v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

The Company reports the results of its continuing operations in one reportable segment. The Company's Chief Operating Decision Maker, our Chief Executive Officer, monitors net income, net sales, and Adjusted EBITDA to evaluate performance and make operating decisions. The measures of segment profit or loss are consolidated net income and Adjusted EBITDA. EBITDA means earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA means EBITDA, adjusted for other items within a relevant period which are not reflective of the segment's operating performance in the period.

The following table provides a reconciliation of the Company's segment Adjusted EBITDA to net income for the three and six months ended June 30, 2026 and 2025 (in thousands):

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net sales

 

$

171,579

 

 

$

123,123

 

 

$

327,667

 

 

$

237,782

 

Significant segment expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted cost of sales (1)

 

 

73,465

 

 

 

52,116

 

 

 

138,725

 

 

 

102,756

 

Adjusted selling, general and administrative expenses (2)

 

 

23,973

 

 

 

20,284

 

 

 

47,158

 

 

 

38,254

 

Adjusted research and development costs (3)

 

 

4,692

 

 

 

3,605

 

 

 

9,116

 

 

 

6,521

 

Adjusted EBITDA

 

 

69,449

 

 

 

47,118

 

 

 

132,668

 

 

 

90,251

 

Recognition of inventory step-up (4)

 

 

—

 

 

 

—

 

 

 

(4,916

)

 

 

—

 

Other expense (5)

 

 

(1,267

)

 

 

—

 

 

 

(1,267

)

 

 

—

 

Transaction expenses (6)

 

 

(1,561

)

 

 

(1,984

)

 

 

(2,800

)

 

 

(2,444

)

Stock-based compensation (7)

 

 

(4,581

)

 

 

(3,650

)

 

 

(8,973

)

 

 

(6,739

)

Acquisition and facility integration costs (8)

 

 

(244

)

 

 

(1,480

)

 

 

(457

)

 

 

(2,462

)

Depreciation and amortization

 

 

(19,944

)

 

 

(12,687

)

 

 

(38,886

)

 

 

(25,145

)

Interest expense, net

 

 

(20,014

)

 

 

(6,481

)

 

 

(38,724

)

 

 

(12,940

)

Income tax provision

 

 

(5,096

)

 

 

(4,123

)

 

 

(8,760

)

 

 

(8,492

)

Net income

 

$

16,742

 

 

$

16,713

 

 

$

27,885

 

 

$

32,029

 
(1)
Represents cost of sales adjusted to exclude the recognition of inventory step-up of $4.9 million during the six months ended June 30, 2026; the amortization of intangible and other long-lived assets of $4.0 million and $1.2 million during the three months ended June 30, 2026 and 2025 and $7.7 million and $2.3 million during the six months ended June 30, 2026 and 2025, respectively; depreciation of $2.9 million and $2.7 million during the three months ended June 30, 2026 and 2025 and $5.8 million and $5.3 million during the six months ended June 30, 2026 and 2025, respectively; and acquisition and facility integration costs of $0.9 million and $1.5 million during the three and six months ended June 30, 2025.
(2)
Represents selling, general and administrative expenses adjusted to exclude the amortization of intangible and other long-lived assets of $12.5 million and $8.5 million during the three months ended June 30, 2026 and 2025 and $24.5 million and $16.9 million during the six months ended June 30, 2026 and 2025, respectively; depreciation of $0.4 million during each of the three months ended June 30, 2026 and 2025 and $0.7 million and $0.6 million during the six months ended June 30, 2026 and 2025, respectively; stock based compensation of $4.5 million and $3.7 million during the three months ended June 30, 2026 and 2025 and $8.9 million and $6.7 million during the six months ended June 30, 2026 and 2025, respectively; acquisition and facility integration costs of $0.2 million and $0.6 million during the three months ended June 30, 2026 and 2025 and $0.5 million and $1.0 million during the six months ended June 30, 2026 and 2025, respectively; and research and development costs of $4.8 million and $3.6 million during the three months ended June 30, 2026 and 2025 and $9.2 million and $6.5 million during the six months ended June 30, 2026 and 2025, respectively.
(3)
Represents research and development costs adjusted to exclude depreciation and stock compensation totaling $0.2 million in the three and six months ended June 30, 2026. Research and development costs are incurred to investigate, examine, design and test new or significantly enhance existing products, services or processes.
(4)
Represents accounting adjustments to inventory associated with acquisitions of businesses that were charged to cost of sales when inventory was sold.
(5)
Represents an adjustment to the contingent purchase price for the Harper Engineering acquisition during the three and six months ended June 30, 2026.
(6)
Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred.
(7)
Represents the non-cash compensation expense recognized by the Company for equity awards.
(8)
Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.