Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes In computing the provision for income taxes for interim periods, the Company estimates the annual effective tax rate for the full year, which is then applied to the actual year-to-date ordinary income (loss) and reflects the tax effects of discrete items in its provision for income taxes as they occur. The provision for income taxes for the three months ended June 30, 2026 and 2025 was and $5.6 million, respectively. The provision for income taxes for the six months ended June 30, 2026 and 2025 was and $11.6 million, respectively. The increase was primarily driven by the year-over-year change in the geographical distribution of income and the varying tax regimes of jurisdictions and the recognition of discrete tax benefits during the period. The effective tax rate for the three months ended June 30, 2026 and 2025 was 10.6% and 21.2%, respectively. The effective tax rate for the six months ended June 30, 2026 and 2025 was 13.3% and 13.7%, respectively. The decrease was primarily driven by the geographical distribution of income and the varying tax regimes of jurisdictions. Excelerate is a corporation for U.S. federal and state income tax purposes. EELP is treated as a pass-through entity for U.S. federal income tax purposes and, as such, has generally not been subject to U.S. federal income tax at the entity level. The Company has international operations that are also subject to foreign income tax and U.S. corporate subsidiaries subject to U.S. federal tax. Therefore, its effective income tax rate is dependent on many factors, including geographical distribution of income, a rate benefit attributable to the portion of the Company’s earnings not subject to corporate level taxes, and the impact of nondeductible items and foreign exchange impacts as well as varying tax regimes of jurisdictions. In one jurisdiction, the Company’s tax rate is significantly less than the applicable statutory rate as a result of a tax holiday that was granted. This tax holiday will expire in 2033 at the same time that the Company’s contract with and revenue from its customer ends. |