FAIR VALUE MEASUREMENTS (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Fair Value, Option, Quantitative Disclosures [Line Items] |
|
| Schedule of Rollforward of Level 3 Measurements |
A roll forward of the Level 3 measurements is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
June 2022 Warrants |
|
|
2024 Warrants |
|
Beginning balance as of January 1, 2026 |
|
$ |
10,776 |
|
|
$ |
263,390 |
|
Exercises/Settlements |
|
|
— |
|
|
|
(365,166 |
) |
Change in fair value recognized in Other income (expense), net |
|
|
7,123 |
|
|
|
101,776 |
|
Ending balance as of March 31, 2026 |
|
$ |
17,899 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 2022 Warrants |
|
|
December 2022 Warrants |
|
|
C-2 Notes |
|
|
2024 Warrants |
|
Beginning balance as of January 1, 2025 |
|
$ |
3,636 |
|
|
$ |
1,394 |
|
|
$ |
18,537 |
|
|
$ |
45,604 |
|
Change in fair value recognized in Other income (expense), net |
|
|
(543 |
) |
|
|
(62 |
) |
|
|
387 |
|
|
|
(10,363 |
) |
Change in fair value attributable to instrument-specific credit risk recognized in Other comprehensive income(1) |
|
|
— |
|
|
|
— |
|
|
|
(153 |
) |
|
|
— |
|
Ending balance as of March 31, 2025 |
|
$ |
3,093 |
|
|
$ |
1,332 |
|
|
$ |
18,771 |
|
|
$ |
35,241 |
|
__________ (1)As the fair value option was elected for the C-2 Notes, the change in fair value attributable to instrument-specific credit risk associated with each instrument is recorded within Other comprehensive income (loss), and the remaining change in fair value is recorded within Other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. The change in instrument specific credit risk is estimated based on the option adjusted spread of comparable companies and the option adjusted spread of the U.S. high yield index for companies with similar credit ratings.
|
| Schedule of Estimated Fair Values of Financial Instruments |
The estimated fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
|
|
Carrying Value |
|
|
Level 1 |
|
|
Level 2 |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
Cash equivalents |
|
|
|
|
|
|
|
|
|
Money market fund |
|
$ |
89,645 |
|
|
$ |
89,645 |
|
|
$ |
— |
|
Total in cash and cash equivalents |
|
$ |
89,645 |
|
|
$ |
89,645 |
|
|
$ |
— |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
271,166 |
|
|
$ |
— |
|
|
$ |
270,705 |
|
Government treasury bills |
|
|
88,944 |
|
|
|
88,918 |
|
|
|
— |
|
Commercial paper and certificates of deposit |
|
|
65,022 |
|
|
|
— |
|
|
|
64,939 |
|
Foreign issuer debt securities |
|
|
24,377 |
|
|
|
— |
|
|
|
24,338 |
|
Total in short-term investments |
|
$ |
449,509 |
|
|
$ |
88,918 |
|
|
$ |
359,982 |
|
Long-term investments |
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
204,548 |
|
|
$ |
— |
|
|
$ |
203,916 |
|
Government treasury bills |
|
|
49,848 |
|
|
|
49,679 |
|
|
|
— |
|
Foreign issuer debt securities |
|
|
16,042 |
|
|
|
— |
|
|
|
16,007 |
|
Total in long-term investments |
|
$ |
270,438 |
|
|
$ |
49,679 |
|
|
$ |
219,923 |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
Cash equivalents |
|
|
|
|
|
|
|
|
|
Money market fund |
|
$ |
152,951 |
|
|
$ |
152,951 |
|
|
$ |
— |
|
Commercial paper and certificates of deposit |
|
|
45,430 |
|
|
|
— |
|
|
|
45,432 |
|
Corporate bonds |
|
|
36,021 |
|
|
|
— |
|
|
|
36,022 |
|
Foreign issuer debt securities |
|
|
1,191 |
|
|
|
— |
|
|
|
1,191 |
|
Total in cash and cash equivalents |
|
$ |
235,593 |
|
|
$ |
152,951 |
|
|
$ |
82,645 |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
163,331 |
|
|
$ |
— |
|
|
$ |
163,335 |
|
Government treasury bills |
|
|
88,154 |
|
|
|
88,206 |
|
|
|
— |
|
Commercial paper and certificates of deposit |
|
|
35,717 |
|
|
|
— |
|
|
|
35,726 |
|
Foreign issuer debt securities |
|
|
17,706 |
|
|
|
— |
|
|
|
17,708 |
|
Total in short-term investments |
|
$ |
304,908 |
|
|
$ |
88,206 |
|
|
$ |
216,769 |
|
Long-term investments |
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
208,419 |
|
|
$ |
— |
|
|
$ |
208,482 |
|
Government treasury bills |
|
|
43,468 |
|
|
|
43,540 |
|
|
|
— |
|
Foreign issuer debt securities |
|
|
9,571 |
|
|
|
— |
|
|
|
9,573 |
|
Total in long-term investments |
|
$ |
261,458 |
|
|
$ |
43,540 |
|
|
$ |
218,055 |
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Company's Financial Instruments of Carrying Values and Fair Values |
The following table summarizes the carrying values and fair values of the Company’s financial instruments that were not carried at fair value on the condensed consolidated balance sheets (in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
Amortized
Cost Basis |
|
|
Allowance
for Credit
Losses |
|
|
Net carrying
amount |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Aggregate Fair Value |
|
U.S. Government securities |
|
$ |
138,791 |
|
|
$ |
— |
|
|
$ |
138,791 |
|
|
$ |
— |
|
|
$ |
(194 |
) |
|
$ |
138,597 |
|
Corporate securities |
|
|
540,736 |
|
|
|
— |
|
|
|
540,736 |
|
|
|
6 |
|
|
|
(1,181 |
) |
|
|
539,561 |
|
Foreign securities |
|
|
40,420 |
|
|
|
— |
|
|
|
40,420 |
|
|
|
1 |
|
|
|
(76 |
) |
|
|
40,345 |
|
Total held to maturity securities |
|
$ |
719,947 |
|
|
$ |
— |
|
|
$ |
719,947 |
|
|
$ |
7 |
|
|
$ |
(1,451 |
) |
|
$ |
718,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Amortized
Cost Basis |
|
|
Allowance
for Credit
Losses |
|
|
Net carrying
amount |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Aggregate Fair Value |
|
U.S. Government securities |
|
$ |
131,623 |
|
|
$ |
— |
|
|
$ |
131,623 |
|
|
$ |
123 |
|
|
$ |
— |
|
|
$ |
131,746 |
|
Corporate securities |
|
|
407,466 |
|
|
|
— |
|
|
|
407,466 |
|
|
|
105 |
|
|
|
(28 |
) |
|
|
407,543 |
|
Foreign securities |
|
|
27,277 |
|
|
|
— |
|
|
|
27,277 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
27,281 |
|
Total held to maturity securities |
|
$ |
566,366 |
|
|
$ |
— |
|
|
$ |
566,366 |
|
|
$ |
233 |
|
|
$ |
(29 |
) |
|
$ |
566,570 |
|
|
| Schedule of Amortized Cost and Estimated Fair Value of Held to Maturity Securities by Contractual Maturity |
The amortized cost and estimated fair value of held to maturity securities by contractual maturity are shown below (in thousands):
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
Amortized
Cost Basis |
|
|
Fair Value |
|
Due in less than one year |
|
$ |
449,509 |
|
|
$ |
448,900 |
|
Due after one year through five years |
|
|
270,438 |
|
|
|
269,603 |
|
Total |
|
$ |
719,947 |
|
|
$ |
718,503 |
|
December 31, 2025 |
|
|
|
|
|
|
Due in less than one year |
|
$ |
304,908 |
|
|
$ |
304,975 |
|
Due after one year through five years |
|
|
261,458 |
|
|
|
261,595 |
|
Total |
|
$ |
566,366 |
|
|
$ |
566,570 |
|
|
|
|
|
|
|
|
|
| 2024 Warrants |
|
| Fair Value, Option, Quantitative Disclosures [Line Items] |
|
| Schedule of Valuation Techniques and Significant Unobservable Inputs |
The significant inputs, including significant unobservable inputs, used in the recurring Level 3 fair value measurements of the 2024 Warrants are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Inputs |
|
March 18, 2026 |
|
|
March 31, 2025 |
|
Expected term (years) |
|
N/A |
|
|
|
1.0 |
|
Equity volatility |
|
|
90.0 |
% |
|
|
57.0 |
% |
Risk-free rate |
|
|
3.7 |
% |
|
|
4.0 |
% |
|
| June 2022 Warrants |
|
| Fair Value, Option, Quantitative Disclosures [Line Items] |
|
| Schedule of Valuation Techniques and Significant Unobservable Inputs |
The significant inputs, including significant unobservable inputs, used in the recurring Level 3 fair value measurements of the June 2022 Warrants are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Inputs |
|
March 31, 2026 |
|
|
March 31, 2025 |
|
Expected term (years) |
|
1.9 |
|
|
2.9 |
|
Equity volatility |
|
|
90.0 |
% |
|
|
57.0 |
% |
Risk-free rate |
|
|
3.8 |
% |
|
|
3.8 |
% |
|
| December 2022 Warrants |
|
| Fair Value, Option, Quantitative Disclosures [Line Items] |
|
| Schedule of Valuation Techniques and Significant Unobservable Inputs |
The significant inputs, including significant unobservable inputs, used in the recurring Level 3 fair value measurements of the December 2022 Warrants were as follows:
|
|
|
|
|
Significant Inputs |
|
March 31, 2025 |
|
Expected term (years) |
|
2.9 |
|
Equity volatility |
|
|
57.0 |
% |
Discount for lack of marketability |
|
|
27.0 |
% |
Risk-free rate |
|
|
3.8 |
% |
|
| C-2 Notes |
|
| Fair Value, Option, Quantitative Disclosures [Line Items] |
|
| Schedule of Valuation Techniques and Significant Unobservable Inputs |
The significant inputs, including significant unobservable inputs, used in the recurring Level 3 fair value measurements of the C-2 Notes were as follows:
|
|
|
|
|
Significant Inputs |
|
March 31, 2025 |
|
Discount rate |
|
|
13.2 |
% |
Credit spread |
|
|
9.0 |
% |
Equity volatility |
|
|
57.0 |
% |
Risk-free rate |
|
|
4.2 |
% |
|