v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis
Equity method investments, and certain non-financial assets, such as intangible assets are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
Financial instruments not recorded at fair value on a recurring basis include vendor financing arrangements. The carrying value of the vendor financing agreements was $3.5 million and $1.6 million as of June 30, 2026 and December 31, 2025, respectively. The Company’s vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon the Company’s incremental borrowing rate. The estimated fair values of these financial instruments approximate their carrying values.
Financial Instruments Recorded at Fair Value on a Recurring Basis
The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
As of
June 30, 2026
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market funds$81,546 $— $— $81,546 
Total cash equivalents81,546 — — 81,546 
Short-term investments:
Corporate bonds— 19,059 — 19,059 
U.S. treasury securities— 5,523 — 5,523 
U.S. government agency securities— 4,212 — 4,212 
Total short-term investments— 28,794 — 28,794 
Long-term investments:
Corporate bonds— 699 — 699 
U.S. government agency securities— 499 — 499 
Total long-term investments— 1,198 — 1,198 
Total financial assets
$81,546 $29,992 $— $111,538 
Liabilities:
Contingent consideration liability$— $— $11,076 $11,076 
Total contingent consideration liability$— $— $11,076 $11,076 

As of
December 31, 2025
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market funds$30,661 $— $— $30,661 
Total cash equivalents30,661 — — 30,661 
Short-term investments:
Corporate bonds— 14,524 — 14,524 
U.S. government agency securities— 2,969 — 2,969 
U.S. treasury securities— 3,205 — 3,205 
Total short-term investments— 20,698 — 20,698 
Long-term investments:
Corporate bonds— 3,821 — 3,821 
U.S. treasury securities— 625 — 625 
U.S. government agency securities— 500 — 500 
Total long-term investments— 4,946 — 4,946 
Total financial assets$30,661 $25,644 $— $56,305 
Money market funds are highly liquid investments and are actively traded. The fair value is based on quoted prices for identical assets in active markets and therefore classified as Level 1 of the fair value hierarchy.
The Company’s other investments are considered Level 2 financial instruments as their fair values are determined using inputs that are directly or indirectly observable in active or less active markets.
Cycuity-related Contingent Consideration Liability
Contingent consideration liability is based on the achievement of specified bookings targets during the earn-out period from the Acquisition Date through December 31, 2026 in connection with the Cycuity acquisition. The estimated fair value of the contingent consideration liability is determined using a Monte Carlo simulation model using significant unobservable fair value inputs and is therefore classified as a Level 3 measurement. The assumptions used in the calculation are based on the achievement of specified bookings targets over the term of the contingent earn-out period, expected volatility, and discount rate. The estimates of fair value are uncertain and changes in any of the estimated inputs used will result in significant adjustments to the fair value. As of June 30, 2026, the Company used a volatility rate of 33% and a risk free rate of 3.8%.
The following table sets forth a summary of the changes in the fair value of the contingent consideration liability (in thousands):
Amount
Fair value—April 1, 2026$9,018 
Change in the fair value during the year recorded to acquisition-related costs2,058 
Fair value—June 30, 2026$11,076 
There were no transfers between levels during the periods presented.