v3.26.3
Income Taxes
9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rates on pre-tax income were 20.5% and 38.3% for the three months ended September 30, 2026 and 2025, respectively, and 32.5% and 34.0% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the Company’s effective tax rate for the three and nine months ended September 30, 2026, was primarily due to increased deductibility of stock-based compensation and limitations on deductibility of executive compensation in the prior year.
For the nine months ended September 30, 2026 and 2025, the effective tax rates differ from the U.S. federal statutory income tax rate as follows:
September 30,
20262025
Tax at federal statutory rate21.0 %21.0 %
State taxes, net6.5 7.1 
Valuation allowance1.4 — 
Permanent items (1)
3.7 7.7 
Tax credits(0.9)(1.8)
Other0.8 — 
Effective income tax rate32.5 %34.0 %
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(1)Includes the deductibility limitations on excess compensation.