Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

The Company’s income tax provision consists of federal, foreign, and state taxes necessary to align the Company’s year-to-date tax provision with the annual effective rate that it expects to achieve for the full year. At each interim period, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary.

For the three and six months ended June 30, 2024, the Company recorded an income tax provision of $486 and $882, respectively. The effective tax rate for the three months ended June 30, 2024 was negative 1.8% on a pre-tax loss of $27,580 and for the six months ended June 20, 2024 was negative 1.3% on a pre-tax loss of $66,750.

For the three and six months ended June 30, 2023, the Company recorded an income tax provision of $309 and $507, respectively. The effective tax rate for the three months ended June 30, 2023 was negative 0.6% on a pre-tax loss of $51,850 and for the six months ended June 30, 2023 was negative 0.5% on a pre-tax loss of $108,607.

The effective tax rate differs from the U.S. statutory rate primarily related to limited tax benefit recorded for U.S. operating losses as the Company maintains a full valuation allowance against its U.S. deferred tax assets.