v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Geographical Breakdown of Income (Loss) before Income Taxes
For the years ended December 31, 2025, 2024, and 2023, the geographical breakdown of our income (loss) before income taxes is as follows:
Year ended December 31,
202520242023
(in thousands)
Domestic income (loss)$514,826 $(493,371)$(92,627)
Foreign income (loss)13,864 8,164 5,604 
Income (loss) before income taxes$528,690 $(485,207)$(87,023)
Schedule of Components of Income Tax Expense (Benefit)
For the years ended December 31, 2025, 2024, and 2023, income tax expense (benefit) consisted of the following:
Year ended December 31,
202520242023
(in thousands)
Current income tax expense (benefit):
Federal$— $(141)$1,290 
State889 474 1,133 
Foreign2,707 851 1,468 
Total current income tax expense (benefit)3,596 1,184 3,891 
Deferred income tax expense (benefit):
Federal— (237)— 
Foreign(4,627)(1,878)(90)
Total deferred income tax expense (benefit)(4,627)(2,115)(90)
Total income tax expense (benefit):
Federal
— (378)1,290 
State
889 474 1,133 
Foreign
(1,920)(1,027)1,378 
Total income tax expense (benefit)$(1,031)$(931)$3,801 
Reconciliation of Effective Tax Rate From Statutory Federal Rate
For the year ended December 31, 2025, following the adoption of ASU 2023-09, our tax provision and effective tax rate differed from the statutory federal rate as follows:
Year ended December 31, 2025
Amount
Percent
(in thousands, except percentages)
Provision for income taxes at statutory federal income tax rate$111,025 21.0 %
State income taxes, net of federal income tax effect(1)
955 0.2 
Foreign tax effects:
United Kingdom:
Stock-based compensation(5,851)(1.1)
Other(698)(0.1)
Other foreign jurisdictions70 — 
Tax credits:
Research and development credits(57,630)(10.9)
Change in valuation allowance172,418 32.6 
Non-taxable or non-deductible items:
Stock-based compensation(285,955)(54.1)
Non-deductible compensation69,402 13.1 
Other non-taxable or non-deductible items1,299 0.3 
Other reconciling items:
Return to provision true-ups(6,317)(1.2)
Other251 — 
Total tax provision and effective tax rate$(1,031)(0.2)%
______________
(1)State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
For the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, our effective tax rate, as a percentage of pre-tax income (loss), differed from the statutory federal rate as follows:
Year ended December 31,
20242023
Statutory federal income tax rate21.0 %21.0 %
State income taxes, net of federal benefit5.3 1.2 
Non-deductible compensation
(14.0)— 
Stock-based compensation44.4 3.9 
Research and development credits14.6 13.5 
Change in valuation allowance(71.0)(41.1)
Other(0.2)(2.9)
Effective tax rate0.1 %(4.4)%
Schedule of Major Components of Deferred Tax Assets and Liabilities The major components of deferred tax assets and liabilities were as follows:
December 31,
2025		December 31,
2024
(in thousands)
Deferred tax assets:
Net operating loss carryforwards$404,212 $149,735 
Stock-based compensation16,920 28,586 
Lease liability5,634 6,206 
Capitalized research and development costs156,429 268,232 
Research and development credits199,017 124,116 
Other12,103 13,351 
Gross deferred tax assets794,315 590,226 
Valuation allowance(779,030)(572,894)
Total deferred tax assets, net of valuation allowance15,285 17,332 
Deferred tax liabilities:
Right-of-use asset(4,941)(5,436)
Acquired intangibles(3,556)(9,727)
Total deferred tax liabilities(8,497)(15,163)
Net deferred tax assets (liabilities)$6,788 $2,169 
Summary of Activity Related to Gross Unrecognized Tax Benefits
The following table summarizes the activity related to our gross unrecognized tax benefits during the years ended December 31, 2025, 2024, and 2023:
Year ended December 31,
202520242023
(in thousands)
Beginning balance of unrecognized tax benefits$43,861 $19,236 $16,428 
Increases/(decreases) related to prior year tax positions 7,434 1,444 (1,750)
Increases/(decreases) related to current year tax positions 19,115 23,181 4,558 
Ending balance of unrecognized tax benefits$70,410 $43,861 $19,236