Income Taxes (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the period presented:


	March 31, 2026		December 31, 2025
	(In thousands)
Balance at beginning of year	$	177,047	$	148,979
Increase based on tax positions related to current periods		10,505		39,970
Increase based on tax positions related to prior periods		—		4,095
Settlements with tax authorities		—		(15,997	)
Balance at end of year	$	187,552	$	177,047

Schedule of Reconciliation of Uncertain Tax Liabilities, Inclusive of Accruals for Related Penalties and Interest

A reconciliation of the beginning and ending amount of uncertain tax liabilities, inclusive of accruals for related penalties and interest, for the period presented:


	March 31, 2026		December 31, 2025
	(In thousands)
Balance, beginning of year	$	128,798	$	106,991
Reductions based on tax positions related to prior years		—		(15,212	)
Additions based on tax positions related to prior years		2,930		9,842
Additions based on tax positions related to current year		7,050		27,177
Ending carrying amount (1)	$	138,778	$	128,798

(1) Interest and penalties related to uncertain tax liabilities are recorded as components of the provision for income taxes. As of March 31, 2026 and December 31, 2025, the Company had interest and penalties accrued of $22,719 and $19,803, respectively.

TerrAscend Corp. 10-Q