v3.26.3
Other Financial Statement Information
 9 Months Ended
Sep. 30, 2026
Other Financial Information [Abstract]  
Other Financial Statement Information Other Financial Statement Information
Accounts Receivable
Changes in the allowances consisted of the following (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Beginning balance$3,300 $2,280 $2,281 $2,121 
Add: allowance recognized as a reduction of revenue
596 874 2,458 2,125 
(Less)/Add: allowance for credit losses recognized in general and administrative expense(659)161 491 356 
Less: write-offs, net of recoveries(1,193)(1,106)(3,186)(2,393)
Ending balance$2,044 $2,209 $2,044 $2,209 
The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents receivables from partners that are considered uncertain or no longer collectible.
Contract assets
Contract assets as of September 30, 2026 and December 31, 2025 were $5.3 million and $2.7 million, respectively. The increase is associated with a multi-year extension of an existing agreement entered into during the three months ended September 30, 2026 with both fixed and variable consideration.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
September 30, 2026December 31, 2025
Prepaid expenses$9,390 $10,165 
Deferred cost of revenue3,374 2,415 
Capitalized cloud computing development costs900 1,449 
Income tax receivable7,985 3,251 
Other current assets887 954 
Total prepaid expenses and other current assets$22,536 $18,234 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
September 30, 2026December 31, 2025
Accrued payroll and related expenses$21,994 $32,785 
Accrued vendor payables18,805 17,444 
Accrued advertising2,554 2,551 
Sales allowances3,378 3,126 
Accrued sales, use and business taxes5,412 10,409 
Deferred consideration relating to business acquired— 12,627 
Other4,836 4,419 
Total accrued expenses and other current liabilities$56,979 $83,361 
Deferred revenue
Deferred revenue as of September 30, 2026 and December 31, 2025 was $220.0 million and $203.9 million, respectively. Revenue recognized in the three months ended September 30, 2026 and 2025 that was included in deferred revenue as of June 30, 2026 and 2025 was $103.8 million and $101.4 million, respectively. Revenue recognized in the nine months ended September 30, 2026 and 2025 that was included in deferred revenue as of December 31, 2025 and 2024 was $193.2 million and $165.2 million, respectively.
The transaction price allocated to our fixed remaining performance obligation was $29.2 million to be recognized over the next 4.3 years, with $6.9 million to be recognized in the next twelve months. We have omitted performance based variable consideration allocated entirely to unsatisfied performance obligations within a series of other distinct performance obligations. Additionally, we elected to omit disclosure on the transaction price allocated to remaining performance obligations for contracts with an original expected term of one year or less.
Depreciation and Amortization
Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Cost of revenue$4,040 $5,343 $12,717 $15,771 
Sales and marketing3,578 2,513 10,007 6,682 
Technology and development1,790 2,081 6,024 6,459 
General and administrative1,464 1,436 4,535 4,206 
Total depreciation and amortization expense$10,872 $11,373 $33,283 $33,118