Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13. 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, 2025, the Company recorded an income tax provision of $1,192 and $2,836, respectively, which included a discrete tax benefit of $201 and $510, respectively, related to windfall tax benefits for stock-based compensation. The effective tax rate for the three months ended June 30, 2025 was negative 10.3% on a pre-tax loss of $11,622 and for the six months ended June 30, 2025 was negative 9.0% on a pre-tax loss of $31,578.

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 30, 2024 was negative 1.3% on a pre-tax loss of $66,750.

On July 4, 2025, the One Big Beautiful Bill Act was enacted into law. The Company will account for the tax effects of changes in tax law in the period of enactment, which is the third quarter of 2025. The Company is currently evaluating the tax impacts of the law change.

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