As of March 31, 2026, the Company had 3,550,329 warrants outstanding, which were exercisable into 3,550,329 shares of Series E-2 redeemable convertible preferred stock. The warrants were issued in October 2025 in connection with the issuance of Intermediate Class A Units (see Note 10 – Noncontrolling Interests for additional information). The warrants are classified as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), and are measured at fair value, with changes in fair value recognized in earnings each reporting period. No warrants have been exercised as of March 31, 2026. After giving effect to the Reverse Stock Split effectuated on May 14, 2026, the 3,550,329 shares of Series E-2 redeemable convertible preferred stock are convertible into 2,554,107 shares of Class A common stock. See Note 17 – Subsequent Events for additional information regarding the exercise of warrants occurring after March 31, 2026.

During the three months ended March 31, 2026, the Company recognized a $13.1 million loss related to the remeasurement of the warrants, which is reflected within Other non-operating expense in the Condensed Consolidated Statements of Operations.

As of March 31, 2026 and December 31, 2025, the fair value of the warrants was approximately $23.4 million and $10.2 million, respectively, and is recorded within Other long-term liabilities in the Condensed Consolidated Balance Sheets.

As of March 31, 2026, the warrants were measured at fair value using a Black-Scholes option pricing model, weighted between a going concern scenario and IPO scenario. The Company estimated the fair value of the warrants using the following assumptions:


	As of March 31, 2026
	Going concern scenario			IPO scenario
Series A-1 Redeemable Convertible Preferred Stock price	$	8.73		$	—
Series E-1 Redeemable Convertible Preferred Stock price	8.17			—
Estimated IPO price	—			14.00
Expected volatility	75.0		%	75.0		%
Expected term (in years)	3.00			0.12
Risk-free interest rate	3.8		%	3.7		%
Expected dividend yield	0.0		%	0.0		%

Due to the use of significant unobservable inputs of stock price, volatility and expected term in the valuation, the warrants are classified within Level 3 of the fair value hierarchy. Accordingly, significant judgment is required in selecting these assumptions. Actual assumptions may differ from the Company’s current estimates and such differences could materially impact the fair value of the warrants.