3. Fair Value Measurements

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 equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

197,533

 

 

$

197,533

 

 

$

 

 

$

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government agency securities

 

 

3,501

 

 

 

 

 

 

3,501

 

 

 

 

Corporate bonds

 

 

151,272

 

 

 

 

 

 

151,272

 

 

 

 

Total

 

$

352,306

 

 

$

197,533

 

 

$

154,773

 

 

$

 

 

 

Fair Value Measurements at
December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

45,722

 

 

$

45,722

 

 

$

 

 

$

 

U.S. Treasury securities

 

 

12,490

 

 

 

 

 

 

12,490

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

2,496

 

 

 

 

 

 

2,496

 

 

 

 

Government agency securities

 

 

11,282

 

 

 

 

 

 

11,282

 

 

 

 

Corporate bonds

 

 

169,031

 

 

 

 

 

 

169,031

 

 

 

 

Total

 

$

241,021

 

 

$

45,722

 

 

$

195,299

 

 

$

 

 

There were no transfers between fair value levels during the years ended December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Mar 9, 2023
2021Mar 3, 2022
2020Mar 4, 2021
2019Mar 5, 2020

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.