Income Taxes |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes We compute our interim provision for income taxes by applying the estimated annual effective tax rate to year-to-date income before income tax and adjust the provision for discrete tax items recorded in the period. Each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The interim provision for income taxes and estimated annual effective tax rate are subject to volatility due to several factors, including changes in our earnings, changes to our valuation allowance, material discrete tax items and the effects of tax law changes. During the three and six months ended June 30, 2025, we recognized income tax expense of $0.1 million and $0.1 million, respectively, resulting in an effective tax rate for those periods of 7.2% and 7.6%, respectively. During the three and six months ended June 30, 2024, we recognized tax expense of $1.4 million and $3.9 million, respectively, resulting in an effective tax rate of 33.1% and 32.7%, respectively. The decrease in effective tax rate for the three and six months ended June 30, 2025 compared to the same periods in 2024 is primarily due to the impact of changes in our valuation allowance during the period and decreased income before income taxes. On July 4, 2025, new U.S. tax legislation known as the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA includes tax reform provisions that amend, eliminate and extend many of the tax rules under the 2017 Inflation Reduction Act and Tax Cuts and Jobs Act. We are currently evaluating the impact of the new legislation but do not expect it to have a material impact on our results of operations.
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