Fair Value Measurements
The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis:
December 31, 2025
Level 1Level 2Level 3Total Fair Value
Cash equivalents
U.S. treasury bills$292,381 $— $— $292,381 
Money market funds96,042 — — 96,042 
Commercial paper
— 41,450 — 41,450 
Certificates of deposit
— 35,213 — 35,213 
Corporate debt securities
— 16,059 — 16,059 
Short-term investments
U.S. treasury securities56,087 — — 56,087 
Asset-backed securities— 6,396 — 6,396 
Restricted cash
Money market funds45,786 — — 45,786 
Total assets measured at fair value$490,296 $99,118 $— $589,414 
December 31, 2024
Level 1Level 2Level 3Total Fair Value
Cash equivalents
Money market funds$458,195 $— $— $458,195 
U.S. treasury bills214,189 — — 214,189 
Corporate debt securities— 53,238 — 53,238 
Certificates of deposit— 25,779 — 25,779 
Commercial paper— 8,028 — 8,028 
Short-term investments
U.S. treasury securities168,900 — — 168,900 
Asset-backed securities— 10,509 — 10,509 
Total assets measured at fair value$841,284 $97,554 $— $938,838 
The Company classifies money market funds, U.S. treasury bills, U.S. treasury securities, U.S. agency securities, asset-backed securities, certificates of deposit, commercial paper and corporate debt securities within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
There were no transfers of financial instruments between the fair value hierarchy levels during the years ended December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Mar 11, 2022

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.