Prepared Monday 12 October 2026. Your thesis, from your watchlist: "Subscriptions growing faster than costs." Your stop condition: total costs growing faster than subscription revenue for two quarters in a row.

Report date

Thursday 22 October 2026, after the market closes. Call at 17:00 Eastern. That is ten days from today.

Source: the company's investor relations page, as you copied it. Web search is off here, so I have not checked it myself. Worth one more look at the IR page in the days before, since dates occasionally move.

What they said last time

Quoted from the second quarter results release (quarter ended 30 June 2026, released 6 August 2026), unless noted:

1. Third quarter revenue: "For the third quarter, we expect total revenue of $86.0 million to $88.0 million."
2. Full year margin: "For the full year, we continue to expect an operating margin of around 10%."
3. Hiring: "As we said last quarter, we expect the pace of hiring to slow in the second half of the year." So this was first said with the first quarter results and repeated in August.
4. Self-serve plan: launched in July and "is ahead of plan", with no numbers given. Source: your notes from the second quarter call (the call date is not in your notes).
5. Self-serve disclosure: they would report self-serve customer numbers "starting next quarter", which means this report. Source: your notes from the same call.

Not guided: subscription revenue, operating expenses and net revenue retention. So for the two numbers your thesis rests on, there is no company figure to compare against, only last quarter's growth rates.

What to watch

Watch item	Why it matters to your thesis	Last quarter (Q2 release, 6 Aug 2026)	What the company said to expect	Where it will appear
Subscription revenue, growth year over year	The first half of your thesis	$71.0M, up 24%, 84% of total revenue. Net revenue retention 112%	No subscription guidance. Total revenue guided to $86.0M to $88.0M	Release headline and the revenue lines of the income statement
Total costs, growth year over year (your definition, see below)	The second half of your thesis	Total operating expenses $58.9M, up 21%	Nothing on costs directly; see hiring	Income statement: cost of revenue and total operating expenses
Hiring pace	The company named sales and marketing headcount as the main cost driver	Expense growth "driven mainly by headcount growth in sales and marketing"	"we expect the pace of hiring to slow in the second half of the year"	Release commentary, prepared remarks and Q&A on the 17:00 call, headcount if disclosed
Self-serve customer numbers	A new source of subscriptions, and a check on whether they do what they said	"Ahead of plan", no numbers (your call notes)	Self-serve customer numbers "starting next quarter"	Release or call. If absent, note that too
Full year operating margin outlook	Where revenue against costs shows up in one number	9.6% for the second quarter	"around 10%" for the full year	Outlook section of the release

Decide what "total costs" means before Thursday. The line you pasted is "total operating expenses", and it cannot be everything: revenue minus operating expenses would give a margin of about 30%, but the reported operating margin was 9.6%. That leaves roughly $17.2M of other costs in the second quarter, most likely cost of revenue, for total costs of about $76.1M. That is my arithmetic from the figures you pasted, not a company number, so check it against the income statement.

• Operating expenses only: the second quarter passed, with subscriptions up 24% and operating expenses up 21%.
• Total costs including cost of revenue: I cannot tell the second quarter growth rate from what you pasted, because the prior year figure is not there. The income statement in the August release should have it.

Pick one and use it for both quarters of your test.

Thesis check, written in advance

On the operating expenses line, the second quarter counts as a pass, so this report on its own cannot meet your stop condition. At most it can be the first of two quarters, and the fourth quarter report would decide it. If you choose the wider definition, confirm the second quarter result first.

Supports the thesis

• Subscription revenue growth year over year is above total costs growth year over year. A wider gap than the second quarter's 3 points (24% against 21%) is a stronger result.
• Hiring slowed as the company said it would, and it shows in the cost lines, not only in the commentary.
• The full year operating margin outlook of around 10% is kept or raised.
• Self-serve customer numbers are reported, as promised.

Cuts against the thesis

• Total costs grow faster than subscription revenue. That is quarter one of your stop condition, and the fourth quarter report becomes quarter two.
• Hiring did not slow, or the company walks back what it said about hiring.
• The full year operating margin outlook is lowered.
• Self-serve numbers are not reported, or are replaced with a vaguer measure.
• A softer signal, not your stop condition: net revenue retention falling from 112%, since that is the part of subscription growth coming from existing customers.

Known risks

• Report timing. The release comes after Thursday's close, so the first regular session that can react to it is Friday 23 October. That is exactly the kind of gap your trading plan talks about. (Timing from the IR page, as you copied it.)
• Anything else already public, such as a guidance change already announced, a lockup ending or a large investor reducing its stake: I could not check, since web search is off, and nothing you pasted mentions one. I have left this empty rather than guess. Worth a look at the IR news page and recent filings before Thursday.

For your journal

1. If the thesis is cut on Thursday, what will you do? Your rule needs two quarters in a row, so a weak third quarter does not trigger it by itself. Will you wait for the fourth quarter report as your rule says, or would anything on the "cuts against" list make you act after one quarter? Write the answer down before the 22nd.

2. Does your position size still fit your risk rule through a gap? 1% of $25,000 is $250. A stop order does not protect against an overnight gap, because the price can open past it, and your plan says you do not keep a position through an event you cannot size for a gap. The arithmetic below only shows how gap size and position value relate. It is not an estimate of the move.

   If the shares opened this far below Thursday's close	Largest position value that keeps the loss at $250
   10%	$2,500
   20%	$1,250
   30%	about $833

   How does your current position compare, and what size of gap have you decided to plan for?

3. What will you check before acting, and when? For example: the release itself rather than headlines, the five watch items in order, the definition of total costs you chose, and whether you will wait for the 17:00 call. Write down the earliest point at which you would act.

Research and journaling only. Not financial advice.