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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 Income Taxes

The Company has determined its interim tax provision projecting an estimated annual effective tax rate.

A reconciliation of the statutory federal tax rate to the Company’s effective income tax rate is as follows:

 

 

Nine Months Ended
September 30,

 

 

2025

 

 

2024

 

Statutory U.S. federal income tax rate

 

 

21.0

%

 

 

21.0

%

State and local income taxes, net of federal benefit

 

 

4.7

%

 

 

4.8

%

Internal revenue code section 162 limitations

 

 

1.3

%

 

 

1.2

%

Other

 

 

—

 

 

 

—

 

Unconsolidated effective income tax rate

 

 

27.0

%

 

 

27.0

%

Impact attributable to redeemable noncontrolling interest(a)

 

 

(0.3

%)

 

 

—

%

Effective income tax rate

 

 

26.7

%

 

 

27.0

%

 

(a) The provision for income taxes includes the impact of the operations of the Consolidated Funds, which is not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels.

The Company’s actual effective tax rate for the fiscal year ending December 31, 2025 could be materially different from the projected rate as of September 30, 2025.

The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of September 30, 2025 and December 31, 2024, no valuation allowance was deemed necessary.

FASB ASC 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns, only if the positions are “more-likely-than-not” sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. The Company did not record an accrual for tax-related uncertainties or unrecognized tax positions as of September 30, 2025 or December 31, 2024.

The Company did not recognize any interest and penalties during the nine months ended September 30, 2025.