Income taxes |
3 Months Ended | ||||||||||||
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Mar. 31, 2026 | |||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||
| Income taxes |
Our effective income tax rate for interim periods is based on the estimated annual effective tax rate, adjusted for discrete items occurring within the period. For the quarter ended March 31, 2026, our effective income tax rate of 23.2% differed from the federal statutory tax rate of 21.0% mainly due to the tax benefit related to employee share-based compensation, partially offset by an increase in the deferred tax valuation allowance, as well as state income taxes and the tax impact of non-deductible executive compensation expense. For the quarter ended March 31, 2026, our effective income tax rate decreased from 27.5% for the same period in 2025. The 2026 rate benefited from a higher tax benefit related to employee share-based compensation and lower foreign income tax expense. These decreases in our effective income tax rate were partially offset by an increase in the valuation allowance of $2.3 million related to a capital loss carryforward generated during the quarter that we do not expect to fully utilize, as well as the tax impact of non-deductible executive compensation expense and state income taxes.
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