Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows:

	Years Ended December 31,
(in thousands)	2024			2023		2022
U.S. Federal & State	$	(563,863	)	$	93,357	$	65,899
Foreign		706,675			1,009		7,030
Income (loss) before taxes	$	142,812		$	94,366	$	72,929

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

	Years Ended December 31,
(in thousands)	2024			2023			2022
Current tax expense
U.S. Federal & State	$	1,551		$	25,975		$	13,730
Foreign		5,531			1,871			2,632
Total current	$	7,082		$	27,846		$	16,362
Deferred tax expense (benefit)
U.S Federal & State	$	9,724		$	(7,941	)	$	(6,711	)
Foreign		(14,319	)		535			—
Total deferred	$	(4,595	)	$	(7,406	)	$	(6,711	)
Total income taxes	$	2,487		$	20,440		$	9,651

Summary of Reconciliation Income Tax Expense (Benefit) Computed using US Statutory Income Tax Rate

The reconciliation of income tax expense (benefit) computed using the US statutory income tax rate of 21% to the actual income tax expense and resulting effective tax rate is as follows:

	Years Ended December 31,
(in thousands)	2024			2023			2022
U.S. statutory income tax rate	$	29,991		$	19,817		$	15,295
Increase (decrease) in income taxes resulting from:
Nondeductible expenses		(547	)		258			160
Global intangible low-taxed income and foreign derived    intangible income		(1,093	)		(1,420	)		(109	)
Dividends received deduction		(6,413	)		(1,570	)		(2,115	)
Bargain Purchase Gain		(18,021	)		—			—
Equity Method Investment Gain		(1,688	)		—			—
Transaction Costs		3,552			—			—
Research & development credit		(283	)		(407	)		(329	)
Valuation allowance		(11,298	)		(1,495	)		(8,459	)
State taxes		1,589			2,650			1,458
Prior year true up		(213	)		853			1,690
Foreign rate differential		5,296			1,990			1,198
Foreign withholding tax		1,647			(236	)		816
Uncertain Tax Positions		(33	)		—			—
Other		1			—			46
Effective income tax expense	$	2,487		$	20,440		$	9,651
Effective income tax rate		1.7	%		21.7	%		13.2	%

Components of Net Deferred Tax Assets (Liabilities)

	Year Ended December 31,
(in thousands)	2024			2023
Deferred income tax assets:
Impairment and excess amortization of intangible assets	$	9,657		$	4,768
Uniform capitalization of inventory		3,113			4,283
Inventory reserves		32,678			4,796
Net operating loss carryforward		79,500			49,208
Lease liability		13,851			7,733
Deferred revenue		7,103			—
Allowance for doubtful accounts		13,876			—
Capitalized R&D costs		7,310			—
Income tax credit carryforward		29,677			—
Property and equipment		4,590			—
Other		4,122			5,774
Total deferred income tax assets	$	205,477		$	76,562
Valuation allowance		(53,268	)		(46,886	)
Total deferred tax assets, net	$	152,209		$	29,676
Deferred tax liability:
Property and equipment		—			(4,607	)
Withholding tax		(3,192	)		(726	)
GAAP to STAT Deferred		(1,601	)		(2,903	)
Right of use asset		(13,500	)		(7,423	)
Total deferred tax liabilities	$	(18,293	)	$	(15,659	)
Net deferred income tax asset (liability)	$	133,916		$	14,017

Summary of Change in Valuation Allowance

The changes in valuation allowance during the years ended December 31, 2024, 2023 and 2022 were as follows:

	Years Ended December 31,
(in thousands)	2024			2023			2022
Balance at January 1	$	46,886		$	46,466		$	54,925
Adjustments pertaining to deferred tax assets acquired as part of the Merger (1)		18,084			-			-
Charges to costs and expenses (2)		1,398			2,359			-
Reversals (3)		(13,192	)		(1,179	)		(7,934	)
Adjustments (4)		92			(760	)		(525	)
Balance at December 31	$	53,268		$	46,886		$	46,466

(1)The Company has adjusted certain valuation allowances as a result of the Merger and purchase price accounting.

(2)The Company has recorded valuation allowances on deferred tax assets attributable to net operating losses and tax credits in certain jurisdictions due to uncertainty of its ability to utilize these assets in future periods. During 2024, the Company recorded valuation allowances of $0.4 million and $1.0 million related to domestic deferred tax assets and foreign deferred tax assets, respectively.

(3)The Company reverses valuation allowances on deferred tax assets in the period in which, based on the weight of available evidence, it is more-likely-than-not that the deferred tax asset will be realized. In 2024, reversals were primarily driven by release in foreign jurisdictions where we now believe we will utilize deferred tax assets.

(4)The Company has adjusted certain valuation allowances as a result of changes in tax rates in certain jurisdictions, the expiration of carryforward periods for net operating loss carryforwards, and foreign exchange rate movements.

Schedule of Uncertain Tax Positions

	Year Ended December 31,
(in thousands)	2024			2023
Uncertain tax positions:
Balance at beginning of year	$	-		$	-
Additions for tax positions related to current year		273			-
Reduction for tax positions related to the prior year		(33	)		-
Balance at end of year	$	240		$	-