Concentration Risks and Significant Customers

3 Months Ended

Mar. 31, 2025

Risks and Uncertainties [Abstract]

Concentration Risks and Significant Customers

Concentration Risks and Significant Customers

Financial instruments that potentially expose the Company to concentration of credit risk consist of cash and cash equivalents, short-term investments, and accounts receivable. Cash on deposit with financial institutions may exceed federally insured limits.

As of March 31, 2025 and December 31, 2024, short-term investments were $157.5 million and $179.4 million, respectively, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. treasury securities, which amounted to $147.4 million, or 94% of the short-term investment balance at March 31, 2025 and $168.9 million, or 94% of the short-term investment balance at December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, all debt securities within the Company's portfolio are investment grade.

A significant portion of the Company's payment transactions are settled through one Issuing Bank, Sutton Bank. For the three months ended March 31, 2025 and 2024, 67% and 74% of Total Processing Volume, which is the total dollar amount of payments processed through the Company’s platform, net of returns and chargebacks, was settled through Sutton Bank, respectively.

A significant portion of the Company's revenue is derived from one customer. For the three months ended March 31, 2025 and 2024, this customer accounted for 45% and 49% of the Company’s net revenue, respectively. As of March 31, 2025, one customer accounted for 14%, of the Company’s accounts receivable balance. As of December 31, 2024, two separate customers accounted for 13% and 10% of the Company’s accounts receivable balance.