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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before (provision for) benefit from income taxes consists of the following (in thousands):
Years Ended December 31,
202520242023
Domestic$(448,370)$(499,680)$(608,134)
Foreign10,600 (23,425)(20,060)
Total loss before (provision for) benefit from income taxes$(437,770)$(523,105)$(628,194)
The components of (provision for) benefit from income taxes consist of the following (in thousands):
Years Ended December 31,
202520242023
Current:
Federal$(162)$(965)$12,774 
State(12)1,254 (685)
Foreign261 (2,093)(75)
87 (1,804)12,014 
Deferred:
Federal(302)2,105 406 
State— 900 598 
Foreign(2)(56)59 
(304)2,949 1,063 
(Provision for) benefit from income taxes$(217)$1,145 $13,077 
Income taxes paid consists of following (in thousands):
Year Ended December 31 2025
Federal $— 
State73 
Foreign (Switzerland)2,347 
Total$2,420 
A reconciliation between the U.S. federal statutory income tax provision and rate and the reported effective income tax provision and rate for the year ended December 31, 2025 is as follows (in thousands, except for percentages). The Company's effective tax rate of (0.03)% for the year ended December 31, 2025 is primarily due to the movement of valuation allowance and nondeductible stock compensation expense.
Year Ended December 31 2025
Provision at US federal statutory rate$(91,933)21.00 %
State and local income taxes, net of federal income tax effect9 — 
Foreign tax effects(2,224)0.51 
Effect of cross-border tax laws: GILTI3,559 (0.81)
Tax credits: research and development credit (3,904)0.89 
Change in valuation allowance76,305 (17.43)
Nontaxable or nondeductible items
Stock-based compensation15,335 (3.50)
Other permanent items3,169 (0.72)
Changes in unrecognized tax benefits1,025 (0.23)
Other adjustments(1,124)0.26 
Income tax provision and effective tax rate$217 (0.03%)
    
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows.
Years Ended December 31,
20242023
U.S. federal statutory income tax rate21.0%21.0%
Foreign tax at less than federal statutory rate(0.1)— 
State taxes, net of federal benefit(0.7)5.3 
Research and development tax credit2.4 2.4 
Permanent items(2.4)(1.6)
Changes in valuation allowance(18.5)(24.2)
Other adjustments(1.5)(0.8)
Effective income tax rate0.2%2.1%
The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities as of December 31, 2025, and 2024, are related to the following (in thousands):
December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards$294,591 $180,130 
Capitalized research and development118,473 175,835 
Intangible assets61,266 40,593 
Research and development tax credit carryforward35,578 30,549 
Equity compensations14,779 23,776 
Lease liabilities18,274 20,502 
Reserves and accruals6,712 7,543 
Valuation allowance(527,114)(453,394)
Deferred tax assets22,559 25,534 
Deferred tax liabilities:
ROU assets(10,916)(12,219)
Property and equipment(9,004)(10,628)
IPR&D(1,928)(1,928)
Other(257)— 
Deferred tax liabilities(22,105)(24,775)
Net deferred tax assets$454 $759 
Although the Company has taxable income for the years ended December 31, 2022, and 2021, it has otherwise incurred accumulated tax losses since inception. Based on the available objective evidence, the Company cannot conclude it is more likely than not that the deferred tax assets will be fully realizable. Accordingly, the Company has provided a valuation allowance against its deferred tax assets. For the year ended December 31, 2025, the Company recorded a valuation allowance increase of $73.7 million. As of December 31, 2025, the Company has net operating loss carryforwards of $1.2 billion for federal purposes and $446.4 million for state tax purposes. If not utilized, these carryforwards will begin to expire in 2036 for federal and in 2037 for state tax purposes. As of December 31, 2025, the Company also has net operating loss carryforwards of $34.2 million for Australian tax purposes, which have an indefinite carryforward period, and $16.0 million net operating loss carryforwards for Swiss tax purposes, which have a seven-year carryforward period.
Under the Tax Reform Act of 1986, the amounts of and benefits from net operating loss carryforwards may be impaired or limited in certain circumstances. Events which cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. The Company completed its Section 382 analysis as of December 31, 2025, and based on this analysis, it does not expect that the annual limitations will significantly impact its ability to utilize its net operating loss or tax credit carryforwards prior to expiration.
As of December 31, 2025, the Company has research and development tax credit carryforwards of $16.4 million and $30.5 million for federal and state tax purposes, respectively. If not utilized, the federal carryforward will expire in various amounts beginning in 2036. The California credits can be carried forward indefinitely.
On July 4, 2025, legislation formally titled An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14, commonly referred to as the One Big Beautiful Bill Act (OBBBA), was signed into law by President Trump. The application of the OBBBA did not have a material impact on the Company's financial statements during the year ended December 31, 2025.
Uncertain Tax Positions
As of December 31, 2025, and 2024, the Company had an unrecognized tax benefit balance of $17.3 million and $17.9 million, respectively, primarily related to transfer pricing and research and development tax credits. A portion of the unrecognized tax benefits as of December 31, 2025, if recognized, would increase the Company’s effective tax rate by 2.3%. Other unrecognized tax benefits as of December 31, 2025, if recognized, would be in the form of net operating loss and tax credit carryforwards, which attract a full valuation allowance offset, and would not impact the Company’s effective tax rate. Because the statute of limitations does not expire until after the net operating loss and credit carryforwards are actually used, the statutes are still open on calendar years ending December 31, 2017 and forward for federal and state purposes.
The Company recognized $1.3 million expense for interest and penalties related to uncertain tax positions during 2025, all of which was recorded as accrued and other liabilities as of December 31, 2025. The Company files U.S. federal, state, Switzerland and Australia tax returns. The Company’s tax years remain open for all years. As of December 31, 2025, the Company was not under examination by the Internal Revenue Service or any state or foreign tax jurisdiction.
A reconciliation of the beginning and ending amounts of the liability for uncertain tax positions is as follows (in thousands):
Years Ended December 31,
202520242023
Gross unrecognized tax benefits at January 1$17,946 $13,583 $10,638 
Addition for tax positions taken in the prior years— 2,014 29 
Reduction for tax positions taken in the prior years(2,221)(20)— 
Addition for tax positions taken in current year1,611 2,369 2,916 
Gross unrecognized tax benefits at December 31$17,336 $17,946 $13,583