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Income Taxes and Tax Receivable Agreement
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes and Tax Receivable Agreement Income Taxes and Tax Receivable Agreement
The provision for income taxes differs from the amount computed by applying the applicable U.S. statutory federal income tax rate of 21% and blended state tax rate to income before provision of income taxes due to various book-tax differences, including state taxes, noncontrolling interest, tax credits and valuation allowance. For the three and nine months ended September 30, 2025, the Company recognized an income tax expense of $0.5 million and $0.1 million, respectively, attributable to the year-to-date income, resulting in an effective tax rate of 9.5% and 2.6%, respectively. For the three and nine months ended September 30, 2024, the Company recognized an income tax benefit that was de minimis and effective tax rates of (0.2)% and (0.3)%, respectively.
As of September 30, 2025, management determined based on applicable accounting standards and the weight of all available evidence, that it was not more likely than not (“MLTN”) that the Company will generate sufficient taxable income to realize its deferred tax assets including the difference in tax basis in excess of the financial reporting value for its investment in Viant Technology LLC. Consequently, the Company has established a full valuation allowance against its deferred tax assets as of September 30, 2025. We intend to continue maintaining a full valuation allowance against our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the valuation allowance. Given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that within the next twelve months, sufficient positive evidence may become available to allow us to reach a conclusion that all or a portion of the valuation allowance will no longer be required. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that we are able to achieve. In the event that management subsequently determines that it is MLTN that the Company will realize its deferred tax assets in the future, the valuation allowance will be released.
In connection with its initial public offering ("IPO"), the Company entered into a Tax Receivable Agreement ("TRA") with Viant Technology LLC, continuing members of Viant Technology LLC and the TRA Representative (as defined in the TRA) on February 9, 2021. Due to the valuation allowance, the Company has not recorded a liability related to the remaining tax savings it may realize from utilization of the deferred tax assets except for $0.3 million related to the current portion of the TRA. The total unrecorded liability for the TRA is approximately $13.2 million as of September 30, 2025. If utilization of the deferred tax assets subject to the TRA becomes MLTN in the future, the Company will release the valuation allowance and record a liability related to the TRA.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which enacts significant changes to U.S. tax and related laws. Some of the provisions of the new tax law affecting corporations include, but are not limited to, expensing of domestic specified research or experimental expenditures and 100% bonus depreciation on eligible property acquired after January 19, 2025. For the year ending December 31, 2025, the most impactful component of the OBBBA is expected to be the immediate expense of domestic specified research or experimental expenditures. We will continue to apply OBBBA tax law changes as required or elected in future years.