v3.26.1
Provision for Income Tax
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Provision for Income Tax
14.
Provision for Income Tax

The following table summarizes the Company’s income tax expense and effective tax rate for the three and six months ended June 30, 2026 and 2025:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands, except percent)

 

Income before provision for income taxes

 

$

19,265

 

 

$

8,591

 

 

$

27,897

 

 

$

7,101

 

Provision for income taxes

 

 

5,233

 

 

 

1,784

 

 

 

6,071

 

 

 

5,092

 

Effective tax rate

 

 

27.2

%

 

 

20.8

%

 

 

21.8

%

 

 

71.7

%

The Company’s effective income tax rate of 27.2% for the three months ended June 30, 2026 was higher than the U.S. federal statutory rate of 21.0%, primarily due to state income taxes net of federal benefit, uncertain tax positions, non-deductible executive compensation under Section 162(m) of the Internal Revenue Code, and other non-deductible expenses.

The Company’s effective income tax rate of 21.8% for the six months ended June 30, 2026 was higher than the U.S. federal statutory rate of 21.0%, primarily due to state income taxes net of federal benefit, uncertain tax positions, non-deductible executive compensation under Section 162(m) of the Internal Revenue Code and other non-deductible expenses, partially offset by a favorable discrete tax benefit related to the revaluation of the Company’s state deferred tax liabilities arising from the changes in the combined state tax rate following the Seemann Acquisition.