v3.26.1
Financial Instruments
3 Months Ended
Mar. 31, 2026
Investments, All Other Investments [Abstract]  
Financial Instruments Financial Instruments
The following table presents our financial instruments:
March 31, 2026December 31, 2025
Cash and cash equivalents$316,010 $1,015,400 
Available-for-sale investments81,799 142,498 
Equity investment
10,000 10,000 
Total$407,809 $1,167,898 
Cash and cash equivalents consist primarily of money market funds with original maturity dates of three months or less, for which we determine fair value through quoted market prices.
Our investment portfolio is classified as available-for-sale in order to have the flexibility to buy and sell investments and maximize cash liquidity. Our available-for-sale investments primarily consist of investment grade corporate bonds, U.S. Treasuries, and asset-backed securities with maturity dates through 2027. These investments are presented at fair value and are included in short-term investments and non-current investments in the accompanying condensed consolidated balance sheets. Unrealized gains or losses associated with the investments are included in accumulated other comprehensive income (loss), net of tax in the accompanying condensed consolidated balance sheets and other comprehensive income (loss), net of tax in the statements of comprehensive income. For our available-for-sale investments, we do not have the intent to sell, nor is it more likely than not that we would be required to sell before recovery of their cost basis.
As of March 31, 2026 and December 31, 2025, we have an accrued interest receivable balance of approximately $0.8 million and $1.3 million, respectively, which is included in accounts receivable, net. We do not measure an allowance for credit losses for accrued interest receivables. We record any losses within the maturity period or at the time of sale of the investment, and any write-offs to accrued interest receivables are recorded as reductions to interest income in the period of the loss. During the three months ended March 31, 2026, we have recorded no losses for accrued interest receivables. Interest income and amortization of discounts and premiums are included in other income, net in the accompanying condensed consolidated statements of income.
The following table presents the components of our available-for-sale investments:
March 31, 2026December 31, 2025
Amortized cost$82,172 $142,515 
Unrealized gains127 
Unrealized losses(376)(144)
Estimated fair value$81,799 $142,498 
As of March 31, 2026, we have $30.3 million of available-for-sale debt securities with contractual maturities of one year or less and $51.5 million with contractual maturities greater than one year. As of March 31, 2026, 66 available-for-sale securities with a fair value of $69.4 million have been in a loss position for one year or less and two securities with a fair value of $2.1 million have been in a loss position for greater than one year.
The following table presents the activity on our available-for-sale investments:
Three Months Ended March 31,
20262025
Proceeds from sales and maturities$61,858 $1,756 
Realized gains (losses) on sales, net of tax(1)
As of March 31, 2026, our equity investment consists of a minority interest in the common stock of a privately held company that is carried at cost less any impairment write-downs because we do not have the ability to exercise significant influence over the investee and the securities do not have readily determinable fair values. On February 2, 2026, we signed a definitive agreement to acquire the remaining equity interest of this investment. The transaction closed on April 14, 2026. See Note 17, “Subsequent Events,” for more information.