Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

v3.26.1
INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 14—INCOME TAXES
The Company recorded an income tax expense of $1.5 million and an income tax expense of $0.2 million for the three months ended June 30, 2026 and 2025, respectively. Our effective tax rate was (12.6)% for the three months ended June 30, 2026 compared to (7.6)% for the three months ended June 30, 2025.
The Company recorded an income tax expense of $2.1 million and an income tax expense of $0.6 million for the six months ended June 30, 2026 and 2025, respectively. Our effective tax rate was (9.6)% for the six months ended June 30, 2026 compared to (10.6)% for the six months ended June 30, 2025.
The effective tax rate for the three and six months ended June 30, 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, the U.S. Congress enacted the One Big Beautiful Bill Act (“OBBBA”), which included a range of tax reform measures, including modifications effective in 2026 to certain international tax provisions originally enacted under the Tax Cuts and Jobs Act. The Company does not expect the changes enacted under OBBBA to materially affect its effective tax rate or cash flows in the current fiscal year.