v3.26.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 115,444 $ 41,038 $ 120,968
Adjustments to reconcile net income to net cash provided by operating activities:      
Gain on sale of operations, net of tax (711) (4,932) (176)
Depreciation and amortization expense 98,270 48,060 36,269
Bad debt expense, net of recoveries 7,290 3,792 1,551
Adjustment to contingent earnout liability, net 2,588 6,993 2,743
Deferred income taxes 4,632 (8,621) 11,273
Stock-based compensation expense 26,004 13,836 12,286
Amortization of deferred financing fees 5,472 1,259 472
Other, net 5,139 (1,129) (2,837)
Changes in assets and liabilities, net of acquisitions and divestitures:      
Accounts receivable, net (27,096) 48,218 (36,093)
Other assets (22,936) 2,809 (6,626)
Accounts payable 443 (18,846) 2,210
Income taxes payable 17,148 (7,544) (5,918)
Accrued personnel costs 14,202 (5,830) 2,711
Other liabilities (53,404) 4,589 14,674
Net cash provided by operating activities 192,485 123,692 153,507
Cash flows from investing activities:      
Business acquisitions and purchases of client lists, net of cash acquired (1,625) (1,087,521) (53,110)
Purchases of client fund investments (43,375) (23,210) (14,122)
Proceeds from the sales and maturities of client fund investments 39,691 21,923 18,465
Proceeds from sales of assets and divested operations 1,530 7,131 3,059
Change in funds held for clients (305) 0 0
Additions to property and equipment (16,959) (12,914) (23,052)
Other, net 5,190 (34,692) (10,633)
Net cash used in investing activities (15,853) (1,129,283) (79,393)
Cash flows from financing activities:      
Proceeds from bank debt 1,480,100 2,487,900 1,224,000
Payments of bank debt (1,428,600) (1,379,400) (1,177,300)
Deferred financing costs (983) (20,654) 0
Payment for acquisition of treasury stock (160,076) 0 (65,378)
Indirect repurchase of shares for minimum tax withholding (7,844) (11,508) (8,448)
Changes in client funds obligations 30,810 16,035 (13,574)
Payment of contingent consideration of acquisitions and client lists (58,682) (56,760) (45,175)
Proceeds from exercise of stock options 0 0 8,764
Other, net (437) 0 0
Net cash provided by (used in) financing activities (145,712) 1,035,613 (77,111)
Net increase (decrease) in cash, cash equivalents and restricted cash 30,920 30,022 (2,997)
Cash, cash equivalents and restricted cash at beginning of year 187,170 157,148 160,145
Cash, cash equivalents and restricted cash at end of year 218,090 187,170 157,148
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets:      
Cash and cash equivalents 18,290 13,826 8,090
Restricted cash 38,234 38,661 30,362
Cash equivalents included in funds held for clients 161,566 134,683 118,696
Cash, cash equivalents and restricted cash at end of year 218,090 187,170 157,148
Supplemental disclosures of cash flow information:      
Cash paid for interest 105,429 25,686 19,127
Cash paid for income taxes, net of income tax refunds $ 23,577 $ 37,537 $ 39,976