XML 29 R18.htm IDEA: XBRL DOCUMENT v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table summarizes our benefit from income taxes and our effective tax rates for the periods presented (in thousands, except effective tax rate):
Three Months Ended
June 30, 		Six Months Ended
June 30,
2025202420252024
Loss before income taxes$(24,052)$(28,473)$(20,326)$(46,802)
Benefit from income taxes(6,654)(505)(4,878)(1,850)
Effective tax rate27.7 %1.8 %24.0 %4.0 %

For the three and six months ended June 30, 2025 we calculated our benefit from income taxes by applying an estimate of the annual effective tax rate to loss before income taxes for the reporting period. For the three and six months ended June 30, 2024 we applied the actual effective tax rate, which reflects the actual taxes attributable to year-to-date losses, as allowed by ASC 740-270 “Income Taxes, Interim Reporting.” We determined that since minor changes in estimated income or loss for 2024 would result in significant changes in the estimated annual effective tax rate, the actual effective tax rate method would provide a more reliable estimate for the three and six months ended June 30, 2024.

For the three and six months ended June 30, 2025, we recorded a benefit from income taxes of $6.7 million and $4.9 million, respectively, representing an effective tax rate of 27.7% and 24.0%, respectively, which was higher than the statutory federal tax rate primarily due to state taxes, nondeductible stock-based compensation and lobbying expenses, partially offset by research and development credits and discrete adjustments. For the three and six months ended June 30, 2024, we recognized a benefit from income taxes of $0.5 million and $1.9 million, respectively, representing an effective tax rate of 1.8% and 4.0%, respectively, which was lower than the statutory federal tax rate primarily due to changes in our valuation allowance, as well as stock-based compensation adjustments and non-deductible lobbying expenses, partially offset by research and development credits and state taxes.

Assessing the realizability of our deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. We forecast taxable income by considering available positive and negative evidence, including our history of operating income and losses and our financial plans and estimates that we use to manage the business. These assumptions require significant judgment about future taxable income. As a result, the amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. We continue to recognize our deferred tax assets as of June 30, 2025, as we believe it is more likely than not that such deferred tax assets will be realized, with the exception of certain net operating losses and credits for which there is increased uncertainty regarding our future taxable income and a lack of other sources of taxable income, which have a valuation allowance.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws to be recognized in the period in which the legislation is enacted, which is the date the legislation is signed into law. We are evaluating the impact of the OBBBA on our financial statements, but do not expect that it will have a material impact.