Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Before Income Taxes

The domestic and foreign components of income before provision for income taxes are as follows for the years ended December 31:

	2024		2023		2022
Domestic	$	134,068	$	83,742	$	80,372
Foreign		3,990		12,805		3,608
Income before income taxes	$	138,058	$	96,547	$	83,980

Income Tax Expense Components

Income tax expense consisted of the following for the years ended December 31:

	2024			2023			2022
Current:
Federal	$	41,276		$	28,108		$	8,413
State		16,851			10,380			2,686
Foreign		1,647			2,247			1,661
Total current		59,774			40,735			12,760
Deferred:
Federal		(21,055	)		(20,279	)		4,264
State		(10,861	)		(6,915	)		3,607
Foreign		30			394			(894	)
Total deferred		(31,886	)		(26,800	)		6,977
Income tax expense	$	27,888		$	13,935		$	19,737

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consisted of the following at December 31:

	2024			2023
Deferred Tax Assets
Allowance for expected credit losses	$	1,648		$	1,213
Accrued paid time off		3,525			3,039
State net operating loss carryforward		456			500
Stock-based compensation		6,076			5,523
Deferred compensation		6,568			5,765
Foreign tax credits		8,151			8,035
State tax credits		1,923			686
Foreign exchange		4,345			3,591
Foreign deferred		333			441
Accrued bonus		6,393			5,830
Capital loss		1,020			1,054
Facilities impairment		2,611			3,092
Capitalized research expenses		70,617			47,019
Depreciation		402			—
Accrued liabilities and other		1,364			2,682
Lease liabilities		54,263			58,538
		169,695			147,008
Less: Valuation Allowance		(9,627	)		(9,021	)
Total Deferred Tax Assets		160,068			137,987
Deferred Tax Liabilities
Payroll taxes		(939	)		(725	)
Unbilled revenue		(184	)		(284	)
Depreciation		—			(2,128	)
Amortization		(108,009	)		(107,201	)
Deferred gain and other		(2,543	)		(2,202	)
Lease assets - right-of-use		(46,790	)		(51,622	)
Total Deferred Tax Liabilities		(158,465	)		(164,162	)
Total Net Deferred Tax Assets (Liabilities)	$	1,603		$	(26,175	)

Components of Unrecognized Tax Benefits, Excluding Penalty and Interest

The components of unrecognized tax benefits, excluding penalty and interest, are as follows at December 31:

	2024		2023
U.S. transfer pricing	$	—	$	145
India transfer pricing		—		164
Section 41 tax credit		15,042		8,736
Section 174 expense capitalization		10,798		15,086
Total	$	25,840	$	24,131

The unrecognized tax benefit reconciliation, excluding penalty and interest, is as follows:

Unrecognized tax benefits at January 1, 2022	$	450
Decrease attributable to tax positions taken during the current period		(305	)
Unrecognized tax benefits at December 31, 2022		145
Increase attributable to tax positions taken during a prior period		19,845
Increase attributable to tax positions taken during the current period		4,141
Unrecognized tax benefits at December 31, 2023		24,131
Decrease attributable to tax positions taken during a prior period		(4,597	)
Increase attributable to tax positions taken during the current period		6,306
Unrecognized tax benefits at December 31, 2024		25,840

Effective Income Tax Rate Reconciliation

The Company’s provision for income taxes differs from the federal statutory rate. The differences between the statutory rate and the Company’s provision are as follows for the years ended December 31:

	2024			2023			2022
Taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		6.0	%		6.0	%		5.8	%
Foreign tax rate differential		(0.1	)%		(0.2	)%		0.1	%
Executive compensation		1.8	%		1.7	%		2.2	%
Other permanent differences		(0.4	)%		(0.3	)%		2.0	%
Global intangible low-taxed income (GILTI)		—			0.3	%		—
Prior year tax adjustments		(2.0	)%		(6.4	)%		(1.1	)%
Deferred impact of state rate change		0.1	%		0.5	%		0.6	%
Worthless stock deduction		—			(5.1	)%		(4.6	)%
Unrecognized tax benefits		4.0	%		9.0	%		(0.4	)%
Capital loss		—			(3.8	)%		—
Valuation allowance		1.3	%		2.0	%		0.7	%
Equity-based compensation		(1.7	)%		(1.1	)%		(1.3	)%
Tax credits		(9.8	)%		(9.2	)%		(1.5	)%
Taxes at effective rate		20.2	%		14.4	%		23.5	%