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

5. Income Taxes

The Company calculates income taxes at the end of each reporting period based on the estimated effective tax rate for the full year, adjusted for any discrete events which are recorded in the period they occur. Cumulative adjustments to the tax provision are recorded in the reporting period in which a change in the estimated annual effective tax rate is determined. The Company’s income tax expense and effective tax rate are presented below:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Income tax expense

 

$

18,796

 

 

$

25,762

 

 

$

56,784

 

 

$

49,346

 

Effective tax rate

 

 

20.0

%

 

 

24.6

%

 

 

22.7

%

 

 

24.5

%

Our effective tax rate for the three months ended June 30, 2026 differs from the U.S. statutory rate of 21% primarily due to the non-taxable change in fair value of contingent consideration, partially offset by state income taxes and the change in valuation allowance related to the fluctuation in value of our investment in equity securities balance.

Our effective tax rate for the six months ended June 30, 2026 differs from the U.S. statutory rate of 21% primarily due to state income taxes, partially offset by the non-taxable change in fair value of contingent consideration.