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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | 19. Income Taxes Provision for (benefit from) income taxes consists of the following for the periods presented (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 19,410 |  |  | $ | 6,133 |  |  | $ | 68,939 |
State |  |  | 5,062 |  |  |  | 2,932 |  |  |  | 14,413 |
Foreign |  |  | 416 |  |  |  | 622 |  |  |  | 933 |
Total current provision |  |  | 24,888 |  |  |  | 9,687 |  |  |  | 84,285 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (32,254 | ) |  |  | 63,534 |  |  |  | (72,046 | )
State |  |  | 33,231 |  |  |  | 3,806 |  |  |  | (22,495 | )
Foreign |  |  | 117 |  |  |  | 368 |  |  |  | 557 |
Total deferred provision |  |  | 1,094 |  |  |  | 67,708 |  |  |  | (93,984 | )
Provision for (benefit from) income taxes |  | $ | 25,982 |  |  | $ | 77,395 |  |  | $ | (9,699 | )
As further described in Note 2 – Summary of Significant Accounting Policies, the Company elected to prospectively adopt the guidance in ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 (in thousands):
|  | Year Ended December 31, 2025 |
|  | Amount |  | % |
U.S. federal statutory tax rate |  | $ | (223,847 | ) |  | 21.0 | %
State and local income taxes, net of federal income tax effect (1) |  |  | 36,819 |  |  | (3.5 | )%
Foreign tax effects |  |  | 116 |  |  | 0.0 | %
Tax credits |  |  | (4,705 | ) |  | 0.4 | %
Changes in valuation allowances |  |  | (69 | ) |  | 0.0 | %
Nontaxable or nondeductible items: |  |  |  |  |
Nondeductible goodwill impairment |  |  | 209,202 |  |  | (19.6 | )%
Other |  |  | 3,801 |  |  | (0.3 | )%
Changes in unrecognized tax benefits |  |  | 4,758 |  |  | (0.4 | )%
Other adjustments |  |  | (93 | ) |  | 0.0 | %
Effective income tax rate |  | $ | 25,982 |  |  | (2.4 | )%
(1) State and local taxes in Pennsylvania, Tennessee, California, and Arkansas combined comprise greater than 50% of the total in this category. Below is a reconciliation of the statutory federal income tax expense and the Company’s total income tax expense for the years ended December 31, 2024 and 2023:
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
U.S. federal statutory rate on income before income taxed |  |  | 21.0 | % |  |  | 21.0 | %
Impact of foreign operations |  |  | 0.1 | % |  |  | (2.2 | )%
State income taxes, net of federal tax effect |  |  | 2.0 | % |  |  | 45.6 | %
Nondeductible expenses and permanent differences |  |  | 1.3 | % |  |  | (30.7 | )%
Change in valuation allowance |  |  | (0.3 | )% |  |  | (0.1 | )%
Unrecognized tax benefit |  |  | 0.2 | % |  |  | (14.8 | )%
Federal tax credits |  |  | (1.6 | )% |  |  | 9.8 | %
Noncontrolling interest |  |  | (0.6 | )% |  |  | 7.4 | %
Other |  |  | 0.5 | % |  |  | 2.2 | %
Effective income tax rate |  |  | 22.6 | % |  |  | 38.2 | %
For the year ended December 31, 2025, the provision for income taxes was $26.0 million, reflecting an effective tax rate of (2.4)%, compared to provision for income taxes of $77.4 million, reflecting an effective tax rate of 22.6%, for the year ended December 31, 2024. The Company’s pre-tax loss for the year ended December 31, 2025 included $996.2 million of goodwill impairment expense, which is nondeductible for income tax purposes and results in a decrease to the effective tax rate given the Company’s pre-tax loss position. Similarly, the Company recorded additional tax expense for the year ended December 31, 2025 in connection with a valuation allowance recorded on certain state deferred tax assets, which also resulted in a decrease to the Company's effective tax rate for the year ended December 31, 2025. The table below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (in thousands):
|  | Year Ended December 31, 2025 |
Federal |  | $ | 22,000 |
State: |  |  |
Tennessee |  |  | 1,574 |
Other |  |  | 6,039 |
Foreign |  |  | 481 |
Income taxes, net of amounts refunded |  | $ | 30,094 |
The domestic and foreign components of (loss) income before income taxes consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  | 2024 |  | 2023 |
Foreign |  | $ | 2,203 |  | $ | 3,472 |  | $ | 5,889 |
Domestic |  |  | (1,068,144 | ) |  | 338,407 |  |  | (31,249 | )
(Loss) income before income taxes |  | $ | (1,065,941 | ) | $ | 341,879 |  | $ | (25,360 | )
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities of the Company at December 31, 2025 and December 31, 2024 consisted of the following (in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses and tax credit carryforwards – federal and state |  | $ | 24,938 |  |  | $ | 19,853 |
Capital loss carryovers |  |  | 216,715 |  |  |  | 217,100 |
Bad debt allowance |  |  | 1,449 |  |  |  | 1,830 |
Accrued compensation and severance |  |  | 18,551 |  |  |  | 18,534 |
Insurance reserves |  |  | 45,200 |  |  |  | 22,706 |
Leases |  |  | 1,120 |  |  |  | 1,039 |
Accrued expenses |  |  | 38,604 |  |  |  | — |
Interest carryforward |  |  | 24,127 |  |  |  | 25,131 |
Lease right-of-use liabilities |  |  | 33,558 |  |  |  | 28,697 |
Fixed asset basis difference |  |  | 11,128 |  |  |  | 14,374 |
Other assets |  |  | 5,257 |  |  |  | 3,660 |
Total gross deferred tax assets |  |  | 420,647 |  |  |  | 352,924 |
Less: valuation allowance |  |  | (269,373 | ) |  |  | (218,129 | )
Deferred tax assets |  |  | 151,274 |  |  |  | 134,795 |
Deferred tax liabilities: |  |  |  |  |  |
Prepaid items |  |  | (6,334 | ) |  |  | (5,321 | )
Accrued expenses |  |  | — |  |  |  | (1,813 | )
Intangible assets |  |  | (176,260 | ) |  |  | (161,934 | )
Lease right-of-use assets |  |  | (30,822 | ) |  |  | (26,819 | )
Investment in foreign subsidiary |  |  | (1,935 | ) |  |  | (1,890 | )
Total deferred tax liabilities |  |  | (215,351 | ) |  |  | (197,777 | )
Total net deferred tax liability |  | $ | (64,077 | ) |  | $ | (62,982 | )
The Company records a valuation allowance to reduce its net deferred tax assets to the amount that is more likely than not to be realized. At December 31, 2025 and 2024, the Company carried a valuation allowance against deferred tax assets of $269.4 million and $218.1 million, respectively. These amounts are primarily related to the Company’s capital loss carryforward resulting from the 2021 sale of the Company’s operations in the United Kingdom and certain state deferred tax assets for which the Company does not have available sources of income to support realizability. If the capital loss carryforward is not utilized, it will expire in 2026. The Company has state net operating loss carryforwards at December 31, 2025 and 2024 of approximately $671.0 million and $546.7 million, respectively. A portion of these net operating loss carryforwards, if not utilized, will begin to expire in 2028, while some have an indefinite carryforward period. In addition, the Company has certain state tax credits of $1.4 million which will begin to expire in 2042 if not utilized. Income taxes receivable was $41.9 m illion and $31.9 million at December 31, 2025 and 2024, respectively, and is recorded within other current assets on the consolidated balance sheets. The Company has recorded liabilities related to unrecognized tax benefits of $9.3 million and $7.2 million at December 31, 2025 and 2024, respectively. These amounts are inclusive of interest and penalties of $0.5 million and $2.2 million, respectively, and are included in other liabilities on the consolidated balance sheets. The amount of unrecognized tax benefit, if realized, that would affect the effective tax rate is $9.0 million and $6.9 million at December 31, 2025 and December 31, 2024, respectively. The following table reconciles the beginning and ending amount of unrecognized income tax benefits, exclusive of any interest and penalties, for the years ended December 31, 2025, 2024, and 2023 (in thousands):
| 2025 |  | 2024 |  | 2023 |
Balance at January 1 | $ | 5,007 |  | $ | 3,089 |  | $ | — |
Additions based on tax positions related to the current year |  | 7,450 |  |  | — |  |  | — |
Additions for tax positions of prior years |  | 159 |  |  | 1,918 |  |  | 3,089 |
Reductions as a result of the lapse of applicable statutes of limitations |  | (3,873 | ) |  | — |  |  | — |
Balance at December 31 | $ | 8,743 |  | $ | 5,007 |  | $ | 3,089 |
The Company and its subsidiaries file income tax returns in federal and in many state and local jurisdictions as well as foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service (“IRS”) for tax years after 2021. Additionally, any net operating losses that were generated in prior years and utilized in these years may also be subject to examination by the IRS. While no foreign jurisdictions are presently under examination, the Company may be subject to examination for tax years after 2020. Generally, for state tax purposes, the Company’s tax years after 2020 remain open for examination by the tax authorities. At the date of this report, there were no material audits or inquiries that had progressed sufficiently to predict their ultimate outcome.

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