The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. During 2026 and 2025, the Company entered into foreign currency exchange rate forward contracts, with six commercial banks as the counterparties, with maturities of generally 12 months or less, to reduce the volatility of cash flows, primarily related to forecasted costs denominated in Philippine pesos, Indian rupees, Mexican pesos, Colombian pesos and euros. In addition, the Company utilizes foreign currency exchange rate contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency exchange rate contracts for trading purposes.

The following table presents the Company's realized losses (gains) associated with our cash flow hedges reclassified from accumulated other comprehensive loss ("AOCL") to earnings:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2026		2025		2026		2025
Cost of services	$	931	$	(1,499)	$	835	$	(1,066)
Selling, general and administrative expense	356		(308)		576		(219)
Depreciation expense	37		(91)		11		(65)
Total amount reclassified from AOCL	$	1,324	$	(1,898)	$	1,422	$	(1,350)


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2026		2025		2026		2025
Notional amount of settled forward contracts in Philippine pesos	$	51,106	$	46,842	$	102,889	$	92,777
Notional amount of settled forward contracts in Indian rupees	16,505		12,302		33,391		24,101
Notional amount of settled forward contracts in Mexican pesos	4,577		4,217		9,694		8,598
Notional amount of settled forward contracts in Colombian pesos	12,974		10,687		25,217		20,845
Notional amount of settled forward contracts in euros	7,885		—		14,945		—
Total notional amount of settled forward contracts designated as cash flow hedges	$	93,047	$	74,048	$	186,136	$	146,321


(in thousands)	June 30, 2026		December 31, 2025
Notional amount of outstanding forward contracts in Philippine pesos	$	163,622	$	168,959
Notional amount of outstanding forward contracts in Indian rupees	53,586		56,806
Notional amount of outstanding forward contracts in Mexican pesos	16,120		16,065
Notional amount of outstanding forward contracts in Colombian pesos	43,036		41,961
Notional amount of outstanding forward contracts in euros	25,085		20,641
Total notional amount of outstanding forward contracts designated as cash flow hedges	$	301,449	$	304,432

All cash flow hedges were determined to be highly effective, with no component of any gain or loss excluded from the assessment of hedge effectiveness, for the periods presented. Net unrealized losses (gains) on cash flow hedges for the three and six months ended June 30, 2026 were $(2.6) million and $0.4 million, respectively. As of June 30, 2026, the net accumulated loss on foreign currency cash flow hedges expected to be reclassified from AOCL into earnings within the next 12 months was $0.7 million. See Note 13, “Accumulated Other Comprehensive Loss” for additional information regarding changes in accumulated other comprehensive loss.

The Company’s derivatives are carried at fair value using various pricing models that incorporate observable market inputs, such as interest rate yield curves and currency rates, which are Level 2 inputs. By entering into derivative contracts, the Company is exposed to counterparty credit risk, or the failure of the counterparty to perform under the terms of the derivative contract. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or by the Company. For the periods presented, the non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments.

For financial statement presentation purposes, the Company does not offset assets and liabilities under master netting arrangements. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value:


	June 30, 2026
	Fair value measurements using						Total Gross Fair Value		Effect of Master Netting Arrangements		Net Amounts
(in thousands)	Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets
Money market funds	$	63,968	$	—	$	—	$	63,968	$	—	$	63,968
Derivatives designated as hedging instruments:
Forward contracts receivable	$	—	$	4,610	$	—	$	4,610	$	(820)	$	3,790


Liabilities
Derivatives designated as hedging instruments:
Forward contracts payable	$	—	$	5,325	$	—	$	5,325	$	(820)	$	4,505


	December 31, 2025
	Fair value measurements using						Total Gross Fair Value		Effect of Master Netting Arrangements		Net Amounts
(in thousands)	Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets
Money market funds	$	121,293	$	—	$	—	$	121,293	$	—	$	121,293
Derivatives designated as hedging instruments:
Forward contracts receivable	$	—	$	2,317	$	—	$	2,317	$	(2,097)	$	220


Liabilities
Derivatives designated as hedging instruments:
Forward contracts payable	$	—	$	4,075	$	—	$	4,075	$	(2,097)	$	1,978