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Income Taxes | 3 Months Ended
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Mar. 31, 2026
Income Taxes [Abstract] |
Income Taxes | Note 13 — Income Taxes The Company’s effective income tax rate was 451.3% and 0.0% for the three months ended March 31, 2026 and 2025, respectively. The benefit from income taxes was $25.6 million for the three months ended March 31, 2026, compared to $0 for the three months ended March 31, 2025. Changes in the provision for (benefit from) income taxes for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 are a result of the Company releasing the valuation allowance against its deferred tax assets. As of March 31, 2026, the Company released its valuation allowance of $25.6 million following the execution of an amendment to its license agreement with GTI Core on March 31, 2026, which transitioned the Company’s licensing fees to a fixed annual structure. This amendment significantly reduces uncertainty around the Company’s future taxable income projections. Based on sustained projected book and taxable income over the near term, management concluded that sufficient positive evidence exists to determine that its deferred tax assets are more-likely-than-not realizable, and accordingly released the valuation allowance in full during the three months ended March 31, 2026, with the exception of certain state deferred tax assets for which apportionment factors do not support realization in the foreseeable future; the aggregate amount of such state deferred tax assets for which a valuation allowance is maintained is not material. As a result, the income tax benefit recognized for the three months ended March 31, 2026 is attributable to the release of the valuation allowance. Prior to this release, the Company maintained a full valuation allowance against its deferred tax assets due to uncertainty surrounding future income projections. The utilization of the Company’s net operating loss (“NOL”) carryforwards is subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended and similar provisions in various state jurisdictions due to historical change in ownership provisions (“Ownership Changes”). These limitations may reduce the amount of NOLs available in future periods and may result in the expiration of certain NOLs before they can be utilized. During the quarter ended June 30, 2025, the Company completed an analysis of Ownership Changes, which had not previously been performed. The analysis identified multiple historical ownership changes that significantly limit the utilization of federal and state NOLs through the date of the most recent change on November 5, 2024, subjecting them to a minimal annual limitation. NOLs generated after November 5, 2024 are not currently subject to this limitation and may be available to offset future taxable income, although any future ownership changes could impose additional limitations. On July 4, 2025, the One Big Beautiful Bill (“OBBA”) was enacted, introducing significant and wide-ranging changes to the U.S. tax system. The bill includes restoration of 100% accelerated tax depreciation on qualifying property including expansion to cover qualified production property. Another key point is the return to immediate expensing of domestic research and experimental expenditures (“R&E”) and accelerated tax deductions of R&E that were previously capitalized for large businesses. The legislation also reinstates EBITDA-based interest deduction for tax purposes. The impacts of the OBBA are reflected in our results for the quarter ended March 31, 2026, and there was no material impact to our income tax expense or effective tax rate.

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