v3.26.3
Marketable Securities and Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Marketable Securities and Fair Value Measurements Marketable Securities and Fair Value Measurements
Marketable Securities
In the fourth quarter of 2025, the Company invested in marketable securities, in the form of U.S. Treasury Bills. As of September 30, 2026, and December 31, 2025, the Company’s marketable securities were classified as available-for-sale investments and mature within one year from the balance sheet date. During the three and nine months ended September 30, 2026, the Company did not have any realized gains or losses. During the three and nine months ended September 30, 2026, the Company did not recognize credit losses related to the available-for-sale securities, and there was no allowance for credit losses recorded as of September 30, 2026, and December 31, 2025.
The following tables summarize the Company's marketable securities as of September 30, 2026, and December 31, 2025:
September 30, 2026
Amortized CostGross unrealized gainsGross unrealized lossesEstimated Fair Value
(Amounts in thousands)
Short-term investments:
U.S. Treasury bills$136,232 $— $(213)$136,019 
Total$136,232 $— $(213)$136,019 
December 31, 2025
Amortized CostGross unrealized gainsGross unrealized lossesEstimated Fair Value
(Amounts in thousands)
Short-term investments:
U.S. Treasury bills$201,554 $55 $(2)$201,607 
Total$201,554 $55 $(2)$201,607 
Fair Value Measured on a Recurring Basis
The Company uses various valuation approaches in determining the fair value of its assets and liabilities required to be recorded or disclosed at fair value. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:
Level 1 -Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Level 2 -Valuations based on observable market based inputs or unobservable inputs that are corroborated by market data, each either directly or indirectly.
Level 3 -Valuations based on inputs that are unobservable or significant to the overall fair value measurement.
The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.
Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of September 30, 2026, and December 31, 2025:
September 30, 2026
Level 1Level 2Level 3Total
(Amounts in thousands)
Assets:
Cash and cash equivalents:
Cash (1)
$701,979 $— $— $701,979 
Money market accounts24,981 — — 24,981 
Total$726,960 $— $— $726,960 
Marketable securities:
U.S. Treasury bills$— $136,019 $— $136,019 
Total$— $136,019 $— $136,019 
Total assets$726,960 $136,019 $— $862,979 
Liabilities:
Contingent consideration$— $2,254 $— $2,254 
Total liabilities$— $2,254 $— $2,254 
December 31, 2025
Level 1Level 2Level 3Total
(Amounts in thousands)
Assets:
Cash and cash equivalents:
Cash (1)
$88,148 $— $— $88,148 
Money market accounts477,873 — — 477,873 
Total$566,021 $— $— $566,021 
Marketable securities:
U.S. Treasury bills$— $201,607 $— $201,607 
Total$— $201,607 $— $201,607 
Total assets$566,021 $201,607 $— $767,628 
Liabilities:
Contingent consideration$— $— $5,049 $5,049 
Noncurrent contingent consideration— — 1,304 1,304 
Total liabilities$— $— $6,353 $6,353 
(1)Cash and cash equivalents are recorded at carrying value, which approximate fair value.
Contingent Consideration – Earnout
In connection with the acquisition of Tantti Laboratory Inc. (“Tantti”), the Company has an obligation to pay a maximum of $54.5 million (undiscounted) in contingent consideration earnouts in cash over a three-year earnout period beginning January 1, 2025, and ending December 31, 2027. During the nine months ended September 30, 2026, the Company paid $5.2 million in cash for the Tantti contingent consideration earnouts. As of September 30, 2026, the estimated fair value of the remaining obligation is $2.3 million, which is classified as current within the condensed consolidated balance sheet.
A reconciliation of the change in fair value of contingent consideration – earnout is included in the following table (amounts in thousands):
Balance at December 31, 2025$6,353 
Increase in fair value of contingent consideration earnouts1,459 
Earnout payment - cash(5,225)
Cumulative translation adjustment(333)
Balance at September 30, 2026$2,254 
Changes in the projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future.
Convertible Senior Notes
At September 30, 2026, and December 31, 2025, the fair value of the Company’s 1.00% Convertible Senior Notes due 2028 (the “2023 Notes”) was $652.2 million and $603.1 million, respectively. The fair value of the 2023 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2023 Notes as of September 30, 2026, and December 31, 2025. See Note 8, “Convertible Senior Notes”, for additional information.
Fair Value Measured on a Nonrecurring Basis
During the three months ended September 30, 2026, the Company determined the developed-technology intangible assets related to an intellectual property license agreement were impaired, as the asset would not generate future undiscounted cash flows and therefore was not recoverable. Accordingly, the Company recorded a $41.2 million impairment charge, representing the excess of carrying value over fair value. See Note 6, “Goodwill and Intangible Assets”, for more information.