As of June 30, 2025 and December 31, 2024, other noncurrent assets included equity securities accounted for under the equity method with a carrying amount of $4.7 million. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the three and six months ended June 30, 2025 and 2024.

The Company uses a foreign exchange hedging strategy to hedge local currency expenses and reduce variability associated with anticipated cash flows. The Company’s derivative financial instruments consist of foreign currency forward contracts. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves and credit default swap pricing.

The Company designates certain foreign currency forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) No. 815—Derivatives and Hedging. The effective portion of the gain or loss on the derivatives are reported as a component of accumulated other comprehensive loss (“AOCL”) in stockholders’ equity and reclassified into net loss on the condensed consolidated statements of operations (Unaudited) in the period the hedged transactions are settled.

The notional and fair values of all derivative financial instruments were as follows (in thousands):


	Location in Balance Sheet	June 30, 2025		December 31, 2024
Derivative instruments designated as cash flow hedges:
Fair value—foreign exchange contract assets, net amount	Prepaid expenses and other current assets	$	2,595	$	—
Fair value—foreign exchange contract liabilities, net amount	Accrued liabilities	$	—	$	1,858

Notional value held to buy U.S. dollars in exchange for other currencies		$	5,989	$	5,074
Notional value held to sell U.S. dollars in exchange for other currencies		$	67,171	$	57,329

All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparty to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's condensed consolidated balance sheets on a net basis.

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s condensed consolidated balance sheets were as follows (in thousands):


	June 30, 2025			December 31, 2024
Gross amount of recognized assets	$	3,287		$	173
Gross amount of recognized liabilities		(692	)		(2,031	)
Net derivative assets (liabilities)	$	2,595		$	(1,858	)

The changes in AOCL related to the cash flow hedges consisted of the following (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Beginning balance	$	300		$	243		$	(1,858	)	$	1,034
Other comprehensive gain (loss) before reclassification		2,677			(280	)		4,254			(702	)
Amounts reclassified from accumulated other comprehensive (gain) loss into net loss		(382	)		(115	)		199			(484	)
Net current period other comprehensive gain (loss)		2,295			(395	)		4,453			(1,186	)
Ending balance	$	2,595		$	(152	)	$	2,595		$	(152	)

The following table summarizes the gains (losses) recognized upon settlement of the hedged transactions in the condensed consolidated statements of operations for three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024			2025			2024
Research and development	$	379	$	135		$	120		$	484
Selling, general and administrative		76		(24	)		(30	)		83
Total	$	455	$	111		$	90		$	567