v3.26.3
Income Taxes
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Provision for (Benefit from) Income Taxes
Set forth in the following table is the Company’s provision for (benefit from) income taxes (in thousands) and effective tax rate:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Provision for (benefit from) income taxes$2,751 $(23,355)$6,303 $5,614 
Effective tax rate18.3 %447.2 %3.8 %6.7 %
For the three and nine months ended September 30, 2026, period-over-period changes in the provision for (benefit from) income taxes and effective tax rate were primarily driven by changes in the level and jurisdictional mix of earnings, the impact of the One Big Beautiful Bill Act (enacted in July 2025), and, for the nine months ended September 30, 2026, discrete tax benefits related to share-based compensation recognized in the current year period.
Tax Receivable Agreement
The following table summarizes the Company’s tax receivable agreement (“TRA”) (in thousands):
Statements of Operations
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Increase (decrease) in tax receivable agreement liability$12,992 $(20,808)$13,098 $(5,701)
Balance Sheet
September 30, 2026December 31, 2025
Tax receivable agreement liability - short term (1)
$16,323 $38,832 
Tax receivable agreement liability - long term (1)
15,432 18,656 
Total$31,755 $57,488 
(1) Refer to Note 20. Related Party Transactions.
Refer to Note 5. Income Taxes in the Company’s 2025 Annual Report on Form 10-K for information about the Company’s TRA. During the nine months ended September 30, 2026, the Company made payments of $38.8 million associated with the TRA liability for the 2024 tax year.
Contingent Tax Receivable Agreement Liability
The Company had an unrecorded contingent TRA liability of $116.0 million as of September 30, 2026. If utilization of the
Company’s deferred tax assets becomes more-likely-than-not in the future and the related tax benefits are recognized in income, the unrecorded contingent TRA liability will be recorded through charges in the Company’s consolidated statements of operations.