Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 4. INCOME TAXES Income tax expense or benefit and the Company’s effective tax rate is based upon the tax rate expected for the full calendar year applied to the year-to-date pretax income or loss of the interim period, plus the tax effect of any year-to-date discrete tax items. The Company’s consolidated effective tax rate for the three months ended March 31, 2026 and 2025 was 14.8% and 6.2%, respectively. The effective tax rate differs from the statutory federal income tax rate of 21.0% as of March 31, 2026 primarily due to state income taxes and deferred revaluation due to state filing changes as of January 1, 2026. The effective tax rate differs from the statutory federal income tax rate of 21.0% as of March 31, 2025 primarily due to state income taxes and deferred revaluation due to state filing changes as of January 1, 2025. Due to the uncertainty of realizing the benefit from deferred tax assets, tax positions are reviewed at least quarterly by assessing future expected taxable income from all sources. Realization of deferred tax assets, primarily arising from net operating loss carryforwards and charitable contribution carryforwards, is dependent upon generating sufficient taxable income prior to expiration of the carryforwards. Based on its analysis, the Company believes that some of its deferred tax assets may not be realized. As of March 31, 2026 and December 31, 2025, the Company’s valuation allowance consisted of approximately $6.0 million and $4.8 million, net of federal tax benefit, respectively, on the deferred tax assets related to state net operating loss carryforwards. The Company has determined that there are no positions currently taken that would rise to a level requiring an amount to be recorded or disclosed as an unrecognized tax benefit. If such positions do arise, it is the Company’s intent that any interest or penalty amount related to such positions will be recorded as a component of the income tax provision (benefit) in the applicable period. |