4. Fair Value Measurement

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the fair value hierarchy classification of such fair values as of December 31, 2025 and 2024 (in thousands):

 

 

Fair Value Measurements at

 

 

 

December 31, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

295,412

 

 

$

295,412

 

 

$

 

 

$

 

Money market funds

 

 

37,255

 

 

 

37,255

 

 

 

 

 

 

 

Commercial paper

 

 

14,892

 

 

 

 

 

 

14,892

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

1,155,965

 

 

 

 

 

 

1,155,965

 

 

 

 

Certificates of deposit

 

 

101,100

 

 

 

 

 

 

101,100

 

 

 

 

Government-sponsored enterprise securities

 

 

305,298

 

 

 

 

 

 

305,298

 

 

 

 

Commercial paper

 

 

49,460

 

 

 

 

 

 

49,460

 

 

 

 

Corporate equity securities

 

 

16,446

 

 

 

 

 

 

16,446

 

 

 

 

Total

 

$

1,975,828

 

 

$

332,667

 

 

$

1,643,161

 

 

$

 

 

 

 

Fair Value Measurements at

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

193,958

 

 

$

193,958

 

 

$

 

 

$

 

Money market funds

 

 

74,155

 

 

 

74,155

 

 

 

 

 

 

 

Corporate debt securities

 

 

882

 

 

 

 

 

 

882

 

 

 

 

U.S. Treasury securities

 

 

29,262

 

 

 

 

 

 

29,262

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

5,938

 

 

 

 

 

 

5,938

 

 

 

 

Corporate debt securities

 

 

1,138,105

 

 

 

 

 

 

1,138,105

 

 

 

 

Certificates of deposit

 

 

52,372

 

 

 

 

 

 

52,372

 

 

 

 

Government-sponsored enterprise securities

 

 

266,862

 

 

 

 

 

 

266,862

 

 

 

 

Commercial paper

 

 

127,800

 

 

 

 

 

 

127,800

 

 

 

 

Corporate equity securities

 

 

14,492

 

 

 

2,391

 

 

 

12,101

 

 

 

 

Total

 

$

1,903,826

 

 

$

270,504

 

 

$

1,633,322

 

 

$

 

Marketable securities classified as Level 1 within the valuation hierarchy consist of corporate equity securities with quoted prices in active markets. Marketable securities classified as Level 2 within the valuation hierarchy generally consist of U.S. Treasury securities and government agency securities, corporate bonds, commercial paper and warrants to purchase common shares of publicly traded companies. The Company estimates the fair values of these marketable securities by taking into consideration valuations obtained from third-party pricing sources.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 11, 2025
2023Feb 21, 2024
2022Feb 21, 2023
2021Feb 15, 2022
2020Feb 16, 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.