FAIR VALUE OF FINANCIAL INSTRUMENTS
As of December 31, 2025 and 2024, the following financial assets and liabilities are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows:
December 31, 2025
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market accounts$741,498 $— $— $741,498 
Certificates of deposit— 1,556 — 1,556 
Marketable securities, current:
Certificates of deposit— 9,294 — 9,294 
Commercial paper— 27,776 — 27,776 
Corporate debt securities— 103,077 — 103,077 
Yankee bonds— 5,351 — 5,351 
U.S. Treasury securities40,576 — — 40,576 
Asset-backed securities— 1,843 — 1,843 
Marketable securities, non-current
Certificates of deposit— 2,327 — 2,327 
Corporate debt securities— 33,509 — 33,509 
U.S. Treasury securities8,492 — — 8,492 
Asset-backed securities— 37,919 — 37,919 
Total$790,566 $222,652 $— $1,013,218 
Liabilities:
Other non-current liabilities:
Contingent consideration$— $— $7,634 $7,634 
Total$— $— $7,634 $7,634 
December 31, 2024
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market accounts$211,619 $— $— $211,619 
Marketable securities, current:
Certificates of deposit— 21,795 — 21,795 
Commercial paper— 10,109 — 10,109 
Corporate debt securities— 57,589 — 57,589 
Yankee bonds— 2,208 — 2,208 
U.S. Treasury securities55,568 — — 55,568 
Mortgage- and asset-backed securities— 680 — 680 
Marketable securities, non-current
Corporate debt securities— 28,887 — 28,887 
Yankee bonds— 378 — 378 
U.S. Treasury securities10,552 — — 10,552 
Mortgage- and asset-backed securities— 20,869 — 20,869 
Total$277,739 $142,515 $— $420,254 
The estimated fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument.
There were no transfers between fair value measurement levels during the years ended December 31, 2025 and 2024.
Contingent Consideration
The Company recorded a contingent consideration liability related to potential earnout payments based on revenue targets pursuant to the GEOST Purchase Agreement. The estimated fair value of the contingent consideration is recorded using significant unobservable measures and other fair value inputs and is therefore classified as a Level 3 financial instrument.
The following table presents contingent consideration obligations measured on a recurring basis using Level 3 inputs for the year ended December 31, 2025:
December 31, 2024
$— 
Acquisition-related contingent consideration18,258 
Fair value adjustment
(10,624)
December 31, 2025
$7,634 
During the year ended December 31, 2025, the fair value of contingent consideration for the earn-out in connection with the acquisition of GEOST decreased, primarily due to a push out of forecasted revenues, resulting from the delay in contract awards caused by the government shutdown.
Convertible Senior Notes
The Company measures the fair value of its convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of its convertible senior notes as of December 31, 2025 to be a Level 2 measurement due to limited trading activity of the convertible senior notes. As of December 31, 2025, the net carrying amount of the convertible senior notes was $152,395, with unamortized discount and debt issuance costs of $3,259. As of December 31, 2025, the total estimated fair value (Level 2) of the convertible senior notes was $2,185,440. The fair value was determined based on the closing trading price of the convertible senior notes as of the last day of trading for the period.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Mar 7, 2023
2021Mar 24, 2022
2020Mar 31, 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.