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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Company carries certain assets and liabilities at fair value on a recurring basis on its condensed consolidated balance sheets. The following table presents the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025:
As of September 30, 2025
BalanceLevel 1Level 2Level 3
Foreign exchange derivative assets$10,623 $— $10,623 $— 
Total assets measured at fair value on a recurring basis$10,623 $— $10,623 $— 
Foreign exchange derivative liabilities$3,506 $— $3,506 $— 
Contingent consideration liabilities22,942 — — 22,942 
Total liabilities measured at fair value on a recurring basis
$26,448 $— $3,506 $22,942 
The following table presents the fair values of the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2024. The Company had no material financial assets measured at fair value on a recurring basis as of December 31, 2024:
As of December 31, 2024
BalanceLevel 1Level 2Level 3
Foreign exchange derivative liabilities$14,650 $— $14,650 $— 
Contingent consideration liabilities32,978 — — 32,978 
Total liabilities measured at fair value on a recurring basis
$47,628 $— $14,650 $32,978 
The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 6 “Derivative Financial Instruments” for additional information regarding derivative financial instruments.
The fair value of the contingent consideration liabilities was determined using a probability-weighted expected return method and is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those weighted average estimated future payments were then discounted to present value using a rate based on the weighted average cost of capital of guideline companies. The discount rate used to determine the fair value of contingent consideration for the 2025 Acquisition was 15%. The discount rate used to determine the fair value of assumed contingent consideration for the NEORIS acquisition was 18%. The discount rates used to determine the fair value of contingent consideration for the Other 2024 Acquisitions ranged from a minimum of 12% to a maximum of 20%. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s condensed consolidated statements of income.
A reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities using significant unobservable inputs for the nine months ended September 30, 2025 is as follows:
Amount
Contingent consideration liabilities as of January 1, 2025
$32,978 
Acquisition date fair value of contingent consideration - 2025 Acquisition935 
NEORIS purchase accounting adjustment(1,529)
Changes in fair value of contingent consideration included in Interest and other income, net(426)
Payment of contingent consideration for previously acquired businesses(9,266)
Effect of foreign currency exchange rate changes, net250 
Contingent consideration liabilities as of September 30, 2025
$22,942 

Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated:
Fair Value Hierarchy
BalanceEstimated Fair ValueLevel 1Level 2Level 3
September 30, 2025
Financial Assets:
Cash equivalents:
Money market funds$5,350 $5,350 $5,350 $— $— 
Time deposits39,526 39,526 — 39,526 — 
Total cash equivalents$44,876 $44,876 $5,350 $39,526 $— 
Financial Liabilities:
Borrowings under the 2021 Credit Agreement$25,000 $25,000 $— $25,000 $— 
Deferred consideration for asset acquisition$34,401 $34,401 $— $34,401 $— 
Fair Value Hierarchy
BalanceEstimated Fair ValueLevel 1Level 2Level 3
December 31, 2024
Financial Assets:
Cash equivalents:
Money market funds$5,200 $5,200 $5,200 $— $— 
Time deposits16,907 16,907 — 16,907 — 
Total cash equivalents$22,107 $22,107 $5,200 $16,907 $— 
Financial Liabilities:
Borrowings under the 2021 Credit Agreement$25,000 $25,000 $— $25,000 $— 
Deferred consideration for asset acquisition$33,187 $33,187 $— $33,187 $— 
Non-Marketable Securities Without Readily Determinable Fair Values
The Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $36.5 million and $38.5 million as of September 30, 2025 and December 31, 2024, respectively, and is classified as Other noncurrent assets in the Company’s condensed consolidated balance sheets.