Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) Before Provision for Income Taxes |
Income (loss) before provision for income taxes was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
United States |
|
$ |
9,496 |
|
|
$ |
(34,540 |
) |
|
$ |
(211,528 |
) |
Foreign |
|
|
59,967 |
|
|
|
63,217 |
|
|
|
60,953 |
|
Total |
|
$ |
69,463 |
|
|
$ |
28,677 |
|
|
$ |
(150,575 |
) |
|
| Components of Income Tax Provision |
The provision for income taxes consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Current income tax expense |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(4,348 |
) |
|
$ |
(7,631 |
) |
|
$ |
(1,162 |
) |
State |
|
|
(1,406 |
) |
|
|
(1,640 |
) |
|
|
(803 |
) |
Foreign |
|
|
(17,800 |
) |
|
|
(12,088 |
) |
|
|
(11,420 |
) |
Total current income tax expense |
|
|
(23,554 |
) |
|
$ |
(21,359 |
) |
|
$ |
(13,385 |
) |
Deferred income tax (expense) benefit |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(829 |
) |
|
|
(337 |
) |
|
|
— |
|
State |
|
|
(777 |
) |
|
|
(47 |
) |
|
|
— |
|
Foreign |
|
|
1,608 |
|
|
|
(2,306 |
) |
|
|
(550 |
) |
Total deferred income tax benefit (expense) |
|
|
2 |
|
|
|
(2,690 |
) |
|
$ |
(550 |
) |
Total income tax expense |
|
$ |
(23,552 |
) |
|
$ |
(24,049 |
) |
|
$ |
(13,935 |
) |
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
|
(in thousands) |
|
Net income taxes paid |
|
|
|
Federal |
|
$ |
2,407 |
|
State |
|
|
2,493 |
|
Australia |
|
|
2,392 |
|
Belgium |
|
|
1,793 |
|
Colombia |
|
|
1,323 |
|
France |
|
|
1,631 |
|
Germany |
|
|
2,696 |
|
Japan |
|
|
1,653 |
|
United Kingdom |
|
|
1,347 |
|
Other foreign |
|
|
1,576 |
|
Total income taxes paid (net of refunds received) |
|
$ |
19,311 |
|
|
|
|
|
|
| Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes |
The following reconciles the differences between income taxes computed at the federal statutory rate of 21% and the provision for income taxes for 2025:
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|
|
|
(in thousands) |
|
% |
|
U.S. Federal statutory tax rate |
|
$ |
(14,588 |
) |
|
(21 |
%) |
U.S. State and local income tax, net of federal (national) income tax effect (1) |
|
|
1,082 |
|
|
2 |
|
Foreign tax effects |
|
|
|
|
|
Brazil |
|
|
(1,145 |
) |
|
(2 |
) |
Canada |
|
|
(1,690 |
) |
|
(2 |
) |
Colombia |
|
|
(888 |
) |
|
(1 |
) |
France |
|
|
(1,569 |
) |
|
(2 |
) |
Germany |
|
|
(1,046 |
) |
|
(2 |
) |
Ireland |
|
|
|
|
|
Statutory tax rate difference between Ireland and United States |
|
|
1,830 |
|
|
3 |
|
Non-taxable items |
|
|
2,580 |
|
|
4 |
|
Other |
|
|
(188 |
) |
|
(0 |
) |
Singapore |
|
|
(866 |
) |
|
(1 |
) |
United Kingdom |
|
|
(1,172 |
) |
|
(2 |
) |
Other foreign jurisdictions |
|
|
(2,866 |
) |
|
(4 |
) |
Effect of cross-border tax laws |
|
|
|
|
|
Foreign tax credits |
|
|
2,996 |
|
|
4 |
|
Tax credits |
|
|
|
|
|
Research and development credits |
|
|
41,859 |
|
|
60 |
|
Changes in valuation allowances |
|
|
(37,148 |
) |
|
(53 |
) |
Non-taxable or non-deductible items |
|
|
|
|
|
Executive compensation limit |
|
|
(8,263 |
) |
|
(12 |
) |
Stock-based compensation |
|
|
15,240 |
|
|
22 |
|
Transaction costs |
|
|
(5,332 |
) |
|
(8 |
) |
Other |
|
|
(1,184 |
) |
|
(2 |
) |
Changes in unrecognized tax benefits |
|
|
(12,554 |
) |
|
(18 |
) |
Other adjustments |
|
|
1,360 |
|
|
2 |
|
Effective tax rate |
|
$ |
(23,552 |
) |
|
(34 |
%) |
(1) State taxes in Pennsylvania, New York, New Hampshire, New York City, and Texas made up the majority (greater than 50%) of the tax effect in this category. The following reconciles the differences between income taxes computed at the federal statutory rate of 21% and the provision for income taxes for 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
Expected income tax (expense) benefit at the federal statutory rate |
|
$ |
(6,123 |
) |
|
$ |
37,845 |
|
State taxes net of federal benefit |
|
|
732 |
|
|
|
9,131 |
|
Stock-based compensation |
|
|
31,010 |
|
|
|
7,741 |
|
Executive compensation limitation |
|
|
(10,511 |
) |
|
|
(4,151 |
) |
Difference in foreign tax rates |
|
|
(2,499 |
) |
|
|
(2,614 |
) |
Non-deductible acquisition costs |
|
|
(1,447 |
) |
|
|
— |
|
U.S. tax credits |
|
|
63,124 |
|
|
|
45,274 |
|
Foreign withholding taxes |
|
|
(2,044 |
) |
|
|
(1,449 |
) |
Change in valuation allowance |
|
|
(99,229 |
) |
|
|
(105,181 |
) |
Non research and development tax reserves |
|
|
(4,276 |
) |
|
|
— |
|
Foreign derived intangible income |
|
|
4,872 |
|
|
|
— |
|
Other U.S. and foreign permanent differences |
|
|
2,342 |
|
|
|
(531 |
) |
Income tax expense |
|
$ |
(24,049 |
) |
|
$ |
(13,935 |
) |
|
| Components of the Company's Deferred Tax Assets and Liabilities |
Significant components of the Company’s deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
285,126 |
|
|
$ |
178,424 |
|
Research and investment credits |
|
|
224,226 |
|
|
|
181,411 |
|
Accruals and reserves |
|
|
32,170 |
|
|
|
25,148 |
|
Lease liability |
|
|
47,711 |
|
|
|
54,028 |
|
Depreciation |
|
|
1,454 |
|
|
|
552 |
|
Capitalized software development |
|
|
185,582 |
|
|
|
277,932 |
|
Stock-based compensation |
|
|
27,977 |
|
|
|
23,145 |
|
Other assets |
|
|
3,992 |
|
|
|
— |
|
Total deferred tax assets |
|
|
808,238 |
|
|
|
740,640 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Intangible assets |
|
|
(5,856 |
) |
|
|
(6,635 |
) |
Convertible debt |
|
|
— |
|
|
|
(56 |
) |
Capitalized costs |
|
|
(69,778 |
) |
|
|
(51,150 |
) |
Right of use assets |
|
|
(35,839 |
) |
|
|
(38,871 |
) |
Depreciation |
|
|
(1,365 |
) |
|
|
(1,276 |
) |
Other liabilities |
|
|
(5,325 |
) |
|
|
(7,446 |
) |
Total deferred tax liabilities |
|
|
(118,163 |
) |
|
|
(105,434 |
) |
Valuation allowance |
|
|
(694,085 |
) |
|
|
(637,609 |
) |
Net deferred tax liabilities |
|
$ |
(4,010 |
) |
|
$ |
(2,403 |
) |
|
| Summary of Valuation Allowance on Deferred Tax Assets |
The following summarizes activity related to valuation allowances on deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Valuation allowance—beginning of the year |
|
$ |
637,609 |
|
|
$ |
536,311 |
|
|
$ |
408,794 |
|
Changes to existing valuation allowances—additions to costs
and expenses |
|
|
50,249 |
|
|
|
99,229 |
|
|
|
105,181 |
|
Changes to existing valuation allowances—additions to other
accounts (primarily goodwill) |
|
|
6,227 |
|
|
|
2,069 |
|
|
|
22,336 |
|
Valuation allowance—end of period |
|
$ |
694,085 |
|
|
$ |
637,609 |
|
|
$ |
536,311 |
|
|
| Summary of Activity Related to Unrecognized Tax Benefits |
The following summarizes activity related to unrecognized tax benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Unrecognized benefit—beginning of the year |
|
$ |
38,327 |
|
|
$ |
20,469 |
|
|
$ |
16,888 |
|
Gross increases—current period positions |
|
|
14,239 |
|
|
|
13,974 |
|
|
|
8,071 |
|
Gross increases—current period business acquisitions |
|
|
— |
|
|
|
— |
|
|
|
1,381 |
|
Gross increase (decrease)—prior period positions |
|
|
612 |
|
|
|
3,884 |
|
|
|
(5,871 |
) |
Unrecognized benefit—end of period |
|
$ |
53,178 |
|
|
$ |
38,327 |
|
|
$ |
20,469 |
|
|