Income Taxes

6 Months Ended

Jun. 30, 2025

Income Taxes

Income Taxes

10. Income Taxes

The Company’s effective tax rate was 7.8% and 9.8% for the three and six month periods ended June 30, 2025, respectively. The Company’s effective tax rate was (3.3)% and 2.2% for the three and six month periods ended June 30, 2024, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets and state minimum taxes in the United States. The effective tax rate is calculated by dividing the income tax benefit by the loss before income tax benefit.

On July 4, 2025, the U.S. enacted H.R. 1 "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14", commonly referred to as the One Big Beautiful Bill (“H.R. 1”). The enactment of H.R. 1 is not expected to have a material impact on the Company’s tax position or consolidated financial statements.