v3.26.1
Investments and fair value measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Investments and fair value measurements
4. Investments and fair value measurements

The following tables present the Company’s assets that are measured at fair value on a recurring basis within the fair value hierarchy (in thousands):

As of March 31, 2026
Level 1Level 2Level 3
Assets
Cash equivalents(1):
Money market funds$142,402 $— $— 
Time deposits
5,745 — — 
Marketable securities:
U.S. government securities— 105,256 — 
Strategic investments:
Convertible note investment
— — 8,500 
Total assets
$148,147 $105,256 $8,500 

As of December 31, 2025
Level 1Level 2Level 3
Assets
Cash equivalents(1):
Money market funds$123,314 $— $— 
Time deposits
4,005 — — 
Marketable securities:
U.S. government securities— 127,259 — 
Total assets
$127,319 $127,259 $— 
1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets, in addition to $104.4 million and $104.2 million of cash as of March 31, 2026 and December 31, 2025, respectively.
The Company did not have a material amount of liabilities measured at fair value on a recurring basis as of March 31, 2026 or December 31, 2025.
The Company’s money market funds and time deposits are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s investments in U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are directly or indirectly observable. The Company’s strategic investments are classified within Level 3 of the fair value hierarchy because they have been valued using significant unobservable inputs for which the Company has been required to develop its own assumptions.
A summary of the changes in the fair value of Level 3 financial instruments, of which unrealized gain on strategic investments is recognized in the condensed consolidated statements of operations, is as follows (in thousands):
Strategic Investments
Balance— December 31, 2025$— 
Purchases of strategic investments
8,000 
Unrealized gain on strategic investments
500 
Balance— March 31, 2026$8,500 
There were no material changes in the fair value of other Level 3 financial instruments during the three months ended March 31, 2025.
Strategic investments— On January 9, 2026, the Company invested $8.0 million in a convertible note (“Note Investment”) with a private company (the “Note Issuer”). The Note Investment accrues interest at 7.0% per annum, payable at maturity of the note or upon conversion, and matures on December 31, 2028, unless earlier converted into shares of the Note Issuer’s preferred stock in accordance with the terms of the Note Investment. The Company elected to measure the Note Investment using the fair value option and records changes in fair value, including accrued interest, in other income (expense), net on the condensed consolidated statements of operations. The Note Investment is included in strategic investments on the condensed consolidated balance sheets. The Company determined the fair value of the Note Investment by considering the terms of the convertible note as well as other key assumptions including the estimated time until conversion, volatility data, financial forecasts, and the value of underlying equity into which the note could be converted.
The Company evaluates its 2021 investment in equity securities of a privately held company without a readily determinable fair value (“2021 Equity Investment”), to which the measurement alternative is applied, for impairment at each reporting period. This evaluation considers several potential qualitative and quantitative impairment indicators including, but not limited to, the investee's financial metrics, whether there were any significant adverse changes in the economic environment or general market conditions of the geographies and industries in which the investee operates, and any other publicly available information that may affect the value of the investment.
The cost basis of the Company’s 2021 Equity Investment is $15.0 million. The Company previously recorded impairment charges of $10.3 million during the second quarter of 2024, $1.8 million during the second quarter of 2023 and $2.9 million during the third quarter of 2022. There have been no observable price changes in orderly transactions for identical or similar investments of the same issuer during the periods presented. As such, the Company’s carrying amount of the 2021 Equity Investment was zero as of March 31, 2026 and December 31, 2025.