Fair Value Measurements |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Measurements | Fair Value Measurements The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses, are reflected on the unaudited condensed consolidated balance sheets at amounts that approximate fair value because of their short-term maturities. The carrying amount of the debt is reflected on the unaudited condensed consolidated balance sheets at an amount that approximates fair value as interest incurred is variable based on market rates. Foreign exchange derivative instruments During the three months ended June 30, 2026, the Company settled all outstanding foreign exchange derivative instruments. Accordingly, no derivative assets or liabilities were recorded on the unaudited condensed consolidated balance sheet as of June 30, 2026. As of December 31, 2025, the Company’s foreign exchange derivative instruments had an aggregate fair value of $0.6 million and were classified within Level 2 of the fair value hierarchy. The Company economically hedges certain portions of exposure to foreign currency exchange risk by entering into derivative transactions. The derivative instruments are recognized as either prepaid expenses and other current assets or accounts payable and accrued expenses on the unaudited condensed consolidated balance sheet at estimated fair value. The Company recognizes amounts subject to master netting arrangements on a net basis in the unaudited condensed consolidated balance sheet. The Company’s derivative financial instruments are valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies. The aggregate notional value of these contracts was $0 at June 30, 2026 and $8.8 million at December 31, 2025. Unrealized and realized gains/(losses), net, related to derivative instruments were $0 and $1.4 million, for the three months ended June 30, 2026 and 2025, respectively, and $(0.1) million and $1.4 million for the six months ended June 30, 2026, and 2025, respectively. Realized and unrealized gains/(losses) are recorded in other (expense) income, net in the unaudited condensed consolidated statement of operations and comprehensive loss. Cash flows from the foreign currency forward contracts are included in operating activities. Class P Units As discussed in Note 9 – Stockholders' Equity/Member's Capital and Temporary Equity, the automatic conversion (in substance share-settled redemption) feature of the Class P Units upon a Qualified IPO requires bifurcation between (i) the host contract, and (ii) the bifurcated derivative liability. The proceeds from issuance were first allocated to the fair value of the bifurcated derivative with the residual being allocated to the host contract. The bifurcated derivative is remeasured to fair value at each reporting period with changes in fair value recorded in the consolidated statement of operations and comprehensive loss. Upon IPO and conversion of the Class P Units into shares of the Company's common stock, the derivative liability for the Class P Units was remeasured to fair value of $98.1 million. The Company recognized a loss of $4.7 million for the six months ended June 30, 2026 in other (expense) income, net in the unaudited condensed consolidated statements of operations and comprehensive loss. The Company estimated the fair value of the derivative liability using the “with” or “without” approach. As the fair value of the derivative liability was determined using a valuation model that incorporates significant unobservable inputs, the derivative liability is classified as a Level 3 fair value measurement. The Level 3 fair value inputs used in determining the fair value of the derivative liability associated with the Class P Units include time to Qualified IPO or unit redemption, probability of each event, risk-free rate, and discount rate.
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