XML 38 R12.htm IDEA: XBRL DOCUMENT v3.26.1
CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS
 3 Months Ended
Apr. 30, 2026
Fair Value Disclosures [Abstract]  
CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS
The following tables summarize information about our cash, cash equivalents, and investments by investment category as of April 30, 2026 and January 31, 2026 (in thousands):
As of April 30, 2026
Fair Value Level
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Assets
Cash and cash equivalents:
Cash$93,301 $— $— $93,301 
Money market fundsLevel 159,927 — — 59,927 
Total cash and cash equivalents$153,228 $— $— $153,228 
Short-term investments:
U.S. treasury securitiesLevel 1$286,587 $420 $(6)$287,001 
Commercial paperLevel 229,077 — (22)29,055 
Corporate notes and bondsLevel 2178,798 260 (52)179,006 
U.S. agency securitiesLevel 28,500 — (3)8,497 
Total short-term investments$502,962 $680 $(83)$503,559 
Long-term investments:
Strategic investments - marketable equity securities (1)
Level 1$3,347 
Total assets measured at fair value$660,134 
(1) Unrealized losses of $1.0 million on marketable equity securities held as of April 30, 2026 were recognized in other income, net during the three months ended April 30, 2026.
As of January 31, 2026
Fair Value Level
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Assets
Cash and cash equivalents:
Cash$124,873 $— $— $124,873 
Money market fundsLevel 144,754 — — 44,754 
Total cash and cash equivalents$169,627 $— $— $169,627 
Short-term investments:
U.S. treasury securitiesLevel 1$271,254 $786 $— $272,040 
Corporate notes and bondsLevel 2177,892 610 — 178,502 
U.S. agency securitiesLevel 28,500 — (1)8,499 
Total short-term investments$457,646 $1,396 $(1)$459,041 
Long-term investments:
U.S. treasury securitiesLevel 1$45,754 $227 $— $45,981 
Corporate notes and bondsLevel 258,473 238 — 58,711 
Total long-term investments$104,227 $465 $— $104,692 
Total assets measured at fair value$731,500 $1,861 $(1)$733,360 
We invest in highly rated securities with a weighted average maturity of 18 months or less. As of April 30, 2026, all of our investments will mature within two years.
As of April 30, 2026, we determined that the declines in the market value of our investment portfolio were not driven by credit-related factors. During the three months ended April 30, 2026 and 2025, we did not recognize any losses on our investments due to credit-related factors. As of April 30, 2026, there were no securities in continuous unrealized loss positions for more than twelve months.
Strategic Investments
The tables above do not include our strategic investments in non-marketable equity securities, which are recorded at cost, less any impairment, plus or minus observable price changes in orderly transactions for identical or similar investments of the same issuer. These were $152.4 million and $36.2 million as of April 30, 2026 and January 31, 2026, respectively, and are presented as long-term investments in the condensed consolidated balance sheets. The increase in our strategic investment portfolio as of April 30, 2026 was primarily due to the $100.0 million investment in Knight JV, LLC during the three months ended April 30, 2026.
During the three months ended April 30, 2026, one of our strategic investees completed an initial public offering. As a result, the investment was reclassified from a non-marketable equity security to a marketable equity security measured at fair value, with the shares held as of April 30, 2026 included in the fair value measurements table above as a Level 1 marketable equity security.
For the three months ended April 30, 2026, we recognized gains of $6.8 million on our non-marketable strategic investments, compared to no gain during the three months ended April 30, 2025. No impairment charges were recorded on these investments in each of the periods. Impairment charges and gains on strategic investments are recognized in other income, net.
Derivative Financial Instruments
To mitigate our exposure to foreign currency fluctuations resulting from a recognized income tax liability denominated in the Israeli New Shekel (ILS), we began entering into foreign currency forward contracts during the fourth quarter of fiscal 2026. As of April 30, 2026, the notional value of outstanding forward contracts was $164.1 million.
The following table summarizes the fair value of our derivative instruments on the condensed consolidated balance sheets (in thousands):
As of April 30,As of January 31,
ClassificationFair Value Level20262026
Foreign currency forward contracts not designated as hedging instruments:
Derivative assetPrepaid expenses and other current assetsLevel 2$962 $— 
Derivative liabilityAccrued expenses and other current liabilitiesLevel 2— 574 
Changes in the fair value of these derivative instruments are recognized in other income, net on the condensed consolidated statements of operations. These gains or losses are intended to economically offset the foreign currency transaction gains or losses generated by the remeasurement of the underlying ILS-denominated liability. During the three months ended April 30, 2026, we recorded $6.4 million in gains specifically related to our foreign currency forward contracts, of which $4.9 million was realized through cash settlements during the period. These gains were offset by $7.3 million unrealized foreign currency losses on the underlying ILS-denominated tax liability. Cash flows from these contracts are classified within net cash provided by operating activities in the condensed consolidated statements of cash flows.