KLAVIYO, INC., 10-K filed on 2/10/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 02, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-41806    
Entity Registrant Name Klaviyo, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 46-0989964    
Entity Address, Address Line One 125 Summer Street    
Entity Address, Address Line Two 6th Floor    
Entity Address, City or Town Boston    
Entity Address, State or Province MA    
Entity Address, Postal Zip Code 02110    
City Area Code 617    
Local Phone Number 213-1788    
Title of 12(b) Security Series A common stock, par value $0.001 per share    
Trading Symbol KVYO    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 4.8
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement relating to its 2026 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.    
Amendment Flag false    
Entity Central Index Key 0001835830    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2025    
Series A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   145,497,436  
Series B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   159,276,688  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location Boston, Massachusetts
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 1,064,875 $ 881,473
Restricted cash 738 375
Accounts receivable, net of allowance for doubtful accounts 60,714 43,095
Deferred contract acquisition costs, current 29,634 20,544
Prepaid expenses and other current assets 50,115 34,262
Total current assets 1,206,076 979,749
Property and equipment, net 80,341 48,200
Right-of-use assets, net 101,126 42,917
Deferred contract acquisition costs, non-current 47,769 32,527
Restricted cash, non-current 0 739
Prepaid marketing expense 132,849 153,346
Other non-current assets 12,443 15,830
Total assets 1,580,604 1,273,308
Current liabilities:    
Accounts payable 29,072 14,579
Accrued expenses 125,159 99,828
Lease liabilities, current 24,757 20,989
Deferred revenue 103,245 64,497
Total current liabilities 282,233 199,893
Lease liabilities, non-current 95,991 32,449
Other non-current liabilities 5,820 6,979
Total liabilities 384,044 239,321
Stockholders’ Equity    
Preferred stock: $0.001 par value; 100,000,000 and 100,000,000 shares authorized; 0 and 0 shares issued; 0 and 0 shares outstanding at December 31, 2025 and 2024, respectively. 0 0
Additional paid-in capital 2,073,209 1,878,899
Accumulated deficit (876,953) (845,185)
Total stockholders’ equity 1,196,560 1,033,987
Total liabilities and stockholders’ equity 1,580,604 1,273,308
Series A Common Stock    
Stockholders’ Equity    
Common stock 144 89
Series B Common Stock    
Stockholders’ Equity    
Common stock $ 160 $ 184
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Series A Common Stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 3,000,000,000 3,000,000,000
Common stock, shares issued (in shares) 144,262,443 88,956,301
Common stock, outstanding (in shares) 144,262,443 88,956,301
Series B Common Stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 350,000,000 350,000,000
Common stock, shares issued (in shares) 159,899,668 183,801,332
Common stock, outstanding (in shares) 159,899,668 183,801,332
v3.25.4
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 1,234,019 $ 937,464 $ 698,099
Cost of revenue 312,523 221,305 177,888
Gross profit 921,496 716,159 520,211
Operating expenses:      
Selling and marketing 506,241 404,209 394,369
Research and development 291,209 238,459 262,177
General and administrative 191,804 157,569 194,287
Total operating expenses 989,254 800,237 850,833
Operating loss (67,758) (84,078) (330,622)
Other income (expense):      
Other (expense) income (2,162) 816 (470)
Interest income 39,402 39,582 24,051
Total other income 37,240 40,398 23,581
Loss before income taxes (30,518) (43,680) (307,041)
Provision for income taxes 1,250 2,462 1,192
Net loss (31,768) (46,142) (308,233)
Comprehensive loss $ (31,768) $ (46,142) $ (308,233)
Net loss per share attributable to Series A and Series B common stockholders, basic (in dollars per share) $ (0.11) $ (0.17) $ (1.27)
Net loss per share attributable to Series A and Series B common stockholders, diluted (in dollars per share) $ (0.11) $ (0.17) $ (1.27)
Weighted average common shares outstanding, basic (in shares) 290,896,895 266,336,826 242,889,272
Weighted average common shares outstanding, diluted (in shares) 290,896,895 266,336,826 242,889,272
v3.25.4
Consolidated Statements of Changes in Redeemable Common Stock and Stockholders' Equity (Deficit) - USD ($)
$ in Thousands
Total
Series A Common Stock
Series B Common Stock
Conversion of Redeemable Common Stock
Conversion of Common Stock Upon Shareholder Election and Vesting of Certain Equity Awards
Conversion of Common Stock Upon Exercise of Greenshoe Option
Common Stock
Series A Common Stock
Common Stock
Series B Common Stock
Common Stock
Conversion of Redeemable Common Stock
Series B Common Stock
Common Stock
Conversion of Common Stock Upon Shareholder Election and Vesting of Certain Equity Awards
Series A Common Stock
Common Stock
Conversion of Common Stock Upon Shareholder Election and Vesting of Certain Equity Awards
Series B Common Stock
Common Stock
Conversion of Common Stock Upon Exercise of Greenshoe Option
Series A Common Stock
Common Stock
Conversion of Common Stock Upon Exercise of Greenshoe Option
Series B Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Conversion of Redeemable Common Stock
Accumulated Deficit
Accumulated Deficit
Conversion of Redeemable Common Stock
Beginning balance (in shares) at Dec. 31, 2022 64,046,223                                
Beginning balance at Dec. 31, 2022 $ 1,531,853                                
Redeemable Common Stock                                  
Accretion of redeemable common stock to redemption value $ 399,685                                
Reclassification of redeemable common stock to Series B common stock (in shares) (64,046,223)                                
Reclassification of redeemable common stock to Series B common stock $ (1,931,538)                                
Ending balance (in shares) at Dec. 31, 2023 0                                
Ending balance at Dec. 31, 2023 $ 0                                
Beginning balance (in shares) at Dec. 31, 2022             0 170,855,313                  
Beginning balance at Dec. 31, 2022 (1,036,183)           $ 0 $ 171           $ 1,249,065   $ (2,285,419)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Issuance of common stock upon exercise of common stock options (in shares)               2,419,308                  
Issuance of common stock upon exercise of common stock options 4,144             $ 3           4,141      
Issuance of common stock upon vesting of restricted stock units (in shares)             27,250 7,179,136                  
Issuance of common stock upon vesting of restricted stock units 0             $ 7           (7)      
Accretion of redeemable common stock to redemption value (399,685)                         (399,685)      
Issuance of common stock upon exercise of collaboration agreement warrants (in shares)               6,051,285                  
Issuance of common stock upon exercise of collaboration agreement warrants 62             $ 6           56      
Vested warrants related to the collaboration agreement 142,326                         142,326      
Stock-based compensation expense 342,148                         342,148      
Vesting of restricted common stock (in shares)               26,795                  
Vesting of restricted common stock 75                         75      
Issuance of Common Stock in Connection with Initial Public Offering Net of Underwriters' Discounts, Commissions and Offering Costs (in shares)             11,507,693                    
Issuance of Common Stock in Connection with Initial Public Offering Net of Underwriters' Discounts, Commissions and Offering Costs 320,096           $ 12             320,084      
Shares withheld for tax withholding upon vesting of restricted stock units (in shares)             (11,874) (2,735,286)                  
Shares withheld for tax withholding upon vesting of restricted stock units (81,511)           $ (1) $ (2)           (81,508)      
Conversion of common stock (in shares)                 64,046,223 27,548,447 (27,548,447) 1,770,318 (1,770,318)        
Reclassification of redeemable common stock to Series B common stock       $ 1,931,538         $ 64           $ 136,865   $ 1,794,609
Conversion of common stock         $ 0 $ 0       $ 28 $ (28) $ 2 $ (2)        
Net loss (308,233)                             (308,233)  
Ending balance (in shares) at Dec. 31, 2023             40,841,834 218,524,009                  
Ending balance at Dec. 31, 2023 $ 914,777           $ 41 $ 219           1,713,560   (799,043)  
Ending balance (in shares) at Dec. 31, 2024 0                                
Ending balance at Dec. 31, 2024 $ 0                                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Issuance of common stock upon exercise of common stock options (in shares)               6,567,334                  
Issuance of common stock upon exercise of common stock options 9,712             $ 7           9,705      
Issuance of common stock upon vesting of restricted stock units (in shares)             1,663,016 4,176,480                  
Issuance of common stock upon vesting of restricted stock units 0           $ 2 $ 4           (6)      
Issuance of common stock upon exercise of collaboration agreement warrants (in shares)               1,377,528                  
Issuance of common stock upon exercise of collaboration agreement warrants 14             $ 1           13      
Vested warrants related to the collaboration agreement 32,399                         32,399      
Stock-based compensation expense 138,767                         138,767      
Issuance of common stock under the employee stock purchase plan (in shares)             387,773                    
Issuance of common stock under the employee stock purchase plan 8,125                         8,125      
Shares withheld for tax withholding upon vesting of restricted stock units (in shares)             (139,996) (640,345)                  
Shares withheld for tax withholding upon vesting of restricted stock units (23,665)             $ (1)           (23,664)      
Conversion of common stock (in shares)                   46,203,674 (46,203,674)            
Conversion of common stock         0         $ 46 $ (46)            
Net loss (46,142)                             (46,142)  
Ending balance (in shares) at Dec. 31, 2024   88,956,301 183,801,332       88,956,301 183,801,332                  
Ending balance at Dec. 31, 2024 $ 1,033,987           $ 89 $ 184           1,878,899   (845,185)  
Ending balance (in shares) at Dec. 31, 2025 0                                
Ending balance at Dec. 31, 2025 $ 0                                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Issuance of common stock upon exercise of common stock options (in shares) 22,938,436             22,938,436                  
Issuance of common stock upon exercise of common stock options $ 2,203             $ 23           2,180      
Issuance of common stock upon vesting of restricted stock units (in shares)             4,535,044 2,627,219                  
Issuance of common stock upon vesting of restricted stock units 0           $ 4 $ 3           (7)      
Issuance of common stock upon exercise of collaboration agreement warrants (in shares)               1,377,528                  
Issuance of common stock upon exercise of collaboration agreement warrants 15             $ 1           14      
Vested warrants related to the collaboration agreement 32,400                         32,400      
Stock-based compensation expense 166,447                         166,447      
Issuance of common stock under the employee stock purchase plan (in shares)             462,681                    
Issuance of common stock under the employee stock purchase plan 11,251                         11,251      
Shares withheld for tax withholding upon vesting of restricted stock units (in shares)             (291,690) (244,740)                  
Shares withheld for tax withholding upon vesting of restricted stock units (17,975)                         (17,975)      
Conversion of common stock (in shares)                   50,600,107 (50,600,107)            
Reclassification of redeemable common stock to Series B common stock       1,800,000                          
Conversion of common stock       $ 1,900,000 $ 0         $ 51 $ (51)       $ 136,900    
Net loss (31,768)                             (31,768)  
Ending balance (in shares) at Dec. 31, 2025   144,262,443 159,899,668       144,262,443 159,899,668                  
Ending balance at Dec. 31, 2025 $ 1,196,560           $ 144 $ 160           $ 2,073,209   $ (876,953)  
v3.25.4
Consolidated Statements of Changes in Redeemable Common Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Series A Common Stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Series B Common Stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
v3.25.4
Consolidated Statements of Cash Flow - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net loss $ (31,768) $ (46,142) $ (308,233)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization expense 18,598 17,717 13,651
Non-cash operating lease costs 24,754 12,682 12,997
Amortization of deferred contract acquisition costs 29,949 19,752 15,764
Amortization of prepaid marketing expense 52,897 52,897 52,897
Gain on derecognition of asset retirement obligation (588) 0 0
Loss on disposal of property and equipment 776 235 6
Bad debt expense 2,044 741 524
Stock-based compensation expense 162,031 135,212 340,799
Deferred income tax (3,062) 559 (3,229)
Other 0 10 118
Changes in operating assets and liabilities:      
Accounts receivable (19,663) (20,761) (12,877)
Deferred contract acquisition costs (54,281) (34,448) (26,941)
Prepaid expenses, prepaid taxes, and other assets (6,796) (17,296) (2,375)
Accounts payable 12,034 113 4,505
Accrued expenses 17,534 36,169 26,666
Deferred revenue 38,741 24,397 14,991
Operating lease liabilities (23,846) (16,722) (15,197)
Other non-current liabilities (1,347) 840 5,305
Net cash provided by operating activities 218,007 165,955 119,371
Investing activities      
Acquisition of property and equipment (9,485) (5,921) (3,653)
Capitalization of software development costs (18,980) (11,305) (5,705)
Acquisition of business (2,031) 0 0
Net cash used in investing activities (30,496) (17,226) (9,358)
Financing activities      
Proceeds from exercise of common stock options 2,203 9,741 4,216
Cash paid for finance leases 0 (19) (21)
Proceeds from exercise of warrants 15 14 62
Proceeds from issuance of common stock, net of issuance costs 0 0 0
Proceeds from issuance of common stock in initial public offering, net of issuance costs 0 0 320,096
Employee taxes paid related to net share settlement of stock-based awards (17,975) (23,665) (81,625)
Proceeds from employee stock purchase plan 11,272 8,130 0
Net cash (used in) provided by financing activities (4,485) (5,799) 242,728
Net increase in cash, cash equivalents, and restricted cash 183,026 142,930 352,741
Cash, cash equivalents, and restricted cash, beginning of period 882,587 739,657 386,916
Cash, cash equivalents, and restricted cash, end of period 1,065,613 882,587 739,657
Supplemental disclosures of cash flow information:      
Cash paid for income taxes, net of refunds 6,536 4,691 283
Non-cash investing and financing activities      
Recognition of prepaid marketing asset 32,400 32,399 142,326
Vesting of restricted common stock 0 0 75
Accretion of common stock subject to redemption 0 0 (399,685)
Unpaid purchases of property and equipment 11,909 2,158 472
Reclassification of redeemable common stock to Series B common stock 0 0 1,931,538
Non-cash acquisition of property and equipment through tenant incentives 8,193 0 0
Capitalization of stock-based compensation expense related to internal-use software $ 4,416 $ 3,555 $ 1,349
v3.25.4
Organization and Business Description
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Description
1. Organization and Business Description
Klaviyo, Inc. (the “Company” or “Klaviyo”) is a technology company that provides a cloud-based, software-as-a-service (“SaaS”) platform that enables consumer-focused businesses to capture, store, analyze, and use their first-party data to create and deliver personalized consumer experiences across digital channels. The Company’s platform combines proprietary data, action, and intelligence layers to unify customer data and support real-time activation across multiple use cases, including marketing, customer service, analytics, and data management.
The Company’s offerings include marketing automation capabilities that allow customers to orchestrate campaigns across multiple channels, including email, text messaging, WhatsApp messaging, and mobile push. The Company also offers customer service solutions, including Customer Agent, Customer Hub and Helpdesk, as well as marketing analytics, and data platform functionality.
The Company generates revenue through the sale of subscriptions that provide customers access to its platform. Subscription plans are tiered based on the number of consumer profiles stored on the Company’s platform and the number of emails, text messages, and WhatsApp messages sent as well as customer tickets and conversations through Klaviyo Service.
The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on September 14, 2012. The Company has several wholly-owned subsidiaries in the United States and international jurisdictions.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”).
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions are eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the allowance for doubtful accounts, determination of revenue recognition under ASC 606, Revenue from Contracts with Customers (“ASC 606”), estimated benefit period of deferred contract acquisition costs, estimated life of prepaid marketing expense, and historical valuation of common stock and stock-based compensation, including fair value of the warrants.
The Company evaluates estimates based on historical and anticipated results, trends, and various other assumptions. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.
Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.
The key measure of segment profit or loss that the CODM uses to make operating decisions, allocate resources and evaluate financial performance is the Company’s consolidated net loss, as reported in the Consolidated Statements of Operations and Comprehensive Loss. Net loss is used to plan and forecast for future periods, design and implement key marketing strategies, expand into new markets, and launch new offerings. Significant expense categories regularly provided to the CODM are those disclosed in the Consolidated Statements of Operations and Comprehensive Loss. There are no other expenses supplemental to those disclosed in these consolidated financial statements that are regularly provided to the CODM.
Information related to the geographical distribution of the Company’s revenues and long-lived assets is disclosed in Note 14. Segment Information and Geographic Data.
Revenue Recognition
The Company derives revenue primarily from subscription fees related to access to its cloud-based SaaS platform. The platform enables customers to store and use first-party consumer data to deliver personalized consumer experiences across multiple digital communication channels and access data-driven marketing, customer service, analytics, and data platform functionality.
Contractual subscriptions for customers generally auto-renew on either a monthly, quarterly, or annual basis, and customers may elect not to renew by providing at least five days’ advance notice for contracts on a monthly billing cycle and thirty days’ advance notice for contracts with any other billing cycles. Customers do not have the right to take possession of the Company’s software. Subscription pricing is determined based on a customer’s profile count and messaging quantities and is considered fixed based on a tiered pricing structure. Variable consideration in the Company’s contracts is not material but represents the overage charges incurred by customers who exceed their allotments.
The Company recognizes revenue under the core principle that depicts the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company evaluates its revenue arrangements under the five-step model as follows: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when or as the Company satisfies a performance obligation.
Typically, the SaaS subscription contracts consist of a single performance obligation, and revenue is recognized over time as the performance obligation is satisfied. The performance obligation is deemed to be satisfied ratably as the customer simultaneously receives and consumes the services that the Company performs over the contract term. Due to the term of a majority of the Company’s contracts being less than one year, the Company has determined a significant financing component does not exist.
The Company accounts for individual performance obligations separately if they have been determined to be distinct (i.e., the services are distinct if identifiable from other items in the arrangement and the customer can benefit from them on their own or with other resources that are readily available). The transaction price is allocated to the distinct performance
obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscriptions.
Sales and value-added taxes collected from customers and remitted to government authorities are excluded from revenue. The Company incurs fees based on transaction volume and dollar amounts processed through its credit card processor, which are classified as general and administrative expense. Through the Company’s credit card processor, all receivables related to credit cards are collected within three business days.
Cost of Revenue
Cost of revenue consists of costs related to supporting and hosting the Company’s software platform and channel offering for paying customers. These costs primarily include cloud-based infrastructure costs, outbound communication sending costs, employee-related costs including payroll, benefits, bonuses, and stock-based compensation expense related to the customer support team, amortization of capitalized internal-use software development costs, and allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology.
Deferred Revenue
Deferred revenue primarily consists of billings in advance of revenue recognition from subscription services and is recognized as the revenue recognition criteria are met.
The Company generally bills its subscription customers in advance of their subscription term. Revenue that is expected to be recognized during future periods is recorded as deferred revenue.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs incurred in connection with acquiring a customer contract and consist primarily of sales commissions and the associated payroll taxes. The Company expects to benefit from these costs for more than one year as the Company primarily pays sales commissions on the initial contract, and there are no commensurate commissions paid on contract renewals.
Deferred contract acquisition costs are amortized on a basis consistent with the transfer of the services to which the asset relates. This results in capitalized costs being recognized on a ratable basis over the estimated period of future benefit ranging from 18 months to 60 months. The Company estimates the future period of benefit considering the size of the customer, the current contract term, the impact of estimated customer renewal terms, and the estimated life of the technology solution underlying the contracts. The Company periodically reviews the carrying amount of capitalized costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit.
As of December 31, 2025 and 2024, deferred contract acquisition costs expected to be recognized within one year were $29.6 million and $20.5 million, respectively, and deferred contract acquisition costs expected to be recognized beyond one year were $47.8 million and $32.5 million, respectively.
Shopify Collaboration Agreement
On July 28, 2022, the Company entered into a collaboration agreement with Shopify Inc. and certain of its affiliates (collectively, “Shopify”) to form a strategic relationship for the purposes of creating greater interoperability between the Klaviyo and Shopify platforms and forming a strategic product, distribution, and marketing relationship. Shopify became a related party upon execution of this agreement. The collaboration agreement has a term of 7 years and automatically renews for successive one-year periods unless the Company or Shopify provides written notice of non-renewal. In connection with the collaboration agreement, the Company entered into 3 separate agreements including a revenue sharing agreement, common stock warrant agreement, and stock purchase agreement.
Under the revenue sharing agreement, the Company will make payments to Shopify in exchange for marketing services received under the collaboration agreement, which are comprised of payments for the Shopify Core Revenue Share and payments for the Shopify Plus Integration Fee. These payments are calculated as follows:
•Shopify Core Revenue Share: For all revenue generated through the use of the Company’s email and text messaging and WhatsApp messaging marketing applications by Shopify merchants designated as “Shopify Core Merchants” in respect of leads attributed to Shopify, the Company is obligated to pay Shopify a percentage of such revenues or the amounts owed to Shopify under the terms of Shopify’s standard partnership agreements applicable to all Shopify partners, which is 15% of any revenues exceeding a $1 million threshold.
•Shopify Plus Integration Fee: On a monthly basis, the Company is required to pay Shopify a fee (“Shopify Plus Integration Fee” or “Integration Fee”), subject to an annual increase at Shopify’s election (up to a maximum increase of not more than a percentage calculated through a formula provided in the revenue sharing agreement), with respect to each Shopify Plus Merchant where all of the following circumstances apply: (a) the Shopify Plus Merchant was on Shopify’s Plus program at the end of the relevant month; (b) one or more of the Shopify Plus Merchant’s covered stores has the Company’s application installed at both the beginning and at the end of the relevant month; and (c) the Company’s application received a webhook request and/or made any Application Programming Interface calls against one or more of the Shopify Plus Merchant’s covered stores in the relevant month (i.e., the Company’s application is integrated with the Shopify platform and data is flowing between them).
The Company determined that Shopify is a vendor and not a customer, as the collaboration agreement is a services contract under which the Company is receiving marketing services from Shopify in exchange for payments under the revenue sharing agreement. The revenue sharing agreement is a mechanism for Shopify to be compensated for the customer acquisition and marketing services Shopify is providing to the Company. Shopify is not a reseller or distributor of the Company’s platform, nor does Shopify provide any services on the Company’s behalf. During the years ended December 31, 2025, 2024, and 2023, the Company incurred $33.2 million, $27.4 million, and $21.9 million, respectively, related to fees paid under the revenue sharing agreement. As of December 31, 2025 and 2024, the Company had $3.0 million and $2.6 million, respectively, in accrued expenses owed to Shopify for fees payable under the revenue sharing agreement. As of December 31, 2025 and 2024, the Company had $3.0 million and $2.5 million, respectively, in accounts payable owed to Shopify for fees payable under the revenue sharing agreement.
As consideration for the collaboration agreement, the Company also issued warrants that allow Shopify to purchase up to 15,743,174 shares of common stock at a price of $0.01 per share, of which 25% of the warrants vested on the grant date on July 28, 2022, and the remaining 75% of the warrants vest quarterly over the remaining 5 year period. The aggregate grant date fair value of the warrants was $370.3 million and is being capitalized to prepaid marketing expense as the warrants vest. The prepaid marketing expense asset is amortized into selling and marketing expense on a straight-line basis over the expected benefit period, which is the 7 year term of the collaboration agreement.
Pursuant to the common stock warrant agreement, upon the Company’s initial public offering (“IPO”) in September 2023, an additional 25% of the total number of warrants were accelerated, and the remaining unvested portion vests quarterly over the remaining term. Specifically, the vesting associated with 3,935,793 of the outstanding warrants was accelerated, resulting in an increase to prepaid marketing expense of $92.6 million. During the years ended December 31, 2025 and 2024, the Company capitalized prepaid marketing expense of $32.4 million and $32.4 million, respectively, related to vested warrants. For the years ended December 31, 2025, 2024 and 2023, the Company recorded marketing expense of $52.9 million, $52.9 million and $52.9 million, respectively, in the Consolidated Statements of Operations and Comprehensive Loss as a component of selling and marketing expense related to the amortization of the prepaid marketing expense. As of December 31, 2025 and 2024, the Company’s prepaid marketing expense was $132.8 million and $153.3 million, respectively. As of December 31, 2025, there was $189.5 million of unrecognized marketing expense
related to the warrants that will be recognized over 3.6 years. Refer to Note 11. Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit) for further discussion of the warrants.
On June 24, 2022, the Company entered into a stock purchase agreement with Shopify. On the closing date of July 28, 2022, Shopify purchased 2,951,846 shares of common stock for $33.88 per share. The stock purchase agreement gives Shopify the right to purchase 15,743,174 additional shares of common stock for $88.93 per share (the “Investment Option”). The common stock and Investment Option were determined to be freestanding financial instruments purchased at fair value and were accounted for separately from the collaboration agreement, revenue sharing agreement, and common stock warrant agreement. Refer to Note 11. Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit) for further discussion of the common stock purchase and Investment Option.
Research and Development Costs
Research and development costs are expensed as incurred, unless they qualify as capitalized internal-use software development costs. Research and development costs consist primarily of personnel-related expenses associated with the Company’s research and development staff, including payroll, benefits, bonuses, and stock-based compensation.
Advertising Costs
Advertising costs are expensed as incurred. During the years ended December 31, 2025, 2024 and 2023, the Company incurred advertising expenses, which are included within selling and marketing expenses in the Consolidated Statements of Operations and Comprehensive Loss, in the amount of $51.8 million, $45.9 million, and $41.6 million, respectively.
Stock-Based Compensation
The Company recognizes stock-based compensation on awards granted under stock compensation plans, which are described in more detail in Note 12. Stock-Based Compensation.
The Company measures stock-based compensation awards, including stock options and restricted stock units (“RSUs”), based on the estimated fair value of the awards on the date of grant. Stock-based compensation expense is recorded for awards issued to employees and non-employees at fair value with a corresponding increase in additional paid-in capital. For awards with service-based vesting conditions only, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. Forfeitures are recognized when they occur.
RSUs granted under the Company’s 2015 Stock Incentive Plan (the “2015 Plan”) are subject to both service-based and performance-based vesting conditions, whereby the performance condition is satisfied upon occurrence of a liquidity event. Upon the effectiveness of the Company’s registration statement on Form S-1 filed with the SEC in connection with its IPO in September 2023, the performance condition was satisfied and cumulative compensation cost was recognized using the accelerated attribution method. Compensation costs continue to be recognized under this method as the RSUs vest over the remaining service period. Generally, 2015 Plan awards vest or are exercisable into shares of Series B common stock and are immediately reclassified to shares of Series A common stock based upon the employee’s conversion election made at the time of the Company’s IPO. The fair value of each RSU grant is calculated based on the estimated fair value of the Company’s common stock on the date of grant, or, if modified, the date of modification.
RSUs granted under the Company’s 2023 Stock Option and Incentive Plan (the “2023 Plan”) are for shares of Series A common stock and are subject to service-based vesting conditions only. Compensation costs related to these awards are recognized using the straight-line method over the service period of the award. The fair value of each RSU grant is calculated based on the fair value of the Company’s Series A common stock on the date of grant, or, if modified, the date of modification.
Rights granted to employees to purchase shares of Series A common stock under the Company’s 2023 Employee Stock Purchase Plan (the “ESPP”) are subject to service-based vesting conditions only. Compensation costs related to the ESPP are recognized using the straight-line method over the service period of the award. The fair value of the estimated shares of Series A common stock to be purchased is computed as the sum of (a) 15% purchase discount off the grant date quoted trading price of the Company’s Series A common stock and (b) the fair value of the look-back feature of the Company’s Series A common stock on the grant date, which consists of a call option on 85% of a share of Series A common stock and a put option on 15% of a share of Series A common stock.
Redeemable Common Stock

Redeemable common stock represents shares of the Company’s common stock that were redeemable at the option of the investor after a specified date. The initial carrying amount of redeemable common stock is equal to the respective issuance date fair value of the common stock subject to redemption, less issuance costs. The carrying amount was adjusted to equal the redemption value, which was equal to the fair value of a single share of common stock at the end of each reporting period. The carrying amount was subject to a floor equal to the initial carrying amount. The resulting changes in the redemption value were recorded with corresponding adjustments against retained earnings, if available, additional paid-in capital or accumulated deficit. Redeemable common stock was originally classified outside of permanent equity on the Consolidated Balance Sheets as the redemption option was outside of the Company’s control. As the redemption feature applicable to certain shares of the Company’s common stock was terminated upon the Company’s IPO, all shares of the Company’s redeemable common stock converted into 64,046,223 shares of Series B common stock upon the effectiveness of the Company’s registration statement on Form S-1 filed with the SEC on September 19, 2023. Refer to Note 11. Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit) for further discussion.
Income Taxes
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which utilizes the asset and liability method for the financial accounting and reporting of income taxes. Under this method, deferred income taxes are recognized for the expected future tax consequences of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. The amount of any future tax benefit associated with deferred tax assets is reduced by a valuation allowance when there is uncertainty that those tax benefits will be realized.
The Company accounts for uncertain tax positions using a more-likely-than-not recognition threshold in accordance with ASC 740. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. Interest and penalties related to uncertain tax positions are included as a component of income tax expense.
As of December 31, 2025 and 2024, the liability for income taxes associated with uncertain tax positions was $1.3 million and $1.3 million, respectively.
Accounts Receivable
Accounts receivable are shown net of an allowance for doubtful accounts of $2.3 million and $1.0 million as of December 31, 2025 and 2024, respectively. The allowance for doubtful accounts is established to represent the Company’s best estimate of the net realizable value of the outstanding amount of receivables that it will be unable to collect. The development of the Company’s allowance for doubtful accounts is based on a review of factors such as the customer’s payment history, historical loss patterns, the general economic climate, age, and past due status of invoices. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, the Company’s estimates of the recoverability of receivables could be further adjusted.
The allowance for doubtful accounts consists of the following activity (in thousands):

Year Ended December 31,
202520242023
Balance at beginning of the period$1,030 $1,479 $2,253 
Provisions for uncollectible accounts, net of recoveries2,578 349 28 
Write offs(1,352)(798)(802)
Balance at end of the period$2,256 $1,030 $1,479 
Accounts receivable is shown inclusive of unbilled accounts receivable of $3.3 million and $1.7 million as of December 31, 2025 and 2024, respectively. Unbilled accounts receivable is made up entirely of overages incurred by customers who have exceeded their subscription allotments as of the period end but are not yet due for their period end billing.
Cash, Cash Equivalents, and Restricted Cash
The Company considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2025 and 2024, the Company had cash equivalents of $325.9 million and $278.2 million, respectively, in money market funds.
As of December 31, 2025 and 2024, the Company had a current restricted cash balance of $0.7 million and $0.4 million, respectively. As of December 31, 2024, the Company had a non-current restricted cash balance of $0.7 million. The Company had no non-current restricted cash as of December 31, 2025. Restricted cash at December 31, 2025 and 2024 related to the Company’s required collateral to fund payroll and credit card obligations in its Australian entity, as well as collateral required to be held as a result of the Company’s office lease in Australia. Restricted cash is included in current assets for obligations that expire within one year and is included in non-current assets for obligations that expire more than one year from the balance sheet date.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flow (in thousands):
As of,
December 31, 2025December 31, 2024
Cash and cash equivalents$1,064,875 $881,473 
Restricted cash, current
738 375 
Restricted cash, non-current
— 739 
Total cash, cash equivalents, and restricted cash$1,065,613 $882,587 
As of December 31, 2025, $150.0 million of the $1.1 billion cash and cash equivalents detailed above was held in a high yield notice deposit account requiring 31 days’ notice for withdrawal.
Concentrations of Credit Risk, Significant Customers, and Vendors
Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash, restricted cash, and accounts receivable.
The Company maintains its cash and restricted cash at accredited financial institutions. Bank accounts in the United States are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2025 and
2024, the Company’s primary operating accounts significantly exceeded federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
Credit risk with respect to accounts receivable is dispersed due to the Company’s large number of customers. The Company routinely assesses the creditworthiness of its customers. The Company does not require collateral. The Company maintains an allowance for potentially uncollectible accounts receivable. Accounts receivable is stated at the amount management expects to collect from outstanding balances. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable.
Significant concentrations of credit risk exist when a customer represents 10% or more of accounts receivable. As of December 31, 2025 and 2024, no individual customer accounted for 10% or more of accounts receivable. Additionally, there were no customers that represented 10% or more of the Company’s revenue for the years ended December 31, 2025, 2024, and 2023.
The Company had certain vendors who individually represented 10% or more of the Company’s total vendor expenditures. For the year ended December 31, 2025, three vendors represented 18%, 14%, and 13% of total vendor expenditures. For the year ended December 31, 2024, three vendors represented 17%, 16%, and 12% of total vendor expenditures. For the year ended December 31, 2023, three vendors represented 19%, 14%, and 12% of total vendor expenditures.
Property and Equipment
Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of disposal. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. The estimated useful lives of the Company’s property and equipment are as follows:
Office equipment5 years
Computer equipment3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsLesser of lease term or useful life
Asset retirement cost
Lesser of lease term or 5 years
Asset Retirement Obligations (“ARO”)
As part of the build out of the Company’s headquarters in Boston, Massachusetts, the Company built an internal staircase connecting multiple floors. This staircase required the removal of ground space to connect the floors. The lease agreement required the Company to incur the costs required to restore the leased space to its original condition. During fiscal year 2020, on the lease commencement date, the Company established an ARO based on the present value of contractually required estimated future costs to retire long-lived assets at the termination or expiration of the lease and to return the space to its original condition. The asset associated with the ARO is amortized over the lease term or 5 years to operating expense, and the ARO is accreted to the end of lease obligation value over the same term. On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters and, under the terms of the amendment, the Company was relieved of the obligation to return the space to its original condition. During the year ended December 31, 2025, the Company derecognized the ARO. The ARO activity is described in more detail in Note 5. Property and Equipment, Net.
Capitalized Internal-Use Software
The Company capitalizes qualifying costs incurred during the application development stage in connection with the development of internal-use software, which are included on the Consolidated Balance Sheets as a component of property and equipment, net. Costs related to preliminary project activities and post-implementation stages of software development are expensed as incurred.
Costs capitalized as internal-use software development costs include eligible salaries, stock-based compensation, and other compensation-related costs of employees incurred in developing new features and enhancements when the costs will result in additional functionality. Capitalized internal-use software development costs are amortized on a straight-line basis over their estimated useful life of 3 years. Computer software development costs that do not qualify for capitalization are expensed as incurred.
Capitalization begins when the preliminary project stage is complete, management authorizes and commits to the funding of the software project with appropriate authority, it is probable the project will be completed, the software will be used to perform the functions intended, and certain functional and quality standards have been met.
Leases
The Company determines whether an arrangement contains a lease at inception. At the commencement date, the Company will perform the classification tests to determine whether its leases are operating or financing and recognize the related lease liability and right-of-use (“ROU”) asset. The Company, as the lessee, recognizes on the Consolidated Balance Sheets a liability to make lease payments and an ROU asset representing the right to use the underlying asset for both finance and operating leases with a lease term longer than twelve months. Lease liabilities and their corresponding ROU assets are recognized based on the present value of unpaid lease payments over the expected lease term.
The Company has elected the following practical expedients: (1) not to separate lease and non-lease components for all asset classes and (2) not to recognize leases with a term of 12 months or less at commencement on the Consolidated Balance Sheets for all asset classes. If there is a change in the Company’s assessment of the lease term and, as a result, the remaining lease term extends more than 12 months from the end of the previously determined lease term, the lease no longer meets the definition of a short-term lease and is accounted for as either an operating or finance lease and recognized on the Consolidated Balance Sheets.
The Company leases office space and office equipment under non-cancelable operating leases ranging from 1 to 8 years. Certain leases include options to extend the leases for up to 10 years. These options will be included in the lease term when they are reasonably certain to be exercised. The Company’s leases generally do not include options to terminate the leases or to purchase the underlying asset.
The Company’s leases are primarily fixed payments. Certain of the Company’s leases include variable lease payments, generally related to the lessor’s operating costs associated with the underlying asset, which are expensed as incurred. The Company’s leases generally do not contain residual value guarantees.
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) to calculate the present value of future minimum lease payments, which is the estimated rate the Company would be required to pay for fully collateralized borrowing over the period similar to lease terms. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
Foreign Currency Translation
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar (“USD”). In certain instances, the Company enters into transactions that are denominated in a currency other than the USD. At the date that such transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured and recorded in USD using the exchange rate in effect at that date. At each balance sheet date, recorded monetary balances denominated in a currency other than the USD are adjusted to USD using the exchange rate at the balance sheet date, with gains or losses recognized in other, net in the Consolidated Statements of Operations and Comprehensive Loss. Foreign currency translation gains and losses were immaterial for the periods presented. The Company recognized a $1.6 million foreign currency transaction loss and an immaterial foreign currency transaction loss for the years ended December 31, 2025 and 2023, respectively. Foreign currency transaction gains were $1.0 million for the year ended December 31, 2024.
Fair Value Measurements

Certain assets and liabilities are carried at fair value in accordance with ASC 820, Fair Value Measurement (“ASC 820”). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities
•Level 2 – Observable inputs (other than level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Certain non-financial assets, such as intangible assets, right of use assets, and property and equipment, are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. Such fair value measures are considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. The Company has not recorded any impairment charges during any of the periods presented.
Loss Per Share
In accordance with FASB ASC 260, Earnings Per Share, the basic net loss per share attributable to Series A and Series B common stockholders is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the applicable period.
Diluted net loss per share attributable to Series A and Series B common stockholders is computed in the same manner as basic net loss per share, as the inclusion of all potentially dilutive securities outstanding would be antidilutive. See Note 13. Loss Per Share for further information.
Impairment of Long-Lived Assets

The Company periodically evaluates all long-lived assets or asset groups for impairment. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to the estimated undiscounted future net cash flows expected to be generated by the asset or the asset group. If the carrying amount of an asset or asset group exceeds its estimated undiscounted future net cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset. There was no impairment recorded during the years ended December 31, 2025, 2024, and 2023.
Recent Accounting Pronouncements

The Company has implemented all applicable accounting pronouncements that are in effect.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 on its consolidated financial statements in the current period on a prospective basis. See Note 9. Income Taxes for the related disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. The new guidance requires additional disclosure related to the disaggregation of income statement expense categories. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The new guidance amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The new guidance is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. ASU 2025-11 is effective for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its interim condensed consolidated financial statements and related disclosures.
There are no other new accounting pronouncements that have been issued that would have a material impact on the Company's financial position or results of operations.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3. Revenue Recognition
Disaggregation of Revenue
The Company provides disaggregation of revenue based on geographic region in Note 14. Segment Information and Geographic Data.
Deferred Revenue
The change in deferred revenue reflects billings during the period for which the performance obligation was not satisfied prior to the end of the period, partially offset by revenues recognized during the period. The following table summarizes the changes in the balance of deferred revenue during the periods presented (in thousands):

Year Ended December 31,
20252024
Balance at beginning of the period$64,497 $40,100 
Plus: Billings during the period1,272,767 961,861 
Less: Revenue recognized during the period(1,234,019)(937,464)
Balance at end of the period$103,245 $64,497 
For the years ended December 31, 2025 and 2024, revenue recognized from amounts included in deferred revenue at the beginning of the period was $64.5 million and $40.1 million, respectively.

Remaining Performance Obligations
Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, including deferred revenue. As of December 31, 2025, the Company’s remaining performance obligations were $253.7 million, of which $235.9 million is expected to be recognized within the next twelve months and $17.8 million is expected to be recognized during a period greater than twelve months.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4. Fair Value Measurements

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands):

As of December 31, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$325,904 $— $— $325,904 
Total$325,904 $— $— $325,904 

As of December 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$278,235 $— $— $278,235 
Total$278,235 $— $— $278,235 
As of December 31, 2025 and 2024, certain of the Company’s cash equivalents were held in money market funds. The Company’s investments in money market funds are classified within Level 1 of the fair value hierarchy as they are valued using quoted market prices in active markets.
As of December 31, 2025 and 2024, the Company’s carrying amounts of financial instruments, including cash, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate their fair value due to their short-term maturities.
v3.25.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net 5. Property and Equipment, Net
Property and equipment consist of the following (in thousands):
As of,
December 31, 2025December 31, 2024
Capitalized internal-use software$49,430 $26,698 
Office equipment7,630 4,841 
Computer equipment11,385 7,027 
Furniture and fixtures14,144 8,052 
Leasehold improvements50,488 46,062 
Construction-in-progress9,109 124 
Asset retirement cost— 643 
Total property and equipment142,186 93,447 
Less accumulated depreciation and amortization(61,845)(45,247)
Total property and equipment, net$80,341 $48,200 
In the years ended December 31, 2025, 2024, and 2023, depreciation and amortization expense related to property and equipment was approximately $18.6 million, $17.7 million, and $13.7 million, respectively. On January 31, 2025, the Company amended the lease agreement for its corporate headquarters located in Boston, Massachusetts which, among other things, extended the term of the lease to March 2033. Under the Company’s accounting policy, the useful life of leasehold improvements is the lesser of the lease term and the useful life of the asset. As such, the extension of the lease represents a change in estimate of the useful life of the leasehold improvements within the corporate headquarters. The Company accounted for this change in the useful lives as a change in accounting estimate under ASC 250 Accounting Changes and Error Corrections, which were recorded prospectively upon execution of the lease amendment. This change in estimate resulted in a reduction of $5.7 million in depreciation and amortization expense for the year ended December 31, 2025, respectively, and an immaterial impact on basic and diluted net loss per share attributable to Series A and Series B common stockholders.
During the years ended December 31, 2025, 2024 and 2023, the Company capitalized $23.2 million, $14.9 million, and $7.0 million of internal-use software development costs, respectively. Of the $23.2 million internal-use software development costs that were capitalized during the year ended December 31, 2025, $5.2 million relates to software that is not yet in service. The Company recorded amortization expense associated with its capitalized internal-use software development costs of $9.5 million, $4.6 million, and $1.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amortization expense is included in cost of revenue in the Consolidated Statements of Operations and Comprehensive Loss.
During fiscal year 2020, on the commencement date of the lease for the Company’s Boston corporate headquarters, the Company established an ARO based on the present value of contractually required estimated future costs to remove long-lived assets at the termination or expiration of the lease and to return the space to its original condition. As of December 31, 2024, the ARO was included in other non-current liabilities on the Consolidated Balance Sheets. On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters and, under the terms of the amendment, the Company was relieved of the obligation to return the space to its original condition. During the year ended December 31, 2025, the Company derecognized the ARO and recorded an immaterial gain for the difference between the Company’s estimate of the ARO and the carrying value of the asset retirement cost, which is included in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
ARO activity is as follows (in thousands):
Year Ended December 31,
20252024
Beginning balance$802 $761 
Additions— — 
Accretion— 41 
Derecognition
(802)— 
Ending balance$— $802 
v3.25.4
Accrued Expenses
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Accrued Expenses
6. Accrued Expenses
The following table presents components of accrued expenses (in thousands):

As of,
December 31, 2025December 31, 2024
Accrued compensation and employee related costs$65,230 $53,652 
Accrued sabbatical4,458 3,233 
Accrued value added tax948 1,000 
Other accrued taxes8,691 7,055 
Accrued cost of revenue22,609 18,216 
Accrued professional services3,742 3,475 
Accrued marketing4,597 8,739 
Accrued occupancy costs
9,262 1,415 
Other accrued expenses5,622 3,043 
Total accrued expenses$125,159 $99,828 
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
7. Commitments and Contingencies
Contractual Obligations and Commitments
The Company has material long-term non-cancellable contractual obligations outstanding with marketing vendors and service providers. Future minimum payments under the Company’s non-cancellable purchase commitments as of December 31, 2025 are presented in the table below (in thousands):
Year Ending December 31,Contractual Commitments
2026$214,952 
2027231,136 
2028146,496 
2029132,789 
2030203,865 
Total Contractual Commitments:$929,238 
Legal Matters
From time to time, the Company may become involved in legal proceedings or be subject to claims arising in the course of its business, including but not limited to claims brought by its customers in connection with commercial disputes and litigation arising from employee and ex-employee related matters. The Company is not presently subject to any pending or threatened litigation, individually or taken together, for which it is reasonably possible to have a material effect on its consolidated financial position or results of operations.
Guarantees and Indemnification Obligations
In the ordinary course of business, the Company enters into agreements with its customers that include commercial provisions with respect to licensing, infringement, indemnification, and other common provisions. In the ordinary course of business, the Company does not agree to indemnification obligations under its customer contracts, except for intellectual property infringement claims related to the Company’s services. Based on historical experience and information known as of December 31, 2025 and 2024, the Company had not incurred any costs for guarantees or indemnities.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
8. Leases

The components of lease expense are as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease cost$24,754$12,682$12,618
Short-term lease cost1,650178630
Financing lease cost—1921
Total lease cost$26,404$12,879$13,269

Supplemental balance sheet information related to the Company’s operating leases is as follows (in thousands):
As of,
December 31, 2025December 31, 2024
Operating lease ROU assets$101,126$42,917
Operating lease liabilities, current24,75720,989
Operating lease liabilities, non-current95,99132,449
Total lease liabilities$120,748$53,438

Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

Year Ended December 31,
202520242023
Cash paid for operating lease liabilities, net of tenant incentives received $15,653$16,722$15,197
ROU assets recognized for new leases and amendments (non-cash)$74,936$17,039$1,299
Other information related to leases is as follows:

As of,
December 31, 2025December 31, 2024
Weighted average remaining lease term 6.6 years2.8 years
Weighted average discount rate6.71 %5.13 %
Future undiscounted annual cash flows for the Company’s operating leases as of December 31, 2025 are as follows (in thousands):
Year Ending December 31,
Operating Leases
2026$25,508
202719,860
202820,863
202920,769
203021,054
Thereafter42,720
Total future undiscounted lease payments150,774
Less imputed interest(30,026)
Total lease liabilities$120,748
The table above does not include options to extend lease terms that are not reasonably certain of being exercised or leases signed but not yet commenced as of December 31, 2025.

On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters. The amendment (i) modified the lease term and payment terms for the existing leased premises and (ii) expanded the leased premises under the lease. The newly leased premises had phased lease commencement dates ranging from February 2025 to December 2025. The lease term for the existing and newly leased premises ends in March 2033.
Leases
8. Leases

The components of lease expense are as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease cost$24,754$12,682$12,618
Short-term lease cost1,650178630
Financing lease cost—1921
Total lease cost$26,404$12,879$13,269

Supplemental balance sheet information related to the Company’s operating leases is as follows (in thousands):
As of,
December 31, 2025December 31, 2024
Operating lease ROU assets$101,126$42,917
Operating lease liabilities, current24,75720,989
Operating lease liabilities, non-current95,99132,449
Total lease liabilities$120,748$53,438

Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

Year Ended December 31,
202520242023
Cash paid for operating lease liabilities, net of tenant incentives received $15,653$16,722$15,197
ROU assets recognized for new leases and amendments (non-cash)$74,936$17,039$1,299
Other information related to leases is as follows:

As of,
December 31, 2025December 31, 2024
Weighted average remaining lease term 6.6 years2.8 years
Weighted average discount rate6.71 %5.13 %
Future undiscounted annual cash flows for the Company’s operating leases as of December 31, 2025 are as follows (in thousands):
Year Ending December 31,
Operating Leases
2026$25,508
202719,860
202820,863
202920,769
203021,054
Thereafter42,720
Total future undiscounted lease payments150,774
Less imputed interest(30,026)
Total lease liabilities$120,748
The table above does not include options to extend lease terms that are not reasonably certain of being exercised or leases signed but not yet commenced as of December 31, 2025.

On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters. The amendment (i) modified the lease term and payment terms for the existing leased premises and (ii) expanded the leased premises under the lease. The newly leased premises had phased lease commencement dates ranging from February 2025 to December 2025. The lease term for the existing and newly leased premises ends in March 2033.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
9. Income Taxes
The domestic and foreign components of loss before income taxes are as follows (in thousands):

Year Ended December 31,
202520242023
United States$(42,129)$(54,059)$(312,759)
Foreign11,611 10,379 5,718 
Loss before income taxes$(30,518)$(43,680)$(307,041)

The provision for income taxes contained the following components (in thousands):

Year Ended December 31,
202520242023
Current:
Federal$(277)$750 $— 
State237 211 (26)
Foreign4,352 942 4,652 
4,312 1,903 4,626 
Deferred:
Federal(141)— — 
State(47)— — 
Foreign(2,874)559 (3,434)
(3,062)559 (3,434)
Provision for income taxes$1,250 $2,462 $1,192 
The Company’s effective tax rates for the years ended December 31, 2025, 2024, and 2023 were less than the U.S. federal statutory income tax rate of 21.0%, primarily due to valuation allowance on the U.S. federal and state deferred tax assets. Effective January 1, 2025, the Company adopted ASU 2023-09, Improvements to Income Tax Disclosures, on a prospective basis. As a result of this adoption, the Company is providing the expanded quantitative rate reconciliation disclosures required by ASU 2023-09 for the year ended December 31, 2025 on a prospective basis.
Below is a tabular reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (in thousands, except percentages):
Year Ended December 31, 2025
Amount ($)
Percent
U.S. federal taxes at statutory rate$(6,412)21.0 %
State and local income tax, net of federal (national) income tax effect(1)
190 (0.6)
Foreign tax effects
United Kingdom
Stock Based Compensation(701)2.3 
Other128 (0.4)
Australia
Stock Based Compensation(312)1.0 
Other60 (0.2)
Other foreign jurisdictions(3)— 
Total(828)2.7 
Effect of changes in tax laws or rates enacted in the current period
Effect of cross-border tax laws
Tax credits
Federal R&D Credit(15,562)51.0 
Total(15,562)51.0 
Changes in valuation allowances195,140 (639.1)
Nontaxable or nondeductible items
Meals and Entertainment1,993 (6.5)
Stock Based Compensation(170,121)557.2 
Prepaid marketing expense
(2,935)9.6 
Other(215)0.7 
Total(171,278)561.0 
Changes in unrecognized tax benefits.
Total
$1,250 (4.1)%
(1) State taxes in Texas and Ohio make up the majority of tax effect in this category.

Below is a reconciliation of the statutory federal income tax expense and the Company's total income tax expense for the years ended December 31, 2024 and 2023:

Year Ended December 31,
20242023
U.S. federal taxes at statutory rate21.0 %21.0 %
State taxes, net of federal benefit7.6 4.3 
Federal research and development credits48.3 3.8 
State research and development credits20.2 0.9 
Permanent items(2.4)(0.4)
Stock-based compensation57.3 1.6 
Foreign rate differential0.1 — 
Non-deductible officers compensation(32.2)(2.3)
Prepaid marketing expense
3.2 3.6 
Other(2.7)— 
Change in valuation allowance126.0 (32.9)
Total(5.6)%(0.4)%
Income taxes paid for the year ended December 31, 2024 were $4.7 million. As required by ASU 2023-09, the table below presents the amount of income taxes paid (in thousands, net of refunds received) for the year ended December 31, 2025, disaggregated by federal, state, and foreign jurisdictions.

Year Ended December 31,
2025
Federal$939 
State578 
Foreign
UK
1,819 
AUS3,160 
Other
40 
Total
$6,536 

Deferred income taxes reflect the impact of carryforwards and temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The carryforwards and temporary differences that give rise to a significant portion of the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
Year Ended December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards$245,586 $76,714 
Research and development credits87,255 63,894 
Stock-based compensation17,060 25,544 
Lease liability29,558 13,146 
Capitalized research and development154,483 105,266 
Other10,622 7,582 
Total deferred tax assets544,564 292,146 
Deferred tax liabilities:
Depreciation
(2,365)(2,362)
Deferred commissions(13,659)(9,818)
Amortization(8,163)(4,579)
ROU asset(24,763)(10,604)
Prepaid marketing expense(32,417)(37,112)
Total deferred tax liabilities(81,367)(64,475)
Valuation allowance(457,787)(225,135)
Net deferred tax assets
$5,410 $2,536 
As of December 31, 2025 and 2024, the Company has federal net operating loss (“NOL”) carryforwards of $1.0 billion and $304.1 million, respectively, which can be carried forward indefinitely, and state net operating loss carryforwards of $618.5 million and $232.6 million, respectively, which expire at various dates beginning in 2027. As of December 31, 2025 and 2024, the Company has federal credit carryforwards of $59.5 million and $44.0 million, respectively, and state credit carryforwards of $35.1 million and $25.2 million, respectively, which are available to reduce future tax liabilities. If not utilized, the federal research and development credit will begin to expire in 2039 and the state research and development credit will begin to expire in 2026.
The Company may not be subject to an annual limitation on its NOL and research and development credit attributes as of December 31, 2025, but subsequent ownership changes may affect the limitation in future years.
The net change in the total valuation allowance for the year ended December 31, 2025 was an increase of $232.7 million, primarily as a result of the increase in research and development capitalization, federal research and development credits, and the generation of net operating losses. The net changes in the total valuation allowance for the year ended December 31, 2024 was an increase of $55.1 million, primarily as a result of the increase in research and development capitalization and federal research and development credits offset by the utilization of net operating losses.
Uncertain Tax Positions
A reconciliation of the gross unrecognized tax benefits consists of the following (in thousands):
Year Ended December 31,
2025
2024
2023
Unrecognized tax benefits, beginning balance
$1,334 $— $— 
Gross increases for tax positions taken in prior years
11 1,334 — 
Unrecognized tax benefits, ending balance
$1,345 $1,334 $— 
The unrecognized tax benefits as of December 31, 2025, if recognized, would not affect the effective income tax rate due to the valuation allowance that currently offsets the deferred tax assets.
The Company had no interest and penalties accrued related to uncertain tax positions as of December 31, 2025, 2024, and 2023.
The Company files income tax returns in the United States and in foreign jurisdictions. All periods since inception are subject to examination in most jurisdictions.
On July 4, 2025, tax reform legislation included in the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States. The OBBBA includes significant tax reforms, including the reinstatement of immediate expensing for domestic research and development expenditures, the option to claim 100% accelerated depreciation deductions on qualified property, and modifications in international tax provisions. The change to U.S. tax law enacted by the OBBBA resulted in an immaterial effect on the income tax provision due to the Company’s valuation allowance and has been accounted for in the current period.
v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company maintains a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Employees can designate the investment of their 401(k) accounts into several mutual funds. The Company does not allow investment in its common stock through the 401(k) plan. During the years ended December 31, 2025, 2024, and 2023, the Company made contributions to the plan of $11.3 million, $11.2 million, and $7.4 million, respectively.
The Company contributes to defined contribution savings plans for its employees in the United Kingdom and Australia who satisfy certain eligibility requirements. The plans allow each participant from the United Kingdom and Australia to defer a percentage of their compensation, and the Company contributes an additional 5% and 12% of wages for employees
in the United Kingdom and Australia, respectively, on a monthly basis. The Company made contributions to the plans of $4.3 million, $2.9 million, and $1.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.
v3.25.4
Redeemable Common Stock, Common Stock, and Stockholders' Equity (Deficit)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Redeemable Common Stock, Common Stock, and Stockholders' Equity (Deficit) Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit)
Initial Public Offering
On September 22, 2023, the Company completed its IPO of 19,200,000 shares of its Series A common stock at a price to the public of $30.00 per share. The Company sold 11,507,693 of such shares and certain existing stockholders sold an aggregate of 7,692,307 of such shares. The Company received net proceeds from the IPO of approximately $320.1 million, after deducting approximately $17.7 million in underwriting discounts and commissions, and $7.4 million in offering-related expenses. In connection with the IPO, all shares of the Company’s redeemable common stock automatically converted into 64,046,223 shares of Series B common stock. In connection with and immediately subsequent to the IPO, 21,233,074 shares of Series B common stock were converted to shares of Series A common stock. On October 19, 2023, the underwriters for the IPO exercised their option to purchase additional shares granted in connection with the IPO, with respect to 2,764,066 shares of Series A common stock of a possible 2,880,000 shares. The Company received no proceeds from this transaction, as the option was an option to purchase additional shares of Series A common stock from certain existing stockholders.
All RSUs granted to employees prior to the IPO vested upon the satisfaction of both a service condition and a liquidity event condition. These RSUs with both a service condition and liquidity event condition are collectively referred to as “Double-Trigger Awards” and are described in more detail within Note 12. Stock-Based Compensation.

Redeemable Common Stock

The Company issued 64,046,223 shares of common stock at various dates in 2019, 2020, and 2021 to select investors that were subject to redemption at fair value of common stock at the investor’s option after November 6, 2029. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within control of the Company require classification of the associated instrument outside of permanent equity.
During the year ended December 31, 2021, the Company entered into the 2021 Stock Purchase agreement. The Company issued and sold 10,365,017 shares of common stock to investors at a price of $33.38 per share, for an aggregate purchase price and gross proceeds of $346.0 million. At the time of the sale, 3,025,625 of the total shares issued allowed investors to acquire additional substantive rights including financial information rights, restrictive covenants, secondary refusal rights, right of co-sale, and right of redemption after November 6, 2029, at fair value. These shares were classified outside of permanent equity. The remaining 7,339,392 shares were classified in permanent equity as they did not contain the right of redemption after November 6, 2029.

Prior to the IPO, the Company determined that the redeemable shares were probable of becoming redeemable. In accordance with ASC 480-10-S99, the Company elected to recognize changes in redemption value immediately as they occur. The per-share redemption value is equal to the fair market value of a single share of the Company’s common stock subject to a floor of the initial carrying value.
Immediately prior to the Company’s IPO in September 2023, the redeemable common stock was accreted to the IPO issuance price of $30.00 per share. Upon the IPO, the redemption right of these shares was terminated and all shares of the Company’s redeemable common stock automatically converted into 64,046,223 shares of Series B common stock. This transaction resulted in a reclassification of $1.9 billion in redeemable common stock to stockholder’s equity including an increase to additional paid-in capital of $136.9 million and Accumulated Deficit of $1.8 billion to reverse accretion recorded to these accounts.
Common Stock

Immediately following the effectiveness of the registration statement relating to the Company’s IPO in September 2023, the Company filed its Amended and Restated Certificate of Incorporation, which authorized a total of 3,000,000,000 shares of Series A common stock, 350,000,000 shares of Series B common stock, and 100,000,000 shares of undesignated preferred stock. All shares of common stock then outstanding were reclassified as Series B common stock. The rights of the holders of Series A common stock and Series B common stock are identical, except with respect to voting and conversion. Each share of Series 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 Series B common stock is entitled to ten votes per share and is convertible into one share of Series A common stock at any time. Shares of the Company’s Series B common stock will also automatically convert into shares of Series A common stock upon certain transfers and other events. Upon the seventh anniversary of the Company’s IPO, all outstanding shares of Series B common stock will automatically convert into shares of Series A common stock.

Preferred Stock

The Company has authorized 100,000,000 shares of preferred stock with a par value of $0.001 per share. As of December 31, 2025, there were no shares of preferred stock issued or outstanding.
Common Stock Warrants
On July 28, 2022, the Company granted warrants to purchase up to 15,743,174 shares of Series B common stock in connection with the collaboration agreement and strategic partnership with Shopify as compensation for marketing services. 25% of the shares subject to the warrants vested on the grant date, and the remaining 75% of the shares subject to the warrants vest quarterly in equal amounts until July 28, 2027. On September 22, 2023, upon the Company’s IPO, the vesting of an additional 25% of the total number of warrants was accelerated, and the remaining unvested portion vests quarterly over the remaining vesting term. Vesting will cease, and any unvested portion of the warrants will be cancelled, in the event of a material breach or early termination of the collaboration agreement by Shopify. The exercise price is $0.01 per share, and the term of the warrants is 10 years. These common stock warrants are included as a component of additional paid-in capital within the Consolidated Balance Sheets upon vesting. The Company valued the warrants at the grant date using the Black-Scholes option pricing model with the following assumptions: fair value of common stock, a dividend yield of zero, contractual terms of 10 years, volatility of 55.00%, and a risk-free rate of 2.85%.
The following table summarizes the warrants activity during the year ended December 31, 2025:
Number of Shares
Weighted Average Exercise Price
Weighted Average Remaining Life (years)
Warrants outstanding at December 31, 2024
3,788,204 $0.01 7.58
Granted—— — 
Exercised(1,377,528)0.01 7.10
Cancelled—— — 
Warrants outstanding at December 31, 2025
2,410,676 $0.01 6.58
During the years ended December 31, 2025, 2024, and 2023, 1,377,528, 1,377,528, and 6,051,285 warrants vested, respectively. The Company has no vested but not exercised warrants outstanding as of December 31, 2025.
Restricted Stock
In 2019, the Company permitted the purchase of 142,908 shares of restricted stock prior to vesting by an employee of the Company. These shares are restricted and subject to repurchase by the Company until the conditions for vesting are met. Upon termination of employment of the restricted stockholder, the Company has the right to repurchase, at the original purchase price, any unvested restricted shares. Accordingly, the Company recorded the proceeds from the issuance of restricted stock as a liability given the implicit repurchase feature. The Company reclassified an immaterial amount of restricted stock liability to stockholders’ deficit upon vesting of restricted shares during the year ended December 31, 2023. During the year ended December 31, 2023, the aggregate fair value of restricted stock that vested was $0.7 million. All restricted stock became fully vested during the year ended December 31, 2023.
Stock Purchase and Investment Option
On July 28, 2022, the Company entered into a stock purchase agreement in connection with the collaboration agreement and strategic partnership with Shopify. Under the stock purchase agreement, the Company issued and sold 2,951,846 shares of common stock to Shopify at a price of $33.88 per share. The stock purchase agreement also granted Shopify an Investment Option, which allows Shopify to purchase an additional 15,743,174 shares of common stock at a purchase price of $88.93 per share. The Company allocated the common stock and Investment Option based on the relative fair value of each instrument. The Investment Option is exercisable at any time at Shopify’s option until July 28, 2030. As of December 31, 2025, the Investment Option has not been exercised.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
On September 1, 2015, the Company’s board of directors (the “Board”) adopted the 2015 Plan. The Board or, at its sole discretion, a committee of the Board, is responsible for the administration of the 2015 Plan. As of December 31, 2025, outstanding awards under the 2015 Plan include stock options and RSUs. Generally, 2015 Plan awards vest or are exercisable into shares of Series B common stock and are immediately reclassified to shares of Series A common stock based upon the employee's conversion election made at the time of the IPO. All equity grants subsequent to the IPO are made pursuant to the 2023 Plan, which was approved by the Board effective as of September 18, 2023. The Board or, at its sole discretion, a committee of the Board, is responsible for the administration of the 2023 Plan. As of December 31, 2025, the Company’s authorized common stock includes 74,700,704 shares of Series A common stock reserved for issuance of equity awards under the 2023 Plan, of which 55,563,432 shares are available for future grants.
The 2015 Plan provides for the grant of various types of stock-based compensation awards including, but not limited to, RSUs, incentive stock options (“ISOs”), non-qualified stock options (“NSOs,” referred to collectively with ISOs as “Options”) and restricted stock awards (“RSAs”) to directors, consultants, employees, and officers of the Company. ISOs may only be granted to employees, and the exercise price thereon cannot be less than the fair value of the Company’s common stock on the date of grant or less than 110% of the fair value in the case of employees holding 10% or more of the voting stock of the Company. The exercise price on NSOs must be at least equal to the fair value of the Company’s common stock on the date of grant. The Company has historically granted RSUs, ISOs, NSOs, and RSAs.
The 2023 Plan provides for the grants of various types of stock-based compensation awards including, but not limited to, RSUs, ISOs, NSOs, and RSAs. During the years ended December 31, 2025, 2024 and 2023, the Company solely granted RSUs as further described below.
Stock Options
Options generally vest over 4 years with the first 25% of the award vesting upon the 12-month anniversary of the vesting commencement date and the remaining 75% vesting monthly over the following 3 years. Grants of Options shall not be exercisable after expiration of 10 years from the date of grant or such shorter period specified in the associated award agreement. Options may not be transferable except by will or by the laws of descent and distribution and domestic relations orders. The 2015 Plan does not allow for the early exercise of Options. The Company did not grant any Options during the years ended December 31, 2025, 2024 and 2023.

Option activity for the year ended December 31, 2025 is as follows (in thousands, except per share data):

Number of OptionsWeighted Average Exercise Price
(Per Share)		Weighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Outstanding at January 1, 2025
25,164,415$0.29 1.21$1,030,511 
Exercised(22,938,436)0.10
Forfeited and expired——
Outstanding at December 31, 2025
2,225,979$2.27 3.25$67,215 
Exercisable at December 31, 2025
2,225,979$2.27 3.39$67,215 
The total intrinsic value of Options exercised during the years ended December 31, 2025, 2024 and 2023 amounted to $797.8 million, $177.7 million and $54.7 million, respectively.

Restricted Stock Units

During the years ended December 31, 2025, 2024 and 2023, the Company granted RSUs to employees under the 2015 Plan and 2023 Plan. In general, RSUs granted under the 2015 Plan vest upon the satisfaction of both a service-based vesting condition and a performance-based vesting condition. Generally, the service-based vesting condition requires the grantee to remain an eligible participant, as that term is defined in the 2015 Plan, for a period of 4 years. Generally, RSUs vest quarterly over the entire 4-year period or vest 25% after 1 year, with the remainder vesting quarterly over the following 3 years. The performance-based vesting condition was satisfied upon the occurrence of the IPO. In general, RSUs granted after the IPO under the 2023 Plan vest upon the satisfaction of service-based vesting conditions only. These service-based vesting conditions are consistent with those under the 2015 Plan detailed above.

Restricted stock unit activity for the year ended December 31, 2025 is as follows:
Number of UnitsWeighted Average Grant Date
Fair Value
Unvested and outstanding at January 1, 2025
17,421,450 $28.33 
Granted8,059,711 32.82 
Vested(7,162,263)28.39 
Forfeited(3,768,443)29.20 
Unvested and outstanding at December 31, 2025
14,550,455 $30.56 
The fair value of the RSUs that vested during the years ended December 31, 2025, 2024 and 2023 was $252.3 million, $158.1 million and $214.7 million, respectively.
Employee Stock Purchase Plan
On August 24, 2023, the Board adopted the ESPP pursuant to which eligible employees may contribute up to 15% of their base compensation to purchase shares of the Company’s Series A common stock at a price equal to 85% of the lower of (1) the fair market value of a share of the Company’s Series A common stock at the beginning of the offering period and (2) the fair market value of a share of the Company’s Series A common stock on the purchase date. The ESPP provides for 12-month offering periods beginning January 1 and July 1 of each year, or the next trading date thereafter. Each offering period consists of two six-month purchase periods. As of December 31, 2025, the Company has 10,670,780 shares of Series A common stock available for issuance pursuant to purchase rights granted to the Company’s eligible employees under the ESPP. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2024, by the least of 6,200,000 shares of the Company’s Series A common stock, 1% of the outstanding number of shares of the Company’s Series A common stock and Series B common stock on the immediately preceding December 31, or such lesser number of shares as determined by the administrator of the ESPP.

The fair value of employee options granted under the ESPP is based on a 15% purchase discount off the grant date quoted trading price of the Company’s Series A common stock and is estimated using the Black-Scholes option-pricing model with the following assumptions:
Year Ended December 31,
20252024
Risk-free rate
3.96% 5.33%
4.79% - 5.33%
Expected term
0.5 - 1.0 years
0.5 - 1.0 years
Volatility
45.90% - 60.32%
45.90% - 64.12%
Expected dividends— — 
The interest rate is based on the U.S. Treasury bond rate at the date of grant with a maturity approximately equal to the expected term. The expected term is based on the term of the offering period. The expected volatility for the common stock is based on the average of the Company’s historical volatility over the expected term of the award. The assumed dividend yield is based upon the Company’s expectation of not paying dividends in the foreseeable future. The fair value of the common stock is the closing price of the stock on the date the offering period starts.
The Company recognized stock-based compensation expense related to the ESPP of $5.8 million and $4.3 million during the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, $2.6 million of unrecognized stock-based compensation expense related to the ESPP is expected to be recognized on a straight-line basis over the subsequent 6 months. The weighted average grant date fair value of ESPP awards granted during the years ended December 31, 2025 and 2024 was $10.63 and $9.28 per share, respectively.
During the year ended December 31, 2025, the Company issued 462,681 shares of Series A common stock under the ESPP.

Modifications
During the year ended December 31, 2025, the Company modified one employee’s stock-based awards to accommodate their employment transition by changing the timing of the service-based vesting condition of 121,969 RSUs. This resulted in incremental stock-based compensation expense of $1.4 million during the year ended December 31, 2025.
During the year ended December 31, 2025, the Company provided nineteen terminated employees with accelerated vesting on the service-based vesting conditions of 42,781 RSUs. These modifications resulted in incremental stock-based compensation of $1.1 million during the year ended December 31, 2025.
During the year ended December 31, 2023, the Company extended the expiration dates of four employees’ Options. The extension of the expiration date impacted 1,004,667 granted Options, resulting in incremental stock-based compensation expense of $0.8 million during the year ended December 31, 2023.
During the year ended December 31, 2023, the Company accelerated the vesting start dates of two employees’ RSUs. The modification impacted 167,500 previously granted RSUs that were Double-Trigger awards in which the liquidity-based vesting condition was not considered probable at the date of modification. As the liquidity-based vesting condition was met upon the IPO, the impact of the modified RSUs is included in the total stock-based compensation recognized during the year ended December 31, 2023.
On April 10, 2023, the Company approved an amendment to the vesting schedule of 4,250,947 RSUs governed by the 2015 Plan. Specifically, the vesting schedule of these RSUs was amended to align with the Company’s standard four quarterly vesting dates that were established on a prospective basis in June 2022. This modification impacted 657 grantees, and all RSUs that were modified were Double-Trigger awards in which the liquidity-based vesting condition was not considered probable at the date of modification. As the liquidity-based vesting condition was met upon the IPO, the impact of this modification is included in the total stock-based compensation recognized during the year ended December 31, 2023 and is based on the fair value of the award on the date of modification.
On March 15, 2023, the Company announced a reduction in workforce that resulted in the termination of approximately 8% of the Company’s full-time workforce (130 employees). As part of the reduction in workforce, the Company modified 608,698 previously granted Options and 64,301 previously granted RSUs. During the year ended December 31, 2023, the Company incurred an incremental stock-based compensation expense of $0.6 million related to the modification of Options. All RSUs that were modified were Double-Trigger awards in which the liquidity-based vesting condition was not considered probable at the date of modification. As the liquidity-based vesting condition was met upon the IPO, the impact of the modified RSUs is included in the total stock-based compensation recognized during the year ended December 31, 2023 and is based on the fair value of the award on the date of modification.

Stock-Based Compensation Expense

During the years ended December 31, 2025, 2024, and 2023, the Company capitalized $4.4 million, $3.6 million, and $1.3 million of stock-based compensation expense related to services performed on capitalized internal-use software, respectively.
Stock-based compensation included in the Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands):

Year Ended December 31,
202520242023
Cost of revenue$7,891 $8,917 $24,973 
Selling and marketing49,725 40,907 107,954 
Research and development68,178 50,693 120,184 
General and administrative36,237 34,695 87,688 
Stock-based compensation, net of amounts capitalized162,031 135,212 340,799 
Capitalized stock-based compensation expense4,416 3,555 1,349 
Total stock-based compensation expense$166,447 $138,767 $342,148 
As of December 31, 2025, total unrecognized compensation cost related to unvested RSUs was $366.5 million, which will be recognized over a weighted-average remaining period of 2.6 years.
v3.25.4
Loss Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Loss Per Share Loss Per Share
Basic net loss per share attributable to Series A and Series B common stockholders is computed by dividing the net loss by the number of weighted-average outstanding common shares. Diluted net loss per share attributable to Series A and Series B common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result, and is calculated using the treasury stock method. The Company considers its warrants, Investment Option, RSUs, Options, and shares to be issued under the ESPP as potential common equivalents, but excluded them from the computation of diluted earnings per share attributable to common stockholders in the periods presented, as their effect was antidilutive during the years ended December 31, 2025, 2024 and 2023.
The rights, including the liquidation and dividend rights, of the holders of Series A and Series B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each series of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Series A and Series B common stock on both individual and combined basis.
The following table presents the calculation of basic and diluted net loss per share attributable to Series A and Series B common stockholders for the periods presented (in thousands, except share and per share data):

Year Ended December 31,
202520242023
Net loss per share attributable to Series A and Series B common stockholders, basic and diluted:
Numerator:
Net loss$(31,768)$(46,142)$(308,233)
Denominator:
Weighted-average shares - basic and diluted290,896,895 266,336,826 242,889,272 
Net loss per share attributable to Series A and Series B common stockholders, basic and diluted
$(0.11)$(0.17)$(1.27)
The following table summarizes the potential common shares excluded from the computation of diluted net income (loss) per share:
Year Ended December 31,
202520242023
Warrants outstanding2,410,676 3,788,204 5,165,732 
Investment Option15,743,174 15,743,174 15,743,174 
RSUs outstanding14,550,455 17,421,450 14,690,417 
Options outstanding2,225,979 25,164,415 31,734,725 
ESPP
245,840 258,033 — 
Total35,176,124 62,375,276 67,334,048 
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
In December 2025, the Company entered into a contract with Wyze Labs, Inc., who is a related party to a member of our Board of Directors. During the year ended December 31, 2025, we have recognized an immaterial amount of revenue within the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2025, there is an
outstanding accounts receivable balance of $220.4 thousand and deferred revenue balance of $202.2 thousand within the Consolidated Balance Sheets and total remaining performance obligation under the contract of $392.6 thousand.
In May 2025, the Company purchased services from Jellyfish, who is a related party to a member of our Board of Directors. As of December 31, 2025, we purchased services in the aggregate of approximately $212.5 thousand, of which $148.0 thousand was included within prepaid expenses on the Consolidated Balance Sheets and an immaterial amount was included within operating expenses on the Consolidated Statements of Operations and Comprehensive Loss.
v3.25.4
Segment Information and Geographic Data
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information and Geographic Data Segment Information and Geographic Data
As described in the Company’s Summary of Significant Accounting Policies, the Company operates as one operating segment. Revenue and long-lived assets by geographic region are as follows:
Disaggregation of Revenue
Revenue by geographic area, based on the location of the Company’s customers, is as follows (in thousands):
Year Ended December 31,
202520242023
Americas:
United States$741,101 $584,844 $443,471 
Other Americas (1)
59,636 47,461 38,180 
APAC (1)(2)
127,179 95,920 72,797 
EMEA (1)(3)
United Kingdom
123,609 90,593 63,424 
Other EMEA (4)
182,494 118,646 80,227 
Total Revenue$1,234,019 $937,464 $698,099 
(1) Other than the United States, no other individual country accounted for 10% or more of total revenue for any of the periods presented.
(2) Asia-Pacific
(3) Europe, the Middle East and Africa
(4) Other than the United Kingdom, no other individual country accounted for 10% or more of total revenue for any of the periods presented.
Disaggregation of Long-lived Assets
Long-lived assets consist of property and equipment and ROU assets. Long-lived assets by geographical region are as follows:
Year Ended December 31,
20252024
Americas
United States$171,140 $71,894 
APAC (1)
1,402 2,207 
EMEA (2)
United Kingdom8,615 17,016 
    Other (3)
310 — 
Total Long-lived Assets
$181,467 $91,117 
(1) Asia-Pacific
(2) Europe, the Middle East and Africa
(3) No other country in this geographic region represented more than 10% of the Company’s long-lived assets for the periods presented
v3.25.4
Restructuring Costs
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
During the years ended December 31, 2025 and 2023, the Company recorded $4.2 million and $7.9 million, respectively, of restructuring costs. The restructuring plans in 2025 and 2023 resulted in a reduction of approximately 3% and 8%, respectively, of Company’s full time workforce. The Company’s restructuring actions were intended to improve operational efficiencies. Restructuring costs consist primarily of employee severance and related benefits as well as stock-based compensation from the modification of terminated employee stock options. There were no restructuring costs incurred during the year ended December 31, 2024.
See Note 12. Stock-Based Compensation for further detail on award modifications due to the 2023 restructuring. Restructuring costs included in the Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue
$— $— $1,138 
Selling and marketing
— — 1,832 
Research and development
4,224 — 3,375 
General and administrative
— — 1,532 
Total
$4,224 $— $7,877 
There were no unpaid restructuring costs as of December 31, 2025 and 2023.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
(b) During the three months ended December 31, 2025, two of the Company’s officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted a written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act for the sale of the Company’s securities as set forth in the table below.
Name
Position
Adoption Date
Earliest Trade Date
Total Shares Subject to Trading Arrangement
Expiration Date
Steve Rowland(1)
Former President
November 7, 2025February 15, 2026
29,845(2)
November 7, 2026
Carmel Galvin
Chief People Officer
November 18, 2025February 17, 2026
102,650(2)
December 15, 2026
______________
(1)Steve Rowland adopted the plan while serving as the Company’s President, prior to his retirement effective as of December 31, 2025.
(2)The actual number of shares of common stock sold pursuant to this plan will be fewer as a result of shares withheld to satisfy tax withholding obligations in connection with the net settlement of equity awards.
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Carmel Galvin [Member]  
Trading Arrangements, by Individual  
Name Carmel Galvin
Title Chief People Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 18, 2025
Expiration Date December 15, 2026
Arrangement Duration 301 days
Aggregate Available 102,650
Steve Rowland [Member]  
Trading Arrangements, by Individual  
Name Steve Rowland(1)
Title Former President
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 7, 2025
Expiration Date November 7, 2026
Arrangement Duration 265 days
Aggregate Available 29,845
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have integrated cybersecurity risk management into our enterprise risk management framework in an effort to identify, assess, and manage risks from cybersecurity threats that could affect our business and information systems. We have implemented a cybersecurity program that is informed by recognized industry standards and frameworks, and incorporates elements of the same, including elements of the National Institute of Standards and Technology Cybersecurity Framework and International Organization for Standardization and the ISO 27001 standards.
Our cybersecurity risk assessment program includes a number of components, including monitoring and reviewing relevant intelligence sources to identify potential cybersecurity risk and threats, penetration testing and vulnerability assessments, and audits and maturity assessments. These processes are conducted periodically by both internal and external resources. For example, independent third-party experts and assessors perform our SOC 2 Type 2 examinations and
penetration testing. Our internal audit function also periodically conducts an assessment of different systems to provide our Audit Committee with information on our cybersecurity risk management processes.
We have implemented a process to address identified risks from cybersecurity threats in which our Security Risk team works in consultation with management and other key stakeholders, as appropriate, to determine the associated risks, potential impact, and the recommended course of action to address those risks. We have an incident response plan that includes escalation procedures for informing management and other key stakeholders. Our process calls for significant incidents and significant cybersecurity risks to be raised to our Audit Committee followed by notification to our board of directors.
We engage third-party service providers in the operation of our business. In an effort to mitigate risks from cybersecurity threats associated with our service providers, we perform security reviews of third-party service providers that are critical to our business or that could have an impact on our financial reporting. These security reviews may include, as appropriate, security questionnaires and vendor due diligence assessments. To monitor and manage third-party risk, we have a dedicated Security Risk team that reviews service providers’ independent attestation reports and third-party certifications.
While we have been the target and victim of cyberattacks by third parties, as of the date of this Annual Report on Form 10-K, we are not aware of any cybersecurity incidents that may have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition. See the section titled “Risk Factors” for further detail on identified risks, including those related to cybersecurity.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have integrated cybersecurity risk management into our enterprise risk management framework in an effort to identify, assess, and manage risks from cybersecurity threats that could affect our business and information systems. We have implemented a cybersecurity program that is informed by recognized industry standards and frameworks, and incorporates elements of the same, including elements of the National Institute of Standards and Technology Cybersecurity Framework and International Organization for Standardization and the ISO 27001 standards.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our board of directors recognizes the importance of our risk management program related to cybersecurity. As provided in the charter of the audit committee of our board of directors (“Audit Committee”), our Audit Committee serves a key function in our board of directors’ oversight of these risks and processes. Our Chief Information Security Officer (“CISO”) provides updates on the cybersecurity risks we face and our processes to address those risks to our Audit Committee on a periodic, but at least quarterly, basis. These updates may include, but are not limited to, reports of identified cybersecurity risks, status of our risk management processes, and updates regarding regulatory requirements and policies.
Our Audit Committee comprises members of our board of directors with extensive experience in the technology sector who have held leadership positions at other publicly listed companies and have expertise in various aspects of our business. Cybersecurity matters are formally raised to our co-Chief Executive Officers, Chief Financial Officer, and Chief Legal Officer through their attendance of Audit Committee meetings. These individuals are also informed of significant events and updates through direct communication from our CISO as needed. We have a process for significant decisions over identified incidents to be escalated to our board of directors for disclosure and oversight.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our CISO leads our cybersecurity initiatives and is primarily responsible for the assessing, managing, and monitoring of the Company’s cybersecurity risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Chief Information Security Officer (“CISO”) provides updates on the cybersecurity risks we face and our processes to address those risks to our Audit Committee on a periodic, but at least quarterly, basis. These updates may include, but are not limited to, reports of identified cybersecurity risks, status of our risk management processes, and updates regarding regulatory requirements and policies.
Cybersecurity Risk Role of Management [Text Block] Our Chief Information Security Officer (“CISO”) provides updates on the cybersecurity risks we face and our processes to address those risks to our Audit Committee on a periodic, but at least quarterly, basis. These updates may include, but are not limited to, reports of identified cybersecurity risks, status of our risk management processes, and updates regarding regulatory requirements and policies.
Our Audit Committee comprises members of our board of directors with extensive experience in the technology sector who have held leadership positions at other publicly listed companies and have expertise in various aspects of our business. Cybersecurity matters are formally raised to our co-Chief Executive Officers, Chief Financial Officer, and Chief Legal Officer through their attendance of Audit Committee meetings. These individuals are also informed of significant events and updates through direct communication from our CISO as needed. We have a process for significant decisions over identified incidents to be escalated to our board of directors for disclosure and oversight.
Our CISO leads our cybersecurity initiatives and is primarily responsible for the assessing, managing, and monitoring of the Company’s cybersecurity risks. Our CISO is a seasoned cybersecurity expert with over 20 years of experience and deep knowledge about our platform. His knowledge of cybersecurity, compliance, and risk assessment has been leveraged to develop our cybersecurity governance and risk strategy. Our CISO oversees our Security Operations and Trust team, as well as our cybersecurity related programs and matters, which are reported on regularly to our Audit Committee.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our CISO leads our cybersecurity initiatives and is primarily responsible for the assessing, managing, and monitoring of the Company’s cybersecurity risks.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO is a seasoned cybersecurity expert with over 20 years of experience and deep knowledge about our platform. His knowledge of cybersecurity, compliance, and risk assessment has been leveraged to develop our cybersecurity governance and risk strategy.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our Chief Information Security Officer (“CISO”) provides updates on the cybersecurity risks we face and our processes to address those risks to our Audit Committee on a periodic, but at least quarterly, basis. These updates may include, but are not limited to, reports of identified cybersecurity risks, status of our risk management processes, and updates regarding regulatory requirements and policies.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”).
Principles of Consolidation
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions are eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the allowance for doubtful accounts, determination of revenue recognition under ASC 606, Revenue from Contracts with Customers (“ASC 606”), estimated benefit period of deferred contract acquisition costs, estimated life of prepaid marketing expense, and historical valuation of common stock and stock-based compensation, including fair value of the warrants.
The Company evaluates estimates based on historical and anticipated results, trends, and various other assumptions. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.
Segment Information
Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.
The key measure of segment profit or loss that the CODM uses to make operating decisions, allocate resources and evaluate financial performance is the Company’s consolidated net loss, as reported in the Consolidated Statements of Operations and Comprehensive Loss. Net loss is used to plan and forecast for future periods, design and implement key marketing strategies, expand into new markets, and launch new offerings. Significant expense categories regularly provided to the CODM are those disclosed in the Consolidated Statements of Operations and Comprehensive Loss. There are no other expenses supplemental to those disclosed in these consolidated financial statements that are regularly provided to the CODM.
Revenue Recognition, Deferred Revenue and Deferred Contract Acquisition Costs
Revenue Recognition
The Company derives revenue primarily from subscription fees related to access to its cloud-based SaaS platform. The platform enables customers to store and use first-party consumer data to deliver personalized consumer experiences across multiple digital communication channels and access data-driven marketing, customer service, analytics, and data platform functionality.
Contractual subscriptions for customers generally auto-renew on either a monthly, quarterly, or annual basis, and customers may elect not to renew by providing at least five days’ advance notice for contracts on a monthly billing cycle and thirty days’ advance notice for contracts with any other billing cycles. Customers do not have the right to take possession of the Company’s software. Subscription pricing is determined based on a customer’s profile count and messaging quantities and is considered fixed based on a tiered pricing structure. Variable consideration in the Company’s contracts is not material but represents the overage charges incurred by customers who exceed their allotments.
The Company recognizes revenue under the core principle that depicts the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company evaluates its revenue arrangements under the five-step model as follows: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when or as the Company satisfies a performance obligation.
Typically, the SaaS subscription contracts consist of a single performance obligation, and revenue is recognized over time as the performance obligation is satisfied. The performance obligation is deemed to be satisfied ratably as the customer simultaneously receives and consumes the services that the Company performs over the contract term. Due to the term of a majority of the Company’s contracts being less than one year, the Company has determined a significant financing component does not exist.
The Company accounts for individual performance obligations separately if they have been determined to be distinct (i.e., the services are distinct if identifiable from other items in the arrangement and the customer can benefit from them on their own or with other resources that are readily available). The transaction price is allocated to the distinct performance
obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscriptions.
Sales and value-added taxes collected from customers and remitted to government authorities are excluded from revenue. The Company incurs fees based on transaction volume and dollar amounts processed through its credit card processor, which are classified as general and administrative expense. Through the Company’s credit card processor, all receivables related to credit cards are collected within three business days.
Deferred Revenue
Deferred revenue primarily consists of billings in advance of revenue recognition from subscription services and is recognized as the revenue recognition criteria are met.
The Company generally bills its subscription customers in advance of their subscription term. Revenue that is expected to be recognized during future periods is recorded as deferred revenue.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs incurred in connection with acquiring a customer contract and consist primarily of sales commissions and the associated payroll taxes. The Company expects to benefit from these costs for more than one year as the Company primarily pays sales commissions on the initial contract, and there are no commensurate commissions paid on contract renewals.
Deferred contract acquisition costs are amortized on a basis consistent with the transfer of the services to which the asset relates. This results in capitalized costs being recognized on a ratable basis over the estimated period of future benefit ranging from 18 months to 60 months. The Company estimates the future period of benefit considering the size of the customer, the current contract term, the impact of estimated customer renewal terms, and the estimated life of the technology solution underlying the contracts. The Company periodically reviews the carrying amount of capitalized costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit.
Cost of Revenue
Cost of Revenue
Cost of revenue consists of costs related to supporting and hosting the Company’s software platform and channel offering for paying customers. These costs primarily include cloud-based infrastructure costs, outbound communication sending costs, employee-related costs including payroll, benefits, bonuses, and stock-based compensation expense related to the customer support team, amortization of capitalized internal-use software development costs, and allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology.
Shopify Collaboration Agreement
Shopify Collaboration Agreement
On July 28, 2022, the Company entered into a collaboration agreement with Shopify Inc. and certain of its affiliates (collectively, “Shopify”) to form a strategic relationship for the purposes of creating greater interoperability between the Klaviyo and Shopify platforms and forming a strategic product, distribution, and marketing relationship. Shopify became a related party upon execution of this agreement. The collaboration agreement has a term of 7 years and automatically renews for successive one-year periods unless the Company or Shopify provides written notice of non-renewal. In connection with the collaboration agreement, the Company entered into 3 separate agreements including a revenue sharing agreement, common stock warrant agreement, and stock purchase agreement.
Under the revenue sharing agreement, the Company will make payments to Shopify in exchange for marketing services received under the collaboration agreement, which are comprised of payments for the Shopify Core Revenue Share and payments for the Shopify Plus Integration Fee. These payments are calculated as follows:
•Shopify Core Revenue Share: For all revenue generated through the use of the Company’s email and text messaging and WhatsApp messaging marketing applications by Shopify merchants designated as “Shopify Core Merchants” in respect of leads attributed to Shopify, the Company is obligated to pay Shopify a percentage of such revenues or the amounts owed to Shopify under the terms of Shopify’s standard partnership agreements applicable to all Shopify partners, which is 15% of any revenues exceeding a $1 million threshold.
•Shopify Plus Integration Fee: On a monthly basis, the Company is required to pay Shopify a fee (“Shopify Plus Integration Fee” or “Integration Fee”), subject to an annual increase at Shopify’s election (up to a maximum increase of not more than a percentage calculated through a formula provided in the revenue sharing agreement), with respect to each Shopify Plus Merchant where all of the following circumstances apply: (a) the Shopify Plus Merchant was on Shopify’s Plus program at the end of the relevant month; (b) one or more of the Shopify Plus Merchant’s covered stores has the Company’s application installed at both the beginning and at the end of the relevant month; and (c) the Company’s application received a webhook request and/or made any Application Programming Interface calls against one or more of the Shopify Plus Merchant’s covered stores in the relevant month (i.e., the Company’s application is integrated with the Shopify platform and data is flowing between them).
The Company determined that Shopify is a vendor and not a customer, as the collaboration agreement is a services contract under which the Company is receiving marketing services from Shopify in exchange for payments under the revenue sharing agreement. The revenue sharing agreement is a mechanism for Shopify to be compensated for the customer acquisition and marketing services Shopify is providing to the Company. Shopify is not a reseller or distributor of the Company’s platform, nor does Shopify provide any services on the Company’s behalf. During the years ended December 31, 2025, 2024, and 2023, the Company incurred $33.2 million, $27.4 million, and $21.9 million, respectively, related to fees paid under the revenue sharing agreement. As of December 31, 2025 and 2024, the Company had $3.0 million and $2.6 million, respectively, in accrued expenses owed to Shopify for fees payable under the revenue sharing agreement. As of December 31, 2025 and 2024, the Company had $3.0 million and $2.5 million, respectively, in accounts payable owed to Shopify for fees payable under the revenue sharing agreement.
As consideration for the collaboration agreement, the Company also issued warrants that allow Shopify to purchase up to 15,743,174 shares of common stock at a price of $0.01 per share, of which 25% of the warrants vested on the grant date on July 28, 2022, and the remaining 75% of the warrants vest quarterly over the remaining 5 year period. The aggregate grant date fair value of the warrants was $370.3 million and is being capitalized to prepaid marketing expense as the warrants vest. The prepaid marketing expense asset is amortized into selling and marketing expense on a straight-line basis over the expected benefit period, which is the 7 year term of the collaboration agreement.
Pursuant to the common stock warrant agreement, upon the Company’s initial public offering (“IPO”) in September 2023, an additional 25% of the total number of warrants were accelerated, and the remaining unvested portion vests quarterly over the remaining term. Specifically, the vesting associated with 3,935,793 of the outstanding warrants was accelerated, resulting in an increase to prepaid marketing expense of $92.6 million. During the years ended December 31, 2025 and 2024, the Company capitalized prepaid marketing expense of $32.4 million and $32.4 million, respectively, related to vested warrants. For the years ended December 31, 2025, 2024 and 2023, the Company recorded marketing expense of $52.9 million, $52.9 million and $52.9 million, respectively, in the Consolidated Statements of Operations and Comprehensive Loss as a component of selling and marketing expense related to the amortization of the prepaid marketing expense. As of December 31, 2025 and 2024, the Company’s prepaid marketing expense was $132.8 million and $153.3 million, respectively. As of December 31, 2025, there was $189.5 million of unrecognized marketing expense
related to the warrants that will be recognized over 3.6 years. Refer to Note 11. Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit) for further discussion of the warrants.
On June 24, 2022, the Company entered into a stock purchase agreement with Shopify. On the closing date of July 28, 2022, Shopify purchased 2,951,846 shares of common stock for $33.88 per share. The stock purchase agreement gives Shopify the right to purchase 15,743,174 additional shares of common stock for $88.93 per share (the “Investment Option”). The common stock and Investment Option were determined to be freestanding financial instruments purchased at fair value and were accounted for separately from the collaboration agreement, revenue sharing agreement, and common stock warrant agreement. Refer to Note 11. Redeemable Common Stock, Common Stock, and Stockholders’ Equity (Deficit) for further discussion of the common stock purchase and Investment Option.
Research and Development Costs
Research and Development Costs
Research and development costs are expensed as incurred, unless they qualify as capitalized internal-use software development costs. Research and development costs consist primarily of personnel-related expenses associated with the Company’s research and development staff, including payroll, benefits, bonuses, and stock-based compensation.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred.
Stock-Based Compensation
Stock-Based Compensation
The Company recognizes stock-based compensation on awards granted under stock compensation plans, which are described in more detail in Note 12. Stock-Based Compensation.
The Company measures stock-based compensation awards, including stock options and restricted stock units (“RSUs”), based on the estimated fair value of the awards on the date of grant. Stock-based compensation expense is recorded for awards issued to employees and non-employees at fair value with a corresponding increase in additional paid-in capital. For awards with service-based vesting conditions only, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. Forfeitures are recognized when they occur.
RSUs granted under the Company’s 2015 Stock Incentive Plan (the “2015 Plan”) are subject to both service-based and performance-based vesting conditions, whereby the performance condition is satisfied upon occurrence of a liquidity event. Upon the effectiveness of the Company’s registration statement on Form S-1 filed with the SEC in connection with its IPO in September 2023, the performance condition was satisfied and cumulative compensation cost was recognized using the accelerated attribution method. Compensation costs continue to be recognized under this method as the RSUs vest over the remaining service period. Generally, 2015 Plan awards vest or are exercisable into shares of Series B common stock and are immediately reclassified to shares of Series A common stock based upon the employee’s conversion election made at the time of the Company’s IPO. The fair value of each RSU grant is calculated based on the estimated fair value of the Company’s common stock on the date of grant, or, if modified, the date of modification.
RSUs granted under the Company’s 2023 Stock Option and Incentive Plan (the “2023 Plan”) are for shares of Series A common stock and are subject to service-based vesting conditions only. Compensation costs related to these awards are recognized using the straight-line method over the service period of the award. The fair value of each RSU grant is calculated based on the fair value of the Company’s Series A common stock on the date of grant, or, if modified, the date of modification.
Rights granted to employees to purchase shares of Series A common stock under the Company’s 2023 Employee Stock Purchase Plan (the “ESPP”) are subject to service-based vesting conditions only. Compensation costs related to the ESPP are recognized using the straight-line method over the service period of the award. The fair value of the estimated shares of Series A common stock to be purchased is computed as the sum of (a) 15% purchase discount off the grant date quoted trading price of the Company’s Series A common stock and (b) the fair value of the look-back feature of the Company’s Series A common stock on the grant date, which consists of a call option on 85% of a share of Series A common stock and a put option on 15% of a share of Series A common stock.
Redeemable Common Stock
Redeemable Common Stock
Redeemable common stock represents shares of the Company’s common stock that were redeemable at the option of the investor after a specified date. The initial carrying amount of redeemable common stock is equal to the respective issuance date fair value of the common stock subject to redemption, less issuance costs. The carrying amount was adjusted to equal the redemption value, which was equal to the fair value of a single share of common stock at the end of each reporting period. The carrying amount was subject to a floor equal to the initial carrying amount. The resulting changes in the redemption value were recorded with corresponding adjustments against retained earnings, if available, additional paid-in capital or accumulated deficit. Redeemable common stock was originally classified outside of permanent equity on the Consolidated Balance Sheets as the redemption option was outside of the Company’s control. As the redemption feature applicable to certain shares of the Company’s common stock was terminated upon the Company’s IPO, all shares of the Company’s redeemable common stock converted into 64,046,223 shares of Series B common stock upon the effectiveness of the Company’s registration statement on Form S-1 filed with the SEC on September 19, 2023.
Income Taxes
Income Taxes
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which utilizes the asset and liability method for the financial accounting and reporting of income taxes. Under this method, deferred income taxes are recognized for the expected future tax consequences of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. The amount of any future tax benefit associated with deferred tax assets is reduced by a valuation allowance when there is uncertainty that those tax benefits will be realized.
The Company accounts for uncertain tax positions using a more-likely-than-not recognition threshold in accordance with ASC 740. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. Interest and penalties related to uncertain tax positions are included as a component of income tax expense.
Accounts Receivable
Accounts Receivable
Accounts receivable are shown net of an allowance for doubtful accounts of $2.3 million and $1.0 million as of December 31, 2025 and 2024, respectively. The allowance for doubtful accounts is established to represent the Company’s best estimate of the net realizable value of the outstanding amount of receivables that it will be unable to collect. The development of the Company’s allowance for doubtful accounts is based on a review of factors such as the customer’s payment history, historical loss patterns, the general economic climate, age, and past due status of invoices. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, the Company’s estimates of the recoverability of receivables could be further adjusted.
The allowance for doubtful accounts consists of the following activity (in thousands):

Year Ended December 31,
202520242023
Balance at beginning of the period$1,030 $1,479 $2,253 
Provisions for uncollectible accounts, net of recoveries2,578 349 28 
Write offs(1,352)(798)(802)
Balance at end of the period$2,256 $1,030 $1,479 
Accounts receivable is shown inclusive of unbilled accounts receivable of $3.3 million and $1.7 million as of December 31, 2025 and 2024, respectively. Unbilled accounts receivable is made up entirely of overages incurred by customers who have exceeded their subscription allotments as of the period end but are not yet due for their period end billing.
Cash, Cash Equivalents, and Restricted Cash
Cash, Cash Equivalents, and Restricted Cash
The Company considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2025 and 2024, the Company had cash equivalents of $325.9 million and $278.2 million, respectively, in money market funds.
As of December 31, 2025 and 2024, the Company had a current restricted cash balance of $0.7 million and $0.4 million, respectively. As of December 31, 2024, the Company had a non-current restricted cash balance of $0.7 million. The Company had no non-current restricted cash as of December 31, 2025. Restricted cash at December 31, 2025 and 2024 related to the Company’s required collateral to fund payroll and credit card obligations in its Australian entity, as well as collateral required to be held as a result of the Company’s office lease in Australia. Restricted cash is included in current assets for obligations that expire within one year and is included in non-current assets for obligations that expire more than one year from the balance sheet date.
Concentrations of Credit Risk, Significant Customers, and Vendors
Concentrations of Credit Risk, Significant Customers, and Vendors
Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash, restricted cash, and accounts receivable.
The Company maintains its cash and restricted cash at accredited financial institutions. Bank accounts in the United States are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2025 and
2024, the Company’s primary operating accounts significantly exceeded federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
Credit risk with respect to accounts receivable is dispersed due to the Company’s large number of customers. The Company routinely assesses the creditworthiness of its customers. The Company does not require collateral. The Company maintains an allowance for potentially uncollectible accounts receivable. Accounts receivable is stated at the amount management expects to collect from outstanding balances. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable.
Significant concentrations of credit risk exist when a customer represents 10% or more of accounts receivable. As of December 31, 2025 and 2024, no individual customer accounted for 10% or more of accounts receivable. Additionally, there were no customers that represented 10% or more of the Company’s revenue for the years ended December 31, 2025, 2024, and 2023.
The Company had certain vendors who individually represented 10% or more of the Company’s total vendor expenditures.
Property and Equipment
Property and Equipment
Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of disposal. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. The estimated useful lives of the Company’s property and equipment are as follows:
Office equipment5 years
Computer equipment3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsLesser of lease term or useful life
Asset retirement cost
Lesser of lease term or 5 years
Asset Retirement Obligations ("ARO")
Asset Retirement Obligations (“ARO”)
As part of the build out of the Company’s headquarters in Boston, Massachusetts, the Company built an internal staircase connecting multiple floors. This staircase required the removal of ground space to connect the floors. The lease agreement required the Company to incur the costs required to restore the leased space to its original condition. During fiscal year 2020, on the lease commencement date, the Company established an ARO based on the present value of contractually required estimated future costs to retire long-lived assets at the termination or expiration of the lease and to return the space to its original condition. The asset associated with the ARO is amortized over the lease term or 5 years to operating expense, and the ARO is accreted to the end of lease obligation value over the same term. On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters and, under the terms of the amendment, the Company was relieved of the obligation to return the space to its original condition. During the year ended December 31, 2025, the Company derecognized the ARO.
Capitalized Internal-Use Software
Capitalized Internal-Use Software
The Company capitalizes qualifying costs incurred during the application development stage in connection with the development of internal-use software, which are included on the Consolidated Balance Sheets as a component of property and equipment, net. Costs related to preliminary project activities and post-implementation stages of software development are expensed as incurred.
Costs capitalized as internal-use software development costs include eligible salaries, stock-based compensation, and other compensation-related costs of employees incurred in developing new features and enhancements when the costs will result in additional functionality. Capitalized internal-use software development costs are amortized on a straight-line basis over their estimated useful life of 3 years. Computer software development costs that do not qualify for capitalization are expensed as incurred.
Capitalization begins when the preliminary project stage is complete, management authorizes and commits to the funding of the software project with appropriate authority, it is probable the project will be completed, the software will be used to perform the functions intended, and certain functional and quality standards have been met.
Leases
Leases
The Company determines whether an arrangement contains a lease at inception. At the commencement date, the Company will perform the classification tests to determine whether its leases are operating or financing and recognize the related lease liability and right-of-use (“ROU”) asset. The Company, as the lessee, recognizes on the Consolidated Balance Sheets a liability to make lease payments and an ROU asset representing the right to use the underlying asset for both finance and operating leases with a lease term longer than twelve months. Lease liabilities and their corresponding ROU assets are recognized based on the present value of unpaid lease payments over the expected lease term.
The Company has elected the following practical expedients: (1) not to separate lease and non-lease components for all asset classes and (2) not to recognize leases with a term of 12 months or less at commencement on the Consolidated Balance Sheets for all asset classes. If there is a change in the Company’s assessment of the lease term and, as a result, the remaining lease term extends more than 12 months from the end of the previously determined lease term, the lease no longer meets the definition of a short-term lease and is accounted for as either an operating or finance lease and recognized on the Consolidated Balance Sheets.
The Company leases office space and office equipment under non-cancelable operating leases ranging from 1 to 8 years. Certain leases include options to extend the leases for up to 10 years. These options will be included in the lease term when they are reasonably certain to be exercised. The Company’s leases generally do not include options to terminate the leases or to purchase the underlying asset.
The Company’s leases are primarily fixed payments. Certain of the Company’s leases include variable lease payments, generally related to the lessor’s operating costs associated with the underlying asset, which are expensed as incurred. The Company’s leases generally do not contain residual value guarantees.
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) to calculate the present value of future minimum lease payments, which is the estimated rate the Company would be required to pay for fully collateralized borrowing over the period similar to lease terms. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
Foreign Currency Translation
Foreign Currency Translation
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar (“USD”). In certain instances, the Company enters into transactions that are denominated in a currency other than the USD. At the date that such transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured and recorded in USD using the exchange rate in effect at that date. At each balance sheet date, recorded monetary balances denominated in a currency other than the USD are adjusted to USD using the exchange rate at the balance sheet date, with gains or losses recognized in other, net in the Consolidated Statements of Operations and Comprehensive Loss. Foreign currency translation gains and losses were immaterial for the periods presented. The Company recognized a $1.6 million foreign currency transaction loss and an immaterial foreign currency transaction loss for the years ended December 31, 2025 and 2023, respectively. Foreign currency transaction gains were $1.0 million for the year ended December 31, 2024.
Fair Value Measurements
Fair Value Measurements

Certain assets and liabilities are carried at fair value in accordance with ASC 820, Fair Value Measurement (“ASC 820”). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities
•Level 2 – Observable inputs (other than level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Certain non-financial assets, such as intangible assets, right of use assets, and property and equipment, are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. Such fair value measures are considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. The Company has not recorded any impairment charges during any of the periods presented.
Loss Per Share
Loss Per Share
In accordance with FASB ASC 260, Earnings Per Share, the basic net loss per share attributable to Series A and Series B common stockholders is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the applicable period.
Diluted net loss per share attributable to Series A and Series B common stockholders is computed in the same manner as basic net loss per share, as the inclusion of all potentially dilutive securities outstanding would be antidilutive. See Note 13. Loss Per Share for further information.
Basic net loss per share attributable to Series A and Series B common stockholders is computed by dividing the net loss by the number of weighted-average outstanding common shares. Diluted net loss per share attributable to Series A and Series B common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result, and is calculated using the treasury stock method. The Company considers its warrants, Investment Option, RSUs, Options, and shares to be issued under the ESPP as potential common equivalents, but excluded them from the computation of diluted earnings per share attributable to common stockholders in the periods presented, as their effect was antidilutive during the years ended December 31, 2025, 2024 and 2023.
The rights, including the liquidation and dividend rights, of the holders of Series A and Series B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each series of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Series A and Series B common stock on both individual and combined basis.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company periodically evaluates all long-lived assets or asset groups for impairment. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to the estimated undiscounted future net cash flows expected to be generated by the asset or the asset group. If the carrying amount of an asset or asset group exceeds its estimated undiscounted future net cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

The Company has implemented all applicable accounting pronouncements that are in effect.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 on its consolidated financial statements in the current period on a prospective basis. See Note 9. Income Taxes for the related disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. The new guidance requires additional disclosure related to the disaggregation of income statement expense categories. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The new guidance amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The new guidance is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. ASU 2025-11 is effective for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its interim condensed consolidated financial statements and related disclosures.
There are no other new accounting pronouncements that have been issued that would have a material impact on the Company's financial position or results of operations.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Allowance for Doubtful Accounts
The allowance for doubtful accounts consists of the following activity (in thousands):

Year Ended December 31,
202520242023
Balance at beginning of the period$1,030 $1,479 $2,253 
Provisions for uncollectible accounts, net of recoveries2,578 349 28 
Write offs(1,352)(798)(802)
Balance at end of the period$2,256 $1,030 $1,479 
Schedule of Restrictions on Cash and Cash Equivalents
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flow (in thousands):
As of,
December 31, 2025December 31, 2024
Cash and cash equivalents$1,064,875 $881,473 
Restricted cash, current
738 375 
Restricted cash, non-current
— 739 
Total cash, cash equivalents, and restricted cash$1,065,613 $882,587 
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flow (in thousands):
As of,
December 31, 2025December 31, 2024
Cash and cash equivalents$1,064,875 $881,473 
Restricted cash, current
738 375 
Restricted cash, non-current
— 739 
Total cash, cash equivalents, and restricted cash$1,065,613 $882,587 
Schedule of Property and Equipment The estimated useful lives of the Company’s property and equipment are as follows:
Office equipment5 years
Computer equipment3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsLesser of lease term or useful life
Asset retirement cost
Lesser of lease term or 5 years
Property and equipment consist of the following (in thousands):
As of,
December 31, 2025December 31, 2024
Capitalized internal-use software$49,430 $26,698 
Office equipment7,630 4,841 
Computer equipment11,385 7,027 
Furniture and fixtures14,144 8,052 
Leasehold improvements50,488 46,062 
Construction-in-progress9,109 124 
Asset retirement cost— 643 
Total property and equipment142,186 93,447 
Less accumulated depreciation and amortization(61,845)(45,247)
Total property and equipment, net$80,341 $48,200 
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Changes of Deferred Revenue The following table summarizes the changes in the balance of deferred revenue during the periods presented (in thousands):
Year Ended December 31,
20252024
Balance at beginning of the period$64,497 $40,100 
Plus: Billings during the period1,272,767 961,861 
Less: Revenue recognized during the period(1,234,019)(937,464)
Balance at end of the period$103,245 $64,497 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Measured on Recurring Basis
The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands):

As of December 31, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$325,904 $— $— $325,904 
Total$325,904 $— $— $325,904 

As of December 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$278,235 $— $— $278,235 
Total$278,235 $— $— $278,235 
v3.25.4
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment The estimated useful lives of the Company’s property and equipment are as follows:
Office equipment5 years
Computer equipment3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsLesser of lease term or useful life
Asset retirement cost
Lesser of lease term or 5 years
Property and equipment consist of the following (in thousands):
As of,
December 31, 2025December 31, 2024
Capitalized internal-use software$49,430 $26,698 
Office equipment7,630 4,841 
Computer equipment11,385 7,027 
Furniture and fixtures14,144 8,052 
Leasehold improvements50,488 46,062 
Construction-in-progress9,109 124 
Asset retirement cost— 643 
Total property and equipment142,186 93,447 
Less accumulated depreciation and amortization(61,845)(45,247)
Total property and equipment, net$80,341 $48,200 
Schedule of Change in Asset Retirement Obligation
ARO activity is as follows (in thousands):
Year Ended December 31,
20252024
Beginning balance$802 $761 
Additions— — 
Accretion— 41 
Derecognition
(802)— 
Ending balance$— $802 
v3.25.4
Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses
The following table presents components of accrued expenses (in thousands):

As of,
December 31, 2025December 31, 2024
Accrued compensation and employee related costs$65,230 $53,652 
Accrued sabbatical4,458 3,233 
Accrued value added tax948 1,000 
Other accrued taxes8,691 7,055 
Accrued cost of revenue22,609 18,216 
Accrued professional services3,742 3,475 
Accrued marketing4,597 8,739 
Accrued occupancy costs
9,262 1,415 
Other accrued expenses5,622 3,043 
Total accrued expenses$125,159 $99,828 
v3.25.4
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Future minimum payments under the Company’s non-cancellable purchase commitments as of December 31, 2025 are presented in the table below (in thousands):
Year Ending December 31,Contractual Commitments
2026$214,952 
2027231,136 
2028146,496 
2029132,789 
2030203,865 
Total Contractual Commitments:$929,238 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Components of Lease Expense
The components of lease expense are as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease cost$24,754$12,682$12,618
Short-term lease cost1,650178630
Financing lease cost—1921
Total lease cost$26,404$12,879$13,269
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

Year Ended December 31,
202520242023
Cash paid for operating lease liabilities, net of tenant incentives received $15,653$16,722$15,197
ROU assets recognized for new leases and amendments (non-cash)$74,936$17,039$1,299
Other information related to leases is as follows:

As of,
December 31, 2025December 31, 2024
Weighted average remaining lease term 6.6 years2.8 years
Weighted average discount rate6.71 %5.13 %
Schedule of Supplemental Balance Sheet Information Related to Operating Leases
Supplemental balance sheet information related to the Company’s operating leases is as follows (in thousands):
As of,
December 31, 2025December 31, 2024
Operating lease ROU assets$101,126$42,917
Operating lease liabilities, current24,75720,989
Operating lease liabilities, non-current95,99132,449
Total lease liabilities$120,748$53,438
Schedule of Future Undiscounted Annual Cash Flows for Operating Leases
Future undiscounted annual cash flows for the Company’s operating leases as of December 31, 2025 are as follows (in thousands):
Year Ending December 31,
Operating Leases
2026$25,508
202719,860
202820,863
202920,769
203021,054
Thereafter42,720
Total future undiscounted lease payments150,774
Less imputed interest(30,026)
Total lease liabilities$120,748
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The domestic and foreign components of loss before income taxes are as follows (in thousands):

Year Ended December 31,
202520242023
United States$(42,129)$(54,059)$(312,759)
Foreign11,611 10,379 5,718 
Loss before income taxes$(30,518)$(43,680)$(307,041)
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes contained the following components (in thousands):

Year Ended December 31,
202520242023
Current:
Federal$(277)$750 $— 
State237 211 (26)
Foreign4,352 942 4,652 
4,312 1,903 4,626 
Deferred:
Federal(141)— — 
State(47)— — 
Foreign(2,874)559 (3,434)
(3,062)559 (3,434)
Provision for income taxes$1,250 $2,462 $1,192 
Schedule of Effective Income Tax Rate Reconciliation
Below is a tabular reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (in thousands, except percentages):
Year Ended December 31, 2025
Amount ($)
Percent
U.S. federal taxes at statutory rate$(6,412)21.0 %
State and local income tax, net of federal (national) income tax effect(1)
190 (0.6)
Foreign tax effects
United Kingdom
Stock Based Compensation(701)2.3 
Other128 (0.4)
Australia
Stock Based Compensation(312)1.0 
Other60 (0.2)
Other foreign jurisdictions(3)— 
Total(828)2.7 
Effect of changes in tax laws or rates enacted in the current period
Effect of cross-border tax laws
Tax credits
Federal R&D Credit(15,562)51.0 
Total(15,562)51.0 
Changes in valuation allowances195,140 (639.1)
Nontaxable or nondeductible items
Meals and Entertainment1,993 (6.5)
Stock Based Compensation(170,121)557.2 
Prepaid marketing expense
(2,935)9.6 
Other(215)0.7 
Total(171,278)561.0 
Changes in unrecognized tax benefits.
Total
$1,250 (4.1)%
(1) State taxes in Texas and Ohio make up the majority of tax effect in this category.

Below is a reconciliation of the statutory federal income tax expense and the Company's total income tax expense for the years ended December 31, 2024 and 2023:

Year Ended December 31,
20242023
U.S. federal taxes at statutory rate21.0 %21.0 %
State taxes, net of federal benefit7.6 4.3 
Federal research and development credits48.3 3.8 
State research and development credits20.2 0.9 
Permanent items(2.4)(0.4)
Stock-based compensation57.3 1.6 
Foreign rate differential0.1 — 
Non-deductible officers compensation(32.2)(2.3)
Prepaid marketing expense
3.2 3.6 
Other(2.7)— 
Change in valuation allowance126.0 (32.9)
Total(5.6)%(0.4)%
Schedule of Income Taxes Paid As required by ASU 2023-09, the table below presents the amount of income taxes paid (in thousands, net of refunds received) for the year ended December 31, 2025, disaggregated by federal, state, and foreign jurisdictions.
Year Ended December 31,
2025
Federal$939 
State578 
Foreign
UK
1,819 
AUS3,160 
Other
40 
Total
$6,536 
Schedule of Deferred Tax Assets and Liabilities The carryforwards and temporary differences that give rise to a significant portion of the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
Year Ended December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards$245,586 $76,714 
Research and development credits87,255 63,894 
Stock-based compensation17,060 25,544 
Lease liability29,558 13,146 
Capitalized research and development154,483 105,266 
Other10,622 7,582 
Total deferred tax assets544,564 292,146 
Deferred tax liabilities:
Depreciation
(2,365)(2,362)
Deferred commissions(13,659)(9,818)
Amortization(8,163)(4,579)
ROU asset(24,763)(10,604)
Prepaid marketing expense(32,417)(37,112)
Total deferred tax liabilities(81,367)(64,475)
Valuation allowance(457,787)(225,135)
Net deferred tax assets
$5,410 $2,536 
Schedule of Unrecognized Tax Benefits
A reconciliation of the gross unrecognized tax benefits consists of the following (in thousands):
Year Ended December 31,
2025
2024
2023
Unrecognized tax benefits, beginning balance
$1,334 $— $— 
Gross increases for tax positions taken in prior years
11 1,334 — 
Unrecognized tax benefits, ending balance
$1,345 $1,334 $— 
v3.25.4
Redeemable Common Stock, Common Stock, and Stockholders' Equity (Deficit) (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Warrant Activity
The following table summarizes the warrants activity during the year ended December 31, 2025:
Number of Shares
Weighted Average Exercise Price
Weighted Average Remaining Life (years)
Warrants outstanding at December 31, 2024
3,788,204 $0.01 7.58
Granted—— — 
Exercised(1,377,528)0.01 7.10
Cancelled—— — 
Warrants outstanding at December 31, 2025
2,410,676 $0.01 6.58
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Option Activity
Option activity for the year ended December 31, 2025 is as follows (in thousands, except per share data):

Number of OptionsWeighted Average Exercise Price
(Per Share)		Weighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Outstanding at January 1, 2025
25,164,415$0.29 1.21$1,030,511 
Exercised(22,938,436)0.10
Forfeited and expired——
Outstanding at December 31, 2025
2,225,979$2.27 3.25$67,215 
Exercisable at December 31, 2025
2,225,979$2.27 3.39$67,215 
Schedule of Restricted Stock Unit Activity
Restricted stock unit activity for the year ended December 31, 2025 is as follows:
Number of UnitsWeighted Average Grant Date
Fair Value
Unvested and outstanding at January 1, 2025
17,421,450 $28.33 
Granted8,059,711 32.82 
Vested(7,162,263)28.39 
Forfeited(3,768,443)29.20 
Unvested and outstanding at December 31, 2025
14,550,455 $30.56 
Schedule of Employee Stock Purchase Plan, Valuation Assumptions
The fair value of employee options granted under the ESPP is based on a 15% purchase discount off the grant date quoted trading price of the Company’s Series A common stock and is estimated using the Black-Scholes option-pricing model with the following assumptions:
Year Ended December 31,
20252024
Risk-free rate
3.96% 5.33%
4.79% - 5.33%
Expected term
0.5 - 1.0 years
0.5 - 1.0 years
Volatility
45.90% - 60.32%
45.90% - 64.12%
Expected dividends— — 
Schedule of Stock-Based Compensation Expense
Stock-based compensation included in the Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands):

Year Ended December 31,
202520242023
Cost of revenue$7,891 $8,917 $24,973 
Selling and marketing49,725 40,907 107,954 
Research and development68,178 50,693 120,184 
General and administrative36,237 34,695 87,688 
Stock-based compensation, net of amounts capitalized162,031 135,212 340,799 
Capitalized stock-based compensation expense4,416 3,555 1,349 
Total stock-based compensation expense$166,447 $138,767 $342,148 
v3.25.4
Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Loss Per Share, Basic and Diluted
The following table presents the calculation of basic and diluted net loss per share attributable to Series A and Series B common stockholders for the periods presented (in thousands, except share and per share data):

Year Ended December 31,
202520242023
Net loss per share attributable to Series A and Series B common stockholders, basic and diluted:
Numerator:
Net loss$(31,768)$(46,142)$(308,233)
Denominator:
Weighted-average shares - basic and diluted290,896,895 266,336,826 242,889,272 
Net loss per share attributable to Series A and Series B common stockholders, basic and diluted
$(0.11)$(0.17)$(1.27)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table summarizes the potential common shares excluded from the computation of diluted net income (loss) per share:
Year Ended December 31,
202520242023
Warrants outstanding2,410,676 3,788,204 5,165,732 
Investment Option15,743,174 15,743,174 15,743,174 
RSUs outstanding14,550,455 17,421,450 14,690,417 
Options outstanding2,225,979 25,164,415 31,734,725 
ESPP
245,840 258,033 — 
Total35,176,124 62,375,276 67,334,048 
v3.25.4
Segment Information and Geographic Data (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Revenue and Long-Lived Assets, by Geographical Area
Revenue by geographic area, based on the location of the Company’s customers, is as follows (in thousands):
Year Ended December 31,
202520242023
Americas:
United States$741,101 $584,844 $443,471 
Other Americas (1)
59,636 47,461 38,180 
APAC (1)(2)
127,179 95,920 72,797 
EMEA (1)(3)
United Kingdom
123,609 90,593 63,424 
Other EMEA (4)
182,494 118,646 80,227 
Total Revenue$1,234,019 $937,464 $698,099 
(1) Other than the United States, no other individual country accounted for 10% or more of total revenue for any of the periods presented.
(2) Asia-Pacific
(3) Europe, the Middle East and Africa
(4) Other than the United Kingdom, no other individual country accounted for 10% or more of total revenue for any of the periods presented.
Disaggregation of Long-lived Assets
Long-lived assets consist of property and equipment and ROU assets. Long-lived assets by geographical region are as follows:
Year Ended December 31,
20252024
Americas
United States$171,140 $71,894 
APAC (1)
1,402 2,207 
EMEA (2)
United Kingdom8,615 17,016 
    Other (3)
310 — 
Total Long-lived Assets
$181,467 $91,117 
(1) Asia-Pacific
(2) Europe, the Middle East and Africa
(3) No other country in this geographic region represented more than 10% of the Company’s long-lived assets for the periods presented
v3.25.4
Restructuring Costs (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Costs Restructuring costs included in the Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue
$— $— $1,138 
Selling and marketing
— — 1,832 
Research and development
4,224 — 3,375 
General and administrative
— — 1,532 
Total
$4,224 $— $7,877 
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 22, 2023
shares
Jul. 28, 2022
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2025
USD ($)
segment
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Number of operating segments | segment       1      
Number of reportable segments | segment       1      
Number of days of advance notice for contract termination for monthly billing cycles       5 days      
Number of days of advance notice for contract termination       30 days      
Deferred contract acquisition costs, current       $ 29,634 $ 20,544    
Deferred contract acquisition costs, non-current       47,769 32,527    
Selling and marketing       506,241 404,209 $ 394,369  
Accrued expenses       125,159 99,828    
Accounts payable       $ 29,072 $ 14,579    
Warrants, exercise price (in dollars per share) | $ / shares       $ 0.01 $ 0.01    
Stock and warrants issued       $ 15 $ 14 62  
Capitalized prepaid marketing expense       32,400 32,400    
Prepaid marketing expense       132,849 153,346    
Advertising costs       51,800 45,900 41,600  
Uncertain tax positions     $ 0 1,345 1,334 0 $ 0
Unbilled accounts receivable     1,479 2,256 1,030 1,479 $ 2,253
Cash equivalents       325,900 278,200    
Restricted cash       738 375    
Restricted cash, non-current       0 739    
Cash and cash equivalents       $ 1,064,875 881,473    
Property, plant and equipment, useful life       5 years      
Operating lease, option to extend, renewal term (up to)       10 years      
Foreign currency translation gains (losses)       $ 1,600 1,000 0  
Impairment of long-lived assets       $ 0 $ 0 $ 0  
Capitalized internal-use software              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Property, plant and equipment, useful life       3 years      
Total Expenditures Benchmark | Customer One | Customer Concentration Risk              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Customer concentration risk, percentage       18.00% 17.00% 19.00%  
Total Expenditures Benchmark | Customer Two | Customer Concentration Risk              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Customer concentration risk, percentage       14.00% 16.00% 14.00%  
Total Expenditures Benchmark | Customer Three | Customer Concentration Risk              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Customer concentration risk, percentage       13.00% 12.00% 12.00%  
Interest-Bearing Deposits              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Cash and cash equivalents       $ 150,000      
Unbilled Revenues              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Unbilled accounts receivable       $ 3,300 $ 1,700    
Conversion of Redeemable Common Stock Into Series B Common Stock | Series A Common Stock              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Conversion of common stock (in shares) | shares 64,046,223            
ESPP              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
ESPP purchase discount       15.00%      
ESPP | Call Option              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Percent look-back feature, portion covered by option       0.85      
ESPP | Put Option              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Percent look-back feature, portion covered by option       0.15      
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Conversion of common stock (in shares) | shares 3,935,793            
Increase in prepaid marketing expense     $ 92,600        
Shopify | Private Placement              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Shares issued under purchase agreement (in shares) | shares   2,951,846          
Issuance price per share (in dollars per share) | $ / shares   $ 33.88          
Shopify | Investment Option              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Issuance price per share (in dollars per share) | $ / shares   $ 88.93          
Additional shares available for purchase (in shares) | shares   15,743,174          
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Collaborative arrangement, term   7 years          
Collaborative arrangement, renewal term   1 year          
Maximum number of common stock shares in which warrants may be converted (in shares) | shares   15,743,174          
Warrants, exercise price (in dollars per share) | $ / shares   $ 0.01          
Stock and warrants issued   $ 370,300          
Marketing expense       $ 52,900 52,900 $ 52,900  
Prepaid marketing expense       132,800 153,300    
Unrecognized marketing expense       $ 189,500      
Warrants, cost not yet recognized, period for recognition       3 years 7 months 6 days      
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Class of Warrant or Right, Vesting Period One              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Warrants, vesting percentage 0.25 0.25          
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Class of Warrant or Right, Vesting Periods Two Through Twenty-One              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Warrants, vesting percentage   0.75          
Shopify | Revenue Sharing Agreement              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Revenue from collaborative arrangement exceeding threshold, percentage to be shared   0.15          
Revenue from collaborative arrangement, threshold   $ 1,000          
Selling and marketing       $ 33,200 27,400 $ 21,900  
Accrued expenses       3,000 2,600    
Accounts payable       $ 3,000 $ 2,500    
Minimum              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Deferred contract acquisition costs, capitalized, amortization period       18 months      
Operating lease, term of contract       1 year      
Maximum              
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]              
Deferred contract acquisition costs, capitalized, amortization period       60 months      
Operating lease, term of contract       8 years      
v3.25.4
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of the period $ 1,030 $ 1,479 $ 2,253
Provisions for uncollectible accounts, net of recoveries 2,578 349 28
Write offs (1,352) (798) (802)
Balance at end of the period $ 2,256 $ 1,030 $ 1,479
v3.25.4
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 1,064,875 $ 881,473    
Restricted cash, current 738 375    
Restricted cash, non-current 0 739    
Total cash, cash equivalents, and restricted cash $ 1,065,613 $ 882,587 $ 739,657 $ 386,916
v3.25.4
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
Dec. 31, 2025
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 5 years
Office equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 5 years
Computer equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 3 years
Furniture and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 3 years
Furniture and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 5 years
Asset retirement cost  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property and equipment 5 years
v3.25.4
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in Contract with Customer, Liability, Revenue Recognized [Roll Forward]    
Balance at beginning of the period $ 64,497 $ 40,100
Plus: Billings during the period 1,272,767 961,861
Less: Revenue recognized during the period (1,234,019) (937,464)
Balance at end of the period $ 103,245 $ 64,497
v3.25.4
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Amounts included in contract liability at the beginning of the period $ 64.5 $ 40.1
Revenue expected to be recognized 253.7  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue expected to be recognized $ 235.9  
Expected period of recognition 12 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue expected to be recognized $ 17.8  
Expected period of recognition  
v3.25.4
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total $ 325,904 $ 278,235
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 325,904 278,235
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 0 0
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market funds 325,904 278,235
Money market funds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market funds 325,904 278,235
Money market funds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market funds 0 0
Money market funds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market funds $ 0 $ 0
v3.25.4
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 142,186 $ 93,447
Less accumulated depreciation and amortization (61,845) (45,247)
Total property and equipment, net 80,341 48,200
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 49,430 26,698
Office equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 7,630 4,841
Computer equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 11,385 7,027
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment 14,144 8,052
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 50,488 46,062
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment 9,109 124
Asset retirement cost    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 0 $ 643
v3.25.4
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation and amortization expense $ 18.6 $ 17.7 $ 13.7
Capitalized internal-use software development costs 23.2 14.9 7.0
Capitalized internal-use software development costs, not yet in service 5.2    
Amortization of capitalized internal-use software development costs 9.5 $ 4.6 $ 1.8
Service Life      
Property, Plant and Equipment [Line Items]      
Reduction in depreciation expense $ 5.7    
v3.25.4
Property and Equipment, Net - Schedule of Asset Retirement Obligation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
Beginning balance $ 802 $ 761
Additions 0 0
Accretion 0 41
Derecognition (802) 0
Ending balance $ 0 $ 802
v3.25.4
Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accrued compensation and employee related costs $ 65,230 $ 53,652
Accrued sabbatical 4,458 3,233
Accrued value added tax 948 1,000
Other accrued taxes 8,691 7,055
Accrued cost of revenue 22,609 18,216
Accrued professional services 3,742 3,475
Accrued marketing 4,597 8,739
Accrued occupancy costs 9,262 1,415
Other accrued expenses 5,622 3,043
Total accrued expenses $ 125,159 $ 99,828
v3.25.4
Commitments and Contingencies (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Contractual Commitments  
2026 $ 214,952
2027 231,136
2028 146,496
2029 132,789
2030 203,865
Total Contractual Commitments: $ 929,238
v3.25.4
Leases - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 24,754 $ 12,682 $ 12,618
Short-term lease cost 1,650 178 630
Financing lease cost 0 19 21
Total lease cost $ 26,404 $ 12,879 $ 13,269
v3.25.4
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease ROU assets $ 101,126 $ 42,917
Operating lease liabilities, current 24,757 20,989
Operating lease liabilities, non-current 95,991 32,449
Total lease liabilities $ 120,748 $ 53,438
v3.25.4
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Cash paid for operating lease liabilities, net of tenant incentives received $ 15,653 $ 16,722 $ 15,197
ROU assets recognized for new leases and amendments (non-cash) $ 74,936 $ 17,039 $ 1,299
v3.25.4
Leases - Schedule of Other Information (Details)
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted average remaining lease term 6 years 7 months 6 days 2 years 9 months 18 days
Weighted average discount rate 6.71% 5.13%
v3.25.4
Leases - Schedule of Future Undiscounted Annual Cash Flows (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
2026 $ 25,508  
2027 19,860  
2028 20,863  
2029 20,769  
2030 21,054  
Thereafter 42,720  
Total future undiscounted lease payments 150,774  
Less imputed interest (30,026)  
Total lease liabilities $ 120,748 $ 53,438
v3.25.4
Leases - Narrative (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
Leases that have not yet commenced $ 929,238
v3.25.4
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ (42,129) $ (54,059) $ (312,759)
Foreign 11,611 10,379 5,718
Loss before income taxes $ (30,518) $ (43,680) $ (307,041)
v3.25.4
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ (277) $ 750 $ 0
State 237 211 (26)
Foreign 4,352 942 4,652
Current income tax provision 4,312 1,903 4,626
Deferred:      
Federal (141) 0 0
State (47) 0 0
Foreign (2,874) 559 (3,434)
Deferred income tax provision (3,062) 559 (3,434)
Provision for income taxes $ 1,250 $ 2,462 $ 1,192
v3.25.4
Income Taxes - Schedule of Reconciliation of Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Expense (Benefit)      
U.S. federal taxes at statutory rate $ (6,412)    
State and local income tax, net of federal (national) income tax effect 190    
Total (828)    
Tax credits      
Federal R&D Credit (15,562)    
Total (15,562)    
Changes in valuation allowances 195,140    
Nontaxable or nondeductible items      
Meals and Entertainment 1,993    
Prepaid marketing expense (2,935)    
Other (215)    
Total (171,278)    
Provision for income taxes $ 1,250 $ 2,462 $ 1,192
Income Tax Rate      
U.S. federal taxes at statutory rate 21.00% 21.00% 21.00%
State and local income tax, net of federal (national) income tax effect (0.60%) 7.60% 4.30%
Stock Based Compensation   57.30% 1.60%
Other   (2.70%) 0.00%
Foreign rate differential 2.70% 0.10% 0.00%
Tax credits      
Federal R&D Credit 51.00%    
Permanent items   (2.40%) (0.40%)
Total 51.00%    
Changes in valuation allowances (639.10%) 126.00% (32.90%)
Nontaxable or nondeductible items      
Meals and Entertainment (6.50%)    
Non-deductible officers compensation   (32.20%) (2.30%)
Prepaid marketing expense 9.60% 3.20% 3.60%
Other 0.70%    
Total 561.00%    
Total (4.10%) (5.60%) (0.40%)
United Kingdom      
Income Tax Expense (Benefit)      
Stock Based Compensation $ (701)    
Other foreign adjustments $ 128    
Income Tax Rate      
Stock Based Compensation 2.30%    
Other (0.40%)    
Australia      
Income Tax Expense (Benefit)      
Stock Based Compensation $ (312)    
Other foreign adjustments $ 60    
Income Tax Rate      
Stock Based Compensation 1.00%    
Other (0.20%)    
Other foreign jurisdictions      
Income Tax Expense (Benefit)      
Total $ (3)    
United States      
Income Tax Expense (Benefit)      
Stock Based Compensation $ (170,121)    
Income Tax Rate      
Stock Based Compensation 557.20%    
Tax credits      
Federal R&D Credit   48.30% 3.80%
State and Local Tax Jurisdiction, Other      
Tax credits      
Federal R&D Credit   20.20% 0.90%
v3.25.4
Income Taxes - Schedule of Income Taxes Paid (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Federal $ 939    
State 578    
Total 6,536 $ 4,691 $ 283
UK      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 1,819    
AUS      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 3,160    
Other      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign $ 40    
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 245,586 $ 76,714
Research and development credits 87,255 63,894
Stock-based compensation 17,060 25,544
Lease liability 29,558 13,146
Capitalized research and development 154,483 105,266
Other 10,622 7,582
Total deferred tax assets 544,564 292,146
Deferred tax liabilities:    
Depreciation (2,365) (2,362)
Deferred commissions (13,659) (9,818)
Amortization (8,163) (4,579)
ROU asset (24,763) (10,604)
Prepaid marketing expense (32,417) (37,112)
Total deferred tax liabilities (81,367) (64,475)
Valuation allowance (457,787) (225,135)
Net deferred tax assets $ 5,410 $ 2,536
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]      
Income taxes paid $ 6,536,000 $ 4,691,000 $ 283,000
Federal net operating loss carryforwards, not subject to expiration 1,000,000,000 304,100,000  
State net operating loss carryforwards, subject to expiration 618,500,000 232,600,000  
Increase in valuation allowance 232,700,000 55,100,000  
Accrued interest and penalties related to uncertain tax positions 0 0 $ 0
Domestic Tax Jurisdiction      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward 59,500,000 44,000,000  
State and Local Jurisdiction      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward $ 35,100,000 $ 25,200,000  
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 1,334 $ 0 $ 0
Gross increases for tax positions taken in prior years 11 1,334 0
Unrecognized tax benefits, ending balance $ 1,345 $ 1,334 $ 0
v3.25.4
Employee Benefit Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
United States      
Defined Contribution Plan Disclosure [Line Items]      
Employer contributions to plan $ 11.3 $ 11.2 $ 7.4
Foreign Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employer contributions to plan $ 4.3 $ 2.9 $ 1.8
United Kingdom      
Defined Contribution Plan Disclosure [Line Items]      
Additional percentage of employees wages contributed by employer 5.00%    
Australia      
Defined Contribution Plan Disclosure [Line Items]      
Additional percentage of employees wages contributed by employer 12.00%    
v3.25.4
Redeemable Common Stock, Common Stock, and Stockholders' Equity (Deficit) - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended 36 Months Ended
Oct. 19, 2023
USD ($)
shares
Sep. 22, 2023
USD ($)
$ / shares
shares
Jul. 28, 2022
$ / shares
shares
Dec. 31, 2025
USD ($)
vote
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2019
shares
Dec. 31, 2021
$ / shares
shares
Sep. 30, 2023
shares
Class of Warrant or Right [Line Items]                    
Underwriting discounts and commissions | $   $ 17,700                
Payments of stock issuance costs | $   $ 7,400       $ 25,135        
Redeemable common stock issued (in shares)                 64,046,223  
Proceeds from issuance of common stock, net of issuance costs | $       $ 0 $ 0 $ 0        
Preferred stock, shares authorized (in shares)       100,000,000 100,000,000         100,000,000
Automatic conversion of outstanding common stock, period       7 years            
Preferred stock, par value (in dollars per share) | $ / shares       $ 0.001 $ 0.001          
Preferred stock, shares issued (in shares)       0 0          
Preferred stock, shares outstanding (in shares)       0 0          
Warrants, exercise price (in dollars per share) | $ / shares       $ 0.01 $ 0.01          
Warrants vested (in shares)       1,377,528 1,377,528 6,051,285        
Restricted common stock, issued (in shares)               142,908    
Restricted Stock                    
Class of Warrant or Right [Line Items]                    
Aggregate fair value of restricted common stock vested | $           $ 700        
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock (in shares)   3,935,793                
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement                    
Class of Warrant or Right [Line Items]                    
Maximum number of common stock shares in which warrants may be converted (in shares)     15,743,174              
Warrants, exercise price (in dollars per share) | $ / shares     $ 0.01              
Term of warrants (in years)     10 years              
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Dividend yield                    
Class of Warrant or Right [Line Items]                    
Warrants outstanding, measurement input       0            
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Contractual term                    
Class of Warrant or Right [Line Items]                    
Warrants outstanding, measurement input       10            
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Volatility                    
Class of Warrant or Right [Line Items]                    
Warrants outstanding, measurement input       0.5500            
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Risk-free rate                    
Class of Warrant or Right [Line Items]                    
Warrants outstanding, measurement input       0.0285            
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Class of Warrant or Right, Vesting Period One                    
Class of Warrant or Right [Line Items]                    
Warrants, vesting percentage   0.25 0.25              
Shopify | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Class of Warrant or Right, Vesting Periods Two Through Twenty-One                    
Class of Warrant or Right [Line Items]                    
Warrants, vesting percentage     0.75              
Series A Common Stock                    
Class of Warrant or Right [Line Items]                    
Common stock, shares authorized (in shares)       3,000,000,000 3,000,000,000         3,000,000,000
Number of votes per common share | vote       1            
Series A Common Stock | Common Stock                    
Class of Warrant or Right [Line Items]                    
Issuance of common stock, net of issuance costs (in shares)           11,507,693        
Series B Common Stock                    
Class of Warrant or Right [Line Items]                    
Common stock, shares authorized (in shares)       350,000,000 350,000,000         350,000,000
Number of votes per common share | vote       10            
Number of shares convertible (in shares)       1            
Conversion of Common Stock Upon Initial Public Offering | Series A Common Stock                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock (in shares)   64,046,223                
Conversion of Common Stock Upon Initial Public Offering | Series A Common Stock | Common Stock                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock (in shares)   21,233,074                
Conversion of Redeemable Common Stock Into Series B Common Stock | Series A Common Stock                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock (in shares)   64,046,223                
Conversion of Redeemable Common Stock                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock | $       $ 1,900,000            
Reclassification of redeemable common stock to Series B common stock | $       1,800,000   $ 1,931,538        
Conversion of Redeemable Common Stock | Additional Paid-In Capital                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock | $       $ 136,900            
Reclassification of redeemable common stock to Series B common stock | $           $ 136,865        
Conversion of Redeemable Common Stock | Series B Common Stock | Common Stock                    
Class of Warrant or Right [Line Items]                    
Conversion of common stock (in shares)           64,046,223        
Reclassification of redeemable common stock to Series B common stock | $           $ 64        
IPO                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares)   19,200,000                
Issuance price per share (in dollars per share) | $ / shares   $ 30.00                
Aggregate proceeds, net of discounts and commissions | $   $ 320,100                
IPO and Over-Allotment Option                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares)   11,507,693                
IPO and Over-Allotment Option - Shares From Existing Shareholders                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares)   7,692,307                
Over-Allotment Option                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares) 2,764,066                  
Shares available for purchase (in shares) 2,880,000                  
Proceeds from sale of stock | $ $ 0                  
Public Stock Offering                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares)             10,365,017      
Issuance price per share (in dollars per share) | $ / shares             $ 33.38   $ 33.38  
Redeemable common stock issued (in shares)             3,025,625      
Proceeds from issuance of common stock, net of issuance costs | $             $ 346,000      
Public Stock Offering | Series B Common Stock                    
Class of Warrant or Right [Line Items]                    
Issuance of common stock, net of issuance costs (in shares)             7,339,392      
Private Placement | Shopify                    
Class of Warrant or Right [Line Items]                    
Shares issued under purchase agreement (in shares)     2,951,846              
Issuance price per share (in dollars per share) | $ / shares     $ 33.88              
Investment Option | Shopify                    
Class of Warrant or Right [Line Items]                    
Issuance price per share (in dollars per share) | $ / shares     $ 88.93              
Additional shares available for purchase (in shares)     15,743,174              
v3.25.4
Redeemable Common Stock, Common Stock, and Stockholders' Equity (Deficit) - Schedule of Warrant Activity (Details)
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Number of Shares  
Outstanding, beginning (in shares) 3,788,204
Granted (in shares) 0
Exercised (in shares) (1,377,528)
Cancelled (in shares) 0
Outstanding, ending (in shares) 2,410,676
Weighted Average Exercise Price  
Outstanding, beginning (in dollars per share) | $ / shares $ 0.01
Exercised (in dollars per share) | $ / shares 0.01
Outstanding, ending (in dollars per share) | $ / shares $ 0.01
Weighted Average Remaining Life (years)  
Warrants outstanding, beginning 7 years 6 months 29 days
Exercised 7 years 1 month 6 days
Warrants outstanding, ending 6 years 6 months 29 days
v3.25.4
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Aug. 24, 2023
Apr. 10, 2023
grantee
shares
Mar. 15, 2023
employee
shares
Dec. 31, 2025
USD ($)
employee
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
employee
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Options exercised, aggregate intrinsic value | $       $ 797,800 $ 177,700 $ 54,700
Share-based compensation expense recognized | $       $ 162,031 135,212 $ 340,799
Reduction of full time workforce, percentage       3.00%   8.00%
Reduction of full time workforce, number of employees | employee     130      
Capitalized stock-based compensation expense | $       $ 4,416 3,555 $ 1,349
Modification 1            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of employees covered under modified stock-based awards | employee       1    
Incremental stock-based compensation expense from modifications | $       $ 1,400    
Modification 2            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Incremental stock-based compensation expense from modifications | $       $ 1,100    
Stock-based compensation modifications, number of employees affected | employee       19    
Options            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       4 years    
Expiration period       10 years    
Stock-based compensation modifications, number of shares affected (in shares)           1,004,667
Stock-based compensation modifications, number of employees affected | employee           4
Options | Share-Based Payment Arrangement, Nonemployee            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation modifications, number of shares affected (in shares)     608,698      
Options | Share-Based Payment Arrangement, Tranche One            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       12 months    
Award vesting, percentage       25.00%    
Options | Share-Based Payment Arrangement, Tranche Two            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       3 years    
Award vesting, percentage       75.00%    
RSUs outstanding            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       4 years    
Requisite service period       4 years    
Aggregate fair value of restricted common stock vested | $       $ 252,300 158,100 $ 214,700
Unrecognized share-based compensation cost | $       $ 366,500    
Unrecognized share-based compensation cost, period of recognition       2 years 7 months 6 days    
Granted (in dollars per share) | $ / shares       $ 32.82    
Stock-based compensation modifications, number of shares affected (in shares)   4,250,947        
Stock-based compensation modifications, number of employees affected   657       2
RSUs outstanding | Share-Based Payment Arrangement, Employee            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation modifications, number of shares affected (in shares)           167,500
RSUs outstanding | Share-Based Payment Arrangement, Nonemployee            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation modifications, number of shares affected (in shares)     64,301      
RSUs outstanding | Modification 1            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation modifications, number of shares affected (in shares)       121,969    
RSUs outstanding | Modification 2            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation modifications, number of shares affected (in shares)       42,781    
RSUs outstanding | Share-Based Payment Arrangement, Tranche One            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       1 year    
Award vesting, percentage       25.00%    
RSUs outstanding | Share-Based Payment Arrangement, Tranche Two            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Award vesting period       3 years    
ESPP            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of shares authorized for issuance (in shares)       10,670,780    
ESPP maximum employee base compensation contribution percentage 15.00%          
ESPP purchase price of common stock, percent of market price 85.00%          
ESPP sequential offering period 12 months          
ESPP number of additional shares allowable (in shares)       6,200,000    
Percent of outstanding shares       1.00%    
ESPP purchase discount       15.00%    
Share-based compensation expense recognized | $       $ 5,800 $ 4,300  
Unrecognized share-based compensation cost | $       $ 2,600    
Unrecognized share-based compensation cost, period of recognition       6 months    
Granted (in dollars per share) | $ / shares       $ 10.63 $ 9.28  
ESPP shares issued (in shares)       462,681    
Employee Stock, Purchase Period One            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
ESPP purchase period 6 months          
Employee Stock, Purchase Period Two            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
ESPP purchase period 6 months          
Options, modification, extension            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Incremental stock-based compensation expense from modifications | $           $ 800
Options, modification, restructure            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Incremental stock-based compensation expense from modifications | $           $ 600
2023 Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of shares authorized for issuance (in shares)       74,700,704    
Number of shares available for grant (in shares)       55,563,432    
2015 Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Incentive stock options, exercise price, fair value threshold for employees holding 10% or more of voting stock       1.10    
v3.25.4
Stock-Based Compensation - Schedule of Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Number of Options    
Options outstanding, beginning balance (in shares) 25,164,415  
Exercised (in shares) (22,938,436)  
Forfeited and expired (in shares) 0  
Options outstanding, ending balance (in shares) 2,225,979 25,164,415
Options exercisable (in shares) 2,225,979  
Weighted Average Exercise Price (Per Share)    
Options outstanding, beginning balance (in dollars per share) $ 0.29  
Exercised (in dollars per share) 0.10  
Forfeited and expired (in dollars per share) 0  
Options outstanding, ending balance (in dollars per share) 2.27 $ 0.29
Options exercisable, weighted average exercise price (in dollars per share) $ 2.27  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]    
Options outstanding, weighted average remaining contractual life 3 years 3 months 1 year 2 months 15 days
Options outstanding, aggregate intrinsic value $ 67,215 $ 1,030,511
Options exercisable, weighted average remaining contractual life 3 years 4 months 20 days  
Options exercisable, aggregate intrinsic value $ 67,215  
v3.25.4
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Number of Units  
Unvested and outstanding, beginning balance (in shares) | shares 17,421,450
Granted ( in shares) | shares 8,059,711
Vested (in shares) | shares (7,162,263)
Forfeited (in shares) | shares (3,768,443)
Unvested and outstanding, ending balance (in shares) | shares 14,550,455
Weighted Average Grant Date Fair Value  
Unvested and outstanding, beginning balance (in dollars per share) | $ / shares $ 28.33
Granted (in dollars per share) | $ / shares 32.82
Vested (in dollars per share) | $ / shares 28.39
Forfeited (in dollars per share) | $ / shares 29.20
Unvested and outstanding, ending balance (in dollars per share) | $ / shares $ 30.56
v3.25.4
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan, Valuation Assumptions (Details) - ESPP - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free rate, minimum 3.96% 4.79%
Risk-free rate, maximum 5.33% 5.33%
Volatility, minimum 45.90% 45.90%
Volatility, maximum 60.32% 64.12%
Expected dividends $ 0 $ 0
Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected term (in years) 6 months 6 months
Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected term (in years) 1 year 1 year
v3.25.4
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation, net of amounts capitalized $ 162,031 $ 135,212 $ 340,799
Capitalized stock-based compensation expense 4,416 3,555 1,349
Total stock-based compensation expense 166,447 138,767 342,148
Cost of revenue      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation, net of amounts capitalized 7,891 8,917 24,973
Selling and marketing      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation, net of amounts capitalized 49,725 40,907 107,954
Research and development      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation, net of amounts capitalized 68,178 50,693 120,184
General and administrative      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation, net of amounts capitalized $ 36,237 $ 34,695 $ 87,688
v3.25.4
Loss Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net loss $ (31,768) $ (46,142) $ (308,233)
Denominator:      
Weighted-average shares - basic (in shares) 290,896,895 266,336,826 242,889,272
Weighted average shares - diluted (in shares) 290,896,895 266,336,826 242,889,272
Net loss per share attributable to Series A and Series B common stockholders, basic (in dollars per share) $ (0.11) $ (0.17) $ (1.27)
Net loss per share attributable to Series A and Series B common stockholders, diluted (in dollars per share) $ (0.11) $ (0.17) $ (1.27)
v3.25.4
Loss Per Share - Schedule of Potential Antidilutive Securities (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 35,176,124 62,375,276 67,334,048
Warrants outstanding      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 2,410,676 3,788,204 5,165,732
Investment Option      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 15,743,174 15,743,174 15,743,174
RSUs outstanding      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 14,550,455 17,421,450 14,690,417
Options outstanding      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 2,225,979 25,164,415 31,734,725
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 245,840 258,033 0
v3.25.4
Related Party Transactions (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]        
Revenue   $ 1,234,019,000 $ 937,464,000 $ 698,099,000
Accounts receivable $ 60,714,000 60,714,000 43,095,000  
Deferred revenue 103,245,000 103,245,000 64,497,000  
Revenue performance obligation 253,700,000 253,700,000    
Prepaid expenses and other current assets 50,115,000 50,115,000 34,262,000  
Operating expenses   989,254,000 $ 800,237,000 $ 850,833,000
Wyze Labs, Inc.        
Related Party Transaction [Line Items]        
Revenue   0    
Accounts receivable 220,400 220,400    
Deferred revenue 202,200 202,200    
Revenue performance obligation 392,600 392,600    
Jellyfish        
Related Party Transaction [Line Items]        
Services purchased from related parties 212,500      
Prepaid expenses and other current assets $ 148,000.0 148,000.0    
Operating expenses   $ 0    
v3.25.4
Segment Information and Geographic Data - Schedule of Disaggregation of Revenue (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 1    
Disaggregation of Revenue [Line Items]      
Revenue $ 1,234,019 $ 937,464 $ 698,099
United States      
Disaggregation of Revenue [Line Items]      
Revenue 741,101 584,844 443,471
Other Americas      
Disaggregation of Revenue [Line Items]      
Revenue 59,636 47,461 38,180
APAC      
Disaggregation of Revenue [Line Items]      
Revenue 127,179 95,920 72,797
United Kingdom      
Disaggregation of Revenue [Line Items]      
Revenue 123,609 90,593 63,424
Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 182,494 $ 118,646 $ 80,227
v3.25.4
Segment Information and Geographic Data - Schedule of Disaggregation of Long-Lived Asses (Details) - Operating Segment - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total Long-lived Assets $ 181,467 $ 91,117
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total Long-lived Assets 171,140 71,894
APAC    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total Long-lived Assets 1,402 2,207
United Kingdom    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total Long-lived Assets 8,615 17,016
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total Long-lived Assets $ 310 $ 0
v3.25.4
Restructuring Costs - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Related Activities [Abstract]      
Restructuring costs $ 4,224 $ 0 $ 7,877
Restructuring Incurred Cost, Statement Of Income Or Comprehensive Income, Extensible Enumeration Not Disclosed Flag restructuring costs   restructuring costs
Reduction of full time workforce, percentage 3.00%   8.00%
Unpaid restructuring costs $ 0   $ 0
v3.25.4
Restructuring Costs - Schedule of Restructuring Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 4,224 $ 0 $ 7,877
Cost of revenue      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 0 0 1,138
Selling and marketing      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 0 0 1,832
Research and development      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 4,224 0 3,375
General and administrative      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 0 $ 0 $ 1,532