v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of (Loss) Income Before Income Taxes Expense

The Company’s (loss) income before income taxes expense from its United States and foreign operations are as follows:

 

 

Year Ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

United States

 

$

10.8

 

 

$

9.2

 

 

$

(3.0

)

Foreign

 

 

(32.4

)

 

 

(1.7

)

 

 

0.1

 

Total

 

$

(21.6

)

 

$

7.5

 

 

$

(2.9

)
Summary of Current and Deferred Income Tax Provision

The Company’s current and deferred income tax provision were as follows:

 

 

Year Ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

0.3

 

 

$

3.3

 

 

$

2.4

 

State and local

 

 

0.4

 

 

 

0.1

 

 

 

1.6

 

Foreign

 

 

4.3

 

 

 

0.1

 

 

 

—

 

 

 

5.0

 

 

 

3.5

 

 

 

4.0

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

1.6

 

 

 

0.8

 

 

 

1.8

 

State and local

 

 

1.0

 

 

 

0.9

 

 

 

(0.5

)

Foreign

 

 

1.5

 

 

 

0.1

 

 

 

—

 

 

 

4.1

 

 

 

1.8

 

 

 

1.3

 

Total provision for income taxes

 

$

9.1

 

 

$

5.3

 

 

$

5.3

 
Schedule of Effective Income Tax Reconciliation

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

 

 

Year Ended December 31,

 

(in millions)

 

2025 ($)

 

 

2025 (%)

 

Provision for income taxes at U.S. federal statutory rate

 

$

(4.6

)

 

 

21.0

%

State and local income taxes, net of federal benefit(1)

 

 

1.1

 

 

 

(5.1

)%

Foreign tax effects:

 

 

 

 

 

 

United Kingdom

 

 

 

 

 

 

Foreign rate differential

 

 

(0.9

)

 

 

4.2

%

Changes in valuation allowance

 

 

1.1

 

 

 

(5.1

)%

Nontaxable or nondeductible items:

 

 

 

 

 

 

Transaction costs and contingent consideration

 

 

9.1

 

 

 

(42.0

)%

RTP - Net Operating Loss

 

 

(0.3

)

 

 

1.4

%

Other

 

 

0.3

 

 

 

(1.4

)%

Canada

 

 

 

 

 

 

Foreign rate differential

 

 

(0.4

)

 

 

1.9

%

Provincial tax

 

 

1.5

 

 

 

(6.9

)%

Nontaxable or nondeductible items:

 

 

 

 

 

 

Transaction costs and contingent consideration

 

 

2.3

 

 

 

(10.6

)%

Effect of cross-border tax laws:

 

 

 

 

 

 

Global intangible income inclusion

 

 

2.6

 

 

 

(12.0

)%

Changes in valuation allowances

 

 

(6.0

)

 

 

27.8

%

Nontaxable or nondeductible items:

 

 

 

 

 

 

Stock-based compensation

 

 

2.9

 

 

 

(13.4

)%

Other

 

 

(0.2

)

 

 

0.9

%

Changes in unrecognized tax benefits

 

 

0.3

 

 

 

(1.4

)%

Other adjustments

 

 

0.3

 

 

 

(1.4

)%

Total tax provision and effective tax rate

 

$

9.1

 

 

 

(42.1

)%

 

(1)
State and local taxes in Florida, New York and New York City comprise the majority of this category.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

 

 

Year Ended December 31,

 

(in millions)

 

2024

 

 

2023

 

(Loss) income before income taxes

 

$

7.5

 

 

$

(2.9

)

U.S. statutory tax rate

 

 

21.0

%

 

 

21.0

%

Taxes at the U.S. statutory rate

 

 

1.6

 

 

 

(0.6

)

Tax effected differences

 

 

 

 

 

 

State and local taxes, net of federal benefit

 

 

0.5

 

 

 

0.8

 

Share-based payments

 

 

4.6

 

 

 

0.3

 

Change in valuation allowance

 

 

(2.4

)

 

 

3.7

 

Return to provision adjustments

 

 

0.9

 

 

 

0.3

 

Change in tax rates

 

 

(0.6

)

 

 

0.5

 

Nondeductible expenses

 

 

0.7

 

 

 

0.4

 

Other, net

 

 

—

 

 

 

(0.1

)

Total provision for income taxes

 

$

5.3

 

 

$

5.3

 
Summary of Book Value and Tax Basis of Assets and Liabilities

The income tax effects of temporary differences between the book value and tax basis of assets and liabilities are as follows:

 

 

December 31,

 

(in millions)

 

2025

 

 

2024

 

Deferred tax assets

 

 

 

 

 

 

Net operating loss carryforwards

 

$

4.1

 

 

$

0.6

 

Deferred compensation

 

 

1.3

 

 

 

0.3

 

Stock-based compensation

 

 

4.9

 

 

 

5.7

 

Fixed asset depreciation

 

 

1.9

 

 

 

1.5

 

Lease liabilities

 

 

2.1

 

 

 

2.4

 

Accrued expenses

 

 

0.3

 

 

 

0.2

 

Section 163(j) interest carryover

 

 

18.7

 

 

 

14.9

 

Other assets

 

 

1.1

 

 

 

0.9

 

Total deferred tax assets

 

 

34.4

 

 

 

26.5

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

 

Right-of-use lease assets

 

 

(1.6

)

 

 

(1.6

)

Goodwill and intangible assets

 

 

(26.3

)

 

 

(0.5

)

Total deferred tax liabilities

 

 

(27.9

)

 

 

(2.1

)

 

 

 

 

 

 

 

Valuation allowance

 

 

(24.1

)

 

 

(29.3

)

Deferred tax liabilities, net

 

$

(17.6

)

 

$

(4.9

)

 
Schedule of Changes in Gross Unrecognized Tax Benefits

The following table summarizes the changes to the gross unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023:

 

 

December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Gross unrecognized tax benefits, beginning of period

 

$

1.5

 

 

$

—

 

 

$

—

 

Decreases related to prior year tax positions

 

 

(0.3

)

 

 

—

 

 

 

—

 

Increases related to current year tax positions

 

 

1.4

 

 

 

1.5

 

 

 

—

 

Gross unrecognized tax benefits, end of period

 

$

2.6

 

 

$

1.5

 

 

$

—

 
Schedule of Income Taxes Paid

The amount of cash income taxes paid by the Company was as follows:

 

 

Year Ended December 31,

 

(in millions)

 

2025

 

US Federal

 

$

4.0

 

State and local

 

 

 

Colorado

 

 

(0.3

)

Foreign

 

 

 

United Kingdom

 

 

0.7

 

Canada

 

 

0.3

 

South Africa

 

 

0.3

 

Total cash paid for income taxes, net of refunds

 

$

5.0