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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

7. Fair Value Measurements

The Company’s investments include cash equivalents, available-for-sale investment securities consisting of money market funds, municipal bonds, and government sponsored enterprises in accordance with the Company’s investment policy, and equity securities. The Company’s investment policy defines allowable investment securities and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. All investment securities have a credit rating of at least Aa3/AA- or better, or P-1/A-1 or better, as determined by Moody’s Investors Service or Standard & Poor’s.

The Company’s cash equivalents, available-for-sale investment securities and equity securities are classified within the fair value hierarchy as defined by authoritative guidance. The Company’s investment securities and equity securities classified as Level 1 are valued using quoted market prices. The Company obtains the fair value of its Level 2 financial instruments from third-party pricing services. The pricing services utilize industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. The Company validates the prices provided by the third-party pricing services by reviewing their pricing methods and matrices, and obtaining market values from other pricing sources. After completing the validation procedures, the Company did not adjust or override any fair value measurements provided by these pricing services as of September 30, 2025 and December 31, 2024.

The Company has not transferred any investment securities between the classification levels.

The recurring fair value measurements of the Company’s financial assets and liabilities measured at September 30, 2025 and December 31, 2024 consisted of the following (in thousands):

 

 

 

 

 

 

Fair Value Measurements at
Reporting Date Using

 

 

 

September 30,
2025

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

155,844

 

 

$

155,844

 

 

$

—

 

 

$

—

 

U.S. Treasury notes

 

 

407,207

 

 

 

407,207

 

 

 

—

 

 

 

—

 

Government sponsored enterprise securities

 

 

181,816

 

 

 

—

 

 

 

181,816

 

 

 

—

 

    Total

 

$

744,867

 

 

$

563,051

 

 

$

181,816

 

 

$

—

 

 

 

 

 

 

 

Fair Value Measurements at
Reporting Date Using

 

 

 

December 31,
2024

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

151,555

 

 

$

151,555

 

 

$

—

 

 

$

—

 

U.S. Treasury notes

 

 

245,903

 

 

 

245,903

 

 

 

—

 

 

 

—

 

Government sponsored enterprise securities

 

 

190,501

 

 

 

—

 

 

 

190,501

 

 

 

—

 

    Total

 

$

587,959

 

 

$

397,458

 

 

$

190,501

 

 

$

—