v3.26.1
Derivatives and Hedge Accounting
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedge Accounting Derivatives and Hedge Accounting
The Company uses derivative instruments to mitigate cash flow volatility from risk of fluctuations in foreign currency exchange rates and interest rates. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted revenues and other transactions denominated in certain foreign currencies. These contracts qualify as cash flow hedges under ASC Topic 815, Derivatives and Hedging, and are with counterparties that are highly rated financial institutions.

The following table sets forth the aggregate notional amount of derivatives in cash flow hedging relationship:
As of
June 30, 2026December 31, 2025
Foreign currency forward contracts denominated in:
Sell U.S. dollar (USD)992,400 1,134,800 
Buy U.S. dollar (USD)5,159 12,075 

The Company estimates that approximately $28,304 of derivative loss, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of June 30, 2026, could be reclassified into earnings within the next twelve months. As of June 30, 2026, the maximum outstanding term of the cash flow hedges was approximately 36 months.

The Company also enters into foreign currency forward contracts to hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of fluctuations in foreign currency exchange rates associated with remeasurement of such assets and liabilities to functional currency. These foreign currency forward contracts do not qualify as fair value hedges under ASC Topic 815, Derivatives and Hedging. Changes in the fair value of these financial instruments are recognized in the unaudited consolidated statements of income and are included in the foreign exchange gain, net line item.

The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments:
As of
Foreign currency forward contracts denominated in:June 30, 2026December 31, 2025
Sell USD244,088 217,040 
Sell GBP27,880 35,962 
Sell EUR7,376 7,722 
Sell AUD4,619 4,917 
Buy USD3,176 1,837 
The following table sets forth the fair value of the foreign currency forward contracts and their location on the consolidated balance sheets:
Derivatives in cash flow hedging
relationships		Derivatives not designated as hedging
instruments
As ofAs of
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Assets:
Other current assets$3,419 $4,444 $14 $196 
Other assets$1,050 $1,424 $— $— 
Liabilities:
Accrued expenses and other
current liabilities		$31,723 $15,383 $433 $60 
Other non-current liabilities$16,344 $9,765 $— $— 


The following table sets forth the effect of foreign currency forward contracts on AOCI and the unaudited consolidated statements of income:

Three months ended June 30,Six months ended June 30,
Derivative financial instruments:2026202520262025
Unrealized gain/(loss) recognized in other comprehensive income (“OCI”)
Derivatives in cash flow hedging relationships$8,888 $5,955 $(37,047)$15,424 
Gain/(loss) recognized in unaudited consolidated statements of income
Derivatives not designated as hedging instruments$1,747 $(1,766)$(8,714)$(1,286)
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
Three months ended June 30,
20262025
As per unaudited consolidated
statements of
income		Gain/(loss) on derivative financial instrumentsAs per unaudited consolidated
statements of
income		Gain/(loss) on derivative financial instruments
Derivatives in cash flow hedging relationships
Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI
Revenues, net$594,763 $319 $514,460 $(1,028)
Cost of revenues$368,800 (7,043)$320,272 1,360 
General and administrative expenses$74,436 (841)$59,549 126 
Selling and marketing expenses$49,628 (115)$39,446 7 
Depreciation and amortization expense$14,604 (127)$14,055 89 
Total before tax(7,807)554 
Income tax effects on above1,575 (165)
Net of tax$(6,232)$389 
Derivatives not designated as hedging instruments
Location in unaudited consolidated statements of income where gain/(loss) was recognized
Foreign exchange gain, net$1,609 $1,747 $2,211 $(1,766)
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
Six months ended June 30,
20262025
As per unaudited consolidated
statements of
income		Gain/(loss) on derivative financial instrumentsAs per unaudited consolidated
statements of
income		Gain/(loss) on derivative financial instruments
Derivatives in cash flow hedging relationships
Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI
Revenues, net$1,165,114 139 $1,015,479 $(1,028)
Cost of revenues$717,070 (11,178)$627,977 (53)
General and administrative expenses$143,487 (1,368)$118,966 (28)
Selling and marketing expenses$96,829 (187)$81,371 (9)
Depreciation and amortization expense$28,607 (135)$27,612 74 
Total before tax(12,729)(1,044)
Income tax effects on above2,667 217 
Net of tax$(10,062)$(827)
Derivatives not designated as hedging instruments
Location in unaudited consolidated statements of income where gain/(loss) was recognized
Foreign exchange gain, net$2,744 $(8,714)$3,403 $(1,286)