v3.26.3
Fair value measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value measurements Fair value measurements
The Company’s assets and liabilities that are measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows:
December 31, 2025December 31, 2024
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
(As Restated)
Cash equivalents (1):
Money market funds$40,120 $— $— $40,120 $42,436 $— $— $42,436 
Total cash equivalents$40,120 $— $— $40,120 $42,436 $— $— $42,436 
Other long-term liabilities
Warrant liability$— $— $13,090 $13,090 $— $— $— $— 
Total other long-term liabilities$— $— $13,090 $13,090 $— $— $— $— 
(1)    Included in cash and cash equivalents in the accompanying consolidated balance sheets. Cash balances were $9.6 million and $60.4 million as of December 31, 2025 and 2024, respectively.
The Company corrected errors in the valuation of the warrant liability and in the accounting for the November 5, 2025 warrant repricing. See Note 2. Restatement of previously issued consolidated financial statements, for the nature and quantitative effects of these corrections.
Cash equivalents are classified as Level 1 because the Company uses quoted market prices to determine their fair value. As of December 31, 2025 and 2024, the amortized cost of the Company’s cash equivalents approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. The liability-classified warrants are classified as Level 3 and are valued based on a Black-Scholes option pricing model each reporting period.
The fair value of the warrants was estimated with the following assumptions:
December 31, 2025
(As Restated)
Volatility69 %
Risk-free interest rate4.2 %
Dividend yield— %
Expected term (years)9.59
The expected term was corrected from a term of 2.47 years to the remaining contractual term of the warrants through August 1, 2035, which was approximately 9.59 years at December 31, 2025. Expected volatility is based on a blend of historical volatility (90% weighting) and implied volatility (10% weighting). The risk-free interest rate is based on a term-matched U.S. Treasury yield at the valuation date. The dividend yield is zero. As part of the restatement, the Company removed the incorrectly applied illiquidity adjustment to the warrants valuation.
Changes in the fair value of the Level 3 warrant liability during the year ended December 31, 2025 were as follows:
(in thousands)
Warrant Liability
(As Restated)
Balance as of December 31, 2024$— 
Issuance of warrants11,329 
Incremental fair value from November 2025 repricing971 
Change in fair value790 
Balance as of December 31, 2025$13,090 
In November 2020, the Company issued $143.8 million principal amount of 1.25% Convertible Senior Notes (2025 Notes), as discussed in Note 6 Financing arrangements. In November 2023, the Company repurchased $50.0 million in aggregate principal amount of the 2025 Notes, reducing the amount owed to $93.8 million. The Company repaid the remaining $93.8 million in aggregate principal at maturity on November 15, 2025 with restricted cash on hand. The calculated fair value of the 2025 Notes was zero and $82.5 million as of December 31, 2025 and 2024, respectively. The estimated fair value of the 2025 Notes was based on quoted market prices of the Company’s instruments in markets that are not active and are classified as Level 2 within the fair value hierarchy. The Company estimated the fair value of the 2025 Notes by evaluating quoted market prices and calculating the upfront cash payment a market participant would require to assume these obligations.
For certain other financial assets and liabilities, including accounts receivable, accounts payable and other current assets and liabilities, the carrying amounts approximate their fair value primarily due to the relatively short maturity of these balances.
The Company also measures certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, intangible assets, and operating lease right-of-use assets, in connection with periodic evaluations for potential impairment. In the first quarter of 2025, the fair value of the Company’s single reporting unit was determined based on unobservable (Level 3) inputs, as discussed in Note 1 Summary of business and significant accounting policies. In 2024, the fair value of the Company’s operating lease right-of-use asset related to its headquarters campus was determined based on unobservable (Level 3) inputs, as discussed in Note 14 Restructuring charges.