International Money Express, Inc.IMXI
International Money Express, Inc. Income Taxes Disclosure
INCOME TAXES
The components of income (loss) before income taxes are as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Domestic | $ | 46,258 | $ | 84,676 | $ | 84,170 | |||||||||||
Foreign | 842 | (1,405) | 894 | ||||||||||||||
Income before income taxes | $ | 47,100 | $ | 83,271 | $ | 85,064 | |||||||||||
The provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Current tax provision: | ||||||||||||||||||||
| Federal | $ | 5,830 | $ | 17,086 | $ | 18,590 | ||||||||||||||
| State | 3,060 | 7,252 | 9,050 | |||||||||||||||||
| Foreign | 340 | 560 | 532 | |||||||||||||||||
| Total Current | 9,230 | 24,898 | 28,172 | |||||||||||||||||
| Deferred tax benefit: | ||||||||||||||||||||
| Federal | 3,715 | (112) | (1,811) | |||||||||||||||||
| State | 1,239 | (305) | (806) | |||||||||||||||||
Foreign | 245 | (31) | (6) | |||||||||||||||||
| Total deferred | 5,199 | (448) | (2,623) | |||||||||||||||||
| Total tax provision | $ | 14,429 | $ | 24,450 | $ | 25,549 | ||||||||||||||
A reconciliation between the income tax provision at the U.S. statutory tax rate and the Company’s income tax provision on the consolidated statements of income and comprehensive income is below (in thousands):
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| Income before income taxes | $ | 47,100 | $ | 83,271 | $ | 85,064 | |||||||||||||||||||||||
| U.S. statutory tax rate | 21 | % | 21 | % | 21 | % | |||||||||||||||||||||||
| Income tax expense at statutory rate | 9,891 | 17,487 | 17,863 | ||||||||||||||||||||||||||
State and local income taxes, net of federal income tax effect (1) | 3,396 | 7.2 | % | 5,488 | 6.6 | % | 6,513 | 7.7 | % | ||||||||||||||||||||
Foreign tax effects | 455 | 1.0 | % | 871 | 1.0 | % | 480 | 0.6 | % | ||||||||||||||||||||
Non-taxable or Non-deductible items: | |||||||||||||||||||||||||||||
Share-based compensation expenses | 553 | 1.2 | % | (683) | (0.8) | % | (1,126) | (1.3) | % | ||||||||||||||||||||
Non-deductible officer compensation expenses | 487 | 1.0 | % | 1,188 | 1.4 | % | 1,817 | 2.1 | % | ||||||||||||||||||||
Non-taxable gain contingency | (693) | (1.5) | % | — | — | % | — | — | % | ||||||||||||||||||||
Other Non-deductible expenses | 325 | 0.7 | % | 87 | 0.1 | % | 2 | — | % | ||||||||||||||||||||
Other adjustments | 15 | — | % | 12 | — | % | — | — | % | ||||||||||||||||||||
| Total tax provision | $ | 14,429 | 30.6 | % | $ | 24,450 | 29.4 | % | $ | 25,549 | 30.0 | % | |||||||||||||||||
(1) State taxes in Florida, New York, California, and New York City make up the majority (greater than 50 percent) of the effect of this category.
As presented in the income tax reconciliation above, the tax provision recognized on the consolidated statements of income and comprehensive income was impacted by state taxes, non-deductible officer compensation, share-based compensation tax benefits, non-taxable gain contingencies from La Nacional, and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or
lower than the U.S. statutory rate. The Company is also subject to tax in various U.S. state and foreign jurisdictions. Changes in the annual allocation and apportionment of the Company’s activity amongst these jurisdictions results in changes to the blended tax rate utilized to measure the Company’s deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of the deferred tax assets and liabilities (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| U.S. federal and state net operating losses | $ | 2,434 | $ | 2,809 | |||||||
| Foreign net operating losses | 8,415 | 7,132 | |||||||||
| Allowance for credit losses | 1,421 | 1,131 | |||||||||
| Share-based compensation | 1,943 | 1,280 | |||||||||
| Accrued compensation | 479 | 642 | |||||||||
| Deferred revenue | 75 | 848 | |||||||||
Transaction costs | 3,422 | 493 | |||||||||
| Lease liabilities | 6,057 | 6,793 | |||||||||
| Other | 1,139 | 989 | |||||||||
| Total deferred tax assets | 25,385 | 22,117 | |||||||||
| Valuation allowance | (8,042) | (6,537) | |||||||||
Total deferred tax assets, net of valuation allowance | 17,343 | 15,580 | |||||||||
Deferred tax liabilities: | |||||||||||
| Depreciation | (11,892) | (3,542) | |||||||||
| Right-of-use assets | (4,426) | (4,967) | |||||||||
| Intangible amortization | (6,397) | (7,321) | |||||||||
| Total deferred tax liabilities | (22,715) | (15,830) | |||||||||
| Net deferred tax liability | $ | (5,372) | $ | (250) | |||||||
At December 31, 2025, the Company had pre-tax federal, state and foreign net operating loss carryforwards of approximately $10.8 million, $5.5 million and $37.7 million, respectively, which are available to reduce future taxable income. With certain exceptions, these net operating loss carryforwards will expire from 2031 through 2037 for federal losses, from 2029 through 2038 for state losses, and from 2038 through 2045 for foreign losses. In addition, $32.3 million of the foreign net operating loss carryforwards in our European jurisdictions carryforward indefinitely. Utilization of the Company’s net operating loss carryforwards is subject to an annual limitation under Internal Revenue Code Section 382. The Company has recorded a deferred tax asset for only the portion of its net operating loss carryforward that it expects to realize before expiration.
With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for the years prior to 2022. However, the Company has certain net operating loss carryforwards from tax years 2010 through 2017 that are subject to examination. As of December 31, 2025 and 2024, the Company did not have any amounts accrued for interest and penalties or recorded for uncertain tax positions.
At December 31, 2025 and 2024, after consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required on the Company’s U.S. deferred tax assets. However, a valuation allowance of $8.0 million and $6.5 million as of December 31, 2025 and 2024, respectively, has been recorded on deferred tax assets associated with foreign net operating loss carryforwards. The valuation allowance increased by $1.5 million and $0.7 million during the years ended December 31, 2025 and 2024, respectively.
Cash paid for income taxes, net of refunds received, by jurisdiction for the years ended December 31, 2025, 2024, and 2023 is as follows (in thousands):
Year ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Federal | $ | 10,662 | $ | 17,050 | $ | 13,665 | ||||||||||||||
State: | ||||||||||||||||||||
California | 748 | 1,227 | 1,198 | |||||||||||||||||
Florida | 1,181 | 1,978 | 2,580 | |||||||||||||||||
New York | 2,167 | 1,297 | 982 | |||||||||||||||||
Other States | 2,328 | 3,039 | 3,078 | |||||||||||||||||
Foreign | 803 | — | — | |||||||||||||||||
Cash paid for income taxes, net of refunds received | $ | 17,889 | $ | 24,591 | $ | 21,503 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 22, 2019 | |
| 2017 | Mar 15, 2018 | |
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.