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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | . Income Taxes Income (loss) from continuing operations before income taxes consists of the following (in thousands):
|  | For the Years Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
U.S. operations |  | $ | 137,723 |  |  | $ | (95,555 | ) |  | $ | (213,971 | )
Foreign operations |  |  | 218 |  |  |  | 237 |  |  |  | 197 |
Income (loss) before income taxes |  | $ | 137,941 |  |  | $ | (95,318 | ) |  | $ | (213,774 | )
Income tax expense (benefit) attributable to income (loss) from continuing operations before income taxes is summarized as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Current provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | 19,538 |  |  | $ | 1,296 |  |  | $ | 12,549 |
State |  |  | 8,024 |  |  |  | 1,998 |  |  |  | 4,175 |
Foreign |  |  | 35 |  |  |  | 50 |  |  |  | 39 |
Total current provision |  |  | 27,597 |  |  |  | 3,344 |  |  |  | 16,763 |
Deferred provision: |  |  |  |  |  |  |  |  |
Federal |  |  | 1,524 |  |  |  | (25,004 | ) |  |  | (40,106 | )
State |  |  | 4,024 |  |  |  | (4,727 | ) |  |  | (8,165 | )
Total deferred provision |  |  | 5,548 |  |  |  | (29,731 | ) |  |  | (48,271 | )
Total income tax provision: |  |  |  |  |  |  |  |  |
Federal |  |  | 21,062 |  |  |  | (23,708 | ) |  |  | (27,557 | )
State |  |  | 12,048 |  |  |  | (2,729 | ) |  |  | (3,990 | )
Foreign |  |  | 35 |  |  |  | 50 |  |  |  | 39 |
Income tax expense (benefit) |  | $ | 33,145 |  |  | $ | (26,387 | ) |  | $ | (31,508 | )
A reconciliation of the U.S. federal income tax rate of 21.0% to income tax expense (benefit) expressed as a percent of pretax income (loss) is as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | Amount |  | Rate |  |  | Amount |  | Rate |  |  | Amount |  | Rate |
U.S. federal statutory tax rate |  | $ | 28,968 |  |  | 21.0 | % |  | $ | (20,017 | ) |  | 21.0 | % |  | $ | (44,893 | ) |  | 21.0 | %
State and local income taxes, net of federal income tax effect (1) |  |  | 9,518 |  |  | 6.9 | % |  |  | (719 | ) |  | 0.8 | % |  |  | (5,029 | ) |  | 2.4 | %
Foreign tax effects |  |  | (11 | ) |  | 0.0 | % |  |  | 15 |  |  | 0.0 | % |  |  | 12 |  |  | 0.0 | %
Tax credits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employment tax credits |  |  | (1,752 | ) |  | (1.3 | )% |  |  | (2,609 | ) |  | 2.7 | % |  |  | (2,963 | ) |  | 1.4 | %
Other tax credits |  |  | (200 | ) |  | (0.1 | )% |  |  | (300 | ) |  | 0.3 | % |  |  | (350 | ) |  | 0.2 | %
Nontaxable or nondeductible items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal claims |  |  | 130 |  |  | 0.1 | % |  |  | (12,915 | ) |  | 13.5 | % |  |  | 24,150 |  |  | (11.3 | )%
Share based compensation |  |  | (12,663 | ) |  | (9.2 | )% |  |  | 4,380 |  |  | (4.6 | )% |  |  | (2,013 | ) |  | 0.9 | %
Executive compensation |  |  | 8,187 |  |  | 5.9 | % |  |  | 1,017 |  |  | (1.1 | )% |  |  | — |  |  | — |
Acquisition impacts |  |  | — |  |  | — |  |  |  | 1,819 |  |  | (1.9 | )% |  |  | — |  |  | — |
Other |  |  | 2,290 |  |  | 1.7 | % |  |  | 2,950 |  |  | (3.1 | )% |  |  | (1,436 | ) |  | 0.6 | %
Changes in unrecognized tax benefits |  |  | (1,322 | ) |  | (1.0 | )% |  |  | (8 | ) |  | 0.1 | % |  |  | 1,014 |  |  | (0.5 | )%
Total |  | $ | 33,145 |  |  | 24.0 | % |  | $ | (26,387 | ) |  | 27.7 | % |  | $ | (31,508 | ) |  | 14.7 | %
(1) State/local taxes in California, New York, New York City, Virginia, New Jersey and Florida made up the majority (greater than 50%) of the tax effect in this category. On December 27, 2020, the Consolidated Appropriations Act was signed into law and extended the jobs credit provisions through 2025. Accordingly, jobs credits generated during the year have been recognized in the provision for income taxes for all years presented. Net cash paid for income taxes consisted of the following (in thousands):
|  | For the Years Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Federal |  | $ | 18,431 |  |  | $ | 19,347 |  |  | $ | 27,297 |
Aggregated state and local jurisdictions |  |  | 8,449 |  |  |  | 4,156 |  |  |  | 10,202 |
Disaggregated state and local jurisdictions: |  |  |  |  |  |  |  |  |
Virginia |  | * |  |  |  | 1,410 |  |  |  | — |
Foreign |  | 90 |  |  |  | 40 |  |  |  | — |
Net cash paid for income taxes |  | $ | 26,970 |  |  | $ | 24,953 |  |  | $ | 37,499 |
* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):
|  | December 31, 2025 |  |  | December 31, 2024 |
Deferred tax assets: |  |  |  |  |  |
Accrued expenses |  | $ | 53,538 |  |  | $ | 44,957 |
Allowance for credit losses and contractual allowances |  |  | 36,980 |  |  |  | 22,546 |
Net operating losses |  |  | 13,389 |  |  |  | 18,796 |
Share-based compensation |  |  | 22,361 |  |  |  | 15,799 |
IRC §163(j) interest |  |  | 67,438 |  |  |  | 96,961 |
Operating lease liability |  |  | 65,906 |  |  |  | 62,587 |
Interest rate swaps |  |  | 93 |  |  |  | — |
Other |  |  | 29,870 |  |  |  | 21,325 |
Deferred tax assets |  |  | 289,575 |  |  |  | 282,971 |
Valuation allowances |  |  | (7,128 | ) |  |  | (8,968 | )
Deferred tax assets, net |  |  | 282,447 |  |  |  | 274,003 |
Deferred tax liabilities: |  |  |  |  |  |
Operating lease right-of-use asset |  |  | (74,027 | ) |  |  | (60,587 | )
Property and equipment |  |  | (11,789 | ) |  |  | (6,575 | )
Goodwill and other intangible assets |  |  | (198,377 | ) |  |  | (190,272 | )
Insurance recovery |  |  | (4,432 | ) |  |  | (8,677 | )
Interest rate swaps |  |  | — |  |  |  | (2,604 | )
Deferred tax liabilities |  |  | (288,625 | ) |  |  | (268,715 | )
Deferred income taxes, net |  | $ | (6,178 | ) |  | $ | 5,288 |
As of December 31, 2025, the Company has federal net operating loss (“NOL”) carryforwards of $11.3 million ($2.4 million deferred tax asset) that resulted from stock acquisitions the Company completed from 2013 through 2024. These NOLs are subject to limitations under Internal Revenue Code (“IRC”) §382. However, the Company expects that it will more-likely-than-not be able to use the recorded amount which takes into account the limitations of the carryforwards. The deferred tax asset for state NOL carryforwards is $4.3 million, net of the federal tax impact and valuation allowances of $7.1 million. The state NOLs have carryforward periods ranging from 1 to 20 years depending on the taxing jurisdiction. The Company is subject to the business interest expense limitation under IRC §163(j), which generally caps deductible interest at 30% of adjusted taxable income. The limitation in any given year may be carried forward indefinitely and deducted as interest expense in future periods. The One Big Beautiful Bill Act, enacted July 4, 2025, introduced modifications to the §163(j) framework that may affect the Company’s future utilization of interest expense carryforwards. As of the reporting date, the Company has federal interest expense carryforwards of $259.6 million, resulting in a deferred tax asset of $54.5 million, and state deferred tax assets of $12.9 million available for utilization in future years. A valuation allowance for deferred tax assets was provided as of December 31, 2025 and 2024 related to state income tax NOL carryforwards. The realization of deferred tax assets is dependent upon generating future taxable income when temporary differences become deductible. Based upon the historical and projected levels of taxable income, we believe it is more-likely-than-not that we will realize the benefits of the deductible differences after consideration of the valuation allowance. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):
|  | December 31, 2025 |  |  | December 31, 2024 |
Balance at beginning of year |  | $ | 1,493 |  |  | $ | 1,502 |
Decrease related to prior year tax positions |  |  | — |  |  |  | (9 | )
Payments |  |  | (146 | ) |  |  | — |
Lapse of statute of limitations |  |  | (1,322 | ) |  |  | — |
Balance at end of year |  | $ | 25 |  |  | $ | 1,493 |
The potential benefits included in the balance of total unrecognized tax benefits at December 31, 2025 and 2024 are immaterial, which if recognized, would have an immaterial effect on the effective tax rate in each respective year. Unrecognized tax benefits that reduce a NOL, similar tax loss or tax credit carryforward are presented as a reduction to deferred income taxes. We file numerous consolidated and separate income tax returns in the U.S. federal and various state and foreign jurisdictions. With few exceptions, we are no longer subject to income tax examinations by the taxing authorities for years prior to 2020. We believe that we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for income tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of the tax laws as applied to the facts of each matter. Total accrued interest and penalties as of December 31, 2025 and 2024 are no t material and are included in accrued expenses on the consolidated balance sheets.

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