Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Income Before Income Tax, Domestic and Foreign
The domestic and international components of loss before income taxes are presented as follows:
Year Ended December 31,
2025 2024 2023
(in thousands)
Domestic $ (121,898) $ (74,358) $ (85,032)
Foreign (18,996) (164,359) 21,222 
Loss before income taxes $ (140,894) $ (238,717) $ (63,810)
Summary of Income Taxes Components of Income Tax Provision (Benefit)
The income tax provision (benefit) consists of the following:
Year Ended December 31,
2025 2024 2023
(in thousands)
Current:
Federal $ 4,816  $ 893  $ 3,827 
State 5  16  65 
Foreign (436) 4,739  9,896 
Total current 4,385  5,648  13,788 
Deferred:
Federal (13,689) (10,781) (371)
State (3,113) (3,536) (4,942)
Foreign 4,274  (10,889) (6,910)
Change in valuation allowance 3,930  26,039  7,772 
Total deferred (8,598) 833  (4,451)
Total income tax provision (benefit) $ (4,213) $ 6,481  $ 9,337 
Summary of Effective Income Tax Rate Reconciliation
The actual income tax provision (benefit) differs from the amount computed using the federal statutory rate as follows:
Year Ended December 31,
2024 2023
(in thousands)
Provision (benefit) at statutory rate $ (50,135) $ (13,288)
State income taxes (net of federal benefit) 10  7 
Research and development credits (7,720) (10,066)
Foreign rate differential 28,939  (375)
Stock compensation 7,855  2,213 
Foreign income inclusion 558  27,678 
Provision to return 381  (4,741)
Uncertain tax positions 300  1,272 
Permanent and other 812  (377)
Foreign unremitted earnings (558) (758)
Valuation allowance 26,039  7,772 
Total income tax provision $ 6,481  $ 9,337 
The actual income tax provision (benefit) differs from the amount computed using the federal statutory rate as follows:
Year Ended December 31, 2025
Amount
(in thousands)		 Percent
U.S. federal statutory tax rate $ (29,592) 21.0  %
State and local income taxes, net of federal income tax effect(1) 8  —  %
Foreign tax effects
   Singapore
      Statutory tax rate difference between Singapore and United States 5,773  (4.1) %
      Changes in valuation allowance (2,861) 2.0  %
      Withholding taxes 1,279  (0.9) %
      Other 1,385  (1.0) %
   Spain
      Statutory tax rate difference between Spain and United States 266  (0.2) %
      Changes in valuation allowance (2,092) 1.5  %
      Tax credits 1,971  (1.4) %
      Nontaxable or nondeductible items (1,904) 1.4  %
   Other foreign jurisdictions 3,296  (2.3) %
Tax credits
   Research and development tax credits (136) 0.1  %
Changes in valuation allowance 5,885  (4.2) %
Nontaxable or nondeductible items
   Equity compensation 8,475  (6.0) %
   Nondeductible compensation under Section 162(m) 3,011  (2.1) %
   Other 743  (0.5) %
Changes in unrecognized tax benefits 144  (0.1) %
Other adjustments 136  (0.1) %
Effective tax rate $ (4,213) 3.0  %
__________________
(1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
Summary of Components of Deferred Income Tax Asset
The components of the deferred income tax assets are as follows:
December 31,
2025 2024
(in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 53,689  $ 39,258 
Research and development credits 86,074  85,659 
Foreign tax credit carryforwards 527  1,578 
Accrued expenses and other 14,937  17,727 
Lease obligation 1,718  2,446 
Accrued compensation 6,898  2,991 
Stock-based compensation 12,327  11,923 
Intangible assets 7,740  9,698 
183,910  171,280 
Less valuation allowance (104,525) (100,131)
79,385  71,149 
Deferred tax liabilities:
Fixed assets (572) (497)
Leased right-of-use assets (1,244) (1,749)
Pension liability (426) (355)
Net deferred tax assets $ 77,143  $ 68,548 
Summary of Unrecognized Tax Benefits Roll Forward
The following table summarizes the changes to the unrecognized tax benefits during 2025, 2024 and 2023:
Amount
(in thousands)
Balance as of December 31, 2022 $ 67,134 
Additions based on tax positions related to the current year 3,032 
Decreases based on tax positions of prior year (1,528)
Balance as of December 31, 2023 68,638 
Additions based on tax positions related to the current year 2,277 
Decreases based on tax positions of prior year (2,032)
Balance as of December 31, 2024 68,883 
Additions based on tax positions related to the current year 2,039 
Decreases based on tax positions of prior year (1,552)
Balance as of December 31, 2025 $ 69,370 
Schedule of Cash Flow, Supplemental Disclosures
The following tables present cash paid for income taxes, net of refunds received, by jurisdiction:
Year Ended December 31, 2025
Amount
(in thousands)		 Percent
United States
   Federal $ —  —  %
   State 154  3  %
Foreign 5,638  97  %
Total $ 5,792  100  %
Year Ended December 31, 2025
Amount
(in thousands)		 Percent
Israel $ 1,792  31  %
India 1,431  25  %
Singapore 1,386  24  %
Germany 556  10  %
Rest of the world 627  11  %
Total $ 5,792  100  %