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Summary of Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2025
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly-owned subsidiaries, its non-wholly owned subsidiaries where the Company has a controlling interest and certain variable interest entities ("VIE"). Generally accepted accounting principles require that if an entity is the primary beneficiary of a VIE, the entity should consolidate the assets, liabilities and results of operations of the VIE in its consolidated financial statements. The primary beneficiary is the party that has both of the following: (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb the losses or rights to receive the benefits of the entity that could potentially be significant to the VIE. Accordingly, the Company has consolidated VIEs in which it considers itself to be the primary beneficiary, with the equity interests of the unaffiliated investors presented as non-controlling interests in the accompanying unaudited condensed consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. At December 31, 2024, total assets and liabilities of the consolidated VIEs were $5.1 million and $43.4 thousand, respectively, and are reflected in the Company's consolidated balance sheet. The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP for interim financial information and pursuant to the instructions to Form 10-Q. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments considered necessary for a fair statement of such interim results. Unless otherwise indicated, amounts provided in these notes pertain to continuing operations only (see Note 4 for information on discontinued operations). The results for the unaudited condensed consolidated statement of operations and comprehensive income (loss) are not necessarily indicative of results to be expected for the year ending December 31, 2025 or for any future interim period. The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024 and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2025. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Those estimates and assumptions include useful lives of property and equipment and intangible assets, recoverability of goodwill and intangible assets, accruals for contingent liabilities, equity instruments issued in share-based payment arrangements, and accounting for income taxes, including the valuation allowance on deferred tax assets. Segment and Reporting Unit Information Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer ("CEO") is determined to be the CODM. The CODM reviews financial information and makes resource allocation decisions at the consolidated group level. The Company has one operating segment as of September 30, 2025, the streaming business. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with remaining maturities at the date of purchase of three months or less to be cash equivalents, including balances held in the Company’s money market accounts. Restricted cash primarily represents cash on deposit with financial institutions in support of a letter of credit outstanding in favor of the Company’s landlord for office space. The restricted cash balance has been excluded from the cash balance and is classified as restricted cash on the condensed consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash within the condensed consolidated balance sheets that sum to the total of the same on the condensed consolidated statement of cash flows (in thousands):
| September 30, 2025 |  | December 31, 2024
Cash and cash equivalents | $ | 274,150 |  |  | $ | 161,435 |
Restricted cash | 6,148 |  |  | 6,137 |
Total cash, cash equivalents and restricted cash | $ | 280,298 |  |  | $ | 167,572 |
Certain Risks and Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of demand deposits and accounts receivable. The Company maintains cash deposits with financial institutions that at times exceed applicable insurance limits. The majority of the Company’s software and computer systems utilize data processing, storage capabilities and other services provided by Google Cloud Platform and Amazon Web Services, which cannot be easily switched to another cloud service provider. As such, any disruption of the Company’s interference with Google Cloud Platform and Amazon Web Services could adversely impact the Company’s operations and business. Significant Accounting Policies For a detailed discussion of the Company’s significant accounting policies, see Note 3 to the consolidated financial statements for the year ended December 31, 2024, included in the Company’s Annual Report. Net Income (Loss) Per Share Net income (loss) per basic share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Net income (loss) per diluted share includes the weighted-average effect of dilutive stock options and restricted stock units (under the treasury stock method) and convertible notes (under the if-converted method) on the weighted-average common shares outstanding. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except shares and per share data):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Numerator: |  |  |  |  |  |  |
Net income (loss) from continuing operations | $ | (18,866) |  |  | $ | (54,684) |  |  | $ | 161,596 |  |  | $ | (136,846) |
Less: net (income) loss attributable to non-controlling interest | — |  |  | 425 |  |  | 1 |  |  | 1,454 |
Net income (loss) from continuing operations available to common shareholders | (18,866) |  |  | (54,259) |  |  | 161,597 |  |  | (135,392) |
Net income (loss) from discontinued operations, net of tax | — |  |  | 1,836 |  |  | — |  |  | 1,687 |
Net income (loss) attributable to common shareholders - basic | $ | (18,866) |  |  | $ | (52,423) |  |  | $ | 161,597 |  |  | $ | (133,705) |
Add: Dilutive effect of convertible notes, net (1) | — |  |  | — |  |  | 8,376 |  |  | — |
Net income (loss) attributable to common shareholders - diluted | $ | (18,866) |  |  | $ | (52,423) |  |  | $ | 169,973 |  |  | $ | (133,705) |
Denominator: |  |  |  |  |  |  |
Weighted-average common shares outstanding - basic | 342,504,107 |  |  | 331,582,813 |  |  | 341,752,619 |  |  | 314,126,997 |
Convertible notes | — |  |  | — |  |  | 46,266,486 |  |  | — |
Common stock options and restricted stock units | — |  |  | — |  |  | 16,633,110 |  |  | — |
Weighted-average common shares outstanding - diluted | 342,504,107 |  |  | 331,582,813 |  |  | 404,652,215 |  |  | 314,126,997 |
Net income (loss) per share - basic |  |  |  |  |  |  |
Continuing operations | $ | (0.06) |  |  | $ | (0.17) |  |  | $ | 0.47 |  |  | $ | (0.44) |
Discontinued operations | $ | — |  |  | $ | 0.01 |  |  | $ | — |  |  | $ | 0.01 |
Total net income (loss) per share - basic | $ | (0.06) |  |  | $ | (0.16) |  |  | $ | 0.47 |  |  | $ | (0.43) |
Net income (loss) per share - diluted |  |  |  |  |  |  |
Continuing operations | $ | (0.06) |  |  | $ | (0.17) |  |  | $ | 0.42 |  |  | $ | (0.44) |
Discontinued operations | $ | — |  |  | $ | 0.01 |  |  | $ | — |  |  | $ | 0.01 |
Total net income (loss) per share - diluted | $ | (0.06) |  |  | $ | (0.16) |  |  | $ | 0.42 |  |  | $ | (0.43) |
(1) Reflects interest expense incurred, net of tax, associated with convertible note activity during the period as evaluated under the if-converted method. The following common share equivalents are excluded from the calculation of weighted average common shares outstanding because their inclusion would have been anti-dilutive:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
| 2025 |  | 2024 |  | 2025 |  | 2024 |
Warrants to purchase common stock | — |  |  | 166,670 |  |  | — |  |  | 166,670 |  |
Stock options | 16,491,907 |  |  | 18,846,277 |  |  | 14,964,036 |  |  | 18,846,277 |  |
Unvested restricted stock units | 32,604,690 |  |  | 22,284,523 |  |  | 1,676,126 |  |  | 22,284,523 |  |
Convertible notes variable settlement feature | 48,771,938 |  |  | 48,771,938 |  |  | 2,505,452 |  |  | 48,771,938 |  |
Total | 97,868,535 |  |  | 90,069,408 |  |  | 19,145,614 |  |  | 90,069,408 |  |
Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740): Improvements to Income Tax Disclosures, requires incremental disclosures within the income tax disclosures that increase the transparency and usefulness of income tax disclosures. The updated disclosures primarily require specific categories and greater disaggregation within the rate reconciliation, disaggregation of income taxes paid, and modifications of other income tax-related disclosures. The guidance is effective for annual periods beginning after December 15, 2024. Retrospective application is also permitted. The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This standard requires public companies to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The new standard, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently in the process of evaluating the effects of the new guidance. In November 2024, the FASB issued ASU 2024-04, Debt-Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This standard clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. It is effective for fiscal years beginning after December 15, 2025 and is permitted on either a prospective or retrospective basis. The Company is currently in the process of evaluating the effects of the new guidance. In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810). This update improves the requirements for identifying the accounting acquirer in Topic 805, particularly in improving the comparability between transactions involving VIEs and those not involving VIEs. The amendments require that an entity consider the same factors that are currently required for determining which entity is the accounting acquirer in other transactions. It is effective for fiscal periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods. The Company is currently in the process of evaluating the effects of the new guidance. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326). This update introduces a practical expedient for all entities and an accounting policy election other than public business entities related to applying Subtopic 326-20 to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. It is effective for fiscal years beginning after December 15, 2025 and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the effects of the new guidance. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40). This update is intended to modernize the accounting software costs that are accounted for under Subtopic 350-40. It is effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the effects of the new guidance.

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