v3.26.1
Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as 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, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets.
Level 2—Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.
Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value of the instrument. The carrying amounts of the Company’s financial instruments, including cash equivalents classified within the Level 1 designation, prepaid and other current assets, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Cash equivalents and marketable securities are recorded at fair value on a recurring basis. Equity investments without a readily determinable fair value are recorded at cost and adjusted to fair value based on observable price changes in orderly transactions for identical or similar investment of the same issuer.
None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis.
Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):
Fair Value Measurements at Reporting Date
TotalLevel 1Level 2Level 3
At March 31, 2026:
Cash equivalents
Money market funds$24,121 $24,121 $— $— 
Total cash equivalents measured at fair value$24,121 $24,121 $— $— 
Marketable securities
Corporate debt securities$111,231 $— $111,231 $— 
U.S. treasury securities75,354 75,354 — — 
Asset-backed securities23,207 — 23,207 — 
U.S. government agency securities12,641 — 12,641 — 
Commercial paper11,180 — 11,180 — 
Total marketable securities measured at fair value$233,613 $75,354 $158,259 $— 
At December 31, 2025:
Cash equivalents
Money market funds$21,536 $21,536 $— $— 
U.S. treasury securities2,996 2,996 — — 
Total cash equivalents measured at fair value$24,532 $24,532 $— $— 
Marketable securities
Corporate debt securities$114,102 $— $114,102 $— 
U.S. treasury securities89,726 89,726 — — 
Commercial paper28,858 — 28,858 — 
Asset-backed securities21,282 — 21,282 — 
U.S. government agency securities13,200 — 13,200 — 
Total marketable securities measured at fair value$267,168 $89,726 $177,442 $— 
The following table presents the amortized cost and estimated fair market value of our cash equivalents and marketable securities as of the dates presented (in thousands):
March 31, 2026
Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated Fair
Value
Cash equivalents:
Money market funds$24,121 $— $— $24,121 
Marketable securities:
Corporate debt securities$111,577 $7 $(353)$111,231 
U.S. treasury securities75,378 41 (65)75,354 
Asset-backed securities23,233 9 (35)23,207 
U.S. government agency securities12,697 — (56)12,641 
Commercial paper11,178 3 (1)11,180 
Totals$258,184 $60 $(510)$257,734 
December 31, 2025
Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated Fair
Value
Cash equivalents:
Money market funds$21,536 $— $— $21,536 
U.S. treasury securities2,996 — — 2,996 
Marketable securities:
Corporate debt securities$114,066 $63 $(27)$114,102 
U.S. treasury securities89,572 154 — 89,726 
Commercial paper28,836 22 — 28,858 
Asset-backed securities21,257 26 (1)21,282 
U.S. government agency securities13,195 5 — 13,200 
Totals$291,458 $270 $(28)$291,700 
The following table presents available-for-sale securities by contractual maturity date as of March 31, 2026 (in thousands):
March 31, 2026
Amortized CostEstimated Fair Value
Due in one year or less
$137,988 $137,951 
Due after one year
96,075 95,662 
Total
$234,063 $233,613 
As of March 31, 2026, ninety of the Company's marketable securities with a fair market value of $162.9 million were in a gross unrealized loss position due to the timing of their acquisition compared to their respective maturity date. These ninety marketable securities have all been in a gross unrealized loss position for less than one year. Based on a review of these marketable securities, the Company believes none of the unrealized loss is the result of a credit loss as of March 31, 2026, because the Company does not intend to sell these securities prior to their maturity, and it is unlikely that the Company will be required to sell these securities before the recovery of their amortized cost basis. Refer to Note 2 for further discussion on the Company's evaluation of unrealized losses on available-for-sale securities. Accrued interest receivable on marketable securities was $2.1 million at both March 31, 2026 and December 31, 2025, and was recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets. The Company did not write off any accrued interest receivables for the three months ended March 31, 2026 and 2025.
The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three months ended March 31, 2026 and 2025.
Equity investment without a readily determinable fair value
In conjunction with the Merger, the Company obtained an investment in common stock of an unfunded privately held, pre-clinical life sciences company, which the Company initially carried at no value. In May 2024, the private company executed a seed funding round (“Seed Financing”), which triggered an anti-dilution provision under the License and Option Agreement (“Option Agreement”), resulting in the issuance of additional shares of common stock. The Company identified the Seed Financing as an observable price change under the measurement alternative, and adjusted the equity investment from zero to an estimated fair value of $1.3 million at the time of the Seed Financing. During the year ended December 31, 2025, observable price changes in the form of equity financings resulted in total upward adjustments of $0.2 million and total downward adjustments of $0.4 million in the equity investment, resulting in an estimated fair value of $1.1 million as of December 31, 2025. There were no upward or downward adjustments to the carrying value of the Company's investment without a readily determinable fair value during the three months ended March 31, 2026 and 2025.