v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 - Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3 - Significant unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

Our financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities, pension assets and liabilities. The carrying value of these instruments approximates fair value as a result of the short duration of such instruments or due to the variability of the interest cost associated with such instruments.
Recurring Measurements
Foreign Currency Forward Exchange Contracts. Our derivative assets and liabilities represent foreign exchange contracts that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk and counterparty credit risk. Based on the utilization of these inputs, the derivative assets and liabilities are classified as Level 2. To manage our risk for transactions denominated in Mexican Pesos, Czech Crown, and Ukrainian Hryvnia, we have entered into forward exchange contracts that are designated as cash flow hedge instruments, which are recorded in the Condensed Consolidated Balance Sheets at fair value. The gains and losses as a result of the changes in fair value of the hedge contract for transactions denominated in Mexican Pesos are deferred in accumulated other comprehensive loss and recognized in cost of revenues in the period the related hedge transactions are settled. As of March 31, 2026, hedge contracts for transactions denominated in Czech Crown were not designated as hedging instruments; therefore, they are marked-to-market and the fair value of agreements is recorded in the Condensed Consolidated Balance Sheets with the offsetting gains and losses recognized in other (income) expense and recognized in cost of revenues in the period the related hedge transactions are settled in the Condensed Consolidated Statements of Operations.
Interest Rate Swaps. As of March 31, 2025, the Company settled its interest rate swap and received cash proceeds of $0.6 million. The gain on the swap settlement was recorded in Other comprehensive income (loss) and is being recognized over the life of the hedged transactions. As of March 31, 2026, there was no interest rate swap outstanding.
Stock Warrants Issued in Connection with Long-Term Debt — In connection with entering into the Term Loan due 2030, the Company issued to affiliates of TCW Management five-year warrants for the purchase of up to an aggregate of 3,934,776 shares of the Company’s common stock, issued in two equal tranches. The tranches have an exercise price of $1.52 and $2.07 per share, respectively. Until the fourth anniversary after issuance, the Company has the right to repurchase up to 50% of each tranche of warrants at a price equal to $1.40 or $1.00 per share, respectively, above the applicable exercise price. Upon a refinancing of the Term Loan, the holders of the warrants can require the Company to repurchase up to 50% of each tranche at a price equal to the per share price of the Company's common stock at the time of repurchase less the exercise price. The warrants contain anti-dilution adjustments that may result in a change in the number of shares of common stock issuable upon exercise. The Company also has provided TCW Management with certain information and registration rights, including filing a registration statement within 45 days to register the resale of the shares underlying the warrants, pursuant to an Investor Rights Agreement.
As of March 31, 2026 the warrants were valued at $7.5 million using the Binomial Lattice Model and were recorded in Other long-term liabilities on the Condensed Consolidated Balance Sheets with the offsetting gains and losses recognized in other (income) expense in the Condensed Consolidated Statements of Operations. Losses for the three months ended March 31, 2026 were $5.0 million.
The fair values of our financial instruments measured on a recurring basis are categorized as follows: 
March 31, 2026December 31, 2025
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:
Foreign exchange contract designated as hedging instruments$848 $— $848 $— $1,755 $— $1,755 $— 
Foreign exchange contract not designated as hedging instruments$— $— $— $— $106 $— $106 $— 
Liabilities:
Foreign exchange contract designated as hedging instruments$552 $— $552 $— $110 $— $110 $— 
Foreign exchange contract not designated as hedging instruments$68 $— $68 $— $— $— $— $— 
Warrants$7,496 $— $7,496 $— $2,518 $— $2,518 $— 

The following table summarizes the notional amount of our open foreign exchange contracts:
March 31, 2026December 31, 2025
U.S. $
Equivalent		U.S. $
Equivalent
Fair Value		U.S. $
Equivalent		U.S. $
Equivalent
Fair Value
Commitments to buy or sell currencies - Foreign exchange contract designated as hedging instruments$53,142 $53,958 $52,183 $52,956 
Commitments to buy or sell currencies - Foreign exchange contract not designated as hedging instruments$6,907 $7,024 $10,994 $10,860 
We consider the impact of our credit risk on the fair value of the contracts, as well as the ability to execute obligations under the contract.
The following table summarizes the fair value and presentation of financial instruments in the Condensed Consolidated Balance Sheets: 
 Derivative Asset
Balance Sheet
Location		Fair Value
March 31, 2026December 31, 2025
Foreign exchange contract designated as hedging instrumentsOther current assets$848 $1,755 
Foreign exchange contract not designated as hedging instrumentsOther current assets$— $106 
 Derivative Liability
Balance Sheet
Location		Fair Value
March 31, 2026December 31, 2025
Foreign exchange contract designated as hedging instrumentsAccrued liabilities and other$— $110 
Foreign exchange contracts not designated as hedging instrumentsAccrued liabilities and other$552 $— 
Foreign exchange contracts not designated as hedging instrumentsOther long-term liabilities$68 $— 
WarrantsOther long term liabilities$7,496 $2,518 
 Derivative Equity
Balance Sheet
Location		Fair Value
March 31, 2026December 31, 2025
Foreign exchange contracts designated as hedging instrumentsAccumulated other comprehensive income (loss)$2,020 $3,369 
Interest rate swap agreementsAccumulated other comprehensive income$454 $833 

The following table summarizes the effect of derivative instruments on the Condensed Consolidated Statements of Operations:
Three Months Ended March 31,
20262025
Location of Gain (Loss)
Recognized on Derivatives		Amount of Gain (Loss)
Recognized in Income on Derivatives
Foreign exchange contracts designated as hedging instrumentsCost of revenues$1,652 $(1,982)
Settled interest rate swap agreementsInterest expense$379 $357 
Foreign exchange contracts not designated as hedging instrumentsOther (income) expense$(164)$43 
We consider the impact of our credit risk on the fair value of the contracts, as well as our ability to honor obligations under the contract.
Other Fair Value Measurements

The fair value of long-term debt obligations is based on a fair value model utilizing observable inputs. Based on these inputs, our long-term debt fair value as disclosed was classified as Level 3 as of December 31, 2025 and March 31, 2026 due to the
lack of observable market inputs or comparable instruments. With the refinancing of our long-term debt on June 27, 2025, the carrying values of our long-term debt obligations approximate the fair values.

The carrying amounts and fair values of our long-term debt obligations are as follows:
 March 31, 2026December 31, 2025
 Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Term Loan 1
$74,580 $74,580 $88,106 $88,106 
Revolving credit facility$16,092 $16,092 $16,839 $16,839 
1.Presented in the Condensed Consolidated Balance Sheets as the current portion of long-term debt of $0.9 million and long-term debt of $73.6 million as of March 31, 2026 and current portion of long-term debt of $0.9 million and long-term debt of $87.2 million as of December 31, 2025.