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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The Company recognized income tax expense of $22.4 million for the three months ended September 30, 2025, compared to $18.7 million in the three months ended September 30, 2024, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $0.9 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the three months ended September 30, 2025 was 24.8%, compared to 25.8% in the prior-year quarter.
The Company recognized income tax expense of $60.1 million for the nine months ended September 30, 2025, compared to $34.7 million in the nine months ended September 30, 2024, with the increase primarily due to the effects of higher pre-tax income levels and the non-recurrence of a $15.6 million discrete tax benefit, which was recognized in the prior-year period in
connection with the amendment of certain U.S. federal and state tax returns to claim a worthless stock deduction, partially offset by a $0.7 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the nine months ended September 30, 2025 was 24.4%, compared to 17.3% in the prior-year period.
On July 4, 2025, H.R.1, new tax legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), was enacted in the U.S. The OBBBA includes a broad range of tax provisions, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The new legislation did not have a material impact on the Company’s effective tax rate for the three months ended September 30, 2025, and the Company does not currently anticipate that it will have a material impact on its effective tax rate for the year ended December 31, 2025. The Company currently expects the new legislation may result in certain cash tax savings for the year ended December 31, 2025, and is continuing to assess the impact of this new legislation on its financial statements in subsequent years.