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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12. Income Taxes Selected Information Related to Income Taxes. Significant components of Income before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
U.S. |  | $ | 41,234 |  |  | $ | 71,659 |  |  | $ | 20,917 |
Non-U.S. |  |  | (6,928 | ) |  |  | (9,796 | ) |  |  | (2,812 | )
Income before income taxes |  | $ | 34,306 |  |  | $ | 61,863 |  |  | $ | 18,105 |
Significant components of the income tax provision are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Current: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 139 |  |  | $ | (609 | ) |  | $ | 11,603 |
U.S. state and local |  |  | 573 |  |  |  | 1,198 |  |  |  | 2,289 |
Non-U.S. |  |  | 2,092 |  |  |  | 1,192 |  |  |  | 269 |
Total current income tax expense |  |  | 2,804 |  |  |  | 1,781 |  |  |  | 14,161 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. federal |  |  | 8,878 |  |  |  | 12,210 |  |  |  | (95,298 | )
U.S. state and local |  |  | 3,442 |  |  |  | 533 |  |  |  | (19,034 | )
Non-U.S. |  |  | (870 | ) |  |  | (849 | ) |  |  | (166 | )
Total deferred income tax expense (benefit) |  |  | 11,450 |  |  |  | 11,894 |  |  |  | (114,498 | )
Income tax expense (benefit) |  | $ | 14,254 |  |  | $ | 13,675 |  |  | $ | (100,337 | )
The income tax provision differed from amounts computed at the U.S. federal statutory tax rate as follows (in thousands, except percentages):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |
Income tax provision at statutory rate |  | $ | 7,204 |  |  |  | 21.0 | % |  | $ | 12,991 |  |  |  | 21.0 | % |  | $ | 3,803 |  |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect(1) |  |  | 4,557 |  |  |  | 13.3 |  |  |  | 2,098 |  |  |  | 3.4 |  |  |  | 148 |  |  |  | 0.8 |
Foreign tax effects |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provincial income taxes |  |  | 649 |  |  |  | 1.9 |  |  |  | (156 | ) |  |  | (0.3 | ) |  |  | — |  |  |  | — |
Nondeductible transaction expenses |  |  | 2,253 |  |  |  | 6.6 |  |  |  | 2,287 |  |  |  | 3.7 |  |  |  | 627 |  |  |  | 3.5 |
Other, net |  |  | (236 | ) |  |  | (0.7 | ) |  |  | 223 |  |  |  | 0.4 |  |  |  | 22 |  |  |  | 0.1 |
Effect of cross-border tax laws |  |  | (46 | ) |  |  | (0.1 | ) |  |  | (93 | ) |  |  | (0.1 | ) |  |  | — |  |  |  | — |
Tax credits |  |  | (4,278 | ) |  |  | (12.5 | ) |  |  | (3,770 | ) |  |  | (6.1 | ) |  |  | (3,491 | ) |  |  | (19.3 | )
Changes in valuation allowance |  |  | — |  |  |  | — |  |  |  | (2,318 | ) |  |  | (3.7 | ) |  |  | (103,149 | ) |  |  | (569.7 | )
Nontaxable or nondeductible items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation |  |  | 1,233 |  |  |  | 3.6 |  |  |  | (650 | ) |  |  | (1.1 | ) |  |  | (2,859 | ) |  |  | (15.8 | )
Nondeductible executive compensation |  |  | 2,423 |  |  |  | 7.1 |  |  |  | 1,917 |  |  |  | 3.1 |  |  |  | 2,771 |  |  |  | 15.3 |
Nondeductible transaction expenses |  |  | — |  |  |  | — |  |  |  | (201 | ) |  |  | (0.3 | ) |  |  | (166 | ) |  |  | (0.9 | )
Changes in unrecognized tax benefits |  |  | 283 |  |  |  | 0.8 |  |  |  | 1,216 |  |  |  | 2.0 |  |  |  | 1,086 |  |  |  | 6.0 |
Other, net |  |  | 212 |  |  |  | 0.5 |  |  |  | 131 |  |  |  | 0.1 |  |  |  | 871 |  |  |  | 4.8 |
Income tax expense (benefit) |  | $ | 14,254 |  |  |  | 41.5 | % |  | $ | 13,675 |  |  |  | 22.1 | % |  | $ | (100,337 | ) |  |  | (554.2 | )%
(1) In 2025, the state taxes in California, Illinois, New Jersey and New York made up the majority (greater than 50%) of the tax effect in this category. Cash Taxes Paid. Significant components of income taxes paid (net of refunds received) are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
U.S. federal |  | $ | — |  |  | $ | 1,709 |  |  | $ | 14,790 |
Alabama |  |  | 147 |  |  | * |  |  | * |
Georgia |  |  | 250 |  |  | * |  |  | * |
Michigan |  | * |  |  |  | 344 |  |  | * |
Pennsylvania |  |  | 271 |  |  | * |  |  | * |
Other |  |  | 1,039 |  |  |  | 1,889 |  |  |  | 2,578 |
U.S. state and local |  |  | 1,707 |  |  |  | 2,233 |  |  |  | 2,578 |
Canada |  |  | 861 |  |  |  | 2,545 |  |  |  | 268 |
Total |  | $ | 2,568 |  |  | $ | 6,487 |  |  | $ | 17,636 |
* The amount of income taxes paid (net of refunds received) during the year does not meet the 5% disaggregation threshold and is included in 'Other'. Deferred Tax Assets, Liabilities and Valuation Allowance. The Company has recorded deferred tax assets related to federal and state income tax net operating loss ("NOL") carryforwards of approxi mately $20.5 million and $2.9 million as of December 31, 2025 and 2024, respectively. These federal NOLs, and certain state NOLs, can be carried forward indefinitely. The Com pany has also recorded deferred tax assets related to federal and state research and development ("R&D") tax credit carryforwards of $4.2 million and $1.9 million as of December 31, 2025 and 2024, respectively. The federal and state R&D tax credits generally may be carried forward 20 years and 5 years, respectively. The Tax Cuts and Jobs Act enacted in December 2017 amended Internal Revenue Code ("IRC") Section 174 to require that specific research and experimental ("R&E") expenditures be capitalized and amortized over five years (15 years for non-U.S. R&E expenditures) beginning in the Company’s 2022 fiscal year. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA restored immediate expensing for domestic R&E expenditures that required capitalization under IRC Section 174 and reinstated the EBITDA-based limitation for business interest expense under IRC Section 163(j). During 2023, the Company released a significant portion of the valuation allowance that had been previously recorded against its deferred tax assets. In connection with the sale of the Company’s RepairPal equity investment during 2024, the Company released its remaining portion of the valuation allowance. As a result, the Company has no valuation allowance recorded as of December 31, 2024 and 2025. For more information on the sale, see Note 2 (Significant Accounting Policies). Significant components of the deferred tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Deferred income tax liabilities: |  |  |  |  |  |
Indefinite lived intangibles |  | $ | (33,949 | ) |  | $ | (24,161 | )
Property and equipment |  |  | (5,382 | ) |  |  | (7,309 | )
Right of use assets |  |  | (3,996 | ) |  |  | (4,227 | )
Other |  |  | (2,308 | ) |  |  | (1,402 | )
Total deferred tax liabilities |  | $ | (45,635 | ) |  | $ | (37,099 | )
Deferred income tax assets: |  |  |  |  |  |
Goodwill |  | $ | 46,528 |  |  | $ | 55,947 |
NOL and tax credit carryforwards |  |  | 24,695 |  |  |  | 4,813 |
Definite lived intangibles |  |  | 21,146 |  |  |  | 15,204 |
Capitalized research and development costs |  |  | 16,273 |  |  |  | 28,677 |
Accrued compensation |  |  | 11,134 |  |  |  | 11,961 |
Lease obligations |  |  | 6,654 |  |  |  | 7,812 |
Interest expense limitation |  |  | 1,558 |  |  |  | 6,442 |
Total deferred tax assets |  |  | 127,988 |  |  |  | 130,856 |
Net deferred tax asset |  | $ | 82,353 |  |  | $ | 93,757 |
The deferred tax assets and liabilities recognized in the Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024 were as follows (in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Deferred tax assets, net |  | $ | 88,594 |  |  | $ | 100,530 |
Deferred tax liabilities, net |  |  | (6,241 | ) |  |  | (6,773 | )
Net deferred tax asset |  | $ | 82,353 |  |  | $ | 93,757 |
Uncertain Tax Positions. A summary of the Company’s uncertain tax positions is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2025 |  |  | 2024 |
Balance as of January 1 |  | $ | 4,301 |  |  | $ | 3,477 |
Additions based on tax positions related to the current year |  |  | 705 |  |  |  | 680 |
Additions for tax positions of prior years |  |  | 79 |  |  |  | 408 |
Reductions for tax positions of prior years |  |  | (568 | ) |  |  | (264 | )
Balance as of December 31 |  | $ | 4,517 |  |  | $ | 4,301 |
As of December 31, 2025 and 2024, the Company had $4.5 millio n and $4.3 million, respectively, of uncertain tax positions that, if recognized, would affect the annual tax rate. The Company files a consolidated U.S. federal income tax return, as well as income tax returns in various other jurisdictions, including in Canada. The Company's tax returns are routinely audited by tax authorities, and these tax audits are at various stages of completion at any given time. The Company’s tax returns open to examination by taxing authorities are for years beginning on or after January 1, 2021. The Company believes it has adequate tax reserves to cover potential federal, state or foreign tax exposures.

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