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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 (loss) before income tax (benefit) provision for the years ended December 31, 2025, 2024 and 2023 consists of the following:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
United States | $ | (29,355) |  |  | $ | (586,004) |  |  | $ | (753,105) |
Foreign | 36,368 |  |  | (7,154) |  |  | (38,148) |
Income (loss) before income tax (benefit) provision | $ | 7,013 |  |  | $ | (593,158) |  |  | $ | (791,253) |
The components of the income tax (benefit) provision consists of the following:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | 10 |  |  | $ | — |
State | 2,251 |  |  | 607 |  |  | 433 |
Foreign | 20,248 |  |  | 5,775 |  |  | 3,888 |
Total current provision | 22,499 |  |  | 6,392 |  |  | 4,321 |
Deferred: |  |  |  |  |
Federal | (13,946) |  |  | (64,196) |  |  | 205 |
State | (3,682) |  |  | (29,022) |  |  | 2,643 |
Foreign | (597) |  |  | 485 |  |  | 3,001 |
Total deferred (benefit) provision | (18,225) |  |  | (92,733) |  |  | 5,849 |
Total income tax (benefit) provision | $ | 4,274 |  |  | $ | (86,341) |  |  | $ | 10,170 |
The reconciliation between income taxes computed at the U.S. statutory income tax rate to our (benefit) provision for income taxes for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Year ended December 31, 2025
| $ |  | %
U.S. Federal Statutory Tax Rate | 1,473 |  |  | 21.0 | %
State and Local Income Taxes (1) | 53 |  |  | 0.8 | %
Effect of Cross-Border Tax Laws | 991 |  |  | 14.1 | %
Tax Credits |  |  |
R&D Credit Generation | (31,275) |  |  | (446.0) | %
Changes in Valuation Allowance | 50,856 |  |  | 725.2 | %
Nontaxable or Nondeductible Items |  |  |
Stock based compensation (benefit) expense | (121,405) |  |  | (1731.1) | %
Non-deductible executive compensation | 81,305 |  |  | 1159.3 | %
Non-deductible lobbying expenses | 6,831 |  |  | 97.4 | %
Mark-to-market earn-out gain | (7,957) |  |  | (113.5) | %
Other | 9,327 |  |  | 133.0 | %
Other Adjustments | 1,021 |  |  | 14.6 | %
Other Foreign Jurisdictions | (2,187) |  |  | (31.2) | %
Changes in Unrecognized Tax Benefits | 15,241 |  |  | 217.3 | %
Income Tax Expense | $ | 4,274 |  |  | 61.0 | %
(1) State taxes attributable to New Jersey, New York State, New York City, and Michigan made up the majority (greater than 50 percent) of the tax effect in this category.
| Years Ended December 31,
| 2024 |  | 2023
Benefit for income taxes at 21% rate | $ | (124,563) |  |  | $ | (166,217) |
State taxes, net of federal benefit | (9,752) |  |  | (40,385) |
Stock-based compensation (benefit) expense | (882) |  |  | 26,155 |
Non-deductible lobbying expenses | 6,924 |  |  | 1,009 |
Change in valuation allowance | 18,307 |  |  | 130,817 |
Non-deductible executive compensation | 18,275 |  |  | 30,106 |
Loss (gain) on remeasurement of warrant liabilities | 1,270 |  |  | 12,084 |
Foreign rate differential | 1,003 |  |  | 3,348 |
Income tax reserves | 3,848 |  |  | 4,119 |
Other | (771) |  |  | 9,134 |
Total income tax (benefit) provision | $ | (86,341) |  |  | $ | 10,170 |
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2025 and 2024 are as follows:
| Year Ended December 31,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 1,190,449 |  |  | $ | 1,100,214 |
R&D credit carryforwards | 38,992 |  |  | 15 |
Intangible assets | 13,867 |  |  | 13,770 |
Accrual and other temporary differences | 64,877 |  |  | 78,535 |
Operating lease | 16,096 |  |  | 22,239 |
Stock-based compensation | 41,516 |  |  | 60,754 |
Capitalized research and development costs | 174,642 |  |  | 199,663 |
Fixed assets | 3,698 |  |  | 3,710 |
Gross deferred tax assets | 1,544,137 |  |  | 1,478,900 |
Valuation allowance | (1,528,391) |  |  | (1,453,715) |
Net deferred tax assets | $ | 15,746 |  |  | $ | 25,185 |
Deferred tax liabilities: |  |  |
Fixed assets | $ | (139) |  |  | $ | (108) |
Intangible assets | (5,219) |  |  | (6,532) |
Operating lease | (15,185) |  |  | (21,472) |
Other | (2,658) |  |  | (4,041) |
Gross deferred tax liabilities | (23,201) |  |  | (32,153) |
Total net deferred tax liabilities | $ | (7,455) |  |  | $ | (6,968) |
In assessing whether it is more likely than not that deferred tax assets will be realized, the Company considers all available evidence, both positive and negative, including its recent cumulative earnings or loss, experience and expectations of future available taxable income of the appropriate source and character by taxing jurisdiction, tax attribute carryback and carryforward periods available for tax purposes, and prudent and feasible tax planning strategies. The Company records its deferred tax assets of $7.7 million and $6.8 million for 2025 and 2024, respectively, in deposits and other non-current assets in the consolidated balance sheet and its deferred tax liabilities of $15.2 million and $13.8 million for 2025 and 2024, respectively, in other long-term liabilities in the consolidated balance sheets. The Company has provided a valuation allowance for the U.S. deferred tax assets as of December 31, 2025 and 2024. For the years ended December 31, 2025 and 2024, the U.S. valuation allowance increased by $74.7 million and $98.4 million, respectively, which primarily related to the current year operating losses. As of December 31, 2025, the Company had U.S. federal and state tax net operating loss (“NOL”) carryforwards of $4.3 billion and $4.4 billion, respectively, which may be available to offset future income tax liabilities. Of the federal net operating loss carryforward, $0.6 billion expires at various dates beginning in 2032 through 2037 and $3.7 billion does not expire. Of the state NOL carryforward, $4.1 billion expires at various dates beginning in 2025 through 2045 and $0.3 billion does not expire. As of December 31, 2025, we had federal research tax credit carryforwards of $45.0 million, before the impact of uncertain tax positions, that will begin to expire in 2040. We have state research tax credit carryforwards of $13.9 million, before the impact of uncertain tax positions, that will begin to expire in 2035. Utilization of the NOL carryforwards may be subject to limitation under Section 382 of the Internal Revenue Code of 1986 based on ownership changes that could occur in the future. These ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. There could be additional ownership changes in the future, which may result in additional limitations on the utilization of the NOL and tax credit carryforwards. The Company has analyzed the impact of these limitations on its attributes and included the impact of these limitations in its U.S. deferred tax assets. As of December 31, 2025, foreign earnings have been retained by the Company’s foreign subsidiaries for indefinite reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred income tax liability related to these outside basis differences is not practicable. In addition to filing federal income tax returns, the Company files income tax returns in numerous states and foreign jurisdictions that impose an income tax. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the years beginning in 2012. The Company is no longer subject to foreign income tax examinations for tax years prior to 2018. The following table presents a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, included in long-term income tax liabilities on the Company’s consolidated balance sheets:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Unrecognized tax benefits at the beginning of the year | $ | 56,030 |  |  | $ | 57,424 |  |  | $ | 58,011 |
Additions for tax positions of prior years | — |  |  | — |  |  | 1,026 |
Reduction for tax positions of prior years | (1,082) |  |  | (1,395) |  |  | (269) |
Additions for tax positions of current year | 16,711 |  |  | 377 |  |  | 449 |
Settlements | — |  |  | — |  |  | — |
Foreign currency adjustments | 11,235 |  |  | (376) |  |  | (1,793) |
Unrecognized tax benefits at the end of the year | $ | 82,894 |  |  | $ | 56,030 |  |  | $ | 57,424 |
As of December 31, 2025, 2024 and 2023, the Company had $64.3 million, $54.2 million and $55.9 million, respectively, of net unrecognized tax benefits, which would affect the Company’s tax rate if recognized. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense. During the years ended December 31, 2025, 2024 and 2023, the Company recognized $5.1 million, $5.3 million and $5.0 million in interest and penalties. The Company had $27.3 million and $22.2 million of interest and penalties accrued at December 31, 2025 and 2024, respectively. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. Although the Company believes that it has appropriately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different than expectations. The Company will adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit, the refinement of an estimate, the closing of a statutory audit period or changes in applicable tax law. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences would impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to the reserves that are considered appropriate, as well as related net interest. The Company recognizes liabilities for anticipated tax audit issues in the U.S. and other domestic and international tax jurisdictions based on its estimate of whether, and the extent to which, the tax positions are more likely than not to be sustained based on the technical merits. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax laws applied to the facts of each matter. The Company believes it maintains appropriate reserves to offset any potential income tax liabilities that may arise upon final resolution of matters for open tax years. If such reserve amounts ultimately prove to be unnecessary, the resulting reversal of such reserves could result in tax benefits being recorded in the period the reserves are no longer deemed necessary. If such amounts prove to be less than an ultimate assessment, a future charge to expense would be recorded in the period in which the assessment is determined. A reconciliation of income taxes paid (refunded) by jurisdictions is as follows:
| Year Ended December 31,
| 2025
US Federal | $ | 617 |
US State |
Pennsylvania | 1,974 |
Illinois | 1,541 |
New York | 467 |
Other States | 2,490 |
Foreign |
Canada | 2,202 |
Israel | (1,868) |
Other Foreign Jurisdictions | 813 |
Total | $ | 8,236 |

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