v3.26.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Consolidated Income Tax Benefit (Expense)
The components of the Company’s Income (loss) before income taxes are as follows:
Year ended December 31,
(in thousands)202520242023
United States$(223,032)$(325,280)$(197,191)
Foreign19 (7)56 
Income (loss) before income taxes$(223,013)$(325,287)$(197,135)
The Company conducts most of its operations through GREC, its wholly owned subsidiary that is taxable as a corporation. The Company’s consolidated Benefit from income taxes consists of the following:
Year ended December 31,
(in thousands)202520242023
Current (benefit) income tax provision:
Federal$— $— $— 
State— — — 
Foreign3 — — 
Current (benefit) provision for income taxes$3 $— $— 
Deferred (benefit) income tax provision:
Federal$(643)$(20,189)$(19,269)
State(7,486)813 (2,290)
Foreign2 (2)11 
Deferred (benefit) provision for income taxes$(8,127)$(19,378)$(21,548)
Total (benefit) provision for income taxes$(8,124)$(19,378)$(21,548)
The following table presents the Company’s consolidated income tax benefit (expense) for the following periods:
Three months ended
March 31,
(in thousands)20262025
Income tax (expense) benefit$(6,173)$10,374 
Schedule of Effective Tax Rate Reconciliation
The Company adopted ASU 2023-09 on a prospective basis, as such, for the year ended December 31, 2025, below is the reconciliation of the Benefit from income taxes to the amount calculated by applying the 21% statutory U.S. federal income tax rate to Income (loss) before income taxes after the adoption of ASU 2023-09:
Year ended December 31, 2025
(in thousands)AmountPercentage
Tax (benefit) at statutory U.S. federal income tax rate$(46,833)21.0 %
State income taxes, net of federal benefit(1)
(7,486)3.4 %
Other tax credits(100)— %
Change in valuation allowance40,940 (18.4)%
Nontaxable or nondeductible items:
Noncontrolling interest4,251 (1.9)%
Other1,104 (0.5)%
 Provision (benefit) for income taxes$(8,124)3.6 %
__________________
(1)The states that contribute to the majority (greater than 50 percent) of the state and local tax effect are California, Iowa, Montana and New York.
A reconciliation of the Benefit from income taxes to the amount calculated by applying the 21% statutory U.S. federal income tax rate to Income (loss) before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year ended December 31,
(in thousands)2024Percentage2023Percentage
Tax (benefit) at statutory U.S. federal income tax rate$(68,311)21.0 %$(41,398)21.0 %
State income taxes, net of federal benefit(5,239)1.6 %(7,050)3.6 %
Noncontrolling interest13,358 (4.1)%20,184 (10.2)%
Share-based compensation(2,917)0.9 %1,816 (0.9)%
Impairment of goodwill45,734 (14.1)%— — %
Nontaxable parent - GREC LLC treated as a partnership for U.S. tax purposes(7,466)2.3 %647 (0.3)%
Federal tax credits(1,174)0.3 %(1,293)0.6 %
Change in valuation allowance4,290 (1.3)%4,330 (2.2)%
Permanent differences (other - net)2,347 (0.7)%1,216 (0.7)%
 Provision (benefit) for income taxes$(19,378)5.9 %$(21,548)10.9 %
Schedule of Deferred Tax Assets (Liabilities)
Deferred tax assets (liabilities) reported on the accompanying Consolidated Balance Sheets as of December 31, 2025 and 2024 are as follows:
(in thousands)December 31, 2025December 31, 2024
Net operating and other losses$152,873 $113,376 
Long-term debt and failed sale-leaseback financing82,692 90,678 
Federal tax credits19,150 19,508 
Operating lease liabilities34,449 35,258 
Asset retirement obligations1,759 7,193 
Other10,429 9,917 
Total deferred tax assets301,352 275,930 
Less: Valuation allowance(54,700)(10,790)
Deferred tax assets, net of valuation allowance$246,652 $265,140 
Property, plant, and equipment$(91,193)$(97,701)
Investments in flow-through entities taxed as partnerships(111,363)(106,727)
Intangibles(17,606)(30,728)
Derivative assets(18,909)(30,537)
Operating lease assets(32,187)(34,725)
Total deferred tax liabilities(271,258)(300,418)
Deferred tax liabilities, net$(24,606)$(35,278)