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

3. Fair Value Measurements

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:

 

 

 

June 30, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

44,695

 

 

$

44,695

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

26,761

 

 

 

—

 

 

 

26,761

 

 

 

—

 

Corporate debt securities

 

 

44,005

 

 

 

—

 

 

 

44,005

 

 

 

—

 

Asset-backed securities

 

 

32,261

 

 

 

—

 

 

 

32,261

 

 

 

—

 

U.S. government securities

 

 

14,950

 

 

 

14,950

 

 

 

—

 

 

 

—

 

Total

 

$

162,672

 

 

$

59,645

 

 

$

103,027

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

51,333

 

 

$

51,333

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

29,139

 

 

 

—

 

 

 

29,139

 

 

 

—

 

Corporate debt securities

 

 

16,952

 

 

 

—

 

 

 

16,952

 

 

 

—

 

Asset-backed securities

 

 

7,280

 

 

 

—

 

 

 

7,280

 

 

 

—

 

U.S. government securities

 

 

29,927

 

 

 

29,927

 

 

 

—

 

 

 

—

 

Total

 

$

134,631

 

 

$

81,260

 

 

$

53,371

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Where applicable, the Company uses quoted market prices in active markets for identical assets to determine fair value. This pricing methodology applies to Level 1 investments, which are comprised of money market funds and U.S. government securities.

If quoted prices in active markets for identical assets are not available, then the Company uses quoted prices for similar assets or inputs other than quoted prices that are observable, either directly or indirectly. These investments are included in Level 2 and consist of commercial paper, corporate debt securities, and asset-backed securities. These assets are valued using market prices when available, adjusting for accretion of the purchase price to face value at maturity.

A financial instrument’s categorization within the valuation hierarchy is based upon 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.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3 within the valuation hierarchy. As of June 30, 2026 and December 31, 2025, the deferred royalty obligation related to the sale of future Vaxcyte royalties was classified as Level 3 within the valuation hierarchy. Refer to Note 8 below for information relating to the Purchase Agreement between the Company and Blackstone, pursuant to which the Company sold to Blackstone its 4% royalty, or revenue interest, in potential future net sales of Vaxcyte’s pneumococcal conjugate vaccine, or PCV, products, including VAX-24 and VAX-31.