7. Fair Value of Financial Instruments

The following table provides a summary of financial assets measured at fair value on a recurring basis:

 

 

Fair Value at

 

 

 

 

 

 

 

 

 

 

Description

 

December 31,
2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Recurring Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

50,247

 

 

$

50,247

 

 

$

 

 

$

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

274,152

 

 

 

274,152

 

 

 

 

 

 

 

Certificate of deposit

 

 

6,121

 

 

 

6,121

 

 

 

 

 

 

 

U.S. government agency securities

 

 

7,521

 

 

 

 

 

 

7,521

 

 

 

 

Corporate debt securities

 

 

61,100

 

 

 

 

 

 

61,100

 

 

 

 

Commercial paper

 

 

4,314

 

 

 

 

 

 

4,314

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

71,918

 

 

 

71,918

 

 

 

 

 

 

 

U.S. government agency securities

 

 

9,542

 

 

 

 

 

 

9,542

 

 

 

 

Corporate debt securities

 

 

28,675

 

 

 

 

 

 

28,675

 

 

 

 

Other assets and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Investment in former related party

 

 

656

 

 

 

656

 

 

 

 

 

 

 

Total assets measured at fair value

 

$

514,246

 

 

$

403,094

 

 

$

111,152

 

 

$

 

 

 

Fair Value at

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

Description

 

2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Recurring Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

19,742

 

 

$

19,742

 

 

$

 

 

$

 

Corporate debt securities

 

 

2,204

 

 

 

 

 

 

2,204

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

186,552

 

 

 

186,552

 

 

 

 

 

 

 

U.S. government agency securities

 

 

3,928

 

 

 

 

 

 

3,928

 

 

 

 

Corporate debt securities

 

 

61,969

 

 

 

 

 

 

61,969

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

70,850

 

 

 

70,850

 

 

 

 

 

 

 

U.S. government agency securities

 

 

3,015

 

 

 

 

 

 

3,015

 

 

 

 

Corporate debt securities

 

 

7,863

 

 

 

 

 

 

7,863

 

 

 

 

Other assets and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Investment in former related party

 

 

148

 

 

 

148

 

 

 

 

 

 

 

Total assets measured at fair value

 

$

356,271

 

 

$

277,292

 

 

$

78,979

 

 

$

 

 

There were no transfers between levels for the years ended December 31, 2025 or 2024. The weighted-average maturity of the securities held at December 31, 2025 was less than 12 months.

As of December 31, 2024, marketable securities within the corporate debt securities line item included both commercial paper and corporate debt securities. Commercial paper held at December 31, 2024 was classified as short-term securities and classified within Level 2 of the fair value hierarchy.

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 11, 2025
2023Mar 21, 2024
2022Mar 23, 2023
2021Mar 8, 2022
2020Mar 3, 2021
2019Mar 3, 2020
2018Mar 19, 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.