v3.25.4
Debt (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Summary of Convertible Note Obligations

The Company's convertible note obligations, including the level within the fair value hierarchy (see note 4. Fair Value Measurements), are as follows:
 

 

 

As of December 31, 2025

 

As of December 31, 2024

 

 

 

Outstanding
Principal

 

Unamortized convertible note premium and issuance costs

 

Net Carrying Value

 

Fair Value

 

Outstanding
Principal

 

Unamortized convertible note premium and issuance costs

 

Net Carrying Value (1)

 

Fair Value

 

(in thousands)

 

 

 

 

 

 

 

Amount

 

Level

 

 

 

 

 

 

 

Amount

 

Level

 

2028 Convertible Notes*

 

$

150,000

 

$

3,012

 

$

153,012

 

$

150,105

 

 

3

 

$

150,000

 

$

4,011

 

$

154,011

 

$

155,960

 

$

3

 

2026 Convertible Notes**

 

 

4,060

 

 

(23

)

 

4,037

 

 

3,764

 

 

2

 

 

63,132

 

 

(677

)

 

62,455

 

 

55,912

 

 

2

 

Total carrying value of convertible notes

 

 

 

 

 

 

157,049

 

 

 

 

 

 

 

 

 

 

216,466

 

 

 

 

 

 

(*) The fair value was calculated using a binomial lattice model which incorporates the terms and conditions of the convertible notes and market-based risk measurement that are indirectly observable, such as market credit spread, and therefore are Level 3 investments. The lattice model produced an estimated fair value based on changes in the price of the underlying common share price over successive periods of time. An estimated yield based on market data was used to discount straight debt cash flows.

(**) The fair value is influenced by interest rates, the Company's stock price and is determined by prices observed in market trading. Since the market for trading of the 2026 Convertible Notes is not considered to be an active market, the estimated fair value is based on Level 2 inputs.

Summary of Convertible Notes

The following table presents details of the Company's convertible notes as of December 31, 2025 which are further discussed below:

 

 

 

Date of Issuance

Maturity Date

Contractual Interest Rate

 

Outstanding Principal
(in thousands)

 

Conversion Rate for Each $1,000 Principal

 

Initial Conversion Price per Share

 

2028 Convertible Notes

 

August 2024

10/1/2028

 

7.50

%

$

150,000

 

$

62.50

 

$

16.00

 

2026 Convertible Notes

 

September 2021

10/1/2026

 

0.25

%

$

4,060

 

$

13.68

 

$

73.11

 

Summary of Total Interest Expense Recognized Related to Financing Obligation

The total interest expense recognized related to the Company’s convertible notes consists of the following:

 

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Contractual interest expense

 

$

11,277

 

 

$

5,105

 

 

$

894

 

Amortization of (premium) and issuance costs

 

 

(954

)

 

 

946

 

 

 

1,976

 

Capitalization of interest expense

 

 

(296

)

 

0

 

 

0

 

Total

 

$

10,027

 

 

$

6,051

 

 

$

2,870

 

Summary of Future Principal Payments For Borrowings

The contractual future principal payments for all borrowings as of December 31, 2025 were as follows:

 

(in thousands)

 

 

 

Fiscal Period:

 

 

 

Fiscal 2026

 

$

4,060

 

Fiscal 2027

 

 

0

 

Fiscal 2028

 

 

150,000

 

Thereafter

 

 

0

 

Total principal outstanding

 

$

154,060