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Marketable Securities and Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Debt Securities [Abstract]  
Marketable Securities and Fair Value Measurements
NOTE 4. Marketable Securities and Fair Value Measurements
Marketable Securities
The following table summarizes the Company’s marketable securities (in thousands):
 March 31, 2025December 31, 2024
 Amortized CostGross Unrealized GainsGross Unrealized Losses Fair ValueAmortized CostGross Unrealized GainsGross Unrealized Losses Fair Value
Corporate debt securities$93,562 $59 $(54)$93,567 $110,820 $91 $(204)$110,707 
U.S. Treasury notes136,111 569 (104)136,576 101,059 184 (213)101,030 
 $229,673 $628 $(158)$230,143 $211,879 $275 $(417)$211,737 
For the three months ended March 31, 2025, the Company recognized total interest income (included in other income (expense), net in the condensed consolidated statements of operations) of $4.3 million, of which $3.1 million was related to its marketable securities investments and $1.2 million was related to interest on cash and cash equivalent balances. For the three months ended March 31, 2024, the Company recognized total interest income (included in other income (expense), net in the condensed consolidated statements of operations) of $5.4 million, of which $4.0 million was related to its marketable securities investments and $1.4 million was related to interest on cash and cash equivalent balances.
The following table summarizes the Company’s marketable securities maturity as of March 31, 2025 (in thousands):
YearAmortized CostFair Value
2025$127,374 $127,287 
202654,774 55,063 
202727,962 28,125 
202819,563 19,668 
 $229,673 $230,143 
The following table summarizes the Company’s marketable securities with gross unrealized losses by security type aggregated by the length of time the investments have been in a continuous unrealized loss position as of March 31, 2025 (in thousands):
Less Than 12 Months12 Months or Greater
Fair ValueGross Unrealized Losses Fair ValueGross Unrealized Losses
Corporate debt securities$9,962 $1 $56,070 $53 
U.S. Treasury notes25,472 60 25,920 44 
$35,434 $61 $81,990 $97 
The following table summarizes the Company’s marketable securities with gross unrealized losses by security type aggregated by the length of time the investments have been in a continuous unrealized loss position as of December 31, 2024 (in thousands):
Less Than 12 Months12 Months or Greater
Fair ValueGross Unrealized Losses Fair ValueGross Unrealized Losses
Corporate debt securities$— $— $73,128 $204 
U.S. Treasury notes25,295 104 38,787 109 
$25,295 $104 $111,915 $313 
The Company’s unrealized losses from marketable securities as of March 31, 2025 and December 31, 2024 were caused primarily by interest rate increases. As of March 31, 2025, all of the Company’s marketable securities carry an investment grade rating by nationally recognized statistical rating organizations. The Company does not intend to sell marketable securities that are in an unrealized loss position, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. There was no allowance for credit losses on available-for-sale marketable securities at March 31, 2025 or December 31, 2024.
Fair Value Measurements
The Company’s financial instruments consist of cash and cash equivalents, restricted cash and equivalents, marketable securities, receivables, other liabilities, accounts payable, certain accrued expenses, and borrowings which consist of a term loan and a revolving credit facility. The carrying values of the financial instruments classified as current in the consolidated balance sheets approximate their fair values due to their short-term maturities. The Company's cash and cash equivalents are classified within Level 1 of the fair value hierarchy. The Company may be required, from time to time, to measure its loans to physician partner groups, primarily in connection with taxes payable on shares distributed to them upon completion of the Company's initial public offering (“IPO”), at fair value on a nonrecurring basis. Such measurements are classified within Level 2 of the fair value hierarchy. The carrying values of the term loan and revolving credit facility are a reasonable estimate of fair value because the interest rates on such borrowings approximate market rates as of the reporting date. Such borrowings are classified within Level 2 of the fair value hierarchy. During the three months ended March 31, 2025 and 2024, there were no material transfers of financial assets or liabilities within the fair value hierarchy.
The Company measures and discloses the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy:
•Level 1—quoted prices for identical instruments in active markets;
•Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and
•Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
The table below summarizes the Company’s financial instruments measured at fair value on a recurring basis (in thousands):
 March 31, 2025December 31, 2024
 Level 1Level 2Level 3Level 1Level 2Level 3
Marketable securities:
Corporate debt securities$— $93,567 $— $— $110,707 $— 
U.S. Treasury notes136,576 — — 101,030 — — 
 $136,576 $93,567 $— $101,030 $110,707 $—