Available-For-Sale Debt Securities - In connection with certain services provided by our payroll operations, we collect funds from our clients’ accounts in advance of paying client obligations. These funds held for clients are segregated and invested in accordance with our investment policy, which requires all investments carry an investment grade rating at the time of initial investment. These investments, primarily consisting of corporate and municipal bonds, are classified as available-for-sale and are included in the “Funds held for clients” line item on the accompanying unaudited Condensed Consolidated Balance Sheets. The par value of these investments totaled $45.3 million and $45.0 million at June 30, 2026 and December 31, 2025, respectively, and these investments have maturity or callable dates ranging from December 2026 through March 2031.

At June 30, 2026, unrealized losses on the securities were not material and have not been recognized as a credit loss because the bonds are investment grade quality and management is not required or does not intend to sell prior to an expected recovery in value. The bond issuers continue to make timely principal and interest payments.


	Six Months Ended June 30, 2026		Year Ended December 31, 2025
Fair value at beginning of period	$	45,004	$	40,999
Purchases	6,250		43,375
Redemptions	—		(5,096)
Maturities	(5,965)		(34,595)
Change in bond premium	(28)		11
Fair market value adjustment	(483)		310
Fair value at end of period	$	44,778	$	45,004

In addition to the available-for-sale debt securities discussed above, we also held other depository assets in the amount of $0.2 million and $0.5 million at June 30, 2026 and December 31, 2025, respectively. Those depository assets are classified as Level 1 in the fair value hierarchy.

Interest Rate Swaps - We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the 2024 Credit Facilities, or the forecasted acquisition of such liability. We do not purchase or hold any derivative instruments for trading or speculative purposes. Refer to Note 7, Financial Instruments, to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025, as amended, for further discussion on our interest rate swaps.

The following table summarizes our outstanding interest rate swaps and their classification in the accompanying unaudited Condensed Consolidated Balance Sheets at June 30, 2026 and December 31, 2025 (amounts in thousands, except percentages):


	June 30, 2026
	Notional Amount		Fixed Rate		Expiration	Fair Value		Balance Sheet Location
Interest rate swap	$	100,000	4.047	%	7/14/2026	$	(16)	Other current liability
Interest rate swap	$	30,000	1.186	%	12/14/2026	$	361	Other current asset
Interest rate swap	$	100,000	3.850	%	7/14/2027	$	92	Other non-current asset
Interest rate swap	$	20,000	2.450	%	8/14/2027	$	334	Other non-current asset
Interest rate swap	$	25,000	3.669	%	4/14/2028	$	110	Other non-current asset
Interest rate swap	$	25,000	4.488	%	10/14/2028	$	(322)	Other non-current liability
Interest rate swap	$	50,000	3.703	%	3/14/2030	$	238	Other non-current asset
Interest rate swap	$	50,000	3.503	%	4/14/2030	$	594	Other non-current asset
Interest rate swap	$	50,000	3.658	%	7/14/2030	$	329	Other non-current asset
Interest rate swap	$	50,000	3.680	%	7/15/2030	$	287	Other non-current asset


	December 31, 2025
	Notional Amount		Fixed Rate		Expiration	Fair Value		Balance Sheet Location
Interest rate swap	$	100,000	4.047	%	7/14/2026	$	(269)	Other current liability
Interest rate swap	$	30,000	1.186	%	12/14/2026	$	628	Other current asset
Interest rate swap	$	100,000	3.850	%	7/14/2027	$	(838)	Other non-current liability
Interest rate swap	$	20,000	2.450	%	8/14/2027	$	263	Other non-current asset
Interest rate swap	$	25,000	3.669	%	4/14/2028	$	(228)	Other non-current liability
Interest rate swap	$	25,000	4.488	%	10/14/2028	$	(805)	Other non-current liability
Interest rate swap	$	50,000	3.703	%	3/14/2030	$	(708)	Other non-current liability
Interest rate swap	$	50,000	3.503	%	4/14/2030	$	(327)	Other non-current liability
Interest rate swap	$	50,000	3.658	%	7/14/2030	$	(637)	Other non-current liability
Interest rate swap	$	50,000	3.680	%	7/15/2030	$	(681)	Other non-current liability

The following table summarizes the effects of the interest rate swaps on the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Gain (Loss) Recognized in AOCI, net of tax				Gain Reclassified from AOCI into Expense
	Three Months Ended June 30,				Three Months Ended June 30,
	2026		2025		2026		2025
Interest rate swaps	$	2,246	$	(1,719)	$	38	$	594

	Gain (Loss) Recognized in AOCI, net of tax				Gain Reclassified from AOCI into Expense
	Six Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Interest rate swaps	$	4,303	$	(2,436)	$	127	$	1,373