v3.26.3
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial Instruments—ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The inputs to the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.

The Company considers the carrying values of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses to approximate fair value for these financial instruments due to the short maturities of these instruments. The Company’s interest rate swaps, foreign currency forward contract, embedded derivatives, and any acquisition’s contingent consideration are carried at fair value and determined according to the fair value hierarchy above.

The following table presents the Company's financial instruments measured at fair value on a recurring basis, by level within the fair value hierarchy:

September 30, 2026

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap(1)

$

1,844

 

 

$

—

 

 

$

1,844

 

 

$

—

 

Foreign currency forward contract(2)

 

252

 

 

 

—

 

 

 

252

 

 

 

—

 

Total Assets

$

2,096

 

 

$

—

 

 

$

2,096

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Business acquisitions contingent consideration, current

$

6,182

 

 

$

—

 

 

$

—

 

 

$

6,182

 

Total Liabilities

$

6,182

 

 

$

—

 

 

$

—

 

 

$

6,182

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Business acquisitions contingent consideration, current

$

14,883

 

 

$

—

 

 

$

—

 

 

$

14,883

 

Business acquisitions contingent consideration, long-term

 

2,755

 

 

 

—

 

 

 

—

 

 

 

2,755

 

Interest rate swap(1)

 

429

 

 

 

—

 

 

 

429

 

 

 

—

 

Total Liabilities

$

18,067

 

 

$

—

 

 

$

429

 

 

$

17,638

 

_____________________________

(1) As of September 30, 2026, $1.2 million and $0.6 million are included in prepaid and other current assets and other assets, respectively, in the unaudited condensed consolidated statement of financial position. As of December 31, 2025, the amount is included in other non-current liabilities in the audited condensed consolidated statement of financial position.

(2) As of September 30, 2026, the amount is included in prepaid and other current assets in the unaudited condensed consolidated statement of financial position.

The estimated fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument.

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis:

 

Interest Rate Swap

 

 

Foreign Currency Forward Contract

 

 

Total Assets

 

 

Business Acquisitions Contingent Consideration, Current

 

 

Business Acquisitions Contingent Consideration, Long-term

 

 

Conversion Option Related to Series A-2 Preferred Stock

 

 

Interest Rate Swap

 

 

Total Liabilities

 

Balance as of December 31, 2024

$

1,544

 

 

$

—

 

 

$

1,544

 

 

$

26,872

 

 

$

6,255

 

 

$

20,224

 

 

$

—

 

 

$

53,351

 

Changes in fair value included in earnings

 

(1,544

)

 

 

—

 

 

 

(1,544

)

 

 

(231

)

 

 

1,075

 

 

 

(20,224

)

 

 

286

 

 

 

(19,094

)

Payment of contingent consideration payable

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,100

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,100

)

Reclass of long term to short term contingent liabilities

 

—

 

 

 

—

 

 

 

—

 

 

 

(480

)

 

 

480

 

 

 

—

 

 

 

—

 

 

 

—

 

Measurement period adjustment

 

—

 

 

 

—

 

 

 

—

 

 

 

1,548

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,548

 

Balance as of September 30, 2025

$

—

 

 

$

—

 

 

$

—

 

 

$

15,609

 

 

$

7,810

 

 

$

—

 

 

$

286

 

 

$

23,705

 

Balance as of December 31, 2025

$

—

 

 

$

—

 

 

$

—

 

 

$

14,883

 

 

$

2,755

 

 

$

—

 

 

$

429

 

 

$

18,067

 

Changes in fair value included in earnings

 

1,844

 

 

 

252

 

 

 

2,096

 

 

 

205

 

 

 

(902

)

 

 

—

 

 

 

(429

)

 

 

(1,126

)

Payment of contingent consideration payable

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,759

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,759

)

Reclass of long term to short term contingent liabilities

 

—

 

 

 

—

 

 

 

—

 

 

 

1,853

 

 

 

(1,853

)

 

 

—

 

 

 

—

 

 

 

—

 

Balance as of September 30, 2026

$

1,844

 

 

$

252

 

 

$

2,096

 

 

$

6,182

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,182