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

4. Fair Value of Financial Instruments

The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

 

 

 

 

 

June 30, 2026

 

 

 

Valuation Hierarchy

 

Amortized
Cost

 

 

Unrealized
Losses

 

 

Unrealized
Gains

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

95,235

 

 

$

(98

)

 

$

9

 

 

$

95,146

 

Commercial paper

 

Level 2

 

 

4,215

 

 

 

—

 

 

 

—

 

 

 

4,215

 

U.S. Treasury securities

 

Level 2

 

 

50,699

 

 

 

(53

)

 

 

7

 

 

 

50,653

 

U.S. government agency securities

 

Level 2

 

 

7,794

 

 

 

(3

)

 

 

1

 

 

 

7,792

 

Total short-term investments

 

 

 

 

157,943

 

 

 

(154

)

 

 

17

 

 

 

157,806

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

47,354

 

 

$

(205

)

 

$

—

 

 

$

47,149

 

U.S. government agency securities

 

Level 2

 

 

10,605

 

 

 

(83

)

 

 

—

 

 

 

10,522

 

Total long-term investments

 

 

 

 

57,959

 

 

 

(288

)

 

 

—

 

 

 

57,671

 

Total investments

 

 

 

 

215,902

 

 

 

(442

)

 

 

17

 

 

 

215,477

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

 

 

 

 

 

 

 

 

 

$

23,960

 

Total Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

23,960

 

 

 

 

 

 

December 31, 2025

 

 

 

Valuation Hierarchy

 

Amortized
Cost

 

 

Unrealized
Losses

 

 

Unrealized
Gains

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

134,582

 

 

$

(4

)

 

$

269

 

 

$

134,847

 

Commercial paper

 

Level 2

 

 

25,952

 

 

 

—

 

 

 

—

 

 

 

25,952

 

U.S. Treasury securities

 

Level 2

 

 

66,753

 

 

 

—

 

 

 

96

 

 

 

66,849

 

U.S. government agency securities

 

Level 2

 

 

8,970

 

 

 

—

 

 

 

27

 

 

 

8,997

 

Total short-term investments

 

 

 

 

236,257

 

 

 

(4

)

 

 

392

 

 

 

236,645

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

11,757

 

 

$

(3

)

 

$

5

 

 

$

11,759

 

U.S. Treasury securities

 

Level 2

 

 

4,013

 

 

 

—

 

 

 

16

 

 

 

4,029

 

U.S. government agency securities

 

Level 2

 

 

318

 

 

 

—

 

 

 

1

 

 

 

319

 

Total long-term investments

 

 

 

 

16,088

 

 

 

(3

)

 

 

22

 

 

 

16,107

 

Total investments

 

 

 

 

252,345

 

 

 

(7

)

 

 

414

 

 

 

252,752

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

 

 

 

 

 

 

 

 

 

$

33,869

 

Commercial paper

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

5,264

 

Total cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

39,133

 

Investments are classified as Level 1 within the fair value hierarchy if their quoted prices are available in active markets for identical securities. Investments in money market funds of $24.0 million and $33.9 million as of June 30, 2026 and December 31, 2025, respectively, were classified as Level 1 instruments and were included in cash equivalents.

Investments in corporate debt securities, commercial paper and government securities are valued using Level 2 inputs. Level 2 securities are initially valued at the transaction price and subsequently valued and reported upon utilizing inputs other than quoted

prices that are observable either directly or indirectly, such as quotes from third-party pricing vendors. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves, require the exercise of judgment and use of estimates, that if changed, could significantly affect the Company’s financial position and results of operations. Accrued interest receivable related to investments was $2.1 million and $2.0 million as of June 30, 2026 and December 31, 2025, respectively, and included as part of prepaid expenses and other current assets in the condensed balance sheets.

The fair value of the equipment with a net book value of $4.1 million that was impaired during the second quarter of 2026 was determined using a quote received from an independent third-party, which the Company determined to be an unobservable Level 3 input. The fair value of the equipment with a net book value of $0.9 million was determined using a market approach based on estimated sales proceeds, which the Company also determined to be an unobservable Level 3 input. See Note 5, Balance Sheet Components, for additional information. The market participant estimated borrowing rate of 8% that was utilized in the discounted cash flow analysis for the impairment of the right-of-use assets is also an unobservable Level 3 input. See Note 6, Leases, for additional information.

The Company has classified its investment securities as current and non-current assets on the condensed balance sheets based on each security's contractual maturity date, and all investment securities are accounted for as available-for-sale because these investment securities are considered available for use in operations. All of our long-term investments as of June 30, 2026 had maturities between one and two years.

The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s available-for-sale securities as of June 30, 2026 and December 31, 2025 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. The Company concluded that an allowance for credit losses was unnecessary as of June 30, 2026 and December 31, 2025. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive income/(loss).

During the six months ended June 30, 2026 and 2025, the Company received $4.0 million and $10.0 million, respectively, in proceeds from available-for-sale securities called prior to maturity, resulting in an immaterial realized gain and included within maturities of investments. The Company uses the specific identification method to determine the cost basis of investments sold.