v3.26.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis
The following tables present the level in the fair value hierarchy at which the Company’s assets and liabilities are measured on a recurring basis (in thousands):
TotalFair Value Measurements Using Inputs Considered as:
March 31, 2026Level 1Level 2Level 3
Assets:
Derivative assets - 2029 Capped Calls
$38,277 $— $— $38,277 
Investment in convertible notes receivable
3,000 — — 3,000 
$41,277 $— $— $41,277 
Liabilities:
Derivative liabilities - freestanding instruments (FX) $613 $— $613 $— 
Derivative liabilities - 2029 Embedded Derivative
93,254 — — 93,254 
ImThera contingent consideration arrangements
102,730 — — 102,730 
$196,597 $— $613 $195,984 
Total
Fair Value Measurements Using Inputs Considered as:
December 31, 2025Level 1Level 2Level 3
Assets
Derivative assets - freestanding instruments (FX)$165 $— $165 $— 
Derivative assets - 2029 Capped Calls
36,551 — — 36,551 
Investment in convertible notes receivable
3,000 — — 3,000 
$39,716 $— $165 $39,551 
Liabilities
Derivative liabilities - freestanding instruments (FX)
$99 $— $99 $— 
Derivative liabilities - 2029 Embedded Derivative
83,904 — — 83,904 
ImThera contingent consideration arrangements
92,075 — — 92,075 
$176,078 $— $99 $175,979 
Schedule of Recurring Fair Value Measurements Using Significant Unobservable Inputs
The tables below present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) (in thousands):
Derivative Assets - 2029 Capped Calls (1)
Investment in Convertible Notes Receivable
Derivative Liabilities - 2029 Embedded Derivative (1)
ImThera Contingent Consideration Arrangements Liability
December 31, 2025$36,551 $3,000 $83,904 $92,075 
Changes in fair value (2)
1,726 — 9,350 10,655 
March 31, 2026$38,277 $3,000 $93,254 $102,730 
Derivative Assets - 2025 Capped Calls (1)
Derivative Assets - 2029 Capped Calls (1)
Derivative Liabilities - 2025 Embedded Derivative (1)
Derivative Liabilities - 2029 Embedded Derivative (1)
ImThera Contingent Consideration Arrangements Liability
December 31, 2024$2,624 $23,735 $2,915 $51,819 $84,218 
Changes in fair value (2)
(1,819)(6,545)(2,041)(14,593)922 
March 31, 2025$805 $17,190 $874 $37,226 $85,140 
(1)Gains and losses are recorded in foreign exchange and other income/(expense) in the condensed consolidated statements of income (loss).
(2)For the three months ended March 31, 2026, the contingent consideration change in fair value resulted in an increase of $1.1 million recorded to cost of sales and an increase of $9.6 million recorded to R&D. For the three months ended March 31, 2025, the contingent consideration change in fair value was primarily recorded to R&D.
Schedule of Significant Unobservable Inputs Related to Contingent Consideration These arrangements are Level 3 fair value measurements and include the following significant unobservable inputs as of March 31, 2026:
ImThera AcquisitionValuation TechniqueUnobservable InputInputs
Regulatory milestone-based paymentDiscounted cash flowDiscount rate6.9%
Probability of payment (1)
100%
Projected payment year2026
Sales-based earnoutMonte-Carlo simulationRisk-adjusted discount rate
11.7%
Credit risk discount rate
7.4% - 7.7%
Revenue volatility22.8%
Probability of payment95%
Projected payment years
2028 - 2029
(1)In March 2026, the Company achieved the regulatory milestone upon PMA by the FDA. As a result, the probability of payment was increased to 100% and will be paid within 90 days of milestone achievement.