3.
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables set forth the fair value of the Company’s financial assets that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

41,832

 

 

$

 

 

$

 

 

$

41,832

 

Commercial paper

 

 

 

 

 

2,978

 

 

 

 

 

 

2,978

 

Total cash equivalents

 

 

41,832

 

 

 

2,978

 

 

 

 

 

 

44,810

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

 

 

 

90,762

 

 

 

 

 

 

90,762

 

U.S. Non-Treasury securities

 

 

 

 

 

2,374

 

 

 

 

 

 

2,374

 

Commercial paper

 

 

 

 

 

13,563

 

 

 

 

 

 

13,563

 

Corporate debt securities

 

 

 

 

 

86,599

 

 

 

 

 

 

86,599

 

Total investments

 

 

 

 

 

193,298

 

 

 

 

 

 

193,298

 

Total assets measured at fair value

 

$

41,832

 

 

$

196,276

 

 

$

 

 

$

238,108

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

36,097

 

 

$

 

 

$

 

 

$

36,097

 

Commercial paper

 

 

 

 

 

4,191

 

 

 

 

 

 

4,191

 

Total cash equivalents

 

 

36,097

 

 

 

4,191

 

 

 

 

 

 

40,288

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

 

 

 

150,116

 

 

 

 

 

 

150,116

 

Commercial paper

 

 

 

 

 

12,239

 

 

 

 

 

 

12,239

 

Corporate debt securities

 

 

 

 

 

96,405

 

 

 

 

 

 

96,405

 

Total investments

 

 

 

 

 

258,760

 

 

 

 

 

 

258,760

 

Total assets measured at fair value

 

$

36,097

 

 

$

262,951

 

 

$

 

 

$

299,048

 

 

There were no financial liabilities measured at fair value. The Company classifies money market funds within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company classifies its investments in U.S. Treasury securities (Treasury bills, Treasury notes, and Treasury bonds), U.S. Non-Treasury securities (government agency debt), commercial paper, and corporate debt securities as Level 2 instruments and obtains fair value from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

The carrying amount of the Company’s accounts receivable, other receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value due to their short maturities.

The following is a summary of the Company’s cash equivalents and investments and the gross unrealized holding gains and losses (in thousands):

 

 

 

December 31, 2025

 

 

 

Amortized Cost Basis

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

41,832

 

 

$

 

 

$

 

 

$

41,832

 

Commercial paper

 

 

2,978

 

 

 

 

 

 

 

 

 

2,978

 

Total cash equivalents

 

 

44,810

 

 

 

 

 

 

 

 

 

44,810

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

90,508

 

 

 

254

 

 

 

 

 

 

90,762

 

U.S. Non-Treasury securities

 

 

2,373

 

 

 

1

 

 

 

 

 

 

2,374

 

Commercial paper

 

 

13,555

 

 

 

8

 

 

 

 

 

 

13,563

 

Corporate debt securities

 

 

86,403

 

 

 

196

 

 

 

 

 

 

86,599

 

Total investments

 

 

192,839

 

 

 

459

 

 

 

 

 

 

193,298

 

Total assets measured at fair value

 

$

237,649

 

 

$

459

 

 

$

 

 

$

238,108

 

 

 

 

December 31, 2024

 

 

 

Amortized Cost Basis

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

36,097

 

 

$

 

 

$

 

 

$

36,097

 

Commercial paper

 

 

4,191

 

 

 

 

 

 

 

 

 

4,191

 

Total cash equivalents

 

 

40,288

 

 

 

 

 

 

 

 

 

40,288

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

150,095

 

 

 

121

 

 

 

(100

)

 

 

150,116

 

Commercial paper

 

 

12,227

 

 

 

12

 

 

 

 

 

 

12,239

 

Corporate debt securities

 

 

96,302

 

 

 

209

 

 

 

(106

)

 

 

96,405

 

Total investments

 

 

258,624

 

 

 

342

 

 

 

(206

)

 

 

258,760

 

Total assets measured at fair value

 

$

298,912

 

 

$

342

 

 

$

(206

)

 

$

299,048

 

 

As of December 31, 2025, the Company does not have investments that have been in a continuous unrealized loss position for twelve months or longer. To date, the Company has not recorded any credit loss charges on marketable securities related to other-than-temporary declines in market value. As of December 31, 2025, $54.7 million of available-for-sale investments had remaining maturities between one and two years. The remainder of the available-for-sale investments have a remaining maturity of one year or less. As of December 31, 2025 and 2024, the Company recorded $1.4 million and $1.9 million, respectively, of accrued interest related to its available-for-sale investments and is presented as other receivables on the consolidated balance sheets.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025
2023Mar 4, 2024
2022Mar 6, 2023
2021Mar 1, 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.