Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 260

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part II, Item 8
Chunk 260
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 six months ended June 30, 2025, $8.4 million was stock-based compensation expense, compared to $5.4 million in 2024. The interest expense was $3.2 million for the six months ended June 30, 2025. As of June 30, 2025, the outstanding borrowing on the facility was $74.6 million compared to no outstanding borrowings in 2024. Other expenses declined to $4.0 million for the six months ended June 30, 2025 as compared to the prior year period driven primarily by decreased professional fees.

70

Provision for Income Taxes

The total income tax expense of $21.6 million and $18.7 million for the three months ended June 30, 2025 and 2024, respectively, is reflected as a component of net income (loss). For the three months ended June 30, 2025 and 2024, the Company’s effective tax rate was equal to 41.0% and 45.9%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

The total income tax expense of $34.0 million and $32.5 million for the six months ended June 30, 2025 and 2024, respectively, is reflected as components of net income (loss). For the six months ended June 30, 2025 and 2024, the Company’s effective tax rate was equal to 43.5% and 46.2%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

On April 15, 2024, the Company sold its 16.98 million shares of Invesque for $0.6 million of proceeds resulting in a capital loss carryforward for tax purposes of approximately $106.8 million.

Tiptree owns less than 80% of Fortegra and is required to record deferred taxes on the outside basis on its investment in Fortegra. This deferred tax liability represents the tax that would be due, before consideration of loss carryforwards, if Tiptree were to sell all of its Fortegra stock at its carrying value on Tiptree’s balance sheet. As of June 30,