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Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3. Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands):

 

 

Fair Value Measurements at

 

 

 

March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

40,051

 

 

$

—

 

 

$

—

 

 

$

40,051

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

 

—

 

 

 

39,876

 

 

 

—

 

 

 

39,876

 

Government securities

 

 

—

 

 

 

251,054

 

 

 

—

 

 

 

251,054

 

Government agency securities

 

 

—

 

 

 

107,796

 

 

 

—

 

 

 

107,796

 

 

 

$

40,051

 

 

$

398,726

 

 

$

—

 

 

$

438,777

 

 

 

 

Fair Value Measurements at

 

 

 

December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

47,947

 

 

$

—

 

 

$

—

 

 

$

47,947

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

 

—

 

 

 

79,359

 

 

 

—

 

 

 

79,359

 

Government securities

 

 

—

 

 

 

248,398

 

 

 

—

 

 

 

248,398

 

Government agency securities

 

 

—

 

 

 

110,137

 

 

 

—

 

 

 

110,137

 

 

$

47,947

 

 

$

437,894

 

 

$

—

 

 

$

485,841

 

 

Money market funds are highly liquid and actively traded marketable securities that generally transact at a stable $1.00 net asset value representing its estimated fair value. During the three months ended March 31, 2026 and the year ended December 31, 2025, there were no transfers between Level 1, Level 2 and Level 3.

The Company classifies its marketable securities as short-term because they are available to be converted into cash to fund current operations. The fair value of the Company’s U.S. Treasury bills, government securities, and government agency securities are classified as Level 2 because they are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency.

The underlying securities held in the money market funds held by the Company are all government backed securities.

Short-term investments consisted of the following (in thousands):

 

 

March 31, 2026

 

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

$

39,879

 

 

$

—

 

 

$

(3

)

 

$

39,876

 

Government securities

 

 

251,356

 

 

 

—

 

 

 

(302

)

 

 

251,054

 

Government agency securities

 

 

107,996

 

 

 

—

 

 

 

(200

)

 

 

107,796

 

 

$

399,231

 

 

$

—

 

 

$

(505

)

 

$

398,726

 

 

 

December 31, 2025

 

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bills

 

$

79,334

 

 

$

25

 

 

$

—

 

 

$

79,359

 

Government securities

 

 

247,968

 

 

 

430

 

 

 

—

 

 

 

248,398

 

Government agency securities

 

 

110,046

 

 

 

91

 

 

 

—

 

 

 

110,137

 

 

$

437,348

 

 

$

546

 

 

$

—

 

 

$

437,894

 

The contractual maturities of the Company’s short-term investments in available-for-sale debt securities held were as follows (in thousands):

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Due within one year

 

$

255,010

 

 

$

243,613

 

Due between one and two years

 

 

143,716

 

 

 

194,281

 

 

$

398,726

 

 

$

437,894

 

 

As of March 31, 2026, all investments in an unrealized loss position were in this position for less than 12 months. The Company evaluated its securities for potential other-than-temporary impairment and considered the decline in market value to be primarily attributable to current economic and market conditions. Additionally, the Company does not intend to sell the securities in an unrealized loss position and does not expect it will be required to sell the securities before recovery of the unamortized cost basis. Given the Company’s intent and ability to hold such securities until recovery, and the lack of a significant change in credit risk for these investments, the Company does not consider these investments to be impaired as of March 31, 2026. The Company did not recognize any credit losses during the three months ended March 31, 2026.