v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has one reportable segment. Refer to Note 3 for revenue by geographic area and revenue by major product and service lines. Refer to the Condensed Consolidated Balance Sheets for total assets. Refer to the Condensed Consolidated Statements of Cash Flows for total expenditures for additions to long-lived assets.
The Company defines EBITDA as net income plus interest (income) expense, income tax expense (benefit), depreciation and amortization. The Company reflects further adjustments to EBITDA (“Adjusted EBITDA”) to exclude certain non-cash items and the effect of what the Company considers transactions or events not related to its core and ongoing business operations. The measure of profit or loss used by the Chief Operating Decision Maker ("CODM") to evaluate operating segment performance and allocate resources is Adjusted EBITDA. Adjusted EBITDA is used to determine capital allocation between operating segments and certain aspects of management's compensation. Management believes that evaluating operating segment performance excluding such items is meaningful because it provides insight with respect to the intrinsic and ongoing operating results of the Company. The Company considers Adjusted EBITDA to be an important metric because it reflects the business performance of the segment, inclusive of indirect costs.
The following table sets forth certain information regarding significant revenue and expense categories for the three and nine months ended September 30, 2026 and 2025:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Revenues:
Leasing and services revenue:
Unit leasing and other rental-related$347,323 $334,007 $1,022,008 $1,014,943 
VAPS and third-party leasing104,378 100,217 304,899 296,587 
Delivery revenue58,956 53,009 165,566 157,428 
Installation revenue61,910 45,508 190,666 138,202 
Sales revenue:
New units14,377 18,370 37,958 62,427 
Rental units14,394 15,730 41,020 45,888 
Total revenues601,338 566,841 1,762,117 1,715,475 
Less:(a)
Costs of leasing and services:
Unit leasing and other rental-related82,155 78,444 247,729 227,285 
VAPS and third-party leasing20,685 19,107 59,251 53,674 
Delivery52,386 43,717 145,449 129,353 
Installation50,438 38,341 150,938 114,655 
Costs of sales:
New units8,313 13,806 23,580 42,556 
Rental units7,415 8,174 22,283 23,868 
Employee SG&A expense(b)
72,202 67,279 216,615 203,015 
Other segment items(c)
74,193 54,666 223,823 200,064 
Adjusted EBITDA$233,551 $243,307 $672,449 $721,005 
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(b) Employee SG&A expense consists of salaries and wages, bonuses, commissions, payroll taxes, and employee benefits.
(c) Other segment items consist of service agreements, professional fees, real estate and occupancy costs, travel, bad debt expense, marketing and advertising, taxes, and other miscellaneous expenses.
The following table presents reconciliations of the Company’s net income to Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Net income$51,575 $43,332 $126,671 $134,326 
Income tax expense19,697 17,008 51,672 54,902 
Loss on extinguishment of debt1,777 — 1,777 — 
Interest expense, net53,197 58,466 160,283 175,912 
Depreciation and amortization97,594 108,058 285,284 317,782 
Currency losses, net36 100 453 244 
Restructuring costs, lease impairment expense and other related charges1,360 (21)18,115 886 
Integration and transaction costs51 1,149 130 2,921 
Stock compensation expense7,503 9,964 22,505 26,678 
Other(a)
761 5,251 5,559 7,354 
Adjusted EBITDA$233,551 $243,307 $672,449 $721,005 
(a) For the nine months ended September 30, 2026, other included $1.8 million in non-equity executive transition costs. For both the three and nine months ended September 30, 2025, other included $1.5 million in costs to implement the Company's real estate exit initiatives prior to approval of the Network Optimization Plan and $1.3 million in non-equity executive transition costs.