Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 — Income Taxes

The table below provides a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes:

	Year Ended December 31,
	2025				2024				2023
	Amount		%		Amount		%		Amount		%
	(in thousands, except for percentages)
U.S. Federal Statutory Tax Rate	$	14,252	21.0	%	$	11,118	21.0	%	$	11,182	21.0	%
State and Local Income Taxes, Net of Federal Income Tax Effect 1	2,386		3.5	%	2,641		5.0	%	4,153		7.8	%
Tax Credits
Federal Jobs Credits	(3,019)		(4.5)	%	(1,914)		(3.6)	%	(2,014)		(3.8)	%
Changes in Valuation Allowance	—		—	%	—		—	%	—		—	%
Nontaxable or Nondeductible Items
Employee Retention Credit2	(6,840)		(10.1)	%	—		—	%	—		—	%
Share-based compensation	1,834		2.7	%	1,722		3.3	%	1,610		3.0	%
Other	154		0.2	%	108		0.2	%	57		0.1	%
Other Adjustments	40		0.1	%	(205)		(0.4)	%	(318)		(0.6)	%
Effective Tax Rate	$	8,807	12.9	%	$	13,470	25.5	%	$	14,670	27.5	%

1.For 2025, states that comprise the majority (>50%) of the state tax effect are California, Kentucky, Maryland, Massachusetts, Pennsylvania, Texas, and Virginia. For 2024, states that comprise the majority (>50%) of the state tax effect are Maryland, California, Massachusetts, New Jersey, Florida, Texas, Virginia, Connecticut and Pennsylvania. For 2023, states that comprise the majority (>50%) of the state tax effect are New Jersey, California, Maryland, Massachusetts, Texas, Florida, Connecticut, Virginia, and Kentucky.

2.Amount received in ERC credits during 2025 was treated as a permanent tax difference and excluded from taxable income.

Income taxes paid (net of refunds received) for each period is as follows:

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Federal	14,935		11,475		3,099
State
Massachusetts	—		—		327
New Jersey	—		—		317
Other	5,452		3,757		1,842
Total	$	20,387	$	15,232	$	5,585

The following table summarizes the provision for income taxes:

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Current:
Federal	$	(9,332)	$	12,275	$	13,728
State	(919)		4,139		5,762
	$	(10,251)	$	16,414	$	19,490
Deferred:
Federal	$	15,946	$	(2,304)	$	(4,183)
State	3,112		(640)		(637)
	$	19,058	$	(2,944)	$	(4,820)
Tax provision	$	8,807	$	13,470	$	14,670

Deferred income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax basis of assets and liabilities.

Significant components of the Company’s federal and state deferred tax asset and liability balances were as follows:

	Year Ended December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	5,200	$	25,138
Deferred compensation	9,869		9,159
Accrued insurance claims	4,953		5,277
Non-deductible reserves	193		497
Lease liabilities	3,848		4,214
Share based compensation	3,692		3,312
Other	4,246		3,275
Total deferred tax assets	$	32,001	$	50,872
Deferred tax liabilities:
Expensing of housekeeping supplies	$	(2,117)	$	(2,174)
Amortization of goodwill and intangibles	(4,416)		(3,861)
Depreciation of property and equipment	(2,162)		(1,664)
Lease right-of-use assets	(3,634)		(4,048)
Other	(1,200)		(955)
Total deferred tax liabilities	$	(13,529)	$	(12,702)
Net deferred tax assets	$	18,472	$	38,170

Realization of the Company’s deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Management assesses the Company’s income tax positions and records tax benefits for all years subject to examination based upon an evaluation of the facts, circumstances and information available at the reporting dates, which include historical operating results and expectations of future earnings. As such, management believes it is more likely than not that the deferred tax assets recorded will be realized to reduce future income taxes and therefore no valuation allowances are necessary.

The Company performs an evaluation each period of its tax positions taken and expected to be taken in tax returns. The evaluation is performed on positions relating to tax years that remain subject to examination by major tax jurisdictions, the earliest of which is the tax year ended December 31, 2020. Based on the evaluation, the Company concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. Therefore, the table reporting on the change in the liability for unrecognized tax benefits during the years ended December 31, 2025 and 2024 is omitted as there is no activity to report in such account for the years ended December 31, 2025 or 2024.