3. Fair value measurements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2025, and 2024 are as follows:

Quoted Prices

Significant

in Active

Other

Significant

Markets for

Observable

Unobservable

Identical Assets

Inputs

Inputs

Assets

  ​ ​ ​

Total

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

(in thousands)

December 31, 2025

Cash equivalents:

Money market funds

$

51,161

$

51,161

$

$

Commercial paper

3,477

3,477

Marketable securities:

U.S. Treasury notes

72,805

72,805

U.S. Government agency securities

15,387

15,387

Corporate bonds

44,260

44,260

Commercial paper

3,939

3,939

Total cash equivalents and marketable securities

$

191,029

$

139,353

$

51,676

$

December 31, 2024

Money market funds included in cash and cash equivalents

  ​ ​ ​

$

59,658

$

59,658

$

  ​ ​ ​

$

Marketable securities:

  ​ ​ ​

U.S. Treasury notes

  ​ ​ ​

125,783

125,783

U.S. Government agency securities

27,518

27,518

Certificates of deposit

4,286

4,286

Corporate bonds

94,976

94,976

Commercial paper

8,458

8,458

Total cash equivalents and marketable securities

  ​ ​ ​

$

320,679

$

212,959

$

107,720

$

The Company measures the fair value of money market funds, U.S. Treasury notes and U.S. Government agency securities based on quoted prices in active markets for identical securities. The Company measures the fair value of the Level 2 securities, corporate bonds, certificates of deposit, and commercial paper, based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 11, 2025
2023Feb 28, 2024
2022Mar 7, 2023
2021Mar 8, 2022
2020Feb 25, 2021
2019Mar 3, 2020
2018Feb 26, 2019
2017Mar 14, 2018
2016Mar 15, 2017
2015Mar 17, 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.