Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements

v3.26.3
Fair Value Measurements
 6 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Equity Securities Without Readily Determinable Fair Values
Occasionally, the Company may purchase certain non-marketable equity securities for strategic reasons. The Company did not make any such investments during the three or six months ended September 30, 2026 or in either of the years ended March 31, 2026 or 2025.
As of September 30, 2026 and March 31, 2026, the carrying value of the Company’s investments in equity securities without readily determinable fair values totaled $18.0 million and $27.6 million, respectively, and is included in other non-current assets in the condensed consolidated balance sheet. These equity securities without readily determinable fair values represent the Company’s strategic investments in alternative app stores.
As the non-marketable equity securities are investments in privately held companies without a readily determinable fair value, the Company applied the principles of FASB ASC Topic 321-10, Investments - Equity Securities, and elected the measurement alternative to account for these investments. Under the measurement alternative, the carrying value of the non-marketable equity securities is adjusted based on price changes from observable transactions of identical or similar securities of the same issuer or for impairment. Any changes in carrying value are recorded within other (income) expense, net in the Company's condensed consolidated statements of operations and comprehensive income (loss). During the three months ended June 30, 2026, the Company identified an observable transaction indicating a decline in fair value for one of its strategic equity investments and recorded a non-cash adjustment to fair value of $9.3 million accordingly. The Company did not make any adjustments to the carrying value of equity securities without readily determinable fair values during the three months ended September 30, 2026 or the three and six months ended September 30, 2025.
Fair Value Measurements
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3. Significant unobservable inputs which are supported by little or no market activity.
Fair Value Measurements at September 30, 2026
Using
Quoted Prices in Active Markets for Identical Assets
Significant Other Observable Inputs
Significant Unobservable Inputs
(Level 1)
 (Level 2)
(Level 3)
(in thousands)
Assets:
Other non-current assets:
Investments in common stock $ 164  $ —  $ — 
Liabilities:
Derivative liabilities:
Warrant instruments $ —  $ 10,770  $ — 
Fair Value Measurements at March 31, 2026 Using
Quoted Prices in Active Markets for Identical Assets
Significant Other Observable Inputs
Significant Unobservable Inputs
(Level 1)
 (Level 2)
(Level 3)
(in thousands)
Assets:
Other non-current assets:
Investments in common stock
 $ 164  $ —  $ — 
Liabilities:
Derivative liabilities:
Warrant instruments
 $ —  $ 2,164  $ — 
As of September 30, 2026 and March 31, 2026, the carrying value of our long-term debt approximates its estimated fair value as the interest rate on the debt agreements is adjusted for changes in the market rates. See Note 9—Debt for additional information regarding our debt.
The fair value of the Company’s non-financial assets and liabilities, which include goodwill, intangible assets, property and equipment, non-marketable equity securities, as described above, and contingent consideration are measured on a non-recurring basis. Fair value adjustments are made in the period an impairment charge is recognized. The fair value of non-financial assets and liabilities is classified as Level 3 within the fair value hierarchy due to the significant unobservable inputs developed using company-specific information. During the three months ended June 30, 2026, the Company recorded a non-cash fair value adjustment of $9.3 million to a certain non-marketable equity security.