v3.26.1
Marketable Securities and Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Disclosure Text Block [Abstract]  
Marketable Securities and Fair Value Measurements
2.
Marketable Securities and Fair Value Measurements

Marketable Securities

In the fourth quarter of 2025, the Company invested in marketable securities, in the form of U.S. Treasury Bills. As of June 30, 2026 and December 31, 2025, the Company’s marketable securities were classified as available-for-sale investments and mature within one year from the balance sheet date. During the three and six months ended June 30, 2026, the Company did not have any realized gains

or losses. During the three and six months ended June 30, 2026, the Company did not recognize credit losses related to the available-for-sale securities, and there was no allowance for credit losses recorded as of June 30, 2026 and December 31, 2025.

The following tables summarize the Company's marketable securities as of June 30, 2026 and December 31, 2025:

 

 

June 30, 2026

 

 

 

Amortized Cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Estimated Fair Value

 

 

 

(Amounts in thousands)

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

$

203,794

 

 

$

—

 

 

$

(128

)

 

$

203,666

 

Total

 

$

203,794

 

 

$

—

 

 

$

(128

)

 

$

203,666

 

 

 

 

December 31, 2025

 

 

 

Amortized Cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Estimated Fair Value

 

 

 

(Amounts in thousands)

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

$

201,554

 

 

$

55

 

 

$

(2

)

 

$

201,607

 

Total

 

$

201,554

 

 

$

55

 

 

$

(2

)

 

$

201,607

 

Fair Value Measured on a Recurring Basis

The Company uses various valuation approaches in determining the fair value of its assets and liabilities required to be recorded or disclosed at fair value. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:

 

Level 1 -

Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

 

 

Level 2 -

Valuations based on observable market based inputs or unobservable inputs that are corroborated by market data, each either directly or indirectly.

 

 

Level 3 -

Valuations based on inputs that are unobservable or significant to the overall fair value measurement.

 

 

The availability of observable inputs can vary among the various types of financial assets and liabilities. 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. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of June 30, 2026 and December 31, 2025:

 

 

June 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Amounts in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Cash (1)

 

$

109,761

 

 

$

—

 

 

$

—

 

 

$

109,761

 

Money market accounts

 

 

497,022

 

 

 

—

 

 

 

—

 

 

 

497,022

 

Total

 

$

606,783

 

 

$

—

 

 

$

—

 

 

$

606,783

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

$

—

 

 

$

203,666

 

 

$

—

 

 

$

203,666

 

Total

 

$

—

 

 

$

203,666

 

 

$

—

 

 

$

203,666

 

Total assets

 

$

606,783

 

 

$

203,666

 

 

$

—

 

 

$

810,449

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

—

 

 

$

3,025

 

 

$

—

 

 

$

3,025

 

Noncurrent contingent consideration

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total liabilities

 

$

—

 

 

$

3,025

 

 

$

—

 

 

$

3,025

 

 

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Amounts in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Cash (1)

 

$

88,148

 

 

$

—

 

 

$

—

 

 

$

88,148

 

Money market accounts

 

 

477,873

 

 

 

—

 

 

 

—

 

 

 

477,873

 

Total

 

 

566,021

 

 

 

—

 

 

 

—

 

 

 

566,021

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

 

—

 

 

 

201,607

 

 

 

—

 

 

 

201,607

 

Total

 

$

—

 

 

$

201,607

 

 

$

—

 

 

$

201,607

 

Total assets

 

$

566,021

 

 

$

201,607

 

 

$

—

 

 

$

767,628

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

—

 

 

$

—

 

 

$

5,049

 

 

$

5,049

 

Noncurrent contingent consideration

 

 

—

 

 

 

—

 

 

 

1,304

 

 

 

1,304

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

6,353

 

 

$

6,353

 

(1) Cash and cash equivalents are recorded at carrying value, which approximate fair value.

Contingent Consideration – Earnout

In connection with the acquisition of Tantti Laboratory Inc. (“Tantti”), the Company has an obligation to pay a maximum of $54.5 million (undiscounted) in contingent consideration earnouts in cash over a three-year earnout period beginning January 1, 2025 and ending December 31, 2027. During the six months ended June 30, 2026, the Company paid $5.2 million in cash for the Tantti contingent consideration earnouts. As of June 30, 2026 the estimated fair value of the remaining obligation is $3.0 million, which is classified as current within the condensed consolidated balance sheet.

A reconciliation of the change in fair value of contingent consideration – earnout is included in the following table (amounts in thousands):

Balance at December 31, 2025

 

$

6,353

 

Increase in fair value of contingent consideration earnouts

 

 

2,162

 

Earnout payment - cash

 

 

(5,225

)

Cumulative translation adjustment

 

 

(265

)

Balance at June 30, 2026

 

$

3,025

 

Changes in the projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future.

Convertible Senior Notes

At June 30, 2026 and December 31, 2025, the fair value of the Company’s 1.00% Convertible Senior Notes due 2028 (the “2023 Notes”) was $571.9 million and $603.1 million, respectively. The fair value of the 2023 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2023 Notes as of June 30, 2026 and December 31, 2025. See Note 8, “Convertible Senior Notes”, for additional information.