Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 17. Income Taxes The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in those interim periods. The provision for income taxes consists of federal and state taxes in the US, New York, and New York City. For the three and six months ended June 30, 2026, the Company recorded an income tax benefit of $0.6 million and $3.5 million, respectively, resulting in an effective tax rate of 10.2% and 35.4%, respectively. The Company’s taxable income is generated in the United States and taxed at a federal and state statutory rate of 33.7%. Relative to the federal and state statutory rate, the effective tax rate for the six months ended June 30, 2026 was primarily increased by the loss attributable to the noncontrolling interest in the non-taxable partnership entities. For three and six months ended June 30, 2025, the Company recorded an income tax expense of $49.3 million. The effective tax rate for the three and six months ended June 30, 2025 was (2,740.9%). Relative to the federal and state statutory rate, the effective tax rate for the six months ended June 30, 2025, was primarily impacted by the consummation of the Business Combination on April 7, 2025, which resulted in one-time adjustments of $50.6 million in tax expense during the three months ended June 30, 2025. The effective tax rate was negative due to substantial tax expense being recognized against a relatively small pre-tax loss year to date. In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, the Company has determined that no valuation allowance is required as of June 30, 2026 and December 31, 2025. The Company’s policy is to recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision and include accrued interest and penalties with the related income tax liability on the Company’s Condensed Consolidated Balance Sheets. To date, the Company has not recognized any interest and penalties in its Condensed Consolidated Statements of Operations, nor has it accrued for or made payments for interest and penalties. The Company has no unrecognized tax benefits as of June 30, 2026 and December 31, 2025. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. Under OBBBA, the Company is permitted to claim 100% bonus depreciation and fully deduct domestic research expenditures under Section 174A. These provisions accelerate tax deductions but do not create permanent tax differences; therefore, the impact is timing related only and does not materially affect the Company’s consolidated financial statements. |