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Convertible Notes
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Convertible Notes Convertible Notes
Except as described below, the Company’s convertible notes are described in Note 10 of the “Notes to Consolidated Financial Statements” in the Annual Report.
The convertible notes consisted of the following (in thousands):
 March 31, 2025December 31, 2024
Principal amount$316,244 $316,250 
Unamortized debt discount and issuance costs(7,735)(8,168)
Net carrying amount$308,509 $308,082 
During the fourth quarter of 2024 and the first quarter of 2025, the last reported sale price of the Company’s common stock exceeded 130% of the conversion price of the 4.00% Convertible Senior Notes due 2029 (the “Notes”) for more than 20 trading days during the 30 consecutive trading days ended December 31, 2024 and March 31, 2025, respectively. As a result, for the quarterly period ended March 31, 2025, the Notes were, and for the quarterly period ending June 30, 2025, the Notes are, convertible at the option of the holders of the Notes. During the three months ended March 31, 2025 and through the date of this filing, the amount of the principal balance of the Notes that has been converted was not material.
The Company incurred $10.9 million of transaction costs related to the issuance of the Notes, which are being amortized to interest expense over the term of the Notes using the effective interest method. As of March 31, 2025, the remaining amortization period of the debt discount was approximately 4.1 years and the effective interest on the Notes was 4.6%. The following table sets forth interest expense recognized related to the Notes (in thousands):
Three Months Ended March 31,
 20252024
Coupon interest expense$3,163 $3,163 
Amortization of debt discount and issuance costs433 414 
Total interest expense on convertible notes$3,596 $3,577 
As of March 31, 2025 and December 31, 2024, the estimated fair value of the Notes was $517.7 million and $481.9 million, respectively. The fair values were determined based on the quoted price of the convertible notes in an inactive market on the last trading day of the reporting period and have been classified as Level 2 in the fair value hierarchy.