Income Taxes |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Effective Tax Rate The overall effective tax rate for the three months ended June 30, 2025 was 192.9%, significantly higher than the federal statutory rate, due to a shift to pre-tax book loss for the quarter. This shift magnifies the impact of permanent and discrete items, which in combination with a tax benefit for the three month period, results in a positive rate. In addition, the major drivers are a result of the favorable impacts of stock-based compensation and research and development (“R&D”) tax credits partially offset by executive compensation limitation under Internal Revenue Code (“IRC”) Section 162(m), and an increase in uncertain tax positions. The effective tax rate was favorably impacted by a $56.7 million tax benefit related to stock-based compensation for stock awards that vested during the three months ended June 30, 2025. By comparison, our overall effective tax rate for the three months ended June 30, 2024 was 19.4%. This rate differed from the federal statutory rate, due to the favorable impacts of stock-based compensation, R&D tax credits, and a net gain related to an investment transaction not recognized for tax purposes, partially offset by executive compensation limitation under IRC Section 162(m). The effective tax rate was favorably impacted by a $3.4 million tax benefit related to stock-based compensation for stock awards that vested during the three months ended June 30, 2024. Our overall effective tax rate for the six months ended June 30, 2025 was (78.5)%. This rate differs from the federal statutory rate, due to the favorable impacts of stock-based compensation and R&D tax credits, partially offset by executive compensation limitation under IRC Section 162(m), and an increase in uncertain tax positions. The effective tax rate was favorably impacted by a $68.8 million tax benefit related to stock-based compensation for stock awards that vested during the six months ended June 30, 2025. By comparison, our overall effective tax rate for the six months ended June 30, 2024 was 19.6%. This rate differed from the federal statutory rate, due to the favorable impact of stock-based compensation, R&D tax credits, and a net gain related to an investment transaction not recognized for tax purposes, partially offset by the executive compensation limitation under IRC Section 162(m). The effective tax rate was favorably impacted by a $7.5 million tax benefit related to stock-based compensation for stock awards that vested during the six months ended June 30, 2024. Deferred Tax Assets The change in deferred tax balances from $301.9 million as of December 31, 2024 to $354.7 million as of June 30, 2025, was primarily driven by an increase in deferred tax assets related to the capitalization of research and development costs under IRC Section 174. The overall increase was further impacted by a decrease in deferred tax liabilities due to reduced unrealized investment gains and the realization of certain previously unrealized investment gains. These increases were partially offset by the reversal of certain deferred tax assets through additional paid-in-capital, associated with the partial repurchase of our 2027 Notes.
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