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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis
The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The U.S. government securities are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets.
The Company had no transfers between levels of the fair value hierarchy of its assets measured at fair value.
The following tables present the fair value of the Company’s financial assets determined using the inputs defined above (in thousands):
June 30, 2026
Level 1Level 2Level 3Total
Assets
Money market funds$150,761 $— $— $150,761 
U.S. government securities— 344,595 — 344,595 
Strategic investments— — 73,682 73,682 
Total$150,761 $344,595 $73,682 $569,038 
Liabilities
Contingent consideration— — 21,002 21,002 
Total$— $— $21,002 $21,002 

December 31, 2025
Level 1Level 2Level 3Total
Assets
Money market funds$142,423 $— $— $142,423 
U.S. government securities— 347,751 — 347,751 
Strategic investments— — 69,913 69,913 
Total$142,423 $347,751 $69,913 $560,087 
Liabilities
Contingent consideration— — 20,407 20,407 
Total $— $— $20,407 $20,407 
Fair Value of Strategic Investments
The Company holds both strategic loan and equity investments in privately held companies, and as such, limited information is available. On a quarterly basis, the Company monitors information that becomes available and adjusts the carrying values of these investments if there are identified events or changes in circumstances that have a significant effect on their fair values. The change in fair value is recorded within other income, net in the Company’s unaudited condensed consolidated statements of operations.
The aggregate carrying amount of the Company's strategic investments were comprised of the following (in thousands):
June 30, 2026December 31, 2025
Long-term strategic investments
Strategic loan investments$65,333 $66,064 
Strategic equity investments8,349 3,849 
Total$73,682 $69,913 
Short-term strategic investments (within other current assets)
Strategic loan investments
$500 $— 
Total$74,182 $69,913 
The following table sets forth the changes in the estimated fair value of the Company's strategic investments measured (in thousands):
Six Months Ended
June 30, 2026		Year Ended
December 31, 2025		Six Months Ended
June 30, 2025
Balance, beginning of period$69,913 $61,902 $61,902 
Additions during the period2,000 2,300 — 
Changes in estimated fair value2,269 5,711 2,995 
Balance, end of period$74,182 $69,913 $64,897 
Strategic Loan Investments
The Company elected to apply the fair value option to the strategic loan investments. During the three and six months ended June 30, 2026, the fair value of the strategic loan investments increased by $0.8 million and $1.7 million, respectively. During the three and six months ended June 30, 2025, the Company increased the fair value of the strategic loan investments by $2.2 million and $3.0 million, respectively.
During the year ended December 31, 2024, the Company made an aggregate $55.0 million strategic loan investments in BioIntelliSense, Inc. (“BioIS”), a privately-held company. The aggregate fair value of the BioIS strategic loan investments is $65.3 million and $63.7 million as of June 30, 2026 and December 31, 2025, respectively. The fair value of the loan investments in BioIS is determined by using a probability-weighted expected return model (“PWERM”) and a discounted cash flow valuation model with scenarios that correspond to the contractual settlement events. The remaining strategic loan investments are comprised of individually immaterial investments.
The following table sets forth the recurring Level 3 fair value measurements of the loan investments including the significant unobservable inputs:
June 30, 2026December 31, 2025
Discount rate10.8 %10.8 %
Equity volatility85.0 %85.0 %
Expected years (range)2026-20292026-2029
Strategic Equity Investments
The Company measures the fair value for strategic equity investments based on cost, less impairment, if any, and adjusts for changes in observable price changes in orderly transactions for identical or similar investment of the same issuer. During the three and six months ended June 30, 2026, the Company increased the fair value of the strategic equity investments by nil and $0.6 million, respectively. During the three and six months ended June 30, 2025, the Company recognized no increase in the fair value of its strategic equity investments.
Contingent Consideration Liabilities
The Company established contingent consideration liabilities in conjunction with the development milestones associated with the acquisition of certain technology from BioIS. The fair value of contingent consideration liabilities is determined using PWERM, with scenarios that correspond to the contractual settlement events. There are significant inputs of such model that are not observable in the market, such as probability of achievement of stated milestones and expected term. The unobservable inputs represent a Level 3 measurement. Fair value adjustments to contingent consideration liabilities are assessed quarterly and recorded through operating expenses within acquired in-process research and development in the unaudited condensed consolidated statements of operations. Refer to Note 7, Commitments and Contingencies, for further details relating to the BioIS contingent consideration liabilities.
The following table sets forth the recurring Level 3 fair value measurements of contingent consideration liabilities associated with the development agreement milestones including the significant unobservable inputs:
June 30, 2026December 31, 2025
Probability of achievement (range)
79.0% - 100.0%
79.0% - 100.0%
Expected years20262026
Contingent consideration liabilities for BioIS at the inception of acquisition of the licensed technology were $17.0 million. Contingent consideration liabilities are included in accrued liabilities in the Company's unaudited condensed consolidated balance sheet. The following table sets forth the changes in the estimated fair value of the Company’s contingent consideration liabilities measured on a recurring basis (Level 3) (in thousands):
Six Months Ended
June 30, 2026		Year Ended
December 31, 2025
Balance, beginning of period$20,407 $17,371 
Additions during the period— — 
Changes in estimated fair value595 3,036 
Balance at end of period$21,002 $20,407 
Fair Value of Senior Convertible Notes
The fair value, based on a quoted market price (Level 1), of the Company’s senior convertible notes due 2029 (the “2029 Notes”) is as follows (in thousands):
June 30, 2026December 31, 2025
Senior Convertible Notes due 2029$721,176 $924,097