SentinelOne, Inc.S
SentinelOne, Inc. Fair Value Disclosure
FAIR VALUE MEASUREMENTS
We measure fair value based on a three-level hierarchy, maximizing the use of observable inputs, where available, and minimizing the use of unobservable inputs, as follows:
Level 1:Assets and liabilities whose values are based on observable inputs such as quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2:Assets and liabilities whose values are based on inputs from quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability.
Level 3:Assets and liabilities whose values are based on unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value measurement.
The following table summarizes information about our cash, cash equivalents, and investments by investment category for the periods presented (in thousands):
As of January 31, 2026 | |||||||||||||||||||||||||||||
Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||||||||||||||
| Cash | $ | 124,873 | $ | — | $ | — | $ | 124,873 | |||||||||||||||||||||
| Money market funds | Level 1 | 44,754 | — | — | 44,754 | ||||||||||||||||||||||||
| Total cash and cash equivalents | $ | 169,627 | $ | — | $ | — | $ | 169,627 | |||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||||||||
| U.S. Treasury securities | Level 1 | $ | 271,254 | $ | 786 | $ | — | $ | 272,040 | ||||||||||||||||||||
| Corporate notes and bonds | Level 2 | 177,892 | 610 | — | 178,502 | ||||||||||||||||||||||||
| U.S. agency securities | Level 2 | 8,500 | — | (1) | 8,499 | ||||||||||||||||||||||||
| Total short-term investments | $ | 457,646 | $ | 1,396 | $ | (1) | $ | 459,041 | |||||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||||||||
| U.S. Treasury securities | Level 1 | $ | 45,754 | $ | 227 | $ | — | $ | 45,981 | ||||||||||||||||||||
| Corporate notes and bonds | Level 2 | 58,473 | 238 | — | 58,711 | ||||||||||||||||||||||||
| Total long-term investments | $ | 104,227 | $ | 465 | $ | — | $ | 104,692 | |||||||||||||||||||||
| Total assets measured at fair value | $ | 731,500 | $ | 1,861 | $ | (1) | $ | 733,360 | |||||||||||||||||||||
As of January 31, 2025 | |||||||||||||||||||||||||||||
Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||||||||||||||
| Cash | $ | 94,728 | $ | — | $ | — | $ | 94,728 | |||||||||||||||||||||
| Money market funds | Level 1 | 61,962 | — | — | 61,962 | ||||||||||||||||||||||||
| U.S. Treasury securities | Level 1 | 9,969 | 3 | — | 9,972 | ||||||||||||||||||||||||
| Commercial paper | Level 2 | 19,914 | — | (2) | 19,912 | ||||||||||||||||||||||||
| Total cash and cash equivalents | $ | 186,573 | $ | 3 | $ | (2) | $ | 186,574 | |||||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||||||||
| U.S. Treasury securities | Level 1 | $ | 208,918 | $ | 284 | $ | (74) | $ | 209,128 | ||||||||||||||||||||
| Commercial paper | Level 2 | 24,606 | 1 | (2) | 24,605 | ||||||||||||||||||||||||
| Corporate notes and bonds | Level 2 | 238,610 | 586 | (6) | 239,190 | ||||||||||||||||||||||||
| U.S. agency securities | Level 2 | 62,257 | 151 | — | 62,408 | ||||||||||||||||||||||||
| Total short-term investments | $ | 534,391 | $ | 1,022 | $ | (82) | $ | 535,331 | |||||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||||||||
| U.S. Treasury securities | Level 1 | $ | 208,104 | $ | 787 | $ | (203) | $ | 208,688 | ||||||||||||||||||||
| Corporate notes and bonds | Level 2 | 173,882 | 573 | (331) | 174,124 | ||||||||||||||||||||||||
| U.S. agency securities | Level 2 | 13,458 | — | (63) | 13,395 | ||||||||||||||||||||||||
| Total long-term investments | $ | 395,444 | $ | 1,360 | $ | (597) | $ | 396,207 | |||||||||||||||||||||
| Total assets measured at fair value | $ | 1,116,408 | $ | 2,385 | $ | (681) | $ | 1,118,112 | |||||||||||||||||||||
There were no transfers between the levels of the fair value hierarchy during fiscal 2026, 2025 and 2024. As of January 31, 2026, all of our investments will mature within two years.
As of January 31, 2026, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During fiscal 2026, 2025 and 2024, we did not recognize any losses on our investments due to credit related factors. As of January 31, 2026, there were no securities in continuous unrealized loss positions for more than twelve months.
The tables above do not include our strategic investments in non-marketable equity securities, which are recorded at cost, less any impairment, plus or minus observable price changes in orderly transactions for identical or similar investments of the same issuer and were $36.2 million and $23.2 million as of January 31, 2026 and 2025, respectively.
During fiscal 2026 and 2024, we incurred impairment charges on our non-marketable strategic investments of $1.0 million and $0.8 million. During fiscal 2025, we incurred no impairment charges on our non-marketable strategic investments. During fiscal 2026, 2025 and 2024, we recognized realized gains of $1.3 million, $0.3 million and $3.5 million respectively, on our non-marketable strategic investments. Impairment charges and realized gains on strategic investments were recognized in other income (expense), net. The fair value was estimated on a non-recurring basis based on Level 3 inputs.
Derivative Financial Instruments
To mitigate our exposure to foreign currency fluctuations resulting from a recognized income tax liability denominated in the Israeli New Shekel (ILS), we enter into foreign currency forward contracts. As of January 31, 2026, the notional value of outstanding forward contracts was $154.4 million.
The following table summarizes the fair value of our derivative instruments on the consolidated balance sheets (in thousands):
| Classification | Fair Value Level | As of January 31, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Derivative Liabilities: | ||||||||||||||||||||||||||
| Foreign currency forward contracts not designated as hedging instruments | Accrued expenses and other current liabilities | Level 2 | $ | 574 | $ | — | ||||||||||||||||||||
Changes in the fair value of these derivative instruments are recognized in other income (expense), net on the consolidated statements of operations. These gains or losses are intended to economically offset the foreign currency transaction gains or losses generated by the remeasurement of the underlying ILS-denominated liability. For fiscal 2026, we recorded $0.8 million in losses specifically related to our foreign currency forward contracts. Cash flows from these contracts are classified within net cash provided by (used in) operating activities in the consolidated statements of cash flows.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 26, 2025 | |
| 2024 | Mar 27, 2024 | |
| 2023 | Mar 29, 2023 | |
| 2022 | Apr 7, 2022 | |
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.