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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents domestic and foreign components of income (loss) before provision for income taxes for the periods presented:
Year Ended December 31,
202520242023
(In thousands)
United States$150,891 $40,982 $(816,089)
International(95,797)(129,595)(180,640)
Income (loss) before provision for income taxes
$55,094 $(88,613)$(996,729)
Provision for income taxes consists of the following:
Year Ended December 31,
202520242023
Current:(In thousands)
Federal$341 $5,617 $2,567 
State1,515 2,305 1,533 
Foreign20,692 14,850 31,354 
Total22,548 22,772 35,454 
Deferred:
Federal95 196 (1,337)
State(27)149 (208)
Foreign(1,356)(2,327)(15,197)
Total(1,288)(1,982)(16,742)
Provision for income taxes$21,260 $20,790 $18,712 
The provision for income taxes recorded in the years ended December 31, 2025, 2024 and 2023, consists primarily of income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business. Due to a history of losses in the U.S., the Company maintains a full valuation allowance against its U.S. deferred tax assets.
As described in Note 2(ae), in the current period, the Company adopted ASU 2023-09 on a prospective basis. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate for the year ended December 31, 2025, pursuant to the disclosure requirements of ASU 2023-09, is as follows:
Year Ended
December 31, 2025
Amount (in thousands)
Percent
Tax at federal statutory rate$11,570 21 %
Federal:
Effect of cross-border tax laws:
Foreign income taxed in the United States, net of foreign tax deductions(1,440)(3)
Withholding taxes
157 — 
Tax Credits:
Research and development tax credits(40,879)(74)
Changes in valuation allowance36,651 67 
Nontaxable or nondeductible items:
Excess benefit on share-based payment awards(41,493)(75)
Other share-based payment award related items
14,216 26 
Other1,651 3 
Other adjustments264 1 
State and local taxes, net of federal income tax effect (1)
1,080 2 
Foreign tax effects:
Ireland:
Statutory tax rate difference between Ireland and United States
9,473 17 
Changes in valuation allowance
9,720 18 
Foreign exchange gains/losses
7,394 13 
Other
(580)(1)
Brazil:
Withholding taxes
7,758 14 
Other
1,213 2 
Other foreign jurisdictions (2)
6,118 11 
Worldwide changes in unrecognized tax benefits (gross)
(1,613)(3)
Effective tax rate$21,260 39 %
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(1) State taxes in North Carolina and Texas made up the majority (greater than 50 percent) of the tax effect in this category.
(2) Other foreign jurisdictions is comprised of $2.6 million related to India. The remaining foreign jurisdictions are not significant.

A reconciliation of the U.S. federal statutory income tax rates to the Company’s effective tax rate for the years ended December 31, 2024 and 2023, pursuant to previous disclosure requirements, is as follows:
Year Ended December 31,
20242023
Tax at federal statutory rate21 %21 %
State tax, net of federal benefit1 3 
Stock-based compensation(40)(7)
Credits20 2 
Foreign rate differential(67)1 
Permanent book vs. tax differences8 — 
Change in valuation allowance32 (23)
Other2 1 
Effective tax rate(23)%(2)%
Cash paid for income taxes, net of refunds, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:
Year Ended
December 31, 2025
(In thousands)
U.S. federal taxes
$3,157 
U.S. state taxes
3,973 
Non-U.S. taxes
10,581 
Total income taxes paid, net
$17,711 
Income taxes paid exceeds 5% of total income taxes paid, net of refunds, in the following jurisdictions:
Year Ended
December 31, 2025
(In thousands)
U.S. State
California
$1,723 
Non-U.S.
Brazil
$2,446 
Colombia
$1,879 
Japan
$1,678 
India
$3,706 
Income taxes paid, net, for the years ended December 31, 2024 and 2023 were $36.5 million and $37.8 million, respectively.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company's deferred tax assets and liabilities:
As of December 31,
20252024
Deferred tax assets:(In thousands)
Net operating loss carryforwards$818,284 $810,278 
Accruals and reserves80,185 73,535 
Stock-based compensation31,673 28,238 
Research and development credits237,447 175,746 
Intangibles135,500 135,500 
Capitalized research and development expenses230,302 299,061 
Lease liability21,499 30,697 
Investments and other basis differences126,369 81,248 
Other8,992 18,139 
Gross deferred tax assets1,690,251 1,652,442 
Valuation allowance(1,554,727)(1,488,328)
Net deferred tax assets135,524 164,114 
Deferred tax liabilities:
Capitalized software(39,022)(38,394)
Prepaid expenses(863)(900)
Acquired intangibles(32,633)(55,283)
Right-of-use asset(8,913)(13,112)
Deferred commissions(37,173)(42,313)
Net deferred tax asset
$16,920 $14,112 
The following table summarizes the Company’s tax carryforwards, carryovers and credits:
As of
December 31, 2025		Expiration Date
(If not utilized)
(In thousands)
Federal tax credits$205,987 Various dates beginning in 2038
Federal net operating loss carryforwards$2,866,460 Indefinite
State net operating loss carryforwards$2,400,985 Various dates beginning in 2026
State tax credits$155,404 Various dates beginning in 2029
Foreign net operating loss carryforwards$965,615 Indefinite
A limitation may apply to the use of the federal and state net operating loss and credit carryforwards, under provisions of the Internal Revenue Code of 1986, as amended, and similar state tax provisions that are applicable if the Company experiences an “ownership change.” An ownership change may occur, for example, as a result of issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a potential reduction in the gross deferred tax assets before considering the valuation allowance.
The Company's accounting for deferred taxes involves the evaluation of a number of factors related to the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company's deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible.
At present, the Company does not believe that it is more likely than not that the federal, state and certain foreign net deferred tax assets will be realized, and accordingly, a valuation allowance has been established. The valuation allowance increased by approximately $66.4 million during the year ended December 31, 2025, and decreased by approximately $45.6 million during the year ended December 31, 2024.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202520242023
(In thousands)
Unrecognized tax benefit, beginning of year$252,208 $233,778 $228,966 
Gross increases for tax positions of prior years6,647 7,476 3,427 
Gross decreases for tax positions of prior years(1,085)(198)(5,130)
Gross increases for tax positions of current year24,889 13,253 7,754 
Gross decreases for tax positions of current year(168)— — 
Lapse of statute of limitations(1,795)(2,101)(1,239)
Unrecognized tax benefit, end of year$280,696 $252,208 $233,778 
As of December 31, 2025, the Company had approximately $280.7 million of unrecognized tax benefits. If the $280.7 million is recognized, $1.3 million would affect the effective tax rate. The remaining amount would be offset by the reversal of related deferred tax assets which are subject to a full valuation allowance.
The Company files U.S. federal income tax returns as well as income tax returns in many U.S. states and foreign jurisdictions. As of December 31, 2025, the tax years 2008 through the current period remain open to examination by the major jurisdictions in which the Company is subject to tax. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized. The Company is fully reserved for all open U.S. federal, state and local, or non-U.S. income tax examinations by any tax authorities.
On June 7, 2019, a three-judge panel from the U.S. Court of Appeals for the Ninth Circuit overturned the U.S. Tax Court's decision in Altera Corp. v. Commissioner and upheld the portion of the Treasury regulations under Section 482 of the Internal Revenue Code that requires related parties in a cost-sharing arrangement to share expenses related to share-based compensation. As a result of this decision, the Company's gross unrecognized tax benefits increased to reflect the impact of including share-based compensation in cost-sharing arrangements. The Company will continue to monitor future developments related to this matter and their potential effects on its consolidated financial statements. There is no impact on the Company’s effective tax rate for years ended December 31, 2025 and 2024 due to a full valuation allowance against its deferred tax assets.