Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair Value of Assets and Liabilities

The Company considers fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis based on the fair value hierarchy as follows (in thousands):

	As of March 31, 2025
	Level 1		Level 2		Total Fair Value
Cash equivalents
Money market funds	$	52,921	$	-	$	52,921
Commercial paper	-		4,967		4,967
Total cash equivalents	$	52,921	$	4,967	$	57,888
Marketable securities
U.S. treasury and agency securities	$	-	$	213,086	$	213,086
Commercial paper	-		58,865		58,865
Corporate debt securities	-		555,434		555,434
Asset-backed securities	-		10,910		10,910
Total marketable securities	$	-	$	838,295	$	838,295

	As of December 31, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents
Money market funds	$	59,595	$	-	$	59,595
Total cash equivalents	$	59,595	$	-	$	59,595
Marketable securities
U.S. treasury and agency securities	$	-	$	202,469	$	202,469
Commercial paper	-		103,233		103,233
Corporate debt securities	-		512,925		512,925
Asset-backed securities	-		16,123		16,123
Total marketable securities	$	-	$	834,750	$	834,750

As of March 31, 2025 and December 31, 2024, there were no marketable securities with Level 3 fair value hierarchy measurement.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate these assets for impairment, whether due to certain

triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, these assets are measured at fair value during such period. There was no impairment on these assets during the three months ended March 31, 2025 and 2024.

As of March 31, 2025 and December 31, 2024, the Company had no liabilities required to be measured at fair value on a nonrecurring basis.

Assets and Liabilities Not Measured at Fair Value

The carrying amount of the Company’s financial instruments, including cash equivalents, accounts receivable, and accounts payable, approximates their respective fair values because of their short maturities.