Astera Labs, Inc.ALAB

Astera Labs, Inc. Fair Value Disclosure

10-KFiled Feb 20, 20262 min read
Fair Value of Assets and Liabilities
The following table presents information about the Company’s financial assets measured at fair value on a recurring basis based on the fair value hierarchy as follows (in thousands):
As of December 31, 2025
Level 1Level 2Total Fair
Value
Cash equivalents
Money market funds$142,772 $— $142,772 
Commercial paper— 5,495 5,495 
Total cash equivalents$142,772 $5,495 $148,267 
Marketable securities
U.S. treasury and agency securities$— $203,794 $203,794 
Commercial paper— 11,462 11,462 
Corporate debt securities— 805,949 805,949 
Total marketable securities$— $1,021,205 $1,021,205 
As of December 31, 2024
Level 1Level 2Total Fair
Value
Cash equivalents
Money market funds$59,595 $— $59,595 
Marketable securities
U.S. treasury and agency securities$— $202,469 $202,469 
Commercial paper— 103,233 103,233 
Corporate debt securities— 512,925 512,925 
Asset-backed securities— 16,123 16,123 
Total marketable securities$— $834,750 $834,750 
As of December 31, 2025 and 2024, there were no marketable securities with Level 3 fair value hierarchy measurement.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate these assets for impairment, whether due to certain
triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, these assets are measured at fair value during such period. There was no impairment on these assets during the years ended December 31, 2025, 2024, and 2023.

As of December 31, 2025 and 2024, the Company had no liabilities required to be measured at fair value on a nonrecurring basis.

Assets and Liabilities Not Measured at Fair Value
The carrying amount of the Company’s financial instruments, including cash equivalents, accounts receivable, and accounts payable, approximates their respective fair values because of their short maturities.

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.

Other Available Disclosures

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