(3)
Fair Value Measurements

The following table summarizes, for financial assets measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy (in thousands):

 

 

 

As of December 31, 2025

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Estimated
Fair Value

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

44,348

 

 

$

 

 

$

 

 

$

44,348

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. governmental and agency securities

 

 

170,836

 

 

 

589

 

 

 

 

 

 

171,425

 

Total

 

$

215,184

 

 

$

589

 

 

$

 

 

$

215,773

 

 

 

 

As of December 31, 2024

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Estimated
Fair Value

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

137,374

 

 

$

 

 

$

 

 

$

137,374

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

 

U.S. governmental and agency securities

 

 

12,826

 

 

 

 

 

 

 

 

 

12,826

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. governmental and agency securities

 

 

126,655

 

 

 

6

 

 

 

 

 

 

126,661

 

Total

 

$

276,855

 

 

$

6

 

 

$

 

 

$

276,861

 

(1)
Included in “Cash and cash equivalents” in the Company's consolidated balance sheets as of December 31, 2025 and 2024, in addition to cash of $36.8 million and $21.5 million, respectively.

The Company uses quoted prices in active markets for identical assets to determine the fair value of the Company's Level 1 investments. The fair value of the Company's Level 2 investments is determined using pricing based on quoted market prices or alternative market observable inputs.

The fair value of the Company's available-for-sale securities as of December 31, 2025, by remaining contractual maturities, was as follows (in thousands):

 

 

 

 

 

As of December 31, 2025

 

Due in one year or less

 

 

 

$

110,882

 

Due in greater than one year

 

 

 

 

60,543

 

Total

 

 

 

$

171,425

 

 

 

The Company periodically evaluates its investments for expected credit losses. The unrealized losses on the available-for-sale securities were primarily due to unfavorable changes in interest rates subsequent to the initial purchase of these securities. None of the Company's available-for-sale securities have been in a continuous unrealized loss position for twelve months or longer as of December 31, 2025. The Company expects to recover the full carrying value of its available-for-sale securities in an unrealized loss position as it does not intend or anticipate a need to sell these securities prior to recovering the associated unrealized losses. The Company also expects any credit losses would be immaterial based on the high-grade credit rating for each of such available-for-sale securities. As a result, the Company does not consider any portion of the unrealized losses as of December 31, 2025 and 2024 to represent a credit loss.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 20, 2024
2022Feb 16, 2023

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.