Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

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INCOME TAXES
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 8. INCOME TAXES

Our forecasted annual effective tax rate (“AETR”) at September 30, 2026 was 4.1%, as compared to 2.9% at September 30, 2025. This increase was primarily driven by an increase in forecasted pre-tax book income offset by rate impacting components such as permanent items as compared to the prior-year period.

For the nine months ended September 30, 2026 and 2025, our effective tax rate (“ETR”) was 2.0% and 142.6%, respectively. The decrease in the ETR for the nine months ended September 30, 2026, as compared to the prior-year period, was mainly attributable to an increase in the pre-tax book income for the nine months ended September 30, 2026, including the termination fee received from Evolution under the terms of the Merger Agreement, which was treated as a discrete item with its tax effect offset by the valuation allowance, as compared to the prior-year period.