v3.26.1
Fair Value Measurement and Marketable Securities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement and Marketable Securities

3. Fair Value Measurement and Marketable Securities

 

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities at the measurement date.

 

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, 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 which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in its assessment of fair value.

As of March 31, 2026, financial assets measured and recognized at fair value are as follows (in thousands):

 

 

 

 

 

March 31, 2026

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

Level 2

 

$

425,982

 

 

$

325

 

 

$

(444

)

 

$

425,863

 

Corporate bonds

 

Level 2

 

 

369,187

 

 

 

219

 

 

 

(581

)

 

 

368,825

 

Commercial paper

 

Level 2

 

 

58,730

 

 

 

—

 

 

 

(12

)

 

 

58,718

 

Subtotal

 

 

 

 

853,899

 

 

 

544

 

 

 

(1,037

)

 

 

853,406

 

Money market funds

 

Level 1

 

 

109,385

 

 

 

—

 

 

 

—

 

 

 

109,385

 

Cash

 

 

 

 

10,123

 

 

 

—

 

 

 

—

 

 

 

10,123

 

Total fair value of assets

 

 

 

$

973,407

 

 

$

544

 

 

$

(1,037

)

 

$

972,914

 

Included in cash and cash equivalents(1)

 

 

 

 

157,528

 

 

 

—

 

 

 

(6

)

 

 

157,522

 

Included in marketable securities, current(2)

 

 

 

 

513,433

 

 

 

443

 

 

 

(197

)

 

 

513,679

 

Included in marketable securities, non-current(3)

 

 

 

 

302,446

 

 

 

101

 

 

 

(834

)

 

 

301,713

 

Total fair value of assets

 

 

 

$

973,407

 

 

$

544

 

 

$

(1,037

)

 

$

972,914

 

 

(1) $38.0 million of commercial paper was included in cash and cash equivalents on the condensed balance sheet due to securities with

purchase dates within 90 days of maturity dates.

(2) The Company’s short-term marketable securities mature in one year or less.

(3) The Company’s long-term marketable securities mature between one and three years.

 

As of December 31, 2025, financial assets measured and recognized at fair value are as follows (in thousands):

 

 

 

 

 

December 31, 2025

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

Level 2

 

$

482,993

 

 

$

1,266

 

 

$

(5

)

 

$

484,254

 

Corporate bonds

 

Level 2

 

 

428,702

 

 

 

1,034

 

 

 

(28

)

 

 

429,708

 

Commercial paper

 

Level 2

 

 

31,688

 

 

 

1

 

 

 

(1

)

 

 

31,688

 

Subtotal

 

 

 

 

943,383

 

 

 

2,301

 

 

 

(34

)

 

 

945,650

 

Money market funds

 

Level 1

 

 

98,538

 

 

 

—

 

 

 

—

 

 

 

98,538

 

Cash

 

 

 

 

5,497

 

 

 

—

 

 

 

—

 

 

 

5,497

 

Total fair value of assets

 

 

 

$

1,047,418

 

 

$

2,301

 

 

$

(34

)

 

$

1,049,685

 

Included in cash and cash equivalents(1)

 

 

 

 

112,825

 

 

 

—

 

 

 

—

 

 

 

112,825

 

Included in marketable securities, current(2)

 

 

 

 

525,454

 

 

 

1,116

 

 

 

(7

)

 

 

526,563

 

Included in marketable securities, non-current(3)

 

 

 

 

409,139

 

 

 

1,185

 

 

 

(27

)

 

 

410,297

 

Total fair value of assets

 

 

 

$

1,047,418

 

 

$

2,301

 

 

$

(34

)

 

$

1,049,685

 

(1) $8.8 million of commercial paper was included in cash and cash equivalents on the condensed balance sheet due to securities with

purchase dates within 90 days of maturity dates.

(2) The Company’s short-term marketable securities mature in one year or less.

(3) The Company’s long-term marketable securities mature between one and three years.

 

As of March 31, 2026 and December 31, 2025, all marketable securities had a remaining maturity of less than two years. There were no financial liabilities measured and recognized at fair value as of March 31, 2026 and December 31, 2025.

 

As of March 31, 2026 and December 31, 2025, certain securities were held in an unrealized loss position. Based on review of the portfolio of marketable securities and the creditworthiness of the underlying issuer, the Company determined that the decline in fair value below cost did not result from credit-related factors. Additionally, the Company does not intend to sell these securities, nor will it be required to sell before recovery of the amortized cost basis at maturity. As a result, no credit-related losses have been recognized for any of the periods presented.