INCOME TAXES |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Company’s effective income tax rate of approximately 26.5% and 2.1% for the three months ended September 30, 2025 and 2024, respectively, and 4.3% and 2.0% for the nine months ended September 30, 2025 and 2024, respectively, differed from the federal statutory rate primarily due to the geographical mix of earnings, the valuation allowance maintained against certain deferred tax assets, nondeductible stock-based compensation, and the impact of the One Big Beautiful Bill Act (the “OBBBA”).
The Company’s income tax benefit was $4.6 million and $0.4 million for the three months ended September 30, 2025 and 2024, respectively, and $2.0 million and $2.5 million for the nine months ended September 30, 2025 and 2024, respectively. The change in the income tax benefit for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 was primarily due to the geographical mix of earnings, the valuation allowance maintained against certain deferred tax assets, non-deductible stock-based compensation, and the impact of the OBBBA.
On July 4, 2025, the OBBBA was signed into law. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, updates to Global Intangible Low-Taxes Income and Foreign-Derived Intangible Income rules, amendments to energy credits, and expanded Section 162(m) aggregation requirements. In accordance with Accounting Standards Codification 740, Income Taxes (“ASC 740”), the effects of the new tax law were recognized in the period of enactment. The impact of these changes required the Company to re-evaluate its deferred taxes and as a result record a decrease in the valuation allowance of $3.6 million during the three months ended September 30, 2025. The Company will continue to monitor the full impact of these legislative changes as additional guidance becomes available.
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