v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The Company accounts for certain financial assets at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. A three-level hierarchy is used to show the extent and level of judgment used to estimate fair value measurements.

Assets and liabilities measured at fair value on a recurring basis included the following as of June 30, 2026 (in thousands):

 

 

 

Using

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

Total Fair

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

Value as of

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

June 30, 2026

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

412,129

 

 

$

—

 

 

$

—

 

 

$

412,129

 

Long-term investment:

 

 

 

 

 

 

 

 

 

 

 

 

Failed Auction Security

 

 

—

 

 

 

—

 

 

 

2,525

 

 

 

2,525

 

 

Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2025 (in thousands):

 

 

 

Using

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

Total Fair

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

Value as of

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

December 31, 2025

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

367,340

 

 

$

—

 

 

$

—

 

 

$

367,340

 

Long-term investment:

 

 

 

 

 

 

 

 

 

 

 

 

Failed Auction Security

 

 

—

 

 

 

—

 

 

 

2,462

 

 

 

2,462

 

 

The change in the estimated fair value calculated for the investment valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Security) for the six months ended June 30, 2026 was as follows (in thousands):

 

Balance at the beginning of the period

$

2,462

 

Gain included in Other comprehensive income

 

63

 

Balance at the end of the period

$

2,525

 

 

Management utilized a probability weighted discounted cash flow model to determine the estimated fair value as of June 30, 2026.