3.
FAIR VALUE Measurements

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

 

 

December 31, 2025

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (cash equivalents)

 

$

61,646

 

 

$

61,646

 

 

$

 

 

$

 

Marketable securities (cash equivalents)

 

 

12,466

 

 

 

12,466

 

 

 

 

 

 

 

Marketable securities

 

 

298,416

 

 

 

287,443

 

 

 

10,973

 

 

 

 

Total financial assets measured at fair value

 

$

372,528

 

 

$

361,555

 

 

$

10,973

 

 

$

 

 

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (cash equivalents)

 

$

37,989

 

 

$

37,989

 

 

$

 

 

$

 

Marketable securities (cash equivalents)

 

 

9,990

 

 

 

4,997

 

 

 

4,993

 

 

 

 

Marketable securities

 

 

212,798

 

 

 

204,385

 

 

 

8,413

 

 

 

 

Total financial assets measured at fair value

 

$

260,777

 

 

$

247,371

 

 

$

13,406

 

 

$

 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 17, 2025

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.