v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

7. Fair Value of Financial Instruments

Accounting Standards Codification Topic 820, Fair Value Measurement, includes a single definition of fair value to be used for financial reporting purposes, provides a framework for applying this definition and for measuring fair value under GAAP, and establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 – Fair value is based on observable inputs such as quoted prices for identical assets or liabilities in active markets.

Level 2 – Fair value is determined using quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or inputs other than quoted prices that are directly or indirectly observable.

Level 3 – Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique.

The carrying amounts reported in the Company’s condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the immediate to short-term maturity of these financial instruments. The estimated fair value of the Company’s debt, net was calculated based upon available market information. The carrying value and the estimated fair value of debt, net are as follows:

 

Level in

March 31, 2026

 

December 31, 2025

 

Fair Value

Carrying

 

Estimated

 

Carrying

 

Estimated

 

($ in thousands)

Hierarchy

Amount

 

Fair Value

 

Amount

 

Fair Value

 

Term Loan

 

2

$

 

678,954

 

$

 

686,217

 

$

 

680,339

 

$

 

692,235

 

Senior Notes

 

2

 

 

 

347,874

 

 

 

 

335,125

 

 

 

 

347,706

 

 

 

 

346,500

 

Amended Revolver

 

2

 

 

 

26,000

 

 

 

 

26,000

 

 

 

 

—

 

 

 

 

—

 

Other debt(1)

 

2

 

 

 

2,789

 

 

 

 

2,869

 

 

 

 

—

 

 

 

 

—

 

(1) Other debt consists of immaterial equipment financing arrangements entered into in the normal course of business, including certain equipment leases accounted for as financing arrangements.

As a result of a legal settlement finalized in February 2026, the Company received ordinary shares of a publicly traded company based in Australia. The shares are classified as short-term investments within the prepaid expenses and other current assets line on the condensed consolidated balance sheets and are measured at fair value on a quarterly basis. The fair value of these shares is determined using quoted closing market prices on the Australian Securities Exchange, an active exchange, as of the measurement date. Accordingly, the investment is classified within Level 1 of the fair value hierarchy. The following summarizes the change in fair value of equity securities included in selling, general and administrative expenses on the condensed consolidated statements of operations and comprehensive income which consists of adjustments related to the equity securities re-measured to fair value at the end of the reporting period:

 

 

 

Three Months Ended

 

($ in thousands)

 

March 31, 2026

 

Beginning balance

 

$

—

 

Equity securities acquired from legal settlement

 

 

7,865

 

Change in fair value of equity securities

 

 

(1,508

)

Foreign currency translation adjustment

 

 

(289

)

Ending balance

 

$

6,068

 

The Company has an equity investment measured at cost with a carrying value of $2.1 million and $2.0 million as of March 31, 2026 and December 31, 2025, respectively, and is only adjusted to fair value if there are identified events that would indicate a need for an upward or downward adjustment or changes in circumstances that may indicate impairment. The estimation of fair value requires the use of significant unobservable inputs, such as voting rights and obligations in the securities held, and is therefore classified within Level 3 of the fair value hierarchy. There were no identified events that required a fair value adjustment during the three months ended March 31, 2026 and 2025.