v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5.
FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Interest Rate Swaps—In February 2025, the Company entered into three interest rate swap agreements to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt (see Note 14). The fair value of the interest rate swap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore was classified within Level 2 of the fair value hierarchy as of June 30, 2026.

The Company does not designate its interest rate swap agreements as hedging instruments and records the changes in fair value within other income (expense)-net on the condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2026, the Company's interest rate swap agreements were in both asset and liability positions, with a total fair value of $0.4 million recorded within other assets and $0.3 million recorded within other liabilities in the accompanying condensed consolidated balance sheet as of June 30, 2026.

The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis at June 30, 2026 (in thousands):

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

$

391

 

 

$

—

 

 

$

391

 

 

$

—

 

Total Assets

 

$

391

 

 

$

—

 

 

$

391

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

$

297

 

 

$

—

 

 

$

297

 

 

$

—

 

Total liabilities

 

$

297

 

 

$

—

 

 

$

297

 

 

$

—

 

The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis at December 31, 2025 (in thousands):

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

$

7,411

 

 

$

—

 

 

$

7,411

 

 

$

—

 

Total liabilities

 

$

7,411

 

 

$

—

 

 

$

7,411

 

 

$

—

 

 

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis—The Company has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include those associated with acquired businesses, including goodwill and other intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired.

The Company did not recognize any impairment charges related to these assets during the three and six months ended June 30, 2026 and 2025.

Fair Value of Other Financial Instruments—The following table presents the carrying amounts, net of debt discount, and estimated fair values of the Company’s financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands):

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Carrying

 

 

Estimated

 

 

Carrying

 

 

Estimated

 

Description

 

Amount

 

 

Fair Value

 

 

Amount

 

 

Fair Value

 

Term Loan, including current maturities

 

$

1,283,524

 

 

$

1,261,995

 

 

$

1,289,968

 

 

$

1,294,220

 

The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices for the same or similar instruments and fluctuates with changes in applicable interest rates among other factors. The fair value of long-term debt is classified as a Level 2 measurement in the fair value hierarchy and is established based on observable inputs in less active markets.