v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Loss Before Income Taxes
The components of loss before income taxes were as follows (in thousands):
Year Ended December 31,
202520242023
Domestic$(334,547)$(357,558)$(428,346)
Foreign33,859 22,897 21,672 
Loss before income taxes$(300,688)$(334,661)$(406,674)
Schedule of Components of (Benefit from) Provision for Income Taxes
The components of (benefit from) provision for income taxes were as follows (in thousands):
Year Ended December 31,
202520242023
Current
Federal$(671)$646 $— 
State200 536 371 
Foreign13,757 9,938 33,812 
Total13,286 11,120 34,183 
Deferred
Federal20 (807)2 
State5 (164)1 
Foreign(18,724)255 1,886 
Total(18,699)(716)1,889 
(Benefit from) provision for income taxes$(5,413)$10,404 $36,072 
Schedule of Reconciliation of Income Tax Benefit Activity
The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows (in thousands, except percentages):
Year Ended December 31, 2025
Loss before income taxes$(300,688)
U.S. federal statutory tax rate
(63,145)21.0 %
State and local income taxes, net of federal income tax effect(1)
172 (0.1)
Foreign tax effects
United Kingdom
Change in valuation allowance
(18,006)6.0 
Other
(1,676)0.6 
Other foreign jurisdictions
7,956 (2.7)
Tax credits
Research and development credits
(12,055)4.0 
Change in valuation allowance
59,899 (19.9)
Nontaxable or nondeductible items
Stock-based compensation expense
13,624 (4.5)
Acquisition-related costs
6,260 (2.1)
Other
1,558 (0.5)
Effective tax rate
$(5,413)1.8 %
(1) The state that contributes to the majority (greater than 50%) of the tax effect in this category is Texas.
The reconciliation of the income tax benefit computed at the federal statutory tax rate to the Company’s provision for income taxes was as follows (in thousands):
Year Ended December 31,
20242023
Income tax benefit computed at federal statutory rate$(70,279)$(85,401)
Foreign rate differential5,539 2,107 
Stock-based compensation expense4,897 88 
Change in valuation allowance69,814 97,923 
Research and development credits(17,895)(13,049)
Intra-group transfer of acquired intellectual property— 26,358 
BEAT waiver election13,125 — 
Non-deductible expenses5,662 4,495 
Other(459)3,551 
Provision for income taxes$10,404 $36,072 
Schedule of Income Taxes Paid, Net of Refunds Received
The income taxes paid by the Company are as follows (in thousands):
Year Ended December 31, 2025
Federal
$— 
State
909 
Foreign
Germany
3,844 
India
3,611 
Singapore
1,764 
Saudi Arabia
881 
Other
4,702 
Total foreign income taxes paid
14,802 
Total income taxes paid
$15,711 
Components of Net Deferred Tax Balance
The significant components of net deferred tax balances were as follows (in thousands):
December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards$394,935 $356,996 
Capitalized research and development costs204,136 187,955 
Tax credit carryforwards97,595 87,616 
Intangible assets37,633 37,729 
Stock-based compensation expense17,746 26,314 
Accruals and reserves7,119 13,465 
Other20,960 12,345 
Total deferred tax assets780,124 722,420 
Less: Valuation allowance(706,349)(671,718)
Deferred tax assets, net of valuation allowance73,775 50,702 
Deferred tax liabilities:
Deferred contract acquisition costs(30,320)(28,152)
Property and equipment(20,589)(17,912)
Other(5,618)(6,090)
Total deferred tax liabilities(56,527)(52,154)
Net deferred tax assets (liabilities)$17,248 $(1,452)
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances of total unrecognized tax benefits is as follows (in thousands):
Year Ended December 31,
202520242023
Beginning balance$38,118 $27,309 $18,914 
Gross increase for prior year tax positions36 280 439 
Gross decrease for prior year tax positions(1,651)(252)(5)
Gross increase for current year tax positions7,833 10,781 7,961 
Ending balance$44,336 $38,118 $27,309