The Company categorizes its assets and liabilities measured at fair value in accordance with the authoritative accounting guidance that establishes a consistent framework for measuring fair value and expands disclosures for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the 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, guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

There were no transfers between the Level 1 and Level 2 categories or into or out of the Level 3 category during the periods presented. During the three months ended March 31, 2026, the Company purchased $14.7 million in short-term investments, and there were $42.5 million in maturities of short-term investments. During the three months ended March 31, 2025, the Company purchased $34.3 million in short-term investments, and there were $63.5 million in maturities of short-term investments.

The Company’s short-term investments portfolio contains investments in U.S. Treasury securities that have an effective maturity date that is less than one year from the respective balance sheet date. The Company's money market mutual fund holdings are highly liquid and invest primarily in cash and U.S. Treasury securities.

There was $0.2 million net unrealized losses on available-for-sale securities for the three months ended March 31, 2026, and a $0.1 million net unrealized gain on available-for-sale securities for the three months ended March 31, 2025. Management determined that the gross unrealized losses on the Company’s available-for-sale securities as of March 31, 2026 were primarily attributable to current economic and market conditions and not credit risk. As of March 31, 2026 and December 31, 2025, no allowance for credit losses was recorded for available-for-sale securities. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell any investments prior to recovery of its amortized cost basis, which is expected to be at maturity.

Accrued interest receivable on the Company's available-for-sale securities was $0.8 million and $1.0 million at March 31, 2026 and December 31, 2025, respectively, and is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets.

The Company’s Term Loans (as defined in Note 8 – Term Loans) are carried at historical cost, adjusted for the debt discount and debt issuance costs, and are not required to be carried at fair value. The fair value of the Term Loans approximates fair value due to the use of current market rates that are repriced frequently.