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Income Taxes
 3 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents income tax provision for income taxes (in thousands, except for effective tax rate):
Three Months Ended
December 31, 2025December 28, 2024
Income tax provision(367)— 
Effective tax rate 1.96 %— %
During the three months ended December 31, 2025, the Company recorded an income tax provision of $0.4 million which included a discrete tax benefit of $6.0 thousand related to share-based compensation. The effective tax rate was 1.96% on pre-tax loss of $18.7 million. The effective tax rate differs from the U.S. Statutory rate of 21% as no tax benefit was provided on current year operating losses primarily due to valuation allowances recorded against the Company’s net deferred tax assets.
During the three months ended December 28, 2024, the effective tax rate was 0.00% on pre-tax loss of $38.6 million. The effective tax rate differs from the U.S. Statutory rate of 21% because the Hulu Live Business was part of Hulu, which was a non-taxable partnership through June 27, 2025. Therefore, no income tax was allocated to the Hulu Live Business when prepared on a carve out basis for the three months ended December 28, 2024.
The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carrybacks and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative losses in recent years which is a significant piece of negative evidence to overcome. The Company maintains a full valuation allowance on all its U.S., French, and Spanish deferred tax assets as the Company concluded that such deferred tax assets are not realizable on a more-likely-than-not basis.