v3.26.1
Balance Sheet Components
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
8. Balance Sheet Components
Accounts receivable, net
Accounts receivable, net consists of the following (in thousands):
As of March 31,As of December 31,
20262025
Accounts receivable$95,391 $80,809 
Allowance for credit losses(416)(94)
Total accounts receivable, net$94,975 $80,715 
Accounts receivable, net is presented net of the allowance for credit losses, which represents management’s estimate of expected credit losses based on historical trends, current economic conditions, and other relevant factors as of March 31, 2026 and December 31, 2025, respectively.
Included in accounts receivable, net are unbilled receivables, which are amounts that have not yet been invoiced to customers as of the balance sheet date, but are contractually owed to the Company. As of March 31, 2026 and December 31, 2025, unbilled receivables were $18.3 million and $10.3 million, respectively.
Inventory
Inventory consists of the following (in thousands):
As of March 31,As of December 31,
20262025
Raw materials$67 $40 
Finished goods15,075 9,827 
Total inventory$15,142 $9,867 
There were no inventory write-offs recorded for the three months ended March 31, 2026 and 2025.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
As of March 31,As of December 31,
20262025
Prepaid expenses$19,799 $17,838 
Short-term investments interest receivable
536 — 
Other receivables1,091 2,212 
Total prepaid expenses and other current assets$21,426 $20,050 
Prepaid expenses primarily consist of advance payments for certain cloud platform costs, information technology solutions, advertising, inventory, and insurance. Other receivables primarily consist of refunds owed to the Company and other amounts which the Company is expected to receive in less than twelve months.
Property and Equipment, net
Property and equipment, net consists of the following (in thousands):
As of March 31,As of December 31,
20262025
Computer equipment$297 $297 
Leasehold improvements86 86 
Production manufacturing equipment4,123 4,067 
Furniture and fixtures29 29 
Total property and equipment, gross4,535 4,479 
Less: accumulated depreciation(1,650)(1,460)
Total property and equipment, net$2,885 $3,019 
Depreciation expense was $0.2 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.
There was no impairment of property and equipment or long-lived assets recognized during the three months ended March 31, 2026 or 2025.
Prepaid Expenses and Other Assets, noncurrent
Prepaid expenses and other assets, noncurrent consist of the following (in thousands):
As of March 31,As of December 31,
20262025
Prepaid expenses, noncurrent$3,408 $3,110 
Convertible Note Investment20,876 24,726 
Data Revenue Partner Warrant
10,864 10,864 
Related Party Investment5,882 5,882 
Related Party Warrant3,898 3,898 
Total prepaid expenses and other assets, noncurrent$44,928 $48,480 
Prepaid expenses, noncurrent primarily consist of cloud platform costs. As of March 31, 2026 and December 31, 2025, other assets consist of long-term investments, including the Convertible Note Investment, a warrant to purchase shares of preferred stock of a data partner (the “Data Revenue Partner Warrant”), the Related Party Investment, and a warrant to purchase shares of common stock of a Related Party (the “Related Party Warrant”). Refer to Note 6, "Fair Value Measurements" and Note 14, "Related-Party Transactions" for additional information.
Leases
The Company leases office space under a non-cancellable operating lease with a remaining lease term of 0.7 years, which includes the option to extend the lease.
The Company did not have any finance leases as of March 31, 2026 or December 31, 2025.
The components of lease expense are as follows (in thousands):
Three Months Ended March 31,
20262025
Operating lease cost (1)
$120 $118 
(1) Amounts include short-term leases, which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term):
As of March 31,As of December 31,
20262025
Operating lease right-of-use asset$246 $335 
Operating lease liability, current (included in accrued expenses and other current liabilities)263 359 
Weighted-average remaining term for operating lease (in years)0.70.9
The weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0% for each period presented.
Maturities of the Company’s operating lease liability, which does not include short-term leases, as of March 31, 2026 were as follows (in thousands):
Operating leases
Remainder of 2026$267 
Total future minimum lease payments267 
Less imputed interest(4)
Total operating lease liability$263 
Goodwill and Intangible Assets, net
Intangible assets, net consists of the following (in thousands):
As of March 31, 2026
GrossAccumulated AmortizationNet
Trade name$25,070 $(10,509)$14,561 
Technology32,565 (20,383)12,182 
Customer relationships53,500 (9,472)44,028 
Internally developed software
16,224 (5,359)10,865 
Total$127,359 $(45,723)$81,636 
As of December 31, 2025
GrossAccumulated AmortizationNet
Trade name$23,380 $(9,575)$13,805 
Technology25,985 (18,756)7,229 
Customer relationships15,290 (7,595)7,695 
Internally developed software
14,113 (4,565)9,548 
Total$78,768 $(40,491)$38,277 
For the three months ended March 31, 2026 and 2025, the Company capitalized $2.1 million and $1.7 million, respectively, in internally developed software.
For the three months ended March 31, 2026 and 2025, amortization expense was $5.2 million and $2.8 million, respectively.
During the three months ended March 31, 2026 and 2025, there was no impairment of intangible assets recorded.
As of March 31, 2026, the estimated remaining amortization expense for intangible assets by fiscal year is as follows (in thousands):
Amount
Remainder of 2026$15,810 
202716,485 
202812,775 
202911,410 
20308,917 
Thereafter12,944 
Total future amortization expense78,341 
Internally developed software not yet in service3,295 
Total$81,636 

The weighted-average remaining useful lives of the Company’s acquired intangible assets, excluding internally developed software projects that were not yet in service, are as follows:
Weighted-Average Remaining Useful Life
As of March 31,As of December 31,
20262025
Trade name4.9 years5.5 years
Technology3.5 years2.3 years
Customer relationships6.2 years3.9 years
Internally developed software2.2 years2.3 years
As of March 31, 2026 and December 31, 2025, the Company had $3.3 million and $2.8 million of capitalized internally developed software projects that were not yet in service, respectively. These projects have been excluded from the weighted-average remaining useful life calculation for internally developed software in the table above.
As of March 31, 2026 and December 31, 2025, goodwill was $173.6 million and $134.6 million, respectively. Goodwill increased $39.0 million in connection with the acquisition of Nativo. Refer to Note 7, "Business Combinations" for additional information. No goodwill impairment was recorded during the three months ended March 31, 2026 or 2025.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following (in thousands):
As of March 31,As of December 31,
20262025
Accrued vendor expenses$21,026 $14,891 
Customer related promotions and discounts5,250 14,013 
Accrued compensation8,971 7,121 
Sales return reserves1,805 2,072 
Other current liabilities2,621 3,905 
Total accrued expenses and other current liabilities$39,673 $42,002 
As of March 31, 2026, other current liabilities primarily relate to inventory received but not yet billed and taxes payable. As of December 31, 2025, other current liabilities primarily relate to the Company’s deferred purchase price liability related to the Fantix, Inc. acquisition, inventory received but not yet billed, and taxes payable.
Other Liabilities, noncurrent
Other liabilities, noncurrent consist of the following (in thousands):
As of March 31,As of December 31,
20262025
Monetization of tariff refund claim liability
2,256 — 
Deferred purchase price liability
16,485 — 
Total other liabilities, noncurrent
18,741 — 

During the three months ended March 31, 2026, the Company received $2.3 million in cash proceeds relating to the monetization of tariff refund claims. The Company recognized a corresponding liability for the cash received that will be satisfied upon the settlement of the refund agreement.
The deferred purchase price liability was recorded in connection with the acquisition of Nativo at present value using a market rate of interest commensurate with the 24 month payment term, with the discount accreted to interest expense over the 24 month holdback period. As of March 31, 2026, the Company had recognized approximately $0.2 million of non-cash interest accretion within other income (expense), net in the condensed consolidated statements of operations and comprehensive income. Refer to Note 7, "Business Combinations" for additional information on the acquisition of Nativo.