v3.25.2
Provision for Income Tax
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Provision for Income Tax
13.
Provision for Income Tax

The following table summarizes the Company’s income tax expense and effective tax rate for the three and six months ended June 30, 2025 and 2024:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands, except percent)

 

Income before provision for income taxes

 

$

8,591

 

 

$

4,916

 

 

$

7,101

 

 

$

7,125

 

Provision for income taxes

 

 

1,784

 

 

 

312

 

 

 

5,092

 

 

 

399

 

Effective tax rate

 

 

20.8

%

 

 

6.3

%

 

 

71.7

%

 

 

5.6

%

The increase in the effective income tax rates for the three and six months ended June 30, 2025, as compared to the same periods prior year, respectively, was primarily driven by change in entity classification, non-deductible profit interests, non-deductible officer compensation, and interest and penalties from prior year tax returns and uncertain tax positions.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including modifications to capitalization of research and development expenses, limitation on deductions for interest expense and accelerated depreciation on fixed asset additions. The Company is currently evaluating the impact of OBBBA to its consolidated financial statements.