v3.26.1
Debt
3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt

Note 7 — Debt

Convertible Notes

2031 Notes

The following table presents the total amount of interest cost recognized relating to the 2031 Notes (in thousands):

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Contractual interest expense

 

$

3,281

 

 

$

 

Amortization of debt issuance costs

 

 

746

 

 

 

 

Total interest expense recognized

 

$

4,027

 

 

$

 

The effective interest rate of the 2031 Notes was 2.23% as of March 31, 2026. As of March 31, 2026, the unamortized debt issuance cost for the 2031 Notes was $18.8 million and will be amortized over approximately 5.6 years.

2027 Notes

The following table presents the total amount of interest cost recognized relating to the 2027 Notes (in thousands):

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Contractual interest expense

 

$

1,230

 

 

$

4,726

 

Amortization of debt issuance costs

 

 

204

 

 

 

746

 

Total interest expense recognized

 

$

1,434

 

 

$

5,472

 

The effective interest rate of the 2027 Notes was 4.2% as of March 31, 2026 and 2025. As of March 31, 2026, the unamortized debt issuance cost for the 2027 Notes was $1.2 million and will be amortized over approximately 1.3 years. During the three months ended March 31, 2026, the conditions allowing holders of the 2027 Notes to convert were not met. As a result, the 2027 Notes are not convertible as of March 31, 2026.

2026 Notes

The following table presents the total amount of interest cost recognized relating to the 2026 Notes (in thousands):

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Contractual interest expense

 

$

211

 

 

$

211

 

Amortization of debt issuance costs

 

 

27

 

 

 

26

 

Total interest expense recognized

 

$

238

 

 

$

237

 

The effective interest rate of the 2026 Notes was 4.6% as of March 31, 2026 and 2025. As of March 31, 2026, the unamortized debt issuance cost for the 2026 Notes was $0.1 million and will be amortized over approximately 0.6 years. The 2026 Notes are convertible at March 31, 2026 at the option of the holder and classified as current on the condensed consolidated balance sheet.

As of March 31, 2026, the estimated fair value of the 2031 Notes, 2027 Notes, and 2026 Notes was $957.1 million, $205.4 million and $132.7 million, respectively, and was based upon observable, Level 2 inputs, including pricing information from recent trades of the Convertible Notes.