2. Fair Value Measurements

The following tables show the Company’s cash equivalents and marketable securities measured at fair value as of December 31, 2025 and 2024 (in thousands):

 

December 31, 2025

 

 

Total

 

Quoted prices in active markets for identical assets (Level 1)

 

Significant other observable inputs (Level 2)

 

Significant unobservable inputs (Level 3)

 

Cash equivalents:

 

 

 

 

 

 

 

 

   Money market funds

$

54,444

 

$

54,444

 

$

 

$

 

Marketable securities:

 

 

 

 

 

 

 

 

   U.S. Treasury securities

 

133,264

 

 

 

 

133,264

 

 

 

   U.S. government agency securities

 

45,352

 

 

 

 

45,352

 

 

 

      Total marketable securities

 

178,616

 

 

 

 

178,616

 

 

 

      Total

$

233,060

 

$

54,444

 

$

178,616

 

$

 

 

 

December 31, 2024

 

 

Total

 

Quoted prices in active markets for identical assets (Level 1)

 

Significant other observable inputs (Level 2)

 

Significant unobservable inputs (Level 3)

 

Cash equivalents:

 

 

 

 

 

 

 

 

   Money market funds

$

69,698

 

$

69,698

 

$

 

$

 

Marketable securities:

 

 

 

 

 

 

 

 

   U.S. Treasury securities

 

122,980

 

 

 

 

122,980

 

 

 

   U.S. government agency securities

 

126,495

 

 

 

 

126,495

 

 

 

      Total marketable securities

 

249,475

 

 

 

 

249,475

 

 

 

      Total

$

319,173

 

$

69,698

 

$

249,475

 

$

 

The carrying amounts of the Company’s prepaid and other current assets, accounts payable, and accrued and other current liabilities approximate fair value due to their short maturities. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis. There were no transfers between Levels 1, 2 or 3 for any of the periods presented.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 27, 2025
2023Mar 19, 2024
2022Mar 22, 2023
2021Mar 3, 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.