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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Taxes  
Income Taxes

10. Income Taxes

 

The Company’s effective tax rate was (31.6)% and 1.0% for the three and nine month periods ended September 30, 2025, respectively. The Company’s effective tax rate was 4.2% and 2.8% for the three and nine month periods ended September 30, 2024, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets and state minimum taxes in the United States. The effective tax rate is calculated by dividing the income tax provision (benefit) by the loss before income tax provision (benefit).

 

On July 4, 2025, the U.S. enacted H.R. 1 "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14", commonly referred to as the One Big Beautiful Bill (“H.R. 1”). The enactment of H.R. 1 did not result in a material impact on the Company’s tax position or consolidated financial statements.