Avantax (AVTA) 10-Q 8 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,746,176
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001068875

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 171,297	$ 134,824
Accounts receivable, net	20,351	21,906
Commissions and advisory fees receivable	21,214	25,073
Prepaid expenses and other current assets	17,697	18,476
Total current assets	230,559	200,279
Long-term assets:
Property, equipment, and software, net	75,741	73,638
Right-of-use assets, net	19,879	20,466
Goodwill, net	454,821	454,821
Acquired intangible assets, net	291,540	302,289
Other long-term assets	26,547	20,450
Total long-term assets	868,528	871,664
Total assets	1,099,087	1,071,943
Current liabilities:
Accounts payable	6,962	8,216
Commissions and advisory fees payable	13,814	17,940
Accrued expenses and other current liabilities	54,707	65,678
Current deferred revenue	6,328	13,180
Current lease liabilities	5,025	4,896
Current portion of long-term debt	1,812	1,812
Total current liabilities	88,648	111,722
Long-term liabilities:
Long-term debt, net	553,476	553,134
Long-term lease liabilities	31,795	33,267
Deferred tax liabilities, net	19,125	20,124
Long-term deferred revenue	4,859	5,322
Other long-term liabilities	11,731	6,752
Total long-term liabilities	620,986	618,599
Total liabilities	709,634	730,321
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, par value $0.0001 per share—900,000 shares authorized; 50,921 shares issued and 47,740 shares outstanding as of June 30, 2022; 50,137 shares issued and 48,831 shares outstanding at December 31, 2021	5	5
Additional paid-in capital	1,628,591	1,619,805
Accumulated deficit	(1,175,744)	(1,249,789)
Treasury stock, at cost—3,181 shares as of June 30, 2022 and 1,306 shares as of December 31, 2021	(63,399)	(28,399)
Total stockholders’ equity	389,453	341,622
Total liabilities and stockholders’ equity	$ 1,099,087	$ 1,071,943

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
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)	50,921,000	50,137,000
Common stock, shares outstanding (in shares)	47,740,000	48,831,000
Treasury stock (in shares)	3,181,000	1,306,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Total revenue	$ 256,883	$ 254,312	$ 564,436	$ 532,695
Cost of revenue:
Total cost of revenue	120,517	118,339	249,817	232,540
Engineering and technology	8,620	7,231	17,124	14,359
Sales and marketing	47,508	34,848	131,911	112,410
General and administrative	26,646	23,832	55,721	48,517
Acquisition and integration	(6,792)	18,169	(5,126)	26,272
Depreciation	3,137	3,204	6,068	5,504
Amortization of acquired intangible assets	6,462	7,063	13,093	14,238
Total operating expenses	206,098	212,686	468,608	453,840
Operating income	50,785	41,626	95,828	78,855
Interest expense and other, net	(8,117)	(8,024)	(15,958)	(15,907)
Income before income taxes	42,668	33,602	79,870	62,948
Income tax expense	(3,243)	(1,994)	(5,825)	(3,694)
Net income	$ 39,425	$ 31,608	$ 74,045	$ 59,254
Net income per share:
Basic (in USD per share)	$ 0.83	$ 0.65	$ 1.54	$ 1.22
Diluted (in USD per share)	$ 0.81	$ 0.64	$ 1.50	$ 1.20
Weighted average shares outstanding:
Basic (in shares)	47,582	48,508	48,048	48,384
Diluted (in shares)	48,690	49,385	49,220	49,241
Wealth Management
Revenue:
Total revenue	$ 162,669	$ 162,395	$ 329,072	$ 316,886
Cost of revenue:
Total cost of revenue	113,644	113,910	233,518	222,533
Tax Software
Revenue:
Total revenue	94,214	91,917	235,364	215,809
Cost of revenue:
Total cost of revenue	$ 6,873	$ 4,429	$ 16,299	$ 10,007

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated deficit	Treasury stock
Beginning balance (in shares) at Dec. 31, 2020		49,483
Beginning balance (in shares) at Dec. 31, 2020					1,306
Beginning balance at Dec. 31, 2020	$ 312,290	$ 5	$ 1,598,230	$ (1,257,546)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued pursuant to stock incentive and employee stock purchase plans (in shares)		132
Common stock issued pursuant to stock incentive and employee stock purchase plans	63		63
Stock-based compensation	5,520		5,520
Tax payments from shares withheld for equity awards	(865)		(865)
Net income	27,646			27,646
Ending balance (in shares) at Mar. 31, 2021		49,615
Ending balance (in shares) at Mar. 31, 2021					1,306
Ending balance at Mar. 31, 2021	344,654	$ 5	1,602,948	(1,229,900)	$ (28,399)
Beginning balance (in shares) at Dec. 31, 2020		49,483
Beginning balance (in shares) at Dec. 31, 2020					1,306
Beginning balance at Dec. 31, 2020	312,290	$ 5	1,598,230	(1,257,546)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	59,254
Ending balance (in shares) at Jun. 30, 2021		49,962
Ending balance (in shares) at Jun. 30, 2021					1,306
Ending balance at Jun. 30, 2021	382,507	$ 5	1,609,193	(1,198,292)	$ (28,399)
Beginning balance (in shares) at Mar. 31, 2021		49,615
Beginning balance (in shares) at Mar. 31, 2021					1,306
Beginning balance at Mar. 31, 2021	344,654	$ 5	1,602,948	(1,229,900)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued pursuant to stock incentive and employee stock purchase plans (in shares)		347
Common stock issued pursuant to stock incentive and employee stock purchase plans	1,989		1,989
Stock-based compensation	4,720		4,720
Tax payments from shares withheld for equity awards	(464)		(464)
Net income	31,608			31,608
Ending balance (in shares) at Jun. 30, 2021		49,962
Ending balance (in shares) at Jun. 30, 2021					1,306
Ending balance at Jun. 30, 2021	$ 382,507	$ 5	1,609,193	(1,198,292)	$ (28,399)
Beginning balance (in shares) at Dec. 31, 2021	48,831	50,137
Beginning balance (in shares) at Dec. 31, 2021	1,306				1,306
Beginning balance at Dec. 31, 2021	$ 341,622	$ 5	1,619,805	(1,249,789)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued pursuant to stock incentive and employee stock purchase plans (in shares)		247
Common stock issued pursuant to stock incentive and employee stock purchase plans	96		96
Stock repurchases (in shares)					1,645
Stock repurchases	(30,537)				$ (30,537)
Stock-based compensation	4,641		4,641
Tax payments from shares withheld for equity awards	(1,569)		(1,569)
Net income	34,620			34,620
Ending balance (in shares) at Mar. 31, 2022		50,384
Ending balance (in shares) at Mar. 31, 2022					2,951
Ending balance at Mar. 31, 2022	$ 348,873	$ 5	1,622,973	(1,215,169)	$ (58,936)
Beginning balance (in shares) at Dec. 31, 2021	48,831	50,137
Beginning balance (in shares) at Dec. 31, 2021	1,306				1,306
Beginning balance at Dec. 31, 2021	$ 341,622	$ 5	1,619,805	(1,249,789)	$ (28,399)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 74,045
Ending balance (in shares) at Jun. 30, 2022	47,740	50,921
Ending balance (in shares) at Jun. 30, 2022	3,181				3,181
Ending balance at Jun. 30, 2022	$ 389,453	$ 5	1,628,591	(1,175,744)	$ (63,399)
Beginning balance (in shares) at Mar. 31, 2022		50,384
Beginning balance (in shares) at Mar. 31, 2022					2,951
Beginning balance at Mar. 31, 2022	348,873	$ 5	1,622,973	(1,215,169)	$ (58,936)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued pursuant to stock incentive and employee stock purchase plans (in shares)		537
Common stock issued pursuant to stock incentive and employee stock purchase plans	2,402		2,402
Stock repurchases (in shares)					230
Stock repurchases	(4,463)				$ (4,463)
Stock-based compensation	3,683		3,683
Tax payments from shares withheld for equity awards	(467)		(467)
Net income	$ 39,425			39,425
Ending balance (in shares) at Jun. 30, 2022	47,740	50,921
Ending balance (in shares) at Jun. 30, 2022	3,181				3,181
Ending balance at Jun. 30, 2022	$ 389,453	$ 5	$ 1,628,591	$ (1,175,744)	$ (63,399)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 74,045	$ 59,254
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of acquired intangible assets	22,769	21,583
Stock-based compensation	11,423	10,770
Change in the fair value of acquisition-related contingent consideration	(5,320)	17,800
Reduction of right-of-use lease assets	715	1,420
Deferred income taxes	(999)	(963)
Amortization of debt discount and issuance costs	1,379	1,301
Accretion of lease liabilities	1,020	1,046
Other non-cash items	2,574	481
Changes in operating assets and liabilities, net of acquisitions and disposals:
Accounts receivable, net	1,666	(5,948)
Commissions and advisory fees receivable	3,859	(530)
Prepaid expenses and other current assets	1,776	(4,057)
Other long-term assets	(8,804)	(9,239)
Accounts payable	(1,254)	874
Commissions and advisory fees payable	(4,316)	149
Lease liabilities	(2,491)	(431)
Deferred revenue	(7,315)	(7,677)
Accrued expenses and other current and long-term liabilities	(5,064)	11,438
Net cash provided by operating activities	85,663	97,271
Investing activities:
Purchases of property, equipment, and software	(11,790)	(13,544)
Asset acquisitions	(1,858)	(881)
Net cash used by investing activities	(13,648)	(14,425)
Financing activities:
Proceeds from credit facilities, net of debt discount and issuance costs	0	(502)
Payments on credit facilities	(906)	(906)
Acquisition-related contingent consideration payments	(98)	0
Stock repurchases	(35,000)	0
Proceeds from stock option exercises	174	284
Proceeds from issuance of stock through employee stock purchase plan	2,324	1,845
Tax payments from shares withheld for equity awards	(2,036)	(1,329)
Net cash used by financing activities	(35,542)	(608)
Net increase in cash, cash equivalents, and restricted cash	36,473	82,238
Cash, cash equivalents, and restricted cash, beginning of period	134,824	150,762
Cash, cash equivalents, and restricted cash, end of period	171,297	233,000
Supplemental cash flow information:
Cash paid for income taxes	1,958	596
Cash paid for interest	$ 14,301	$ 14,324

Description of the Business

Description of the Business	6 Months Ended
	Jun. 30, 2022
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 a 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 planning, investing, and wealth management services to their clients. Avantax Planning Partners is an in-house/employee-based RIA, insurance agency, 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” ). We acquired HKFS in July 2020 (the “HKFS Acquisition” ) and subsequently rebranded it in order to create tighter brand alignment through one common and recognizable brand. Any reference to Avantax Planning Partners in this Form 10-Q is inclusive of HKFS. Tax Software Our 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 and ancillary services for consumers, small business owners, and tax professionals through its website www.TaxAct.com and its mobile applications. Our 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 of the fiscal year, the Tax Software segment typically reports losses because revenue from the segment is minimal while core operating expenses continue. Segments

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Interim Financial Information The accompanying unaudited 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 condensed 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, 2021. Interim results are not necessarily indicative of results for a full year.

Segment Information and Revenue

Segment Information and Revenue	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Segment Information and Revenue	Note 3: Segment Information and Revenue We have two reportable 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, acquisition and integration costs, depreciation, amortization of acquired intangible assets, or contested proxy and other legal and consulting costs to the reportable segments. Such amounts are reflected under the heading “Corporate-level activity.” In addition, we do not allocate interest expense and other, 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 segments currently presented to our chief operating decision maker and a reconciliation to consolidated net income are presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue: Wealth Management $ 162,669 $ 162,395 $ 329,072 $ 316,886 Tax Software 94,214 91,917 235,364 215,809 Total revenue 256,883 254,312 564,436 532,695 Operating income (loss): Wealth Management 15,873 21,396 32,294 40,792 Tax Software 53,859 63,448 111,889 114,336 Corporate-level activity (18,947) (43,218) (48,355) (76,273) Total operating income 50,785 41,626 95,828 78,855 Interest expense and other, net (8,117) (8,024) (15,958) (15,907) Income before income taxes 42,668 33,602 79,870 62,948 Income tax expense (3,243) (1,994) (5,825) (3,694) Net income $ 39,425 $ 31,608 $ 74,045 $ 59,254 Wealth Management Revenue Recognition Wealth management revenue primarily consists of advisory revenue, commission revenue, asset-based revenue, and transaction and fee revenue. Revenues by major category within the Wealth Management segment and the timing of Wealth Management revenue recognition was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Recognized upon transaction: Commission $ 17,881 $ 21,076 $ 38,505 $ 43,443 Transaction and fee 1,262 1,192 2,506 2,566 Total revenue recognized upon transaction $ 19,143 $ 22,268 $ 41,011 $ 46,009 Recognized over time: Advisory $ 104,155 $ 96,508 $ 211,324 $ 187,627 Commission 24,954 30,626 51,985 60,793 Asset-based 6,964 5,526 12,627 10,855 Transaction and fee 7,453 7,467 12,125 11,602 Total revenue recognized over time $ 143,526 $ 140,127 $ 288,061 $ 270,877 Total Wealth Management revenue: Advisory $ 104,155 $ 96,508 $ 211,324 $ 187,627 Commission 42,835 51,702 90,490 104,236 Asset-based 6,964 5,526 12,627 10,855 Transaction and fee 8,715 8,659 14,631 14,168 Total Wealth Management revenue $ 162,669 $ 162,395 $ 329,072 $ 316,886 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. Revenues by major category within the Tax Software segment and the timing of Tax Software revenue recognition was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Recognized upon transaction: Consumer $ 90,963 $ 88,846 $ 216,224 $ 199,413 Professional 2,164 2,128 15,948 14,255 Total revenue recognized upon transaction $ 93,127 $ 90,974 $ 232,172 $ 213,668 Recognized over time: Consumer $ 64 $ — $ 64 $ — Professional 1,023 943 3,128 2,141 Total revenue recognized over time $ 1,087 $ 943 $ 3,192 $ 2,141 Total Tax Software revenue: Consumer $ 91,027 $ 88,846 $ 216,288 $ 199,413 Professional 3,187 3,071 19,076 16,396 Total Tax Software revenue $ 94,214 $ 91,917 $ 235,364 $ 215,809

Asset Acquisitions

Asset Acquisitions	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Asset Acquisitions	Note 4: Asset Acquisitions During the six months ended June 30, 2022, we completed acquisitions in our Wealth Management business that met the criteria to be accounted for as asset acquisitions. Total initial purchase consideration, including acquisition costs and fixed deferred payments, was $2.2 million. This purchase consideration was allocated to the

Debt

Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Note 5: Debt Our debt consisted of the following as of the periods indicated in the table below (in thousands): June 30, December 31, Senior Secured Credit Facility Principal outstanding $ 560,438 $ 561,344 Unamortized debt issuance costs (2,714) (3,371) Unamortized debt discount (2,436) (3,027) Net carrying value $ 555,288 $ 554,946 In May 2017, we entered into a credit agreement (as the same has been amended, the “Credit Agreement” ) with a syndicate of lenders that 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 (as amended, the “Senior Secured Credit Facility” ). The Term Loan has a maturity date of May 22, 2024 (the “Term Loan Maturity Date” ). 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 New Revolver has a maturity date of February 21, 2024 (the “New Revolver Maturity Date” ). 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 sheets as part of the total deferred financing costs associated with the New Revolver. As of June 30, 2022, 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. As of June 30, 2022, we had $560.4 million in principal amount outstanding under the Term Loan and no amounts outstanding under the New Revolver. Based on aggregate loan commitments as of June 30, 2022, 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 Term Loan Maturity Date. On August 5, 2022, and as provided for within our Senior Secured Credit Facility, we voluntarily prepaid $35.0 million of principal outstanding under our Term Loan. We also settled the accrued and unpaid interest on the applicable principal outstanding up to, but not including, the date of prepayment. The interest rate on the Term Loan is variable at the London Interbank Offered Rate (subject to a floor of 1.0%), 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 June 30, 2022, 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, typically quarterly. 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 acquisition of Avantax Planning Partners 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 June 30, 2022.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	Note 6: Leases Our leases are primarily related to office space and are classified as operating leases. Operating lease cost, net of sublease income, is recognized in “General and administrative” expense for those net costs related to leases used in our operations and within “Acquisition and integration” expense for those net costs related to an unoccupied lease assumed in a previous acquisition on the condensed consolidated statements of operations. Operating lease cost, net of sublease income, and cash paid on operating lease liabilities for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed lease cost $ 947 $ 1,099 $ 1,920 $ 2,253 Variable lease cost 363 102 765 245 Operating lease cost, before sublease income 1,310 1,201 2,685 2,498 Sublease income (234) (116) (468) (232) Total operating lease cost, net of sublease income $ 1,076 $ 1,085 $ 2,217 $ 2,266 Additional lease information: Cash paid on operating lease liabilities $ 1,262 $ 228 $ 2,491 $ 445 Lease liabilities obtained from new right-of-use assets $ 128 $ 93 $ 128 $ 93 Right-of-use assets and operating lease liabilities were recorded on the condensed consolidated balance sheets as follows (in thousands): June 30, 2022 December 31, 2021 Right-of-use assets, net $ 19,879 $ 20,466 Current lease liabilities $ 5,025 $ 4,896 Long-term lease liabilities 31,795 33,267 Total operating lease liabilities $ 36,820 $ 38,163 Weighted-average remaining lease term (in years) 9.9 10.3 Weighted-average discount rate 5.4 % 5.4 % The maturities of our operating lease liabilities as of June 30, 2022 were as follows (in thousands): Undiscounted cash flows: Remainder of 2022 $ 2,583 2023 5,226 2024 5,121 2025 5,023 2026 4,193 Thereafter 26,130 Total undiscounted cash flows 48,276 Imputed interest (11,456) Present value of cash flows $ 36,820
Leases	Note 6: Leases Our leases are primarily related to office space and are classified as operating leases. Operating lease cost, net of sublease income, is recognized in “General and administrative” expense for those net costs related to leases used in our operations and within “Acquisition and integration” expense for those net costs related to an unoccupied lease assumed in a previous acquisition on the condensed consolidated statements of operations. Operating lease cost, net of sublease income, and cash paid on operating lease liabilities for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed lease cost $ 947 $ 1,099 $ 1,920 $ 2,253 Variable lease cost 363 102 765 245 Operating lease cost, before sublease income 1,310 1,201 2,685 2,498 Sublease income (234) (116) (468) (232) Total operating lease cost, net of sublease income $ 1,076 $ 1,085 $ 2,217 $ 2,266 Additional lease information: Cash paid on operating lease liabilities $ 1,262 $ 228 $ 2,491 $ 445 Lease liabilities obtained from new right-of-use assets $ 128 $ 93 $ 128 $ 93 Right-of-use assets and operating lease liabilities were recorded on the condensed consolidated balance sheets as follows (in thousands): June 30, 2022 December 31, 2021 Right-of-use assets, net $ 19,879 $ 20,466 Current lease liabilities $ 5,025 $ 4,896 Long-term lease liabilities 31,795 33,267 Total operating lease liabilities $ 36,820 $ 38,163 Weighted-average remaining lease term (in years) 9.9 10.3 Weighted-average discount rate 5.4 % 5.4 % The maturities of our operating lease liabilities as of June 30, 2022 were as follows (in thousands): Undiscounted cash flows: Remainder of 2022 $ 2,583 2023 5,226 2024 5,121 2025 5,023 2026 4,193 Thereafter 26,130 Total undiscounted cash flows 48,276 Imputed interest (11,456) Present value of cash flows $ 36,820

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Note 7: Balance Sheet Components Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2022 December 31, 2021 Prepaid expenses $ 12,260 $ 13,138 Other current assets 5,437 5,338 Total prepaid expenses and other current assets $ 17,697 $ 18,476 Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Salaries and related benefit expenses $ 17,151 $ 26,417 HKFS Contingent Consideration liability (1) 22,980 28,300 Accrued legal costs 1,512 2,871 Accrued vendor and advertising costs 3,337 3,777 Accrued taxes 5,495 — Other 4,232 4,313 Total accrued expenses and other current liabilities $ 54,707 $ 65,678 __________________________ (1) For more information on the Company’s contingent liabilities, see "Note 8—Commitments and Contingencies."

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8: Commitments and Contingencies HKFS Contingent Consideration Liability On July 1, 2020, we closed the acquisition of Avantax Planning Partners, formerly “HKFS”, for an upfront cash purchase price of $104.4 million. The purchase price was subject to variable contingent consideration, or earn-out payments (the “HKFS Contingent Consideration” ) totaling a maximum of $60.0 million. The HKFS Contingent Consideration to be paid is determined based on advisory asset levels and the achievement of certain performance goals (i) for the period beginning July 1, 2020 and ending June 30, 2021 and (ii) for the period beginning July 1, 2021 and ending June 30, 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 market values on the applicable measurement date fall below certain specified thresholds, no payment of consideration is owed to the Sellers for such period. Based on advisory asset levels and the achievement of performance goals for the first earn-out period, we paid the full $30.0 million to the Sellers in the third quarter of 2021. Based on ending advisory asset levels and the achievement of performance goals specified in the HKFS Purchase Agreement, the fair value of the HKFS Contingent Consideration for the second earn-out period was $23.0 million as of June 30, 2022 and is expected to be paid in the third quarter of 2022. For additional information on the valuation of the HKFS Contingent Consideration liability, 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 that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Although we believe that resolving such claims, individually or in aggregate, will not have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties. We are not currently a party to any such matters for which we have recognized a material liability on our condensed consolidated balance sheet as of June 30, 2022. We have entered into indemnification agreements in the ordinary course of business with our officers and directors. Pursuant to these agreements, we may be obligated to advance payment of legal fees and costs incurred by the defendants pursuant to our obligations under these indemnification agreements and applicable Delaware law.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 9: Fair Value Measurements 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 June 30, 2022 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,302 $ 4,302 $ — $ — Deferred compensation assets 2,554 2,554 — — Total assets at fair value $ 6,856 $ 6,856 $ — $ — HKFS Contingent Consideration liability $ 22,980 $ — $ — $ 22,980 Deferred compensation liabilities 2,554 2,554 — — Total liabilities at fair value $ 25,534 $ 2,554 $ — $ 22,980 Fair value measurements at the reporting date using December 31, 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 $ 28,300 $ — $ — $ 28,300 Total liabilities at fair value $ 28,300 $ — $ — $ 28,300 Cash equivalents are classified within Level 1 of the fair value hierarchy because we value them utilizing quoted prices in active markets. We offer non-qualified deferred compensation plans to our executive officers, board of directors, and certain independent financial professionals. Participants in these plans direct the investment of their accounts among the available investment options, which are generally the same as those available under our 401(k) plan. We have elected to fund these obligations through a rabbi trust which mirrors the investment elections made by participants. The assets in the rabbi trust are held for the purpose of satisfying our obligations to participants, however, remain subject to the claims of our creditors in the event we become insolvent. Our obligations and corresponding investments held under these non-qualified deferred compensation plans primarily consist of money market and mutual funds and are classified within Level 1 of the fair value hierarchy because we value them utilizing quoted prices in active markets. These investments, and the corresponding deferred compensation liabilities, are included within “Other long-term assets” and “Other long-term liabilities”, respectively, on the condensed consolidated balance sheets. The HKFS Contingent Consideration liability relates to post-closing earn-out payments resulting from the acquisition of Avantax Planning Partners, formerly “HKFS” (see “Note 8—Commitments and Contingencies”). The fair value of the HKFS Contingent Consideration liability as of June 30, 2022 was calculated in accordance with the amended HKFS Purchase Agreement and was based on advisory asset levels as of June 30, 2022 (the measurement date for the second earn-out payment). Prior to this measurement date, the estimated fair value of the HKFS Contingent Consideration liability was determined using a Monte Carlo simulation model and certain Level 3 inputs previously disclosed within our Annual Report on Form 10-K. The HKFS Contingent Consideration liability is included in “Accrued expenses and other current liabilities” on the condensed consolidated balance sheets and is expected to be paid in the third quarter of 2022. A roll forward of the HKFS Contingent Consideration liability is as follows (in thousands): HKFS Contingent Consideration liability Balance as of December 31, 2020 $ 35,900 HKFS Contingent Consideration first earn-out payment (30,000) Change in fair value 22,400 Balance as of December 31, 2021 28,300 Change in fair value (5,320) Balance as of June 30, 2022 $ 22,980 Changes in the fair value of this contingent consideration are reflected in “Acquisition and integration” on the condensed consolidated statements of operations. Fair Value of Financial Instruments We consider the carrying values of accounts receivable, commissions receivable, other receivables, prepaid expenses, other current assets, financial professional loans, accounts payable, commissions and advisory fees payable, accrued expenses, and other current liabilities to approximate fair values primarily due to their short-term natures. As of June 30, 2022, the Term Loan’s principal amount was $560.4 million, and the fair value of the Term Loan’s principal amount was $540.8 million. As of December 31, 2021, the Term Loan’s principal amount was $561.3 million, and the fair value of the Term Loan’s principal amount was $559.9 million. The fair value of the Term Loan’s principal amount was based on Level 2 inputs from a third-party market quotation.

Interest Expense and Other, Net

Interest Expense and Other, Net	6 Months Ended
	Jun. 30, 2022
Other Income and Expenses [Abstract]
Interest Expense and Other, Net	Note 10: Interest Expense and Other, Net “Interest expense and other, net” on the condensed consolidated statements of operations consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest expense $ 7,265 $ 7,302 $ 14,395 $ 14,485 Amortization of debt issuance costs 399 377 788 740 Amortization of debt discount 299 284 591 561 Total interest expense 7,963 7,963 15,774 15,786 Interest income and other 154 61 184 121 Interest expense and other, net $ 8,117 $ 8,024 $ 15,958 $ 15,907

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 11: Income Taxes For 2022, our provision for income taxes in interim periods is based on our estimated annual effective tax rate. We record cumulative adjustments in the quarter in which a change in the estimated annual effective rate is determined. The estimated annual effective tax rate does not include the effects of discrete events that may occur during the year. The effect of these events, if any, is recorded in the quarter in which the event occurs. We recorded income tax expense of $3.2 million and $5.8 million for the three and six months ended June 30, 2022, respectively. We recorded income tax expense of $2.0 million and $3.7 million for the three and six months ended June 30, 2021, respectively. Our effective income tax rate for the three and six months ended June 30, 2022 and June 30, 2021 differed from the 21% statutory rate primarily due to the release of valuation allowances and the effect of state income taxes. We maintain a valuation allowance for federal net operating loss carryforwards that we have concluded it is more likely than not that the related deferred tax benefits will not be realized. This valuation allowance does not prevent us from utilizing unexpired net operating losses to offset taxable income in future periods. The majority of these net operating losses will either be utilized or expire between 2022 and 2024.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 12: Net Income (Loss) Per Share “Basic net income per share” is calculated using the weighted average number of common shares outstanding during the applicable period. “Diluted net income per share” is calculated using the weighted average number of common shares outstanding plus the number of dilutive potential common shares outstanding during the applicable period. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options and the vesting of outstanding restricted stock units using the treasury stock method. Cash-settled restricted stock units are not settled in common shares and are therefore excluded from dilutive potential common shares. Dilutive potential common shares are excluded from the calculation of diluted net income per share if their effect is antidilutive. Certain of our performance-based restricted stock units are considered contingently issuable shares and are excluded from the diluted weighted average common shares outstanding computation because the related performance-based criteria were not achieved as of the end of the reporting period. The calculations of basic and diluted net income per share were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 39,425 $ 31,608 $ 74,045 $ 59,254 Denominator: Basic weighted average common shares outstanding 47,582 48,508 48,048 48,384 Dilutive potential common shares (1) 1,108 877 1,172 857 Diluted weighted average common shares outstanding 48,690 49,385 49,220 49,241 Net income per share: Basic $ 0.83 $ 0.65 $ 1.54 $ 1.22 Diluted $ 0.81 $ 0.64 $ 1.50 $ 1.20 Shares excluded (1) 960 1,248 935 1,269 ________________________ (1) Potential common shares were excluded from the calculation of diluted net income per share for these periods because their effect would have been anti-dilutive.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Event	Note 13: Subsequent EventOn August 5, 2022, and as provided for within our Senior Secured Credit Facility, we voluntarily prepaid $35.0 million of principal outstanding under our Term Loan. We also settled the accrued and unpaid interest on the applicable principal outstanding up to, but not including, the date of prepayment.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
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 unaudited 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 condensed 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, 2021. Interim results are not necessarily indicative of results for a full year.

Segment Information and Reven_2

Segment Information and Revenue (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of Information on Reportable Segments for Reconciliation to Consolidated Net Income	Information on reportable segments currently presented to our chief operating decision maker and a reconciliation to consolidated net income are presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue: Wealth Management $ 162,669 $ 162,395 $ 329,072 $ 316,886 Tax Software 94,214 91,917 235,364 215,809 Total revenue 256,883 254,312 564,436 532,695 Operating income (loss): Wealth Management 15,873 21,396 32,294 40,792 Tax Software 53,859 63,448 111,889 114,336 Corporate-level activity (18,947) (43,218) (48,355) (76,273) Total operating income 50,785 41,626 95,828 78,855 Interest expense and other, net (8,117) (8,024) (15,958) (15,907) Income before income taxes 42,668 33,602 79,870 62,948 Income tax expense (3,243) (1,994) (5,825) (3,694) Net income $ 39,425 $ 31,608 $ 74,045 $ 59,254
Schedule of Segment Reporting Information, by Segment	Revenues by major category within the Wealth Management segment and the timing of Wealth Management revenue recognition was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Recognized upon transaction: Commission $ 17,881 $ 21,076 $ 38,505 $ 43,443 Transaction and fee 1,262 1,192 2,506 2,566 Total revenue recognized upon transaction $ 19,143 $ 22,268 $ 41,011 $ 46,009 Recognized over time: Advisory $ 104,155 $ 96,508 $ 211,324 $ 187,627 Commission 24,954 30,626 51,985 60,793 Asset-based 6,964 5,526 12,627 10,855 Transaction and fee 7,453 7,467 12,125 11,602 Total revenue recognized over time $ 143,526 $ 140,127 $ 288,061 $ 270,877 Total Wealth Management revenue: Advisory $ 104,155 $ 96,508 $ 211,324 $ 187,627 Commission 42,835 51,702 90,490 104,236 Asset-based 6,964 5,526 12,627 10,855 Transaction and fee 8,715 8,659 14,631 14,168 Total Wealth Management revenue $ 162,669 $ 162,395 $ 329,072 $ 316,886
Schedule of Disaggregation of Revenue	Revenues by major category within the Tax Software segment and the timing of Tax Software revenue recognition was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Recognized upon transaction: Consumer $ 90,963 $ 88,846 $ 216,224 $ 199,413 Professional 2,164 2,128 15,948 14,255 Total revenue recognized upon transaction $ 93,127 $ 90,974 $ 232,172 $ 213,668 Recognized over time: Consumer $ 64 $ — $ 64 $ — Professional 1,023 943 3,128 2,141 Total revenue recognized over time $ 1,087 $ 943 $ 3,192 $ 2,141 Total Tax Software revenue: Consumer $ 91,027 $ 88,846 $ 216,288 $ 199,413 Professional 3,187 3,071 19,076 16,396 Total Tax Software revenue $ 94,214 $ 91,917 $ 235,364 $ 215,809

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2022
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): June 30, December 31, Senior Secured Credit Facility Principal outstanding $ 560,438 $ 561,344 Unamortized debt issuance costs (2,714) (3,371) Unamortized debt discount (2,436) (3,027) Net carrying value $ 555,288 $ 554,946

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of Summary of Operating Lease Expense	Operating lease cost, net of sublease income, and cash paid on operating lease liabilities for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed lease cost $ 947 $ 1,099 $ 1,920 $ 2,253 Variable lease cost 363 102 765 245 Operating lease cost, before sublease income 1,310 1,201 2,685 2,498 Sublease income (234) (116) (468) (232) Total operating lease cost, net of sublease income $ 1,076 $ 1,085 $ 2,217 $ 2,266 Additional lease information: Cash paid on operating lease liabilities $ 1,262 $ 228 $ 2,491 $ 445 Lease liabilities obtained from new right-of-use assets $ 128 $ 93 $ 128 $ 93
Schedule of Supplemental Balance Sheet Information Related to Leases	Right-of-use assets and operating lease liabilities were recorded on the condensed consolidated balance sheets as follows (in thousands): June 30, 2022 December 31, 2021 Right-of-use assets, net $ 19,879 $ 20,466 Current lease liabilities $ 5,025 $ 4,896 Long-term lease liabilities 31,795 33,267 Total operating lease liabilities $ 36,820 $ 38,163 Weighted-average remaining lease term (in years) 9.9 10.3 Weighted-average discount rate 5.4 % 5.4 %
Schedule of Maturities of Operating Lease Liabilities	The maturities of our operating lease liabilities as of June 30, 2022 were as follows (in thousands): Undiscounted cash flows: Remainder of 2022 $ 2,583 2023 5,226 2024 5,121 2025 5,023 2026 4,193 Thereafter 26,130 Total undiscounted cash flows 48,276 Imputed interest (11,456) Present value of cash flows $ 36,820

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2022 December 31, 2021 Prepaid expenses $ 12,260 $ 13,138 Other current assets 5,437 5,338 Total prepaid expenses and other current assets $ 17,697 $ 18,476
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Salaries and related benefit expenses $ 17,151 $ 26,417 HKFS Contingent Consideration liability (1) 22,980 28,300 Accrued legal costs 1,512 2,871 Accrued vendor and advertising costs 3,337 3,777 Accrued taxes 5,495 — Other 4,232 4,313 Total accrued expenses and other current liabilities $ 54,707 $ 65,678 __________________________ (1) For more information on the Company’s contingent liabilities, see "Note 8—Commitments and Contingencies."

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 Quoted prices in Significant other Significant Cash equivalents: money market and other funds $ 4,302 $ 4,302 $ — $ — Deferred compensation assets 2,554 2,554 — — Total assets at fair value $ 6,856 $ 6,856 $ — $ — HKFS Contingent Consideration liability $ 22,980 $ — $ — $ 22,980 Deferred compensation liabilities 2,554 2,554 — — Total liabilities at fair value $ 25,534 $ 2,554 $ — $ 22,980 Fair value measurements at the reporting date using December 31, 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 $ 28,300 $ — $ — $ 28,300 Total liabilities at fair value $ 28,300 $ — $ — $ 28,300
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	A roll forward of the HKFS Contingent Consideration liability is as follows (in thousands): HKFS Contingent Consideration liability Balance as of December 31, 2020 $ 35,900 HKFS Contingent Consideration first earn-out payment (30,000) Change in fair value 22,400 Balance as of December 31, 2021 28,300 Change in fair value (5,320) Balance as of June 30, 2022 $ 22,980

Interest Expense and Other, N_2

Interest Expense and Other, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Other Income and Expenses [Abstract]
Summary of Other Loss, Net	“Interest expense and other, net” on the condensed consolidated statements of operations consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest expense $ 7,265 $ 7,302 $ 14,395 $ 14,485 Amortization of debt issuance costs 399 377 788 740 Amortization of debt discount 299 284 591 561 Total interest expense 7,963 7,963 15,774 15,786 Interest income and other 154 61 184 121 Interest expense and other, net $ 8,117 $ 8,024 $ 15,958 $ 15,907

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
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 per share were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 39,425 $ 31,608 $ 74,045 $ 59,254 Denominator: Basic weighted average common shares outstanding 47,582 48,508 48,048 48,384 Dilutive potential common shares (1) 1,108 877 1,172 857 Diluted weighted average common shares outstanding 48,690 49,385 49,220 49,241 Net income per share: Basic $ 0.83 $ 0.65 $ 1.54 $ 1.22 Diluted $ 0.81 $ 0.64 $ 1.50 $ 1.20 Shares excluded (1) 960 1,248 935 1,269 ________________________ (1) Potential common shares were excluded from the calculation of diluted net income per share for these periods because their effect would have been anti-dilutive.

Description of the Business (De

Description of the Business (Details)	6 Months Ended
	Jun. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Segment Information and Reven_3

Segment Information and Revenue - Information on Reportable Segments (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment					2
Revenue:
Total revenue	$ 256,883		$ 254,312		$ 564,436	$ 532,695
Operating income (loss):
Total operating income	50,785		41,626		95,828	78,855
Interest expense and other, net	(8,117)		(8,024)		(15,958)	(15,907)
Income before income taxes	42,668		33,602		79,870	62,948
Income tax expense	(3,243)		(1,994)		(5,825)	(3,694)
Net income	39,425	$ 34,620	31,608	$ 27,646	74,045	59,254
Corporate-level activity
Operating income (loss):
Total operating income	(18,947)		(43,218)		(48,355)	(76,273)
Wealth Management
Revenue:
Total revenue	162,669		162,395		329,072	316,886
Wealth Management | Operating Segments
Revenue:
Total revenue	162,669		162,395		329,072	316,886
Operating income (loss):
Total operating income	15,873		21,396		32,294	40,792
Tax Software
Revenue:
Total revenue	94,214		91,917		235,364	215,809
Tax Software | Operating Segments
Revenue:
Total revenue	94,214		91,917		235,364	215,809
Operating income (loss):
Total operating income	$ 53,859		$ 63,448		$ 111,889	$ 114,336

Segment Information and Reven_4

Segment Information and Revenue - Revenue by Major Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 256,883	$ 254,312	$ 564,436	$ 532,695
Wealth Management
Segment Reporting Information [Line Items]
Total revenue	162,669	162,395	329,072	316,886
Wealth Management | Commission
Segment Reporting Information [Line Items]
Total revenue	42,835	51,702	90,490	104,236
Wealth Management | Advisory
Segment Reporting Information [Line Items]
Total revenue	104,155	96,508	211,324	187,627
Wealth Management | Asset-based
Segment Reporting Information [Line Items]
Total revenue	6,964	5,526	12,627	10,855
Wealth Management | Transaction and fee
Segment Reporting Information [Line Items]
Total revenue	8,715	8,659	14,631	14,168
Recognized upon transaction: | Wealth Management
Segment Reporting Information [Line Items]
Total revenue	19,143	22,268	41,011	46,009
Recognized upon transaction: | Wealth Management | Commission
Segment Reporting Information [Line Items]
Total revenue	17,881	21,076	38,505	43,443
Recognized upon transaction: | Wealth Management | Transaction and fee
Segment Reporting Information [Line Items]
Total revenue	1,262	1,192	2,506	2,566
Recognized over time: | Wealth Management
Segment Reporting Information [Line Items]
Total revenue	143,526	140,127	288,061	270,877
Recognized over time: | Wealth Management | Commission
Segment Reporting Information [Line Items]
Total revenue	24,954	30,626	51,985	60,793
Recognized over time: | Wealth Management | Advisory
Segment Reporting Information [Line Items]
Total revenue	104,155	96,508	211,324	187,627
Recognized over time: | Wealth Management | Asset-based
Segment Reporting Information [Line Items]
Total revenue	6,964	5,526	12,627	10,855
Recognized over time: | Wealth Management | Transaction and fee
Segment Reporting Information [Line Items]
Total revenue	$ 7,453	$ 7,467	$ 12,125	$ 11,602

Segment Information and Reven_5

Segment Information and Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 256,883	$ 254,312	$ 564,436	$ 532,695
Tax Software
Disaggregation of Revenue [Line Items]
Total revenue	94,214	91,917	235,364	215,809
Tax Software | Consumer
Disaggregation of Revenue [Line Items]
Total revenue	91,027	88,846	216,288	199,413
Tax Software | Professional
Disaggregation of Revenue [Line Items]
Total revenue	3,187	3,071	19,076	16,396
Tax Software | Recognized upon transaction:
Disaggregation of Revenue [Line Items]
Total revenue	93,127	90,974	232,172	213,668
Tax Software | Recognized upon transaction: | Consumer
Disaggregation of Revenue [Line Items]
Total revenue	90,963	88,846	216,224	199,413
Tax Software | Recognized upon transaction: | Professional
Disaggregation of Revenue [Line Items]
Total revenue	2,164	2,128	15,948	14,255
Tax Software | Recognized over time:
Disaggregation of Revenue [Line Items]
Total revenue	1,087	943	3,192	2,141
Tax Software | Recognized over time: | Consumer
Disaggregation of Revenue [Line Items]
Total revenue	64	0	64	0
Tax Software | Recognized over time: | Professional
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,023	$ 943	$ 3,128	$ 2,141

Asset Acquisitions (Details)

Asset Acquisitions (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Asset acquisition, consideration transferred	$ 2.2
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Maximum future contingent payments	$ 19.2
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life	15 years

Debt - Schedule of Company's De

Debt - Schedule of Company's Debt (Details) - Senior Secured Credit Facility - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal outstanding	$ 560,438	$ 561,344
Unamortized debt issuance costs	(2,714)	(3,371)
Unamortized debt discount	(2,436)	(3,027)
Net carrying value	$ 555,288	$ 554,946

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)			6 Months Ended
	Aug. 05, 2022	Apr. 26, 2021	Jun. 30, 2022	Dec. 31, 2021	Apr. 25, 2021
Revolving Credit Facility
Debt Instrument [Line Items]
Debt outstanding			$ 0
Term Loan
Debt Instrument [Line Items]
Debt outstanding			560,400,000
Senior Secured Credit Facility
Debt Instrument [Line Items]
Credit facility			765,000,000
Principal outstanding			560,438,000	$ 561,344,000
Amount available for future borrowings			90,000,000
Senior Secured Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Voluntary prepayment of term loan	$ 35,000,000
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%
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%
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%
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 outstanding			$ 675,000,000
Debt instrument, periodic payment, principal			$ 500,000
Variable interest rate			5%
Senior Secured Credit Facility | Term Loan | Eurodollar
Debt Instrument [Line Items]
Variable interest rate			4%
Senior Secured Credit Facility | Term Loan | Eurodollar | Minimum
Debt Instrument [Line Items]
Variable interest rate			1%
Senior Secured Credit Facility | Term Loan | ABR
Debt Instrument [Line Items]
Variable interest rate			3%

Leases - Operating Lease Expens

Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lease, Cost [Abstract]
Fixed lease cost	$ 947	$ 1,099	$ 1,920	$ 2,253
Variable lease cost	363	102	765	245
Operating lease cost, before sublease income	1,310	1,201	2,685	2,498
Sublease income	(234)	(116)	(468)	(232)
Total operating lease cost, net of sublease income	1,076	1,085	2,217	2,266
Additional lease information:
Cash paid on operating lease liabilities	1,262	228	2,491	445
Lease liabilities obtained from new right-of-use assets	$ 128	$ 93	$ 128	$ 93

Leases - Supplement Balance She

Leases - Supplement Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right-of-use assets, net	$ 19,879	$ 20,466
Current lease liabilities	5,025	4,896
Long-term lease liabilities	31,795	33,267
Total operating lease liabilities	$ 36,820	$ 38,163
Weighted-average remaining lease term (in years)	9 years 10 months 24 days	10 years 3 months 18 days
Weighted-average discount rate	5.40%	5.40%

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Remainder of 2022	$ 2,583
2023	5,226
2024	5,121
2025	5,023
2026	4,193
Thereafter	26,130
Total undiscounted cash flows	48,276
Imputed interest	(11,456)
Total operating lease liabilities	$ 36,820	$ 38,163

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 12,260	$ 13,138
Other current assets	5,437	5,338
Total prepaid expenses and other current assets	$ 17,697	$ 18,476

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Salaries and related benefit expenses	$ 17,151	$ 26,417
Accrued legal costs	1,512	2,871
Accrued vendor and advertising costs	3,337	3,777
Accrued taxes	5,495	0
Other	4,232	4,313
Total accrued expenses and other current liabilities	54,707	65,678
Honkamp Krueger Financial Services, Inc.
Business Acquisition [Line Items]
Contingent liability	$ 22,980	$ 28,300

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Jul. 01, 2020	Sep. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Acquisition [Line Items]
Payment of acquisition contingent liabilities			$ 98	$ 0
Honkamp Krueger Financial Services, Inc.
Business Acquisition [Line Items]
Business combination purchase price	$ 104,400
Undiscounted contingent consideration	60,000
Contingent consideration arrangement, maximum range per earn-out period	$ 30,000
Payment of acquisition contingent liabilities		$ 30,000
HKFS Contingent Consideration liability			$ 23,000

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	Jun. 30, 2022	Dec. 31, 2021
Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	$ 23,000
Fair Value Measurements, Recurring
ASSETS
Deferred compensation assets	2,554
Total assets at fair value	6,856	$ 4,293
Liabilities
Deferred compensation liabilities	2,554
Total liabilities at fair value	25,534	28,300
Fair Value Measurements, Recurring | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	22,980	28,300
Fair Value Measurements, Recurring | Money market and other funds
ASSETS
Cash equivalents: money market and other funds	4,302	4,293
Fair Value Measurements, Recurring | Quoted prices in active markets using identical  assets (Level 1)
ASSETS
Deferred compensation assets	2,554
Total assets at fair value	6,856	4,293
Liabilities
Deferred compensation liabilities	2,554
Total liabilities at fair value	2,554	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	4,302	4,293
Fair Value Measurements, Recurring | Significant other observable inputs (Level 2)
ASSETS
Deferred compensation assets	0
Total assets at fair value	0	0
Liabilities
Deferred compensation liabilities	0
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
Deferred compensation assets	0
Total assets at fair value	0
Liabilities
Deferred compensation liabilities	0
Total liabilities at fair value	22,980	28,300
Fair Value Measurements, Recurring | Significant unobservable inputs (Level 3) | Honkamp Krueger Financial Services, Inc.
Liabilities
HKFS Contingent Consideration liability	22,980	28,300
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 - Recon

Fair Value Measurements - Reconciliation of Unobservable Inputs (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 28,300	$ 35,900
HKFS Contingent Consideration first earn-out payment		(30,000)
Change in fair value	(5,320)	22,400
Ending balance	$ 22,980	$ 28,300

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - Term Loan - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	$ 560.4	$ 561.3
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	$ 540.8	$ 559.9

Interest Expense and Other, N_3

Interest Expense and Other, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Income and Expenses [Abstract]
Interest expense	$ 7,265	$ 7,302	$ 14,395	$ 14,485
Amortization of debt issuance costs	399	377	788	740
Amortization of debt discount	299	284	591	561
Total interest expense	7,963	7,963	15,774	15,786
Interest income and other	154	61	184	121
Interest expense and other, net	$ 8,117	$ 8,024	$ 15,958	$ 15,907

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,243	$ 1,994	$ 5,825	$ 3,694

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income	$ 39,425	$ 34,620	$ 31,608	$ 27,646	$ 74,045	$ 59,254
Denominator:
Basic weighted average common shares outstanding (in shares)	47,582		48,508		48,048	48,384
Dilutive potential common shares (in shares)	1,108		877		1,172	857
Diluted weighted average common shares outstanding (in shares)	48,690		49,385		49,220	49,241
Net income per share:
Basic (in USD per share)	$ 0.83		$ 0.65		$ 1.54	$ 1.22
Diluted (in USD per share)	$ 0.81		$ 0.64		$ 1.50	$ 1.20
Shares excluded (in shares)	960		1,248		935	1,269

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	Aug. 05, 2022 USD ($)
Subsequent Event | Senior Secured Credit Facility
Subsequent Event [Line Items]
Voluntary prepayment of term loan	$ 35