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Equity Method Investment
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Equity Method Investment Equity Method Investment
In 2022, the Company acquired 44.6% of the equity interests in Syniverse Corporation (“Syniverse”) for $750.0 million in cash. The Company determined that it did not have a controlling financial interest in Syniverse but did exercise significant influence and, therefore, the investment was accounted for under the equity method. The Company’s ownership percentage and other information related to the equity method investment, reported on a 90-day lag, are as follows:
As of December 31,
20252024
Ownership percentage
43.7%43.8%
Basis difference attributable to intangible assets and deferred tax liability
$297,114 $353,307 
Equity method goodwill
$543,157 $623,786 
During 2025, the Company observed a change in the performance trend of its equity method investment, which it deemed an indicator that the carrying value of its equity method investment could be in excess of its fair value. The Company engaged a third-party expert to assist in performing a fair value assessment of the investment and concluded that as of December 31, 2025, its equity method investment was impaired. The Company recorded an impairment of $80.6 million in the impairment of equity method investment line item in the accompanying consolidated statement of operations for the year ended December 31, 2025. The Company allocated the full impairment amount to the equity method goodwill.
The Company estimated the fair value of its equity method investment using a weighting of fair values derived from an income and a market approach. Estimating the fair value by these methods involves the use of various assumptions that the Company believed were reasonable under the circumstances. Under the income approach, the Company determined the fair value of the investment based on the present value of estimated future cash flows using the cash flow projections prepared by the investee management. The market approach estimated the fair value based on market multiples of adjusted EBITDA derived from comparable publicly traded companies with similar operating and investment characteristics as the investment. While these assumptions reflect management’s best estimates at the time of the valuation, the estimates are inherently complex and uncertain and the actual results could differ materially from the estimates. The fair value measurement of the equity method investment is classified as Level 3 in the fair value hierarchy.
In conjunction with this investment, the Company and Syniverse entered into a wholesale agreement, pursuant to which Syniverse would process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. The values of the transactions that occurred between the Company and Syniverse were $138.9 million, $145.0 million and $143.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. These transactions were recorded as cost of revenue in the accompanying consolidated statements of operations.
Summarized financial information of Syniverse is presented below on a one-month lag. The investee’s fiscal year end is November 30.
As of November 30,
20252024
(In thousands)
Current assets
$172,548 $225,975 
Noncurrent assets
$2,365,336 $2,344,658 
Current liabilities
$214,359 $232,522 
Noncurrent liabilities
$1,198,196 $1,176,332 
Non controlling interest
$5,068 $6,027 
Year Ended November 30,
202520242023
(In thousands)
Revenue$795,749 $819,164 $739,317 
Cost of operations (excluding depreciation and amortization)
$481,486 $474,081 $430,140 
Income from operations
$92,701 $113,950 $67,870 
Net loss
$(56,926)$(38,849)$(89,096)
Net loss attributable to Syniverse Corporation
$(59,338)$(40,917)$(90,770)