v3.26.1
Debt
6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

Note 7 — Debt

Convertible Notes

2031 Notes

The following table presents the total amount of interest cost recognized relating to the 2031 Notes (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

Contractual interest expense

 

$

3,281

 

 

$

 

 

$

6,562

 

 

$

 

Amortization of debt issuance costs

 

 

794

 

 

 

 

 

 

1,540

 

 

 

 

Total interest expense recognized

 

$

4,075

 

 

$

 

 

$

8,102

 

 

$

 

The effective interest rate of the 2031 Notes was 2.23% as of June 30, 2026. As of June 30, 2026, the unamortized debt issuance cost for the 2031 Notes was $18.1 million and will be amortized over approximately 5.3 years.

2027 Notes

The following table presents the total amount of interest cost recognized relating to the 2027 Notes (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

Contractual interest expense

 

$

1,230

 

 

$

4,725

 

 

$

2,460

 

 

$

9,451

 

Amortization of debt issuance costs

 

 

222

 

 

 

817

 

 

 

426

 

 

 

1,563

 

Total interest expense recognized

 

$

1,452

 

 

$

5,542

 

 

$

2,886

 

 

$

11,014

 

 

The effective interest rate of the 2027 Notes was 4.2% as of June 30, 2026 and 2025. As of June 30, 2026, the unamortized debt issuance cost for the 2027 Notes was $0.9 million and will be amortized over approximately 1.0 years. During the three months ended June 30, 2026, the conditions allowing holders of the 2027 Notes to convert were met. As a result, the 2027 Notes are convertible as of June 30, 2026.

As of June 30, 2026, the estimated fair value of the 2031 Notes and 2027 Notes was $1.1 billion and $239.8 million, respectively, and was based upon observable, Level 2 inputs, including pricing information from recent trades of the Convertible Notes.

2026 Notes

The following table presents the total amount of interest cost recognized relating to the 2026 Notes (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

Contractual interest expense

 

$

102

 

 

$

211

 

 

$

313

 

 

$

422

 

Amortization of debt issuance costs

 

 

15

 

 

 

29

 

 

 

42

 

 

 

55

 

Total interest expense recognized

 

$

117

 

 

$

240

 

 

$

355

 

 

$

477

 

During the three months ended June 30, 2026, holders converted the remaining $21.1 million aggregate principal amount of the 2026 Notes into 2,002,817 shares of the Company's common stock, together with an immaterial amount of cash paid in lieu of fractional shares. The conversions were completed in accordance with the original conversion terms of the 2026 Notes, and no gain or loss was recognized. As of June 30, 2026, the 2026 Notes were fully converted and no principal amount remained outstanding.

The effective interest rate of the 2026 Notes was 4.6% before the conversion in May 2026 and as of June 30, 2025.