INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) before income taxes are as follows (in thousands):


	December 31,
	2025		2024		2023
Domestic (Israel)	$	(74,582)	$	(8,480)	$	(53,292)
Foreign	126,207		(412,642)		(127,876)
Total income (loss) before income taxes	$	51,625	$	(421,122)	$	(181,168)

Schedule of Components of Income Tax Expense (Benefit)

The income tax (benefit) expense consists of (in thousands):


	December 31,
	2025		2024		2023
Current:
Domestic	$	(57)	$	(247)	$	593
Foreign	(19,499)		24,741		16,601
Total current	(19,556)		24,494		17,194
Deferred:
Domestic	(189)		82		(461)
Foreign	—		—		(1,162)
Total deferred	(189)		82		(1,623)
Total income tax provision	$	(19,745)	$	24,576	$	15,571

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the reconciliation between Company’s statutory tax and effective income taxes the for the year ended December 31, 2025 after the adoption of ASU 2023-09 (in thousands):


	December 31, 2025
	Amount		Percent

Theoretical income taxes at Israel statutory rate	$	11,874	23	%
Foreign tax effects:
United States:
State and local income taxes, net of federal income tax effect	(3,158)		(6)	%
Statutory tax rate difference	(3,081)		(6)	%
Interest expense adjustments	(7,183)		(14)	%
Base Erosion and Anti-Abuse Tax (BEAT)	6,255		12	%
Change in valuation allowances	(25,404)		(49)	%
Non-deductible compensations	3,294		6	%
Contingent consideration	(1,241)		(2)	%
Other	(247)		—	%
Cayman Islands	2,814		5	%
Other foreign jurisdictions	16		—	%
Change in valuation allowances	6,420		12	%
(Nontaxable) or nondeductible items:
Share-based payment awards	5,690		11	%
Statutory tax rate difference (Preferred technological enterprise)	4,874		9	%
Changes in unrecognized tax benefits	(20,592)		(40)	%
Other adjustments	(76)		—	%
Effective income tax benefit	$	(19,745)	NM*

The following tables presents the reconciliation between Company’s statutory tax and effective income taxes the years ended December 31, 2024 and 2023 prior to the adoption of ASU 2023-09 (in thousands):


	December 31,
	2024			2023
Loss before income taxes	$	(421,122)		$	(181,168)
Israel statutory income tax rate	23		%	23		%
Theoretical income taxes at statutory rate	(96,858)			(41,669)
Preferred technological enterprise benefit	949			5,891
Deferred tax assets for which valuation allowance was provided	82,602			16,067
Permanent differences	10,033			7,643
Uncertain tax positions	9,035			13,500
Prior year taxes	(1,416)			(2,312)
Subsidiaries taxed at a different tax rate	17,594			16,443
Changes in valuation allowance	—			(1,162)
Other adjustments	2,637			1,170
Effective income tax	$	24,576		$	15,571
Effective tax rate	NM*			NM*

*NM = Not meaningful.

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2025 and 2024, deferred tax assets and deferred tax liabilities presented in the consolidated balance sheets are comprised as follows (in thousands):


	December 31,
	2025		2024
Carry forward tax losses	$	19,854	$	13,912
Research and development cost	5,657		8,930
Compensations and benefits	7,218		9,748
Operating lease liability	4,847		5,525
Investments credit loss	64,327		96,324
Interest expense (Section 163j)	—		8,082
Other comprehensive income	10,911		2,715
Capital loss	1,262		948
Equity method and other investments	3,228		1,062
Other	3,837		983
Deferred tax assets before valuation allowance	121,141		148,229
Valuation allowance	111,648		140,020
Deferred tax assets	9,493		8,209

Intangible assets	(1,066)		(1,838)
Right-of-use assets	(4,305)		(5,401)
Capitalized research and development costs	(3,759)		—
Equity method and other investments	—		(904)
Property, equipment and software	(335)		(246)
Other	(28)		(9)
Deferred tax liabilities	(9,493)		(8,398)
Deferred tax liabilities, net	$	—	$	(189)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows (in thousands):


	December 31,
	2025		2024
Uncertain tax positions, beginning of the year	$	31,170	$	22,135
(Decrease) increase in tax positions for prior years	(25,724)		(13,001)
Increases related to current year tax positions	5,543		21,622
Revaluation	(411)		414
Uncertain tax positions, end of year	$	10,578	$	31,170

Schedule of Cash Income Taxes Paid (Net of Refunds)

The components of income taxes paid (net of refunds) for the year ended December 31, 2025 are as follows (in thousands):


	December 31, 2025
Domestic (Israel)	$	114
Foreign (U.S.)	2,381
Total	$	2,495