HINGE HEALTH, INC., 10-Q filed on 8/11/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 31, 2025
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Trading Symbol HNGE  
Entity Registrant Name Hinge Health, Inc.  
Entity Central Index Key 0001673743  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity File Number 001-42657  
Entity Tax Identification Number 81-1884841  
Entity Address, Address Line One 455 Market Street  
Entity Address, Address Line Two Suite 700  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94105  
City Area Code 415  
Local Phone Number 726-2206  
Entity Shell Company false  
Title of 12(b) Security Class A Common Stock, par value $0.00001 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,223,448
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   51,211,799
Series E Redeemable Convertible Preferred Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   2,581,837
v3.25.2
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 237,170 $ 300,785
Marketable securities 176,087 165,787
Accounts receivable, net of allowance for credit losses of $7,649 and $6,470 as of June 30, 2025 and December 31, 2024, respectively 99,299 42,495
Deferred commissions 24,354 18,615
Inventory 13,987 10,873
Prepaid expenses and other current assets 47,528 44,891
Total current assets 598,425 583,446
Goodwill 64,096 61,607
Intangible assets, net 2,961 1,807
Property, equipment and software, net 7,724 7,380
Operating lease right-of-use assets 8,605 9,607
Other assets 11,843 9,412
Total assets 693,654 673,259
Current liabilities:    
Accounts payable and accrued liabilities 34,898 27,853
Operating lease liabilities 4,047 3,814
Deferred revenue 275,138 217,632
Total current liabilities 314,083 249,299
Operating lease liabilities, noncurrent 5,919 7,258
Total liabilities 320,002 256,557
Commitments and Contingencies (Note 6)
Redeemable convertible preferred stock:    
Redeemable convertible preferred stock, $0.00001 par value; 4,330,341 shares of Series E authorized, 2,581,837 shares of Series E preferred stock issued and outstanding as of June 30, 2025, 48,190,771 shares authorized and 48,150,146 shares issued and outstanding as of December 31, 2024; aggregate liquidation preference of $200,000 and $845,478 as of June 30, 2025 and December 31, 2024, respectively 199,874 851,272
Stockholders' equity (deficit):    
Common stock, value 0 0
Additional paid-in capital 1,255,059 88,097
Accumulated other comprehensive gain (loss) (34) 68
Accumulated deficit (1,081,247) (522,735)
Total stockholders' equity (deficit) 173,778 (434,570)
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) 693,654 $ 673,259
Class A Common Stock    
Stockholders' equity (deficit):    
Common stock, value 0  
Class B Common Stock    
Stockholders' equity (deficit):    
Common stock, value $ 0  
v3.25.2
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Allowance for credit losses on accounts receivable $ 7,649 $ 6,470
Temporary equity, shares authorized 4,330,341 48,190,771
Temporary equity, shares issued 2,581,837 48,150,146
Temporary equity, shares outstanding 2,581,837 48,150,146
Temporary equity, liquidation preference $ 200,000 $ 845,478
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares authorized 0 98,109,595
Common stock, shares issued 0 16,379,906
Common stock, shares outstanding 0 16,379,906
Class A Common Stock    
Common stock, par value $ 0.00001  
Common stock, shares authorized 1,000,000,000  
Common stock, shares issued 26,909,512  
Common stock, shares outstanding 26,909,512  
Class B Common Stock    
Common stock, par value $ 0.00001  
Common stock, shares authorized 120,000,000  
Common stock, shares issued 51,216,506  
Common stock, shares outstanding 51,216,506  
Series E Redeemable Convertible Preferred Stock    
Temporary equity, par value $ 0.00001 $ 0.00001
Temporary equity, shares authorized 4,330,341 5,163,674
Temporary equity, shares issued 2,581,837 5,163,674
Temporary equity, shares outstanding 2,581,837 5,163,674
Temporary equity, liquidation preference $ 200,000 $ 400,000
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Unaudited - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Statement [Abstract]        
Revenue $ 139,098 $ 89,825 $ 262,923 $ 172,533
Cost of revenue 41,335 23,208 64,927 47,976
Gross profit 97,763 66,617 197,996 124,557
Operating expenses:        
Research and development 279,962 24,920 303,462 54,683
Sales and marketing 147,228 44,894 193,944 87,037
General and administrative 251,244 14,354 268,125 31,812
Total operating expenses 678,434 84,168 765,531 173,532
Loss from operations (580,671) (17,551) (567,535) (48,975)
Other income:        
Other income, net 4,694 4,986 9,695 10,104
Net loss before income taxes (575,977) (12,565) (557,840) (38,871)
Provision (benefit) for income taxes (326) 361 672 519
Net loss (575,651) (12,926) (558,512) (39,390)
Adjustment to reflect deemed contribution from Series D and Series E redeemable convertible preferred stock extinguishment [1] 0 0 104,174 0
Net loss attributable to common stockholders $ (575,651) $ (12,926) $ (454,338) $ (39,390)
Net loss per share attributable to common stockholders, basic $ (13.1) $ (0.96) $ (15.05) $ (2.93)
Net loss per share attributable to common stockholders, diluted $ (13.1) $ (0.96) $ (15.05) $ (2.93)
Weighted average shares attributable to common stockholders, basic 43,931 13,528 30,190 13,455
Weighted average shares attributable to common stockholders, diluted 43,931 13,528 30,190 13,455
Other comprehensive loss:        
Unrealized loss on marketable securities, net of taxes $ (44) $ (11) $ (102) $ (116)
Comprehensive Loss $ (575,695) $ (12,937) $ (558,614) $ (39,506)
[1] As discussed in Note 7, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net income attributable to common stockholders.
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY (DEFICIT) Unaudited - USD ($)
$ in Thousands
Total
IPO [Member]
Common Stock
Common Stock
IPO [Member]
Additional Paid-in Capital
Additional Paid-in Capital
IPO [Member]
Accumulated Other Comprehensive (Income) Loss
Accumulated Deficit
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock
IPO [Member]
Temporary Equity, Beginning Balance (Shares) at Dec. 31, 2023                 48,150,146  
Temporary Equity, Beginning Balance at Dec. 31, 2023                 $ 851,272  
Beginning Balance (Shares) at Dec. 31, 2023     15,956,516              
Beginning Balance at Dec. 31, 2023 $ (423,994)       $ 86,748   $ 60 $ (510,802)    
Issuance of common stock upon exercise of options (Shares)     36,122              
Issuance of common stock upon exercise of options 61       61          
Stock-based compensation 304       304          
Unrealized loss on marketable securities (105)           (105)      
Net income (loss) (26,464)             (26,464)    
Temporary Equity, Ending Balance (Shares) at Mar. 31, 2024                 48,150,146  
Temporary Equity, Ending Balance at Mar. 31, 2024                 $ 851,272  
Ending Balance (Shares) at Mar. 31, 2024     15,992,638              
Ending Balance at Mar. 31, 2024 (450,198)       87,113   (45) (537,266)    
Temporary Equity, Beginning Balance (Shares) at Dec. 31, 2023                 48,150,146  
Temporary Equity, Beginning Balance at Dec. 31, 2023                 $ 851,272  
Beginning Balance (Shares) at Dec. 31, 2023     15,956,516              
Beginning Balance at Dec. 31, 2023 (423,994)       86,748   60 (510,802)    
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment [1] 0                  
Unrealized loss on marketable securities (116)                  
Net income (loss) (39,390)                  
Temporary Equity, Ending Balance (Shares) at Jun. 30, 2024                 48,150,146  
Temporary Equity, Ending Balance at Jun. 30, 2024                 $ 851,272  
Ending Balance (Shares) at Jun. 30, 2024     16,164,963              
Ending Balance at Jun. 30, 2024 (462,610)       87,638   (56) (550,192)    
Temporary Equity, Beginning Balance (Shares) at Mar. 31, 2024                 48,150,146  
Temporary Equity, Beginning Balance at Mar. 31, 2024                 $ 851,272  
Beginning Balance (Shares) at Mar. 31, 2024     15,992,638              
Beginning Balance at Mar. 31, 2024 (450,198)       87,113   (45) (537,266)    
Issuance of common stock upon exercise of options (Shares)     172,325              
Issuance of common stock upon exercise of options 219       219          
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment [1] 0                  
Stock-based compensation 306       306          
Unrealized loss on marketable securities (11)           (11)      
Net income (loss) (12,926)             (12,926)    
Temporary Equity, Ending Balance (Shares) at Jun. 30, 2024                 48,150,146  
Temporary Equity, Ending Balance at Jun. 30, 2024                 $ 851,272  
Ending Balance (Shares) at Jun. 30, 2024     16,164,963              
Ending Balance at Jun. 30, 2024 $ (462,610)       87,638   (56) (550,192)    
Temporary Equity, Beginning Balance (Shares) at Dec. 31, 2024 48,150,146               48,150,146  
Temporary Equity, Beginning Balance at Dec. 31, 2024 $ 851,272               $ 851,272  
Beginning Balance (Shares) at Dec. 31, 2024     16,379,906              
Beginning Balance at Dec. 31, 2024 (434,570)       88,097   68 (522,735)    
Issuance of common stock upon exercise of options (Shares)     65,750              
Issuance of common stock upon exercise of options 97       97          
Proceeds From Repayment Of Recourse Loans For Settlement Of Restricted Stock Awards 4,935       4,935          
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment                 $ (104,174)  
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment 104,174       104,174          
Stock-based compensation 7       7          
Unrealized loss on marketable securities (58)           (58)      
Net income (loss) 17,139             17,139    
Temporary Equity, Ending Balance (Shares) at Mar. 31, 2025                 48,150,146  
Temporary Equity, Ending Balance at Mar. 31, 2025                 $ 747,098  
Ending Balance (Shares) at Mar. 31, 2025     16,445,656              
Ending Balance at Mar. 31, 2025 $ (308,276)       197,310   10 (505,596)    
Temporary Equity, Beginning Balance (Shares) at Dec. 31, 2024 48,150,146               48,150,146  
Temporary Equity, Beginning Balance at Dec. 31, 2024 $ 851,272               $ 851,272  
Beginning Balance (Shares) at Dec. 31, 2024     16,379,906              
Beginning Balance at Dec. 31, 2024 (434,570)       88,097   68 (522,735)    
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment [1] (104,174)                  
Unrealized loss on marketable securities (102)                  
Net income (loss) $ (558,512)                  
Temporary Equity, Ending Balance (Shares) at Jun. 30, 2025 2,581,837               2,581,837  
Temporary Equity, Ending Balance at Jun. 30, 2025 $ 199,874               $ 199,874  
Ending Balance (Shares) at Jun. 30, 2025     78,126,018              
Ending Balance at Jun. 30, 2025 173,778       1,255,059   (34) (1,081,247)    
Temporary Equity, Beginning Balance (Shares) at Mar. 31, 2025                 48,150,146  
Temporary Equity, Beginning Balance at Mar. 31, 2025                 $ 747,098  
Beginning Balance (Shares) at Mar. 31, 2025     16,445,656              
Beginning Balance at Mar. 31, 2025 (308,276)       197,310   10 (505,596)    
Issuance of common stock upon exercise of options (Shares)     120,657              
Issuance of common stock upon exercise of options 159       159          
Adjustment to reflect deemed contribution from Series and Series E redeemable convertible preferred stock extinguishment [1] 0                  
Temporary Equity, Settlement of repurchase agreement (Shares)                 (4,983,533)  
Temporary Equity, Settlement of repurchase agreement                 $ (200,694)  
Settlement of repurchase agreement (Shares)     4,150,200              
Settlement of repurchase agreement 150,694       150,694          
Temporary Equity, Conversion of redeemable convertible preferred stock to Class B common stock in connection with initial public offering (Shares)                   (40,584,776)
Temporary Equity, Conversion of redeemable convertible preferred stock to Class B common stock in connection with initial public offering                   $ (346,530)
Conversion of redeemable convertible preferred stock to Class B common stock in connection with initial public offering (Shares)       40,584,776            
Conversion of redeemable convertible preferred stock to Class B common stock in connection with initial public offering   $ 346,530       $ 346,530        
Issuance of Class A common stock pursuant to the initial public offering, net of issuance and offering costs (Shares)       8,522,528            
Issuance of Class A common stock pursuant to the initial public offering, net of issuance and offering costs   $ 241,641       $ 241,641        
Issuance of common stock upon settlement of restricted stock units and performance-based restricted stock units (Shares)     16,815,445              
Tax withholdings on settlement of restricted stock units and performance-based restricted stock units (Shares)     (8,513,244)              
Tax withholdings on settlement of restricted stock units and performance-based restricted stock units (272,258)       (272,258)          
Stock-based compensation 590,983       590,983          
Unrealized loss on marketable securities (44)           (44)      
Net income (loss) $ (575,651)             (575,651)    
Temporary Equity, Ending Balance (Shares) at Jun. 30, 2025 2,581,837               2,581,837  
Temporary Equity, Ending Balance at Jun. 30, 2025 $ 199,874               $ 199,874  
Ending Balance (Shares) at Jun. 30, 2025     78,126,018              
Ending Balance at Jun. 30, 2025 $ 173,778       $ 1,255,059   $ (34) $ (1,081,247)    
[1] As discussed in Note 7, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net income attributable to common stockholders.
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Operating activities    
Net Income (Loss) $ (558,512) $ (39,390)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 2,646 3,168
Stock-based compensation 590,990 610
Amortization of deferred commissions 19,870 13,411
Accretion of discounts and amortization of premiums on marketable securities, net 326 217
Excess and obsolete inventory charge 0 1,812
Non-cash operating lease expense 1,688 1,833
Provision for credit losses 2,780 2,487
Deferred income taxes 96  
Other (2) (3)
Changes in operating assets and liabilities:    
Accounts receivable (59,584) (23,281)
Deferred commissions (27,650) (18,171)
Inventory (3,114) 1,137
Prepaid expenses and other current assets (6,609) 1,295
Other assets (485) 239
Accounts payable and accrued liabilities 6,997 (7,661)
Operating lease liabilities (1,792) (2,372)
Deferred revenue 57,505 46,934
Net cash provided by (used in) operating activities 25,150 (17,735)
Investing activities    
Purchase of property and equipment (248) (567)
Capitalized internal use software (2,336) (1,316)
Purchases of marketable securities (175,282) (160,768)
Maturities of marketable securities 164,556 181,550
Acquisition of a business (4,000)  
Net cash provided by (used in) investing activities (17,310) 18,899
Financing activities    
Proceeds from exercise of common stock options 256 277
Proceeds from issuance of common stock in initial public offering, net of issuance costs 255,675  
Tax withholdings on settlement of restricted stock units and performance-based restricted stock units (272,258)  
Payment on Repurchase Agreement with Coatue (50,000)  
Proceeds from repayment of non-recourse loans to employees 4,934  
Payments for deferred offering costs (10,061) (125)
Net cash provided by (used in) financing activities (71,454) 152
Net increase (decrease) in cash (63,614) 1,316
Cash, cash equivalents and restricted cash, beginning of period 302,586 237,474
Cash, cash equivalents and restricted cash, end of period 238,972 238,790
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:    
Cash and cash equivalents 237,170 236,628
Restricted cash 1,802 2,162
Total cash, cash equivalents and restricted cash 238,972 238,790
Supplemental disclosures of noncash operating activities    
Cash paid for income taxes 199 207
Supplemental disclosures of noncash investing and financing activities    
Property and equipment purchased and unpaid at period end   366
Unpaid deferred offering costs at period end 538 $ 361
Right-of use assets obtained in exchange for lease obligations 686  
Conversion of redeemable convertible preferred stock for Coatue in connection with initial public offering 150,694  
Conversion of redeemable convertible preferred stock for all other in connection with initial public offering 346,530  
Adjustment to reflect deemed contribution from Series D and E redeemable convertible preferred stock extinguishment $ 104,174  
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure            
Net Income (Loss) $ (575,651) $ 17,139 $ (12,926) $ (26,464) $ (558,512) $ (39,390)
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

During the three months ended June 30, 2025, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as follows:

 

•
On June 12, 2025, James Budge, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement (the "Budge Rule 10b5-1 Plan") intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 172,286 shares of our Class A common stock. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan or August 31, 2026. On August 7, 2025, James Budge entered into a modification letter to the Budge Rule 10b5-1 Plan reducing the number of shares of Class A common stock for sale to up to 140,723 shares.
•
On June 13, 2025, James Pursley, our President, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 175,000 shares of our Class A common stock. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan or September 30, 2026.
Directors or Officers  
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non Rule 10b5-1 Arrangement Modified false
James Budge  
Trading Arrangements, by Individual  
Name James Budge
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date June 12, 2025
Expiration Date August 31, 2026
Aggregate Available 172,286
James Pursley  
Trading Arrangements, by Individual  
Name James Pursley
Title President,
Rule 10b5-1 Arrangement Adopted true
Adoption Date June 13, 2025
Expiration Date September 30, 2026
Aggregate Available 175,000
Rule 10b5-1 Arrangement Modified | James Budge  
Trading Arrangements, by Individual  
Aggregate Available 140,723
Rule 10b5-1 Arrangement Modified true
Trd Arr Modified Date Aug. 07, 2025
v3.25.2
Description of Business
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
1.
Description of Business

Hinge Health, Inc. and its subsidiaries and consolidated professional corporations (collectively “Hinge Health” or the “Company”) is focused on scaling and automating the delivery of health care, starting with musculoskeletal conditions. Leveraging an AI-powered care model, a wearable device, and access to expert clinicians, Hinge Health delivers personalized, evidence-based care that helps people move beyond pain, improving member outcomes and experiences and reducing costs for clients. The Company’s clients are primarily self-insured employers. The Company’s members represent an eligible life who has engaged with the Company’s platform at any point and whose engagement has been billed or is contractually eligible to be billed.

The Company was incorporated in Delaware in March 2016 and is headquartered in San Francisco, California. The Company has wholly-owned subsidiaries in Canada, India and the United Kingdom that provide research and development support.

Completion of Initial Public Offering

In May 2025, the Company completed its initial public offering (“IPO”) of shares of Class A common stock. Immediately prior to the completion of the IPO, the Company amended and restated its certificate of incorporation which provided for (i) the reclassification of all outstanding shares of the Company’s common stock (other than those held by Daniel Perez and Gabriel Mecklenburg (the “Founders”) and their affiliates) into an equal number of shares of Class A common stock, (ii) the reclassification of all shares of the Company’s common stock underlying outstanding equity awards under the Company’s 2017 Equity Incentive Plan (the “2017 Plan”) (other than those held by the Founders) into shares of Class A common stock pursuant to an amendment to the 2017 Plan, (iii) the reclassification of all outstanding common stock held by the Founders and their affiliates into an equal number of shares of Class B common stock, (iv) the reclassification of all shares of the Company’s common stock underlying outstanding equity awards under the 2017 Plan held by the Founders into shares of Class B common stock pursuant to an amendment to the 2017 Plan, (v) the amendment of the terms of the Company’s outstanding Series E redeemable convertible preferred stock, par value $0.00001 per share (the “Series E preferred stock”), to provide that such shares are initially convertible into shares of Class B common stock (collectively referred to as the “Common Stock and Series E Preferred Stock Reclassification”), (vi) the automatic conversion and reclassification of 42,986,472 of outstanding shares of the Company’s redeemable convertible preferred stock, or all outstanding shares of Series A-1, Series A-2, Series B, Series C, Series C-1, and Series D redeemable convertible preferred stock, into an aggregate of 42,986,472 shares of Class B common stock (collectively referred to as the “General Preferred Stock Conversion and Reclassification”), and (vii) the voluntary conversion of 1,748,504 outstanding shares of Series E preferred stock into the same amount of shares of Class B common stock (together with the General Preferred Stock Conversion and Reclassification, referred to as the “Preferred Stock Conversion”). The Company used substantially all of the proceeds from the IPO to pay employee taxes on the restricted stock units and performance restricted stock unit settlement.

Prior to the IPO, deferred offering costs, which consisted of accounting, legal and other fees directly related to the IPO, were capitalized as other non-current assets on the unaudited condensed consolidated balance sheets. In connection with the IPO, $14.0 million of deferred offering costs were reclassified to stockholders’ equity (deficit) as a reduction of the net proceeds received from the IPO.
v3.25.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2.
Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024 and the related notes included in the Company’s final prospectus dated May 21, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the "Securities Act") on May 22, 2025 (the “Prospectus”).

Basis of Presentation

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with GAAP and regulations of the SEC for interim financial information. The June 30, 2025 unaudited condensed consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of December 31, 2024. The unaudited condensed

consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The Company’s unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its affiliated professional medical corporations. The Company’s affiliated professional medical corporations are collectively referred to as Hinge Health Digital P.C.

Hinge Health Digital P.C. contracts with or otherwise employs physicians, physical therapists and other licensed health professionals in order to provide services to the Company’s clients, and under certain management services agreements, the Company serves as the exclusive manager and administrator of Hinge Health Digital P.C.’s non-clinical functions and services. Hinge Health Digital P.C. is considered a variable interest entity (“VIE”) for which the Company is the primary beneficiary. The Company has the rights and power to control the activities of Hinge Health Digital P.C. and as a result the Company consolidates the activities of Hinge Health Digital P.C.

As of June 30, 2025 and December 31, 2024, total assets of the VIE, all of which are current, were $5.4 million and $4.0 million, respectively, and total liabilities, all of which are current, were $7.9 million and $6.3 million, respectively, after the elimination of intercompany transaction balances.

All intercompany transactions and balances have been eliminated upon consolidation.

Any reference in these notes to applicable guidance is meant to refer to authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASUs”) of the Financial Accounting Standards Board (“FASB”).

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s unaudited condensed consolidated financial statements. Significant items that require estimates include, but are not limited to, variable consideration to recognize revenue, inventory valuation, estimated credit losses, income taxes, capitalized internal-use software development costs, the period of benefit for deferred commissions, the valuation of the Company’s common stock prior to the IPO and stock-based compensation. Despite the Company’s intention to establish accurate estimates and use reasonable assumptions, actual results may vary from the Company’s estimates.

Emerging Growth Company Status

The Company is an emerging growth company, as defined by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards that have different effective dates to public and private companies until the earlier of the date that (i) the company is no longer an emerging growth company or (ii) the company affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these unaudited condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an emerging growth company.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and trade accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.

The Company monitors accounts receivable for uncollectible accounts on an ongoing basis. No client represented greater than 10% of the Company’s accounts receivable as of June 30, 2025 and December 31, 2024. Additionally, no client represented greater than 10% of the Company’s revenue for the three and six months ended June 30, 2025 and 2024. For the purpose of assessing the

concentration of credit risk for significant clients, the Company defines a client as a business or organization that purchases access to the Company’s platform directly from the Company or indirectly through one of the Company’s partners.

The Company is subject to supplier concentration risk from third party suppliers that supply its inventory. The Company relies and expects to continue to rely on a small number of third-party suppliers to supply its inventory requirements. The Company’s inventory and ability to provide its peripheral Enso device product to members could be adversely affected by a significant interruption from these third-party suppliers.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are stated at the amount management expects to collect from outstanding balances, net of allowances for credit losses. The Company records accounts receivable when it has the unconditional right to bill and receive payment regardless of whether revenue has been recognized. Unbilled receivables include contractually billable invoices that are not yet billed. Amounts that the Company has a contractual right to bill or has billed are non-refundable.

Accounts receivable, net as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Billed accounts receivable

 

$

69,830

 

 

$

37,658

 

Unbilled accounts receivable

 

 

37,118

 

 

 

11,307

 

Allowance for credit losses

 

 

(7,649

)

 

 

(6,470

)

Total accounts receivable, net

 

$

99,299

 

 

$

42,495

 

 

Allowances for credit losses are provided for those outstanding balances considered to be uncollectible based on the age of each outstanding invoice, historical collection history and the client’s expected ability to pay. Balances that are still outstanding after management has made reasonable collection efforts are written off through a charge to the allowance for credit losses.

Allowance for credit losses during the three and six months ended June 30, 2025 and 2024 was composed of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

7,005

 

 

$

4,370

 

 

$

6,470

 

 

$

3,439

 

Provision for credit losses

 

 

1,894

 

 

 

1,570

 

 

 

2,780

 

 

 

2,487

 

Write-off for credit losses, net

 

 

(1,250

)

 

 

(321

)

 

 

(1,601

)

 

 

(307

)

Balance, end of period

 

$

7,649

 

 

$

5,619

 

 

$

7,649

 

 

$

5,619

 

Deferred Commissions

The Company has determined that certain sales incentives provided to the Company’s sales team and payments related to partnership agreements are required to be capitalized when the Company expects to generate future economic benefits from the related revenue-generating contracts subsequent to the initial sales transaction. When determining the economic life of the deferred commission assets recognized, the Company considers historical renewal rates, expectations of future client renewals of contracts, and other factors that could impact the economic benefits that the Company expects to generate from the relationship with its clients. Deferred commissions are amortized over the 12-month member subscription period for partner commissions and estimated five-year client period of benefit for sales commissions and are included in sales and marketing expense in the accompanying unaudited consolidated statements of operations and comprehensive loss.

A summary of the activity of the Company’s deferred commission balances during the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

25,519

 

 

$

16,221

 

 

$

24,078

 

 

$

15,479

 

Capitalized costs

 

 

17,020

 

 

 

11,239

 

 

 

27,651

 

 

 

18,347

 

Amortized costs

 

 

(10,680

)

 

 

(7,221

)

 

 

(19,870

)

 

 

(13,587

)

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred commissions - current

 

$

24,354

 

 

$

15,978

 

 

$

24,354

 

 

$

15,978

 

Other assets - non current

 

 

7,505

 

 

 

4,261

 

 

 

7,505

 

 

 

4,261

 

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 

 

Deferred Revenue

Deferred revenue primarily consists of amounts which the Company has billed or can contractually bill from subscription services and is recognized as the revenue recognition criteria is met.

The following table summarizes the changes in the balances of deferred revenue during the three and six months ended June 30, 2025 and 2024 (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

217,328

 

 

$

141,849

 

 

$

217,632

 

 

$

140,473

 

Add: billings during the period

 

 

196,908

 

 

 

135,382

 

 

 

320,429

 

 

 

219,466

 

Less: revenue recognized

 

 

(139,098

)

 

 

(89,825

)

 

 

(262,923

)

 

 

(172,533

)

Balance, end of period

 

$

275,138

 

 

$

187,406

 

 

$

275,138

 

 

$

187,406

 

 

The Company’s performance obligations are satisfied within 12 months of a member performing their first billable activity. As of June 30, 2025 and December 31, 2024, the deferred revenue balance was composed entirely of noncancellable performance obligations that will be satisfied within 12 months.

Revenue Recognition

The Company earns revenue from subscription fees by providing access to its platform and programs to treat and prevent MSK pain. The Company currently sells its subscriptions to its clients and generates revenue in the United States.

The Company determines revenue recognition through the following five steps:

•
Identification of the contract, or contracts, with a client;
•
Identification of the performance obligations in the contract;
•
Determination of the transaction price;
•
Allocation of the transaction price to the performance obligations in the contract; and
•
Recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company determines it has a contract with a client: (1) when the contract has been approved by the Company and the client; (2) it can identify each party’s rights regarding the services to be transferred and the payment terms for the services; and (3) it has determined that the client has the ability and intent to pay and its members have engaged with the platform. The Company applies judgment in determining the client’s ability and intent to pay, which is based on a variety of factors, including the client’s payment history or, new client reputation and relationship with a health plan partner, as applicable. The Company’s typical contracts have a stated contractual term of three years, however for revenue recognition purposes, the contractual period is one year to align with the member subscription period as there are no enforceable rights and obligations until a subscription period for a member commences upon a first billable activity. After the initial stated contractual term, the Company’s contracts renew automatically for additional one-year terms unless notice of termination is given by the client or the Company.

The contracts contain a number of promised goods and services, including access to the Company’s platform, technical support, as well as the Company’s peripheral products, which includes the Enso device. The Company has determined its contracts contain three performance obligations which are provided to members; (1) access to the platform that is delivered over time; (2) technical support which is delivered in the same pattern using the output method; and (3) the peripheral products, when and if sent as a part of its platform. As the platform and technical support are provided to the client concurrently over the contract term and have the same pattern of transfer, the Company has concluded that these performance obligations represent one performance obligation consisting of a series of distinct services over the contract term.

The Company may provide the Enso device as part of its platform, which remains the legal property of the Company during the contract term. The Company determines whether the Enso device is sent to members based on criteria that it controls. If the Enso device is sent to a member as part of the Company’s platform, it constitutes a lease component as this device remains the property of the Company and the member has the right to direct the use of the device during the contract term. Delivery of the device causes a change to the scope of the contract, as both the Company’s and clients’ rights have changed. The Company accounts for this change as a contract modification resulting in the termination of the old contract and the start of a new contract. The Company’s Enso device qualifies to be accounted for as an operating lease and the pattern of delivery from contract modification date to contract termination is consistent with the timing for non-lease components in the contract. For these client arrangements where the Enso device is leased in combination with services, the Company considers the arrangement to be predominately a service and thus a combined single performance obligation for purposes of revenue recognition.

The transaction price is a fixed annual fee or a variable fee based on member engagement activity during a service period. The Company’s contracts are billed after a member’s first completed billing activity or throughout the service period upon the achievement of cohort milestones or based upon member engagement activity. When the billable volume varies based upon the achievement of cohort milestones or member engagement activity, the consideration is variable at contract outset, and the Company estimates the variable consideration per member using the expected value method. To the extent the Company cannot estimate with reasonable certainty the likelihood that the variable consideration will be achieved, the Company constrains this portion of the transaction price and recognizes it when or as the uncertainty is resolved, which is typically within a short period of time. Based on historical achievement or member engagement experience and periodic lookbacks, the Company adjusts revenue when the uncertainty has been resolved and the Company deems it probable that a significant reversal of revenue will not occur. If the actual amounts of consideration received differ from its estimates, the Company adjusts reported revenue in the period such variances become known. For the three and six months ended June 30, 2025 and 2024 changes to estimated variable consideration were not material.

Members have access to the Company’s platform for a 12-month subscription term that begins after the individual has completed their first billable activity on the platform. The Company does not earn any fees until this point. The Company recognizes revenue for each member ratably over the 12-month member subscription period in order to match the pattern of revenue recognition to the pattern of costs incurred in delivering its platform.

Timing of revenue recognition may differ from the timing of billing. A majority of the Company’s clients are billed upfront or throughout the first quarter of the member’s subscription period. The Company’s performance obligations are satisfied within 12 months of the member’s first billable activity. The Company’s contracts do not contain significant financing components.

Additionally, certain performance guarantees are included in most contracts and are estimated at each reporting period based on the Company’s historical performance or other available information. The Company recognizes any estimated adjustments to the contract price for not achieving the performance guarantees as an adjustment to revenue. Payouts on these performance guarantees have been immaterial to date.

Redeemable Convertible Preferred Stock

The Company has elected to apply the qualitative approach in determining whether an amendment to, or exchange of, an equity-classified redeemable convertible preferred stock (“Preferred Stock”) constitutes a modification or extinguishment when the Preferred Stock is not reclassified as a liability.

On February 18, 2025, the Company entered into a stock repurchase agreement (the “Stock Repurchase Agreement”) with Coatue US 70 LLC and Coatue Growth Fund IV LP (collectively “Coatue”), a holder of more than 5% of the Company’s outstanding capital stock. Pursuant to the Stock Repurchase Agreement, immediately prior to the completion of the Company’s IPO, the Company repurchased shares of Series E preferred stock from Coatue US 70 LLC for an aggregate purchase price of $50.0 million (the “Series E Repurchase”). The closing of the IPO was not conditioned upon the completion of the Series E Repurchase. Concurrently with the Stock Repurchase Agreement, the Company entered into a participation letter with Coatue, pursuant to which Coatue had the right, but not the obligation, to purchase from the Company at the IPO price an aggregate number of shares of Class A common stock in the Company’s IPO up to 5% of the shares of Class A common stock offered in the IPO. Additionally, Coatue voluntarily converted all of its remaining shares of Series E preferred stock into shares of Class B common stock immediately prior to the completion of the IPO and consented to convert and reclassify its shares of Series D Preferred Stock into shares of Class B common stock effective immediately prior to the completion of the IPO.

As of March 31, 2025, the Company recorded a deemed contribution of $104.2 million upon the extinguishment of Series D and E Preferred Stock charged to additional paid in capital in the unaudited condensed consolidated balance sheets. During the three months ended June 30, 2025 the Company repurchased 833,333 shares and paid Coatue $50.0 million which is reflected as a conversion from preferred stock to common stock in the unaudited condensed consolidated statements of redeemable preferred stock and stockholders' equity (deficit).

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20). The ASU intends to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt—Debt with Conversion and Other Options, providing clarifying guidance on how to determine whether a settlement of convertible debt (particularly, cash convertible instruments) at terms that differ from the original conversion terms should be accounted for under the induced conversion or extinguishments guidance. The new standard is effective for the Company for the annual period beginning after December 15, 2025. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The ASU intends to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion). The new standard is effective for the Company for the annual period beginning after December 15, 2026. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The ASU enhances the transparency and decision usefulness of income tax disclosures through expansion of disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The new standard is effective for annual periods beginning after December 15, 2024 on a prospective basis with early adoption permitted. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.
v3.25.2
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Assets, Fair Value Disclosure [Abstract]  
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements
3.
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements

The Company’s cash equivalents and marketable securities classified as Level 1 financial instruments are composed of U.S. treasury securities and money market funds. Level 1 financial instruments are in active markets using unadjusted quoted market prices for identical instruments.

The Company’s marketable securities classified as Level 2 financial instruments are composed of investment-grade corporate and government agency securities and commercial paper. Level 2 financial instruments are not in active markets but are from a primary professional pricing source that uses quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Fair values obtained from this professional pricing source can also be based on pricing models whereby all significant observable inputs, including maturity dates, issue dates, settlement dates, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers or other market related data, are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. The Company validates the quoted market prices provided by its primary pricing service by comparing the fair values of its Level 2 marketable securities portfolio balance provided by its primary pricing service against the fair values provided by the Company’s marketable security managers.

The Company valued the modification on the Stock Repurchase Agreement, which was accounted for as an extinguishment using Level 3 inputs in the valuation hierarchy due to the presence of significant unobservable inputs and was valued at $104.2 million.

As of June 30, 2025 and December 31, 2024, cash, cash equivalents and marketable securities and the fair value hierarchy level consisted of the following (in thousands):

 

 

 

 

 

June 30, 2025

 

 

 

Fair value hierarchy level

 

Amortized
cost

 

 

Gross
unrealized
gains

 

 

Gross
unrealized
losses

 

 

Total
fair
value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

189,024

 

 

$

—

 

 

$

—

 

 

 

189,024

 

Commercial paper

 

Level 2

 

 

8,584

 

 

 

—

 

 

 

(1

)

 

 

8,583

 

Total cash equivalents

 

 

 

 

197,608

 

 

 

—

 

 

 

(1

)

 

 

197,607

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

94,906

 

 

 

2

 

 

 

(37

)

 

 

94,871

 

U.S. treasury securities

 

Level 1

 

 

76,432

 

 

 

7

 

 

 

(1

)

 

 

76,438

 

Corporate bonds

 

Level 2

 

 

4,782

 

 

 

1

 

 

 

(5

)

 

 

4,778

 

Total marketable securities

 

 

 

 

176,120

 

 

 

10

 

 

 

(43

)

 

176,087

 

Total assets

 

 

 

$

373,728

 

 

$

10

 

 

$

(44

)

 

$

373,694

 

 

 

 

 

 

December 31, 2024

 

 

 

Fair value hierarchy level

 

Amortized
cost

 

 

Gross
unrealized
gains

 

 

Gross
unrealized
losses

 

 

Total
fair
value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

259,084

 

 

$

—

 

 

$

—

 

 

$

259,084

 

Commercial paper

 

Level 2

 

 

4,575

 

 

 

—

 

 

 

—

 

 

 

4,575

 

Total cash equivalents

 

 

 

 

263,659

 

 

 

—

 

 

 

—

 

 

 

263,659

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

100,411

 

 

 

49

 

 

 

(7

)

 

 

100,453

 

U.S. treasury securities

 

Level 1

 

 

60,558

 

 

 

30

 

 

 

—

 

 

 

60,588

 

Corporate bonds

 

Level 2

 

 

4,750

 

 

 

—

 

 

 

(4

)

 

 

4,746

 

Total marketable securities

 

 

 

 

165,719

 

 

 

79

 

 

 

(11

)

 

 

165,787

 

Total assets

 

 

 

$

429,378

 

 

$

79

 

 

$

(11

)

 

$

429,446

 

 

There were no transfers into or out of Level 3 securities during the six months ended June 30, 2025 and the twelve months ended December 31, 2024.

As of June 30, 2025 and December 31, 2024, the contractual maturities of the marketable securities were 12 months or less. The Company does not intend to sell the marketable securities, and it is not more likely than not that the Company will be required to sell the marketable securities before recovery of their amortized cost basis, which may be at maturity.

For the three and six months ended June 30, 2025 and 2024, interest income earned from cash and cash equivalents and marketable securities included in other income, net in the unaudited condensed consolidated statements of operations and comprehensive loss, was composed of the following (in thousands):

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cash and cash equivalents

 

 

 

$

2,641

 

 

$

2,762

 

 

$

5,519

 

 

$

5,439

 

Marketable securities

 

 

 

 

1,922

 

 

 

2,238

 

 

 

3,909

 

 

 

4,640

 

Total

 

 

 

$

4,563

 

 

$

5,000

 

 

$

9,428

 

 

$

10,079

 
v3.25.2
Balance Sheet Details
 6 Months Ended
Jun. 30, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details
4.
Balance Sheet Details

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred inventory costs

 

$

17,627

 

 

$

14,032

 

Other prepaid expenses

 

 

13,503

 

 

 

11,068

 

Prepaid marketing expenses

 

 

12,901

 

 

 

12,845

 

Other assets

 

 

3,497

 

 

 

6,946

 

Total prepaid expenses and other current assets

 

$

47,528

 

 

$

44,891

 

 

Deferred inventory costs for members are amortized ratably over the membership subscription period. The amortization costs for the three months ended June 30, 2025 and 2024 were $7.7 million and $7.4 million, respectively and for the six months ended June 30, 2025 and 2024 were $15.1 million and $16.2 million, respectively. These amortization costs are included in cost of revenue in the unaudited consolidated statements of operations and comprehensive loss.

Inventory

Inventory as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Raw materials

 

$

5,943

 

 

$

4,834

 

Work in process

 

 

316

 

 

 

1,911

 

Finished goods

 

 

7,728

 

 

 

4,128

 

Total inventory

 

$

13,987

 

 

$

10,873

 

 

During the three and six months ended June 30, 2024, the Company incurred excess and obsolete inventory charges related to a strategic decision to shift away from providing kits with tablets and wearable sensors of $1.3 million and $1.8 million, respectively. During the three and six months ended June 30, 2025, there were no excess and obsolete inventory charges related to this transition. As of June 30, 2025 and December 31, 2024 inventory primarily consisted of the Company’s Enso device that have not been shipped to members.

Property, Equipment and Software, Net

Property, equipment and software as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Capitalized internal-use software

 

$

18,813

 

 

$

16,477

 

Computers and software

 

 

4,972

 

 

 

4,957

 

Furniture and fixtures

 

 

489

 

 

 

331

 

Machinery and equipment

 

 

2,015

 

 

 

1,976

 

Leasehold improvements

 

 

203

 

 

 

203

 

Total

 

 

26,492

 

 

 

23,944

 

Accumulated depreciation and amortization

 

 

(18,768

)

 

 

(16,564

)

Property, equipment and software, net

 

$

7,724

 

 

$

7,380

 

 

During the three months ended June 30, 2025 and 2024, depreciation expense was $0.3 million and $0.5 million, respectively and during the six months ended June 30, 2025 and 2024, depreciation expense was $0.7 million and $1.0 million, respectively. During the three months ended June 30, 2025 and 2024, the Company capitalized internal-use software costs of $1.6 million and $0.5 million, respectively, and incurred amortization expense of $0.8 million and $1.0 million, respectively. During the six months ended June 30, 2025 and 2024 the Company capitalized internal-use software costs of $2.3 million and $1.3 million, respectively, and incurred amortization expense of $1.6 million and $2.0 million, respectively.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Accrued employee related costs

 

$

5,948

 

 

$

4,164

 

Accrued employee stock purchase plan liability

 

 

2,036

 

 

 

—

 

Accrued commissions

 

 

13,422

 

 

 

12,792

 

Accrued taxes payable

 

 

2,401

 

 

 

2,120

 

Accrued client liabilities

 

 

5,355

 

 

 

2,414

 

Accrued other

 

 

5,736

 

 

 

6,363

 

Total accounts payable and accrued liabilities

 

$

34,898

 

 

$

27,853

 
v3.25.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
5.
Goodwill and Intangible Assets

In February 2025 the Company acquired certain assets of a privately held company in a transaction that qualified as a business combination under ASC 805, Business Combinations, for approximately $4.0 million. The acquisition resulted in an increase in goodwill of $2.5 million, which was related to expected synergies of the acquired workforce, and developed technology and other intangible assets of $1.6 million. The business combination was not material to the condensed consolidated financial statements.

The changes in goodwill as of December 31, 2024 and June 30, 2025 were as follows (in thousands):

 

Balance, as of December 31, 2024

 

$

61,607

 

Acquisition

 

 

2,489

 

Balance, as of June 30, 2025

 

$

64,096

 

 

Intangible assets, net as of June 30, 2025 and December 31, 2024 were as follows (in thousands, except years):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted
Average
Remaining
Term
(years)

 

Developed technology

 

$

4,072

 

 

$

(1,478

)

 

$

2,594

 

 

 

3.4

 

Tradenames

 

 

642

 

 

 

(275

)

 

 

367

 

 

 

5.8

 

Total

 

$

4,714

 

 

$

(1,753

)

 

$

2,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted
Average
Remaining
Term
(years)

 

Developed technology

 

$

2,512

 

 

$

(1,104

)

 

$

1,408

 

 

 

4.6

 

Tradenames

 

 

642

 

 

 

(243

)

 

 

399

 

 

 

6.3

 

Total

 

$

3,154

 

 

$

(1,347

)

 

$

1,807

 

 

 

 

 

The useful lives of developed technology generally is between three to eight years and trade names generally is over ten years. Amortization expense for the three months ended June 30, 2025 and June 30, 2024 was $0.2 million and $0.1 million, respectively, and for the six months ended June 30, 2025 and June 30, 2024 was $0.4 million and $0.2 million, respectively.

As of June 30, 2025, future amortization expense related to the intangible assets was estimated as follows (in thousands):

 

2025 (remainder)

 

$

448

 

2026

 

 

898

 

2027

 

 

898

 

2028

 

 

422

 

2029

 

 

216

 

Thereafter

 

 

79

 

Total

 

$

2,961

 
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
6.
Commitments and Contingencies

Legal and Tax Matters

As of June 30, 2025 and December 31, 2024, the Company is not subject to any pending or threatened litigation, individually or in the aggregate, for which it is reasonably possible to have a material effect on its consolidated financial position or results of operations. In addition, state, local, and foreign tax jurisdictions have differing rules and regulations governing sales, use, value-added, and other taxes, and these rules and regulations can be complex and are subject to varying interpretations that may change over time. Based on the Company’s evaluation under ASC 450, Contingencies, a reserve is established for the estimated liability related to these taxes as and when the amounts are considered probable. For taxes that are reasonably possible, such an estimate cannot be made.

Indemnification Obligations

In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including clients, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s platform, programs or device when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the

Company’s limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

Leases

The Company leases office spaces under non-cancelable operating lease agreements. These leases have remaining lease terms of approximately one to five years, which represent the non-cancellable periods of the leases. Lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as variable payments for common area maintenance and administrative services. Variable lease costs were immaterial for the three and six months ended June 30, 2025 and 2024. The Company has also received certain incentives from landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. The Company’s leases are classified as operating leases. The Company entered into an operating lease for 10,287 square feet in Montreal, Canada which commenced on April 1, 2025. This lease terminates in October 2030.

As of June 30, 2025, remaining future minimum lease payment obligations under the Company’s noncancellable operating leases were as follows (in thousands):

 

2025 (remainder)

 

$

2,338

 

2026

 

 

4,811

 

2027

 

 

3,547

 

2028

 

 

310

 

2029

 

 

318

 

Thereafter

 

 

270

 

Total lease payments

 

 

11,594

 

Less: imputed interest

 

 

(1,628

)

Present value of lease liabilities

 

$

9,966

 

Classified as:

 

 

 

Lease liabilities - current

 

$

4,047

 

Lease liabilities - non current

 

 

5,919

 

Total lease liability

 

$

9,966

 
v3.25.2
Redeemable Convertible Preferred Stock
 6 Months Ended
Jun. 30, 2025
Temporary Equity Disclosure [Abstract]  
Redeemable Convertible Preferred Stock
7.
Redeemable Convertible Preferred Stock

Redeemable convertible preferred stock (“Preferred Stock”) outstanding as of December 31, 2024 consisted of the following (in thousands, except share amounts):

 

Preferred Stock

 

Authorized
Shares

 

 

Issued and
Outstanding
Shares

 

 

Net Value

 

 

Liquidation Preference

 

Series Seed - 1

 

 

3,078,601

 

 

 

3,078,601

 

 

$

1,057

 

 

$

1,057

 

Series Seed - 2

 

 

493,325

 

 

 

493,325

 

 

 

250

 

 

 

206

 

Series A-1

 

 

975,463

 

 

 

975,463

 

 

 

903

 

 

 

808

 

Series A-2

 

 

7,112,809

 

 

 

7,112,809

 

 

 

7,362

 

 

 

7,362

 

Series B

 

 

11,500,586

 

 

 

11,500,586

 

 

 

24,930

 

 

 

26,000

 

Series C

 

 

10,253,027

 

 

 

10,253,027

 

 

 

74,711

 

 

 

75,000

 

Series C-1

 

 

2,258,620

 

 

 

2,258,620

 

 

 

15,856

 

 

 

15,282

 

Series D

 

 

7,354,666

 

 

 

7,314,041

 

 

 

326,457

 

 

 

319,763

 

Series E

 

 

5,163,674

 

 

 

5,163,674

 

 

 

399,746

 

 

 

400,000

 

 

 

48,190,771

 

 

 

48,150,146

 

 

$

851,272

 

 

$

845,478

 

 

Preferred stock outstanding as of June 30, 2025 consisted of the following (in thousands, except share amounts):

 

Preferred Stock

 

Authorized
Shares

 

 

Issued and
Outstanding
Shares

 

 

Net Value

 

 

Liquidation Preference

 

Series E

 

 

4,330,341

 

 

 

2,581,837

 

 

$

199,874

 

 

$

200,000

 

 

 

4,330,341

 

 

 

2,581,837

 

 

$

199,874

 

 

$

200,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company recorded the Preferred Stock at the value of proceeds received on the dates of issuance, net of issuance costs. During the three months ended March 31, 2025, the Company recorded an adjustment to the Series D and Series E preferred stock to reflect the deemed contribution from the extinguishment of certain shares of Series D and Series E preferred stock subject to the Stock Repurchase Agreement.

Pursuant to the Stock Repurchase Agreement, immediately prior to the completion of the Company’s IPO, the Company recorded the repurchased shares of Series E preferred stock from Coatue for an aggregate purchase price of $50.0 million.

Immediately prior to the completion of the IPO, the Company filed its amended and restated certificate of incorporation, which authorized 4,330,341 shares of Series E preferred stock. As of June 30, 2025, there were 2,581,837 shares of Series E preferred stock issued and outstanding.

The holders of the Series E preferred stock have the following rights, preferences and privileges as of June 30, 2025:

Voting Rights—The holders of the Series E preferred stock will initially vote as though their shares of Series E preferred stock had been converted into shares of Class B common stock (which conversion ratio is subject to any anti-dilution adjustment), with fifteen votes per share on all matters submitted to a vote of the stockholders; provided, however, that the Series E preferred stock will not entitle such holder to vote with respect to the election of directors. The holders of the Series E preferred stock will retain additional rights, including the requirement that the Series E holders provide their affirmative vote or written consent in order for the Company to (i) amend, alter or repeal of any provision of its amended and restated certificate of incorporation or amended and restated bylaws in a manner that materially adversely affects the holders of the Series E preferred stock, (ii) waive the rights, preferences, and privileges of the Series E preferred stock including any waiver of the anti-dilution adjustment, (iii) waive the classification of a transaction as a “liquidation transaction” or any distribution of proceeds in connection with the Company’s liquidation, dissolution or winding up, or with a merger or consolidation or any other liquidation transaction, (iv) amend, alter, or repeal the definition of the threshold for the Series E preferred stock voting rights, or (v) increase or decrease (other than by conversion) the total number of authorized shares of Series E preferred stock. A “liquidation transaction” occurs if the Company (i) sells, conveys, exclusively licenses or otherwise disposes of all or substantially all of its assets, property or business, in one transaction or a series of related transactions, (ii) merges with or into or consolidates with any other corporation, limited liability company or other entity (other than a wholly-owned subsidiary), in one transaction or a series of related transactions, or (iii) effects the Company’s liquidation, dissolution or winding up; provided that none of the foregoing will be considered a liquidation transaction if the transaction is: (A) a merger effected exclusively for the purpose of changing the Company’s domicile or (B) a bona fide equity financing in which the Company is the surviving corporation.

Dividends—If the Company’s board of directors declares a dividend while shares of the Series E preferred stock remain outstanding, then such shares of Series E preferred stock shall first receive, or simultaneously receive, a dividend on each then outstanding share of Series E preferred stock in an amount at least equal to the dividend payable on each share of Series E preferred stock determined as if all shares of such Series E preferred stock had been converted into the applicable series of common stock.

Conversion—The Series E preferred stock has no stated maturity and will remain outstanding until all shares of the Series E preferred stock are converted into common stock. Each share of Series E preferred stock will be initially convertible into one share of Class B common stock (subject to any anti-dilution adjustment) at any time at the option of the holder, except that the shares of the Series E preferred stock will automatically convert into an equal number of shares of Class A common stock or Class B common stock, as applicable (subject to any anti-dilution adjustment), upon the sale of the Company’s common stock in a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act where the public offering price is at least $77.46420 per share and the Company receives at least $100.0 million in aggregate cash proceeds, net of underwriting discounts and commissions. However, each share of Series E preferred stock will not be convertible into Class B common stock and instead will be convertible into Class A common stock (i) after the Class B Mandatory Conversion Time (as defined in the Company’s amended and

restated certificate of incorporation), (ii) after the date any person and such person affiliates that beneficially owned shares of Series E preferred stock as of the immediately upon the filing and effectiveness of the Company’s amended and restated certificate of incorporation in connection with the IPO (the “Effective Time”) cease to beneficially own in the aggregate a number of shares of capital stock equal to at least 50% of the capital stock that such person and such person’s affiliates beneficially owned in the aggregate as of the Effective Time, or (iii) at any time that such Series E preferred stock is held by any person who was not the beneficial owner of such shares of Series E preferred stock as of the Effective Time. Once converted into common stock, the Series E preferred stock may not be reissued.

Anti-Dilution Adjustments—Subject to certain exceptions, any time the Company issues additional shares of capital stock without consideration or for consideration less than the Series E preferred stock conversion price, which is $77.46420, the Series E preferred stock conversion price will be automatically adjusted downward according to a broad-based weighted average formula, according to which the Series E preferred stock conversion price will be automatically adjusted by a fraction, (x) the numerator of which shall be the number of shares of common stock outstanding and deemed issued according to the Company’s amended and restated certificate of incorporation (“Outstanding Common”) plus the number of shares of common stock that the aggregate consideration received by the Company for such issuance of the Additional Stock (as defined below) would purchase at such conversion price; and (y) the denominator of which shall be the number of shares of Outstanding Common plus the number of shares of such Additional Stock. “Additional Stock” is any common stock issued or deemed issued by the Company after October 22, 2021, other than (i) securities issued pursuant to stock splits, stock dividends and similar transactions, (ii) securities issuable upon conversion, exchange or exercise of convertible, exchangeable or exercisable securities outstanding as of October 22, 2021, including, without limitation, warrants, notes or options, (iii) common stock issued or issuable pursuant to the Company’s stock option plans or restricted stock plans or agreements, (iv) the Company’s sale of common stock issued or issuable in a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act, (v) securities issued or issuable as consideration for the acquisition by the Company of another company or business approved by the Company’s board of directors, (vi) securities issued or issuable primarily for non-equity financing purposes to financial institutions, equipment lessors, brokers or similar persons in connection with commercial credit arrangements, equipment financings, commercial property lease transactions or similar transactions approved by the board of directors, (vii) securities issued or issuable to an entity as a component of any business relationship with such entity primarily for the purpose of (a) joint venture, technology licensing or development activities, (b) distribution, supply or manufacture of the Company’s products or services or (c) any other arrangements involving corporate partners that are primarily for purposes other than raising capital, the terms of which business relationship with such entity are approved by the Company’s board of directors, (viii) common stock issued or issuable upon conversion of the Preferred Stock and (ix) securities issued or issuable in any other transaction for a consideration per share of less than the Series E preferred stock conversion price if the holders of the Series E preferred stock provide their affirmative vote.

Fractional Shares—The Company will not issue any fraction of a share of common stock upon any conversion of the Series E preferred stock. If the issuance would result in the issuance of a fraction of a share of common stock, the number of shares of common stock to be issued will be rounded down to the nearest whole share.

Right to Receive Liquidation Distribution—In the event of the Company’s liquidation, dissolution, or winding up, the holders of shares of the Series E preferred stock will be entitled to receive out of the net assets legally available for distribution to stockholders, after the payment of all of the Company’s debts and other liabilities, prior and in preference to any distribution of any assets to holders of the Company’s common stock, an amount of $77.46420 per share for each then outstanding share of Series E preferred stock plus any declared but unpaid dividends on such shares, which amount is equal to $200.0 million as of June 30, 2025. In order to waive any distribution of proceeds in the event of the Company’s liquidation, dissolution, or winding up, the holders of the Series E preferred stock must provide their written consent or affirmative vote.

Redemption—The Series E preferred stock is not mandatorily redeemable.

Fully Paid and Non-Assessable—All of the outstanding shares of the Series E preferred stock are fully paid and non-assessable.
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Common Stock, Equity Incentive Plans and Stock-Based Compensation
8.
Common Stock, Equity Incentive Plans and Stock-Based Compensation

Common Stock

Immediately prior to the completion of the IPO, the Company filed its amended and restated certificate of incorporation, which authorized a total of 1,000,000,000 shares of Class A common stock, 120,000,000 shares of Class B common stock, 4,330,341 shares of Series E preferred stock, and 100,000,000 shares of undesignated preferred stock. The amended and restated certificate of incorporation provided for the Common Stock and Series E Preferred Stock Reclassification and the Preferred Stock Reclassification.

The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and is not convertible into any other shares of the Company’s capital stock. Each share of Class B common stock is entitled to fifteen votes per share and is convertible into one share of Class A common stock at any time. The Company’s Class B common stock also will automatically convert into shares of Class A common stock upon certain transfers and other events.

2025 Incentive Award Plan

In March 2025, the Company’s board of directors adopted, and the stockholders approved, the 2025 Incentive Award Plan (the “2025 Plan”), with an initial share reserve of 12,101,419, which includes any reserved but unissued shares under the 2017 Plan immediately prior to the closing of the Company’s IPO. The 2025 Plan became effective on the business day immediately prior to the date of effectiveness of the registration statement on Form S-1 relating to the Company's IPO (the "IPO Registration Statement"), and is the successor to and continuation of the 2017 Plan. Stock options and restricted stock units (“RSUs”) granted generally vest over four years. As of June 30, 2025, there were 12,186,537 shares available to be issued under the 2025 Plan.

2017 Equity Incentive Plan

In 2017, the Company’s board of directors adopted the 2017 Plan. The Company’s board of directors, at its sole discretion, is responsible for the administration of the 2017 Plan. As of December 31, 2024, there were 37,542,593 commons shares authorized under the 2017 Plan, with 2,191,805 common shares available to be issued.

In connection with the IPO, the 2017 Plan was terminated. All shares that remained available for future issuance under the 2017 Plan at that time were transferred to the 2025 Plan. To the extent that grants outstanding under the 2017 Plan terminate, cancel or are forfeited, the shares reserved for issuance under such grants are transferred to the 2025 Plan and become available for subsequent grant thereunder.

2025 Employee Purchase Plan

In March 2025, the Company’s board of directors adopted, and the stockholders approved, the Employee Stock Purchase Plan (the “ESPP”), which qualifies as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and pursuant to which 2,731,452 shares of Class A common stock were reserved for future issuance. The ESPP became effective on the business day immediately prior to the date of effectiveness of the IPO Registration Statement. The ESPP is designed to enable eligible employees to purchase shares of the Company's Class A common stock at a discount on a periodic basis through payroll deductions. Each offering period under the ESPP is for one year and consists of two six-month purchase periods, except for the first purchase period post-IPO. The purchase price for shares of Class A common stock purchased under the ESPP is 85% of the lesser of the fair market value of the Company's Class A common stock on the first day of the applicable offering period and the fair market value of the Company's Class A common stock on the last day of each purchase period.

Stock-Based Compensation Expense

Stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cost of revenue

 

$

16,441

 

 

$

37

 

 

$

16,441

 

 

$

72

 

Research and development

 

 

248,809

 

 

 

81

 

 

 

248,809

 

 

 

161

 

Sales and marketing

 

 

95,050

 

 

 

89

 

 

 

95,050

 

 

 

180

 

General and administrative

 

 

230,683

 

 

 

99

 

 

 

230,690

 

 

 

197

 

Total stock-based compensation

 

$

590,983

 

 

$

306

 

 

$

590,990

 

 

$

610

 

 

Satisfaction of Performance Vesting Condition in Certain Stock Options and RSUs and PRSUs

During the six months ended June 30, 2025, the liquidity event for the RSUs and performance-based restricted stock units ("PRSUs") was met and the Company recognized $365.5 million and $224.5 million, respectively of stock-based compensation expense for the portion of the service period and performance condition completed by employees and non-employees from the grant date through the six months ended June 30, 2025.

Restricted Stock Units and Performance-Based Restricted Stock Units

RSUs granted under the 2017 Plan vest upon the satisfaction of both a service condition and a liquidity event. In general, RSUs vest over four years. The fair value of each RSU is based on the estimated fair value of the Company’s common stock on the date of grant.

Performance-based awards granted under the 2017 Plan generally include service-based components and a performance target, which may include revenue targets or attaining a specific public market valuation of the Company’s outstanding common shares. PRSUs are subject to continued employment and a liquidity event. The fair value of each PRSU is based on the estimated fair value of the Company’s common stock on the date of grant.

The following is a summary of the Company’s RSU and PRSU activity during the six months ended June 30, 2025:

 

 

Number of
restricted
stock units

 

 

Weighted
average grant-
date fair value
(per share)

 

 

Number of
performance-
based restricted
stock units

 

 

Weighted
average
grant-date fair
value (per share)

 

Outstanding as of December 31, 2024

 

 

15,061,414

 

 

$

26.76

 

 

 

11,424,836

 

 

$

20.08

 

Granted

 

 

2,957,467

 

 

 

32.98

 

 

 

1,888,501

 

 

 

25.03

 

Vested (1)

 

 

(11,385,595

)

 

 

26.34

 

 

 

(5,733,484

)

 

 

19.95

 

Forfeited

 

 

(732,971

)

 

 

30.17

 

 

 

(1,888,501

)

 

 

20.11

 

Outstanding as of June 30, 2025

 

 

5,900,315

 

 

 

30.26

 

 

 

5,691,352

 

 

 

21.84

 
(1)
Vested shares include 303,634 shares not released at the weighted average granted date fair value of 30.07 per share.

As of June 30, 2025, the Company had $113.3 million of unrecognized stock-based compensation expense related to RSUs that will be recognized over the weighted average period of 2.13 years.

The intrinsic value of the RSUs was $305.3 million as of June 30, 2025.

As of June 30, 2025, the Company had $14.2 million of unrecognized stock-based compensation expense related to PRSUs that will be recognized over the weighted average period of 0.2 years.

The intrinsic value of the PRSUs was $294.5 million as of June 30, 2025.

During the three months ended June 30, 2025 the Company did not grant performance-based awards. During the six months ended June 30, 2025, the Company granted the Chief Executive Officer (“CEO”) 1,888,501 performance-based awards that vest upon the satisfaction of a market condition and liquidity event of the Company’s outstanding shares of common stock. The grant date fair value of the PRSUs is based on a Monte Carlo simulation model. The assumptions for the Monte Carlo simulation model include; expected term of 7 years, risk-free rate ranges from 4.3% to 4.6%, discount for lack of marketability of 20%, volatility ranges from 58% to 71%, and expected dividend yield of 0%.

Additionally, the board of directors approved the cancellation of the Executive Chairman’s (“EC”) 1,888,501 PRSUs that vest upon the satisfaction of a market condition and liquidity event. These awards did not result in recording stock-based compensation expense because such PRSUs were improbable of vesting at the time of cancellation.

 

Stock Options

Stock options granted under the 2017 Plan generally expire within ten years from the date of grant, generally vest over four years and are exercisable for shares of the Company’s common stock. The Company has not issued stock options since March 31,

2021. A summary of the stock options and changes during the six months ended June 30, 2025 are presented below (in thousands, except shares, per share amounts and years):

 

 

Number of
options

 

 

Weighted-
average
exercise price
per share

 

 

Weighted
average
remaining
contractual life
(years)

 

 

Aggregate
intrinsic value

 

Balances at December 31, 2024

 

 

2,905,276

 

 

 

1.28

 

 

 

3.8

 

 

 

101,782

 

Options exercised

 

 

(186,407

)

 

 

1.37

 

 

 

 

 

 

 

Options forfeited and expired (2)

 

 

(20,636

)

 

 

1.94

 

 

 

 

 

 

 

Balances at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 

Options exercisable at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 

Options vested at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 
(2)
Options expired consisted of 20,636 shares of common stock at a weighted average price of $1.94 per share.

The fair value of the options were expensed over the vesting period, on a straight-line basis, as the services are being provided. The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the fair value of the Company’s common stock. The total intrinsic values of options exercised during the six months ended June 30, 2025 was $9.4 million.

During the six months ended June 30, 2025, the Company had fully expensed the stock-based compensation expense and there was no remaining expense.

Employee Stock Purchase Plan

The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes-Merton option-pricing model and the assumptions noted in the following table:

 

 

 

June 30, 2025

 

 

 

Six Months

 

 

1 Year

 

Risk-free interest rate

 

 

4.3

%

 

 

4.1

%

Expected volatility

 

 

61.5

%

 

 

61.5

%

Expected term (in years)

 

 

0.5

 

 

 

1.0

 

Expected dividend rate

 

 

0

%

 

 

0

%

 

The fair value of stock purchase rights granted under the ESPP during the six-month and 12-month period from the date of the IPO, May 21, 2025 was $11.65 per share and $13.60 per share, respectively. As of June 30, 2025, the Company had $8.0 million of unrecognized compensation expense related to the ESPP that will be recognized over a weighted average period of 0.6 years. As of June 30, 2025, no shares of Class A common stock have been purchased under the 2025 ESPP.

Restricted Stock Awards and Partial Recourse Promissory Notes

On February 4, 2025, the Company's EC repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $2.2 million. On February 7, 2025, the Company's CEO repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $2.2 million. On February 26, 2025, the Company's former Chief Financial Officer (“CFO”) repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $0.5 million. As of June 30, 2025, all principal and interest was repaid in full on the outstanding balance of all partial recourse promissory notes due to the Company.

v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
9.
Income Taxes

The Company calculates income tax expense (benefit) in interim periods by applying an estimated annual effective tax rate to income (loss) before income taxes and recognizing the tax effects of discrete items in the period in which they occur.

The Company recorded an income tax benefit of $0.3 million and income tax expense of $0.7 million for the three and six months ended June 30, 2025, respectively, compared to income tax expense of $0.4 million and $0.5 million for the three and six months ended June 30, 2024, respectively. The tax benefit in the three months ended June 30, 2025 reflects a discrete benefit resulting from a shift from projected full-year taxable income in the first three months of 2025 to a projected loss in the three months ended June 30, 2025, driven by stock-based compensation expense associated with the Company’s IPO. The income tax expense for the six months ended June 30, 2025 and 2024 was primarily attributable to state and foreign income taxes.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes several changes to U.S. federal income tax law, including the repeal of the requirement to capitalize and amortize domestic research and development expenditures under Section 174, modifications to bonus depreciation, and changes to the U.S. international tax regime. The Company is currently evaluating the impact of the OBBBA on its income tax provision and results of operations and will continue to monitor developments and future guidance. Any impacts of the OBBBA will begin to be reflected in the third quarter of 2025. As the Company maintains a full valuation allowance against its U.S. federal deferred tax assets, the impact on its current financial statements is not expected to be material.
v3.25.2
Net Loss Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Net Loss Per Share
10.
Net Loss Per Share

The Company computes net loss per share utilizing the two-class method required for participating securities. The two-class method determines net loss per share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed income. The rights, including the liquidation and dividend rights, of the holders of the Company’s Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the basic and diluted net loss per share for all shares of Class A common stock and Class B common stock are the same and therefore presented on a combined basis.

The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net loss per share (in thousands, except per share data):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(575,651

)

 

$

(12,926

)

 

$

(558,512

)

 

$

(39,390

)

Adjustment to reflect deemed contribution
   from Series D and Series E redeemable
   convertible preferred stock extinguishment (1)

 

 

—

 

 

 

—

 

 

 

104,174

 

 

 

—

 

Net loss attributable to common stockholders

 

$

(575,651

)

 

$

(12,926

)

 

$

(454,338

)

 

$

(39,390

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in
   computing net loss per share attributable to
   common stockholders, basic and
   diluted

 

 

43,931

 

 

 

13,528

 

 

 

30,190

 

 

 

13,455

 

Net loss per share attributable to common
   stockholders, basic and diluted

 

$

(13.10

)

 

$

(0.96

)

 

$

(15.05

)

 

$

(2.93

)
(1)
As discussed in Note 7, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net income attributable to common stockholders.

 

Certain potentially issuable shares have been excluded from the calculation of diluted net loss per share during the three and six months ended June 30, 2025 and June 30, 2024 because their inclusion would have been anti-dilutive (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Preferred Stock

 

 

2,582

 

 

 

48,150

 

 

 

2,582

 

 

 

48,150

 

Stock options

 

 

2,698

 

 

 

3,149

 

 

 

2,698

 

 

 

3,149

 

Restricted stock units

 

 

5,900

 

 

 

15,711

 

 

 

5,900

 

 

 

15,711

 

Performance restricted stock units

 

 

5,691

 

 

 

11,425

 

 

 

5,691

 

 

 

11,425

 

Restricted stock awards

 

 

—

 

 

 

2,597

 

 

 

—

 

 

 

2,597

 

Total

 

 

16,871

 

 

 

81,032

 

 

 

16,871

 

 

 

81,032

 
v3.25.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions
11.
Related Party Transactions

On February 4, 2025, the Company’s EC repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $2.2 million. On February 7, 2025, the Company’s CEO repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $2.2 million. On February 26, 2025, the Company’s former CFO repaid in full the aggregate principal and interest amount outstanding pursuant to his partial recourse promissory note in the amount of $0.5 million. Refer to Note 8, Common Stock, Equity Incentive Plans and Stock-Based Compensation for further details.

The Company engages the law firm of Perkins Coie LLP for various legal services. Fees incurred for services provided by Perkins Coie LLP for the six months ended June 30, 2025 were $0.9 million, of which $0.3 million were included in accounts payable and accrued liabilities included in the unaudited condensed consolidated balance sheets. Fees incurred for services provided by Perkins Coie LLP for the six months ended June 30, 2024 were $0.8 million, of which $0.3 million were included in accounts payable and accrued liabilities included in the unaudited condensed consolidated balance sheets.

v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
12.
Segment Information

Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker ("CODM"), which the Company has identified as being the CEO, in deciding how to allocate resources and assessing performance. The Company operates in one operating segment and one reportable segment. The Company’s CODM allocates resources and assesses performance at the consolidated level.

The CODM uses consolidated net loss as the measure of profit or loss to allocate resources and assess performance. Consolidated financial forecasts and budget to actual results are also used by the CODM to assess performance and allocate resources, make strategic decisions related to headcount and incur capital expenditures.

The CODM reviews total assets as reported on the consolidated balance sheets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.

The table below presents the Company’s unaudited consolidated net loss including significant segment expenses (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

2024

 

Revenue

 

$

139,098

 

 

$

89,825

 

 

$

262,923

 

$

172,533

 

Less (add):

 

 

 

 

 

 

 

 

 

 

 

Excess and obsolete inventory charge (1)

 

 

—

 

 

 

1,309

 

 

 

—

 

 

1,812

 

Restructuring, acquisition and other expenses (2)

 

 

—

 

 

 

1,718

 

 

 

—

 

 

2,185

 

Stock-based compensation expense (3)

 

 

590,983

 

 

 

306

 

 

 

590,990

 

 

610

 

Other segment expenses (4)

 

 

10,767

 

 

 

(4,803

)

 

 

8,578

 

 

(9,063

)

Cost of revenue (excluding 1,2,3, 4)

 

 

23,777

 

 

 

21,056

 

 

 

47,188

 

 

45,191

 

Research and development (excluding 2,3,4)

 

 

22,774

 

 

 

24,263

 

 

 

44,816

 

 

52,980

 

Sales and marketing (excluding 2,3,4)

 

 

49,549

 

 

 

42,801

 

 

 

96,264

 

 

84,803

 

General and administrative (excluding 2,3,4)

 

 

16,899

 

 

 

16,101

 

 

 

33,599

 

 

33,405

 

Net loss

 

$

(575,651

)

 

$

(12,926

)

 

$

(558,512

)

$

(39,390

)

 

(4) Other segment expenses include other income, net, employer taxes related to stock-based compensation expense, amortization of intangible assets and provision for (benefit from) income taxes.

 

The Company currently sells its subscriptions to its clients and generates revenue in the United States.

Long-lived assets are composed of intangible assets, property, equipment and software, net and right-of-use assets. Long-lived assets by geographical location are as follows (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

2025

 

 

2024

 

United States

 

$

18,168

 

 

$

18,128

 

Outside the United States

 

 

1,122

 

 

 

666

 

Total

 

$

19,290

 

 

$

18,794

 
v3.25.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with GAAP and regulations of the SEC for interim financial information. The June 30, 2025 unaudited condensed consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of December 31, 2024. The unaudited condensed

consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The Company’s unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its affiliated professional medical corporations. The Company’s affiliated professional medical corporations are collectively referred to as Hinge Health Digital P.C.

Hinge Health Digital P.C. contracts with or otherwise employs physicians, physical therapists and other licensed health professionals in order to provide services to the Company’s clients, and under certain management services agreements, the Company serves as the exclusive manager and administrator of Hinge Health Digital P.C.’s non-clinical functions and services. Hinge Health Digital P.C. is considered a variable interest entity (“VIE”) for which the Company is the primary beneficiary. The Company has the rights and power to control the activities of Hinge Health Digital P.C. and as a result the Company consolidates the activities of Hinge Health Digital P.C.

As of June 30, 2025 and December 31, 2024, total assets of the VIE, all of which are current, were $5.4 million and $4.0 million, respectively, and total liabilities, all of which are current, were $7.9 million and $6.3 million, respectively, after the elimination of intercompany transaction balances.

All intercompany transactions and balances have been eliminated upon consolidation.

Any reference in these notes to applicable guidance is meant to refer to authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASUs”) of the Financial Accounting Standards Board (“FASB”).
Use of Estimates

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s unaudited condensed consolidated financial statements. Significant items that require estimates include, but are not limited to, variable consideration to recognize revenue, inventory valuation, estimated credit losses, income taxes, capitalized internal-use software development costs, the period of benefit for deferred commissions, the valuation of the Company’s common stock prior to the IPO and stock-based compensation. Despite the Company’s intention to establish accurate estimates and use reasonable assumptions, actual results may vary from the Company’s estimates.
Emerging Growth Company Status

Emerging Growth Company Status

The Company is an emerging growth company, as defined by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards that have different effective dates to public and private companies until the earlier of the date that (i) the company is no longer an emerging growth company or (ii) the company affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these unaudited condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an emerging growth company.
Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and trade accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.

The Company monitors accounts receivable for uncollectible accounts on an ongoing basis. No client represented greater than 10% of the Company’s accounts receivable as of June 30, 2025 and December 31, 2024. Additionally, no client represented greater than 10% of the Company’s revenue for the three and six months ended June 30, 2025 and 2024. For the purpose of assessing the

concentration of credit risk for significant clients, the Company defines a client as a business or organization that purchases access to the Company’s platform directly from the Company or indirectly through one of the Company’s partners.

The Company is subject to supplier concentration risk from third party suppliers that supply its inventory. The Company relies and expects to continue to rely on a small number of third-party suppliers to supply its inventory requirements. The Company’s inventory and ability to provide its peripheral Enso device product to members could be adversely affected by a significant interruption from these third-party suppliers.
Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are stated at the amount management expects to collect from outstanding balances, net of allowances for credit losses. The Company records accounts receivable when it has the unconditional right to bill and receive payment regardless of whether revenue has been recognized. Unbilled receivables include contractually billable invoices that are not yet billed. Amounts that the Company has a contractual right to bill or has billed are non-refundable.

Accounts receivable, net as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Billed accounts receivable

 

$

69,830

 

 

$

37,658

 

Unbilled accounts receivable

 

 

37,118

 

 

 

11,307

 

Allowance for credit losses

 

 

(7,649

)

 

 

(6,470

)

Total accounts receivable, net

 

$

99,299

 

 

$

42,495

 

 

Allowances for credit losses are provided for those outstanding balances considered to be uncollectible based on the age of each outstanding invoice, historical collection history and the client’s expected ability to pay. Balances that are still outstanding after management has made reasonable collection efforts are written off through a charge to the allowance for credit losses.

Allowance for credit losses during the three and six months ended June 30, 2025 and 2024 was composed of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

7,005

 

 

$

4,370

 

 

$

6,470

 

 

$

3,439

 

Provision for credit losses

 

 

1,894

 

 

 

1,570

 

 

 

2,780

 

 

 

2,487

 

Write-off for credit losses, net

 

 

(1,250

)

 

 

(321

)

 

 

(1,601

)

 

 

(307

)

Balance, end of period

 

$

7,649

 

 

$

5,619

 

 

$

7,649

 

 

$

5,619

 
Deferred Commissions

Deferred Commissions

The Company has determined that certain sales incentives provided to the Company’s sales team and payments related to partnership agreements are required to be capitalized when the Company expects to generate future economic benefits from the related revenue-generating contracts subsequent to the initial sales transaction. When determining the economic life of the deferred commission assets recognized, the Company considers historical renewal rates, expectations of future client renewals of contracts, and other factors that could impact the economic benefits that the Company expects to generate from the relationship with its clients. Deferred commissions are amortized over the 12-month member subscription period for partner commissions and estimated five-year client period of benefit for sales commissions and are included in sales and marketing expense in the accompanying unaudited consolidated statements of operations and comprehensive loss.

A summary of the activity of the Company’s deferred commission balances during the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

25,519

 

 

$

16,221

 

 

$

24,078

 

 

$

15,479

 

Capitalized costs

 

 

17,020

 

 

 

11,239

 

 

 

27,651

 

 

 

18,347

 

Amortized costs

 

 

(10,680

)

 

 

(7,221

)

 

 

(19,870

)

 

 

(13,587

)

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred commissions - current

 

$

24,354

 

 

$

15,978

 

 

$

24,354

 

 

$

15,978

 

Other assets - non current

 

 

7,505

 

 

 

4,261

 

 

 

7,505

 

 

 

4,261

 

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 
Deferred Revenue

Deferred Revenue

Deferred revenue primarily consists of amounts which the Company has billed or can contractually bill from subscription services and is recognized as the revenue recognition criteria is met.

The following table summarizes the changes in the balances of deferred revenue during the three and six months ended June 30, 2025 and 2024 (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

217,328

 

 

$

141,849

 

 

$

217,632

 

 

$

140,473

 

Add: billings during the period

 

 

196,908

 

 

 

135,382

 

 

 

320,429

 

 

 

219,466

 

Less: revenue recognized

 

 

(139,098

)

 

 

(89,825

)

 

 

(262,923

)

 

 

(172,533

)

Balance, end of period

 

$

275,138

 

 

$

187,406

 

 

$

275,138

 

 

$

187,406

 

 

The Company’s performance obligations are satisfied within 12 months of a member performing their first billable activity. As of June 30, 2025 and December 31, 2024, the deferred revenue balance was composed entirely of noncancellable performance obligations that will be satisfied within 12 months.
Revenue Recognition

Revenue Recognition

The Company earns revenue from subscription fees by providing access to its platform and programs to treat and prevent MSK pain. The Company currently sells its subscriptions to its clients and generates revenue in the United States.

The Company determines revenue recognition through the following five steps:

•
Identification of the contract, or contracts, with a client;
•
Identification of the performance obligations in the contract;
•
Determination of the transaction price;
•
Allocation of the transaction price to the performance obligations in the contract; and
•
Recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company determines it has a contract with a client: (1) when the contract has been approved by the Company and the client; (2) it can identify each party’s rights regarding the services to be transferred and the payment terms for the services; and (3) it has determined that the client has the ability and intent to pay and its members have engaged with the platform. The Company applies judgment in determining the client’s ability and intent to pay, which is based on a variety of factors, including the client’s payment history or, new client reputation and relationship with a health plan partner, as applicable. The Company’s typical contracts have a stated contractual term of three years, however for revenue recognition purposes, the contractual period is one year to align with the member subscription period as there are no enforceable rights and obligations until a subscription period for a member commences upon a first billable activity. After the initial stated contractual term, the Company’s contracts renew automatically for additional one-year terms unless notice of termination is given by the client or the Company.

The contracts contain a number of promised goods and services, including access to the Company’s platform, technical support, as well as the Company’s peripheral products, which includes the Enso device. The Company has determined its contracts contain three performance obligations which are provided to members; (1) access to the platform that is delivered over time; (2) technical support which is delivered in the same pattern using the output method; and (3) the peripheral products, when and if sent as a part of its platform. As the platform and technical support are provided to the client concurrently over the contract term and have the same pattern of transfer, the Company has concluded that these performance obligations represent one performance obligation consisting of a series of distinct services over the contract term.

The Company may provide the Enso device as part of its platform, which remains the legal property of the Company during the contract term. The Company determines whether the Enso device is sent to members based on criteria that it controls. If the Enso device is sent to a member as part of the Company’s platform, it constitutes a lease component as this device remains the property of the Company and the member has the right to direct the use of the device during the contract term. Delivery of the device causes a change to the scope of the contract, as both the Company’s and clients’ rights have changed. The Company accounts for this change as a contract modification resulting in the termination of the old contract and the start of a new contract. The Company’s Enso device qualifies to be accounted for as an operating lease and the pattern of delivery from contract modification date to contract termination is consistent with the timing for non-lease components in the contract. For these client arrangements where the Enso device is leased in combination with services, the Company considers the arrangement to be predominately a service and thus a combined single performance obligation for purposes of revenue recognition.

The transaction price is a fixed annual fee or a variable fee based on member engagement activity during a service period. The Company’s contracts are billed after a member’s first completed billing activity or throughout the service period upon the achievement of cohort milestones or based upon member engagement activity. When the billable volume varies based upon the achievement of cohort milestones or member engagement activity, the consideration is variable at contract outset, and the Company estimates the variable consideration per member using the expected value method. To the extent the Company cannot estimate with reasonable certainty the likelihood that the variable consideration will be achieved, the Company constrains this portion of the transaction price and recognizes it when or as the uncertainty is resolved, which is typically within a short period of time. Based on historical achievement or member engagement experience and periodic lookbacks, the Company adjusts revenue when the uncertainty has been resolved and the Company deems it probable that a significant reversal of revenue will not occur. If the actual amounts of consideration received differ from its estimates, the Company adjusts reported revenue in the period such variances become known. For the three and six months ended June 30, 2025 and 2024 changes to estimated variable consideration were not material.

Members have access to the Company’s platform for a 12-month subscription term that begins after the individual has completed their first billable activity on the platform. The Company does not earn any fees until this point. The Company recognizes revenue for each member ratably over the 12-month member subscription period in order to match the pattern of revenue recognition to the pattern of costs incurred in delivering its platform.

Timing of revenue recognition may differ from the timing of billing. A majority of the Company’s clients are billed upfront or throughout the first quarter of the member’s subscription period. The Company’s performance obligations are satisfied within 12 months of the member’s first billable activity. The Company’s contracts do not contain significant financing components.

Additionally, certain performance guarantees are included in most contracts and are estimated at each reporting period based on the Company’s historical performance or other available information. The Company recognizes any estimated adjustments to the contract price for not achieving the performance guarantees as an adjustment to revenue. Payouts on these performance guarantees have been immaterial to date.
Redeemable Convertible Preferred Stock

Redeemable Convertible Preferred Stock

The Company has elected to apply the qualitative approach in determining whether an amendment to, or exchange of, an equity-classified redeemable convertible preferred stock (“Preferred Stock”) constitutes a modification or extinguishment when the Preferred Stock is not reclassified as a liability.

On February 18, 2025, the Company entered into a stock repurchase agreement (the “Stock Repurchase Agreement”) with Coatue US 70 LLC and Coatue Growth Fund IV LP (collectively “Coatue”), a holder of more than 5% of the Company’s outstanding capital stock. Pursuant to the Stock Repurchase Agreement, immediately prior to the completion of the Company’s IPO, the Company repurchased shares of Series E preferred stock from Coatue US 70 LLC for an aggregate purchase price of $50.0 million (the “Series E Repurchase”). The closing of the IPO was not conditioned upon the completion of the Series E Repurchase. Concurrently with the Stock Repurchase Agreement, the Company entered into a participation letter with Coatue, pursuant to which Coatue had the right, but not the obligation, to purchase from the Company at the IPO price an aggregate number of shares of Class A common stock in the Company’s IPO up to 5% of the shares of Class A common stock offered in the IPO. Additionally, Coatue voluntarily converted all of its remaining shares of Series E preferred stock into shares of Class B common stock immediately prior to the completion of the IPO and consented to convert and reclassify its shares of Series D Preferred Stock into shares of Class B common stock effective immediately prior to the completion of the IPO.

As of March 31, 2025, the Company recorded a deemed contribution of $104.2 million upon the extinguishment of Series D and E Preferred Stock charged to additional paid in capital in the unaudited condensed consolidated balance sheets. During the three months ended June 30, 2025 the Company repurchased 833,333 shares and paid Coatue $50.0 million which is reflected as a conversion from preferred stock to common stock in the unaudited condensed consolidated statements of redeemable preferred stock and stockholders' equity (deficit).
Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20). The ASU intends to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt—Debt with Conversion and Other Options, providing clarifying guidance on how to determine whether a settlement of convertible debt (particularly, cash convertible instruments) at terms that differ from the original conversion terms should be accounted for under the induced conversion or extinguishments guidance. The new standard is effective for the Company for the annual period beginning after December 15, 2025. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The ASU intends to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion). The new standard is effective for the Company for the annual period beginning after December 15, 2026. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The ASU enhances the transparency and decision usefulness of income tax disclosures through expansion of disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The new standard is effective for annual periods beginning after December 15, 2024 on a prospective basis with early adoption permitted. The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements and related disclosures.
v3.25.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Schedule of Accounts Receivable, Net

Accounts receivable, net as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Billed accounts receivable

 

$

69,830

 

 

$

37,658

 

Unbilled accounts receivable

 

 

37,118

 

 

 

11,307

 

Allowance for credit losses

 

 

(7,649

)

 

 

(6,470

)

Total accounts receivable, net

 

$

99,299

 

 

$

42,495

 
Schedule of Allowance for Credit Losses

Allowance for credit losses during the three and six months ended June 30, 2025 and 2024 was composed of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

7,005

 

 

$

4,370

 

 

$

6,470

 

 

$

3,439

 

Provision for credit losses

 

 

1,894

 

 

 

1,570

 

 

 

2,780

 

 

 

2,487

 

Write-off for credit losses, net

 

 

(1,250

)

 

 

(321

)

 

 

(1,601

)

 

 

(307

)

Balance, end of period

 

$

7,649

 

 

$

5,619

 

 

$

7,649

 

 

$

5,619

 
Summary of Deferred Commission Balances

A summary of the activity of the Company’s deferred commission balances during the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

25,519

 

 

$

16,221

 

 

$

24,078

 

 

$

15,479

 

Capitalized costs

 

 

17,020

 

 

 

11,239

 

 

 

27,651

 

 

 

18,347

 

Amortized costs

 

 

(10,680

)

 

 

(7,221

)

 

 

(19,870

)

 

 

(13,587

)

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred commissions - current

 

$

24,354

 

 

$

15,978

 

 

$

24,354

 

 

$

15,978

 

Other assets - non current

 

 

7,505

 

 

 

4,261

 

 

 

7,505

 

 

 

4,261

 

Balance, end of period

 

$

31,859

 

 

$

20,239

 

 

$

31,859

 

 

$

20,239

 
Summary of Changes in Deferred Revenue

The following table summarizes the changes in the balances of deferred revenue during the three and six months ended June 30, 2025 and 2024 (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

217,328

 

 

$

141,849

 

 

$

217,632

 

 

$

140,473

 

Add: billings during the period

 

 

196,908

 

 

 

135,382

 

 

 

320,429

 

 

 

219,466

 

Less: revenue recognized

 

 

(139,098

)

 

 

(89,825

)

 

 

(262,923

)

 

 

(172,533

)

Balance, end of period

 

$

275,138

 

 

$

187,406

 

 

$

275,138

 

 

$

187,406

 
v3.25.2
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Assets, Fair Value Disclosure [Abstract]  
Schedule of Cash, Cash Equivalents and Marketable Securities

As of June 30, 2025 and December 31, 2024, cash, cash equivalents and marketable securities and the fair value hierarchy level consisted of the following (in thousands):

 

 

 

 

 

June 30, 2025

 

 

 

Fair value hierarchy level

 

Amortized
cost

 

 

Gross
unrealized
gains

 

 

Gross
unrealized
losses

 

 

Total
fair
value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

189,024

 

 

$

—

 

 

$

—

 

 

 

189,024

 

Commercial paper

 

Level 2

 

 

8,584

 

 

 

—

 

 

 

(1

)

 

 

8,583

 

Total cash equivalents

 

 

 

 

197,608

 

 

 

—

 

 

 

(1

)

 

 

197,607

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

94,906

 

 

 

2

 

 

 

(37

)

 

 

94,871

 

U.S. treasury securities

 

Level 1

 

 

76,432

 

 

 

7

 

 

 

(1

)

 

 

76,438

 

Corporate bonds

 

Level 2

 

 

4,782

 

 

 

1

 

 

 

(5

)

 

 

4,778

 

Total marketable securities

 

 

 

 

176,120

 

 

 

10

 

 

 

(43

)

 

176,087

 

Total assets

 

 

 

$

373,728

 

 

$

10

 

 

$

(44

)

 

$

373,694

 

 

 

 

 

 

December 31, 2024

 

 

 

Fair value hierarchy level

 

Amortized
cost

 

 

Gross
unrealized
gains

 

 

Gross
unrealized
losses

 

 

Total
fair
value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

259,084

 

 

$

—

 

 

$

—

 

 

$

259,084

 

Commercial paper

 

Level 2

 

 

4,575

 

 

 

—

 

 

 

—

 

 

 

4,575

 

Total cash equivalents

 

 

 

 

263,659

 

 

 

—

 

 

 

—

 

 

 

263,659

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

100,411

 

 

 

49

 

 

 

(7

)

 

 

100,453

 

U.S. treasury securities

 

Level 1

 

 

60,558

 

 

 

30

 

 

 

—

 

 

 

60,588

 

Corporate bonds

 

Level 2

 

 

4,750

 

 

 

—

 

 

 

(4

)

 

 

4,746

 

Total marketable securities

 

 

 

 

165,719

 

 

 

79

 

 

 

(11

)

 

 

165,787

 

Total assets

 

 

 

$

429,378

 

 

$

79

 

 

$

(11

)

 

$

429,446

 
Schedule of Interest Income Earned from Cash and Cash Equivalents and Marketable Securities Included in Other Income

For the three and six months ended June 30, 2025 and 2024, interest income earned from cash and cash equivalents and marketable securities included in other income, net in the unaudited condensed consolidated statements of operations and comprehensive loss, was composed of the following (in thousands):

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cash and cash equivalents

 

 

 

$

2,641

 

 

$

2,762

 

 

$

5,519

 

 

$

5,439

 

Marketable securities

 

 

 

 

1,922

 

 

 

2,238

 

 

 

3,909

 

 

 

4,640

 

Total

 

 

 

$

4,563

 

 

$

5,000

 

 

$

9,428

 

 

$

10,079

 
v3.25.2
Balance Sheet Details (Tables)
 6 Months Ended
Jun. 30, 2025
Balance Sheet Related Disclosures [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred inventory costs

 

$

17,627

 

 

$

14,032

 

Other prepaid expenses

 

 

13,503

 

 

 

11,068

 

Prepaid marketing expenses

 

 

12,901

 

 

 

12,845

 

Other assets

 

 

3,497

 

 

 

6,946

 

Total prepaid expenses and other current assets

 

$

47,528

 

 

$

44,891

 
Schedule of Inventory

Inventory as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Raw materials

 

$

5,943

 

 

$

4,834

 

Work in process

 

 

316

 

 

 

1,911

 

Finished goods

 

 

7,728

 

 

 

4,128

 

Total inventory

 

$

13,987

 

 

$

10,873

 
Schedule of Property, Equipment and Software

Property, equipment and software as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Capitalized internal-use software

 

$

18,813

 

 

$

16,477

 

Computers and software

 

 

4,972

 

 

 

4,957

 

Furniture and fixtures

 

 

489

 

 

 

331

 

Machinery and equipment

 

 

2,015

 

 

 

1,976

 

Leasehold improvements

 

 

203

 

 

 

203

 

Total

 

 

26,492

 

 

 

23,944

 

Accumulated depreciation and amortization

 

 

(18,768

)

 

 

(16,564

)

Property, equipment and software, net

 

$

7,724

 

 

$

7,380

 
Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities as of June 30, 2025 and December 31, 2024 was composed of the following (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Accrued employee related costs

 

$

5,948

 

 

$

4,164

 

Accrued employee stock purchase plan liability

 

 

2,036

 

 

 

—

 

Accrued commissions

 

 

13,422

 

 

 

12,792

 

Accrued taxes payable

 

 

2,401

 

 

 

2,120

 

Accrued client liabilities

 

 

5,355

 

 

 

2,414

 

Accrued other

 

 

5,736

 

 

 

6,363

 

Total accounts payable and accrued liabilities

 

$

34,898

 

 

$

27,853

 
v3.25.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill

The changes in goodwill as of December 31, 2024 and June 30, 2025 were as follows (in thousands):

 

Balance, as of December 31, 2024

 

$

61,607

 

Acquisition

 

 

2,489

 

Balance, as of June 30, 2025

 

$

64,096

 
Summary of Intangible Assets

Intangible assets, net as of June 30, 2025 and December 31, 2024 were as follows (in thousands, except years):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted
Average
Remaining
Term
(years)

 

Developed technology

 

$

4,072

 

 

$

(1,478

)

 

$

2,594

 

 

 

3.4

 

Tradenames

 

 

642

 

 

 

(275

)

 

 

367

 

 

 

5.8

 

Total

 

$

4,714

 

 

$

(1,753

)

 

$

2,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted
Average
Remaining
Term
(years)

 

Developed technology

 

$

2,512

 

 

$

(1,104

)

 

$

1,408

 

 

 

4.6

 

Tradenames

 

 

642

 

 

 

(243

)

 

 

399

 

 

 

6.3

 

Total

 

$

3,154

 

 

$

(1,347

)

 

$

1,807

 

 

 

 
Schedule of Future Amortization Expense Related to Intangible Assets

As of June 30, 2025, future amortization expense related to the intangible assets was estimated as follows (in thousands):

 

2025 (remainder)

 

$

448

 

2026

 

 

898

 

2027

 

 

898

 

2028

 

 

422

 

2029

 

 

216

 

Thereafter

 

 

79

 

Total

 

$

2,961

 
v3.25.2
Commitments and Contingencies (Tables)
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Remaining Future Lease Payment Obligations Under Noncancellable Operating Leases

As of June 30, 2025, remaining future minimum lease payment obligations under the Company’s noncancellable operating leases were as follows (in thousands):

 

2025 (remainder)

 

$

2,338

 

2026

 

 

4,811

 

2027

 

 

3,547

 

2028

 

 

310

 

2029

 

 

318

 

Thereafter

 

 

270

 

Total lease payments

 

 

11,594

 

Less: imputed interest

 

 

(1,628

)

Present value of lease liabilities

 

$

9,966

 

Classified as:

 

 

 

Lease liabilities - current

 

$

4,047

 

Lease liabilities - non current

 

 

5,919

 

Total lease liability

 

$

9,966

 
v3.25.2
Redeemable Convertible Preferred Stock (Tables)
 6 Months Ended
Jun. 30, 2025
Temporary Equity Disclosure [Abstract]  
Schedule of Redeemable Convertible Preferred Stock

Redeemable convertible preferred stock (“Preferred Stock”) outstanding as of December 31, 2024 consisted of the following (in thousands, except share amounts):

 

Preferred Stock

 

Authorized
Shares

 

 

Issued and
Outstanding
Shares

 

 

Net Value

 

 

Liquidation Preference

 

Series Seed - 1

 

 

3,078,601

 

 

 

3,078,601

 

 

$

1,057

 

 

$

1,057

 

Series Seed - 2

 

 

493,325

 

 

 

493,325

 

 

 

250

 

 

 

206

 

Series A-1

 

 

975,463

 

 

 

975,463

 

 

 

903

 

 

 

808

 

Series A-2

 

 

7,112,809

 

 

 

7,112,809

 

 

 

7,362

 

 

 

7,362

 

Series B

 

 

11,500,586

 

 

 

11,500,586

 

 

 

24,930

 

 

 

26,000

 

Series C

 

 

10,253,027

 

 

 

10,253,027

 

 

 

74,711

 

 

 

75,000

 

Series C-1

 

 

2,258,620

 

 

 

2,258,620

 

 

 

15,856

 

 

 

15,282

 

Series D

 

 

7,354,666

 

 

 

7,314,041

 

 

 

326,457

 

 

 

319,763

 

Series E

 

 

5,163,674

 

 

 

5,163,674

 

 

 

399,746

 

 

 

400,000

 

 

 

48,190,771

 

 

 

48,150,146

 

 

$

851,272

 

 

$

845,478

 

 

Preferred stock outstanding as of June 30, 2025 consisted of the following (in thousands, except share amounts):

 

Preferred Stock

 

Authorized
Shares

 

 

Issued and
Outstanding
Shares

 

 

Net Value

 

 

Liquidation Preference

 

Series E

 

 

4,330,341

 

 

 

2,581,837

 

 

$

199,874

 

 

$

200,000

 

 

 

4,330,341

 

 

 

2,581,837

 

 

$

199,874

 

 

$

200,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation Expense

Stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cost of revenue

 

$

16,441

 

 

$

37

 

 

$

16,441

 

 

$

72

 

Research and development

 

 

248,809

 

 

 

81

 

 

 

248,809

 

 

 

161

 

Sales and marketing

 

 

95,050

 

 

 

89

 

 

 

95,050

 

 

 

180

 

General and administrative

 

 

230,683

 

 

 

99

 

 

 

230,690

 

 

 

197

 

Total stock-based compensation

 

$

590,983

 

 

$

306

 

 

$

590,990

 

 

$

610

 

 
Summary of the RSU and PRSU Activity

The following is a summary of the Company’s RSU and PRSU activity during the six months ended June 30, 2025:

 

 

Number of
restricted
stock units

 

 

Weighted
average grant-
date fair value
(per share)

 

 

Number of
performance-
based restricted
stock units

 

 

Weighted
average
grant-date fair
value (per share)

 

Outstanding as of December 31, 2024

 

 

15,061,414

 

 

$

26.76

 

 

 

11,424,836

 

 

$

20.08

 

Granted

 

 

2,957,467

 

 

 

32.98

 

 

 

1,888,501

 

 

 

25.03

 

Vested (1)

 

 

(11,385,595

)

 

 

26.34

 

 

 

(5,733,484

)

 

 

19.95

 

Forfeited

 

 

(732,971

)

 

 

30.17

 

 

 

(1,888,501

)

 

 

20.11

 

Outstanding as of June 30, 2025

 

 

5,900,315

 

 

 

30.26

 

 

 

5,691,352

 

 

 

21.84

 
(1)
Vested shares include 303,634 shares not released at the weighted average granted date fair value of 30.07 per share.
Summary of the Stock Options A summary of the stock options and changes during the six months ended June 30, 2025 are presented below (in thousands, except shares, per share amounts and years):

 

 

Number of
options

 

 

Weighted-
average
exercise price
per share

 

 

Weighted
average
remaining
contractual life
(years)

 

 

Aggregate
intrinsic value

 

Balances at December 31, 2024

 

 

2,905,276

 

 

 

1.28

 

 

 

3.8

 

 

 

101,782

 

Options exercised

 

 

(186,407

)

 

 

1.37

 

 

 

 

 

 

 

Options forfeited and expired (2)

 

 

(20,636

)

 

 

1.94

 

 

 

 

 

 

 

Balances at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 

Options exercisable at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 

Options vested at June 30, 2025

 

 

2,698,233

 

 

$

1.27

 

 

 

3.4

 

 

$

136,220

 
(2)
Options expired consisted of 20,636 shares of common stock at a weighted average price of $1.94 per share.
Schedule of Estimated Fair Value of Each Employee Stock Purchase Plan (ESPP) Share

The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes-Merton option-pricing model and the assumptions noted in the following table:

 

 

 

June 30, 2025

 

 

 

Six Months

 

 

1 Year

 

Risk-free interest rate

 

 

4.3

%

 

 

4.1

%

Expected volatility

 

 

61.5

%

 

 

61.5

%

Expected term (in years)

 

 

0.5

 

 

 

1.0

 

Expected dividend rate

 

 

0

%

 

 

0

%
v3.25.2
Net Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Numerator and Denominator for Calculating Basic and Diluted Net Loss Per Share

The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net loss per share (in thousands, except per share data):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(575,651

)

 

$

(12,926

)

 

$

(558,512

)

 

$

(39,390

)

Adjustment to reflect deemed contribution
   from Series D and Series E redeemable
   convertible preferred stock extinguishment (1)

 

 

—

 

 

 

—

 

 

 

104,174

 

 

 

—

 

Net loss attributable to common stockholders

 

$

(575,651

)

 

$

(12,926

)

 

$

(454,338

)

 

$

(39,390

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in
   computing net loss per share attributable to
   common stockholders, basic and
   diluted

 

 

43,931

 

 

 

13,528

 

 

 

30,190

 

 

 

13,455

 

Net loss per share attributable to common
   stockholders, basic and diluted

 

$

(13.10

)

 

$

(0.96

)

 

$

(15.05

)

 

$

(2.93

)
(1)
As discussed in Note 7, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net income attributable to common stockholders.
Schedule of Potentially Issuable Shares Excluded from Calculation of Diluted Net Loss Per Share

Certain potentially issuable shares have been excluded from the calculation of diluted net loss per share during the three and six months ended June 30, 2025 and June 30, 2024 because their inclusion would have been anti-dilutive (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Preferred Stock

 

 

2,582

 

 

 

48,150

 

 

 

2,582

 

 

 

48,150

 

Stock options

 

 

2,698

 

 

 

3,149

 

 

 

2,698

 

 

 

3,149

 

Restricted stock units

 

 

5,900

 

 

 

15,711

 

 

 

5,900

 

 

 

15,711

 

Performance restricted stock units

 

 

5,691

 

 

 

11,425

 

 

 

5,691

 

 

 

11,425

 

Restricted stock awards

 

 

—

 

 

 

2,597

 

 

 

—

 

 

 

2,597

 

Total

 

 

16,871

 

 

 

81,032

 

 

 

16,871

 

 

 

81,032

 
v3.25.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Summary of Unaudited Consolidated Net Loss Including Significant Segment Expenses

The table below presents the Company’s unaudited consolidated net loss including significant segment expenses (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

2024

 

Revenue

 

$

139,098

 

 

$

89,825

 

 

$

262,923

 

$

172,533

 

Less (add):

 

 

 

 

 

 

 

 

 

 

 

Excess and obsolete inventory charge (1)

 

 

—

 

 

 

1,309

 

 

 

—

 

 

1,812

 

Restructuring, acquisition and other expenses (2)

 

 

—

 

 

 

1,718

 

 

 

—

 

 

2,185

 

Stock-based compensation expense (3)

 

 

590,983

 

 

 

306

 

 

 

590,990

 

 

610

 

Other segment expenses (4)

 

 

10,767

 

 

 

(4,803

)

 

 

8,578

 

 

(9,063

)

Cost of revenue (excluding 1,2,3, 4)

 

 

23,777

 

 

 

21,056

 

 

 

47,188

 

 

45,191

 

Research and development (excluding 2,3,4)

 

 

22,774

 

 

 

24,263

 

 

 

44,816

 

 

52,980

 

Sales and marketing (excluding 2,3,4)

 

 

49,549

 

 

 

42,801

 

 

 

96,264

 

 

84,803

 

General and administrative (excluding 2,3,4)

 

 

16,899

 

 

 

16,101

 

 

 

33,599

 

 

33,405

 

Net loss

 

$

(575,651

)

 

$

(12,926

)

 

$

(558,512

)

$

(39,390

)

 

(4) Other segment expenses include other income, net, employer taxes related to stock-based compensation expense, amortization of intangible assets and provision for (benefit from) income taxes.
Summary of Long-lived Assets by Geographical Location

Long-lived assets are composed of intangible assets, property, equipment and software, net and right-of-use assets. Long-lived assets by geographical location are as follows (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

2025

 

 

2024

 

United States

 

$

18,168

 

 

$

18,128

 

Outside the United States

 

 

1,122

 

 

 

666

 

Total

 

$

19,290

 

 

$

18,794

 
v3.25.2
Description of Business - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended
May 31, 2025
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Subsidiary, Sale of Stock [Line Items]              
Outstanding shares   2,581,837   48,150,146      
Series E Redeemable Convertible Preferred Stock              
Subsidiary, Sale of Stock [Line Items]              
Redeemable convertible preferred stock, par value   $ 0.00001   $ 0.00001      
Outstanding shares   2,581,837   5,163,674      
Redeemable Convertible Preferred Stock              
Subsidiary, Sale of Stock [Line Items]              
Outstanding shares   2,581,837 48,150,146 48,150,146 48,150,146 48,150,146 48,150,146
IPO              
Subsidiary, Sale of Stock [Line Items]              
Deferred offering costs $ 14.0            
IPO | Series E Redeemable Convertible Preferred Stock              
Subsidiary, Sale of Stock [Line Items]              
Redeemable convertible preferred stock, par value $ 0.00001            
IPO | Redeemable Convertible Preferred Stock              
Subsidiary, Sale of Stock [Line Items]              
Outstanding shares 42,986,472            
IPO | Class B Common Stock              
Subsidiary, Sale of Stock [Line Items]              
Conversion shares 42,986,472            
IPO | Series E Preferred Stock              
Subsidiary, Sale of Stock [Line Items]              
Outstanding shares 1,748,504            
v3.25.2
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Feb. 18, 2025
Dec. 31, 2024
Product Information [Line Items]          
Current assets $ 598,425 $ 598,425     $ 583,446
Current liabilities $ 314,083 $ 314,083     249,299
Estimated client period of benefit for sales commissions   5 years      
Revenue recognition contractual term   3 years      
Repurchase of shares 833,333 833,333      
Series D and E Preferred Stock          
Product Information [Line Items]          
Fair value adjustment of redeemable convertible preferred stock extinguishment     $ 104,200    
Coatue Growth Fund IV LP          
Product Information [Line Items]          
Payment of redeemable preferred stock extinguishment $ 50,000        
Coatue Growth Fund IV LP | Series E Preferred Stock          
Product Information [Line Items]          
Aggregate purchase price of preferred stock       $ 50,000  
Coatue Growth Fund IV LP | Minimum          
Product Information [Line Items]          
Company's outstanding capital stock percentage       5.00%  
Coatue Growth Fund IV LP | Maximum | Class A Common Stock          
Product Information [Line Items]          
Right to purchase shares in initial public offering, percentage       5.00%  
VIE          
Product Information [Line Items]          
Current assets 5,400 $ 5,400     4,000
Current liabilities $ 7,900 $ 7,900     $ 6,300
v3.25.2
Summary of Significant Accounting Policies - Schedule of Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]            
Billed accounts receivable $ 69,830   $ 37,658      
Unbilled accounts receivable 37,118   11,307      
Allowance for credit losses (7,649) $ (7,005) (6,470) $ (5,619) $ (4,370) $ (3,439)
Total accounts receivable, net $ 99,299   $ 42,495      
v3.25.2
Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Accounting Policies [Abstract]        
Balance, beginning of period $ 7,005 $ 4,370 $ 6,470 $ 3,439
Provision for credit losses 1,894 1,570 2,780 2,487
Write-off for credit losses, net (1,250) (321) (1,601) (307)
Balance, end of period $ 7,649 $ 5,619 $ 7,649 $ 5,619
v3.25.2
Summary of Significant Accounting Policies - Summary of Deferred Commission Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Deferred Commissions [Abstract]          
Balance, beginning of period $ 25,519 $ 16,221 $ 24,078 $ 15,479  
Capitalized costs 17,020 11,239 27,651 18,347  
Amortized costs (10,680) (7,221) (19,870) (13,587)  
Balance, end of period 31,859 20,239 31,859 20,239  
Deferred commissions - current 24,354 15,978 24,354 15,978 $ 18,615
Other assets - non current $ 7,505 $ 4,261 $ 7,505 $ 4,261  
v3.25.2
Summary of Significant Accounting Policies - Summary of Changes in Deferred Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Movement in Deferred Revenue [Roll Forward]        
Balance, beginning of period $ 217,328 $ 141,849 $ 217,632 $ 140,473
Add: billings during the period 196,908 135,382 320,429 219,466
Less: revenue recognized (139,098) (89,825) (262,923) (172,533)
Balance, end of period $ 275,138 $ 187,406 $ 275,138 $ 187,406
v3.25.2
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements - Schedule of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Cash equivalents    
Amortized cost $ 197,608 $ 263,659
Gross unrealized losses (1)  
Total cash equivalents 197,607 263,659
Marketable securities:    
Amortized cost 176,120 165,719
Gross unrealized gains 10 79
Gross unrealized losses (43) (11)
Total fair value 176,087 165,787
Total assets amortized cost 373,728 429,378
Total assets unrealized gains 10 79
Total assets unrealized losses (44) (11)
Total assets fair value 373,694 429,446
Money Market Funds | Level 1    
Cash equivalents    
Amortized cost 189,024 259,084
Total cash equivalents 189,024 259,084
Commercial Paper | Level 2    
Cash equivalents    
Amortized cost 8,584 4,575
Gross unrealized losses (1)  
Total cash equivalents 8,583 4,575
Marketable securities:    
Amortized cost 94,906 100,411
Gross unrealized gains 2 49
Gross unrealized losses (37) (7)
Total fair value 94,871 100,453
U.S. Treasury Securities | Level 1    
Marketable securities:    
Amortized cost 76,432 60,558
Gross unrealized gains 7 30
Gross unrealized losses (1)  
Total fair value 76,438 60,588
Corporate Bonds | Level 2    
Marketable securities:    
Amortized cost 4,782 4,750
Gross unrealized gains 1  
Gross unrealized losses (5) (4)
Total fair value $ 4,778 $ 4,746
v3.25.2
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements - Schedule of Interest Income Earned from Cash and Cash Equivalents and Marketable Securities Included in Other Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]        
Interest and other income $ 4,563 $ 5,000 $ 9,428 $ 10,079
Cash and Cash Equivalents        
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]        
Interest and other income 2,641 2,762 5,519 5,439
Marketable Securities        
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]        
Interest and other income $ 1,922 $ 2,238 $ 3,909 $ 4,640
v3.25.2
Cash, Cash Equivalents and Marketable Securities and Fair Value Measurements - Additional Information (Details) - USD ($)
 6 Months Ended 12 Months Ended
Feb. 18, 2025
Jun. 30, 2025
Dec. 31, 2024
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]      
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset transfers into Level 3   $ 0 $ 0
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset transfers out of Level 3   $ 0 $ 0
Level 3      
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]      
Stock Repurchase Agreement, extinguishment amount $ 104,200,000    
v3.25.2
Balance Sheet Details - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Prepaid Expense and Other Assets, Current [Abstract]    
Deferred inventory costs $ 17,627 $ 14,032
Other prepaid expenses 13,503 11,068
Prepaid marketing expenses 12,901 12,845
Other assets 3,497 6,946
Total prepaid expenses and other current assets $ 47,528 $ 44,891
v3.25.2
Balance Sheet Details - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Balance Sheet Related Disclosures [Abstract]        
Amortization of deferred inventory costs $ 7,700 $ 7,400 $ 15,100 $ 16,200
Excess and obsolete inventory charges 0 1,309 0 1,812
Depreciation expense 300 500 700 1,000
Capitalized internal-use software costs 1,600 500 2,300 1,300
Capitalized internal-use software amortization $ 800 $ 1,000 $ 1,600 $ 2,000
v3.25.2
Balance Sheet Details - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Inventory, Net [Abstract]    
Raw materials $ 5,943 $ 4,834
Work in process 316 1,911
Finished goods 7,728 4,128
Total inventory $ 13,987 $ 10,873
v3.25.2
Balance Sheet Details - Schedule of Property, Equipment and Software (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Property, Plant and Equipment, Gross [Abstract]    
Capitalized internal-use software $ 18,813 $ 16,477
Computers and software 4,972 4,957
Furniture and fixtures 489 331
Machinery and equipment 2,015 1,976
Leasehold improvements 203 203
Total 26,492 23,944
Accumulated depreciation and amortization (18,768) (16,564)
Property, equipment and software, net $ 7,724 $ 7,380
v3.25.2
Balance Sheet Details - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accrued employee related costs $ 5,948 $ 4,164
Accrued employee stock purchase plan liability 2,036  
Accrued commissions 13,422 12,792
Accrued taxes payable 2,401 2,120
Accrued client liabilities 5,355 2,414
Accrued other 5,736 6,363
Total accounts payable and accrued liabilities $ 34,898 $ 27,853
v3.25.2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Feb. 28, 2025
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Finite-Lived Intangible Assets [Line Items]          
Acquisition resulted in increase of goodwill       $ 2,489  
Other intangible assets $ 1,600        
Amortization expense   $ 200 $ 100 $ 400 $ 200
Asset Acquisitions          
Finite-Lived Intangible Assets [Line Items]          
Business combination, assets acquired $ 4,000        
Developed Technology | Minimum          
Finite-Lived Intangible Assets [Line Items]          
Weighted average useful lives       3 years  
Developed Technology | Maximum          
Finite-Lived Intangible Assets [Line Items]          
Weighted average useful lives       8 years  
Tradenames          
Finite-Lived Intangible Assets [Line Items]          
Weighted average useful lives       10 years  
v3.25.2
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Goodwill [Roll Forward]  
Balance $ 61,607
Acquisition 2,489
Balance $ 64,096
v3.25.2
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 4,714 $ 3,154
Accumulated Amortization (1,753) (1,347)
Net Carrying Amount 2,961 1,807
Developed Technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 4,072 2,512
Accumulated Amortization (1,478) (1,104)
Net Carrying Amount $ 2,594 $ 1,408
Weighted Average Remaining Term (years) 3 years 4 months 24 days 4 years 7 months 6 days
Tradenames    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 642 $ 642
Accumulated Amortization (275) (243)
Net Carrying Amount $ 367 $ 399
Weighted Average Remaining Term (years) 5 years 9 months 18 days 6 years 3 months 18 days
v3.25.2
Goodwill and Intangible Assets - Schedule of Future Amortization Expense Related to Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 (remainder) $ 448  
2026 898  
2027 898  
2028 422  
2029 216  
Thereafter 79  
Net Carrying Amount $ 2,961 $ 1,807
v3.25.2
Commitments and Contingencies - Additional Information (Details)
 6 Months Ended
Jun. 30, 2025
ft²
Montreal, Canada  
Loss Contingencies [Line Items]  
Area of land 10,287
Lease commenced date Apr. 01, 2025
Lease termination 2030-10
Minimum  
Loss Contingencies [Line Items]  
Remaining lease terms 1 year
Maximum  
Loss Contingencies [Line Items]  
Remaining lease terms 5 years
v3.25.2
Commitments and Contingencies - Schedule of Remaining Future Lease Payment Obligations Under Noncancellable Operating Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
2025 (remainder) $ 2,338  
2026 4,811  
2027 3,547  
2028 310  
2029 318  
Thereafter 270  
Total lease payments 11,594  
Less: imputed interest (1,628)  
Present value of lease liabilities 9,966  
Classified as:    
Lease liabilities - current 4,047 $ 3,814
Lease liabilities - non current 5,919 $ 7,258
Total lease liability $ 9,966  
v3.25.2
Redeemable Convertible Preferred Stock - Schedule of Redeemable Convertible Preferred Stock (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Temporary Equity [Line Items]    
Authorized Shares 4,330,341 48,190,771
Issued Shares 2,581,837 48,150,146
Outstanding shares 2,581,837 48,150,146
Net Value $ 199,874 $ 851,272
Liquidation Preference $ 200,000 $ 845,478
Series Seed - 1    
Temporary Equity [Line Items]    
Authorized Shares   3,078,601
Issued Shares   3,078,601
Outstanding shares   3,078,601
Net Value   $ 1,057
Liquidation Preference   $ 1,057
Series Seed - 2    
Temporary Equity [Line Items]    
Authorized Shares   493,325
Issued Shares   493,325
Outstanding shares   493,325
Net Value   $ 250
Liquidation Preference   $ 206
Series A-1    
Temporary Equity [Line Items]    
Authorized Shares   975,463
Issued Shares   975,463
Outstanding shares   975,463
Net Value   $ 903
Liquidation Preference   $ 808
Series A-2    
Temporary Equity [Line Items]    
Authorized Shares   7,112,809
Issued Shares   7,112,809
Outstanding shares   7,112,809
Net Value   $ 7,362
Liquidation Preference   $ 7,362
Series B    
Temporary Equity [Line Items]    
Authorized Shares   11,500,586
Issued Shares   11,500,586
Outstanding shares   11,500,586
Net Value   $ 24,930
Liquidation Preference   $ 26,000
Series C    
Temporary Equity [Line Items]    
Authorized Shares   10,253,027
Issued Shares   10,253,027
Outstanding shares   10,253,027
Net Value   $ 74,711
Liquidation Preference   $ 75,000
Series C-1    
Temporary Equity [Line Items]    
Authorized Shares   2,258,620
Issued Shares   2,258,620
Outstanding shares   2,258,620
Net Value   $ 15,856
Liquidation Preference   $ 15,282
Series D    
Temporary Equity [Line Items]    
Authorized Shares   7,354,666
Issued Shares   7,314,041
Outstanding shares   7,314,041
Net Value   $ 326,457
Liquidation Preference   $ 319,763
Series E    
Temporary Equity [Line Items]    
Authorized Shares 4,330,341 5,163,674
Issued Shares 2,581,837 5,163,674
Outstanding shares 2,581,837 5,163,674
Net Value $ 199,874 $ 399,746
Liquidation Preference $ 200,000 $ 400,000
v3.25.2
Redeemable Convertible Preferred Stock - Additional Information (Details)
 6 Months Ended
Jun. 30, 2025
USD ($)
Vote
$ / shares
shares
May 31, 2025
shares
Dec. 31, 2024
USD ($)
shares
Temporary Equity [Line Items]      
Temporary equity, shares authorized 4,330,341   48,190,771
Temporary equity, shares issued 2,581,837   48,150,146
Temporary equity, shares outstanding 2,581,837   48,150,146
Preferred stock, liquidation amount | $ $ 200,000,000   $ 845,478,000
Series E Preferred Stock      
Temporary Equity [Line Items]      
Preferred stock, conversion ratio 1    
Preferred stock conversion price | $ / shares $ 77.4642    
Preferred stock, liquidation preference per share | $ / shares $ 77.4642    
Preferred stock, liquidation amount | $ $ 200,000,000    
Deemed contribution | $ $ 50,000,000    
Preferred shares authorized 4,330,341    
Series E Preferred Stock | Minimum      
Temporary Equity [Line Items]      
Public offering price per share | $ / shares $ 77.4642    
Aggregate cash proceeds, net of underwriting discounts and commissions | $ $ 100,000,000    
Number of shares of capital stock, Percentage 50.00%    
Series E Preferred Stock | IPO      
Temporary Equity [Line Items]      
Temporary equity, shares outstanding   1,748,504  
Preferred shares authorized 4,330,341    
Preferred stock issued 2,581,837    
Preferred stock outstanding 2,581,837    
Series E Redeemable Convertible Preferred Stock      
Temporary Equity [Line Items]      
Temporary equity, shares authorized 4,330,341   5,163,674
Temporary equity, shares issued 2,581,837   5,163,674
Temporary equity, shares outstanding 2,581,837   5,163,674
Preferred stock, liquidation amount | $ $ 200,000,000   $ 400,000,000
Class B Common Stock      
Temporary Equity [Line Items]      
Number of votes per share | Vote 15    
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Additional Information (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Feb. 26, 2025
USD ($)
Feb. 07, 2025
USD ($)
Feb. 04, 2025
USD ($)
Mar. 31, 2025
shares
Jun. 30, 2025
USD ($)
Vote
shares
Mar. 31, 2025
shares
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Vote
$ / shares
shares
Jun. 30, 2024
USD ($)
May 21, 2026
$ / shares
Dec. 31, 2024
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Common stock, shares authorized         0     0     98,109,595
Stock-based compensation expense | $         $ 590,983   $ 306 $ 590,990 $ 610    
Expected term               6 months     1 year
Expected dividend yield               0.00%     0.00%
Stock options issued               0      
Total intrinsic values of options exercised | $         9,400     $ 9,400      
Employee Stock Purchase Plan                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Unrecognized stock-based compensation expense | $         8,000     $ 8,000      
Weighted average period               7 months 6 days      
Common shares purchased under ESPP               0      
Fair value of stock purchase rights granted | $ / shares               $ 11.65      
Employee Stock Purchase Plan | Forecast                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Fair value of stock purchase rights granted | $ / shares                   $ 13.6  
Executive Chairman                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note | $     $ 2,200                
Chief Executive Officer                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note | $   $ 2,200                  
Chief Financial Officer                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note | $ $ 500                    
Restricted Stock Units and Performance-Based Restricted Stock Units | Employee                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Stock-based compensation expense | $               $ 365,500      
Restricted Stock Units and Performance-Based Restricted Stock Units | Nonemployee                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Stock-based compensation expense | $               $ 224,500      
Restricted Stock Units (RSUs)                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Expiration period               4 years      
Unrecognized stock-based compensation expense | $         113,300     $ 113,300      
Weighted average period               2 years 1 month 17 days      
Intrinsic value | $         305,300     $ 305,300      
PRSU's cancelled               732,971      
Performance-Based Restricted Stock Units                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Unrecognized stock-based compensation expense | $         14,200     $ 14,200      
Weighted average period               2 months 12 days      
Intrinsic value | $         $ 294,500     $ 294,500      
Expected term           7 years          
Risk-free rate, minimum           4.30%          
Risk-free rate, maximum           4.60%          
Discount for lack of marketability           20.00%          
Volatility, minimum           58.00%          
Volatility, maximum           71.00%          
Expected dividend yield           0.00%          
PRSU's cancelled               1,888,501      
Performance-Based Restricted Stock Units | Chief Executive Officer                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Awards granted               1,888,501      
PRSU's cancelled               1,888,501      
2025 Incentive Award Plan                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Shares reserved under plan       12,101,419   12,101,419          
Shares outstanding under plan         12,186,537     12,186,537      
2017 Equity Incentive Plan                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Shares reserved under plan                     37,542,593
Vesting period               4 years      
Shares outstanding under plan                     2,191,805
Expiration period               10 years      
Total intrinsic values of options exercised | $         $ 136,220     $ 136,220      
2025 Employee Purchase Plan                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Offering period       1 year              
Purchase period       6 months              
Purchase price of common stock percent       85.00%              
Class A Common Stock                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Common stock, shares authorized         1,000,000,000     1,000,000,000      
Number of votes per share | Vote         1     1      
Class A Common Stock | 2025 Employee Purchase Plan                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Shares reserved for future issuance       2,731,452   2,731,452          
Class B Common Stock                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Common stock, shares authorized         120,000,000     120,000,000      
Number of votes per share | Vote         15     15      
Series E Preferred Stock                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Preferred shares authorized         4,330,341     4,330,341      
Undesignated Preferred Stock                      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                      
Preferred shares authorized         100,000,000     100,000,000      
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense $ 590,983 $ 306 $ 590,990 $ 610
Cost of Revenue        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense 16,441 37 16,441 72
Research and Development        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense 248,809 81 248,809 161
Sales and Marketing        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense 95,050 89 95,050 180
General and Administrative        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense $ 230,683 $ 99 $ 230,690 $ 197
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Summary of the RSU and PRSU Activity (Details)
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of units, Vested | shares (303,634)
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted average grant-date fair value, Vested | $ / shares $ 30.07
Restricted Stock Units (RSUs)  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of units, Outstanding | shares 15,061,414
Number of units, Granted | shares 2,957,467
Number of units, Vested | shares (11,385,595)
Number of units, Forfeited | shares (732,971)
Number of units, Outstanding | shares 5,900,315
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted average grant-date fair value, Outstanding | $ / shares $ 26.76
Weighted average grant-date fair value, Granted | $ / shares 32.98
Weighted average grant-date fair value, Vested | $ / shares 26.34
Weighted average grant-date fair value, Forfeited | $ / shares 30.17
Weighted average grant-date fair value, Outstanding | $ / shares $ 30.26
Performance-Based Restricted Stock Units  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of units, Outstanding | shares 11,424,836
Number of units, Granted | shares 1,888,501
Number of units, Vested | shares (5,733,484)
Number of units, Forfeited | shares (1,888,501)
Number of units, Outstanding | shares 5,691,352
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted average grant-date fair value, Outstanding | $ / shares $ 20.08
Weighted average grant-date fair value, Granted | $ / shares 25.03
Weighted average grant-date fair value, Vested | $ / shares 19.95
Weighted average grant-date fair value, Forfeited | $ / shares 20.11
Weighted average grant-date fair value, Outstanding | $ / shares $ 21.84
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Summary of the RSU and PRSU Activity (Parenthetical) (Details)
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Number of units, Vested | shares 303,634
Weighted average grant-date fair value, Vested | $ / shares $ 30.07
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Summary of the Stock Options (Details)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Weighted-average exercise price per share    
Aggregate intrinsic value, Options exercisable | $ $ 9,400  
2017 Equity Incentive Plan    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]    
Number of options, Beginning Balance | shares 2,905,276  
Number of options exercised | shares (186,407)  
Number of options forfeited and expired | shares (20,636)  
Number of options, Ending Balance | shares 2,698,233 2,905,276
Number of options exercisable | shares 2,698,233  
Number of options vested | shares 2,698,233  
Weighted-average exercise price per share    
Weighted-average exercise price per share, Beginning balance | $ / shares $ 1.28  
Weighted-average exercise price per share, Options exercised | $ / shares 1.37  
Weighted-average exercise price per share, Options forfeited and expired | $ / shares 1.94  
Weighted-average exercise price per share, Ending balance | $ / shares 1.27 $ 1.28
Weighted-average exercise price per share, Options exercisable | $ / shares 1.27  
Weighted-average exercise price per share, Options vested | $ / shares $ 1.27  
Weighted average remaining contractual life (years), outstanding 3 years 4 months 24 days 3 years 9 months 18 days
Weighted average remaining contractual life (years), Options exercisable 3 years 4 months 24 days  
Weighted average remaining contractual life (years), Options vested 3 years 4 months 24 days  
Aggregate intrinsic value, Options outstanding | $ $ 136,220 $ 101,782
Aggregate intrinsic value, Options exercisable | $ 136,220  
Aggregate intrinsic value, Options vested | $ $ 136,220  
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Summary of the Stock Options (Parenthetical) (Details)
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Options expired | shares 20,636
Weighted average price | $ / shares $ 1.94
v3.25.2
Common Stock, Equity Incentive Plans and Stock-Based Compensation - Schedule of Estimated Fair Value of Each Employee Stock Purchase Plan (ESPP) Share (Details)
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]    
Risk-free interest rate 4.30% 4.10%
Expected volatility 61.50% 61.50%
Expected term (in years) 6 months 1 year
Expected dividend rate 0.00% 0.00%
v3.25.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]        
Provision (benefit) for income taxes $ (326) $ 361 $ 672 $ 519
v3.25.2
Net Loss Per Share - Schedule of Reconciliation of Numerator and Denominator for Calculating Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Numerator:            
Net Income (Loss) $ (575,651) $ 17,139 $ (12,926) $ (26,464) $ (558,512) $ (39,390)
Adjustment to reflect deemed contribution from Series D and Series E redeemable convertible preferred stock extinguishment [1] 0   0   104,174 0
Net loss attributable to common stockholders $ (575,651)   $ (12,926)   $ (454,338) $ (39,390)
Denominator:            
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic 43,931   13,528   30,190 13,455
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, diluted 43,931   13,528   30,190 13,455
Net loss per share attributable to common stockholders, basic $ (13.1)   $ (0.96)   $ (15.05) $ (2.93)
Net loss per share attributable to common stockholders, diluted $ (13.1)   $ (0.96)   $ (15.05) $ (2.93)
[1] As discussed in Note 7, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net income attributable to common stockholders.
v3.25.2
Net Loss Per Share - Schedule of Potentially Issuable Shares Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 16,871 81,032 16,871 81,032
Preferred Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 2,582 48,150 2,582 48,150
Stock Options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 2,698 3,149 2,698 3,149
Restricted Stock Units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 5,900 15,711 5,900 15,711
Performance Restricted Stock Units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 5,691 11,425 5,691 11,425
Restricted Stock Awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially issuable shares excluded from calculation of diluted net loss per share 0 2,597 0 2,597
v3.25.2
Related Party Transactions - Additional Information (Details) - USD ($)
$ in Millions
 6 Months Ended
Feb. 26, 2025
Feb. 07, 2025
Feb. 04, 2025
Jun. 30, 2025
Jun. 30, 2024
Perkins Coie LLP          
Related Party Transaction [Line Items]          
Legal fees       $ 0.9 $ 0.8
Accounts payable and accrued liabilities       $ 0.3 $ 0.3
Executive Chairman          
Related Party Transaction [Line Items]          
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note     $ 2.2    
Chief Executive Officer          
Related Party Transaction [Line Items]          
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note   $ 2.2      
Chief Financial Officer          
Related Party Transaction [Line Items]          
Repayment of aggregate principal and interest amount outstanding pursuant to partial recourse promissory note $ 0.5        
v3.25.2
Segment Information - Additional Information (Details)
 6 Months Ended
Jun. 30, 2025
Segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] Chief Executive Officer [Member]
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The CODM uses consolidated net loss as the measure of profit or loss to allocate resources and assess performance. Consolidated financial forecasts and budget to actual results are also used by the CODM to assess performance and allocate resources, make strategic decisions related to headcount and incur capital expenditures.
v3.25.2
Segment Information - Summary of Unaudited Consolidated Net Loss Including Significant Segment Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting [Abstract]            
Revenue $ 139,098   $ 89,825   $ 262,923 $ 172,533
Excess and obsolete inventory charge 0   1,309   0 1,812
Restructuring, acquisition and other expenses 0   1,718   0 2,185
Stock-based compensation expense 590,983   306   590,990 610
Other segment expenses [1] 10,767   (4,803)   8,578 (9,063)
Cost of revenue [1] 23,777   21,056   47,188 45,191
Research and development [1] 22,774   24,263   44,816 52,980
Sales and marketing [1] 49,549   42,801   96,264 84,803
General and administrative [1] 16,899   16,101   33,599 33,405
Net loss $ (575,651) $ 17,139 $ (12,926) $ (26,464) $ (558,512) $ (39,390)
[1] Other segment expenses include other income, net, employer taxes related to stock-based compensation expense, amortization of intangible assets and provision for (benefit from) income taxes.
v3.25.2
Segment Information - Summary of Long-lived Assets by Geographical Location (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 19,290 $ 18,794
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 18,168 18,128
Outside the United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 1,122 $ 666