v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 — Fair Value Measurements

We value our financial assets and liabilities at fair value, defined as the price that would be received for assets when sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that we believe market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable.

We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information reasonably available. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider the security issuers’ and the third-party issuers’ credit risk in our assessment of fair value.

We classify fair value based on the observability of those inputs using a hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement):

Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities;

Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or through corroboration with observable market data; and

Level 3 — Unobservable inputs, for which there is little or no market data for the assets or liabilities, such as internally-developed valuation models.

Fair Value of Financial Assets:

The following tables set forth the fair value of our financial assets, which consists of cash equivalents and investments classified as available-for-sale securities, that were measured on a recurring basis (in thousands):

 

 

 

 

March 31, 2026

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

Money market funds

 

Level 1

 

$

65,528

 

 

$

—

 

 

$

—

 

 

$

65,528

 

U.S. Treasury securities

 

Level 1

 

 

203,112

 

 

 

196

 

 

 

(31

)

 

 

203,277

 

U.S. Government agency securities

 

Level 2

 

 

208,017

 

 

 

29

 

 

 

(316

)

 

 

207,730

 

Commercial paper

 

Level 2

 

 

203,988

 

 

 

6

 

 

 

(130

)

 

 

203,864

 

Asset-backed securities

 

Level 2

 

 

7,633

 

 

 

—

 

 

 

(2

)

 

 

7,631

 

Corporate obligations

 

Level 2

 

 

322,585

 

 

 

121

 

 

 

(539

)

 

 

322,167

 

 

 

 

$

1,010,863

 

 

$

352

 

 

$

(1,018

)

 

$

1,010,197

 

 

 

 

 

 

December 31, 2025

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

Money market funds

 

Level 1

 

$

89,509

 

 

$

—

 

 

$

—

 

 

$

89,509

 

U.S. Treasury securities

 

Level 1

 

 

239,097

 

 

 

574

 

 

 

(7

)

 

 

239,664

 

U.S. Government agency securities

 

Level 2

 

 

201,788

 

 

 

162

 

 

 

(38

)

 

 

201,912

 

Commercial paper

 

Level 2

 

 

289,447

 

 

 

96

 

 

 

(26

)

 

 

289,517

 

Asset-backed securities

 

Level 2

 

 

7,579

 

 

 

7

 

 

 

—

 

 

 

7,586

 

Corporate obligations

 

Level 2

 

 

363,645

 

 

 

457

 

 

 

(53

)

 

 

364,049

 

 

 

 

 

$

1,191,065

 

 

$

1,296

 

 

$

(124

)

 

$

1,192,237

 

Investments in corporate debt securities, commercial paper, asset-backed securities and U.S. Government agency securities are classified as Level 2 as they are 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. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third-party data providers, including but not limited to benchmark yields, interest rate curves, reported trades, broker/dealer quotes and reference data.

No credit losses on debt securities were recognized in the periods presented. In its evaluation to determine expected credit losses, management considered all available historical and current information, expectations of future economic conditions, the type of security, the credit rating of the security, and the size of the loss position, as well as other relevant information. The unrealized losses as of March 31, 2026 are attributed to market interest rate changes and are not attributed to credit. The Company does not intend to sell any of these available-for-sale investments before their effective maturity or market price recovery.