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ACQUISITIONS OF BUSINESSES
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS OF BUSINESSES ACQUISITIONS OF BUSINESSES
In May 2026, the Company acquired certain assets from a manufacturer in China (the "China Manufacturer") through the formation of a new majority-owned subsidiary, NQL, in which the company obtained a 75% controlling interest, for a purchase price of $21.4 million. This acquisition was completed as part of our strategy to invest in the manufacturing and supply chain and to expand our manufacturing presence in China. Transaction-related costs incurred in connection with this acquisition were not material to the condensed consolidated financial statements.
Our valuation models related to inventory and other working capital, identified tangible assets, identified intangible assets, and goodwill included in this acquisition are not yet finalized and these figures are presented on a preliminary basis. Valuation of these items will be finalized within 12 months of the acquisition date. Accordingly, the total preliminary purchase price allocation for the acquisition of assets of the China Manufacturer completed during the six months ended June 30, 2026, is as follows (in thousands):
Aggregate Purchase Price
Cash1
$21,408 
Contingent consideration— 
$21,408 
Aggregate Allocation
Inventory1,311 
Property and equipment9,916 
Trademark2
496 
Customer Relationships2
5,812 
Goodwill3
3,873 
$21,408 
1Total cash consideration is comprised of amounts paid on closing dates plus holdback amounts to be paid in the future.

2The weighted average useful life of acquired amortizable intangible assets is 9 years.

3The full value of this acquired goodwill is expected to be tax deductible.
The aggregate revenue and the net income from the acquisition completed in the six months ended June 30, 2026 that has been consolidated into our condensed consolidated financial statements was $1.6 million and $0.1 million, respectively. The following unaudited pro forma financial information presents our results, including expenses relating to the amortization of intangibles purchased, as if this acquisition had occurred on January 1, 2026 and 2025, respectively (in thousands):
Six Months Ended
June 30,
20262025
Revenue$275,234 $240,525 
Net income$29,363 $24,807 
The unaudited consolidated pro forma combined financial information does not purport to be indicative of the results which would have been obtained had the acquisitions been completed as of the beginning of the earliest period presented or of results that may be obtained in the future. In addition, this financial information does not include any benefits that may result from the acquisition due to synergies that may be derived from the elimination of any duplicative costs.
During the three months ended March 31, 2026, the Company recorded measurement period adjustments related to the 2025 acquisitions. These adjustments increased the provisional fair value of customer relationships by approximately $1.6 million with a corresponding decrease to goodwill of approximately $1.6 million. These adjustments resulted from updated valuation information and refined appraisals received during the measurement period. The adjustments were recognized in the current period in accordance with ASC 805 and had no material impact on the Company's results of operations for the current or prior periods.
Purchase price accounting for acquisitions completed during the second half of the year ended December 31, 2025 is not yet finalized as the valuation models related to identified intangible assets and goodwill included in these acquisitions are not yet complete. We anticipate finalizing the accounting for these acquisitions within 12 months of the completion of each respective acquisition date.