FIG: 1Q Results—AI-Enabled Incremental Growth

Research evidence excerpt

FIG: 1Q Results—AI-Enabled Incremental Growth

h, FY OpM inches higher: 1Q gross margin was a touch below 2027E 0.10 E 0.05 E 0.09 E 0.10 E 0.34 E

Street at 82% (down 4pp QoQ), as AI usage exceeded expects. Mgmt highlighted plans Prior 0.06 E 0.03 E NC 0.09 E 0.27 E

to improve model efficiency (routing, 1P models) & benefit from the start of discrete

Source: Company Data, Wells Fargo Securities estimates, and Factset.

monetization (AI credits) but was unwilling to call 1Q a trough—likely preserving lever to NA = Not Available, NC = No Change, NE = No Estimate

further subsidize adoption (AI Assistant, MCP, Weave in Alpha). Op Inc still beat solidly in

1Q & passed through to FY guidance (margin raised ~100bps to ~9%). Michael Turrin, CFA

Equity Analyst | Wells Fargo Securities, LLC

Michael.Turrin@wellsfargo.com | 628-629-7565

Make driving broader adoption, multiple unmonetized surfaces ahead: (1) top of Richard Poland

funnel—Pro conversions +150% YoY & paid customers +54% YoY to 690K; (2) seat Equity Analyst | Wells Fargo Securities, LLC

expansion (PMs, devs, etc.)—Google expansion, hyperscaler signed 35K seat deal & Richard.D.Poland@wellsfargo.com | 212-214-5333

MCP-using customers grew Full seats ~70% faster; (3) direct monetization—since credit Austin Williams

limits went live on Mar 18th, 75% of Org/Ent customers who exceeded AI credit limits Associate Equity Analyst | Wells Fargo Securities, LLC

continued usage in Apr & 60%+ of $100K+ customers use Make weekly (up from 50% in Austin.R.Williams@wellsfargo.com | 628-629-7572

4Q). Rachel Chang

Associate Equity Analyst | Wells Fargo Securities, LLC

Estimate Changes: To/from: FY26 revenue $1,425M/$1,372M, GM to/from at Rachel.Chang@wellsfargo.com | 212-214-3315

83.0%/83.0%, OM to/from 9.1%/7.7%, FCF to/from $204M/$104M.