5. Debt

Credit Facility

The Company is party to a credit facility originally entered into on January 28, 2016, as subsequently amended, consisting of a revolving loan facility and, prior to its repayment in September 2024, a $35.0 million term loan (the Term Loan, and, collectively, the Credit Facility). As of September 30, 2024, the Company had fully repaid all remaining amounts outstanding under the Term Loan. The operating company is the borrower under the Credit Facility and its obligations under the Credit Facility are guaranteed by the holding company. The Credit Facility is secured by a lien on substantially all of the Company’s assets. At June 30, 2026, the aggregate revolving commitment amount available under the Credit Facility was $70.0 million, including a $5.0 million sublimit for standby letters of credit. The Company has the right to borrow, prepay and re-borrow revolving amounts under the Credit Facility at any time prior to its maturity date without premium or penalty. The aggregate revolving commitment amount is automatically and permanently reduced by $2.5 million on each anniversary date until the Credit Facility matures on November 16, 2028, unless the Company has previously exercised its option to reduce the aggregate revolving commitments to a lower amount.

Base rate loans under the Credit Facility bear interest at a fluctuating base rate, as determined by the lenders’ administrative agent based on the most recent compliance certificate of the operating company and stated at the highest of: (i) the federal funds rate plus 0.50%; (ii) the prime rate; and (iii) Term SOFR plus 1.00%, subject to the applicable interest rate floor, less the lender spread based upon the Company’s consolidated leverage ratio. Term SOFR borrowings under the Credit Facility bear interest based on Term SOFR for the interest period plus the lender spread based upon the Company’s consolidated leverage ratio. The unused commitment fee is based upon the Company’s consolidated leverage ratio.

The Credit Facility requires compliance with certain customary operational and financial covenants, including a consolidated leverage ratio. The Credit Facility also contains certain other customary limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions, among other limitations. Additionally, the Credit Facility prohibits the payment of cash dividends to the holding company from the operating company without the administrative agent’s consent, provided that so long as no default or event of default exists or would arise as a result thereof, the operating company may pay cash dividends to the holding company in an amount sufficient to allow the holding company to: (i) pay various audit, accounting, tax, securities, indemnification, reimbursement, insurance and other reasonable expenses incurred in the ordinary course of business and (ii) repurchase shares of common stock and pay dividends on the Company’s common stock in an aggregate amount not to exceed $15.0 million during any fiscal year.

On November 16, 2023, the Company amended the Credit Facility to: (i) increase its aggregate revolving commitments from $50.0 million to $75.0 million; (ii) extend the maturity date of the revolving commitments under the Credit Facility to November 16, 2028; and (iii) increase the Company’s restricted payment capacity by $2.5 million, allowing the Company to repurchase shares of common stock and pay dividends on its common stock in an aggregate amount not to exceed $15.0 million during any fiscal year.

The Company had no revolving loan amounts outstanding under the Credit Facility as of June 30, 2026 and September 30, 2025. The Company had undrawn, issued and outstanding letters of credit of $2.7 million and $2.4 million as of June 30, 2026 and September 30, 2025, respectively, which were reserved against the amount available for borrowing under the terms of the Credit Facility. The Company had $67.3 million and $70.1 million available for borrowing under the Credit Facility as of June 30, 2026 and September 30, 2025, respectively.

As of June 30, 2026 and September 30, 2025, the Company was in compliance with all covenants under the Credit Facility.

Co-PACE Financing

On January 21, 2026, in connection with the acquisition of an office building and land, which the Company intends to use as its future corporate headquarters, and related tenant lease intangibles, the Company assumed debt, in the form of financing for clean and efficient energy improvements (Co-PACE Financing), of $1.5 million, with semi-annual payments of $0.1 million each, a fixed annual interest rate of 5.9% and a maturity date of June 15, 2038. As part of the asset acquisition, the seller prepaid both of the scheduled calendar year 2026 payments. The assumed Co-PACE Financing is secured by an assessment lien on the acquired land and building. The Company had $1.5 million outstanding under the Co-PACE Financing as of June 30, 2026.

Lease Obligations

The Company had 24 and 25 leases that were classified as finance leases as of June 30, 2026 and September 30, 2025, respectively. No rent expense is recorded for these finance leases; rather, rental payments under such leases are recognized as a reduction of the lease obligation and as interest expense. The interest rate on finance lease obligations is determined at the commencement of the lease.

Interest

The Company incurred gross interest expense of $0.7 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively, and $2.3 million and $2.5 million for the nine months ended June 30, 2026 and 2025, respectively. Interest expense for the three and nine months ended June 30, 2026 and 2025 relates primarily to interest on finance lease obligations, the Credit Facility and the Co-PACE Financing. The Company capitalized interest of $0.1 million for each of the three months ended June 30, 2026 and 2025, and $0.3 million and $0.2 million for the nine months ended June 30, 2026 and 2025, respectively.