Income taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company calculated the year-to-date income tax benefit (provision) by applying the estimated annual effective tax rate to the year-to-date pre-tax income for each applicable jurisdiction and adjusted for discrete tax items in the period. The following table presents benefit (provision) for income taxes:

	Three Months Ended March 31,
	2025			2024
	(in thousands, except percentages)
Income (loss) before income tax benefit (provision)	$	353		$	(19,481)
Income tax benefit (provision)	176			(1,043)
Effective tax rate	(49.9)		%	(5.4)		%

The difference between the statutory rate and the Company’s effective tax rate for the three months ended March 31, 2025 was primarily due to the BEAT and valuation allowances on U.S. and UK tax assets. The Tax Cuts and Jobs Act of 2017 introduced the BEAT, which is essentially a minimum tax on certain otherwise deductible payments made by U.S. entities to non-U.S. affiliates. Prior to the first quarter of 2025, the Company was not subject to the BEAT. The difference between the statutory rate and the Company’s effective tax rate for the three months ended March 31, 2024 was primarily due to valuation allowances on U.S. and UK tax assets. The effective tax rate for both periods were also impacted by state taxes and earnings realized in foreign jurisdictions.