v3.25.2
Investments and Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Investments and Fair Value of Financial Instruments
3. Investments and Fair Value of Financial Instruments
Marketable and Non-Marketable Investments
The Company’s marketable and non-marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable and non-marketable investments as of June 30, 2025 and December 31, 2024 were as follows (in thousands):
June 30, 2025
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
U.S. treasury$2,804 $— $(9)$— $2,795 
Total2,804 — (9)— 2,795 
Non-marketable investments:
Non-marketable debt securities10,000 2,850 — — 12,850 
Total10,000 2,850 — — 12,850 
Total $12,804 $2,850 $(9)$— $15,645 
December 31, 2024
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
U.S. treasury$15,744 $3 $(20)$— $15,727 
Total15,744 3 (20)— 15,727 
Non-marketable investment:
Non-marketable debt securities10,000 2,850 — — 12,850 
Total10,000 2,850 — — 12,850 
Total$25,744 $2,853 $(20)$— $28,577 
As of June 30, 2025, the total amortized cost basis of the Company’s available-for-sale debt securities, excluding non-marketable debt securities, in an unrealized loss position exceeded its fair value by an immaterial amount. The Company reviewed its available-for-sale securities in an unrealized loss position and concluded that the decline in fair value was not related to credit losses and is recoverable. As of June 30, 2025, the Company’s non-marketable available-for sale debt securities were not in an unrealized loss position. During the three and six months ended June 30, 2025, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive income (loss).
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more twelve months as of June 30, 2025 and December 31, 2024 (in thousands):
June 30, 2025
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
U.S. treasury$2,795 $(9)$— $— $2,795 $(9)
Total$2,795 $(9)$— $— $2,795 $(9)
December 31, 2024
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
U.S. treasury$2,787 $(19)$2,987 $(1)$5,774 $(20)
Total$2,787 $(19)$2,987 $(1)$5,774 $(20)
The contractual maturities of the Company’s marketable investments as of June 30, 2025 (in thousands):
June 30, 2025
Marketable investments:Amortized CostFair Value
Due in one year$2,804 $2,795 
Total$2,804 $2,795 
Non-Marketable Investments
During the three months ended March 31, 2024, the Company completed a strategic investment in a privately held company. Under the terms of the investment, the Company paid $10.0 million in exchange for shares of Series B preferred stock which represented an immaterial investment in the outstanding equity securities of the privately held company. The Company determined that the investment did not meet the criteria to be accounted for as an equity method investment under ASC 323. The investment was accounted for as an available-for-sale debt security in accordance with ASC 320 as the preferred stock contains a contingent redemption feature at the Company’s option. The investment is included in other non-current assets on the condensed consolidated balance sheet and changes in fair value are recorded in total other comprehensive income (loss), net of tax.
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company classifies its non-marketable investments in preferred stock in privately held companies within Level 3, as they do not have a readily determinable fair value.
The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy.
Non-marketable investments classified within Level 3 of the fair value hierarchy are valued based on unobservable inputs that are supported by little or no market activity. Current financial information of private companies may not be available and consequently the Company estimates the fair value using inputs that are based on the best available information at the measurement date. Key inputs may include the most recent financial information, financial projections, and financing transactions available for the investee and other quantitative and qualitative factors. Additionally, based on the timing, volume, and other characteristics of the available information, the Company may supplement this information by using one or more valuation techniques, including market and income approaches. There was no change in the fair value of the Company’s non-marketable debt securities as of June 30, 2025 from December 31, 2024.
The Company did not hold any Level 3 marketable investments as of June 30, 2025 or December 31, 2024. During the six months ended June 30, 2025 and 2024, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy for marketable or non-marketable investments. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2025 or December 31, 2024.
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of June 30, 2025 and December 31, 2024 (in thousands):
 As of June 30, 2025
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $266,545 $— $266,545 
Certificate of deposit— 27,496 — 27,496 
Money market funds58,795 — — 58,795 
U.S. treasury12,469 — — 12,469 
Marketable investments:
U.S. treasury2,795 — — 2,795 
Non-marketable investment:
Non-marketable investment— — 12,850 12,850 
Total$74,059 $294,041 $12,850 $380,950 
 As of December 31, 2024
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $139,271 $— $139,271 
Certificate of deposit— 15,995 — 15,995 
U.S agency securities— 3,369 — 3,369 
Money market funds68,133 — — 68,133 
U.S treasury23,497 — — 23,497 
Marketable investments:
U.S. treasury15,727 — — 15,727 
Non-marketable investment:
Non-marketable investment— — 12,850 12,850 
Total$107,357 $158,635 $12,850 $278,842