SUPERNUS PHARMACEUTICALS, INC.SUPN

SUPERNUS PHARMACEUTICALS, INC. Fair Value Disclosure

10-KFiled Mar 2, 20263 min read
Fair Value of Financial Instruments
The fair value of an asset or liability represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants.
The Company reports the fair value of assets and liabilities using a three-level measurement hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy consists of the following three levels:
•Level 1—Valuations based on unadjusted quoted prices in active markets that are accessible at measurement date for identical assets.
•Level 2—Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and model-based valuations in which all significant inputs are observable in the market, either directly or indirectly (e.g., interest rates; yield curves).
•Level 3—Valuations using significant inputs that are unobservable in the market and inputs that reflect the Company’s own assumptions. These are based on the best information available, including the Company’s own data.
The fair value of the restricted marketable securities which are classified as Level 2 financial assets are recorded in Other assets on the consolidated balance sheets. There have been no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy.
Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The Company's financial assets and liabilities that are required to be measured at fair value on a recurring basis are as follows (dollars in thousands):
 
Fair Value Measurements
 Total Fair Value at December 31, 2025
Level 1
Level 2Level 3
Assets:
Cash and cash equivalents
Cash$56,371 $56,371 $— $— 
Money market funds72,077 72,077 — — 
Marketable securities
Corporate debt securities164,519 — 164,519 — 
Municipal debt securities14,716 — 14,716 — 
U.S government agency securities987 — 987 — 
Other noncurrent assets
Marketable securities - restricted (SERP)705 27 678 — 
Restricted cash1,450 1,450 — — 
Total assets at fair value$310,825 $129,925 $180,900 $— 
Liabilities:
Contingent consideration$31,258 $— $— $31,258 
Total liabilities at fair value$31,258 $— $— $31,258 
 
Fair Value Measurements
 Total Fair Value at December 31, 2024
Level 1
Level 2
Level 3
Assets:
Cash and cash equivalents
Cash$37,830 $37,830 $— $— 
Money market funds31,501 31,501 — — 
Marketable securities
Corporate debt securities355,201 — 355,201 — 
U.S. government agency debt securities29,080 — 29,080 — 
Other noncurrent assets
Marketable securities - restricted (SERP)635 21 614 — 
Total assets at fair value$454,247 $69,352 $384,895 $— 
Liabilities:
Contingent consideration$47,340 $— $— $47,340 
Total liabilities at fair value$47,340 $— $— $47,340 
Other Financial Instruments
The carrying amounts of other financial instruments, including accounts receivable, accounts payable, accrued expenses, and other current liabilities approximate fair value due to their short-term maturities.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Mar 9, 2023
2021Apr 13, 2022
2020Mar 8, 2021
2019Feb 28, 2020
2018Mar 1, 2019
2017Mar 1, 2018
2016Mar 16, 2017
2015Mar 9, 2016

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.

Other Available Disclosures

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