v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
INCOME TAXES  
INCOME TAXES
16. INCOME TAXES

Consolidated income from continuing operations before provision for income taxes consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 

​

​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

U.S. operations

​

$

45,085

​

$

51,153

​

$

49,603

Foreign operations

​

​

17,241

​

​

3,065

​

​

3,321

Income before provision for income taxes

​

$

62,326

​

$

54,218

​

$

52,924

​

The provision for income taxes is detailed below:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 

​

​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

Current tax provision:

​

​

​

​

​

​

​

​

​

Federal

​

$

6,689

​

$

13,458

​

$

9,969

State

​

 

1,872

​

 

3,424

​

 

1,811

Foreign

​

 

7,238

​

 

3,267

​

 

2,713

Total current provision

​

 

15,799

​

 

20,149

​

 

14,493

Deferred tax provision (benefit) :

​

​

​

​

​

​

​

​

​

Federal

​

 

3,661

​

 

(300)

​

 

1,692

State

​

 

698

​

 

(57)

​

 

322

Foreign

​

 

(1,971)

​

 

(1,707)

​

 

(2,224)

Total deferred provision (benefit)

​

 

2,388

​

 

(2,064)

​

 

(210)

Total provision for income taxes

​

$

18,187

​

$

18,085

​

$

14,283

​

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the Company’s consolidated financial statements for the year ended December 31, 2025 in accordance with ASU 2023-09:

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​

​

​

​

​

​

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​

  ​ ​ ​

Year ended December 31, 

​

​

  ​ ​ ​

2025

​

​

​

Amount

 

Percentage

 

U.S. Federal statutory income tax rate

​

$

13,088

​

21.0

%

State income taxes, net of federal income taxes(1)

​

​

2,147

​

3.5

​

Foreign tax effects

 

 

​

​

​

​

Canada:

 

 

​

​

​

​

Statutory tax rate differential

 

 

1,021

​

1.6

​

Acquisition related contingent consideration

 

​

649

​

1.0

​

Other

 

 

261

​

0.4

​

Other jurisdictions

​

​

357

​

0.6

​

Effect of cross-border tax laws

​

​

​

​

​

​

Global intangible low taxed income

​

​

278

​

0.5

​

Other

​

​

(25)

​

(0.1)

​

Nontaxable or nondeductible items

​

​

​

​

​

​

Executive compensation

 

 

2,418

​

3.9

​

Equity based compensation

​

​

(2,342)

​

(3.7)

​

Acquisition related transaction costs

​

​

964

​

1.6

​

Other

​

​

(31)

​

(0.1)

​

Changes in unrecognized tax benefits

 

 

(598)

​

(1.0)

​

Total tax provision and effective tax rate

​

$

18,187

​

29.2

%

​

(1)State taxes in California, Florida, Massachusetts and New Jersey make up the majority of the tax effect in this category.

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the Company’s consolidated financial statements for the years ended December 31, 2024 and 2023:

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​

​

​

​

​

​

​

  ​ ​ ​

Year ended December 31, 

​

​

​

2024

 

2023

 

Federal statutory rate

​

21.0

%

21.0

%

Increase (decrease) in income taxes resulting from:

​

​

​

​

​

State income taxes, net of federal income taxes

 

5.7

 

4.6

​

Change in valuation allowance

 

—

 

—

​

Current year tax credits

 

(0.7)

 

(0.7)

​

Difference between foreign and federal tax rate

 

0.9

 

0.7

​

Permanent items

 

6.2

 

1.6

​

Reserve for uncertain tax positions

 

—

 

—

​

Other

 

0.3

 

(0.2)

​

Effective tax rate

 

33.4

%

27.0

%

​

The following is a summary of income taxes paid, net of refunds received, by jurisdiction for the year ended December 31, 2025, in accordance with ASU 2023-09:

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​

​

​

​

​

​

2025

U.S. Federal

​

$

15,736

U.S. State and local

​

​

3,125

Foreign

 

​

​

Canada

 

​

2,963

Germany

 

​

1,660

Other

 

​

1,436

Total taxes paid, net of amounts refunded

 

$

24,920

​

Deferred taxes have not been recognized for the excess financial reporting basis over the tax basis of investments of foreign subsidiaries. It is the Company’s intent to permanently reinvest the earnings of those foreign subsidiaries in those jurisdictions. It is not practical to determine the amount of any unrecognized deferred tax liability on this item.

Deferred income tax assets and liabilities are determined based on the difference between the financial reporting carrying amounts and tax bases of existing assets and liabilities and operating loss and tax credit carryforwards. The tax effects of temporary differences giving rise to significant components of the Company’s deferred income tax assets and liabilities are as follows:

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​

​

​

​

​

​

​

​

  ​ ​ ​

December 31, 

​

​

2025

  ​ ​ ​

2024

Deferred tax assets:

​

​

​

​

​

​

Net operating loss and other carry forwards

​

$

5,278

​

$

5,684

Accrued liabilities

 

​

6,770

 

​

4,676

Reserves and other

 

​

3,820

 

​

4,020

263A uniform capitalization costs

 

​

262

 

​

205

Other deferred tax assets

 

​

4,985

 

​

7,004

Total deferred tax assets

 

​

21,115

 

​

21,589

Valuation allowance

 

​

(1,064)

 

​

(1,354)

Net deferred tax assets

 

​

20,051

 

​

20,235

Deferred tax liabilities:

​

​

​

​

​

​

Intangibles

 

​

(23,193)

 

​

(20,994)

Depreciation

 

​

(7,343)

 

​

(3,625)

Goodwill

 

​

(10,975)

 

​

(9,673)

Other

 

​

(3,782)

 

​

(149)

Total deferred tax liabilities

 

​

(45,293)

 

​

(34,441)

Total deferred income taxes

​

$

(25,242)

​

$

(14,206)

​

In assessing the realizability of deferred income tax assets, the Company performs an evaluation of whether it is more likely than not that some portion, or all, of its deferred income tax assets will not be realized. During the course of this evaluation, the Company considers all available positive and negative evidence and if, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. The Company established a valuation allowance of $1,064 and $1,354 as of December 31, 2025 and 2024, respectively, primarily relating to certain net operating loss and tax credit carryforwards that the Company believes are not more likely than not to be realized.

As of December 31, 2025, the Company had state and foreign net operating loss carryforwards with a range of lives from 20 years to indefinite that begin expiring in 2026.  As of December 31, 2025, the Company had U.S. federal tax credit carryforwards that expire in 2027.

The total amount of unrecognized benefits on uncertain tax positions that, if recognized, would affect the Company’s effective tax rate was $1,460 as of December 31, 2025. A reconciliation of the change in the unrecognized income tax benefit for the years ended December 31, 2025 and 2024 is as follows:

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Year ended December 31, 

​

​

2025

  ​ ​ ​

2024

Beginning unrecognized tax benefits

​

$

1,977

​

$

2,052

Additions to tax positions of prior years

​

 

81

​

 

—

Reductions to tax positions of prior years

​

​

—

​

​

(75)

Reductions for lapse of statute

​

​

(598)

​

​

—

Ending unrecognized tax benefits

​

$

1,460

​

$

1,977

​

The Company recognizes interest expense and penalties related to unrecognized tax benefits as income tax expense. No amounts representing penalties and interest were recorded as income tax expense during the years ended December 31, 2025, 2024 and 2023. The Company had no interest or penalties accrued in the consolidated balance sheets as of December 31, 2025 and 2024.

The Company and its subsidiaries file income tax returns in the U.S. federal, various state and local, and certain foreign jurisdictions. As of December 31, 2025, the Company’s tax years subsequent to 2017 are subject to examination by tax authorities.