Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

6. INCOME TAXES

On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed 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's estimated annual effective tax rate for the nine months ended September 30, 2025 includes the estimated impact of the OBBB. The Company expects favorable cash impacts in 2025 as a result of certain accelerated tax deductions. The Company will continue to evaluate the impact of the OBBB on its income taxes.

The Company recognized an income tax provision of $15.4 million and $8.9 million for the three months ended September 30, 2025 and 2024, respectively. The income tax provision for the three months ended September 30, 2025 was primarily due to the Company's pre-tax book income, as well as the tax impact related to stock-based compensation expense, partially offset by the tax impact related to estimated research and development credits. The income tax provision for the three months ended September 30, 2024 was primarily due to the Company's pre-tax book income.

The Company recognized an income tax benefit of $5.1 million and an income tax provision of $9.0 million for the nine months ended September 30, 2025 and 2024, respectively. The income tax benefit for the nine months ended September 30, 2025 was primarily due to the Company's pre-tax book loss, as well as the tax rate impact of non-deductible stock-based compensation expense. The income tax provision for the nine months ended September 30, 2024 was primarily due to the Company's pre-tax book income.

The Company made income tax payments of $0.3 million and $11.6 million during the three months ended September 30, 2025 and 2024, respectively. The Company received refunds of $0.7 million from various states during the three months ended September 30, 2025. The Company received negligible refunds from various states during the three months ended September 30, 2024.

The Company made income tax payments of $27.6 million and $42.1 million during the nine months ended September 30, 2025 and 2024, respectively. The Company received refunds of $1.4 million from various states during the nine months ended September 30, 2025. Refunds received from various states were negligible during the nine months ended September 30, 2024.

As of September 30, 2025, unrecognized tax benefits were materially consistent with the amount as of December 31, 2024. The Company believes its liability for unrecognized tax benefits, excluding interest and penalties, will not materially change over the following twelve months.