Fair Value Measurements
The following table summarizes assets measured at fair value on a recurring basis:
As of December 31
20252024
(In thousands)
Cash equivalents: money-market funds (<90 days)
$71,987 $4,095 
Cash equivalents: U.S. Treasuries (<90 days)
20,506 22,504 
Available-for-sale securities: U.S. Treasuries (1)
19,985 69,419 
Total$112,478 $96,018 
_________________________
(1)Included in short-term investments on the consolidated balance sheets.

Our short-term investments in cash equivalents and marketable securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. As of December 31, 2025 and 2024, assets and liabilities measured as Level 2 fair value were not material.

Our long-term investment in a privately held company is classified within Level 3 of the fair value hierarchy. As of December 31, 2025, the carrying value of our strategic equity investment was $12.5 million. There was no observable price change or impairment during the year ended December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Mar 7, 2023
2021Mar 2, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 22, 2019

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.