Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

The Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy which establishes three levels of inputs that may be used to measure fair value, as follows:

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities;

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3—Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values (in thousands):

	MARCH 31,								DECEMBER 31,
	2026								2025
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL		LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Money market funds	$	310,558	$	—	$	—	$	310,558	$	795,089	$	—	$	—	$	795,089
U.S. government bonds		675,123		—		—		675,123		385,392		—		—		385,392
U.S. government agency bonds		—		34,599		—		34,599		—		24,941		—		24,941
Corporate debt securities		—		432,614		—		432,614		—		236,241		—		236,241
Total fair value of financial assets	$	985,681	$	467,213	$	—	$	1,452,894	$	1,180,481	$	261,182	$	—	$	1,441,663

	MARCH 31,								DECEMBER 31,
	2026								2025
		AMORTIZED	GROSS UNREALIZED				FAIR			AMORTIZED	GROSS UNREALIZED				FAIR
	COST		LOSSES		GAINS		VALUE		COST		LOSSES		GAINS		VALUE
Money market funds	$	310,558	$	—	$	—	$	310,558	$	795,089	$	—	$	—	$	795,089
U.S. government bonds		676,315		(1,410)		218		675,123		384,571		(1)		822		385,392
U.S. government agency bonds		34,701		(102)		—		34,599		24,922		—		19		24,941
Corporate debt securities		433,515		(946)		45		432,614		236,027		(16)		230		236,241
Total fair value of financial assets	$	1,455,089	$	(2,458)	$	263	$	1,452,894	$	1,440,609	$	(17)	$	1,071	$	1,441,663

As of March 31, 2026 and December 31, 2025, the Company did not have any liabilities measured at fair value on a recurring basis. There were no transfers in and out of Level 3 during the three months ended March 31, 2026 and 2025. The Company classifies its short-term investments as available-for-sale and records them at fair value based upon market prices at period end. Contractual maturities of short-term investments are generally not more than one year. As of March 31, 2026, the remaining contractual maturities

of $797.3 million of investments were within one year and $345.0 million of investments were after one year through two years. The Company has classified these securities as short-term investments on its condensed consolidated balance sheets as they are available for use in the current operations.

The unrealized losses for marketable securities related to changes in interest rates and the Company has the intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost. No allowance for credit losses was recorded at either March 31, 2026 or December 31, 2025, and no impairment losses were recognized for the three months ended March 31, 2026 and 2025.