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Cash, Cash Equivalents and Short-Term Investments

6 Months Ended

Jun. 30, 2025

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Note 7. Cash, Cash Equivalents and Short-Term Investments

Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30,		December 31,
	2025		2024
Cash	$	38,939	$	34,003
Cash equivalents:
Money market mutual fund		204,477		134
Total cash and cash equivalents		243,416		34,137
Short-term investments:
U.S. Treasury notes and bills		31,505		41,948
Mutual funds		98,288		97,675
Corporate debt securities		52,766		76,837
Total short-term investments		182,559		216,460
Cash, cash equivalents and short-term investments	$	425,975	$	250,597

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at June 30, 2025 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	30,961	$	544	$	—	$	31,505
Corporate debt securities		52,137		629		—		52,766
Total available-for-sale investments	$	83,098	$	1,173	$	—	$	84,271

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of June 30, 2025:


	Amortized Cost		Fair Value
Due within one year	$	55,291	$	56,043
Due after one year through five years		27,807		28,228
Due after five years through ten years		—		—
Total	$	83,098	$	84,271

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at December 31, 2024 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	40,628	$	1,320	$	—	$	41,948
Corporate debt securities		75,297		1,540		—		76,837
Total available-for-sale investments	$	115,925	$	2,860	$	—	$	118,785

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of December 31, 2024:


	Amortized Cost		Fair Value
Due within one year	$	52,242	$	53,934
Due after one year through five years		63,683		64,851
Due after five years through ten years		—		—
Total	$	115,925	$	118,785

The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis, as well as adverse conditions related specifically to the security such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future based on new developments or changes in assumptions related to that particular security.

The following table shows the Company’s gross unrealized losses and fair value of available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025:


	Less than 12 Months				12 Months or More				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury notes	$	—	$	—	$	31,505	$	(875)	$	31,505	$	(875)
Corporate debt securities		—		—		52,766		(3,763)		52,766		(3,763)
Total	$	—	$	—	$	84,271	$	(4,638)	$	84,271	$	(4,638)

For U.S. Treasury notes, the unrealized losses were caused by interest rate increases since the investments were purchased. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, except in the case of an economic reason, such as the need to support a debt repurchase strategy. In such circumstances, the Company may consider selling these investments to optimize its overall capital structure. Absent an economic reason to sell the investments, the Company does not consider the U.S. Treasury notes to be other-than-temporarily impaired at June 30, 2025. For corporate debt securities, the unrealized losses were primarily caused by interest rate increases since the investments were purchased. The Company does not intend to sell these debt securities that are in an unrealized loss position, and it is not more likely than not that the Company will be required to sell these debt securities before recovery of their amortized cost bases, which may be at maturity, unless an economic rationale, such as the repurchase of debt or similar capital allocation decisions arises. Based on the credit quality of the debt securities, and the Company’s estimates of future cash flows to be collected from those securities, the Company believes the unrealized losses are not credit losses. Accordingly, absent an economic reason to sell the investments, the Company does not consider the corporate debt securities to be other-than-temporarily impaired at June 30, 2025.

During the three months ended June 30, 2025 and 2024, we had realized gains (losses) of ($1.0) million and ($0.5) million on available-for-sale investments, respectively.

During the six months ended June 30, 2025 and 2024, we had realized gains (losses) of ($1.9) million and $2.0 million on available-for-sale investments, respectively.

Equity Investments

We held investments in equity securities with readily determinable fair values of $98.3 million at June 30, 2025. These investments consist of mutual funds that invest primarily in tax-free municipal bonds and treasury inflation protected securities.

Unrealized gains (losses) during the six months ended June 30, 2025 and 2024 related to equity securities held at June 30, 2025 and 2024 are as follows (in thousands):


	Six Months Ended June 30,
	2025		2024
Net gains (losses) recognized during the period on equity securities	$	613	$	(1,026)
Less: net gains recognized during the period on equity securities sold during the period		—		—
Unrealized gains (losses) recognized during the period on equity securities still held at June 30, 2025 and 2024	$	613	$	(1,026)