Derivative Instruments |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivative Instruments | Derivative Instruments As part of the Company’s foreign currency risk management program, the Company uses derivative instruments to mitigate the volatility related to fluctuations in foreign exchange rates. The Company entered into foreign currency forward contracts used to mitigate the currency exchange risk associated with clients and their customers' payments and intercompany loans. The Company's foreign currency forward contracts are not designated as hedging instruments. The notional amounts are generally not exchanged, but are used only as the underlying basis on which the value of foreign exchange payments under these contracts is determined. The notional amounts are not recorded on the condensed consolidated balance sheets and are not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. As of September 30, 2026 and December 31, 2025, the Company had 25,852 and 18,355 open foreign exchange contracts related to clients and their customers' payments, respectively. As of September 30, 2026 and December 31, 2025, the Company had foreign currency forward contracts related to clients and their customers' payments outstanding with notional amounts of $118.7 million and $66.5 million, respectively. As of September 30, 2026 and December 31, 2025, the Company had one and two open foreign exchange contracts related to intercompany loans, respectively. As of September 30, 2026 and December 31, 2025, the Company had foreign exchange contracts related to intercompany loans outstanding with notional amounts of $25.1 million and $83.7 million, respectively. The Company records all derivative instruments in the condensed consolidated balance sheets at their fair values. The Company recorded a liability of $0.3 million related to outstanding foreign exchange contracts as of September 30, 2026. The Company recorded an asset of $0.3 million and a liability of $0.4 million related to outstanding foreign exchange contracts as of December 31, 2025, respectively. Assets and liabilities associated with outstanding foreign exchange contracts are recorded within prepaid expenses and other current assets and accrued expenses and other current liabilities, respectively, on the condensed consolidated balance sheets. The Company recognized losses of $0.2 million and $1.0 million on the intercompany loan derivatives during the three and nine months ended September 30, 2026, respectively. The Company recognized a gain of $0.2 million on the intercompany loan derivatives during the three and nine months ended September 30, 2025. The Company recognized losses on derivatives related to clients and their customers' payments of $2.8 million and $4.2 million during the three and nine months ended September 30, 2026, respectively. The Company recognized losses on derivatives related to clients and their customers' payments of $1.0 million and $0.4 million during the three and nine months ended September 30, 2025, respectively. Gains and losses on the intercompany loans derivatives are included as a component of other income (expense) in the condensed consolidated statements of operations and comprehensive income. Gains and losses on the derivatives related to clients and their customers' payments are included as a component of general and administrative expense within the condensed consolidated statements of operations and comprehensive income due to the nature of the transactions.
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