Income Taxes

9 Months Ended

Sep. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's effective tax rate for the three months ended September 30, 2026, was 28.7%, which differs from the United States of America ("U.S.") federal statutory rate of 21.0%, primarily due to state income taxes, increased profitability in high tax jurisdictions, settlement of foreign audits, and nondeductible transaction costs. The Company's effective tax rate for the three months ended September 30, 2025, was 24.7%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes and discrete expense booked in the third quarter of 2025 related to the filing of prior period tax returns.

The Company's effective tax rate for the nine months ended September 30, 2026, was 24.6%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, increased profitability in high tax jurisdictions, and nondeductible transaction costs. The Company's effective tax rate for the nine months ended September 30, 2025, was 24.2%, which differs from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes and nondeductible executive compensation.

At September 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 September 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 $0.6 million at September 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 nine months ended September 30, 2026.