Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate (“AETR”) for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The Company has determined the historical method would not provide a reliable estimate for the fiscal six months ended June 30, 2026. Therefore, the discrete effective tax rate method has been used to calculate taxes for the fiscal six months ended June 30, 2026. The Company recorded a provision for income taxes of $3.1 million and a benefit from income taxes of $0.9 million for the three months ended June 30, 2026 and 2025, respectively, and a provision for income taxes of $0.5 million and a benefit from income taxes of $2.7 million for the six months ended June 30, 2026 and 2025, respectively. The effective income tax rate was 164% and 14% for the three months ended June 30, 2026 and 2025, respectively, and (4)% and 16% for the six months ended June 30, 2026 and 2025, respectively. The provision for income taxes for the six months ended June 30, 2026 is primarily related to tax expense from nondeductible stock-based compensation and Section 162(m) limitation on the tax deductibility of officers’ compensation, partially offset by the tax benefits from research tax credits and deductions for equity awards. Realization of the Company’s deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, the Company considers its historical, as well as future projected, taxable income along with other objectively verifiable evidence. Objectively verifiable evidence includes the Company’s realization of tax attributes, assessment of tax credits, and utilization of net operating loss carryforwards during the year.
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