v3.25.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 4. Fair Value Measurement

The Company’s financial assets subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (amounts in thousands):

 

 

Fair Value Measured as of June 30, 2025

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets included in:

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

114,289

 

 

$

—

 

 

$

114,289

 

Commercial paper(2)

 

 

—

 

 

 

47,208

 

 

 

47,208

 

U.S. government and agency securities(2)

 

 

—

 

 

 

595,755

 

 

 

595,755

 

Corporate notes and bonds(2)

 

 

—

 

 

 

20,840

 

 

 

20,840

 

Total fair value

 

$

114,289

 

 

$

663,803

 

 

$

778,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measured as of December 31, 2024

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets included in:

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

78,736

 

 

$

—

 

 

$

78,736

 

Commercial paper(2)

 

 

—

 

 

 

61,926

 

 

 

61,926

 

U.S. government and agency securities(2)

 

 

—

 

 

 

695,504

 

 

 

695,504

 

Corporate notes and bonds(2)

 

 

—

 

 

 

54,615

 

 

 

54,615

 

Total fair value

 

$

78,736

 

 

$

812,045

 

 

$

890,781

 

 

 

 

 

 

 

 

 

 

 
(1)
Money market funds are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.
(2)
Marketable securities consist of commercial paper, U.S. government and agency securities, corporate notes and bonds. As of June 30, 2025 and December 31, 2024, marketable securities with original maturities of three months or less of $38.8 million and $42.1 million, respectively, are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

 

Level 1 assets: Money market funds are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets.

Level 2 assets: Investments in commercial paper, U.S. government and agency securities, and corporate notes and bonds are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets.

The Company had no financial liabilities subject to fair value measurements on a recurring basis as of June 30, 2025 and December 31, 2024.

There have been no changes to the valuation methods utilized during the six months ended June 30, 2025. As of June 30, 2025 and December 31, 2024, the carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximate their respective fair values due to their short-term nature.

Marketable Securities

The following table summarizes, by major security type, the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. Amortized cost net of unrealized gain (loss) is equal to fair value as of June 30, 2025 and December 31, 2024. The fair value as of June 30, 2025 and December 31, 2024 are as follows (amounts in thousands):

 

 

June 30, 2025

 

 

 

Amortized
 Cost

 

 

Gross Unrealized
 Gain

 

 

Gross Unrealized
 Loss

 

 

Fair Value

 

Level 1 securities

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

114,289

 

 

$

—

 

 

$

—

 

 

$

114,289

 

Level 2 securities

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

47,208

 

 

 

—

 

 

 

—

 

 

 

47,208

 

U.S. government and agency securities

 

 

595,858

 

 

 

39

 

 

 

(142

)

 

 

595,755

 

Corporate notes and bonds

 

 

20,850

 

 

 

3

 

 

 

(13

)

 

 

20,840

 

Total

 

$

778,205

 

 

$

42

 

 

$

(155

)

 

$

778,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Amortized
 Cost

 

 

Gross Unrealized
 Gain

 

 

Gross Unrealized
 Loss

 

 

Fair Value

 

Level 1 securities

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

78,736

 

 

$

—

 

 

$

—

 

 

$

78,736

 

Level 2 securities

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

61,926

 

 

 

—

 

 

 

—

 

 

 

61,926

 

U.S. government and agency securities

 

 

695,082

 

 

 

436

 

 

 

(14

)

 

 

695,504

 

Corporate notes and bonds

 

 

54,609

 

 

 

28

 

 

 

(22

)

 

 

54,615

 

Total

 

$

890,353

 

 

$

464

 

 

$

(36

)

 

$

890,781

 

 

Realized gains and losses and interest income from the investment are included in interest income.

The Company regularly reviews its available-for-sale marketable securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The following tables display additional information regarding gross unrealized losses and fair value by major security type for the 32 and 17 marketable securities in unrealized loss positions held by the Company as of June 30, 2025 and December 31, 2024, respectively (amounts in thousands):

 

 

 

June 30, 2025

 

 

 

Less than 12 Consecutive Months

 

 

12 Consecutive Months or Longer

 

 

Total

 

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

U.S. government and agency securities

 

$

(142

)

 

$

438,494

 

 

$

—

 

 

$

—

 

 

$

(142

)

 

$

438,494

 

Corporate notes and bonds

 

 

(13

)

 

 

13,374

 

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

13,374

 

Total

 

$

(155

)

 

$

451,868

 

 

$

—

 

 

$

—

 

 

$

(155

)

 

$

451,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Less than 12 Consecutive Months

 

 

12 Consecutive Months or Longer

 

 

Total

 

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

U.S. government and agency securities

 

$

(14

)

 

$

96,988

 

 

$

—

 

 

$

—

 

 

$

(14

)

 

$

96,988

 

Corporate notes and bonds

 

 

(19

)

 

 

33,111

 

 

 

(3

)

 

 

1,063

 

 

 

(22

)

 

 

34,174

 

Total

 

$

(33

)

 

$

130,099

 

 

$

(3

)

 

$

1,063

 

 

$

(36

)

 

$

131,162

 

The unrealized losses were attributable to changes in interest rates that impacted the value of the investments, and not increased credit risk. There were no sales of available-for-sale marketable securities during the three and six months ended June 30, 2025. There were no sales of available-for-sale marketable securities during the three months ended June 30, 2024, and during the six months ended June 30, 2024 the Company received proceeds of $1.2 million, including interest, from the sale of available-for-sale marketable securities. The Company realized immaterial gains as a result of such sales. The Company does not intend to sell the investments that are in an unrealized loss position, nor is it more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis, which may be its maturity. Accordingly, the Company did not record an allowance for credit losses associated with these investments.

The estimated amortized cost and fair value of available-for-sale securities by contractual maturity as of June 30, 2025 are as follows (amounts in thousands):

 

 

 

June 30, 2025

 

 

 

Amortized Cost

 

 

Fair Value

 

Due within one year

 

$

778,205

 

 

$

778,092

 

Due after one year and through five years

 

 

—

 

 

 

—

 

Total

 

$

778,205

 

 

$

778,092