Derivative Instruments and Hedging Activities |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivative Instruments and Hedging Activities Disclosure | Derivatives Foreign Exchange Forward Contracts The Company uses derivative financial instruments to manage exposures to foreign currency that may or may not be designated as hedging instruments. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company enters into foreign exchange forward contracts primarily to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and remeasurement of certain assets and liabilities denominated in foreign currencies. For foreign exchange forward contracts not designated as hedging instruments, the fair value of the derivatives in a net gain or net loss position are recorded in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in other income, net in the accompanying condensed consolidated statements of operations. As of June 30, 2026 and December 31, 2025, foreign exchange forward currency contracts not designated as hedging instruments had total notional amounts of $4.4 million and $2.0 million, respectively. These contracts have maturities of approximately 30 days. For the three months ended June 30, 2026 and 2025, the Company recorded unrealized net gains of $62 thousand and $2 thousand, respectively, in its condensed consolidated statements of operations related to these contracts. For the six months ended June 30, 2026 and 2025, the Company recorded an unrealized net gains of $9 thousand and unrealized net losses of $22 thousand, respectively, in its condensed consolidated statements of operations related to these contracts. For the three months ended June 30, 2026 and 2025, the Company recorded realized net gains of $0.2 million and net realized losses of $9 thousand, respectively, in its condensed consolidated statements of operations related to these contracts. For the six months ended June 30, 2026 and 2025, the Company recorded a realized net gain of $3 thousand and a realized net loss of $0.5 million, respectively, in its condensed consolidated statements of operations related to these contracts. For foreign exchange forward contracts designated as hedging instruments, unrealized gains and losses arising from these contracts are recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. These hedging contracts have 30 day maturities. The hedging gains and losses in accumulated other comprehensive income (loss) in the consolidated balance sheet are subsequently reclassified to expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect the Company’s earnings. As of June 30, 2026 and December 31, 2025, the Company had no outstanding foreign exchange forward contracts designated as hedging instruments.
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