Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Taxes | |
| Income Taxes | Note 5 – Income Taxes
For the three and nine months ended September 30, 2026, the Company recorded an income tax expense of $0.3 million and $1.1 million, respectively. The effective tax rate for the three and nine months ended September 30, 2026 was 22.7% and 19.0%, respectively, which includes applying the projected annual effective tax rate of 27.3% before discrete events and accounting for discrete items, such as additional tax benefits of stock compensation realized during the applicable periods.
For the three and nine months ended September 30, 2025, the Company recorded an income tax expense of $0.1 million and $0.2 million, respectively. The effective tax rate for the three and nine months ended September 30, 2025 was (3.5)% and 5.4%, respectively. The effective tax rate differs from the statutory federal rate of 21% due primarily to the application of valuation allowances. The Company’s conclusion regarding the realizability of its deferred tax assets changed during 2025 due to its history of earnings and expectations of continuing taxable income, resulting in the release of its valuation allowance, with certain limited exceptions, as of December 31, 2025.
At September 30, 2026 and 2025, the Company’s total unrecognized tax benefits, excluding interest, were $0.1 million and $0 respectively. As of September 30, 2026 and September 30, 2025, the Company had less than $0.1 million and $0, respectively, of accrued penalties and interest reflected in accrued expenses. |