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DERIVATIVES AND HEDGING
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING
The Company estimates the fair value of derivative instruments, including its interest rate caps, swaps and foreign currency forwards, using the assistance of a third party using inputs that are observable in the market, which include forward yield curves and other relevant information.
As of June 30, 2026, the Company has two foreign currency forward contracts with £17.0 million in notional value, which are designated as cash flow hedges. The Company entered into cash flow hedges to hedge the foreign currency risk of intercompany loans denominated in GBP.
As of June 30, 2026, the Company has two interest rate swaps with a notional amount of $250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility (as defined below). The interest rate swaps convert the Term Loan Facility’s Term SOFR rate to an effective fixed interest rate of 3.5%. The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the term of the agreements without exchange of the underlying notional amount.
The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of June 30, 2026:
Derivative
Notional Amount (in thousands)
Maturity or Settlement DateIndexStrike Rate
Fair Value as of June 30, 2026 (in thousands)
Fair Value as of December 31, 2025 (in thousands)
Cash flow hedge£7,656 March 2026GBP-USD exchange rate$1.34 $— $(67)
Cash flow hedge£7,741 June 2026GBP-USD exchange rate$1.34 — (67)
Cash flow hedge£8,500 September 2026GBP-USD exchange rate$1.35 165 — 
Cash flow hedge£8,500 December 2026GBP-USD exchange rate$1.34 146 — 
Interest rate swap$250,000 June 2028USD-SOFR3.5 %1,942 (1,543)
Interest rate swap$250,000 June 2028USD-SOFR3.5 %1,941 (1,543)
The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
For the three months ended June 30, 2026
For the six months ended June 30, 2026
For the three months ended June 30, 2026
For the six months ended June 30, 2026
Gain recognized in Other Comprehensive Income (Loss)Gain reclassified from Accumulated Other Comprehensive Income (Loss) into IncomeIncome Statement Location
Cash flow hedge$297 $586 $(84)$(141)
Gain on foreign currency transactions, net
Interest rate swap3,807 7,312 (147)(343)Interest expense
$4,104 $7,898 $(231)$(484)

For the three months ended June 30, 2025For the six months ended June 30, 2025For the three months ended June 30, 2025For the six months ended June 30, 2025
Loss recognized in Other Comprehensive Income (Loss)(Gain) loss reclassified from Accumulated Other Comprehensive Income (Loss) into IncomeIncome Statement Location
Cash flow hedge$(1,146)$(1,146)$— $— 
Gain on foreign currency transactions, net
$(1,146)$(1,146)$— $— 
The Company estimates that an additional $2.0 million will be reclassified from accumulated other comprehensive income as a net decrease to interest expense and $0.3 million will be reclassified from accumulated other comprehensive income to gain on foreign currency transactions over the next 12 months.