3. Fair Value Measurements and Marketable Securities

The following tables present information about the Company’s assets that are measured at fair value on a recurring basis (in thousands):

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

 

 

$

39,672

 

 

$

 

 

$

39,672

 

Total cash equivalents

 

 

 

 

 

39,672

 

 

 

 

 

 

39,672

 

 

 

 

Fair Value Measurements at December 31, 2024 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

 

 

$

52,258

 

 

$

 

 

$

52,258

 

Total cash equivalents

 

 

 

 

 

52,258

 

 

 

 

 

 

52,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluded from the tables above is cash of $0.6 million and $0.6 million as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, there were no transfers between Level 1, Level 2 and Level 3 categories.

Free Sentinel

Want the next Spero Therapeutics, Inc. fair value disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Spero Therapeutics, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 27, 2025
2023Mar 13, 2024
2022Mar 30, 2023
2021Mar 31, 2022
2020Mar 11, 2021
2019Mar 16, 2020
2018Mar 14, 2019
2017Apr 2, 2018

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.