v3.26.1
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis for the periods presented below (in thousands):
Total Carrying ValueLevel 1Level 2Level 3
March 31, 2026
Assets:    
Funds held for clients
Money market funds$4,651 $4,651 $— $— 
Available-for-sale securities85,230 — 85,230 — 
Total$89,881 $4,651 $85,230 $— 
December 31, 2025
Assets:
Funds held for clients
Money market funds$1,784 $1,784 $— $— 
Available-for-sale securities88,652 — 88,652 — 
Total$90,436 $1,784 $88,652 $— 
Debt Securities, Available-for-sale
Cash equivalents and investments classified as available-for-sale within funds held for clients consisted of the following for the periods presented below (in thousands):
Amortized
Cost
Gross
Unrealized
Gains (1)
Gross
Unrealized
Losses (1)
Aggregate
Estimated
Fair Value
March 31, 2026
Cash equivalents$4,652 $3 $(4)$4,651 
Available-for-sale securities:
Corporate debt securities81,006 160 (309)80,857 
Municipal bonds842 — (7)835 
U.S. Government agency securities3,534 4 — 3,538 
Total available-for-sale securities85,382 164 (316)85,230 
Total(2)
$90,034 $167 $(320)$89,881 
December 31, 2025
Cash equivalents$1,787 $— $(3)$1,784 
Available-for-sale securities:
Corporate debt securities83,160 501 (77)83,584 
Municipal bonds1,542 — (17)1,525 
U.S. Government agency securities3,515 28 — 3,543 
Total available-for-sale securities88,217 529 (94)88,652 
Total(2)
$90,004 $529 $(97)$90,436 

(1)Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive income (loss). As of March 31, 2026 and December 31, 2025, there were 56 and 127 securities, respectively, in an unrealized gain position and there were 92 and 27 securities in an unrealized loss position, respectively. As of March 31, 2026, these unrealized losses were less than $14 individually and $320 in the aggregate. As of December 31, 2025, these unrealized losses were less than $13 individually and $94 in the aggregate. We invest in high quality securities with roughly 69% of our portfolio made up of A ratings and above with unrealized losses primarily attributable to macroeconomic factors rather than credit related. We have no material individual securities that have been in a continuous unrealized loss position greater than twelve months. We do not intend to sell these investments, and we do not expect to sell these investments before recovery of their amortized cost basis, which may be at maturity. We review our investments to identify and evaluate investments that indicate possible credit losses. Factors considered in determining whether a loss is a credit loss include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.
(2)At March 31, 2026 and December 31, 2025, none of these securities were classified as cash and cash equivalents on the accompanying Condensed Consolidated Balance Sheets.
Funds held for clients have been invested in the following categories for the periods presented below (in thousands):
March 31, 2026December 31, 2025
Restricted cash and cash equivalents held to satisfy client funds obligations$131,284 $139,459 
Restricted short-term marketable securities held to satisfy client funds obligations20,385 12,781 
Restricted long-term marketable securities held to satisfy client funds obligations64,845 75,871 
Total funds held for clients$216,514 $228,111 
Investments Classified by Contractual Maturity Date
Expected maturities of available-for-sale securities are as of March 31, 2026, are as follows (in thousands):
One year or less$20,385 
After one year through five years64,845 
Total$85,230