DIGITALOCEAN HOLDINGS, INC., 10-K filed on 2/24/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 17, 2026
Jun. 30, 2025
Cover [Abstract]      
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 001-40252    
Entity Registrant Name DigitalOcean Holdings, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 45-5207470    
Entity Address, Address Line One 105 Edgeview Drive, Suite 425,    
Entity Address, City or Town Broomfield    
Entity Address, State or Province CO    
Entity Address, Postal Zip Code 80021    
City Area Code 646    
Local Phone Number 827-4366    
Title of 12(b) Security Common stock, par value $0.000025 per share    
Trading Symbol DOCN    
Security Exchange Name NYSE    
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 false    
Entity Shell Company false    
Entity Public Float     $ 1,680
Entity Common Stock, Shares Outstanding (in shares)   91,996,094  
Documents Incorporated by Reference
Portions of the registrant’s Proxy Statement for its 2026 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2025.
    
Entity Central Index Key 0001582961    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Denver, Colorado
v3.25.4
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 254,475 $ 428,446
Accounts receivable, less allowance for credit losses of $6,374 and $5,940, respectively 90,908 72,486
Prepaid expenses and other current assets 81,598 40,786
Total current assets 426,981 541,718
Noncurrent assets:    
Property and equipment, net 589,094 432,544
Restricted cash 158 1,747
Goodwill 348,674 348,674
Intangible assets, net 99,504 117,718
Operating lease right-of-use assets, net 270,854 187,877
Deferred tax assets 90,310 200
Other assets 12,130 8,537
Total assets 1,837,705 1,639,015
Current liabilities:    
Accounts payable 38,836 54,565
Accrued other expenses 42,679 38,156
Deferred revenue 5,882 5,397
Debt, current 325,109 0
Operating lease liabilities, current 108,037 75,785
Finance lease liabilities and equipment financing obligations, current 31,411 3,550
Other current liabilities 67,510 43,502
Total current liabilities 619,464 220,955
Noncurrent liabilities:    
Deferred tax liabilities 4,092 4,123
Debt, long-term 970,653 1,485,366
Operating lease liabilities, long-term 166,895 130,431
Finance lease liabilities and equipment financing obligations, long-term 99,103 1,095
Other non-current liabilities 6,188 0
Total liabilities 1,866,395 1,841,970
Commitments and Contingencies (Note 10)
Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2025 and 2024) 0 0
Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 91,947,614 and 92,234,517 issued and outstanding as of December 31, 2025 and 2024, respectively) 2 2
Additional paid-in capital 16,005 57,282
Accumulated other comprehensive loss (960) (1,497)
Accumulated deficit (43,737) (258,742)
Total stockholders’ deficit (28,690) (202,955)
Total liabilities and stockholders’ deficit $ 1,837,705 $ 1,639,015
v3.25.4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for credit losses $ 6,374 $ 5,940
Preferred stock, par value (in dollars per share) $ 0.000025 $ 0.000025
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.000025 $ 0.000025
Common stock, shares authorized (in shares) 750,000,000 750,000,000
Common stock, shares issued (in shares) 91,947,614 92,234,517
Common stock, shares outstanding (in shares) 91,947,614 92,234,517
v3.25.4
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 901,427 $ 780,615 $ 692,884
Cost of revenue 361,835 314,672 295,387
Gross profit 539,592 465,943 397,497
Operating expenses:      
Research and development 161,621 142,499 136,917
Sales and marketing 82,433 71,570 65,055
General and administrative 138,549 160,867 162,742
Restructuring and other charges 0 0 20,887
Total operating expenses 382,603 374,936 385,601
Income from operations 156,989 91,007 11,896
Other income (expense):      
Interest expense (17,940) (9,113) (8,945)
Gain on extinguishment of debt, net 48,104 0 0
Interest income and other income, net 19,509 15,805 23,825
Other income, net 49,673 6,692 14,880
Income before taxes 206,662 97,699 26,776
Income tax benefit (expense) 52,600 (13,207) (7,367)
Net income attributable to common stockholders $ 259,262 $ 84,492 $ 19,409
Net income per share attributable to common stockholders      
Basic (in dollars per share) $ 2.83 $ 0.92 $ 0.22
Diluted (in dollars per share) $ 2.52 $ 0.89 $ 0.20
Weighted-average shares used to compute net income per share attributable to common stockholders      
Basic (in shares) 91,481,000 91,634,000 90,141,000
Diluted (in shares) 105,343,000 94,503,000 96,415,000
v3.25.4
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Other Comprehensive Income [Abstract]      
Net income attributable to common stockholders $ 259,262 $ 84,492 $ 19,409
Other comprehensive income (loss):      
Foreign currency translation adjustments, net of taxes 537 (1,057) 345
Unrealized gain on marketable securities, net of taxes 0 12 1,251
Other comprehensive (loss) income 537 (1,045) 1,596
Comprehensive income $ 259,799 $ 83,447 $ 21,005
v3.25.4
Condensed Consolidated Statements of Stockholders' (Deficit) Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2022   96,732,507      
Beginning Balance at Dec. 31, 2022 $ 47,569 $ 2 $ 263,957 $ (2,048) $ (214,342)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)   7,785,464      
Issuance of common stock under equity incentive plan, net of taxes withheld 16,307   16,307    
Issuance of common stock under employee stock purchase plan, net of taxes withheld (in shares)   212,980      
Issuance of common stock under employee stock purchase plan, net of taxes withheld 4,977   4,977    
Repurchase and retirement of common stock including related costs (in shares)   (14,487,509)      
Repurchase and retirement of common stock including related costs (493,339)   (344,035)   (149,304)
Stock-based compensation 89,783   89,783    
Other comprehensive income (loss) 1,596     1,596  
Net income attributable to common stockholders 19,409       19,409
Ending Balance (in shares) at Dec. 31, 2023   90,243,442      
Ending Balance at Dec. 31, 2023 (313,698) $ 2 30,989 (452) (344,237)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)   3,332,573      
Issuance of common stock under equity incentive plan, net of taxes withheld (15,249)   (15,249)    
Issuance of common stock under employee stock purchase plan, net of taxes withheld (in shares)   170,411      
Issuance of common stock under employee stock purchase plan, net of taxes withheld 4,095   4,095    
Repurchase and retirement of common stock including related costs (in shares)   (1,511,909)      
Repurchase and retirement of common stock including related costs (54,901)   (55,904)   1,003
Stock-based compensation 93,351   93,351    
Other comprehensive income (loss) (1,045)     (1,045)  
Net income attributable to common stockholders $ 84,492       84,492
Ending Balance (in shares) at Dec. 31, 2024 92,234,517 92,234,517      
Ending Balance at Dec. 31, 2024 $ (202,955) $ 2 57,282 (1,497) (258,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares) 452,638 1,884,198      
Issuance of common stock under equity incentive plan, net of taxes withheld $ (25,438)   (25,438)    
Issuance of common stock under employee stock purchase plan, net of taxes withheld (in shares)   185,446      
Issuance of common stock under employee stock purchase plan, net of taxes withheld 4,653   4,653    
Repurchase and retirement of common stock including related costs (in shares)   (2,356,547)      
Repurchase and retirement of common stock including related costs (82,202)   (82,202)    
Stock-based compensation 82,524   82,524    
Purchases of capped calls related to 2030 Convertible Notes, net of tax (65,071)   (20,814)   (44,257)
Other comprehensive income (loss) 537     537  
Net income attributable to common stockholders $ 259,262       259,262
Ending Balance (in shares) at Dec. 31, 2025 91,947,614 91,947,614      
Ending Balance at Dec. 31, 2025 $ (28,690) $ 2 $ 16,005 $ (960) $ (43,737)
v3.25.4
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net income attributable to common stockholders $ 259,262 $ 84,492 $ 19,409
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 137,449 130,052 117,866
Stock-based compensation 80,315 90,545 88,347
Provision for expected credit losses 17,985 16,446 15,357
Gain on extinguishment of debt, net (48,104) 0 0
Deferred income taxes (71,237) 2,337 (67)
Operating lease right-of-use assets and liabilities, net (14,996) 324 5,709
Non-cash interest expense 7,418 7,987 7,949
Net accretion of discounts and amortization of premiums on investments 0 2,569 1,866
Impairment of certain long-lived assets 52 356 1,140
Release of VAT reserve 0 0 (819)
Other (7,156) 4,921 627
Changes in operating assets and liabilities:      
Accounts receivable (36,210) (26,746) (22,668)
Prepaid expenses and other current assets (39,256) (12,099) (9,593)
Accounts payable and accrued expenses 12,282 7,423 (11,077)
Deferred revenue 485 57 (315)
Other assets and liabilities 11,315 (25,939) 21,211
Net cash provided by operating activities 309,604 282,725 234,942
Investing activities      
Capital expenditures - property and equipment (129,086) (178,167) (119,299)
Capital expenditures - internal-use software (10,765) (8,356) (5,514)
Acquisition of equipment under financing arrangements (126,829) 0
Purchase of intangible assets 1,835 0 0
Cash paid for acquisition of businesses, net of cash acquired 0 (99,023)
Cash paid for asset acquisitions 0 0 (2,500)
Purchase of marketable securities 0 0 (352,313)
Maturities of marketable securities 0 91,675 979,565
Purchased interest on marketable securities 0 0 (151)
Proceeds from interest on marketable securities 0 0 151
Proceeds from sale of equipment 230 43 236
Net cash (used in) provided by investing activities (268,285) (94,805) 401,152
Financing activities      
Proceeds related to issuance of common stock under equity incentive plan 4,355 13,069 38,410
Proceeds from issuance of common stock under employee stock purchase plan 4,653 4,095 4,977
Employee payroll taxes paid related to net settlement of equity awards (29,411) (28,347) (21,575)
Proceeds from financing arrangements 126,829 0 0
Principal repayments of finance leases and financing arrangements (8,298) (5,475) (2,260)
Repurchase and retirement of common stock including related costs (82,124) (59,788) (488,455)
Net cash used in financing activities (216,909) (76,446) (468,903)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 30 (264) (15)
(Decrease) increase in cash, cash equivalents and restricted cash (175,560) 111,210 167,176
Cash, cash equivalents and restricted cash - beginning of period 430,193 318,983 151,807
Cash, cash equivalents and restricted cash - end of period 254,633 430,193 318,983
Supplemental disclosures of cash flow information:      
Cash paid for interest 9,688 1,048 916
Cash paid for taxes, net of refunds 6,282 19,667 2,723
Operating cash flows paid for operating leases 133,360 83,070 74,248
Non-cash investing and financing activities:      
Capitalized stock-based compensation 2,209 2,807 1,440
Property and equipment received but not yet paid, included in accounts payable and accrued other expenses 30,572 55,260 4,826
Operating right-of-use assets obtained in exchange for operating lease liabilities 178,200 113,230 73,440
Finance right-of-use assets obtained in exchange for finance lease liabilities 2,760 324 11,938
2030 Convertible Notes      
Financing activities      
Proceeds from debt, net of issuance costs 606,130 0 0
Purchases of capped calls related to 2030 Convertible Notes (83,875) 0 0
2025 Credit Facility      
Financing activities      
Proceeds from debt, net of issuance costs 376,290 0 0
2026 Convertible Notes      
Financing activities      
Repayments of 2026 Convertible Notes including related costs $ (1,131,458) $ 0 $ 0
v3.25.4
Nature of the Business and Organization
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of the Business and Organization Nature of the Business
DigitalOcean Holdings, Inc. and its subsidiaries (collectively, the Company, we, our, us) is an agentic inference cloud platform that helps AI and Digital Native Enterprises build, run, and scale intelligent applications with speed, simplicity, and predictable economics. The Company’s platform is designed to be simple, scalable and approachable by providing a variety of product offerings that were built with the needs of growing technology companies in mind. The Company offers a comprehensive set of cloud platform capabilities which span across Infrastructure-as-a-Service (“IaaS”), including Droplet virtual machines, storage and networking offerings; Platform-as-a-Service (“PaaS”) and Software-as-a-Service (“SaaS”), including Managed Hosting, Managed Database, Managed Kubernetes and Marketplace offerings. The Company also offers a comprehensive artificial intelligence and machine learning (“AI/ML”) platform - DigitalOcean Gradient® AI Agentic Cloud, which includes Gradient AI Infrastructure with offerings such as GPU Droplets and Bare Metal GPUs; the Gradient AI Platform which offers various building block services including Large Language Models (“LLMs”); and Gradient AI Agents. The Company continues to invest in its platform to further penetrate the growing markets in which it operates.
The Company has adopted a holding company structure and the primary operations are performed globally through its wholly owned operating subsidiaries.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include accounts of the Company and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Prior Period Reclassification
Beginning in the fourth quarter of 2024, the Company reclassified personnel costs including salaries, bonuses, benefits, and stock-based compensation related to customer support employees, and certain other costs from sales and marketing and research and development to cost of revenue in order to better reflect the cost of supporting its growing customer base, and to improve comparability with peers. The Company reclassified $7,972 and $3,448 from sales and marketing and research and development, respectively, to cost of revenue for the year ended December 31, 2023. We believe this refined methodology better reflects the nature of the costs and financial performance of the Company as it operates.
As a result, the consolidated statements of operations have been recast for the year ended December 31, 2023 to reflect the effects of the changes in cost of revenue, gross profit, sales and marketing, research and development and total operating expenses. There was no change in income from operations, net income attributable to common stockholders or net income per share attributable to common stockholders for the year ended December 31, 2023 as a result of these reclassifications. The consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of changes in stockholders’ equity, and the consolidated statements of cash flows were not affected by changes in the presentation of these costs.
Use of Estimates
The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Such estimates include, but are not limited to, those related to revenue recognition, accounts receivable and related reserves, useful lives and realizability of long-lived assets, capitalized internal-use software development costs, accounting for stock-based compensation including estimation of forfeiture rates and the probability of performance vesting conditions, the incremental borrowing rate used to determine lease liabilities, valuation allowances against deferred tax assets, fair value of financial instruments, and the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are periodically reviewed to consider changes in circumstances, facts and experience.
Cash and Cash Equivalents
Cash and cash equivalents consist of highly liquid investments in money market funds.
Foreign Currency
The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company is USD, and the functional currency of the Company’s subsidiaries is primarily the local currency of the jurisdiction in which the foreign subsidiary is located. The assets and liabilities of the Company’s subsidiaries are translated to USD at exchange rates in effect at the balance sheet date. All income statement accounts are translated at monthly average exchange rates. Resulting foreign currency translation adjustments are recorded directly in accumulated other comprehensive loss.
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in interest income and other income, net on the consolidated statements of operations when realized.
Restricted Cash
The following table reconciles cash, cash equivalents and restricted cash per the consolidated statements of cash flows:
December 31,
20252024
Cash and cash equivalents$254,475 $428,446 
Restricted cash(1)
158 1,747 
Total cash, cash equivalents and restricted cash$254,633 $430,193 
___________________
(1)Restricted cash as of December 31, 2025 primarily consisted of deposits held with certain government agencies for local jurisdictional requirements. Restricted cash as of December 31, 2024 consisted of deposits in financial institutions related to a letter of credit used to secure a lease agreement; the funds were released to the Company in September 2025.
Accounts Receivable Net of Allowance for Expected Credit Losses
Accounts receivable primarily represents revenue recognized that was not invoiced at the balance sheet date and is primarily billed and collected in the following month. Trade accounts receivable are carried at the original invoiced amount less an estimated allowance for expected credit losses based on the probability of future collection. Management determines the adequacy of the allowance based on historical loss patterns, the number of days that customer invoices are past due, reasonable and supportable forecasts of future economic conditions to inform adjustments over historical loss data, and an evaluation of the potential risk of loss associated with specific accounts. When management becomes aware of circumstances that may further decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. The Company records changes in the estimate to the allowance for expected credit losses through provision for expected credit losses and reverses the accounts receivable and related allowance after the potential for recovery is considered remote.
The following table presents the changes in the allowance for expected credit losses for the period presented:
December 31,
20252024
Beginning balance$5,940 $5,848 
Provision for expected credit losses17,985 16,446 
Write-offs and other(17,551)(16,354)
Ending balance$6,374 $5,940 
Fair Value of Financial Instruments
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses due to their short-term nature.
Property and Equipment
Property and equipment is stated at cost, net of accumulated depreciation. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets and is included in depreciation and amortization expense in the consolidated statements of operations. The Company includes the amortization of assets that are recorded under finance leases and equipment financing obligations in depreciation expense.
The estimated useful lives of property and equipment are as follows:
Property and Equipment CategoryUseful Life
Servers and related equipment6 years
Furniture and fixtures5 years
Leasehold improvementsLesser of lease term or remaining useful life
Internal-use software3 years
Equipment under finance leasesLesser of lease term or remaining useful life
Equipment under financing obligations
6 years
Debt
Debt issuance costs incurred in connection with the issuance of each series of the Company’s convertible notes and Term Loan A are reflected in the consolidated balance sheets as a direct reduction to the carrying amount of the outstanding convertible notes and Term Loan A. These costs are amortized as interest expense using the effective interest rate method over the contractual term of the respective liability and are included within other income (expense), net on the consolidated statements of operations.
The Company considers all debt as long-term when contractual principal payments are due more than twelve months after the balance sheet date. Debt with contractual maturities due within twelve months of the balance sheet date is classified as current.
Operating Leases
The Company leases co-location space at data center facilities and, to a lesser extent, corporate offices, all of which are classified as operating leases. The Company determines if an arrangement is a lease at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities on the Company’s consolidated balance sheets.
ROU assets represent the Company’s right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the unpaid lease payments over the lease term. Lease payments used to measure lease liabilities include fixed lease payments at the lease commencement date, including rental escalation provisions. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the lease terms and economic environment at commencement date in determining the present value of future payments. The ROU asset is measured as the amount of the initial lease liability and adjusted for initial direct costs, lease payments made at or before the commencement date, and reduced by tenant incentives received. The Company does not include options for renewal periods or periods beyond the termination dates in the lease in the measurement of ROU assets and lease liabilities until it is reasonably certain that those options will be exercised based on management's assessment of various relevant factors including economic, entity specific, and market-based factors among others.
The Company has lease agreements with lease and non-lease components, which it has elected to combine for all asset classes. The non-lease components of operating leases primarily consist of power. Fixed payments for non-lease components are considered part of the lease component and included in the measurement of the ROU assets and liabilities, and variable payments are expensed as incurred. Variable lease payments generally relate to non-lease components above a contractual minimum fixed amount.
Lease expense for lease payments under operating leases are recognized on a straight-line basis over the lease term. The Company’s operating lease costs for co-location data center facilities are included in cost of revenue in the consolidated statements of operations and the operating lease costs for corporate offices are included in general and administrative expenses in the consolidated statements of operations. For leases with a term of 12 months or less (short-term leases), the Company elected to not recognize the ROU asset or lease liability and the lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term.
Finance Leases and Equipment Financing Obligations
The Company enters into finance leases for servers and related equipment. Finance lease ROU assets, net of amortization, are included in property and equipment, net, and finance lease liabilities are included in finance lease liabilities and equipment financing obligations on the Company’s consolidated balance sheets. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term. For leases classified as finance leases because there is a purchase option which the Company is reasonably certain to exercise, the finance lease ROU asset is amortized over the estimated useful life based on the property and equipment category of the asset. Interest expense for finance lease liabilities is recognized under the effective interest rate method based on the incremental borrowing rate.
The Company may also enter into arrangements to finance servers and related equipment. The Company continues to recognize the servers and related equipment in property, plant and equipment, net and the amount financed within equipment financing obligations on the Company’s consolidated balance sheets. Depreciation expense for equipment under financing obligations is recognized on a straight-line basis over a term of six years, and interest expense for equipment financing obligations is recognized under the effective interest rate method to ensure the liability at the end of the term of the arrangement equals to the exercise price of the purchase option.
The Company includes the amortization of assets that are recorded under finance leases and equipment financing obligations in depreciation expense in cost of revenue in the consolidated statements of operations. Interest expense is included in interest expense in the consolidated statements of operations.
Internal-Use Software
Capitalization of costs incurred in connection with software developed for internal use commences when both the preliminary project stage is completed and management has authorized further funding for the project, based on a determination that it is probable the project will be completed and used to perform the function intended. Capitalized costs include external consulting fees, payroll and payroll-related costs, and stock-based compensation for employees on development teams who are directly associated with, and who devote time to, internal-use software projects during the application development stage. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Costs incurred during the planning, training, and post-implementation stages of the software development lifecycle are expensed as incurred and have been included in research and development expenses in the consolidated statements of operations. Internal-use software also includes the cost paid to purchase software for internal use from a third party.
Impairment of Long-Lived Assets
Long-lived assets, including property and equipment, intangible assets with definite lives and ROU assets, are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
The Company did not incur impairment loss on its property and equipment, net for the year ended December 31, 2025 and recorded impairment loss on property and equipment, net of $815 for the year ended December 31, 2024. No impairment loss was recognized on property and equipment, net, for the year ended December 31, 2023. Impairment losses are generally included in research and development expense in the consolidated statements of operations. During the years ended December 31, 2025, 2024 and 2023, the Company recorded impairment losses of $52, $356 and $1,140, respectively, related to software that is no longer being used. These impairment losses are included in cost of revenue or research and development expenses in the consolidated statements of operations.
Business Combinations
The Company applies the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”), in accounting for acquisitions. ASC 805 requires that the Company evaluates whether a transaction pertains to an acquisition of assets or to an acquisition of a business. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the business acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of a business acquisition’s measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative in the consolidated statements of operations.
In addition, uncertain tax positions and tax related valuation allowances assumed in a business combination are initially estimated as of the acquisition date. Subsequent to the measurement period or the final determination of the tax allowance’s or contingency’s estimated value, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect the provision for income taxes in the Company’s consolidated statement of operations and could have a material impact on the results of operations and financial position.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill is an asset representing the future economic benefit arising from other assets acquired in a business combination which are not individually identified and separately recognized. Goodwill has resulted from prior acquisitions. As discussed in Note 4., goodwill was $348,674 as of December 31, 2025 and 2024, and represents the excess purchase price over the fair value of identifiable net assets acquired in business combinations. As of December 31, 2025, the Company has a single reporting unit.
Goodwill is reviewed for impairment on an annual basis as of October 1st of each year, or more frequently if a triggering event occurs. The Company performs an assessment of goodwill utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its respective carrying amount. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its respective carrying amount, a quantitative fair value test is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. In a quantitative impairment test, the Company compares the carrying amount of the reporting unit to its fair value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount of the reporting unit exceeds its fair value, up to the amount of goodwill of the reporting unit.
Indefinite-lived intangible assets consist of Internet Protocol (“IP”) addresses needed for customers to host their server online. The Company evaluates these indefinite-lived intangible assets for impairment on an annual basis as of October 1st of each year and whenever events or changes in circumstances indicate that an impairment may exist. Intangible assets with indefinite lives were $46,657 and $44,822 as of December 31, 2025 and 2024, respectively, and are included as intangible assets in the consolidated balance sheets.
The Company performs an assessment of indefinite-lived intangible assets utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the assets are less than its respective carrying amounts. If the Company concludes it is more likely than not that the fair value of the assets are less than its respective carrying amounts, a quantitative fair value test is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. 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 exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows.
No impairment charges for goodwill and indefinite-lived intangible assets have been recorded during the years ended December 31, 2025, 2024 or 2023.
Definite-Lived Intangible Assets
Intangible assets with definite lives consist of acquired developed technology, trade name, customer relationships, content and brand. Intangible assets with definite lives are stated at cost less accumulated amortization, and are amortized on a basis consistent with the timing and pattern of expected cash flows used to value the intangible asset, generally on a straight-line basis over the useful life of three to ten years. Intangible assets with definite lives were $52,847 and $72,896 as of December 31, 2025 and 2024, respectively, and are included as intangible assets in the consolidated balance sheets.
Revenue Recognition
The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”).
The Company accounts for revenue using the following steps:
1. Identify the contract with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to performance obligations in the contract
5. Recognize revenue when or as performance obligations are satisfied
The Company provides a comprehensive set of cloud platform capabilities, including IaaS, PaaS and SaaS offerings. The Company also provides a comprehensive AI/ML platform, DigitalOcean Gradient® AI Agentic Cloud, which includes Gradient AI Infrastructure, Gradient AI Platform and Gradient AI Agents. The Company recognizes revenue largely based on the customer utilization of these resources. Fees are billed monthly, and payment is typically due upon invoicing. Revenue is recognized net of allowances for credits and any taxes collected from customers.
The Company’s customer contracts are typically month-to-month and do not contractually bind customers to a specific usage or term. The Company also has a limited number of commitment contracts that require the customer to spend a minimum amount over the commitment term.
The Company’s global cloud platform is supported by various third parties. The Company considered the principal versus agent guidance in ASC 606 and concluded that it is the principal for all services provided to its customers.
The Company may offer sales incentives in the form of promotional and referral credits, and grant credits to encourage customers to use the Company’s services. These types of promotional and referral credits typically expire in two months or less if not used. For credits earned with a purchase, they are recorded as contract liabilities when earned and recognized at the earlier of redemption or expiration. The majority of credits are redeemed in the month they are earned.
Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers and is largely driven by customer usage. The Company records a receivable when revenue is recognized prior to invoicing. Any payments received in advance of billing are a contract liability, which is recorded as deferred revenue within total current liabilities on the consolidated balance sheets.
Cost of Revenue
Cost of revenue consists primarily of fees related to operating the Company’s data center facilities, personnel costs of employees providing customer support or operating facilities, and partnership expenses. Cost of revenue includes depreciation of the Company’s data center equipment and amortization of acquired technology and capitalized internal-use software development costs. Data center facility fees include data center rental fees, power costs, maintenance fees, network, bandwidth and ancillary equipment. Personnel costs include salaries, bonuses, benefits, and stock-based compensation.
Research and Development Expenses
Research and development expenses consist primarily of personnel costs including salaries, bonuses, benefits and stock-based compensation. Research and development expenses also include amortization of capitalized internal-use software development costs, which are amortized over three years, professional services, software, as well as costs related to the Company’s efforts to add new features to existing offerings, develop new offerings, and ensure the security, performance, and reliability of the Company’s global cloud platform.
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of personnel costs of the Company’s sales and marketing and customer success employees, including salaries, bonuses, benefits, commissions and stock-based compensation. Sales and marketing expenses also include costs for marketing programs, advertising, amortization of acquired customer relationships and purchased internal-use software used for sales and marketing purposes, professional services and software.
General and Administrative Expenses
General and administrative expenses consist primarily of personnel costs of the Company’s human resources, legal, finance and other administrative functions, including salaries, bonuses, benefits, and stock-based compensation. General and administrative expenses also include payment processing fees, provision for expected credit losses, professional services, software, business insurance, depreciation and amortization, rent and facilities costs, acquisition-related compensation, and other administrative costs.
Restructuring and other charges
The Company records restructuring expenses when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely, and employees who are impacted have been notified.
Restructuring and other charges consist primarily of personnel costs, such as notice period, employee severance payments and termination benefits, as well as stock-based compensation related to vesting of certain equity awards.
Advertising and Other Promotional Costs
Advertising and other promotional costs are expensed as incurred and are included in Sales and marketing on the consolidated statements of operations. Non-direct response advertising expenses were $9,651, $9,958 and $7,857 for the years ended December 31, 2025, 2024 and 2023, respectively.
Income Taxes
The Company accounts for income taxes pursuant to the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax assets and liabilities are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. Federal, state, and foreign income taxes are provided based on statutory rates.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed into law. The Tax Act requires an entity to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred (the period cost method) or (2) factoring such amounts into an entity’s measurement of its deferred taxes (“the deferred method”). The One Big Beautiful Bill Act (“OBBBA”) renames GILTI to Net Controlled Foreign Corporation (“CFC”) Tested Income (“NCTI”), modifies the general effective tax rate on GILTI to 12.6% and removes the deemed return on tangible assets deduction. The Company has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred using the period cost method.
The Company accounts for uncertainty in income taxes using a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate audit settlement.
The Company recognizes interest and penalties, if any, associated with income tax matters as part of income tax expense on the consolidated statements of operations and includes accrued interest and penalties with the related income tax liability in Other current liabilities on the consolidated balance sheets.
Concentration of Credit Risk
The amounts reflected in the consolidated balance sheets for cash and cash equivalents, restricted cash, and trade accounts receivable are exposed to concentrations of credit risk. Although the Company maintains cash and cash equivalents with multiple financial institutions, the deposits, at times, may exceed federally insured limits. The Company believes that the financial institutions that hold its cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these balances.
The Company’s customer base consists of a significant number of geographically dispersed customers. No customer represented 10% or more of accounts receivable, net as of December 31, 2025 and 2024. Additionally, no customer accounted for 10% or more of total revenue during the years ended December 31, 2025, 2024 and 2023, respectively.
Stock-Based Compensation
Compensation expense related to stock-based transactions, including employee, consultant, and non-employee director stock option awards, is measured based on fair value. Stock-based compensation expense is recognized net of estimated forfeitures in the consolidated statements of operations. Forfeiture rates are based on the forfeiture history by employee type and the Company’s expectations of future forfeiture activity. The Company reviews its forfeiture rate assumptions at least annually.
Stock Options
The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model. The option-pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of the Company’s common stock, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The assumptions used in the option-pricing model represent management’s best estimates.
Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company has limited trading history of its common stock at the time of issuing stock options, the Company estimates the expected volatility of its stock options at the grant date by taking the average historical volatility of a group of comparable publicly traded companies, as well as the Company’s historical volatility, over a period equal to the expected life of the options.
The Company determined the expected term based on the average period the stock options that were expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company did not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.
The Company uses the U.S. Treasury yield for its risk-free interest rate that corresponds with the expected term. The Company utilizes a dividend yield of zero, as the Company does not currently issue dividends, nor does the Company expect to do so in the future.
Stock-based compensation expense for stock options is recognized on a straight-line basis over the requisite service period.
Restricted Stock Units
The Company grants restricted stock units (“RSUs”) as incentive awards to its employees. RSUs are payable in shares of the Company’s common stock as the periodic vesting requirements are satisfied. The fair value of RSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. Stock-based compensation expense for RSUs is recognized on a straight-line basis over the requisite service period.
Performance-Based Restricted Stock Units
The Company grants performance-based restricted stock units (“PRSUs”) primarily to members of the executive team and, in limited instances, to other employees in connection with a specific transaction. PRSUs have vesting conditions based on pre-established performance goals of the Company. The fair value of PRSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. Stock-based compensation expense for PRSUs is recognized using the graded-vesting attribution method over the requisite service period.
At the end of each reporting period, the Company adjusts compensation expense for the PRSUs based on its best estimate of attainment of specified performance metrics. The cumulative effect on current and prior periods of a change in the estimated number of PRSUs that are expected to be earned during the performance period is recognized as an adjustment to stock-based compensation expense in the period of the revision.
Market-Based Restricted Stock Units
The Company has granted market-based restricted stock units (“MRSUs”) to its chief executive officer. MRSUs have vesting conditions based on the satisfaction of certain service conditions and the achievement of certain Company stock price goals during a five-year performance period. The fair value is determined based on the Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. This requires the input of assumptions, including the expected stock volatility, the risk-free interest rate, the expected dividend yield and discount for post-vesting restrictions, as applicable. Stock-based compensation expense for MRSUs is recognized over the requisite service period based on the graded-vesting attribution method regardless of whether the market condition is satisfied, provided that the requisite service period has been completed.
Employee Stock Purchase Plan
The Company offers an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees to purchase shares of the Company’s common stock at a discount. The fair value of awards under the ESPP is calculated at the beginning of each offering period. The Company estimates the fair value of the awards using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and the offering period. This fair value is then amortized on a straight-line basis over the offering period. Stock-based compensation expense is based on awards expected to be purchased at the beginning of the offering period, and therefore is reduced when participants withdraw during the offering period.
Net Income per Share Attributable to Common Stockholders
Basic and diluted net income or loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company has 10,000,000 shares of Preferred Stock that were authorized but never issued and outstanding. Holders of common stock are entitled to one vote per share. Under the two-class method, net income (loss) is attributed to common stockholders and participating securities based on their participation rights.
Basic earnings per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income or loss attributable to common stockholders, adjusted for interest expense on dilutive convertible notes, by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period.
Basic and diluted net income per common share attributable to common stockholders is presented in conformity with the treasury stock method required for stock-based compensation, and in conformity with the if-converted method required for convertible notes. Nonvested market and performance-based share awards are included in the weighted-average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods.
Potential shares related to certain of the Company’s outstanding restricted stock units were excluded because they were anti-dilutive, however, those potential shares could be dilutive in the future. Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share for periods in which the Company is in a loss position.
Recent Accounting Pronouncements – Adopted
In November 2024, the FASB issued Accounting Standards Update (“ASU”) No. 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20) ("ASU 2024-04"), which intends to clarify the conditions in which induced conversion applies to convertible debt by outlining three criteria that must be met for an entity to apply the induced conversion model. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption is permitted as of the beginning of a reporting period if an entity has also adopted ASU 2020-06 for that period. The Company early adopted ASU 2024-04 on July 1, 2025 on a prospective basis and applied the amendments in this ASU to the repurchase of the 2026 Convertible Notes. The early adoption had no impact on the Company’s accounting assessment. Refer to Note 7. Debt, to the consolidated financial statements for further details.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (“Topic 740”) - Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in ASU 2023-09 are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The Company adopted the standard on a prospective basis with an effective date for the year ended December 31, 2025. Refer to Note 14. Income Taxes to the consolidated financial statements for related disclosures.
Recent Accounting Pronouncements – Pending Adoption
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires that an entity breaks down expenses into specific categories, such as employee compensation and costs related to depreciation and amortization, as well as a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. Further, ASU 2024-03 requires disclosure of the total amount of selling expense and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in ASU 2024-03 are required to be adopted for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied on a prospective basis for financial statements issued after the adoption date, although retrospective application is permitted. The Company is currently evaluating the impact of adoption on its financial disclosures.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (“Topic 326”): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which amends Topic 326 to provide a practical expedient and an accounting policy election related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. Specifically, in developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendment should be applied on a prospective basis. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (“Subtopic 350-40”): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). ASU 2025-06 modernizes the accounting for internal-use software costs by increasing the operability of the recognition guidance considering different methods of software development. ASU 2025-06 is effective for the Company for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendment can be applied prospectively, retrospectively, or via a modified prospective transition method. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (“Topic 270”): Narrow-scope Improvements (“ASU 2025-11”). ASU 2025-11 enhances GAAP interim reporting by specifying required disclosures, establishing a disclosure principle for material post-year-end events, and clarifying the scope, types, and presentation of interim financial statements. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for entities other than public business entities. Early adoption is permitted. The amendment can be applied prospectively, retrospectively, or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the new standard; however, it does not expect that the standard will have a material impact on its consolidated financial statements and related disclosures.
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue Disaggregation
Based on the information provided to and reviewed by the Company’s Chief Executive Officer (“CEO”), its chief operating decision maker, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted based on the category of its customers. Customers are classified in categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period.
Beginning in the fourth quarter of 2025, the Company revised its customer category naming and classification into the following annual run-rate revenue (“ARR”) categories (customer spend in a month in whole dollars):
•Digital Native Enterprise (“DNE”) Customers: users that spend more than $500 in a month. DNE Customers include the following categories:
◦Above $6K and under $100K Customers: users that spend more than $500 and less than or equal to $8,333 in a month.
◦Above $100K and under $500K Customers: users that spend more than $8,333 and less than or equal to $41,667 in a month.
◦Above $500K and under $1M Customers: users that spend more than $41,667 and less than or equal to $83,333 in a month.
◦Above $1M Customers: users that spend more than $83,333 in a month.
•Developers: users that spend less than or equal to $500 in a month, except that users that spend less than or equal to $50 in a month and have been on the Company’s platform for three months or less are excluded.
Additionally, revenue from customers using certain legacy Bare Metal CPU offerings is reported in the Developers and other category from the former Scalers+ category. Prior periods have been recast to reflect the effect of these changes.
Revenue by customer ARR category, as determined based on the customers’ spend in a given month, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of RevenueAmount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Above $6K and under $100K Customers
$321,189 36 %$284,352 36 %$253,066 37 %
Above $100K and under $500K Customers
91,975 10 %77,902 10 %64,155 9 %
Above $500K and under $1M Customers
30,428 3 %25,327 3 %18,657 3 %
Above $1M Customers
96,250 11 %46,739 6 %29,422 4 %
Digital Native Enterprise Customers
539,842 60 %434,320 55 %365,300 53 %
Developers and other(2)
361,585 40 %346,295 45 %327,584 47 %
Total Revenue
$901,427 100 %$780,615 100 %$692,884 100 %
___________________
(1) May not recalculate due to rounding.
(2) Beginning in the fourth quarter of 2025, Developers and other includes revenue from users that spend less than or equal to $500 in a given month, revenue from certain legacy Bare Metal CPU offerings, miscellaneous revenue and other reserve adjustments. Prior periods have been recast to reflect the effect of this change.
Prior to the fourth quarter of 2025, the Company classified customers in the following categories (customer spend in a month whole dollars):
•Builders: users that spend more than $50 and less than or equal to $500 in a month.
•Scalers: users that spend more than $500 and less than or equal to $8,333 in a month.
•Scalers+: users that spend more than $8,333 in a month.
•Learners and Testers: users that spend less than or equal to $50 in a month. Learners are users that have been on the Company’s platform for more than three months. Testers are users that have been on the Company’s platform for three months or less.
Under the prior classification, revenue by customer category, as determined based on the customers’ spend in a given month, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Builders
$252,072 28 %$236,384 30 %$219,506 32 %
Scalers
321,404 36 %284,575 36 %253,336 37 %
Scalers+
231,050 26 %160,836 21 %122,543 18 %
Learners, Testers and Other(2)
96,901 10 %98,820 13 %97,499 13 %
Total$901,427 100 %$780,615 100 %$692,884 100 %
___________________
(1) May not recalculate due to rounding.
(2) Other includes miscellaneous revenue and other reserve adjustments.
Geographical Information
Revenue, as determined based on the Company’s customers’ billing address, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
North America$346,504 38 %$295,403 38%$256,142 37%
Europe243,063 28 %222,004 28%202,855 29%
Asia211,251 23 %182,391 23%162,505 24%
Rest of the world
100,609 11 %80,817 11%71,382 10%
Total$901,427 100 %$780,615 100%$692,884 100%
___________________
(1) May not recalculate due to rounding.
Revenue derived from customers in the United States was 33%, 32% and 30% of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively.
No country outside of the United States had revenue greater than 10% of total consolidated revenue in any period presented.
Deferred Revenue
Revenue recognized during the years ended December 31, 2025, 2024 and 2023, which was included in the deferred revenue balances at the beginning of each respective period, was $3,451, $3,645 and $3,674, respectively.
Remaining Performance Obligations
The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized in the consolidated financial statements. As of December 31, 2025, the aggregate transaction price allocated to the remaining performance obligations, which includes contracts with expected term of one year or less, is $134,085 with a weighted-average life of 2.0 years. As of December 31, 2025, the Company expects to recognize $72,799 of its remaining performance obligations as revenue over the next 12 months, with the remainder recognized thereafter over the remaining life of the contracts.
v3.25.4
Acquisitions, Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions, Goodwill and Intangible Assets Acquisitions, Goodwill and Intangible Assets
Paperspace Co.
On July 5, 2023, the Company acquired 100% of Paperspace for total cash consideration of $100,399, which was accounted for as a business combination. Included in the consideration paid was a contribution of $11,100 to an escrow account held by a third party on the Paperspace Acquisition Date to support certain post-closing indemnification obligations. During the year ended December 31, 2024, the indemnification period expired and the remaining indemnity escrow fund was distributed to the participating Paperspace stockholders in accordance with the acquisition agreement.
Acquisition and integration related costs consist of miscellaneous professional service fees and expenses for acquisition-related activities. The Company recognized approximately $5,745 of acquisition-related costs that were expensed in the year ended December 31, 2023.
Contingent compensation costs relate to payments due to certain Paperspace sellers for $10,120, which represents compensation for post-combination services because the payments are generally contingent on continuing employment of the Paperspace founders at each payment date. For the years ended December 31, 2024 and 2023, the Company recorded acquisition-related compensation expense of $5,985 and $4,135, respectively, included in general and administrative expenses in the accompanying consolidated statements of operations. All contingent compensation costs were paid during the year ended December 31, 2024.
The amount of Paperspace’s revenue and net loss included in the Company’s consolidated statements of Operations from the Paperspace Acquisition Date through December 31, 2023, was $6,350 and $18,914, respectively.
Cloudways Ltd.
On September 1, 2022, the Company acquired 100% of the outstanding equity interests of Cloudways for total cash consideration of $311,237, which was accounted for as a business combination.
Contingent compensation costs related to payments due to a Cloudways seller for $38,830, of which $14,652 was earned and paid during the year ended December 31, 2024. On October 30, 2024, the Cloudways seller resigned from the Company. In recognition of the Cloudways seller’s service to the Company, the Company made the remaining payment of $7,326 following the resignation date during the quarter ended December 31, 2024.
Goodwill
During the year ended December 31, 2025 there were no changes to the Company’s goodwill. Movements in goodwill during the year ended December 31, 2024 were as follows:
Balance at January 1, 2024
$348,322 
Measurement period adjustments(1)
352 
Balance at December 31, 2024$348,674 
___________________
(1)Represents measurement period adjustment of the purchase price of the Paperspace acquisition.
Intangible Assets, net
Intangible assets, net consisted of the following amounts:
December 31,
20252024
Asset Type
IP addresses$46,657 $44,822 
Developed technology62,330 62,323 
Customer relationships44,270 44,270 
Trade name9,800 9,800 
Content4,400 4,400 
Brand1,000 1,000 
Total carrying value$168,457 $166,615 
Accumulated Amortization
Developed technology$(38,718)$(27,094)
Customer relationships(21,368)(14,286)
Trade name(3,467)(2,517)
Content(4,400)(4,000)
Brand(1,000)(1,000)
Total accumulated amortization(68,953)(48,897)
Total intangible assets, net$99,504 $117,718 
Amortization expense was $20,057, $22,426 and $18,967 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the weighted-average estimated useful life of intangible assets is five years for developed technology, six years for customer relationships, and ten years for trade name. Brand and content are fully amortized as of December 31, 2025 and 2024, respectively. Amortization expense for the next five years and thereafter, based on valuations and determinations of useful lives, is expected to be as follows:
2026$19,657 
202717,557 
20289,198 
20293,902 
2030950 
Thereafter1,583 
Total estimated future intangible amortization expense$52,847 
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value of the Company’s financial assets measured on a recurring basis was as follows:
December 31, 2025
Level ITotal
Cash and cash equivalents:
Cash$57,363 $57,363 
Money market funds197,112 197,112 
Total Cash and cash equivalents$254,475 $254,475 
December 31, 2024
Level ITotal
Cash and cash equivalents:
Cash$79,378 $79,378 
Money market funds349,068 349,068 
Total Cash and cash equivalents$428,446 $428,446 
The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company had no Level 2 or Level 3 financial assets as of December 31, 2025 and 2024.
Interest income from investments was $11,310, $19,875 and $23,767 for the years ended December 31, 2025, 2024 and 2023, respectively.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
The Company reports financial instruments at fair value, with the exception of its convertible notes and Term Loan A (as defined in Note 7. Debt). The amortized cost of Term Loan A approximates fair value as of December 31, 2025.
Financial instruments that are not recorded at fair value on a recurring basis are measured at fair value on a quarterly basis for disclosure purposes. Refer to Note 7. Debt for the carrying values and estimated fair values of financial instruments not recorded at fair value.
v3.25.4
Balance Sheet Details
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details Balance Sheet Details
Property and equipment, net
Property and equipment, net consisted of the following:
December 31, 2025December 31, 2024
Servers and related equipment
$933,576 $833,893 
Equipment under finance leases and financing obligations(1)
144,819 12,138 
Internal-use software121,735 94,981 
Leasehold improvements412 6,985 
Furniture and fixtures262 1,558 
Property and equipment, gross$1,200,804 $949,555 
Less: accumulated depreciation(1)
$(524,829)$(439,664)
Less: accumulated amortization
(86,881)(77,347)
Property and equipment, net $589,094 $432,544 
___________________
(1) Includes $13,316 and $12,138 of gross value and $11,502 and $7,847 of accumulated amortization of equipment under finance leases as of December 31, 2025 and 2024, respectively.
Depreciation expense on property and equipment was $107,255, $99,701 and $90,466 for the years ended December 31, 2025, 2024 and 2023, respectively.
Capitalized costs related to the development and purchase of computer software for internal use were $27,410, $11,167 and $6,958 for the years ended December 31, 2025, 2024 and 2023 respectively, which is included in internal-use software costs within property and equipment, net. Amortization expense related to internal-use software was $10,138, $7,925 and $8,433 for the years ended December 31, 2025, 2024 and 2023 respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
December 31, 2025December 31, 2024
VAT and sales tax receivable
$27,934 $18,621 
Prepaid rent
26,114 3,010 
Prepaid expenses
22,396 17,544 
Other current assets
5,154 1,611 
 Total prepaid expenses and other current assets$81,598 $40,786 
Accrued Other Expenses
Accrued other expenses consisted of the following:
December 31, 2025December 31, 2024
Accrued bonus
$18,779 $14,599 
Other accrued expenses
17,532 16,857 
Accrued capital expenditures3,731 3,788 
Accrued payroll costs
2,637 2,912 
Total accrued other expenses
$42,679 $38,156 
Other Current Liabilities
Other current liabilities consisted of the following:
December 31, 2025December 31, 2024
Sales and other taxes payable $57,454 $39,847 
Other current liabilities9,100 3,163 
Employee contributions under ESPP877 492 
Excise taxes related to repurchase of common stock79 — 
 Total other current liabilities $67,510 $43,502 
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
2030 Convertible Notes
On August 14, 2025, the Company issued $625,000 aggregate principal amount of 0.00% Convertible Senior Notes due 2030 (“2030 Convertible Notes”) in a private offering, including the exercise in full of the option granted to the initial purchasers to purchase an additional $75,000 principal amount of the 2030 Convertible Notes. The net proceeds from this offering were $606,130 after deducting underwriting fees, expenses and other debt issuance costs of $18,870. The 2030 Convertible Notes are senior unsecured obligations of the Company and do not bear regular interest, and the principal amount of the 2030 Convertible Notes does not accrete. Special interest and additional interest, if any, will be payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2026 (if and to the extent that special interest and/or additional interest is then payable on the 2030 Convertible Notes). The 2030 Convertible Notes will mature on August 15, 2030, unless earlier converted, redeemed or repurchased.
The 2030 Convertible Notes do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries.
The following table presents details of the 2030 Convertible Notes:
Initial Conversion Rate per $1,000 PrincipalInitial Conversion Price
(In whole $)		Initial Number of Shares
 (In thousands)
2030 Convertible Notes25.5317$39.17 15,957
Holders may convert the 2030 Convertible Notes at their option only in the following circumstances:
(1) during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on December 31, 2025, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;
(2) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10     consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2030 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day;
(3) if the Company calls the 2030 Convertible Notes for redemption; and
(4) upon the occurrence of certain corporate events or distributions of the Company’s common stock, as described in the indenture governing the 2030 Convertible Notes.
On or after May 15, 2030 until the close of business on the scheduled trading day immediately before the maturity date, holders may convert, all or any portion of their 2030 Convertible Notes at any time, in multiples of $1,000 principal amount, at their option regardless of the foregoing circumstances. Upon conversion, the Company will satisfy the conversion obligation by paying or delivering, as applicable, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election.
During the year ended December 31, 2025, none of the circumstances allowing holders to convert the 2030 Convertible Notes were met. Since the Company has the election of settling any conversion of the 2030 Convertible Notes in cash, shares of its common stock, or a combination of both, the 2030 Convertible Notes have been classified as a noncurrent liability in the consolidated balance sheets as of December 31, 2025.
The Company may not redeem the 2030 Notes prior to August 15, 2028. The Company may redeem, in whole or in part (subject to certain limitations described below), at its option at any time, and from time to time, on a redemption date on or after August 15, 2028 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2030 Convertible Notes to be redeemed, plus accrued and unpaid special interest and additional interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. However, the Company may not elect to redeem less than all of the outstanding 2030 Convertible Notes unless at least $100,000 aggregate principal amount of 2030 Convertible Notes are outstanding and not subject to redemption as of the time the Company sends the related redemption notice.
In the event of a corporate event that constitutes a “fundamental change" (as defined in the indenture governing the 2030 Convertible Notes), holders of the 2030 Convertible Notes will have the right, at their option to require the Company to repurchase for cash all or any portion of the 2030 Convertible Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the 2030 Convertible Notes, plus any accrued and unpaid special interest and additional interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date, or if the Company issues a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2030 Convertible Notes in connection with such corporate event or notice of redemption, as the case may be.
2030 Capped Calls
In connection with the pricing and exercise in full by the initial purchasers of their option to purchase additional 2030 Convertible Notes, the Company entered into capped call transactions with one or more financial institutions, including an affiliate of an Initial Purchaser (“2030 Capped Calls”). The 2030 Capped Calls have an initial strike price of $39.17 per share, which corresponds to the initial conversion price of the 2030 Convertible Notes. The 2030 Capped Calls have an initial cap price of $66.51 per share, which represents a premium of 125% over the last reported sale price of the Company’s common stock of $29.56 per share on the New York Stock Exchange on August 11, 2025. The 2030 Capped Calls are generally expected to reduce the potential dilution to the Company’s common stock upon any conversion of the 2030 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2030 Convertible Notes, with such reduction and/or offset subject to the cap price. The strike price, cap price and other terms of the 2030 Capped Calls are subject to certain adjustments under the terms of the capped call transactions.
For accounting purposes, the 2030 Capped Calls are separate transactions, and not part of the terms of the 2030 Convertible Notes. As the 2030 Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholders’ equity in the consolidated balance sheets, premium paid for the purchase of the 2030 Capped Calls of $83,875 was recorded as a reduction to additional paid-in capital and retained earnings on the consolidated balance sheets and will not be remeasured. The Company recorded a deferred tax asset of $18,804 during the year ended December 31, 2025, as it made an income tax election allowable under Internal Revenue Service (“IRS”) regulations to recover the cost of the Capped Calls as interest expense for income tax purposes over the term of the 2030 Convertible Notes.
As of December 31, 2025, all of the 2030 Capped Calls remain outstanding.
2025 Credit Facility
On May 5, 2025, the Company entered into a credit agreement (the “Credit Agreement”) by and among the Company, its wholly owned subsidiary, DigitalOcean, LLC, as borrower (the “Borrower”), with Morgan Stanley Senior Funding, Inc., as administrative agent (in such capacity, the “Agent”), and the lenders party thereto (the “Lenders”). The Credit Agreement provides for a $500,000 senior secured delayed draw term loan facility (“Term Loan Facility”, and any loans thereunder “Term Loans”) and a $300,000 senior secured revolving credit facility (“Revolving Facility”, and any loans thereunder “Revolving Loans”) which includes a $30,000 sublimit for the issuance of letters of credit (collectively the “2025 Credit Facility”). The Term Loan Facility and Revolving Facility mature on May 5, 2030, and are subject to a springing maturity date in the event certain conditions occur as described in the Credit Agreement. Revolving Loans may be borrowed, repaid and reborrowed, until their maturity date. Term Loans may be borrowed between May 5, 2025 and February 5, 2026 and once borrowed and repaid, cannot be reborrowed.
The Term Loans and Revolving Loans bear interest, at the Company’s option, at a rate equal to either (i) term SOFR, plus an applicable margin ranging from 1.25% to 2.25% per annum based on the total net leverage ratio (as defined in the Credit Agreement), or (ii) a base rate equal to the highest of (x) the federal funds rate plus 0.50%, (y) the prime rate and (z) term SOFR for an interest period of one month plus 1.00%, plus an applicable margin ranging from 0.25% to 1.25% per annum based on the total net leverage ratio. Undrawn commitments under the Revolving Credit Facility and the Term Loan Facility are subject to a commitment fee ranging from 0.175% to 0.35% per annum based on the total net leverage ratio on the average daily unused portion of such commitment that is available to the Borrower. Commencing on June 30, 2026, payments will be made in equal quarterly installments based on 1.25% of the funded amount of the Term Loans.
The Credit Agreement includes customary representations, warranties, and affirmative and negative covenants, including financial covenants that require the Company to maintain certain levels of total net leverage ratio and interest coverage ratio. The negative covenants include restrictions on liens, investments, indebtedness, fundamental changes, asset dispositions, dividend payments and other restricted payments, transactions with affiliates, prepayments of subordinated debt and other matters, all subject to certain exceptions. The obligations under the Credit Agreement are required to be guaranteed by the Company and certain of the Company’s material domestic subsidiaries and are secured by substantially all of the assets of the Company, the Borrower and such subsidiary guarantors, subject to customary exceptions. The initial guarantors as of the closing under the Credit Agreement include the Company and Paperspace Co. The Credit Agreement also includes customary events of default. Upon the occurrence and during the continuance of an event of default, the Lenders may terminate their commitments and accelerate any outstanding obligations under the Credit Agreement and may exercise certain other rights and remedies provided for under the Credit Agreement, the other loan documents and applicable law. As of December 31, 2025, the Company was in compliance with all covenants under the 2025 Credit Facility.
The proceeds of the Term Loan Facility may only be used to repurchase, repay, acquire or otherwise settle a portion of the 2026 Convertible Notes and to pay related premiums, fees and expenses in connection therewith. On August 14, 2025, the Company drew down $380,000 on its Term Loan Facility (“Term Loan A”). The proceeds of Term Loan A were used to repurchase a portion of the Company’s 2026 Convertible Notes in August 2025, and to pay related fees and expenses in connection therewith. Issuance costs allocated to the drawn portion of the Term Loan Facility of $2,897 were reclassified as a contra-liability upon drawdown, and are amortized over the remaining term of the Term Loan Facility. As of December 31, 2025, the Company had $120,000 available for borrowing under the Term Loan Facility. Subsequent to December 31, 2025, the Company drew down the remaining available principal under the Term Loan Facility of $120,000 and received the proceeds in February 2026. As of February 24, 2026, no further borrowing capacity remains under the Term Loan Facility.
The proceeds of the Revolving Facility may be used for working capital, capital expenditures, permitted acquisitions, refinancing of any indebtedness and other general corporate purposes. Issuance costs allocated to the Revolving Facility of $1,986 are recognized as debt issuance costs in other assets within the consolidated balance sheets, and are amortized over the remaining term of the 2025 Credit Facility. As of December 31, 2025, the Company has not made drawdowns on the Revolving Facility.
2026 Convertible Notes
In November 2021, the Company issued $1,500,000 aggregate principal amount of convertible notes (“2026 Convertible Notes”) in a private offering, including the exercise in full of the over-allotment option granted to the initial purchasers of $200,000. The 2026 Convertible Notes are senior unsecured obligations of the Company and do not bear interest, and the principal amount of the 2026 Convertible Notes does not accrete. The net proceeds from this offering were $1,461,795 after deducting underwriting fees, expenses and commissions.
Each $1 of principal of the 2026 Convertible Notes will initially be convertible into 5.6018 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $178.51 per share, subject to adjustment as set forth in the indenture governing the Convertible Notes. Holders of the 2026 Convertible Notes may convert their 2026 Convertible Notes at their option at any time prior to the close of the business day immediately preceding June 1, 2026, only under the following circumstances:
(1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2022, if the last reported sale price of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter on each applicable trading day;
(2) during the five business day period after any ten consecutive trading day period (such ten consecutive trading day period, the “measurement period”) in which the trading price of the 2026 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the common stock on such trading day and the conversion rate on such trading day;
(3) if the Company calls such 2026 Convertible Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; and
(4) upon the occurrence of specified corporate events or distributions on the common stock.
On or after June 1, 2026 until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Convertible Notes at the option of the holder regardless of the foregoing circumstances.
Upon conversion of the 2026 Convertible Notes, the Company will pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election.
The Company may redeem for cash all or any portion of the 2026 Convertible Notes, at its option, on or after December 2, 2024 and on or before the 25th scheduled trading day immediately before the maturity date, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price then in effect on each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Convertible Notes to be redeemed, plus any accrued and unpaid special interest and additional interest, if any, to, but excluding, the redemption date.
On August 14, 2025, the Company repurchased approximately $1,187,678 aggregate principal amount of the 2026 Convertible Notes for approximately $1,131,458 in cash from the proceeds under the 2030 Convertible Notes and Term Loan A and wrote-off $7,847 related issuance costs. The repurchase was accounted as an extinguishment resulting in a gain on extinguishment of debt of $48,373 recorded in other income, net on the Company’s consolidated statements of operations during the year ended December 31, 2025. The outstanding principal of $312,322 of the 2026 Convertible Notes will mature on December 1, 2026 unless earlier converted, redeemed, or repurchased. As of December 31, 2025, the 2026 Convertible Notes were classified as current liabilities on the Company’s consolidated balance sheets.
During the year ended December 31, 2025, none of the circumstances allowing holders to convert the 2026 Convertible Notes were met.
Upon the occurrence of a fundamental change (as defined in the indenture governing the 2026 Convertible Notes), subject to certain conditions, holders may require the Company to repurchase all or a portion of the 2026 Convertible Notes for cash at a price equal to 100% of the principal amount of the 2026 Convertible Notes to be repurchased, plus any accrued and unpaid special interest and additional interest, if any, to, but excluding, the fundamental change repurchase date.
2022 Credit Facility    
In February and March 2020, the Company entered into and subsequently amended a second amended and restated credit agreement with KeyBank National Association as administrative agent. In November 2021, the Company further amended such credit agreement to revise certain covenants that restricted the incurrence of indebtedness to permit the issuance of the 2026 Convertible Notes. In March 2022, the Company entered into a third amended and restated credit agreement (“2022 Credit Facility”) to, among other modifications, increase the maximum borrowing limit to $250,000. On May 5, 2025, upon entry into the 2025 Credit Facility described above, the Company terminated its 2022 Credit Facility.
Debt, Long-term
The net carrying amount of the Company’s 2030 Convertible Notes, borrowings under the 2025 Credit Facility and the 2026 Convertible Notes consisted of the following:
Outstanding as of
December 31, 2025December 31, 2024
2030 Convertible Notes
$625,000 $— 
2026 Convertible Notes
312,322 1,500,000 
Term Loan A
380,000 — 
Total obligations
1,317,322 1,500,000 
Unamortized debt issuance costs(21,560)(14,634)
Carrying value of debt
1,295,762 1,485,366 
Less: Debt, current
(325,109)— 
Debt, long-term
$970,653 $1,485,366 
As of December 31, 2025, the total fair value of the 2030 Convertible Notes was $893,797, and the fair value of the 2026 Convertible Notes was $301,406. The fair value was determined based on the closing trading price as of the last day of trading for the period. The Company classifies the fair value to be a Level 2 valuation within the fair value measurement hierarchy due to the limited trading activity.
Issuance costs are amortized to interest expense over the contractual term of the respective borrowing. Contractual interest expense consists of commitment fees and cash interest expense under the Company’s credit facilities. Interest expense related to the Company’s convertible notes and credit facilities consisted of the following:
Year Ended December 31,
202520242023
Contractual interest expense$9,150 $508 $506 
Amortization of debt issuance costs7,418 7,987 7,949 
Future principal payments of the Company’s debt as of December 31, 2025 were as follows:
2026$326,572 
202719,000 
202819,000 
202919,000 
2030933,750 
Total future payments$1,317,322 
v3.25.4
Operating Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Operating Leases Operating Leases
The Company leases co-location space at data center facilities and, to a lesser extent, corporate offices, all of which are classified as operating leases. The operating leases generally have initial lease terms ranging from three to ten years, which includes any option to renew or terminate the lease when it is reasonably certain that the option will be exercised.
The components of operating lease expense were as follows:
December 31,
202520242023
Operating lease expense$116,713 $89,831 $80,639 
Variable lease expense10,365 8,653 11,317 
Short-term lease expense335 37 418 
Total operating lease expense
$127,413 $98,521 $92,374 
Weighted-average remaining lease term and discount rate were as follows:
December 31,
20252024
Weighted-average remaining lease term (in years)3.43.8
Weighted-average discount rate6%6%
For the year ended December 31, 2025, the Company recognized $838 in sublease income for operating leases. For the years ended December 31, 2024 and 2023, the Company recognized $1,677 in sublease income for operating leases. Sublease income is recorded as a reduction to general and administrative expenses in the consolidated statements of operations.
Maturities of operating lease liabilities as of December 31, 2025 were as follows:
2026$119,171 
202785,241 
202835,318 
202925,004 
203020,154 
Thereafter17,538 
Total undiscounted operating lease liabilities
302,426
Less: Imputed interest(27,494)
Total present value of operating lease liabilities
274,932
Less: Current portion of operating lease liabilities
(108,037)
Operating lease liabilities, long-term
$166,895 
As of December 31, 2025, the Company had $599,408 of estimated undiscounted fixed payment obligations primarily for leases of co-location space at data center facilities that have not yet commenced and were not included in the consolidated balance sheets. These leases are scheduled to commence between January 2026 and April 2026, and have a weighted-average lease term of 9.6 years.
Operating Leases Operating Leases
The Company leases co-location space at data center facilities and, to a lesser extent, corporate offices, all of which are classified as operating leases. The operating leases generally have initial lease terms ranging from three to ten years, which includes any option to renew or terminate the lease when it is reasonably certain that the option will be exercised.
The components of operating lease expense were as follows:
December 31,
202520242023
Operating lease expense$116,713 $89,831 $80,639 
Variable lease expense10,365 8,653 11,317 
Short-term lease expense335 37 418 
Total operating lease expense
$127,413 $98,521 $92,374 
Weighted-average remaining lease term and discount rate were as follows:
December 31,
20252024
Weighted-average remaining lease term (in years)3.43.8
Weighted-average discount rate6%6%
For the year ended December 31, 2025, the Company recognized $838 in sublease income for operating leases. For the years ended December 31, 2024 and 2023, the Company recognized $1,677 in sublease income for operating leases. Sublease income is recorded as a reduction to general and administrative expenses in the consolidated statements of operations.
Maturities of operating lease liabilities as of December 31, 2025 were as follows:
2026$119,171 
202785,241 
202835,318 
202925,004 
203020,154 
Thereafter17,538 
Total undiscounted operating lease liabilities
302,426
Less: Imputed interest(27,494)
Total present value of operating lease liabilities
274,932
Less: Current portion of operating lease liabilities
(108,037)
Operating lease liabilities, long-term
$166,895 
As of December 31, 2025, the Company had $599,408 of estimated undiscounted fixed payment obligations primarily for leases of co-location space at data center facilities that have not yet commenced and were not included in the consolidated balance sheets. These leases are scheduled to commence between January 2026 and April 2026, and have a weighted-average lease term of 9.6 years.
v3.25.4
Finance Leases and Equipment Financing Obligations
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Finance Leases and Equipment Financing Obligations Finance Leases and Equipment Financing Obligations
As part of the Paperspace acquisition, the Company recognized finance leases for data center equipment. As of December 31, 2025, the Company had $1,652 in current and $287 in long-term liabilities for equipment under finance leases on the consolidated balance sheets. The Company’s finance leases have original lease periods expiring between February 2026 and March 2028.
During the year ended December 31, 2025, the Company entered into arrangements with a third-party financial institution for $131,503 of acquired servers and related equipment resulting in equipment financing obligations of $131,503, which are included in finance lease liabilities and equipment financing obligations on the consolidated balance sheets. The Company did not enter into any such arrangements during the year ended December 31, 2024.
Weighted-average remaining term and discount rate of finance lease liabilities and equipment financing obligations were as follows:
December 31,
20252024
Weighted-average remaining term (in years)
3.91.4
Weighted-average discount rate7%8%
Maturities of finance lease liabilities and equipment financing obligations of December 31, 2025 were as follows:
2026$39,240 
202737,796 
202837,592 
202933,708 
Total undiscounted finance lease liabilities and equipment financing obligations
148,336
Less: Imputed interest(17,822)
Total present value of finance lease liabilities and equipment financing obligations
130,514
Less: Finance lease liabilities and equipment financing obligations, current
(31,411)
Finance lease liabilities and equipment financing obligations, long-term
$99,103 
Subsequent to December 31, 2025, the Company entered into finance leases for servers and related equipment with total estimated undiscounted payments of $60,698, a lease term of 4.0 years, and a commencement date in January 2026
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments
As of December 31, 2025, the Company had long-term commitments and purchase orders with various software license, bandwidth, network services and third-party license vendors. The total minimum future commitments as of December 31, 2025 were as follows:
2026$20,174 
202720,227 
2028622 
Total purchase commitments$41,023 
Letter of Credit
In conjunction with the execution of an office space operating lease, a letter of credit in the aggregate amount of $1,747 was issued and outstanding as of December 31, 2024. No draws have been made under such letter of credit. These funds were included as restricted cash on the consolidated balance sheets as they were related to a long-term operating lease. As of December 31, 2025, no letter of credit remained as the funds were released to the Company in September 2025.
Legal Proceedings
The Company may be involved in various legal proceedings and litigation arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate disposition of any such litigation matters, the Company believes that any such legal proceedings will not have a material adverse effect on its consolidated financial position, results of operations, or liquidity.
v3.25.4
Stockholders’ Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Common Stock
The Company’s amended and restated certificate of incorporation authorizes the issuance of common and preferred stock. Holders of common stock are entitled to one vote per share. As of December 31, 2025 and 2024, the Company was authorized to issue 750,000,000 shares of common stock with a par value of $0.000025 per share.
Preferred Stock
In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of preferred stock with a par value of $0.000025 per share with rights and preferences, including voting rights, designated from time to time by the Company’s Board of Directors. No shares of preferred stock were issued or outstanding as of December 31, 2025 and 2024.
Share Buyback Program
On February 20, 2024, the Company’s Board of Directors approved the repurchase of up to an aggregate of $140,000 of its common stock (“2024 Share Buyback Program”), which was completed in July 2025.
On August 11, 2025, the Company adopted a new stock repurchase program authorizing the repurchase of up to $100,000 of its common stock (“2025 Share Buyback Program”). Pursuant to the 2025 Share Buyback Program, repurchases of the Company’s common stock will be made at prevailing market prices through open market purchases, in negotiated transactions off the market or otherwise, including through Rule 10b5-1 plans. The 2025 Share Buyback Program will expire on July 31, 2027; however, the Company is not obligated to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion.
During the year ended December 31, 2025, the Company repurchased and retired 2,356,547 shares of common stock for an aggregate purchase price of $82,124, which excludes a 1% excise tax on net share repurchases imposed under the Inflation Reduction Act. All purchased shares were retired and are reflected as a reduction of common stock for the par value of shares, with the excess applied to additional paid-in capital.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plan
In March 2021, the Company’s Board of Directors adopted, and the stockholders approved, the 2021 Equity Incentive Plan (“2021 Plan”). The 2021 Plan is a successor to and continuation of the 2013 Stock Plan. The 2021 Plan became effective on the date of the IPO with no further grants being made under the 2013 Stock Plan, however, awards outstanding under the 2013 Stock Plan will continue to be governed by their existing terms. The 2021 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, RSUs, PRSUs, MRSUs and other awards to employees, directors, and consultants. Shares issued pursuant to the exercise of these awards are transferable by the holder. There were 25,197,755 shares available for grant under the 2021 Plan as of December 31, 2025.
Stock Options
Stock options granted have a maximum term of ten years from the grant date, are exercisable upon vesting and typically vest over a period of four years. Stock option activity for the year ended December 31, 2025 was as follows:
Number of Options OutstandingWeighted-Average Exercise Price
(Per share)		Weighted-Average Remaining Life
(In years)		Aggregate Intrinsic Value
(In thousands)
Outstanding at January 1, 20251,425,656 $12.17 5.2$31,223 
Exercised(452,638)9.59 
Forfeited or cancelled(12,539)13.92 
Outstanding at December 31, 2025960,479 $13.36 4.3$33,385 
Vested and exercisable at December 31, 2025960,479 $13.36 4.3$33,385 
The aggregate intrinsic value represents the difference between the fair value of common stock and the exercise price of outstanding in-the-money options. The aggregate intrinsic value of exercised options for the years ended December 31, 2025, 2024 and 2023 was $12,475, $51,479 and $156,819, respectively.
No options were granted and vested during the year ended December 31, 2025. The aggregate estimated fair value of stock options granted to participants that vested during the years ended December 31, 2024 and 2023 was $6,001 and $12,888, respectively.
As of December 31, 2025, there was no unrecognized stock-based compensation, net of estimated forfeitures, related to outstanding stock options granted.
RSUs
RSUs granted typically vest over four years. RSU activity for the year ended December 31, 2025 was as follows:
SharesWeighted-Average Grant Date Fair Value
 (Per share)
Unvested balance at January 1, 20255,215,300 $36.40 
Granted2,714,355 36.87 
Vested(2,173,661)37.15 
Forfeited or cancelled(1,299,849)35.91 
Unvested balance at December 31, 20254,456,145 $36.46 
Vested and expected to vest at December 31, 20253,664,193 $36.34 
As of December 31, 2025, there was $123,535 of unrecognized stock-based compensation, net of estimated forfeitures, related to outstanding RSUs granted that is expected to be recognized over a weighted-average period of 2.7 years.
PRSUs
The Company has issued PRSUs which vest based on the achievement of each award’s established performance targets. PRSU activity for the year ended December 31, 2025 was as follows:
SharesWeighted-Average Grant Date Fair Value
(Per share)
Unvested balance at January 1, 2025183,919 $36.09 
Granted436,972 30.75 
Vested(58,692)35.51 
Forfeited or cancelled(158,616)30.75 
Adjusted by performance factor(88,865)36.48 
Unvested balance at December 31, 2025314,718 $31.37 
Vested and expected to vest at December 31, 2025312,900 $31.37 
The Company grants Long Term Incentive Plan (“LTIP”) PRSUs to certain executives of the Company typically during the first half of each fiscal year. A percentage of the LTIP PRSUs becomes eligible to vest based on the Company’s financial performance level at the end of each fiscal year. The number of LTIP PRSUs received will depend on the achievement of financial metrics relative to the approved performance targets. Depending on the actual financial metrics achieved relative to the target financial metrics throughout the defined performance period of the award, the number of LTIP PRSUs that vest could range from 0% to 200% of the target amount and are subject to the Compensation Committee’s approval of the level of achievement against the approved performance targets.
Assuming the minimum performance level is achieved, one-third of the aggregate number of the achieved LTIP PRSUs shall vest on the later of (i) March 1 of the year after grant or (ii) two trading days following the public release of the Company’s financial results, and the remainder shall vest in eight equal quarterly installments subject, in each case, to the individual’s continuous service through the applicable vesting date.
On April 11, 2024, the Company granted an LTIP PRSU award (“2024 LTIP PRSU”). The financial performance level under the PRSUs was equal to the sum of the attainment of revenue targets weighted at 75% and adjusted free cash flow margin targets weighted at 25%. On February 18, 2025, the Company determined that the 2024 LTIP PRSU was achieved at 94.8% of the target amount. This resulted in a performance factor reduction of 88,865 shares from the original maximum shares achievable of 168,944. The target shares granted under the 2024 LTIP PRSU was 84,472.
On April 25, 2025, the Company granted LTIP PRSU awards (“2025 LTIP PRSUs”). The financial performance level under the 2025 LTIP PRSUs can be attained based on the achievement of certain ARR and adjusted free cash flow margin targets. Under the 2025 LTIP PRSUs, 75% of the awards can be achieved based on the ARR targets and 25% of the awards can be achieved based on the adjusted free cash flow margin targets. The target shares granted under the 2025 LTIP PRSUs were 218,486. The actual number of shares that are received under the 2025 LTIP PRSUs may be higher or lower than the target shares based on the actual financial metrics achieved relative to the target financial metrics for fiscal year 2025, with the maximum number of achievable shares of 436,972.
As of December 31, 2025, there was $2,356 of unrecognized stock-based compensation related to LTIP PRSUs that is expected to be recognized over a weighted-average period of 2.1 years.
MRSUs
On February 12, 2024, Padmanabhan Srinivasan joined the Company in the role of CEO. As part of his compensation package, Mr. Srinivasan received an MRSU award with an estimated grant date fair value of approximately $8,000, which vests upon the satisfaction of certain service conditions and the achievement of certain Company stock price goals during a five year performance period, as described below. A cumulative percentage of the MRSU target is earned based on the achievement of stock price goals, measured based on the average of the Company’s closing stock price over a consecutive 60 trading day period during the performance period as set forth in the table below:
TrancheCompany Stock Price TargetTotal Payout
1$65.00
25% of Target MRSUs
2$100.00
50% of Target MRSUs
3$135.00
100% of Target MRSUs
4$170.00
150% of Target MRSUs
The target number of achievable shares is 193,178 and the maximum number of achievable shares is 289,767, with a weighted-average grant date fair value of $27.61 per share. There will be no pro-rata or straight-line interpolation vesting for achievement of a stock price target between the stock price targets, except in the event of a qualifying termination.
If the stock price targets are achieved during the first three years following the grant date (“First Performance Period”), 50% of the eligible MRSUs will vest on the third anniversary of the grant date and the remaining 50% of the eligible MRSUs will vest on the fifth anniversary of the grant date. Each tranche of MRSUs whose stock price target was not achieved during the First Performance Period that is subsequently achieved during the period between the third anniversary of the grant date and fifth anniversary of the grant date will vest on the fifth anniversary of the grant date.
Total unvested balance of MRSUs is 289,767 as of December 31, 2025 and 2024.
The following assumptions were used in the Monte Carlo simulation model to estimate the grant date fair value and the derived service period of the MRSUs:
Expected volatility71.3%
Expected term (in years)
5.0
Risk-free interest rate4.1%
Dividend yield—%
Stock price at grant date (per share)
$39.43
Weighted-average fair value of awards (per share)
$27.61
As of December 31, 2025, there was $3,983 of unrecognized stock-based compensation related to the MRSU award that is expected to be recognized over a weighted-average period of 3.2 years.
ESPP
In March 2021, the Company’s Board of Directors adopted, and the stockholders approved, the 2021 Employee Stock Purchase Plan (“ESPP”). Eligible employees enroll in the offering period at the start of each purchase period, whereby they may purchase a number of shares at a price per share equal to 85% of the lesser of (1) the stock price at the employee’s first participation in the offering period or (2) the fair market value of the Company’s common stock on the purchase date. The Company’s current offering period began on May 21, 2025 and is expected to end on May 20, 2026. There were 5,120,628 shares available for grant under the ESPP as of December 31, 2025. The Company recorded stock-based compensation associated with the ESPP of $2,312, $1,676 and $2,290 for the years ended December 31, 2025, 2024 and 2023, respectively.
Stock-Based Compensation
Stock-based compensation is included in the consolidated statements of operations as follows:
Year Ended December 31,
202520242023
Cost of revenue(1)
$5,435 $5,889 $5,685 
Research and development(1)
34,939 38,285 42,040 
Sales and marketing(1)
11,646 10,093 13,177 
General and administrative (2)
28,295 36,278 23,508 
Restructuring and other charges— — 3,937 
Total$80,315 $90,545 $88,347 
___________________
(1) Amounts for the year ended December 31, 2023 have been recast to conform with current period presentation. Refer to Note 2. Summary of Significant Accounting Policies, Prior Period Reclassification, for further details.
(2) Amount includes $31,279 of recognized stock-based compensation related to the Company’s former CEO’s MRSUs that was estimated to be forfeited and therefore reversed for the year ended December 31, 2023.
v3.25.4
Net Income per Share Attributable to Common Stockholders
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income per Share Attributable to Common Stockholders Net Income per Share Attributable to Common Stockholders
The following table presents the calculation of basic and diluted net income per share:
Year Ended December 31,
(In thousands, except per share amounts)202520242023
Basic net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Denominator:
Weighted-average shares used to compute net income (loss) per share
91,481 91,634 90,141 
Basic net income per share attributable to common stockholders$2.83 $0.92 $0.22 
Diluted net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Interest expense on dilutive convertible notes, net of tax5,693 — — 
Net income used in diluted calculation
$264,955 $84,492 $19,409 
Denominator:
Number of shares used in basic calculation 91,481 91,634 90,141 
Weighted-average effect of dilutive securities:
Stock Options750 1,414 5,698 
RSUs 1,068 1,370 495 
PRSUs98 85 81 
2026 Convertible Notes5,869 — — 
2030 Convertible Notes6,077 — — 
Number of shares used in diluted calculation105,343 94,503 96,415 
Diluted net income per share attributable to common stockholders$2.52 $0.89 $0.20 
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Year Ended December 31,
202520242023
Stock Options— 1 41 
RSUs1,724 1,200 1,574 
PRSUs— — 14 
2026 Convertible Notes
— 8,403 8,403 
Total1,724 9,604 10,032 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes from U.S. and foreign operations is as follows:
Year Ended December 31,
202520242023
U.S.$196,847 $75,651 $174 
Foreign9,815 22,048 26,602 
Total income before income taxes$206,662 $97,699 $26,776 
Total income tax benefit (expense) included in the consolidated statements of operations is comprised of the following:
Year Ended December 31,
202520242023
Current:
Federal$(13,711)$(5,437)$(829)
State(1,368)(1,786)99 
Foreign(2,622)(3,443)(6,835)
Total current$(17,701)$(10,666)$(7,565)
Deferred:
Federal$61,761 $(144)$(140)
State7,929 (1)120 
Foreign611 (2,396)218 
Total deferred70,301 (2,541)198 
Income tax benefit (expense)
$52,600 $(13,207)$(7,367)
The Company has elected to prospectively adopt the guidance in ASU 2023-09. A reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 is as follows:
Year Ended December 31, 2025
AmountPercentage
U.S. federal statutory tax rate
$(43,399)(21.00)%
State and local income tax, net of federal income tax effect(1)
5,183 2.51 %
Foreign tax effects(105)(0.05)%
Effect of cross-border tax laws
Foreign-derived intangible income deduction
6,250 3.02 %
Other
(482)(0.23)%
Tax credits
445 0.22 %
Changes in valuation allowances98,341 47.59 %
Nontaxable or nondeductible items
162(m) limitation
(4,161)(2.01)%
Other non-taxable or non-deductible items
(494)(0.24)%
Changes in unrecognized tax benefits
(9,754)(4.72)%
Other776 0.38 %
Total tax benefit
$52,600 25.45 %
___________________
(1) Taxes in California, New York State and New York City make up the majority (more than 50 percent) of the tax effect in this category.
A reconciliation of the Company’s income tax expense at the U.S. federal statutory rate of 21% to the effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 is as follows:
Year Ended December 31,
20242023
Income tax benefit (expense) at federal statutory rate
$(20,517)$(5,623)
State and local taxes, net of federal benefit(1,412)2,509 
Foreign tax rate differential3,858 (1,030)
Stock-based compensation deductions5,698 17,998 
Nondeductible expenses(2,206)14 
Unrecognized tax positions(4,360)(1,083)
Net change in valuation allowance(44,559)(138)
Global intangible low-tax income(110)— 
Foreign-derived intangible income deduction
3,140 970 
162(m) limitation(9,295)(17,072)
U.S. R&D tax credits3,402 2,810 
Valuation allowance release related to acquisition— 1,074 
Acquisition related compensation(2,659)(7,811)
Impact of intra-entity intellectual property rights transfer
59,627 — 
Other(3,814)15 
Total income tax (expense)
$(13,207)$(7,367)
Income taxes paid (net of refunds received) for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 are as follows:
Federal$2,000 
State1,872 
Foreign2,410 
Total$6,282 
    
Income taxes paid (net of refunds received) for the years ended December 31, 2024, and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 were $19,667 and $2,723, respectively.
The components of deferred tax assets and liabilities are as follows:
December 31,
20252024
Deferred tax assets:
Accounts receivable$1,334 $1,261 
Accrued expenses1,771 2,354 
Capitalized research and development34,541 44,724 
Operating lease liability 62,689 32,398 
Net operating loss carryforwards7,030 11,498 
Stock-based compensation3,362 3,389 
Tax credit carryforwards6,498 17,778 
Depreciation and amortization10,788 18,538 
Capped call17,445 — 
Other2,365 2,593 
Gross deferred tax assets147,823 134,533 
Less: valuation allowance— (109,541)
Total net deferred tax asset$147,823 $24,992 
Deferred tax liability
Operating lease ROU asset$(61,605)$(28,915)
Total deferred tax liability(61,605)(28,915)
Total net deferred tax asset (liability)
$86,218 $(3,923)
The Company’s income tax benefit was $52,600 for the year ended December 31, 2025. The benefit was primarily attributable to the release of valuation allowance related to U.S. federal and certain state deferred tax assets of $69,939 during the third quarter of 2025. The Company regularly assess the need for a valuation allowance on our deferred tax assets. In making this assessment, both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine is considered, based on the weight of available evidence, whether it is more likely than not that some or all the deferred tax assets will not be realized. As of December 31, 2025, based on all available positive and negative evidence, having demonstrated sustained U.S. profitability, which is objective and verifiable, and taking into account anticipated future earnings, the Company has concluded it is more likely than not that it will realize its U.S. federal and U.S. state deferred tax assets. The remaining amount of the changes in valuation allowance is related to reductions in deferred tax assets arising from current-year activity.
As of December 31, 2025, the Company had approximately $16,712 in federal net operating loss (“NOL”) carryforwards and $4,311 in federal tax credits. If not utilized, the federal tax credit carryforwards will expire at various dates beginning in 2042. The federal NOL carryforward can be carried forward indefinitely. As of December 31, 2025, the Company had approximately $13,212 in state NOL carryforwards and $1,569 in California tax credits. If not utilized, the state NOL carryforwards will expire at various dates beginning in 2031. The California state tax credits can be carried forward indefinitely. The Company had $10,014 of foreign NOLs that do not expire. The amount of net operating loss and tax credits carryforwards reflected in the financial statements differ from the amounts reported on the tax return due to uncertain tax positions related to tax laws and regulations that are subject to varied interpretation by the tax authorities.
Certain tax attributes may be subject to an annual limitation as a result of the issuance of stock, which may constitute a change of ownership as defined under Internal Revenue Code Section 382. The Internal Revenue Code Section 382 study is in process as of December 31, 2025.
The Company provides for U.S. and foreign income taxes on the undistributed earnings of foreign subsidiaries unless they are considered indefinitely reinvested outside the U.S. On December 31, 2025, the amount of unrecognized deferred tax liability for temporary differences on undistributed earnings in foreign subsidiaries upon which U.S. and foreign income taxes have not been provided is not material.
In general, it is the Company’s practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain
other circumstances. The amount of undistributed earnings of non-U.S. subsidiaries at December 31, 2025, as well as the related deferred income tax, if any, is not material.
The Company files U.S. federal income tax returns as well as various state, local, and foreign jurisdictions. As of December 31, 2025, tax years 2013 and later remain open for examination.
ASC 740 clarifies the accounting and reporting for uncertainties in income tax law and prescribes a comprehensive model for financial statement recognition measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. ASC 740 requires that tax effects of an uncertain tax position be recognized only if it is “more likely than not” to be sustained by the taxing authority as of the reporting date.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202520242023
Balance of unrecognized tax benefits at beginning of year$22,392 $20,337 $17,044 
Additions based on tax positions related to the current period4,325 5,209 1,571 
Additions for tax positions of prior periods3,629 816 1,947 
Reductions for tax positions of prior periods(2,277)(3,162)— 
Release due to expiration of statute of limitations(1,241)(808)(225)
Balance of unrecognized tax benefits at end of year$26,828 $22,392 $20,337 
Amounts included in the balance of unrecognized tax benefits as of December 31, 2025, 2024 and 2023, if recognized, would affect the effective tax rate upon recognition. The total amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate is $17,599 as of December 31, 2025.
As of December 31, 2025, the Company recognized $13,921 of interest and penalties related to unrecognized tax benefits in the provision for taxes. Interest and penalties related to income tax liabilities are included in income tax expense. During the years ended December 31, 2025, 2024 and 2023, the Company recognized $7,446, $2,864 and $1,816, respectively, in interest expense and penalties. The Company has not made any payments on interest and penalties as of December 31, 2025.
The Organization for Economic Co-operation and Development Pillar Two guidelines published to date include transition and safe harbor rules around the implementation of the Pillar Two global minimum tax of 15%. Based on current enacted legislation, the Company is not subject to Pillar Two tax since the Company’s revenue is currently below the threshold. The Company is monitoring developments and evaluating the impacts these new rules will have on its future income tax provision and effective income tax rate.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company adopted the modifications to the capitalization of research and development expenses and changes to calculations for the limitation on deductions for interest expense for the year ended December 31, 2025, which did not have a material impact.
v3.25.4
Segment and Geographical Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information
Segment Information
The Company’s chief operating decision maker (“CODM”) is the CEO. The CODM assesses performance on a monthly basis by reviewing consolidated results against the annual operating plan and ongoing forecasts. Accordingly, the Company has one operating and reporting segment.
The measure of segment profitability used by the CODM is net income, as reported in the consolidated statements of operations. The significant segment expenses reviewed by the CODM on a consolidated basis include cost of revenue, research and development, sales and marketing, and general and administrative as reported in the consolidated statements of operations on a consolidated basis. Other segment expense categories include other income, net and income tax benefit (expense) as reported in the consolidated statements of operations. Refer to Note 3. Revenue, for revenue by geography.
The measure of segment assets is total assets, which is reported in the consolidated balance sheets. Refer to consolidated statements of cash flows and within Note 6. Balance Sheet Details, for details of capital expenditures and depreciation and amortization, respectively.
Long-lived assets include property and equipment, net and operating lease right-of-use assets, net. The geographic locations of the Company’s long-lived assets, net, based on physical location of the assets, are as follows:
December 31, 2025December 31, 2024
United States$610,135 $381,708 
Netherlands70,829 76,707 
Germany50,953 44,489 
Singapore46,585 27,958 
Canada33,058 32,688 
Other48,388 56,871 
Total$859,948 $620,421 
v3.25.4
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan
The Company offers U.S. employees a voluntary retirement savings plan under Section 401(k) of the Internal Revenue Code (“401(k) Plan”), which permits employees to elect to contribute a portion of their pre-tax wages to the 401(k) Plan. Under this plan, the Company matches 100% of participants’ contributions up to 3% of compensation and 50% of participants’ contributions between 3% and 5%. For the years ended December 31, 2025, 2024 and 2023, the Company incurred expense of $3,223, $2,944 and $2,987 related to the 401(k) Plan, respectively.
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
In November 2023, the Company entered into an arrangement with an affiliate (related party affiliate) of Access Industries, a greater than 5% beneficial owner of the Company's common stock at the time of the transaction. Pursuant to this arrangement, the related party affiliate receives referral fees and other related payments in exchange for referring customers to the Company. The agreement expires on March 31, 2029, and can be terminated earlier without penalty if the contractual net revenue minimum commitment has not been met. Referral fees are incurred when the Company collects amounts due from the customer in exchange for services rendered. Other fees paid to the related party affiliate includes fixed payments to be used exclusively for marketing and referral activities as well as certain reimbursable compensation costs. Amounts owed to the related party affiliate are recorded to Sales and marketing in the consolidated statements of operations. During the year ended December 31, 2025, the Company recognized related party affiliate expenses of $2,735, which consisted of the marketing and referral activity fee of $1,176, reimbursable compensation cost of $431, and referral fees of $1,128. During the year ended December 31, 2024, the Company recognized related party affiliate expenses of $2,158, which consist of the marketing and referral activity fee of $1,400, reimbursable compensation cost of $337, and referral fees of $421. During the year ended December 31, 2023, the Company recognized related party affiliate expenses of $549, which consist of the marketing and referral activity fee of $224, reimbursable compensation cost of $273, and referral fees of $52.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Lawrence D’Angelo [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 9, 2025, Lawrence D’Angelo, the Company’s Chief Revenue Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “D’Angelo 10b5-1 Plan”). The D’Angelo 10b5-1 Plan contemplates the sale of up to 24,283 shares of the Company’s common stock between March 2, 2026 and June 3, 2026.
Name Lawrence D’Angelo
Title Company’s Chief Revenue Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 9, 2025
Expiration Date June 3, 2026
Arrangement Duration 206 days
Aggregate Available 24,283
Cherie Barrett [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 11, 2025, Cherie Barrett, the Company’s Chief Accounting Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Barrett 10b5-1 Plan”). The Barrett 10b5-1 Plan contemplates the sale of up to 22,000 shares of the Company’s common stock between March 2, 2026 and November 1, 2026.
Name Cherie Barrett
Title Company’s Chief Accounting Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 11, 2025
Expiration Date November 1, 2026
Arrangement Duration 355 days
Aggregate Available 22,000
W. Matthew Steinfort [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On November 13, 2025, W. Matthew Steinfort, the Company’s Chief Financial Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Steinfort 10b5-1 Plan”). The Steinfort 10b5-1 Plan contemplates the sale of up to 80,000 shares of the Company’s common stock between March 2, 2026 and November 12, 2027. The actual number of shares that will be sold under the Steinfort 10b5-1 Plan will be based in part on the number of shares withheld to satisfy tax withholding obligations arising from the vesting of certain shares subject to the plan, which number is not yet determinable.
Name W. Matthew Steinfort
Title Company’s Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 13, 2025
Expiration Date November 12, 2027
Arrangement Duration 729 days
Aggregate Available 80,000
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 developed and implemented a cybersecurity risk management program, which includes administrative, technical and physical safeguards designed to maintain the confidentiality, integrity and availability of company and customer information. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas, including the involvement of cross-functional teams and, depending on the nature and severity of an incident, an escalation path to notify our executive and senior management teams and our Board of Directors. We have an established process and playbook led by our chief information security officer (“CISO”) governing our assessment, response and notifications internally and externally upon the occurrence of a cybersecurity incident. We undertake reassessments of the Company’s risk profile periodically or as needed and may make certain adjustments to our security controls based on such assessments to further enhance our security posture.
Our cybersecurity risk management program includes:
•a risk assessment methodology designed to escalate cybersecurity risks to the appropriate channels within our organization in order to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;
•a security department, including our CISO and experienced information systems security professionals and information security managers, divided into three teams: (1) security operations, which is responsible for
responding to abuse on our platform, digital forensics and incident response, and threat intelligence; (2) security engineering, which is responsible for security data analysis and observability on our infrastructure and product offerings; and (3) trust and governance, which is responsible for privacy and security regulatory compliance and risk management;
•a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents and escalating cybersecurity incidents to cross-functional teams, management and our Board of Directors;
•deployment of technical safeguards that are designed to protect our platform, customers, employees and systems from cybersecurity threats. We maintain cybersecurity insurance that provides coverage for cyber breaches, cyber-crime, and related matters;
•the imposition of contractual obligations related to cybersecurity on our third-party vendors. In addition, we assess the security profile of those vendors that store, process or have access to sensitive data through questionnaires and data flow risk assessments;
•securing data going to third-party vendors and, depending on the nature of the services provided, the sensitivity of the data at issue and the identity of the provider, our vendor management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider, including through the use of monitoring tools, threat intelligence tools, and data protection tools. We actively monitor, manage and configure our systems to protect our data against any vulnerabilities we find;
•continuous monitoring of our infrastructure network for vulnerabilities and threats through our security observability platform;
•a system to proactively identify risks that may threaten customer information and utilize both internal and external resources to perform a variety of vulnerability and penetration testing on the platforms, systems and applications used to provide our products and services;
•engagement of third party experts to assist in assessing, managing and reviewing various risks from cybersecurity threats and incidents, including to perform independent audits our data centers, to conduct adversary simulations and to perform network penetration tests periodically;
•mandatory periodic cybersecurity awareness training for all of our employees and consultants, covering key threats and measures to take to protect their own data and the data of the company in addition to role-specific training for security personnel; and
•a privacy compliance program governing personal data we collect from and how we use, share and store such data, including implementation of measures to collect personal data only to the extent necessary for legitimate business purposes.

Our cybersecurity risk management program is designed to be adaptable in order to respond to an evolving landscape of emerging threats and available technology. Our security controls and cybersecurity risk management program are evaluated through data gathering and analysis of emerging threats from internal and external incidents and technology investments. To date, we believe that the risks from identified cybersecurity threats, including as a result of previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. See Part I, Item 1A. “Risk Factors” for a more comprehensive description of risks related to cybersecurity.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have developed and implemented a cybersecurity risk management program, which includes administrative, technical and physical safeguards designed to maintain the confidentiality, integrity and availability of company and customer information. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas, including the involvement of cross-functional teams and, depending on the nature and severity of an incident, an escalation path to notify our executive and senior management teams and our Board of Directors. We have an established process and playbook led by our chief information security officer (“CISO”) governing our assessment, response and notifications internally and externally upon the occurrence of a cybersecurity incident. We undertake reassessments of the Company’s risk profile periodically or as needed and may make certain adjustments to our security controls based on such assessments to further enhance our security posture.
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 has overall oversight responsibility for our risk management and delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees management’s implementation of our cybersecurity risk management program. Our CISO is responsible for developing and implementing our information security program and reporting on cybersecurity matters to the Audit Committee on a regular basis and briefing the full Board on cybersecurity risk oversight activities and preparedness efforts on an annual basis, as well as on an ad hoc basis upon request. Our security teams have a wealth of cross-industry, government, and national defense experience. We employ qualified and certified security practitioners with specialized skill sets in security engineering, incident response, forensics, and threat management. Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Our security and legal teams oversee our information security and privacy practices and are responsible for identifying and proactively addressing security and privacy risks on an ongoing basis, establishing processes to help ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and incident response plans and maintaining cybersecurity programs. We maintain an in depth incident response plan that includes a process for identifying, containing and removing any threats and vulnerabilities and a plan to recover and restore normal business operations following an incident. Members of the security team are always on call to be able to address any issues that arise.
In addition to our cybersecurity incident response plan and program, we maintain a cybersecurity incident disclosure framework designed to support timely disclosure of cybersecurity incidents, including those that may reasonably be expected to have a material impact on the Company, in compliance with applicable security laws. Under this framework, potential cybersecurity incidents are evaluated by our information security and legal teams, and incidents that may be material are referred to a cross-functional materiality assessment team for further evaluation. Our General Counsel reviews and confirms the determination by our materiality assessment team. If an incident is determined to be material, executive management and the Board of Directors are informed accordingly by our General Counsel, and the Company makes any required disclosures pursuant to applicable security laws. To support our preparedness to appropriately respond to cybersecurity incidents, the respective cross-functional teams meet periodically or as needed and conduct simulations of cybersecurity incidents to test its procedures.

Our executive and senior management teams, including our chief executive officer, chief financial officer and CISO, supervise these efforts to prevent, detect, mitigate, remediate, and comply with required disclosures regarding cybersecurity risks and incidents, through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board has overall oversight responsibility for our risk management and delegated cybersecurity risk management oversight to the Audit Committee of the Board.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Board has overall oversight responsibility for our risk management and delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees management’s implementation of our cybersecurity risk management program. Our CISO is responsible for developing and implementing our information security program and reporting on cybersecurity matters to the Audit Committee on a regular basis and briefing the full Board on cybersecurity risk oversight activities and preparedness efforts on an annual basis, as well as on an ad hoc basis upon request. Our security teams have a wealth of cross-industry, government, and national defense experience. We employ qualified and certified security practitioners with specialized skill sets in security engineering, incident response, forensics, and threat management. Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Cybersecurity Risk Role of Management [Text Block]
Our Board has overall oversight responsibility for our risk management and delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees management’s implementation of our cybersecurity risk management program. Our CISO is responsible for developing and implementing our information security program and reporting on cybersecurity matters to the Audit Committee on a regular basis and briefing the full Board on cybersecurity risk oversight activities and preparedness efforts on an annual basis, as well as on an ad hoc basis upon request. Our security teams have a wealth of cross-industry, government, and national defense experience. We employ qualified and certified security practitioners with specialized skill sets in security engineering, incident response, forensics, and threat management. Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Our security and legal teams oversee our information security and privacy practices and are responsible for identifying and proactively addressing security and privacy risks on an ongoing basis, establishing processes to help ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and incident response plans and maintaining cybersecurity programs. We maintain an in depth incident response plan that includes a process for identifying, containing and removing any threats and vulnerabilities and a plan to recover and restore normal business operations following an incident. Members of the security team are always on call to be able to address any issues that arise.
In addition to our cybersecurity incident response plan and program, we maintain a cybersecurity incident disclosure framework designed to support timely disclosure of cybersecurity incidents, including those that may reasonably be expected to have a material impact on the Company, in compliance with applicable security laws. Under this framework, potential cybersecurity incidents are evaluated by our information security and legal teams, and incidents that may be material are referred to a cross-functional materiality assessment team for further evaluation. Our General Counsel reviews and confirms the determination by our materiality assessment team. If an incident is determined to be material, executive management and the Board of Directors are informed accordingly by our General Counsel, and the Company makes any required disclosures pursuant to applicable security laws. To support our preparedness to appropriately respond to cybersecurity incidents, the respective cross-functional teams meet periodically or as needed and conduct simulations of cybersecurity incidents to test its procedures.

Our executive and senior management teams, including our chief executive officer, chief financial officer and CISO, supervise these efforts to prevent, detect, mitigate, remediate, and comply with required disclosures regarding cybersecurity risks and incidents, through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our CISO is responsible for developing and implementing our information security program and reporting on cybersecurity matters to the Audit Committee on a regular basis and briefing the full Board on cybersecurity risk oversight activities and preparedness efforts on an annual basis, as well as on an ad hoc basis upon request. Our security teams have a wealth of cross-industry, government, and national defense experience. We employ qualified and certified security practitioners with specialized skill sets in security engineering, incident response, forensics, and threat management. Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our CISO is responsible for developing and implementing our information security program and reporting on cybersecurity matters to the Audit Committee on a regular basis and briefing the full Board on cybersecurity risk oversight activities and preparedness efforts on an annual basis, as well as on an ad hoc basis upon request. Our security teams have a wealth of cross-industry, government, and national defense experience. We employ qualified and certified security practitioners with specialized skill sets in security engineering, incident response, forensics, and threat management. Our CISO has more than a decade of experience leading highly technical security teams that evolve with the technology and threat landscape.
Our security and legal teams oversee our information security and privacy practices and are responsible for identifying and proactively addressing security and privacy risks on an ongoing basis, establishing processes to help ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and incident response plans and maintaining cybersecurity programs. We maintain an in depth incident response plan that includes a process for identifying, containing and removing any threats and vulnerabilities and a plan to recover and restore normal business operations following an incident. Members of the security team are always on call to be able to address any issues that arise.
In addition to our cybersecurity incident response plan and program, we maintain a cybersecurity incident disclosure framework designed to support timely disclosure of cybersecurity incidents, including those that may reasonably be expected to have a material impact on the Company, in compliance with applicable security laws. Under this framework, potential cybersecurity incidents are evaluated by our information security and legal teams, and incidents that may be material are referred to a cross-functional materiality assessment team for further evaluation. Our General Counsel reviews and confirms the determination by our materiality assessment team. If an incident is determined to be material, executive management and the Board of Directors are informed accordingly by our General Counsel, and the Company makes any required disclosures pursuant to applicable security laws. To support our preparedness to appropriately respond to cybersecurity incidents, the respective cross-functional teams meet periodically or as needed and conduct simulations of cybersecurity incidents to test its procedures.
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 and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include accounts of the Company and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Prior Period Reclassification
Prior Period Reclassification
Beginning in the fourth quarter of 2024, the Company reclassified personnel costs including salaries, bonuses, benefits, and stock-based compensation related to customer support employees, and certain other costs from sales and marketing and research and development to cost of revenue in order to better reflect the cost of supporting its growing customer base, and to improve comparability with peers. The Company reclassified $7,972 and $3,448 from sales and marketing and research and development, respectively, to cost of revenue for the year ended December 31, 2023. We believe this refined methodology better reflects the nature of the costs and financial performance of the Company as it operates.
As a result, the consolidated statements of operations have been recast for the year ended December 31, 2023 to reflect the effects of the changes in cost of revenue, gross profit, sales and marketing, research and development and total operating expenses. There was no change in income from operations, net income attributable to common stockholders or net income per share attributable to common stockholders for the year ended December 31, 2023 as a result of these reclassifications. The consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of changes in stockholders’ equity, and the consolidated statements of cash flows were not affected by changes in the presentation of these costs.
Use of Estimates
Use of Estimates
The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Such estimates include, but are not limited to, those related to revenue recognition, accounts receivable and related reserves, useful lives and realizability of long-lived assets, capitalized internal-use software development costs, accounting for stock-based compensation including estimation of forfeiture rates and the probability of performance vesting conditions, the incremental borrowing rate used to determine lease liabilities, valuation allowances against deferred tax assets, fair value of financial instruments, and the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are periodically reviewed to consider changes in circumstances, facts and experience.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist of highly liquid investments in money market funds.
Foreign Currency
Foreign Currency
The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company is USD, and the functional currency of the Company’s subsidiaries is primarily the local currency of the jurisdiction in which the foreign subsidiary is located. The assets and liabilities of the Company’s subsidiaries are translated to USD at exchange rates in effect at the balance sheet date. All income statement accounts are translated at monthly average exchange rates. Resulting foreign currency translation adjustments are recorded directly in accumulated other comprehensive loss.
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in interest income and other income, net on the consolidated statements of operations when realized.
Restricted Cash
Restricted Cash
The following table reconciles cash, cash equivalents and restricted cash per the consolidated statements of cash flows:
December 31,
20252024
Cash and cash equivalents$254,475 $428,446 
Restricted cash(1)
158 1,747 
Total cash, cash equivalents and restricted cash$254,633 $430,193 
___________________
(1)Restricted cash as of December 31, 2025 primarily consisted of deposits held with certain government agencies for local jurisdictional requirements. Restricted cash as of December 31, 2024 consisted of deposits in financial institutions related to a letter of credit used to secure a lease agreement; the funds were released to the Company in September 2025.
Accounts Receivable Net of Allowance for Expected Credit Losses
Accounts Receivable Net of Allowance for Expected Credit Losses
Accounts receivable primarily represents revenue recognized that was not invoiced at the balance sheet date and is primarily billed and collected in the following month. Trade accounts receivable are carried at the original invoiced amount less an estimated allowance for expected credit losses based on the probability of future collection. Management determines the adequacy of the allowance based on historical loss patterns, the number of days that customer invoices are past due, reasonable and supportable forecasts of future economic conditions to inform adjustments over historical loss data, and an evaluation of the potential risk of loss associated with specific accounts. When management becomes aware of circumstances that may further decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. The Company records changes in the estimate to the allowance for expected credit losses through provision for expected credit losses and reverses the accounts receivable and related allowance after the potential for recovery is considered remote.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses due to their short-term nature.
Property and Equipment
Property and Equipment
Property and equipment is stated at cost, net of accumulated depreciation. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets and is included in depreciation and amortization expense in the consolidated statements of operations. The Company includes the amortization of assets that are recorded under finance leases and equipment financing obligations in depreciation expense.
The estimated useful lives of property and equipment are as follows:
Property and Equipment CategoryUseful Life
Servers and related equipment6 years
Furniture and fixtures5 years
Leasehold improvementsLesser of lease term or remaining useful life
Internal-use software3 years
Equipment under finance leasesLesser of lease term or remaining useful life
Equipment under financing obligations
6 years
Debt
Debt
Debt issuance costs incurred in connection with the issuance of each series of the Company’s convertible notes and Term Loan A are reflected in the consolidated balance sheets as a direct reduction to the carrying amount of the outstanding convertible notes and Term Loan A. These costs are amortized as interest expense using the effective interest rate method over the contractual term of the respective liability and are included within other income (expense), net on the consolidated statements of operations.
The Company considers all debt as long-term when contractual principal payments are due more than twelve months after the balance sheet date. Debt with contractual maturities due within twelve months of the balance sheet date is classified as current.
Operating Leases and Finance Leases and Equipment Financing Obligations
Operating Leases
The Company leases co-location space at data center facilities and, to a lesser extent, corporate offices, all of which are classified as operating leases. The Company determines if an arrangement is a lease at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities on the Company’s consolidated balance sheets.
ROU assets represent the Company’s right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the unpaid lease payments over the lease term. Lease payments used to measure lease liabilities include fixed lease payments at the lease commencement date, including rental escalation provisions. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the lease terms and economic environment at commencement date in determining the present value of future payments. The ROU asset is measured as the amount of the initial lease liability and adjusted for initial direct costs, lease payments made at or before the commencement date, and reduced by tenant incentives received. The Company does not include options for renewal periods or periods beyond the termination dates in the lease in the measurement of ROU assets and lease liabilities until it is reasonably certain that those options will be exercised based on management's assessment of various relevant factors including economic, entity specific, and market-based factors among others.
The Company has lease agreements with lease and non-lease components, which it has elected to combine for all asset classes. The non-lease components of operating leases primarily consist of power. Fixed payments for non-lease components are considered part of the lease component and included in the measurement of the ROU assets and liabilities, and variable payments are expensed as incurred. Variable lease payments generally relate to non-lease components above a contractual minimum fixed amount.
Lease expense for lease payments under operating leases are recognized on a straight-line basis over the lease term. The Company’s operating lease costs for co-location data center facilities are included in cost of revenue in the consolidated statements of operations and the operating lease costs for corporate offices are included in general and administrative expenses in the consolidated statements of operations. For leases with a term of 12 months or less (short-term leases), the Company elected to not recognize the ROU asset or lease liability and the lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term.
Finance Leases and Equipment Financing Obligations
The Company enters into finance leases for servers and related equipment. Finance lease ROU assets, net of amortization, are included in property and equipment, net, and finance lease liabilities are included in finance lease liabilities and equipment financing obligations on the Company’s consolidated balance sheets. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term. For leases classified as finance leases because there is a purchase option which the Company is reasonably certain to exercise, the finance lease ROU asset is amortized over the estimated useful life based on the property and equipment category of the asset. Interest expense for finance lease liabilities is recognized under the effective interest rate method based on the incremental borrowing rate.
The Company may also enter into arrangements to finance servers and related equipment. The Company continues to recognize the servers and related equipment in property, plant and equipment, net and the amount financed within equipment financing obligations on the Company’s consolidated balance sheets. Depreciation expense for equipment under financing obligations is recognized on a straight-line basis over a term of six years, and interest expense for equipment financing obligations is recognized under the effective interest rate method to ensure the liability at the end of the term of the arrangement equals to the exercise price of the purchase option.
The Company includes the amortization of assets that are recorded under finance leases and equipment financing obligations in depreciation expense in cost of revenue in the consolidated statements of operations. Interest expense is included in interest expense in the consolidated statements of operations.
Internal-Use Software
Internal-Use Software
Capitalization of costs incurred in connection with software developed for internal use commences when both the preliminary project stage is completed and management has authorized further funding for the project, based on a determination that it is probable the project will be completed and used to perform the function intended. Capitalized costs include external consulting fees, payroll and payroll-related costs, and stock-based compensation for employees on development teams who are directly associated with, and who devote time to, internal-use software projects during the application development stage. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Costs incurred during the planning, training, and post-implementation stages of the software development lifecycle are expensed as incurred and have been included in research and development expenses in the consolidated statements of operations. Internal-use software also includes the cost paid to purchase software for internal use from a third party.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
Long-lived assets, including property and equipment, intangible assets with definite lives and ROU assets, are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
Business Combinations
Business Combinations
The Company applies the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”), in accounting for acquisitions. ASC 805 requires that the Company evaluates whether a transaction pertains to an acquisition of assets or to an acquisition of a business. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the business acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of a business acquisition’s measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative in the consolidated statements of operations.
In addition, uncertain tax positions and tax related valuation allowances assumed in a business combination are initially estimated as of the acquisition date. Subsequent to the measurement period or the final determination of the tax allowance’s or contingency’s estimated value, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect the provision for income taxes in the Company’s consolidated statement of operations and could have a material impact on the results of operations and financial position.
Goodwill and Indefinite-Lived Intangible Assets and Definite-Lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets
Goodwill is an asset representing the future economic benefit arising from other assets acquired in a business combination which are not individually identified and separately recognized. Goodwill has resulted from prior acquisitions. As discussed in Note 4., goodwill was $348,674 as of December 31, 2025 and 2024, and represents the excess purchase price over the fair value of identifiable net assets acquired in business combinations. As of December 31, 2025, the Company has a single reporting unit.
Goodwill is reviewed for impairment on an annual basis as of October 1st of each year, or more frequently if a triggering event occurs. The Company performs an assessment of goodwill utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its respective carrying amount. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its respective carrying amount, a quantitative fair value test is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. In a quantitative impairment test, the Company compares the carrying amount of the reporting unit to its fair value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount of the reporting unit exceeds its fair value, up to the amount of goodwill of the reporting unit.
Indefinite-lived intangible assets consist of Internet Protocol (“IP”) addresses needed for customers to host their server online. The Company evaluates these indefinite-lived intangible assets for impairment on an annual basis as of October 1st of each year and whenever events or changes in circumstances indicate that an impairment may exist. Intangible assets with indefinite lives were $46,657 and $44,822 as of December 31, 2025 and 2024, respectively, and are included as intangible assets in the consolidated balance sheets.
The Company performs an assessment of indefinite-lived intangible assets utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the assets are less than its respective carrying amounts. If the Company concludes it is more likely than not that the fair value of the assets are less than its respective carrying amounts, a quantitative fair value test is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. 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 exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows.
No impairment charges for goodwill and indefinite-lived intangible assets have been recorded during the years ended December 31, 2025, 2024 or 2023.
Definite-Lived Intangible Assets
Intangible assets with definite lives consist of acquired developed technology, trade name, customer relationships, content and brand. Intangible assets with definite lives are stated at cost less accumulated amortization, and are amortized on a basis consistent with the timing and pattern of expected cash flows used to value the intangible asset, generally on a straight-line basis over the useful life of three to ten years.
Revenue Recognition and Cost of Revenue
Revenue Recognition
The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”).
The Company accounts for revenue using the following steps:
1. Identify the contract with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to performance obligations in the contract
5. Recognize revenue when or as performance obligations are satisfied
The Company provides a comprehensive set of cloud platform capabilities, including IaaS, PaaS and SaaS offerings. The Company also provides a comprehensive AI/ML platform, DigitalOcean Gradient® AI Agentic Cloud, which includes Gradient AI Infrastructure, Gradient AI Platform and Gradient AI Agents. The Company recognizes revenue largely based on the customer utilization of these resources. Fees are billed monthly, and payment is typically due upon invoicing. Revenue is recognized net of allowances for credits and any taxes collected from customers.
The Company’s customer contracts are typically month-to-month and do not contractually bind customers to a specific usage or term. The Company also has a limited number of commitment contracts that require the customer to spend a minimum amount over the commitment term.
The Company’s global cloud platform is supported by various third parties. The Company considered the principal versus agent guidance in ASC 606 and concluded that it is the principal for all services provided to its customers.
The Company may offer sales incentives in the form of promotional and referral credits, and grant credits to encourage customers to use the Company’s services. These types of promotional and referral credits typically expire in two months or less if not used. For credits earned with a purchase, they are recorded as contract liabilities when earned and recognized at the earlier of redemption or expiration. The majority of credits are redeemed in the month they are earned.
Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers and is largely driven by customer usage. The Company records a receivable when revenue is recognized prior to invoicing. Any payments received in advance of billing are a contract liability, which is recorded as deferred revenue within total current liabilities on the consolidated balance sheets.
Cost of Revenue
Cost of revenue consists primarily of fees related to operating the Company’s data center facilities, personnel costs of employees providing customer support or operating facilities, and partnership expenses. Cost of revenue includes depreciation of the Company’s data center equipment and amortization of acquired technology and capitalized internal-use software development costs. Data center facility fees include data center rental fees, power costs, maintenance fees, network, bandwidth and ancillary equipment. Personnel costs include salaries, bonuses, benefits, and stock-based compensation.
Research and Development Expense
Research and Development Expenses
Research and development expenses consist primarily of personnel costs including salaries, bonuses, benefits and stock-based compensation. Research and development expenses also include amortization of capitalized internal-use software development costs, which are amortized over three years, professional services, software, as well as costs related to the Company’s efforts to add new features to existing offerings, develop new offerings, and ensure the security, performance, and reliability of the Company’s global cloud platform.
Sales and Marketing Expenses, General and Administrative Expenses, Restructuring and other charges and Advertising and Other Promotional Costs
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of personnel costs of the Company’s sales and marketing and customer success employees, including salaries, bonuses, benefits, commissions and stock-based compensation. Sales and marketing expenses also include costs for marketing programs, advertising, amortization of acquired customer relationships and purchased internal-use software used for sales and marketing purposes, professional services and software.
General and Administrative Expenses
General and administrative expenses consist primarily of personnel costs of the Company’s human resources, legal, finance and other administrative functions, including salaries, bonuses, benefits, and stock-based compensation. General and administrative expenses also include payment processing fees, provision for expected credit losses, professional services, software, business insurance, depreciation and amortization, rent and facilities costs, acquisition-related compensation, and other administrative costs.
Restructuring and other charges
The Company records restructuring expenses when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely, and employees who are impacted have been notified.
Restructuring and other charges consist primarily of personnel costs, such as notice period, employee severance payments and termination benefits, as well as stock-based compensation related to vesting of certain equity awards.
Advertising and Other Promotional Costs
Advertising and other promotional costs are expensed as incurred and are included in Sales and marketing on the consolidated statements of operations.
Income Taxes
Income Taxes
The Company accounts for income taxes pursuant to the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax assets and liabilities are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. Federal, state, and foreign income taxes are provided based on statutory rates.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed into law. The Tax Act requires an entity to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred (the period cost method) or (2) factoring such amounts into an entity’s measurement of its deferred taxes (“the deferred method”). The One Big Beautiful Bill Act (“OBBBA”) renames GILTI to Net Controlled Foreign Corporation (“CFC”) Tested Income (“NCTI”), modifies the general effective tax rate on GILTI to 12.6% and removes the deemed return on tangible assets deduction. The Company has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred using the period cost method.
The Company accounts for uncertainty in income taxes using a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate audit settlement.
The Company recognizes interest and penalties, if any, associated with income tax matters as part of income tax expense on the consolidated statements of operations and includes accrued interest and penalties with the related income tax liability in Other current liabilities on the consolidated balance sheets.
Concentration of Credit Risk
Concentration of Credit Risk
The amounts reflected in the consolidated balance sheets for cash and cash equivalents, restricted cash, and trade accounts receivable are exposed to concentrations of credit risk. Although the Company maintains cash and cash equivalents with multiple financial institutions, the deposits, at times, may exceed federally insured limits. The Company believes that the financial institutions that hold its cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these balances.
The Company’s customer base consists of a significant number of geographically dispersed customers. No customer represented 10% or more of accounts receivable, net as of December 31, 2025 and 2024. Additionally, no customer accounted for 10% or more of total revenue during the years ended December 31, 2025, 2024 and 2023, respectively.
Stock-Based Compensation
Stock-Based Compensation
Compensation expense related to stock-based transactions, including employee, consultant, and non-employee director stock option awards, is measured based on fair value. Stock-based compensation expense is recognized net of estimated forfeitures in the consolidated statements of operations. Forfeiture rates are based on the forfeiture history by employee type and the Company’s expectations of future forfeiture activity. The Company reviews its forfeiture rate assumptions at least annually.
Stock Options
The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model. The option-pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of the Company’s common stock, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The assumptions used in the option-pricing model represent management’s best estimates.
Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company has limited trading history of its common stock at the time of issuing stock options, the Company estimates the expected volatility of its stock options at the grant date by taking the average historical volatility of a group of comparable publicly traded companies, as well as the Company’s historical volatility, over a period equal to the expected life of the options.
The Company determined the expected term based on the average period the stock options that were expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company did not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.
The Company uses the U.S. Treasury yield for its risk-free interest rate that corresponds with the expected term. The Company utilizes a dividend yield of zero, as the Company does not currently issue dividends, nor does the Company expect to do so in the future.
Stock-based compensation expense for stock options is recognized on a straight-line basis over the requisite service period.
Restricted Stock Units
The Company grants restricted stock units (“RSUs”) as incentive awards to its employees. RSUs are payable in shares of the Company’s common stock as the periodic vesting requirements are satisfied. The fair value of RSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. Stock-based compensation expense for RSUs is recognized on a straight-line basis over the requisite service period.
Performance-Based Restricted Stock Units
The Company grants performance-based restricted stock units (“PRSUs”) primarily to members of the executive team and, in limited instances, to other employees in connection with a specific transaction. PRSUs have vesting conditions based on pre-established performance goals of the Company. The fair value of PRSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. Stock-based compensation expense for PRSUs is recognized using the graded-vesting attribution method over the requisite service period.
At the end of each reporting period, the Company adjusts compensation expense for the PRSUs based on its best estimate of attainment of specified performance metrics. The cumulative effect on current and prior periods of a change in the estimated number of PRSUs that are expected to be earned during the performance period is recognized as an adjustment to stock-based compensation expense in the period of the revision.
Market-Based Restricted Stock Units
The Company has granted market-based restricted stock units (“MRSUs”) to its chief executive officer. MRSUs have vesting conditions based on the satisfaction of certain service conditions and the achievement of certain Company stock price goals during a five-year performance period. The fair value is determined based on the Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. This requires the input of assumptions, including the expected stock volatility, the risk-free interest rate, the expected dividend yield and discount for post-vesting restrictions, as applicable. Stock-based compensation expense for MRSUs is recognized over the requisite service period based on the graded-vesting attribution method regardless of whether the market condition is satisfied, provided that the requisite service period has been completed.
Employee Stock Purchase Plan
The Company offers an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees to purchase shares of the Company’s common stock at a discount. The fair value of awards under the ESPP is calculated at the beginning of each offering period. The Company estimates the fair value of the awards using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and the offering period. This fair value is then amortized on a straight-line basis over the offering period. Stock-based compensation expense is based on awards expected to be purchased at the beginning of the offering period, and therefore is reduced when participants withdraw during the offering period.
Net Income (Loss) per Share Attributable to Common Stockholders
Net Income per Share Attributable to Common Stockholders
Basic and diluted net income or loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company has 10,000,000 shares of Preferred Stock that were authorized but never issued and outstanding. Holders of common stock are entitled to one vote per share. Under the two-class method, net income (loss) is attributed to common stockholders and participating securities based on their participation rights.
Basic earnings per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income or loss attributable to common stockholders, adjusted for interest expense on dilutive convertible notes, by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period.
Basic and diluted net income per common share attributable to common stockholders is presented in conformity with the treasury stock method required for stock-based compensation, and in conformity with the if-converted method required for convertible notes. Nonvested market and performance-based share awards are included in the weighted-average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods.
Potential shares related to certain of the Company’s outstanding restricted stock units were excluded because they were anti-dilutive, however, those potential shares could be dilutive in the future. Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share for periods in which the Company is in a loss position.
Recent Accounting Pronouncements – Adopted and Recent Accounting Pronouncements – Pending Adoption
Recent Accounting Pronouncements – Adopted
In November 2024, the FASB issued Accounting Standards Update (“ASU”) No. 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20) ("ASU 2024-04"), which intends to clarify the conditions in which induced conversion applies to convertible debt by outlining three criteria that must be met for an entity to apply the induced conversion model. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption is permitted as of the beginning of a reporting period if an entity has also adopted ASU 2020-06 for that period. The Company early adopted ASU 2024-04 on July 1, 2025 on a prospective basis and applied the amendments in this ASU to the repurchase of the 2026 Convertible Notes. The early adoption had no impact on the Company’s accounting assessment. Refer to Note 7. Debt, to the consolidated financial statements for further details.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (“Topic 740”) - Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in ASU 2023-09 are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The Company adopted the standard on a prospective basis with an effective date for the year ended December 31, 2025. Refer to Note 14. Income Taxes to the consolidated financial statements for related disclosures.
Recent Accounting Pronouncements – Pending Adoption
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires that an entity breaks down expenses into specific categories, such as employee compensation and costs related to depreciation and amortization, as well as a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. Further, ASU 2024-03 requires disclosure of the total amount of selling expense and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in ASU 2024-03 are required to be adopted for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied on a prospective basis for financial statements issued after the adoption date, although retrospective application is permitted. The Company is currently evaluating the impact of adoption on its financial disclosures.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (“Topic 326”): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which amends Topic 326 to provide a practical expedient and an accounting policy election related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. Specifically, in developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendment should be applied on a prospective basis. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (“Subtopic 350-40”): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). ASU 2025-06 modernizes the accounting for internal-use software costs by increasing the operability of the recognition guidance considering different methods of software development. ASU 2025-06 is effective for the Company for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendment can be applied prospectively, retrospectively, or via a modified prospective transition method. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (“Topic 270”): Narrow-scope Improvements (“ASU 2025-11”). ASU 2025-11 enhances GAAP interim reporting by specifying required disclosures, establishing a disclosure principle for material post-year-end events, and clarifying the scope, types, and presentation of interim financial statements. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for entities other than public business entities. Early adoption is permitted. The amendment can be applied prospectively, retrospectively, or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the new standard; however, it does not expect that the standard will have a material impact on its consolidated financial statements and related disclosures.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Reconciliation of Cash and Cash Equivalents
The following table reconciles cash, cash equivalents and restricted cash per the consolidated statements of cash flows:
December 31,
20252024
Cash and cash equivalents$254,475 $428,446 
Restricted cash(1)
158 1,747 
Total cash, cash equivalents and restricted cash$254,633 $430,193 
___________________
(1)Restricted cash as of December 31, 2025 primarily consisted of deposits held with certain government agencies for local jurisdictional requirements. Restricted cash as of December 31, 2024 consisted of deposits in financial institutions related to a letter of credit used to secure a lease agreement; the funds were released to the Company in September 2025.
Reconciliation of Restricted Cash
The following table reconciles cash, cash equivalents and restricted cash per the consolidated statements of cash flows:
December 31,
20252024
Cash and cash equivalents$254,475 $428,446 
Restricted cash(1)
158 1,747 
Total cash, cash equivalents and restricted cash$254,633 $430,193 
___________________
(1)Restricted cash as of December 31, 2025 primarily consisted of deposits held with certain government agencies for local jurisdictional requirements. Restricted cash as of December 31, 2024 consisted of deposits in financial institutions related to a letter of credit used to secure a lease agreement; the funds were released to the Company in September 2025.
Disclosure of Changes in Allowance for Doubtful Accounts
The following table presents the changes in the allowance for expected credit losses for the period presented:
December 31,
20252024
Beginning balance$5,940 $5,848 
Provision for expected credit losses17,985 16,446 
Write-offs and other(17,551)(16,354)
Ending balance$6,374 $5,940 
Schedule of Property and Equipment, Net
The estimated useful lives of property and equipment are as follows:
Property and Equipment CategoryUseful Life
Servers and related equipment6 years
Furniture and fixtures5 years
Leasehold improvementsLesser of lease term or remaining useful life
Internal-use software3 years
Equipment under finance leasesLesser of lease term or remaining useful life
Equipment under financing obligations
6 years
Property and equipment, net consisted of the following:
December 31, 2025December 31, 2024
Servers and related equipment
$933,576 $833,893 
Equipment under finance leases and financing obligations(1)
144,819 12,138 
Internal-use software121,735 94,981 
Leasehold improvements412 6,985 
Furniture and fixtures262 1,558 
Property and equipment, gross$1,200,804 $949,555 
Less: accumulated depreciation(1)
$(524,829)$(439,664)
Less: accumulated amortization
(86,881)(77,347)
Property and equipment, net $589,094 $432,544 
___________________
(1) Includes $13,316 and $12,138 of gross value and $11,502 and $7,847 of accumulated amortization of equipment under finance leases as of December 31, 2025 and 2024, respectively.
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue by Customer Category
Revenue by customer ARR category, as determined based on the customers’ spend in a given month, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of RevenueAmount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Above $6K and under $100K Customers
$321,189 36 %$284,352 36 %$253,066 37 %
Above $100K and under $500K Customers
91,975 10 %77,902 10 %64,155 9 %
Above $500K and under $1M Customers
30,428 3 %25,327 3 %18,657 3 %
Above $1M Customers
96,250 11 %46,739 6 %29,422 4 %
Digital Native Enterprise Customers
539,842 60 %434,320 55 %365,300 53 %
Developers and other(2)
361,585 40 %346,295 45 %327,584 47 %
Total Revenue
$901,427 100 %$780,615 100 %$692,884 100 %
___________________
(1) May not recalculate due to rounding.
(2) Beginning in the fourth quarter of 2025, Developers and other includes revenue from users that spend less than or equal to $500 in a given month, revenue from certain legacy Bare Metal CPU offerings, miscellaneous revenue and other reserve adjustments. Prior periods have been recast to reflect the effect of this change.
Under the prior classification, revenue by customer category, as determined based on the customers’ spend in a given month, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Builders
$252,072 28 %$236,384 30 %$219,506 32 %
Scalers
321,404 36 %284,575 36 %253,336 37 %
Scalers+
231,050 26 %160,836 21 %122,543 18 %
Learners, Testers and Other(2)
96,901 10 %98,820 13 %97,499 13 %
Total$901,427 100 %$780,615 100 %$692,884 100 %
___________________
(1) May not recalculate due to rounding.
(2) Other includes miscellaneous revenue and other reserve adjustments.
Revenue by Geographic Areas
Revenue, as determined based on the Company’s customers’ billing address, was as follows:
Year Ended December 31,
202520242023
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
Amount
Percentage of Revenue(1)
North America$346,504 38 %$295,403 38%$256,142 37%
Europe243,063 28 %222,004 28%202,855 29%
Asia211,251 23 %182,391 23%162,505 24%
Rest of the world
100,609 11 %80,817 11%71,382 10%
Total$901,427 100 %$780,615 100%$692,884 100%
___________________
(1) May not recalculate due to rounding.
v3.25.4
Acquisitions, Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Goodwill Movements in goodwill during the year ended December 31, 2024 were as follows:
Balance at January 1, 2024
$348,322 
Measurement period adjustments(1)
352 
Balance at December 31, 2024$348,674 
___________________
(1)Represents measurement period adjustment of the purchase price of the Paperspace acquisition.
Schedule of Intangible Assets and Goodwill
Intangible assets, net consisted of the following amounts:
December 31,
20252024
Asset Type
IP addresses$46,657 $44,822 
Developed technology62,330 62,323 
Customer relationships44,270 44,270 
Trade name9,800 9,800 
Content4,400 4,400 
Brand1,000 1,000 
Total carrying value$168,457 $166,615 
Accumulated Amortization
Developed technology$(38,718)$(27,094)
Customer relationships(21,368)(14,286)
Trade name(3,467)(2,517)
Content(4,400)(4,000)
Brand(1,000)(1,000)
Total accumulated amortization(68,953)(48,897)
Total intangible assets, net$99,504 $117,718 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense Amortization expense for the next five years and thereafter, based on valuations and determinations of useful lives, is expected to be as follows:
2026$19,657 
202717,557 
20289,198 
20293,902 
2030950 
Thereafter1,583 
Total estimated future intangible amortization expense$52,847 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Liabilities Measured on a Recurring Basis
The fair value of the Company’s financial assets measured on a recurring basis was as follows:
December 31, 2025
Level ITotal
Cash and cash equivalents:
Cash$57,363 $57,363 
Money market funds197,112 197,112 
Total Cash and cash equivalents$254,475 $254,475 
December 31, 2024
Level ITotal
Cash and cash equivalents:
Cash$79,378 $79,378 
Money market funds349,068 349,068 
Total Cash and cash equivalents$428,446 $428,446 
v3.25.4
Balance Sheet Details (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Property and Equipment, Net
The estimated useful lives of property and equipment are as follows:
Property and Equipment CategoryUseful Life
Servers and related equipment6 years
Furniture and fixtures5 years
Leasehold improvementsLesser of lease term or remaining useful life
Internal-use software3 years
Equipment under finance leasesLesser of lease term or remaining useful life
Equipment under financing obligations
6 years
Property and equipment, net consisted of the following:
December 31, 2025December 31, 2024
Servers and related equipment
$933,576 $833,893 
Equipment under finance leases and financing obligations(1)
144,819 12,138 
Internal-use software121,735 94,981 
Leasehold improvements412 6,985 
Furniture and fixtures262 1,558 
Property and equipment, gross$1,200,804 $949,555 
Less: accumulated depreciation(1)
$(524,829)$(439,664)
Less: accumulated amortization
(86,881)(77,347)
Property and equipment, net $589,094 $432,544 
___________________
(1) Includes $13,316 and $12,138 of gross value and $11,502 and $7,847 of accumulated amortization of equipment under finance leases as of December 31, 2025 and 2024, respectively.
Schedule of Other Current Assets
Prepaid expenses and other current assets consisted of the following:
December 31, 2025December 31, 2024
VAT and sales tax receivable
$27,934 $18,621 
Prepaid rent
26,114 3,010 
Prepaid expenses
22,396 17,544 
Other current assets
5,154 1,611 
 Total prepaid expenses and other current assets$81,598 $40,786 
Schedule of Accrued Other Expenses
Accrued other expenses consisted of the following:
December 31, 2025December 31, 2024
Accrued bonus
$18,779 $14,599 
Other accrued expenses
17,532 16,857 
Accrued capital expenditures3,731 3,788 
Accrued payroll costs
2,637 2,912 
Total accrued other expenses
$42,679 $38,156 
Schedule of Other Current Liabilities
Other current liabilities consisted of the following:
December 31, 2025December 31, 2024
Sales and other taxes payable $57,454 $39,847 
Other current liabilities9,100 3,163 
Employee contributions under ESPP877 492 
Excise taxes related to repurchase of common stock79 — 
 Total other current liabilities $67,510 $43,502 
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Convertible Debt
The following table presents details of the 2030 Convertible Notes:
Initial Conversion Rate per $1,000 PrincipalInitial Conversion Price
(In whole $)		Initial Number of Shares
 (In thousands)
2030 Convertible Notes25.5317$39.17 15,957
Holders may convert the 2030 Convertible Notes at their option only in the following circumstances:
(1) during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on December 31, 2025, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;
(2) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10     consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2030 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day;
(3) if the Company calls the 2030 Convertible Notes for redemption; and
(4) upon the occurrence of certain corporate events or distributions of the Company’s common stock, as described in the indenture governing the 2030 Convertible Notes.
Interest expense related to the Company’s convertible notes and credit facilities consisted of the following:
Year Ended December 31,
202520242023
Contractual interest expense$9,150 $508 $506 
Amortization of debt issuance costs7,418 7,987 7,949 
Schedule of Long-Term Debt Instruments
The net carrying amount of the Company’s 2030 Convertible Notes, borrowings under the 2025 Credit Facility and the 2026 Convertible Notes consisted of the following:
Outstanding as of
December 31, 2025December 31, 2024
2030 Convertible Notes
$625,000 $— 
2026 Convertible Notes
312,322 1,500,000 
Term Loan A
380,000 — 
Total obligations
1,317,322 1,500,000 
Unamortized debt issuance costs(21,560)(14,634)
Carrying value of debt
1,295,762 1,485,366 
Less: Debt, current
(325,109)— 
Debt, long-term
$970,653 $1,485,366 
Debt Instrument Redemption
Future principal payments of the Company’s debt as of December 31, 2025 were as follows:
2026$326,572 
202719,000 
202819,000 
202919,000 
2030933,750 
Total future payments$1,317,322 
v3.25.4
Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Components of Lease Expense
The components of operating lease expense were as follows:
December 31,
202520242023
Operating lease expense$116,713 $89,831 $80,639 
Variable lease expense10,365 8,653 11,317 
Short-term lease expense335 37 418 
Total operating lease expense
$127,413 $98,521 $92,374 
Supplemental Balance Sheet Information
Weighted-average remaining lease term and discount rate were as follows:
December 31,
20252024
Weighted-average remaining lease term (in years)3.43.8
Weighted-average discount rate6%6%
Weighted-average remaining term and discount rate of finance lease liabilities and equipment financing obligations were as follows:
December 31,
20252024
Weighted-average remaining term (in years)
3.91.4
Weighted-average discount rate7%8%
Operating Lease Maturity
Maturities of operating lease liabilities as of December 31, 2025 were as follows:
2026$119,171 
202785,241 
202835,318 
202925,004 
203020,154 
Thereafter17,538 
Total undiscounted operating lease liabilities
302,426
Less: Imputed interest(27,494)
Total present value of operating lease liabilities
274,932
Less: Current portion of operating lease liabilities
(108,037)
Operating lease liabilities, long-term
$166,895 
v3.25.4
Finance Leases and Equipment Financing Obligations (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Supplemental Balance Sheet Information
Weighted-average remaining lease term and discount rate were as follows:
December 31,
20252024
Weighted-average remaining lease term (in years)3.43.8
Weighted-average discount rate6%6%
Weighted-average remaining term and discount rate of finance lease liabilities and equipment financing obligations were as follows:
December 31,
20252024
Weighted-average remaining term (in years)
3.91.4
Weighted-average discount rate7%8%
Finance Lease Maturity
Maturities of finance lease liabilities and equipment financing obligations of December 31, 2025 were as follows:
2026$39,240 
202737,796 
202837,592 
202933,708 
Total undiscounted finance lease liabilities and equipment financing obligations
148,336
Less: Imputed interest(17,822)
Total present value of finance lease liabilities and equipment financing obligations
130,514
Less: Finance lease liabilities and equipment financing obligations, current
(31,411)
Finance lease liabilities and equipment financing obligations, long-term
$99,103 
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Total Minimum Future Purchase Commitments The total minimum future commitments as of December 31, 2025 were as follows:
2026$20,174 
202720,227 
2028622 
Total purchase commitments$41,023 
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
Stock options granted have a maximum term of ten years from the grant date, are exercisable upon vesting and typically vest over a period of four years. Stock option activity for the year ended December 31, 2025 was as follows:
Number of Options OutstandingWeighted-Average Exercise Price
(Per share)		Weighted-Average Remaining Life
(In years)		Aggregate Intrinsic Value
(In thousands)
Outstanding at January 1, 20251,425,656 $12.17 5.2$31,223 
Exercised(452,638)9.59 
Forfeited or cancelled(12,539)13.92 
Outstanding at December 31, 2025960,479 $13.36 4.3$33,385 
Vested and exercisable at December 31, 2025960,479 $13.36 4.3$33,385 
Schedule of RSU Activity
RSUs granted typically vest over four years. RSU activity for the year ended December 31, 2025 was as follows:
SharesWeighted-Average Grant Date Fair Value
 (Per share)
Unvested balance at January 1, 20255,215,300 $36.40 
Granted2,714,355 36.87 
Vested(2,173,661)37.15 
Forfeited or cancelled(1,299,849)35.91 
Unvested balance at December 31, 20254,456,145 $36.46 
Vested and expected to vest at December 31, 20253,664,193 $36.34 
Schedule of PRSU Activity
The Company has issued PRSUs which vest based on the achievement of each award’s established performance targets. PRSU activity for the year ended December 31, 2025 was as follows:
SharesWeighted-Average Grant Date Fair Value
(Per share)
Unvested balance at January 1, 2025183,919 $36.09 
Granted436,972 30.75 
Vested(58,692)35.51 
Forfeited or cancelled(158,616)30.75 
Adjusted by performance factor(88,865)36.48 
Unvested balance at December 31, 2025314,718 $31.37 
Vested and expected to vest at December 31, 2025312,900 $31.37 
Summary of Share-Based Payment Arrangement and Price Targets A cumulative percentage of the MRSU target is earned based on the achievement of stock price goals, measured based on the average of the Company’s closing stock price over a consecutive 60 trading day period during the performance period as set forth in the table below:
TrancheCompany Stock Price TargetTotal Payout
1$65.00
25% of Target MRSUs
2$100.00
50% of Target MRSUs
3$135.00
100% of Target MRSUs
4$170.00
150% of Target MRSUs
Schedule of Weighted-Average Assumptions
The following assumptions were used in the Monte Carlo simulation model to estimate the grant date fair value and the derived service period of the MRSUs:
Expected volatility71.3%
Expected term (in years)
5.0
Risk-free interest rate4.1%
Dividend yield—%
Stock price at grant date (per share)
$39.43
Weighted-average fair value of awards (per share)
$27.61
Summary of Stock-Based Compensation Expense
Stock-based compensation is included in the consolidated statements of operations as follows:
Year Ended December 31,
202520242023
Cost of revenue(1)
$5,435 $5,889 $5,685 
Research and development(1)
34,939 38,285 42,040 
Sales and marketing(1)
11,646 10,093 13,177 
General and administrative (2)
28,295 36,278 23,508 
Restructuring and other charges— — 3,937 
Total$80,315 $90,545 $88,347 
___________________
(1) Amounts for the year ended December 31, 2023 have been recast to conform with current period presentation. Refer to Note 2. Summary of Significant Accounting Policies, Prior Period Reclassification, for further details.
(2) Amount includes $31,279 of recognized stock-based compensation related to the Company’s former CEO’s MRSUs that was estimated to be forfeited and therefore reversed for the year ended December 31, 2023.
v3.25.4
Net Income per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Net Loss Per Share
The following table presents the calculation of basic and diluted net income per share:
Year Ended December 31,
(In thousands, except per share amounts)202520242023
Basic net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Denominator:
Weighted-average shares used to compute net income (loss) per share
91,481 91,634 90,141 
Basic net income per share attributable to common stockholders$2.83 $0.92 $0.22 
Diluted net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Interest expense on dilutive convertible notes, net of tax5,693 — — 
Net income used in diluted calculation
$264,955 $84,492 $19,409 
Denominator:
Number of shares used in basic calculation 91,481 91,634 90,141 
Weighted-average effect of dilutive securities:
Stock Options750 1,414 5,698 
RSUs 1,068 1,370 495 
PRSUs98 85 81 
2026 Convertible Notes5,869 — — 
2030 Convertible Notes6,077 — — 
Number of shares used in diluted calculation105,343 94,503 96,415 
Diluted net income per share attributable to common stockholders$2.52 $0.89 $0.20 
Schedule of Anti-Dilutive Securities Excluded from Computation of Net Loss Per Share
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Year Ended December 31,
202520242023
Stock Options— 1 41 
RSUs1,724 1,200 1,574 
PRSUs— — 14 
2026 Convertible Notes
— 8,403 8,403 
Total1,724 9,604 10,032 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes from U.S. and foreign operations is as follows:
Year Ended December 31,
202520242023
U.S.$196,847 $75,651 $174 
Foreign9,815 22,048 26,602 
Total income before income taxes$206,662 $97,699 $26,776 
Schedule of Components of Income Tax Expense (Benefit)
Total income tax benefit (expense) included in the consolidated statements of operations is comprised of the following:
Year Ended December 31,
202520242023
Current:
Federal$(13,711)$(5,437)$(829)
State(1,368)(1,786)99 
Foreign(2,622)(3,443)(6,835)
Total current$(17,701)$(10,666)$(7,565)
Deferred:
Federal$61,761 $(144)$(140)
State7,929 (1)120 
Foreign611 (2,396)218 
Total deferred70,301 (2,541)198 
Income tax benefit (expense)
$52,600 $(13,207)$(7,367)
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 is as follows:
Year Ended December 31, 2025
AmountPercentage
U.S. federal statutory tax rate
$(43,399)(21.00)%
State and local income tax, net of federal income tax effect(1)
5,183 2.51 %
Foreign tax effects(105)(0.05)%
Effect of cross-border tax laws
Foreign-derived intangible income deduction
6,250 3.02 %
Other
(482)(0.23)%
Tax credits
445 0.22 %
Changes in valuation allowances98,341 47.59 %
Nontaxable or nondeductible items
162(m) limitation
(4,161)(2.01)%
Other non-taxable or non-deductible items
(494)(0.24)%
Changes in unrecognized tax benefits
(9,754)(4.72)%
Other776 0.38 %
Total tax benefit
$52,600 25.45 %
___________________
(1) Taxes in California, New York State and New York City make up the majority (more than 50 percent) of the tax effect in this category.
Year Ended December 31,
20242023
Income tax benefit (expense) at federal statutory rate
$(20,517)$(5,623)
State and local taxes, net of federal benefit(1,412)2,509 
Foreign tax rate differential3,858 (1,030)
Stock-based compensation deductions5,698 17,998 
Nondeductible expenses(2,206)14 
Unrecognized tax positions(4,360)(1,083)
Net change in valuation allowance(44,559)(138)
Global intangible low-tax income(110)— 
Foreign-derived intangible income deduction
3,140 970 
162(m) limitation(9,295)(17,072)
U.S. R&D tax credits3,402 2,810 
Valuation allowance release related to acquisition— 1,074 
Acquisition related compensation(2,659)(7,811)
Impact of intra-entity intellectual property rights transfer
59,627 — 
Other(3,814)15 
Total income tax (expense)
$(13,207)$(7,367)
Income taxes paid (net of refunds received) for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 are as follows:
Schedule of Cash Flow, Supplemental Disclosures
Income taxes paid (net of refunds received) for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 are as follows:
Federal$2,000 
State1,872 
Foreign2,410 
Total$6,282 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows:
December 31,
20252024
Deferred tax assets:
Accounts receivable$1,334 $1,261 
Accrued expenses1,771 2,354 
Capitalized research and development34,541 44,724 
Operating lease liability 62,689 32,398 
Net operating loss carryforwards7,030 11,498 
Stock-based compensation3,362 3,389 
Tax credit carryforwards6,498 17,778 
Depreciation and amortization10,788 18,538 
Capped call17,445 — 
Other2,365 2,593 
Gross deferred tax assets147,823 134,533 
Less: valuation allowance— (109,541)
Total net deferred tax asset$147,823 $24,992 
Deferred tax liability
Operating lease ROU asset$(61,605)$(28,915)
Total deferred tax liability(61,605)(28,915)
Total net deferred tax asset (liability)
$86,218 $(3,923)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202520242023
Balance of unrecognized tax benefits at beginning of year$22,392 $20,337 $17,044 
Additions based on tax positions related to the current period4,325 5,209 1,571 
Additions for tax positions of prior periods3,629 816 1,947 
Reductions for tax positions of prior periods(2,277)(3,162)— 
Release due to expiration of statute of limitations(1,241)(808)(225)
Balance of unrecognized tax benefits at end of year$26,828 $22,392 $20,337 
v3.25.4
Segment and Geographical Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Long-lived Assets by Geographic Areas The geographic locations of the Company’s long-lived assets, net, based on physical location of the assets, are as follows:
December 31, 2025December 31, 2024
United States$610,135 $381,708 
Netherlands70,829 76,707 
Germany50,953 44,489 
Singapore46,585 27,958 
Canada33,058 32,688 
Other48,388 56,871 
Total$859,948 $620,421 
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]      
Sales and marketing $ 82,433 $ 71,570 $ 65,055
Research and development 161,621 142,499 136,917
Cost of revenue 361,835 314,672 295,387
Impairment of certain long-lived assets 52 356 1,140
Impairment loss 52 356 1,140
Goodwill 348,674 348,674 348,322
Intangible assets with indefinite lives 46,657 44,822  
Impairment charges for goodwill and indefinite-lived intangible assets 0 0 0
Intangible assets with definite lives 52,847 72,896  
Advertising expense $ 9,651 $ 9,958 7,857
Dividend yield 0.00%    
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000  
Property, Plant and Equipment      
Concentration Risk [Line Items]      
Depreciation period 6 years    
Impairment of certain long-lived assets   $ 815 0
Minimum | JournalDev IT      
Concentration Risk [Line Items]      
Useful life 3 years    
Maximum | JournalDev IT      
Concentration Risk [Line Items]      
Useful life 10 years    
Revision of Prior Period, Adjustment | Reclassification from sales and marketing to cost of revenue      
Concentration Risk [Line Items]      
Sales and marketing     (7,972)
Cost of revenue     7,972
Revision of Prior Period, Adjustment | Reclassification from research and development to cost of revenue      
Concentration Risk [Line Items]      
Research and development     (3,448)
Cost of revenue     $ 3,448
v3.25.4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 254,475 $ 428,446    
Restricted cash 158 1,747    
Total cash, cash equivalents and restricted cash $ 254,633 $ 430,193 $ 318,983 $ 151,807
v3.25.4
Summary of Significant Accounting Policies - Disclosure of Changes in Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning Balance $ 5,940 $ 5,848  
Provision for expected credit losses 17,985 16,446 $ 15,357
Write-offs and other (17,551) (16,354)  
Ending Balance $ 6,374 $ 5,940 $ 5,848
v3.25.4
Summary of Significant Accounting Policies - Useful Lives of Property and Equipment (Details)
Dec. 31, 2025
Servers and related equipment  
Property, Plant and Equipment [Line Items]  
Useful Life 6 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful Life 5 years
Internal-use software  
Property, Plant and Equipment [Line Items]  
Useful Life 3 years
Equipment under financing obligations  
Property, Plant and Equipment [Line Items]  
Useful Life 6 years
v3.25.4
Revenue - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2025
Sep. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]          
Deferred revenue $ 5,882,000   $ 5,882,000 $ 5,397,000  
Revenue recognized during period     3,451,000 $ 3,645,000 $ 3,674,000
Minimum          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer tenure   3 months      
Maximum          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer tenure   3 months      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Revenue, performance obligations not recognized $ 134,085,000   $ 134,085,000    
Revenue, performance obligations not recognized, period 2 years   2 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Revenue, performance obligations not recognized $ 72,799,000   $ 72,799,000    
Revenue, performance obligations not recognized, period 12 months   12 months    
Builders          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than   $ 50      
Customer spending less than or equal   500      
Scalers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than   500      
Customer spending less than or equal   8,333      
Scalers+          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than   8,333      
Learners, Testers and Other          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending less than or equal   $ 50      
Digital Native Enterprise Customers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than $ 500        
Above $6K and under $100K Customers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than 500        
Annual run-rate revenue, minimum 6,000   $ 6,000    
Annual run-rate revenue, maximum 100,000   100,000    
Customer spending less than or equal 8,333        
Above $100K and under $500K Customers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than 8,333        
Annual run-rate revenue, minimum 100,000   100,000    
Annual run-rate revenue, maximum 500,000   500,000    
Customer spending less than or equal 41,667        
Above $500K and under $1M Customers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than 41,667        
Annual run-rate revenue, minimum 500,000   500,000    
Annual run-rate revenue, maximum 1,000,000   1,000,000    
Customer spending less than or equal 83,333        
Above $1M Customers          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than 83,333        
Annual run-rate revenue, minimum 1,000,000   $ 1,000,000    
Developers And Other          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Customer spending more than $ 500        
Revenue from Contract with Customer | Geographic Concentration Risk          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Percentage of revenue     100.00% 100.00% 100.00%
United States | Revenue from Contract with Customer | Geographic Concentration Risk          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Percentage of revenue     33.00% 32.00% 30.00%
v3.25.4
Revenue - Revenue by Customer Category (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]        
Revenue   $ 901,427,000 $ 780,615,000 $ 692,884,000
Percentage of Revenue   100.00% 100.00% 100.00%
Above $6K and under $100K Customers        
Disaggregation of Revenue [Line Items]        
Annual run-rate revenue, minimum $ 6,000 $ 6,000    
Annual run-rate revenue, maximum 100,000 100,000    
Revenue   $ 321,189,000 $ 284,352,000 $ 253,066,000
Percentage of Revenue   36.00% 36.00% 37.00%
Customer spending less than or equal 8,333      
Customer spending more than 500      
Above $100K and under $500K Customers        
Disaggregation of Revenue [Line Items]        
Annual run-rate revenue, minimum 100,000 $ 100,000    
Annual run-rate revenue, maximum 500,000 500,000    
Revenue   $ 91,975,000 $ 77,902,000 $ 64,155,000
Percentage of Revenue   10.00% 10.00% 9.00%
Customer spending less than or equal 41,667      
Customer spending more than 8,333      
Above $500K and under $1M Customers        
Disaggregation of Revenue [Line Items]        
Annual run-rate revenue, minimum 500,000 $ 500,000    
Annual run-rate revenue, maximum 1,000,000 1,000,000    
Revenue   $ 30,428,000 $ 25,327,000 $ 18,657,000
Percentage of Revenue   3.00% 3.00% 3.00%
Customer spending less than or equal 83,333      
Customer spending more than 41,667      
Above $1M Customers        
Disaggregation of Revenue [Line Items]        
Annual run-rate revenue, minimum 1,000,000 $ 1,000,000    
Revenue   $ 96,250,000 $ 46,739,000 $ 29,422,000
Percentage of Revenue   11.00% 6.00% 4.00%
Customer spending more than 83,333      
Digital Native Enterprise Customers        
Disaggregation of Revenue [Line Items]        
Revenue   $ 539,842,000 $ 434,320,000 $ 365,300,000
Percentage of Revenue   60.00% 55.00% 53.00%
Customer spending more than 500      
Developers And Other        
Disaggregation of Revenue [Line Items]        
Revenue   $ 361,585,000 $ 346,295,000 $ 327,584,000
Percentage of Revenue   40.00% 45.00% 47.00%
Customer spending more than $ 500      
v3.25.4
Revenue - Revenue by Customer Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Amount $ 901,427 $ 780,615 $ 692,884
Percentage of Revenue 100.00% 100.00% 100.00%
Builders      
Disaggregation of Revenue [Line Items]      
Amount $ 252,072 $ 236,384 $ 219,506
Percentage of Revenue 28.00% 30.00% 32.00%
Scalers      
Disaggregation of Revenue [Line Items]      
Amount $ 321,404 $ 284,575 $ 253,336
Percentage of Revenue 36.00% 36.00% 37.00%
Scalers+      
Disaggregation of Revenue [Line Items]      
Amount $ 231,050 $ 160,836 $ 122,543
Percentage of Revenue 26.00% 21.00% 18.00%
Learners, Testers and Other      
Disaggregation of Revenue [Line Items]      
Amount $ 96,901 $ 98,820 $ 97,499
Percentage of Revenue 10.00% 13.00% 13.00%
v3.25.4
Revenue - Revenue by Geographic Areas (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Amount $ 901,427 $ 780,615 $ 692,884
Geographic Concentration Risk | Revenue from Contract with Customer      
Disaggregation of Revenue [Line Items]      
Amount $ 901,427 $ 780,615 $ 692,884
Percentage of Revenue 100.00% 100.00% 100.00%
North America | Geographic Concentration Risk | Revenue from Contract with Customer      
Disaggregation of Revenue [Line Items]      
Amount $ 346,504 $ 295,403 $ 256,142
Percentage of Revenue 38.00% 38.00% 37.00%
Europe | Geographic Concentration Risk | Revenue from Contract with Customer      
Disaggregation of Revenue [Line Items]      
Amount $ 243,063 $ 222,004 $ 202,855
Percentage of Revenue 28.00% 28.00% 29.00%
Asia | Geographic Concentration Risk | Revenue from Contract with Customer      
Disaggregation of Revenue [Line Items]      
Amount $ 211,251 $ 182,391 $ 162,505
Percentage of Revenue 23.00% 23.00% 24.00%
Rest of the world | Geographic Concentration Risk | Revenue from Contract with Customer      
Disaggregation of Revenue [Line Items]      
Amount $ 100,609 $ 80,817 $ 71,382
Percentage of Revenue 11.00% 11.00% 10.00%
v3.25.4
Acquisitions, Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jul. 05, 2023
Sep. 01, 2022
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]            
Amortization of intangible assets       $ 20,057 $ 22,426 $ 18,967
Amortization expense       5 years    
Developed Technology            
Business Combination [Line Items]            
Useful life       5 years    
Customer Relationships            
Business Combination [Line Items]            
Useful life       6 years    
Trade name            
Business Combination [Line Items]            
Useful life       10 years    
Paperspace Co. Acquisition            
Business Combination [Line Items]            
Business acquisition, percentage of voting interests acquired 100.00%          
Payments to acquire businesses $ 100,399          
Cash contributed to escrow accounts $ 11,100          
Acquisition related costs           5,745
Contingent compensations costs         10,120  
Acquisition related compensation expense         5,985 4,135
Revenue of acquiree since acquisition date           6,350
Loss of acquiree since acquisition date           $ (18,914)
Cloudways Ltd. Acquisition            
Business Combination [Line Items]            
Business acquisition, percentage of voting interests acquired   100.00%        
Contingent compensations costs   $ 38,830     14,652  
Measurement period adjustment, decrease to goodwill   $ 311,237        
Contingent compensation costs paid     $ 7,326   $ 14,652  
v3.25.4
Acquisitions, Goodwill and Intangible Assets - Schedule of Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Beginning Balance $ 348,322
Ending Balance 348,674
Paperspace Co. Acquisition  
Goodwill [Roll Forward]  
Measurement period adjustments $ 352
v3.25.4
Acquisitions, Goodwill and Intangible Assets - Schedule of Definite Life Intangibles (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Total carrying value $ 168,457 $ 166,615
Accumulated Amortization (68,953) (48,897)
Total intangible assets, net 99,504 117,718
IP addresses    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 46,657 44,822
Developed Technology    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 62,330 62,323
Accumulated Amortization (38,718) (27,094)
Customer Relationships    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 44,270 44,270
Accumulated Amortization (21,368) (14,286)
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 9,800 9,800
Accumulated Amortization (3,467) (2,517)
Content    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 4,400 4,400
Accumulated Amortization (4,400) (4,000)
Brand    
Finite-Lived Intangible Assets [Line Items]    
Asset Type 1,000 1,000
Accumulated Amortization $ (1,000) $ (1,000)
v3.25.4
Acquisitions, Goodwill and Intangible Assets - Schedule of Future Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]    
2026 $ 19,657  
2027 17,557  
2028 9,198  
2029 3,902  
2030 950  
Thereafter 1,583  
Total estimated future intangible amortization expense $ 52,847 $ 72,896
v3.25.4
Fair Value Measurements - Schedule of Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: $ 254,475 $ 428,446
Level I    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: 254,475 428,446
Cash    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: 57,363 79,378
Cash | Level I    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: 57,363 79,378
Money market funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: 197,112 349,068
Money market funds | Level I    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash and cash equivalents: $ 197,112 $ 349,068
v3.25.4
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]      
Interest income $ 11,310 $ 19,875 $ 23,767
v3.25.4
Balance Sheet Details - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 1,200,804 $ 949,555
Less: accumulated depreciation (524,829) (439,664)
Less: accumulated amortization (86,881) (77,347)
Property and equipment, net 589,094 432,544
Servers and related equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 933,576 833,893
Equipment under finance leases and financing obligations    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 144,819 12,138
Internal-use software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 121,735 94,981
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 412 6,985
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 262 1,558
Equipment Under Finance Leases    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization (11,502) (7,847)
Gross value $ 13,316 $ 12,138
v3.25.4
Balance Sheet Details - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Depreciation $ 107,255 $ 99,701 $ 90,466
Capitalized computer software 27,410 11,167 6,958
Amortization expense related to internal-use software $ 10,138 $ 7,925 $ 8,433
v3.25.4
Balance Sheet Details - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
VAT and sales tax receivable $ 27,934 $ 18,621
Prepaid rent 26,114 3,010
Prepaid expenses 22,396 17,544
Other current assets 5,154 1,611
Total prepaid expenses and other current assets $ 81,598 $ 40,786
v3.25.4
Balance Sheet Details - Schedule of Accrued Other Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued bonus $ 18,779 $ 14,599
Other accrued expenses 17,532 16,857
Accrued capital expenditures 3,731 3,788
Accrued payroll costs 2,637 2,912
Other current liabilities $ 42,679 $ 38,156
v3.25.4
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Sales and other taxes payable $ 57,454 $ 39,847
Other current liabilities 9,100 3,163
Employee contributions under ESPP 877 492
Excise taxes related to repurchase of common stock 79 0
Other current liabilities $ 67,510 $ 43,502
v3.25.4
Debt - Narrative (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 14, 2025
USD ($)
day
$ / shares
Aug. 11, 2025
$ / shares
May 05, 2025
USD ($)
Dec. 02, 2024
segment
Nov. 30, 2021
USD ($)
$ / shares
Dec. 31, 2025
USD ($)
Mar. 31, 2022
USD ($)
segment
day
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Feb. 24, 2026
USD ($)
Debt Instrument [Line Items]                      
Total obligations           $ 1,317,322,000   $ 1,317,322,000 $ 1,500,000,000    
Proceeds from issuance of 2030 Convertible Notes, net of issuance costs         $ 1,461,795,000            
Accumulated deficit           43,737,000   43,737,000 258,742,000    
Additional paid-in capital           (16,005,000)   (16,005,000) (57,282,000)    
Gain on extinguishment of debt, net               (48,104,000) 0 $ 0  
Capped Call Option                      
Debt Instrument [Line Items]                      
Strike price (in dollars per share) | $ / shares   $ 39.17                  
Initial price (in dollars per share) | $ / shares   $ 66.51                  
Premium percent   125.00%                  
Restricted stock share price (in dollars per share) | $ / shares   $ 29.56                  
Accumulated deficit           83,875,000   83,875,000      
Additional paid-in capital           83,875,000   83,875,000      
Deferred tax asset           18,804,000   18,804,000      
2030 Convertible Notes | Convertible Debt                      
Debt Instrument [Line Items]                      
Total obligations           625,000,000   625,000,000 0    
Interest rate 0.00%                    
Additional purchase amount $ 75,000,000                    
Proceeds from issuance of 2030 Convertible Notes, net of issuance costs 606,130,000                    
Prepaid expenses $ 18,870,000                    
Conversion ratio, number of shares 0.0255317                    
Conversion price (in dollars per share) | $ / shares $ 39.17                    
Long-term debt, fair value           301,406,000   301,406,000      
2030 Convertible Notes | Convertible Debt | Debt Conversion Terms One                      
Debt Instrument [Line Items]                      
Percentage of stock price trigger 130.00%                    
Trading days | day 20                    
Consecutive trading days | day 30                    
Debt instrument, face amount $ 100,000                    
Purchase of principle amount, percent 100.00%                    
2030 Convertible Notes | Convertible Debt | Debt Conversion Terms Two                      
Debt Instrument [Line Items]                      
Percentage of stock price trigger 98.00%                    
Trading days | day 5                    
Consecutive trading days | day 10                    
2025 Credit Facility | Line of Credit                      
Debt Instrument [Line Items]                      
Line of credit facility, maximum borrowing capacity     $ 500,000,000                
2025 Credit Facility | Line of Credit | Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Line of credit facility, maximum borrowing capacity     300,000,000                
Proceeds from financing arrangements     $ 30,000,000                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate                      
Debt Instrument [Line Items]                      
Variable rate     0.50%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                      
Debt Instrument [Line Items]                      
Variable rate     1.00%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Minimum                      
Debt Instrument [Line Items]                      
Commitment fee percentage     0.175%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Minimum | Applicable Margin Rate                      
Debt Instrument [Line Items]                      
Variable rate     0.25%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Maximum                      
Debt Instrument [Line Items]                      
Commitment fee percentage     0.35%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | Applicable Margin Rate                      
Debt Instrument [Line Items]                      
Variable rate     1.25%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Variable Rate Component One | Minimum | Secured Overnight Financing Rate (SOFR) Applicable Margin Rate                      
Debt Instrument [Line Items]                      
Variable rate     1.25%                
2025 Credit Facility | Line of Credit | Revolving Credit Facility | Variable Rate Component One | Maximum | Secured Overnight Financing Rate (SOFR) Applicable Margin Rate                      
Debt Instrument [Line Items]                      
Variable rate     2.25%                
Term Loan A | Line of Credit                      
Debt Instrument [Line Items]                      
Total obligations           380,000,000   380,000,000 0    
Debt issuance costs $ 2,897,000                    
Available borrowing capacity           120,000,000   120,000,000      
Term Loan A | Line of Credit | Subsequent Event                      
Debt Instrument [Line Items]                      
Available borrowing capacity                     $ 0
Term Loan A | Line of Credit | Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Debt issuance costs           1,986,000   1,986,000      
2026 Convertible Notes | Convertible Debt                      
Debt Instrument [Line Items]                      
Total obligations           312,322,000   312,322,000 $ 1,500,000,000    
Debt instrument, face amount         1,500,000,000            
Extinguishment of debt, amount 1,187,678,000                    
Debt issuance cost, writeoff 7,847,000                    
Gain on extinguishment of debt, net           (48,373,000)          
Long-term debt, fair value           $ 893,797,000   $ 893,797,000      
2026 Convertible Notes | Convertible Debt | Debt Conversion Terms One                      
Debt Instrument [Line Items]                      
Percentage of stock price trigger       130.00%     130.00%        
Trading days | segment       20     20        
Consecutive trading days | segment       30     30        
Purchase of principle amount, percent       100.00%       100.00%      
2026 Convertible Notes | Convertible Debt | Debt Conversion Terms Two                      
Debt Instrument [Line Items]                      
Percentage of stock price trigger             98.00%        
Trading days | day             5        
Consecutive trading days | day             10        
2026 Convertible Notes | Convertible Debt | Underwriters' Option                      
Debt Instrument [Line Items]                      
Consideration received         $ 200,000,000            
2026 Convertible Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Conversion ratio, number of shares         5.6018            
Conversion price (in dollars per share) | $ / shares         $ 178.51            
Convertible Senior Notes Due 2030 And Term Loan A | Convertible Debt                      
Debt Instrument [Line Items]                      
Payment for debt extinguishment $ 1,131,458,000                    
2022 Credit Facility | Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Available borrowing capacity             $ 250,000,000        
v3.25.4
Debt - Schedule of Convertible Notes (Details) - 2030 Convertible Notes - Convertible Debt
Aug. 14, 2025
day
$ / shares
shares
Debt Instrument [Line Items]  
Conversion ratio, number of shares 0.0255317
Initial Conversion Price (in dollars per share) | $ / shares $ 39.17
Initial number of shares (in shares) | shares 15,957,000
Debt Conversion Terms One  
Debt Instrument [Line Items]  
Percentage of stock price trigger 130.00%
Trading days 20
Consecutive trading days 30
Debt Conversion Terms Two  
Debt Instrument [Line Items]  
Percentage of stock price trigger 98.00%
Trading days 5
Consecutive trading days 10
v3.25.4
Debt - Schedule of Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total obligations $ 1,317,322 $ 1,500,000
Unamortized debt issuance costs (21,560) (14,634)
Carrying value of debt 1,295,762 1,485,366
Less: Debt, current (325,109) 0
Debt, long-term 970,653 1,485,366
2030 Convertible Notes | Convertible Debt    
Debt Instrument [Line Items]    
Total obligations 625,000 0
2026 Convertible Notes | Convertible Debt    
Debt Instrument [Line Items]    
Total obligations 312,322 1,500,000
Term Loan A | Line of Credit    
Debt Instrument [Line Items]    
Total obligations $ 380,000 $ 0
v3.25.4
Debt - Schedule of Interest Expense Related to Convertible Notes and Credit Facilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]      
Contractual interest expense $ 9,150 $ 508 $ 506
Amortization of debt issuance costs $ 7,418 $ 7,987 $ 7,949
v3.25.4
Debt - Schedule of Debt Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2026 $ 326,572  
2027 19,000  
2028 19,000  
2029 19,000  
2030 933,750  
Total future payments $ 1,317,322 $ 1,500,000
v3.25.4
Operating Leases - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]      
Sublease income $ 838 $ 1,677 $ 1,677
Undiscounted fixed payment obligations for leases that have not yet commenced $ 599,408    
Operating Lease, Lease Not yet Commenced      
Lessee, Lease, Description [Line Items]      
Lease term, operating leases for co-location space at data center facilities that have not yet commenced 9 years 7 months 6 days    
Minimum      
Lessee, Lease, Description [Line Items]      
Operating lease, term 3 years    
Maximum      
Lessee, Lease, Description [Line Items]      
Operating lease, term 10 years    
v3.25.4
Operating Leases - Schedule of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease expense $ 116,713 $ 89,831 $ 80,639
Variable lease expense 10,365 8,653 11,317
Short-term lease expense 335 37 418
Total operating lease expense $ 127,413 $ 98,521 $ 92,374
v3.25.4
Operating Leases - Supplemental Balance Sheet Information (Details)
Dec. 31, 2025
Dec. 31, 2024
Operating Lease Weighted Average    
Weighted-average remaining lease term (in years) 3 years 4 months 24 days 3 years 9 months 18 days
Weighted-average discount rate 6.00% 6.00%
v3.25.4
Operating Leases - Maturities of Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 119,171  
2027 85,241  
2028 35,318  
2029 25,004  
2030 20,154  
Thereafter 17,538  
Total undiscounted operating lease liabilities 302,426  
Less: Imputed interest (27,494)  
Total present value of operating lease liabilities 274,932  
Less: Current portion of operating lease liabilities (108,037) $ (75,785)
Operating lease liabilities, long-term $ 166,895 $ 130,431
v3.25.4
Finance Leases and Equipment Financing Obligations - Narrative (Details) - USD ($)
$ in Thousands
Jan. 31, 2026
Dec. 31, 2025
Aug. 31, 2025
Dec. 31, 2024
Lessee, Lease, Description [Line Items]        
Finance lease liabilities and equipment financing obligations, current   $ 31,411   $ 3,550
Finance lease liabilities and equipment financing obligations, long-term   99,103    
Finance lease liability   130,514 $ 131,503  
Finance lease, liability, to be paid   148,336    
Subsequent Event        
Lessee, Lease, Description [Line Items]        
Finance lease, liability, to be paid $ 60,698      
Finance lease, term 4 years      
Equipment Under Finance Leases        
Lessee, Lease, Description [Line Items]        
Finance lease liabilities and equipment financing obligations, current   1,652    
Finance lease liabilities and equipment financing obligations, long-term   $ 287    
v3.25.4
Finance Leases and Equipment Financing Obligations - Supplemental Balance Sheet Information (Details)
Dec. 31, 2025
Dec. 31, 2024
Finance Lease Weighted Average [Abstract]    
Weighted-average remaining term (in years) 3 years 10 months 24 days 1 year 4 months 24 days
Weighted-average discount rate 7.00% 8.00%
v3.25.4
Finance Leases and Equipment Financing Obligations - Maturities of Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Aug. 31, 2025
Dec. 31, 2024
Leases [Abstract]      
2026 $ 39,240    
2027 37,796    
2028 37,592    
2029 33,708    
Total undiscounted finance lease liabilities and equipment financing obligations 148,336    
Less: Imputed interest (17,822)    
Total present value of finance lease liabilities and equipment financing obligations 130,514 $ 131,503  
Less: Finance lease liabilities and equipment financing obligations, current (31,411)   $ (3,550)
Finance lease liabilities and equipment financing obligations, long-term $ 99,103    
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Finance lease liabilities and equipment financing obligations, long-term    
v3.25.4
Commitments and Contingencies - Scheduled of Future Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2026 $ 20,174
2027 20,227
2028 622
Purchase Obligation, Total $ 41,023
v3.25.4
Commitments and Contingencies - Narrative (Details)
$ in Thousands
Dec. 31, 2025
debt_instrument
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]    
Letters of credit outstanding, amount | $   $ 1,747
Letters of credit, number remaining | debt_instrument 0  
v3.25.4
Stockholders’ Equity - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Aug. 11, 2025
Feb. 20, 2024
Class of Stock [Line Items]          
Common stock, shares authorized (in shares) 750,000,000 750,000,000      
Common stock, par value (in dollars per share) $ 0.000025 $ 0.000025      
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000      
Preferred stock, par value (in dollars per share) $ 0.000025 $ 0.000025      
Repurchase and retirement of common stock including related costs $ 82,202 $ 54,901 $ 493,339    
2024 Share Buyback Program          
Class of Stock [Line Items]          
Stock repurchase program, authorized amount         $ 140,000
Repurchase and retirement of common stock (in shares) 2,356,547        
Repurchase and retirement of common stock including related costs $ 82,124        
Percent of excise tax on net share repurchases 1.00%        
2025 Share Buyback Program          
Class of Stock [Line Items]          
Stock repurchase program, authorized amount       $ 100,000  
v3.25.4
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Feb. 18, 2025
shares
Feb. 12, 2024
USD ($)
day
Jun. 10, 2021
installment
trading_day
Mar. 31, 2021
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Apr. 21, 2025
shares
Apr. 11, 2024
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock options, exercised in period, intrinsic value | $         $ 12,475 $ 51,479 $ 156,819    
Options, granted, number (in shares)         0        
Stock options, granted in period, aggregate estimated fair value | $           6,001 12,888    
Share-based payment arrangement, expense | $         $ 80,315 $ 90,545 88,347    
Stock Options                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock options, expiration period         10 years        
Stock options, vesting period         4 years        
RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock options, vesting period         4 years        
Unrecognized stock-based compensation expense | $         $ 123,535        
Unrecognized stock-based compensation expense, average recognition period         2 years 8 months 12 days        
RSU, unvested, number at beginning of period (in shares)         4,456,145 5,215,300      
PRSUs                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized stock-based compensation expense | $         $ 2,356        
Unrecognized stock-based compensation expense, average recognition period         2 years 1 month 6 days        
Number of quarterly installments | installment     8            
Percentage of awards based on revenue targets               75.00% 75.00%
Percentage of awards based on adjusted free cash flow margin targets               25.00% 25.00%
Percentage of target award (in percent) 94.80%                
Performance factor reduction (in shares) 88,865       88,865        
Maximum shares achievable, excluding forfeitures (in shares) 168,944                
Number of total target shares (in shares)               218,486 84,472
Maximum number of achievable shares (in shares)         436,972        
RSU, unvested, number at beginning of period (in shares)         314,718 183,919      
PRSUs | Tranche 1                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage     33.33%            
PRSUs | Tranche 3                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage     33.33%            
PRSUs | Tranche 2                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage     33.33%            
PRSUs | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage         0.00%        
PRSUs | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage         200.00%        
Number of trading days | trading_day     2            
MRSUs                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Trading day period during the performance period | day   60              
RSU, unvested, number at beginning of period (in shares)         289,767 289,767      
Share-based payment arrangement, expense | $             31,279    
MRSUs | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock options, vesting period         3 years 2 months 12 days        
Unrecognized stock-based compensation expense | $         $ 3,983        
Maximum shares achievable, excluding forfeitures (in shares)         289,767        
Number of total target shares (in shares)         193,178        
Grant date fair value | $   $ 8,000              
Performance period   5 years              
Weighted-average grant date fair value (in dollars pre share) | $ / shares         $ 27.61        
MRSUs | Chief Executive Officer | Tranche 1                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock options, vesting period   3 years              
MRSUs | Chief Executive Officer | Share-Based Payment Arrangement, If Three Year Stock Price Targets Achieved, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage   50.00%              
MRSUs | Chief Executive Officer | Share-Based Payment Arrangement, If Three Year Stock Price Targets Achieved, Tranche Two                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting percentage   50.00%              
2021 Employee Stock Purchase Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Shares of common stock reserved for future issuance, number available for grant (in shares)         25,197,755        
2021 Employee Stock Purchase Plan | Employee Stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Shares of common stock reserved for future issuance, number available for grant (in shares)         5,120,628        
Purchase price of common stock, percent       85.00%          
2022 Employee Stock Purchase Plan | Employee Stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based payment arrangement, expense | $         $ 2,312 $ 1,676 $ 2,290    
v3.25.4
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]    
Number of options outstanding at the beginning of the period (in shares) 1,425,656  
Exercised (in shares) (452,638)  
Forfeited or cancelled (in shares) (12,539)  
Number of options outstanding at the end of the period (in shares) 960,479 1,425,656
Vested and exercisable at end of period (in shares) 960,479  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]    
Weighted-average exercise price outstanding at beginning of period (in dollars per share) $ 12.17  
Exercised (in dollars per share) 9.59  
Forfeited or cancelled (in dollars per share) 13.92  
Weighted-average exercise price outstanding at end of period (in dollars per share) 13.36 $ 12.17
Vested and exercisable at end of period (in dollars per share) $ 13.36  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest [Abstract]    
Weighted average remaining life (in years) 4 years 3 months 18 days 5 years 2 months 12 days
Vested and exercisable at end of period (in years) 4 years 3 months 18 days  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract]    
Aggregate intrinsic value at beginning of period $ 31,223  
Aggregate intrinsic value at end of period 33,385 $ 31,223
Vested and exercisable at December 31, 2025 $ 33,385  
v3.25.4
Stock-Based Compensation - Schedule of RSU & PRSU Activity (Details) - $ / shares
 12 Months Ended
Feb. 18, 2025
Dec. 31, 2025
RSUs    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Unvested balance at beginning of period (in shares)   5,215,300
Granted (in shares)   2,714,355
Vested (in shares)   (2,173,661)
Forfeited or cancelled (in shares)   (1,299,849)
Unvested balance at end of period (in shares)   4,456,145
Vested and expected to vest (in shares)   3,664,193
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Unvested balance at beginning of period (in dollars per share)   $ 36.40
Granted (in dollars per share)   36.87
Vested (in dollars per share)   37.15
Forfeited or cancelled (in dollars per share)   35.91
Unvested balance at end of period (in dollars per share)   36.46
Vested and expected to vest (in dollars per share)   $ 36.34
PRSUs    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Unvested balance at beginning of period (in shares)   183,919
Granted (in shares)   436,972
Vested (in shares)   (58,692)
Forfeited or cancelled (in shares)   (158,616)
Adjusted by performance factor (in shares) (88,865) (88,865)
Unvested balance at end of period (in shares)   314,718
Vested and expected to vest (in shares)   312,900
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Unvested balance at beginning of period (in dollars per share)   $ 36.09
Granted (in dollars per share)   30.75
Vested (in dollars per share)   35.51
Forfeited or cancelled (in dollars per share)   30.75
Adjusted for performance factor (in dollars per share)   36.48
Unvested balance at end of period (in dollars per share)   31.37
Vested and expected to vest (in dollars per share)   $ 31.37
v3.25.4
Stock-Based Compensation - MRSUs Share-Based Payment Arrangements and Price Targets (Details) - MRSUs - Chief Executive Officer
Dec. 31, 2025
$ / shares
Tranche 1  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Company Stock Price Target (in dollars per share) $ 65.00
Total Payout 25.00%
Tranche 2  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Company Stock Price Target (in dollars per share) $ 100.00
Total Payout 50.00%
Tranche 3  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Company Stock Price Target (in dollars per share) $ 135.00
Total Payout 100.00%
Tranche 4  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Company Stock Price Target (in dollars per share) $ 170.00
Total Payout 150.00%
v3.25.4
Stock-Based Compensation - MRSUs Pricing Model (Details)
 12 Months Ended
Dec. 31, 2025
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Dividend yield 0.00%
MRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected volatility 71.30%
Expected term (in years) 5 years
Risk-free interest rate 4.10%
Dividend yield 0.00%
Stock price at grant date (per share) $ 39.43
Weighted-average fair value of awards (per share) $ 27.61
v3.25.4
Stock-Based Compensation - Summary of 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 $ 80,315 $ 90,545 $ 88,347
MRSUs      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total     31,279
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total 5,435 5,889 5,685
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total 34,939 38,285 42,040
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total 11,646 10,093 13,177
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total 28,295 36,278 23,508
Restructuring and other charges      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total $ 0 $ 0 $ 3,937
v3.25.4
Net Income per Share Attributable to Common Stockholders - Schedule of Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income attributable to common stockholders $ 259,262 $ 84,492 $ 19,409
Weighted average shares used to compute net income per share (in shares) 91,481,000 91,634,000 90,141,000
Basic net income per share attributable to common stockholders (in dollars per share) $ 2.83 $ 0.92 $ 0.22
Diluted net income per share:      
Interest expense on dilutive convertible notes, net of tax $ 5,693 $ 0 $ 0
Net income used in diluted calculation $ 264,955 $ 84,492 $ 19,409
Number of shares used in basic calculation (in shares) 91,481,000 91,634,000 90,141,000
Diluted (in shares) 105,343,000 94,503,000 96,415,000
Diluted net income per share attributable to common stockholders (in dollars per share) $ 2.52 $ 0.89 $ 0.20
Stock Options      
Diluted net income per share:      
Diluted (in shares) 750,000 1,414,000 5,698,000
RSUs      
Diluted net income per share:      
Diluted (in shares) 1,068,000 1,370,000 495,000
PRSUs      
Diluted net income per share:      
Diluted (in shares) 98,000 85,000 81,000
2026 Convertible Notes      
Diluted net income per share:      
Diluted (in shares) 5,869,000 0 0
2030 Convertible Notes      
Diluted net income per share:      
Diluted (in shares) 6,077,000 0 0
v3.25.4
Net Income per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share, amount (in shares) 1,724,000 9,604,000 10,032,000
Stock Options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share, amount (in shares) 0 1,000 41,000
RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share, amount (in shares) 1,724,000 1,200,000 1,574,000
PRSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share, amount (in shares) 0 0 14,000
2026 Convertible Notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share, amount (in shares) 0 8,403,000 8,403,000
v3.25.4
Income Taxes - Total Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. $ 196,847 $ 75,651 $ 174
Foreign 9,815 22,048 26,602
Income before taxes $ 206,662 $ 97,699 $ 26,776
v3.25.4
Income Taxes - Schedule of Current and Deferred Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ (13,711) $ (5,437) $ (829)
State (1,368) (1,786) 99
Foreign (2,622) (3,443) (6,835)
Total current (17,701) (10,666) (7,565)
Deferred:      
Federal 61,761 (144) (140)
State 7,929 (1) 120
Foreign 611 (2,396) 218
Total deferred 70,301 (2,541) 198
Income tax benefit (expense) $ 52,600 $ (13,207) $ (7,367)
v3.25.4
Income Taxes - Tax Rate Reconciliation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract]      
U.S. federal statutory tax rate $ (43,399,000) $ (20,517,000) $ (5,623,000)
State and local taxes, net of federal benefit 5,183,000 (1,412,000) 2,509,000
Foreign tax effects (105,000) 3,858,000 (1,030,000)
Foreign-derived intangible income deduction 6,250,000 3,140,000 970,000
Other (482,000)    
Tax credits 445,000    
Changes in valuation allowances 98,341,000 (44,559,000) (138,000)
162(m) limitation (4,161,000) (9,295,000) (17,072,000)
Other non-taxable or non-deductible items (494,000)    
Changes in unrecognized tax benefits (9,754,000) (4,360,000) (1,083,000)
Other 776,000 (3,814,000) 15,000
Income tax benefit (expense) $ 52,600,000 $ (13,207,000) $ (7,367,000)
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
U.S. federal statutory tax rate (21.00%)    
State and local income tax, net of federal income tax effect 2.51%    
Foreign tax effects (0.05%)    
Foreign-derived intangible income deduction 3.02%    
Other (0.23%)    
Tax credits 0.22%    
Changes in valuation allowances 47.59%    
162(m) limitation (2.01%)    
Other non-taxable or non-deductible items (0.24%)    
Changes in unrecognized tax benefits (4.72%)    
Other 0.38%    
Total tax benefit 25.45%    
v3.25.4
Income Taxes - Tax Rate Reconciliation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Income tax benefit (expense) at federal statutory rate $ (43,399,000) $ (20,517,000) $ (5,623,000)
State and local taxes, net of federal benefit 5,183,000 (1,412,000) 2,509,000
Foreign tax rate differential (105,000) 3,858,000 (1,030,000)
Stock-based compensation deductions   5,698,000 17,998,000
Nondeductible expenses   (2,206,000) 14,000
Unrecognized tax positions (9,754,000) (4,360,000) (1,083,000)
Net change in valuation allowance 98,341,000 (44,559,000) (138,000)
Global intangible low-tax income   (110,000) 0
Foreign-derived intangible income deduction 6,250,000 3,140,000 970,000
162(m) limitation (4,161,000) (9,295,000) (17,072,000)
U.S. R&D tax credits   3,402,000 2,810,000
Valuation allowance release related to acquisition   0 1,074,000
Acquisition related compensation   (2,659,000) (7,811,000)
Impact of intra-entity intellectual property rights transfer   59,627,000 0
Other 776,000 (3,814,000) 15,000
Income tax benefit (expense) $ 52,600,000 $ (13,207,000) $ (7,367,000)
v3.25.4
Income Taxes - Income Taxes Paid (Net of Refunds Received) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Federal $ 2,000    
State 1,872    
Foreign 2,410    
Cash paid for taxes, net of refunds $ 6,282 $ 19,667 $ 2,723
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]        
U.S. federal statutory tax rate   21.00%    
Cash paid for taxes, net of refunds   $ 6,282 $ 19,667 $ 2,723
Income tax benefit (expense)   52,600 (13,207) (7,367)
U.S. federal and certain state deferred tax assets $ 69,939      
Unrecognized tax benefits that would impact effective tax rate   17,599    
Uncertain tax positions expense   13,921    
Interest expense and penalties   7,446 $ 2,864 $ 1,816
Domestic Tax Jurisdiction        
Operating Loss Carryforwards [Line Items]        
NOL carryforwards   16,712    
Tax credits   4,311    
State and Local Jurisdiction        
Operating Loss Carryforwards [Line Items]        
NOL carryforwards   13,212    
Tax credits   1,569    
Foreign Tax Authority | Unlimited Tax Years        
Operating Loss Carryforwards [Line Items]        
NOL carryforwards   $ 10,014    
v3.25.4
Income Taxes - Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Accounts receivable $ 1,334 $ 1,261
Accrued expenses 1,771 2,354
Capitalized research and development 34,541 44,724
Operating lease liability 62,689 32,398
Net operating loss carryforwards 7,030 11,498
Stock-based compensation 3,362 3,389
Tax credit carryforwards 6,498 17,778
Depreciation and amortization 10,788 18,538
Capped call 17,445 0
Other 2,365 2,593
Gross deferred tax assets 147,823 134,533
Less: valuation allowance 0 (109,541)
Deferred tax assets 147,823 24,992
Deferred tax liability    
Operating lease ROU asset (61,605) (28,915)
Total deferred tax liability (61,605) (28,915)
Total net deferred tax asset (liability) $ 86,218  
Total net deferred tax asset (liability)   $ (3,923)
v3.25.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance of unrecognized tax benefits at beginning of year $ 22,392 $ 20,337 $ 17,044
Additions based on tax positions related to the current period 4,325 5,209 1,571
Additions for tax positions of prior periods 3,629 816 1,947
Reductions for tax positions of prior periods (2,277) (3,162) 0
Release due to expiration of statute of limitations (1,241) (808) (225)
Balance of unrecognized tax benefits at end of year $ 26,828 $ 22,392 $ 20,337
v3.25.4
Segment and Geographical Information -Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 859,948 $ 620,421
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 610,135 381,708
Netherlands    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 70,829 76,707
Germany    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 50,953 44,489
Singapore    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 46,585 27,958
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 33,058 32,688
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 48,388 $ 56,871
v3.25.4
Employee Benefit Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Contribution Plan Disclosure [Line Items]      
Percent of employees' gross pay 3.00%    
Contributions made $ 3,223 $ 2,944 $ 2,987
Contributions up to 3% of gross pay      
Defined Contribution Plan Disclosure [Line Items]      
Company's match (percent) 100.00%    
Contributions up to 3%-5% of gross pay      
Defined Contribution Plan Disclosure [Line Items]      
Company's match (percent) 50.00%    
Minimum      
Defined Contribution Plan Disclosure [Line Items]      
Percent of employees' gross pay 3.00%    
Maximum      
Defined Contribution Plan Disclosure [Line Items]      
Percent of employees' gross pay 5.00%    
v3.25.4
Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Expenses from transactions with related parties $ 2,735 $ 2,158 $ 549
Marketing and Referral Activity Fee      
Related Party Transaction [Line Items]      
Expenses from transactions with related parties 1,176 1,400 224
Reimbursable Compensation Related      
Related Party Transaction [Line Items]      
Expenses from transactions with related parties 431 337 273
Referral Fee      
Related Party Transaction [Line Items]      
Expenses from transactions with related parties $ 1,128 $ 421 $ 52