v3.26.3
Investment Securities and Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Investment Securities and Fair Value Measurements Investment Securities and Fair Value Measurements
Investment Securities
Investment securities classified as available-for-sale consisted of the following as of September 30, 2026 and December 31, 2025 (in thousands):
September 30, 2026
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
U.S. government and agency securities48,794 — (54)48,740 
Total available-for-sale investment securities$48,794 $— $(54)$48,740 
December 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
U.S. government and agency securities144,216 40 — 144,256 
Total available-for-sale investment securities$144,216 $40 $— $144,256 
As of September 30, 2026, for available-for-sale debt securities in an unrealized loss position, the Company evaluated whether any portion of the decline in fair value below amortized cost was due to credit losses. Based on this evaluation, and considering that it is more likely than not that the Company will hold the securities until maturity or recovery of the cost basis, no allowance for credit losses was recorded for available-for-sale investment securities as of September 30, 2026 or December 31, 2025.
The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands):
September 30, 2026December 31, 2025
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due in one year or less$48,794 $48,740 $144,216 $144,256 
Total available-for-sale investment securities$48,794 $48,740 $144,216 $144,256 
During the nine months ended September 30, 2026 and 2025, we had sales and maturities of investment securities, as follows (in thousands):
Nine Months Ended September 30, 2026
Gross Realized GainsGross Realized LossesGross Proceeds from Sales Gross Proceeds from Maturities
U.S. government and agency securities$— $(61)$140,154 $47,400 
Total$— $(61)$140,154 $47,400 
Nine Months Ended September 30, 2025
Gross Realized GainsGross Realized LossesGross Proceeds from SalesGross Proceeds from Maturities
U.S. government and agency securities94 (49)202,662 76,620 
Total$94 $(49)$202,662 $76,620 
The tables above do not include our strategic investments of non-marketable equity investments in privately-held companies, which are recorded in long-term investments in our Condensed Consolidated Balance Sheets. These strategic investments consist of the following as of September 30, 2026 and December 31, 2025 (in thousands):
September 30,
2026		December 31,
2025
Second Nature
$75,000 $75,000 
Others
12,668 2,033 
    Total long-term investments
$87,668 $77,033 
In April 2026, we purchased a minority, non-controlling equity interest in a private company, for $10.0 million, paid with cash on hand.
The cumulative amount of upward adjustments recognized on our strategic investments of non-marketable equity investments was $0.6 million as of September 30, 2026. The entire amount was recognized during the first quarter of 2026 as a result of an observable price change for one privately held technology company. There were no cumulative downward adjustments as of September 30, 2026.
There were no realized or unrealized gains or losses from remeasurement of investments in equity securities under the measurement alternative for the nine months ended September 30, 2025.
Fair Value Measurements
Recurring Fair Value Measurements
The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 by level within the fair value hierarchy (in thousands):
September 30, 2026
Level 1Level 2Total Fair
Value
Cash equivalents:
Money market funds$207,620 $— $207,620 
U.S. government and agency securities— 14,952 14,952 
Available-for-sale investment securities:
   U.S. government and agency securities— 48,740 48,740 
Total$207,620 $63,692 $271,312 
December 31, 2025
Level 1Level 2Total Fair
Value
Cash equivalents:
Money market funds$89,365 $— $89,365 
Available-for-sale investment securities:
U.S. government and agency securities— 144,256 144,256 
Total$89,365 $144,256 $233,621 
The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short maturity of these items.
Fair value for our Level 1 investment securities is based on market prices for identical assets. Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, other observable inputs like market transactions involving comparable securities are used.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
Strategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy, as their nonrecurring fair value measurements may include observable and unobservable inputs. As of September 30, 2026 and December 31, 2025, the balance of strategic investments was $87.7 million and $77.0 million, respectively. We recognized a net unrealized gain of $0.6 million in connection with our investment in a privately held technology company in Other (loss) income, net in our Condensed Consolidated Statements of Operations for the nine months ended September 30, 2026. We did not recognize any net unrealized gain or loss for our strategic investments for the nine months ended September 30, 2025.