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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Net Income before Provision (Benefit) for Income Taxes

Net income before provision for income taxes were as follows (in thousands):


	Year ended December 31,
	2025		2024		2023
United States	$	46,523	$	14,340	$	40,807
Foreign	684		—		—
Net income before provision for income taxes	$	47,207	$	14,340	$	40,807

Schedule of Provision for Income Taxes

The components of the Company’s provision for income taxes were as follows (in thousands):


	Year ended December 31,
	2025		2024		2023
Current
Federal	$	9,918	$	4,369	$	20,008
State	2,689		596		5,482
Foreign	894		7		—
Total current provision	13,501		4,972		25,490
Deferred
Federal	(356)		5,705		(5,954)
State	132		943		(1,366)
Foreign	(320)		—		—
Total deferred benefit	(544)		6,648		(7,320)
Provision for income taxes	$	12,957	$	11,620	$	18,170

Schedule of Reconciliation of Income Tax Expense

The following is a reconciliation of the U.S. statutory federal income tax rate to the annual tax rate to our effective tax rate. The Company adopted ASU 2023-09 prospectively for the year ended December 31, 2025. Prior period disclosures have not been retrospectively adjusted and may not be comparable to the current period presentation under the new standard.


	Year ended December 31, 2025
	Amount		Percent
	(in thousands)
Tax expense at U.S. statutory state	$	9,911	21.0	%
State and local income taxes, net of federal income tax effect(1)	2,465		5.2
Foreign tax effects	96		0.2
Tax credits	(330)		(0.7)
Nontaxable or nondeductible items
Inventory donation	(1,053)		(2.2)
Stock-based compensation	1,974		4.2
Other	106		0.2
Changes in unrecognized tax benefits	99		0.2
Other adjustments	(311)		(0.7)
Total	$	12,957	27.4	%

(1)State taxes in California, New York State and New York City, New Jersey, and Texas contributed to the majority (greater than 50%) of the tax effect in this category.

A reconciliation of the U.S. statutory federal income tax rate to the Company's annual tax rates for the years ended December 31, 2024 and 2023 were as follows:


	Year ended December 31,
	2024		2023
Tax expense at U.S. statutory rate	21.0	%	21.0	%
State tax expense, net of federal benefit	4.7		4.4
Non-deductible expenses	(8.2)		(2.0)
Stock-based compensation	62.3		9.7
Excess compensation limitations	5.5		10.7
R&D tax credit benefit	(0.4)		—
Uncertain tax positions	(0.7)		—
Income tax refund	(6.3)		—
Provision to return true up	0.6		—
Other	2.5		0.7
Provision for income taxes	81.0	%	44.5	%

Schedule of Income Taxes Paid

A summary of cash paid for income taxes, net of refunds, was as follows (in thousands):


	Year ended December 31, 2025
Federal	$	7,132
State	1,256
Foreign	29
Total income taxes paid	$	8,417

Schedule of Components of Deferred Tax Balances

Significant components of deferred tax balances were as follows (in thousands):


	December 31,
	2025		2024
Deferred tax assets
Net operating losses	$	276	$	305
Uniform capitalization adjustment to inventory	5,885		6,939
Stock-based compensation	1,834		3,307
Accrued compensation and benefits	3,566		968
Lease liability	14,812		13,151
Inventory reserve	2,730		1,532
Returns reserve	1,034		968
Sales tax accrual	374		370
Other	1,498		1,111
Total deferred tax assets	32,009		28,651
Less: valuation allowance	—		—
Total net deferred tax assets	32,009		28,651
Deferred tax liabilities
Property and equipment	(5,699)		(4,394)
Right-of-use asset	(14,123)		(12,614)
Total deferred tax liabilities	(19,822)		(17,008)
Net deferred tax assets	$	12,187	$	11,643

Schedule of Uncertain Tax Positions

The following table summarizes the activity related to our uncertain tax positions during the years ended December 31, 2025 and 2024 (in thousands):


	December 31,
	2025		2024
Beginning balance of uncertain tax positions	$	78	$	167
Increases related to current year tax positions	155		10
Increases related to prior year tax positions	—		18
Changes due to lapse of statute of limitations	(50)		(117)
Ending balance of uncertain tax positions	$	183	$	78