v3.26.1
Fair Value Measurements
 12 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026 and 2025, by level, within the fair value hierarchy (in thousands):
As of March 31, 2026As of March 31, 2025
Level 1Level 2Level 3Balance as of
March 31, 2026		Level 1Level 2Level 3Balance as of
March 31, 2025
Assets:
Money market funds$1,374,706 $— $— $1,374,706 $2,621,457 $— $— $2,621,457 
Corporate bonds— 748,422 — 748,422 — — — — 
U.S. Treasury securities— 2,124,179 — 2,124,179 — — — — 
Investment in Datavant Class A units— — 233,171 233,171 — — 167,361 167,361 
Investment in Arbutus common shares174,814 — — 174,814 135,578 — — 135,578 
Total assets at fair value$1,549,520 $2,872,601 $233,171 $4,655,292 $2,757,035 $— $167,361 $2,924,396 
Liabilities:
Liability instruments measured at fair value(1)
$— $— $— $— $— $— $9,981 $9,981 
Total liabilities at fair value$— $— $— $— $— $— $9,981 $9,981 
(1)At March 31, 2025, Level 3 includes the fair value of the Earn-Out Shares of $10.0 million.
There were no transfers into or out of Level 3 during the years ended March 31, 2026 and 2025.
Level 3 Disclosures
The Company measures its Level 3 assets and liabilities at fair value based on significant inputs not observable in the market, which causes them to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the Level 3 assets and liabilities uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company evaluates these assumptions and estimates on an ongoing basis as additional data impacting the assumptions and estimates is obtained. Changes in the fair value related to updated assumptions and estimates are recorded within the consolidated statements of operations at the end of each reporting period.
The fair value of Level 3 assets and liabilities may change significantly as additional data is obtained, impacting the Company’s assumptions regarding probabilities of potential scenarios used to estimate fair value. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company’s results of operations in future periods.
The changes in fair value of the Level 3 assets during the years ended March 31, 2026 and 2025 were as follows (in thousands):
Balance at March 31, 2024$147,526 
Changes in fair value of investment in Datavant, included in net loss19,835 
Balance at March 31, 2025167,361 
Changes in fair value of investment in Datavant, included in net loss65,810 
Balance at March 31, 2026$233,171 
The changes in fair value of the Level 3 liabilities during the years ended March 31, 2026 and 2025 were as follows (in thousands):
Balance at March 31, 2024$25,737 
Changes in fair value of liability instruments, included in net loss(15,756)
Balance at March 31, 20259,981 
Changes in fair value of liability instruments, included in net loss47,704 
Reclassification to additional paid-in capital upon vesting of Earn-Out Shares(57,685)
Balance at March 31, 2026$— 
Investment in Datavant
The Company elected the fair value option to account for its investment in Datavant. The estimate of fair value for this investment was determined using the income approach, market approach, and implementation of the option pricing method (“OPM”). The income approach is based on the future expected cash flows, which are derived from certain assumptions attributable to Datavant including estimates of revenue growth rate, earnings before interest, taxes, depreciation and amortization and terminal growth rate. These expected cash flows are then discounted to their present value using a discount rate that reflects the risk and time value of money. The market approach estimates value by using valuation multiples derived from the stock prices of comparable publicly traded companies to determine the company’s equity value. The OPM allows for the allocation of a company’s equity value among the various equity capital owners (preferred and common shareholders). The OPM uses the preferred shareholders’ liquidation preferences, participation rights, dividend policy, and conversion rights to determine how proceeds from a liquidity event shall be distributed among the various ownership classes at a future date. The fair value was calculated using significant unobservable inputs including the following:
Point Estimate Used
InputAs of March 31, 2026As of March 31, 2025
Volatility90.0%110.0%
Discount rate11.8%13.0%
Earn-Out Shares
Prior to vesting during the quarter ended December 31, 2025, the fair value of the Earn-Out Shares issued as part of the Business Combination was calculated using the Monte Carlo simulation method under the income approach. Refer to Note 13, “Earn-Out Shares, Public Warrants and Private Placement Warrants” for additional details. Significant unobservable inputs used to calculate the fair value of the Earn-Out Shares included the following:
Point Estimate Used
InputAs of March 31, 2025
Volatility38.4%
Risk-free rate3.96%
As of March 31, 2025, the Company began using a blend of its historical and implied volatility, rather than exclusively relying on historical volatility, to estimate the expected volatility assumption of various equity instruments issued by the Company. Due to changes in the Company’s capital position, the Company believes this methodology better reflects its expected future volatility.
As of March 31, 2025, the fair value of the Earn-Out Shares was $10.0 million, which was included in “Liability instruments measured at fair value” in the accompanying consolidated balance sheets.