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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is taxed as a C corporation.
For interim periods, the provision for income taxes (including federal, state and local taxes) is calculated based on the estimated annual effective tax rate, adjusted for certain discrete items for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined. Each quarter
the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.
The following table presents our income tax expense and our income tax rate for the three and nine months ended September 30, 2025 and 2024.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands, except percentages)2025202420252024
Income tax expense$3,767 $3,394 $4,546 $5,462 
Income tax rate30.0 %31.2 %14.5 %20.6 %
The U.S. federal statutory tax rate was 21% for each of the three and nine months ended September 30, 2025 and 2024. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate period-over-period was primarily due to state income taxes, tax credits, other permanent adjustments and discrete tax items. In particular, the Company’s effective rate for the nine months ended September 30, 2025 and 2024 were materially impacted by “excess tax benefits on stock-based compensation” recognized discretely during the first quarter of each year as a result of the Company’s stock price at the RSU vesting dates resulting in increased tax deductions for the Company. This benefit reduced the effective tax rate by 53.5% and 35.1% for the three months ended March 31, 2025 and 2024 respectively, with the impact varying in prior years.
No valuation allowance was required as of September 30, 2025 or December 31, 2024.
In July 2025, newly enacted federal legislation introduced changes to U.S. federal tax law which, among other measures, reinstated and made permanent 100% bonus depreciation for qualified short-lived assets and restored immediate expensing of domestic R&D expenditures. This legislative change allows the Company to accelerate depreciation and amortization deductions on newly-placed equipment and certain qualifying structures, thereby contributing to a modest reduction in its federal taxable income for the quarter. While the full impact is subject to timing of assets being placed in service and contract flows, management believes these tax incentives enhance cash-flow flexibility and reinforce its capital deployment strategy.