Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 13. Income Taxes For the three months ended March 31, 2026, the Company recorded income tax expense of $1.2 million by applying a forecasted annual effective tax rate to year-to-date pretax income, and adjusting for discrete items occurring in the quarter. The Company’s forecasted annual effective tax rate may vary from period to period based on many factors including changes in management’s forecast, changes to federal, state or foreign tax laws, and deductibility of certain expenses. During the three months ended March 31, 2026, the Company recorded an out-of-period adjustment to reduce deferred tax assets and increase income tax expense by $2.5 million. This adjustment was not material for the year ended December 31, 2025. The Company’s effective tax rate of 14% for the three months ended March 31, 2026 differed from the statutory federal corporate tax rate of 21% primarily due to discrete items occurring during the quarter, consisting of excess tax benefits from stock-based compensation, which decreased the effective tax rate, partially offset by state taxes and the effect of non-deductible expenses, which increased the effective tax rate. The Company has not recorded any amounts for unrecognized tax benefits as of March 31, 2026 or December 31, 2025. As of March 31, 2026 and December 31, 2025, the Company had no accrued interest or tax penalties recorded. For the three months ended March 31, 2025, the Company recorded income tax expense of $1.0 million related primarily to state taxes. Until the fourth quarter of 2025, the Company maintained a valuation allowance on its overall net deferred tax assets. |