Income Taxes

9 Months Ended

Sep. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company follows guidance under ASC Topic 740-270 Income Taxes, which requires that an estimated annual effective tax rate is applied to year-to-date ordinary income (loss). At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The tax effect of discrete items is recorded in the quarter in which the discrete events occur.

The Company recorded income tax expense of $1.7 million and $11.2 million for the three and nine months ended September 30, 2026, respectively. The income tax expense for the three and nine months ended September 30, 2026 was substantially impacted by tax credits recorded during the periods. Additionally, discrete tax items for the three and nine months ended September 30, 2026 resulted in a net tax benefit of $0.1 million and net tax expense of $1.7 million, respectively, related to equity-based compensation, tax reserve releases, deferred tax true-ups, and a change in state deferred tax assets.

The Company recorded income tax expense of $9.9 million and $30.1 million for the three and nine months ended September 30, 2025, respectively. The income tax expense for the three and nine months ended September 30, 2025 was favorably impacted by tax credits recorded during the periods. Additionally, discrete tax items for the three and nine months ended September 30, 2025 resulted in zero and $1.2 million, respectively, related to equity-based compensation.

As of September 30, 2026 and December 31, 2025, the balance of reserves for uncertain tax positions was $0.8 million for both periods.