Cash and Cash Equivalents, Investments and Fair Value Measurements

6 Months Ended

Jun. 30, 2025

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents, Investments and Fair Value Measurements

The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30, 2025
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	25,977	$	—	$	—	$	25,977

Money market funds	Level 1	10,848		$	—	$	—	$	10,848

Total cash and cash equivalents		$	36,825	$	—	$	—	$	36,825
Short-term investments:
Corporate debt securities	Level 2	$	48,691	$	129	$	(5)	$	48,815
Long-term investments:
Corporate debt securities	Level 2	$	28,308	$	166	$	—	$	28,474


	December 31, 2024
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	28,716	$	—	$	—	$	28,716
Money market funds	Level 1	132,759		—		—		132,759

Total cash and cash equivalents		$	161,475	$	—	$	—	$	161,475
Short-term investments:

Corporate debt securities	Level 2	$	113,968	$	157	$	(29)	$	114,096
U.S. treasury securities	Level 1	40,162		—		(9)		40,153
Total short-term investments		$	154,130	$	157	$	(38)	$	154,249
Long-term investments:
Corporate debt securities	Level 2	$	133,516	$	736	$	(78)	$	134,174
U.S. treasury securities	Level 1	78,405		97		(26)		78,476

Total long-term investments		$	211,921	$	833	$	(104)	$	212,650

As of June 30, 2025, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2025 and 2024, we did not recognize any losses on our investments due to credit related factors and our realized gains and losses on investments were not significant.

The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2025 (in thousands):


	Adjusted Cost		Fair Value
Due within one year	$	48,691	$	48,815
Due after one year through three years	28,308		28,474
Investments not due at a single maturity date	10,848		10,848
Total	$	87,847	$	88,137

Investments not due at a single maturity date in the preceding table consisted of money market funds.

Strategic Investments

In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. During the three months ended June 30, 2025, we recorded a $6.0 million impairment charge on our investment in Knack included within general and administrative expense on our condensed consolidated statements of operations. Our impairment assessment was the result of changes in our rights as an investor and uncertainty around Knack's ability to support their future operations.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the 2026 notes. The estimated fair value of the 2026 notes was determined based on the trading price as of the last day of trading for the period. We consider the fair value of the 2026 notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of June 30, 2025 and December 31, 2024 was $49.5 million and $105.8 million, respectively. For further information on the 2026 notes, refer to Note 7, “Convertible Senior Notes.”