v3.26.3
Income Tax Matters
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Matters

9. Income Tax Matters

The following table presents the income tax provision by region:

 

 

 

Quarter Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Domestic

 

$

(8.4

)

 

$

(8.0

)

 

$

(56.5

)

 

$

(20.6

)

Foreign

 

 

(0.8

)

 

 

(0.3

)

 

 

(2.1

)

 

 

(1.6

)

Total

 

$

(9.2

)

 

$

(8.3

)

 

$

(58.6

)

 

$

(22.2

)

The income tax provision for the quarters ended September 30, 2026 and September 30, 2025 was $9.2 million and $8.3 million, respectively, reflecting an effective tax rate of 23% and 17%, respectively. There was no material difference between the effective tax rate and the blended statutory tax rate for the quarter ended September 30, 2026. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended September 30, 2025 was primarily due to a decrease of 7% related to Federal research and development credits, partially offset by an increase of 2% related to non-deductible compensation expense.

The income tax provision for the nine months ended September 30, 2026 and September 30, 2025 was $58.6 million and $22.2 million, respectively, reflecting an effective tax rate of 24% and 21%, respectively. There was no material difference between the effective tax rate and the blended statutory tax rate for the nine months ended September 30, 2026 and 2025.

Our gross unrecognized benefits relating to uncertain tax positions were $8.0 million and $7.4 million at September 30, 2026 and December 31, 2025, respectively. If recognized, these amounts would be reflected in our income tax provision and affect our effective tax rate.