v3.26.1
Fair Value Measurements and Available for Sale Investments
 6 Months Ended
Jun. 30, 2026
Disclosure Text Block [Abstract]  
Fair Value Measurements and Available for Sale Investments

6. Fair Value Measurements and Available-for-Sale Investments

Fair Value Measurements

Our financial instruments consist principally of cash, cash equivalents, short-term and long-term investments, receivables, and accounts payable. Certain of our financial assets and liabilities have been recorded at fair value in the balance sheet in accordance with the accounting standards for fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes our assets and liabilities that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy:

 

 

Fair Value Measurements at End of Period Using:

 

(in thousands)

 

Fair Value

 

 

Quoted Market
Prices for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs (Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

At June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

140,791

 

 

$

140,791

 

 

$

—

 

 

$

—

 

Mutual funds(1)

 

 

26,186

 

 

 

26,186

 

 

 

—

 

 

 

—

 

At December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

140,380

 

 

$

140,380

 

 

$

—

 

 

$

—

 

Mutual funds(1)

 

 

91,359

 

 

 

91,359

 

 

 

—

 

 

 

—

 

U.S. Treasury securities(2)

 

 

63,268

 

 

 

63,268

 

 

 

—

 

 

 

—

 

Commercial and corporate obligations(2)

 

 

10,174

 

 

 

—

 

 

 

10,174

 

 

 

—

 

 

(1)
Included in cash and cash equivalents in the accompanying balance sheets.
(2)
Included in short-term investments in the accompanying balance sheets.

The following methods and assumptions were used to estimate the fair value of our financial instruments for which it is practicable to estimate that value:

Marketable Securities. For fair values determined by Level 1 inputs, which utilize quoted prices in active markets for identical assets, the level of judgment required to estimate fair value is relatively low. For fair values determined by Level 2 inputs, which utilize quoted prices in less active markets for similar assets, the level of judgment required to estimate fair value is also considered relatively low.

Fair Value of Other Financial Instruments

The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts payable, and accrued expenses approximate fair value due to their short-term nature.

Available-for-Sale Investments

We invest our excess cash in agency securities, debt instruments of financial institutions and corporations, commercial obligations, and U.S. Treasury securities, which we classify as available-for-sale investments. These investments are carried at fair value and are included in the tables above. As of June 30, 2026, we did not have any available-for-sale investments by security type, classified in short-term or long-term investments.

The aggregate market value, cost basis, and gross unrealized gains and losses of available-for-sale investments by security type, classified in cash equivalents, short-term and long-term investments as of December 31, 2025 are as follows:

 

(in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Total
Fair Value

 

Commercial and corporate obligations(1)

 

 

10,152

 

 

 

22

 

 

 

10,174

 

U.S. Treasury securities(2)

 

 

63,107

 

 

 

161

 

 

 

63,268

 

Total available-for-sale investments

 

$

73,259

 

 

$

183

 

 

$

73,442

 

 

 

 

(1)
Of our outstanding commercial and corporate obligations, $10.2 million have maturity dates of less than one year and $0.0 million have a maturity date of between one to two years as of December 31, 2025.
(2)
Of our outstanding U.S. Treasury securities, $63.3 million have maturity dates of less than one year and $0.0 million have a maturity date of between one to two years as of December 31, 2025.

There were no available-for-sale investments in an unrealized loss position as of June 30, 2026 or December 31, 2025. Accordingly, no allowance for credit losses was recorded.