| Investments |
2. Investments Investments consist of the following (in thousands): | | | | | | | | | | August 1, | | April 30, | | | | 2026 | | 2026 | | Short-term investments: | | | | | | | | Available-for-sale securities: | | | | | | | | U.S. government securities | | | 161,879 | | | 137,759 | | Corporate securities | | | 139,958 | | | 117,213 | | Total short-term investments | | | 301,837 | | | 254,972 | | Long-term investments: | | | | | | | | Available-for-sale securities: | | | | | | | | U.S. government securities | | | 20,879 | | | 14,106 | | Corporate securities | | | 11,962 | | | 6,953 | | Investments at cost | | | 8,000 | | | 8,000 | | Total long-term available-for-sale securities investments | | | 40,841 | | | 29,059 | | Equity method investments | | | | | | | | Investments in limited partnership funds | | | 53,936 | | | 52,069 | | Total equity method investments | | | 53,936 | | | 52,069 | | Total long-term investments | | $ | 94,777 | | $ | 81,128 | |
Available-For-Sale Securities As of August 1, 2026, the balance of available-for-sale securities consisted of U.S. government securities, money market funds, treasury bills, and high-grade corporate bonds. Interest earned from these investments is recorded in interest income (expense), net. Realized gains on sales of these investments on the basis of specific identification are recorded in interest income (expense), net. The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments as of August 1, 2026 (in thousands): | | | | | | | | | | | | | | | August 1, 2026 | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Fair | | | Cost | | Gains | | Losses | | Value | Corporate securities | | $ | 152,094 | | $ | — | | $ | (175) | | $ | 151,919 | U.S. government securities | | | 182,985 | | | — | | | (226) | | | 182,759 | Total available-for-sale securities | | $ | 335,079 | | $ | — | | $ | (401) | | $ | 334,678 |
The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments as of April 30, 2026 (in thousands): | | | | | | | | | | | | | | | April 30, 2026 | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Fair | | | Cost | | Gains | | Losses | | Value | Corporate securities | | $ | 124,306 | | $ | 1 | | $ | (142) | | $ | 124,165 | U.S. government securities | | | 151,940 | | | 1 | | | (75) | | | 151,866 | Total available-for-sale securities | | $ | 276,246 | | $ | 2 | | $ | (217) | | $ | 276,031 |
Equity Securities Certain equity securities and warrants are measured at fair value with net unrealized gains and losses from changes in the fair value recognized in other income (expense), net. Unrealized gain (loss) recorded (in thousands): | | | | | | | | Three months ended | | | August 1, 2026 | | August 2, 2025 | Net gain (loss) recognized during the period on equity securities | | $ | — | | $ | 2,701 | Less: Net gain recognized during the period on equity securities sold during the period | | | — | | | — | Unrealized gain (loss) recognized during the period on equity securities still held at the reporting date | | $ | — | | $ | 2,701 |
Investments Measured at Cost
On December 22, 2025, the Company invested $3,000,000 in a privately-held technology company through a Simple Agreement for Future Equity (“SAFE”). The SAFE provides the Company with the right to receive equity in the issuing company upon the occurrence of certain future events, including a qualifying equity financing or a liquidity event. The Company received 254,634 preferred shares of the Company effective May 2026. The Company measures the investment at cost, less any impairment and is recorded in long-term investments. On April 13, 2026, the Company invested $5,000,000 in a privately-held technology company through a convertible promissory note. The note bears interest at 4.03% annually, matures in 3 years, automatically converts into preferred equity upon a qualified financing event subject to a conversion discount, optional conversion into preferred equity upon a non-qualified financing event subject to a conversion discount, or optional conversion into preferred equity absent subsequent financing without a conversion discount.
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