Income taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company calculated the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income for each applicable jurisdiction and adjusted for discrete tax items in the period. The following table presents provision for income taxes:

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
	(in thousands, except percentages)
Loss before income tax provision	$	(17,258)		$	(17,896)		$	(16,905)		$	(37,377)
Income tax provision	(3,617)			(1,366)			(3,441)			(2,409)
Effective tax rate	(21.0)		%	(7.6)		%	(20.4)		%	(6.4)		%

The difference between the statutory rate and the Company’s effective tax rate for the three and six months ended June 30, 2025 was primarily due to the BEAT, the Identity Automation acquisition, and valuation allowances on U.S. and UK tax assets. The Tax Cuts and Jobs Act of 2017 introduced the BEAT, which is essentially a minimum tax on certain otherwise deductible payments made by U.S. entities to non-U.S. affiliates. Prior to the first quarter of 2025, the Company was not subject to the BEAT. The difference between the statutory rate and the Company’s effective tax rate for the three and six months ended June 30, 2024 was primarily due to valuation allowances on U.S. and UK tax assets. The effective tax rate for all periods were also impacted by state taxes and earnings realized in foreign jurisdictions.

On July 4, 2025, the OBBB was enacted into law. The OBBB contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense, and accelerated fixed asset depreciation. The Company is still in the process of analyzing the OBBB and its impact on its financial statements and will reflect any impact in the period of enactment.