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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Other Commitments We lease property under non-cancelable operating lease agreements. Refer to Note 6—Leases for further details. As of June 30, 2026, we had net borrowings of $15.0 million against the 2018 Line of Credit. As of June 30, 2026, the outstanding principal amount of the 2024 Convertible Senior Notes was $172.5 million bearing an interest rate of 4.25% due on April 1, 2029. Refer to Note 7—Debt and Financing Arrangements for further details. In January 2024, we renewed a cloud hosting agreement guaranteeing aggregate spend to a cloud hosting provider of $17.0 million each year over a three-year period. During the second year of the agreement, we had $16.2 million of aggregated spend. As a result of the shortfall, we accrued $0.8 million within accrued expenses liability on our consolidated balance sheets as of December 31, 2025. During the six months ended June 30, 2026, we entered into a new five-year agreement which replaced the existing three-year agreement and remediated the shortfall from year two. The new terms establish a year-one guaranteed aggregate spend of $10.0 million, escalating by $0.5 million annually thereafter. As a result of entering into the new agreement, we reversed the previously recognized $0.8 million expense that had been accrued as of December 31, 2025. Litigation and Guarantees From time to time, we may become involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. We make assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. We record a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range. If no amount within the range is a better estimate than any other amount, we accrue the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, we disclose the nature of the litigation and indicate that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, we disclose the nature and estimate of the possible loss of the litigation. We do not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Additionally, we have assumed certain indemnification agreements in conjunction with acquisitions with former directors and officers. As part of the Bridg acquisition, we assumed certain indemnification obligations of that company's officers. During the three months ended June 30, 2026, we engaged in further negotiations with the officer in order to settle the indemnification obligation, specifically the allocated portion of the former officer's settlement with co-defendants of $5.3 million, and additional amounts of claimed attorney's fees by the former officer of $1.8 million. Based on the negotiations, we increased the accrual by $5.2 million, resulting in a total accrual of $5.3 million related to the settlement and $1.2 million for the attorney's fees as of June 30, 2026. We expect $4.0 million of this amount to be covered by the applicable D&O insurance policy. This obligation has been included within discontinued operations as it is directly attributable to the Bridg acquisition, which was divested in the first quarter of 2026. We will also continue to pay on-going attorney's fees that are covered by the indemnification agreement. Pursuant to ASC 460, Guarantees, we have determined that the loss is both probable and estimable, representing the best estimate of the probable obligation. Based on the allocation to the former officer, the maximum potential exposure is $5.3 million, of which $4.0 million is expected to be covered by the applicable D&O insurance policy. We will recognize a corresponding insurance recovery asset once we have agreed on a final settlement amount with the insurance provider, in accordance with ASC 450-20. We are not presently a party to any other legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

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