Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The following table presents our provision for income taxes (in thousands):


	Years Ended December 31,
	2025		2024		2023
Current income taxes:
Federal	$	372	$	(234)	$	(2,460)
State	257		(1,128)		(3,064)
Foreign	(2,560)		(4,021)		(33)
Total current provision for income taxes	(1,931)		(5,383)		(5,557)

Deferred income taxes:
Federal	—		(122,057)		(26,210)
State	—		(17,558)		(1,634)
Foreign	(1,348)		(3,704)		1,269
Total deferred provision for income taxes	(1,348)		(143,319)		(26,575)
Total provision for income taxes	$	(3,279)	$	(148,702)	$	(32,132)

Schedule of (Loss) Income before Provision for Income Taxes

The following table presents our (loss) income before provision for income taxes (in thousands):


	Years Ended December 31,
	2025		2024		2023
United States	$	(91,155)	$	(297,183)	$	61,152
Foreign	(8,987)		(391,183)		(10,840)
Total (loss) income before provision for income taxes	$	(100,142)	$	(688,366)	$	50,312

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the required disclosures subsequent to our adoption for the differences between our provision for income taxes as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate as a percentage and amount of (loss) income before provision for income taxes (in thousands, except percentages):


	Year Ended December 31, 2025
	Dollars		Percent
U.S. federal statutory tax rate	$	21,031	21.0	%
State and local income taxes, net of federal income tax effect(1)	304		0.3
Foreign tax effects
India
Withholding tax	(1,641)		(1.6)
United Kingdom
Change in valuation allowance	(3,391)		(3.4)
Other	(357)		(0.4)
Other foreign jurisdictions	(2,083)		(2.1)
Effect of changes in tax laws or rates enacted in the current period	—		—
Effect of cross-border tax laws
Foreign branch loss	3,934		3.9
Tax credits	—		—
Change in valuation allowance	(12,937)		(12.9)
Nontaxable or nondeductible Items
Share-based payment awards	(8,414)		(8.4)
Other	275		0.3
Change in unrecognized tax benefits	—		—
Other adjustments	—		—
Effective tax rate	$	(3,279)	(3.3)	%

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(1) State taxes in Texas made up the majority (greater than 50 percent) of the tax effect in this category.

The following table presents the required disclosures prior to our adoption of ASU 2023-09 and presents the differences between our provision for income taxes as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate as a percentage of (loss) income before provision for income taxes (in percentages):


	Years Ended December 31,
	2024		2023
Income tax at U.S. statutory rate	21.0	%	21.0	%
State, net of federal benefit	2.9		11.6
Taxes on foreign earnings	1.7		0.7
Share-based compensation	(2.5)		39.3
Non-deductible expenses	—		(2.5)
Effect of flow-through entities	12.5		—
Goodwill impairment	(17.1)		—
Tax credits	—		0.8
Change in valuation allowance	(40.1)		4.2
Settlement of unrecognized tax benefits	—		(8.0)
Foreign-derived intangible income	0.1		(5.2)

Other	(0.1)		2.0
Total	(21.6)	%	63.9	%

Schedule of Cash Paid for Income Taxes, Net of Refunds Received

The following table presents the required disclosures subsequent to our adoption of ASU 2023-09 for cash paid for income taxes, net of refunds received, by jurisdiction (in thousands):


	Year Ended December 31, 2025
Federal	$	—
State	95
Foreign
India	3,201
Spain	1,317
Other foreign jurisdictions	(24)
Total cash paid for income taxes, net of refunds	$	4,589

Schedule of Deferred Tax Assets and Liabilities

The following table presents a summary of our deferred tax assets and liabilities (in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Research and experimental expenditures capitalization	$	82,418	$	102,382
Net operating loss and credits carryforwards	112,376		80,413
Accrued expenses and reserves	31,973		25,039
Share-based compensation	455		3,414
Convertible senior notes	161		1,790
Goodwill	81,814		89,583
Property and equipment and intangible assets	26,193		15,947

Gross deferred tax assets	335,390		318,568
Valuation allowance	(325,401)		(307,985)
Total deferred tax assets	$	9,989	$	10,583

Deferred tax liabilities:


Other	$	(10,235)	$	(11,396)


Net deferred tax liability	$	(246)	$	(812)

Schedule of Reconciliation of Unrecognized Tax Benefits

The following table presents the reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits, excluding accrued interest and penalties (in thousands):


	Years Ended December 31,
	2025		2024		2023
Beginning balance	$	12,708	$	12,400	$	16,953
Increase in tax positions for prior years	—		13		—
Decrease in tax positions for prior years	(130)		—		(131)
Decrease in tax positions for prior year settlement	—		—		(4,703)

Increase in tax positions for current year	164		295		281

Ending balance	$	12,742	$	12,708	$	12,400