Joby Aviation, Inc.JOBY
Joby Aviation, Inc. Fair Value Disclosure
Fair Value Measurements
The fair value of the Earnout Shares Liability and Common stock warrant liabilities (Delta) (see Note 8) and EBITDA Earnout liability (see Note 4) are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.
Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:
•Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;
•Level 2 - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
•Level 3 - Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
The Company’s financial assets consist of Level 1 and 2 assets. The Company classifies its cash equivalents and marketable debt securities within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The Company’s fixed income available-for-
sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of the Company’s marketable debt securities were derived from non-binding market consensus prices that are corroborated by observable market data and quoted market prices for similar instruments.
The Company’s financial liabilities measured at fair value on a recurring basis consist of Level 1, Level 2 and Level 3 liabilities. The Company’s Public Warrants (as defined in Note 8) are classified as Level 1 because they are directly observable in the market. The Company classifies the Private Placement Warrants (as defined in Note 8) within Level 2, because they were valued using inputs other than quoted prices which are directly observable in the market, including readily available pricing for the Company’s Public Warrants. The Company classifies Delta Warrant, Earnout Shares Liability (as defined in Note 8) and EBITDA Earnout liability (as defined in Note 4) within Level 3, because they were valued using unobservable inputs that are significant to the fair value measurement. The Delta Warrant, Earnout Shares Liability and EBITDA Earnout liability are measured at fair value on a recurring basis. Changes in fair value of Level 3 liabilities are recorded in total other income (loss), net, in the consolidated statements of operations.
The following tables set forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands):
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets measured at fair value | |||||||||||||||||||||||
| Money market funds | $ | 218,080 | $ | — | $ | — | $ | 218,080 | |||||||||||||||
| Cash equivalents | $ | 218,080 | $ | — | $ | — | $ | 218,080 | |||||||||||||||
| Term deposits | $ | — | $ | 30,937 | $ | — | $ | 30,937 | |||||||||||||||
| Asset backed securities | — | 94,183 | — | 94,183 | |||||||||||||||||||
| Government debt securities | — | 641,172 | — | 641,172 | |||||||||||||||||||
| Corporate debt securities | — | 400,814 | — | 400,814 | |||||||||||||||||||
| Available-for-sale investments | — | 1,167,106 | — | 1,167,106 | |||||||||||||||||||
| Total fair value of assets | $ | 218,080 | $ | 1,167,106 | $ | — | $ | 1,385,186 | |||||||||||||||
| Liabilities measured at fair value | |||||||||||||||||||||||
| Common stock warrant liabilities (Public) | $ | 56,392 | $ | — | $ | — | $ | 56,392 | |||||||||||||||
| Common stock warrant liabilities (Delta) | — | — | 48,486 | 48,486 | |||||||||||||||||||
| Warrant liability | 56,392 | — | 48,486 | 104,878 | |||||||||||||||||||
| Earnout Shares Liability | — | — | 156,692 | 156,692 | |||||||||||||||||||
| EBITDA Earnout Liability | $ | — | $ | — | $ | 13,424 | $ | 13,424 | |||||||||||||||
| Total fair value of liabilities | $ | 56,392 | $ | — | $ | 218,602 | $ | 274,994 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets measured at fair value | |||||||||||||||||||||||
| Money market funds | $ | 178,383 | $ | — | $ | — | $ | 178,383 | |||||||||||||||
| Cash equivalents | $ | 178,383 | $ | — | $ | — | $ | 178,383 | |||||||||||||||
| Term deposits | — | 31,179 | — | 31,179 | |||||||||||||||||||
| Asset backed securities | — | 98,412 | — | 98,412 | |||||||||||||||||||
| Government debt securities | — | 206,945 | — | 206,945 | |||||||||||||||||||
| Corporate debt securities | — | 396,688 | — | 396,688 | |||||||||||||||||||
| Available-for-sale investments | — | 733,224 | — | 733,224 | |||||||||||||||||||
| Total fair value of assets | $ | 178,383 | $ | 733,224 | $ | — | $ | 911,607 | |||||||||||||||
| Liabilities measured at fair value | |||||||||||||||||||||||
| Common stock warrant liabilities (Public) | $ | 34,843 | $ | — | $ | — | $ | 34,843 | |||||||||||||||
| Common stock warrant liabilities (Private) | — | 23,296 | — | 23,296 | |||||||||||||||||||
| Common stock warrant liabilities (Delta) | — | — | 37,271 | 37,271 | |||||||||||||||||||
| Warrant liability | 34,843 | 23,296 | 37,271 | 95,410 | |||||||||||||||||||
| Earnout Shares Liability | — | — | 117,416 | 117,416 | |||||||||||||||||||
| Total fair value of liabilities | $ | 34,843 | $ | 23,296 | $ | 154,687 | $ | 212,826 | |||||||||||||||
The following is a summary of the Company’s available-for-sale securities (in thousands):
| December 31, 2025 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Allowance for credit losses | Fair value | |||||||||||||||||||||||||
| Assets measured at fair value | |||||||||||||||||||||||||||||
| Term deposits | $ | 30,937 | $ | — | $ | — | $ | — | $ | 30,937 | |||||||||||||||||||
| Asset backed securities | 93,990 | 193 | — | — | 94,183 | ||||||||||||||||||||||||
| Government debt securities | 640,270 | 902 | — | — | 641,172 | ||||||||||||||||||||||||
| Corporate debt securities | 400,231 | 592 | (9) | — | 400,814 | ||||||||||||||||||||||||
| Total | $ | 1,165,428 | $ | 1,687 | $ | (9) | $ | — | $ | 1,167,106 | |||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Allowance for credit losses | Fair Value | |||||||||||||||||||||||||
| Term deposits | $ | 31,179 | $ | — | $ | — | $ | — | $ | 31,179 | |||||||||||||||||||
| Asset backed securities | 98,277 | 135 | — | — | 98,412 | ||||||||||||||||||||||||
| Government debt securities | 206,779 | 166 | — | — | 206,945 | ||||||||||||||||||||||||
| Corporate debt securities | 396,410 | 352 | (74) | — | 396,688 | ||||||||||||||||||||||||
| Total | $ | 732,645 | $ | 653 | $ | (74) | $ | — | $ | 733,224 | |||||||||||||||||||
The weighted-average remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous significant unrealized losses for greater than 12 months. There were no transfers between Level 1, Level 2 or Level 3 financial instruments in the years ended December 31, 2025 and 2024.
The following table sets forth a summary of the change in the fair value, which is recognized as a component of total other loss, net within the consolidated statement of operations, of the Company’s Level 3 financial liabilities (in thousands):
| Earnout Shares Liability | Common stock warrant liabilities (Delta) | EBITDA Earnout Liability | |||||||||||||||
| Fair value as of January 1, 2025 | $ | 117,416 | $ | 37,271 | $ | — | |||||||||||
| Issuance (Settlement) of liability | (60,709) | — | 7,631 | ||||||||||||||
| 99,985 | 17,008 | 5,793 | |||||||||||||||
| Fair value as of December 31 2025 | $ | 156,692 | $ | 54,279 | $ | 13,424 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 28, 2022 | |
| 2020 | Mar 3, 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.