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Income Taxes | 9 Months Ended
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Jun. 30, 2026
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 |  | Nine Months Ended
| June 30, 2026 |  | June 28, 2025 |  | June 30, 2026 |  | June 28, 2025
Income tax provision | (728) |  |  | — |  |  | (1,438) |  |  | — |
Effective tax rate | (2.91) | % |  | — | % |  | (2.90) | % |  | — | %
During the three and nine months ended June 30, 2026, the Company recorded an income tax provision of $0.7 million and $1.4 million, respectively. The effective tax rate was (2.91)% and (2.90)% on a pre-tax loss of $25.0 million and $49.5 million during the three and nine months ended June 30, 2026, respectively. 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. Although the Company has a pre-tax loss, the Company recorded a tax expense primarily related to foreign and certain U.S. state and local jurisdictions resulting in a negative effective tax rate. During the three and nine months ended June 28, 2025, the effective tax rate was 0.00% on pre-tax loss of $38.0 million and $117.5 million, respectively. 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 and nine months ended June 28, 2025. 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.

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