INCOME TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES For the three and six months ended June 30, 2026, the Company prepared its interim tax provision by applying a year-to-date effective tax rate, which the Company believes results in the best estimate of the annual effective tax rate. The Company recorded a (provision for) benefit from income taxes of $(1.1) million and $0.7 million for the three months ended June 30, 2026 and 2025, respectively, which resulted in effective tax rates of (41.6)% and 7.0%, respectively. The Company recorded a provision for income taxes of $1.7 million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively, which resulted in effective tax rates of (36.9)% and (12.7)%, respectively. The effective income tax rate differs from the statutory tax rate in 2026 and 2025 primarily due to non-deductible stock-based compensation and the change in the valuation allowance in 2025. The amount of cash paid for income taxes, net of refunds received, was $1.5 million and $4.4 million for the six months ended June 30, 2026 and 2025, respectively. The Company follows the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. As of June 30, 2026 and December 31, 2025, the Company recorded an uncertain tax position liability of $1.8 million and $1.6 million, respectively, within Other liabilities on the Condensed Consolidated Balance Sheets. This liability includes $0.4 million and $0.3 million of interest and penalties as of June 30, 2026 and December 31, 2025, respectively. H.R.1, enacted into law on July 4, 2025, introduced provisions that modified the Internal Revenue Code (“IRC”), including the immediate expensing of domestic research and development expenditures for tax purposes. As previously required under the Tax Cuts and Jobs Act, the Company capitalized and amortized research and experimental (“R&D”) expenditures under IRC Section 174 for tax years beginning after December 31, 2021. With the enactment of H.R.1 in 2025, the Company began deducting domestic Section 174 costs in the year they were incurred. The Company will continue to capitalize and amortize R&D costs over 15 years for R&D performed outside of the U.S.
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