Financial Instruments

12 Months Ended

Dec. 31, 2025

Financial Instruments

Financial Instruments

7.    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:

	December 31, 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)	$	1,076,140	$	—	$	—	$	1,076,140	$	945,587	$	—	$	—	$	945,587
Municipal securities (1)		—		—		—		—		23,019		—		(330)		22,689
Total	$	1,076,140	$	—	$	—	$	1,076,140	$	968,606	$	—	$	(330)	$	968,276
Classified as:
Cash, cash equivalents and restricted cash (2)							$	1,076,140							$	945,587
Short-term investments								—								22,689
Total							$	1,076,140							$	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). The Company did not sell any investments in the year ended December 31, 2025. During the year ended December 31, 2024, the Company sold one investment for $24.8 million, which resulted in an immaterial gain. The Company did not sell any investments in the year ending December 31, 2023. The Company uses the specific investment identification method to calculate realized gains and losses and amounts reclassified out of other comprehensive income to net income. As of December 31, 2025, the Company did not hold any investments. Gross unrealized losses were not material as of December 31, 2024 or December 31, 2023. 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 December 31, 2024.