v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

(9)Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return. Prior to the Split-Off, the Company was included in the federal consolidated income tax returns of Liberty. The tax provision included in these consolidated financial statements has been prepared on a stand-alone basis, as if the Company was not part of the consolidated Liberty tax group.

Income tax benefit (expense) consists of:

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​

​

​

​

​

​

​

​

​

Years ended December 31, 

 

​

​

2025

​

2024

​

2023

 

​

​

amounts in thousands

 

Current:

​

​

​

  ​ ​ ​

​

  ​ ​ ​

​

​

Federal

​

$

(1,255)

 

(4,182)

 

(3,689)

​

State

​

 

(42)

 

(124)

 

(14)

​

Foreign

​

​

(312)

​

(309)

​

(305)

​

​

​

 

(1,609)

 

(4,615)

 

(4,008)

​

Deferred:

​

 

​

 

​

 

​

​

Federal

​

 

3,400

 

6,147

 

7,887

​

State

​

 

(960)

 

3,141

 

(15)

​

Foreign

​

 

—

 

—

 

—

​

​

​

​

2,440

 

9,288

 

7,872

​

Income tax benefit (expense)

​

$

831

​

4,673

​

3,864

​

​

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal statutory rate of 21% as a result of the following:

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​

​

​

​

​

​

​

​

​

​

​

​

Years ended December 31,

 

​

​

2025

​

2024

​

2023

 

​

​

amounts in thousands

 

​

​

​

Amount

Percentage

​

Amount

Percentage

​

Amount

Percentage

​

Computed expected U.S. federal statutory tax benefit (expense)

​

$

5,064

21.0

%

7,548

21.0

%

27,123

21.0

%

State tax benefit (expense), net of federal benefit (expense)(1)

​

​

(993)

(4.1)

 

2,383

6.6

 

(23)

—

​

Foreign Tax Effects

​

​

(247)

(1.0)

​

(244)

(0.7)

​

(241)

(0.2)

​

Tax Credits

​

​

189

0.8

​

(235)

(0.7)

​

(259)

(0.2)

​

Nontaxable or Nondeductible Items

​

​

​

​

​

​

​

​

​

​

​

Intergroup interest

​

​

—

—

​

—

—

​

(17,467)

(13.5)

​

Executive compensation

​

​

(6,497)

(26.9)

​

(4,610)

(12.8)

​

(1,966)

(1.5)

​

Nondeductible transaction costs

​

​

—

—

​

—

—

​

(2,507)

(1.9)

​

Stock-based compensation

​

​

2,221

9.2

 

778

2.2

 

561

0.4

​

Meals and entertainment

​

​

(1,336)

(5.5)

 

(1,112)

(3.1)

 

(1,066)

(0.8)

​

Other

​

​

(75)

(0.3)

​

165

0.5

 

(291)

(0.2)

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Other adjustments

​

​

​

​

​

​

​

​

​

​

​

Accrued compensation - personnel expenses

​

​

1,818

7.5

​

—

—

​

—

—

​

Accrued compensation - pension

​

​

838

3.5

​

—

—

​

—

—

​

Intangible assets

​

​

290

1.2

​

​

​

​

​

​

​

Other

​

​

(441)

(1.8)

​

—

—

​

—

—

​

Income tax benefit (expense)

​

$

831

3.4

%

4,673

13.0

%

3,864

3.0

%

(1)State taxes in Georgia made up the majority (greater than 50 percent) of the tax effect in this category.

During the year ended December 31, 2025, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to executive compensation that is not deductible for tax purposes.

During the year ended December 31, 2024, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to executive compensation that is not deductible for tax purposes, partially offset by the effect of state income taxes.

During the year ended December 31, 2023, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to intergroup interest losses that are not deductible for tax purposes.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

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​

​

​

​

​

​

​

​

​

December 31, 

 

​

​

2025

  ​ ​ ​

2024

 

​

​

amounts in thousands

 

Deferred tax assets:

​

​

​

​

​

​

Finance lease obligation

​

$

25,061

 

26,741

​

Interest, tax loss, and credit carryforwards

​

 

18,267

 

22,153

​

Stock-based compensation

​

 

1,783

 

1,821

​

Capitalized R&D

​

 

88

 

2,647

​

Deferred revenue

​

 

1,301

 

—

​

Other

​

​

9,874

​

5,782

​

Total deferred tax assets

​

 

56,374

 

59,144

​

Valuation allowance

​

 

(699)

 

—

​

Deferred tax assets, net of valuation allowance

​

 

55,675

 

59,144

​

Deferred tax liabilities:

​

 

  ​

 

  ​

​

Property and equipment, net

​

 

42,091

 

45,641

​

Intangible assets

​

 

38,387

 

33,153

​

Investments

​

 

11,765

 

8,081

​

Contract assets

​

 

—

 

10,797

​

Accrued compensation

​

​

3,230

​

3,678

​

Other

​

 

1,484

 

1,310

​

Total deferred tax liabilities

​

 

96,957

 

102,660

​

Net deferred tax liabilities

​

$

(41,282)

 

(43,516)

​

​

At December 31, 2025, the Company had a deferred tax asset of $18.3 million for federal and state net operating losses (“NOLs”) and federal and state interest expense carryforwards. The Company has $1.6 million of federal and $3.9 million of state NOLs, $11.7 million of interest expense that may be carried forward indefinitely and $0.9 million of state NOLs that will expire on various dates through 2044. These carryforwards are expected to be utilized in future periods, with the exception of certain jurisdictions where the Company concluded that it is not more likely than not to be able to utilize and, as such, a valuation allowance should be recorded. The valuation allowance for these carryforwards was $0.7 million for the year ended December 31, 2025.

As of December 31, 2025, 2024 and 2023, no unrecognized tax benefits have been recorded. As of December 31, 2025, Liberty’s tax years prior to 2022 are closed for federal income tax purposes. Liberty’s 2022 tax year has been audited by the Internal Revenue Service (the “IRS”) and its 2023 tax year is currently under examination by the IRS. The Company’s 2023 tax year has not been audited by the IRS. The IRS is reviewing the Company’s 2024 tax year as part of the IRS’s compliance assurance process audit program. Various states are currently examining Liberty’s prior years’ state income tax returns. The Company does not expect the ultimate disposition of these audits to have a material adverse effect on the Company’s financial position or results of operations. The Company is not under audit in any state or local jurisdiction.