v3.25.2
SEGMENT AND GEOGRAPHIC INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information

The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and assess performance. The CODM assesses the performance of the Company and decides how to allocate resources based on consolidated net income, which is identical to the information presented in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The measure of segment assets is reported in the Unaudited Condensed Consolidated Balance Sheets as total assets. Additional information on segment information is included in Note 13 to the Company’s Consolidated Financial Statements for the year ended December 31, 2024, included in Part II, Item 8 of the 2024 Form 10-K.
The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30,Six Months Ended
June 30,
2025202420252024
Revenue$104,114 $103,123 $208,318 $209,868 
Less:
Cost of revenue, adjusted
Employee compensation and benefits (a)
25,084 26,957 50,125 54,227 
Engineering consulting costs6,609 6,067 12,754 12,529 
Administrative allocations4,273 4,192 8,535 8,231 
All other costs (b)
4,667 4,405 9,225 8,935 
Total cost of revenue, adjusted40,633 41,621 80,639 83,922 
Sales and marketing, adjusted (c)
36,992 36,801 70,321 75,538 
General and administrative, adjusted (c)
14,770 17,401 30,258 33,390 
Stock-based compensation expense2,873 2,405 5,575 4,963 
Depreciation and amortization expense858 860 1,789 1,733 
Reorganization costs722 3,208 1,184 3,208 
Litigation costs and related recoveries, net(33,932)1,602 (32,007)4,527 
Interest expense1,629 1,483 3,304 2,824 
Other (income) expenses, net(1,232)(1,492)(1,155)(2,457)
Income taxes10,543 382 14,802 2,051 
Segment net income (loss)30,258 (1,148)33,608 169 
Reconciliation of profit
Adjustments and reconciling items— — — — 
Consolidated net income (loss)$30,258 $(1,148)$33,608 $169 

(a) Adjusted to exclude stock-based compensation expense.
(b) Adjusted to exclude depreciation and amortization expense.
(c) Adjusted to exclude stock-based compensation expense as well as depreciation and amortization expense.

Geographic Information

The Company attributes revenues to geographic regions based on the location of its clients. The following table shows revenues by geographic region (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
 2025202420252024
United States of America$49,163 $51,454 $99,258 $105,262 
International54,951 51,669 109,060 104,606 
Total$104,114 $103,123 $208,318 $209,868 
 
For the three months ended June 30, 2025 and 2024, Japan represented 11.7% and 9.7% of total revenue, respectively. For the six months ended June 30, 2025 and 2024, Japan represented 11.0% and 9.6% of total revenue, respectively.
No clients represented more than 10% of revenue for the three and six months ended June 30, 2025 and 2024. As of June 30, 2025 and December 31, 2024, no clients accounted for more than 10% of total net accounts receivable.

The Company tracks its assets by physical location. The following shows the net carrying value of the Company’s property and equipment by geographic region (in thousands):

 June 30, 2025December 31, 2024
United States of America$6,364 $7,007 
Brazil2,425 754 
India1,005 1,432 
Rest of World1,078 698 
Total property and equipment, net$10,872 $9,891 

The operating lease ROU assets by geographic region were as follows (in thousands):

 June 30, 2025December 31, 2024
India$15,749 $1,390 
United States of America3,502 4,112 
Brazil1,068 1,193 
Korea702 171 
Rest of World261 295 
Total operating lease right-of-use assets$21,282 $7,161 
Prior year amounts of property and equipment for India and Brazil, and ROU assets for Korea, have been reclassified from Rest of World for consistency with the current year presentation. This reclassification had no effect on the Unaudited Condensed Consolidated Financial Statements.