6. Fair Value Measurements
 
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:
 
 As of December 31,
 Fair ValueLevel 1Level 2Level 3
   
 (in thousands)
Financial Assets:
Money market funds included in cash and cash equivalents$186,507 $186,507 $— $— 
Total financial assets$186,507 $186,507 $— $— 
 
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:
 
 As of December 31,
 Fair ValueLevel 1Level 2Level 3
    
 (in thousands)
Financial Assets:    
Money market funds included in cash and cash equivalents$581 $581 $— $— 
Total financial assets$581 $581 $— $— 
Financial Liabilities:
Derivatives designated as hedging instruments:    
Forward contracts included in accrued expenses and other current liabilities (Note 7)
$66 $— $66 $— 
Total financial liabilities$66 $— $66 $— 
 
The Company classifies its money market funds within Level 1 because they are valued using quoted prices in active markets. The Company classifies its derivative financial instruments within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The Company had no remaining Level 2 derivative financial instruments as of December 31, 2025. See “Note 10 - Debt” for information regarding the fair value of the Company’s long-term debt.
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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.