INCOME TAXES

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Our ETR was 32% and 23% for the third quarters of 2025 and 2024, and 28% and 25% for nine months ended September 30, 2025 and 2024, respectively. The increase in the rate as compared to the same periods of 2024 was primarily attributable to decreases in tax benefits for stock based compensation, decreases in excludable income for state tax purposes, and decreases in tax credits.

We have capital loss carryforwards of $3 million as of December 31, 2024. As a result of the sale of our wholly owned subsidiary Clarus, we generated approximately $9 million of capital loss carryforwards totaling $12 million which will begin to expire in 2027. We have recorded an increase in the valuation allowance of $9 million to reflect the estimated amount of deferred tax assets that may not be realized related to these capital loss carryforwards.

We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada and India. We are open to federal and significant state income tax examinations for tax years 2019 and subsequent years.