XML 24 R13.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective tax rates for the three and nine months ended September 30, 2025 were 27.9% and 31.5%, respectively. Our effective tax rate for the three months ended September 30, 2025 was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, higher taxes on earnings in foreign jurisdictions, and the non-deductibility of losses related to certain foreign operations and the revaluation of earnout liabilities. These increases were partially offset by tax benefits related to research and development activities. Our effective tax rate for the nine months ended September 30, 2025 was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes, higher taxes on earnings in foreign jurisdictions, and the non-deductibility of losses related to the warrant fair value adjustments and the revaluation of earnout liabilities. These increases were partially offset by the reduction in the valuation allowance related to our foreign tax credit carryforward and tax benefits related to research and development activities.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA') was enacted. OBBBA, among other provisions, allows for the immediate expensing of domestic research and development expenditures. We have completed our preliminary analysis of the Act and have concluded that it does not have a material impact on our consolidated financial statements or effective tax rate for the three and nine months ended September 30, 2025.
Our effective tax rates for the three and nine months ended September 30, 2024 were 22.5% and 24.2%, respectively. Our effective tax rate was higher than the United States federal statutory rate of 21.0% due primarily to state income taxes and higher taxes on earnings in foreign jurisdictions, partially offset by excess tax benefits on the settlement of employee share-based compensation, tax benefits related to research and development activities, and tax benefits related to the revaluation of certain acquisition earnout liabilities.
As of September 30, 2025 and December 31, 2024, we had approximately $12,782,000 and $11,060,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,646,000 and $1,449,000, respectively, related to accrued interest. In the future, if recognized, the remaining liability associated with uncertain tax positions could affect our effective tax rate. We do not believe there will be changes to our unrecognized tax benefits over the next 12 months that would have a material effect on our effective tax rate.
We are currently under audit in various jurisdictions for tax years 2017 through 2022. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant.