INCOME TAXES |
3 Months Ended |
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Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Beginning with the three months ended March 31, 2026, the Company’s tax provision for interim periods was determined using a discrete effective tax rate method, as allowed by ASC Topic 740-270, Income Taxes, Interim Reporting. The Company’s tax provision for interim periods was previously determined using an estimated annual effective tax rate which was adjusted for discrete items occurring during the periods presented. The Company determined that due to the sensitivity of the estimated annual effective tax rate to changes in withholding taxes, the use of the historical method would not provide a reliable estimate for the three months ended March 31, 2026. The Company’s effective tax rate was 39.5% and (3.4)% for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective tax rate for the $3.7 million income tax benefit for the three months ended March 31, 2026 varied from the statutory tax rate primarily due to the partial valuation allowance release in connection with the Cycuity acquisition and foreign tax rate differentials. The effective tax rate for the $0.3 million income tax expense for the three months ended March 31, 2025 varied from the statutory tax rate due to the geographic mix of worldwide earnings which are taxed at different rates and the impact of losses in jurisdictions with full valuation allowances. The Company’s management continuously evaluates the need for a valuation allowance and, as of March 31, 2026, concluded that a full valuation allowance on its federal, state, and certain foreign jurisdictions deferred tax assets was still appropriate.
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