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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. The carrying amounts for the Group’s accounts receivable, other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term maturities. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
• Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities.
• Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full-term of the asset or liability.
• Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, including property and equipment, intangible assets and goodwill. These assets are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment or when an asset or disposal group is classified as held for sale.
Investments and Cash Equivalents
Investments and cash equivalents are measured at fair value on a recurring basis. As of June 30, 2026, investments in the unaudited condensed consolidated balance sheets include time deposits, U.S. treasury securities and treasury enhanced notes, with maturity of three months to 12 months.
All fixed income securities are classified as available-for-sale with unrealized gains and losses included in “accumulated other comprehensive income or loss”. The related unrealized gain/(loss) recorded in accumulated other comprehensive income were nil and $3 thousand as of June 30, 2026 and December 31, 2025, respectively. No realized gains or losses were recorded for the three and six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, all available-for-sale securities are expected to mature within one year.
Acquisition-Related Contingent Consideration
Contingent consideration is related to the Group’s acquisition of New Classic (see Note 2). The Group determined the fair value of the contingent payment using a probability weighted scenario approach based on earnout provisions and discounting the potential payments to their present value. The probabilities of the various scenarios regarding whether the target revenue can be achieved are based on management's estimates, which cannot be observed in the market and thus represents a Level 3 measurement. Each period, the Group evaluates the fair value of acquisition-related contingent consideration liabilities and records any changes in the fair value of such liabilities in others, net in the Group’s consolidated statements of comprehensive income. Based on current forecasts, the Group determined achievement of the earnout target is probable. Changes in either the revenue estimates or the discount rate could result in a material change to the amount of contingent consideration accrued.
The following table presents the valuation of the Group’s financial assets and liabilities as of June 30, 2026 measured at fair value on a recurring basis.
As of June 30, 2026
Balance Sheet Caption(1)
Cost or amortized cost
Fair value (Level 2)
Fair value (Level 3)
(In thousands)
Assets:
Money market instruments(2)
Cash and cash equivalents
$112,112 $112,103 $— 
Treasury enhanced notes(2)
Investments10,095 10,094 — 
U.S. treasury securities(2)
Investments9,984 9,985 — 
DepositsInvestments23,000 23,255 — 
Liabilities:
Contingent consideration(3)
Contingent consideration$— $— $3,368 
_____________________
(1)    Balance sheet caption is determined by the duration to maturity at date of purchase and whether the assets are restricted for particular use.
(2)    Fair value is determined using broker quotes reflecting current market conditions.
(3)    Fair value is determined by applying a probability weighted scenario approach and discounting potential payments to their present value.
A reconciliation of the Group’s contingent consideration liabilities related to acquisitions for the three and six months ended June 30, 2026 is as follows:
Level 3 Instruments RollforwardThree Months Ended June 30, 2026Six Months Ended June 30, 2026
(In thousands)
Balance as of the beginning of the period$3,346 $— 
Additions— 3,325 
Change in fair value22 43 
Balance as of the end of the period$3,368 $3,368