Avantax (AVTA) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-25131
Entity Registrant Name	Blucora, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	91-1718107
Entity Address, Address Line One	3200 Olympus Blvd, Suite 100
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75019
City Area Code	972
Local Phone Number	870-6400
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	BCOR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,718,718
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001068875

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 184,926	$ 150,125
Cash segregated under federal or other regulations	536	637
Accounts receivable, net of allowance	17,886	12,736
Commissions and advisory fees receivable	25,003	26,132
Other receivables	468	717
Prepaid expenses and other current assets, net	11,119	10,321
Total current assets	239,938	200,668
Long-term assets:
Property and equipment, net	68,950	58,500
Right-of-use assets, net	20,818	23,455
Goodwill	454,821	454,821
Other intangible assets, net	304,435	322,179
Other long-term assets	14,519	4,569
Total long-term assets	863,543	863,524
Total assets	1,103,481	1,064,192
Current liabilities:
Accounts payable	8,932	9,290
Commissions and advisory fees payable	18,297	19,021
Accrued expenses and other current liabilities	75,375	56,419
Deferred revenue—current	5,469	12,298
Lease liabilities—current	4,429	2,304
Current portion of long-term debt	1,790	1,784
Total current liabilities	114,292	101,116
Long-term liabilities:
Long-term debt, net	552,987	552,553
Deferred tax liability, net	29,502	30,663
Deferred revenue—long-term	5,553	6,247
Lease liabilities—long-term	34,020	36,404
Other long-term liabilities	7,992	24,919
Total long-term liabilities	630,054	650,786
Total liabilities	744,346	751,902
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, par value $0.0001 per share—900,000 shares authorized; 50,025 shares issued and 48,719 shares outstanding at September 30, 2021; 49,483 shares issued and 48,177 shares outstanding at December 31, 2020	5	5
Additional paid-in capital	1,613,624	1,598,230
Accumulated deficit	(1,226,095)	(1,257,546)
Treasury stock, at cost—1,306 shares at September 30, 2021 and December 31, 2020	(28,399)	(28,399)
Total stockholders’ equity	359,135	312,290
Total liabilities and stockholders’ equity	$ 1,103,481	$ 1,064,192

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares issued (in shares)	50,025,000	49,483,000
Common stock, shares outstanding (in shares)	48,719,000	48,177,000
Treasury stock (in shares)	1,306,000	1,306,000

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Total revenue	$ 174,174	$ 175,353	$ 706,869	$ 599,795
Cost of revenue:
Total cost of revenue	122,964	98,814	355,504	292,091
Engineering and technology	7,874	6,007	22,233	21,899
Sales and marketing	28,399	31,018	140,809	150,785
General and administrative	23,102	18,605	71,619	63,533
Acquisition and integration	2,241	10,276	28,513	18,782
Depreciation	2,867	1,874	8,371	5,345
Amortization of other acquired intangible assets	7,009	7,746	21,247	22,167
Impairment of goodwill	0	0	0	270,625
Total operating expenses	194,456	174,340	648,296	845,227
Operating income (loss)	(20,282)	1,013	58,573	(245,432)
Other loss, net	(8,295)	(11,963)	(24,202)	(23,386)
Income (loss) before income taxes	(28,577)	(10,950)	34,371	(268,818)
Income tax benefit (expense)	774	(15,256)	(2,920)	(23,237)
Net income (loss)	$ (27,803)	$ (26,206)	$ 31,451	$ (292,055)
Net income (loss) per share:
Basic (in USD per share)	$ (0.57)	$ (0.55)	$ 0.65	$ (6.09)
Diluted (in USD per share)	$ (0.57)	$ (0.55)	$ 0.64	$ (6.09)
Weighted average shares outstanding:
Basic (in shares)	48,707	48,039	48,492	47,936
Diluted (in shares)	48,707	48,039	49,373	47,936
Comprehensive income (loss):
Net income (loss)	$ (27,803)	$ (26,206)	$ 31,451	$ (292,055)
Other comprehensive income, net of income taxes	0	0	0	272
Comprehensive income (loss)	(27,803)	(26,206)	31,451	(291,783)
Wealth Management Services
Revenue:
Total revenue	169,135	135,932	486,021	396,805
Cost of revenue:
Total cost of revenue	120,641	96,122	343,174	282,332
Tax Preparation Services
Revenue:
Total revenue	5,039	39,421	220,848	202,990
Cost of revenue:
Total cost of revenue	$ 2,323	$ 2,692	$ 12,330	$ 9,759

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Treasury stock
Balance (in shares) at Mar. 31, 2020		49,148				1,306
Balance at Dec. 31, 2019	$ 643,515	$ 5	$ 1,586,972	$ (914,791)	$ (272)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units (in shares)		89
Common stock issued for stock options and restricted stock units	0
Stock-based compensation	(1,201)		(1,201)
Tax payments from shares withheld for equity awards	(917)		(917)
Cumulative translation adjustment	272				272
Net income (loss)	(315,494)			(315,494)
Balance (in shares) at Dec. 31, 2019		49,059				1,306
Balance at Mar. 31, 2020	326,175	$ 5	1,584,854	(1,230,285)	0	$ (28,399)
Balance (in shares) at Sep. 30, 2020		49,350				1,306
Balance at Dec. 31, 2019	643,515	$ 5	1,586,972	(914,791)	(272)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(292,055)
Balance (in shares) at Dec. 31, 2019		49,059				1,306
Balance at Sep. 30, 2020	359,144	$ 5	1,594,384	(1,206,846)	0	$ (28,399)
Balance (in shares) at Jun. 30, 2020		49,340				1,306
Balance at Mar. 31, 2020	326,175	$ 5	1,584,854	(1,230,285)	0	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units, and employee stock purchase plan (in shares)		192
Common stock issued for stock options, restricted stock units, and employee stock purchase plan	1,226		1,226
Stock-based compensation	3,904		3,904
Tax payments from shares withheld for equity awards	(89)		(89)
Net income (loss)	49,645			49,645
Balance (in shares) at Mar. 31, 2020		49,148				1,306
Balance at Jun. 30, 2020	380,861	$ 5	1,589,895	(1,180,640)	0	$ (28,399)
Balance (in shares) at Sep. 30, 2020		49,350				1,306
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units (in shares)		10
Common stock issued for stock options and restricted stock units	0
Stock-based compensation	4,517		4,517
Tax payments from shares withheld for equity awards	(28)		(28)
Net income (loss)	(26,206)			(26,206)
Balance (in shares) at Jun. 30, 2020		49,340				1,306
Balance at Sep. 30, 2020	359,144	$ 5	1,594,384	(1,206,846)	0	$ (28,399)
Balance (in shares) at Mar. 31, 2021		49,615				1,306
Balance at Dec. 31, 2020	312,290	$ 5	1,598,230	(1,257,546)	0	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units (in shares)		132
Common stock issued for stock options and restricted stock units	63		63
Stock-based compensation	5,520		5,520
Tax payments from shares withheld for equity awards	(865)		(865)
Net income (loss)	27,646			27,646
Balance (in shares) at Dec. 31, 2020		49,483				1,306
Balance at Mar. 31, 2021	344,654	$ 5	1,602,948	(1,229,900)	0	$ (28,399)
Balance (in shares) at Sep. 30, 2021		50,025				1,306
Balance at Dec. 31, 2020	312,290	$ 5	1,598,230	(1,257,546)	0	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	31,451
Balance (in shares) at Dec. 31, 2020		49,483				1,306
Balance at Sep. 30, 2021	359,135	$ 5	1,613,624	(1,226,095)	0	$ (28,399)
Balance (in shares) at Jun. 30, 2021		49,962				1,306
Balance at Mar. 31, 2021	344,654	$ 5	1,602,948	(1,229,900)	0	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units, and employee stock purchase plan (in shares)		347
Common stock issued for stock options, restricted stock units, and employee stock purchase plan	1,989		1,989
Stock-based compensation	4,720		4,720
Tax payments from shares withheld for equity awards	(464)		(464)
Net income (loss)	31,608			31,608
Balance (in shares) at Mar. 31, 2021		49,615				1,306
Balance at Jun. 30, 2021	382,507	$ 5	1,609,193	(1,198,292)	0	$ (28,399)
Balance (in shares) at Sep. 30, 2021		50,025				1,306
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options, restricted stock units (in shares)		63
Common stock issued for stock options and restricted stock units	328
Common stock issued for stock options, restricted stock units, and employee stock purchase plan			328
Stock-based compensation	4,387		4,387
Tax payments from shares withheld for equity awards	(284)		(284)
Net income (loss)	(27,803)			(27,803)
Balance (in shares) at Jun. 30, 2021		49,962				1,306
Balance at Sep. 30, 2021	$ 359,135	$ 5	$ 1,613,624	$ (1,226,095)	$ 0	$ (28,399)

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net income (loss)	$ 31,451	$ (292,055)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Stock-based compensation	15,499	7,220
Depreciation and amortization of acquired intangible assets	32,498	29,619
Impairment of goodwill	0	270,625
Reduction of right-of-use lease assets	2,694	8,335
Deferred income taxes	(1,161)	23,199
Amortization of debt issuance costs	1,128	1,006
Accretion of debt discounts	851	414
Gain on the sale of a business	0	(349)
Change in the fair value of acquisition-related contingent consideration	19,500	(1,000)
Accretion of lease liability	731	1,413
Other	1,371	984
Cash provided (used) by changes in operating assets and liabilities:
Accounts receivable	(5,008)	12,267
Commissions and advisory fees receivable	1,129	(1,480)
Other receivables	249	(2,909)
Prepaid expenses and other current assets	(798)	2,555
Other long-term assets	(10,898)	2,763
Accounts payable	(358)	(7,018)
Commissions and advisory fees payable	(500)	(3,012)
Lease liabilities	(1,047)	(3,568)
Deferred revenue	(7,523)	(8,582)
Accrued expenses and other current and long-term liabilities	(5,417)	(5,113)
Net cash provided by operating activities	74,391	35,314
Investing activities:
Purchases of property and equipment	(21,624)	(28,711)
Business acquisitions, net of cash acquired	0	(102,425)
Asset acquisitions, net of cash acquired	3,823	0
Proceeds from sale of a business	0	349
Net cash used by investing activities	(25,447)	(130,787)
Financing activities:
Proceeds from credit facilities, net of debt issuance costs and debt discounts	(502)	226,278
Payments on credit facilities	(1,359)	(66,078)
Proceeds from stock option exercises	535	25
Proceeds from issuance of stock through employee stock purchase plan	1,845	1,201
Tax payments from shares withheld for equity awards	(1,613)	(1,034)
Acquisition-related contingent consideration payments	(13,150)	0
Net cash provided (used) by financing activities	(14,244)	160,392
Net increase in cash, cash equivalents, and restricted cash	34,700	64,919
Cash, cash equivalents, and restricted cash, beginning of period	150,762	86,450
Cash, cash equivalents, and restricted cash, end of period	185,462	151,369
Supplemental cash flow information:
Cash paid for income taxes	2,864	1,657
Cash paid for interest	21,626	16,994
Non-cash investing activities:
Purchases of property and equipment through leasehold incentives	$ 0	$ 9,726

Description of the Business

Description of the Business	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Note 1: Description of the Business Blucora, Inc. (the “Company,” “Blucora,” “we,” “our,” or “us” ) operates two primary businesses: the Wealth Management business and the digital Tax Software business. Wealth Management Our wealth management business consists of the operations of Avantax Wealth Management and Avantax Planning Partners (collectively, the “Wealth Management business” or the “Wealth Management segment” ). Avantax Wealth Management provides tax-focused wealth management solutions for financial professionals, tax professionals, certified public accounting ( “CPA” ) firms, and their clients. Avantax Wealth Management offers its services through its registered broker-dealer, registered investment advisor ( “RIA” ), and insurance agency subsidiaries and is the leading U.S. tax-focused independent broker-dealer. Avantax Wealth Management works with a nationwide network of financial professionals that operate as independent contractors. Avantax Wealth Management provides these financial professionals with an integrated platform of technical, practice, compliance, operations, sales, and product support tools that enable them to offer tax-advantaged investing and wealth management services to their clients. Avantax Planning Partners is an in-house/employee based RIA and wealth management business that partners with CPA firms in order to provide their consumer and small business clients with holistic financial planning and advisory services, as well as retirement plan solutions through Avantax Retirement Plan Services. Avantax Planning Partners formerly operated as Honkamp Krueger Financial Services, Inc. ( “HKFS” ). Our employee-based RIA model, which we refer to as “Avantax Planning Partners,” also includes Avantax Wealth Management total client assets that have been acquired from Avantax Wealth Management financial professionals. On July 1, 2020, we acquired all of the issued and outstanding common stock of HKFS (the “HKFS Acquisition” ). The operations of HKFS are included in our operating results as part of the Wealth Management segment from the date of the HKFS Acquisition. On January 4, 2021, we announced the rebranding of HKFS to Avantax Planning Partners (the “Rebranding” ). The Rebranding was designed to create tighter brand alignment, bringing the Wealth Management business under one common and recognizable brand. Tax Software The Tax Software business consists of the operations of TaxAct, Inc. ( “TaxAct,” the “Tax Software business,” or the “Tax Software segment” ) and provides digital tax preparation services, packaged tax software, and ancillary services for consumers, small business owners, and tax professionals through its website www.TaxAct.com and its mobile applications. We had referred to this business as the “Tax Preparation business” and “Tax Preparation segment” in previous filings. The Tax Software segment is highly seasonal with a significant portion of its annual revenue typically earned in the first two quarters of the fiscal year. During the third and fourth quarters, the Tax Software segment typically reports losses because revenue from the segment is minimal while core operating expenses continue. In March 2020 and as a result of the COVID-19 pandemic, the Internal Revenue Service ( “IRS” ) extended the filing deadline for federal tax returns from April 15, 2020 to July 15, 2020. This filing extension resulted in the shifting of a significant portion of Tax Software segment revenue that would typically be earned in the first and second quarters of 2020 to the third quarter of 2020. As a result of the continued impact of the COVID-19 pandemic, the IRS delayed the start of the 2021 tax season and extended the filing and payment deadline for tax year 2020 federal tax returns from April 15, 2021 to May 17, 2021. In addition, the IRS further extended the federal filing and payment deadline for Texas, Louisiana, and Oklahoma to June 15, 2021. This extension resulted in the shifting of a significant portion of Tax Software segment revenue that would typically have been expected to be earned in the first quarter of 2021 to the second quarter of 2021.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Interim financial information The accompanying condensed consolidated financial statements have been prepared by us under the rules and regulations of the SEC for interim financial reporting. These condensed consolidated financial statements are unaudited and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation of the consolidated financial position, results of operations, and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in conformity with United States generally accepted accounting principles ( “ GAAP” ) have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year. Cash, cash equivalents, and restricted cash The following table presents cash, cash equivalents, and restricted cash as reported on the condensed consolidated balance sheets and the condensed consolidated statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 184,926 $ 150,125 Cash segregated under federal or other regulations 536 637 Total cash, cash equivalents, and restricted cash $ 185,462 $ 150,762 We generally invest our available cash in high-quality marketable investments. These investments include money market funds invested in securities issued by agencies of the U.S. government. We may invest, from time-to-time, in other vehicles, such as debt instruments issued by the U.S. federal government and its agencies, international governments, municipalities, and publicly held corporations, as well as commercial paper and insured time deposits with commercial banks. Specific holdings can vary from period to period depending upon our cash requirements. Such investments are reported at fair value on the condensed consolidated balance sheets. Cash segregated under federal and other regulations is held in a separate bank account for the exclusive benefit of our Avantax Wealth Management clients and is recognized as restricted cash on the condensed consolidated balance sheets. Asset Acquisitions Acquisitions that do not meet the criteria to be accounted for as a business combination are accounted for as an asset acquisition. Using a cost accumulation model, the purchase price, including acquisition costs and any contingent consideration, if the contingencies are met for such contingent consideration at or near the acquisition date, is allocated to the acquired assets and assumed liabilities based upon their relative fair values as of the acquisition date and no goodwill is contemplated in the allocation process. Contingent consideration that is not earned at or near the acquisition date is capitalized as part of the cost of the assets acquired and is allocated to increase the eligible assets on a relative fair value basis. We include the operations of an asset acquisition in our consolidated operating results beginning on the date of acquisition. The allocation of the purchase price to the assets acquired and liabilities assumed may require estimates, including but not limited to ones related to expected long-term revenues, future expected operating expenses, cost of capital, assumed attrition rates, and discount rates. Goodwill We assess goodwill for impairment at the reporting unit level, which consists of the Wealth Management reporting unit and the Tax Software reporting unit. We evaluate goodwill for impairment annually, as of November 30, or more frequently when events or circumstances indicate it is more likely than not that the estimated fair value of one or more of our reporting units is less than its carrying amount. To determine whether it is necessary to perform a goodwill impairment test, we first assess qualitative factors to evaluate whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. We may elect to perform a goodwill impairment test without completing a qualitative assessment. Beginning in March 2020, the COVID-19 pandemic had a significant negative impact on the U.S. and global economy and caused substantial disruption in the U.S. and global securities markets, and as a result, negatively impacted certain key Wealth Management business drivers, such as client asset levels and interest rates. These macroeconomic and Company-specific factors, in totality, served as a triggering event that resulted in the testing of the goodwill of the Wealth Management reporting unit and the Tax Software reporting unit for potential impairment. As part of the goodwill impairment tests, we compared the estimated fair values of the Wealth Management and Tax Software reporting units to their respective carrying values. Estimated fair value was calculated using Level 3 inputs and utilized a blended valuation method that factored in the income approach and the market approach. The income approach is an estimate of fair value that uses the present value of future discounted cash flows. Significant estimates used in the discounted cash flow model included our forecasted cash flows, our long-term rates of growth, and our weighted average cost of capital. The weighted average cost of capital factors in the relevant risk associated with business-specific characteristics and the uncertainty related to the ability to achieve our projected cash flows related to the reporting unit or overall business. The market approach is an estimate of fair value that takes income-based valuation multiples for a set of comparable companies and applies the valuation multiple to each reporting unit’s income. For the Wealth Management reporting unit, the carrying value of the reporting unit exceeded its estimated fair value by $270.6 million. Therefore, we recorded an impairment of goodwill of $270.6 million as of March 31, 2020. For the Tax Software reporting unit, the carrying value of the reporting unit was significantly below its estimated fair value, and therefore, the goodwill of the Tax Software reporting unit was not considered impaired. While no goodwill impairment triggering events were identified during the nine months ended September 30, 2021, the Wealth Management reporting unit is considered to be at risk for a future impairment of its goodwill in the event of a further decline in general economic, market, or business conditions, or any significant unfavorable changes in our forecasted revenue, expenses, cash flows, weighted average cost of capital, and/or market valuation multiples. We will continue to monitor for events and circumstances that could negatively impact the key assumptions in determining the estimated fair value of the Wealth Management reporting unit.

Segment Information and Revenue

Segment Information and Revenue	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segment Information and Revenue	Note 3: Segment Information and Revenue We have two reportable operating segments: (1) the Wealth Management segment and (2) the Tax Software segment. Our Chief Executive Officer is the chief operating decision maker and reviews financial information presented on a disaggregated basis. This information is used for purposes of allocating resources and evaluating financial performance. We do not allocate certain general and administrative costs (including personnel and overhead costs), stock-based compensation, depreciation, amortization of acquired intangible assets, acquisition and integration costs, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, or impairment of goodwill to the reportable segments. Such amounts are reflected in the table below under the heading “Corporate-level activity.” In addition, we do not allocate other loss, net, or income taxes to the reportable segments. We do not report assets or capital expenditures by segment to the chief operating decision maker. Information on reportable operating segments currently presented to our chief operating decision maker and a reconciliation of operating income (loss) to consolidated net income (loss) are presented below (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenue: Wealth Management revenue $ 169,135 $ 135,932 $ 486,021 $ 396,805 Tax Software revenue 5,039 39,421 220,848 202,990 Total revenue $ 174,174 $ 175,353 $ 706,869 $ 599,795 Operating income (loss): Wealth Management $ 19,564 $ 17,498 $ 60,356 $ 51,827 Tax Software (13,864) 16,234 100,472 60,646 Corporate-level activity (25,982) (32,719) (102,255) (357,905) Total operating income (loss) (20,282) 1,013 58,573 (245,432) Other loss, net (8,295) (11,963) (24,202) (23,386) Income tax benefit (expense) 774 (15,256) (2,920) (23,237) Net income (loss) $ (27,803) $ (26,206) $ 31,451 $ (292,055) Revenues by major category within each segment are presented below (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Wealth Management: Advisory revenue $ 103,540 $ 82,612 $ 291,167 $ 227,672 Commission revenue 52,961 44,921 157,197 135,337 Asset-based revenue 5,659 4,351 16,514 18,911 Transaction and fee revenue 6,975 4,048 21,143 14,885 Total Wealth Management revenue $ 169,135 $ 135,932 $ 486,021 $ 396,805 Tax Software: Consumer revenue $ 4,479 $ 38,482 $ 203,891 $ 186,724 Professional revenue 560 939 16,957 16,266 Total Tax Software revenue $ 5,039 $ 39,421 $ 220,848 $ 202,990 Wealth Management revenue recognition Wealth management revenue primarily consists of advisory revenue, commission revenue, asset-based revenue, and transaction and fee revenue. The timing of Wealth Management revenue recognition was as follows (in thousands): Three months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Advisory revenue $ — $ 103,540 $ 103,540 $ — $ 82,612 $ 82,612 Commission revenue 22,372 30,589 52,961 16,884 28,037 44,921 Asset-based revenue — 5,659 5,659 — 4,351 4,351 Transaction and fee revenue 1,213 5,762 6,975 1,067 2,981 4,048 Total Wealth Management revenue $ 23,585 $ 145,550 $ 169,135 $ 17,951 $ 117,981 $ 135,932 Nine months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Advisory revenue $ — $ 291,167 $ 291,167 $ — $ 227,672 $ 227,672 Commission revenue 65,815 91,382 157,197 55,068 80,269 135,337 Asset-based revenue — 16,514 16,514 — 18,911 18,911 Transaction and fee revenue 3,779 17,364 21,143 4,063 10,822 14,885 Total Wealth Management revenue $ 69,594 $ 416,427 $ 486,021 $ 59,131 $ 337,674 $ 396,805 Tax Software revenue recognition We generate Tax Software revenue from the sale of digital tax preparation services, packaged tax preparation software, ancillary services, and multiple element arrangements that may include a combination of these items. The timing of Tax Software revenue recognition was as follows (in thousands): Three months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Consumer revenue $ 4,479 $ — $ 4,479 $ 38,480 $ 2 $ 38,482 Professional revenue 370 190 560 641 298 939 Total Tax Software revenue $ 4,849 $ 190 $ 5,039 $ 39,121 $ 300 $ 39,421 Nine months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Consumer revenue $ 203,891 $ — $ 203,891 $ 186,721 $ 3 $ 186,724 Professional revenue 14,626 2,331 16,957 13,822 2,444 16,266 Total Tax Software revenue $ 218,517 $ 2,331 $ 220,848 $ 200,543 $ 2,447 $ 202,990

Asset Acquisitions

Asset Acquisitions	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Asset Acquisitions	Note 4: Asset Acquisitions During the nine months ended September 30, 2021, we completed several acquisitions in our Wealth Management business that met the criteria to be accounted for as asset acquisitions. We paid $3.8 million in total consideration, including acquisition costs, which was allocated to the acquired assets and assumed liabilities, and primarily consisted of customer relationship intangibles. We are subject to additional contingent consideration payments on these acquisitions in 2021 up to a maximum of $5.2 million over a four-year period that are contingent upon meeting certain revenue thresholds related to the respective asset acquisitions.

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	Note 5: Debt Our debt consisted of the following as of the periods indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Principal Discount Debt issuance costs Net Principal Discount Debt issuance costs Net Senior Secured Credit Facility $ 561,797 $ (3,322) $ (3,698) $ 554,777 $ 563,156 $ (4,173) $ (4,646) $ 554,337 Less: Current portion of long-term debt, net (1,790) (1,784) Long-term debt, net $ 552,987 $ 552,553 In May 2017, we entered into a credit agreement (as the same has been amended, the “Credit Agreement” ) with a syndicate of lenders, which provides for a term loan facility (the “Term Loan” ) and a revolving line of credit (including a letter of credit sub-facility) (the “Revolver” ) for working capital, capital expenditures, and general business purposes (the “Senior Secured Credit Facility” ). On April 26, 2021, to ensure adequate liquidity and flexibility to support the Company’s growth, we entered into Amendment No. 5 to the Credit Agreement (the “Credit Agreement Amendment” ). Pursuant to the Credit Agreement Amendment, the Credit Agreement was amended to, among other things, refinance the existing $65.0 million Revolver and add $25.0 million of additional revolving credit commitments, for an aggregate principal amount of $90.0 million in revolving credit commitments (the “New Revolver” ). The Company capitalized approximately $0.5 million of debt issuance costs paid in connection with the Credit Agreement Amendment, which are included in other long-term assets on the Company’s condensed consolidated balance sheet as part of the total deferred financing costs associated with the New Revolver. As of September 30, 2021, the Senior Secured Credit Facility provided for up to $765.0 million of borrowings and consisted of a committed $90.0 million under the New Revolver and a $675.0 million Term Loan that mature on February 21, 2024 and May 22, 2024, respectively. As of September 30, 2021, we had $561.8 million in principal amount outstanding under the Term Loan and no amount outstanding under the New Revolver. Based on aggregate loan commitments as of September 30, 2021, approximately $90.0 million was available for future borrowings under the Senior Secured Credit Facility, subject to customary terms and conditions. The Company is required to make mandatory annual prepayments on the Term Loan in certain circumstances, including in the event that the Company generates Excess Cash Flow (as defined in the Credit Agreement) in a given fiscal year. The Credit Agreement permits the Company to voluntarily prepay the Term Loan without premium or penalty. In addition, the Company is required to make principal amortization payments on the Term Loan quarterly on the last business day of each March, June, September, and December, in an amount equal to approximately $0.5 million (subject to reduction for prepayments), with the remaining principal amount of the Term Loan due on the maturity date of May 22, 2024. The interest rate on the Term Loan is variable at the London Interbank Offered Rate, plus the applicable interest rate margin of 4.0% for Eurodollar Rate Loans (as defined in the Credit Agreement) and 3.0% for ABR Loans (as defined in the Credit Agreement). As of September 30, 2021, the applicable interest rate on the Term Loan was 5.0%. Depending on the Consolidated First Lien Net Leverage Ratio (as defined in the Credit Agreement), the applicable interest rate margin on the New Revolver ranges from 2.0% to 2.5% for Eurodollar Rate Loans and 1.0% to 1.5% for ABR Loans. The Company is required to pay a commitment fee on the undrawn commitment under the New Revolver in a percentage that is dependent on the Consolidated First Lien Net Leverage Ratio that ranges from 0.35% to 0.4%. Interest is payable at the end of each interest period. Obligations under the Senior Secured Credit Facility are guaranteed by certain of the Company’s subsidiaries and secured by substantially all the assets of the Company and certain of its subsidiaries (including certain subsidiaries acquired in the HKFS Acquisition and certain other material subsidiaries). The Senior Secured Credit Facility includes financial and operating covenants (including a Consolidated Total Net Leverage Ratio), which are set forth in detail in the Credit Agreement. Pursuant to the Credit Agreement Amendment, if the Company’s usage of the New Revolver exceeds 30% of the aggregate commitments under the New Revolver on the last day of any calendar quarter, the Company shall not permit the Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) to exceed (i) 4.75 to 1.00 for the period beginning on April 1, 2021 and ending on December 31, 2021, (ii) 4.25 to 1.00 for the period beginning on January 1, 2022 and ending on September 30, 2022, (iii) 4.00 to 1.00 for the period beginning on October 1, 2022 and ending on December 31, 2022, and (iv) 3.50 to 1.00 for the period beginning on January 1, 2023 and ending on February 21, 2024. Except as described above, the New Revolver has substantially the same terms as the previous Revolver, including certain covenants and events of default. The Company was in compliance with the debt covenants of the Senior Secured Credit Facility as of September 30, 2021.

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	Note 6: Leases Our leases are primarily related to office space and are classified as operating leases. Operating lease expense, net of sublease income, is recognized in our accompanying condensed consolidated statements of comprehensive income (loss) in “General and administrative” expense for net lease expense related to leases used in our operations and “Acquisition and integration” expense for net lease expense related to the unoccupied lease resulting from the acquisition of 1st Global, Inc. and 1st Global Insurance Services, Inc. (together, “1st Global” ) in 2019 (the “1st Global Acquisition” ). Lease expense, cash paid on operating lease liabilities, and lease liabilities obtained from new right-of-use assets for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Fixed lease expense $ 1,001 $ 1,566 $ 3,254 $ 5,652 Variable lease expense 462 191 707 778 Lease expense, before sublease income 1,463 1,757 3,961 6,430 Sublease income (116) (464) (348) (1,119) Total lease expense, net of sublease income $ 1,347 $ 1,293 $ 3,613 $ 5,311 Additional lease information: Cash paid on operating lease liabilities $ 602 $ 1,037 $ 1,047 $ 3,509 Lease liabilities obtained from new right-of-use assets (1) $ — $ 1,352 $ 93 $ 21,766 __________________________ (1) Lease liabilities obtained from new right-of-use assets for the nine months ended September 30, 2020 resulted from the new corporate headquarters lease that commenced in January 2020. As of September 30, 2021, our weighted-average remaining operating lease term was approximately 10.6 years and our weighted-average operating lease discount rate was 5.4%. Operating lease liabilities on the condensed consolidated balance sheets were as follows (in thousands): September 30, 2021 December 31, 2020 Lease liabilities—current $ 4,429 $ 2,304 Lease liabilities—long-term 34,020 36,404 Total operating lease liabilities $ 38,449 $ 38,708 The scheduled maturities of our operating lease liabilities on the condensed consolidated balance sheet as of September 30, 2021 were as follows (in thousands): Undiscounted cash flows: Remainder of 2021 $ 804 2022 5,040 2023 5,172 2024 5,080 2025 5,013 Thereafter 30,324 Total undiscounted cash flows 51,433 Imputed interest (12,984) Total operating lease liabilities $ 38,449
Leases	Note 6: Leases Our leases are primarily related to office space and are classified as operating leases. Operating lease expense, net of sublease income, is recognized in our accompanying condensed consolidated statements of comprehensive income (loss) in “General and administrative” expense for net lease expense related to leases used in our operations and “Acquisition and integration” expense for net lease expense related to the unoccupied lease resulting from the acquisition of 1st Global, Inc. and 1st Global Insurance Services, Inc. (together, “1st Global” ) in 2019 (the “1st Global Acquisition” ). Lease expense, cash paid on operating lease liabilities, and lease liabilities obtained from new right-of-use assets for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Fixed lease expense $ 1,001 $ 1,566 $ 3,254 $ 5,652 Variable lease expense 462 191 707 778 Lease expense, before sublease income 1,463 1,757 3,961 6,430 Sublease income (116) (464) (348) (1,119) Total lease expense, net of sublease income $ 1,347 $ 1,293 $ 3,613 $ 5,311 Additional lease information: Cash paid on operating lease liabilities $ 602 $ 1,037 $ 1,047 $ 3,509 Lease liabilities obtained from new right-of-use assets (1) $ — $ 1,352 $ 93 $ 21,766 __________________________ (1) Lease liabilities obtained from new right-of-use assets for the nine months ended September 30, 2020 resulted from the new corporate headquarters lease that commenced in January 2020. As of September 30, 2021, our weighted-average remaining operating lease term was approximately 10.6 years and our weighted-average operating lease discount rate was 5.4%. Operating lease liabilities on the condensed consolidated balance sheets were as follows (in thousands): September 30, 2021 December 31, 2020 Lease liabilities—current $ 4,429 $ 2,304 Lease liabilities—long-term 34,020 36,404 Total operating lease liabilities $ 38,449 $ 38,708 The scheduled maturities of our operating lease liabilities on the condensed consolidated balance sheet as of September 30, 2021 were as follows (in thousands): Undiscounted cash flows: Remainder of 2021 $ 804 2022 5,040 2023 5,172 2024 5,080 2025 5,013 Thereafter 30,324 Total undiscounted cash flows 51,433 Imputed interest (12,984) Total operating lease liabilities $ 38,449

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Note 7: Balance Sheet Components Prepaid expenses and other current assets, net, consisted of the following (in thousands): September 30, 2021 December 31, 2020 Prepaid expenses $ 7,523 $ 9,643 Other current assets 3,596 678 Total prepaid expenses and other current assets, net $ 11,119 $ 10,321 Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Salaries and related benefit expenses $ 23,069 $ 19,317 HKFS Contingent Consideration liability (1)(2) 25,400 17,900 Contingent liability from 1st Global Acquisition (2) 16,828 11,328 Accrued vendor and advertising costs 2,254 2,606 Accrued taxes 1,630 240 Other current liabilities 6,194 5,028 Total accrued expenses and other current liabilities $ 75,375 $ 56,419 __________________________ (1) As of September 30, 2021, this amount represents the estimated fair value of the second contingent consideration payment related to the HKFS Acquisition which is payable in the third quarter of 2022. As of December 31, 2020, this amount represents the estimated fair value of the first contingent consideration payment related to the HKFS Acquisition which was subsequently paid in the third quarter of 2021. (2) For more information on the Company’s contingent liabilities, see "Note 8—Commitments and Contingencies."

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8: Commitments and Contingencies Contingent liability from 1st Global Acquisition On May 6, 2019, we closed the 1st Global Acquisition. As part of the 1st Global Acquisition, we assumed a contingent liability related to a regulatory inquiry and recorded the contingent liability as part of the opening balance sheet. We evaluated a range of probable losses, resulting in a contingent liability reserve balance (including accrued interest) of $11.3 million at December 31, 2020. In the second quarter of 2021, we re-evaluated the range of probable losses as a result of our on-going discussions with the SEC. While the regulatory inquiry, which is related to certain pre-acquisition matters, is still on-going, we increased our contingent liability reserve to $16.8 million as of June 30, 2021. The $5.5 million increase to the contingent liability reserve was recognized in “Acquisition and integration” expense on the accompanying condensed consolidated statements of comprehensive income for the nine months ended September 30, 2021. As part of the 1st Global Acquisition, we purchased representation and warranty insurance from a third party to supplement the indemnification provisions of the stock purchase agreement, dated as of March 18, 2019, by and among 1G Acquisitions, LLC, an indirect wholly owned subsidiary of the Company, 1st Global, Inc. and 1st Global Insurance Services, Inc., certain selling stockholders named therein and joinder sellers (the “1st Global Sellers” ) and SAB Representative, LLC, as the Sellers’ representative, pursuant to which, the 1st Global Sellers agreed, among other things, to indemnify us from certain losses arising from breaches of representation, warranties, and covenants. At this time, we cannot yet estimate with reasonable probability the recovery related to these matters from insurance or the 1st Global Sellers, if any. Contingent consideration liability from HKFS Acquisition On July 1, 2020, we closed the HKFS Acquisition for an upfront cash purchase price of $104.4 million. The purchase price is subject to two post-closing earn-out payments (the “HKFS Contingent Consideration” ) by us. The amount of the HKFS Contingent Consideration is determined based on advisory asset levels and the achievement of certain performance goals (i) for the period beginning on July 1, 2020 and ending on July 1, 2021 and (ii) for the period beginning on July 1, 2021 and ending on July 1, 2022. Pursuant to the Stock Purchase Agreement, dated as of January 6, 2020, by and among the Company, HKFS, the selling stockholders named therein (the “Sellers” ), and JRD Seller Representative, LLC, as the Sellers’ representative (as amended on April 7, 2020, June 30, 2020, and June 29, 2021) (the “HKFS Purchase Agreement” ), the maximum aggregate amount that we would be required to pay for each earn-out period is $30.0 million. If the asset values on the applicable measurement date fall below certain specified thresholds, we would not be required to make any earn-out payment to the Sellers for such period. Based on advisory asset levels and the achievement of performance goals for the first earn-out period specified in the HKFS Purchase Agreement, we made the full $30.0 million payment in the third quarter of 2021. The estimated fair value of the HKFS Contingent Consideration liability for the second earn-out period was $25.4 million as of September 30, 2021. For additional information on the valuation of the HKFS Contingent Consideration, see "Note 9—Fair Value Measurements." Litigation From time to time, we are subject to various legal proceedings, regulatory matters or fines, or claims that arise in the ordinary course of business. We accrue a liability when management believes both that it is probable that a liability has been incurred and that the amount of loss can be reasonably estimated. Aside from the contingent liability related to the 1st Global Acquisition and the HKFS Contingent Consideration liability, we are not currently party to any such matters for which we have recognized a material liability on our condensed consolidated balance sheet as of September 30, 2021.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 9—Fair Value Measurements In accordance with Accounting Standards Codification 820, Fair Value Measurements and Disclosures , certain of our assets and liabilities are carried at fair value and are valued using inputs that are classified in one of the following three categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs, other than Level 1, or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that are not corroborated by market data and reflect our own assumptions. Assets and liabilities measured on a recurring basis The fair value hierarchy of our financial assets and liabilities carried at estimated fair value and measured on a recurring basis were as follows (in thousands): Fair value measurements at the reporting date using September 30, 2021 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,293 $ 4,293 $ — $ — Total assets at fair value $ 4,293 $ 4,293 $ — $ — HKFS Contingent Consideration liability $ 25,400 $ — $ — $ 25,400 Total liabilities at fair value $ 25,400 $ — $ — $ 25,400 Fair value measurements at the reporting date using December 31, 2020 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,290 $ 4,290 $ — $ — Total assets at fair value $ 4,290 $ 4,290 $ — $ — HKFS Contingent Consideration liability $ 35,900 $ — $ — $ 35,900 Total liabilities at fair value $ 35,900 $ — $ — $ 35,900 Cash equivalents are classified within Level 1 of the fair value hierarchy because we value cash equivalents utilizing quoted prices in active markets. The HKFS Contingent Consideration liability relates to the two post-closing earn-out payments resulting from the HKFS Acquisition (see "Note 8—Commitments and Contingencies"). Based on advisory asset levels and the achievement of performance goals for the first earn-out period, we made the full $30.0 million payment in the third quarter of 2021. The estimated fair value of the portion of the HKFS Contingent Consideration liability related to the second earn-out period (calculated in accordance with the amended HKFS Purchase Agreement and based on estimated advisory asset levels as of June 30, 2022) was $25.4 million as of September 30, 2021. The estimated fair value of the second earn-out payment was determined using a Monte Carlo simulation model in a risk neutral framework with the underlying simulated variable of advisory asset levels and the related achievement of certain advisory asset growth levels. The Monte Carlo simulation model utilized Level 3 inputs, which included forecasted advisory asset levels at July 1, 2022, a risk-adjusted discount rate (which reflects the risk in the advisory asset projection) of 12.0%, volatility of 24.8%, and a credit spread of 2.2%. Significant increases to the discount rate, volatility, or credit spread inputs would have resulted in a significantly lower fair value measurement, with a similar inverse relationship existing for significant decreases to these inputs. A significant increase to the forecasted advisory assets levels would have resulted in a significantly higher fair value measurement, while a significant decrease to the forecasted advisory asset levels would have resulted in a significantly lower fair value measurement. A roll forward of the HKFS Contingent Consideration liability follows (in thousands): HKFS Contingent Consideration liability Balance as of December 31, 2020 (1) $ 35,900 HKFS Contingent Consideration first earn-out payment (30,000) Valuation change recognized as expense (2) 19,500 Balance as of September 30, 2021 (1) $ 25,400 _________________________ (1) See “Note 7—Balance Sheet Components” for the current portion of the HKFS Contingent Consideration liability as of September 30, 2021 and December 31, 2020. (2) The change in the fair value of the HKFS Contingent Consideration liability is recognized in “Acquisition and integration” expenses on the condensed consolidated statements of comprehensive income (loss). For the three months ended September 30, 2021, we recognized a valuation change of $1.7 million. Fair value of financial instruments We consider the carrying values of accounts receivable, commissions and advisory fees receivable, other receivables, prepaid expenses, other current assets, accounts payable, commissions and advisory fees payable, accrued expenses, other current liabilities, and deferred revenues to approximate their fair values primarily due to their short-term natures. As of September 30, 2021, the Term Loan’s principal amount was $561.8 million, and the fair value of the Term Loan’s principal amount was $562.5 million. As of December 31, 2020, the Term Loan’s principal amount was $563.2 million, and the fair value of the Term Loan’s principal amount was $561.7 million. The fair value of the Term Loan’s principal amount was based on Level 2 inputs from a third-party market quotation.

Other Loss, Net

Other Loss, Net	9 Months Ended
	Sep. 30, 2021
Other Income and Expenses [Abstract]
Other Loss, Net	Note 10: Other Loss, Net “Other loss, net” on the condensed consolidated statements of comprehensive income (loss) consisted of the following (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Interest expense $ 7,304 $ 7,254 $ 21,789 $ 17,410 Amortization of debt issuance costs 388 362 1,128 1,006 Accretion of debt discounts 290 276 851 414 Total interest expense 7,982 7,892 23,768 18,830 Interest income — (2) (2) (27) Gain on sale of a business — (349) — (349) Non-capitalized debt issuance expenses — 3,687 — 3,687 Other 313 735 436 1,245 Other loss, net $ 8,295 $ 11,963 $ 24,202 $ 23,386

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 11: Income Taxes Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Income tax benefit (expense) $ 774 $ (15,256) $ (2,920) $ (23,237) The Company recorded income tax benefit of $0.8 million and income tax expense of $2.9 million for the three and nine months ended September 30, 2021, respectively. For 2021, the Company prepared its interim tax provision by applying a year-to-date effective tax rate to each quarter. For 2020, the Company prepared its interim tax provision by applying an estimated annual effective tax rate. We believe using the actual year-to-date effective tax rate in 2021 results in the best estimate of the annual effective tax rate. The Company’s effective income tax rate for the nine months ended September 30, 2021 differed from the 21% statutory rate primarily due to the release of valuation allowances and the effect of state income taxes. We currently expect to continue to release portions of valuation allowances, which were previously recorded in connection with our net operating losses, to offset future federal income tax liabilities. The majority of these net operating losses will either be utilized or expire between 2021 and 2024.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Note 12: Net Income (Loss) Per Share “Basic net income (loss) per share” is calculated using the weighted average number of common shares outstanding during the period. “Diluted net income (loss) per share” is calculated using the weighted average number of common shares outstanding plus the number of dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options and the vesting of unvested restricted stock units. Dilutive potential common shares are excluded from the calculation of diluted net income (loss) per share if their effect is antidilutive. The calculations of basic and diluted net income (loss) per share were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ (27,803) $ (26,206) $ 31,451 $ (292,055) Denominator: Weighted average common shares outstanding—basic 48,707 48,039 48,492 47,936 Dilutive potential common shares (1) — — 881 — Weighted average common shares outstanding—diluted 48,707 48,039 49,373 47,936 Net income (loss) per share: Basic $ (0.57) $ (0.55) $ 0.65 $ (6.09) Diluted $ (0.57) $ (0.55) $ 0.64 $ (6.09) Anti-dilutive shares (1) 4,616 3,165 2,076 2,869 _________________________ (1) Dilutive potential common shares were excluded from the calculation of diluted net income (loss) per share in the periods presented which have a net loss, as their effect would have been anti-dilutive due to the net loss recognized for such periods.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Segments	We have two reportable segments: (1) the Wealth Management segment and (2) the Tax Software segment.
Interim financial information	The accompanying condensed consolidated financial statements have been prepared by us under the rules and regulations of the SEC for interim financial reporting. These condensed consolidated financial statements are unaudited and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation of the consolidated financial position, results of operations, and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in conformity with United States generally accepted accounting principles ( “ GAAP” ) have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year.
Cash, cash equivalents, and restricted cash	We generally invest our available cash in high-quality marketable investments. These investments include money market funds invested in securities issued by agencies of the U.S. government. We may invest, from time-to-time, in other vehicles, such as debt instruments issued by the U.S. federal government and its agencies, international governments, municipalities, and publicly held corporations, as well as commercial paper and insured time deposits with commercial banks. Specific holdings can vary from period to period depending upon our cash requirements. Such investments are reported at fair value on the condensed consolidated balance sheets. Cash segregated under federal and other regulations is held in a separate bank account for the exclusive benefit of our Avantax Wealth Management clients and is recognized as restricted cash on the condensed consolidated balance sheets.
Asset Acquisitions	Acquisitions that do not meet the criteria to be accounted for as a business combination are accounted for as an asset acquisition. Using a cost accumulation model, the purchase price, including acquisition costs and any contingent consideration, if the contingencies are met for such contingent consideration at or near the acquisition date, is allocated to the acquired assets and assumed liabilities based upon their relative fair values as of the acquisition date and no goodwill is contemplated in the allocation process. Contingent consideration that is not earned at or near the acquisition date is capitalized as part of the cost of the assets acquired and is allocated to increase the eligible assets on a relative fair value basis. We include the operations of an asset acquisition in our consolidated operating results beginning on the date of acquisition. The allocation of the purchase price to the assets acquired and liabilities assumed may require estimates, including but not limited to ones related to expected long-term revenues, future expected operating expenses, cost of capital, assumed attrition rates, and discount rates.
Goodwill	We assess goodwill for impairment at the reporting unit level, which consists of the Wealth Management reporting unit and the Tax Software reporting unit. We evaluate goodwill for impairment annually, as of November 30, or more frequently when events or circumstances indicate it is more likely than not that the estimated fair value of one or more of our reporting units is less than its carrying amount. To determine whether it is necessary to perform a goodwill impairment test, we first assess qualitative factors to evaluate whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. We may elect to perform a goodwill impairment test without completing a qualitative assessment. Beginning in March 2020, the COVID-19 pandemic had a significant negative impact on the U.S. and global economy and caused substantial disruption in the U.S. and global securities markets, and as a result, negatively impacted certain key Wealth Management business drivers, such as client asset levels and interest rates. These macroeconomic and Company-specific factors, in totality, served as a triggering event that resulted in the testing of the goodwill of the Wealth Management reporting unit and the Tax Software reporting unit for potential impairment.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	The following table presents cash, cash equivalents, and restricted cash as reported on the condensed consolidated balance sheets and the condensed consolidated statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 184,926 $ 150,125 Cash segregated under federal or other regulations 536 637 Total cash, cash equivalents, and restricted cash $ 185,462 $ 150,762
Schedule of Restrictions on Cash and Cash Equivalents	The following table presents cash, cash equivalents, and restricted cash as reported on the condensed consolidated balance sheets and the condensed consolidated statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 184,926 $ 150,125 Cash segregated under federal or other regulations 536 637 Total cash, cash equivalents, and restricted cash $ 185,462 $ 150,762

Segment Information and Reven_2

Segment Information and Revenue (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Schedule of Information on Reportable Segments for Reconciliation to Consolidated Net Income	Information on reportable operating segments currently presented to our chief operating decision maker and a reconciliation of operating income (loss) to consolidated net income (loss) are presented below (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenue: Wealth Management revenue $ 169,135 $ 135,932 $ 486,021 $ 396,805 Tax Software revenue 5,039 39,421 220,848 202,990 Total revenue $ 174,174 $ 175,353 $ 706,869 $ 599,795 Operating income (loss): Wealth Management $ 19,564 $ 17,498 $ 60,356 $ 51,827 Tax Software (13,864) 16,234 100,472 60,646 Corporate-level activity (25,982) (32,719) (102,255) (357,905) Total operating income (loss) (20,282) 1,013 58,573 (245,432) Other loss, net (8,295) (11,963) (24,202) (23,386) Income tax benefit (expense) 774 (15,256) (2,920) (23,237) Net income (loss) $ (27,803) $ (26,206) $ 31,451 $ (292,055)
Schedule of Segment Reporting Information, by Segment	Revenues by major category within each segment are presented below (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Wealth Management: Advisory revenue $ 103,540 $ 82,612 $ 291,167 $ 227,672 Commission revenue 52,961 44,921 157,197 135,337 Asset-based revenue 5,659 4,351 16,514 18,911 Transaction and fee revenue 6,975 4,048 21,143 14,885 Total Wealth Management revenue $ 169,135 $ 135,932 $ 486,021 $ 396,805 Tax Software: Consumer revenue $ 4,479 $ 38,482 $ 203,891 $ 186,724 Professional revenue 560 939 16,957 16,266 Total Tax Software revenue $ 5,039 $ 39,421 $ 220,848 $ 202,990
Schedule of Disaggregation of Revenue	The timing of Wealth Management revenue recognition was as follows (in thousands): Three months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Advisory revenue $ — $ 103,540 $ 103,540 $ — $ 82,612 $ 82,612 Commission revenue 22,372 30,589 52,961 16,884 28,037 44,921 Asset-based revenue — 5,659 5,659 — 4,351 4,351 Transaction and fee revenue 1,213 5,762 6,975 1,067 2,981 4,048 Total Wealth Management revenue $ 23,585 $ 145,550 $ 169,135 $ 17,951 $ 117,981 $ 135,932 Nine months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Advisory revenue $ — $ 291,167 $ 291,167 $ — $ 227,672 $ 227,672 Commission revenue 65,815 91,382 157,197 55,068 80,269 135,337 Asset-based revenue — 16,514 16,514 — 18,911 18,911 Transaction and fee revenue 3,779 17,364 21,143 4,063 10,822 14,885 Total Wealth Management revenue $ 69,594 $ 416,427 $ 486,021 $ 59,131 $ 337,674 $ 396,805 The timing of Tax Software revenue recognition was as follows (in thousands): Three months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Consumer revenue $ 4,479 $ — $ 4,479 $ 38,480 $ 2 $ 38,482 Professional revenue 370 190 560 641 298 939 Total Tax Software revenue $ 4,849 $ 190 $ 5,039 $ 39,121 $ 300 $ 39,421 Nine months ended September 30, 2021 2020 Recognized Upon Transaction Recognized Over Time Total Recognized Upon Transaction Recognized Over Time Total Consumer revenue $ 203,891 $ — $ 203,891 $ 186,721 $ 3 $ 186,724 Professional revenue 14,626 2,331 16,957 13,822 2,444 16,266 Total Tax Software revenue $ 218,517 $ 2,331 $ 220,848 $ 200,543 $ 2,447 $ 202,990

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Schedule of Company's Debt	Our debt consisted of the following as of the periods indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Principal Discount Debt issuance costs Net Principal Discount Debt issuance costs Net Senior Secured Credit Facility $ 561,797 $ (3,322) $ (3,698) $ 554,777 $ 563,156 $ (4,173) $ (4,646) $ 554,337 Less: Current portion of long-term debt, net (1,790) (1,784) Long-term debt, net $ 552,987 $ 552,553

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Schedule of Summary of Operating Lease Expense	Lease expense, cash paid on operating lease liabilities, and lease liabilities obtained from new right-of-use assets for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Fixed lease expense $ 1,001 $ 1,566 $ 3,254 $ 5,652 Variable lease expense 462 191 707 778 Lease expense, before sublease income 1,463 1,757 3,961 6,430 Sublease income (116) (464) (348) (1,119) Total lease expense, net of sublease income $ 1,347 $ 1,293 $ 3,613 $ 5,311 Additional lease information: Cash paid on operating lease liabilities $ 602 $ 1,037 $ 1,047 $ 3,509 Lease liabilities obtained from new right-of-use assets (1) $ — $ 1,352 $ 93 $ 21,766 __________________________ (1) Lease liabilities obtained from new right-of-use assets for the nine months ended September 30, 2020 resulted from the new corporate headquarters lease that commenced in January 2020.
Schedule of Supplemental Balance Sheet Information Related to Leases	Operating lease liabilities on the condensed consolidated balance sheets were as follows (in thousands): September 30, 2021 December 31, 2020 Lease liabilities—current $ 4,429 $ 2,304 Lease liabilities—long-term 34,020 36,404 Total operating lease liabilities $ 38,449 $ 38,708
Schedule of Maturities of Operating Lease Liabilities	The scheduled maturities of our operating lease liabilities on the condensed consolidated balance sheet as of September 30, 2021 were as follows (in thousands): Undiscounted cash flows: Remainder of 2021 $ 804 2022 5,040 2023 5,172 2024 5,080 2025 5,013 Thereafter 30,324 Total undiscounted cash flows 51,433 Imputed interest (12,984) Total operating lease liabilities $ 38,449

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets, net, consisted of the following (in thousands): September 30, 2021 December 31, 2020 Prepaid expenses $ 7,523 $ 9,643 Other current assets 3,596 678 Total prepaid expenses and other current assets, net $ 11,119 $ 10,321
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Salaries and related benefit expenses $ 23,069 $ 19,317 HKFS Contingent Consideration liability (1)(2) 25,400 17,900 Contingent liability from 1st Global Acquisition (2) 16,828 11,328 Accrued vendor and advertising costs 2,254 2,606 Accrued taxes 1,630 240 Other current liabilities 6,194 5,028 Total accrued expenses and other current liabilities $ 75,375 $ 56,419 __________________________ (1) As of September 30, 2021, this amount represents the estimated fair value of the second contingent consideration payment related to the HKFS Acquisition which is payable in the third quarter of 2022. As of December 31, 2020, this amount represents the estimated fair value of the first contingent consideration payment related to the HKFS Acquisition which was subsequently paid in the third quarter of 2021. (2) For more information on the Company’s contingent liabilities, see "Note 8—Commitments and Contingencies."

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Hierarchy of Financial Assets Carried at Fair Value and Measured on Recurring Basis	The fair value hierarchy of our financial assets and liabilities carried at estimated fair value and measured on a recurring basis were as follows (in thousands): Fair value measurements at the reporting date using September 30, 2021 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,293 $ 4,293 $ — $ — Total assets at fair value $ 4,293 $ 4,293 $ — $ — HKFS Contingent Consideration liability $ 25,400 $ — $ — $ 25,400 Total liabilities at fair value $ 25,400 $ — $ — $ 25,400 Fair value measurements at the reporting date using December 31, 2020 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,290 $ 4,290 $ — $ — Total assets at fair value $ 4,290 $ 4,290 $ — $ — HKFS Contingent Consideration liability $ 35,900 $ — $ — $ 35,900 Total liabilities at fair value $ 35,900 $ — $ — $ 35,900
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	A roll forward of the HKFS Contingent Consideration liability follows (in thousands): HKFS Contingent Consideration liability Balance as of December 31, 2020 (1) $ 35,900 HKFS Contingent Consideration first earn-out payment (30,000) Valuation change recognized as expense (2) 19,500 Balance as of September 30, 2021 (1) $ 25,400 _________________________ (1) See “Note 7—Balance Sheet Components” for the current portion of the HKFS Contingent Consideration liability as of September 30, 2021 and December 31, 2020. (2) The change in the fair value of the HKFS Contingent Consideration liability is recognized in “Acquisition and integration” expenses on the condensed consolidated statements of comprehensive income (loss). For the three months ended September 30, 2021, we recognized a valuation change of $1.7 million.

Other Loss, Net (Tables)

Other Loss, Net (Tables)	9 Months Ended
	Sep. 30, 2021
Other Income and Expenses [Abstract]
Summary of Other Loss, Net	“Other loss, net” on the condensed consolidated statements of comprehensive income (loss) consisted of the following (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Interest expense $ 7,304 $ 7,254 $ 21,789 $ 17,410 Amortization of debt issuance costs 388 362 1,128 1,006 Accretion of debt discounts 290 276 851 414 Total interest expense 7,982 7,892 23,768 18,830 Interest income — (2) (2) (27) Gain on sale of a business — (349) — (349) Non-capitalized debt issuance expenses — 3,687 — 3,687 Other 313 735 436 1,245 Other loss, net $ 8,295 $ 11,963 $ 24,202 $ 23,386

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Income tax benefit (expense) $ 774 $ (15,256) $ (2,920) $ (23,237)

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Dilutive Effect for Awards with Exercise Price Less Than Average Stock Price	The calculations of basic and diluted net income (loss) per share were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ (27,803) $ (26,206) $ 31,451 $ (292,055) Denominator: Weighted average common shares outstanding—basic 48,707 48,039 48,492 47,936 Dilutive potential common shares (1) — — 881 — Weighted average common shares outstanding—diluted 48,707 48,039 49,373 47,936 Net income (loss) per share: Basic $ (0.57) $ (0.55) $ 0.65 $ (6.09) Diluted $ (0.57) $ (0.55) $ 0.64 $ (6.09) Anti-dilutive shares (1) 4,616 3,165 2,076 2,869 _________________________ (1) Dilutive potential common shares were excluded from the calculation of diluted net income (loss) per share in the periods presented which have a net loss, as their effect would have been anti-dilutive due to the net loss recognized for such periods.

Description of the Business (De

Description of the Business (Details)	9 Months Ended
	Sep. 30, 2021segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 184,926	$ 150,125
Cash segregated under federal or other regulations	536	637
Total cash, cash equivalents, and restricted cash	$ 185,462	$ 150,762	$ 151,369	$ 86,450

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Impairment of goodwill	$ 270,600	$ 0	$ 270,625

Segment Information and Reven_3

Segment Information and Revenue - Information on Reportable Segments (Details) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021USD ($)	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment							2
Revenue:
Revenues	$ 174,174			$ 175,353			$ 706,869	$ 599,795
Operating income (loss):
Total operating income (loss)	(20,282)			1,013			58,573	(245,432)
Other loss, net	(8,295)			(11,963)			(24,202)	(23,386)
Income tax benefit (expense)	774			(15,256)			(2,920)	(23,237)
Net income (loss)	(27,803)	$ 31,608	$ 27,646	(26,206)	$ 49,645	$ (315,494)	31,451	(292,055)
Corporate-level activity
Operating income (loss):
Total operating income (loss)	(25,982)			(32,719)			(102,255)	(357,905)
Segment Reconciling Items
Operating income (loss):
Other loss, net	(8,295)			(11,963)			(24,202)	(23,386)
Income tax benefit (expense)	774			(15,256)			(2,920)	(23,237)
Wealth Management
Revenue:
Revenues	169,135			135,932			486,021	396,805
Wealth Management | Operating Segments
Operating income (loss):
Total operating income (loss)	19,564			17,498			60,356	51,827
Tax Software
Revenue:
Revenues	5,039			39,421			220,848	202,990
Tax Software | Operating Segments
Operating income (loss):
Total operating income (loss)	$ (13,864)			$ 16,234			$ 100,472	$ 60,646

Segment Information and Reven_4

Segment Information and Revenue - Revenue by Major Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 174,174	$ 175,353	$ 706,869	$ 599,795
Wealth Management
Segment Reporting Information [Line Items]
Revenues	169,135	135,932	486,021	396,805
Tax Software
Segment Reporting Information [Line Items]
Revenues	5,039	39,421	220,848	202,990
Advisory revenue | Wealth Management
Segment Reporting Information [Line Items]
Revenues	103,540	82,612	291,167	227,672
Commission revenue | Wealth Management
Segment Reporting Information [Line Items]
Revenues	52,961	44,921	157,197	135,337
Asset-based revenue | Wealth Management
Segment Reporting Information [Line Items]
Revenues	5,659	4,351	16,514	18,911
Transaction and fee revenue | Wealth Management
Segment Reporting Information [Line Items]
Revenues	6,975	4,048	21,143	14,885
Consumer revenue | Tax Software
Segment Reporting Information [Line Items]
Revenues	4,479	38,482	203,891	186,724
Professional revenue | Tax Software
Segment Reporting Information [Line Items]
Revenues	$ 560	$ 939	$ 16,957	$ 16,266

Segment Information and Reven_5

Segment Information and Revenue - Details of Wealth Management Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 174,174	$ 175,353	$ 706,869	$ 599,795
Wealth Management
Disaggregation of Revenue [Line Items]
Revenues	169,135	135,932	486,021	396,805
Wealth Management | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	23,585	17,951	69,594	59,131
Wealth Management | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	145,550	117,981	416,427	337,674
Wealth Management | Advisory revenue
Disaggregation of Revenue [Line Items]
Revenues	103,540	82,612	291,167	227,672
Wealth Management | Advisory revenue | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Wealth Management | Advisory revenue | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	103,540	82,612	291,167	227,672
Wealth Management | Commission revenue
Disaggregation of Revenue [Line Items]
Revenues	52,961	44,921	157,197	135,337
Wealth Management | Commission revenue | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	22,372	16,884	65,815	55,068
Wealth Management | Commission revenue | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	30,589	28,037	91,382	80,269
Wealth Management | Asset-based revenue
Disaggregation of Revenue [Line Items]
Revenues	5,659	4,351	16,514	18,911
Wealth Management | Asset-based revenue | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Wealth Management | Asset-based revenue | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	5,659	4,351	16,514	18,911
Wealth Management | Transaction and fee revenue
Disaggregation of Revenue [Line Items]
Revenues	6,975	4,048	21,143	14,885
Wealth Management | Transaction and fee revenue | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	1,213	1,067	3,779	4,063
Wealth Management | Transaction and fee revenue | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	$ 5,762	$ 2,981	$ 17,364	$ 10,822

Segment Information and Reven_6

Segment Information and Revenue - Details of Tax Preparation Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 174,174	$ 175,353	$ 706,869	$ 599,795
Tax Software
Disaggregation of Revenue [Line Items]
Revenues	5,039	39,421	220,848	202,990
Tax Software | Consumer revenue
Disaggregation of Revenue [Line Items]
Revenues	4,479	38,482	203,891	186,724
Tax Software | Professional revenue
Disaggregation of Revenue [Line Items]
Revenues	560	939	16,957	16,266
Tax Software | Recognized Upon Transaction
Disaggregation of Revenue [Line Items]
Revenues	4,849	39,121	218,517	200,543
Tax Software | Recognized Upon Transaction | Consumer revenue
Disaggregation of Revenue [Line Items]
Revenues	4,479	38,480	203,891	186,721
Tax Software | Recognized Upon Transaction | Professional revenue
Disaggregation of Revenue [Line Items]
Revenues	370	641	14,626	13,822
Tax Software | Recognized Over Time
Disaggregation of Revenue [Line Items]
Revenues	190	300	2,331	2,447
Tax Software | Recognized Over Time | Consumer revenue
Disaggregation of Revenue [Line Items]
Revenues	0	2	0	3
Tax Software | Recognized Over Time | Professional revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 190	$ 298	$ 2,331	$ 2,444

Asset Acquisitions - Narrative

Asset Acquisitions - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Business Combination and Asset Acquisition [Abstract]
Asset acquisition, consideration transferred	$ 3.8
Asset acquisition, contingent consideration, liability	$ 5.2
Asset acquisition, consideration consideration, payment period	4 years

Debt - Schedule of Company's De

Debt - Schedule of Company's Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Less: Current portion of long-term debt, net	$ (1,790)	$ (1,784)
Long-term debt, net	552,987	552,553
Senior Secured Credit Facility
Debt Instrument [Line Items]
Principal amount	561,797	563,156
Discount	(3,322)	(4,173)
Debt issuance costs	(3,698)	(4,646)
Net  carrying value	$ 554,777	$ 554,337

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	Apr. 26, 2021	Sep. 30, 2021	Apr. 25, 2021	Dec. 31, 2020
Revolving Credit Facility
Debt Instrument [Line Items]
Debt outstanding		$ 0		$ 0
Term Loan
Debt Instrument [Line Items]
Debt outstanding		561,800,000
Senior Secured Credit Facility
Debt Instrument [Line Items]
Credit facility		765,000,000
Principal amount		561,797,000		$ 563,156,000
Amount available for future borrowings		90,000,000
Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility	$ 90,000,000	$ 90,000,000	$ 65,000,000
Additional revolving credit commitments	25,000,000
Payments of debt issuance costs	$ 500,000
Percentage of aggregate commitments draw		30.00%
Senior Secured Credit Facility | Revolving Credit Facility | April 1, 2021 Through December 31, 2021
Debt Instrument [Line Items]
Line of credit facility, leverage ratio		4.75
Senior Secured Credit Facility | Revolving Credit Facility | January 1, 2022 Through September 30, 2022
Debt Instrument [Line Items]
Line of credit facility, leverage ratio		4.25
Senior Secured Credit Facility | Revolving Credit Facility | October 1, 2022 Through December 31, 2022
Debt Instrument [Line Items]
Line of credit facility, leverage ratio		4
Senior Secured Credit Facility | Revolving Credit Facility | January 1, 2023 Through February 21, 2024
Debt Instrument [Line Items]
Line of credit facility, leverage ratio		3.50
Senior Secured Credit Facility | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Line of credit facility, commitment fee percentage		0.35%
Senior Secured Credit Facility | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Line of credit facility, commitment fee percentage		0.40%
Senior Secured Credit Facility | Revolving Credit Facility | Eurodollar | Minimum
Debt Instrument [Line Items]
Variable interest rate		2.00%
Senior Secured Credit Facility | Revolving Credit Facility | Eurodollar | Maximum
Debt Instrument [Line Items]
Variable interest rate		2.50%
Senior Secured Credit Facility | Revolving Credit Facility | ABR | Minimum
Debt Instrument [Line Items]
Variable interest rate		1.00%
Senior Secured Credit Facility | Revolving Credit Facility | ABR | Maximum
Debt Instrument [Line Items]
Variable interest rate		1.50%
Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Principal amount		$ 675,000,000
Debt instrument, periodic payment, principal		$ 500,000
Variable interest rate		5.00%
Senior Secured Credit Facility | Term Loan | Eurodollar
Debt Instrument [Line Items]
Variable interest rate		4.00%
Senior Secured Credit Facility | Term Loan | ABR
Debt Instrument [Line Items]
Variable interest rate		3.00%

Leases - Operating Lease Expens

Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease, Cost [Abstract]
Fixed lease expense	$ 1,001	$ 1,566	$ 3,254	$ 5,652
Variable lease expense	462	191	707	778
Lease expense, before sublease income	1,463	1,757	3,961	6,430
Sublease income	(116)	(464)	(348)	(1,119)
Total lease expense, net of sublease income	1,347	1,293	3,613	5,311
Additional lease information:
Cash paid on operating lease liabilities	602	1,037	1,047	3,509
Lease liabilities obtained from new right-of-use assets	$ 0	$ 1,352	$ 93	$ 21,766
Weighted-average remaining operating lease term	10 years 7 months 6 days		10 years 7 months 6 days
Weighted-average operating lease discount rate	5.40%		5.40%

Leases - Supplement Balance She

Leases - Supplement Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Lease liabilities—current	$ 4,429	$ 2,304
Lease liabilities—long-term	34,020	36,404
Total operating lease liabilities	$ 38,449	$ 38,708

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2021USD ($)
Leases [Abstract]
Remainder of 2021	$ 804
2022	5,040
2023	5,172
2024	5,080
2025	5,013
Thereafter	30,324
Total undiscounted cash flows	51,433
Imputed interest	(12,984)
Total operating lease liabilities	$ 38,449

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 7,523	$ 9,643
Other current assets	3,596	678
Total prepaid expenses and other current assets, net	$ 11,119	$ 10,321

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Salaries and related benefit expenses	$ 23,069	$ 19,317
Accrued vendor and advertising costs	2,254	2,606
Accrued taxes	1,630	240
Other current liabilities	6,194	5,028
Total accrued expenses and other current liabilities	75,375	56,419
Honkamp Krueger Financial Services, Inc.
Business Acquisition [Line Items]
Contingent liability	25,400	17,900
1st Global
Business Acquisition [Line Items]
Contingent liability	$ 16,828	$ 11,328

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Jul. 01, 2020USD ($)	Sep. 30, 2021USD ($)earn_out_payment	Sep. 30, 2021USD ($)earn_out_payment	Sep. 30, 2020USD ($)	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Business Acquisition [Line Items]
Change in the fair value of acquisition-related contingent consideration			$ 19,500	$ (1,000)
Payment of contingent consideration			13,150	$ 0
1st Global
Business Acquisition [Line Items]
Contingent consideration					$ 16,800	$ 11,300
Change in the fair value of acquisition-related contingent consideration			5,500
Honkamp Krueger Financial Services, Inc.
Business Acquisition [Line Items]
Contingent consideration		$ 25,400	$ 25,400
Purchase price	$ 104,400
Number of post closing earn out payments | earn_out_payment		2	2
Undiscounted contingent consideration	$ 30,000
Payment of contingent consideration		$ 30,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Hierarchy of Financial Assets Carried at Fair Value and Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	$ 25,400
Fair Value Measurements, Recurring
ASSETS
Total assets at fair value	4,293	$ 4,290
Liabilities
Total liabilities at fair value	25,400	35,900
Fair Value Measurements, Recurring | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	25,400	35,900
Fair Value Measurements, Recurring | Money market and other funds
ASSETS
Cash equivalents: money market and other funds	4,293	4,290
Fair Value Measurements, Recurring | Quoted prices in active markets using identical  assets (Level 1)
ASSETS
Total assets at fair value	4,293	4,290
Liabilities
Total liabilities at fair value	0	0
Fair Value Measurements, Recurring | Quoted prices in active markets using identical  assets (Level 1) | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	0	0
Fair Value Measurements, Recurring | Quoted prices in active markets using identical  assets (Level 1) | Money market and other funds
ASSETS
Cash equivalents: money market and other funds	4,293	4,290
Fair Value Measurements, Recurring | Significant other observable inputs (Level 2)
ASSETS
Total assets at fair value	0	0
Liabilities
Total liabilities at fair value	0	0
Fair Value Measurements, Recurring | Significant other observable inputs (Level 2) | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	0	0
Fair Value Measurements, Recurring | Significant other observable inputs (Level 2) | Money market and other funds
ASSETS
Cash equivalents: money market and other funds	0	0
Fair Value Measurements, Recurring | Significant unobservable inputs (Level 3)
ASSETS
Total assets at fair value	0
Liabilities
Total liabilities at fair value	25,400	35,900
Fair Value Measurements, Recurring | Significant unobservable inputs (Level 3) | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	25,400	35,900
Fair Value Measurements, Recurring | Significant unobservable inputs (Level 3) | Money market and other funds
ASSETS
Cash equivalents: money market and other funds	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	Sep. 30, 2021USD ($)earn_out_payment	Dec. 31, 2020USD ($)
Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt outstanding	$ 561,800,000
Revolving Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt outstanding	0	$ 0
Carrying Value | Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	561,800,000	563,200,000
Fair Value | Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	$ 562,500,000	$ 561,700,000
Measurement Input, Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business combination, contingent consideration, liability, measurement input	0.120
Measurement Input, Price Volatility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business combination, contingent consideration, liability, measurement input	0.248
Measurement Input, Credit Spread
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business combination, contingent consideration, liability, measurement input	0.022
Honkamp Krueger Financial Services, Inc.
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of post closing earn out payments | earn_out_payment	2
HKFS Contingent Consideration liability	$ 25,400,000

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Fair Value Measured on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ 35,900
HKFS Contingent Consideration first earn-out payment		(30,000)
Valuation change recognized as expense	$ 1,700	19,500
Ending balance	$ 25,400	$ 25,400

Other Loss, Net - Schedule of O

Other Loss, Net - Schedule of Other Loss, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Interest expense	$ 7,304	$ 7,254	$ 21,789	$ 17,410
Amortization of debt issuance costs	388	362	1,128	1,006
Accretion of debt discounts	290	276	851	414
Total interest expense	7,982	7,892	23,768	18,830
Interest income	0	(2)	(2)	(27)
Gain on sale of a business	0	(349)	0	(349)
Non-capitalized debt issuance expenses	0	3,687	0	3,687
Other	313	735	436	1,245
Other loss, net	$ 8,295	$ 11,963	$ 24,202	$ 23,386

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ 774	$ (15,256)	$ (2,920)	$ (23,237)

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ 774	$ (15,256)	$ (2,920)	$ (23,237)

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Summary of Dilutive Effect for Awards with Exercise Price Less than Average Stock Price (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income (loss)	$ (27,803)	$ 31,608	$ 27,646	$ (26,206)	$ 49,645	$ (315,494)	$ 31,451	$ (292,055)
Denominator:
Weighted average common shares outstanding—basic (in shares)	48,707			48,039			48,492	47,936
Dilutive potential common shares (in shares)	0			0			881	0
Weighted average common shares outstanding—diluted (in shares)	48,707			48,039			49,373	47,936
Net income (loss) per share:
Basic (in USD per share)	$ (0.57)			$ (0.55)			$ 0.65	$ (6.09)
Diluted (in USD per share)	$ (0.57)			$ (0.55)			$ 0.64	$ (6.09)
Anti-dilutive shares (in shares)	4,616			3,165			2,076	2,869