v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly provided to the CODM in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The accounting policies of the Company’s reportable segment, as well as how the Company derives revenue, are consistent with those described in “Note 2—Basis of Presentation and Summary of Significant Accounting Policies” of the Annual Report.
The CODM uses consolidated net income to assess performance, evaluate cost optimization, and allocate resources, including personnel-related and financial or capital resources, in the annual budget and forecasting process, as well as budget-to-actual variances on a monthly basis. As such, the Company has determined that it operates as one operating and reportable segment.
The following tables set forth significant expense categories and other specified amounts included in consolidated net income that are otherwise regularly provided to the CODM for the three and nine months ended September 30, 2026 and 2025:
(In thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Revenue
$185,599 $201,730 $572,742 $589,375 
Cost of revenue (1)(2)
38,844 42,069 117,921 121,740 
Research and development (1)(2)
26,260 37,803 92,523 112,877 
Sales and marketing (1)(2)
32,571 32,967 99,044 101,381 
General and administrative (1)(2)(3)(4)
22,959 26,871 72,039 74,257 
Provision for transaction losses1,176 2,393 5,947 6,421 
Stock-based compensation expense(5)
9,173 19,789 38,717 48,038 
Depreciation and amortization(5)
11,353 7,946 29,232 18,686 
Interest income
(4,586)(6,802)(15,453)(20,622)
Interest expense
539 694 1,945 2,066 
Restructuring charges(5)
2,746 — 15,571 — 
Income tax provision6,734 6,340 19,682 19,334 
Other segment items (5)(6)(7)(8)
6,020 2,325 6,899 5,406 
Segment net income
$31,810 $29,335 $88,675 $99,791 
(1) For all periods presented, excludes stock-based compensation and depreciation and amortization included in cost of revenue, research and development, sales and marketing, and general and administrative expenses, as these amounts are regularly provided to the CODM.
(2) For the three and nine months ended September 30, 2026, excludes charges related to the 2026 Restructuring (as defined below).
(3) For the three and nine months ended September 30, 2026 and 2025, excludes acquisition-related costs.
(4) For all periods presented, excludes expenses related to the warrant to purchase 500,000 shares of the Company’s common stock at an exercise price of $0.01 per share issued to the Tides Foundation in 2018, which is referred to as the Tides Foundation Warrant.
(5) During the three and nine months ended September 30, 2026, the Company incurred $4.3 million and $18.1 million in costs related to the execution of the 2026 Restructuring, respectively. Of these amounts, $2.7 million and $15.6 million, respectively, are included in “Restructuring charges”, while the remaining amounts are allocated to “Stock-based compensation expense”, “Depreciation and amortization”, and “Other segment items”. See “Note 13—Restructuring Charges” for more information.
(6) For each of the three months ended September 30, 2026 and 2025, the Company incurred $0.2 million of expenses related to the Tides Foundation Warrant, and for each of the nine months ended September 30, 2026 and 2025, the Company incurred $0.6 million of such expense.
(7) For each of the three and nine months ended September 30, 2026, the Company incurred transaction-related costs of $5.7 million in connection with Lifted’s acquisition of WorkMotion Software GmbH. These costs primarily consist of legal, accounting, and other professional fees, and are recorded in general and administrative expenses in the condensed consolidated statements of operations.
(8) For the three and nine months ended September 30, 2025, the Company incurred acquisition-related costs of $1.9 million and $4.4 million, respectively, in connection with the Company’s business combinations. These costs primarily consist of legal, accounting, and other professional fees, and are recorded in general and administrative expenses in the condensed consolidated statements of operations.
Substantially all of the Company’s long-lived assets, including operating lease right-of-use assets, were located in the United States as of September 30, 2026 and December 31, 2025.