Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items that occur during the period. These estimates are updated at each reporting period. During the three and six months ended June 30, 2026, the Company recognized $2.4 million and $5.3 million in income tax expense, respectively. The effective tax rates for the three and six months ended June 30, 2026 of 26.6% and 25.5%, respectively, differed from the federal statutory rate of 21.0% primarily due to a blended state tax rate of 6.0% and non-deductible stock-based compensation and officer’s compensation, offset by rate reductions for R&D credits claimed. During the three and six months ended June 30, 2025, the Company recognized $2.0 million in income tax expense and $2.3 million in income tax benefit, respectively. The effective tax rates for the three and six months ended June 30, 2025, of (8.2)% and 4.7%, respectively, was inclusive of the federal statutory rate of 21.0% and a blended state tax rate of 6.4%, partially offset by decreases related to incentive stock options and change in valuation allowance. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. This legislation introduces several provisions impacting corporate taxes including the permanent extension of certain expiring elements of the Tax Cuts and Jobs Act, 100% bonus depreciation, favorable modifications related to deductibility of interest, and expensing of research and experimental expenses. The OBBBA contains multiple effective dates, with some provisions applicable beginning in 2025. The reinstatement of expensing of domestic research and experimental expenses was the most impactful provision, which significantly reduced the Company’s federal taxable income in 2025. Most states have not confirmed whether they will conform to the federal changes or not, and the provision has been prepared based on states’ guidance based on prior law changes. No other provisions are expected to materially impact the Company in 2026.
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