XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.26.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents a summary of our domestic and foreign (loss) income before income taxes for the periods presented:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Domestic | $ | (75,413) |  |  | $ | (26,243) |  |  | $ | 11,024 |
Foreign | (21,859) |  |  | 3,704 |  |  | 3,609 |
(Loss) income before income taxes | $ | (97,272) |  |  | $ | (22,539) |  |  | $ | 14,633 |
The components of income tax expense included in our consolidated statements of operations were as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 1,939 |  |  | $ | 10,972 |  |  | $ | 15,036 |
State | (588) |  |  | 2,896 |  |  | 3,881 |
Foreign | (125) |  |  | 651 |  |  | 861 |
Current income tax expense | 1,226 |  |  | 14,519 |  |  | 19,778 |
Deferred: |  |  |  |  |
Federal | (14,534) |  |  | (7,449) |  |  | (9,040) |
State | 14,747 |  |  | (2,906) |  |  | (2,666) |
Foreign | 155 |  |  | (1) |  |  | (161) |
Deferred income tax expense (benefit) | 368 |  |  | (10,356) |  |  | (11,867) |
Income tax expense | $ | 1,594 |  |  | $ | 4,163 |  |  | $ | 7,911 |
Note 14—Income Taxes (continued) Income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences after the adoption of ASU 2023-09 are as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
(In thousands except % data) | Amount ($) | Percent (%) |  | Amount ($) | Percent (%) |  | Amount ($) | Percent (%)
U.S. federal statutory tax rate | $ | (20,427) |  | 21.0 | % |  | $ | (4,733) |  | 21.0 | % |  | $ | 3,073 |  | 21.0 | %
State income taxes, net of federal tax benefit* | 14,966 |  | (15.4) |  |  | (543) |  | 2.4 |  |  | (128) |  | (0.9) |
Foreign tax effects |  |  |  |  |  |  |  |
China |  |  |  |  |  |  |  |
Statutory tax rate difference between China and U.S. | 1,295 |  | (1.3) |  |  | (244) |  | 1.1 |  |  | (241) |  | (1.6) |
Changes in valuation allowance | 3,393 |  | (3.5) |  |  | — |  | — |  |  | — |  | — |
Other | (68) |  | 0.1 |  |  | 117 |  | (0.6) |  |  | 183 |  | 1.2 |
Effect of changes in tax laws or rates enacted in the current period | — |  | — |  |  | — |  | — |  |  | — |  | — |
Effect of cross-border tax laws |  |  |  |  |  |  |  |
Global intangible low-taxed income tax | — |  | — |  |  | 309 |  | (1.4) |  |  | 285 |  | 2.0 |
Tax credits |  |  |  |  |  |  |  |
Research and development tax credits | (1,010) |  | 1.0 |  |  | (2,489) |  | 11.0 |  |  | (3,893) |  | (26.6) |
Changes in valuation allowance | — |  | — |  |  | 434 |  | (1.9) |  |  | — |  | — |
Nontaxable or nondeductible items |  |  |  |  |  |  |  |
Stock-based compensation | 1,629 |  | (1.7) |  |  | 7,086 |  | (31.4) |  |  | 4,207 |  | 28.8 |
Bank owned life insurance income | (1,314) |  | 1.4 |  |  | (579) |  | 2.6 |  |  | (612) |  | (4.2) |
Bank owned life insurance surrender | — |  | — |  |  | 2,253 |  | (10.0) |  |  | — |  | — |
Nondeductible transaction related costs | 875 |  | (0.9) |  |  | — |  | — |  |  | — |  | — |
Nondeductible penalties | — |  | — |  |  | 5,056 |  | (22.4) |  |  | 4,261 |  | 29.1 |
IRC 162(m) limitation | 413 |  | (0.4) |  |  | (2,856) |  | 12.7 |  |  | 55 |  | 0.4 |
Other | 72 |  | (0.1) |  |  | 97 |  | (0.5) |  |  | 73 |  | 0.5 |
Changes in unrecognized tax benefits | (1,928) |  | 2.0 |  |  | 255 |  | (1.1) |  |  | 658 |  | 4.5 |
Other adjustments |  |  |  |  |  |  |  |
IRS examination settlement | 3,016 |  | (3.1) |  |  | — |  | — |  |  | — |  | — |
Expiration of tax attributes | 430 |  | (0.4) |  |  | — |  | — |  |  | — |  | — |
Other | 252 |  | (0.3) |  |  | — |  | — |  |  | (10) |  | (0.1) |
Effective tax rate | $ | 1,594 |  | (1.6) | % |  | $ | 4,163 |  | (18.5) | % |  | $ | 7,911 |  | 54.1 | %
* | State taxes in California, Florida, Pennsylvania, Georgia, Alabama, and Louisiana made up the majority (greater than 50 percent) of the tax effect in this category.
The effective tax rate for the year ended December 31, 2025 and 2024 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, research and development tax credits, stock-based compensation, nondeductible transaction related costs, nondeductible penalties, cash surrender value growth in bank owned life insurance policies, the IRC 162(m) limitation on the deductibility of executive compensation, and the impact of our examination settlement with the IRS. The net increase in the effective tax rate for the year ended December 31, 2025 as compared to the prior year ended December 31, 2024 is primarily due to an increase of $3.3 million in the amount of compensation expense subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $1.5 million in research and development tax credits, an increase of $3.4 million in the valuation allowance on the deferred tax assets of our China subsidiary, an increase of $0.9 million in nondeductible transaction related costs, an increase of $3.0 million from our examination settlement with the IRS, and an increase of $15.5 million in state income tax expense, net of Note 14—Income Taxes (continued) federal benefits, primarily resulting from an increase of $17.7 million in the valuation allowance on state deferred tax assets related to state business credits and certain state net operating loss carryforwards. These increases were partially offset by a decrease of $5.5 million in the expense related to tax shortfalls from stock-based compensation, a decrease of $5.1 million in tax expense from nondeductible penalties primarily associated with the civil money penalty incurred in 2024 for our Consent Order from the Federal Reserve Board, an increase of $0.7 million in the cash surrender value of our banked owned life insurances policies, a decrease of $2.2 million in the reserve on our unrecognized tax benefits, and a decrease of $2.3 million related to our bank owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our existing bank owned life insurance policies completed in 2024. We have made a policy election to account for Global Intangible Low-Taxed Income ("GILTI") in the year the GILTI tax is incurred. For the year ended December 31, 2025, the provision for GILTI tax expense was not material to our financial statements. On July 4, 2025, H.R. 1, commonly referred to as the “One Big Beautiful Bill Act" (“OBBBA”) was signed into law, enacting significant changes to the U.S. federal tax code with various effective dates from 2025 to 2027. The OBBBA introduced several significant provisions impacting us, including an elective deduction for domestic research expenditures and reinstatement of elective 100% first year bonus depreciation. These provisions of the OBBBA primarily affected the timing and the mix of current versus deferred income tax expense, and were not material to total income tax expense for the year ended December 31, 2025. The components of total income taxes paid, net of refunds, by jurisdiction are as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Federal | $ | 3,515 |  |  | $ | 9,807 |  |  | $ | 19,344 |
States |  |  |  |  |
Arkansas | 244 |  |  | ** |  | **
Florida | 195 |  |  | ** |  | **
Georgia | 117 |  |  | ** |  | 391 |
Indiana | 149 |  |  | ** |  | **
Illinois | ** |  | 210 |  |  | 504 |
Kansas | 207 |  |  | ** |  | **
Kentucky | ** |  | 256 |  |  | **
Louisiana | ** |  | 542 |  |  | **
Maryland | 253 |  |  | ** |  | **
Missouri | ** |  | 228 |  |  | **
New York | ** |  | ** |  | 453 |
Pennsylvania | 130 |  |  | 195 |  |  | 446 |
South Carolina | ** |  | 343 |  |  | **
Utah | ** |  | ** |  | 392 |
All other states | 727 |  |  | 1,466 |  |  | 2,015 |
Foreign |  |  |  |  |
China | 560 |  |  | 543 |  |  | 806 |
Total income taxes paid, net of amounts refunded | $ | 6,097 |  |  | $ | 13,590 |  |  | $ | 24,351 |
**Jurisdiction did not exceed the 5% threshold for the period presented. |  |  |  |  |
Note 14—Income Taxes (continued) The tax effects of temporary difference that give rise to significant portions of our deferred tax assets and liabilities were as follows:
| December 31,
| 2025 |  | 2024
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 83,343 |  |  | $ | 8,424 |
Stock-based compensation | 8,264 |  |  | 8,370 |
Reserve for overdrawn accounts | 7,082 |  |  | 6,736 |
Accrued liabilities | 7,979 |  |  | 5,051 |
Lease liabilities | 481 |  |  | 1,895 |
Internal-use software costs | — |  |  | 7,768 |
Tax credit carryforwards | 14,952 |  |  | 13,296 |
Unrealized loss on available-for-sale securities | — |  |  | 91,583 |
Equity method investments | 21,327 |  |  | 3,632 |
Other | 2,090 |  |  | 2,208 |
Unrealized loss on equity securities | — |  |  | 628 |
Capital loss carryforwards | 625 |  |  | 13 |
Gross deferred tax assets | 146,143 |  |  | 149,604 |
Valuation allowance | (21,597) |  |  | (519) |
Total deferred tax assets | $ | 124,546 |  |  | $ | 149,085 |
Deferred tax liabilities: |  |  |
Internal-use software costs | $ | 5,790 |  |  | $ | — |
Property and equipment, net | 1,053 |  |  | 1,274 |
Deferred expenses | 197 |  |  | 312 |
Intangible assets | 25,055 |  |  | 21,335 |
Lease right-of-use assets | 263 |  |  | 1,759 |
Total deferred tax liabilities | 32,358 |  |  | 24,680 |
Net deferred tax assets | $ | 92,188 |  |  | $ | 124,405 |
We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2025, we provided a valuation allowance against our state business credits, certain state net operating loss carryforwards, a portion of our capital loss carryforwards, and the deferred tax assets of our China subsidiary as we believe it is more-likely-than-not that the tax benefits related to these items will not be realized. As of December 31, 2024, we provided a valuation allowance against a portion of our unrealized loss on equity securities as we believe it is more-likely-than-not that the tax benefits related to this portion of the loss will not be realized. We are subject to examination by the IRS, and various state tax authorities. We remain subject to examination of our federal income tax returns for the years ended December 31, 2022 through 2024. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates that the returns were filed. During the year ended December 31, 2025, we resolved an examination with the IRS related to our 2017 U.S. federal income tax year, which resulted in an adjustment to current taxes as shown in the effective tax rate table above. Note 14—Income Taxes (continued) As of December 31, 2025, we had federal net operating loss carryforwards of approximately $304.9 million, state net operating loss carryforwards of approximately $309.1 million, and capital loss carryforwards of approximately $2.5 million which will be available to offset future income. In regard to the federal net operating loss carryforwards, $9.0 million will expire between 2030 and 2034 and are subject to an annual IRC Section 382 limitation which restricts their utilization against taxable income in future periods, while the remaining balance of approximately $294.0 million does not expire and carries forward indefinitely. During the year ended December 31, 2025, certain federal net operating loss carryforwards generated before the Tax Cuts and Jobs Act expired prior to utilization. Because no valuation allowance had been recorded against the related deferred tax asset, the expiration resulted in additional income tax expense in the period. In regard to the state net operating loss carryforwards, approximately $192.5 million will expire between 2028 and 2045, while the remaining balance of approximately $116.6 million, does not expire and carries forward indefinitely. The capital loss carryforwards will expire in 2030. In addition, we have federal business tax credits of approximately $1.6 million that can be carried forward indefinitely and we have state business tax credits of approximately $24.4 million that can be carried forward indefinitely. As of December 31, 2025 and 2024, we had a liability of $11.4 million and $12.5 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Beginning balance | $ | 12,541 |  |  | $ | 12,109 |  |  | $ | 11,178 |
Increases related to positions taken during prior years | — |  |  | 27 |  |  | 543 |
Increases related to positions taken during the current year | 966 |  |  | 1,339 |  |  | 1,431 |
Decreases related to positions taken during prior years | (245) |  |  | (44) |  |  | — |
Decreases related to positions settled with tax authorities | (511) |  |  | (86) |  |  | (90) |
Decreases due to a lapse of applicable statute of limitations | (1,328) |  |  | (804) |  |  | (953) |
Ending balance | $ | 11,423 |  |  | $ | 12,541 |  |  | $ | 12,109 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ | 11,053 |  |  | $ | 11,999 |  |  | $ | 11,611 |
We recognized accrued interest and penalties related to unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023, of approximately $1.2 million, $1.6 million and $1.2 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration