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Income Tax Expense (Benefit)
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit) Income Tax Expense (Benefit)
The following table provides information regarding the Company's income tax expense (benefit) for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(unaudited)(unaudited)
Income tax expense (benefit)$723 $(5,830)$(2,934)$166 
Effective tax rate(1.3)%(35.0)%4.6 %1.5 %

Income tax expense (benefit) was an expense of $0.7 million ((1.3)% effective tax rate) and a benefit of $2.9 million (4.6% effective tax rate) for the three and six months ended June 30, 2026, as compared to an income tax benefit of $5.8 million ((35.0)% effective tax rate) and income tax expense of $0.2 million (1.5% effective tax rate) for the three and six months ended June 30, 2025. The change in income tax expense (benefit) and effective income tax rate was primarily due to a forecasted full year pre-tax loss for the six months ended June 30, 2026, as compared to forecasted full year income for the same period in 2025.

The Company's effective income tax rate for the three and six months ended June 30, 2026 varies from the statutory federal tax rate in the United States (U.S. federal tax rate) of 21% primarily due to the effects of non-deductible executive compensation, non-deductible payments related to contingent consideration, and state taxes. The Company's effective income tax rate for the three and six months ended June 30, 2025 vary from the statutory U.S. federal tax rate primarily due to the impact of recurring permanent differences on a forecasted near break-even loss.

The annual forecasted earnings represent the Company's best estimate as of June 30, 2026 and 2025, are subject to change and could have a material impact on the effective tax rate in subsequent periods. ASC 740, Income Taxes (ASC 740), requires the Company to estimate the annual effective income tax rate for the full year and apply it to pre-tax income (loss) for each interim period, taking into account year-to-date amounts and projected results for the full year.

As of June 30, 2026 and December 31, 2025, the Company had income tax receivable of $30.8 million and $38.4 million, respectively, which is classified as Prepaid expenses and other current assets on the condensed consolidated balance sheets.