Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended September 30, 2025 and 2024, the Company recorded an income tax expense of $2,812 and an income tax benefit of $29,745, respectively, on pre-tax income of $7,137 and $6,153, respectively, for an effective income tax rate of 39.4% and (483.4%), respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded an income tax expense of $5,625 and an income tax benefit of $29,110, respectively, on pre-tax income of $10,672 and $14,010, respectively, for an effective income tax rate of 52.7% and (207.8)%, respectively. The Company's effective income tax rate for the three and nine months ended September 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. The Company's effective income tax rate for the three and nine months ended September 30, 2024 differed from the federal statutory rate of 21% primarily due to a $30,045 income tax benefit resulting from the change in valuation allowance previously recorded against certain U.S. federal and state deferred taxes. 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. The OBBBA includes various tax 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 impacts of the tax provisions included in the OBBBA are reflected in our results for the quarter ended September 30, 2025, and did not have a material impact on the Company's Condensed Consolidated Financial Statements. The Company will continue to monitor any developments and guidance related to the OBBBA.