Fair Value Measurements

3 Months Ended

Mar. 31, 2025

4. Fair Value Measurements

The carrying amounts of the Company’s financial instruments, including prepaid expenses and other current assets, accounts payable, accrued liabilities and the current portion of operating lease liabilities approximate fair value due to the short-term nature of those instruments.

The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by level within the valuation hierarchy:


	March 31, 2025
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets:
Cash equivalents:
Money market funds	$	76,347	$	—	$	—	$	76,347
Marketable securities:
Commercial paper		—		80,627		—		80,627
Certificates of deposit		—		607		—		607
U.S. government securities		26,970		—		—		26,970
Corporate debt securities		—		14,289		—		14,289
Total assets measured at fair value	$	103,317	$	95,523	$	—	$	198,840


	December 31, 2024
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets:
Cash equivalents:
Money market funds	$	94,411	$	—	$	—	$	94,411
Commercial paper		—		30,881		—		30,881
Marketable securities:
Commercial paper		—		61,383		—		61,383
Certificates of deposit		—		1,918		—		1,918
U.S. government securities		74,444		—		—		74,444
Corporate debt securities		—		27,685		—		27,685
Total assets measured at fair value	$	168,855	$	121,867	$	—	$	290,722

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. The Company estimates the fair value of its commercial paper, certificates of deposit, U.S. government and agency debt securities, and corporate debt securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data, and other observable inputs.