Income Taxes |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s effective tax rate for the three and nine months ended September 30, 2025 was 2.5% and 4.2%, respectively, which varied from the federal statutory rate of 21.0%, primarily due to the impact of state income taxes, permanent differences between financial statement and taxable income, and increases in the valuation allowances recorded against federal and state deferred tax assets that are ordinary in nature, as well as decreases in the valuation allowances on federal and state deferred tax assets that are capital in nature. The changes in the valuation allowances were the most notable reason why the effective tax rate for the period was significantly lower than the statutory rate of 21%. Substantial judgment is required in estimating the change in valuation allowances during the period which impacts the effective tax rate and tax expense recognized during the period. The Company’s effective tax rate for the three and nine months ended September 30, 2024 was (1.5)% and 2.2%, respectively, which varied from the federal statutory rate of 21.0% primarily due to the impact of state income taxes, permanent differences between financial statement and taxable income, and an increase in the valuation allowances recorded against federal and state deferred tax assets that are ordinary in nature. This was partially offset by a decrease in the valuation allowances on federal and state deferred tax assets that are capital in nature. The increase in the valuation allowances recorded against federal and state deferred tax assets that are ordinary in nature was primarily due to the losses incurred during the periods, with limited sources of additional future income to enable expected future utilization of the losses. The increase in the valuation allowances was the most notable reason why the effective tax rates for the periods were significantly lower than the statutory rate of 21.0%. Substantial judgment is required in estimating the change in valuation allowances during the periods, which impacts the effective tax rate and deferred tax benefit recognized during the periods.
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