v3.26.1
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 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:
June 30, 2026Level 1Level 2Level 3
Assets:
Derivative assets - freestanding instruments (FX)$525 $— $525 $— 
Derivative assets - 2029 Capped Calls
57,293 — — 57,293 
Investment in convertible notes receivable
3,000 — — 3,000 
$60,818 $— $525 $60,293 
Liabilities:
Derivative liabilities - freestanding instruments (FX) $61 $— $61 $— 
Derivative liabilities - 2029 Embedded Derivative
152,904 — — 152,904 
ImThera contingent consideration arrangements
42,121 — — 42,121 
$195,086 $— $61 $195,025 
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
March 31, 2026$38,277 $3,000 $93,254 $102,730 
Payment— — — (60,458)
Changes in fair value (2)
19,016 — 59,650 (151)
June 30, 2026$57,293 $3,000 $152,904 $42,121 
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
March 31, 2025$805 $17,190 $874 $37,226 $85,140 
Changes in fair value (2)
498 4,468 489 10,867 2,787 
June 30, 2025$1,303 $21,658 $1,363 $48,093 $87,927 
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 
Payment— — — (60,458)
Changes in fair value (2)
20,742 — 69,000 10,504 
June 30, 2026$57,293 $3,000 $152,904 $42,121 
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)
(1,321)(2,077)(1,552)(3,726)3,709 
June 30, 2025$1,303 $21,658 $1,363 $48,093 $87,927 
(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 June 30, 2026, the contingent consideration changes in fair value resulted in a decrease of $1.0 million and an increase of $0.8 million recorded to cost of sales and R&D, respectively. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $1.5 million and $1.2 million recorded to cost of sales and R&D, respectively. For the six months ended June 30, 2026, the contingent consideration changes in fair value resulted in increases of $0.1 million and $10.4 million recorded to cost of sales and R&D, respectively. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $1.8 million and $1.9 million recorded to cost of sales and R&D, respectively.
Schedule of Significant Unobservable Inputs Related to Contingent Consideration The table below presents the significant unobservable inputs of the sales-based earnout arrangement from the ImThera acquisition as of June 30, 2026:
Valuation TechniqueUnobservable InputInputs
Monte-Carlo simulationRisk-adjusted discount rate
12.0%
Credit risk discount rate
6.9% - 7.4%
Revenue volatility24.1%
Probability of payment95%
Projected payment years
2028 - 2030