v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of U.S. and Foreign Components of Loss Before Income Taxes
U.S. and foreign components of consolidated (loss) income before income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):
Year Ended December 31,
202520242023
United States$(35,120)$61,371 $(348,050)
Foreign(18,127)(36,021)16,346 
(Loss) income before income taxes$(53,247)$25,350 $(331,704)
Schedule of Components of Provision for Income Taxes
The (benefit from) provision for income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):
Year Ended December 31,
202520242023
Current (benefit) provision
Federal$852 $— $— 
State(4,481)10,438 3,762 
Foreign1,493 (5,996)7,239 
Total current$(2,136)$4,442 $11,001 
Deferred (benefit) provision
Federal(2,253,928)481 481 
State(631,787)427 (337)
Foreign(9,404)(2,784)(2,529)
Total deferred(2,895,119)(1,876)(2,385)
Total (benefit from) provision for income taxes$(2,897,255)$2,566 $8,616 
Schedule of Effective Tax Rate Reconciliation
The reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rate is as follows (in thousands, except for percentages):
Year Ended December 31,
2025
%$
Provision for income taxes at U.S. federal statutory rate
21.0 %$(11,182)
State income taxes, net of federal effect(1)
1,339.3 %(713,139)
Foreign tax effects
Canada
Statutory tax rate difference between Canada and U.S.
(1.5)%777 
Provincial tax impacts
3.8 %(2,002)
Other adjustments
2.5 %(1,339)
Germany
Statutory tax rate difference between Germany and U.S.
(1.8)%961 
Trade tax
5.1 %(2,728)
Other adjustments0.2 %(108)
Other foreign jurisdictions
0.5 %(262)
Change in valuation allowance
3,808.0 %(2,027,633)
Nontaxable or nondeductible items
Permanent tax adjustments
(4.9)%2,597 
Nondeductible expenses
(16.9)%8,984 
Stock-based compensation
19.7 %(10,478)
Executive compensation
(26.0)%13,864 
Nondeductible transaction costs
(6.7)%3,593 
Tax credits
Research and development
646.6 %(344,315)
Changes in unrecognized tax benefits
(347.7)%185,155 
Provision for income taxes5441.2 %$(2,897,255)
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(1)State taxes in California, New York, New York City, and Illinois made up the majority (greater than 50%) of the tax effect in this category.
The following table is a reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09:
Year Ended December 31,
20242023
Provision at federal statutory rate
21.0 %21.0 %
State, net of federal benefit
29.2 9.7 
Permanent tax adjustments
10.3 (1.1)
Nondeductible expenses
54.4 (8.3)
Stock-based compensation
(65.6)(15.1)
Executive compensation
63.0 (2.4)
Change in valuation allowance
(101.5)(2.5)
Impact of foreign operations
(4.7)(0.4)
Deferred adjustments
— (3.2)
Other adjustments
4.0 (0.3)
Effective income tax rate
10.1 %(2.6)%
Schedule of Cash Flow, Supplemental Disclosures
The amounts of income taxes paid (net of refunds received) by the Company are as follows (in thousands):
Year Ended December 31,
2025
Federal$— 
State and local
6,582 
Foreign679 
Income taxes, net of refunds
$7,261 
Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions (in thousands):
Year Ended December 31,
2025
State and Local
California$1,000 
Illinois1,158 
Cincinnati
(523)
Philadelphia
1,068 
Texas2,043 
Foreign
Canada(1,033)
Mexico849 
Ireland
773 
Spain
518 
Switzerland
(913)
Schedule of Deferred Tax Assets and Liabilities The significant components of the Company’s deferred tax assets and liabilities as of the periods indicated were as follows (in thousands):
December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards$2,254,164 $1,975,436 
Insurance reserves and accruals425,547 382,532 
Research tax credits406,978 — 
Stock-based compensation17,851 16,837 
Research capitalization202,235 288,464 
Accrued legal settlement/fees150,765 92,975 
Lease liability73,551 73,356 
Accrued and other liabilities31,378 47,233 
Capital losses7 64 
Other assets22,874 — 
Total deferred tax assets3,585,350 2,876,897 
Less: Valuation allowance(285,548)(2,690,489)
Deferred tax assets, net of valuation allowance3,299,802 186,408 
Deferred tax liabilities:
State income taxes(168,532)(132,126)
Operating lease right-of-use assets(66,416)(63,632)
Prepaid expenses(122,068)— 
Other liabilities(60,318)(427)
Total deferred tax liabilities(417,334)(196,185)
Net deferred tax assets (liabilities)$2,882,468 $(9,777)
Schedule of Rollforward of Valuation Allowance
A reconciliation of the valuation allowance is as follows (in thousands):
Year Ended December 31,
202520242023
Beginning balance$2,690,489 $2,715,841 $2,706,982 
Net changes in deferred tax assets and liabilities(2,404,941)(25,352)8,859 
Ending balance$285,548 $2,690,489 $2,715,841 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table reflects changes in gross unrecognized tax benefits (in thousands):
Year Ended December 31,
202520242023
Beginning balance$— $— $— 
Gross increases - current year tax positions8,036 — — 
Gross increases - prior year tax positions181,201 — — 
Ending balance$189,237 $— $— 
Schedule of Open Tax Years by Jurisdiction
As of December 31, 2025, the open tax years for our major tax jurisdictions are as follows:
JurisdictionTax Years
U.S. Federal2010-2025
U.S. States
2010-2025
Canada2021-2025
Germany2018-2025