Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recognized in the period. For the three and six months ended June 30, 2026, the Company recorded income tax expense of $0.1 million and $0.2 million respectively, compared to income tax benefits of $1.1 million and $1.0 million for the three and six months ended June 30, 2025, respectively. The Company’s effective tax rates were (3.2)% and (2.4)% for the three and six months ended June 30, 2026, respectively, compared to 11.3% and 5.6% for the corresponding periods in 2025. The tax expense for the three and six months ended June 30, 2026, primarily reflects income taxes in foreign jurisdictions where the Company generates taxable income. The effective tax rate differs from the U.S. federal statutory income tax rate of 21.0% primarily due to the impact of the Company’s valuation allowance, state income taxes, and permanent differences. The Company’s U.S. operations continue to generate losses and, as such, the Company maintains a valuation allowance against substantially all U.S. deferred tax assets. While the Company believes its current valuation allowance is appropriate, the Company assesses the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on all available positive and negative evidence, including past results of operations, forecasted earnings, tax planning strategies, and all sources of future taxable income. The partial valuation allowance release recorded during 2025 related to deferred tax liabilities established in connection with the Vidurama acquisition remains unchanged, and no additional releases were recorded during the three and six months ended June 30, 2026. The Company had no material uncertain tax positions and no significant changes to its unrecognized tax benefits during the three and six months ended June 30, 2026. No interest or penalties related to uncertain tax positions were accrued or recognized in income tax expense for the period.
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