Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The following is a geographical breakdown of income (loss) before income taxes:


	Year Ended December 31,
	2024		2023		2022

	(In thousands)
Domestic	$	19,757	$	(28,105)	$	369
Foreign	5,836		7,997		(2,822)
Income (loss) before income taxes	$	25,593	$	(20,108)	$	(2,453)

The provision for (benefit from) income taxes consisted of the following:


	Year Ended December 31,
	2024		2023		2022

	(In thousands)
Current:
Federal	$	21,805	$	8,556	$	17,973
State	4,964		1,471		8,024
Foreign	846		840		192
Total current income taxes	27,615		10,867		26,189
Deferred:
Federal	(14,416)		(8,002)		(25,753)
State	115		(2,261)		(7,976)
Foreign	(252)		(341)		(561)
Total deferred income taxes	(14,553)		(10,604)		(34,290)
Total provision for (benefit from) income taxes	$	13,062	$	263	$	(8,101)

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:


	Year Ended December 31,
	2024		2023		2022

	(In thousands)
U.S. federal tax provision at statutory rate	$	5,375	$	(4,223)	$	(515)
State taxes	4,037		(624)		38
Section 162(m) limitation	531		1,286		3,071
Non-deductible expenses	510		531		134

Uncertain tax positions	(881)		(620)		(776)
Share-based compensation tax expense (benefit)	6,078		7,384		(3,264)
Research tax credits	(3,531)		(4,587)		(6,948)
Gain on extinguishment of debt	477		—		—

Foreign-derived intangible income deduction	(229)		(325)		(753)

Global intangible low-taxed income inclusion	826		—		960
Foreign rate differential	122		219		186

Foreign branch taxes	(7)		6		(51)

Transaction cost	—		—		68
Provision to return true up	(244)		697		(84)
State rate true up	—		528		(135)
Other	(2)		(9)		(32)
Total provision for (benefit from) income taxes	$	13,062	$	263	$	(8,101)

Significant components of the Company’s deferred tax assets (liabilities) were as follows:


	December 31,
	2024		2023

	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	23,550	$	11,343
Share-based compensation	9,915		11,763
Inventory-related items	6,055		5,136
Tax credit carryforwards	12,843		12,505
Reserves and accruals	8,384		5,660
Loss carryforwards	6,493		7,802
Lease liability	10,615		11,457
Convertible debt	11,276		9,649
Capitalized research and development	49,380		41,635
Other, net	1,580		591
Gross deferred tax assets	140,091		117,541
Valuation allowance	—		—
Total net deferred tax assets	140,091		117,541

Intangibles	(27,057)		(30,366)
Depreciation and amortization	(35,759)		(35,402)

Prepaid expenses	(14,466)		(13,858)
Right-of-use assets	(6,448)		(6,626)
Other, net	—		(8)
Total deferred tax liabilities	(83,730)		(86,260)

Net deferred tax assets	$	56,361	$	31,281

The following table summarizes the aggregate change in the balance of gross unrecognized tax benefit, which excludes interest and penalties:


	(In thousands)
Balance as of December 31, 2021	$	8,961
Increases related to tax positions taken during a prior period	3
Decreases related to tax positions taken during the prior period	(59)
Increases related to tax positions taken during the current period	1,629
Decreases related to expiration of statute of limitations	(1,238)
Balance as of December 31, 2022	9,296
Increases related to tax positions taken during a prior period	750
Decreases related to tax positions taken during the prior period	(161)
Increases related to tax positions taken during the current period	1,566
Decreases related to expiration of statute of limitations	(703)
Balance as of December 31, 2023	10,748
Increases related to tax positions taken during a prior period	4
Decreases related to tax positions taken during the prior period	(138)
Increases related to tax positions taken during the current period	1,163
Decreases related to settlements	(333)
Decreases related to expiration of statute of limitations	(952)
Balance as of December 31, 2024	$	10,492