v3.25.2
Investment Securities and Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Investment Securities and Fair Value Measurements

Note 3. Investment securities and fair value measurements

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2025 and December 31, 2024:

 

 

 

June 30, 2025

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Money market funds

 

$

171,909

 

 

$

—

 

 

$

—

 

 

$

171,909

 

U.S. government agency bonds

 

 

—

 

 

 

52,940

 

 

 

—

 

 

 

52,940

 

U.S. treasury bonds

 

 

309,425

 

 

 

—

 

 

 

—

 

 

 

309,425

 

Corporate debt securities

 

 

—

 

 

 

19,859

 

 

 

—

 

 

 

19,859

 

Totals

 

$

481,334

 

 

$

72,799

 

 

$

—

 

 

$

554,133

 

 

 

 

December 31, 2024

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Money market funds

 

$

116,694

 

 

$

—

 

 

$

—

 

 

$

116,694

 

U.S. government agency bonds

 

—

 

 

 

47,994

 

 

 

—

 

 

 

47,994

 

U.S. treasury bonds

 

 

375,138

 

 

—

 

 

 

—

 

 

 

375,138

 

Corporate debt securities

 

—

 

 

 

89,739

 

 

 

—

 

 

 

89,739

 

Totals

 

$

491,832

 

 

$

137,733

 

 

$

—

 

 

$

629,565

 

 

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market. U.S. treasury securities are also classified as Level 1 because they are valued using quoted prices. U.S. government agency and corporate securities are classified within Level 2 of the fair value hierarchy

because they are valued using market-based models that consider inputs such as yield, prices of comparable securities, coupon rate, maturity, and credit quality.

 

During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the three and six months ended June 30, 2025 and 2024.

 

The Company's fixed income securities held as of June 30, 2025 and December 31, 2024 with original maturity dates beyond three months are classified as available-for-sale. The following table presents the amortized cost, fair value, and unrealized gains and losses by major security type, for the fixed income securities held by the Company:

 

 

 

June 30, 2025

 

(in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. government agency bonds

 

$

52,912

 

 

$

57

 

 

$

(29

)

 

$

52,940

 

U.S. treasury bonds

 

 

309,125

 

 

 

450

 

 

 

(150

)

 

 

309,425

 

Corporate debt securities

 

 

19,832

 

 

 

27

 

 

 

-

 

 

 

19,859

 

     Totals

 

$

381,869

 

 

$

534

 

 

$

(179

)

 

$

382,224

 

 

 

 

December 31, 2024

 

(in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. government agency bonds

 

$

47,959

 

 

$

91

 

 

$

(56

)

 

$

47,994

 

U.S. treasury bonds

 

 

374,883

 

 

 

585

 

 

 

(330

)

 

 

375,138

 

Corporate debt securities

 

 

89,624

 

 

 

119

 

 

 

(4

)

 

 

89,739

 

     Totals

 

$

512,466

 

 

$

795

 

 

$

(390

)

 

$

512,871

 

 

The following table presents the amortized cost and fair value of the Company's fixed income securities by maturity grouping as of June 30, 2025.

 

 

 

June 30, 2025

 

(in thousands)

 

Amortized cost

 

 

Fair value

 

Due in one year or less

 

$

307,394

 

 

$

307,610

 

Due after one year through five years

 

 

74,475

 

 

 

74,614

 

Due after five years through ten years

 

 

—

 

 

 

—

 

Due after ten years

 

 

—

 

 

 

—

 

Total

 

$

381,869

 

 

$

382,224

 

 

 

 

December 31, 2024

 

(in thousands)

 

Amortized cost

 

 

Fair value

 

Due in one year or less

 

$

352,070

 

 

$

352,517

 

Due after one year through five years

 

 

160,396

 

 

 

160,354

 

Due after five years through ten years

 

 

—

 

 

 

—

 

Due after ten years

 

 

—

 

 

 

—

 

Total

 

$

512,466

 

 

$

512,871

 

 

There were no securities with expected credit losses or non-credit related impairment as of June 30, 2025 or December 31, 2024. There were no sales of securities which resulted in a realized loss during the three and six months ended June 30, 2025. The Company recognized $4.4 million and $8.9 million of interest income earned from its available-for-sale debt securities and cash and cash equivalents during the three and six months ended June 30, 2025, respectively. The Company recognized $1.9 million and $4.4 million of accretion on its available-for-sale debt securities during the three and six months ended June 30, 2025, respectively. The accretion recognized was recorded to interest income during these periods. The Company recognized $5.3 million and $9.6 million of interest income earned from its available-for-sale debt securities and money market funds during the three and six months ended June 30, 2024, respectively. The Company also recognized $2.8 million and $5.6 million of accretion on its available-for-sale debt securities, which was recorded to interest income, during the three and six months ended June 30, 2024, respectively.