COMSCORE, INC.SCOR

COMSCORE, INC. Income Taxes Disclosure

10-KFiled Mar 26, 20269 min read
Income Taxes
The components of loss before income tax provision are as follows:
Years Ended December 31,
(In thousands)202520242023
Domestic$(10,777)$(61,420)$(79,078)
Foreign2,701 2,096 1,250 
Total$(8,076)$(59,324)$(77,828)
Income tax provision is as follows:
 Years Ended December 31,
(In thousands)202520242023
Current:
Federal$(51)$— $— 
State(30)35 259 
Foreign1,191 1,730 1,309 
Total$1,110 $1,765 $1,568 
Deferred:
Federal$125 $(60)$(128)
State979 (359)(687)
Foreign(286)(422)780 
Total$818 $(841)$(35)
Income tax provision$1,928 $924 $1,533 
A reconciliation of the statutory U.S. income tax rate to the effective income tax rate for the year ended December 31, 2025 is as follows:
 Year Ended December 31, 2025
(In thousands)AmountPercentage
Statutory federal tax rate$(1,696)21.0 %
State taxes (1)
906 (11.2)%
Foreign tax effects
Brazil
GAAP to statutory adjustment167 (2.1)%
Other66 (0.8)%
Chile
Deductible inflation adjustment(137)1.7 %
Foreign tax credit(99)1.2 %
FX revaluation(284)3.5 %
Other74 (0.9)%
France
GAAP to statutory adjustment(106)1.3 %
Other10 (0.1)%
India
GAAP to statutory adjustment118 (1.5)%
Miscellaneous non deductible expenses129 (1.6)%
Other15 (0.2)%
Netherlands
FX revaluation614 (7.6)%
Withholding taxes88 (1.1)%
Other(75)0.9 %
Norway
Valuation allowance(85)1.1 %
FX revaluation94 (1.2)%
Other20 (0.2)%
Other foreign jurisdictions(48)0.6 %
Effect of cross-border tax laws
Global intangible low-taxed income172 (2.1)%
Subpart F income172 (2.1)%
Other10 (0.1)%
Tax credits94 (1.2)%
Other nondeductible/nontaxable items125 (1.6)%
Change in valuation allowance859 (10.6)%
Other adjustments
NOL adjustments104 (1.3)%
Stock compensation934 (11.6)%
Other166 (2.0)%
Worldwide changes in unrecognized tax benefits(479)5.9 %
Total$1,928 (23.9)%
(1) State taxes in Virginia and California comprised greater than 50% of the tax effect in this category.
A reconciliation of the statutory U.S. income tax rate to the effective income tax rate for the years ended December 31, 2024 and 2023 is as follows:
 Years Ended December 31,
 20242023
Statutory federal tax rate21.0 %21.0 %
State taxes0.5 %0.4 %
Other nondeductible/nontaxable items(0.8)%(0.5)%
Foreign rate differences(0.4)%(0.3)%
Change in valuation allowance(3.9)%(4.9)%
Stock compensation(0.3)%(0.1)%
Goodwill impairment(17.6)%(16.6)%
Other adjustments— %(1.0)%
Uncertain tax positions(0.1)%— %
Effective tax rate(1.6)%(2.0)%
Income Tax Provision
The Company recognized income tax expense of $1.9 million during the year ended December 31, 2025, which is comprised of current tax expense of $1.1 million primarily related to foreign taxes and deferred tax expense of $0.8 million primarily related to U.S. federal and state taxes. Included in total tax expense is income tax benefit of $8.0 million for a decrease in the valuation allowance recorded against the Company's deferred tax assets to offset the tax expense of the Company's operating losses in the U.S. and certain foreign jurisdictions. Income tax expense of $2.4 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, local statutory to U.S. GAAP adjustments and other nondeductible expenses. These tax adjustments, along with state and local taxes, are the primary drivers of the annual effective income tax rate.
The Company recognized income tax expense of $0.9 million during the year ended December 31, 2024, which is comprised of current tax expense of $1.8 million related to foreign taxes and state taxes and deferred tax benefit of $0.8 million related to both U.S. and foreign taxes. Included in tax expense is an income tax adjustment of $17.2 million related to the impairment of goodwill. Also included in total tax expense is income tax benefit of $2.5 million for a decrease in the valuation allowance recorded against the Company's deferred tax assets to offset the tax expense of the Company's operating losses in the U.S. and certain foreign jurisdictions. Income tax expense of $0.9 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, local statutory to U.S. GAAP adjustments and other nondeductible expenses. These tax adjustments, along with state and local taxes, are the primary drivers of the annual effective income tax rate.
The Company recognized income tax expense of $1.5 million during the year ended December 31, 2023, which is primarily comprised of current tax expense of $1.6 million related to foreign taxes and state taxes. Included in tax expense is an income tax adjustment of $20.9 million related to the impairment of goodwill. Also included in total tax expense is income tax expense of $15.1 million for an increase in the valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. Income tax expense of $0.7 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, executive compensation and other nondeductible expenses. These tax adjustments, along with state and local taxes, are the primary drivers of the annual effective income tax rate.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The components of net deferred income taxes are as follows:
As of December 31,
 (In thousands)
20252024
Deferred tax assets:
Net operating loss carryforwards$177,984 $176,369 
Lease liability4,925 7,797 
Deferred revenues13,766 17,184 
Deferred compensation4,316 5,165 
Accrued salaries and benefits1,345 451 
Tax credits2,373 2,480 
Tax contingencies826 816 
Allowance for doubtful accounts96 103 
Capital loss carryforwards— 108 
Property and equipment205 4,735 
Intangible assets3,588 3,608 
Capitalized research and development expense33,614 34,815 
Sec. 163(j) interest limitation carryforward2,053 — 
Other3,069 2,523 
Gross deferred tax assets$248,160 $256,154 
Valuation allowance(239,900)(247,772)
Net deferred tax assets$8,260 $8,382 
Deferred tax liabilities:
Lease asset$(2,421)$(3,964)
Subpart F income recapture— (1,411)
Goodwill(4,682)(1,274)
Total deferred tax liabilities$(7,103)$(6,649)
Net deferred tax asset$1,157 $1,733 
The Company made cash tax payments, net of (refunds) received as follows:
Year Ended
(In thousands)December 31, 2025
U.S federal$(51)
U.S. state and local(46)
Foreign
Brazil348 
Canada(175)
Chile82 
India425 
Netherlands153 
Sweden(106)
United Kingdom104 
Other34 
Total$768 
Tax Valuation Allowance
As of December 31, 2025 and 2024, the Company had a valuation allowance of $239.9 million and $247.8 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Company's U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The decrease in the valuation allowance during 2025 is primarily due to the decrease in U.S. deferred revenue, lease liability and property and equipment, net of the increase in U.S. net operating loss carryforwards and Sec. 163(j) interest limitation carryforward. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of
available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized, the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance. It is possible that such reduction of or addition to the Company's valuation allowance may have a material impact on the Company's results from operations.
A summary of the deferred tax asset valuation allowance is as follows:
As of December 31,
(In thousands)20252024
Beginning Balance
$247,772 $251,253 
Additions from continuing operations137 121 
Reductions(8,009)(3,602)
Ending Balance$239,900 $247,772 
Net Operating Loss and Credit Carryforwards
Under the provisions of Internal Revenue Code Section 382, certain substantial changes in the Company's ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and taxes payable. During 2023, the Company concluded that the Transactions triggered an ownership change on May 10, 2021, and as a result, all of its U.S. net operating loss carryforwards are subject to an annual limitation under Section 382. Additionally, despite the net operating loss carryforwards, the Company may have a future income tax liability due to foreign income tax or state income tax requirements.
As of December 31, 2025, the Company had U.S. federal and state net operating loss carryforwards for tax purposes of $572.6 million and $1.4 billion, respectively. The Company estimates that $469.8 million of its U.S. federal and $1.3 billion of its state net operating loss carryforwards are utilizable given the annual limitations under Section 382. The Company's net operating loss carryforwards began to expire in 2026 for federal and state income tax purposes. The federal and certain state net operating losses generated after December 31, 2017 have an indefinite carryforward period. As of December 31, 2025, the Company had an aggregate net operating loss carryforward for tax purposes related to its foreign subsidiaries of $5.6 million, which begins to expire in 2028.
As of December 31, 2025, the Company had research and development credit carryforwards of $3.0 million which begin to expire in 2026.
Foreign Undistributed Earnings
As of December 31, 2025, the Company has certain foreign subsidiaries with accumulated undistributed earnings. The TCJA allows for a dividend received deduction resulting in no material U.S. federal income tax upon repatriation of these earnings. The Company intends to indefinitely reinvest these earnings, as well as future earnings from its foreign subsidiaries, to fund its international operations and therefore has not accrued any related foreign withholding taxes or state income taxes.
Uncertain Tax Positions
For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefits determined on a cumulative probability basis, which are more likely than not to be realized upon ultimate settlement in the financial statements. The Company has unrecognized tax benefits, which are tax benefits related to uncertain tax positions which have been or will be reflected in income tax filings that have not been recognized in the financial statements due to potential adjustments by taxing authorities in the applicable jurisdictions. The Company's liability for unrecognized tax benefits, which include interest and penalties, was $0.5 million and $0.8 million for the years ended December 31, 2025 and 2024, respectively. The remaining unrecognized tax benefits have reduced deferred tax balances. The amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate is $1.6 million, $1.8 million, and $2.0 million as of December 31, 2025, 2024, and 2023, respectively. The amount of unrecognized tax benefits includes the federal tax benefit of state deductions.
Changes in the Company's unrecognized income tax benefits are as follows:
As of December 31,
 (In thousands)
202520242023
Beginning balance$1,856 $2,043 $2,026 
Increase related to tax positions of the current year65 49 39 
Increase related to tax positions of prior years
9 — 10 
Decrease related to tax positions of prior years(221)(29)(7)
Decrease due to lapse in statutes of limitations(101)(207)(25)
Ending balance$1,608 $1,856 $2,043 
The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2025 and 2024, accrued interest and penalties on unrecognized tax benefits were $0.1 million and $0.2 million, respectively. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. For income tax returns filed by
the Company, the Company is generally no longer subject to U.S. federal examinations by tax authorities for years prior to 2022 or state and local tax examinations by tax authorities for years prior to 2021. The Company is no longer subject to examination by tax authorities in the Netherlands for years prior to 2018. However, tax attribute carryforwards may still be adjusted upon examination by tax authorities.

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 6, 2025
2023Mar 12, 2024
2022Mar 2, 2023
2021Mar 2, 2022
2020Mar 10, 2021
2019Feb 28, 2020
2018Mar 1, 2019
2017Mar 23, 2018

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

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