Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the three months ended March 31, 2026, the Company recorded a tax expense of $0.1 million compared to a tax expense of $0.1 million for the three months ended March 31, 2025. For the three months ended March 31, 2026 and 2025, the effective tax rates were (1.8)% and (0.8)%, respectively. The tax expense for the three months ended March 31, 2026, primarily reflects income taxes in foreign jurisdictions where the Company generates taxable income. The effective tax rate differs from the U.S federal statutory income tax rate of 21.0% primarily due to the impact of the Company’s valuation allowance, state taxes, and permanent differences. The Company’s U.S. operations continue to generate losses and, as such, the Company maintains a valuation allowance against substantially all U.S. deferred tax assets. While the Company believes its current valuation allowance is appropriate, the Company assesses the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on all available positive and negative evidence, including past results of operations, forecasted earnings, tax planning strategies, and all sources of future taxable income. The partial valuation allowance release recorded during 2025 related to deferred tax liabilities established in connection with the Vidurama acquisition remains unchanged, and no additional releases were recorded during the three months ended March 31, 2026. The Company had no material uncertain tax positions and no significant changes to its unrecognized tax benefits during the three months ended March 31, 2026. No interest or penalties related to uncertain tax positions were accrued or recognized in income tax expense for the period.
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