Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Components of Net Income (Loss) Before Income Taxes

Income Tax Provision. The components of net income (loss) before income taxes are as follows (in thousands):

	2025			2024			2023
Domestic	$	81,374		$	89,166		$	72,769
Australia		(13,560	)		(5,722	)		854
India		11,092			12,537			10,008
United Kingdom		4,093			7,105			2,029
Foreign other		7,698			9,186			6,691
Total income before income taxes	$	90,697		$	112,272		$	92,351

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (in thousands):

	2025			2024			2023
Current:
Federal	$	27,929		$	28,602		$	34,438
State		5,571			6,483			8,230
Australia		(229	)		(474	)		(333	)
India		3,220			2,977			3,601
United Kingdom		1,111			867			1,002
Foreign other		6,454			3,468			2,727
		44,056			41,923			49,665
Deferred:
Federal		(9,004	)		(2,596	)		(19,687	)
State		(112	)		(10,741	)		(1,982	)
Australia		(823	)		(1,629	)		(896	)
India		(328	)		655			(1,231	)
United Kingdom		426			(2,774	)		(233	)
Foreign other		601			582			469
		(9,240	)		(16,503	)		(23,560	)
Total income tax provision	$	34,816		$	25,420		$	26,105

The effective tax rates in the various foreign jurisdictions differ from the statutory rates due primarily to changes in valuation allowances on deferred tax assets, withholding taxes incurred, foreign tax credit utilization, and the impact of foreign exchange recognition on certain intercompany loans.

Schedule of Effective Income Tax Rate Reconciliation

The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax provision is summarized as follows (in thousands):

	2025						2024						2023
	Amount			%			Amount			%			Amount			%
U.S. Federal statutory tax rate of 21%	$	19,046			21.0	%	$	23,577			21.0	%	$	19,394			21.0	%
State and local income taxes, net of federal impact (1)		4,289			4.7	%		2,526			2.2	%		4,485			4.9	%
Foreign tax effects:
Australia
Statutory tax rate difference		(1,244	)		-1.4	%		(500	)		-0.4	%		87			0.1	%
Valuation allowance		3,293			3.6	%		10			-			(1,277	)		-1.4	%
Other		31			-			75			0.1	%		212			0.2	%
United Kingdom:
Foreign tax credit		(1,058	)		-1.2	%		(1,651	)		-1.5	%		-			-
Valuation allowance		325			0.4	%		(2,344	)		-2.1	%		(487	)		-0.5	%
Other		345			0.4	%		(203	)		-0.2	%		(277	)		-0.3	%
Other foreign jurisdictions		6,776			7.5	%		3,699			3.3	%		4,284			4.6	%
Tax credits:
Research and development tax credit		(2,727	)		-3.0	%		(1,327	)		-1.2	%		(907	)		-1.0	%
Foreign tax credit		(2,446	)		-2.7	%		(1,060	)		-0.9	%		-			-
Other credits		(190	)		-0.2	%		(174	)		-0.2	%		(112	)		-0.1	%
Nontaxable or nondeductible items:
Section 162(m) compensation limitation		9,548			10.5	%		2,389			2.1	%		2,955			3.2	%
Stock award vesting		(3,624	)		-4.0	%		332			0.3	%		(372	)		-0.4	%
Acquisition-related costs		2,491			2.7	%		-			-			-			-
Loss on investment		-			-			-			-			(1,283	)		-1.4	%
Other		(233	)		-0.3	%		123			0.1	%		(246	)		-0.3	%
Changes in unrecognized tax benefits		59			0.1	%		(323	)		-0.3	%		(289	)		-0.3	%
Other adjustments		135			0.2	%		271			0.2	%		(62	)		-0.1	%
Total tax provision and effective tax rate	$	34,816			38.3	%	$	25,420			22.5	%	$	26,105			28.2	%

(1)State taxes in California, Pennsylvania, Illinois, New York, and Florida make up the majority (greater than 50%) of the tax effect in the State and local income taxes category.

Schedule of Income Taxes Paid

Income Taxes Paid. Net cash paid for income taxes consisted of the following (in thousands):

	2025		2024		2023
Federal	$	34,001	$	24,003	$	36,736
State and local jurisdictions		7,999		6,568		7,016
Aggregated foreign jurisdictions		6,986		5,939		4,410
Disaggregated foreign jurisdictions:
India		3,226		3,434		3,513
Net cash paid for income taxes	$	52,212	$	39,944	$	51,675

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2025 and 2024 are as follows (in thousands):

	2025			2024
Deferred income tax assets	$	131,682		$	125,057
Deferred income tax liabilities		(19,076	)		(28,889	)
Valuation allowance		(28,976	)		(22,967	)
Net deferred income tax assets	$	83,630		$	73,201

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2025 and 2024 are as follows (in thousands):

	2025			2024
Net deferred income tax assets (liabilities):
Accrued expenses and reserves	$	12,597		$	9,472
Stock-based compensation		1,662			6,753
Software		(1,219	)		(509	)
Client contracts and related intangibles		(4,060	)		(10,419	)
Goodwill		(13,797	)		(16,638	)
Net operating loss carryforwards		23,665			23,668
Property and equipment		1,277			(1,323	)
Deferred revenue		6,597			6,373
Debt financing		4,511			6,010
Foreign exchange gain/loss		1,547			1,512
Operating lease right-of-use assets and lease liabilities		2,104			2,763
Research and Development		75,719			66,178
Unrecognized tax benefit		55			413
Credits and incentives		1,763			1,672
Other		185			243
Total net deferred income tax assets		112,606			96,168
Less: valuation allowance		(28,976	)		(22,967	)
Net deferred income tax assets	$	83,630		$	73,201

Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands):

	2025			2024			2023
Balance, beginning of year	$	1,112		$	1,858		$	2,562
Lapse of statute of limitations		-			(692	)		(409	)
Additions for tax positions of prior years		171			-			100
Reductions for tax positions of prior years		(600	)		(54	)		(395	)
Balance, end of year	$	683		$	1,112		$	1,858