v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
There were no assets measured at fair value on a recurring basis and there were no liabilities valued at fair value using Level 1 inputs at December 31, 2025 and 2024. The following table provides information for assets and liabilities measured at fair value on a recurring basis using Level 2 and Level 3 inputs:
December 31, 2025December 31, 2024
Balance Sheet LocationTotalLevel 2Level 3TotalLevel 2Level 3
Interest rate swapsAccrued liabilities$991 $991 $— $— $— $— 
Contingent
    consideration		Current portion of contingent consideration— — — 19,573 — 19,573 
Total:$991 $991 $— $19,573 $— $19,573 
Interest Rate Swaps
The Company utilizes interest rate swaps designated as cash flow hedges to manage exposure to variability in interest payments on its variable-rate debt. The fair value of these instruments represents the amount at which the swaps could be settled in an orderly transaction. This value is based on estimates derived from a quantitative regression analysis using Level 2 inputs, and is validated through comparisons with estimates provided by counterparties. Fair value measurements incorporate credit valuation adjustments to reflect the potential nonperformance or credit risk of both the Company and its counterparties.
The Company evaluates the effectiveness of its hedge instruments quarterly and both instruments were effective as of December 31, 2025. The Company does not hold or issue derivative instruments for trading purposes. Cash flows associated with hedging instruments are presented in the same category in the statement of cash flows as those of the hedged item. Accordingly, settlements of interest rate swaps are classified as operating activities, consistent with the classification of interest payments on the related debt.
Changes in the fair value of interest rate swaps are recorded each period in either accumulated other comprehensive income (“AOCI”) within the consolidated balance sheets or as interest expense, net within the consolidated statements of operations and comprehensive income (loss), depending on the effectiveness of the hedge.
Fair value changes deemed effective are recorded in AOCI and subsequently reclassified into interest expense, net, during the same period in which the hedged transaction impacts earnings. Any portion of the fair value determined to be ineffective is recognized immediately in interest expense, net within the consolidated statements of operations and comprehensive income (loss).
The following table presents the amount of loss recognized in AOCI for the year ended December 31, 2025:
Loss recognized in AOCI
Change in the fair value of cash flow hedges(a)
$802 
(a)Represents the total change in fair value of cash flow hedges recognized during the period, of which $189 was recognized in AOCI attributable to noncontrolling interest.
There was no income tax benefit or expense associated with the Company’s interest rate swaps or reclassifications out of AOCI during the year ended December 31, 2025. The Company maintains a full valuation allowance against its deferred tax assets.
Interest payables and receivables under the interest rate swaps are accrued and recorded as adjustments to interest expense, net within the consolidated statements of operations and comprehensive income (loss).
Contingent Consideration
The Company initially values contingent consideration related to business combinations using a probability-weighted calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows for certain milestones. For other milestones, the Company used a variation of the income approach where revenue was simulated in a risk-neutral framework using Geometric Brownian Motion, a stock price behavior model.
Key assumptions used to estimate the fair value of contingent consideration include projected financial information, market data and the probability and timing of achieving the specific targets. After the initial valuation, the Company generally uses its best estimate to measure contingent consideration at each subsequent reporting period using unobservable Level 3 inputs.
Unobservable Inputs
A summary of unobservable Level 3 inputs utilized for the above liabilities are as follows:
Valuation TechniqueUnobservable inputsRange
Contingent considerationDiscounted cash flowPayment discount rate
6.4% - 6.8%
Payment period
2025
Significant changes in these assumptions could have resulted in a higher or lower fair value. The contingent consideration reported in the above table resulted from the acquisition of Bioness, Inc. (“Bioness”) on March 30, 2021 and was comprised of future earn-out payments contingent upon the achievement of certain research and development projects as well as sales milestones related to Bioness products. Contingent consideration resulting from the acquisition of Bioness included up to $50,000 in earn-out payments, consisting of: (i) $20,000 for meeting net sales targets for certain implantable products over a three year period ending on June 30, 2025 at the latest; (ii) up to $10,000 for meeting net sales milestones for certain implantable products over a three year period ending on June 30, 2025 at the latest; and (iii) $20,000 for maintaining Centers for Medicare & Medicaid Services coverage and reimbursement for certain products at specified levels as of December 31, 2024. The Company met criteria (iii) during the fourth quarter of 2024 and paid $19,771 of the contingent consideration during the year ended December 31, 2025. The Company has no future contingent consideration obligations from its acquisition of Bioness.
Contingent consideration was adjusted quarterly based on the passage of time or the anticipated success or failure of achieving certain milestones and was recorded as the change in the fair value of contingent consideration within the consolidated statements of operations and comprehensive income (loss). There were no changes in the fair value of contingent consideration related to Bioness for the year ended December 31, 2025. Changes in contingent consideration totaled $1,423 and $719 for the years ended December 31, 2024 and 2023, respectively.