Guardian Pharmacy Services, Inc.GRDN
Guardian Pharmacy Services, Inc. Income Taxes Disclosure
14. |
Income Taxes |
Guardian Pharmacy Services, Inc. is taxed as a corporation and is subject to paying corporate federal, state and local taxes on the income attributable to it from its 100% ownership of Guardian Pharmacy, LLC, its economic interest held in the
non-controlling
subsidiaries, as well as any stand-alone income or loss it generates. The non-controlling
entities are treated as a partnership for U.S. federal and most applicable state and local income tax purposes. Prior to the Corporate Reorganization, Guardian Pharmacy, LLC was comprised of entities treated as partnerships for income tax purposes. As a partnership it was not subject to U.S. federal and certain state and local income taxes. As a result of the Corporate Reorganization, the Company is subject to federal and state corporate income taxes beginning on September 27, 2024. The expense (benefit) for income taxes consists:
Year Ended December 31, |
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2024 |
2025 |
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| Current: |
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| Federal |
$ | 2,970 | $ | 16,229 | ||||
| State |
885 | 5,162 | ||||||
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| Total current tax |
3,855 | 21,391 | ||||||
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| Deferred: |
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| Federal |
533 | 1,941 | ||||||
| State |
168 | 1,133 | ||||||
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| Total deferred tax |
701 | 3,074 | ||||||
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| Provision for income taxes |
$ |
4,556 |
$ |
24,465 |
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The cash tax payments for the period (in thousands):
Year Ended December 31, |
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2024 |
2025 |
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| US Federal |
$ | — | $ | 16,880 | ||||
| US State and Local |
— | 4,661 | ||||||
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| Total income tax payments |
$ |
— |
$ |
21,541 |
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| * | No single state jurisdiction met the 5% disaggregation threshold during the year. |
Reconciliation between the Company’s income tax expense and taxes computed at the federal statutory tax rate of 21.0% for calendar years ended December 31, 2025 and 2024 were as follows (in thousands):
Year Ended December 31, |
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2024 |
2025 |
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| Tax at federal statutory rate |
$ | (13,960 | ) | 21.0 | % | $ | 15,419 | 21.0 | % | |||||||
| State taxes (net of federal benefit)* |
828 | (1.3 | )% | 4,973 | 6.8 | % | ||||||||||
| Nontaxable or nondeductible items: |
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| Partnership income (federal) not subject to tax to the Company |
(8,307 | ) | 12.5 | % | 55 | 0.1 | % | |||||||||
| Nondeductible Compensation |
26,406 | (39.7 | )% | 2,108 | 2.8 | % | ||||||||||
| Other |
282 | 0.4 | % | |||||||||||||
| Return-to-Provision |
(446 | ) | 0.7 | % | 1,393 | 1.9 | % | |||||||||
| Other Adjustments |
35 | (0.1 | )% | 235 | 0.3 | % | ||||||||||
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| Provision for income taxes |
$ |
4,556 |
(6.9 |
)% |
$ |
24,465 |
33.3 |
% | ||||||||
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| * | No single state jurisdiction met the 5% disaggregation threshold during the years presented. |
| * | For 2025, state taxes in Tennessee, Florida, Wisconsin, California, and Arizona made up the majority (greater than 50 percent) of the tax effect in this category for 2025. For 2024, state taxes in Florida, Wisconsin, Tennessee, Arizona,, California, and Minnesota made up the majority (greater than 50 percent) of the tax effect in this category. |
The Company’s effective tax rate for the year ended December 31, 2025, was 33.3%. The comparison of the Company’s effective tax rate to the U.S. statutory rate of 21% was primarily due to opening balance sheet adjustments and the $10,039 incremental
share
-based compensation charge in connection with the Corporate Reorganization and IPO. These compensation costs are not deductible
for federal and state income taxes due to prior Section 83(b) elections. The Company’s effective tax rate for the year ended December 31, 2024, was (6.9)%. The comparison of the Company’s effective tax rate to the U.S. statutory rate of 21% was primarily due to the $125,741 incremental share-based compensation charge in connection with the Corporate Reorganization and IPO (see Note 11— for further detail on the share-based compensation charge). These compensation costs are not deductible for federal and state income taxes due to prior Section 83(b) elections. Furthermore, before the Corporate Reorganization, the partnership income from Guardian Pharmacy, LLC and subsidiaries’
Share-based Compensation
non-controlling
interest amounted to $39,115, which is not taxable to the Company. Deferred Income Taxes
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2025 were as follows (in thousands):
December 31, |
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2024 |
2025 |
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Deferred tax assets |
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Amortization |
$ | 7,939 | $ | 5,482 | ||||
Lease and rents |
7,382 | 9,103 | ||||||
Insurance and bad debt reserves |
3,366 | 3,262 | ||||||
Accrued expenses |
733 | 2,161 | ||||||
Other |
341 | 309 | ||||||
Total deferred tax assets |
19,761 | 20,317 | ||||||
Valuation allowance for deferred tax assets |
— | — | ||||||
Deferred tax assets, net of valuation allowance |
$ | 19,761 | $ | 20,317 | ||||
Deferred tax liabilities |
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Lease and rents |
(7,139 | ) | (8,274 | ) | ||||
Depreciation |
(6,609 | ) | (8,529 | ) | ||||
Other |
(741 | ) | (1,315 | ) | ||||
Net deferred tax assets |
$ |
5,272 |
$ |
2,199 |
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As of December 31, 2025 and 2024, the Company had net deferred tax assets of $2,199 and $5,272, respectively. The decrease is largely attributable to bonus depreciation and goodwill amortization.
As of December 31, 2025 and 2024, the Company concluded, based on all positive and negative evidence that it is more likely than not that all deferred tax assets will be utilized.
As of December 31, 2025 and 2024, the Company did not have any federal or state net operating loss carryforwards.
Unrecognized Tax Benefits
The Company recognizes income tax benefits for those income tax positions determined more likely than not to be sustained upon examination, based on the technical merits of the positions. No uncertain tax positions existed as of December 31, 2025.
Guardian Pharmacy Services, Inc. and its subsidiaries’ federal tax returns for tax years ended December 31, 2024, have not been examined by the Internal Revenue Service (“IRS”) and remain open as of December 31, 2025. Guardian Pharmacy Services, Inc. and its subsidiaries’ are subject to ongoing state and local examinations for various periods. Activity related to these examinations did not have a material impact on the Company’s financial position or results of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.