INCOME TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| INCOME TAXES | |
| INCOME TAXES | 14. INCOME TAXES The Company reported income tax (benefit) of $(13,142) and $(1,675) for the three months ended June 30, 2026 and 2025, respectively, and $(20,281) and $(6,780) for the six months ended June 30, 2026 and 2025, respectively. The effective income tax rate was 320.6% for the three months ended June 30, 2026, compared to 63.5% for the three months ended June 30, 2025, and 147.5% for the six months ended June 30, 2026, compared to (200.1)% for the six months ended June 30, 2025. In determining interim provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income (loss) adjusted for discrete items arising year-to-date. The Company’s effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to fluctuations in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions, state taxes, tax credits, tax benefits on the exercises and vesting of stock awards, limitations on deductions of certain employees’ compensation under Internal Revenue Code Section 162(m), foreign taxes, and fluctuations in nondeductible contingent consideration liabilities. The income tax benefit for the three months ended June 30, 2026 was primarily attributable to fluctuations in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions, as well as the impact from the estimated annual effective tax rate applied to pre-tax loss for the three months ended June 30, 2026. The income tax benefit for the six months ended June 30, 2026 was primarily attributable to fluctuations in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions, as well as the impact from the estimated annual effective tax rate applied to pre-tax loss for the six months ended June 30, 2026. The income tax benefit for the three months ended June 30, 2025 was primarily attributable to tax benefits from stock-based awards exercised or vested, net of limitations on deductions of certain employees’ compensation, and fluctuations in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions. The income tax benefit for the six months ended June 30, 2025 was primarily attributable to tax benefits from stock-based awards exercised or vested, tax credits, and fluctuations in nondeductible contingent consideration liabilities, net of limitations on deductions of certain employees’ compensation, fluctuations in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions, and state taxes.
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