Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Cash equivalents

At March 31, 2026 and December 31, 2025, highly liquid money market funds of $484.6 million and $0.4 million, respectively, were valued using Level 1 of the fair value hierarchy, quoted prices in active markets for identical assets, and are included in cash equivalents.

Short-term investments in held-to-maturity securities

As of March 31, 2026 and December 31, 2025, the Company had purchased Treasury Bills with maturities ranging from 3 to 6 months, which the Company intends to hold until maturity and has classified as held-to-maturity securities. The held-to-maturity securities are recorded at amortized cost totaling $290.2 million including gross accrued interest of $3.6 million as of March 31, 2026. As of March 31, 2026, the fair value on the held-to-maturity securities was $290.2 million and the gross unrealized loss was immaterial.

As of December 31, 2025, the amortized cost of the held-to-maturity securities totaled $791.6 million including gross accrued interest of $7.8 million. As of December 31, 2025, the fair value and gross unrealized gain on the held-to-maturity securities was $792.1 million and $0.5 million, respectively.

These treasury bills were valued using Level 1 of the fair value hierarchy, quoted prices in active markets for identical assets, and are included in short-term investments. The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggests an investment may not be fully recoverable.

Sales-based earnout liability

Sales-based earnout is paid based on various multiples of future revenue to be generated through December 31, 2028 from acquired intellectual property. The estimated fair value of the sales-based earnout liability is determined using a Monte Carlo simulation model using significant unobservable fair value inputs and is therefore classified as a Level 3 measurement. The assumptions used in the calculation are based on the revenue projections over the term of the contingent earn-out period, expected volatility, and discount rate. The estimates of fair value are uncertain and changes in any of the estimated inputs used will result in significant adjustments to the fair value. As of March 31, 2026, the Company used a volatility rate of 22%, risk free rate ranging from 3.7% to 3.8%, and an expected term ranging from 0.13 years to 2.63 years.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities:

	Amount
Fair value as of January 1, 2026	$	88,353
Change in the fair value during the year recorded to acquisition related costs	(1,364)
Payments made during the period	(3,966)
Fair value as of March 31, 2026	$	83,023

There were no transfers between Level 1, Level 2, and Level 3 categories during any of the periods presented.