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

3. Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

•
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
•
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
•
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

On a recurring basis, the Company measures certain financial assets and liabilities at fair value. The following tables summarize the fair value of the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

 

 

 

 

 

September 30, 2025

 

 

 

Valuation
Hierarchy

 

Amortized
Cost

 

 

Gross
Unrealized
Holding
Gains

 

 

Gross
Unrealized
Holding
Losses

 

 

Aggregate
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

46,151

 

 

$

—

 

 

$

—

 

 

$

46,151

 

Government bonds

 

Level 2

 

 

83,951

 

 

 

—

 

 

 

—

 

 

 

83,951

 

Total cash equivalents

 

 

 

 

130,102

 

 

 

—

 

 

 

—

 

 

 

130,102

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

Level 2

 

 

49,296

 

 

 

6

 

 

 

—

 

 

 

49,302

 

Total short-term investments

 

 

 

 

49,296

 

 

 

6

 

 

 

—

 

 

 

49,302

 

 

 

 

 

$

179,398

 

 

$

6

 

 

$

—

 

 

$

179,404

 

 

 

 

 

 

December 31, 2024

 

 

 

Valuation
Hierarchy

 

Amortized
Cost

 

 

Gross
Unrealized
Holding
Gains

 

 

Gross
Unrealized
Holding
Losses

 

 

Aggregate
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

31,680

 

 

$

—

 

 

$

—

 

 

$

31,680

 

Government bonds

 

Level 2

 

 

15,167

 

 

 

—

 

 

 

—

 

 

 

15,167

 

Total cash equivalents

 

 

 

 

46,847

 

 

 

—

 

 

 

—

 

 

 

46,847

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

Level 2

 

 

262,424

 

 

 

98

 

 

 

(3

)

 

 

262,519

 

Total short-term investments

 

 

 

 

262,424

 

 

 

98

 

 

 

(3

)

 

 

262,519

 

 

 

 

 

$

309,271

 

 

$

98

 

 

$

(3

)

 

$

309,366

 

 

All of the investments held as of September 30, 2025, had original maturities of less than two years. As of September 30, 2025, all of the investments are scheduled to mature within 12 months. During the three and nine months ended September 30, 2025, the Company did not recognize any credit losses. The Company determined that the decline in fair value of debt securities was not due to credit-related factors, and no allowance for expected credit losses was recorded as of September 30, 2025. There were nominal unrealized losses as of September 30, 2025, and no investments have been in the loss position for more than 12 months. However, the Company is planning to hold these securities until maturity and expects to recover the amortized cost basis.

 

For the three and nine months ended September 30, 2025 and 2024, the Company recognized no material realized gains or losses on financial instruments.