v3.26.1
Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Fair Value Measurements
The following table presents the Company’s financial assets measured at fair value on a recurring basis, as well as the amortized cost basis and gross unrealized gains and losses of those assets as of March 31, 2026 (in thousands):
Balance Sheet Classification
Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Level 1:
Cash$140,141 $— $— $140,141 $140,141 $— 
Money market mutual funds110,235 — — 110,235 110,235 — 
U.S. treasury securities69,369 1 (9)69,361 — 69,361 
Subtotal319,745 1 (9)319,737 250,376 69,361 
Level 2:
Commercial paper26,432 — — 26,432 600 25,832 
Certificates of deposit1,519 — — 1,519 — 1,519 
Corporate notes and obligations34,568 — (21)34,547 — 34,547 
Asset-backed securities11,250 — (2)11,248 — 11,248 
Subtotal73,769 — (23)73,746 600 73,146 
Total cash, cash equivalents, and marketable securities$393,514 $1 $(32)$393,483 $250,976 $142,507 
As of December 31, 2025, the Company’s financial assets consisted of the following (in thousands):
Balance Sheet Classification
Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Level 1:
Cash$158,093 $— $— $158,093 $158,093 $— 
Money market mutual funds22,336 — — 22,336 22,336 — 
U.S. treasury securities99,553 38 — 99,591 — 99,591 
Subtotal279,982 38 — 280,020 180,429 99,591 
Level 2:
Commercial paper29,569 — — 29,569 3,782 25,787 
Corporate notes and obligations87,221 12 (21)87,212 3,817 83,395 
Asset-backed securities12,334 3 (1)12,336 — 12,336 
Subtotal129,124 15 (22)129,117 7,599 121,518 
Total cash, cash equivalents, and marketable securities$409,106 $53 $(22)$409,137 $188,028 $221,109 
The Company’s money market mutual funds and treasury securities are measured at fair value using quoted prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. The fair values of the Company’s Level 2 commercial paper and certificates of deposit are determined using quoted prices in markets that are not active or using model-driven valuations employing significant inputs derived from observable market data. The fair values of the Company’s Level 2 corporate notes and obligations and asset-backed securities are determined using an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates.
The carrying amounts of the Company’s remaining financial instruments not discussed in the above table, including accounts receivable and accounts payable, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes due 2030 (the “Notes”) which are valued on a quarterly basis for disclosure purposes only based on quoted prices for the Notes in less active markets and categorized accordingly as Level 2 in the fair value hierarchy. The aggregate fair value of the Notes was estimated to be approximately $321.8 million as of March 31, 2026 and approximately $429.0 million as of December 31, 2025.
Equity Securities
The Company’s investments in equity securities consist primarily of money market mutual funds. During the three months ended March 31, 2026 and 2025, the Company recorded no unrealized gains or losses in connection with its money market mutual funds held as of March 31, 2026.
Available-for-sale Debt Securities
The following table summarizes the fair value of the Company’s available-for-sale debt securities by contractual maturity as of March 31, 2026 (in thousands):
Due within 1 year$137,572 
Due after 1 year through 5 years5,535 
Total available-for-sale debt securities$143,107 
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months as of March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026
December 31, 2025
Fair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Corporate notes and obligations$33,540 $(21)$37,956 $(21)
Asset-backed securities10,609 (2)6,411 (1)
U.S. treasury securities41,293 (9)— — 
Total available-for-sale debt securities$85,442 $(32)$44,367 $(22)
The Company had no available-for-sale debt securities in a continuous unrealized loss position for more than 12 months as of March 31, 2026 or December 31, 2025.
The Company did not recognize any credit losses for its available-for-sale debt securities during the three months ended March 31, 2026 and 2025. The Company had no ending allowance balances for credit losses as of March 31, 2026 or December 31, 2025.
During the three months ended March 31, 2026 and 2025, the Company recorded $1.3 million and $1.0 million in proceeds related to sales of its available-for-sale debt securities, respectively. The Company recorded no material gross realized gains or gross realized losses in its condensed consolidated statements of operations as a result of such sales.