Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 15. Income Taxes

Benefit or provision for income taxes for the three months ended June 30, 2025, and 2024, were $1.1 million benefit and $0.7 million provision, respectively, and the effective tax rates for these periods were 15.2% benefit and 1.1% provision, respectively. Benefit or provision for income taxes for the six months ended June 30, 2025 and 2024, were $0.2 million benefit and $0.9 million provision, respectively, and the effective tax rates for these periods were 1.6% benefit and 1.1% provision, respectively. The difference between our effective tax rates for the 2025 and 2024 periods and the U.S. statutory rate of 21% was primarily due to a full valuation allowance related to our net deferred tax assets.

Our income tax provision for the six months ended June 30, 2025, includes the recognition of deferred federal income tax expense of $0.9 million, which was recognized in conjunction with the formation of the Reciprocal and subsequent sale of

HOA to the Reciprocal. The deferred tax expense associated with this event is driven by changes to our scheduled reversal of deferred tax liabilities and assets, which is a function of the underlying impact the event has on our Federal consolidated income tax filing group.

In July 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of U.S. federal tax reform provisions, was signed into law. Key provisions include modifications to depreciation allowances and the treatment of research and development expenditures. We are currently evaluating the impact of the OBBBA on our consolidated financial statements. We cannot reasonably estimate the full impact as of the date of this filing.