Financial Instruments

9 Months Ended

Sep. 30, 2025

Financial Instruments

Financial Instruments

5. Financial Instruments

The Company elected to invest a portion of its cash assets in conservative, income-earning, and liquid investments. Cash, cash equivalents, restricted cash and investments, which are classified as available-for-sale securities, consisted of the following:

	September 30, 2025								December 31, 2024
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(in thousands)
Cash, cash equivalents and restricted cash (2)	$	1,041,438	$	—	$	—	$	1,041,438	$	945,587	$	—	$	—	$	945,587
Municipal securities (1)		1,000		—		—		1,000		23,019		—		(330)		22,689
Total	$	1,042,438	$	—	$	—	$	1,042,438	$	968,606	$	—	$	(330)	$	968,276
Classified as:
Cash, cash equivalents and restricted cash (2)								1,041,438								945,587
Short-term investments								1,000								22,689
Total							$	1,042,438							$	968,276

(1) Per the Company’s investment policy, all debt securities are classified as short-term investments irrespective of holding period.  

(2) Cash equivalents includes liquid demand deposits and money market funds.

The Company invests in U.S. Treasuries, U.S. agency and high-quality municipal bonds which mature at par value and are all paying their coupons on schedule. The Company has therefore concluded an allowance for expected credit losses of its investments was not necessary and will continue to recognize unrealized gains and losses in other comprehensive income (loss). During the nine months ended September 30, 2025, the Company did not sell any investments. During the nine months ended September 30, 2024, the Company sold one investment, which resulted in an immaterial gain. The Company uses the specific investment identification method to calculate realized gains and losses and amounts reclassified out of other comprehensive income (loss) to net loss. As of September 30, 2025, the Company

did not have any investments in an unrealized loss position in its portfolio. Gross unrealized losses were primarily due to declines in the value of fixed rate instruments as interest rates in the broader market increased, and were not indictive of a decline in the credit worthiness of the underlying issuers. Accordingly, the Company did not record a credit loss reserve as of September 30, 2025 or December 31, 2024.

As of September 30, 2025, the Company’s portfolio of available-for-sale securities all have remaining contractual maturities less than or equal to one year.