v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Income Taxes
U.S. and international components of income before income taxes were as follows:
Year Ended December 31,
202520242023
(in thousands)
U.S.$(55,558)$(37,174)$(26,289)
International55,391 91,251 71,021 
Income before income taxes$(167)$54,077 $44,732 
Schedule of Income Tax Expense
Income tax expense was composed of the following:
Year Ended December 31,
202520242023
(in thousands)
Current:
Federal$— $682 $— 
State375 250 250 
International21,613 24,983 21,152 
21,988 25,915 21,402 
Deferred:
Federal— (1,561)— 
State(3)— — 
International(3,337)(1,017)(488)
(3,340)(2,578)(488)
Income tax expense$18,648 $23,337 $20,914 
Schedule of Effective Income Tax Rate Reconciliation
The difference between the income tax expense (benefit) derived by applying the federal statutory income tax rate to our income before income taxes and the amount recognized in our Consolidated Financial Statements is as follows for the year ended December 31, 2025:
Year Ended December 31, 2025
(in thousands, except percentages)
Income before income taxes$(167)
Income Tax ExpenseAs a Percentage of Income Before Taxes
U.S. - Federal:$(35)21.0 %
Nontaxable and Nondeductible Items:
     Nondeductible executive compensation2,154 (1289.8)%
     Nondeductible legal and transaction costs2,317 (1387.4)%
     Prior period adjustments125 (74.9)%
     Other nondeductible expense220 (131.7)%
Share-Based Payment Awards:1,019 (610.2)%
Cross-Border Tax Laws:
Global intangible low-taxed income405 (242.5)%
Changes in Valuation Allowance:5,498 (3292.2)%
U.S. - State and Local Income Taxes, Net of Federal Effect (1):
250 (149.7)%
Foreign Tax Effects:
Canada
     Statutory income tax rate differential625 (374.3)%
     Nondeductible share-based payment awards2,014 (1206.0)%
     Research credits(550)329.3 %
Prior period adjustments321 (192.2)%
     Other73 (43.7)%
Netherlands
     Statutory income tax rate differential1,263 (756.3)%
     Nondeductible share-based payment awards337 (201.8)%
Prior period adjustments(1,581)946.7 %
     Changes in valuation allowance500 (299.4)%
     Other18 (10.8)%
United Kingdom
     Statutory income tax rate differential449 (268.9)%
Nondeductible share-based payment awards408 (244.3)%
     Nondeductible license fee657 (393.4)%
Prior period adjustments861 (515.6)%
     Other357 (213.8)%
Other Foreign Jurisdictions
Statutory income tax rate differential160 (95.8)%
Nondeductible share-based payment awards179 (107.2)%
Prior period adjustments360 (215.6)%
Other244 (146.1)%
Income Tax Expense$18,648 (11166.5)%
_____________________
(1) State taxes in Massachusetts, New Jersey, and California made up the majority (greater than 50 percent) of the tax effect in this category in 2025.
The difference between the income tax expense (benefit) derived by applying the federal statutory income tax rate to our income before income taxes and the amount recognized in our Consolidated Financial Statements is as follows for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
(in thousands)
Expense derived by applying the federal statutory income tax rate to income before income taxes$11,358 $9,393 
State taxes, net of federal benefit250 250 
Research and experimentation tax credits(550)— 
Global intangible low-taxed income— (49)
Withholding tax— 79 
Transaction costs1,024 399 
Non-taxable change in contingent consideration liability(1,480)— 
Non-deductible executive compensation3,155 2,099 
Valuation allowance for deferred tax assets3,737 2,867 
Stock-based compensation1,301 2,569 
Meals and entertainment328 224 
Effect of foreign operations4,312 2,343 
Other(98)740 
Income tax expense$23,337 $20,914 
Schedule of Components of Net Deferred Tax Amounts
The components of the net deferred tax amounts recognized in the accompanying Consolidated Balance Sheets were:
December 31,
20252024
(in thousands)
Deferred tax assets:
Allowance for doubtful accounts$1,187 $392 
Accrued expenses76 17 
Net operating loss18,146 14,763 
Stock-based compensation4,206 3,876 
Interest expense9,046 4,292 
Deferred revenue162 635 
Capitalized research and development expense30 2,599 
Leases788 782 
Other credits240 22 
Total deferred tax assets33,881 27,378 
Valuation allowance(14,036)(7,764)
Deferred tax assets, net of valuation allowance19,845 19,614 
Deferred tax liabilities:
Property and equipment1,880 1,578 
Prepaid expenses1,161 1,271 
Leases1,461 36 
Unrealized exchange loss12 983 
Intangibles13,014 17,168 
Total deferred tax liabilities17,528 21,036 
Net deferred tax asset (liability)$2,317 $(1,422)
Schedule of Income Tax Paid
Total cash paid for income taxes, net of refunds, is as follows for the year ended December 31, 2025:
Year Ended December 31, 2025
(in thousands, except percentages)
Payments$19,455 108 %
Refunds(1,391)
Total payments, net of refunds$18,064 
As a Percentage of Total Payments, Net of Refunds
U.S. payments, net of refunds$74 0.4 %
Foreign payments, net of refunds
Canada$2,498 13.8 %
Netherlands6,605 36.6 %
United Kingdom7,650 42.3 %
Other1,237 6.8 %
$17,990 99.6 %
Total payments, net of refunds$18,064 100.0 %