Income Taxes

6 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's effective tax rate for the three months ended June 30, 2026, was 22.6%, which differs from the United States of America ("U.S.") federal statutory rate of 21.0%, primarily due to state income taxes, partially offset by benefits associated with the finalization of initial global minimum corporate tax return filings (referred to as Pillar 2). The Company's effective tax rate for the three months ended June 30, 2025, was 24.1%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes and nondeductible executive compensation.

The Company's effective tax rate for the six months ended June 30, 2026, was 23.0%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, partially offset by benefits associated with the finalization of initial global minimum corporate tax return filings (referred to as Pillar 2). The Company's effective tax rate for the six months ended June 30, 2025, was 23.8%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes and nondeductible executive compensation.

At June 30, 2026, the Company had a gross liability for unrecognized tax benefits of $4.3 million. The Company has recognized tax benefits associated with these liabilities of $1.5 million at June 30, 2026. The gross liability includes amounts associated with domestic and foreign tax exposure in prior periods.

The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and operating expenses, respectively. The Company's liability for accrued interest related to uncertain tax positions was $0.5 million at June 30, 2026.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our unaudited condensed consolidated financial statements.

On July 4, 2025, the U.S. enacted into law the One, Big, Beautiful Bill Act (“the Act”). The Act makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The Act has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Act did not have a material impact on the financial statements for the six months ended June 30, 2026