Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.26.1
Income Taxes
3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
During the three months ended March 31, 2026 and 2025, the Company recorded a provision for income taxes totaling $0.4 million and $0.5 million, respectively, on pre-tax income of $1.4 million and $0.3 million, respectively, representing effective tax rates of 28% and 205%, respectively. The effective tax rates differed from the U.S. statutory rate mainly due to the effects of local, state and foreign jurisdiction income taxes, limitations on the deductions of certain expenses including meals and entertainment expense and management compensation and differences between expense recognized for book purposes versus tax purposes associated with equity compensation expense. The impact of permanent differences weighs heavier on the effective tax rate when pre-tax earnings are close to break even.