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Redeemable Convertible Preferred Stock, Redeemable Common Stock, and Stockholders’ Equity (Deficit) | 9 Months Ended
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Sep. 30, 2025
Equity [Abstract] |
Redeemable Convertible Preferred Stock, Redeemable Common Stock, and Stockholders’ Equity (Deficit) | Redeemable Convertible Preferred Stock, Redeemable Common Stock, and Stockholders' Equity (Deficit) Redeemable Convertible Preferred Stock and Redeemable Common Stock As of December 31, 2024, the Company had five classes of redeemable convertible preferred stock, which consisted of the following (in thousands, except per share amounts):
| Shares Authorized |  | Shares Issued and Outstanding |  | Issuance Price Per Share |  | Carrying Value |  | Aggregate Liquidation Preference
Series Seed | 60,000 |  | 45,567 |  | $ | 0.05 |  |  | $ | 2,039 |  |  | $ | 2,039 |
Series A | 24,182 |  | 19,361 |  | 0.12 |  |  | 2,256 |  |  | 2,256 |
Series B | 79,979 |  | 79,979 |  | 5.58 |  |  | 550,595 |  |  | 446,002 |
Series B-1 | 12,485 |  | 10,205 |  | 0.40 |  |  | 4,091 |  |  | 4,091 |
Series C | 29,523 |  | 29,523 |  | 38.95 |  |  | 1,163,130 |  |  | 1,163,671 |
Total | 206,169 |  | 184,635 |  |  |  | $ | 1,722,111 |  |  | $ | 1,618,059 |
As of September 30, 2025, there were no shares of redeemable convertible preferred stock issued and outstanding. As discussed in Note 1—Overview and Summary of Significant Accounting Policies, in connection with the IPO, all shares of the Company's Series Seed, Series A, Series B, and Series B-1 redeemable convertible preferred stock then outstanding, totaling 155,111,700 shares, were automatically converted into an equivalent number of shares of Class A common stock. The carrying value of $559 million was reclassified into stockholders' equity (deficit). All shares of Series C redeemable convertible preferred stock then outstanding, totaling 29,523,120 shares, were automatically converted into 29,874,066 shares of redeemable Class A common stock. During the year ended December 31, 2024, the Company paid a dividend in kind to the holders of the Series C redeemable convertible preferred stock, which resulted in additional shares being issued upon conversion. These additional shares issued upon conversion were not legally outstanding prior to the IPO and upon conversion were included in the redeemable Class A common stock shares outstanding. The redeemable Class A common stock was subject to a right to be "put" to the Company on the first trading day immediately after the second anniversary of the closing of the IPO (the "Put Right"). Upon exercise of the Put Right, holders of these shares would be entitled to receive from the Company an amount in cash equal to the original issue price per share of the Series C redeemable convertible preferred stock of $38.95 per share, representing an aggregate price of $1.2 billion. The carrying value of $1.2 billion was reclassified from redeemable convertible preferred stock to redeemable Class A common stock and was classified as mezzanine equity due to the shares being redeemable outside of the Company's control, as the related Put Right remains outstanding and unexercised. Ongoing accretion is recorded to bring the carrying value of the redeemable Class A common stock to its redemption value over time, consistent with the original terms of the Series C redeemable convertible preferred stock. Redeemable Class A common stock approximates its redemption value. The Company did not record accretion during the three months ended June 30, 2025 and September 30, 2025 as it was no longer considered probable that the Put Right would become redeemable. The rights of the holders of the Company's redeemable Class A common stock were identical to the Company's Class A common stock, except with respect to the Put Right. The Put Right with respect to each share was subject to a lock-up period after the IPO and automatically terminated in September 2025 when the Company’s Class A common stock achieved a 20 day volume-weighted average price in a consecutive 30 trading day period of at least $68.16. Upon termination of the Put Right, the Company's redeemable Class A common stock was reclassified into Class A common stock within stockholders' equity (deficit). Dividends Holders of the redeemable convertible preferred stock were entitled to participate in any dividends distributed to holders of common stock, as if converted. Holders of the Series C redeemable convertible preferred stock were entitled to a cumulative dividend that accrued from day-to-day at a rate of 10% per annum of the accumulated stated value, equal to $38.95 per share (the accumulated stated value is the defined "original issue price" at the time of conversion). Cumulative dividends were payable quarterly from the time the shares were issued until the completion of an IPO. These dividends could be paid in cash or in kind by being added to the accumulated stated value. After the IPO and conversion to redeemable Class A common stock, these dividend rights ceased, and there were no accrued and unpaid dividends as of September 30, 2025. For each of the nine months ended September 30, 2025 and 2024, the Company paid total cash dividends of $29 million. In addition, for the nine months ended September 30, 2024, the Company issued a paid-in-kind dividend, which was recognized at fair value of $16 million. Preferred Stock In connection with the IPO, the Company's amended and restated certificate of incorporation became effective, which authorized the issuance of 100,000,000 shares of preferred stock with a par value of $0.000005 per share with rights and preferences, including voting rights, designated from time to time by the Company's board of directors (the "Board"). As of September 30, 2025, there were no shares of preferred stock issued and outstanding. Common Stock As of September 30, 2025 and December 31, 2024, the Company was authorized to issue 3,400,000,000 and 690,680,000 shares of common stock, respectively, with a par value of $0.000005 per share. During the year ended December 31, 2024, the Company's certificate of incorporation was amended such that the Company's common stock consisted of Class A common stock and Class B common stock. In March 2025, the Company's certificate of incorporation was amended such that the Company's common stock consisted of Class A common stock, Class B common stock, and Class C common stock. As of September 30, 2025, there were no shares of Class C common stock issued and outstanding. Common stockholders are entitled to receive any dividends if and when declared by the Board, and upon liquidation or dissolution, are also entitled to receive all assets legally available for distribution to stockholders, ratably in proportion to the number of shares held, subject to the rights of preferred stockholders (if then outstanding). As of September 30, 2025 and December 31, 2024, no dividends on the Company's common stock had been declared by the Board. Voting Holders of Class A common stock are entitled to one vote per share. Prior to the completion of the Company's IPO, holders of Class B common stock were entitled to one vote per share. Upon the completion of the IPO, holders of Class B common stock are entitled to ten votes per share. Holders of Class A common stock and Class B common stock vote together as a single class, except where otherwise required by law. Holders of Class C common stock are entitled to no votes per share. Warrants to Purchase Common Stock As of December 31, 2024, the Company had outstanding warrants to purchase shares of the Company's Class A common stock that were classified as liabilities. These warrants were issued in connection with the 2022 Senior Secured Notes, as disclosed in the Company's Prospectus. As of December 31, 2024, the fair value of the warrant liabilities was $200 million and was included within derivative and warrant liabilities on the condensed consolidated balance sheets. The Company recorded a loss related to the fair value adjustment of these warrant liabilities of $58 million and $122 million within gain (loss) on fair value adjustments in the condensed consolidated statements of operations during the three and nine months ended September 30, 2024, respectively. On March 21, 2025, the Company executed an amendment with the warrant holders to fix the exercise price to $1.5495 per share, subject to adjustments for standard anti-dilution adjustments. As a result of the amendment, the Company concluded that the warrants met the requirements for equity classification for contracts that are indexed to the Company's own stock. The Company recognized a gain of $29 million for the final fair value adjustment pre-modification, and a loss of $2 million in connection with the modification and fixing of the exercise price, which were recorded in gain (loss) on fair value adjustments in the condensed consolidated statements of operations for the nine months ended September 30, 2025, and reclassified the final value of the warrants to additional paid-in capital. Refer to Note 3—Fair Value Measurements for further details. 2019 Stock Option Plan and 2025 Equity Incentive Plan In July 2019, the Company adopted a stock option plan (the "2019 Plan"). The purpose of the 2019 Plan is to provide incentives to attract, retain, and motivate eligible persons whose potential contributions are important to the success of the Company by offering those eligible persons an opportunity to participate in the Company's future performance through the grant of awards of common stock. The total number of shares authorized by the Board to be issued under the 2019 Plan was 73,637,600 shares as of December 31, 2024. Prior to the Company's IPO, in the event that shares previously issued under the 2019 Plan were reacquired by the Company pursuant to a forfeiture provision, right of first refusal, or repurchase by the Company, such shares were added back to the number of shares then available for issuance under the 2019 Plan. As of December 31, 2024, 3,750,480 shares were available for issuance under the 2019 Plan. In March 2025, in connection with the IPO and the adoption of the 2025 Plan (as defined below), the Company ceased granting awards under the 2019 Plan. Following the effective date of the 2025 Plan, any outstanding awards granted under the 2019 Plan remain subject to the terms of the 2019 Plan, and any shares that are forfeited or repurchased by the Company under the 2019 Plan will be automatically transferred to be available for issuance under the 2025 Plan. In March 2025, the Company adopted the 2025 Equity Incentive Plan (the "2025 Plan") as a successor to the 2019 Plan, which became effective in connection with the IPO. The 2025 Plan authorizes the award of incentive stock options ("ISOs"), nonqualified stock options ("NQSOs"), restricted stock awards ("RSAs"), stock appreciation rights, and RSUs, as well as performance and stock bonus awards. Pursuant to the 2025 Plan, the ISOs may be granted only to employees of the Company, while all other award types may be granted to employees, directors, and consultants. A total of 50,000,000 shares of the Company's Class A common stock were initially reserved, plus any reserved shares of Class A common stock not issued or subject to outstanding grants under the 2019 Plan on the effective date of the 2025 Plan. The number of shares reserved for issuance under the 2025 Plan will increase automatically on January 1 of each of 2026 through 2035 by the number of shares equal to the lesser of (a) five percent of the aggregate number of outstanding shares of all classes of common stock plus the total number of shares of Class A common stock issuable upon conversion of preferred stock (if any), in each case as of the immediately preceding December 31, or (b) such number of shares of Class A common stock as may be determined by the Board or the compensation committee of the Board (the "Compensation Committee"). In the event that shares previously issued under the 2025 Plan are reacquired by the Company pursuant to a forfeiture provision, right of first refusal, or repurchase by the Company, such shares shall be added back to the number of shares then available for issuance under the 2025 Plan. As of September 30, 2025, 46,370,204 shares were available for issuance under the 2025 Plan. The Company may grant stock options to employees, contractors, or other entities in order to incentivize them to increase their efforts on behalf of the Company and to promote the success of the Company's business. Stock options may be treated as ISO or NQSO depending on the specific circumstances of an optionee's relationship with the Company and the number of stock options vesting or exercised in a calendar year. Stock options granted under the 2019 and 2025 Plans generally vest either over a three-year or four-year period. The Company may award stock options that are immediately exercisable, subject to a repurchase right. The Company may also grant stock options that allow for acceleration of vesting. The stock options granted under the 2019 and 2025 Plans will expire after ten years from the time of their grant. The Company issues Class A common stock upon the exercise of stock options. Pursuant to the equity exchange agreement between the Company and each of its co-founders, each co-founder has the right to exchange any shares of Class A common stock received upon the exercise of certain option awards granted prior to September 2024 and held by such co-founder into an equal number of shares of Class B common stock. Stock Options The following table summarizes stock option activity under the 2019 Plan (share data and aggregate intrinsic value in thousands):
| Stock Options Outstanding |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Balance at January 1, 2025 | 47,219 |  | $ | 1.74 |  |  | 7 |  | $ | 2,163,455 |
Granted | — |  | — |  |  |  |  |
Exercised | (10,601) |  | 1.65 |  |  |  |  |
Forfeited, expired, or canceled | (294) |  | 7.41 |  |  |  |  |
Outstanding at September 30, 2025 | 36,324 |  | $ | 1.73 |  |  | 6 |  | $ | 4,908,050 |
Vested and expected to vest at September 30, 2025 | 36,324 |  | $ | 1.73 |  |  | 6 |  | $ | 4,908,050 |
Exercisable at September 30, 2025 | 25,578 |  | $ | 1.08 |  |  | 6 |  | $ | 3,472,840 |
The table above does not include 375,000 options outstanding as of September 30, 2025 that were issued in connection with the 2021 Convertible Senior Secured Notes. Refer to Note 14—Related-Party Transactions for additional information. The Company did not grant any stock options during the nine months ended September 30, 2025 and 2024. The aggregate grant date fair value of stock options that vested during the nine months ended September 30, 2025 and 2024 was and $27 million and $32 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2025 and 2024, was $940 million and $40 million, respectively. The intrinsic value for options exercised is the difference between the estimated fair value of the stock and the exercise price of the stock option at the date of exercise. Employee Stock Purchase Plan In March 2025, the Company adopted the 2025 Employee Stock Purchase Plan (the "2025 ESPP"), which became effective in connection with the IPO. The 2025 ESPP enables eligible employees to purchase shares of the Company's Class A common stock with accumulated payroll deductions. A total of 10,000,000 shares of the Company's Class A common stock are reserved for issuance under the 2025 ESPP. The number of shares reserved for issuance and sale under the 2025 ESPP will increase automatically on January 1st of each of 2026 through 2035 by the number of shares equal to the lesser of (a) the number of shares equal to 1% of the sum of the total number of outstanding shares of all classes of the Company's common stock plus the total number of shares of the Company's Class A common stock issuable upon conversion of preferred stock (if any), in each case outstanding as of the immediately preceding December 31 and (b) such number of shares of the Company's Class A common stock determined by the Board or Compensation Committee; provided, that the Board or Compensation Committee may in its sole discretion reduce the amount of the increase in any particular calendar year. Subject to stock splits, recapitalizations, or similar events, no more than 100,000,000 shares of the Company's Class A common stock may be issued over the term of the 2025 ESPP. The purchase price for shares purchased under the 2025 ESPP during any given purchase period is 85% of the lesser of the fair market value of the Company's Class A common stock on (1) the first trading day of the applicable offering period or (2) the last trading day of the applicable purchase period. Each offering period may itself consist of one or more purchase periods. The 2025 ESPP has an initial offering period beginning on March 28, 2025 and ending on November 15, 2025, with a purchase date of November 15, 2025. The initial enrollment period began on the date of the IPO and ended on April 18, 2025. As of September 30, 2025, the amount withheld on behalf of employees for future purchases under the ESPP due to the timing of payroll deductions and the open enrollment period was not material. As of September 30, 2025, no shares of Class A common stock have been purchased under the 2025 ESPP. Stock-based compensation expense during the three months ended September 30, 2025 and unrecognized stock-based compensation expense as of September 30, 2025 related to the 2025 ESPP were not material. Restricted Stock Units RSUs granted typically vest over four years. The following table summarizes restricted stock unit activity under the 2019 and 2025 Plans (share data in thousands):
| Shares |  | Weighted- Average Fair Value Per Share
Balance at January 1, 2025 | 15,455 |  | $ | 38.80 |
Granted | 15,266 |  | 69.43 |
Vested | (4,361) |  | 36.30 |
Forfeited, expired, or canceled | (886) |  | 42.58 |
Unvested balance at September 30, 2025 | 25,474 |  | $ | 57.42 |
Restricted Stock Awards During the three and nine months ended September 30, 2025, 160,440 and 1,762,697 RSAs were granted in connection with the Company's acquisitions. These awards typically vest over a four-year service period. The grant date fair value of the RSAs was based on the Company's closing stock price on the grant date and is recognized as stock-based compensation expense over the vesting period. As of September 30, 2025, 1,585,674 of these RSAs remained unvested. Refer to Note 4—Business Combination for additional information. Stock-Based Compensation Expense As of September 30, 2025, unrecognized stock-based compensation expense related to unvested stock options was $63 million, which is expected to be recognized over a weighted-average period of two years. As of September 30, 2025, unrecognized stock-based compensation expense related to unvested RSUs and RSAs was $1.2 billion, which is expected to be recognized over a weighted-average period of three years. Total stock-based compensation expense recognized in the Company's condensed consolidated statements of operations was as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cost of revenue | $ | 3,533 |  |  | $ | 271 |  |  | $ | 8,927 |  |  | $ | 1,009 |
Technology and infrastructure | 52,623 |  |  | 2,161 |  |  | 154,905 |  |  | 6,598 |
Sales and marketing | 9,810 |  |  | 847 |  |  | 21,124 |  |  | 2,562 |
General and administrative | 78,465 |  |  | 4,338 |  |  | 288,453 |  |  | 13,297 |
Total stock-based compensation expense (1) (2) | $ | 144,431 |  |  | $ | 7,617 |  |  | $ | 473,409 |  |  | $ | 23,466 |
(1) Stock-based compensation expense was net of capitalized costs primarily related to the development of internal-use software of $12 million and $2 million during the three months ended September 30, 2025 and 2024, respectively, and $43 million and $6 million during the nine months ended September 30, 2025 and 2024, respectively. (2) The Company recognized no and $177 million of stock-based compensation expense, net of no and $17 million of capitalized costs primarily related to the development of internal-use software, during the three and nine months ended September 30, 2025, respectively, associated with vested RSUs as a result of the satisfaction of the liquidity-event performance-based vesting condition which was satisfied in connection with the IPO.

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