Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

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INCOME TAXES
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 14—INCOME TAXES
The Company recorded an income tax expense of $0.6 million and an income tax expense of $0.3 million for the three months ended March 31, 2026 and 2025, respectively. Our effective tax rate was (6.1)% for the three months ended March 31, 2026 compared to (13.7)% for the three months ended March 31, 2025.
The effective tax rate for the three months ended March 31, 2026 and 2025 differed from the U.S. statutory rate of 21% primarily due to the valuation allowance on deferred tax assets, U.S. state taxes, non-US based income taxes, nondeductible items and includes specific costs associated with shortfalls in tax-deductible equity compensation compared to amounts recognized in the financial statements.
In July 2025, U.S. Congress enacted the One Big Beautiful Bill Act (“OBBBA”), which included a range of tax reform measures, including the modification of certain foreign provisions in 2026 originally enacted under the Tax Cuts and Jobs Act. The Company does not expect the changes enacted in OBBBA to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.