XML 30 R20.htm IDEA: XBRL DOCUMENT v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12. Income Taxes
The Company computes its income tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss from recurring operations and adjusting for discrete tax items arising in that quarter. The Company's income tax benefit was $30.8 million on pretax losses of $35.5 million for the three months ended June 30, 2025 and income tax benefit of $30.2 million on pretax losses of $33.5 million for the six months ended June 30, 2025, which resulted in an effective tax rate of 87% and 90%, respectively. The Company’s effective tax rate differs from the U.S. statutory rate of 21% primarily due to an increase in its valuation allowance and to a lesser extent from foreign income taxed at different rates and non-deductible stock-based compensation.
The Company’s income tax benefit was $19.1 million on pretax losses of $14.3 million for the three months ended June 30, 2024 and income tax benefit of $44.5 million on pretax losses of $30.4 million for the six months ended June 30, 2024, which resulted in an effective tax rate of 134% and 147%, respectively. The Company’s effective tax rate differs from the U.S. statutory rate of 21% primarily due to the Company’s projected full-year pretax income and its recorded pretax loss for the interim period ended June 30, 2024.

ASC 740, Accounting for Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. In assessing the need for a valuation allowance as of June 30, 2025, the Company considered all available evidence both positive and negative, including potential for prudent and
feasible tax planning strategies. As a result of this analysis for the six months ended June 30, 2025, management believes it is more likely than not that the Company’s deferred tax assets, after recorded valuation allowances for its U.S. Federal and State deferred tax assets, and operating loss carryforwards in certain non-U.S. jurisdictions, will be realized.