INCOME TAXES

3 Months Ended

Mar. 31, 2026

INCOME TAXES

INCOME TAXES

NOTE 7—INCOME TAXES

The Company’s effective tax rate for the three months ended March 31, 2026 and March 31, 2025 was 37.2% and 37.9%, respectively, based on pretax income of $4.3 million and $2.4 million, respectively. The Company’s effective tax rate for the quarter ended March 31, 2026 was impacted by non-deductible expenses and earnings and losses in certain foreign jurisdictions.

On July 4, 2025, H.R. 1, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” (the “Act”), commonly referred to as the “One Big Beautiful Bill Act,” was enacted in the United States. The legislation includes several changes to corporate taxation, including modifications to depreciation deductions and the limitation on interest expense deductions, as well as the reinstatement of 100% bonus depreciation for certain fixed assets acquired and placed in service after January 19, 2025.