Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of the provision for income taxes were as follows: 

	Years Ended December 31,
(in thousands)	2025		2024		2023
Current
Federal	$	35,884	$	37,536	$	33,523
State	6,293		10,767		10,171
Foreign	683		—		—
Total current tax expense (benefit)	42,860		48,303		43,694
Deferred
Federal	5,632		5,164		789
State	2,625		1,956		605
Foreign	144		—		—
Total deferred tax expense (benefit)	8,401		7,120		1,394
Total expense (benefit) for income taxes	$	51,261	$	55,423	$	45,088

The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized on the Consolidated Statements of Operations for the year ended December 31, 2025, subsequent to the adoption of ASU 2023-09: 

(in thousands)	Year Ended December 31, 2025
U.S. Federal income tax expense (benefit) and tax rate	$	39,322	21	%
State and local income taxes, net of federal income tax effect (1)	7,597		4	%
Foreign tax effects	169		—	%
Effect of cross-border tax laws	329		—	%
Tax credits	(704)		—	%
Change in valuation allowance	2,024		1	%
Nontaxable or Nondeductible Items
Excess tax benefits related to share-based compensation	367		—	%
Nondeductible compensation	2,216		1	%
Effect of net (income) loss attributable to noncontrolling interests	(1,472)		(1)	%
Other	342		—	%
Other, net	1,071		1	%
Income tax expense (benefit)	$	51,261	27	%

(1)     State and local taxes in Connecticut, California, New Jersey, New York and New York City made up the majority (greater than 50%) of the tax effect in this category.

The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized on the Consolidated Statements of Operations for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09: 

	Years Ended December 31,
(in thousands)	2024				2023
Tax at statutory rate	$	43,654	21	%	$	39,178	21	%
State taxes, net of federal benefit	10,040		5	%	9,240		5	%
Excess tax benefits related to share-based compensation	(220)		—	%	(1,767)		(1)	%
Nondeductible compensation	2,246		1	%	2,106		1	%
Effect of net (income) loss attributable to noncontrolling interests	(2,348)		(1)	%	(2,299)		(1)	%
Change in valuation allowance	73		—	%	(1,547)		(1)	%
Other, net	1,978		1	%	177		—	%
Income tax expense (benefit)	$	55,423	27	%	$	45,088	24	%

The provision for income taxes reflects U.S. federal, state and local, and foreign taxes at an effective tax rate of 27%, 27% and 24% for the years ended December 31, 2025, 2024 and 2023, respectively. The Company's tax position for the years ended December 31, 2025, 2024 and 2023 was impacted by changes in the valuation allowance related to the unrealized and realized gains and losses on the Company's investments and state net operating losses.

The components of Income (Loss) Before Income Taxes were as follows:

	Year Ended
	December 31, 2025
	(in thousands)
Domestic	$	184,114
Foreign	3,135
Total Income (Loss) Before Income Taxes	$	187,249

The components of income taxes paid (net of refunds) were as follows:

	Year Ended
	December 31, 2025
	(in thousands)
Domestic	$	36,000
State	9,609
Foreign	433
Total cash taxes paid (net of refunds)	$	46,042

Deferred taxes resulted from temporary differences between the amounts reported on the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences were as follows: 

	December 31,
(in thousands)	2025		2024
Deferred tax assets:
Intangible assets	$	18,332	$	18,809
Net operating losses	8,047		9,180
Compensation accruals	16,333		17,173
Lease liability	21,684		17,698
Investment in sponsored products	10,955		8,801
Capital losses	7,290		7,748
Investment in partnerships	7,283		8,058
Gross deferred tax assets	89,924		87,467
Valuation allowance	(19,301)		(16,612)
Gross deferred tax assets after valuation allowance	70,623		70,855
Deferred tax liabilities:
Intangible assets	(31,230)		(29,642)
Right of use asset	(17,303)		(14,406)
Fixed assets	(2,851)		(3,042)
Other	(661)		(559)
Gross deferred tax liabilities	(52,045)		(47,649)
Deferred tax assets, net	$	18,578	$	23,206

At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of its deferred tax assets. The Company maintained a valuation allowance in the amount of $19.3 million and $16.6 million at December 31, 2025 and 2024, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets.

As of December 31, 2025, the Company had net operating loss carry-forwards for federal income tax purposes represented by a $4.4 million deferred tax asset. The related federal net operating loss carry-forwards are scheduled to begin to expire in the year 2031. As of December 31, 2025, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $3.7 million deferred tax asset. Certain state net operating loss carry-forwards are scheduled to begin to expire in 2029.

Internal Revenue Code Section 382 ("Section 382") limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation's stock involving a 50-percentage point increase in ownership by 5% or larger stockholders. At December 31, 2025, the Company had pre-change losses represented by deferred tax assets totaling $4.8 million that are subject to Section 382 limits. The utilization of these assets is subject to an annual limitation of $1.1 million.

Activity in unrecognized tax benefits were as follows:

	Years Ended December 31,
(in thousands)	2025		2024		2023
Balance, beginning of year	$	856	$	856	$	856
Decrease related to tax positions taken in prior years	(214)		(214)		(214)
Increase related to positions taken in the current year	—		214		214
Balance, end of year	$	642	$	856	$	856

If recognized, $0.5 million of the $0.6 million gross unrecognized tax benefit balance at December 31, 2025 would favorably impact the Company's effective income tax rate. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next 12 months.

The Company recognizes interest and penalties related to income tax matters within income tax expense. The Company recorded no interest or penalties related to unrecognized tax benefits at December 31, 2025, 2024 and 2023.

The earliest federal tax year that remains open for examination is 2022. The earliest open years in the Company's major state tax jurisdictions are 2010 for Connecticut and 2022 for all of the Company's remaining state tax jurisdictions.

On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA maintains the 21 percent corporate tax rate and makes permanent many of the beneficial expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic research and development expenditures, more favorable interest deductibility and 100 percent bonus depreciation with effective dates in 2025. Revisions to the international tax framework are effective in 2026. The OBBBA did not have a material impact on our annual effective tax rate in 2025, and we do not expect it to have a material impact in 2026.