v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Income Before Income Taxes
For financial reporting purposes, income before income taxes includes the following components (in thousands):
202520242023
United States$160,630 $57,521 $165,869 
Foreign (Canada)205 286 434 
Total$160,835 $57,807 $166,303 
Summary of Income Tax Expense Included in Consolidated Statements of Comprehensive Income
Income tax expense included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands): 
202520242023
Current:
Federal$27,683 $23,362 $29,835 
Foreign55 76 116 
State and local11,244 8,164 10,298 
Total38,982 31,602 40,249 
Deferred:
Federal7,582 (10,920)3,978 
State and local(1,173)(3,913)1,108 
Total6,409 (14,833)5,086 
Total income tax expense 45,391 16,769 45,335 
Summary of Effective Income Tax Rate Reconciliation
The provision for income taxes differed from the amount obtained by applying the statutory U.S. federal income tax rate to income before income taxes. The reconciliation from the statutory U.S. federal tax rate to our effective income tax rate, applying ASU 2023-09 prospectively, is as follows (in thousands, except percentages):
2025
Amount%
Tax at U.S. federal statutory rate$33,775 21.0 %
State taxes (net of federal benefit)(1)
8,119 5.0 %
Foreign tax effects:
Statutory rate difference between Canada and U.S.12 — %
Change in valuation allowances17 — %
Non-taxable or non-deductible items:
Meals and entertainment1,928 1.2 %
Other1,389 0.9 %
Reserves for uncertain tax positions688 0.4 %
Other adjustments(537)(0.3)%
Provision for income taxes $45,391 28.2 %
(1)State and local taxes in California, Massachusetts, New York, New York City and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.
The reconciliation from the statutory U.S federal tax rate to our effective income tax rate, applying ASC 740 prior to the adoption of ASU 2023-09, is as follows (in thousands, except percentages):
20242023
Tax at U.S. federal statutory rate$12,139 $34,924 
State taxes (net of federal benefit)3,182 10,576 
Reserves for uncertain tax positions209 (241)
Share-based compensation(3,907)(5,820)
Meals and entertainment1,193 1,168 
Non-deductible officers' compensation3,762 5,485 
Other, net191 (757)
Provision for income taxes $16,769 $45,335 
Effective income tax rate29.0 %27.3 %
Summary of Cash Flow, Supplemental Disclosures
Cash paid, net of refunds, consisted of the following (in thousands):
2025
Federal$16,000 
State and local7,416 
Foreign161 
Net cash paid for income taxes$23,577 
Summary of Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024, were as follows (in thousands):
20252024
Deferred tax assets:
Net operating loss carryforwards$6,218 $2,912 
Allowance for doubtful accounts11,614 7,596 
Employee benefits and compensation53,517 45,122 
Acquisition-related costs4,176 9,110 
Deferred revenue436 4,446 
Property and equipment— 141 
Lease liabilities97,131 116,080 
Other deferred tax assets3,753 1,103 
Total gross deferred tax assets176,845 186,510 
Less: valuation allowance(3,475)(2,941)
Total deferred tax assets, net173,370 183,569 
Deferred tax liabilities:
Goodwill and other intangibles91,974 85,771 
Right of Use assets 87,537 105,478 
Property and equipment417 — 
Other deferred tax liabilities583 3,200 
Total gross deferred tax liabilities180,511 194,449 
Deferred income taxes, net$(7,141)$(10,880)
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
202520242023
Balance at January 1$2,038 $1,847 $2,111 
Additions for tax positions of the current year164 197 178 
Additions for positions of prior years857 168 103 
Lapse of statutes of limitation(699)(174)(545)
Balance at December 31$2,360 $2,038 $1,847