QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: Our exposure to market risk is primarily confined to our investment securities, debt instruments and embedded derivatives.
+Added: Cash, Cash Equivalents and Short-Term Investments
Our exposure to market risk is primarily confined to our investment securities.
8 unchanged sentences
We actively monitor changes in interest rates and, with our current portfolio of short-term investments, we are not exposed to significant loss due to changes in interest rates.
+Added: Convertible Notes, Term Debt and Embedded Derivatives
+Added: As of December 31, 2025 and December 31, 2024, we had fixed-rate borrowings from our 2026 Notes and 2029 Notes.
+Added: We record all of our fixed-rate borrowings at amortized cost and, therefore, do not experience any risk for changes in interest rates.
+Added: However, we include embedded derivatives along with our debt in our reporting of our 2029 Notes and Term Loan in our consolidated balance sheets.
+Added: The repayment of our Term Loan in November 2025 resulted in the de-recognition of the associated embedded derivative as of December 31, 2025.
+Added: The derivatives on our 2029 Notes are marked to fair value every reporting period.
+Added: The fair value inputs to the 2029 Notes’ derivative valuation include stock price, unsecuritized discount rate, risk-free rate, volatility, and term.
+Added: Swings in our stock price could significantly affect the valuation of the 2029 Note conversion derivative.
+Added: In addition, a decrease in interest rates could increase the valuation of the derivative.
+Added: As of December 31, 2025, a 20% decrease or increase in our stock price results in an approximate $39.0 million change in the fair value of the 2029 Notes embedded derivative within the range of $119.0 million to $197.0 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.