3. Investments

Available-for-sale investments

During the three months ended September 30, 2026, the Company began investing in U.S. Treasury securities with original maturities at the date of purchase of greater than three months. The Company classifies these debt securities as available-for-sale, as they may be sold prior to maturity. Available-for-sale investments are recorded at fair value, with unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) until realized. Investments with remaining maturities of one year or less are classified as short-term investments, and those with remaining maturities of more than one year as long-term investments. Premiums and discounts are amortized or accreted to interest income over the life of the security using the effective interest method. Realized gains and losses, if any, are determined using the specific-identification method.

For securities in an unrealized loss position, the Company assesses whether it intends to sell, or will more likely than not be required to sell, the security before recovery of its amortized cost basis, and whether any portion of the decline in fair value is due to credit losses. No allowance for credit losses has been recorded. The Company excludes accrued interest receivable from both the fair value and the amortized cost basis of its available-for-sale investments for purposes of identifying and measuring impairment, and presents accrued interest receivable within prepaid expenses and other current assets on the condensed consolidated balance sheets.

The Company did not hold any such investments as of December 31, 2025.

During the three and nine months ended September 30, 2026, the Company recognized gross unrealized losses on investments in U.S. Treasury securities of $476 and a related income tax benefit of $124, resulting in other comprehensive loss of $352. See Note 8, "Shareholders' equity."

As of September 30, 2026, all of the Company’s available-for-sale investments had been in a continuous unrealized loss position for less than 12 months. The unrealized losses are attributable to changes in market interest rates subsequent to purchase and not to credit quality. The Company does not intend to sell these securities, and it is not more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, no allowance for credit losses was recognized.

There were no sales of available-for-sale investments, and therefore no realized gains or losses, during the three and nine months ended September 30, 2026. Accrued interest receivable on investments in U.S. Treasury securities of $877 as of September 30, 2026 was included in prepaid expenses and other current assets on the condensed consolidated balance sheets.

The Company’s investments consist of U.S. Treasury securities, and its cash equivalents include government money market funds. Management believes these investments do not expose the Company to significant concentrations of credit risk.