Fair Value Measurements
The following table summarizes the fair value of our money market fund financial assets and contingent consideration financial liabilities that were measured on a recurring basis as of December 31, 2025 and 2024. See Note 3. Acquisitions, Note 8. Accrued Liabilities and Other and Note 15. Commitments and Contingencies for additional information regarding our contingent consideration liabilities. There have been no transfers between fair value measurement levels during the years ended December 31, 2025 and 2024.
Fair Value Measurements at
December 31, 2025 Using
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in thousands)
Assets:
Money market funds$68,205 $— $— $68,205 
Liabilities:
Contingent consideration$— $— $10,840 $10,840 
Fair Value Measurements at
December 31, 2024 Using
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in thousands)
Assets:
Money market funds$43,976 $— $— $43,976 
Liabilities:
Contingent consideration$— $— $14,050 $14,050 
The following table presents a summary of the changes in the fair value of our contingent consideration liabilities measured using Level 3 inputs:
(in thousands)
Balance as of December 31, 2023$3,650 
Acquisitions 16,620 
Net gain recognized(6,220)
Balance as of December 31, 2024$14,050 
Payments(5,358)
Net expense recognized2,148 
Balance as of December 31, 2025$10,840 
As of December 31, 2025 and 2024, the carrying value of our outstanding debt approximates its estimated fair value as the interest rate on the debt is adjusted for changes in market rates. See Note 9. Debt for additional information regarding our debt.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 7, 2025
2023Feb 29, 2024
2022Mar 14, 2023

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.