v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The components of income (loss) before income taxes were as follows:
Year Ended December 31,
(in millions)202320242025
Domestic$(534)$1,063 $2,086 
Foreign1 1 22 
Income (loss) before income taxes$(533)$1,064 $2,108 
Schedule of Income Tax Provision (Benefit)
The components of the provision for (benefit from) income taxes were as follows:
Year Ended December 31,
(in millions)202320242025
Current:
Federal$5 $16 $22 
State3 6 18 
Foreign— — 4 
Total current tax expense (benefit)8 22 44 
Deferred:
Federal— (333)173 
State— (36)20 
Foreign— — (12)
Total deferred tax expense (benefit)— (369)181 
Total provision for (benefit from) income taxes$8 $(347)$225 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation of statutory federal income tax rate and our effective income tax rate was as follows (in millions, except for percentages):
Year Ended December 31, 2025
Amount
Percent
Federal tax at statutory rate$443 21.0 %
State tax (benefit), net of federal benefit(1)
34 1.6 
Foreign tax effects(12)(0.6)
Effect of cross-border tax laws1 0.1 
Nontaxable or nondeductible items:
Share-based compensation(184)(8.7)
Others
5 0.2 
Tax credits:
Research and development credits(66)(3.1)
Changes in unrecognized tax benefits
— — 
Change in valuation allowance3 0.1 
Other adjustments1 0.1 
Total provision for (benefit from) income taxes
$225 10.7 %
(1) State and local taxes in New York, New Jersey, Pennsylvania and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.
For the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the reconciliation of statutory federal income tax rate and our effective income tax rate was as follows (in percentages):
Year Ended December 31,
20232024
Federal tax at statutory rate21.0 %21.0 %
State tax (benefit), net of federal benefit
(1.9)1.1 
Share-based compensation

(29.7)(3.5)
Research and development credits5.6 (4.8)
Non-deductible regulatory settlements(4.6)(0.7)
Other0.2 0.3 
Change in valuation allowance8.0 (46.0)
Effective tax rate(1.4)%(32.6)%
Schedule of Total Income Taxes Paid (Net of Refunds)
For the year ended December 31, 2025, total income taxes paid (net of refunds) consisted of the following:
Year Ended
December 31,
(in millions)2025
U.S. federal$49 
U.S. state and local45
Foreign1
Total$95 
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities consisted of the following:
Year Ended December 31,
(in millions)
20242025
Deferred tax assets:
Tax credit carryforwards$174 $193 
Research and experimentation expenditure amortization248 122 
Lease liabilities33 52 
Net operating loss carryforwards29 40 
Accruals and other liabilities16 29 
Provision for credit losses16 28 
Share-based compensation16 10 
Other31 41 
Total deferred tax assets563 515 
Deferred tax liabilities:
Deferred customer match incentives(74)(153)
Right of use assets(24)(43)
Depreciation and amortization(6)(31)
Other— (4)
Total deferred tax liabilities(104)(231)
Valuation allowance(88)(105)
Net deferred tax assets$371 $179 
Summary of Valuation Allowance
The reconciliation of the beginning and ending amount of the deferred tax asset valuation allowance was as follows:
Year Ended December 31,
(in millions)202320242025
Balance at beginning of period$607 $574 $88 
Charged/(credited) to net income (loss)(34)(486)6 
Charges utilized/(write-offs)1 — — 
Additions due to acquisition— — 11 
Balance at end of period$574 $88 $105 
Schedule of Unrecognized Tax Benefits Roll Forward
The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
Year Ended December 31,
(in millions)
20242025
Unrecognized benefit - beginning of period$74 $98 
Gross increases - current year tax positions23 35 
Gross increases - prior year tax positions1 1 
Gross decreases - prior year tax positions— — 
Unrecognized benefit - end of period$98 $134