Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Loss Before Income Taxes

The following table presents the components of loss before income taxes (in thousands):


	Year Ended December 31,
	2025		2024		2023
United States	$	(112,811)	$	(39,968)	$	(30,355)
Foreign	540		1,871		2,720
Loss before income taxes	$	(112,271)	$	(38,097)	$	(27,635)

Schedule of Provision for (Benefit from) Income Taxes

The following table presents the components of the Company's income tax benefit (expense) (in thousands):


	Year Ended December 31,
	2025		2024		2023
Current taxes:
United States - State	$	(93)	$	(37)	$	(161)
Foreign	(416)		(683)		(850)
Total current taxes	(509)		(720)		(1,011)
Deferred taxes:
United States
Federal	4,447		—		—
State	802		—		—
Foreign	381		286		292
Total deferred taxes	5,630		286		292
Income tax benefit (expense)	$	5,121	$	(434)	$	(719)

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

In accordance with the Company's prospective adoption of ASU 2023-09 effective for its annual financial statements beginning January 1, 2025, the following table is a reconciliation of the Company's income taxes and its effective tax rate as compared to the United States ("U.S.") federal statutory income tax rate of 21.0% for the year ended December 31, 2025 (in thousands, except percentages):


	Year Ended December 31, 2025
	Amount		Rate
U.S. federal statutory income tax	$	23,577	21.0	%
U.S. state and local income tax, net of federal income tax effect (1)	555		0.5	%
Foreign tax effects	(55)		—	%
Effect of cross border transactions	(72)		(0.1)	%
Nontaxable or nondeductible items
Transaction costs	(2,187)		(1.9)	%
Goodwill impairment	(1,339)		(1.2)	%
Stock compensation	(2,281)		(2.0)	%
Limitation on executive compensation	(710)		(0.6)	%
Other nondeductible items	(1,235)		(1.1)	%
Tax credits	293		0.3	%
Change in valuation allowance	(11,411)		(10.3)	%
Other items	(14)		—	%
Income tax benefit and effective tax rate	$	5,121	4.6	%

(1)The state that contributes to the majority of the state and local tax effect is Massachusetts.

The Company's effective income tax rate for 2025 differs from the U.S. federal statutory rate primarily as a result of the valuation allowance maintained against the Company’s net deferred tax assets as well as non-deductible items including stock-based compensation, transactions costs, and goodwill impairment.

A reconciliation of the Company's effective tax rate as compared to the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09, was as follows:


	Year Ended December 31,
	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
U.S. state income taxes, net of federal benefit	2.7	%	(0.3)	%
Change in valuation allowance	(22.5)	%	(24.3)	%
Non-deductible stock compensation	(2.4)	%	(1.6)	%
Permanent items	(0.3)	%	(0.6)	%
Non-deductible executive compensation	(3.2)	%	(2.6)	%
Tax credits	4.0	%	4.9	%
Other	(0.4)	%	0.9	%
Effective tax rate	(1.1)	%	(2.6)	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. The Company records deferred tax assets in other non-current assets and deferred tax liabilities in other non-current liabilities on the Consolidated Balance Sheets. Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):


	As of December 31,
	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	147,973	$	80,541
Tax credits	10,929		10,178
Deferred revenue	6,322		2,412
Amortization	—		645
Stock-based compensation	4,539		3,808
Inventory	4,092		1,069
Capitalized R&D costs	16,784		13,753
Lease liabilities	8,802		9,093
Other deferred tax assets	653		497
Non deductible interest - 163(j)	3,839		—
Accrual and reserves	5,107		1,876
Gross deferred tax assets	209,040		123,872
Less: valuation allowances	(177,108)		(118,663)
Total deferred tax assets	31,932		5,209
Deferred tax liabilities:
Right-of-use assets	(3,927)		(3,970)
Depreciation	(1,474)		(1,137)
Amortization acquired intangibles	(26,702)		(831)
Other deferred tax liabilities	(273)		(71)
Total deferred tax liabilities	(32,376)		(6,009)
Net deferred tax liabilities	$	(444)	$	(800)

Schedule of Valuation Allowance

The change in the Company's valuation allowance was as follows (in thousands):


	2025		2024
Balance at December 31 of prior year	$	118,663	$	110,082
Change in valuation allowance	58,445		8,581
Balance at December 31	$	177,108	$	118,663

Schedule of Cash Flow, Supplemental Disclosures

The following table summarizes income taxes paid in 2025 (in thousands):


	Year Ended December 31, 2025
U.S. state
Massachusetts	$	—
Other states	44
Foreign
Sweden	1,220
Other foreign jurisdictions	140
Total income taxes paid	$	1,404