v3.26.1
Fair Value Measurements
 3 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
The following table sets forth the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2026 and March 31, 2026, by level, within the fair value hierarchy (in thousands):
As of June 30, 2026As of March 31, 2026
Level 1Level 2Level 3Balance as of June 30,
2026		Level 1Level 2Level 3Balance as
of March 31,
2026
Assets:
Money market funds$1,171,368 $— $— $1,171,368 $1,374,706 $— $— $1,374,706 
U.S. Treasury securities— 1,888,731 — 1,888,731 — 2,124,179 — 2,124,179 
Corporate bonds— 704,895 — 704,895 — 748,422 — 748,422 
Investment in Datavant Class A units— — 258,154 258,154 — — 233,171 233,171 
Investment in Arbutus common shares186,468 — — 186,468 174,814 — — 174,814 
Total assets at fair value$1,357,836 $2,593,626 $258,154 $4,209,616 $1,549,520 $2,872,601 $233,171 $4,655,292 
There were no liabilities measured at fair value on a recurring basis as of June 30, 2026 and March 31, 2026, and there were no transfers into or out of Level 3 during the three months ended June 30, 2026.
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 condensed 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 three months ended June 30, 2026 and 2025 were as follows (in thousands):
Balance at March 31, 2025$167,361 
Change in fair value of investment in Datavant, included in net loss(3,586)
Balance at June 30, 2025$163,775 
Balance at March 31, 2026$233,171 
Change in fair value of investment in Datavant, included in net loss24,983 
Balance at June 30, 2026$258,154 
The change in fair value of the Level 3 liabilities during the three months ended June 30, 2025 was as follows (in thousands):
Balance at March 31, 2025$9,981 
Changes in fair value of liability instruments, included in net loss2,329 
Balance at June 30, 2025$12,310 
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 June 30, 2026As of March 31, 2026
Volatility90.0%90.0%
Discount rate11.5%11.8%