INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income (loss) before Income Tax

For the years ended December 31, 2025, 2024 and 2023, we have the following income (loss) before income taxes (in thousands):


	December 31,
	2025		2024		2023
US Domestic	$	50,367	$	60,704	$	60,374
Foreign	(18,458)		(15,842)		(21,564)
Income before income taxes	$	31,909	$	44,862	$	38,810

Schedule of Components of Income Tax Expense

For the years ended December 31, 2025, 2024 and 2023, we recognized income tax expense comprised of the following (in thousands):


	December 31,
	2025		2024		2023
Federal current tax	$	—	$	—	$	—
State current tax	4,039		2,375		3,442
Foreign current tax	1,022		1,302		638
Other current tax	—		—		—
Total current expenses	5,061		3,677		4,080

Federal deferred tax	9,526		3,269		8,960
State deferred tax	1,990		(246)		(2,724)
Foreign deferred tax	(1,715)		(674)		(1,843)

Total deferred expenses	9,801		2,349		4,393

Income tax expense	14,862		6,026		8,473

Schedule of Reconciliation of Income Tax Expense

A reconciliation of the statutory U.S. federal rate and effective rates is as follows:


	Years Ended December 31,
	2025				2024				2023
	Amount		Percent		Amount		Percent		Amount		Percent
U.S. Federal Statutory Tax Rate	$	6,701	21.00	%	$	9,416	20.99	%	$	8,150	21.00	%

State and Local Income Taxes, Net of Federal Income Tax Effect1	4,663		14.61	%	1,957		4.36	%	1,451		3.74	%

Foreign Tax Effects

Netherlands
Statutory tax rate difference between Netherlands and U.S.	(891)		(2.79)	%	(866)		(1.93)	%	(1,116)		(2.88)	%
Change in valuation allowance	4,071		12.76	%	4,181		9.32	%	4,064		10.47	%
Other	222		0.70	%	—		—	%	(23)		(0.06)	%

Other foreign jurisdictions	(220)		(0.69)	%	637		1.42	%	398		1.03	%

Changes in Valuation Allowances	30		0.09	%	15		0.03	%	—		—	%

Nontaxable or Nondeductible Items
(Income)/loss attributable to noncontrolling interests	(7,497)		(23.49)	%	(7,569)		(16.87)	%	(5,752)		(14.82)	%
Stock-based compensation	1,508		4.73	%	(1,694)		(3.78)	%	62		0.16	%
Nondeductible executive compensation	2,449		7.67	%	870		1.94	%	1,199		3.09	%
Adjustments to fair market value	—		—	%	418		0.93	%	(563)		(1.45)	%
Nondeductible split dollar insurance	(351)		(1.10)	%	(320)		(0.71)	%	(248)		(0.64)	%
Meals and Entertainment	427		1.34	%	416		0.93	%	636		1.64	%
Nondeductible transaction costs	1,472		4.61	%	—		—	%	—		—	%
Other	353		1.11	%	267		0.60	%	309		0.80	%

Changes in Unrecognized Tax Benefits	72		0.23	%	(274)		(0.61)	%	(884)		(2.28)	%

Other Adjustments
Other basis adjustments to joint ventures	741		2.32	%	268		0.60	%	(226)		(0.58)	%
Other basis adjustments to other assets	1,112		3.48	%	(1,696)		(3.78)	%	1,016		2.62	%
Other

Effective Tax Rate	14,862		46.58	%	6,026		13.44	%	8,473		21.84	%

(1) State tax expense comprising the majority (greater than 50 percent) of the tax effect in this category for the years ended December 31, 2025, 2024 and 2023 is Maryland and New York, Maryland, and Maryland, respectively.

Schedule of Income Taxes Paid

Supplemental cash flow information related to leases was as follows:


	Years ended December 31,
(In thousands)	2025		2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	105,312	$	103,215	$	101,516
Right-of-use & Equipment assets obtained in exchange for lease obligations:
Operating leases	113,796		109,446		55,852

A summary of income taxes paid, net of refunds received, for the years ended December 31, 2025, 2024 and 2023 is as follows:


	Years Ended December 31,
	2025	2024	2023
Federal income taxes paid, net of refunds received
State income taxes paid, net of refunds received
California	$145	$317	$127
Delaware	—	—	181
Florida	510	329	186
Maryland	2,301	1,150	1,000
New Jersey	81	284	1
New York	337	10	38
Other State Jurisdictions	299	80	55
	3,673	2,170	1,588
Foreign income taxes paid, net of refunds received
United Kingdom	845	1,885	—
Other Foreign Jurisdictions	43	113	—
	888	1,998	—

Total income taxes paid, net of refunds received	4,561	4,168	1,588

Schedule of Deferred Tax Assets and Liabilities

Our deferred tax assets and liabilities comprise the following (in thousands):


	December 31,
Deferred tax assets:	2025		2024
Net operating losses	$	89,606	$	46,868
Accrued expenses	3,720		5,087
Operating lease liability	152,768		138,842
Amortization of research and experimental expenditures	9,481		9,977

Equity compensation	5,796		3,813
Allowance for doubtful accounts	2,267		2,411
Limitation of business interest	9,075		16,083
Other	2,815		1,182
Valuation allowance	(26,562)		(13,797)
Total deferred tax assets	$	248,966	$	210,466
Deferred tax liabilities:
Property and equipment	(17,977)		(20,383)
Goodwill	(51,576)		(45,794)
Intangibles	(30,746)		(13,206)
Operating lease right-of-use asset	(136,831)		(124,427)

Outside basis difference	(33,271)		(27,066)
Other	(468)		(1,820)
Total deferred tax liabilities	$	(270,869)	$	(232,696)



Net deferred tax liability	$	(21,903)	$	(22,230)

Schedule of Unrecognized Tax Benefits

A reconciliation of the total gross amounts of unrecognized tax benefits for the years ended are as follows (in thousands):


	December 31,
	2025		2024
Balance at beginning of year	$	3,024	$	3,082
Increases related to prior year tax positions	443		276
Increases related to current year tax positions	—		45
Increases related to acquisitions	4,079		—
Expiration of the statute of limitations for the assessment of taxes	(367)		(381)
Increase related to change in rate	(7)		2
Balance at end of year	$	7,172	$	3,024