Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

The following are the domestic and foreign components of the Company’s income (loss) before income taxes for the years ended December 31, 2025, 2024, and 2023:


	Year Ended
	December 31, 2025		December 31, 2024		December 31, 2023
	(in thousands)
Domestic	$	62,422	$	19,481	$	(165,311)
International	8,205		7,003		7,764
Income (loss) before income taxes	$	70,627	$	26,484	$	(157,547)

Schedule of Components of Income Tax Expense (Benefit)

The following are the components of the provision (benefit) for income taxes for the years ended December 31, 2025, 2024, and 2023:


	Year Ended
	December 31, 2025		December 31, 2024		December 31, 2023
	(in thousands)
Current:
Federal	$	(170)	$	89	$	218
State	2,545		1,803		1,994
Foreign	1,953		1,743		1,707
Total current provision	4,328		3,635		3,919
Deferred:
Federal	(49,348)		47		763
State	(27,453)		(235)		(5,317)
Foreign	(1,513)		251		2,272
Total deferred provision (benefit)	(78,314)		63		(2,282)
Total provision (benefit) for income taxes	$	(73,986)	$	3,698	$	1,637

Schedule of U.S. Federal Statutory Income Tax Rate

Set forth below provides the updated requirements of ASU 2023-09 for 2025 (see Note 2). The table below is a reconciliation of the components that caused the Company’s provision (benefit) for income taxes to differ from amounts computed by applying the U.S. federal statutory rate of 21% for the year ended December 31, 2025 (in thousands except for percentages):


	Year Ended December 31, 2025
	Amount		Percent
U.S. federal statutory income tax rate	$	14,832	21.0	%
Domestic state and local income taxes, net of federal effect(1)	(19,677)		(27.9)	%
Foreign tax effects:
United Kingdom:
Changes in valuation allowance	(492)		(0.7)	%
Stock option windfall benefit	(837)		(1.2)	%
Other	683		1.0	%
Other foreign jurisdictions	(589)		(0.8)	%

Tax credits:
Research and development credits	(1,889)		(2.7)	%

Nontaxable and nondeductible items:


Sec 162(m) officers' compensation	9,052		12.8	%
Stock-based compensation expense	(8,867)		(12.6)	%

Other	581		0.8	%
Changes in valuation allowances(2)	(67,036)		(94.9)	%
Worldwide changes in prior years unrecognized tax expenses	130		0.2	%
Other	123		0.2	%

Total tax provision (benefit) and effective income tax rate	$	(73,986)	(104.8)	%
(1) We consistently report the effects of the state valuation allowance on the state income tax expense line-item within our effective tax rate. In 2025, we released $22.0 million of our valuation allowance on our U.S. state deferred tax assets. State taxes in California, New York, and Virginia made up the majority (greater than 50%) of the tax effect in this category. See the income taxes paid table below as required under ASU 2023-09.
(2) In 2025, we released our entire valuation allowance of $67.0 million on our U.S. federal deferred tax assets. This is included on the change in valuation allowance line item.

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the table below is a reconciliation of the components that caused the Company’s provision (benefit) for income taxes to differ from amounts computed by applying the U.S. federal statutory rate of 21%:


	Year Ended
	December 31, 2024		December 31, 2023
U.S. federal statutory income tax rate	21.0	%	21.0	%
State income taxes, net of federal benefit	4.6	%	1.7	%
Foreign income (loss) at other than U.S. rates	1.8	%	(0.3)	%
Stock-based compensation expense	9.0	%	(2.4)	%
Meals and entertainment	1.9	%	(0.3)	%

Other permanent items	0.9	%	(0.2)	%
Change in valuation allowance	(42.5)	%	(17.8)	%
Sec 162(m) officers' compensation	19.1	%	(3.3)	%
Provision to return adjustments	4.9	%	0.2	%
Research and development tax credits	(6.9)	%	0.4	%
Foreign withholding taxes	0.2	%	—	%
Effective income tax rate	14.0	%	(1.0)	%

Schedule of Deferred Tax Assets and Liabilities

Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities as of December 31, 2025 and 2024:


	December 31, 2025		December 31, 2024
	(in thousands)
Deferred Tax Assets:
Allowance for doubtful accounts	$	1,853	$	1,597
Accrued liabilities	1,180		2,102
Lease liabilities	8,735		8,704
Stock-based compensation	2,830		3,053
Intangible assets	—		1,276
Net operating loss carryovers	70,295		77,581
Tax credit carryovers	12,430		11,098
Capitalized facilitative costs	11,014		5,975
Other	2,455		816
Total deferred tax assets	110,792		112,202
Less valuation allowance	(4,257)		(94,373)
Deferred tax assets, net of valuation allowance	106,535		17,829
Deferred Tax Liabilities:
Fixed assets	(17,550)		(7,510)
Intangible assets	(2,919)		—
Right-of-use lease assets	(7,685)		(7,647)
Debt issuance and original issue discount	(2,066)		(3,082)
Total deferred tax liabilities	(30,220)		(18,239)
Net deferred tax assets (liabilities)	$	76,315	$	(410)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):


	Amount
Balance as of December 31, 2023	$	4,443
Increases related to current year tax positions	490
Decreases related to prior year tax positions	(457)
Increases related to prior year tax positions	18
Balance as of December 31, 2024	4,494
Increases related to current year tax positions	529
Decreases related to prior year tax positions	(288)

Balance as of December 31, 2025	$	4,735

Schedule of Income Taxes Paid, Net of Refunds

The following table summarizes the income taxes paid, net of refunds, for the year ended December 31, 2025:


	Year Ended
	December 31, 2025
	(in thousands)
U.S. federal	$	200
U.S. state and local:
New York State	216
Virginia	211
Michigan	200
Other	1,449
Foreign:
Australia	676
India	424
Other	384
Total income taxes paid	$	3,760