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Derivative Financial Instruments and Hedging
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging

6. Derivative Financial Instruments and Hedging

Notional Amount of Foreign Currency Contracts

The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows:

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Derivatives Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

$

95,063

 

 

$

84,156

 

Derivatives Not Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

 

19,041

 

 

 

16,737

 

Total derivative instruments

 

$

114,104

 

 

$

100,893

 

 

 

Effect of Foreign Currency Contracts on the Consolidated Statements of Operations

The gains (losses) on foreign currency contracts were presented on the Consolidated Statements of Operations as follows:

 

 

Derivatives Designated as Hedging Instruments

 

 

Derivatives Not Designated as Hedging Instruments

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Statement of Operations Location:

 

(in thousands)

 

Cost of revenue: subscription–self-managed and SaaS

 

$

603

 

 

$

3

 

 

$

(359

)

 

$

—

 

 

$

—

 

 

$

—

 

Research and development

 

 

4,833

 

 

 

32

 

 

 

(2,982

)

 

 

—

 

 

 

—

 

 

 

—

 

Sales and marketing

 

 

957

 

 

 

11

 

 

 

(693

)

 

 

—

 

 

 

—

 

 

 

—

 

General and administrative

 

 

1,330

 

 

 

11

 

 

 

(798

)

 

 

—

 

 

 

—

 

 

 

—

 

Interest and other income, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,671

 

 

 

(180

)

 

 

(593

)

Total gains (losses) recognized in earnings

 

$

7,723

 

 

$

57

 

 

$

(4,832

)

 

$

1,671

 

 

$

(180

)

 

$

(593

)

 

Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income

Net unrealized gains (losses) of foreign currency contracts designated as hedging instruments, net of tax, are recorded in AOCI. See Note 13, Accumulated Other Comprehensive Income, for the effect on other comprehensive income (loss) and the reclassification out of AOCI during the periods presented. All of net deferred gains in AOCI as of December 31, 2025 are expected to be recognized as cost of revenue or operating expenses in the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates over the next twelve months.