Note 8 - Income Taxes

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. Income Taxes

The Company had an effective tax rate of (129.5)% and (50.0)% for the three and six months ended June 30, 2026, respectively, and 57.8% and 44.9% for the three and six months ended  June 30, 2025, respectively.

The change in effective tax rates for both the three and six-month period ended June 30, 2026 as compared to the three and six-month period ended  June 30, 2025 was primarily due to the mix of pre-tax income results by jurisdictions taxed at different rates, the partial release of the U.S. valuation allowance, foreign inclusions and stock-based compensation.

During the three months ended June 30, 2026, the Company recorded an income tax benefit of $19.9 million related to the release of a previously recorded valuation allowance on certain deferred tax assets. Based on an assessment of all available positive and negative evidence, management concluded that it was more likely than not that these deferred tax assets would be realized due to sustained profitability and forecasts of future taxable income.