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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | The domestic and foreign components of income before provision for income taxes are as follows for the years ended December 31:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Domestic |  | $ | 134,068 |  |  | $ | 83,742 |  |  | $ | 80,372 |
Foreign |  |  | 3,990 |  |  |  | 12,805 |  |  |  | 3,608 |
Income before income taxes |  | $ | 138,058 |  |  | $ | 96,547 |  |  | $ | 83,980 |
Income Tax Expense Components | Income tax expense consisted of the following for the years ended December 31:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 41,276 |  |  | $ | 28,108 |  |  | $ | 8,413 |
State |  |  | 16,851 |  |  |  | 10,380 |  |  |  | 2,686 |
Foreign |  |  | 1,647 |  |  |  | 2,247 |  |  |  | 1,661 |
Total current |  |  | 59,774 |  |  |  | 40,735 |  |  |  | 12,760 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (21,055 | ) |  |  | (20,279 | ) |  |  | 4,264 |
State |  |  | (10,861 | ) |  |  | (6,915 | ) |  |  | 3,607 |
Foreign |  |  | 30 |  |  |  | 394 |  |  |  | (894 | )
Total deferred |  |  | (31,886 | ) |  |  | (26,800 | ) |  |  | 6,977 |
Income tax expense |  | $ | 27,888 |  |  | $ | 13,935 |  |  | $ | 19,737 |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) consisted of the following at December 31:
|  | 2024 |  |  | 2023 |
Deferred Tax Assets |  |  |  |  |  |
Allowance for expected credit losses |  | $ | 1,648 |  |  | $ | 1,213 |
Accrued paid time off |  |  | 3,525 |  |  |  | 3,039 |
State net operating loss carryforward |  |  | 456 |  |  |  | 500 |
Stock-based compensation |  |  | 6,076 |  |  |  | 5,523 |
Deferred compensation |  |  | 6,568 |  |  |  | 5,765 |
Foreign tax credits |  |  | 8,151 |  |  |  | 8,035 |
State tax credits |  |  | 1,923 |  |  |  | 686 |
Foreign exchange |  |  | 4,345 |  |  |  | 3,591 |
Foreign deferred |  |  | 333 |  |  |  | 441 |
Accrued bonus |  |  | 6,393 |  |  |  | 5,830 |
Capital loss |  |  | 1,020 |  |  |  | 1,054 |
Facilities impairment |  |  | 2,611 |  |  |  | 3,092 |
Capitalized research expenses |  |  | 70,617 |  |  |  | 47,019 |
Depreciation |  |  | 402 |  |  |  | — |
Accrued liabilities and other |  |  | 1,364 |  |  |  | 2,682 |
Lease liabilities |  |  | 54,263 |  |  |  | 58,538 |
|  |  | 169,695 |  |  |  | 147,008 |
Less: Valuation Allowance |  |  | (9,627 | ) |  |  | (9,021 | )
Total Deferred Tax Assets |  |  | 160,068 |  |  |  | 137,987 |
Deferred Tax Liabilities |  |  |  |  |  |
Payroll taxes |  |  | (939 | ) |  |  | (725 | )
Unbilled revenue |  |  | (184 | ) |  |  | (284 | )
Depreciation |  |  | — |  |  |  | (2,128 | )
Amortization |  |  | (108,009 | ) |  |  | (107,201 | )
Deferred gain and other |  |  | (2,543 | ) |  |  | (2,202 | )
Lease assets - right-of-use |  |  | (46,790 | ) |  |  | (51,622 | )
Total Deferred Tax Liabilities |  |  | (158,465 | ) |  |  | (164,162 | )
Total Net Deferred Tax Assets (Liabilities) |  | $ | 1,603 |  |  | $ | (26,175 | )
Components of Unrecognized Tax Benefits, Excluding Penalty and Interest | The components of unrecognized tax benefits, excluding penalty and interest, are as follows at December 31:
|  | 2024 |  |  | 2023 |
U.S. transfer pricing |  | $ | — |  |  | $ | 145 |
India transfer pricing |  |  | — |  |  |  | 164 |
Section 41 tax credit |  |  | 15,042 |  |  |  | 8,736 |
Section 174 expense capitalization |  |  | 10,798 |  |  |  | 15,086 |
Total |  | $ | 25,840 |  |  | $ | 24,131 |
The unrecognized tax benefit reconciliation, excluding penalty and interest, is as follows:
Unrecognized tax benefits at January 1, 2022 |  | $ | 450 |
Decrease attributable to tax positions taken during the current period |  |  | (305 | )
Unrecognized tax benefits at December 31, 2022 |  |  | 145 |
Increase attributable to tax positions taken during a prior period |  |  | 19,845 |
Increase attributable to tax positions taken during the current period |  |  | 4,141 |
Unrecognized tax benefits at December 31, 2023 |  |  | 24,131 |
Decrease attributable to tax positions taken during a prior period |  |  | (4,597 | )
Increase attributable to tax positions taken during the current period |  |  | 6,306 |
Unrecognized tax benefits at December 31, 2024 |  |  | 25,840 |
Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes differs from the federal statutory rate. The differences between the statutory rate and the Company’s provision are as follows for the years ended December 31:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Taxes at statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  |  | 6.0 | % |  |  | 6.0 | % |  |  | 5.8 | %
Foreign tax rate differential |  |  | (0.1 | )% |  |  | (0.2 | )% |  |  | 0.1 | %
Executive compensation |  |  | 1.8 | % |  |  | 1.7 | % |  |  | 2.2 | %
Other permanent differences |  |  | (0.4 | )% |  |  | (0.3 | )% |  |  | 2.0 | %
Global intangible low-taxed income (GILTI) |  |  | — |  |  |  | 0.3 | % |  |  | — |
Prior year tax adjustments |  |  | (2.0 | )% |  |  | (6.4 | )% |  |  | (1.1 | )%
Deferred impact of state rate change |  |  | 0.1 | % |  |  | 0.5 | % |  |  | 0.6 | %
Worthless stock deduction |  |  | — |  |  |  | (5.1 | )% |  |  | (4.6 | )%
Unrecognized tax benefits |  |  | 4.0 | % |  |  | 9.0 | % |  |  | (0.4 | )%
Capital loss |  |  | — |  |  |  | (3.8 | )% |  |  | — |
Valuation allowance |  |  | 1.3 | % |  |  | 2.0 | % |  |  | 0.7 | %
Equity-based compensation |  |  | (1.7 | )% |  |  | (1.1 | )% |  |  | (1.3 | )%
Tax credits |  |  | (9.8 | )% |  |  | (9.2 | )% |  |  | (1.5 | )%
Taxes at effective rate |  |  | 20.2 | % |  |  | 14.4 | % |  |  | 23.5 | %

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