v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

Note 8. Debt

 

The Company’s debt is comprised of the following:

 

  

June 30,

2026

  

December 31,

2025

 
Revolving lines of credit  $596   $387 
Finance lease   3,941    41 
Other current debt   4,628    - 
Senior Secured Credit Facility   219,000    174,000 
Less: Deferred cost of financing   (2,771)   (2,799)
Total obligations under borrowing arrangements   225,394    171,629 
Less: Current portion of long-term debt and other current borrowings   6,156    427 
Long-term debt  $219,238   $171,202 

 

In September 2025, the Company entered into a new Senior Secured Credit Facility, transitioning from a term loan and revolving facility structure to a fully committed revolving facility structure which allowed the Company to (i) increase total committed borrowing capacity from $150 million to $500 million, (ii) reduce borrowing costs by approximately 25 basis points, and (iii) extend the initial maturity date by five years to December 2030. Borrowings under the new facility bear interest at the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25 % based on the Company’s net leverage ratio (previously 1.50 % over SOFR). The effective interest rate for the facility, including deferred issuance costs, is 6.98 % as of December 31, 2025. The Company incurred total costs and fees of $2,783 in lender fees which were capitalized as deferred financing costs, and are presented as a deduction from the related debt liability.

 

The transaction was accounted for as a debt extinguishment under ASC 470-50. Accordingly, the prior term-loan and revolving credit facilities were derecognized, and the new revolving facility was initially recognized at its principal amount, net of deferred financing costs. As a result, the Company recognized a loss on extinguishment of debt of $1,354, representing $1,302 for the write-off of the remaining unamortized deferred financing costs related to the prior term-loan and revolving credit facilities, and $52 of termination costs associated with closing the prior facility. Cash proceeds from the new facility and repayments of the extinguished debt are reflected within financing activities in the condensed consolidated statements of cash flows. Of the $2,783 of total fees incurred, $1,803 were deducted from the gross proceeds and presented net within “Proceeds from debt,” with the remaining $980 recorded as cash outflows classified under “Deferred financing costs and debt issuance fees” within financing activities. During the six months ended June 30, 2026, the Company drew down $60 million from its revolving credit facility and repaid $15 million.

 

Interest income (expense), net and deferred cost of financing is comprised of the following:

 

                 
   Three months ended   Six months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Interest income (expense), net and deferred cost of financing:                    
Interest expense   (3,429)   (1,078)   (5,957)   (2,126)
Deferred cost of financing   (155)   (272)   (307)   (555)
Derivative financial instrument loss   64    -    (279)   - 
Interest expense, net and deferred cost of financing:  $(3,520)  $(1,350)  $(6,543)  $(2,681)

 

Maturities of long-term debt and other current borrowings as of June 30, 2026, are as follows:

 

 

      
2026  $6,156 
2027   953 
2028   848 
2029   769 
2030   219,439 
Total  $228,165 

 

The Company’s loans have maturities ranging from several weeks to 5 years. Our credit facilities bore a weighted average interest rate of 5.14% as of June 30, 2026.

 

Finance Leases

 

As of June 30, 2026, the Company had right-of-use assets (“ROU assets”) of $3,905 included within Property, Plant and Equipment, and lease liabilities of $3,941 on its Condensed Consolidated Balance Sheet, of which $932 is presented within short-term debt and current portion of long-term debt and $3,009 is classified as long-term debt. These leases primarily relate to real estate, including showrooms, office space and industrial warehouses, as well as computing equipment. Certain lease agreements include options to extend the lease term; however, the Company does not consider these options reasonably certain of exercise.

 

The Company recognizes amortization of ROU assets and interest expense on lease liabilities in its Condensed Consolidated Statements of Income. During the three and six months ended June 30, 2026, the Company recorded ROU asset amortization of $306, and $564, respectively; and interest expense of $43, and $68, respectively.

 

Cash paid for amounts included in the measurement of lease liabilities was $702 for the six months ended June 30, 2026, consisting of $68 classified as operating cash flows and $634 classified as financing cash flows. Non-cash additions to ROU assets in exchange for lease liabilities were $3,073 during the period.

 

Future minimum lease payments for the years ended June 30, of each year are as follows:

 

      
2026  $1,078 
2027   1,060 
2028   917 
2029   804 
2030 and thereafter   446 
Total undiscounted cashflows   4,304 
Less: Imputed Interest   363 
Present value of lease liability  $3,941 

 

As of June 30, 2026, the weighted-average remaining lease term for finance leases was 4.1 years and the weighted-average discount rate was 4.2%.