Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Investments and Fair Value Measurements

Investments and Fair Value Measurements

5. Investments and Fair Value Measurements

Available-for-Sale Securities

The estimated fair value of marketable securities is based on quoted market prices for these or similar investments obtained from a commercial pricing service. The fair market value of marketable securities classified within Level 1 is based on quoted prices for identical instruments in active markets. The fair value of marketable securities classified within Level 2 is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or model-driven valuations whose inputs are observable or whose significant value drivers are observable. Observable inputs may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

Available-for-sale securities are summarized below:

		December 31, 2024
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	17,306	$	8	$	—	$	17,314
Corporate notes	Level 2		5,431		1		(1)		5,431
Commercial paper	Level 2		35,285		1		(2)		35,284
Marketable securities			58,022		10		(3)		58,029
Money market funds	Level 1		550		—		—		550
Total		$	58,572	$	10	$	(3)	$	58,579

		December 31, 2023
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	29,848	$	—	$	(29)	$	29,819
US government agency securities	Level 2		4,428		—		(8)		4,420
Corporate notes	Level 2		28,670		4		(32)		28,642
Marketable securities			62,946		4		(69)		62,881
Money market funds	Level 1		26,179		—		—		26,179
Total		$	89,125	$	4	$	(69)	$	89,060

As of December 31, 2024, all of the Company’s available-for-sale securities had contractual maturities within six months, and the weighted-average maturity of marketable securities was approximately two months. There were no transfers between Level 1 and Level 2 during the periods presented, and there have been no material changes to the Company’s valuation techniques during the year ended December 31, 2024 or 2023.

Available-for-sale debt securities with unrealized losses are summarized below:

	December 31, 2024
	Less than 12 Months				Greater than 12 Months				Total
			Gross				Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Corporate notes	$	4,114	$	(1)	$	—	$	—	$	4,114	$	(1)
Commercial paper		18,883		(2)		—		—		18,883		(2)
Total	$	22,997	$	(3)	$	—	$	—	$	22,997	$	(3)

	December 31, 2023
	Less than 12 Months				Greater than 12 Months				Total
			Gross				Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
US government securities	$	29,819	$	(29)	$	—	$	—	$	29,819	$	(29)
US government agency securities		4,420		(8)		—		—		4,420		(8)
Corporate notes		23,641		(32)		—		—		23,641		(32)
Total	$	57,880	$	(69)	$	—	$	—	$	57,880	$	(69)

The Company invests primarily in high credit quality and short-term maturity debt securities with the intent to hold such securities until maturity at par value. The Company does not intend to sell the investments that are currently in an unrealized loss position, and it is unlikely that it will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. The Company reviewed its available-for-sale debt securities and determined that there were no credit-related losses to be recognized as of December 31, 2024, and there were no individual securities that were in a significant unrealized loss position as of December 31, 2024.

For the year ended December 31, 2024 and 2023, the Company sold marketable securities for total proceeds of $15.8 million and $71.4 million, respectively. The sales were based on the specific identification method, and the realized net gain (loss) from the sales was immaterial.