Fair Value Measurements

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2. Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

•Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

We did not have any financial assets or liabilities in Level 3 as of June 30, 2025 or December 31, 2024.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper and treasury bills. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Long-term Debt — See Note 7 for the carrying amount and estimated fair value of the Notes.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

	June 30, 2025						December 31, 2024
	Level 1		Level 2		Total		Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	1,497	$	—	$	1,497	$	1,097	$	—	$	1,097
Commercial paper		—		9,684		9,684		—		—		—
Total cash equivalents		1,497		9,684		11,181		1,097		—		1,097
Short-term investments:
U.S. Government agency securities		—		1,982		1,982		—		3,929		3,929
U.S. Treasury securities		—		37,078		37,078		—		63,634		63,634
Corporate notes and bonds		—		47,828		47,828		—		32,305		32,305
Commercial paper		—		63,900		63,900		—		18,793		18,793
Total short-term investments		—		150,788		150,788		—		118,661		118,661
Long-term investments:
U.S. Government agency securities		—		4,993		4,993		—		5,989		5,989
U.S. Treasury securities		—		—		—		—		2,492		2,492
Corporate notes and bonds		—		62,339		62,339		—		66,390		66,390
Total long-term investments		—		67,332		67,332		—		74,871		74,871
Total	$	1,497	$	227,804	$	229,301	$	1,097	$	193,532	$	194,629

We expect short-term investments to mature within 1 year and long-term investments within 1 to 3 years of the reporting date. See Note 7 for the carrying amount and estimated fair value of our convertible senior notes due 2027.

Investments

The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands):

	June 30, 2025
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	1,497	$	—	$	—		$	1,497
U.S. Government agency securities		6,985		—		(10	)		6,975
U.S. Treasury securities		37,097		2		(21	)		37,078
Corporate notes and bonds		110,076		213		(122	)		110,167
Commercial paper		73,628		3		(47	)		73,584
Total	$	229,283	$	218	$	(200	)	$	229,301

	December 31, 2024
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	1,097	$	—	$	—		$	1,097
U.S. Government agency securities		9,933		1		(16	)		9,918
U.S. Treasury securities		66,146		17		(37	)		66,126
Corporate notes and bonds		99,215		—		(520	)		98,695
Commercial paper		18,805		—		(12	)		18,793
Total	$	195,196	$	18	$	(585	)	$	194,629

Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $170.1 million and $0.2 million in unrealized losses as of June 30, 2025, and an estimated fair value of $142.8 million and $0.6 million in unrealized losses as of December 31, 2024. There were no marketable securities in a continuous loss position for greater than 12 months as of June 30, 2025 or December 31, 2024.