v3.25.2
Fair Value (Notes)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block] Fair Value
Fair Value Disclosures - Investments
The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands):
As of June 30, 2025
Fair ValueLevel 1Level 2Level 3
Assets
Money market funds$57,309 $57,309 $— $— 
Fixed maturities:
Mortgage-backed securities and collateralized mortgage obligations19,435 — 19,435 — 
Other asset-backed securities21,257 — 21,257 — 
Corporate bonds49,369 — 49,369 — 
U.S. Treasury securities88,371 — 88,371 — 
Total$235,741 $57,309 $178,432 $— 
As of December 31, 2024
Fair ValueLevel 1Level 2Level 3
Assets
Money market funds$91,534 $91,534 $— $— 
Fixed maturities:
Mortgage-backed securities and collateralized mortgage obligations12,596 — 12,596 — 
Other asset-backed securities15,956 — 15,956 — 
Corporate bonds35,623 — 35,623 — 
U.S. Treasury securities70,291 — 70,291 — 
Preferred stock investment7,916 — — 7,916 
Total$233,916 $91,534 $134,466 $7,916 

The Company measures the fair value of money market funds, classified as Level 1, based on quoted prices in active markets for identical assets. The fair values of the Company's fixed maturity investments classified as Level 2 are based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Held-to-maturity investments are carried at amortized cost and the fair value and changes in unrealized gains and losses are disclosed in Note 3, Investments. The fair value of these investments is determined in the same manner as available-for-sale securities and are considered either a Level 1 or Level 2 measurement.
The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers between levels for the six months ended June 30, 2025 and the year ended December 31, 2024.
The Company's preferred stock investment (see Note 4) was accounted for as an available-for-sale debt security, and measured at fair value at each balance sheet date and as of the transaction date. The estimated fair value of the preferred stock investment was a Level 3 measurement, and was based on certain unobservable inputs such as the value of the underlying enterprise, volatility, time to liquidity, and market interest rates. Significant changes in any of these unobservable inputs would result in a change in the fair value measurement.
The following table presents the change in fair value of the Company’s preferred stock investment previously carried at fair value and classified as Level 3 (in thousands):
 Three Months Ended June 30,
Six Months Ended June 30,
 2025202420252024
Balance at beginning of period$7,916 $5,326 $7,916 $5,326 
Reversal of cumulative unrealized gain included in other comprehensive income (loss)(916)— (916)— 
Realized gain on nonmonetary exchange of preferred stock investment in Other (income), net7,783 — 7,783 — 
Exchange of preferred stock for intellectual property(14,783)— (14,783)— 
Balance at end of period$— $5,326 $— $5,326 
Fair Value Disclosures - Other Assets and Liabilities
The Company's other long-term assets balance also included notes receivable of $3.1 million and $4.3 million as of June 30, 2025 and December 31, 2024, respectively, recorded at their estimated collectible amount. The Company estimates that the carrying value of the notes receivable approximates the fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party.
The Company estimates the fair value of long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long-term debt approximated fair value at June 30, 2025.