v3.25.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s fair value hierarchy for its financial assets that are measured at fair value on a recurring basis as of September 30, 2025, is as follows (in thousands):
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$137,988 $— $— $137,988 
Short-term investments:
Corporate bonds— 150,960 — 150,960 
Government and government agency— 107,619 — 107,619 
U.S. Treasury bills25,387 — — 25,387 
Restricted cash:
Money market funds— — — — 
Long-term investments:
Government and government agency— 343,823 — 343,823 
Corporate bonds— 94,517 — 94,517 
Total assets$163,375 $696,919 $— $860,294 
Liabilities
Earn-out liabilities, current$— $— $45,399 $45,399 
Earn-out liabilities, long-term— — 49,623 49,623 
Other contingent consideration— — 2,949 2,949 
Total liabilities$— $— $97,971 $97,971 

The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024, is as follows (in thousands):
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$64,717 $— $— $64,717 
Short-term investments:
U.S. Treasury bills60,160 — — 60,160 
Corporate bonds— 18,060 — 18,060 
Government and government agency— 1,447 — 1,447 
Restricted cash:
Money market funds856 — — 856 
Total assets$125,733 $19,507 $— $145,240 

The fair values of cash, accounts receivable, accounts payable, and accrued liabilities approximated their carrying values as of September 30, 2025 and December 31, 2024, due to their short-term nature. The 2030 Convertible Notes are recorded at their net carrying amount on the unaudited condensed consolidated balance sheets rather than their fair value, which is a Level 2 measurement, as the Company has not elected the fair value option (refer to Note 13 – Debt for the 2030 Convertible Notes definition and additional detail, including the fair value as of September 30, 2025). All other financial instruments, with the exception of the earn-out liabilities discussed below, are valued either based on recent trades of securities in active markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. During the nine months ended September 30, 2025 and 2024, the Company had no transfers between levels of the fair value hierarchy of its assets measured at fair value.
The Company has earn-out liabilities related to both the C S Bio Co. asset acquisition and the Zava business combination. The fair value of the earn-out liabilities related to the C S Bio Co. asset acquisition, all of which were current, approximated their carrying value as of September 30, 2025 due to all of the earn-out consideration being paid in cash and the timing of their payout being subject to estimation and, therefore, is excluded from the table above. The current and long-term earn-out liabilities related to the Zava business combination are classified as Level 3 fair value measurements containing significant unobservable inputs including estimates of achieving certain revenue and adjusted EBITDA targets and, therefore, are included in the table above. At inception, the fair value of the earn-out liabilities associated with the Zava business combination was determined based on revenue and adjusted EBITDA projections and the probability of achieving the respective revenue and adjusted EBITDA targets as evaluated using a Monte Carlo simulation. The following assumptions were used to determine the fair value at inception:

Risk-free rate1.9 %
Revenue volatility21.0 %
Revenue risk-adjusted discount rate9.0 %
Counterparty discount rate6.0 %

The fair value of the earn-out liabilities related to the Zava business combination is remeasured at each reporting period. The change in fair value is recognized within total other income, net on the unaudited condensed consolidated statements of operations and comprehensive income. The change in the fair value of the earn-out liabilities related to the Zava business combination is as follows (in thousands):

Balance at December 31, 2024$— 
Zava business combination87,691 
Change in fair value7,626 
Foreign currency translation adjustments(295)
Balance at September 30, 2025$95,022 

The Zava business combination also includes contingent consideration for tax loss reimbursements, which is recorded within other long-term liabilities on the unaudited condensed consolidated balance sheets.