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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Income Tax, Domestic And Foreign | The components of our income (loss) before income taxes were as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  |
United States | $ | 17,707 |  |  | $ | (31,972) |  |  |
Foreign | 1,605 |  |  | 1,377 |  |  |
Income (loss) before income taxes | $ | 19,312 |  |  | $ | (30,595) |  |  |
Schedule of Components Of Income Tax Provision (Benefit) | The federal, state and foreign income tax provision (benefit) is summarized as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  |
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  |
State | (177) |  |  | 68 |  |  |
Foreign | 254 |  |  | 221 |  |  |
Total current | 77 |  |  | 289 |  |  |
Deferred: |  |  |  |  |
Federal | 7,573 |  |  | (2,164) |  |  |
State | 1,605 |  |  | (506) |  |  |
Foreign | — |  |  | — |  |  |
Total deferred | 9,178 |  |  | (2,670) |  |  |
Provision for (benefit from) income taxes | $ | 9,255 |  |  | $ | (2,381) |  |  |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate of our provision for (benefit from) income taxes differs from the federal statutory rate as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  |
Statutory rate | 21.0 | % |  | 21.0 | % |  |
State income taxes, net of federal benefit | 4.4 |  |  | 2.8 |  |  |
Stock-based compensation shortfalls, net | 11.0 |  |  | (6.8) |  |  |
Non-deductible stock-based compensation | 7.4 |  |  | (4.7) |  |  |
Non-deductible lobbying expenses | 1.4 |  |  | (0.9) |  |  |
Research and development credits | (3.3) |  |  | 1.7 |  |  |
Changes in valuation allowance | 1.6 |  |  | (2.0) |  |  |
Foreign income tax and income inclusion | 0.8 |  |  | (1.5) |  |  |
Prior period adjustment | 3.4 |  |  | — |  |  |
Other permanent differences | 0.2 |  |  | (1.8) |  |  |
Effective tax rate | 47.9 | % |  | 7.8 | % |  |
Schedule of Deferred Tax Assets And Liabilities | The tax effects of significant items comprising our deferred taxes as of December 31, 2024 and 2023 were as follows (in thousands):
| December 31, 2024 |  | December 31, 2023
Deferred tax assets: |  |  |
Net operating losses | $ | 160,610 |  |  | $ | 154,607 |
Intangible assets | 25,242 |  |  | 21,232 |
Research and development credits carryovers | 13,466 |  |  | 12,493 |
Operating lease liabilities | 6,912 |  |  | 8,458 |
Accruals and reserves | 6,442 |  |  | 6,352 |
Fixed assets | 982 |  |  | 1,069 |
Stock-based compensation | 759 |  |  | 1,283 |
Other | 2,809 |  |  | 2,279 |
Total deferred tax assets | 217,222 |  |  | 207,773 |
Valuation allowance | (5,206) |  |  | (4,888) |
Total deferred tax assets net of valuation allowance | 212,016 |  |  | 202,885 |
Deferred tax liabilities: |  |  |
Commissions receivable | (248,038) |  |  | (227,242) |
Right-of-use assets | (2,848) |  |  | (5,330) |
Total deferred tax liabilities | (250,886) |  |  | (232,572) |
Net deferred tax liabilities | $ | (38,870) |  |  | $ | (29,687) |
Schedule of Changes in Valuation Allowance | The change in our valuation allowance is summarized as follows for the years ended (in thousands):
Deferred Tax Assets - Valuation Allowance |  | Balance at beginning of year |  | Provision for income taxes |  | Write-offs and Deductions |  | Balance at end of year
December 31, 2024 |  | $ | 4,888 |  |  | $ | 361 |  |  | $ | (43) |  |  | $ | 5,206 |
December 31, 2023 |  | 4,287 |  |  | 643 |  |  | (42) |  |  | 4,888 |
Schedule of Operating Loss Carryforwards | The net operating loss and tax credit carryforwards as of December 31, 2024 are summarized as follows (in thousands):
|  | Amount |  | Expires
Net operating losses, federal (with expiration) |  | $ | 39,166 |  |  | 2034-2037
Net operating losses, federal (without expiration) |  | 608,904 |  |  | Indefinite
Net operating losses, state (with expiration) |  | 433,374 |  |  | 2025-2044
Tax credits, federal |  | 12,346 |  |  | 2025-2044
Tax credits, state |  | 12,854 |  |  | n/a
Schedule of Tax Credit Carryforwards | The net operating loss and tax credit carryforwards as of December 31, 2024 are summarized as follows (in thousands):
|  | Amount |  | Expires
Net operating losses, federal (with expiration) |  | $ | 39,166 |  |  | 2034-2037
Net operating losses, federal (without expiration) |  | 608,904 |  |  | Indefinite
Net operating losses, state (with expiration) |  | 433,374 |  |  | 2025-2044
Tax credits, federal |  | 12,346 |  |  | 2025-2044
Tax credits, state |  | 12,854 |  |  | n/a
Schedule Of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  |
Beginning balance | $ | 10,639 |  |  | $ | 9,875 |  |  |
Reductions for tax positions of prior years | (363) |  |  | — |  |  |
Lapse of statute of limitations | (91) |  |  | (36) |  |  |
Additions based on tax positions related to the current year | 948 |  |  | 800 |  |  |
Ending balance | $ | 11,133 |  |  | $ | 10,639 |  |  |

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