Note 3. Fair Value Measurements

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of December 31, 2025 and 2024 (in thousands):

 

 

 

Fair Value Measurements at
December 31, 2025:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

299,067

 

 

$

 

 

$

 

 

$

299,067

 

Commercial Paper

 

 

 

 

 

16,616

 

 

 

 

 

 

16,616

 

Corporate bonds

 

 

 

 

 

14,355

 

 

 

 

 

 

14,355

 

Marketable securities, current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

157,069

 

 

 

 

 

 

 

 

 

157,069

 

US government agencies

 

 

 

 

 

126,290

 

 

 

 

 

 

126,290

 

Commercial Paper

 

 

 

 

 

7,155

 

 

 

 

 

 

7,155

 

Corporate bonds

 

 

 

 

 

200,750

 

 

 

 

 

 

200,750

 

Marketable securities, non-current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

160,500

 

 

 

 

 

 

 

 

 

160,500

 

US government agencies

 

 

 

 

 

164,618

 

 

 

 

 

 

164,618

 

Corporate bonds

 

 

 

 

 

446,041

 

 

 

 

 

 

446,041

 

Restricted cash

 

 

5,800

 

 

 

 

 

 

 

 

 

5,800

 

Total

 

$

622,436

 

 

$

975,825

 

 

$

 

 

$

1,598,261

 

 

 

 

 

Fair Value Measurements at
December 31, 2024:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

106,234

 

 

$

 

 

$

 

 

$

106,234

 

US treasuries

 

 

1,497

 

 

 

 

 

 

 

 

 

1,497

 

US government agencies

 

 

 

 

 

9,925

 

 

 

 

 

 

9,925

 

Marketable securities, current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

96,442

 

 

 

 

 

 

 

 

 

96,442

 

US government agencies

 

 

 

 

 

42,068

 

 

 

 

 

 

42,068

 

Commercial Paper

 

 

 

 

 

15,851

 

 

 

 

 

 

15,851

 

Corporate bonds

 

 

 

 

 

214,127

 

 

 

 

 

 

214,127

 

Marketable securities, non-current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

62,022

 

 

 

 

 

 

 

 

 

62,022

 

US government agencies

 

 

 

 

 

135,749

 

 

 

 

 

 

135,749

 

Corporate bonds

 

 

 

 

 

164,388

 

 

 

 

 

 

164,388

 

Restricted cash

 

 

5,794

 

 

 

 

 

 

 

 

 

5,794

 

Total

 

$

271,989

 

 

$

582,108

 

 

$

 

 

$

854,097

 

 

During the years ended December 31, 2025 and 2024, there were no transfers in or out of Level 3.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 11, 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.