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Debt | 12 Months Ended
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Dec. 31, 2025
Debt Disclosure [Abstract] |
Debt | Debt Outstanding Convertible Senior Notes As of December 31, 2024, the Company had three series of convertible senior notes outstanding. The issuances of such notes originally consisted of (i) $1.0 billion aggregate principal amount of 1.25% convertible senior notes due 2027 (the “2027 Notes”), issued on May 19, 2020 for net proceeds to the Company of $975.9 million after deducting offering costs of approximately $24.1 million, (ii) $287.5 million aggregate principal amount of 1.375% convertible senior notes due 2025 (the “2025 Notes”), issued on May 8, 2018 for net proceeds to the Company of $279.1 million after deducting offering costs of approximately $8.4 million, and (iii) $550.0 million aggregate principal amount of 0.875% convertible senior notes due 2025 that were issued by Livongo Health, Inc. (“Livongo”) on June 4, 2020 for which the Company agreed to assume all of Livongo’s rights and obligations (the “Livongo Notes” and together with the 2027 Notes and the 2025 Notes, the “Notes”). On the May 15, 2025 maturity date, the Company paid $0.6 million to settle the outstanding principal amount of the 2025 Notes and, on the June 1, 2025 maturity date, paid $550.0 million to settle the outstanding principal amount of the Livongo Notes. As of December 31, 2025, only the 2027 Notes remained outstanding. The following table presents certain terms of the 2027 Notes that were outstanding as of December 31, 2025:
| 2027 Notes
Principal Amount Outstanding as of December 31, 2025 (in thousands) | $ | 1,000,000
Interest Rate Per Year | 1.25 | %
Fair Value as of December 31, 2025 (in thousands) (1) | $ | 950,000
Fair Value as of December 31, 2024 (in thousands) (1) | $ | 875,000
Maturity Date | June 1, 2027
Optional Redemption Date | June 5, 2024
Conversion Date | December 1, 2026
Conversion Rate Per $1,000 Principal Amount as of December 31, 2025 | 4.1258
Remaining Contractual Life as of December 31, 2025 | 1.4 years
(1)The Company estimates the fair value of its 2027 Notes utilizing market quotations for debt that have quoted prices in active markets. Since the 2027 Notes do not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities. The 2027 Notes would be classified as Level 2 within the fair value hierarchy, as defined in Note 2. “Summary of Significant Accounting Policies.” The 2027 Notes are unsecured obligations of the Company and rank senior in right of payment to the Company’s indebtedness that is expressly subordinated in right of payment to such 2027 Notes; equal in right of payment to the Company’s liabilities that are not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness (including the Credit Agreement described below); and structurally junior to all indebtedness and other liabilities incurred by the Company’s subsidiaries. Holders may convert all or any portion of their 2027 Notes in integral multiples of $1,000 principal amount, at their option, at any time prior to the close of business on the business day immediately preceding the applicable conversion date only under the following circumstances: •during any quarter (and only during such quarter), if the last reported sale price of the shares of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price for the 2027 Notes on each applicable trading day; •during the five business day period after any 10 consecutive trading day period in which the trading price was less than 98% of the product of the last reported sale price of Company’s common stock and the conversion rate for the 2027 Notes on each such trading day; •upon the occurrence of specified corporate events described under the applicable indenture; or •if the Company calls the 2027 Notes for redemption, at any time until the close of business on the second business day immediately preceding the redemption date. On or after the applicable conversion date, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of the 2027 Notes, regardless of the foregoing circumstances. The 2027 Notes are convertible into shares of the Company’s common stock at the applicable conversion rate shown in the table above. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. If the Company elects to satisfy the conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of the Company’s common stock, the amount of cash and shares of the Company’s common stock due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 25 consecutive trading day observation period. The Company may redeem for cash all or part of the 2027 Notes, at its option, on or after the applicable optional redemption date shown in the table above if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the trading day immediately preceding the date on which the Company provides notice of the redemption. The redemption price will be the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest, if any. In addition, calling the 2027 Notes for redemption on or after the applicable optional redemption date will constitute a make-whole fundamental change with respect to the 2027 Notes, in which case the conversion rate applicable to the conversion of the 2027 Notes, if it is converted in connection with the redemption, will be increased in certain circumstances as described in the applicable indenture. The Company accounts for the 2027 Notes at amortized cost within the liability section of its Consolidated Balance Sheets. The Company has reserved an aggregate of 4.1 million shares of common stock for the 2027 Notes. The net carrying values of the indicated notes consisted of the following (in thousands):
| As of
| December 31, |  | December 31,
2025 Notes | 2025 |  | 2024
Principal | $ | — |  |  | $ | 725 |
Less: Debt discount (1) | — |  |  | (2) |
Net carrying amount | — |  |  | 723 |
Livongo Notes |  |  |
Principal | — |  |  | 550,000 |
Less: Debt discount (1) | — |  |  | — |
Net carrying amount | — |  |  | 550,000 |
2027 Notes |  |  |
Principal | 1,000,000 |  |  | 1,000,000 |
Less: Debt discount (1) | (5,075) |  |  | (8,582) |
Net carrying amount | 994,925 |  |  | 991,418 |
Total net carrying amount | $ | 994,925 |  |  | $ | 1,542,141 |
Convertible senior notes, net—current | $ | — |  |  | $ | 550,723 |
Convertible senior notes, net—non-current | 994,925 |  |  | 991,418 |
Total net carrying amount | $ | 994,925 |  |  | $ | 1,542,141 |
(1)Included in the accompanying Consolidated Balance Sheets within Convertible senior notes, net—current and Convertible senior notes, net—non-current and amortized to interest expense over the expected life of the notes using the effective interest rate method. The following table sets forth total interest expense recognized related to the indicated notes (in thousands):
| Year Ended December 31,
2025 Notes | 2025 |  | 2024 |  | 2023
Contractual interest expense | $ | 3 |  | $ | 10 |  | $ | 10
Amortization of debt discount | 1 |  | 3 |  | 3
Total | $ | 4 |  | $ | 13 |  | $ | 13
Effective interest rate | 1.8 | % |  | 1.8 | % |  | 1.8 | %
| Year Ended December 31,
Livongo Notes | 2025 |  | 2024 |  | 2023
Contractual interest expense | $ | 2,005 |  | $ | 4,813 |  | $ | 4,813
Amortization of debt discount | — |  | — |  | —
Total | $ | 2,005 |  | $ | 4,813 |  | $ | 4,813
Effective interest rate | 0.9 | % |  | 0.9 | % |  | 0.9 | %
| Year Ended December 31,
2027 Notes | 2025 |  | 2024 |  | 2023
Contractual interest expense | $ | 12,465 |  | $ | 12,500 |  | $ | 12,500
Amortization of debt discount | 3,507 |  | 3,451 |  | 3,396
Total | $ | 15,972 |  | $ | 15,951 |  | $ | 15,896
Effective interest rate | 1.6 | % |  | 1.6 | % |  | 1.6 | %
Revolving Credit Facility On July 17, 2025 (the “Effective Date”), the Company entered into a credit agreement (the “Credit Agreement”) that provides for a five-year, $300.0 million senior secured revolving credit facility (the “Revolving Credit Facility”). Interest rates under the Revolving Credit Facility are variable and are equal to the euro interbank offered rate, the Sterling Overnight Index Average Reference Rate, the Secured Overnight Financing Rate (“Adjusted Term SOFR”) or the Canadian Overnight Repo Rate Average, in each case, plus a margin of 2.75% to 3.25% per annum based on the Company’s secured net leverage ratio, or, at the Company’s option, at a base reference rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) the rate of interest last quoted by the administrative agent of the Revolving Credit Facility (the “Administrative Agent”) as its “base rate” and (c) the one-month Adjusted Term SOFR plus 1.00%, plus a margin of 1.75% to 2.25% per annum based on the Company’s secured net leverage ratio. The Company will pay customary agency fees and a commitment fee based on the daily unused portion of the Revolving Credit Facility at a rate of 0.50% per annum. The Revolving Credit Facility is not subject to amortization and will mature on the fifth anniversary of the Effective Date. In connection with the closing of the Credit Agreement, the Company paid $4.1 million in fees that are being amortized over the life of the Credit Agreement. At December 31, 2025, $3.7 million of the fees remain unamortized and are being carried as an asset. The Company’s obligations under the Credit Agreement are unconditionally guaranteed by all material domestic and foreign wholly-owned subsidiaries of the Company (the “Subsidiary Guarantors” and together with the Company, the “Obligors”), with customary exceptions. On the Effective Date, each of the Obligors and the Administrative Agent entered into a pledge and security agreement, pursuant to which the Obligors granted a security interest in substantially all of their respective assets, in each case, subject to customary exceptions and exclusions. Compliance with Debt Covenants The Credit Agreement contains customary representations and warranties, affirmative covenants, negative covenants and events of default. The Credit Agreement also contains financial covenants that are tested on the last day of each of the Company’s fiscal quarters. These financial covenants include a maximum secured net leverage ratio of 3.5:1, subject to a 4.0:1 covenant holiday following certain permitted acquisitions or permitted collaborations, and a minimum consolidated interest coverage ratio of 3.0:1. As of December 31, 2025, the Company was in compliance with these covenants. As of December 31, 2025, the Company had approximately $3.4 million of outstanding letters of credit under the Revolving Credit Facility, leaving approximately $296.6 million available for borrowing, from which the Company had not drawn.

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