Income Taxes |
3 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes In connection with the Transaction Agreements (as defined and described in note 13), the 2026 Exchange (as defined below) resulted in a $9.8 million decrease in the deferred tax assets and a $3.7 million increase in the valuation allowance during the three months ended June 30, 2026. In addition, there were exchanges of Class B, Class C and Class D units of the Partnership for Class A common stock by certain limited partners of the Partnership during the three months ended June 30, 2026, resulting in an increase to the deferred tax assets of $14.7 million and a decrease in the valuation allowance of $0.7 million. Additionally, a corresponding Tax Receivable Agreements liability of $13.1 million was recorded, representing 85% of the incremental net cash tax savings for the Company as a result of these exchanges. The Company made payments of $16.2 million and $11.5 million during the three months ended June 30, 2026 and 2025, respectively, under the Tax Receivable Agreements. As of June 30, 2026, the Company’s total Tax Receivable Agreements liability was $341.1 million. See note 12 for more information on the Tax Receivable Agreements. During the three months ended June 30, 2026, the Company recognized an expense within equity-based compensation expense in the condensed consolidated statements of loss to remeasure the profits interests issued in SPW which are accounted for as liability classified awards. This expense is not currently deductible for tax purposes, resulting in a temporary difference that increased the Company’s deferred tax assets by $42.2 million during the three months ended June 30, 2026. See note 9 for more information. The Company’s effective income tax rate was 14.9% and 41.0% for the three months ended June 30, 2026 and 2025, respectively. The overall effective tax rate for the three months ended June 30, 2026 is less than the statutory rate. This is primarily due to a portion of net loss allocated to non-controlling interests and the related tax benefit being borne by the holders of non-controlling interests. The decrease in the effective tax rate for the three months ended June 30, 2026 as compared to the prior year period was mainly driven by a decrease in the tax benefit associated with net loss allocated to non-controlling interests in a period of increased pre-tax net loss. The Global Anti-Base Erosion (“GloBE”) Model Rules established under the Organization for Economic Co-operation and Development’s Pillar Two framework have been adopted in several countries where the Company operates. To date, these legislative changes have not had a material impact on the Company’s effective tax rate. The Company is continuously monitoring the evolving application of this legislation and assessing its potential impact on its future tax liability. The Company evaluates the realizability of its deferred tax assets on a quarterly basis and adjusts the valuation allowance when it is more-likely-than-not that all or a portion of the deferred tax assets may not be realized. As of June 30, 2026, the Company has not recorded any unrecognized tax benefits and does not expect there to be any material changes to uncertain tax positions within the next 12 months.
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