Arista Networks, Inc.ANET
Arista Networks, Inc. Fair Value Disclosure
Fair Value Measurements
The weighted-average remaining duration of our marketable debt securities is approximately 1.4 years as of December 31, 2025.
Assets measured at fair values on a recurring basis
We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in millions):
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||||||||||||||
| Financial Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash Equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market funds | $ | 1,174.8 | $ | — | $ | — | $ | 1,174.8 | $ | 1,707.5 | $ | — | $ | — | $ | 1,707.5 | ||||||||||||||||||||||||||||||||||
| Commercial paper | — | 29.8 | — | 29.8 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds | — | 6.6 | — | 6.6 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Agency securities | — | — | — | — | — | 3.0 | — | 3.0 | ||||||||||||||||||||||||||||||||||||||||||
| U.S. government notes | 124.9 | — | — | 124.9 | 31.4 | — | — | 31.4 | ||||||||||||||||||||||||||||||||||||||||||
| 1,299.7 | 36.4 | — | 1,336.1 | 1,738.9 | 3.0 | — | 1,741.9 | |||||||||||||||||||||||||||||||||||||||||||
| Marketable Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial paper | — | 83.0 | — | 83.0 | — | 48.8 | — | 48.8 | ||||||||||||||||||||||||||||||||||||||||||
| U.S. government notes | 2,854.3 | — | — | 2,854.3 | 1,921.5 | — | — | 1,921.5 | ||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds | — | 4,329.7 | — | 4,329.7 | — | 2,593.6 | — | 2,593.6 | ||||||||||||||||||||||||||||||||||||||||||
| Municipal bonds | — | 14.5 | 14.5 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Agency securities | — | 1,497.6 | — | 1,497.6 | — | 977.2 | — | 977.2 | ||||||||||||||||||||||||||||||||||||||||||
| 2,854.3 | 5,924.8 | — | 8,779.1 | 1,921.5 | 3,619.6 | — | 5,541.1 | |||||||||||||||||||||||||||||||||||||||||||
| Other Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market funds - restricted cash | 1.4 | — | — | 1.4 | 1.4 | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||||
| Total Financial Assets | $ | 4,155.4 | $ | 5,961.2 | $ | — | $ | 10,116.6 | $ | 3,661.8 | $ | 3,622.6 | $ | — | $ | 7,284.4 | ||||||||||||||||||||||||||||||||||
During the year ended on December 31, 2025, the Company did not make any transfers between the levels of the fair value hierarchy.
The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in millions):
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
| Commercial paper | $ | 112.8 | $ | — | $ | — | $ | 112.8 | $ | 48.8 | $ | — | $ | — | $ | 48.8 | ||||||||||||||||||||||||||||||||||
| U.S. government | 2,970.4 | 8.8 | — | 2,979.2 | 1,954.8 | 2.7 | (4.6) | 1,952.9 | ||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds | 4,321.2 | 16.0 | (0.9) | 4,336.3 | 2,595.7 | 4.4 | (6.5) | 2,593.6 | ||||||||||||||||||||||||||||||||||||||||||
| Municipal bonds | 14.5 | — | — | 14.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Agency securities | 1,495.5 | 2.7 | (0.6) | 1,497.6 | 981.0 | 1.6 | (2.4) | 980.2 | ||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 8,914.4 | $ | 27.5 | $ | (1.5) | $ | 8,940.4 | $ | 5,580.3 | $ | 8.7 | $ | (13.5) | $ | 5,575.5 | ||||||||||||||||||||||||||||||||||
For debt securities in unrealized loss positions, it is not likely that we will be required to sell such securities before recovery of their amortized cost basis nor do we have the intent to sell such securities before maturity; we invest in debt securities that have maximum maturities of three years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. Given the short-term and conservative nature of our portfolio, our debt securities are exposed to minimal credit risk; therefore, we did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable debt securities for the years ended 2025, 2024 and 2023. All unrealized losses were recognized in other comprehensive income (loss). Realized gains or losses were immaterial for the years ended 2025, 2024 and 2023.
The following table is an analysis of our debt securities in unrealized loss positions (in millions):
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Unrealized Losses within 12 months | Unrealized Losses 12 months or greater | Total | ||||||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||
| Commercial paper | $ | 9.9 | $ | — | $ | — | $ | — | $ | 9.9 | $ | — | ||||||||||||||||||||||||||
| U.S. government notes | 260.8 | $ | — | 15.0 | — | 275.8 | — | |||||||||||||||||||||||||||||||
| Corporate bonds | 857.7 | (0.9) | 29.9 | — | 887.6 | (0.9) | ||||||||||||||||||||||||||||||||
| Municipal bonds | 4.7 | — | — | — | 4.7 | — | ||||||||||||||||||||||||||||||||
| Agency securities | 473.1 | (0.6) | — | — | 473.1 | (0.6) | ||||||||||||||||||||||||||||||||
| Total | $ | 1,606.2 | $ | (1.5) | $ | 44.9 | $ | — | $ | 1,651.1 | $ | (1.5) | ||||||||||||||||||||||||||
As of December 31, 2025, we had no marketable debt securities with contractual maturities that exceed 36 months. The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in millions):
| December 31, 2025 | ||||||||
| Due in 1 year or less | $ | 3,267.4 | ||||||
| Due in 1 year through 3 years | 5,511.7 | |||||||
| Total marketable securities | $ | 8,779.1 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 25, 2016 | |
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.