Provision (Benefit) from Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Provision (Benefit) from Income Taxes | Note 14. Provision (Benefit) from Income Taxes Effective Tax Rate The Company computes its quarterly and year-to-date provisions for income taxes by applying the estimated effective tax rates to the quarterly and year-to-date pre-tax income or losses and adjusting the provisions for discrete tax items recorded in the periods. For the three months ended September 30, 2025 the Company reported a tax benefit of $237 on a pre-tax loss of $25,092, which resulted in an effective tax rate of (0.94) percent. For the nine months ended September 30, 2025, the Company reported a tax benefit of $1,071 on a pre-tax loss of $43,447, which resulted in an effective tax rate of (2.47) percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to the impact of a valuation allowance on the Company’s deferred tax assets and the sale of businesses discussed in Note 4, Dispositions. During the nine months ended September 30, 2025, the Company recorded a discrete tax benefit for the impact of the sale of Dragonfly and Oxford Analytica of $281. During the second quarter ended June 30, 2025, the Company filed a tax accounting method change that created an additional discrete tax benefit of $689. For the three months ended September 30, 2024, the Company reported a tax provision of $621 on a pre-tax loss of $15,556, which resulted in an effective tax rate of (3.99) percent. For the nine months ended September 30, 2024, the Company reported a tax provision of $1,129 on a pre-tax income of $24,029, which resulted in an effective tax rate of (4.70) percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to the impact of a valuation allowance on the Company’s deferred tax assets. During the nine months ended September 30, 2024, the Company recorded a discrete tax charge for the impact of the sale of Board.org of $2,578. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues arising in the Company's tax audits progress in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. As of September 30, 2025, the Company reported an uncertain tax position totaling $832 relating to a deduction for shares distributed for services associated with the payment of convertible debt. As of September 30, 2024, the Company reported an uncertain tax position totaling $639 relating to a state tax filing position. Tax law changes On July 4, 2025, U.S. legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“The Act”) was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. The Company has recorded an income tax benefit of $46 in the three and nine months ended September 30, 2025 as a result of The Act. |