v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The components of income tax (benefit) expense were as follows (in thousands):

Year Ended December 31,
 202320242025
 
Current income tax expense:   
Federal$2,384 $3,141 $1,575 
State2,430 2,688 2,432 
4,814 5,829 4,007 
Deferred income tax (benefit) expense:   
Federal(12,713)3,722 7,575 
State(2,816)868 566 
 (15,529)4,590 8,141 
 Income tax (benefit) expense$(10,715)$10,419 $12,148 
Schedule of Tax Effects of Principal Temporary Differences
The tax effects of principal temporary differences are as follows (in thousands):

As of December 31,
 20242025
Deferred tax assets  
Goodwill and intangibles$41,872 $36,521 
Operating lease liability26,638 17,132 
Allowance for doubtful accounts3,737 4,487 
Restricted stock1,801 2,013 
Accrued vacation and severance475 768 
Investments4,098 4,171 
Stock compensation expense38 — 
Other comprehensive income - unrealized loss on interest rate cap— 6 
Other909 688 
Total gross deferred tax assets79,568 65,786 
Valuation allowance(4,409)(4,596)
Total net deferred tax assets75,159 61,190 
Deferred tax liabilities
Income tax deductible capitalized software development costs(534)(3,298)
Operating lease asset(23,668)(14,552)
Property and equipment(3,597)(2,837)
Prepaid expenses(49)(1,032)
Stock compensation expense— (295)
Total deferred tax liabilities(27,848)(22,014)
Deferred tax assets, net$47,311 $39,176 
Schedule of Difference of Income Tax Expense from the United States Federal Income Tax Rates
Income tax (benefit) expense differs from the amount of tax determined by applying the U.S. federal income tax rates to pretax loss and income due to the application of state apportionment laws, permanent tax differences, and other temporary differences (in thousands):

Year Ended December 31,
 202320242025
 Amount%Amount%Amount%
    
U.S. federal Statutory tax rate$(12,180)21.00 %$5,572 21.00 %$9,178 21.00 %
State and local income taxes, net of federal income tax effect (1)(2)(3)
(897)1.55 %2,991 11.27 %2,571 5.88 %
Changes in Valuation allowance1,265 (2.18)%1,838 6.93 %— — %
Nontaxable or nondeductible items
Loss on equity investment— — %(812)(3.06)%— — %
Equity-based compensation benefits837 (1.44)%194 0.73 %(1,083)(2.47)%
Executive compensation172 (0.31)%395 1.49 %1,315 3.01 %
Other permanent differences98 (0.17)%97 0.37 %127 0.29 %
Other adjustments(10)0.02 %144 0.54 %40 0.09 %
Effective tax rate$(10,715)18.47 %$10,419 39.27 %$12,148 27.80 %
(1) In 2023, state taxes in Minnesota, Florida, Illinois, Georgia, California, and Virginia made up the majority (greater than 50%) of the tax effect in this category.

(2) In 2024, state taxes in Georgia, Florida, Minnesota, Illinois, Maryland, North Carolina, and Texas made up the majority (greater than 50%) of the tax effect in this category.

(3) In 2025, state taxes in Florida, Minnesota, Illinois, Georgia, Mississippi, Maryland, and Texas made up the majority (greater than 50%) of the tax effect in this category.
Schedule of Cash Paid for Income Taxes
The Company paid cash taxes for the years ended December 31, 2023, 2024, or 2025 as follows (in thousands):

Year Ended December 31,
202320242025
Cash paid for U.S. federal income taxes, net$— $2,700 $4,000 
Cash paid for state and local income taxes, net2,417 3,604 2,516 
$2,417 $6,304 $6,516 
Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions (in thousands):

Year Ended December 31,
202320242025
State
Georgia$267 $427 *
Minnesota233 **
Maryland210 **
Florida207 **
North Carolina148 **
Texas142 **
Pennsylvania129 **
* Jurisdiction below the threshold for the period presented