v3.26.1
Financing Arrangements
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Credit Agreement

The Company has a credit agreement with various lenders (the “Lenders”) and Wells Fargo Bank, National Association (“Wells Fargo”), which was amended on November 21, 2025 (as amended, the “Credit Agreement”). Pursuant to the Credit Agreement, the Lenders agreed to extend term loan commitments in an aggregate principal amount of $150.0 million (the “Term Loan Facility”) and revolving loan commitments in an aggregate principal amount of $150.0 million (the “Revolving Facility”). In May 2026 the Company exercised an automatic maturity extension related to the credit agreement, which will now mature on November 14, 2029.

The Term Loan Facility requires principal payments equal to 0.625% of the aggregate principal amount on the last day of each fiscal quarter until December 31, 2026 and at 1.250% of the aggregate principal amount on the last day of each fiscal quarter until September 30, 2028. Borrowings under the Credit Agreement bear interest at a floating rate on the unpaid principal amount thereof equal to (i) initially, (x) 3.00% per annum in the case of Term SOFR Loans and (y) 2.00% per annum in the case of ABR Loans and (ii) on and after the date on which the borrower submits written notice to the administrative agent of its election to cease testing the revenue and liquidity covenants and to begin testing the leverage covenant in lieu thereof, which notice may be submitted at any time (the “Leverage Covenant Toggle Date”), the applicable rate per annum set forth in the pricing grid below under the caption “Term SOFR Margin” or “ABR Margin,” as the case may be, based upon the Total Net Leverage Ratio (as defined in the Credit Agreement) as of the end of the Company’s fiscal quarter:
LevelTotal Net Leverage RatioTerm SOFR MarginABR Margin
I
If the Total Net Leverage Ratio is greater than 3.00:1.00
2.75%1.75%
II
If the Total Net Leverage Ratio is less than or equal to 3.00:1.00 and greater than 2.00:1.00
2.50%1.50%
III
If the Total Net Leverage Ratio is less than or equal to 2.00:1.00
2.25%1.25%

The Credit Agreement contains (i) a minimum revenue covenant, in effect from March 31, 2026 to (but not including) the first business day following the occurrence of a Leverage Covenant Toggle Date, that requires us to maintain a minimum amount of revenue set forth below as of the last day of each such fiscal quarter and measured on a trailing twelve month basis:
DateMinimum Revenue
March 31, 2026$245,591,268 
June 30, 2026$264,387,082 
September 30, 2026$319,190,794 
December 31, 2026$372,510,143 
March 31, 2027$426,903,024 
June 30, 2027$501,782,812 
September 30, 2027$554,984,539 
December 31, 2027$616,972,315 
March 31, 2028$676,839,498 
June 30, 2028$722,972,451 
September 30, 2028$758,499,673 
(ii) a minimum liquidity covenant, in effect from March 31, 2026 to (but not including) the first business day following the occurrence of a Leverage Covenant Toggle Date, that requires us not to permit Liquidity (defined as unrestricted cash together with amounts available for borrowing under the Revolving Facility), as of the last day of each fiscal quarter, to be less than (x) initially, $105,000,000 or (y) upon and after the repayment of the Term Loan Facility in full, 35.0% of the outstanding revolving commitment as of such date, and (iii) a maximum consolidated first lien net leverage ratio covenant, in effect commencing upon the occurrence of a Leverage Covenant Toggle Date, that requires us to maintain a consolidated total net leverage ratio of less than (x) 4.50 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and December 31, 2026, (y) 4.25 to 1.00 for the fiscal quarters ending March 31, 2027, June 30, 2027, September 30, 2027 and December 31, 2027 and (z) 4.00 to 1.00 for the fiscal quarters ending March 31, 2028, June 30, 2028 and September 30, 2028. The Credit Agreement also includes customary equity cure provisions that permit us to cure defaults in respect of either of the foregoing financial covenants. The Company was in compliance with all financial debt covenants as of June 30, 2026.
All obligations under the Credit Agreement are secured by substantially all of the Company’s assets and guaranteed by certain subsidiaries.

As of June 30, 2026, the Company had outstanding borrowings of $148.1 million under the Term Loan Facility and no outstanding borrowings under the Revolving Facility, with $150.0 million of available capacity.
The following table presents the Company's outstanding debt:
As of
June 30, 2026December 31, 2025
Term Loan Facility$148,125 $150,000 
Less: unamortized discounts and issuance costs(1,081)(1,288)
Total debt, net147,044 148,712 
Less: current portion of long-term debt5,625 3,750 
Total long-term debt, net$141,419 $144,962 

For the three and six months ended June 30, 2025, interest expense and amortization of debt issuance costs recognized related to the secured credit facilities that were outstanding prior to the Credit Agreement (“Original Term Loan Facility”). In November 2025, the Company repaid the Original Term Loan Facility using cash on hand and net proceeds from the Credit Agreement. The following table presents interest expense and amortization of debt issuance costs recognized for the three and six months ended June 30, 2026 and 2025:
For the three months ended June 30,For the six months ended June 30,
2026202520262025
Contractual interest expense$2,673 $6,899 $5,365 $13,749 
Amortization of debt issuance costs211 219 418 428 
Total interest expense$2,884 $7,118 $5,783 $14,177 
The Company was in compliance with all financial debt covenants as of June 30, 2026.
Aggregate Maturities

The aggregate maturities of all debt at June 30, 2026 are as follows:
Years ending December 31Amount
2026 (for the remaining period)$1,875 
20277,500 
20287,500 
2029131,250 
$148,125