Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The provision for income taxes was $3.4 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, resulting in an effective tax rate of 51.2% and 0.9%, respectively. The provision (benefit) for income taxes was ($1.7 million) and $5.9 million for the six months ended June 30, 2026 and 2025, respectively, resulting in an effective tax rate of 12.3% and 9.7%, respectively. The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (loss) before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rates for the three and six months ended June 30, 2026 and 2025 differed from the U.S. federal statutory rate primarily due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits that generally decrease the rate. These adjustments have the inverse impact on the effective tax rate in periods with a loss before taxes. Changes in our forecasted earnings and taxable income between the first and second quarter have impacted our effective tax rate for the three and six months ended June 30, 2026. Additionally, discrete tax adjustments recorded in the first and second quarter of 2025 related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million and $7.9 million, respectively, offset slightly by state tax legislation changes, resulted in a net 24.7% and 15.7% decrease in the rate for the three and six months ended June 30, 2025, respectively. On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted into law which includes numerous tax provisions affecting businesses, including the reinstatement of full expensing of domestic research and experimental expenditures, modification of the limitation on business interest and making permanent full expensing for certain business property. Several of the major business provisions in the Act became effective in 2025 while other business tax changes are effective for the 2026 tax year. The major business provisions in the Act reduced our cash taxes in 2025 and are expected to reduce our cash taxes in future periods.
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