Document

Exhibit 99.2

Blucora, Inc.

Supplemental Information

December 31, 2021

Table of Contents


			Page
Financial Information:
Condensed Consolidated Statements of Operations (Unaudited)			2
Condensed Consolidated Financial Results (Unaudited)			3
Reconciliation of Certain Non-GAAP Financial Measures to the Nearest Comparable GAAP Financial Measures			5
Net Leverage Ratio			7
Reconciliation of Operating Free Cash Flow			8

Operating Metrics:
Wealth Management			9
Tax Software			11

Blucora Condensed Consolidated Statements of Operations


(Unaudited, in thousands, except % and per share amounts. Rounding differences may exist)	2019		2020										2021
	FY 12/31		1Q		2Q		3Q		4Q		FY 12/31		1Q		2Q		3Q		4Q		FY 12/31
Segment revenue:
Wealth Management	$	507,979	$	144,989	$	115,884	$	135,932	$	149,384	$	546,189	$	154,491	$	162,395	$	169,135	$	172,192	$	658,213
Tax Software	209,966		118,331		45,238		39,421		5,773		208,763		123,892		91,917		5,039		6,139		226,987
Total segment revenue	717,945		263,320		161,122		175,353		155,157		754,952		278,383		254,312		174,174		178,331		885,200
Operating expenses:
Cost of revenue:
Wealth Management	352,081		102,342		83,868		96,122		103,630		385,962		108,623		113,910		120,641		121,119		464,293
Tax Software	10,691		4,013		3,054		2,692		2,569		12,328		5,578		4,429		2,323		3,228		15,558

Total segment cost of revenue	362,772		106,355		86,922		98,814		106,199		398,290		114,201		118,339		122,964		124,347		479,851
Engineering and technology	30,931		8,515		7,377		6,007		5,359		27,258		7,128		7,231		7,874		8,471		30,704
Sales and marketing	126,205		79,710		40,057		31,018		26,833		177,618		77,562		34,848		28,399		32,522		173,331
General and administrative	78,529		24,728		20,200		18,605		18,625		82,158		24,685		23,832		23,102		27,052		98,671
Acquisition and integration	25,763		5,682		2,824		10,276		12,303		31,085		8,103		18,169		2,241		4,285		32,798
Depreciation	5,479		1,796		1,675		1,874		1,948		7,293		2,300		3,204		2,867		2,535		10,906
Amortization of acquired intangible assets	37,357		7,748		6,673		7,746		7,578		29,745		7,175		7,063		7,009		7,073		28,320
Impairment of goodwill and an intangible asset (1)	50,900		270,625		—		—		—		270,625		—		—		—		—		—

Total operating expenses	717,936		505,159		165,728		174,340		178,845		1,024,072		241,154		212,686		194,456		206,285		854,581
Operating income (loss)	9		(241,839)		(4,606)		1,013		(23,688)		(269,120)		37,229		41,626		(20,282)		(27,954)		30,619
Interest expense and other, net	(16,915)		(6,135)		(5,288)		(11,963)		(7,918)		(31,304)		(7,883)		(8,024)		(8,295)		(7,878)		(32,080)
Income (loss) before income taxes	(16,906)		(247,974)		(9,894)		(10,950)		(31,606)		(300,424)		29,346		33,602		(28,577)		(35,832)		(1,461)
Income tax benefit (expense)	65,054		(67,520)		59,539		(15,256)		(19,094)		(42,331)		(1,700)		(1,994)		774		12,138		9,218

Net income (loss)	$	48,148	$	(315,494)	$	49,645	$	(26,206)	$	(50,700)	$	(342,755)	$	27,646	$	31,608	$	(27,803)	$	(23,694)	$	7,757

Net income (loss) per share:
Basic	$	1.00	$	(6.60)	$	1.04	$	(0.55)	$	(1.05)	$	(7.14)	$	0.57	$	0.65	$	(0.57)	$	(0.49)	$	0.16
Diluted	$	0.98	$	(6.60)	$	1.03	$	(0.55)	$	(1.05)	$	(7.14)	$	0.56	$	0.64	$	(0.57)	$	(0.49)	$	0.16

Weighted average shares outstanding:
Basic	48,264		47,827		47,941		48,039		48,107		47,978		48,261		48,508		48,707		48,834		48,578
Diluted	49,282		47,827		48,092		48,039		48,107		47,978		49,097		49,385		48,707		48,834		49,526

____________________________

(1)In the first quarter of 2020, we recognized a $270.6 million goodwill impairment related to our Wealth Management reporting unit. In 2019, we recognized a $50.9 million impairment of an intangible asset related to the HD Vest trade name intangible asset.

Blucora Condensed Consolidated Financial Results (1)


(Unaudited, in thousands, except % and per share amounts. Rounding differences may exist)	2019			2020															2021
	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q			3Q			4Q			FY 12/31
Segment revenue:
Wealth Management (1)	$	507,979		$	144,989		$	115,884		$	135,932		$	149,384		$	546,189		$	154,491		$	162,395		$	169,135		$	172,192		$	658,213
Tax Software (2)	209,966			118,331			45,238			39,421			5,773			208,763			123,892			91,917			5,039			6,139			226,987
Total segment revenue	$	717,945		$	263,320		$	161,122		$	175,353		$	155,157		$	754,952		$	278,383		$	254,312		$	174,174		$	178,331		$	885,200
Segment operating income: (3)
Wealth Management (1)	$	68,292		$	22,598		$	11,731		$	17,498		$	20,368		$	72,195		$	19,396		$	21,396		$	19,564		$	21,856		$	82,212
Tax Software (2)	96,249			37,753			6,659			16,234			(11,025)			49,621			50,888			63,448			(13,864)			(18,593)			81,879
Total segment operating income	$	164,541		$	60,351		$	18,390		$	33,732		$	9,343		$	121,816		$	70,284		$	84,844		$	5,700		$	3,263		$	164,091
Segment operating income as a % of segment revenue:
Wealth Management (1)	13		%	16		%	10		%	13		%	14		%	13		%	13		%	13		%	12		%	13		%	12		%
Tax Software (2)	46		%	32		%	15		%	41		%	(191)		%	24		%	41		%	69		%	(275)		%	(303)		%	36		%
Total segment operating income as a % of segment revenue	23		%	23		%	11		%	19		%	6		%	16		%	25		%	33		%	3		%	2		%	19		%
Unallocated corporate-level general and administrative expenses (3)	$	27,361		$	7,016		$	5,810		$	6,745		$	7,118		$	26,689		$	5,694		$	6,259		$	6,499		$	7,103		$	25,555
Adjusted EBITDA (4)	$	137,180		$	53,335		$	12,580		$	26,987		$	2,225		$	95,127		$	64,590		$	78,585		$	(799)		$	(3,840)		$	138,536
Other unallocated corporate-level operating expenses: (3)
Stock-based compensation	$	16,300		$	(1,201)		$	3,904		$	4,517		$	2,846		$	10,066		$	5,610		$	5,160		$	4,729		$	5,255		$	20,754
Acquisition and integration—Excluding change in the fair value of acquisition-related contingent consideration	25,763			5,682			2,824			11,276			3,003			22,785			1,803			6,669			541			1,385			10,398
Acquisition and integration—Change in the fair value of acquisition-related contingent consideration	—			—			—			(1,000)			9,300			8,300			6,300			11,500			1,700			2,900			22,400
Depreciation	6,851			2,420			2,412			2,620			2,710			10,162			3,243			4,102			3,906			3,855			15,106
Amortization of acquired intangible assets	37,357			7,748			6,673			7,746			7,578			29,745			7,175			7,063			7,009			7,073			28,320
Executive transition costs	—			9,184			636			405			476			10,701			—			—			—			—			—
Headquarters relocation costs	—			716			737			410			—			1,863			—			—			—			—			—
Contested proxy and other legal and consulting costs	—			—			—			—			—			—			3,230			2,465			1,598			3,646			10,939
Impairment of goodwill and an intangible asset	50,900			270,625			—			—			—			270,625			—			—			—			—			—

Operating income (loss)	$	9		$	(241,839)		$	(4,606)		$	1,013		$	(23,688)		$	(269,120)		$	37,229		$	41,626		$	(20,282)		$	(27,954)		$	30,619
Unallocated interest expense and other, net: (3)
Interest expense	$	19,017		$	5,316		$	4,840		$	7,254		$	7,160		$	24,570		$	7,183		$	7,302		$	7,304		$	7,018		$	28,807
Amortization of debt issuance costs	1,042			313			331			362			366			1,372			363			377			388			394			1,522
Accretion of debt discounts	228			68			70			276			279			693			277			284			290			295			1,146
Total interest expense	20,287			5,697			5,241			7,892			7,805			26,635			7,823			7,963			7,982			7,707			31,475
Interest income	(449)			(14)			(11)			(2)			(38)			(65)			(2)			—			—			(19)			(21)
Gain on sale of a business	(3,256)			—			—			(349)			—			(349)			—			—			—			—			—
Non-capitalized debt issuance expenses	—			—			—			3,687			—			3,687			—			—			—			—			—
Other	333			452			58			735			151			1,396			62			61			313			190			626
Total interest expense and other, net	16,915			6,135			5,288			11,963			7,918			31,304			7,883			8,024			8,295			7,878			32,080
Income (loss) before income taxes	(16,906)			(247,974)			(9,894)			(10,950)			(31,606)			(300,424)			29,346			33,602			(28,577)			(35,832)			(1,461)
Income tax (benefit) expense:
Cash	3,564			483			158			269			362			1,272			1,969			2,688			(577)			(1,793)			2,287
Non-cash (5)	(68,618)			67,037			(59,697)			14,987			18,732			41,059			(269)			(694)			(197)			(10,345)			(11,505)
Total income tax (benefit) expense	(65,054)			67,520			(59,539)			15,256			19,094			42,331			1,700			1,994			(774)			(12,138)			(9,218)
GAAP Net Income (Loss)	$	48,148		$	(315,494)		$	49,645		$	(26,206)		$	(50,700)		$	(342,755)		$	27,646		$	31,608		$	(27,803)		$	(23,694)		$	7,757


GAAP Net Income (Loss) per share - Diluted	$	0.98		$	(6.60)		$	1.03		$	(0.55)		$	(1.05)		$	(7.14)		$	0.56		$	0.64		$	(0.57)		$	(0.49)		$	0.16
Non-GAAP Net Income (Loss) (4)	$	104,198		$	43,561		$	4,463		$	15,055		$	(8,999)		$	54,080		$	50,952		$	63,122		$	(12,754)		$	(14,131)		$	87,189
Non-GAAP Net Income (Loss) per share - Diluted (4) (6)	$	2.11		$	0.90		$	0.09		$	0.31		$	(0.19)		$	1.12		$	1.04		$	1.28		$	(0.26)		$	(0.29)		$	1.76

Basic weighted average shares outstanding	48,264			47,827			47,941			48,039			48,107			47,978			48,261			48,508			48,707			48,834			48,578
Diluted weighted average shares outstanding (6)	49,282			47,827			48,092			48,039			48,107			47,978			49,097			49,385			48,707			48,834			49,526

Notes to Condensed Consolidated Financial Results on next page

Notes to Condensed Consolidated Financial Results

(1)The operations of 1st Global are included in the Company's operating results as part of the Wealth Management segment beginning May 6, 2019 when 1st Global was acquired. The operations of Avantax Planning Partners (formerly "HKFS") are included in the Company's operating results as part of the Wealth Management segment beginning July 1, 2020 when HKFS was acquired.

(2)As a highly seasonal business, a significant portion of Tax Software revenue is typically generated in the first two quarters of the calendar year. In March 2020 and as a result of the COVID-19 pandemic, the Internal Revenue Service (“IRS”) extended the filing deadline for federal tax returns from April 15, 2020 to July 15, 2020. This filing extension resulted in the shifting of a significant portion of Tax Software segment revenue that is usually earned in the first and second quarters to the third quarter of 2020. As a result of the continued impact of the COVID-19 pandemic, including disruptions associated with the distribution of the second and third rounds of Economic Impact Payments, the IRS delayed the start of the 2021 tax season and extended the filing and payment deadline for tax year 2020 federal tax returns from April 15, 2021 to May 17, 2021. In addition, the IRS extended the federal filing and payment deadline for Texas, Louisiana, and Oklahoma to June 15, 2021. Beyond federal filings, the majority of states also extended their filing and payment deadlines for tax year 2020 state tax returns. This extension resulted in the shifting of a significant portion of Tax Software segment revenue that is usually earned in the first quarter to the second quarter of 2021.

(3)We do not allocate certain operating expenses (including personnel and overhead costs), stock-based compensation, acquisition and integration costs, depreciation, amortization of acquired intangible assets, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, impairment of goodwill and an intangible asset, interest expense and other, net, or income taxes to the reportable segments. General and administrative costs are included in "Unallocated corporate-level expenses."

(4)See the Reconciliation of Certain Non-GAAP Financial Measures to the Nearest Comparable GAAP Financial Measures on page 5.

(5)Amounts represent the non-cash portion of income taxes. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these federal net operating losses will expire, if not utilized, between 2022 and 2024.

(6)For periods in which non-GAAP net income is generated, non-GAAP net income per share is calculated using diluted weighted average shares outstanding. For periods in which non-GAAP net loss is generated, diluted weighted average shares outstanding is the same as basic weighted average shares outstanding.

Blucora Reconciliation of Certain Non-GAAP Financial Measures to the Nearest Comparable GAAP Financial Measures (1) (2)


	2019		2020										2021
(Unaudited, in thousands, rounding differences may exist)	FY 12/31		1Q		2Q		3Q		4Q		FY 12/31		1Q		2Q		3Q		4Q		FY 12/31
Adjusted EBITDA (1)
Net income (loss) (2)	$	48,148	$	(315,494)	$	49,645	$	(26,206)	$	(50,700)	$	(342,755)	$	27,646	$	31,608	$	(27,803)	$	(23,694)	$	7,757
Stock-based compensation	16,300		(1,201)		3,904		4,517		2,846		10,066		5,610		5,160		4,729		5,255		20,754
Depreciation and amortization of acquired intangible assets	44,208		10,168		9,085		10,366		10,288		39,907		10,418		11,165		10,915		10,928		43,426
Interest expense and other, net	16,915		6,135		5,288		11,963		7,918		31,304		7,883		8,024		8,295		7,878		32,080
Acquisition and integration—Excluding change in the fair value of HKFS Contingent Consideration	25,763		5,682		2,824		11,276		3,003		22,785		1,803		6,669		541		1,385		10,398
Acquisition and integration—Change in the fair value of HKFS Contingent Consideration	—		—		—		(1,000)		9,300		8,300		6,300		11,500		1,700		2,900		22,400
Executive transition costs	—		9,184		636		405		476		10,701		—		—		—		—		—
Headquarters relocation costs	—		716		737		410		—		1,863		—		—		—		—		—
Contested proxy and other legal and consulting costs	—		—		—		—		—		—		3,230		2,465		1,598		3,646		10,939


Income tax (benefit) expense	(65,054)		67,520		(59,539)		15,256		19,094		42,331		1,700		1,994		(774)		(12,138)		(9,218)
Impairment of goodwill and an intangible asset	50,900		270,625		—		—		—		270,625		—		—		—		—		—
Adjusted EBITDA(1)	$	137,180	$	53,335	$	12,580	$	26,987	$	2,225	$	95,127	$	64,590	$	78,585	$	(799)	$	(3,840)	$	138,536
Non-GAAP Net Income (Loss) (1)
Net income (loss) (2)	$	48,148	$	(315,494)	$	49,645	$	(26,206)	$	(50,700)	$	(342,755)	$	27,646	$	31,608	$	(27,803)	$	(23,694)	$	7,757
Stock-based compensation	16,300		(1,201)		3,904		4,517		2,846		10,066		5,610		5,160		4,729		5,255		20,754
Amortization of acquired intangible assets	37,357		7,748		6,673		7,746		7,578		29,745		7,175		7,063		7,009		7,073		28,320
Acquisition and integration—Excluding change in the fair value of HKFS Contingent Consideration	25,763		5,682		2,824		11,276		3,003		22,785		1,803		6,669		541		1,385		10,398
Acquisition and integration—Change in the fair value of HKFS Contingent Consideration	—		—		—		(1,000)		9,300		8,300		6,300		11,500		1,700		2,900		22,400
Executive transition costs	—		9,184		636		405		476		10,701		—		—		—		—		—
Headquarters relocation costs	—		716		737		410		—		1,863		—		—		—		—		—
Contested proxy and other legal and consulting costs	—		—		—		—		—		—		3,230		2,465		1,598		3,646		10,939
Non-capitalized debt issuance expenses	—		—		—		3,687		—		3,687		—		—		—		—		—


Impairment of goodwill and an intangible asset	50,900		270,625		—		—		—		270,625		—		—		—		—		—
Gain on the sale of a business	(3,256)		—		—		(349)		—		(349)		—		—		—		—		—
Cash tax impact of adjustments to GAAP net income (loss)	(2,396)		(736)		(259)		(418)		(234)		(1,647)		(543)		(649)		(331)		(351)		(1,874)
Non-cash income tax (benefit) expense	(68,618)		67,037		(59,697)		14,987		18,732		41,059		(269)		(694)		(197)		(10,345)		(11,505)
Non-GAAP Net Income (Loss) (1)	$	104,198	$	43,561	$	4,463	$	15,055	$	(8,999)	$	54,080	$	50,952	$	63,122	$	(12,754)	$	(14,131)	$	87,189

Non-GAAP Net Income (Loss) per share - Diluted (1) (3)	$	2.11	$	0.90	$	0.09	$	0.31	$	(0.19)	$	1.12	$	1.04	$	1.28	$	(0.26)	$	(0.29)	$	1.76
Diluted weighted average shares outstanding (3)	49,282		48,253		48,092		48,203		48,107		48,244		49,097		49,385		48,707		48,834		49,526

Notes to Reconciliations of Certain Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures on next page

Notes to Reconciliations of Certain Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(1) We define Adjusted EBITDA as net income (loss), determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets, interest expense and other, net, acquisition and integration costs, contested proxy and other legal and consulting costs, impairment of goodwill, executive transition costs, headquarters relocation costs, and income tax benefit (expense). Interest expense and other, net primarily consists of interest expense, net and non-capitalized debt issuance expenses. Acquisition and integration costs primarily relate to the acquisition of Avantax Planning Partners and 1st Global. Impairment of goodwill relates to the impairment of our Wealth Management reporting unit goodwill in the first quarter of 2020. Executive transition costs relate to the departure of certain Company executives in the first quarter of 2020. Headquarters relocation costs relate to the process of moving from our Dallas and Irving offices to our new headquarters.

We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss). Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

We define Non-GAAP Net Income (Loss) as net income (loss), determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets, acquisition and integration costs, contested proxy and other legal and consulting costs, impairment of goodwill, executive transition costs, non-capitalized debt issuance expenses, headquarters relocation costs, gain on the sale of a business, the related cash tax impact of those adjustments, and non-cash income tax (benefit) expense. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if not utilized, between 2022 and 2024. Gain on the sale of a business relates to the disposition of SimpleTax in 2019 and the subsequent working capital adjustment in the third quarter of 2020. Non-capitalized debt issuance expenses relate to the expense recognized as a result of the Term Loan increase in the third quarter of 2020.

We believe that Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or that have not been, or are not expected to be, settled in cash. Additionally, we believe that Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss) and GAAP net income (loss) per share. Other companies may calculate Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per share differently, and, therefore, these measures may not be comparable to similarly titled measures of other companies.

(2) See the Condensed Consolidated Financial Results on page 3.

(3) For periods in which non-GAAP net income is generated, Non-GAAP Net Income (Loss) per share is calculated using diluted weighted average shares outstanding. For periods in which Non-GAAP Net Loss is generated, diluted weighted average shares outstanding is the same as basic weighted average shares outstanding.

Blucora Reconciliation of Trailing Twelve Month ("TTM") Adjusted EBITDA (1) (2)


	2019		2020								2021
(Unaudited, in thousands, rounding differences may exist)	TTM 4Q		TTM 1Q		TTM 2Q		TTM 3Q		TTM 4Q		TTM 1Q		TTM 2Q		TTM 3Q		TTM 4Q
Adjusted EBITDA (1) (2)
Net income (loss)	$	48,148	$	(329,516)	$	(310,907)	$	(274,727)	$	(342,755)	$	385	$	(17,652)	$	(19,249)	$	7,757
Stock-based compensation	16,300		12,656		12,478		12,356		10,066		16,877		18,133		18,345		20,754
Depreciation and amortization of acquired intangible assets	44,208		45,022		43,276		41,749		39,907		40,157		42,237		42,786		43,426
Interest expense and other, net	16,915		19,092		19,262		28,619		31,304		33,052		35,788		32,120		32,080
Acquisition and integration—Excluding change in the fair value of HKFS Contingent Consideration	25,763		29,648		23,289		27,806		22,785		18,906		22,751		12,016		10,398
Acquisition and integration—Change in the fair value of HKFS Contingent Consideration	—		—		—		(1,000)		8,300		14,600		26,100		28,800		22,400
Executive transition costs	—		9,184		9,820		10,225		10,701		1,517		881		476		—
Headquarter relocation costs	—		716		1,453		1,863		1,863		1,147		410		—		—
Contested proxy and other legal and consulting costs	—		—		—		—		—		3,230		5,695		7,293		10,939

Impairment of goodwill and an intangible asset	50,900		321,525		321,525		270,625		270,625		—		—		—		—
Income tax (benefit) expense	(65,054)		(1,519)		(52,934)		(25,347)		42,331		(23,489)		38,044		22,014		(9,218)
Adjusted EBITDA(1)	$	137,180	$	106,808	$	67,262	$	92,169	$	95,127	$	106,382	$	172,387	$	144,601	$	138,536

Blucora Net Leverage Ratio (1) (3) (4)


	2019			2020												2021
(Unaudited, in thousands, rounding differences may exist)	4Q			1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q
DEBT:
Senior Secured Credit Facility	$	399,687		$	444,375		$	389,062		$	563,609		$	563,156		$	562,703		$	562,250		$	561,797		$	561,344
CASH:
Cash and cash equivalents	80,820			168,198			90,081			151,166			150,125			191,803			232,409			184,926			134,824
NET DEBT (3)	$	318,867		$	276,177		$	298,981		$	412,443		$	413,031		$	370,900		$	329,841		$	376,871		$	426,520

Last twelve months:





ADJUSTED EBITDA (1) (2)	$	137,180		$	106,808		$	67,262		$	92,169		$	95,127		$	106,382		$	172,387		$	144,601		$	138,536

NET LEVERAGE RATIO (1) (3) (4)	2.3		x	2.6		x	4.4		x	4.5		x	4.3		x	3.5		x	1.9		x	2.6		x	3.1		x

____________________________

(1) Non-GAAP measure using Adjusted EBITDA for the last twelve months. Adjusted EBITDA for the trailing twelve month period is reconciled to the nearest comparable GAAP measure, net income (loss).

(2) For additional information on Adjusted EBITDA and its use as a non-GAAP measure, see page 6.

(3) We define Net Debt, a non-GAAP financial measure, as the outstanding principal of debt less cash and cash equivalents. Management believes that the presentation of this non-GAAP financial measure provides useful information to investors because it is an important liquidity measurement that reflects our ability to service our debt.

(4) Net leverage ratio is calculated by dividing net debt by Adjusted EBITDA for the trailing twelve months.

Blucora Reconciliation of Operating Free Cash Flow (1)


	2019		2020										2021
(Unaudited, in thousands, rounding differences may exist)	FY 12/31		1Q		2Q		3Q		4Q		FY 12/31		1Q		2Q		3Q		4Q		FY 12/31
Net cash provided by (used in) operating activities	$	92,804	$	46,864	$	(12,490)	$	940	$	8,765	$	44,079	$	53,722	$	43,549	$	(22,880)	$	(37,560)	$	36,831
Purchases of property, equipment, and software	(10,501)		(7,715)		(11,357)		(9,639)		(7,291)		(36,002)		(8,598)		(4,946)		(8,080)		(8,652)		(30,276)
Operating Free Cash Flow	$	82,303	$	39,149	$	(23,847)	$	(8,699)	$	1,474	$	8,077	$	45,124	$	38,603	$	(30,960)	$	(46,212)	$	6,555

____________________________

(1) We define Operating Free Cash Flow, which is a non-GAAP measure, as net cash provided by (used in) operating activities less purchases of property, equipment, and software. We believe Operating Free Cash Flow is an important liquidity measure that reflects the cash generated by our businesses, after the purchases of property, equipment, and software, that can then be used for, among other things, strategic acquisitions and investments in the businesses, stock repurchases, and funding ongoing operations.

Blucora Operating Metrics - Wealth Management


	2019			2020															2021
(In thousands, rounding differences may exist)	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q			3Q			4Q			FY 12/31
Segment revenue	$	507,979		$	144,989		$	115,884		$	135,932		$	149,384		$	546,189		$	154,491		$	162,395		$	169,135		$	172,192		$	658,213
Less: Financial professional commission payout	(348,003)			(100,804)			(82,656)			(94,794)			(102,610)			(380,864)			(107,211)			(112,164)			(119,044)			(119,609)			(458,028)
Segment net revenue (1)	$	159,976		$	44,185		$	33,228		$	41,138		$	46,774		$	165,325		$	47,280		$	50,231		$	50,091		$	52,583		$	200,185
Segment operating income (2)	$	68,292		$	22,598		$	11,731		$	17,498		$	20,368		$	72,195		$	19,396		$	21,396		$	19,564		$	21,856		$	82,212
Segment operating income as a % of revenue	13		%	16		%	10		%	13		%	14		%	13		%	13		%	13		%	12		%	13		%	12		%
Segment operating income as a % of net revenue	43		%	51		%	35		%	43		%	44		%	44		%	41		%	43		%	39		%	42		%	41		%


(In thousands, rounding differences may exist)			2019			2020															2021
	Sources of Revenue	Primary Drivers	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q			3Q			4Q			FY 12/31
Financial professional-driven	Advisory	- Advisory asset levels	$	252,367		$	78,757		$	66,303		$	82,612		$	87,079		$	314,751		$	91,119		$	96,508		$	103,540		$	104,633		$	395,800
	Commission	- Transactions - Asset levels - Product mix	191,050			50,580			39,836			44,921			49,864			185,201			52,534			51,702			52,961			53,480			210,677
Other revenue	Asset-based	- Cash balances - Interest rates - Number of accounts - Client asset levels	48,182			10,579			3,981			4,351			4,777			23,688			5,329			5,526			5,659			5,587			22,101
	Transaction and fee	- Account activity - Number of clients - Number of financial professionals - Number of accounts	16,380			5,073			5,764			4,048			7,664			22,549			5,509			8,659			6,975			8,492			29,635
	Total revenue		$	507,979		$	144,989		$	115,884		$	135,932		$	149,384		$	546,189		$	154,491		$	162,395		$	169,135		$	172,192		$	658,213
	Total recurring revenue (3)		$	422,128		$	119,255		$	100,004		$	117,822		$	127,863		$	464,944		$	130,755		$	138,900		$	145,311		$	144,728		$	559,694
	Recurring revenue rate (3)		83.1		%	82.3		%	86.3		%	86.7		%	85.6		%	85.1		%	84.6		%	85.5		%	85.9		%	84.1		%	85.0		%

____________________________

(1) Non-GAAP financial measure represents segment revenue less financial professional commission payout.

(2) We do not allocate certain operating expenses (including personnel and overhead costs), stock-based compensation, acquisition and integration costs, depreciation, amortization of acquired intangible assets, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, impairment of goodwill and an intangible asset, interest expense and other, net, or income taxes to the reportable segments.

(3) Recurring revenue consists of advisory fees, trailing commissions, fees from cash sweep programs, and certain transaction and fee revenue.

Blucora Operating Metrics - Wealth Management (continued)


(In thousands, rounding differences may exist)	2019			2020															2021
	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q			3Q			4Q			FY 12/31
Total client assets	$	70,644,385		$	61,014,454		$	68,519,998		$	76,152,721		$	82,961,244		$	82,961,244		$	84,776,191		$	87,814,790		$	86,647,743		$	89,086,032		$	89,086,032
Brokerage assets	$	43,015,221		$	37,395,490		$	41,964,610		$	43,733,735		$	47,357,687		$	47,357,687		$	48,001,320		$	48,373,805		$	46,850,354		$	46,906,981		$	46,906,981
Advisory assets	$	27,629,164		$	23,618,964		$	26,555,388		$	32,418,986		$	35,603,557		$	35,603,557		$	36,774,871		$	39,440,985		$	39,797,389		$	42,179,051		$	42,179,051
% of total client assets	39.1		%	38.7		%	38.8		%	42.6		%	42.9		%	42.9		%	43.4		%	44.9		%	45.9		%	47.3		%	47.3		%
Number of financial professionals (in ones) (1)	3,984			3,945			3,862			3,975			3,770			3,770			3,718			3,606			3,529			3,416			3,416
Advisory and commission revenue per financial professional (2)	$	111.3		$	32.8		$	27.5		$	32.1		$	36.3		$	132.6		$	38.6		$	41.1		$	44.3		$	46.3		$	177.5

Quarterly production retention rate: (3)
TTM Financial professional-driven revenue (4)	$	443,417		$	495,837		$	492,498		$	491,829		$	499,952		$	499,952		$	514,268		$	556,339		$	585,307		$	606,477		$	606,477
TTM Financial professional-driven revenue related to independent financial professionals who departed in the quarter (4)	$	10,770		$	4,586		$	11,445		$	5,366		$	19,101		$	19,101		$	8,127		$	9,881		$	12,157		$	11,079		$	11,079
TTM Financial professional-driven revenue, less that related to independent financial professionals who departed in the quarter (4)	$	432,647		$	491,251		$	481,053		$	486,463		$	480,851		$	480,851		$	506,141		$	546,458		$	573,150		$	595,398		$	595,398
Quarterly production retention rate (3)	97.6		%	99.1		%	97.7		%	98.9		%	96.2		%	96.2		%	98.4		%	98.2		%	97.9		%	98.2		%	98.2		%

____________________________

(1) The increase in financial professionals in the third quarter of 2020 resulted from the addition of 19 in-house financial professionals (licensed financial planning consultants, which were employees of Avantax Planning Partners) and 131 licensed referring representatives at CPA firms that partner with Avantax Planning Partners.

(2) Advisory and commission revenue per financial professional is based upon a full year of advisory and commission revenue.

(3) Quarterly production retention rate is a non-GAAP financial measure. We believe quarterly production retention rate is an important measure of our quarterly retention of financial professional-driven revenue (which consists of advisory revenue and commission revenue). Management uses quarterly production retention rate to measure the impact of financial professional departures on our business. Quarterly production retention rate is calculated by dividing (x) the difference of (i) total financial professional-driven revenue for the trailing-twelve-month period then ended minus (ii) financial professional-driven revenue for the trailing-twelve-month period then ended related to independent financial professionals that departed in the quarter by (y) total financial professional-driven revenue for the trailing-twelve-month period then ended. As quarterly production retention rate is a measure of retention during a quarter, it also includes quarterly production from independent financial professionals who departed in prior quarters in the trailing-twelve-month period, and therefore does not show production retention rate over longer periods of time.

(4) For the trailing-twelve-month period then ended.

Blucora Operating Metrics - Tax Software


(In thousands except % and as otherwise indicated, rounding differences may exist)	Year ended December 31,		Change
	2021	2020	Units	%
Total e-files (1)	5,583	5,319	264	5	%
Consumers
E-files (1)	3,178	3,178	—	—	%
Professional
E-files	2,405	2,141	264	12	%
Units sold (in ones)	20,901	20,360	541	3	%
E-files per unit sold (in ones)	115.1	105.2	9.9	9	%

____________________________

(1)We participate in the Free File Alliance that is part of an IRS partnership that provides free electronic tax filing services to taxpayers meeting certain income-based guidelines. Free File Alliance e-files are included within total e-files and consumer e-files above.