Income Taxes |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes We generally calculate income taxes in interim periods by applying an estimated annual effective income tax rate to income or loss before income taxes and by calculating the tax effect of discrete items recognized during such periods. Our estimated annual effective income tax rate is based on our estimated full year income or loss and the related income taxes for each jurisdiction in which we operate. This rate can be affected by estimates of full year pre-tax income or loss and permanent differences. The effective income tax rate for the three months ended June 30, 2025 and 2024 was 34.4% and 42.5%, respectively. The effective income tax rate for the six months ended June 30, 2025 and 2024 was 34.1% and 52.4%, respectively. The primary differences between our effective income tax rates and the federal statutory tax rate for the three and six months ended June 30, 2025 and 2024 were due to the effects of non-deductible officers’ stock-based compensation expense, state income taxes, benefits from research and development tax credits, and tax effects from our equity awards. On July 4, 2025, H.R. 1, titled "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14," commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense and accelerated fixed asset depreciation. We are currently evaluating the provisions of the OBBBA and the effects on our consolidated financial statements. The effects of changes in tax rates and laws are recognized in the period of enactment. As the OBBBA was signed into law after the close of our second fiscal quarter, the impacts are not included in our condensed consolidated financial statements for the three and six months ended June 30, 2025 and will be included in our condensed consolidated financial statements for the three and nine months ending September 30, 2025.
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