v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes
The following table summarizes income tax expense for the years ended December 31, 2025, 2024 and 2023 (in thousands):

202520242023
Current income tax expense:
Federal$4,008 $503 $27 
State1,118 248 480 
Total current income tax expense5,126 751 507 
Deferred income tax expense:
Federal4,612 3,118 1,058 
State147 346 766 
Total deferred income tax expense4,759 3,464 1,824 
Total income tax expense$9,885 $4,215 $2,331 
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes the differences between the effective income tax rate and the federal statutory income tax rate of 21% for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):

202520242023
AmountPercentageAmountPercentageAmountPercentage
U.S. federal statutory tax rate$32,788 21.0 %$18,491 21.0 %$8,780 21.0 %
State and local income tax, net of federal income tax effect (1)
1,094 0.7 590 0.6 1,239 3.0 
Foreign tax effects— — — — — — 
Effect of changes in tax laws or rates enacted in the current period— — — — — — 
Effect of cross-border tax laws— — — — — — 
Tax credits(241)(0.1)(104)(0.1)(72)(0.2)
Changes in valuation allowances— — — — — — 
Nontaxable or nondeductible items
Issuance of warrants2,383 1.5 1,731 2.0 1,045 2.5 
Others(278)(0.2)(279)(0.3)122 0.3 
Changes in unrecognized tax benefits60 — 26 — 18 — 
Effect of flow-through entity(25,919)(16.6)(16,149)(18.3)(8,831)(21.1)
Other adjustments(2)— (91)(0.1)30 0.1 
Effective tax rate$9,885 6.3 %$4,215 4.8 %$2,331 5.6 %
(1) For the year ended December 31, 2025, state income taxes in California, Florida, Illinois, Michigan, Minnesota, New Jersey, and Texas made up greater than 50% of the tax effect in this category. For the year ended December 31, 2024, state income taxes in Florida, Texas, and Virginia made up greater than 50% of the tax effect in this category. For the year ended December 31, 2023, state income taxes in California, Florida, Michigan, Tennessee, Texas, and Virginia made up greater than 50% of the tax effect in this category.
Schedule of Income Tax Paid
The following table summarizes the income taxes paid for the years ended December 31, 2025, 2024, and 2023 (in thousands):

202520242023
Federal$5,389 $41 $54 
State
Texas*232 *
North Carolina*110 *
Oregon**14 
Other states704 92 5 
Total income taxes paid$6,093 $475 $73 
* The amount of income taxes paid during the year did not meet the 5% disaggregation threshold.
Schedule of Deferred Taxes The components of deferred tax asset as of December 31, 2025 and 2024 were as follows (in thousands):
20252024
Investment in partnership$21,727 $14,076 
Tax receivable agreement liability9,5496,216 
Accrued legal expense540— 
Intangibles447479 
Stock compensation192107 
Net operating loss—366 
Other19296 
Deferred tax asset$32,647 $21,340 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table summarizes the change in unrecognized tax benefits as of December 31, 2025 and 2024 (in thousands):

20252024
Unrecognized tax benefits at beginning of the year$103 $38 
Additions based on tax positions related to the current year76 27 
Additions for tax positions of prior years49 38 
Reductions for tax positions of prior years— — 
Settlements with taxing authorities— — 
Other, net— — 
Net change in unrecognized tax benefits125 65 
Unrecognized tax benefits at end of the year$228 $103