5.
Fair Value Measurements

The following tables set forth the fair values of financial assets as of December 31, 2025 and 2024 that were measured at fair value on a recurring basis (in thousands):

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

28,489

 

 

$

 

 

$

 

 

$

28,489

 

Commercial paper

 

 

 

 

 

9,932

 

 

 

 

 

 

9,932

 

U.S. government treasury and agency securities

 

 

 

 

 

125,605

 

 

 

 

 

 

125,605

 

Corporate bonds

 

 

 

 

 

34,182

 

 

 

 

 

 

34,182

 

Total financial assets

 

$

28,489

 

 

$

169,719

 

 

$

 

 

$

198,208

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

35,790

 

 

$

 

 

$

 

 

$

35,790

 

Commercial paper

 

 

 

 

 

2,479

 

 

 

 

 

 

2,479

 

U.S. government treasury securities

 

 

 

 

 

187,181

 

 

 

 

 

 

187,181

 

Corporate bonds

 

 

 

 

 

18,374

 

 

 

 

 

 

18,374

 

Total financial assets

 

$

35,790

 

 

$

208,034

 

 

$

 

 

$

243,824

 

 

Level 1 securities include highly liquid money market funds, for which we measure the fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 securities consist of U.S. government treasury and agency securities, corporate bonds and commercial paper, and are valued based on recent trades of securities in inactive markets or on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Feb 29, 2024
2022Feb 14, 2023
2021Feb 15, 2022
2020Feb 24, 2021
2019Feb 26, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.