Lantheus Holdings, Inc. Income Taxes Disclosure

5. Income Taxes

The table below provides the updated requirements of ASU 2023-09 for 2025. See Note 2, “Summary of Significant Accounting Policies - Recent Accounting Pronouncements” for additional detail on the adoption of ASU 2023-09.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted. The OBBBA provides for significant U.S. tax law changes, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. These provisions did not have a material impact on the Company’s effective income tax rate for 2025. The change in the Company’s deferred tax balances for 2025 was primarily related to the acquisitions of Life Molecular and Evergreen and the expensing of previously capitalized R&D expenses, for tax purposes, under the OBBBA.

The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realizability of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more-likely-than-not realizable, the Company evaluated all available positive and negative evidence. As of December 31, 2025 and 2024, the Company maintains a valuation allowance of $18.7 million and $15.6 million, respectively. The amounts in 2025 and 2024 primarily relate to unrealized losses incurred during each year on the Company’s investment in equity securities and to net deferred tax assets of certain of the Company’s foreign subsidiaries.

Utilization of net operating loss carryforwards and R&D credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that could occur in the future in accordance with Section 382 of the Internal Revenue Code of 1986 (“IRC Section 382”) and with Section 383 of the Internal Revenue Code of 1986, as well as similar state provisions. These ownership changes may limit the amount of net operating loss carryforwards and R&D credit carryforwards that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change, as defined by IRC Section 382, results from transactions which impact the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period.

At December 31, 2025, the Company had U.S. federal net operating loss carryforwards of approximately $281.4 million, $108.2 million of which will expire between 2029 and 2037, and $173.2 million of which can be carried forward indefinitely. The Company has foreign net operating losses of $76.3 million, $3.9 million of which expire between 2032 and 2035 and $72.4 million of which can be carried forward indefinitely. The Company’s state net operating losses are $9.2 million on a tax-effected basis, the majority of which will expire between 2032 and 2045. The Company has state research credit carryforwards of $3.4 million, which will expire between 2030 and 2040.

The Company’s U.S. federal income tax returns are subject to examination for three years after the filing date of the return. The state and foreign income tax returns are subject to examination for periods varying from three to six years after filing. The Company is currently undergoing tax examination in the United Kingdom for tax years 2018 to 2021 and in Germany for tax years 2020 to 2022.

As of December 31, 2025 and 2024, total liabilities for uncertain tax positions, including interest and penalties, were $37.6 million and $9.4 million, respectively, consisting of uncertain tax positions of $35.5 million and $7.6 million, respectively, interest accruals of $2.1 million and $1.8 million, respectively, and no penalty accruals as of December 31, 2025 and 2024. The increase in uncertain tax positions during the year ended December 31, 2025 was primarily related to tax uncertainties recorded in purchase accounting related to the LMI Acquisition. As of December 31, 2025, $29.6 million and $8.0 million of these liabilities were recorded in other long-term liabilities and as a reduction of deferred tax assets, respectively. As of December 31, 2024, $1.4 million, $7.3 million and $0.7 million of these liabilities were recorded in current liabilities, other long-term liabilities, and as a reduction of deferred tax assets, respectively. As of December 31, 2025, the Company has $32.0 million of unrecognized tax benefits which would impact the effective tax rate if recognized.