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v3.25.4

Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes For financial reporting purposes, loss before provision for income taxes for the years ended December 31, 2025, 2024, and 2023 included the following components (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Domestic | $ | (232,317) |  |  | $ | (989,958) |  |  | $ | (192,665) |
International | (3,213) |  |  | (3,695) |  |  | (26,943) |
Total | $ | (235,530) |  |  | $ | (993,653) |  |  | $ | (219,608) |
The provision for income taxes was comprised of the following components (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Current federal | $ | (546) |  |  | $ | 1,344 |  |  | $ | — |
Current state | 218 |  |  | 3,892 |  |  | 1,439 |
Current foreign | 6,527 |  |  | 3,501 |  |  | 1,225 |
Total current | 6,199 |  |  | 8,737 |  |  | 2,664 |
Deferred federal | (34,178) |  |  | 210 |  |  | (3,946) |
Deferred state | (4,750) |  |  | (784) |  |  | 5,388 |
Deferred foreign | (2,479) |  |  | (571) |  |  | (3,346) |
Total deferred | (41,407) |  |  | (1,145) |  |  | (1,904) |
Provision for income taxes | $ | (35,208) |  |  | $ | 7,592 |  |  | $ | 760 |
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences are as follows (dollar amounts in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Expense/(Benefit) | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
U.S. federal statutory rate | $ | (49,461) |  |  | 21.0 | % |  | $ | (208,667) |  |  | 21.0 | % |  | $ | (46,118) |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect (1) | (3,687) |  |  | 1.6 |  |  | (2,251) |  |  | 0.2 |  |  | 7,459 |  |  | (3.4) |
Foreign tax effects |  |  |  |  |  |  |  |  |  |  |
Canada |  |  |  |  |  |  |  |  |  |  |
Valuation allowances | 3,868 |  |  | (1.6) |  |  | 1,900 |  |  | (0.2) |  |  | 3,117 |  |  | (1.4) |
Other | (1,900) |  |  | 0.8 |  |  | 200 |  |  | 0.0 |  |  | 50 |  |  | 0.0 |
Australia |  |  |  |  |  |  |  |  |  |  |
Goodwill impairment | 2,651 |  |  | (1.1) |  |  | — |  |  | 0.0 |  |  | — |  |  | 0.0 |
Other | 12 |  |  | 0.0 |  |  | (400) |  |  | 0.0 |  |  | 23 |  |  | 0.0 |
Other foreign jurisdictions |  |  |  |  |  |  |  |  |  |  |
Other | 63 |  |  | 0.0 |  |  | 1,949 |  |  | (0.3) |  |  | 371 |  |  | (0.1) |
Tax credits |  |  |  |  |  |  |  |  |  |  |
Research & development tax credits | (7,354) |  |  | 3.1 |  |  | — |  |  | 0.0 |  |  | — |  |  | 0.0 |
Foreign tax credits | 873 |  |  | (0.4) |  |  | 1,136 |  |  | (0.1) |  |  | 1,439 |  |  | (0.7) |
Changes in valuation allowances | 20,873 |  |  | (8.9) |  |  | (5,095) |  |  | 0.5 |  |  | 2,020 |  |  | (0.9) |
Nontaxable or nondeductible items |  |  |  |  |  |  |  |  |  |  |
Goodwill impairment | 3,348 |  |  | (1.4) |  |  | 165,900 |  |  | (16.7) |  |  | — |  |  | 0.0 |
Stock compensation | 14,072 |  |  | (6.0) |  |  | 43,153 |  |  | (4.3) |  |  | 35,166 |  |  | (16.0) |
Other | 1,490 |  |  | (0.6) |  |  | 422 |  |  | 0.0 |  |  | (1,593) |  |  | 0.7 |
Changes in unrecognized tax benefits | (20,056) |  |  | 8.5 |  |  | 9,345 |  |  | (0.9) |  |  | (1,174) |  |  | 0.5 |
Effective tax rate | $ | (35,208) |  |  | 15.0 | % |  | $ | 7,592 |  |  | (0.8) | % |  | $ | 760 |  |  | (0.3) | %
(1)State taxes in Texas, California, Illinois, and Pennsylvania made up greater than 50 percent of the tax effect in state and local taxes. The Company’s deferred tax assets and liabilities consisted of the following (in thousands):
| As of
| December 31, |  | December 31,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 541,845 |  |  | $ | 541,791 |
Accrued expenses and compensation | 8,984 |  |  | 5,308 |
Stock-based compensation | 13,391 |  |  | 16,747 |
Foreign tax credits and alternative minimum tax credits | — |  |  | 873 |
Research and development credits | 29,271 |  |  | — |
Depreciation of property and equipment | 1,615 |  |  | 2,144 |
Operating lease assets | 10,419 |  |  | 10,065 |
Deferred revenue | 3,272 |  |  | 3,941 |
Capitalized research and development | 60,588 |  |  | 65,382 |
Goodwill | 9,674 |  |  | — |
Other | 16,861 |  |  | 17,286 |
Deferred tax assets | 695,920 |  |  | 663,537 |
Valuation allowance | (453,423) |  |  | (416,701) |
Net deferred tax assets | 242,497 |  |  | 246,836 |
Deferred tax liabilities: |  |  |
Operating lease assets | (4,878) |  |  | (5,068) |
Intangible assets | (256,485) |  |  | (284,774) |
Other | (10,079) |  |  | (6,845) |
Deferred tax liabilities | (271,442) |  |  | (296,687) |
Net deferred tax liabilities | $ | (28,945) |  |  | $ | (49,851) |
As of December 31, 2025, the Company had approximately $2,128.2 million of federal net operating loss (“NOL”) carryforwards, $1,155.2 million of state NOL carryforwards, and $99.2 million of foreign NOL carryforwards. The federal NOL carryforwards of $2,128.2 million generated after December 31, 2017 will carry forward indefinitely. A portion of the state and foreign NOL carryforwards will begin to expire in 2026. As of December 31, 2025, the Company had no foreign tax credits. As of December 31, 2025, the Company had $29.3 million federal and state research and development credits. As of December 31, 2025, the Company had a valuation allowance of approximately $453.4 million against a portion of the U.S. and certain foreign deferred tax assets, for which realization cannot be considered more likely than not at this time. The valuation allowance increased by $36.7 million from December 31, 2024 due to a reduction of sources of future taxable income related to decreasing deferred tax liabilities. The cash paid for income taxes, net of refunds, was comprised of the following components (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Federal | $ | 1,200 |  |  | $ | 600 |  |  | $ | — |
State | 3,237 |  |  | 4,390 |  |  | 5,841 |
Foreign | 4,308 |  |  | 3,956 |  |  | 1,397 |
Total | $ | 8,745 |  |  | $ | 8,946 |  |  | $ | 7,238 |
State income taxes paid, net of refunds, that were greater than 5% of total income taxes paid
Texas | $ | 868 |  |  | $ | — |  |  | $ | 1,500 |
Illinois | $ | 280 |  |  | $ | 700 |  |  | $ | 1,060 |
Pennsylvania | $ | 282 |  |  | $ | 563 |  |  | $ | 1,330 |
California | $ | 509 |  |  | $ | 909 |  |  | $ | — |
Foreign income taxes paid, net of refunds, that were greater than 5% of total income taxes paid
Canada | $ | 804 |  |  | $ | 1,098 |  |  | $ | 967 |
Spain | $ | 2,293 |  |  | $ | 467 |  |  | $ | — |
Portugal | $ | — |  |  | $ | 453 |  |  | $ | — |
United Kingdom | $ | 953 |  |  | $ | 1,447 |  |  | $ | — |
The following table presents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023 (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Balance at beginning of the period | $ | 191,308 |  |  | $ | 171,566 |  |  | $ | 143,798 |
Unrecognized tax benefits assumed in a business combination | — |  |  | — |  |  | — |
Additions based on current year tax positions | 20,050 |  |  | 8,725 |  |  | 6,677 |
(Reductions) additions based on prior year tax positions | (6,423) |  |  | 11,017 |  |  | 21,091 |
Statute of limitations expirations | — |  |  | — |  |  | — |
Releases | (21,086) |  |  | — |  |  | — |
Balance at end of the period | $ | 183,849 |  |  | $ | 191,308 |  |  | $ | 171,566 |
The amount of unrecognized tax benefits as of December 31, 2025 that, if recognized, would reduce tax expense was approximately $183.8 million. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions in the U.S. and other countries, where applicable. The Company is open under the U.S. federal statute from 2021 to the present, although earlier years may be examined to the extent that loss carryforwards are used in open audit periods. The Company is currently not under audit by the IRS or in any foreign tax jurisdictions. One state is currently under audit in the United States. There are no tax matters under discussion with taxing authorities that are expected to have a material effect on the Company's consolidated financial statements. The Company further believes that it has made adequate provision for all income tax uncertainties. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, introducing significant federal tax changes, including the restoration of immediate expensing for domestic research and experimental (“R&E”) expenditures under new Section 174A beginning with tax years starting January 1, 2025. This change eliminates the prior requirement to amortize domestic R&E costs over five years for post‑2021 expenditures and allows companies to deduct qualifying U.S.‑based R&D expenses in the year incurred. The Company has evaluated the impacts of OBBBA, including the reinstated immediate deduction for domestic R&D activities and related implementation considerations. Based on the Company’s current operations, projected R&D spending profile, and the transitional mechanics affecting 2022–2024 R&D balances described in the legislation, the Company does not expect these provisions to have a material impact on its consolidated financial statements. The Company will continue to monitor future guidance and any state-level conformity developments, but no material effects are anticipated at this time. During 2021, the Organization for Economic Co-operation and Development announced an agreed framework for “Pillar Two” and released detailed model rules for a global minimum corporate tax rate of fifteen percent (15%) which requires multilateral agreement(s) and/or country-specific legislative action to be effective. A few jurisdictions have implemented legislation with effective dates spanning from 2024 through 2026. The Company will continue to monitor further legislation by individual countries and is currently evaluating the potential impact of Pillar Two to its business in future periods. However, the Company is not likely to have any material Pillar Two liability.

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