Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

For the three months ended June 30, 2024 and 2023, the Company recognized an income tax expense of $3.8 million on a pre-tax income of $37.2 million and income tax expense of $5.2 million on a pre-tax income of $6.3 million, respectively, resulting in effective tax rates of 10.22% and 82.54%, respectively. The effective tax rate for the three months ended June 30, 2024 varies from the U.S. federal statutory tax rate of 21% due to federal and state income tax expense as a result of current taxable income, offset by valuation allowance. The effective tax rate for the three months ended June 30, 2023 varies from the U.S. federal statutory tax rate of 21% due to state income tax expense as a result of current taxable income, offset by valuation allowance.

For the six months ended June 30, 2024 and 2023, the Company recognized an income tax expense of $8.2 million on a pre-tax income of $58.2 million and income tax expense of $3.3 million on a pre-tax loss of $38.6 million, respectively, resulting in effective tax rates of 14.09% and -8.55%, respectively. The effective tax rate for the six months ended June 30, 2024 varies from the U.S. federal statutory tax rate of 21% due to federal and state income tax expense as a result of current taxable income, offset by valuation allowance. The effective tax rate for the six months ended June 30, 2023 varies from the U.S. federal statutory tax rate of 21% due to state income tax expense as a result of current taxable income, offset by valuation allowance.