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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

During the three and nine months ended September 30, 2025 and during the three months ended September 30, 2024, the Company recognized an income tax provision of $11,850, $26,421, and $7,546, respectively, representing an effective tax rate of 20.9%, 19.9%, and 25.1%, respectively. During the nine months ended September 30, 2024, the Company recognized an income tax benefit of $5,772, representing an effective tax rate of 18.8%.

The effective tax rate for the three months ended September 30, 2025 and for the nine months ended September 30, 2025, was lower than the statutory tax rate of 21% principally due to windfall tax benefits and federal and state research development tax credits, which were partially offset by state and local income taxes, the Section 162(m) excess officer compensation limitation, and non-deductible meals and commuter fringe benefits.

The effective tax rate for the three months ended September 30, 2024, was greater than the statutory tax rate of 21% principally due to state and local income taxes, the Section 162(m) excess officer compensation limitation, and non-deductible meals and commuter fringe benefits, partially offset by federal and state research development tax credits. The effective tax rate for the nine months ended September 30, 2024, was less than the statutory tax rate of 21% principally due to federal and state research and development tax credits, stock-based compensation windfalls, and the discrete tax benefit associated with the impairment charges, partially offset by state and local income taxes, the Section 162(m) excess officer compensation limitation, and non-deductible meals and commuter fringe benefits.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes significant tax provisions, such as accelerated cost recovery of qualified property, immediate expensing of U.S.-based research and development costs, and changes to the U.S. international taxation regime. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The impact of these changes will be recognized in the period in which the legislation was enacted. The OBBBA includes a provision which allows for immediate expensing of domestic research costs and accelerated amortization of previously capitalized domestic research costs. For the nine months ended September 30, 2025, the Company has incorporated the change into its provision for income taxes. Accordingly, the change has decreased deferred tax assets and increased prepaid expenses, prepaid income taxes, and other current assets within the Unaudited Condensed Consolidated Balance Sheets. The OBBBA did not have a material impact on the Company’s effective tax rate for the three and nine months ended September 30, 2025. The Company does not expect the OBBBA to have a material impact on its future effective tax rate. The Company will continue to monitor developments related to OBBBA and will update its disclosures as appropriate.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and in various foreign jurisdictions. The Company’s tax filings remain subject to audits by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Tax years 2021 and forward generally remain open for examination for federal, state, and foreign tax purposes.