GAAP cash flows from operating activities in that it treats capital expenditures as a reduction to cash flows.

Workday’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday’s financial performance. Management believes these non-GAAP financial measures reflect Workday’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday’s operating performance due to the following factors:

Share-based compensation expense. Share-based compensation primarily consists of non-cash expenses for employee restricted stock units and our employee stock purchase plan. Although share-based compensation is an important aspect of the compensation of our employees and executives, this expense is determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expense is not reflective of the value ultimately received by the grant recipients.Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expense has on our operating results. Similar to share-based compensation expense, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe this activity is reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP financial measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.Acquisition-related costs. Acquisition-related costs include direct transaction costs, such as due diligence and advisory fees, and certain compensation and integration-related expenses. We exclude the effects of acquisition-related costs as we believe these transaction-specific expenses are inconsistent in amount and frequency and do not correlate to the operation of our business.Restructuring costs. Restructuring costs are associated with a formal restructuring plan and are primarily related to workforce reductions, the closure of facilities, and other exit and disposal activities. We exclude these expenses because they are not reflective of ongoing business and operating results.Gains and losses on strategic investments. Our strategic investments include investments in early stage companies that are valuable to Workday customers and complementary to Workday products. Gains and losses on strategic investments may result from observable price adjustments and impairment charges on non-marketable equity securities, ongoing mark-to-market adjustments on marketable equity securities, and the sale of equity investments. We do not rely on these securities to fund our ongoing operations and therefore we do not consider the gains and losses on these strategic investments to be reflective of our ongoing operations.Income tax effects. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a three year financial projection that excludes the direct impact of the items excluded from GAAP income in calculating our non-GAAP income. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2027 and 2026, we determined the projected non-GAAP tax rate to be 19%, which reflects currently available information, as well as other factors and assumptions. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.

Additionally, with regards to free cash flows, Workday’s management believes that reducing cash provided by operating activities by capital expenditures is meaningful to investors and others because it provides an enhanced view of cash flow generation from the ongoing operations of our business, and it balances operating results, cash management, and capital efficiency.

The use of these non-GAAP measures have certain limitations as they do not reflect all items of expense or cash that affect Workday’s operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday’s financial information in its entirety and not rely on a single financial measure.

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SOURCE Workday, Inc.