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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Taxes [Abstract]  
Income Taxes

17. Income Taxes

Effective Income Tax Rate – Three and Six Months Ended June 30, 2025

The Company’s effective income tax rate during the three months ended June 30, 2025 was 22.3%, resulting in income tax expense of $7,093. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to state and local income taxes, partly offset by a lower tax rate on foreign earnings.

The Company’s effective income tax rate during the six months ended June 30, 2025 was 20.6%, resulting in income tax expense of $12,832. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to tax windfalls associated with the vesting of stock-based compensation awards and a lower tax rate on foreign earnings. These items were partly offset by state and local income taxes.

Effective Income Tax Rate – Three and Six Months Ended June 30, 2024

The Company’s effective income tax rate during the three months ended June 30, 2024 was 26.3%, resulting in income tax expense of $7,767. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to non-deductible executive compensation, an increase in the deferred tax asset valuation allowance on losses recognized on the Company’s investments and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings.

The Company’s effective income tax rate during the six months ended June 30, 2024 was 23.5%, resulting in income tax expense of $13,468. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to non-deductible executive compensation and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings and tax windfalls associated with the vesting of stock-based compensation awards.

Income Tax Payments

Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the six months ended June 30, 2025:

  

Six Months Ended

June 30, 2025

 
United States - Federal  $3,716 
United States - State and local   1,820 
United Kingdom   7,897 
Other   35 
   $13,468 

Deferred Tax Assets

A summary of the components of the Company’s deferred tax assets at June 30, 2025 and December 31, 2024 is as follows:

   June 30, 2025  December 31, 2024
Deferred tax assets:          
Capital losses  $6,757   $21,984 
Accrued expenses   3,249    6,465 
Stock-based compensation   1,706    2,843 
NOLs—Foreign   1,054    1,024 
Interest carryforward.   641    
—
 
Goodwill and intangible assets   610    705 
Operating lease liabilities   419    95 
Software capitalization   294    199 
Foreign currency translation adjustment   
—
    427 
Other   319    331 
Deferred tax assets   15,049    34,073 
Deferred tax liabilities:          
Foreign currency translation adjustment   1,026    
—
 
Fixed assets and prepaid assets   559    246 
Unrealized gains   566    76 
Right of use assets—operating leases   418    95 
Unremitted earnings—European subsidiaries   144    92 
Deferred tax liabilities   2,713    509 
Total deferred tax assets less deferred tax liabilities   12,336    33,564 
Less: Valuation allowance   (6,191)   (21,908)
Deferred tax assets, net  $6,145   $11,656 

Capital Losses – U.S.

The Company’s tax effected capital losses at June 30, 2025 were $6,757. These capital losses expire between the years 2025 and 2030. During the six months ended June 30, 2025, tax effected capital losses in the amount of $15,294 expired.

Net Operating Losses – Europe

One of the Company’s European subsidiaries generated net operating losses (“NOLs”) outside the U.S. These tax effected NOLs, all of which are carried forward indefinitely, were $1,054 at June 30, 2025.

Valuation Allowance

The Company’s valuation allowance has been established on its net capital losses (net of unrealized gains), as it is more-likely-than-not that these deferred tax assets will not be realized.

Income Tax Examinations

The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions. As of June 30, 2025, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for the years before 2020.

Uncertain Tax Positions

There were no unrecognized tax benefits at June 30, 2025 and December 31, 2024.

Undistributed Earnings of Foreign Subsidiaries

ASC 740-30, Income Taxes, provides guidance that U.S. companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested. The Company repatriates earnings of its foreign subsidiaries and therefore has recognized a deferred tax liability of $144 and $92 at June 30, 2025 and December 31, 2024, respectively.

U.S. Tax Reform

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted, extending or modifying several provisions of the Tax Cuts and Jobs Act of 2017.  The OBBBA left corporate income tax rates unchanged, but reinstated immediate expensing of domestic research and development expenditures, revised Section 163(j) interest limitations, expanded Section 162(m) aggregation rules, updated GILTI provisions and restored 100% bonus depreciation, among other changes.

While the OBBBA is expected to accelerate certain previously deferred tax deductions, it is not otherwise anticipated to have a material impact to the Company’s financial statements.