Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2025

The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation (in thousands):


	As of September 30, 2025
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents:
Money market funds	$	971,705	$	971,705	$	—	$	—
Prepaid expenses and other current assets and other assets:
Certificates of deposit	4,834		—		4,834		—
Marketable securities:
U.S. Treasury securities	4,779,769		—		4,779,769		—
Publicly-traded equity securities	42,081		42,081		—		—
Total	$	5,798,389	$	1,013,786	$	4,784,603	$	—


	As of December 31, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents:
Money market funds	$	1,823,046	$	1,823,046	$	—	$	—
Prepaid expenses and other current assets and other assets:
Certificates of deposit	4,826		—		4,826		—
Marketable securities:
U.S. Treasury securities	3,110,687		—		3,110,687		—
Publicly-traded equity securities	20,776		20,776		—		—
Total	$	4,959,335	$	1,843,822	$	3,115,513	$	—

Certificates of Deposit

The Company’s certificates of deposit are Level 2 instruments. The fair value of such instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include interest rate curves, foreign exchange rates, and credit ratings.

Debt Securities

As of September 30, 2025 and December 31, 2024, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):


	As of September 30, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury securities	$	4,773,008	$	7,095	$	(334)	$	4,779,769
Total debt securities	$	4,773,008	$	7,095	$	(334)	$	4,779,769


	As of December 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury securities	$	3,110,278	$	1,022	$	(613)	$	3,110,687
Total debt securities	$	3,110,278	$	1,022	$	(613)	$	3,110,687

The Company did not sell any available-for-sale debt securities during the three months ended September 30, 2025 or during the three and nine months ended September 30, 2024. The Company sold $279.7 million of available-for-sale debt securities during the nine months ended September 30, 2025. The realized gains and losses from those sales were immaterial. No credit or non-credit losses related to debt securities were recorded during the three and nine months ended September 30, 2025 and 2024. As of September 30, 2025 and December 31, 2024, available-for-sale debt securities of $1.3 billion and $0.7 billion, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase. None of the available-for-sale debt securities held as of September 30, 2025 or December 31, 2024 were in a continuous unrealized loss position for greater than 12 months. The decline in fair value below amortized cost basis was not attributed to credit-related factors and it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis. No credit-related impairment losses were recorded as of September 30, 2025 or December 31, 2024. All of the Company’s U.S. Treasury securities had contractual maturities due within one year as of September 30, 2025 and December 31, 2024.

Equity Securities

The Company holds equity securities in publicly-traded companies, which are recorded at fair market value each reporting period in marketable securities on the condensed consolidated balance sheets. Realized and unrealized gains and losses are recorded in other income (expense), net on the condensed consolidated statements of operations. For the three months ended

September 30, 2025 and 2024, net unrealized losses from publicly-traded equity securities held at the end of each period were $6.0 million and $5.4 million, respectively. For the nine months ended September 30, 2025 and 2024, net unrealized losses from publicly-traded equity securities held at the end of each period were $2.8 million and $12.2 million, respectively.

The Company also holds equity securities in privately-held companies without readily determinable fair values that are recorded using the measurement alternative. As of September 30, 2025 and December 31, 2024, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $163.2 million and $64.9 million, respectively. The Company classifies these fair value measurements as Level 3 within the fair value hierarchy. There were upward adjustments on privately-held equity securities of $30.7 million during the three and nine months ended September 30, 2025, and no upward adjustments on privately-held equity securities during the three and nine months ended September 30, 2024. There were no downward adjustments or impairments on the privately-held equity securities during the three and nine months ended September 30, 2025 and 2024. Cumulative upward adjustments were $30.7 million and cumulative downward adjustments and impairments were not material on privately-held equity securities held by the Company as of September 30, 2025.

Additionally, we have accepted, and may continue to accept, securities as noncash consideration. Total equity securities received as noncash consideration was $26.2 million and $41.5 million during the nine months ended September 30, 2025 and 2024, respectively.

Strategic Commercial Contracts

From 2021 through 2022, the Company approved and entered into certain agreements (“Investment Agreements”) to purchase shares of various entities, including special purpose acquisition companies and/or other privately-held or publicly-traded entities (each, an “Investee,” and such purchases, the “Investments”). No Investments were purchased under such Investment Agreements during the nine months ended September 30, 2025 or the fiscal year ended December 31, 2024.

In connection with signing the Investment Agreements, each Investee or an associated entity and the Company entered into a commercial contract for access to the Company’s products and services (collectively, the “Strategic Commercial Contracts”). The Company assessed the concurrent agreements under the noncash consideration and consideration payable to a customer guidance within Accounting Standards Codification 606, Revenue from Contracts with Customers, as well as the commercial substance of each arrangement considering the customer’s ability and intention to pay as well as the Company’s obligation to perform under each contract. The Company performs ongoing assessments of customers’ financial condition, including the consideration of customers’ ability and intention to pay, and whether all or some portion of the value of such contracts continue to meet the criteria for revenue recognition, among other factors. During the three months ended September 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $2.9 million and $9.6 million, respectively. During the nine months ended September 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $13.2 million and $42.7 million, respectively.