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DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
Debt is presented net of debt discounts and issuance costs in the Company’s balance sheets and consisted of the following (in thousands):
June 30,December 31,
20262025
Term Loan$46,575 $67,187 
Less current maturities — (4,031)
Long-term debt, net of current maturities$46,575 $63,156 

On March 27, 2026, the Company amended the Credit Facility, as originally executed, to implement certain changes to the aggregate amounts of permitted “Restricted Payments” (as such term is defined in the Credit Facility) such that (a) commencing with the Company’s fiscal year ending on December 31, 2026 and for each fiscal year thereafter, the aggregate Restricted Payments shall not exceed $20.0 million per fiscal year and (b) in respect of Restricted Payments made on and after January 1, 2026, the aggregate Restricted Payments shall not exceed $50.0 million, in each case subject to the satisfaction of applicable conditions set forth in the Credit Facility

Cash proceeds and payment activity relating to the Credit Facility consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended
June 30,
2026202520262025
Principal payments on revolving line of credit$— $(5,000)$— $(5,000)
Principal payments on term loan(10,000)(937)(20,938)(1,875)
Net cash activity relating to debt$(10,000)$(5,937)$(20,938)$(6,875)

On June 25, 2026, March 30, 2026 and February 4, 2026, the Company made voluntary prepayments of $10.0 million, $5.0 million and $5.0 million, respectively, on the outstanding term loan principal balance. The Company also made its scheduled principal payment of $0.9 million on March 31, 2026. The Company’s next scheduled principal payment of $48.4 million is due on April 30, 2029.

For the term loan, the Company has a choice of interest rates between (a) the Secured Overnight Financing Rate (“SOFR”) and (b) a Base Rate (as defined in the Credit Facility), in each case plus an applicable margin. The applicable margin is based on the Company’s Consolidated Total Leverage Ratio (as defined in the Credit Facility) and whether the Company elects SOFR (ranging from 2.75% to 3.5%) or Base Rate (ranging from 1.75% to 2.5%). The revolving line of credit bears interest on the unused portion of the credit line at rates of 25 to 40 basis points, depending on the Company’s Consolidated Total Leverage Ratio.

For the three months ended June 30, 2026 and 2025, the effective interest rate for the term loan under the Credit Facility was 7.6% and 8.1%, respectively. For the six months ended June 30, 2026 and 2025, the effective interest rate for the term loan under the Credit Facility was 7.5% and 8.0%, respectively.

The fair value of the term loan under the Credit Facility was $48.8 million (Level 2 inputs) as of June 30, 2026 compared to the carrying value of $46.6 million as of June 30, 2026. The fair value of the Credit Facility was $69.5 million (Level 2 inputs) as of December 31, 2025 compared to the carrying value of $67.2 million as of December 31, 2025.

Under the Credit Facility, the Company has $35.0 million of net available borrowing capacity under the revolving line of credit as of June 30, 2026, as there have been no borrowings during the three and six months ended June 30, 2026. In addition, there were no borrowings on the revolving line of credit as of December 31, 2025.

In October 2024, the Company borrowed $15.0 million under the revolving line of credit. For the three months ended June 30, 2025, the Company reduced the amount borrowed under the revolving line of credit by $5.0 million, resulting in a net principal balance outstanding of $10 million as of June 30, 2025. As such, the Company had $25 million in net available borrowings under the revolving line of credit as of June 30, 2025. For the three and six months ended June 30, 2025, the average interest rate under the revolving line of credit under the Credit Facility was 7.1% and 7.1%, respectively.
Pursuant to a Guaranty and Security Agreement, dated April 30, 2024, among the Credit Parties (as defined in the Credit Facility) and Capital One, National Association, as agent, the obligations under the Credit Facility are guaranteed by certain of the Company’s subsidiaries and are secured, subject to customary permitted liens and exceptions, by a lien on substantially all assets of the Credit Parties.

The Credit Facility contains certain financial covenants, including a minimum fixed charge coverage ratio greater than 1.25, a total leverage ratio less than 3.75, and a minimum liquidity balance of at least $20.0 million in U.S. cash.

Effective April 30, 2024, the Company’s interest rate swap agreement was amended in connection with the Credit Facility to match the new five-year term. The amended interest rate swap agreement has a notional value of $40.0 million, with a fixed payer SOFR rate of 3.71% and an initial floating SOFR rate of 5.32%. The floating rate is reset at each month end and the term of the interest rate swap agreement coincides with that of the Credit Facility. See Note 11 for further information regarding the fair value accounting for the interest rate swap agreement. The modification of the interest rate swap agreement did not have a material impact on the Company’s Unaudited Condensed Consolidated Financial Statements.

Interest Expense

The components of interest expense are presented below (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Credit Facility:
Interest expense under term loan$940 $1,226 $2,007 $2,458 
Accretion expense related to discount and issuance costs164 164 326 326 
Interest expense under revolving line of credit— 216 — 478 
Interest for other items26 23 48 42 
$1,130 $1,629 $2,381 $3,304 

For the three and six months ended June 30, 2026, interest expense included an increase related to interest rate swap net payments made for $6 thousand and $9 thousand, respectively.
For the three and six months ended June 30, 2025, interest expense included a reduction related to interest rate swap payments received of $0.1 million and $0.1 million, respectively