OPKO HEALTH, INC. Fair Value Disclosure
Note 19 Fair Value Measurements
We record fair values at an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. We utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
As of December 31, 2025, our financial assets measured at fair value included equity securities, forward foreign currency exchange contracts for inventory purchases (refer to Note 20), options related to our BioCardia investment and consulting agreement (recorded at fair value), warrants from COCP, and restricted cash collateralized by money market funds, the latter being measured at fair value as a Level 1 financial instrument.
Our financial assets and liabilities measured at fair value on a recurring basis are as follows:
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Fair value measurements as of December 31, 2025 |
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Quoted prices |
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Significant |
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in active |
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other |
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Significant |
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markets for |
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observable |
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unobservable |
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identical assets |
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inputs |
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inputs |
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(In thousands) |
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(Level 1) |
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(Level 2) |
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(Level 3) |
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Total |
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Assets: |
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Money market funds |
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$ |
230,625 |
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$ |
— |
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$ |
— |
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|
$ |
230,625 |
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Equity securities |
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9,268 |
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— |
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— |
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9,268 |
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— |
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3 |
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|
|
— |
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|
3 |
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Total assets |
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$ |
239,893 |
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$ |
3 |
|
|
$ |
— |
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|
$ |
239,896 |
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Liabilities: |
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||||
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— |
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|
230 |
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|
|
— |
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|
|
230 |
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Total liabilities |
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$ |
— |
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|
$ |
230 |
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|
$ |
— |
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|
$ |
230 |
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Fair value measurements as of December 31, 2024 |
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Quoted prices |
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Significant |
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in active |
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other |
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Significant |
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markets for |
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observable |
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unobservable |
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identical assets |
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inputs |
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inputs |
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(In thousands) |
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(Level 1) |
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(Level 2) |
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(Level 3) |
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Total |
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Assets: |
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Money market funds |
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$ |
282,121 |
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|
$ |
— |
|
|
$ |
— |
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|
$ |
282,121 |
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Equity securities |
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|
49,655 |
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|
|
— |
|
|
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— |
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49,655 |
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Common stock options/warrants |
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— |
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3 |
|
|
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— |
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|
3 |
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Total assets |
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$ |
331,776 |
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|
$ |
3 |
|
|
$ |
— |
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|
$ |
331,779 |
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The table below presents the carrying amount, estimated fair value, and applicable fair value hierarchy tiers for our 2029 Convertible Notes. The fair value for these notes is determined using directly observable inputs other than quoted prices in active markets.
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December 31, 2025 |
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Carrying |
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Total |
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(In thousands) |
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Value |
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Fair Value |
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Level 1 |
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Level 2 |
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Level 3 |
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2029 Convertible Notes |
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$ |
84,970 |
|
|
$ |
182,007 |
|
|
$ |
— |
|
|
$ |
182,007 |
|
|
$ |
— |
|
There have been no transfers between Level 1 and Level 2 and no transfers to or from Level 3 of the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 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.