v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

6. Fair Value Measurements

ASC Topic 820, Fair Value Measurement, establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing an 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.

ASC Topic 820 identifies fair value as the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a three-tier fair value hierarchy that distinguishes between the following:

•
Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities.
•
Level 2 – Inputs, other than quoted prices in active markets, which are observable for the asset or liability, either directly or indirectly.
•
Level 3 – Unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions.

Assets and liabilities measured at fair value are classified in their entirety based on 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. The Company’s financial assets are subject to fair value measurements on a recurring basis.

The Company categorizes its money market funds as Level 1 and U.S. treasury securities as Level 2. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. The fair value of the Company’s investments in certain U.S. treasury securities are classified as Level 2 and are included in marketable securities on the consolidated balance sheets.

 

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2026:

 

 

September 30, 2026

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Fair Value

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair Market

 

 

Hierarchy

 

Cost Basis

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Level 1

 

$

148,739

 

 

$

—

 

 

$

—

 

 

$

148,739

 

Marketable securities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

Level 2

 

 

11,892

 

 

 

—

 

 

 

(30

)

 

 

11,862

 

Total

 

 

$

160,631

 

 

$

—

 

 

$

(30

)

 

$

160,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no marketable securities as of December 31, 2025.

 

The contractual maturity of the marketable securities as of September 30, 2026 was:

 

 

Amortized

 

 

Fair

 

 

Cost

 

 

Value

 

Due in one year or less

$

11,892

 

 

$

11,862

 

Total

$

11,892

 

 

$

11,862

 

 

 

 

 

 

 

 

The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices. Investments in U.S. government treasury securities have been classified as Level 2 as they are valued using quoted prices in less active markets or other directly or indirectly observable inputs. Fair values of U.S. government treasury securities were derived based on input of market prices from multiple sources at each reporting period. There were no transfers of financial assets between Level 1, Level 2, or Level 3, during the periods presented.

 

The Company periodically reviews its portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For debt securities where the fair value of the investment is less than the amortized cost basis, the Company has assessed at the individual security level for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on marketable securities at September 30, 2026 were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities.

No assets or liabilities were transferred into or out of their classifications during the three months ended September 30, 2026 and 2025.