4.
Fair Value Measurements

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a reoccurring basis and indicates the level of fair value hierarchy utilized to determine such values (in thousands):

 

 

AS OF DECEMBER 31, 2025

 

 

LEVEL 1

 

 

LEVEL 2

 

 

LEVEL 3

 

 

TOTAL

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

86,669

 

 

$

 

 

$

 

 

$

86,669

 

U.S. treasury securities

 

 

5,903

 

 

 

 

 

 

 

 

 

5,903

 

Commercial paper

 

 

 

 

 

26,428

 

 

 

 

 

 

26,428

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

350,157

 

 

 

 

 

 

 

 

 

350,157

 

Debt securities issued by U.S. government agencies

 

 

 

 

 

142,716

 

 

 

 

 

 

142,716

 

Commercial paper

 

 

 

 

 

69,556

 

 

 

 

 

 

69,556

 

Corporate debt securities

 

 

 

 

 

208,944

 

 

 

 

 

 

208,944

 

Total

 

$

442,729

 

 

$

447,644

 

 

$

 

 

$

890,373

 

 

 

AS OF DECEMBER 31, 2024

 

 

LEVEL 1

 

 

LEVEL 2

 

 

LEVEL 3

 

 

TOTAL

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

132,491

 

 

$

 

 

$

 

 

$

132,491

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

248,935

 

 

 

 

 

 

 

 

 

248,935

 

Debt securities issued by U.S. government agencies

 

 

 

 

 

218,696

 

 

 

 

 

 

218,696

 

Commercial paper

 

 

 

 

 

35,557

 

 

 

 

 

 

35,557

 

Corporate debt securities

 

 

 

 

 

86,092

 

 

 

 

 

 

86,092

 

Total

 

$

381,426

 

 

$

340,345

 

 

$

 

 

$

721,771

 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025
2023Mar 5, 2024

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.