PagerDuty, Inc.

common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

Amortization of debt issuance costs The imputed interest rates of the Company's convertible senior notes (the 2025 Notes and the 2028 Notes or, collectively, the Notes ) was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

The debt issuance costs are amortized as interest expense.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, which include transaction costs, acquisition-related retention payments and asset impairment, restructuring costs, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax adjustments, which are not necessarily reflective of operational performance during a given period.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

htm EX-99.1 Document PagerDuty Announces Second Quarter Fiscal 2026 Financial Results Second quarter revenue increased 6% year over year to $123 million Annual Recurring Revenue ( ARR ) grew 5% year over year to $499 million Second quarter operating income was nearly $4 million non-GAAP operating income was $31 million New Chief Revenue Officer to join as leader of global go-to-market strategy and drive revenue growth SAN FRANCISCO (BUSINESS WIRE) September 3, 2025 PagerDuty, Inc.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

Announced the appointment of Todd McNabb as Chief Revenue Officer, who will lead the global go-to-market strategy, driving revenue growth and retention, effective September 29, 2025.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

3 Forward-Looking Statements This press release and the related webcast contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.

SEC original ↗PagerDuty, Inc. — Earnings release (8-K exhibit)EX-99Sep 3, 2025

Legal Proceedings 42 Item 1A.

SEC original ↗PagerDuty, Inc. — 10-Q Quarterly report10-QAug 27, 2026

Exhibits 44 SIGNATURES 45 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ( Form 10-Q ) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ), which statements involve substantial risk and uncertainties.

SEC original ↗PagerDuty, Inc. — 10-Q Quarterly report10-QAug 27, 2026

Such forward-looking statements are based on our expectations as of the date of this filing and are subject to a number of risks, uncertainties and assumptions, including, but not limited to, risks detailed in the Risk Factors section of this Form 10-Q and in our Annual Report on Form 10-K for the year ended January 31, 2026, filed with the Securities and Exchange Commission (the SEC ) on March 12, 2026.

SEC original ↗PagerDuty, Inc. — 10-Q Quarterly report10-QAug 27, 2026

Readers are urged to carefully review and consider the various disclosures made in this Form 10-Q and in other documents we file from time to time with the SEC, that disclose risks and uncertainties that may affect our business.

SEC original ↗PagerDuty, Inc. — 10-Q Quarterly report10-QAug 27, 2026

In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Form 10-Q may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

SEC original ↗PagerDuty, Inc. — 10-Q Quarterly report10-QAug 27, 2026