v3.26.1
Derivative Liabilities
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liabilities Derivative Liabilities
The components of derivative liabilities measured at fair value on a recurring basis were as follows (in millions):
As of
Fair value levelMarch 31,
2026		December 31,
2025
Public warrants
Level 1$2 $2 
Private placement warrants
Level 22 2 
Common stock warrants (a)
4 4 
Earnout share liabilities (b)
Level 316 15 
Total derivative liabilities
$20 $19 
(a) Included in other current liabilities on the condensed consolidated balance sheets
(b) Included in derivative liabilities, long term on the condensed consolidated balance sheets
The public and private placement warrants are measured at fair value on a recurring basis. The public warrants were valued based on the closing price of the publicly traded instrument. The private placement warrants were valued using observable inputs for similar publicly traded instruments. Public warrants outstanding were 12 million as of March 31, 2026 and December 31, 2025. Private placement warrants outstanding were 9 million as of March 31, 2026 and December 31, 2025.
The earnout share liabilities are measured at fair value on a recurring basis utilizing a Monte Carlo simulation analysis. The expected volatility is determined based on our historical equity volatility over a period that matches the expected term of the instrument. The risk-free interest rate is based on relevant U.S. treasury rates for a period that matches the expected term of the instrument. Earnout shares outstanding were 5 million as of March 31, 2026 and December 31, 2025.
The valuation inputs utilized in determining the earnout share liability were as follows:
As of
March 31,
2026		December 31,
2025
Risk-free interest rates
4.1 
%
3.8 
%
Expected term (in years)
5.6 5.8 
Expected volatility
81.0 
%
81.0 
%
The components of change in fair value of derivative liabilities were as follows (in millions):
Three Months Ended
March 31,
20262025
Common stock warrants
$— $(7)
Earnout share liabilities
(1)(2)
Change in fair value of derivative liabilities
$(1)$(9)