Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 14. Income Taxes

For the three months ended September 30, 2025, the Company’s income tax expense was $0.1 million, compared to the three months ended September 30, 2024, when the Company recorded minimal income tax benefit. The effective tax rates for the three months ended September 30, 2025 and 2024 were (1.9%) and 0.1%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

For the nine months ended September 30, 2025, the Company’s income tax expense was $0.1 million, compared to the nine months ended September 30, 2024 when the Company recorded $0.1 million income tax benefit. The effective tax rates for the nine months ended September 30, 2025 and 2024 were (1.0)% and 0.2%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

The Company had insignificant unrecognized tax benefits as of September 30, 2025 and 2024. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect the balance of unrecognized tax benefits to change significantly over the next twelve months. The Company has not accrued interest or penalties related to uncertain tax positions as of September 30, 2025 or 2024.

On July 4, 2025, the United States enacted into law new tax legislation, the One Big Beautiful Bill Act, (OBBBA). The OBBBA includes significant changes to federal tax law and other regulatory provisions. The adoption of this standard did not have a significant impact on the Company’s financial statements nor is it expected to have a material impact on future periods.