In fiscal year 2024, our stockholders approved the amendment and restatement of our 2016 Incentive Plan (“Amended 2016 Plan”). Under the Amended 2016 Plan, we may grant awards up to an aggregate amount of shares equal to the sum of: (A) 4,000 shares of Class A common stock (subject to adjustment in the event of stock splits and other similar events) which is comprised of: (i) 1,750 shares of Class A common stock reserved for the issuance in connection with the Amended 2016 Plan, plus (ii) 2,250 shares of Class A common stock originally reserved for issuance under the 2016 Incentive Plan; plus (B) such additional number of shares of Class A common stock (up to approximately 2,723 shares) as is equal to the sum of the number of shares of Class A common stock that remained available for grant under the 2006 Stock Incentive Plan (“2006 Plan”) immediately prior to the expiration of the 2006 Plan and the number of shares of Class A common stock subject to awards granted under the 2006 Plan that expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by us. As of June 30, 2025, there were 2,018 Class A common stock equivalents available for future grant under the Amended 2016 Plan.

Stock options are granted at a price equal to the prevailing fair value of our Class A common stock at the date of grant. Generally, stock options granted have a term not to exceed ten years and vest over a one-year to five-year period from the date of grant.

The fair value of each stock option granted is estimated using a Black-Scholes option-pricing model, which uses a risk-free interest rate, based on the U.S. Treasury yield curve for the period of the expected life of the stock option; and requires extensive use of accounting judgment and financial estimation, including estimates of: the expected term, calculated based on the weighted averaged historical life of vested stock options, giving consideration to vesting schedules and historical exercise patterns; and the expected volatility, calculated using the weekly historical volatility of our Class A common stock over the expected life of the stock option.

A summary of stock option activity follows:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding, December 31, 2024	101	$	80.85
Granted	—	$	—
Exercised	—	$	—
Forfeited	—	$	—
Outstanding, June 30, 2025	101	$	80.85	7.2	$	3,484
Exercisable, June 30, 2025	42	$	79.50	7.0	$	1,503

Stock-based compensation expense related to stock options was $135 and $268 during the three and six months ended June 30, 2025, respectively, as compared to $151 and $302 during the three and six months ended June 30, 2024, respectively. As of June 30, 2025, we had $1,261 of unrecognized stock-based compensation expense related to outstanding stock options to be recognized over a weighted average period of 2.4 years.

Restricted stock awards, restricted stock units and performance stock units, with the exception of market-based performance stock units, are granted at a price equal to the fair value of our Class A common stock at the date of grant. The fair value of each market-based performance stock unit is estimated using a Monte Carlo pricing model, which requires extensive use of accounting judgment and financial estimation, including the estimated share price appreciation plus, if applicable, the value of dividends of our Class A common stock as compared to the Russell 2000 Index over the requisite service period.

Typically, restricted stock awards granted to non-employee directors vest incrementally over a three-year period beginning on the first anniversary of the date of grant. Restricted stock units granted to non-employee directors vest in full on the first anniversary of the grant date. Restricted stock units granted to employees vest incrementally over an identified service period, typically three years, beginning on the grant date based on continued employment. Performance stock units granted to employees, including market-based performance stock units, vest at a future date following the grant date and are based on the attainment of performance targets and market achievements, as applicable.

A summary of restricted stock award, restricted stock unit and performance stock unit activity follows:


	Restricted Stock Awards, Restricted Stock Units, and Performance Stock Units (1)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding, December 31, 2024	197	$	91.14
Granted	112	$	112.82
Class A Common Stock Vested	(46)	$	88.61
Forfeited	(2)	$	94.67
Outstanding, June 30, 2025	261	$	100.81	2.0	$	30,186
Unvested, June 30, 2025	469	$	102.10	1.8	$	54,146

(1)Performance stock unit grants, including market-based performance stock units, are included at the 100% attainment level. Attainment of the maximum performance targets and market achievements would result in the issuance of an additional 208 shares of Class A common stock currently included in unvested.

Stock-based compensation expense related to restricted stock awards, restricted stock units and performance stock units was $2,527 and $7,136 during the three and six months ended June 30, 2025, respectively, as compared to $2,349 and $4,225 during the three and six months ended June 30, 2024, respectively.

As of June 30, 2025, total unrecognized stock-based compensation expense related to outstanding restricted stock units was $9,210, which will be recognized over a weighted average period of 2.1 years. As of June 30, 2025, total expected unrecognized stock-based compensation expense related to outstanding performance stock units was $12,069, which will be recognized over a weighted average period of 1.9 years.

The weighted average fair value of market-based performance stock units granted during the six months ended June 30, 2025 was $118.64 per award, which was calculated using a Monte Carlo pricing model assuming a risk-free interest rate of 3.95% and an expected volatility of 25.1% assuming no expected dividend yield. Risk-free interest rate is based on the U.S. Treasury yield curve for the expected service period of the award. Expected volatility is calculated using the daily volatility of our Class A common stock over the expected service period of the award.

The Monte Carlo pricing model requires extensive use of accounting judgment and financial estimation. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the consolidated statements of operations.

We also recorded $203 and $373 of stock-based compensation expense related to the Second Amended and Restated 1997 Employee Stock Purchase Plan during the three and six months ended June 30, 2025, respectively, as compared to $174 and $283 during the three and six months ended June 30, 2024, respectively.

A summary of the changes in the balances of each component of accumulated other comprehensive (loss) income, net of tax follows:



	Interest Rate Swaps
Balance, December 31, 2024	$	3,312

Other comprehensive loss before reclassifications	(6,869)
Interest rate swap amounts reclassified into interest expense	(1,997)
Income tax benefit related to items of other comprehensive loss	2,599
Other comprehensive loss, net of tax	(6,267)
Balance, June 30, 2025	$	(2,955)

A summary of reclassifications out of accumulated other comprehensive (loss) income, net of tax into earnings follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Accumulated Other Comprehensive (Loss) Income, Net of Tax	Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income, Net of Tax								Affected Line Item in the Consolidated Statements of Operations
Interest rate swaps	$	(985)	$	(2,280)	$	(1,997)	$	(4,611)	Interest expense
	985		2,280		1,997		4,611		Income (loss) before income taxes
	289		630		586		1,272		Provision (benefit) for income taxes
	$	696	$	1,650	$	1,411	$	3,339	Net income