Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. There have been no transfers between fair value measurement levels during the periods presented. The carrying amounts of cash and cash equivalents, accounts receivable, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments.

The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis, whereby inputs used in valuation techniques are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2026 and December 31, 2025 by level within the fair value hierarchy (in thousands):

 

	As of March 31, 2026						As of December 31, 2025
	(unaudited)
	Level I		Level II		Level III		Level I		Level II		Level III
Financial assets:
Cash equivalents:
Money market funds	$	89,365	$	—	$	—	$	120,155	$	—	$	—
Marketable securities:
US Treasury securities	—		568,190		—		—		681,225		—
Prepaid expenses and other short-term assets:
Forward foreign exchange contracts	—		22,695		—		—		21,605		—
Long-term marketable securities:
US Treasury securities	—		113,614		—		—		187,202		—
Long-term other assets:
Forward foreign exchange contracts	—		2,456		—		—		6,465		—
Financial liabilities:
Accrued expenses and other short-term liabilities:
Forward foreign exchange contracts	—		(308)		—		—		(2,515)		—
Long-term other liabilities:
Forward foreign exchange contracts	—		(2,063)		—		—		(1,691)		—
Total financial assets (liabilities), net	$	89,365	$	704,584	$	—	$	120,155	$	892,291	$	—

See Note 4, "Business Combinations," for the estimated fair value of acquired net tangible and intangible assets and liabilities and Note 6, "Convertible Senior Notes and Capped Call Transactions," for the carrying amount and estimated fair value of the Company's 2029 Notes, as of March 31, 2026. Marketable securities and derivative instruments are classified within Level 2, as these assets are valued using alternative pricing sources utilizing market observable inputs.