Fair Value Measurements
The Company follows authoritative accounting guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.
The Company measures and reports its cash equivalents, restricted cash, and investments at fair value.
Money market funds are measured at fair value on a recurring basis using quoted prices and are classified as Level 1. Investments are measured at fair value based on inputs other than quoted prices that are derived from observable market data and are classified as Level 2 inputs, except for investments in U.S. treasury securities which are classified as Level 1.
There were no Level 3 assets or liabilities as of December 31, 2025 or 2024.
Financial assets subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type as of December 31, 2025 and 2024 are presented in the following table:
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| December 31, 2025 |
| Level 1 | | Level 2 | | Level 3 | | Fair Value |
| (in thousands) |
| Financial Assets: | | | | | | | |
| Money market funds ¹ | $ | 48,576 | | | $ | — | | | $ | — | | | $ | 48,576 | |
| Commercial paper | — | | | 42,704 | | | — | | | 42,704 | |
| Corporate bonds | — | | | 53,705 | | | — | | | 53,705 | |
| U.S. treasury securities | 76,157 | | | — | | | — | | | 76,157 | |
| U.S. agency securities | — | | | 33,999 | | | — | | | 33,999 | |
| Total financial assets | $ | 124,733 | | | $ | 130,408 | | | $ | — | | | $ | 255,141 | |
¹ Included within cash and cash equivalents on the Company’s consolidated balance sheets
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| December 31, 2024 |
| Level 1 | | Level 2 | | Level 3 | | Fair Value |
| (in thousands) |
| Financial Assets: | | | | | | | |
| Money market funds ¹ | $ | 65,780 | | | $ | — | | | $ | — | | | $ | 65,780 | |
| Commercial paper | — | | | 66,255 | | | — | | | 66,255 | |
| Corporate bonds | — | | | 82,725 | | | — | | | 82,725 | |
| U.S. treasury securities | 85,728 | | | — | | | — | | | 85,728 | |
| U.S. agency securities | — | | | 58,514 | | | — | | | 58,514 | |
| Asset-backed securities | — | | | 9,700 | | | — | | | 9,700 | |
| Total financial assets | $ | 151,508 | | | $ | 217,194 | | | $ | — | | | $ | 368,702 | |
¹ Included within cash and cash equivalents on the Company’s consolidated balance sheets
The carrying amounts of accounts payable and accrued liabilities approximate their fair values due to their short-term maturities. The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly.
There were no transfers of assets between the fair value measurement levels during the years ended December 31, 2025 or 2024.