Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes

Schedule of effective tax rates differing from U.S. federal statutory rate

	December 31,
	2025
	(in thousands, except percentages)
Tax benefit at the U.S. federal statutory rate	$	(56,299)	21.00	%
State and local income taxes, net of federal benefit (1)		(8,053)	3.00	%
Foreign tax effects		334	(0.12)	%
Tax credits:
Research and development credits		(2,020)	0.75	%
Changes in valuation allowance		101,513	(37.87)	%
Nontaxable or nondeductible Items:
Stock-based compensation		(133,410)	49.76	%
Nondeductible officers' compensation		33,202	(12.38)	%
Meals & entertainment		3,646	(1.36)	%
Other		961	(0.36)	%
Other adjustments:
Other		196	(0.07)	%
Benefit for income taxes	$	(59,929)	22.35	%

(1) State taxes in California, Illinois, New York, and New Jersey made up the majority (greater than 50%) of the tax effect in this category.

The following table presents a reconciliation of the income tax expense computed at the statutory federal rate and the Company's income tax expense for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU No. 2023-09:

	December 31,
	2024				2023
	(in thousands, except percentages)
U.S. federal taxes (benefit) at statutory rate	$	(39,844)	21.00	%	$	(91,251)	21.00	%
State and local income taxes, net of federal benefit		(21,613)	11.39	%		(13,492)	3.10	%
Research and development credits		(17,621)	9.29	%		(10,837)	2.49	%
Stock-based compensation		(62,969)	33.19	%		(6,422)	1.48	%
Foreign tax		(25)	0.01	%		(106)	0.02	%
Nondeductible officers' compensation		31,718	(16.72)	%		8,651	(1.99)	%
Acquisition costs		—	—	%		563	(0.13)	%
Nondeductible meals and other		2,870	(1.51)	%		(3,397)	0.79	%
Change in valuation allowance		108,179	(57.02)	%		116,562	(26.82)	%
Provision for income taxes	$	695	(0.37)	%	$	271	(0.05)	%

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets

	December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	504,968	$	395,139
Research and development tax credit carryforwards		93,942		90,759
Capitalized research costs		247,223		173,991
Reserves and accruals		35,180		23,928
Lease liabilities		33,124		26,649
Stock-based compensation		56,734		47,864
Intangible assets		—		8,846
Other		6,498		5,583
Total deferred tax assets before valuation allowance		977,669		772,759
Less: valuation allowance		(867,976)		(747,090)
Total deferred tax assets after valuation allowance		109,693		25,669
Deferred tax liabilities:
Fixed assets		(11,464)		(4,164)
Right-of-use lease assets		(26,820)		(21,505)
Developed technology		(72,110)		—
Total deferred tax liabilities		(110,394)		(25,669)
Net deferred tax liabilities	$	(701)	$	—

Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits

	December 31,
	2025		2024		2023
	(in thousands)
Balance at beginning of year	$	34,940	$	30,912	$	23,844
Additions based on tax positions related to the current year		5,862		13,648		7,034
Additions (reductions) for tax positions of prior years		(10,006)		(9,620)		34
Balance at end of year	$	30,796	$	34,940	$	30,912