FRESHWORKS INC., 10-K filed on 2/26/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 23, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40806    
Entity Registrant Name Freshworks Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 33-1218825    
Entity Address, Address Line One 2950 S. Delaware Street    
Entity Address, Address Line Two Suite 201    
Entity Address, City or Town San Mateo    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94403    
City Area Code 650    
Local Phone Number 513-0514    
Title of 12(b) Security Class A common stock, par value $0.00001 per share    
Trading Symbol FRSH    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 3,080
Documents Incorporated by Reference
Portions of the registrant's definitive proxy statement for the 2026 Annual Meeting of Stockholders (the "2026 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. The 2026 Proxy Statement will be filed with Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2025.
    
Entity Central Index Key 0001544522    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   249,087,203  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   35,047,987  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location San Jose, California
Auditor Firm ID 34
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 569,774 $ 620,315
Restricted cash 62,374 3
Marketable securities 211,597 449,750
Accounts receivable, net of allowance of $10,809 and $8,885 150,817 122,910
Deferred contract acquisition costs 29,830 26,106
Prepaid expenses and other current assets 72,774 46,343
Total current assets 1,097,166 1,265,427
Property and equipment, net 38,843 25,893
Operating lease right-of-use assets 39,893 36,891
Deferred contract acquisition costs, noncurrent 27,179 22,534
Goodwill 146,676 147,014
Intangible assets, net 76,986 90,840
Deferred tax assets, net 157,466 8,499
Other assets 18,503 14,786
Total assets 1,602,712 1,611,884
Current liabilities:    
Accounts payable 11,507 1,619
Accrued liabilities 97,631 81,933
Deferred revenue 385,320 323,435
Income tax payable 3,571 728
Total current liabilities 498,029 407,715
Operating lease liabilities, non-current 33,282 30,221
Other liabilities 38,751 36,027
Total liabilities 570,062 473,963
Commitments and contingencies (Note 9)
Stockholders' equity:    
Preferred stock, $0.00001 par value per share; 10,000,000 shares authorized as of December 31, 2025 and 2024, respectively; zero shares issued and outstanding as of December 31, 2025 and 2024 0 0
Additional paid-in capital 4,586,392 4,874,133
Accumulated other comprehensive loss (1,591) (338)
Accumulated deficit (3,552,154) (3,735,877)
Total stockholders' equity 1,032,650 1,137,921
Total liabilities and stockholders' equity 1,602,712 1,611,884
Class A Common Stock    
Stockholders' equity:    
Common stock, value 2 2
Class B Common Stock    
Stockholders' equity:    
Common stock, value $ 1 $ 1
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts receivable, allowance for credit loss, current $ 10,809 $ 8,885
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, authorized (in shares) 10,000,000 10,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, issued (in shares) 248,359,124 244,965,000
Common stock, outstanding (in shares) 248,359,124 244,965,000
Class B Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 350,000,000 350,000,000
Common stock, issued (in shares) 35,067,987 58,417,396
Common stock, outstanding (in shares) 35,067,987 58,417,396
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 838,809 $ 720,420 $ 596,432
Cost of revenue 126,145 113,330 103,369
Gross profit 712,664 607,090 493,063
Operating expense:      
Research and development 163,208 164,590 137,756
Sales and marketing 394,753 390,817 357,781
General and administrative 141,093 180,629 167,698
Restructuring charges 405 9,664 0
Total operating expenses 699,459 745,700 663,235
Income (loss) from operations 13,205 (138,610) (170,172)
Interest and other income, net 40,077 47,773 46,403
Income (loss) before income taxes 53,282 (90,837) (123,769)
Total provision for income taxes (130,441) 4,531 13,667
Net income (loss) $ 183,723 $ (95,368) $ (137,436)
Earnings Per Share [Abstract]      
Net income (loss) per share - basic (in dollars per share) $ 0.63 $ (0.32) $ (0.47)
Net income (loss) per share - diluted (in dollars per share) $ 0.63 $ (0.32) $ (0.47)
Weighted-average shares used in computing net income (loss) per share:      
Basic (in shares) 291,079 300,843 293,087
Diluted (in shares) 293,769 300,843 293,087
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 183,723 $ (95,368) $ (137,436)
Other comprehensive income (loss), net of taxes:      
Unrealized gains (losses) on available-for-sale debt securities (592) 1,310 7,105
Net change on cash flow hedging (661) (894) (428)
Total other comprehensive income (loss), net of taxes: (1,253) 416 6,677
Comprehensive income (loss) $ 182,470 $ (94,952) $ (130,759)
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022   289,093,000      
Beginning balance at Dec. 31, 2022 $ 1,051,818 $ 3 $ 4,562,319 $ (7,431) $ (3,503,073)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares)   360,000      
Issuance of common stock upon exercise of stock options 88   88    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   6,615,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (68,621)   (68,621)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 627,371 627,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 7,271   7,271    
Stock-based compensation 212,465   212,465    
Other comprehensive income 6,677     6,677  
Net income (loss) (137,436)       (137,436)
Ending balance (in shares) at Dec. 31, 2023   296,695,000      
Ending balance at Dec. 31, 2023 1,072,262 $ 3 4,713,522 (754) (3,640,509)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares)   338,000      
Issuance of common stock upon exercise of stock options 89   89    
Issuance of common stock and options in connection with acquisition (in shares)   687,000      
Issuance of common stock and options in connection with acquisition 12,874   12,874    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   6,078,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (59,629)   (59,629)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 569,003 569,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 6,643   6,643    
Repurchase and retirement of common stock (in shares)   (985,000)      
Repurchase and retirement of common stock (15,535)   (15,535)    
Stock-based compensation 216,169   216,169    
Other comprehensive income 416     416  
Net income (loss) (95,368)       (95,368)
Ending balance (in shares) at Dec. 31, 2024   303,382,000      
Ending balance at Dec. 31, 2024 $ 1,137,921 $ 3 4,874,133 (338) (3,735,877)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares) 227,000 227,000      
Issuance of common stock upon exercise of stock options $ 74   74    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   6,148,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (56,492)   (56,492)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 566,042 566,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 6,228   6,228    
Repurchase and retirement of common stock (in shares)   (26,896,000)      
Repurchase and retirement of common stock (387,426)   (387,426)    
Stock-based compensation 149,875   149,875    
Other comprehensive income (1,253)     (1,253)  
Net income (loss) 183,723       183,723
Ending balance (in shares) at Dec. 31, 2025   283,427,000      
Ending balance at Dec. 31, 2025 $ 1,032,650 $ 3 $ 4,586,392 $ (1,591) $ (3,552,154)
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows from Operating Activities:      
Net income (loss) $ 183,723 $ (95,368) $ (137,436)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 25,857 19,415 12,144
Amortization of deferred contract acquisition costs 31,702 28,556 23,965
Non-cash lease expense 9,700 8,842 7,736
Stock-based compensation 146,819 216,706 210,707
Discount amortization on marketable securities (6,557) (15,992) (15,652)
Gain on sale of non-marketable equity investments (1,837) 0 0
Release of valuation allowance (151,738) 0 0
Deferred income taxes 2,637 (12,642) (1,322)
Other 779 1,397 119
Changes in operating assets and liabilities:      
Accounts receivable (28,059) (17,145) (26,982)
Deferred contract acquisition costs (40,071) (34,524) (26,962)
Prepaid expenses and other assets (11,868) (1,393) (7,411)
Accounts payable 9,573 (2,204) (2,423)
Accrued and other liabilities 19,078 14,454 1,839
Deferred revenue 61,179 54,808 60,773
Operating lease liabilities (8,547) (4,264) (12,917)
Net cash provided by operating activities 242,370 160,646 86,178
Cash Flows from Investing Activities:      
Purchases of property and equipment (5,700) (9,177) (2,069)
Proceeds from sale of property and equipment 149 279 110
Capitalized internal-use software (15,791) (5,485) (6,271)
Purchases of marketable securities (586,833) (620,573) (842,803)
Sale of non-marketable equity investments 1,984 0 0
Maturities and redemptions of marketable securities 830,756 887,664 1,009,532
Advances paid for business combination (Note 16) (18,432) 0 0
Business combination, net of cash acquired 0 (213,905) 0
Net cash provided by investing activities 206,133 38,803 158,499
Cash Flows from Financing Activities:      
Proceeds from issuance of common stock under employee stock purchase plan, net 6,228 6,643 7,271
Proceeds from exercise of stock options 74 89 88
Payment of withholding taxes on net share settlement of equity awards (56,654) (60,299) (67,978)
Repurchase of common stock (386,306) (13,693) 0
Net cash used in financing activities (436,658) (67,260) (60,619)
Net increase in cash, cash equivalents and restricted cash 11,845 132,189 184,058
Cash, cash equivalents and restricted cash, beginning of period 620,405 488,216 304,158
Cash, cash equivalents and restricted cash, end of period 632,250 620,405 488,216
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets:      
Cash and cash equivalents 569,774 620,315 488,121
Restricted cash, current 62,374 3 0
Restricted cash included in other assets 102 87 95
Total cash, cash equivalents and restricted cash 632,250 620,405 488,216
Supplemental cash flow information:      
Cash paid for taxes 14,384 11,949 12,034
Non-cash investing and financing activities:      
Operating lease right-of-use assets obtained in exchange for operating lease obligations 12,755 13,275 7,461
Stock-based compensation capitalized as internal-use software 3,199 1,358 1,758
Issuance of common stock and options in connection with acquisition 0 12,874 0
Excise tax liability accrued for common stock repurchased 2,961 0 0
Payables related to unsettled common stock repurchases $ 0 $ 1,840 $ 0
v3.25.4
Description of Business
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
1. Description of Business
Freshworks Inc. is a software development company that provides software-as-a-service (SaaS) products that provide people-first, AI service software that organizations use to deliver exceptional employee and customer experiences. We are headquartered in San Mateo, California, and have subsidiaries located in the United States, India, Australia, the United Kingdom, Ireland, Germany, France, the Netherlands, and Singapore.
In June 2024, we acquired all outstanding shares of D42 Parent, Inc., an IT asset management company, for approximately $238.1 million. See Note 6—Business Combination.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of Freshworks and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Remeasurement and Transactions
The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurred, except for those expenses related to non-monetary assets and liabilities which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in interest and other income, net in the consolidated statements of operations, and have not been material for the years ended December 31, 2025, 2024, and 2023.
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:
•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;
•allowance for doubtful accounts;
•benefit period of deferred contract acquisition costs;
•capitalization of internal-use software development costs;
•fair value of goodwill;
•useful lives of long-lived assets, including intangible assets;
•valuation of deferred tax assets;
•valuation of employee defined benefit plan and other compensation liabilities;
•fair value of share-based awards; and
•incremental borrowing rate used for operating leases.
Revenue Recognition
We derive revenue from subscription fees, related professional services, and following the acquisition of D42 Parent, Inc. in June 2024, software licenses.
Subscription Revenue
We sell subscriptions for our cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. We record revenue net of sales or value-added taxes.
We sell subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which we would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and we lack visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller discounts.
Subscription revenue is primarily comprised of fees paid by our customers for accessing our cloud-based software during the term of the arrangement. Cloud-based services allow customers to use our multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers.
Professional Service Revenue
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.
Software License Revenue
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. Software license revenue consists of term licenses and is recognized upfront, upon making the software available to the customer. The associated software maintenance revenue is generally recognized ratably over the contract term as support and updates are provided to the customers over the term of the arrangement.
Customers with Multiple Performance Obligations
Some of our contracts with customers contain both subscriptions and professional services, and software licenses. For these contracts, we account for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative standalone selling price (SSP). We determine SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP.
Cost of Revenue
Cost of revenue consists mainly of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for employees associated with our cloud-based infrastructure, payment gateway fees, voice, product support, and professional service organizations, as well as costs incurred by us for third-party hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired intangibles, amortization of capitalized internal-use software, and allocation of general overhead expenses such as facilities and information technology.
Research and Development
Research and development costs are expensed as incurred and consist primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for our product development employees. Research and development expenses also include non-personnel-related expenses such as third-party services for product development and consulting expenses, depreciation expense related to equipment used in research and development activities, and allocation of our general overhead expenses.
Advertising Costs
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred. We recognized $41.3 million, $41.4 million, and $41.2 million of advertising costs for the years ended December 31, 2025, 2024, and 2023, respectively.
Stock-Based Compensation
We issue stock options and restricted stock units (RSUs) to employees, consultants and directors under our 2021 Equity Incentive Plan (2021 Plan) and stock purchase rights granted under the 2021 Employee Stock Purchase Plan (ESPP) to employees based on the estimated fair value on the date of the grant. Stock-based compensation expense related to stock options and RSUs under the 2021 Plan and stock purchase rights under the ESPP is recognized in the consolidated statements of operations on a straight-line basis over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.
The fair value of RSUs is based on the closing market price of our Class A common stock on the date of the grant. Prior to the Initial Public Offering (IPO) in 2021, we determined the fair value of the common stock underlying stock options and RSUs by considering numerous objective and subjective factors including, but not limited to: (i) independent third-party valuations, (ii) the prices, rights, preferences, and privileges of our redeemable convertible preferred stock relative to its common stock, (iii) the lack of marketability of the common stock, (iv) current business conditions and financial projections, and (iv) the likelihood of achieving an IPO or sale event. Subsequent to the IPO, the fair values of stock options and the stock purchase rights under the ESPP are estimated using the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. These assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. The main assumptions used in the Black-Scholes option-pricing model include:
Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method which represents the average of the contractual term of the option and the weighted-average vesting period of the option. We consider this appropriate as there is not sufficient historical information available to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees.
Stock price volatility—For the stock price volatility over the expected term where our common stock has sufficient trading history, we generally estimate the stock price volatility using the historical volatility of our own stock. If our common stock lacks sufficient trading history, the stock price volatility over the expected term is estimated based on the historical volatility of comparable companies with similar characteristics to those of ours.
Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.
Dividend yield—Because we have never paid and have no intention to pay cash dividends on our common stock, the dividend yield is zero.
For the performance-based award granted to the then CEO, subsequently Executive Chairman and now former Executive Chairman, with both a service-based vesting condition and a market condition (2021 Executive Chairman Performance Award as discussed further in Note 12 —Stockholders' Equity and Stock-Based Compensation), we determined the fair value of the award by using the Monte Carlo simulation model. The main assumptions used in the Monte Carlo simulation model include stock price volatility, risk-free interest rate, dividend yield and the measurement period, which is the period over which our simulated stock prices are used to evaluate the possibility of achieving the specified stock price targets. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method.
In March 2025 and February 2024, the Board approved performance awards (PRSUs) to be granted to certain members of the executive team subject to service and performance-based vesting conditions (referred to as Executive PRSUs in Note 12—Stockholders' Equity and Stock-Based Compensation). The performance-based vesting conditions include revenue and free cash flow targets. The fair value of each Executive PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on Freshworks' periodic assessment of the probability that the performance will be achieved. If
the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
We recognized the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
We recognize interest and penalties related to income tax matters as a component of income tax expense.
Cash and Cash Equivalents
Cash and cash equivalents consist of deposits held at financial institutions, money market funds, as well as highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are recorded at cost, which approximates fair value.
Restricted Cash
Restricted cash consists of cash balances that are legally or contractually restricted as to withdrawal or use. Such restrictions primarily relate to cash held as collateral under certain contractual arrangements, amounts restricted for the settlement of specific obligations, or cash held in escrow. Restricted cash is recorded at cost, which approximates fair value.
Marketable Securities
Marketable securities consist primarily of debt securities such as corporate bonds, commercial paper, U.S. treasury securities, U.S. government agency securities and certificates of deposit. These securities are classified as available-for-sale securities at the time of purchase as they represent funds readily available for current operations, and we have the ability and intent to liquidate them at any time to meet our operating cash needs, if necessary. All available-for-sale debt securities are recorded at their estimated fair value, with changes in fair value recognized as unrealized gains or losses in accumulated other comprehensive income. For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. Expected credit losses are recorded in interest and other income, net, on the consolidated statements of income, and any remaining unrealized losses are recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income, net in the consolidated statements of operations. There were no credit losses or impairment on available-for-sale debt securities recognized for the years ended December 31, 2025, 2024, and 2023.
Accounts Receivable and Allowance for Credit Losses
Trade accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based on our assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. We regularly review the adequacy of the allowance by considering the age of each outstanding invoice and the collection history.
Concentrations of Risk
Financial instruments that potentially expose us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, we have cash and cash equivalents held in international bank accounts, which are denominated primarily in euros, British pounds, and Indian rupees.
There were no customers that individually exceeded 10% of our revenue for the years ended December 31, 2025, 2024, and 2023, or that represented 10% or more of our consolidated accounts receivable balance as of December 31, 2025 and 2024.
We primarily rely upon third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact our operations and our business could be adversely impacted.
Derivative Instruments
We enter into foreign currency forward contracts, all of which were designated as cash flow hedges, in order to manage the volatility of cash flows that relate to cost of revenues and operating expenses denominated in Indian rupee. All derivative instruments are measured at fair value based upon quoted market prices for comparable instruments and as such, classified within Level 2 of the fair value hierarchy. Derivative assets and liabilities are presented on a gross basis on the consolidated balance sheets under prepaid expenses and other current assets and accrued liabilities, respectively.
Gains or losses related to cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI) on the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within interest and other income. Changes in the fair value of currency forward exchange contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. A majority of the balance related to foreign exchange derivative instruments included in AOCI at December 31, 2025 is expected to be reclassified into earnings within 12 months.
Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.
We do not use derivative financial instruments for trading or speculative purposes.
Entering into derivative instruments exposes us to credit risk to the extent that the counterparties are unable to meet the terms of the contract. We mitigate this credit risk by transacting with major financial institutions with high credit ratings. In addition, we have entered into master netting arrangements that mitigate credit risk by permitting net settlement of transactions. As such, our exposure is not considered significant. We do not have any collateral requirements with counterparties.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs that are associated with acquiring customer contracts and consist primarily of sales commissions and the associated payroll taxes and certain referral fees paid to third-party resellers. The costs incurred upon the execution of initial and expansion contracts are primarily deferred and amortized over an estimated benefit period of three years. The estimated benefit period is determined by taking into consideration our contracts with customers, technology life cycle and other factors. We consider the estimated benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of operations. There was no impairment loss in relation to the incremental selling costs capitalized for the years ended December 31, 2025, 2024, and 2023.
We have elected to apply the practical expedient under Accounting Standards Codification (ASC) No. 340-40—Other Assets and Deferred Costs to account for costs incurred in obtaining a contract with a benefit period of one year or less as commission expenses. Deferred contract acquisition costs are included in sales and marketing expense in our consolidated statements of operations.
Property and Equipment, net
Property and equipment, net, including capitalized internally-developed software, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
Capitalized Internal-Use Software
We capitalize costs incurred in our software development projects and implementation of certain enterprise cloud computing services during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the development project is available for general release, capitalization ceases, and we estimate the useful life of the asset and begin amortization. Internal-use software and cloud computing services are amortized on a straight-line basis over its estimated useful life, within cost of revenue in the consolidated statements of operations.
Long-Lived Assets (Including Goodwill)
Long-lived assets with finite lives include property and equipment, capitalized internal-use software and right-of-use (ROU) assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group. We did not recognize any impairment of long-lived assets during the years ended December 31, 2025, 2024, and 2023.
Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. We elected to bypass the qualitative assessment, and performed a quantitative goodwill impairment test. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge in the amount of such excess is recorded to goodwill, limited to the amount of goodwill. We did not recognize any impairment of goodwill during the years ended December 31, 2025, 2024, and 2023.
Deferred Revenue
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. Customers are invoiced for subscription service arrangements in advance for monthly, quarterly, semi-annual and annual subscription plans. Our payment terms generally provide that customers pay the invoiced portion of the total arrangement fee either in advance or within 30 days from the invoice date.
Net Income (Loss) per Share
Basic and diluted net income (loss) per share is computed by dividing the net income (loss) by the number of weighted-average shares of common stock outstanding during the reporting period. Diluted net income (loss) per share adjusts basic net income (loss) per share for the potentially dilutive impact of outstanding stock options, RSUs, PRSUs, and stock purchases rights granted under the ESPP. The dilutive potential shares are computed using the treasury stock method. In periods when we report net losses, all potentially dilutive securities are considered antidilutive, and accordingly, diluted net loss per share is the same as basic net loss per share.
Defined Benefit Plan
Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of
employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements.
Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, we use a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of our obligations.
Because the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because we have deemed them immaterial to our consolidated financial statements. The benefit plans had a plan benefit obligation of $13.0 million and $11.4 million as of December 31, 2025 and 2024, respectively. The long-term portion for the amount of $10.9 million and $9.6 million is included in other liabilities in the consolidated balance sheets as of December 31, 2025 and 2024, respectively. The current portion for the amount of $2.1 million and $1.8 million is included in accrued expenses in the consolidated balance sheets as of December 31, 2025 and 2024, respectively.
Leases
We lease office space under operating leases with expiration dates through 2032. We determine whether an arrangement constitutes a lease and records lease liabilities and ROU assets on our consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or our incremental borrowing rate (the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease), whichever is more readily determinable. The incremental borrowing rate is based on an estimate of our expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. Lease liabilities due within 12 months are included within accrued liabilities on our consolidated balance sheets. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to us. We do not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.
Restructuring Charges
Costs associated with our restructuring plan primarily consist of severance payments, benefits continuation, and other employee separation costs. In general, we record involuntary employee-related exit costs when we communicate to employees that they are entitled to receive such benefits and the amount can be reasonably estimated. Related costs are included in restructuring charges in the consolidated statements of operations. The remaining restructuring liability is included in accrued liabilities in the consolidated balance sheet.
Recent Accounting Pronouncements
Accounting Standards Recently Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance was adopted on January 1, 2025 prospectively for our annual disclosures starting 2025. This guidance is only related to disclosures and did not have a significant impact on our consolidated financial statements. See Note 14—Income Taxes.
Accounting Standards Not Yet Adopted
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This authoritative guidance is effective for us starting in our annual disclosures for 2027 and interim periods starting 2028. Early adoption is permitted. The amendments may be applied either (1) prospectively to
financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets under Accounting Standards Codification 606, Revenue from Contracts with Customers. The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This guidance is effective for us starting in our annual disclosures for 2026. Early adoption is permitted. We do not expect this guidance to have a material impact on our consolidated financial statements.
In September 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025‑06 updates guidance on accounting for software costs by aligning capitalization with when management commits to funding a project and completion is probable. Additionally, the ASU introduces new disclosure requirements, including significant judgments made in applying the guidance and the nature and amount of capitalized software costs. This guidance is effective for us starting in our annual and interim disclosures for periods starting January 1, 2028. Early adoption is permitted. We are currently assessing the impact of this update on our consolidated financial statements, including which transition method to apply.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies that the interim reporting requirements in Topic 270 apply to all entities that issue interim financial statements prepared in accordance with U.S. GAAP and consolidates such requirements within Topic 270. The amendments provide a comprehensive list within Topic 270 of required interim disclosures, establish a principle requiring disclosure of events or changes occurring after the end of the most recent annual reporting period that have a material impact on interim results. and clarifies the form and content requirements applicable to interim financial statements. ASU 2025-11 will be effective for our interim periods starting January 1, 2028, with early adoption permitted. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
v3.25.4
Cash Equivalents and Investments
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Investments
3. Cash Equivalents and Investments
Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$120,923 $— $— $120,923 
U.S. treasury securities
100,235 16 — 100,251 
U.S. government agency securities
26,168 3 (1)26,170 
Commercial paper
47,466 — — 47,466 
Fixed deposits
129,875 — — 129,875 
Total cash equivalents424,667 19 (1)424,685 
Debt securities:
U.S. treasury securities131,286 102 (9)131,379 
U.S. government agency securities30,868 40 — 30,908 
Corporate debt securities36,878 69 (6)36,941 
Commercial paper
12,369 — — 12,369 
Total debt securities211,401 211 (15)211,597 
Total cash equivalents and debt securities$636,068 $230 $(16)$636,282 
December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$507,655 $— $— $507,655 
Total cash equivalents507,655 — — 507,655 
Debt securities:
U.S. treasury securities215,773 612 (17)216,368 
U.S. government agency securities144,474 321 (12)144,783 
Corporate debt securities45,682 101 (21)45,762 
Commercial paper
16,388 — — 16,388 
Certificates of deposit
26,449 — — 26,449 
Total debt securities448,766 1,034 (50)449,750 
Total cash equivalents and debt securities$956,421 $1,034 $(50)$957,405 
The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$21,500 $(9)$— $— $21,500 $(9)
Corporate debt securities7,495 (6)— — 7,495 (6)
Total$28,995 $(15)$— $— $28,995 $(15)
December 31, 2024
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$13,819 $(16)$4,993 $(1)$18,812 $(17)
U.S. government agency securities8,197 (7)9,995 (5)18,192 (12)
Corporate debt securities7,998 (19)5,982 (2)13,980 (21)
Total$30,014 $(42)$20,970 $(8)$50,984 $(50)
The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):
December 31, 2025
Amortized CostFair Value
Due within one year$182,634 $182,772 
Due after one year but within five years28,767 28,825 
Total$211,401 $211,597 
Accrued interest receivable of $1.5 million and $3.3 million was classified in prepaid expenses and other current assets in the consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively.
Non-Marketable Equity Securities
Non-marketable equity securities represent our interests in privately held entities which have no readily determinable fair values. We carry these investments at cost, less impairment, and report them under other assets in the consolidated balance sheets. In July 2025, we sold our interest in a privately held entity for $2.2 million which resulted in a gain of $1.8 million. The gain was recorded within Interest and other income, net in the consolidated statements of operations.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4. Fair Value Measurements
We measure our financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.
Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
Level 3—Inputs that are unobservable.
Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
We did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of December 31, 2025 and 2024.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$120,923 $— $120,923 
U.S. treasury securities
100,251 — 100,251 
U.S. government agency securities
— 26,170 26,170 
Commercial paper
— 47,466 47,466 
Fixed deposits
— 129,875 129,875 
Marketable securities:
U.S. treasury securities131,379 — 131,379 
U.S. government agency securities— 30,908 30,908 
Corporate debt securities— 36,941 36,941 
Commercial paper
— 12,369 12,369 
Total financial assets$352,553 $283,729 $636,282 
December 31, 2024
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$507,655 $— $507,655 
Marketable securities:
U.S. treasury securities216,368 — 216,368 
U.S. government agency securities— 144,783 144,783 
Corporate debt securities— 45,762 45,762 
Commercial paper
— 16,388 16,388 
Certificates of deposit
— 26,449 26,449 
Total financial assets$724,023 $233,382 $957,405 
The fair value of derivative assets and liabilities as of December 31, 2025 and 2024, and all related unrealized and realized gains and losses during the year ended December 31, 2025 and 2024, were not material. As of December 31, 2025 and 2024, the total notional amount of outstanding designated foreign currency forward contacts were $86.7 million and $50.5 million, respectively.
v3.25.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
5. Balance Sheet Components
Property and Equipment, net
The following table summarizes property and equipment, net as of December 31, 2025 and 2024 (in thousands):
December 31,
20252024
Computers$18,835 $19,694 
Capitalized internal-use software53,245 34,255 
Office equipment7,887 6,700 
Furniture and fixtures9,518 10,066 
Motor vehicles267 400 
Leasehold improvements8,994 7,847 
Construction in progress269 13 
Total property and equipment99,015 78,975 
Less: accumulated depreciation and amortization(60,172)(53,082)
Property and equipment, net$38,843 $25,893 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
2025
2024
2023
Capitalization of costs associated with internal-use software$18,990 $6,843 $8,029 
Amortization expense of capitalized internal-use software7,410 5,631 5,106 
Depreciation expense4,593 5,623 6,735 
As of December 31, 2025 and 2024, the net carrying value of capitalized internal-use software was $26.1 million and $14.5 million, respectively.
Accrued and Other Liabilities
The following table summarizes accrued liabilities as of December 31, 2025 and 2024 (in thousands):
December 31,
20252024
Accrued compensation$28,233 $28,269 
Accrued third-party cloud infrastructure expenses
5,922 — 
Accrued reseller commissions11,512 11,569 
Accrued advertising and marketing expenses7,835 4,414 
Advanced payments from customers6,097 4,487 
Accrued taxes14,499 14,747 
Operating lease liabilities, current9,221 8,073 
Contributions withheld for employee stock purchase plan1,198 1,127 
Unsettled share repurchases
— 1,840 
Other accrued expenses13,114 7,407 
Total accrued liabilities$97,631 $81,933 
Other liabilities include $21.1 million of long term accrued compensation each as of December 31, 2025 and 2024.
v3.25.4
Business Combination
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Business Combination
6. Business Combination
In June 2024, we acquired all outstanding shares of D42 Parent, Inc., an IT asset management company. Through the combination, we are able to offer a more comprehensive IT solution for customers. The total purchase price consideration is $238.1 million, which consists of $225.3 million in cash paid, including $11.4 million of cash acquired, $8.9 million in common stock issued, and $3.9 million in assumed and converted stock option awards.
As part of the business combination, we assumed certain unvested, in-the-money options held by D42 Parent, Inc.'s founder, which were converted into 511,770 replacement stock option awards issued pursuant to our 2021 Equity Incentive Plan. These awards have a fair value of $5.7 million and will vest two years from the closing date subject to continued employment. The portion of the fair value of the assumed and converted awards related to pre-combination vesting was $3.9 million and is included as consideration discussed above, and the remaining $1.8 million is post-combination expense that will be recognized as compensation expense over the remaining service period. Refer to Note 12—Stockholders' Equity and Stock-Based Compensation.
Transaction costs associated with the acquisition were approximately $2.1 million for the year ended December 31, 2024 and were recorded in general and administrative expense.
As of June 30, 2025, we finalized the purchase price allocation, including the valuation pertaining to deferred tax liabilities. An immaterial adjustment was recorded during the measurement period, resulting in a decrease to goodwill and an increase to deferred tax balances. The following table summarizes the final fair value of assets acquired and liabilities assumed from the acquisition, inclusive of measurement period adjustments:
Amount
(in thousands)
Assets acquired:
Cash
$11,432 
Trade accounts and other receivables
8,916 
Prepaid expenses and other current assets
1,792 
Customer relationships
67,600 
Developed technology
30,700 
Trademarks
700 
Goodwill
140,495 
Total
$261,635 
Liabilities assumed:
Accounts payable and other current liabilities
3,510 
Deferred revenue
6,080 
Deferred tax liability
13,940 
Total
23,530 
Total purchase price consideration
$238,105 
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill. The goodwill recognized is not deductible for U.S. income tax purposes. We expect to derive value from the combination of D42 Parent, Inc.’s existing customer base, IT asset management technology, and trademarks, as well as through other synergies. The deferred tax liability was primarily driven by the fair value of intangible assets. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the acquisition date.
The customer relationships, developed technology, and trademarks are amortized on a straight-line basis over their estimated useful lives of 8 years, 6 years, and 1 year, respectively. We used the income approach to estimate the fair value of intangible assets acquired.
We have included the operating results of D42 Parent, Inc. in our consolidated financial statements since the date of the acquisition. The revenue and net loss of D42 Parent, Inc. included in the consolidated statement of operations from the date of acquisition to December 31, 2024 were not material.
The following unaudited supplemental pro forma financial information is provided for informational purposes only and summarizes our combined results of operations as if the acquisition had occurred on January 1, 2023 (in thousands):
Year Ended December 31,
20242023
Revenue
$735,591 $631,608 
Net loss
(99,999)(151,546)
The unaudited supplemental pro forma results reflect certain adjustments for the amortization of acquired intangible assets, recognition of stock-based compensation, and acquisition-related transaction expenses. Such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the date indicated, nor are they indicative of our future operating results.
v3.25.4
Intangible Assets, Net
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net
7. Intangible Assets, Net
Acquired intangible assets consist of developed technology, customer relationships, and trademarks and are amortized on a straight-line basis over their estimated useful lives. The following tables summarize acquired intangible assets as of December 31, 2025 and 2024 (amounts in thousands):
December 31, 2025
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(18,535)$22,661 4.4
Customer relationships69,200 (14,875)54,325 6.4
Trademarks
$700 $(700)$— — 
Total$111,096 $(34,110)$76,986 
December 31, 2024
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(13,423)$27,773 5.4
Customer relationships69,200 (6,433)62,767 7.4
Trademarks
$700 $(400)$300 0.4
Total$111,096 $(20,256)$90,840 
Total amortization of acquired intangible assets for the years ended December 31, 2025, 2024, and 2023 is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$5,113 $2,927 $158 
Sales and marketing8,741 5,233 145 
Total amortization expense$13,854 $8,160 $303 
As of December 31, 2025, expected future amortization expense related to acquired intangible assets is as follows (in thousands):
Year Ending December 31,
2026$13,553 
202713,553 
202813,591 
202913,553 
203010,640 
Thereafter
12,096 
Total future amortization
$76,986 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
8. Leases
We have operating leases primarily for office space. The leases have remaining lease terms of 1 to 8 years, some of which include options to extend the lease for up to 6 years. Our leases do not contain any residual value guarantee.
The following table presents various components of the lease costs (in thousands):
Year Ended December 31,
Operating Leases
2025
2024
Operating lease cost$13,112 $12,093 
Short-term lease cost492 489 
Variable lease cost4,802 3,842 
Total lease cost
$18,406 $16,424 
The weighted-average remaining term of our operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
December 31,
Lease Term and Discount Rate
2025
2024
Weighted-average remaining lease term (in years)3.94.3
Weighted-average discount rate8.3 %9.0 %
The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):
Year Ended December 31,
Supplemental Cash Flow Information:20252024
Cash payments included in the measurement of operating lease liabilities$11,527 $6,808 
Maturities of the operating lease liabilities are as follows (in thousands):
Year Ending December 31:Operating Leases
2026$12,307 
202713,489 
202812,152 
20296,136 
20303,580 
Thereafter2,579 
Total lease payments50,243 
Less: imputed interest(7,740)
Present value of operating lease liabilities$42,503 
As of December 31, 2025, there were $6.4 million of future payments related to signed leases that have not yet commenced.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
9. Commitments and Contingencies
Contractual Commitments
Our contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription purchase arrangements used to support operations at the enterprise level. Future minimum payments under our non-cancelable purchase commitments as of December 31, 2025 are presented in the table below (in thousands):
Year ending December 31,Contractual Commitments
2026$95,447 
202791,498 
202868,723 
Total$255,668 
Litigation and Loss Contingencies
On November 1, 2022, a purported Company stockholder filed a securities class action complaint in the U.S. District Court for the Northern District of California against us, certain of our current officers and directors, and underwriters of our initial public offering (IPO). On February 8, 2023, the court-appointed lead plaintiff and lead counsel. On April 14, 2023, lead plaintiff filed an amended complaint. The amended complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by making material misstatements or omissions in offering documents filed in connection with our IPO. The amended complaint seeks unspecified damages, interest, fees, costs, and rescission on behalf of purchasers and/or acquirers of common stock issued in our IPO. On September 28, 2023, the court issued an order granting in part and denying in part defendants' motion to dismiss. On January 16, 2025, we filed a motion for summary judgment, which the court granted and entered judgment in our and the other defendants’ favor on April 10, 2025. Plaintiff has appealed the judgment, and we continue to vigorously defend against the claims in this action.
On March 20, 2023, a purported stockholder derivative complaint was filed in the U.S. District Court for the Northern District of California. The complaint names as defendants our current directors, as well as Freshworks, as nominal defendant, and asserts state and federal claims based on some of the same alleged misstatements as the securities class action complaint. The derivative complaint seeks unspecified damages, attorneys’ fees, and other costs. On June 21, 2023, the court stayed the case in light of the pending securities class action. On October 16, 2023, the court extended the stay of the case in light of the pending securities class action. We and the other defendants continue to vigorously defend against the claims in this action.
From time to time, we have been and may be in the future subject to other legal proceedings, claims, investigations, and government inquiries (collectively, legal proceedings) in the ordinary course of business. We have received and may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that we believe will have a material adverse impact on our business or condensed consolidated financial statements.
Indemnifications
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if we have violated applicable laws, if we are negligent or commit acts of willful misconduct, and other liabilities with respect to our products and services and our business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. We also indemnify certain of our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our consolidated financial statements.
v3.25.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
10. Revenue From Contracts with Customers
We primarily derive revenue from subscription fees and related professional services, as well as through sale of software licenses with associated maintenance and professional services.
We sell subscriptions and software licenses directly to customers and indirectly through channel partners with arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements.
Subscription revenue is recognized ratably over the contract term when the cloud-based software is made available to customers.
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. For software licenses sold with maintenance and professional services, revenue from the software license is recognized when the software is made available to the customer and maintenance revenue is recognized as support and updates are provided, which is generally ratably over the contract term.
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.
We record revenue net of sales or value-added taxes.
Disaggregation of Revenue
The following table summarizes revenue by our service offerings (in thousands):
Year Ended December 31,
202520242023
Subscription services, software licenses and maintenance
$829,403 $710,744 $582,868 
Professional services9,406 9,676 13,564 
Total revenue$838,809 $720,420 $596,432 
See Note 11—Segment and Geographic Information for revenue by geographic location.
Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations
Unbilled receivables primarily represent revenue recognized in excess of billings from non-cancellable multi-year contract arrangements. As of December 31, 2025 and 2024, we had $9.8 million and $6.3 million of unbilled receivables, respectively. Unbilled receivables are included within accounts receivable, net on the consolidated balance sheets.
The aggregate balance of remaining performance obligations as of December 31, 2025 was $644.4 million. We expect to recognize $464.4 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods.
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of the year (2)
$327,288 $266,399 $205,626 
Add: Billings during the year (1)
899,988 781,309 657,205 
Less: Revenue recognized during the year(838,809)(720,420)(596,432)
Balance at end of the year (2)
$388,467 $327,288 $266,399 
(1) Includes deferred revenue and unbilled receivables acquired as part of D42 Parent, Inc. acquisition and changes in unbilled receivable.
(2) As of December 31, 2025 and 2024, non-current deferred revenue of $3.1 million and $3.9 million was included in Other Liabilities in the consolidated balance sheets, respectively.

Revenue recognized during the years ended December 31, 2025, 2024, and 2023 from amounts included in deferred revenue at the beginning of these periods was $323.5 million, $265.4 million, and $204.8 million, respectively.
Deferred Contract Acquisition Costs
The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of the year$48,640 $42,672 $39,675 
Add: Contract costs capitalized during the year40,071 34,524 26,962 
Less: Amortization of contract costs during the year(31,702)(28,556)(23,965)
Balance at end of the year$57,009 $48,640 $42,672 
v3.25.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
11. Segment and Geographic Information
We operate in a single operating segment composed of the consolidated financial results of Freshworks. Our Chief Executive Officer (CEO) is the chief operating decision maker (CODM) of Freshworks and the key measures of segment profit or loss that our CODM uses to allocate resources and assess performance is our revenue and consolidated net income (loss). Significant segment expenses reviewed by our CODM for our single operating segment comprise of stock-based compensation, amortization of acquired intangible assets, and other segment expenses. Other segment expenses utilize operating expenses recognized as research and development, selling and marketing and general and administrative expenses within our consolidated statement of operations less stock-based compensation and amortization of acquired intangible assets, and primarily related to personnel-related costs. Refer to Note 12—Stockholders' Equity and Stock-Based Compensation and Note 7—Intangible Assets, Net for information regarding amounts pertaining to stock-based compensation and amortization of acquired intangibles.
Revenue by geographic location is determined based on the customers' billing address. The following table summarizes revenue by geographic region (in thousands):
Year Ended December 31,
2025
2024
2023
North America$390,795 $329,934 $266,331 
Europe, Middle East and Africa324,618 277,851 229,983 
Asia Pacific100,183 91,442 83,109 
Other23,213 21,193 17,009 
Total revenue$838,809 $720,420 $596,432 
Revenue from North America primarily includes revenue from the United States. For the years ended December 31, 2025, 2024 and 2023, revenue generated from the United States was $354.3 million, $294.5 million and $235.3 million, or 42%, 41% and 39% of total consolidated revenue, respectively. The United Kingdom, categorized within Europe, Middle East and Africa in the table above, contributed $113.5 million, $94.1 million and $75.1 million or 14%, 13% and 13% of total consolidated revenue for the years ended December 31, 2025, 2024 and 2023, respectively.
Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):
December 31,
2025
2024
North America$39,747 $20,052 
Europe, Middle East and Africa6,383 8,391 
Asia Pacific32,606 34,341 
Total long-lived assets$78,736 $62,784 
Long-lived assets in North America are primarily located in the United States, and long-lived assets in Asia Pacific are primarily located in India.
v3.25.4
Stockholders' Equity and Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity and Stock-Based Compensation
12. Stockholders' Equity and Stock-Based Compensation
Common Stock
We have two classes of common stock: Class A common stock and Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock are referred to as common stock throughout these notes to the consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.
Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (1) sale or transfer of such share of Class B common stock, except for certain permitted transfers as described in our amended and restated certificate of incorporation; (2) the death of such Class B common stockholder (or nine months after the date of death if the stockholder is our founder); and (3) on the final conversion date, defined as the earlier of (a) the last trading day of the fiscal year following the seventh anniversary of our IPO; or (b) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class.
Share Repurchase
In November 2024, our board of directors (the Board) approved the share repurchase program, which authorized the repurchase of up to $400 million of our outstanding Class A common stock. During the year ended December 31, 2025 we repurchased a total of 26,895,424 shares of Class A common stock under this program in open market transactions for an aggregate purchase price of $384.5 million, resulting in an average price of $14.29 per share. During the year ended December 31, 2024, we repurchased a total of 985,234 shares for an aggregate price of $15.5 million and average price of $15.77 per share. The program was completed in August 2025. Under the repurchase program, we repurchased shares in the open market, through privately negotiated transactions and/or other means in compliance with the Exchange Act and the rules and regulations thereunder. These repurchases were executed in accordance with Rule 10b-18 under the Exchange Act and, where applicable, Rule 10b5-1 trading plans.
All shares of Class A common stock subsequently repurchased were retired. Upon retirement, the par value of the common stock repurchased was deducted from common stock and any excess of repurchase price over par value was recorded to additional-paid-in capital.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) is comprised of two components — unrealized gains or losses on available-for-sale debt securities and net changes in cash flow hedges.
The following tables shows the changes in the components of accumulated other comprehensive (loss) income (in thousands):
Year Ended December 31,
202520242023
Beginning balance$(338)$(754)$(7,431)
Unrealized gains (losses) on available-for-sale debt securities
(592)1,310 7,105 
Net change on cash flow hedging
(661)(894)(428)
Net impact to other comprehensive (loss) income in current period
(1,253)416 6,677 
Ending balance$(1,591)$(338)$(754)
Equity Compensation Plans
In August 2021, the Board adopted the 2021 Plan and the ESPP. Pursuant to the 2021 Plan, the Board may grant incentive stock options to purchase shares of our common stock, non-statutory stock options to purchase shares of our common stock, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance awards (PRSUs) and other awards. The ESPP enables eligible employees to purchase our Class A common stock. Both the 2021 Plan and ESPP include an automatic increase to their shares reserve on January 1 of each year as set forth in the respective plan documents.
In August 2022, the Compensation Committee of the Board adopted the 2022 Inducement Plan (the Inducement Plan) in accordance with Listing Rule 5635(c)(4) of the Nasdaq Stock Market. Under the Inducement Plan, nonstatutory stock options, stock appreciation rights, restricted stock, RSUs, PRSUs and other awards may be granted as an inducement material for eligible persons to enter into employment with us. Upon adoption, we have initially reserved 10,000,000 shares of Class A common stock for issuance under the Inducement Plan.
Shares of common stock reserved for future issuance were as follows (in thousands):
December 31,
2025
2021 Equity Incentive Plan:89,696 
2022 Inducement Plan:6,958 
2021 Employee Stock Purchase Plan15,421 
Total shares of common stock reserved for issuance
112,075 
2021 Employee Stock Purchase Plan
Under the ESPP, the price at which common stock is purchased is equal to 85% of the fair market value of a share of our common stock on the first day of the offering period or the applicable purchase date, whichever is lower. The fair market value of common stock will generally be the closing sales price on the determination date. The ESPP provides an offering period of 24 months, with four purchase periods that are generally six months long and end on May 15 and November 15 of each year. The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
Net shares issued under ESPP(1)
566,042 569,003 627,371 
Weighted average purchase price
$11.10 $11.81 $11.88 
Aggregate net proceeds (in thousands)
$6,228 $6,643 $7,271 
(1)     Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States

The ESPP also includes a reset provision for the purchase price if the fair market value of a share of our common stock on the first day of any purchase period is less than or equal to the fair market value of a share of our common stock on the first day of an ongoing offering. If the reset provision is triggered, a new 24-month offering period begins. Each triggering of the reset provision was considered a modification in accordance with ASC 718, Stock Based Compensation, with the modification charge recognized on a straight-line basis over the new offering period. The modifications did not have a material effect on our stock-based compensation expense during the years ended December 31, 2025, 2024, and 2023.
As of December 31, 2025 and 2024, we have withheld $1.2 million and $1.1 million of contributions from its employees.
During the years ended December 31, 2025, 2024 and 2023, we recognized $3.8 million, $5.3 million and $7.6 million of stock-based compensation expense related to the ESPP, respectively.
Determination of Fair Value of the ESPP
We estimate the fair value of the ESPP using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate and dividend yield.
The fair value of each of the four purchase periods is estimated separately. The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:
Year Ended December 31,
Valuation Assumption Inputs202520242023
Expected term (in years)
0.5 - 2.0
0.5 - 2.0
0.5 - 1.5
Stock price volatility
33.8% - 48.5%
48.3% - 57.2%
47.4% - 77.3%
Risk-free interest rate
3.60% - 4.30%
4.29% - 5.41%
4.47% - 5.38%
Dividend yield—%—%—%
Stock Options
Stock options are generally granted with an exercise price equal to the fair market value of a share of common stock at the date of grant, have a 10-year contractual term, and vest over a four-year period.
Stock option activity during the year ended December 31, 2025 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (1)
Balance as of December 31, 20242,569 $10.30 7.4$15,066 
Stock options exercised(227)$0.33 
Stock options cancelled / forfeited / expired(10)$0.42 
Balance as of December 31, 20252,332 $11.32 7.1$4,650 
Options vested and expected to vest as of December 31, 2025
2,332 $11.32 7.1$4,650 
Options exercisable as of December 31, 2025
1,480 $13.57 6.7$49 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of our common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.

Total intrinsic value of options exercised during the years ended December 31, 2025, 2024, and 2023 was $3.4 million, $5.4 million, and $6.8 million, respectively.
There were no options granted during the years ended December 31, 2025, 2024 and 2023, other than the replacement awards related to the D42 Parent Inc. acquisition in 2024. The weighted-average grant date fair value per share of the assumed and converted stock options related to the D42 Parent, Inc. acquisition was $11.09 for the year ended December 31, 2024, of which approximately $1.8 million was related to post-combination services and will be recognized as stock-based compensation over requisite service period of two years (Note 6).
Determination of Fair Value of Stock Options
We estimate the fair value of stock options using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate, and dividend yield. The following table summarizes the valuation assumptions used in estimating the fair value of stock options assumed and granted for the years presented:
Year Ended December 31,
Valuation Assumption Inputs2024
Expected term (in years)6.0
Stock price volatility65.0%
Risk-free interest rate4.29%
Dividend yield—%
Restricted Stock Units
RSUs are granted at fair market value at the date of the grant and typically vest over a four-year period.
RSU activity, which includes PRSUs, during the year ended December 31, 2025 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Grant Date Fair Value
Unvested, as of December 31, 202421,797 $18.54 
Granted
15,450 $14.93 
Vested (1)
(10,128)$19.69 
Forfeited/Cancelled
(5,183)$20.58 
Unvested, as of December 31, 202521,936 $14.98 
(1)    During the year ended December 31, 2025, total shares that vested were 10.1 million, of which 4.0 million shares were withheld for tax purposes.

The total fair value of vested RSUs during the years ended December 31, 2025, 2024, and 2023 were $199.5 million, $180.0 million, and $175.3 million, respectively.
Performance-Based Awards
Executive Chairman Awards
In September 2021, the Board approved a grant of 6,000,000 PRSUs to our then Chief Executive Officer, subsequently Executive Chairman and now former Executive Chairman, with a time-based service condition beginning January 1, 2022, and a market condition involving five separate stock price targets ranging from $70.00 to $200.00 per share for each of the five vesting tranches (2021 Executive Chairman Performance Award). In February 2024, the Board approved the cancellation of the 2021 Executive Chairman Performance Award and the grant of a 2024 Executive Chairman Award with a fair value of $19.0 million, both effective March 1, 2024.
We accounted for the 2024 Executive Chairman Award as a modification. There were no incremental costs recognized as a result of the modification and the remaining unrecognized stock-based compensation expense from the 2021 Executive Chairman Performance Award of $61.9 million was to be recognized over the vesting period of the new 2024 Executive Chairman Award. The 2024 Executive Chairman Award is comprised of 70% time-based RSUs that vest quarterly over four years and 30% PRSUs with the same terms as the Executive PRSUs discussed below.
As of March 31, 2025, the performance conditions for this award had been met and time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. Effective December 1, 2025, the Executive Chairman and Chairman of the Board, retired from his role in the Company. As a result of the termination, unvested shares of the Executive Chairman Award were forfeited and certain previously recorded compensation expenses related to the Executive Chairman Award were reversed.
For the years ended December 31, 2025, 2024 and 2023, we recognized $(25.8) million, $24.0 million and $28.1 million, respectively, of stock-based compensation expense (benefit) related to the Executive Chairman awards, with 2025 including $38.7 million in forfeitures.
Executive PRSUs
In March 2025 and February 2024, the Board approved the grant of PRSUs to certain members of the executive team (Executive PRSUs), subject to service and performance-based vesting conditions. The performance-based vesting conditions include revenue and free cash flow targets for each respective performance year, from January 1 to December 31, and vest over three years from the grant date. 70% and 30% of each Executive PRSU award will be earned based on our achievement of revenue and free cash flow targets, respectively. As of March 31, 2025, the performance conditions for the Executive PRSUs had been met and time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. The 2025 performance target allows our executives to earn up to a maximum of 173.6% of target performance in the aggregate for significant outperformance.
The fair value of each PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite
service period, based on our periodic assessment of the probability that the performance will be achieved. During the years ended December 31, 2025 and 2024, we recognized $9.3 million and $5.0 million of stock-based compensation expense related to the Executive PRSUs, respectively.
Stock-Based Compensation
Total stock-based compensation expense recorded for the years ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
202520242023
Equity awards:
Cost of revenue$5,833 $6,565 $6,774 
Research and development (1)
34,864 41,512 37,524 
Sales and marketing
48,384 63,219 66,755 
General and administrative (2)
57,738 105,410 99,654 
Stock-based compensation, net of amounts capitalized146,819 216,706 210,707 
Capitalized stock-based compensation3,199 1,358 1,758 
Total stock-based compensation expense$150,018 $218,064 $212,465 
(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.
(2) General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $(5.1) million, $50.4 million and $55.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
December 31, 2025
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense (in years)
RSUs and PSUs$289,786 2.7
Stock options2,880 0.5
ESPP6,257 1.1
Total unrecognized stock-based compensation expense$298,923 
v3.25.4
Restructuring Charges
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Charges
13. Restructuring Charges
In November 2024, the Board approved a restructuring plan as a part of our efforts to align our talent with our strategic priorities and to improve operating efficiency. As a result, during the year ended December 31, 2024, we recorded restructuring charges of $9.7 million in our consolidated statements of operations, which consist of severance costs of $8.1 million and other related-personnel and exit costs of $1.6 million. During the year ended December 31, 2025, we recorded restructuring charges of $0.4 million. The restructuring plan is complete, with no remaining liability as of December 31, 2025.
The following table shows the total amount incurred and accrued related to restructuring charges (in thousands):
Amount
Accrued restructuring costs as of December 31, 2024
$2,350 
Restructuring charges incurred during the period
405 
Amounts paid during the period
(2,221)
Other
(534)
Accrued restructuring costs as of December 31, 2025
$— 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
14. Income Taxes
We adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, prospectively during the year ended December 31, 2025.
Our net income (loss) before provision for income taxes for the years ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
2025
2024
2023
Domestic$12,935 $(130,763)$(165,144)
Foreign40,347 39,926 41,375 
Total$53,282 $(90,837)$(123,769)
The components of the provision for income taxes for the years ended December 31, 2025, 2024, and 2023 were as follows (in thousands):
Year Ended December 31,
2025
2024
2023
Current:
Federal
$4,010 $2,897 $2,589 
State
1,051 484 221 
Foreign13,599 13,792 12,179 
Deferred:
Federal
(131,046)(12,725)— 
State
(17,973)(1,440)— 
Foreign(82)1,523 (1,322)
Total provision for income taxes$(130,441)$4,531 $13,667 
A reconciliation of provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follow:
Year Ended December 31,
2025
Amount
Rate %
U.S Federal statutory tax rate$11,189 21.0 %
United States
State and local income taxes(1)
(14,365)(27.0)
Foreign tax effects
India
Effect of rates different than statutory
1,358 2.5 
Lease accounting
660 1.2 
Other1,066 2.0 
United Kingdom
Other(698)(1.3)
Brazil
Withholding tax563 1.1 
Other foreign jurisdictions2,095 3.9 
Effect of cross-border tax laws
Global intangible low-taxed income, net of credits3,021 5.7 
Foreign-derived intangible income(4,777)(9.0)
Branch taxes
6,640 12.5 
Tax Credits
Foreign tax credits(14,577)(27.4)
Research and development credits(4,562)(8.6)
Changes in valuation allowances
(137,367)(257.8)
Nontaxable or nondeductible items
Stock-based compensation11,020 20.7 
Non-deductible expenses464 0.9 
Foreign exchange loss1,075 2.0 
Other Adjustments320 0.7 
Changes in unrecognized tax benefits6,434 12.1 
Total provision for income taxes$(130,441)(244.8)%
(1) Income taxes in California made up the majority (greater than 50 percent) of the state tax effect.
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year Ended December 31,
2024
2023
Federal income tax
21.0 %21.0 %
Stock-based compensation (23.9)(16.9)
Change in valuation allowance4.3 (6.4)
Foreign tax rate differential(4.9)— 
Earnings from foreign subsidiaries (2.1)(1.8)
Uncertain tax positions(3.2)(2.1)
U.S. taxes on foreign operations3.5 (4.8)
Other items0.3 — 
Total provision for income taxes
(5.0)%(11.0)%
The components of our net deferred tax assets as of December 31, 2025 and 2024, were as follows (in thousands):
December 31,
2025
2024
Deferred tax assets:
Net operating loss carryforwards$21,269 $58,907 
Foreign tax credit carryforwards21,488 8,489 
Capitalized R&E under IRC 174112,700 98,274 
Stock-based compensation6,327 6,705 
Accruals and reserves
24,344 9,965 
Allowance for uncollectible accounts328 412 
Operating lease liability11,605 9,518 
Total deferred tax assets198,061 192,270 
Less: valuation allowance— (151,738)
Deferred tax assets, net of valuation allowance198,061 40,532 
Deferred tax liabilities:
Commissions(7,764)(6,102)
Depreciation and amortization
(14,903)(17,159)
Federal tax effect of non-US branches
(7,119)— 
Operating lease right-of-use assets(10,809)(8,772)
Net deferred tax assets$157,466 $8,499 
We monitor the realizability of our deferred tax assets taking into account all relevant factors at each reporting period. As of December 31,2025, based on the relevant weight of positive and negative evidence, including the implemented tax restructuring, we concluded that it is more likely than not that our U.S. federal and state deferred tax assets are realizable. As such, we released $151.7 million valuation allowance related to U.S. federal and state deferred tax assets during the year ended December 31, 2025. Our valuation allowance decreased by $3.1 million during the year ended December 31, 2024.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, introducing significant changes to the U.S. tax code, including the immediate expensing of U.S. research and development costs, the immediate expensing of certain capital expenditures, and other tax code changes effective beginning in 2026.
Effective January 1, 2025, all non-U.S. earnings are not permanently reinvested.
Net Operating Loss and Credit Carryforwards
As of December 31, 2025, we have U.S. federal net operating loss (NOL) carryforwards of approximately $67.3 million. If not utilized, the federal NOL carryforwards will begin to expire in 2034. For the Federal NOL carryforwards arising in tax years beginning after December 31, 2017, the Tax Cuts Jobs Act of 2017 (TCJA) limits our ability to utilize carryforwards to 80% of taxable income; however, these NOLs may be carried forward indefinitely. We have foreign tax credit of $17.6 million, which will begin to expire in 2028 if not utilized. We also have research and development credits of $4.6 million, which will begin to expire in 2041 if not utilized.
As of December 31, 2025, the NOL carryforwards for all the states in the United States is $112.0 million, of which $110.3 million will begin to expire in 2026, and $1.7 million will be carried forward indefinitely.
Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the expiration of NOL carryforwards before utilization. We continually monitors the impact to net operating losses of any ownership changes.
Income Taxes Paid
The following presents cash paid for income taxes, net of refunds by jurisdiction for the year ended December 31, 2025 (in thousands):
Year Ended December 31,
2025
U.S. Federal
$— 
U.S. State
695 
Foreign
India
11,889 
Other foreign jurisdictions
1,800 
Total cash paid for taxes, net of refunds
$14,384 
For the years ended December 31, 2024 and 2023, cash paid for taxes, net of refunds was $11.9 million and $12.0 million, respectively.
Unrecognized Tax Benefits
We recognize financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount we recorded is the largest benefit that has no likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 31, 2025 and 2024, we had gross unrecognized tax benefits of $13.3 million and $8.1 million, respectively, all of which would affect the effective tax rate.
The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):
Year Ended December 31,
20252024
Unrecognized gross tax benefits at the beginning of the period$8,144 $5,634 
Increases related to prior year tax positions2,612 449 
Decreases related to prior year tax positions(512)— 
Increases in current year unrecognized benefits3,071 2,061 
Unrecognized gross tax benefits at the end of the period$13,315 $8,144 
We recognize interest and penalties related to income tax matters as a component of income tax expense. Accrued interest of $3.2 million and $2.2 million has been recorded as of December 31, 2025 and 2024, respectively.
Our major tax jurisdictions are India and the United States and we also file income tax returns in various U.S. states and foreign jurisdictions. Carryover attributes beginning December 31, 2008, remain open to adjustment by the U.S. federal and state authorities. The U.S. federal, state, and foreign jurisdictions have statutes of limitations that generally range from three to five years. Due to our net losses, substantially all of our U. S. federal and state income tax returns are subject to examination
since inception. We are under examination in India and have appealed our case to the appeals court. As of December 31, 2025, we are waiting the results of the appeal. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. As the outcome of our tax audits are resolved in a manner inconsistent with management's expectations, we could adjust our provision for income taxes in the future.
v3.25.4
Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
15. Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) by the number of weighted-average outstanding shares of common stock. Diluted net income (loss) per share is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. We consider our stock options and RSUs as potential common stock equivalents. In periods when we report net losses, we exclude potential common stock equivalents from the computation of diluted net loss per share, as their effects are antidilutive.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income (loss) per share are the same for both Class A and Class B common stock on both an individual and combined basis.
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):
Year Ended December 31,
2025
2024
2023
Numerator:
Net income (loss)
$
183,723 
$
(95,368)
$
(137,436)
Denominator:
Weighted-average shares used in computing net income (loss) per share - basic
291,079 
300,843 
293,087 
Weighted-average effect of potentially dilutive equity awards
2,690 — — 
Weighted-average shares used in computing net income (loss) per share - diluted
293,769 
300,843 
293,087 
Net income (loss) per share - basic
$
0.63 
$
(0.32)
$
(0.47)
Net income (loss) per share - diluted
$
0.63 
$
(0.32)
$
(0.47)
Equity awards excluded from diluted net income (loss) per share because their effect would have been anti-dilutive
10,679 24,462 29,259 
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events
16. Subsequent Events
FireHydrant Acquisition
In January 2026, the Company completed the acquisition of FireHydrant, Inc., a provider of AI-powered incident management software. As of December 31, 2025, the Company paid $18.4 million of advances for the acquisition, included within prepaid expenses and other current assets in the consolidated balance sheet, and held $61.3 million of restricted cash with its payments administrator specifically for the acquisition.
The Company will account for the transaction as a business combination. Since the closing date of the acquisition occurred subsequent to the end of the reporting period, the allocation of purchase price to the underlying net assets has not yet been completed.
Share Repurchase Program
In February 2026, the Board of Directors of the Company approved a stock repurchase program for the repurchase of up to $400 million of the Company’s outstanding Class A common stock. Under the repurchase program, the Company may repurchase shares of the Company’s outstanding Class A common stock from time to time in the open market, through privately negotiated transactions and/or other means in compliance with the Exchange Act and the rules and regulations thereunder. The timing, manner, price, and amount of any repurchases will be determined by the Company at its discretion, and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The repurchase program may be suspended or discontinued at any time.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Tyler Sloat [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement During the three months ended December 31, 2025, our officers (as defined in Rule 16a-1(f) under the Exchange Act) or directors adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, as further set below:
NameTitleActionDateExpiration DateTotal number of securities to be sold
Tyler SloatChief Financial Officer and Chief Operating Officer
Termination(1)
November 7, 2025August 31, 2026
Up to 500,000 shares
(1) Represents the termination of a written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) adopted on May 27, 2025.
Name Tyler Sloat
Title Chief Financial Officer and Chief Operating Officer
Rule 10b5-1 Arrangement Terminated true
Termination Date November 7, 2025
Expiration Date August 31, 2026
Arrangement Duration 297 days
Aggregate Available 500,000
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have implemented and maintain various information security processes, including a formal cybersecurity risk-management framework, designed to identify, assess, and manage material risks to our information systems and data, including our networks (on-premises and cloud), communications systems, hardware, software, third-party hosted services, confidential and proprietary data (including customer, employee, and strategic business information), and intellectual property.
The Chief Information Security Officer (CISO), in collaboration with our information security team, broader IT organization, product and engineering functions, and external advisors, leads our cybersecurity program. This program utilizes various methods, including both automated and manual controls, threat-feed monitoring, internal audits, access-control assessments, vulnerability scanning, penetration testing, open-source software analysis, and a bug bounty program.
Our Chief Information Security Officer (CISO) leads a global cybersecurity program that is embedded across engineering, product, IT, legal, and compliance functions. The program is risk-based and references recognized industry frameworks and regulatory requirements.
We employ a layered defense strategy that includes automated and manual controls, continuous threat intelligence monitoring, secure software development practices, cloud security governance, independent assessments, vulnerability management, penetration testing, third-party risk management, and a coordinated vulnerability disclosure and bug bounty program.
Cybersecurity risks are regularly assessed, prioritized, and reported to executive leadership and the Board, with defined incident response, escalation, and resilience procedures in place to address evolving threats.
Depending on the environment, we implement and maintain various technical, physical, and organizational safeguards—such as 24/7 security operations center (SOC) monitoring, formal incident-response plans, secure software-development practices (including static and dynamic code scanning and third-party component analysis), identity and access management, encryption of data at rest and in transit, continuous cloud-security-posture monitoring through a Cloud-Native Application Protection Platform (CNAPP) that is designed to provide visibility across our multi-cloud environment, third-party risk-management processes, phishing testing and training, employee awareness programs, and cybersecurity insurance.
As we deploy and embed artificial intelligence (AI) and machine learning technologies into our platform, operations, and customer-facing solutions, we have established an AI security governance program designed to manage emerging risks associated with AI adoption, including risks related to cybersecurity. This includes a cross-functional AI Advisory Board comprised of representatives from cybersecurity, IT, product engineering, legal/privacy, data science, and business operations; training and awareness for employees and contractors on AI-specific security topics such as safe use of generative AI and monitoring of AI-enabled threats; and vendor and third-party AI component risk-management, which applies contractual and technical controls—such as model provenance review and ongoing monitoring of AI supplier performance.
Our cyber-risk management processes are integrated into our business strategy, and capital allocation decisions. The CISO reports to senior management and the Audit Committee of our Board of Directors on our risk posture, threat landscape, and certain material cybersecurity issues that may arise. Vendors that provide critical services are subject to our vendor risk management program, which includes risk evaluation and contractual security obligations.
For a description of the risks from cybersecurity threats that may materially affect us and how they may do so, see Part I, Item 1A. “Risk Factors,” including: “If our information technology, systems, or those of third parties with whom we work, or our data, are or were to be compromised, we could experience adverse consequences resulting from such compromise, including, but not limited to, regulatory investigations or actions, litigation, fines and penalties, disruptions of our business operations, reputational harm, loss of revenue or profits, and other adverse consequences.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our cyber-risk management processes are integrated into our business strategy, and capital allocation decisions.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors oversees cybersecurity risk as part of its risk-management responsibilities. The Audit Committee is responsible for monitoring our cybersecurity risk management processes, including oversight and mitigation of risks associated with cybersecurity threats.
The CISO leads our cybersecurity program and works cross-functionally across IT, product and engineering, human resources, finance, and legal/compliance, to align cybersecurity risk with business objectives. The CISO is responsible for staffing, budgeting, process approval, reviewing key metrics, and responding to and escalating cybersecurity incidents. Our
CISO has over 20 years of experience in cybersecurity and information technology leadership, including senior roles in public and cloud-based software companies. The CISO holds CISSP, CISM, CISA, and multiple GIAC certifications.
Our incident-response process is designed to escalate certain cybersecurity events to the CISO, Chief Financial Officer (CFO), and Chief Legal Officer (CLO), as appropriate, with the aim of timely disclosure to the Audit Committee and Board. The Audit Committee receives quarterly updates from the CISO on significant threats, risk posture, and mitigation activities; the full Board receives an annual briefing on cybersecurity risk.
We maintain controls and procedures designed to ensure that material cybersecurity information is communicated promptly to senior management and the Board, enabling them to exercise oversight and disclosure.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee is responsible for monitoring our cybersecurity risk management processes, including oversight and mitigation of risks associated with cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee receives quarterly updates from the CISO on significant threats, risk posture, and mitigation activities; the full Board receives an annual briefing on cybersecurity risk.
Cybersecurity Risk Role of Management [Text Block]
The CISO leads our cybersecurity program and works cross-functionally across IT, product and engineering, human resources, finance, and legal/compliance, to align cybersecurity risk with business objectives. The CISO is responsible for staffing, budgeting, process approval, reviewing key metrics, and responding to and escalating cybersecurity incidents. Our
CISO has over 20 years of experience in cybersecurity and information technology leadership, including senior roles in public and cloud-based software companies. The CISO holds CISSP, CISM, CISA, and multiple GIAC certifications.
Our incident-response process is designed to escalate certain cybersecurity events to the CISO, Chief Financial Officer (CFO), and Chief Legal Officer (CLO), as appropriate, with the aim of timely disclosure to the Audit Committee and Board. The Audit Committee receives quarterly updates from the CISO on significant threats, risk posture, and mitigation activities; the full Board receives an annual briefing on cybersecurity risk.
We maintain controls and procedures designed to ensure that material cybersecurity information is communicated promptly to senior management and the Board, enabling them to exercise oversight and disclosure.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Chief Information Security Officer (CISO), in collaboration with our information security team, broader IT organization, product and engineering functions, and external advisors, leads our cybersecurity program.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
The CISO leads our cybersecurity program and works cross-functionally across IT, product and engineering, human resources, finance, and legal/compliance, to align cybersecurity risk with business objectives. The CISO is responsible for staffing, budgeting, process approval, reviewing key metrics, and responding to and escalating cybersecurity incidents. Our
CISO has over 20 years of experience in cybersecurity and information technology leadership, including senior roles in public and cloud-based software companies. The CISO holds CISSP, CISM, CISA, and multiple GIAC certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
The CISO leads our cybersecurity program and works cross-functionally across IT, product and engineering, human resources, finance, and legal/compliance, to align cybersecurity risk with business objectives. The CISO is responsible for staffing, budgeting, process approval, reviewing key metrics, and responding to and escalating cybersecurity incidents. Our
CISO has over 20 years of experience in cybersecurity and information technology leadership, including senior roles in public and cloud-based software companies. The CISO holds CISSP, CISM, CISA, and multiple GIAC certifications.
Our incident-response process is designed to escalate certain cybersecurity events to the CISO, Chief Financial Officer (CFO), and Chief Legal Officer (CLO), as appropriate, with the aim of timely disclosure to the Audit Committee and Board. The Audit Committee receives quarterly updates from the CISO on significant threats, risk posture, and mitigation activities; the full Board receives an annual briefing on cybersecurity risk.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of Freshworks and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.
Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of Freshworks and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Remeasurement and Transactions
Foreign Currency Remeasurement and Transactions
The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurred, except for those expenses related to non-monetary assets and liabilities which are remeasured at historical exchange rates.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:
•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;
•allowance for doubtful accounts;
•benefit period of deferred contract acquisition costs;
•capitalization of internal-use software development costs;
•fair value of goodwill;
•useful lives of long-lived assets, including intangible assets;
•valuation of deferred tax assets;
•valuation of employee defined benefit plan and other compensation liabilities;
•fair value of share-based awards; and
•incremental borrowing rate used for operating leases.
Revenue Recognition and Deferred Revenue
Revenue Recognition
We derive revenue from subscription fees, related professional services, and following the acquisition of D42 Parent, Inc. in June 2024, software licenses.
Subscription Revenue
We sell subscriptions for our cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. We record revenue net of sales or value-added taxes.
We sell subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which we would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and we lack visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller discounts.
Subscription revenue is primarily comprised of fees paid by our customers for accessing our cloud-based software during the term of the arrangement. Cloud-based services allow customers to use our multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers.
Professional Service Revenue
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.
Software License Revenue
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. Software license revenue consists of term licenses and is recognized upfront, upon making the software available to the customer. The associated software maintenance revenue is generally recognized ratably over the contract term as support and updates are provided to the customers over the term of the arrangement.
Customers with Multiple Performance Obligations
Some of our contracts with customers contain both subscriptions and professional services, and software licenses. For these contracts, we account for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative standalone selling price (SSP). We determine SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP.
Deferred Revenue
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. Customers are invoiced for subscription service arrangements in advance for monthly, quarterly, semi-annual and annual subscription plans. Our payment terms generally provide that customers pay the invoiced portion of the total arrangement fee either in advance or within 30 days from the invoice date.
Cost of Revenue
Cost of Revenue
Cost of revenue consists mainly of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for employees associated with our cloud-based infrastructure, payment gateway fees, voice, product support, and professional service organizations, as well as costs incurred by us for third-party hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired intangibles, amortization of capitalized internal-use software, and allocation of general overhead expenses such as facilities and information technology.
Research and Development
Research and Development
Research and development costs are expensed as incurred and consist primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for our product development employees. Research and development expenses also include non-personnel-related expenses such as third-party services for product development and consulting expenses, depreciation expense related to equipment used in research and development activities, and allocation of our general overhead expenses.
Advertising Costs
Advertising Costs
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred.
Stock-Based Compensation
Stock-Based Compensation
We issue stock options and restricted stock units (RSUs) to employees, consultants and directors under our 2021 Equity Incentive Plan (2021 Plan) and stock purchase rights granted under the 2021 Employee Stock Purchase Plan (ESPP) to employees based on the estimated fair value on the date of the grant. Stock-based compensation expense related to stock options and RSUs under the 2021 Plan and stock purchase rights under the ESPP is recognized in the consolidated statements of operations on a straight-line basis over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.
The fair value of RSUs is based on the closing market price of our Class A common stock on the date of the grant. Prior to the Initial Public Offering (IPO) in 2021, we determined the fair value of the common stock underlying stock options and RSUs by considering numerous objective and subjective factors including, but not limited to: (i) independent third-party valuations, (ii) the prices, rights, preferences, and privileges of our redeemable convertible preferred stock relative to its common stock, (iii) the lack of marketability of the common stock, (iv) current business conditions and financial projections, and (iv) the likelihood of achieving an IPO or sale event. Subsequent to the IPO, the fair values of stock options and the stock purchase rights under the ESPP are estimated using the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. These assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. The main assumptions used in the Black-Scholes option-pricing model include:
Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method which represents the average of the contractual term of the option and the weighted-average vesting period of the option. We consider this appropriate as there is not sufficient historical information available to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees.
Stock price volatility—For the stock price volatility over the expected term where our common stock has sufficient trading history, we generally estimate the stock price volatility using the historical volatility of our own stock. If our common stock lacks sufficient trading history, the stock price volatility over the expected term is estimated based on the historical volatility of comparable companies with similar characteristics to those of ours.
Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.
Dividend yield—Because we have never paid and have no intention to pay cash dividends on our common stock, the dividend yield is zero.
For the performance-based award granted to the then CEO, subsequently Executive Chairman and now former Executive Chairman, with both a service-based vesting condition and a market condition (2021 Executive Chairman Performance Award as discussed further in Note 12 —Stockholders' Equity and Stock-Based Compensation), we determined the fair value of the award by using the Monte Carlo simulation model. The main assumptions used in the Monte Carlo simulation model include stock price volatility, risk-free interest rate, dividend yield and the measurement period, which is the period over which our simulated stock prices are used to evaluate the possibility of achieving the specified stock price targets. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method.
In March 2025 and February 2024, the Board approved performance awards (PRSUs) to be granted to certain members of the executive team subject to service and performance-based vesting conditions (referred to as Executive PRSUs in Note 12—Stockholders' Equity and Stock-Based Compensation). The performance-based vesting conditions include revenue and free cash flow targets. The fair value of each Executive PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on Freshworks' periodic assessment of the probability that the performance will be achieved. If
the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed.
Income Taxes
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
We recognized the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
We recognize interest and penalties related to income tax matters as a component of income tax expense.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist of deposits held at financial institutions, money market funds, as well as highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are recorded at cost, which approximates fair value.
Restricted Cash
Restricted Cash
Restricted cash consists of cash balances that are legally or contractually restricted as to withdrawal or use. Such restrictions primarily relate to cash held as collateral under certain contractual arrangements, amounts restricted for the settlement of specific obligations, or cash held in escrow. Restricted cash is recorded at cost, which approximates fair value.
Marketable Securities
Marketable Securities
Marketable securities consist primarily of debt securities such as corporate bonds, commercial paper, U.S. treasury securities, U.S. government agency securities and certificates of deposit. These securities are classified as available-for-sale securities at the time of purchase as they represent funds readily available for current operations, and we have the ability and intent to liquidate them at any time to meet our operating cash needs, if necessary. All available-for-sale debt securities are recorded at their estimated fair value, with changes in fair value recognized as unrealized gains or losses in accumulated other comprehensive income. For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. Expected credit losses are recorded in interest and other income, net, on the consolidated statements of income, and any remaining unrealized losses are recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income, net in the consolidated statements of operations.
Accounts Receivable and Allowance for Credit Losses
Accounts Receivable and Allowance for Credit Losses
Trade accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based on our assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. We regularly review the adequacy of the allowance by considering the age of each outstanding invoice and the collection history.
Concentrations of Risk
Concentrations of Risk
Financial instruments that potentially expose us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, we have cash and cash equivalents held in international bank accounts, which are denominated primarily in euros, British pounds, and Indian rupees.
There were no customers that individually exceeded 10% of our revenue for the years ended December 31, 2025, 2024, and 2023, or that represented 10% or more of our consolidated accounts receivable balance as of December 31, 2025 and 2024.
We primarily rely upon third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact our operations and our business could be adversely impacted.
Derivative Instruments
Derivative Instruments
We enter into foreign currency forward contracts, all of which were designated as cash flow hedges, in order to manage the volatility of cash flows that relate to cost of revenues and operating expenses denominated in Indian rupee. All derivative instruments are measured at fair value based upon quoted market prices for comparable instruments and as such, classified within Level 2 of the fair value hierarchy. Derivative assets and liabilities are presented on a gross basis on the consolidated balance sheets under prepaid expenses and other current assets and accrued liabilities, respectively.
Gains or losses related to cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI) on the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within interest and other income. Changes in the fair value of currency forward exchange contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. A majority of the balance related to foreign exchange derivative instruments included in AOCI at December 31, 2025 is expected to be reclassified into earnings within 12 months.
Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.
We do not use derivative financial instruments for trading or speculative purposes.
Entering into derivative instruments exposes us to credit risk to the extent that the counterparties are unable to meet the terms of the contract. We mitigate this credit risk by transacting with major financial institutions with high credit ratings. In addition, we have entered into master netting arrangements that mitigate credit risk by permitting net settlement of transactions. As such, our exposure is not considered significant. We do not have any collateral requirements with counterparties.
Deferred Contract Acquisition Costs
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs that are associated with acquiring customer contracts and consist primarily of sales commissions and the associated payroll taxes and certain referral fees paid to third-party resellers. The costs incurred upon the execution of initial and expansion contracts are primarily deferred and amortized over an estimated benefit period of three years. The estimated benefit period is determined by taking into consideration our contracts with customers, technology life cycle and other factors. We consider the estimated benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of operations. There was no impairment loss in relation to the incremental selling costs capitalized for the years ended December 31, 2025, 2024, and 2023.
We have elected to apply the practical expedient under Accounting Standards Codification (ASC) No. 340-40—Other Assets and Deferred Costs to account for costs incurred in obtaining a contract with a benefit period of one year or less as commission expenses. Deferred contract acquisition costs are included in sales and marketing expense in our consolidated statements of operations.
Property and Equipment, net
Property and Equipment, net
Property and equipment, net, including capitalized internally-developed software, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
Capitalized Internal-Use Software
Capitalized Internal-Use Software
We capitalize costs incurred in our software development projects and implementation of certain enterprise cloud computing services during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the development project is available for general release, capitalization ceases, and we estimate the useful life of the asset and begin amortization. Internal-use software and cloud computing services are amortized on a straight-line basis over its estimated useful life, within cost of revenue in the consolidated statements of operations.
Long-Lived Assets (Including Goodwill)
Long-Lived Assets (Including Goodwill)
Long-lived assets with finite lives include property and equipment, capitalized internal-use software and right-of-use (ROU) assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group. We did not recognize any impairment of long-lived assets during the years ended December 31, 2025, 2024, and 2023.
Goodwill Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. We elected to bypass the qualitative assessment, and performed a quantitative goodwill impairment test. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge in the amount of such excess is recorded to goodwill, limited to the amount of goodwill.
Net Income (Loss) per Share
Net Income (Loss) per Share
Basic and diluted net income (loss) per share is computed by dividing the net income (loss) by the number of weighted-average shares of common stock outstanding during the reporting period. Diluted net income (loss) per share adjusts basic net income (loss) per share for the potentially dilutive impact of outstanding stock options, RSUs, PRSUs, and stock purchases rights granted under the ESPP. The dilutive potential shares are computed using the treasury stock method. In periods when we report net losses, all potentially dilutive securities are considered antidilutive, and accordingly, diluted net loss per share is the same as basic net loss per share.
Defined Benefit Plan
Defined Benefit Plan
Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of
employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements.
Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, we use a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of our obligations.
Because the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because we have deemed them immaterial to our consolidated financial statements.
Leases
Leases
We lease office space under operating leases with expiration dates through 2032. We determine whether an arrangement constitutes a lease and records lease liabilities and ROU assets on our consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or our incremental borrowing rate (the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease), whichever is more readily determinable. The incremental borrowing rate is based on an estimate of our expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. Lease liabilities due within 12 months are included within accrued liabilities on our consolidated balance sheets. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to us. We do not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.
Restructuring Charges
Restructuring Charges
Costs associated with our restructuring plan primarily consist of severance payments, benefits continuation, and other employee separation costs. In general, we record involuntary employee-related exit costs when we communicate to employees that they are entitled to receive such benefits and the amount can be reasonably estimated. Related costs are included in restructuring charges in the consolidated statements of operations. The remaining restructuring liability is included in accrued liabilities in the consolidated balance sheet.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Accounting Standards Recently Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance was adopted on January 1, 2025 prospectively for our annual disclosures starting 2025. This guidance is only related to disclosures and did not have a significant impact on our consolidated financial statements. See Note 14—Income Taxes.
Accounting Standards Not Yet Adopted
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This authoritative guidance is effective for us starting in our annual disclosures for 2027 and interim periods starting 2028. Early adoption is permitted. The amendments may be applied either (1) prospectively to
financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets under Accounting Standards Codification 606, Revenue from Contracts with Customers. The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This guidance is effective for us starting in our annual disclosures for 2026. Early adoption is permitted. We do not expect this guidance to have a material impact on our consolidated financial statements.
In September 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025‑06 updates guidance on accounting for software costs by aligning capitalization with when management commits to funding a project and completion is probable. Additionally, the ASU introduces new disclosure requirements, including significant judgments made in applying the guidance and the nature and amount of capitalized software costs. This guidance is effective for us starting in our annual and interim disclosures for periods starting January 1, 2028. Early adoption is permitted. We are currently assessing the impact of this update on our consolidated financial statements, including which transition method to apply.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies that the interim reporting requirements in Topic 270 apply to all entities that issue interim financial statements prepared in accordance with U.S. GAAP and consolidates such requirements within Topic 270. The amendments provide a comprehensive list within Topic 270 of required interim disclosures, establish a principle requiring disclosure of events or changes occurring after the end of the most recent annual reporting period that have a material impact on interim results. and clarifies the form and content requirements applicable to interim financial statements. ASU 2025-11 will be effective for our interim periods starting January 1, 2028, with early adoption permitted. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
Fair Value Measurements
4. Fair Value Measurements
We measure our financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.
Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
Level 3—Inputs that are unobservable.
Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Useful Lives of Property, Plant and Equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
The following table summarizes property and equipment, net as of December 31, 2025 and 2024 (in thousands):
December 31,
20252024
Computers$18,835 $19,694 
Capitalized internal-use software53,245 34,255 
Office equipment7,887 6,700 
Furniture and fixtures9,518 10,066 
Motor vehicles267 400 
Leasehold improvements8,994 7,847 
Construction in progress269 13 
Total property and equipment99,015 78,975 
Less: accumulated depreciation and amortization(60,172)(53,082)
Property and equipment, net$38,843 $25,893 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
2025
2024
2023
Capitalization of costs associated with internal-use software$18,990 $6,843 $8,029 
Amortization expense of capitalized internal-use software7,410 5,631 5,106 
Depreciation expense4,593 5,623 6,735 
v3.25.4
Cash Equivalents and Investments (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Cash Equivalents and Available-For-Sale Debt Securities
Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$120,923 $— $— $120,923 
U.S. treasury securities
100,235 16 — 100,251 
U.S. government agency securities
26,168 3 (1)26,170 
Commercial paper
47,466 — — 47,466 
Fixed deposits
129,875 — — 129,875 
Total cash equivalents424,667 19 (1)424,685 
Debt securities:
U.S. treasury securities131,286 102 (9)131,379 
U.S. government agency securities30,868 40 — 30,908 
Corporate debt securities36,878 69 (6)36,941 
Commercial paper
12,369 — — 12,369 
Total debt securities211,401 211 (15)211,597 
Total cash equivalents and debt securities$636,068 $230 $(16)$636,282 
December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$507,655 $— $— $507,655 
Total cash equivalents507,655 — — 507,655 
Debt securities:
U.S. treasury securities215,773 612 (17)216,368 
U.S. government agency securities144,474 321 (12)144,783 
Corporate debt securities45,682 101 (21)45,762 
Commercial paper
16,388 — — 16,388 
Certificates of deposit
26,449 — — 26,449 
Total debt securities448,766 1,034 (50)449,750 
Total cash equivalents and debt securities$956,421 $1,034 $(50)$957,405 
Schedule of Available-for-Sale, Unrealized Loss Position, Fair Value
The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$21,500 $(9)$— $— $21,500 $(9)
Corporate debt securities7,495 (6)— — 7,495 (6)
Total$28,995 $(15)$— $— $28,995 $(15)
December 31, 2024
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$13,819 $(16)$4,993 $(1)$18,812 $(17)
U.S. government agency securities8,197 (7)9,995 (5)18,192 (12)
Corporate debt securities7,998 (19)5,982 (2)13,980 (21)
Total$30,014 $(42)$20,970 $(8)$50,984 $(50)
Schedule of Amortized Costs and Fair Value of Debt Securities Based on Contractual Maturities
The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):
December 31, 2025
Amortized CostFair Value
Due within one year$182,634 $182,772 
Due after one year but within five years28,767 28,825 
Total$211,401 $211,597 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands):
December 31, 2025
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$120,923 $— $120,923 
U.S. treasury securities
100,251 — 100,251 
U.S. government agency securities
— 26,170 26,170 
Commercial paper
— 47,466 47,466 
Fixed deposits
— 129,875 129,875 
Marketable securities:
U.S. treasury securities131,379 — 131,379 
U.S. government agency securities— 30,908 30,908 
Corporate debt securities— 36,941 36,941 
Commercial paper
— 12,369 12,369 
Total financial assets$352,553 $283,729 $636,282 
December 31, 2024
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$507,655 $— $507,655 
Marketable securities:
U.S. treasury securities216,368 — 216,368 
U.S. government agency securities— 144,783 144,783 
Corporate debt securities— 45,762 45,762 
Commercial paper
— 16,388 16,388 
Certificates of deposit
— 26,449 26,449 
Total financial assets$724,023 $233,382 $957,405 
v3.25.4
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Property, Plant and Equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
The following table summarizes property and equipment, net as of December 31, 2025 and 2024 (in thousands):
December 31,
20252024
Computers$18,835 $19,694 
Capitalized internal-use software53,245 34,255 
Office equipment7,887 6,700 
Furniture and fixtures9,518 10,066 
Motor vehicles267 400 
Leasehold improvements8,994 7,847 
Construction in progress269 13 
Total property and equipment99,015 78,975 
Less: accumulated depreciation and amortization(60,172)(53,082)
Property and equipment, net$38,843 $25,893 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
2025
2024
2023
Capitalization of costs associated with internal-use software$18,990 $6,843 $8,029 
Amortization expense of capitalized internal-use software7,410 5,631 5,106 
Depreciation expense4,593 5,623 6,735 
Schedule of Accrued Liabilities
The following table summarizes accrued liabilities as of December 31, 2025 and 2024 (in thousands):
December 31,
20252024
Accrued compensation$28,233 $28,269 
Accrued third-party cloud infrastructure expenses
5,922 — 
Accrued reseller commissions11,512 11,569 
Accrued advertising and marketing expenses7,835 4,414 
Advanced payments from customers6,097 4,487 
Accrued taxes14,499 14,747 
Operating lease liabilities, current9,221 8,073 
Contributions withheld for employee stock purchase plan1,198 1,127 
Unsettled share repurchases
— 1,840 
Other accrued expenses13,114 7,407 
Total accrued liabilities$97,631 $81,933 
v3.25.4
Business Combination (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Business Acquisitions, by Acquisition The following table summarizes the final fair value of assets acquired and liabilities assumed from the acquisition, inclusive of measurement period adjustments:
Amount
(in thousands)
Assets acquired:
Cash
$11,432 
Trade accounts and other receivables
8,916 
Prepaid expenses and other current assets
1,792 
Customer relationships
67,600 
Developed technology
30,700 
Trademarks
700 
Goodwill
140,495 
Total
$261,635 
Liabilities assumed:
Accounts payable and other current liabilities
3,510 
Deferred revenue
6,080 
Deferred tax liability
13,940 
Total
23,530 
Total purchase price consideration
$238,105 
Schedule of Business Combination, Pro Forma Information
The following unaudited supplemental pro forma financial information is provided for informational purposes only and summarizes our combined results of operations as if the acquisition had occurred on January 1, 2023 (in thousands):
Year Ended December 31,
20242023
Revenue
$735,591 $631,608 
Net loss
(99,999)(151,546)
v3.25.4
Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets The following tables summarize acquired intangible assets as of December 31, 2025 and 2024 (amounts in thousands):
December 31, 2025
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(18,535)$22,661 4.4
Customer relationships69,200 (14,875)54,325 6.4
Trademarks
$700 $(700)$— — 
Total$111,096 $(34,110)$76,986 
December 31, 2024
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(13,423)$27,773 5.4
Customer relationships69,200 (6,433)62,767 7.4
Trademarks
$700 $(400)$300 0.4
Total$111,096 $(20,256)$90,840 
Schedule of Finite-lived Intangible Assets Amortization Expense
Total amortization of acquired intangible assets for the years ended December 31, 2025, 2024, and 2023 is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$5,113 $2,927 $158 
Sales and marketing8,741 5,233 145 
Total amortization expense$13,854 $8,160 $303 
Schedule of Estimated Future Amortization Expense As of December 31, 2025, expected future amortization expense related to acquired intangible assets is as follows (in thousands):
Year Ending December 31,
2026$13,553 
202713,553 
202813,591 
202913,553 
203010,640 
Thereafter
12,096 
Total future amortization
$76,986 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Costs
The following table presents various components of the lease costs (in thousands):
Year Ended December 31,
Operating Leases
2025
2024
Operating lease cost$13,112 $12,093 
Short-term lease cost492 489 
Variable lease cost4,802 3,842 
Total lease cost
$18,406 $16,424 
The weighted-average remaining term of our operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
December 31,
Lease Term and Discount Rate
2025
2024
Weighted-average remaining lease term (in years)3.94.3
Weighted-average discount rate8.3 %9.0 %
The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):
Year Ended December 31,
Supplemental Cash Flow Information:20252024
Cash payments included in the measurement of operating lease liabilities$11,527 $6,808 
Schedule of Maturities of Operating Lease Liabilities
Maturities of the operating lease liabilities are as follows (in thousands):
Year Ending December 31:Operating Leases
2026$12,307 
202713,489 
202812,152 
20296,136 
20303,580 
Thereafter2,579 
Total lease payments50,243 
Less: imputed interest(7,740)
Present value of operating lease liabilities$42,503 
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under the Company’s Non-cancelable Purchase Commitments Future minimum payments under our non-cancelable purchase commitments as of December 31, 2025 are presented in the table below (in thousands):
Year ending December 31,Contractual Commitments
2026$95,447 
202791,498 
202868,723 
Total$255,668 
v3.25.4
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenues
The following table summarizes revenue by our service offerings (in thousands):
Year Ended December 31,
202520242023
Subscription services, software licenses and maintenance
$829,403 $710,744 $582,868 
Professional services9,406 9,676 13,564 
Total revenue$838,809 $720,420 $596,432 
Schedule of Changes in the Balance of Deferred Revenue The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of the year (2)
$327,288 $266,399 $205,626 
Add: Billings during the year (1)
899,988 781,309 657,205 
Less: Revenue recognized during the year(838,809)(720,420)(596,432)
Balance at end of the year (2)
$388,467 $327,288 $266,399 
(1) Includes deferred revenue and unbilled receivables acquired as part of D42 Parent, Inc. acquisition and changes in unbilled receivable.
(2) As of December 31, 2025 and 2024, non-current deferred revenue of $3.1 million and $3.9 million was included in Other Liabilities in the consolidated balance sheets, respectively.
Schedule of Changes in the Balance of Deferred Contract Acquisition Costs
The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of the year$48,640 $42,672 $39,675 
Add: Contract costs capitalized during the year40,071 34,524 26,962 
Less: Amortization of contract costs during the year(31,702)(28,556)(23,965)
Balance at end of the year$57,009 $48,640 $42,672 
v3.25.4
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Revenue from External Customers by Geographic Areas The following table summarizes revenue by geographic region (in thousands):
Year Ended December 31,
2025
2024
2023
North America$390,795 $329,934 $266,331 
Europe, Middle East and Africa324,618 277,851 229,983 
Asia Pacific100,183 91,442 83,109 
Other23,213 21,193 17,009 
Total revenue$838,809 $720,420 $596,432 
Schedule of Revenue and Long-Lived Assets by Geographical Region
Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):
December 31,
2025
2024
North America$39,747 $20,052 
Europe, Middle East and Africa6,383 8,391 
Asia Pacific32,606 34,341 
Total long-lived assets$78,736 $62,784 
v3.25.4
Stockholders' Equity and Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables shows the changes in the components of accumulated other comprehensive (loss) income (in thousands):
Year Ended December 31,
202520242023
Beginning balance$(338)$(754)$(7,431)
Unrealized gains (losses) on available-for-sale debt securities
(592)1,310 7,105 
Net change on cash flow hedging
(661)(894)(428)
Net impact to other comprehensive (loss) income in current period
(1,253)416 6,677 
Ending balance$(1,591)$(338)$(754)
Schedule of Shares of Common Stock Outstanding and Reserved for Future Issuance
Shares of common stock reserved for future issuance were as follows (in thousands):
December 31,
2025
2021 Equity Incentive Plan:89,696 
2022 Inducement Plan:6,958 
2021 Employee Stock Purchase Plan15,421 
Total shares of common stock reserved for issuance
112,075 
Schedule of Employee Stock Purchase Plan The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
Net shares issued under ESPP(1)
566,042 569,003 627,371 
Weighted average purchase price
$11.10 $11.81 $11.88 
Aggregate net proceeds (in thousands)
$6,228 $6,643 $7,271 
(1)     Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:
Year Ended December 31,
Valuation Assumption Inputs202520242023
Expected term (in years)
0.5 - 2.0
0.5 - 2.0
0.5 - 1.5
Stock price volatility
33.8% - 48.5%
48.3% - 57.2%
47.4% - 77.3%
Risk-free interest rate
3.60% - 4.30%
4.29% - 5.41%
4.47% - 5.38%
Dividend yield—%—%—%
Schedule of Stock Option Activity
Stock option activity during the year ended December 31, 2025 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (1)
Balance as of December 31, 20242,569 $10.30 7.4$15,066 
Stock options exercised(227)$0.33 
Stock options cancelled / forfeited / expired(10)$0.42 
Balance as of December 31, 20252,332 $11.32 7.1$4,650 
Options vested and expected to vest as of December 31, 2025
2,332 $11.32 7.1$4,650 
Options exercisable as of December 31, 2025
1,480 $13.57 6.7$49 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of our common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The following table summarizes the valuation assumptions used in estimating the fair value of stock options assumed and granted for the years presented:
Year Ended December 31,
Valuation Assumption Inputs2024
Expected term (in years)6.0
Stock price volatility65.0%
Risk-free interest rate4.29%
Dividend yield—%
Schedule of Restricted Stock Unit Activity
RSU activity, which includes PRSUs, during the year ended December 31, 2025 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Grant Date Fair Value
Unvested, as of December 31, 202421,797 $18.54 
Granted
15,450 $14.93 
Vested (1)
(10,128)$19.69 
Forfeited/Cancelled
(5,183)$20.58 
Unvested, as of December 31, 202521,936 $14.98 
(1)    During the year ended December 31, 2025, total shares that vested were 10.1 million, of which 4.0 million shares were withheld for tax purposes.
Schedule of Stock-Based Compensation Expense
Total stock-based compensation expense recorded for the years ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
202520242023
Equity awards:
Cost of revenue$5,833 $6,565 $6,774 
Research and development (1)
34,864 41,512 37,524 
Sales and marketing
48,384 63,219 66,755 
General and administrative (2)
57,738 105,410 99,654 
Stock-based compensation, net of amounts capitalized146,819 216,706 210,707 
Capitalized stock-based compensation3,199 1,358 1,758 
Total stock-based compensation expense$150,018 $218,064 $212,465 
(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.
(2) General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $(5.1) million, $50.4 million and $55.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Schedule of Unrecognized Stock-Based Compensation Expense Related to Unvested Stock-Based Awards
As of December 31, 2025, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
December 31, 2025
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense (in years)
RSUs and PSUs$289,786 2.7
Stock options2,880 0.5
ESPP6,257 1.1
Total unrecognized stock-based compensation expense$298,923 
v3.25.4
Restructuring Charges (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs
The following table shows the total amount incurred and accrued related to restructuring charges (in thousands):
Amount
Accrued restructuring costs as of December 31, 2024
$2,350 
Restructuring charges incurred during the period
405 
Amounts paid during the period
(2,221)
Other
(534)
Accrued restructuring costs as of December 31, 2025
$— 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Net Income (Loss) Before Provision for Income Taxes
Our net income (loss) before provision for income taxes for the years ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
2025
2024
2023
Domestic$12,935 $(130,763)$(165,144)
Foreign40,347 39,926 41,375 
Total$53,282 $(90,837)$(123,769)
Schedule of Components of the Provision for Income Taxes
The components of the provision for income taxes for the years ended December 31, 2025, 2024, and 2023 were as follows (in thousands):
Year Ended December 31,
2025
2024
2023
Current:
Federal
$4,010 $2,897 $2,589 
State
1,051 484 221 
Foreign13,599 13,792 12,179 
Deferred:
Federal
(131,046)(12,725)— 
State
(17,973)(1,440)— 
Foreign(82)1,523 (1,322)
Total provision for income taxes$(130,441)$4,531 $13,667 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follow:
Year Ended December 31,
2025
Amount
Rate %
U.S Federal statutory tax rate$11,189 21.0 %
United States
State and local income taxes(1)
(14,365)(27.0)
Foreign tax effects
India
Effect of rates different than statutory
1,358 2.5 
Lease accounting
660 1.2 
Other1,066 2.0 
United Kingdom
Other(698)(1.3)
Brazil
Withholding tax563 1.1 
Other foreign jurisdictions2,095 3.9 
Effect of cross-border tax laws
Global intangible low-taxed income, net of credits3,021 5.7 
Foreign-derived intangible income(4,777)(9.0)
Branch taxes
6,640 12.5 
Tax Credits
Foreign tax credits(14,577)(27.4)
Research and development credits(4,562)(8.6)
Changes in valuation allowances
(137,367)(257.8)
Nontaxable or nondeductible items
Stock-based compensation11,020 20.7 
Non-deductible expenses464 0.9 
Foreign exchange loss1,075 2.0 
Other Adjustments320 0.7 
Changes in unrecognized tax benefits6,434 12.1 
Total provision for income taxes$(130,441)(244.8)%
(1) Income taxes in California made up the majority (greater than 50 percent) of the state tax effect.
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year Ended December 31,
2024
2023
Federal income tax
21.0 %21.0 %
Stock-based compensation (23.9)(16.9)
Change in valuation allowance4.3 (6.4)
Foreign tax rate differential(4.9)— 
Earnings from foreign subsidiaries (2.1)(1.8)
Uncertain tax positions(3.2)(2.1)
U.S. taxes on foreign operations3.5 (4.8)
Other items0.3 — 
Total provision for income taxes
(5.0)%(11.0)%
Schedule of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets as of December 31, 2025 and 2024, were as follows (in thousands):
December 31,
2025
2024
Deferred tax assets:
Net operating loss carryforwards$21,269 $58,907 
Foreign tax credit carryforwards21,488 8,489 
Capitalized R&E under IRC 174112,700 98,274 
Stock-based compensation6,327 6,705 
Accruals and reserves
24,344 9,965 
Allowance for uncollectible accounts328 412 
Operating lease liability11,605 9,518 
Total deferred tax assets198,061 192,270 
Less: valuation allowance— (151,738)
Deferred tax assets, net of valuation allowance198,061 40,532 
Deferred tax liabilities:
Commissions(7,764)(6,102)
Depreciation and amortization
(14,903)(17,159)
Federal tax effect of non-US branches
(7,119)— 
Operating lease right-of-use assets(10,809)(8,772)
Net deferred tax assets$157,466 $8,499 
Schedule of Cash Paid for Income Taxes, Net of Refunds by Jurisdiction
The following presents cash paid for income taxes, net of refunds by jurisdiction for the year ended December 31, 2025 (in thousands):
Year Ended December 31,
2025
U.S. Federal
$— 
U.S. State
695 
Foreign
India
11,889 
Other foreign jurisdictions
1,800 
Total cash paid for taxes, net of refunds
$14,384 
Schedule of Unrecognized Tax Benefits
The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):
Year Ended December 31,
20252024
Unrecognized gross tax benefits at the beginning of the period$8,144 $5,634 
Increases related to prior year tax positions2,612 449 
Decreases related to prior year tax positions(512)— 
Increases in current year unrecognized benefits3,071 2,061 
Unrecognized gross tax benefits at the end of the period$13,315 $8,144 
v3.25.4
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):
Year Ended December 31,
2025
2024
2023
Numerator:
Net income (loss)
$
183,723 
$
(95,368)
$
(137,436)
Denominator:
Weighted-average shares used in computing net income (loss) per share - basic
291,079 
300,843 
293,087 
Weighted-average effect of potentially dilutive equity awards
2,690 — — 
Weighted-average shares used in computing net income (loss) per share - diluted
293,769 
300,843 
293,087 
Net income (loss) per share - basic
$
0.63 
$
(0.32)
$
(0.47)
Net income (loss) per share - diluted
$
0.63 
$
(0.32)
$
(0.47)
Equity awards excluded from diluted net income (loss) per share because their effect would have been anti-dilutive
10,679 24,462 29,259 
v3.25.4
Description of Business (Details)
$ in Millions
 1 Months Ended
Jun. 30, 2024
USD ($)
D42 Parent Inc (Device42)  
Business Combination [Line Items]  
Acquisition date cash consideration paid $ 238.1
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising costs $ 41,300,000 $ 41,400,000 $ 41,200,000
Dividend yield 0.00%    
Credit loss on available-for-sale debt securities $ 0 0 0
Capitalized contract costs, amortization period 3 years    
Impairment loss on incremental selling costs capitalized $ 0 0 0
Impairment of long-lived assets 0 0 0
Impairment of goodwill 0 0 $ 0
Plan benefit obligation 13,000,000.0 11,400,000  
Liability, defined benefit plan, noncurrent 10,900,000 9,600,000  
Liability, defined benefit plan, current $ 2,100,000 $ 1,800,000  
v3.25.4
Summary of Significant Accounting Policies - Property and Equipment (Details)
Dec. 31, 2025
Computers  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 3 years
Capitalized internal-use software  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 3 years
Office equipment, furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
Motor vehicles  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
v3.25.4
Cash Equivalents and Investments - Carrying Amounts and Fair Values of Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 636,068 $ 956,421
Unrealized Gains 230 1,034
Unrealized Losses (16) (50)
Fair Value 636,282 957,405
Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 424,667 507,655
Unrealized Gains 19 0
Unrealized Losses (1) 0
Fair Value 424,685 507,655
Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 211,401 448,766
Unrealized Gains 211 1,034
Unrealized Losses (15) (50)
Fair Value 211,597 449,750
Money market funds | Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 120,923 507,655
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 120,923 507,655
U.S. treasury securities | Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 100,235  
Unrealized Gains 16  
Unrealized Losses 0  
Fair Value 100,251  
U.S. treasury securities | Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 131,286 215,773
Unrealized Gains 102 612
Unrealized Losses (9) (17)
Fair Value 131,379 216,368
U.S. government agency securities | Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 26,168  
Unrealized Gains 3  
Unrealized Losses (1)  
Fair Value 26,170  
U.S. government agency securities | Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 30,868 144,474
Unrealized Gains 40 321
Unrealized Losses 0 (12)
Fair Value 30,908 144,783
Commercial paper | Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 47,466  
Unrealized Gains 0  
Unrealized Losses 0  
Fair Value 47,466  
Fixed deposits | Total cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 129,875  
Unrealized Gains 0  
Unrealized Losses 0  
Fair Value 129,875  
Corporate debt securities | Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 36,878 45,682
Unrealized Gains 69 101
Unrealized Losses (6) (21)
Fair Value 36,941 45,762
Certificates of deposit | Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost   26,449
Unrealized Gains   0
Unrealized Losses   0
Fair Value   26,449
Commercial paper | Total debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 12,369 16,388
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value $ 12,369 $ 16,388
v3.25.4
Cash Equivalents and Investments - Continuous Unrealized Loss Position and Fair Values of Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value    
Less than 12 months $ 28,995 $ 30,014
Greater than 12 months 0 20,970
Total 28,995 50,984
Unrealized Loss    
Less than 12 months (15) (42)
Greater than 12 months 0 (8)
Total (15) (50)
U.S. treasury securities    
Fair Value    
Less than 12 months 21,500 13,819
Greater than 12 months 0 4,993
Total 21,500 18,812
Unrealized Loss    
Less than 12 months (9) (16)
Greater than 12 months 0 (1)
Total (9) (17)
U.S. government agency securities    
Fair Value    
Less than 12 months   8,197
Greater than 12 months   9,995
Total   18,192
Unrealized Loss    
Less than 12 months   (7)
Greater than 12 months   (5)
Total   (12)
Corporate debt securities    
Fair Value    
Less than 12 months 7,495 7,998
Greater than 12 months 0 5,982
Total 7,495 13,980
Unrealized Loss    
Less than 12 months (6) (19)
Greater than 12 months 0 (2)
Total $ (6) $ (21)
v3.25.4
Cash Equivalents and Investments - Amortized Cost and Fair Value Based on Contractual Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Amortized Cost    
Amortized Cost $ 636,068 $ 956,421
Fair Value    
Total 636,282 $ 957,405
Marketable Securities    
Amortized Cost    
Due within one year 182,634  
Due after one year but within five years 28,767  
Amortized Cost 211,401  
Fair Value    
Due within one year 182,772  
Due after one year but within five years 28,825  
Total $ 211,597  
v3.25.4
Cash Equivalents and Investments - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jul. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]        
Accrued interest   $ 1,500 $ 3,300  
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration]   Prepaid expenses and other current assets Prepaid expenses and other current assets  
Gross amount of sale of non-marketable equity investments $ 2,200      
Gain on sale of non-marketable equity investments $ 1,800 $ 1,837 $ 0 $ 0
v3.25.4
Fair Value Measurements - Narrative (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value, assets $ 0 $ 0
Fair value, liabilities 0 0
Foreign Exchange Forward    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 86,700,000 $ 50,500,000
v3.25.4
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets $ 636,282 $ 957,405
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 131,379 216,368
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 30,908 144,783
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 12,369 16,388
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 36,941 45,762
Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities:   26,449
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets 352,553 724,023
Level 1 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 131,379 216,368
Level 1 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 1 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 1 | Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities:   0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets 283,729 233,382
Level 2 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 2 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 30,908 144,783
Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 12,369 16,388
Level 2 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 36,941 45,762
Level 2 | Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities:   26,449
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 120,923 507,655
Money market funds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 120,923 507,655
Money market funds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 0 $ 0
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 100,251  
U.S. treasury securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 100,251  
U.S. treasury securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 0  
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 26,170  
U.S. government agency securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 0  
U.S. government agency securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 26,170  
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 47,466  
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 0  
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 47,466  
Fixed deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 129,875  
Fixed deposits | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 0  
Fixed deposits | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: $ 129,875  
v3.25.4
Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 99,015 $ 78,975  
Less: accumulated depreciation and amortization (60,172) (53,082)  
Property and equipment, net 38,843 25,893  
Capitalization of costs associated with internal-use software 18,990 6,843 $ 8,029
Amortization expense of capitalized internal-use software 7,410 5,631 5,106
Depreciation expense 4,593 5,623 $ 6,735
Computers      
Property, Plant and Equipment [Line Items]      
Total property and equipment 18,835 19,694  
Capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Total property and equipment 53,245 34,255  
Office equipment      
Property, Plant and Equipment [Line Items]      
Total property and equipment 7,887 6,700  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Total property and equipment 9,518 10,066  
Motor vehicles      
Property, Plant and Equipment [Line Items]      
Total property and equipment 267 400  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total property and equipment 8,994 7,847  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 269 $ 13  
v3.25.4
Balance Sheet Components - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Net carrying value of capitalized internal-use software $ 26.1 $ 14.5
Compensation liabilities, noncurrent $ 21.1 $ 21.1
v3.25.4
Balance Sheet Components - Accrued and Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued compensation $ 28,233 $ 28,269
Accrued third-party cloud infrastructure expenses 5,922 0
Accrued reseller commissions 11,512 11,569
Accrued advertising and marketing expenses 7,835 4,414
Advanced payments from customers 6,097 4,487
Accrued taxes 14,499 14,747
Operating lease liabilities, current $ 9,221 $ 8,073
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total accrued liabilities Total accrued liabilities
Contributions withheld for employee stock purchase plan $ 1,198 $ 1,127
Unsettled share repurchases 0 1,840
Other accrued expenses 13,114 7,407
Total accrued liabilities $ 97,631 $ 81,933
v3.25.4
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]        
Stock options granted (in shares)   0 0 0
Employee Stock Option        
Business Combination [Line Items]        
Award vesting period   4 years    
D42 Parent Inc (Device42)        
Business Combination [Line Items]        
Acquisition date cash consideration paid $ 238,100      
Payments to acquire businesses, gross 225,300      
Cash 11,432      
Issuance of common stock and options in connection with acquisition 8,900      
Option awards $ 3,900      
Stock options granted (in shares) 511,770      
Equity interest issued or issuable $ 5,700      
Share based compensation, value 1,800 $ 1,800    
Acquisition related costs     $ 2,100  
Goodwill, expected tax deductible amount $ 0      
D42 Parent Inc (Device42) | Customer relationships        
Business Combination [Line Items]        
Finite-lived intangible asset, useful life 8 years      
D42 Parent Inc (Device42) | Developed technology        
Business Combination [Line Items]        
Finite-lived intangible asset, useful life 6 years      
D42 Parent Inc (Device42) | Trademarks        
Business Combination [Line Items]        
Finite-lived intangible asset, useful life 1 year      
D42 Parent Inc (Device42) | Employee Stock Option        
Business Combination [Line Items]        
Award vesting period 2 years 2 years    
v3.25.4
Business Combinations - Recognized Assets and Liabilities Acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Assets acquired:      
Goodwill $ 146,676 $ 147,014  
D42 Parent Inc (Device42)      
Assets acquired:      
Cash     $ 11,432
Trade accounts and other receivables     8,916
Prepaid expenses and other current assets     1,792
Goodwill     140,495
Total     261,635
Liabilities assumed:      
Accounts payable and other current liabilities     3,510
Deferred revenue     6,080
Deferred tax liability     13,940
Total     23,530
Total purchase price consideration     238,105
D42 Parent Inc (Device42) | Customer relationships      
Assets acquired:      
Finite-lived intangibles     67,600
D42 Parent Inc (Device42) | Developed technology      
Assets acquired:      
Finite-lived intangibles     30,700
D42 Parent Inc (Device42) | Trademarks      
Assets acquired:      
Finite-lived intangibles     $ 700
v3.25.4
Business Combinations - Pro Forma (Details) - D42 Parent Inc (Device42) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Business Combination, Pro Forma Information [Line Items]    
Revenue $ 735,591 $ 631,608
Net loss $ (99,999) $ (151,546)
v3.25.4
Intangible Assets, Net - Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 111,096 $ 111,096
Accumulated Amortization (34,110) (20,256)
Net Carrying Value 76,986 90,840
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 41,196 41,196
Accumulated Amortization (18,535) (13,423)
Net Carrying Value $ 22,661 $ 27,773
Weighted Average Remaining Useful Life 4 years 4 months 24 days 5 years 4 months 24 days
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 69,200 $ 69,200
Accumulated Amortization (14,875) (6,433)
Net Carrying Value $ 54,325 $ 62,767
Weighted Average Remaining Useful Life 6 years 4 months 24 days 7 years 4 months 24 days
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 700 $ 700
Accumulated Amortization (700) (400)
Net Carrying Value $ 0 $ 300
Weighted Average Remaining Useful Life   4 months 24 days
v3.25.4
Intangible Assets, Net - Acquired Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 13,854 $ 8,160 $ 303
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense 5,113 2,927 158
Sales and marketing      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 8,741 $ 5,233 $ 145
v3.25.4
Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Amortization Expense    
2026 $ 13,553  
2027 13,553  
2028 13,591  
2029 13,553  
2030 10,640  
Thereafter 12,096  
Net Carrying Value $ 76,986 $ 90,840
v3.25.4
Leases - Narrative (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Lessee, Lease, Description [Line Items]  
Operating lease, option to extend, term 6 years
Lease not yet commenced $ 6.4
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, term 8 years
v3.25.4
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease cost $ 13,112 $ 12,093
Short-term lease cost 492 489
Variable lease cost 4,802 3,842
Total lease cost $ 18,406 $ 16,424
v3.25.4
Leases - Lease Term and Discount Rate (Details)
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted-average remaining lease term (in years) 3 years 10 months 24 days 4 years 3 months 18 days
Weighted-average discount rate 8.30% 9.00%
v3.25.4
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Cash payments included in the measurement of operating lease liabilities $ 11,527 $ 6,808
v3.25.4
Leases - Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 12,307
2027 13,489
2028 12,152
2029 6,136
2030 3,580
Thereafter 2,579
Total lease payments 50,243
Less: imputed interest (7,740)
Present value of operating lease liabilities $ 42,503
v3.25.4
Commitments and Contingencies (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2026 $ 95,447
2027 91,498
2028 68,723
Total $ 255,668
v3.25.4
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenue $ 838,809 $ 720,420 $ 596,432
Subscription services, software licenses and maintenance      
Disaggregation of Revenue [Line Items]      
Total revenue 829,403 710,744 582,868
Professional services      
Disaggregation of Revenue [Line Items]      
Total revenue $ 9,406 $ 9,676 $ 13,564
v3.25.4
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Contract with customer, asset, after allowance for credit loss, current $ 9.8 $ 6.3  
Remaining performance obligation 644.4    
Revenue recognized during the period 323.5 $ 265.4 $ 204.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Remaining performance obligation $ 464.4    
Remaining performance obligation, expected timing of satisfaction, period 12 months    
v3.25.4
Revenue from Contracts with Customers - Changes in the Balance of Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Changes in the Balance of Deferred Revenue [Roll Forward]      
Balance at beginning of the year $ 327,288 $ 266,399 $ 205,626
Add: Billings during the year 899,988 781,309 657,205
Less: Revenue recognized during the year (838,809) (720,420) (596,432)
Balance at end of the year 388,467 327,288 $ 266,399
Contract with customer, liability, noncurrent $ 3,100 $ 3,900  
v3.25.4
Revenue from Contracts with Customers - Deferred Contract Acquisition Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in Deferred Contract Acquisition Costs [Roll Forward]      
Balance at beginning of the year $ 48,640 $ 42,672 $ 39,675
Add: Contract costs capitalized during the year 40,071 34,524 26,962
Less: Amortization of contract costs during the year (31,702) (28,556) (23,965)
Balance at end of the year $ 57,009 $ 48,640 $ 42,672
v3.25.4
Segment and Geographic Information - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]      
Number of operating segments | segment 1    
Revenue $ 838,809 $ 720,420 $ 596,432
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 354,300 $ 294,500 $ 235,300
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 42.00% 41.00% 39.00%
United Kingdom      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 113,500 $ 94,100 $ 75,100
United Kingdom | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 14.00% 13.00% 13.00%
v3.25.4
Segment and Geographic Information - Revenue and Long-lived Assets by Geographic Location (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 838,809 $ 720,420 $ 596,432
Total long-lived assets 78,736 62,784  
North America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 390,795 329,934 266,331
Total long-lived assets 39,747 20,052  
Europe, Middle East and Africa      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 324,618 277,851 229,983
Total long-lived assets 6,383 8,391  
Asia Pacific      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 100,183 91,442 83,109
Total long-lived assets 32,606 34,341  
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 23,213 $ 21,193 $ 17,009
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 01, 2024
USD ($)
Mar. 31, 2025
Jun. 30, 2024
USD ($)
shares
Feb. 29, 2024
Sep. 30, 2021
tranche
target
$ / shares
shares
Dec. 31, 2025
USD ($)
vote
purchasePeriod
stockClass
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Nov. 30, 2024
USD ($)
Aug. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of type of class stocks | stockClass           2        
Repurchase and retirement of common stock, including excise tax           $ 387,426 $ 15,535      
Total shares of common stock reserved for issuance (in shares) | shares           112,075,000        
Contributions withheld for employee stock purchase plan           $ 1,198 1,127      
Share-based payment arrangement, expensed and capitalized, amount           150,018 218,064 $ 212,465    
Intrinsic value of option exercised           $ 3,400 $ 5,400 $ 6,800    
Stock options granted (in shares) | shares           0 0 0    
Stock-based compensation expense           $ 146,819 $ 216,706 $ 210,707    
Executive Chairman                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Annual grant, fair value $ 19,000                  
Incremental cost           0        
Unrecognized Stock-Based Compensation $ 61,900                  
Stock-based compensation expense           (25,800) 24,000 28,100    
Stock-based compensation expense including forfeitures           38,700        
D42 Parent Inc (Device42)                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Share based compensation, value     $ 1,800     $ 1,800        
Stock options granted (in shares) | shares     511,770              
ESPP                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Offering period           24 months        
Number of purchase periods | purchasePeriod           4        
Purchase period           6 months        
ESPP offering period           24 months        
Share-based payment arrangement, expensed and capitalized, amount           $ 3,800 5,300 7,600    
Unrecognized Stock-Based Compensation           $ 6,257        
Employee Stock Option                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Contractual term           10 years        
Award vesting period           4 years        
Employee Stock Option | D42 Parent Inc (Device42)                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Award vesting period     2 years     2 years        
Weighted average grant date fair value (in USD per share) | $ / shares           $ 11.09        
Restricted Stock Units                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Award vesting period           4 years        
Total grant date fair value           $ 199,500 180,000 $ 175,300    
Granted (in shares) | shares           15,450,000        
Restricted Stock Units | Executive Chairman                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Annual grant, percentage of awards 0.70                  
Annual grant, vesting period 4 years                  
Performance Shares | Executive Chairman                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Granted (in shares) | shares         6,000,000          
Number of threshold stock price targets | target         5          
Number of threshold vesting tranches | tranche         5          
Annual grant, percentage of awards 30                  
Performance Shares | Executive Chairman | Minimum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Threshold stock price target (in USD per share) | $ / shares         $ 70.00          
Performance Shares | Executive Chairman | Maximum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Threshold stock price target (in USD per share) | $ / shares         $ 200.00          
Performance Shares | Executive Officer                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Award vesting period   3 years   3 years            
Stock-based compensation expense           $ 9,300 $ 5,000      
Revenue target, percentage of awards   0.70   0.70            
Free cash flow target, percentage of awards   30.00%   30.00%            
Performance Shares | Executive Officer | Maximum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Percentage of target   173.60%   173.60%            
2022 Inducement Plan:                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Total shares of common stock reserved for issuance (in shares) | shares           6,958,000       10,000,000
Share Repurchase Program                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Share repurchase, authorized                 $ 400,000  
Repurchase and retirement of common stock (in shares) | shares           26,895,424 985,234      
Repurchase and retirement of common stock, including excise tax           $ 384,500 $ 15,500      
Shares acquired, average cost per share (in dollars per share) | $ / shares           $ 14.29 $ 15.77      
Class A Common Stock                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Common stock, number of votes per share | vote           1        
Class A Common Stock | ESPP                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Purchase price of common stock in percent           85.00%        
Class B Common Stock                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Common stock, number of votes per share | vote           10        
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Beginning balance $ 1,137,921 $ 1,072,262 $ 1,051,818
Total other comprehensive income (loss), net of taxes: (1,253) 416 6,677
Ending balance 1,032,650 1,137,921 1,072,262
Accumulated Other Comprehensive Income      
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Beginning balance (338) (754) (7,431)
Total other comprehensive income (loss), net of taxes: (1,253) 416 6,677
Ending balance (1,591) (338) (754)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent      
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Unrealized gains (losses) on available-for-sale debt securities (592) 1,310 7,105
Net change on cash flow hedging $ (661) $ (894) $ (428)
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Shares of Common Stock Outstanding and Reserved for Future Issuance (Details) - shares
shares in Thousands
Dec. 31, 2025
Aug. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 112,075  
2021 Equity Incentive Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 89,696  
2022 Inducement Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 6,958 10,000
2021 Employee Stock Purchase Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 15,421  
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Net shares issued under ESPP (in shares) 566,042 569,003 627,371
Aggregate net proceeds (in thousands) $ 6,228 $ 6,643 $ 7,271
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average purchase price (in USD per share) $ 11.10 $ 11.81 $ 11.88
Aggregate net proceeds (in thousands) $ 6,228 $ 6,643 $ 7,271
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Fair Value Assumptions (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00%    
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
ESPP | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 months 6 months 6 months
Stock price volatility 33.80% 48.30% 47.40%
Risk-free interest rate 3.60% 4.29% 4.47%
ESPP | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 2 years 2 years 1 year 6 months
Stock price volatility 48.50% 57.20% 77.30%
Risk-free interest rate 4.30% 5.41% 5.38%
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years)   6 years  
Stock price volatility   65.00%  
Risk-free interest rate   4.29%  
Dividend yield   0.00%  
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Number of Shares    
Beginning balance (in shares) 2,569  
Stock options exercised (in shares) (227)  
Stock options cancelled / forfeited / expired (in shares) (10)  
Ending balance (in shares) 2,332 2,569
Options vested or expected to vest (in shares) 2,332  
Options exercisable (in shares) 1,480  
Weighted-Average Exercise Price    
Beginning balance (in USD per share) $ 10.30  
Stock options exercised (in USD per share) 0.33  
Stock options cancelled / forfeited / expired (in USD per share) 0.42  
Ending balance (in USD per share) 11.32 $ 10.30
Options vested or expected to vest (in USD per share) 11.32  
Options exercisable (in USD per share) $ 13.57  
Weighted-Average Remaining Contractual Term (in years)    
Weighted-Average Remaining Contractual Term (in years) 7 years 1 month 6 days 7 years 4 months 24 days
Options vested and expected to vest as of the end of the period 7 years 1 month 6 days  
Options exercisable as of the end of the period 6 years 8 months 12 days  
Aggregate Intrinsic Value    
Aggregate intrinsic value $ 4,650 $ 15,066
Options vested or expected to vest as of the end of the period 4,650  
Options exercisable as of the end of the period $ 49  
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Weighted-Average Grant Date Fair Value  
Stock withheld for tax withholding requirements (in shares) 4,000
Restricted Stock Units  
Number of Shares  
Unvested, beginning balance (in shares) 21,797
Granted (in shares) 15,450
Vested (in shares) (10,128)
Forfeited/Cancelled (in shares) (5,183)
Unvested, ending balance (in shares) 21,936
Weighted-Average Grant Date Fair Value  
Unvested, beginning balance (in USD per share) | $ / shares $ 18.54
Granted (in USD per share) | $ / shares 14.93
Vested (in USD per share) | $ / shares 19.69
Forfeited/Cancelled (in USD per share) | $ / shares 20.58
Unvested, ending balance (in USD per share) | $ / shares $ 14.98
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards $ 146,819 $ 216,706 $ 210,707
Stock-based compensation capitalized as internal-use software 3,199 1,358 1,758
Total stock-based compensation expense 150,018 218,064 212,465
Executive Chairman      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards (25,800) 24,000 28,100
Cost of revenue | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 5,833 6,565 6,774
Research and development | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 34,864 41,512 37,524
Sales and marketing | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 48,384 63,219 66,755
General and administrative | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 57,738 105,410 99,654
General and administrative | RSUs and PSUs | Executive Chairman      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards $ (5,100) $ 50,400 $ 55,900
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Unrecognized Stock Based Compensation Expense (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 298,923
RSUs and PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 289,786
Weighted-Average Period to Recognize Expense (in years) 2 years 8 months 12 days
Employee Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 2,880
Weighted-Average Period to Recognize Expense (in years) 6 months
ESPP  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 6,257
Weighted-Average Period to Recognize Expense (in years) 1 year 1 month 6 days
v3.25.4
Restructuring Charges - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Related Activities [Abstract]      
Restructuring charges $ 405 $ 9,664 $ 0
Severance costs   8,100  
Other $ (534) $ 1,600  
v3.25.4
Restructuring Charges - Restructuring Cost Roll Forward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Reserve [Roll Forward]      
Accrued restructuring costs as of December 31, 2024 $ 2,350    
Restructuring charges incurred during the period 405 $ 9,664 $ 0
Amounts paid during the period (2,221)    
Other (534) 1,600  
Accrued restructuring costs as of December 31, 2025 $ 0 $ 2,350  
v3.25.4
Income Taxes - Net Loss Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 12,935 $ (130,763) $ (165,144)
Foreign 40,347 39,926 41,375
Income (loss) before income taxes $ 53,282 $ (90,837) $ (123,769)
v3.25.4
Income Taxes - Components of Provision for Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 4,010 $ 2,897 $ 2,589
State 1,051 484 221
Foreign 13,599 13,792 12,179
Deferred:      
Federal (131,046) (12,725) 0
State (17,973) (1,440) 0
Foreign (82) 1,523 (1,322)
Total provision for income taxes $ (130,441) $ 4,531 $ 13,667
v3.25.4
Income Taxes - Reconciliation of the federal statutory income tax rate to the Company’s effective tax rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S Federal statutory tax rate $ 11,189    
State and local income taxes (14,365)    
Effect of cross-border tax laws      
Global intangible low-taxed income, net of credits 3,021    
Foreign-derived intangible income (4,777)    
Branch taxes 6,640    
Tax Credits      
Foreign tax credits (14,577)    
Research and development credits (4,562)    
Changes in valuation allowances (137,367)    
Nontaxable or nondeductible items      
Stock-based compensation 11,020    
Non-deductible expenses 464    
Foreign exchange loss 1,075    
Changes in unrecognized tax benefits 6,434    
Total provision for income taxes $ (130,441) $ 4,531 $ 13,667
Rate %      
U.S Federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes (27.00%)    
Effect of rates different than statutory   (4.90%) 0.00%
Other   0.30% 0.00%
Effect of cross-border tax laws      
Global intangible low-taxed income, net of credits 5.70%    
Foreign-derived intangible income (9.00%)    
Branch taxes 12.50%    
Tax Credits      
Foreign tax credits (27.40%)    
Research and development credits (8.60%)    
Changes in valuation allowances (257.80%) 4.30% (6.40%)
Nontaxable or nondeductible items      
Stock-based compensation 20.70%    
Non-deductible expenses 0.90%    
Foreign exchange loss 2.00%    
Changes in unrecognized tax benefits 12.10%    
Stock-based compensation   (23.90%) (16.90%)
Uncertain tax positions   (3.20%) (2.10%)
U.S. taxes on foreign operations   3.50% (4.80%)
Earnings from foreign subsidiaries   (2.10%) (1.80%)
Total provision for income taxes (244.80%) (5.00%) (11.00%)
India      
Amount      
Effect of rates different than statutory $ 1,358    
Lease accounting 660    
Other $ 1,066    
Rate %      
Effect of rates different than statutory 2.50%    
Lease accounting 1.20%    
Other 2.00%    
United Kingdom      
Amount      
Other $ (698)    
Rate %      
Other (1.30%)    
Brazil      
Amount      
Withholding tax $ 563    
Rate %      
Withholding tax 1.10%    
Other foreign jurisdictions      
Amount      
Effect of rates different than statutory $ 2,095    
Rate %      
Effect of rates different than statutory 3.90%    
United States      
Amount      
Other $ 320    
Rate %      
Other 0.70%    
v3.25.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 21,269 $ 58,907
Foreign tax credit carryforwards 21,488 8,489
Capitalized R&E under IRC 174 112,700 98,274
Stock-based compensation 6,327 6,705
Accruals and reserves 24,344 9,965
Allowance for uncollectible accounts 328 412
Operating lease liability 11,605 9,518
Total deferred tax assets 198,061 192,270
Less: valuation allowance 0 (151,738)
Deferred tax assets, net of valuation allowance 198,061 40,532
Deferred tax liabilities:    
Commissions (7,764) (6,102)
Depreciation and amortization (14,903) (17,159)
Federal tax effect of non-US branches (7,119) 0
Operating lease right-of-use assets (10,809) (8,772)
Net deferred tax assets $ 157,466 $ 8,499
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Examination [Line Items]      
Valuation allowance $ 0 $ 151,738  
Decrease in valuation allowance   3,100  
Gross unrecognized tax benefits 13,315 8,144 $ 5,634
Accrued interest 3,200 $ 2,200  
Research Tax Credit Carryforward      
Income Tax Examination [Line Items]      
Tax credit carryforward, amount 4,600    
Domestic Tax Jurisdiction      
Income Tax Examination [Line Items]      
Decrease in valuation allowance 151,700    
Net operating loss carryforwards 67,300    
State and Local Jurisdiction      
Income Tax Examination [Line Items]      
Net operating loss carryforwards 112,000    
Operating loss carryforwards, subject to expiration 110,300    
Operating loss carryforwards, not subject to expiration 1,700    
Foreign Tax Jurisdiction      
Income Tax Examination [Line Items]      
Tax credit carryforward, amount $ 17,600    
v3.25.4
Income Taxes - Schedule of Cash Paid for Income Taxes, Net of Refunds by Jurisdiction (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Examination [Line Items]      
U.S. Federal $ 0    
U.S. State 695    
Total cash paid for taxes, net of refunds 14,384 $ 11,949 $ 12,034
India      
Income Tax Examination [Line Items]      
Foreign 11,889    
Other foreign jurisdictions      
Income Tax Examination [Line Items]      
Foreign $ 1,800    
v3.25.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Unrecognized Tax Benefits [Roll Forward]    
Unrecognized gross tax benefits at the beginning of the period $ 8,144 $ 5,634
Increases related to prior year tax positions 2,612 449
Decreases related to prior year tax positions (512) 0
Increases in current year unrecognized benefits 3,071 2,061
Unrecognized gross tax benefits at the end of the period $ 13,315 $ 8,144
v3.25.4
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income (loss) $ 183,723 $ (95,368) $ (137,436)
Denominator:      
Weighted-average shares used in computing net income (loss) per share - basic (in shares) 291,079 300,843 293,087
Weighted-average effect of potentially dilutive equity awards (in shares) 2,690 0 0
Weighted-average shares used in computing net income (loss) per share - diluted (in shares) 293,769 300,843 293,087
Net income (loss) per share - basic (in dollars per share) $ 0.63 $ (0.32) $ (0.47)
Net income (loss) per share - diluted (in dollars per share) $ 0.63 $ (0.32) $ (0.47)
Equity awards excluded from diluted net income (loss) per share because their effect would have been anti-dilutive (in shares) 10,679 24,462 29,259
v3.25.4
Subsequent Events (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Feb. 28, 2026
Subsequent Event [Line Items]        
Advance payment for business combination $ 18,432 $ 0 $ 0  
Restricted cash 62,374 $ 3 $ 0  
Subsequent Event        
Subsequent Event [Line Items]        
Share repurchase, authorized       $ 400,000
FireHydrant, Inc        
Subsequent Event [Line Items]        
Advance payment for business combination 18,400      
Restricted cash $ 61,300