v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Taxes  
Income Taxes

Note 8 — Income Taxes

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Income taxes are estimated for each of the jurisdictions in which the Company operates. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Realization of net deferred tax assets is dependent on future taxable income.

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At the end of each interim reporting period, the effective tax rate is aligned with expectations for the full year. This estimate is used to determine the income tax provision on a year-to-date basis and may change in subsequent interim periods.

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Income before income taxes and income tax expense for the three months ended March 31, 2026 and 2025 were as follows:

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Three months ended March 31,

 

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  ​ ​ ​

2026

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2025

 

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(in thousands, except percentages)

 

Income (loss) before income taxes

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$

(1,483)

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$

14,984

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Income tax expense (benefit)

 

$

(1,159)

 

$

3,037

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Effective tax rate

 

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78.15%

 

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20.27%

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The Company’s income tax benefit for the three months ended March 31, 2026 was $1.2 million, compared to an income tax expense of $3.0 million for the comparable prior period.

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For the three months ended March 31, 2026, the effective tax rate was higher than the U.S. statutory tax rate primarily related to a discrete income tax benefit for share-based compensation windfall. For the three months ended March 31, 2025, the effective tax rate was in line with the U.S. statutory tax rate, which included a $1.5 million tax expense related to share-based compensation shortfalls, partially offset by tax benefits related to Foreign-Derived Intangible Income and research and development tax credits.