3. FAIR VALUE MEASUREMENT

The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs as of December 31, 2025 and 2024, as indicated (in thousands): 
 
Fair Value Measurements at December 31, 2025
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$22,717 $22,717 $— $— 
Equity securities, at fair value26,903 9,828 — 17,075 
Available-for-sale debt securities (1)18,417 — — 18,417 
Debt securities, at fair value (1)23,977 — 23,977 — 
Total assets$92,014 $32,545 $23,977 $35,492 
Liabilities:    
Loan commitments, at fair value (2)$2,766 $— $— $2,766 
Total liabilities$2,766 $— $— $2,766 
 
 
Fair Value Measurements at December 31, 2024
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$21,799 $21,799 $— $— 
Equity securities, at fair value21,640 — — 21,640 
Available-for-sale debt securities (1)10,985 — — 10,985 
Debt securities, at fair value (1)14,814 — — 14,814 
Total assets$69,238 $21,799 $— $47,439 
 ___________________________________________
(1)    Included in Other long-term assets, net in the consolidated balance sheets.
(2)    Included in Other long-term liabilities in the consolidated balance sheets.

The following table provides activity for our Level 3 investments during the periods presented (in thousands):
Amount
Level 3 investments at December 31, 2023
$51,530 
Increase due to purchases of Level 3 investments17,000 
Decrease in fair value of Level 3 investments(21,836)
Accrued interest on Level 3 investments745 
Level 3 investments at December 31, 2024
47,439 
Increase due to purchases of Level 3 investments16,266 
Transfers out of Level 3 investments(20,046)
Decrease in fair value of Level 3 investments(8,711)
Accrued interest, net on Level 3 investments544 
Level 3 investments at December 31, 2025
$35,492 
During the year ended December 31, 2025, there were $12.4 million of debt securities carried at fair value transferred from Level 3 to Level 2 due to significant observable inputs used in determining the fair value of these debt securities. Further, during the year ended December 31, 2025, there were $7.5 million of debt securities carried at fair value transferred from Level 3 to Level 1 due to the conversion of the $8.5 million convertible promissory note in TBHC into shares of TBHC common stock.
The following table provides activity for the Company's Level 3 liabilities (in thousands):
Amount
Level 3 liabilities at December 31, 2024
$— 
Fair value of Level 3 liabilities assumed2,766 
Level 3 liabilities at December 31, 2025
$2,766 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021

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.