XML 56 R42.htm IDEA: XBRL DOCUMENT v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Tax, Domestic and Foreign
Income before provision (benefit) for income taxes included the following components for the years ended December 31, (in thousands):
202520242023
United States$(8,227)$357,484 $134,509 
Foreign27,201 24,020 22,552 
Total$18,974 $381,504 $157,061 
Schedule of Significant Components of the Provision (Benefit) for Income Taxes
Significant components of the provision (benefit) for income taxes were as follows for the years ended December 31, (in thousands):
202520242023
Current:
Federal$(34,249)$67,944 $35,831 
State5,402 18,234 12,400 
Foreign5,844 3,388 5,544 
Total current(23,003)89,566 53,775 
Deferred:
Federal(63,999)(63,603)(60,674)
State(15,600)(19,678)(9,172)
Foreign(3,080)(1,815)(2,651)
Total deferred(82,679)(85,096)(72,497)
Provision for (benefit from) income taxes$(105,682)$4,470 $(18,722)
Schedule of Reconciliation of the company's Effective Income Tax Rate to the Federal Statutory Rate
The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows (in thousands, except percentages):
Year Ended December 31, 2025
$%
U.S. federal statutory tax rate$3,985 21.0 %
State and local income taxes, net of federal benefit (1)
(11,735)(61.8)
Foreign tax effects
United Kingdom
Excess stock-based compensation benefit(4,282)(22.6)
Other(626)(3.3)
Other foreign jurisdictions1,960 10.3 
Effect of cross-border tax laws4,180 22.0 
Tax credits
R&D credits(49,380)(260.2)
Valuation allowances540 2.8 
Non-taxable or non-deductible items
Excess stock-based compensation benefit(124,081)(653.9)
Executive compensation limitation48,781 257.1 
Other permanent differences5,711 30.1 
Unrecognized tax benefits19,556 103.1 
Other adjustments(291)(1.6)
Total tax benefit and effective tax rate$(105,682)(557.0)%
(1)    State taxes in Arizona, Massachusetts, Illinois, New York, Florida and Pennsylvania comprise greater than 50 percent of the tax effect in this category
A reconciliation of our effective income tax rate to the federal statutory rate for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09 and as previously disclosed, is as follows (in thousands):
20242023
Federal income tax at the statutory rate$80,120 $32,983 
Excess stock-based compensation benefit(83,748)(106,522)
Executive compensation limitation51,858 77,350 
R&D credits(36,571)(26,204)
Nontaxable gain on investments(19,727)— 
Change in unrecognized tax benefits7,356 4,351 
Other permanent differences
5,176 1,201 
Global intangible low-taxed income3,081 1,890 
Foreign derived intangible income deduction(2,558)(961)
Foreign tax credit(1,914)(1,922)
State income taxes, net of federal benefit1,713 3,730 
Change in valuation allowance(903)(4,695)
Tax effects of intercompany transactions(222)(2,033)
Difference between statutory and foreign tax rates801 1,013 
Other8 1,097 
Provision for (benefit from) income taxes$4,470 $(18,722)
Effective tax rate1.2 %(11.9)%
Schedule of Income Taxes Paid
Cash payments of U.S. federal, state and foreign income taxes, net of refunds, were as follows (in thousands):

Year Ended December 31, 2025
Federal$31,720
State12,650
Foreign6,751
Total$51,121
Schedule of Components of Deferred Income Tax Assets and Liabilities
Significant components of our deferred income tax assets and liabilities are as follows at December 31, 2025 and December 31, 2024 (in thousands):
20252024
Deferred income tax assets:
R&D capitalization, net$162,715 $193,265 
Deferred revenue82,760 66,948 
Stock-based compensation69,703 51,088 
Net operating loss carryforward54,614 17,824 
Reserves and accruals43,289 33,523 
R&D tax credit carryforward27,105 19,100 
Lease liabilities25,695 11,966 
Other22,635 10,027 
Convertible debt, net2,601 31,603 
Total deferred income tax assets491,117 435,344 
Valuation allowance(32,594)(23,054)
Total deferred income tax assets, net of valuation allowance458,523 412,290 
Deferred income tax liabilities:
Amortization(40,502)(36,185)
Depreciation(28,249)(16,739)
Right-of-use assets(25,250)(10,639)
Other(5,847)(4,557)
Strategic investments(515)(42,260)
Total deferred income tax liabilities(100,363)(110,380)
Net deferred income tax assets358,160 301,910 
Deferred taxes are reflected in the consolidated balance sheet as follows:
Non-current tax assets (included in deferred tax asset, net)359,803 304,282 
Non-current tax liabilities (included in other long-term liabilities)(1,643)(2,372)
Total$358,160 $301,910 
Schedule of Valuation Allowance
The following table presents the valuation allowance activity for the years ended December 31, 2025, 2024, and 2023 (in thousands):
202520242023
Balance, beginning of period$23,054 $21,600 $26,368 
Tax provision (benefit)8,726 (576)(4,262)
Deductions charged to tax provision / benefit(411)(327)(505)
Additions (reversals) to other accounts1,225 2,357 (1)
Balance, end of period$32,594 $23,054 $21,600 
Schedule of Roll forward of Liability for Unrecognized Tax Benefits exclusive of Accrued Interest
The following table presents a roll-forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31, (in thousands):
202520242023
Balance, beginning of year$32,726$25,754$21,492
Increase (decrease) in previous year tax positions237 501 (215)
Increase in current year tax positions23,2937,3136,963
Decrease due to lapse of statute of limitations(49)(842)(2,486)
Balance, end of year$56,207$32,726$25,754