v3.26.1
Income Tax Provision
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Provision

NOTE 6 – Income Tax Provision

The table below sets forth information related to our income tax expense:

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Domestic pre-tax income

$

23,400

 

 

$

75,626

 

 

$

22,444

 

 

$

90,249

 

Foreign pre-tax income (loss)

$

32,213

 

 

$

(22,403

)

 

$

53,271

 

 

$

(39,793

)

Income tax provision

$

6,847

 

 

$

9,063

 

 

$

10,847

 

 

$

9,083

 

Effective tax rate

 

12.3

%

 

 

17.0

%

 

 

14.3

%

 

 

18.0

%

Impact of tax holidays on tax expense

$

(689

)

 

$

(289

)

 

$

(845

)

 

$

(463

)

Earnings per share impact of tax holidays:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.02

 

 

$

0.01

 

 

$

0.02

 

 

$

0.01

 

Diluted

$

0.02

 

 

$

0.01

 

 

$

0.02

 

 

$

0.01

 

For the three and six months ended June 30, 2026, the effective tax rate differs from the 21% U.S. statutory income tax rate primarily due to the impact of research and development tax incentives and nontaxable investment gains included in pretax income, partially offset by taxes on foreign income and nondeductible compensation.

For the three and six months ended June 30, 2025, the effective tax rate differs from the 21% U.S. statutory income tax rate primarily due to the impact of research and development tax incentives, partially offset by taxes on foreign income and nondeductible compensation.

The decrease in effective tax rate for the three and six months ended June 30, 2026, when compared to the three and six months ended June 30, 2025, is primarily due to the change in pre-tax earnings during the comparable periods, including the geographical mix of pre-tax income and loss across tax jurisdictions and changes in conclusions regarding the realizability of certain deferred tax assets.