Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 13. Income Taxes At the end of each interim reporting period, the Company determines the income tax provision by using an estimate of the annual effective tax rate, adjusted for discrete items occurring in the quarter. The effective income tax rate reflects the effect of federal, international, and state income taxes and the permanent impacts of differences in book and tax accounting. The Company recognized an income tax benefit of $2.8 million and $4.3 million for the three and six months ended June 30, 2026, respectively, compared with an income tax expense of $(0.1) million for each of the three and six months ended June 30, 2025. The effective tax rate was 693.8% and (197.0)% for the three and six months ended June 30, 2026, respectively, compared with (2.8)% and (0.8)% for the three and six months ended June 30, 2025, respectively. The change from a tax expense to a tax benefit was primarily attributable to favorable U.S. federal and state tax law changes enacted under the One Big Beautiful Bill Act (the “OBBBA”). The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered its historic performance, the nature of its deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. Based on an analysis of these factors, the Company determined that as of June 30, 2026, a valuation allowance against U.S. federal and state deferred tax assets was required. The Company’s effective tax rate for the three months ended June 30, 2026 differed from the federal statutory tax rate of 21% in the U.S. primarily due to a valuation allowance recorded against U.S. federal and state net deferred tax assets.
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