Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's income tax (benefit) provision recognized for the three months ended March 31, 2025 and 2024 is as follows (in thousands, except percentages):

	Three Months Ended March 31,
	2025			2024
Income tax (benefit) provision	$	(10,102)		$	12,582
Effective tax rate	(46.5)		%	(15.6)		%

The Company accrues for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate for the three months ended March 31, 2025 is different than the statutory federal tax rate primarily due to the valuation allowance in the United States and the excess tax benefits related to equity compensation, foreign derived intangible income deduction and U.S. research and development credits, which results in current tax benefit. This is offset by the current tax expense from the capitalization of research and development expenditures under Section 174 of the Internal Revenue Code.

The effective tax rate for the three months ended March 31, 2024 is different than the statutory federal tax rate primarily due to the valuation allowance in the United States and the capitalization of research and development expenditures under Section 174 of the Internal Revenue Code, which results in current tax expense. This is offset by benefits from the U.S. research and development credits.