v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements



Note 11. Fair Value Measurements
 
As of December 31, 2025, the Company carried cash equivalents, marketable investments, bifurcated derivatives associated with the 2030 Convertible Notes and Senior Notes that are measured at fair value on a recurring basis. Additionally, the Company measures its equity-settled fixed value awards at fair value on a recurring basis. See Note 15, “Stock-Based Compensation”, for further information on the Company’s fixed value equity awards.
 
Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
 
Level 1 — Observable inputs, which include unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2 — Observable inputs other than Level 1 inputs, such as 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.
 
Level 3 — Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined by using pricing models, discounted cash flow methodologies, or similar techniques.
 
The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
 
Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations, alternative pricing sources, or U.S. Government Treasury yield of appropriate term. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, or historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. The Company performs routine procedures such as comparing prices obtained from independent source to ensure that appropriate fair values are recorded.
 

Given that the transfer of warrants issued in a private placement in connection with the initial public offering of Gores Metropoulos, Inc (“Private Warrants”) to anyone outside of a small group of individuals constituting the sponsors of Gores Metropoulos, Inc (“Gores”) would result in the Private Warrants having substantially the same terms as warrants issued in connection with the initial public offering of Gores (“Public Warrants”), management determined that the fair value of each Private Warrant is the same as that of a Public Warrant, with an insignificant adjustment for short-term marketability restrictions. The fair value of Private Warrants was at de minimis as of December 31, 2024.
 

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

   
Fair Value Measured as of
December 31, 2025:
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets:
                        
Cash equivalents:
                        
Money market funds
  
$
8,136
    
$
—
    
$
—
    
$
8,136
  
Total cash equivalents
  
$
8,136
    
$
—
    
$
—
    
$
8,136
  
Marketable investments:
                                
Marketable equity investments
  
$
2,580
    
$
—
    
$
—
    
$
2,580
  
Total marketable investments
  
$
2,580
    
$
—
    
$
—
    
$
2,580
  
Liabilities:
                                
Derivative liability
  
$
—
    
$
—
    
$
(12,647
)
  
$
(12,467
)
Total derivative liabilities
  
$
—
    
$
—
    
$
(12,647
)
  
$
(12,467
)

   
Fair Value Measured as of
December 31, 2024:
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets:
                        
Cash equivalents:
                        
Money market funds
  
$
17,730
    
$
—
    
$
—
    
$
17,730
  
U.S. treasury securities
    
5,519
      
—
      
—
      
5,519
  
Commercial paper
    
—
      
9,967
      
—
      
9,967
  
Corporate bonds
    
—
      
799
      
—
      
799
  
Total cash equivalents
  
$
23,249
    
$
10,766
    
$
—
    
$
34,015
  
Marketable investments:
                                
U.S. treasury securities
  
$
5,436
    
$
—
    
$
—
    
$
5,436
  
Certificate of deposits
    
—
      
1,561
      
—
      
1,561
  
Commercial paper
    
—
      
9,107
      
—
      
9,107
  
Corporate bonds
    
—
      
80,558
      
—
      
80,558
  
Marketable equity investments
    
3,165
      
—
      
—
      
3,165
  
Total marketable investments
  
$
8,601
    
$
91,226
    
$
—
    
$
99,827
  
Liabilities:
                                
Derivative liability
  
$
—
    
$
—
    
$
(9,410
)
  
$
(9,410
)
Total derivative liabilities
  
$
—
    
$
—
    
$
(9,410
)
  
$
(9,410
)


As of December 31, 2025, the estimated fair value of the Company’s outstanding 2026 Convertible Notes was $0.0 million, reflecting an assumed recovery rate of 0%. See Note 10, “Debt” for further information on the Company’s 2026 Convertible Notes.
 

As of December 31, 2025, the estimated fair value of the Series 1 Notes and Series 2 Notes of the 2030 Convertible Notes, excluding the bifurcated derivative liabilities value, was $1.9 million and $6.4 million, respectively. As of December 31, 2025, the estimated fair value of the Senior Notes was $109.6 million. The fair values as of December 31, 2025 were determined using a discounted cash flow model. These measurements are classified as Level 3 in the fair value hierarchy. See Note 10, “Debt” for further information on these notes.
 

The Company’s other financial instruments’ fair value, including accounts receivable, accounts payable and other current liabilities, approximate their carrying value due to the relatively short maturity of those instruments. The carrying amounts of the Company’s finance leases approximate their fair value, which is the present value of expected future cash payments based on assumptions about current interest rates and the creditworthiness of the Company.