Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

Provision for income taxes consisted of the following (in thousands):

	Years ended December 31,
	2024			2023			2022
Current
Federal	$	23,695		$	35,434		$	35,365
State		11,441			8,999			19,788
		35,136			44,433			55,153
Deferred
Federal		(2,424	)		(3,638	)		(11,552	)
State		(1,826	)		(8,806	)		(2,726	)
		(4,250	)		(12,444	)		(14,278	)
Total provision for income taxes	$	30,886		$	31,989		$	40,875

Schedule of Effective Income Tax Rate Reconciliation for Provision for Income Taxes

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate as follows:

	Years ended December 31,
	2024			2023			2022
Tax provision at U.S. federal statutory rates		21.0	%		21.0	%		21.0	%
State income taxes net of federal benefit		9.5			11.6			12.1
Non-deductible permanent items		3.8			2.5			0.9
Variable interest entities		1.1			(2.1	)		(1.1	)
Stock-based compensation		3.9			2.8			(0.3	)
Change in valuation allowance		(0.8	)		(2.6	)		4.4
Gain on sale of investment		—			8.5			1.2
Tax credits		(1.3	)		—			—
NOL adjustment		(0.8	)		0.2			0.5
Undistributed dividend		—			(11.5	)		7.2
Spin-off transaction		—			3.0			—
Uncertain tax position		0.8			—			—
Tax rate change		(0.3	)		—			—
Return-to-provision		(0.4	)		2.4			0.6
Accrual to cash true-up		1.3			—			—
Other		0.4			(0.3	)		0.6
Effective income tax rate		38.2	%		35.5	%		47.1	%

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) are shown below (in thousands).

	December 31,
	2024			2023
Deferred tax assets
State taxes	$	2,435		$	2,831
Accrued expenses		1,110			1,747
Allowance for bad debts		3,741			1,718
Investment in other entities		—			1,355
Net operating loss carryforward		6,775			7,551
Lease liability		8,644			10,897
Unrealized gain		1,488			1,284
Stock options		1,731			663
Deferred tax assets before valuation allowance		25,924			28,046
Valuation allowance		(5,267	)		(5,904	)
Net deferred tax assets		20,657			22,142
Deferred tax liabilities
Property and equipment		(1,031	)		(329	)
Acquired intangible assets		(13,493	)		(15,301	)
Right-of-use assets		(7,721	)		(9,936	)
Debt issuance cost		(375	)		(648	)
Investment in other entities		(1,701	)		—
Other		(891	)		—
Deferred tax liabilities		(25,212	)		(26,214	)
Net deferred tax liabilities	$	(4,555	)	$	(4,072	)

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits.

	2024		2023
Gross unrecognized tax benefits at January 1,	$	—	$	—
Increases for tax positions taken in the current year		359		—
Increases for tax positions taken in the prior year		359		—
Gross unrecognized tax benefits at December 31,	$	718	$	—