Income Taxes

9 Months Ended

Sep. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes in interim periods is determined using an estimate of the Company’s annual effective tax rate ("ETR"), adjusted for discrete items, if any, that arise during the period. In calculating the provision for interim income taxes, an estimated annual ETR is applied to year-to-date ordinary income. At the end of each interim period, the Company updates its estimate of the annual ETR expected to be applicable for the full fiscal year.

The income tax provision ETR for the three months ended September 30, 2026 and 2025 was -9.23% and -4.63%, respectively. The income tax provision ETR for the nine months ended September 30, 2026 and 2025 was -1.54% and -3.97%, respectively. The decrease in the ETR for the three months ended September 30, 2026 and increase in ETR for the nine months ended September 30, 2026, compared to the same periods in 2025, was primarily due to a decrease in pre-tax book income in the three and nine months ended September 30, 2026 as compared to the income for the same periods in 2025.

The Company's ETR for the nine months ended September 30, 2026 and 2025 remained below the U.S. federal statutory rate primarily due to the impact of the full valuation allowance. As of September 30, 2026, the Company maintains a valuation allowance against certain deferred tax assets, primarily related to net operating loss carryforwards and other deductible temporary differences. The realizability of deferred tax assets is assessed each reporting period based on all available positive and negative evidence.

For the nine months ended September 30, 2026, the Company incurred a pretax loss. While the Company is presently in a cumulative three-year income position, as some significant losses incurred in prior years are no longer included in the calculation, management currently forecasts a loss in the subsequent quarter and a cumulative pretax loss for the full fiscal year. Improved operating performance expected in future periods represents positive evidence that may, if sustained, support the realization of certain deferred tax assets.

While the positive evidence has not yet outweighed the historical negative evidence as of September 30, 2026, achievement of forecasted results could result in a partial or full release of the valuation allowance in a future interim period. Any such release, if recognized, could materially affect income tax expense and the effective tax rate.

As of September 30, 2026 and December 31,2025, the Company had no uncertain tax positions or interest and penalties accrued related to income taxes.