Fair Value Measurements
The following table details the assets carried at fair value and measured on a recurring basis within the three levels of fair value as of December 31, 2025 and 2024:
(in thousands)Gross UnrealizedReported as:
December 31, 2025
Amortized CostGainsLossesFair Value
Cash equivalents
Short-term investmentsLong-term investments
Level 1
Mutual funds$1,528 $— $— $1,528 $1,528 $— $— 
U.S. treasury securities90,066 208 — 90,274 — 49,489 40,785 
Total Level 191,594 208 — 91,802 1,528 49,489 40,785 
Level 2
Commercial paper15,321 (1)15,321 10,379 4,942 — 
Corporate debt securities1,668 — 1,669 — 1,669 — 
Agency securities
46,838 46 (12)46,872 — 34,918 11,954 
Total Level 263,827 48 (13)63,862 10,379 41,529 11,954 
Total Level 1 and Level 2$155,421 $256 $(13)$155,664 $11,907 $91,018 $52,739 
(in thousands)Gross UnrealizedReported as:
December 31, 2024
Amortized CostGainsLossesFair Value
Cash equivalents
Short-term investmentsLong-term investments
Level 1
Mutual funds$521 $— $— $521 $521 $— $— 
U.S. treasury securities
68,529 138 (111)68,556 — 25,836 42,720 
Total Level 169,050 138 (111)69,077 521 25,836 42,720 
Level 2
Commercial paper30,881 (6)30,878 26,924 3,954 — 
Agency securities
106,109 210 (177)106,142 — 72,457 33,685 
Total Level 2136,990 213 (183)137,020 26,924 76,411 33,685 
Total Level 1 and Level 2$206,040 $351 $(294)$206,097 $27,445 $102,247 $76,405 

Short-term investments have a contractual maturity date that is one year or less from the respective balance sheet date. Long-term investments have a contractual maturity date that is more than one year, but less than two years from the respective balance sheet date.
The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2025 are as follows:
(in thousands)Securities in Unrealized Loss Position Less than 12 monthsSecurities in Unrealized Loss Position Greater than 12 monthsTotal
December 31, 2025
Gross Unrealized LossesFair Market ValueGross Unrealized LossesFair Market ValueGross Unrealized LossesFair Market Value
U.S. treasury securities$— $998 $— $2,999 $— $3,997 
Commercial paper(1)8,389 — — (1)8,389 
Agency securities
(7)10,457 (5)9,186 (12)19,643 
Total$(8)$19,844 $(5)$12,185 $(13)$32,029 
The Company reviewed its investment portfolio based on the underlying risk profile of the securities and have no loss expectation for these investments. The Company reviewed the securities in an unrealized loss position and evaluated the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The Company recognized no credit losses during the years ended December 31, 2025 and 2024, and had no allowance for credit losses as of December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 30, 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.