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

5. Income Taxes —Income tax expense was $765 for the three months ended June 30, 2025, as compared to income tax benefit of $1,553 for the three months ended June 30, 2024. Income tax expense was $1,152 for the six months ended June 30, 2025 as compared to an income tax benefit of $69 for the six months ended June 30, 2024. The effective income tax rate for the three and six-month periods ended June 30, 2025 was computed based on the estimated effective tax rate for the full year. This calculation resulted in an effective income tax rate of (908.23%) for the three months ended June 30, 2025, as compared to 11.7% for the three months ended June 30, 2024. The effective income tax rate was -14.13% for the six months ended June 30, 2025, as compared to 0.7%. for the six months ended June 30, 2024. The decrease in the effective income tax rate for the three and six months ended June 30, 2025 compared to the same periods in the prior year is primarily attributed to losses incurred in the U.S. for the three and six months ended June 30, 2025 which did not result in a benefit for income tax. The U.S. entities maintain a valuation allowance against their net deferred tax assets which was established during the fourth quarter ended December 31, 2024.

It is expected that $311 of unrecognized tax benefits will be released within the next twelve months due to expiration of the statute of limitations.

 

On July 4, 2025, new U.S. tax legislation was signed into law (known as the “One Big Beautiful Bill Act” or “OBBBA”) which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. The Company is currently evaluating the impact of the new legislation but does not expect it to have a material impact on the results of operations.