v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) Before Income Taxes
The components of income (loss) before income taxes consisted of the following (in thousands):
 Years Ended December 31,
 202520242023
United States$66,520 $(125,670)$(699,114)
Foreign27,378 5,712 (316)
Income (loss) before income taxes$93,898 $(119,958)$(699,430)
Schedule of Income Tax (Benefit) Expense
The income tax expense consisted of the following (in thousands):
 Years Ended December 31,
 202520242023
Current:
Federal$(77)$5,445 $697 
State1,047 7,746 2,715 
Foreign7,545 7,667 5,448 
8,515 20,858 8,860 
Deferred:
Federal(5,002)233 233 
State(591)225 222 
Foreign2,615 (11,888)816 
(2,978)(11,430)1,271 
Total income tax expense$5,537 $9,428 $10,131 
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the year ended December 31, 2025 (amounts in thousands, except percentages):
 
Year Ended December 31, 2025
 
Amount
Percent
U.S. federal income tax at statutory tax rate$19,719 21.0 %
State and local income taxes, net of federal income tax effect(1)
(5,581)(5.9)
Foreign tax effects
United Kingdom1,481 1.6 
Other foreign jurisdictions2,571 2.7 
Effect of cross-border tax laws
U.S. taxation of foreign disregarded entities(1,378)(1.5)
Other(212)(0.2)
Tax credits
Research and development tax credit(21,368)(22.8)
Other8 — 
Changes in valuation allowance(14,264)(15.2)
Nontaxable or nondeductible items
Non-deductible compensation19,145 20.4 
Tax effects of stock-based compensation(8,801)(9.4)
Other2,510 2.7 
Worldwide changes in unrecognized tax benefits11,045 11.8 
Other adjustments662 0.7 
Total income tax expense and effective tax rate$5,537 5.9 %
(1) The state and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Connecticut, Georgia, New York, and New York City.
As disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the Company’s effective income tax rate differs from the statutory federal income tax rate as follows:
 Years Ended December 31,
 20242023
U.S. federal income tax at statutory rate21.0 %21.0 %
U.S. state and local income taxes, net of federal tax benefit(4.8)(0.4)
Change in valuation allowance(12.0)(23.6)
Research and development tax credit28.2 6.8 
Stock-based compensation(26.2)(2.8)
Meals and entertainment(1.0)(0.2)
Foreign-Derived Intangible Income Deduction1.8 0.3 
Foreign rate differential(0.5)— 
Section 162(m) limitation(11.1)(2.1)
Provision to return true-up0.2 0.1 
Change in unrecognized tax benefits9.4 — 
Discrete tax expense due to intellectual property transfer(10.7)— 
Other(2.2)(0.5)
Effective tax rate(7.9)%(1.4)%
Summary of Significant Components of Deferred Income Tax Assets and Liabilities
Significant components of the Company’s deferred income tax assets and liabilities consist of the following (in thousands):
 As of December 31,
 20252024
Deferred tax assets:
Net operating loss carryforwards$438,036 $376,122 
Reserves and accruals54,716 44,818 
Research and development credits286,163 258,201 
Operating lease liabilities146,897 148,126 
Stock-based compensation34,197 48,585 
Depreciation and amortization34,692 40,527 
Section 174 capitalization304,561 393,020 
Other7,359 9,170 
Total deferred tax assets1,306,621 1,318,569 
Deferred tax liabilities:
Operating lease right-of-use assets(77,910)(75,966)
Other(1,137)(4,249)
Total deferred tax liabilities(79,047)(80,215)
Valuation allowance(1,209,126)(1,219,225)
Net deferred tax assets$18,448 $19,129 
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):
 As of December 31,
 20252024
Unrecognized tax benefits at beginning of year$92,050 $88,548 
Gross increase for tax positions of current year12,830 11,743 
Gross increase for tax positions of prior years72 4,393 
Gross decrease for tax positions of prior years(497)(12,634)
Unrecognized tax benefits balance at end of year$104,455 $92,050