Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

For the three months ended March 31, 2025, we recorded an income tax expense of $1.6 million compared with $1.1 million for the three months ended March 31, 2024. Our effective tax rate was 63.2% for the three months ended March 31, 2025, compared with 17.9% in the prior year period. Fluctuations observed in both our income tax expense and effective tax rate are primarily associated with shifts in the geographic mix of pretax income projected for the entirety of 2025. The increase in the effective tax rate compared to the prior year period also reflects the continued impact of valuation allowances in certain jurisdictions, which limit the recognition of tax benefits on current-period losses.

Our quarterly estimate of our annual effective tax rate, and our quarterly provision for income tax (benefit) expense, are subject to significant variation due to numerous factors, including variability in accurately predicting our pre-tax and taxable income or loss and the mix of jurisdictions to which they relate, as well as the amount of pre-tax income or loss recognized during the quarter.