Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes | |
| Income Taxes | 10. Income Taxes
The Company’s effective tax rate was 3.0% and (40.9)% for the three and six month periods ended June 30, 2026, respectively. The Company’s effective tax rate was 7.8% and 9.8% for the three and six month periods ended June 30, 2025, respectively. During the three month period ended June 30, 2026, the Company recognized excess tax benefits related to stock-based compensation of $0.4 million as a discrete tax benefit in the provision for income taxes. The Company also recorded an increase in its valuation allowance of $0.4 million against deferred tax assets related to stock-based compensation deductions, based on management’s assessment of the realizability of those deferred tax assets under ASC 740. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets and state minimum taxes in the United States. The effective tax rate is calculated by dividing the income tax provision (benefit) by the income (loss) before income tax provision (benefit). |