Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's income tax (benefit) provision recognized for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands, except percentages):

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Income tax (benefit) provision	$	(560)		$	(6,537)		$	(10,662)		$	6,045
Effective tax rate	(1.1)		%	46.4		%	(14.7)		%	(6.4)		%

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 June 30, 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 benefits. 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 June 30, 2024 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 benefits. 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 six months ended June 30, 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 result in current tax benefits. 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 six months ended June 30, 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 a current tax expense. This is offset by excess tax benefits related to equity compensation, foreign derived intangible income deduction and U.S. research and development credits.

On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (“OBBBA”), introducing significant amendments to the U.S. Internal Revenue Code. The OBBBA contains several changes to corporate taxation including permanent elimination of the requirement to capitalize and amortize U.S. based research and experimental expenditures over five years, making these expenditures at the Company’s election, fully deductible in the period incurred. OBBBA also permanently extends the full expensing of qualifying assets through 100% bonus depreciation for assets placed in service after January 19, 2025. The Company is currently evaluating the implications of the OBBBA.