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Discontinued Operations
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Divestiture
On June 30, 2025, the Company completed the sale of its Apps Business, as part of its strategic effort to divest non-core assets and dedicate its resources to advancing its advertising business. In connection with the transaction, the Company received $715.6 million in total consideration, consisting of $430.6 million in cash and 596.9 million ordinary shares of Tripledot,
valued at $285.0 million. These shares represented approximately 22% of Tripledot’s outstanding ordinary shares and 20% of its fully diluted equity capitalization as of the closing date. The cash consideration of $430.6 million includes $400.0 million as specified in the purchase agreement and $30.6 million in purchase price adjustments in accordance with the terms of the purchase agreement.
The fair value of the equity consideration was determined based on the combined value of Tripledot and the Apps Business as of the closing date, estimated using a combination of the market approach, which incorporated valuation multiples of comparable public companies, and the income approach based on projected discounted cash flows. The significant assumptions used included estimates of future revenues and operating expenses, long-term growth rates, working capital requirements and discount rates, which are considered unobservable inputs and are classified as Level 3 within the fair value hierarchy.
For tax purposes, the transfer of certain Apps Business subsidiaries was treated as an asset sale, resulting in a $125.6 million write-off of deferred tax assets, which was included in the provision for income taxes from discontinued operations. The Company derecognized the remaining net assets of $591.2 million and recorded a pre-tax gain of $106.2 million in discontinued operations after giving effect to $18.3 million of transaction costs. The transaction also resulted in a capital loss for income tax purposes of $204.3 million, which was fully offset by a valuation allowance.
The following table summarizes the results of operations classified as loss from discontinued operations, net of income taxes, in the consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Revenue$640,830 $1,485,190 $1,441,325 
Costs and expenses:
Cost of revenue209,442 646,193 702,578 
Sales and marketing242,547 596,346 602,693 
Research and development130,298 263,979 258,605 
General and administrative4,202 16,169 1,653 
Goodwill impairment188,943 — — 
Total costs and expenses775,432 1,522,687 1,565,529 
Loss from operations
(134,602)(37,497)(124,204)
Other income:
Gain on divestiture, net of transaction costs106,229 — — 
Other income, net
1,519 1,559 3,172 
Total other income, net
107,748 1,559 3,172 
Loss from discontinued operations before income taxes(26,854)(35,938)(121,032)
Provision for (benefit from) income taxes72,590 (26,190)(19,917)
Loss from discontinued operations, net of income taxes
$(99,444)$(9,748)$(101,115)
The following table represents assets and liabilities that are classified as discontinued operations in the consolidated balance sheets for the period presented (in thousands):
Assets:As of December 31, 2024
Cash
$44,381 
Accounts receivable, net130,911 
Prepaid expenses and other current assets16,063 
Total current assets of discontinued operations191,355 
Goodwill345,741 
Intangible assets, net423,826 
Other non-current assets167,682 
Total assets of discontinued operations$1,128,604 
Liabilities:
Accounts payable$59,125 
Accrued and other current liabilities45,202 
Deferred revenue32,786 
Total current liabilities of discontinued operations137,113 
Other non-current liabilities1,414 
Total liabilities of discontinued operations$138,527 
The following table summarizes significant non-cash operating items and capital expenditures related to discontinued operations, as reflected in the consolidated statements of cash flows for the periods presented (in thousands):
Year Ended December 31,
202520242023
Amortization, depreciation and write-offs$64,054 $319,889 $369,856 
Stock-based compensation$3,663 $19,024 $20,556 
Goodwill impairment$188,943 $— $— 
Acquisition of intangible assets$22,429 $15,883 $52,718 
Goodwill Impairment
On February 12, 2025, the Company entered into a non-binding term sheet to sell its Apps Business to Tripledot. As of March 31, 2025, the Apps Business was not classified as held for sale, as the criteria required for such classification had not yet been met. However, the Company identified the non-binding term sheet combined with negotiations throughout the first quarter of 2025 to sell the Apps Business as an indicator of impairment for the Apps reporting unit and performed an interim quantitative goodwill impairment test as of March 31, 2025. Based on this assessment, the Company determined that the carrying amount of the Apps reporting unit exceeded its estimated fair value and recorded a non-cash goodwill impairment charge of $188.9 million. This charge was included in loss from discontinued operations, net of income taxes, for the year ended December 31, 2025.
At the time the interim impairment test was performed, the Company had not yet determined the fair value of the total consideration, which was subject to the valuation of the equity consideration at the closing of the transaction. As a result, the Company estimated the fair value of the Apps reporting unit using the discounted cash flow method of the income approach. Key valuation inputs included projected future cash flows, risk-adjusted discount rates and long-term growth rates, which are based on management’s estimates and assumptions believed to be reasonable and reflective of known market conditions as of the interim impairment test date. The resulting fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs.