Fair Value Measurements
The following table represents the estimated fair value of the Company’s financial assets and liabilities (in thousands):
Fair Value at December 31, 2025Fair Value at December 31, 2024
Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Money market funds (1)
$128,152 $— $$287,393 $$
Government-backed securities (1)
90,000 130,000 
Treasury securities
220,299 184,554 
Corporate debt securities (2)
260,154 243,158 
Agency securities
13,997 
Total
$128,152 $584,450 $— $287,393 $557,712 $
Liabilities
5.00% Convertible notes due 2027
$$28,313 $$$174,386 $
4.625% Convertible notes due 2031
221,967 
Total Convertible notes payable
$$250,280 $$$174,386 $
(1)Classified as cash and cash equivalents as of December 31, 2025 and 2024.
(2)     Includes $34.8 million classified as cash and cash equivalents as of December 31, 2024.
Fixed-income investments categorized as Level 2 are valued at the custodian bank by a third-party pricing vendor’s valuation models that use verifiable observable market data, such as interest rates and yield curves observable at commonly quoted intervals and credit spreads, bids provided by brokers or dealers, or quoted prices of securities with similar
characteristics. Pricing of the Company’s convertible notes has been estimated using observable inputs, including the price of the Company’s common stock, implied volatility, interest rates, and credit spreads.
During the years ended December 31, 2025 and 2024, the Company did not have any transfers between Levels.
The amount in the Company’s consolidated balance sheets for accounts payable and accrued expenses approximates its fair value due to its short-term nature.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 11, 2020
2018Mar 18, 2019
2017Mar 14, 2018
2016Feb 27, 2017
2015Feb 29, 2016

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.