Fair Value Measurements and Fair Value of Financial Instruments
The following tables set forth our financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2025 and 2024:
December 31, 2025
Fair Value
Hierarchy Level
Amortized
Cost
Gross
Unrealized Gains
Gross
Unrealized Losses
Fair
Value
Assets(in thousands)
Cash and cash equivalents:
CashLevel 1$85,417 $— $— $85,417 
Money market fundsLevel 152,302 — — 52,302 
U.S. Treasury securities
Level 1
— — — — 
Commercial paperLevel 236,245 — (5)36,240 
Total cash and cash equivalents173,964 — (5)173,959 
Investments:
U.S. Treasury securitiesLevel 1945,072 1,969 (40)947,001 
Commercial paperLevel 228,763 — 28,766 
Corporate debtLevel 2897,564 2,862 (30)900,396 
Asset backed securitiesLevel 2152,164 249 (27)152,386 
U.S. government agency securitiesLevel 2219,854 289 (28)220,115 
Certificate of DepositLevel 220,000 — — 20,000 
Total investments2,263,417 5,372 (125)2,268,664 
     
Total assets measured at fair value$2,437,381 $5,372 $(130)$2,442,623 
December 31, 2024
 Fair Value
Hierarchy Level
Amortized
Cost
Gross
Unrealized Gains
Gross
Unrealized Losses
Fair
Value
Assets(in thousands)
Cash and cash equivalents:
CashLevel 1$60,531 $— $— $60,531 
Money market fundsLevel 173,566 — — 73,566 
U.S. Treasury securities
Level 1
8,983 — — 8,985 
Commercial paperLevel 2244,833 (38)244,796 
Total cash and cash equivalents387,913 (38)387,878 
Investments:
U.S. Treasury securitiesLevel 11,463,329 1,533 (5,305)1,459,557 
Commercial paperLevel 2182,308 48 (18)182,338 
Corporate debtLevel 2691,972 888 (1,331)691,529 
Asset backed securitiesLevel 2195,801 309 (72)196,038 
U.S. government agency securitiesLevel 2217,617 243 (482)217,378 
Total investments2,751,027 3,021 (7,208)2,746,840 
Total assets measured at fair value$3,138,940 $3,024 $(7,246)$3,134,718 
We had no Level 3 securities either as of December 31, 2025 or 2024.
There were no transfers within the hierarchies during the years ended December 31, 2025 or 2024.
As of December 31, 2025 and 2024, we had investments with a total fair market value of $0.3 billion and $1.5 billion in an unrealized loss position, of which $120.2 million and $10.5 million, respectively, were in a continuous unrealized loss position for more than 12 months. The gross unrealized losses of securities that have been in a continuous unrealized loss position were not material at December 31, 2025 or $7.2 million at December 31, 2024.
Unrealized losses related to our investments are primarily due to interest rate fluctuations as opposed to credit quality. We do not intend to sell any of the securities in an unrealized loss position and it is not likely that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. We did not recognize any credit losses related to our investments during the years ended December 31, 2025 or 2024.
The following table presents the contractual maturities of our investments as of December 31, 2025 (in thousands):
December 31, 2025
Fair Value
Due in less than one year$1,387,000 
Due in one to five years881,664 
Total$2,268,664 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 27, 2023
2021Feb 28, 2022
2020Mar 29, 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.