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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Taxes—For financial reporting purposes, income before income taxes, includes the following components (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Domestic | $ | 88,617 |  |  | $ | 178,694 |  |  | $ | 42,811 |
Foreign | 38,404 |  |  | 25,246 |  |  | 17,424 |
Income before income taxes | $ | 127,021 |  |  | $ | 203,940 |  |  | $ | 60,235 |
Total income taxes allocated to operations for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
2025 | Current |  | Deferred |  | Total
Federal | $ | (2,938) |  |  | $ | — |  |  | $ | (2,938) |
State | 408 |  |  | — |  |  | 408 |
Foreign | 23,050 |  |  | (1,240) |  |  | 21,810 |
Total | $ | 20,520 |  |  | $ | (1,240) |  |  | $ | 19,280 |
2024 | Current |  | Deferred |  | Total
Federal | $ | 4,690 |  |  | $ | — |  |  | $ | 4,690 |
State | 3,321 |  |  | — |  |  | 3,321 |
Foreign | 14,586 |  |  | (2,403) |  |  | 12,183 |
Total | $ | 22,597 |  |  | $ | (2,403) |  |  | $ | 20,194 |
2023 | Current |  | Deferred |  | Total
Federal | $ | (261) |  |  | $ | — |  |  | $ | (261) |
State | 2,551 |  |  | — |  |  | 2,551 |
Foreign | 10,262 |  |  | (885) |  |  | 9,377 |
Total | $ | 12,552 |  |  | $ | (885) |  |  | $ | 11,667 |
Tax Rate Reconciliation—Income tax expense was $19.3 million for the year ended December 31, 2025, and differed from the amount computed by applying the U.S. federal statutory income tax rate of 21% to pretax income from operations. The reconciliation of these amounts is presented in the table below, which has been prepared in accordance with the disclosure guidance of ASU 2023-09 (in thousands):
| Year Ended December 31,
| 2025
| Amount |  | Percent
U.S. Federal Statutory Tax Rate | $ | 26,674 |  |  | 21.00 | %
State and Local Income Taxes, Net of Federal Income Tax Effect(1) | 323 |  |  | 0.25 | %
Foreign Tax Effects |  |  |
Brazil |  |  |
Income tax from withholding | 10,077 |  |  | 7.93 | %
Other | 3,092 |  |  | 2.43 | %
Effect of Cross-Border Tax Laws |  |  |
Global intangible low-taxed income (GILTI) | 2,131 |  |  | 1.68 | %
Other | 1,010 |  |  | 0.80 | %
Tax Credits |  |  |
U.S. R&D tax credits | (24,537) |  |  | (19.32) | %
U.S. Foreign tax credits | (19,019) |  |  | (14.97) | %
Changes in Valuation Allowances | 66,813 |  |  | 52.60 | %
Nontaxable or Nondeductible items |  |  |
Section 162(m) adjustment | 16,680 |  |  | 13.13 | %
Share-based compensation |  |  |
Other non-deductible share-based payments | 4,802 |  |  | 3.78 | %
Non-US share-based payment disallowance | 30,902 |  |  | 24.33 | %
Deductible share based-payments | (100,215) |  |  | (78.90) | %
Meals and entertainment | 3,182 |  |  | 2.51 | %
Other | 593 |  |  | 0.47 | %
Other Adjustments | (3,228) |  |  | (2.54) | %
Effective Tax Rate | $ | 19,280 |  |  | 15.18 | %
(1)MN & TX state taxes contribute to the majority (greater than 50 percent) of the tax effect in this category for 2025 |  |  |
The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09:
| Year Ended December 31,
|  | 2024 |  | 2023
Income tax expense at federal statutory rate |  | $ | 42,827 |  |  | $ | 12,650 |
Meals and entertainment |  | 2,782 |  |  | 1,957 |
State taxes (net of federal benefit) |  | 2,644 |  |  | 1,090 |
Net change in valuation allowance |  | 86,556 |  |  | 68,770 |
Uncertain tax positions |  | (60) |  |  | (94) |
U.S. tax costs on international operations |  | (4,729) |  |  | (1,920) |
Prior year NOL balance adjustment |  | 2,433 |  |  | — |
Foreign taxes |  | 6,280 |  |  | 5,106 |
Share based compensation deductions |  | (123,773) |  |  | (80,119) |
Section 162(m) adjustment |  | 17,435 |  |  | 10,335 |
Return to provision |  | (27) |  |  | (3,335) |
U.S. R&D tax credits |  | (14,119) |  |  | (2,973) |
Other |  | 1,945 |  |  | 200 |
Total |  | $ | 20,194 |  |  | $ | 11,667 |
Income Tax Payments Disclosed below is a summary of income taxes, net of refunds, paid by individual jurisdictions equaling 5% or more of the total for the year ended December 31, 2025, presented in accordance with the disclosure requirements of ASU 2023-09 (in thousands):
Income taxes paid |
United States - Federal | $ | 4,049 |
United States - State and local | 1,797 |
Foreign |
Brazil | 5,949 |
Netherlands | 968 |
Other | 4,886 |
Total income taxes paid | $ | 17,649 |
For the year ended December 31, 2025, the Company has evaluated the available evidence supporting the realization of its deferred tax assets, including the amount and timing of future taxable income, and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States. Due to uncertainties surrounding the realization of the deferred tax assets, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made. The Company is subject to tax laws in the United States and numerous foreign jurisdictions. The United States and many international legislative and regulatory bodies continually propose and enact legislation that could significantly impact how U.S. multinational corporations are taxed. The Company is closely monitoring proposed legislation and its potential impact. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA permanently extends certain provisions of the Tax Cuts and Jobs Act, including 100% bonus depreciation for certain qualified property, and reverses the requirement to capitalize and amortize domestic research and experimentation (“R&E”) expenses. As a result, for tax years beginning after December 31, 2024, taxpayers may deduct such expenses in the year incurred. The legislation also introduced an election to accelerate any unamortized domestic R&E expenditures over a one- or two-year period beginning with the 2025 tax year and includes modifications to the international tax framework. The OBBBA also includes modifications to the international tax framework. Future guidance from the Internal Revenue Service and other tax authorities with respect to such legislation may affect us, and certain aspects thereof could be repealed or modified in future legislation. In accordance with ASC 740, Accounting for Income Taxes, the Company has reflected the effects of the OBBBA in its financial statements for the year ended December 31, 2025. The enactment of the OBBBA reduced the Company’s U.S. income tax expense for 2025. The legislation did not impact the Company’s U.S. net deferred tax assets or liabilities, as a full valuation allowance continues to be maintained against those balances. Components of Deferred Taxes—The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below (in thousands):
| December 31,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Net operating losses | $ | 115,543 |  |  | $ | 22,804 |
U.S. R&D tax credits net of uncertain tax positions | 131,656 |  |  | 102,903 |
Stock-based compensation | 68,230 |  |  | 55,275 |
Section 174 capitalization | 220,486 |  |  | 285,198 |
Lease liability | 58,239 |  |  | 45,865 |
Other | 61,311 |  |  | 57,042 |
Total deferred tax assets | $ | 655,465 |  |  | $ | 569,087 |
Less: valuation allowance | (543,147) |  |  | (488,866) |
Deferred tax assets, net of valuation allowance | $ | 112,318 |  |  | $ | 80,221 |
Deferred tax liabilities: |  |  |
Commissions | (50,111) |  |  | (35,593) |
Right of use asset | (39,814) |  |  | (33,554) |
Fixed Assets | (16,742) |  |  | (7,261) |
Total deferred tax liabilities | $ | (106,667) |  |  | $ | (76,408) |
Deferred tax assets, net | $ | 5,651 |  |  | $ | 3,813 |
The Company accounts for income taxes using an asset and liability method and deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company’s deferred tax assets and liabilities consist primarily of basis differences for financial reporting and tax purposes of certain assets and liabilities as well as income tax attributes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon the weight of all available evidence, which includes the historical operating performance and the Company's cumulative losses when considering permanent tax adjustments, management does not believe as of December 31, 2025 and 2024 that it is more likely than not that the Company will realize its U.S. deferred tax assets. As a result, a valuation allowance of $543.1 million and $488.9 million has been provided at December 31, 2025 and 2024, respectively. The valuation allowance changed by $54.3 million and $167.3 million at December 31, 2025 and 2024, respectively. At December 31, 2025, the Company has net operating loss carryforwards for federal tax purposes of approximately $340.2 million, which is available to offset federal taxable income. For the year ending December 31, 2024, the Company utilized all of its net operating loss carryforwards for federal tax purposes except for acquired losses, offset against its federal taxable income for the year. The Company also has historically acquired losses for which it is evaluating the feasibility of future utilization under IRC section 382. U.S. Federal net operating losses generated after December 31, 2017 have an indefinite carryforward period but are subject to an 80% of taxable income limitation after December 31, 2020. The Company has approximately $474.2 million and $263.0 million of net operating loss carryforwards as of December 31, 2025 and 2024, respectively for various state tax purposes. The state net operating loss carryforwards will begin to expire in 2028, if not utilized. Generally, the utilization of net operating losses may be subject to an annual limitation provided for in the Internal Revenue Code of 1986, as amended, under Section 382 and similar state codes. The Company has prepared an analysis to determine whether its net operating losses may be limited under such provisions. It has been determined that any annual limitation would not result in the expiration of net operating loss carryforwards before utilization. In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. Historically, the Company has not made a provision for U.S. income tax with respect to accumulated earnings of foreign subsidiaries where the foreign investment of such earnings is essentially permanent in duration. Generally, such amounts would become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The Company has not provided U.S. taxes on unremitted earnings of its foreign subsidiaries as it asserts permanent reinvestment on any accumulated earnings and profits. Consistent with the provisions of ASC 740, Income Taxes, the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The following table shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2025, 2024 and 2023 (in thousands):
| December 31,
| 2025 |  | 2024 |  | 2023
Beginning balance | $ | 25,729 |  |  | $ | 59 |  |  | $ | 106 |
Increase of current year tax positions | 18,156 |  |  | 25,729 |  |  | — |
(Decrease) of prior year tax positions due to lapse of statute of limitations | — |  |  | (59) |  |  | (47) |
Ending balance | $ | 43,885 |  |  | $ | 25,729 |  |  | $ | 59 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate would be $0.0 million for the year ended December 31, 2025 due to the excess of deferred tax attributes. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in income tax expense. The total amount of interest and penalties associated with unrecognized income tax benefits is $0.0 million and $0.0 million for the years ended December 31, 2025 and 2024. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and in various international jurisdictions. Tax years 2022 and forward generally remain open for examination for federal and state tax purposes. To the extent utilized in future years’ tax returns, net operating loss carryforwards generated in 2025 will remain subject to examination until the respective tax year is closed.

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