Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 30, 2025 and 2024, the Company recorded an income tax expense of $3,444 and $346, respectively, on pre-tax income of $6,283 and $3,163, respectively, for an effective income tax rate of 54.8% and 10.9%, respectively. For the six months ended June 30, 2025 and 2024, the Company recorded an income tax expense of $2,813 and $635, respectively, on pre-tax income of $3,535 and $7,857, respectively, for an effective income tax rate of 79.6% and 8.1%, respectively. The Company's effective income tax rate for the three and six months ended June 30, 2025 differed from the federal statutory rate of 21% primarily due to the impact of pre-tax losses in the United Kingdom, for which no income tax benefit was recognized due to a valuation allowance. Changes in pre-tax income projections, combined with the seasonal nature of our businesses, also impact the effective income tax rate each quarter.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. OBBBA includes various provisions such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing its impact on our consolidated financial statements.