Income Taxes |
3 Months Ended |
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Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company calculates the tax provision for interim periods using an estimated annual effective tax rate (“AETR”) adjusted for the effect of discrete items arising during the period. The Company’s effective tax rate for the three months ended March 31, 2026, was 0.0%. The Company’s effective tax rate for the three months ended March 31, 2025, was 3.2%. The effective tax rate for the three months ended March 31, 2026, was lower than the three months ended March 31, 2025, primarily due to the related increases to the continuing valuation allowance on deferred tax assets. The effective tax rate for the three months ended March 31, 2026 and 2025, was lower than the U.S. statutory rate of 21% primarily due to the continuing valuation allowance on deferred tax assets. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets and the need for a valuation allowance. Management determined that there is insufficient positive evidence to conclude that it is more likely than not that the Company’s gross deferred tax assets will be fully realized. As a result, a valuation allowance has been maintained against the Company's deferred tax assets. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense, and accelerated fixed asset depreciation. The OBBBA did not have a material impact on the Company’s condensed consolidated statements of financial condition as of March 31, 2026, or December 31, 2025. The Company will continue to evaluate the implications of this legislation on future periods.
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