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Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 11 — Income Taxes
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Income tax expense$12,623 $7,243 $15,964 $8,702 
Effective tax rate19.7 %15.9 %17.5 %12.5 %
Three Months Ended June 30, 2026 v. 2025
The effective tax rate for the quarter ended June 30, 2026, was 19.7%, which reflects the US federal statutory rate of 21% on pre-tax income, increased by the impact of state income taxes, offset by the tax benefits of income attributable to non-controlling interests and federal tax credits. The increase in the effective tax rate from 15.9% in the same period in 2025 is primarily due to the increase in our ownership of Dutch Bros OpCo.
Six Months Ended June 30, 2026 v. 2025
The effective tax rate for the six months ended June 30, 2026, was 17.5%, which reflects the US federal statutory rate of 21% on pre-tax income, increased by the impact of state income taxes, offset by the tax benefits of income attributable to non-controlling interests and federal tax credits. The increase in the effective tax rate from 12.5% in the same period in 2025 is due to a decrease in the benefit from stock compensation, as well as an increase i
Tax Receivable Agreements
In connection with our IPO, we executed two TRAs which require payment to certain Dutch Bros OpCo owners of 85% of the income tax benefits, if any, that we actually realize or in some cases is deemed to realize (calculated using certain assumptions) as a result of certain tax attributes and benefits covered by the TRAs.
The TRAs-related liabilities are classified on our condensed consolidated balance sheets as current or non-current based on the expected date of payment under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively.
As of June 30, 2026, our total TRAs-related liabilities were $973.0 million. The changes related to these liabilities were as follows:
(in thousands)June 30, 2026December 31, 2025
Beginning balance$821,049 $627,834 
Additions (reductions) to TRAs:
Exchange of Dutch Bros OpCo Class A common units for Class A common stock166,291 202,680 
Payments under TRA
(13,953)(4,698)
TRAs remeasurements and other 1
(437)(4,767)
Ending balance$972,950 $821,049 
Less: current portion(686)(7,696)
TRAs liability, net of current portion$972,264 $813,353 
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1 For 2025, the impact primarily related to state tax rates and adjustments from previous estimates upon finalization of the tax attributes subject to the TRAs. For 2026, the impact is related to the increase in the valuation allowance for charitable contributions that are not expected to be utilized
For the three and six months ended June 30, 2026 in connection with our Tax Receivable Agreements, deferred tax assets associated with our investment in Dutch Bros OpCo increased $179.0 million due to the exchange of approximately 10.6 million units of our Class A common units for Class A common stock. In addition, during three and six months ended June 30, 2026 the TRA liability increased $166.3 million as a result of these exchanges, all of which occurred in Q2 2026.