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

4. Fair Value Measurements

The Company classifies fair value-based measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1, quoted market prices (unadjusted) in active markets for identical assets or liabilities; Level 2, observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data; and Level 3, unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Certain of the Company’s financial assets, including cash equivalents, restricted cash equivalents and marketable securities, have been initially valued at the transaction price, and subsequently revalued at the end of each reporting period, utilizing third party pricing services or other observable market data. The pricing services utilize industry standard valuation models and observable market inputs to determine value.

The Company’s financial assets recognized at fair value on a recurring basis consisted of the following:

 

 

March 31, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents and restricted cash equivalents

 

$

79,145

 

 

$

79,145

 

 

$

-

 

 

$

-

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

 

191,841

 

 

 

129,324

 

 

 

62,517

 

 

 

-

 

Financial institution debt securities

 

 

116,544

 

 

 

-

 

 

 

116,544

 

 

 

-

 

Corporate debt securities

 

 

74,165

 

 

 

-

 

 

 

74,165

 

 

 

-

 

Total marketable securities

 

 

382,550

 

 

 

129,324

 

 

 

253,226

 

 

 

-

 

Investment in Kyverna Therapeutics, Inc.

 

 

10,130

 

 

 

10,130

 

 

 

-

 

 

 

-

 

Total assets

 

$

471,825

 

 

$

218,599

 

 

$

253,226

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents and restricted cash equivalents

 

$

92,263

 

 

$

92,263

 

 

$

-

 

 

$

-

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

 

221,117

 

 

 

150,852

 

 

 

70,265

 

 

 

-

 

Financial institution debt securities

 

 

146,815

 

 

 

-

 

 

 

146,815

 

 

 

-

 

Corporate debt securities

 

 

81,738

 

 

 

-

 

 

 

81,738

 

 

 

-

 

Total marketable securities

 

 

449,670

 

 

 

150,852

 

 

 

298,818

 

 

 

-

 

Investment in Kyverna Therapeutics, Inc.

 

 

11,034

 

 

 

11,034

 

 

 

-

 

 

 

-

 

Total assets

 

$

552,967

 

 

$

254,149

 

 

$

298,818

 

 

$

-

 

Other financial instruments, including accounts receivable, accounts payable and accrued expense, are carried at cost, which approximates fair value due to the short duration and term to maturity.

The Company has determined that the estimated fair value of its investment in Kyverna Therapeutics, Inc. (“Kyverna”), a publicly traded company, is reported as Level 1 as it is valued at a quoted market price in an active market. The investment in Kyverna is classified within “Investments and other assets” in the condensed consolidated balance sheets. Refer to Note 8, “Investments and Other Assets,” for further details.