v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Components of Pre-Tax Loss
The domestic and foreign components of pre-tax loss were as follows:
Year Ended December 31,
202520242023
(in thousands)
Domestic (1)
$(238,993)$(280,877)$(285,330)
Foreign (1)
(212,143)(391,349)(1,009,093)
Loss before income taxes$(451,136)$(672,226)$(1,294,423)
(1)Includes the impact of intercompany charges to foreign affiliates for financing, management fees, and research and development cost sharing, inclusive of stock-based compensation.
Schedule of Components of Income Tax (Benefit) Expense
The components of our income tax (benefit) expense were as follows:
Year Ended December 31,
202520242023
(in thousands)
Current:
Federal$— $5,216 $— 
State4,631 6,811 8,585 
Foreign1,930 13,273 26,727 
Total current income tax expense (benefit)6,561 25,300 35,312 
Deferred:
Federal1,542 1,595 1,267 
State1,061 1,027 1,061 
Foreign189 (2,292)(9,578)
Total deferred income tax expense (benefit)2,792 330 (7,250)
Income tax expense (benefit)$9,353 $25,630 $28,062 
Summary of Reconciliation of Statutory Federal Income Tax Rate
The following is a reconciliation of the U.S. statutory federal income tax rate to our effective tax rate. We adopted ASU 2023-09 prospectively for the fiscal year 2025. Prior period disclosures have not been retrospectively adjusted and may not be comparable to the current period presentation under the new standard.
Year Ended December 31,
2025
AmountPercent
(dollars in thousands)
U.S. federal statutory tax rate$(94,739)21.0 %
Total state and local income taxes (1)
2,506 (0.6)
Foreign tax effects
United Kingdom
Statutory tax rate difference between United Kingdom and United States(1,991)0.4 
Changes in valuation allowances(57,537)12.8 
Other(1,534)0.3 
Singapore
Statutory tax rate difference between Singapore and United States8,588 (1.9)
Changes in valuation allowances37,952 (8.4)
Other2,240 (0.5)
Other foreign jurisdictions2,305 (0.5)
Tax credits
Research and development tax credits(92,642)20.6 
Changes in valuation allowances110,612 (24.5)
Nontaxable or nondeductible items
Stock-based payment awards52,357 (11.6)
Other8,869 (2.0)
Changes in unrecognized tax benefits32,367 (7.2)
Total income tax expense (benefit)$9,353 (2.1)%
(1)State taxes in California contributed to the majority of the tax effect in this category.

The following is a reconciliation of the statutory federal income tax rate to our effective tax rate for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
Tax benefit (expense) computed at the federal statutory rate21.0 %21.0 %
State tax benefit (expense), net of federal benefit (1)
3.9 2.2 
Change in valuation allowance(31.0)(31.5)
Differences between U.S. and foreign tax rates on foreign income(0.3)3.3 
Stock-based compensation(6.4)(7.0)
U.S. federal research & development credit benefit11.0 8.6 
Acquisitions and divestitures(1.0)1.8 
Other benefits (expenses)(1.0)(0.6)
Total income tax benefit (expense)(3.8)%(2.2)%
(1)    Inclusive of state research and development credits.
Schedule of Taxes Paid, Net of Refunds
As a result of our prospective adoption of ASU 2023-09 as of January 1, 2025, the following table presents income taxes paid, net of refunds, disaggregated by jurisdiction in accordance with the new disclosure requirement for the year ended December 31, 2025:
Year Ended
December 31, 2025
(in thousands)
U.S. federal$1,500 
U.S. states and local2,660 
Foreign
Canada1,395 
France5,437 
Germany6,191 
Israel2,950 
Netherlands1,453 
Other5,130 
Total foreign22,556 
Total income taxes paid$26,716 
Summary of Significant Components of Net Deferred Tax Balances
The significant components of net deferred tax balances were as follows:
Year Ended December 31,
20252024
(in thousands)
Deferred tax assets:
Accruals and reserves$23,230 $16,413 
Intangible assets199,140 139,612 
IRC 174 capitalized R&D440,540 598,669 
Stock-based compensation23,686 58,171 
Loss carryforwards2,865,653 2,757,814 
Tax credit carryforwards1,169,703 1,060,486 
Operating lease liabilities
134,620 128,072 
Other97,987 67,958 
Total deferred tax assets4,954,559 4,827,195 
Deferred tax liabilities:
Operating lease right-of-use assets
(113,448)(112,907)
Unrealized gains in securities and investments
(13,544)(18,333)
Other(20,784)(18,445)
Total deferred tax liabilities(147,776)(149,685)
Total net deferred tax assets before valuation allowance4,806,783 4,677,510 
Valuation allowance(4,808,739)(4,677,088)
Net deferred taxes$(1,956)$422 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023:
Year Ended December 31,
202520242023
(in thousands)
Beginning balance of unrecognized tax benefits$562,808 $513,404 $510,669 
Additions for current year tax positions119,255 49,536 46,188 
Additions for prior year tax positions421 1,163 10,171 
Reductions for prior year tax positions(3,935)(622)(16,736)
Changes due to lapse of statute of limitations(10,855)(99)(31,786)
Reductions for settlements with taxing authorities— — (4,927)
Changes due to foreign currency translation adjustments1,858 (574)(175)
Ending balance of unrecognized tax benefits (excluding interest and penalties)669,552 562,808 513,404 
Interest and penalties associated with unrecognized tax benefits1,791 1,918 967 
Ending balance of unrecognized tax benefits (including interest and penalties)$671,343 $564,726 $514,371