Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The components of income (loss) before income tax expense are as follows (in thousands):

Income tax expense (benefit) consists of the following (in thousands):

The Company’s effective tax rate differs from the U.S. federal statutory rate of 21% for 2025, 2024, and 2023 as follows:


	Year Ended December 31,
	2025		2024		2023
Federal statutory rate	21.0	%	21.0	%	21.0	%
Noncontrolling interest	(20.5)	%	—	%	—	%
Other non-deductible expenses	—	%	0.6	%	0.7	%
State and local taxes	(2.3)	%	1.6	%	1.8	%
Partnership income not subject to tax	—	%	(21.6)	%	(21.7)	%
Valuation allowance	(0.3)	%	—	%	—	%
Foreign income and withholding taxes	(0.3)	%	0.2	%	0.1	%
Effective tax rate	(2.4)	%	1.8	%	1.9	%

Significant components of the deferred tax assets and liabilities were as follows (in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Investment in partnership	$	89,086	$	—
U.S. federal and state net operating loss	337		—
Subtotal	89,423		—
Less valuation allowance	(88,779)		—
Total deferred tax assets	644		—

Deferred tax liabilities:
Partnership level items	(378)		(455)
Total deferred tax liabilities	(378)		(455)
Net deferred tax asset (liability)	$	266	$	(455)

The following table presents a reconciliation of the total change in the valuation allowance (in thousands):


	December 31,
	2025		2024		2023
Balance at beginning of period	$	—	$	—	$	—
Change charged to income tax expense	97		—		—
Change charged to equity	88,682		—		—
Balance at end of period	$	88,779	$	—	$	—