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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses, approximate their fair values due to their short-term maturities.
The fair value measurements of financial instruments that are measured at fair value on a recurring basis consisted of the following (in thousands):
June 30, 2026December 31, 2025
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Derivative asset$— $3,740 $— $3,740 $— $— $— $— 
Liabilities
Derivative liability$— $44 $— $44 $— $— $— $— 
2021 Notes— — — — — — 660,324 660,324 
Total liabilities$— $44 $— $44 $— $— $660,324 $660,324 
The Company did not make any transfers between the levels of the fair value hierarchy during the periods presented.
As of December 31, 2025, the 2021 Notes total contractual principal and accrued in kind interest amounted to $525.5 million, resulting in a difference between the aggregate fair value and the aggregate unpaid balance of $134.9 million.
2021 Notes
On June 30, 2026, upon execution of the underwriting agreement in relation to the Company’s IPO, all of our outstanding convertible notes and related accrued interest were reclassified from liability to equity. See Note 8 – Convertible Notes and Term Loan for more information. Immediately prior to conversion, the fair value of the 2021 Notes was marked to its current fair value of $683.2 million, resulting in a loss of $0.2 million. Upon derecognition of the 2021 Notes, the cumulative amount of losses resulting from the instrument-specific credit of $19.9 million was recognized within earnings.
A summary of the net changes in the fair value of the 2021 Notes was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Balance, beginning of period$682,934 $568,121 $660,324 $544,106 
Fair value loss recognized in other expense, net240 30,754 25,239 57,554 
Fair value gain recognized in other comprehensive loss— (12,940)(2,389)(15,725)
Reclassification to equity(683,174)— (683,174)— 
Balance, end of period$— $585,935 $— $585,935 
Derivative Financial Instruments
During the three months ended June 30, 2026, the Company began entering into derivatives not designated as hedging instruments to manage foreign exchange risk related to the remeasurement of monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these foreign exchange derivatives are recorded within the "foreign currency exchange (losses) gains, net" component of other expense, net on the condensed consolidated statements of operations. The derivative instruments are recognized at gross fair value within prepaid expenses and other current assets and accrued liabilities on the condensed consolidated balance sheets. The Company recognized fair value gains on foreign exchange derivatives of $3.2 million for the three and six months ended June 30, 2026. As of June 30, 2026, the gross notional amount of outstanding foreign exchange derivatives was $197.7 million.
Convertible Preferred Stock Warrants
The Company issued warrants to purchase shares of the Company’s Series B convertible preferred stock which are recognized in other long-term liabilities on the unaudited condensed consolidated balance sheets, as
the convertible preferred shares underlying the warrants are contingently redeemable for cash. The convertible preferred stock warrants are remeasured to fair value each reporting period based on unobservable Level 3 inputs. The fair value of the warrants and changes in fair value of the warrants for the three and six months ended June 30, 2026 and 2025 were not material.
Certain assets and liabilities are measured at fair value on a nonrecurring basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment or when a new liability is being established that requires fair value measurement. The Company had no nonrecurring fair value measurements during the three and six months ended June 30, 2026 and 2025.