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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows:
|  | Years Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. Federal & State |  | $ | (563,863 | ) |  | $ | 93,357 |  |  | $ | 65,899 |
Foreign |  |  | 706,675 |  |  |  | 1,009 |  |  |  | 7,030 |
Income (loss) before taxes |  | $ | 142,812 |  |  | $ | 94,366 |  |  | $ | 72,929 |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows:
|  | Years Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Current tax expense |  |  |  |  |  |  |  |  |
U.S. Federal & State |  | $ | 1,551 |  |  | $ | 25,975 |  |  | $ | 13,730 |
Foreign |  |  | 5,531 |  |  |  | 1,871 |  |  |  | 2,632 |
Total current |  | $ | 7,082 |  |  | $ | 27,846 |  |  | $ | 16,362 |
Deferred tax expense (benefit) |  |  |  |  |  |  |  |  |
U.S Federal & State |  | $ | 9,724 |  |  | $ | (7,941 | ) |  | $ | (6,711 | )
Foreign |  |  | (14,319 | ) |  |  | 535 |  |  |  | — |
Total deferred |  | $ | (4,595 | ) |  | $ | (7,406 | ) |  | $ | (6,711 | )
Total income taxes |  | $ | 2,487 |  |  | $ | 20,440 |  |  | $ | 9,651 |
Summary of Reconciliation Income Tax Expense (Benefit) Computed using US Statutory Income Tax Rate | The reconciliation of income tax expense (benefit) computed using the US statutory income tax rate of 21% to the actual income tax expense and resulting effective tax rate is as follows:
|  | Years Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. statutory income tax rate |  | $ | 29,991 |  |  | $ | 19,817 |  |  | $ | 15,295 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |  |
Nondeductible expenses |  |  | (547 | ) |  |  | 258 |  |  |  | 160 |
Global intangible low-taxed income and foreign derived intangible income |  |  | (1,093 | ) |  |  | (1,420 | ) |  |  | (109 | )
Dividends received deduction |  |  | (6,413 | ) |  |  | (1,570 | ) |  |  | (2,115 | )
Bargain Purchase Gain |  |  | (18,021 | ) |  |  | — |  |  |  | — |
Equity Method Investment Gain |  |  | (1,688 | ) |  |  | — |  |  |  | — |
Transaction Costs |  |  | 3,552 |  |  |  | — |  |  |  | — |
Research & development credit |  |  | (283 | ) |  |  | (407 | ) |  |  | (329 | )
Valuation allowance |  |  | (11,298 | ) |  |  | (1,495 | ) |  |  | (8,459 | )
State taxes |  |  | 1,589 |  |  |  | 2,650 |  |  |  | 1,458 |
Prior year true up |  |  | (213 | ) |  |  | 853 |  |  |  | 1,690 |
Foreign rate differential |  |  | 5,296 |  |  |  | 1,990 |  |  |  | 1,198 |
Foreign withholding tax |  |  | 1,647 |  |  |  | (236 | ) |  |  | 816 |
Uncertain Tax Positions |  |  | (33 | ) |  |  | — |  |  |  | — |
Other |  |  | 1 |  |  |  | — |  |  |  | 46 |
Effective income tax expense |  | $ | 2,487 |  |  | $ | 20,440 |  |  | $ | 9,651 |
Effective income tax rate |  |  | 1.7 | % |  |  | 21.7 | % |  |  | 13.2 | %
Components of Net Deferred Tax Assets (Liabilities) |
|  | Year Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |
Deferred income tax assets: |  |  |  |  |  |
Impairment and excess amortization of intangible assets |  | $ | 9,657 |  |  | $ | 4,768 |
Uniform capitalization of inventory |  |  | 3,113 |  |  |  | 4,283 |
Inventory reserves |  |  | 32,678 |  |  |  | 4,796 |
Net operating loss carryforward |  |  | 79,500 |  |  |  | 49,208 |
Lease liability |  |  | 13,851 |  |  |  | 7,733 |
Deferred revenue |  |  | 7,103 |  |  |  | — |
Allowance for doubtful accounts |  |  | 13,876 |  |  |  | — |
Capitalized R&D costs |  |  | 7,310 |  |  |  | — |
Income tax credit carryforward |  |  | 29,677 |  |  |  | — |
Property and equipment |  |  | 4,590 |  |  |  | — |
Other |  |  | 4,122 |  |  |  | 5,774 |
Total deferred income tax assets |  | $ | 205,477 |  |  | $ | 76,562 |
Valuation allowance |  |  | (53,268 | ) |  |  | (46,886 | )
Total deferred tax assets, net |  | $ | 152,209 |  |  | $ | 29,676 |
Deferred tax liability: |  |  |  |  |  |
Property and equipment |  |  | — |  |  |  | (4,607 | )
Withholding tax |  |  | (3,192 | ) |  |  | (726 | )
GAAP to STAT Deferred |  |  | (1,601 | ) |  |  | (2,903 | )
Right of use asset |  |  | (13,500 | ) |  |  | (7,423 | )
Total deferred tax liabilities |  | $ | (18,293 | ) |  | $ | (15,659 | )
Net deferred income tax asset (liability) |  | $ | 133,916 |  |  | $ | 14,017 |
Summary of Change in Valuation Allowance | The changes in valuation allowance during the years ended December 31, 2024, 2023 and 2022 were as follows:
|  | Years Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at January 1 |  | $ | 46,886 |  |  | $ | 46,466 |  |  | $ | 54,925 |
Adjustments pertaining to deferred tax assets acquired as part of the Merger (1) |  |  | 18,084 |  |  |  | - |  |  |  | - |
Charges to costs and expenses (2) |  |  | 1,398 |  |  |  | 2,359 |  |  |  | - |
Reversals (3) |  |  | (13,192 | ) |  |  | (1,179 | ) |  |  | (7,934 | )
Adjustments (4) |  |  | 92 |  |  |  | (760 | ) |  |  | (525 | )
Balance at December 31 |  | $ | 53,268 |  |  | $ | 46,886 |  |  | $ | 46,466 |
(1) The Company has adjusted certain valuation allowances as a result of the Merger and purchase price accounting. (2) The Company has recorded valuation allowances on deferred tax assets attributable to net operating losses and tax credits in certain jurisdictions due to uncertainty of its ability to utilize these assets in future periods. During 2024, the Company recorded valuation allowances of $0.4 million and $1.0 million related to domestic deferred tax assets and foreign deferred tax assets, respectively. (3) The Company reverses valuation allowances on deferred tax assets in the period in which, based on the weight of available evidence, it is more-likely-than-not that the deferred tax asset will be realized. In 2024, reversals were primarily driven by release in foreign jurisdictions where we now believe we will utilize deferred tax assets. (4) The Company has adjusted certain valuation allowances as a result of changes in tax rates in certain jurisdictions, the expiration of carryforward periods for net operating loss carryforwards, and foreign exchange rate movements.
Schedule of Uncertain Tax Positions |
|  | Year Ended December 31, |
(in thousands) |  | 2024 |  |  | 2023 |
Uncertain tax positions: |  |  |  |  |  |
Balance at beginning of year |  | $ | - |  |  | $ | - |
Additions for tax positions related to current year |  |  | 273 |  |  |  | - |
Reduction for tax positions related to the prior year |  |  | (33 | ) |  |  | - |
Balance at end of year |  | $ | 240 |  |  | $ | - |

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