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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company's loss before income taxes was taxed as follows (in thousands):
Year Ended December 31,
202520242023
Domestic
$(747,237)$(276,930)$(176,423)
Foreign
2,125 1,799 1,890 
Total loss before income taxes
$(745,112)$(275,131)$(174,533)

The following table summarizes the components of the Company’s provision for income taxes (in thousands):
Year Ended December 31,
202520242023
Current:
Federal$— $— $29 
State— 106 63 
Foreign518 644 305 
Total current provision for income taxes$518 $750 $397 
Deferred:
Federal$— $— $— 
State— — — 
Foreign238 (236)633 
Total deferred provision (benefit) for income taxes238 (236)633 
Provision for income taxes$756 $514 $1,030 
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective U.S. federal income tax rate is as follows:
Year Ended December 31,
202520242023
Income taxes computed at federal statutory rate21.0%21.0%21.0%
State taxes, net of federal benefit1.6%2.8%2.2%
Other permanent differences(1.3%)(1.1%)(1.4%)
Prior year credit true-up—%1.1%(4.5%)
Loss on issuance of convertible preferred stock
(10.7%)—%—%
Credits1.1%2.1%2.3%
Change in valuation allowance(11.8%)(26.1%)(20.2%)
Effective income tax rate(0.1%)(0.2%)(0.6%)
The Company’s deferred tax assets and liabilities consist of the following (in thousands):
As of December 31,
20252024
Deferred tax assets:
Net operating losses$129,985 $90,330 
Tax credits29,707 22,046 
Stock-based compensation3,847 2,046 
Lease liabilities5,271 8,294 
Reserves— 379 
Capitalized research and development expenses127,402 90,202 
Accruals and other temporary differences4,575 3,000 
Total deferred tax assets300,787 216,297 
Valuation allowance
(279,370)(191,734)
Total deferred tax assets, net of valuation allowance
$21,417 $24,563 
Deferred tax liabilities:
Depreciation$(17,106)$(16,904)
Right-of-use asset(4,366)(7,476)
Total deferred tax liabilities
(21,472)(24,380)
Net deferred tax (liabilities) assets$(55)$183 
The Company has recorded net deferred tax assets in other non-current assets and net deferred tax liabilities in other liabilities.
As of December 31, 2025, the Company has deferred tax assets primarily related to U.S. federal and state NOL carryforwards of approximately $110,862 and $19,123, respectively, which carryforward indefinitely for U.S. federal purposes and begin to expire in 2030 for state purposes. As of December 31, 2024, the Company had deferred tax assets primarily related to U.S. federal and state NOL carryforwards of approximately $76,592 and $13,738, respectively. The Company has established a full valuation allowance on the U.S. net deferred tax assets as of December 31, 2025 and 2024.
Activity in the deferred tax assets valuation allowance is summarized as follows (in thousands):
As of December 31, 2023$120,116 
Additions71,618 
Reductions/charges
— 
As of December 31, 2024$191,734 
Additions87,636 
Reductions/charges
— 
As of December 31, 2025$279,370 
As of December 31, 2025 and 2024, the Company had U.S. federal research and development tax credit carryforwards of approximately $25,269 and $19,043, respectively, which begin to expire in 2039. As of December 31, 2025 and 2024, the Company had state research and development tax credit carryforwards of approximately $4,311 and $2,858, respectively, which begin to expire in 2032. As of December 31, 2025 and 2024, the Company had foreign federal research and development tax credit carryforwards of approximately $127 and $144, respectively, which begin to expire in 2043.
The Company’s ability to utilize the NOLs and tax credit carryforwards in the future may be subject to restrictions in the event of past or future ownership changes, as defined in Sections 382 and 383 of the U.S. Internal Revenue Code of 1986, as amended, and similarly restricting state or foreign tax laws, or changes to such laws.
The Company files federal and state income tax returns in the United States as well as tax returns in certain foreign jurisdictions. All tax years since incorporation remain open to examination by the major taxing jurisdictions (U.S. federal, state and foreign) to which the Company is subject. Carryforward attributes generated in years past may still be adjusted upon examination by the Internal Revenue Service (“IRS”) or other authorities if they have, or will be, used in a future period. As of December 31, 2025, the Company is not under examination by the IRS or any other jurisdictions for any tax year. Subsequent to December 31, 2025, the Company was notified that it is under examination for 2024 for a foreign jurisdiction.
The Company evaluates uncertain tax positions on an annual basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. As of December 31, 2025, the Company had no recorded liabilities for uncertain tax positions.
The Company permanently reinvests the earnings of its foreign subsidiaries and therefore, does not provide for taxes that could result from the distributions of those earnings to the United States.
On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), was signed into law. Changes to corporate income tax as a result of the OBBBA include the extension and modification of many provisions of the TCJA. There was no material impact to the Company's 2025 tax rate as a result of the OBBBA.