v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6. Income Taxes

The following table summarizes our effective tax rate for the periods presented (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Income before income taxes

 

$

15,090

 

 

$

20,706

 

 

$

30,671

 

 

$

35,355

 

Provision for income taxes

 

 

5,079

 

 

 

5,329

 

 

 

9,254

 

 

 

9,105

 

Effective tax rate

 

 

33.7

%

 

 

25.7

%

 

 

30.2

%

 

 

25.8

%

 

The increase in the effective tax rate for the three and six months ended June 30, 2025, as compared to the same periods in 2024, was primarily due to an increase in valuation allowance against deferred income tax assets.

In October 2021, the Organization for Economic Co-operation and Development issued a statement updating and finalizing the key components of the two-pillar plan on global tax reform, intended to be effective on January 1, 2024. Pillar One focuses on nexus and profit allocation. Pillar Two provides for a global minimum effective corporate tax rate of 15%, applied on a jurisdiction-by-jurisdiction basis. While the U.S. has not adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will apply to our worldwide operations. However, given that we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs. We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two model rules in the jurisdictions in which we operate.

On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act which includes, among other provisions, changes to the U.S. corporate income tax system including provisions related to bonus depreciation, research and development and foreign derived intangible income. We are currently evaluating the impact of these tax law changes on our condensed consolidated financial statements.