v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Debt
The Company’s debt as of March 31, 2026 and December 31, 2025, consisted of the following (in thousands):
March 31,
2026		December 31,
2025
Revolving credit facility$— $12,000 
Term Loan facility
585,000 600,000 
Total borrowings
585,000 612,000 
Add: Remaining premium on interest rate caplets financed as debt
— 83 
Total debt
585,000 612,083 
Less: Debt issuance costs(4,439)(4,663)
Total debt, net of debt issuance costs580,561 607,420 
Less: Current maturities(30,000)(37,583)
Total debt, net of current maturities$550,561 $569,837 
As of March 31, 2026, the weighted-average interest rate on the Company’s borrowings was approximately 5.5%.
Other Financing Activities
From time to time, the Company may take advantage of favorable financing terms offered by vendors for purchases of property and equipment. Financed property and equipment totaled $4.5 million and $4.8 million as of March 31, 2026 and December 31, 2025, respectively, of which $1.7 million is recorded in accounts payable and other accrued expenses for both periods with the remaining $2.8 million and $3.1 million recorded in other long-term liabilities on the condensed consolidated balance sheets for the years ended March 31, 2026, and December 31, 2025, respectively.
Interest rate hedging instruments
The Company manages its exposure to interest rate risk through the use of interest rate hedging instruments, which are derivative financial instruments.
On January 12, 2022, the Company hedged the variability of the cash flows attributable to changes in the 1-month Secured Overnight Financing Rate (“SOFR”) interest rates on the first $300 million of the term loan under the Company’s prior credit agreement by entering into a 4-year series of 48 deferred premium caplets (“caplets”), which expired in January 2026.
On January 30, 2026, following the expiration of the caplets and to continue to hedge the variability of the cash flows attributable to the changes in the 1-month Term SOFR interest rate, the Company entered into an interest rate collar. The collar, which is designated as a cash flow hedge, establishes a cap interest rate of 4.00% and a floor interest rate of 2.9215%. The interest‑rate collar is structured so its notional amount and timing exactly match the term loan’s outstanding balance and scheduled principal payments. The interest rate collar matures in September 2029.
The Company recognized an unrealized loss, net of taxes, on the change in fair value of the interest rate hedging instruments of less than $0.1 million for the three months ended March 31, 2026. In comparison, the Company recognized an unrealized loss, net of taxes, of $1.1 million for the three months ended March 31, 2025. For more information on how the Company determines the fair value of the interest rate hedging instruments, see Note 12. The Company also recognized interest income on the caplets of $0.4 million for the three months ended March 31, 2026. In comparison, the Company recognized interest income on the caplets of $1.8 million for the three months ended March 31, 2025. These amounts are reflected in interest expense, net in the condensed consolidated statements of operations and other comprehensive income. As of March 31, 2026 there has been no realized gain or loss on the interest rate collar.