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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The following are domestic and foreign components of the Company’s income (loss) before income taxes (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Domestic | $ | (31,096) |  |  | $ | (5,205) |  |  | $ | 67,643 |
Foreign | 478 |  |  | (1,292) |  |  | 2,907 |
Income (loss) before income taxes | $ | (30,618) |  |  | $ | (6,497) |  |  | $ | 70,550 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company's income tax expense are as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | 305 |  |  | $ | 17,461 |  |  | $ | 30,124 |
State and local | 1,940 |  |  | 3,448 |  |  | 8,498 |
Foreign | 1,974 |  |  | 1,250 |  |  | 801 |
Total current income tax expense | 4,219 |  |  | 22,159 |  |  | 39,423 |
Deferred: |  |  |  |  |
Federal | (1,561) |  |  | (15,054) |  |  | (14,866) |
State and local | (707) |  |  | (2,126) |  |  | (2,414) |
Foreign | 425 |  |  | 1,378 |  |  | (691) |
Total deferred income tax benefit | (1,843) |  |  | (15,802) |  |  | (17,971) |
Total income tax expense | $ | 2,376 |  |  | $ | 6,357 |  |  | $ | 21,452 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income taxes computed at the U.S. federal statutory tax rate of 21% to the income tax expense for the year ended December 31, 2025 subsequent to the adoption of ASU 2023-09 is as follows (in thousands): See Note 2 for further information on the Company’s prospective adoption of ASU 2023-09.
| Year Ended December 31,
| 2025
| $ |  | %
U.S. federal statutory income tax rate | $ | (6,435) |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect (1) | 113 |  |  | (0.4) |
Foreign tax effects |  |  |
Israel |  |  |
Tax audit adjustments | (357) |  |  | 1.2 |
Stock-based compensation | 1,140 |  |  | (3.7) |
Change in valuation allowance | 1,616 |  |  | (5.3) |
Other | 127 |  |  | (0.4) |
United Kingdom |  |  |
Deferred tax adjustment | 1,943 |  |  | (6.3) |
Change in valuation allowance | (1,943) |  |  | 6.3 |
Other | 154 |  |  | (0.5) |
Other foreign | 398 |  |  | (1.3) |
Effects of cross-border tax laws |  |  |
Foreign derived intangible income deduction | 398 |  |  | (1.3) |
Other | (19) |  |  | 0.1 |
Tax credits |  |  |
Research & development credits | (3,742) |  |  | 12.2 |
Non-taxable or non-deductible items |  |  |
Stock-based compensation | 3,859 |  |  | (12.6) |
Officers compensation limitation | 2,291 |  |  | (7.5) |
Other non-deductible expenses | 949 |  |  | (3.1) |
Changes in unrecognized tax benefits | 2,304 |  |  | (7.5) |
Other | (420) |  |  | 1.3 |
Income tax expense | $ | 2,376 |  |  | (7.8) | %
____________ (1) State taxes in California, Illinois, New Hampshire, New Jersey, and New York made up the majority (greater than 50%) of the tax effect in this category. A reconciliation of the income taxes computed at the U.S. federal statutory tax rate of 21% to the income tax expense for the years ended December 31, 2024 and 2023 prior to the adoption of ASU 2023-09, and as previously disclosed in prior years, is as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023
U.S. federal statutory income tax rate | $ | (1,380) |  |  | $ | 14,816 |
State and local income taxes, net of federal benefit | 1,669 |  |  | 5,002 |
Foreign derived intangible income deduction | (645) |  |  | (1,110) |
Foreign rate differential | (21) |  |  | (1,872) |
Stock-based compensation | 6,266 |  |  | 7,931 |
Officers compensation limitation | 1,322 |  |  | 2,356 |
Non-deductible expenses | 974 |  |  | 909 |
Tax credits | (6,635) |  |  | (9,189) |
Uncertain tax positions | 793 |  |  | 1,449 |
Change in valuation allowance | 3,519 |  |  | 2,282 |
Return to provision | (154) |  |  | (1,532) |
Other | 649 |  |  | 410 |
Income tax expense | $ | 6,357 |  |  | $ | 21,452 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  |
Deferred income tax assets: |  |  |  |  |
Net operating loss carryforwards | $ | 41,104 |  |  | $ | 2,659 |  |  |
Stock-based compensation | 2,772 |  |  | 3,517 |  |  |
Accrued expenses | 6,476 |  |  | 5,225 |  |  |
Tax credit carryforwards | 21,093 |  |  | 17,421 |  |  |
Capitalized development | 26,451 |  |  | 65,678 |  |  |
Operating lease liabilities | 3,298 |  |  | 2,281 |  |  |
Total deferred tax assets | 101,194 |  |  | 96,781 |  |  |
Less valuation allowance | (20,215) |  |  | (18,792) |  |  |
Net deferred tax assets | 80,979 |  |  | 77,989 |  |  |
Deferred tax liabilities: |  |  |  |  |
Property and equipment | (522) |  |  | (357) |  |  |
Operating lease right-of-use assets | (2,477) |  |  | (1,502) |  |  |
Intangible assets and goodwill | (1,226) |  |  | (1,337) |  |  |
Unremitted earnings of foreign subsidiaries | (1,260) |  |  | (1,047) |  |  |
Deferred commissions | (1,715) |  |  | (1,823) |  |  |
Other | (131) |  |  | (118) |  |  |
Total deferred tax liabilities | (7,331) |  |  | (6,184) |  |  |
Total net deferred tax assets | $ | 73,648 |  |  | $ | 71,805 |  |  |
Schedule of Valuation Allowance | The change in the valuation allowance was comprised of the following (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Valuation allowance, at beginning of year | $ | 18,792 |  |  | $ | 14,935 |  |  | $ | 12,748 |
Increase in valuation allowance recorded through earnings | 3,366 |  |  | 3,520 |  |  | 2,281 |
Decrease in valuation allowance recorded through earnings | (1,943) |  |  | — |  |  | — |
Increase in valuation allowance recorded through purchase accounting | — |  |  | 337 |  |  | — |
Decrease in valuation allowance recorded through other comprehensive income | — |  |  | — |  |  | (94) |
Valuation allowance, at end of year | $ | 20,215 |  |  | $ | 18,792 |  |  | $ | 14,935 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Unrecognized tax benefit, beginning of year: | $ | 26,787 |  |  | $ | 24,330 |  |  | $ | 17,077 |
Gross increases - tax positions in prior year | 563 |  |  | 1,075 |  |  | 3,912 |
Gross increases - tax positions in current year | 1,881 |  |  | 2,056 |  |  | 3,341 |
Gross decreases - tax positions in prior year | (666) |  |  | (674) |  |  | — |
Gross decreases - settlements in current year | (640) |  |  | — |  |  | — |
Unrecognized tax benefit, end of year | $ | 27,925 |  |  | $ | 26,787 |  |  | $ | 24,330 |

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