Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes In accordance with applicable accounting guidance, the income tax expense for the nine months ended September 30, 2025 is based on the estimated annual effective tax rate for fiscal year 2025. The Company's provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items, valuation allowances, and any applicable income tax credits. The Company's provision for income taxes reflected an effective tax rate of approximately 1.1% and (23.7)% for the three months ended September 30, 2025 and 2024, respectively and 7.0% and (18.0)% for the nine months ended September 30, 2025 and 2024, respectively. For the three and nine months ended September 30, 2025 and 2024, the Company's effective tax rate was lower than the U.S. federal statutory rate primarily due to its valuation allowance offsetting the benefits of losses. The Company's income tax expenses and benefits consist of federal, state and foreign current and deferred income tax expense from global operations. On July 4, 2025, the U.S. government enacted tax legislation commonly referred to as the One Big Beautiful Bill Act (the "OBBBA"). Beginning with the 2025 tax year, the OBBBA permanently restores immediate expensing of domestic research and development expenditures and reinstates 100% bonus depreciation, among other provisions. As further guidance is issued by the IRS, the Company may have additional adjustments upon the filing of the relevant tax returns. For the nine months ended September 30, 2025, the OBBBA did not have a material impact on the Company's effective tax rate. To date, the Company has provided a valuation allowance against most of its deferred tax assets as it believes the objective and verifiable evidence of its historical pretax net losses outweighs any positive evidence of its forecasted future results. The Company will continue to monitor the positive and negative evidence, and it will adjust the valuation allowance as sufficient objective positive evidence becomes available. As of September 30, 2025, the Company had $1.1 million in uncertain tax positions, including an insignificant amount of accrued interest, representing no change from the balance at December 31, 2024. The Company's tax years 2021 through 2024 generally remain open to examination by the major taxing jurisdictions to which the Company is subject. Operating losses generated in years prior to 2021 remain open to adjustment until the statute of limitations closes for the tax year in which the net operating losses are utilized. |