Income taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income taxes | |
| Income taxes | Note 8. Income taxes On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated rate and adjusted for discrete taxable events that may occur in the quarter. As the year progresses, the Company will refine its estimate based on facts and circumstances by each tax jurisdiction. Income tax expense (benefit) was ($992) and ($225), and the effective tax rate (ETR) was 32.13% and 17.02% for the three months ended June 30, 2026 and 2025, respectively. Income tax expense (benefit) was ($4,300) and ($234), and the effective tax rate (ETR) was 29.51% and 17.85% for the six months ended June 30, 2026 and 2025, respectively. The Company’s ETR is different from the expected tax rate due to state taxes, non-deductible items, research and development credits and excess tax benefit associated with stock-based compensation items. Uncertain Tax Positions Based on the Company’s evaluation, there is one unrecognized tax benefit requiring recognition in its financial statements as of June 30, 2026. Any interest and penalties related to uncertain tax positions are recorded in income tax expense (benefit) on the Condensed Consolidated Statements of Comprehensive Income (Loss). The entire balance of unrecognized tax benefits as of June 30, 2026, if recognized, would affect the Company’s effective tax rate. The Company files income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. Federal tax returns for tax years beginning January 1, 2022, and state tax returns for the years beginning January 1, 2021, are open for examination. |