Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2024 |
| Income Taxes |
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| Schedule of provision for income taxes |
The provision for income taxes consisted of the following for the years ended December 31, 2024, 2023, and 2022 (in thousands): | | | | | | | | | | | | Years ended December 31, | | | 2024 | | 2023 | | 2022 | Current tax expense: | | | | | | | | | | Federal | | $ | 44,082 | | $ | 36,277 | | $ | 3,388 | State | | | 11,633 | | | 12,888 | | | 9,300 | Total current tax expense | | | 55,715 | | | 49,165 | | | 12,688 | Provisions for uncertain tax expense | | | | | | | | | | Deferred tax (benefit): | | | | | | | | | | Federal | | | (53,032) | | | (53,382) | | | (21,978) | State | | | (6,103) | | | (8,283) | | | (5,130) | Total deferred tax benefit | | | (59,135) | | | (61,665) | | | (27,108) | Income tax benefit | | $ | (3,420) | | $ | (12,500) | | $ | (14,420) |
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| Schedule of reconciliation between the statutory income tax rate and the effective income tax rate |
The reconciliation between the statutory income tax rate and the effective income tax rate for the years ended December 31, 2024, 2023, and 2022 are as follows: | | | | | | | | | | Years ended December 31, | | | | 2024 | | 2023 | | 2022 | | Statutory rate | | 21 | % | 21 | % | 21 | % | State income tax, net of federal tax effect | | -1 | % | 1 | % | 2 | % | Change in state tax rates | | -10 | % | -3 | % | -4 | % | Tax credits | | 9 | % | 3 | % | 4 | % | Stock-based compensation | | 4 | % | 0 | % | 0 | % | Change in uncertain tax liability | | -6 | % | 0 | % | -1 | % | Return to provision adjustments | | 3 | % | -3 | % | -1 | % | Change in valuation allowance | | -4 | % | 0 | % | 0 | % | Other | | -1 | % | 1 | % | 1 | % | Effective tax rate | | 15 | % | 20 | % | 22 | % |
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| Schedule of tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities |
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 are as follows (in thousands): | | | | | | | | | December 31, | | | 2024 | | 2023 | Deferred tax assets: | | | | | | | State tax credits | | $ | 827 | | $ | 827 | Accrued bonus | | | 5,148 | | | 3,535 | Stock - based compensation | | | 30,022 | | | 7,252 | Accrued revenue, expenses, deferrals and other | | | 2,611 | | | 80 | Interest expense | | | 105,353 | | | 91,265 | Deferred revenue | | | 2,129 | | | 2,171 | Capitalized R&D costs | | | 20,557 | | | 20,604 | Lease liability | | | 4,703 | | | 4,632 | Software development costs | | | — | | | 526 | Depreciation of property and equipment | | | 1,755 | | | — | Net operating loss | | | 15,599 | | | 15,848 | Valuation allowance | | | (1,056) | | | (197) | Total deferred tax assets | | $ | 187,648 | | $ | 146,543 | Deferred tax liabilities: | | | | | | | Depreciation of property and equipment | | | — | | | 5,366 | Transaction costs | | | 26 | | | 15 | Amortization | | | 262,026 | | | 289,269 | Other prepaid expenses | | | 2,270 | | | 1,905 | ROU asset | | | 2,717 | | | 2,561 | Accrued revenue, expenses, deferrals and other | | | — | | | 268 | Deferred rent | | | — | | | 96 | Deferred costs | | | 20,849 | | | 16,474 | Interest rate swap | | | 283 | | | 5,069 | Total deferred liabilities | | | 288,171 | | | 321,023 | Net deferred tax liability | | $ | (100,523) | | $ | (174,480) |
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| Schedule of reconciliation of beginning and ending unrecognized tax benefits, including associated interest and penalties |
The following is a reconciliation of beginning and ending unrecognized tax benefits, including associated interest and penalties for the years ended December 31, 2024 and 2023 (in thousands): | | | | | | | | | December 31, | | December 31, | | | 2024 | | 2023 | Beginning balance | | $ | 3,094 | | $ | 2,814 | Additions based on tax positions related to the current year | | | 1,265 | | | 319 | Reductions based on tax positions related to the current year | | | (24) | | | (39) | Additions for positions related to prior years | | | — | | | — | Reductions for tax positions in prior years | | | — | | | — | Ending balance | | $ | 4,335 | | $ | 3,094 |
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| Schedule of changes in the valuation allowance |
The following table details the changes in the valuation allowance for the years ended December 31, 2024 and 2023 (in thousands): | | | | | | State | | | attributes | December 31, 2024 | | | | Beginning balance | | $ | 197 | Increase/(decrease) | | | 859 | Ending balance | | | 1,056 | December 31, 2023 | | | | Beginning balance | | $ | 197 | Increase/(decrease) | | | — | Ending balance | | $ | 197 |
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