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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

 

 

 

 

 

June 30, 2025

 

 

 

Valuation Hierarchy

 

Amortized
Cost

 

 

Unrealized
Losses

 

 

Unrealized
Gains

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

42,034

 

 

$

—

 

 

$

—

 

 

$

42,034

 

Commercial paper

 

Level 2

 

 

9,186

 

 

 

—

 

 

 

—

 

 

 

9,186

 

U.S. Government securities

 

Level 2

 

 

1,500

 

 

 

—

 

 

 

—

 

 

 

1,500

 

Total Cash equivalents

 

 

 

 

52,720

 

 

 

—

 

 

 

—

 

 

 

52,720

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

141,657

 

 

$

(12

)

 

$

335

 

 

$

141,980

 

Commercial paper

 

Level 2

 

 

20,636

 

 

 

—

 

 

 

—

 

 

 

20,636

 

Government securities

 

Level 2

 

 

73,626

 

 

 

(19

)

 

 

50

 

 

 

73,657

 

Total short-term investments

 

 

 

 

235,919

 

 

 

(31

)

 

 

385

 

 

 

236,273

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

3,463

 

 

$

(4

)

 

$

7

 

 

$

3,466

 

Government securities

 

Level 2

 

 

38,140

 

 

 

(41

)

 

 

46

 

 

$

38,145

 

Total long-term investments

 

 

 

 

41,603

 

 

 

(45

)

 

 

53

 

 

 

41,611

 

Total

 

 

 

$

330,242

 

 

$

(76

)

 

$

438

 

 

$

330,604

 

 

 

 

 

 

December 31, 2024

 

 

 

Valuation Hierarchy

 

Amortized
Cost

 

 

Unrealized
Losses

 

 

Unrealized
Gains

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

25,617

 

 

$

—

 

 

$

—

 

 

$

25,617

 

Commercial paper

 

Level 2

 

 

1,395

 

 

 

—

 

 

 

—

 

 

 

1,395

 

Government securities

 

Level 2

 

 

300

 

 

 

—

 

 

 

—

 

 

 

300

 

Total cash equivalents

 

 

 

 

27,312

 

 

 

—

 

 

 

—

 

 

 

27,312

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

124,283

 

 

$

(38

)

 

$

303

 

 

$

124,548

 

Commercial paper

 

Level 2

 

 

22,820

 

 

 

—

 

 

 

—

 

 

 

22,820

 

Government securities

 

Level 2

 

 

92,013

 

 

 

(17

)

 

 

117

 

 

 

92,113

 

Total short-term investments

 

 

 

 

239,116

 

 

 

(55

)

 

 

420

 

 

 

239,481

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

$

85,992

 

 

$

(62

)

 

$

332

 

 

$

86,262

 

Government securities

 

Level 2

 

 

24,091

 

 

 

(29

)

 

 

68

 

 

 

24,130

 

Total long-term investments

 

 

 

 

110,083

 

 

 

(91

)

 

 

400

 

 

 

110,392

 

Commercial paper

 

Level 2

 

 

1,395

 

 

 

—

 

 

 

—

 

 

 

1,395

 

Total

 

 

 

$

376,511

 

 

$

(146

)

 

$

820

 

 

$

377,185

 

Investments are classified as Level 1 within the fair value hierarchy if their quoted prices are available in active markets for identical securities. Investments in money market funds of $42.0 million and $25.6 million as of June 30, 2025 and December 31, 2024, respectively, were classified as Level 1 instruments and were included in cash equivalents.

Investments in corporate debt securities, commercial paper and government securities are valued using Level 2 inputs. Level 2 securities are initially valued at the transaction price and subsequently valued and reported upon utilizing inputs other than quoted prices that are observable either directly or indirectly, such as quotes from third-party pricing vendors. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves, require the exercise of judgment and use of estimates, that if changed, could significantly affect the Company’s financial position and results of operations.

Accrued interest receivable related to investments was $2.2 million and $2.5 million as of June 30, 2025 and December 31, 2024, respectively, and included as part of prepaid expenses and other current assets in the condensed balance sheets.

The Company has classified its investment securities as current and non-current assets on the condensed balance sheets based on each security's contractual maturity date, and all investment securities are accounted for as available-for-sale because these investment securities are considered available for use in operations. All of our long-term investments as of June 30, 2025 had maturities between one and two years.

The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s available-for-sale securities as of June 30, 2025 and December 31, 2024 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. The Company concluded that an allowance for credit losses was unnecessary as of June 30, 2025 and December 31, 2024. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive income/(loss).

During the six months ended June 30, 2025, the Company received $10.0 million in proceeds from an available-for-sale security called prior to maturity, resulting in an immaterial realized gain and included within maturities of investments. The available-for-sale security was called within 90 days of its stated maturity. There was no realized gain or loss on available-for-sale securities for the six months ended June 30, 2024. The Company uses the specific identification method to determine the cost basis of investments sold.