INCOME TAXES

6 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company calculates the provision for income tax during interim periods based on the best estimate of the full year’s tax rate as adjusted for discrete items, if any, that are taken into account in the relevant interim period. Each quarter, the Company updates its estimate of the annual effective tax rate and any change in the estimated rate is recorded on a cumulative basis.

The effective tax rate from continuing operations was (53.6)% and 4.6% for the three months ended June 30, 2026 and 2025, respectively, and (66.4)% and 38.8% for the six months ended June 30, 2026 and 2025, respectively. The change in the effective tax rate in the three months ended June 30, 2026 from the same period in 2025 was mainly due to a discrete tax benefit in the second quarter of 2026 from the vesting of RSAs and the exercise of stock options and warrants at values significantly higher than the grant date book expense previously recognized for financial reporting. The change in the effective tax rate in the six months ended June 30, 2026 from the same period in 2025 was mainly due to the release of the deferred tax valuation allowance in the first quarter of 2026.

The effective tax rates differ from the U.S. statutory rate primarily due to changes in the valuation allowance and discrete income tax benefits in 2026 resulting from share-based compensation.