v3.26.1
FAIR VALUE MEASUREMENT
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT
The following table presents a summary of the Company’s liabilities that are measured at fair value on a recurring basis by their respective fair value hierarchy level as of June 30, 2026:
Level 1Level 2 Level 3
Other liabilities
$— $— $10,928 
Contingent consideration
— — 16,699 
Total liabilities
$— $— $27,627 
The following table presents a summary of the Company’s liabilities that are measured at fair value on a recurring basis by their respective fair value hierarchy level as of December 31, 2025:
Level 1Level 2 Level 3
Other liabilities
$— $— $12,030 
Contingent consideration
— — 12,998 
Total liabilities
$— $— $25,028 
The carrying values of cash, contract receivables, and accounts payable and accrued expenses on June 30, 2026 and December 31, 2025 approximated their fair value due to the short maturity of these instruments.
Financial Instruments that are Measured at Fair Value on a Recurring Basis
Contingent Consideration
The fair value of contingent consideration from the Company's acquisitions were measured using Level 3 inputs.
The following table summarizes the change in fair value, as determined by Level 3 inputs, for the contingent consideration using the unobservable Level 3 inputs for the six months ended June 30, 2026 as follows:
Balance as of December 31, 2025$12,998 
Cash and stock payout of contingent consideration(3,480)
Change in fair value7,195 
Effect of currency translation adjustment(15)
Balance as of June 30, 2026$16,699 
The following table summarizes the change in fair value, as determined by Level 3 inputs, for the contingent consideration using the unobservable Level 3 inputs for the six months ended June 30, 2025 as follows:
Balance as of December 31, 2024$10,896 
Other adjustment(729)
Change in fair value5,159 
Effect of currency translation adjustment100 
Balance as of June 30, 2025$15,426 
The estimated fair value of contingent consideration is calculated using Monte Carlo simulations with inputs such as expected volatility of future operating results, discount rates applicable to future results, and expected growth rates.
Other Liabilities
The fair value of other liabilities, comprising of post-combination compensation obligations of the Company, relates to various acquisitions. The estimated fair value of other liabilities is calculated by Monte Carlo simulations, which utilize estimates including expected volatility of future operating results, discount rates applicable to future results, and expected growth rates.
The following table summarizes the change in fair value, as determined by Level 3 inputs, for the other liabilities using the Level 3 inputs for the six months ended June 30, 2026 as follows:
Balance as of December 31, 2025$12,030 
Accretion of liability
2,913 
Change in other liabilities(2,804)
Stock issued for settlement of other liability
(1,211)
Balance as of June 30, 2026$10,928 
The following table summarizes the change in fair value, as determined by Level 3 inputs, for the other liabilities using the Level 3 inputs for the six months ended June 30, 2025 as follows:
Balance at December 31, 2024$4,880 
Accretion of other liability3,055 
Change in other liabilities(1,722)
Stock issued for settlement of other liability(342)
Effect of currency translation adjustment6 
Other adjustment731 
Balance at June 30, 2025$6,608 
The Monte Carlo assumptions and inputs (which are Level 3 inputs) are as follows:
June 30, 2026
Significant Input
Weighted Average Input(1)
Input Range
Discount rate for credit risk and time value4.9%
4.7% to 4.9%
Discount rate for future profit after tax15.6%
11.8% to 19.6%
Expected volatility of future annual profit after tax32.4%
31.0% to 35.0%
Discount Rate Applicable to Future Annual EBITDA15.5%
15.0% to 16.0%
Expected Volatility of Future Annual EBITDA32.5%
32.0% to 33.0%
Expected Volatility of Future Annual Revenue9.8%
9.7% to 10.1%
Discount Rate Applicable to Future Annual Revenue11.8%
8.0% to 12.5%
Forecasted growth rate8.9%
(20.1)% to 31.6%
June 30, 2025
Significant Input
Weighted Average Input(1)
Input Range
Discount rate for credit risk and time value5.5%
5.2% to 5.9%
Discount rate for future profit after tax15.9%
11.7% to 21.4%
Expected volatility of future annual profit after tax31.5%
30.0% to 34.0%
Discount Rate Applicable to Future Annual EBITDA15.4%
14.9% to 16.2%
Expected Volatility of Future Annual EBITDA33.7%
30.0% to 35.0%
Forecasted growth rate13.4%
3.9% to 55.6%
(1) The weighted average is calculated using the estimated fair values
Financial Instruments Not Measured at Fair Value on a Recurring Basis
The Company's Notes Payable are subject to a variable interest rate. As a result, the carrying amount of these instruments closely approximates their fair value.
Non-financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain non-financial assets are measured at fair value on a nonrecurring basis, primarily goodwill and intangible assets, which are classified as Level 3 fair value measurements, and right-of-use lease assets, which are classified as Level 2 fair value measurements. These assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment.