XML 27 R17.htm IDEA: XBRL DOCUMENT v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt

Note 8. Debt

 

The Company’s debt is comprised of the following:

 

  

March 31,

2026

  

December 31,

2025

 
Revolving lines of credit  $522   $387 
Finance lease   4,127    41 
Other current debt   4,342    - 
Senior Secured Credit Facility   194,000    174,000 
Less: Deferred cost of financing   (2,732)   (2,799)
Total obligations under borrowing arrangements   200,259    171,629 
Less: Current portion of long-term debt and other current borrowings   5,873    427 
Long-term debt  $194,386   $171,202 

 

In September 2025, the Company entered into a new Senior Secured Credit Facility , transitioning from a term loan and revolving facility structure to a fully committed revolving facility structure which allowed the Company to (i) increase total committed borrowing capacity from $150 million to $500 million, (ii) reduce borrowing costs by approximately 25 basis points, and (iii) extend the initial maturity date by five years to December 2030. Borrowings under the new facility bear interest at the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25 % based on the Company’s net leverage ratio (previously 1.50 % over SOFR). The effective interest rate for the facility, including deferred issuance costs, is 6.98 % as of December 31, 2025. The Company incurred total costs and fees of $2,783 in lender fees which were capitalized as deferred financing costs, and are presented as a deduction from the related debt liability.

 

The transaction was accounted for as a debt extinguishment under ASC 470-50. Accordingly, the prior term-loan and revolving credit facilities were derecognized, and the new revolving facility was initially recognized at its principal amount, net of deferred financing costs. As a result, the Company recognized a loss on extinguishment of debt of $1,354, representing $1,302 for the write-off of the remaining unamortized deferred financing costs related to the prior term-loan and revolving credit facilities, and $52 of termination costs associated with closing the prior facility. Cash proceeds from the new facility and repayments of the extinguished debt are reflected within financing activities in the condensed consolidated statements of cash flows. Of the $2,783 of total fees incurred, $1,803 were deducted from the gross proceeds and presented net within “Proceeds from debt,” with the remaining $980 recorded as cash outflows classified under “Deferred financing costs and debt issuance fees” within financing activities. During the three months ended March 31, 2026, the Company drew down $35 million from its revolving credit facility and repaid $15 million.

 

Interest income (expense), net and deferred cost of financing is comprised of the following:

 

   2026   2025 
   Three months ended 
   March 31, 
   2026   2025 
Interest income (expense), net and deferred cost of financing:          
Interest expense   (2,528)   (1,048)
Deferred cost of financing   (152)   (283)
Derivative financial instrument loss   (343)   - 
Interest expense, net and deferred cost of financing:  $(3,023)  $(1,331)

 

Maturities of long-term debt and other current borrowings as of March 31, 2026, are as follows:

 

 

      
2026  $5,873 
2027   912 
2028   852 
2029   742 
2030   194,612 
Total  $202,991 

 

The Company’s loans have maturities ranging from several weeks to 5 years. Our credit facilities bore a weighted average interest rate of 5.14% as of March 31, 2026.

 

Finance Leases

 

As of March 31, 2026, the Company had right-of-use assets (“ROU assets”) of $4,082 included within Property, Plant and Equipment, and lease liabilities of $4,127 on its Condensed Consolidated Balance Sheet, of which $1,009 is presented within short-term debt and current portion of long-term debt and $3,119 is classified as long-term debt. These leases primarily relate to real estate, including showrooms, office space and industrial warehouses, as well as computing equipment. Certain lease agreements include options to extend the lease term; however, the Company does not consider these options reasonably certain of exercise.

 

The Company recognizes amortization of ROU assets and interest expense on lease liabilities in its Condensed Consolidated Statements of Income. During the three months ended March 31, 2026, the Company recorded ROU asset amortization of $258, and interest expense of $26, respectively.

 

Cash paid for amounts included in the measurement of lease liabilities was $354 for the three months ended March 31, 2026, consisting of $26 classified as operating cash flows and $328 classified as financing cash flows. Non-cash additions to ROU assets in exchange for lease liabilities were $2,793 during the period.

 

Future minimum lease payments for the years ended March 31, of each year are as follows:

 

      
2026  $1,159 
2027   1,026 
2028   928 
2029   784 
2030 and thereafter   625 
Total undiscounted cashflows   4,522 
Less: Imputed Interest   (395)
Present value of lease liability  $4,127 

 

As of March 31, 2026, the weighted-average remaining lease term for finance leases was 4.2 years and the weighted-average discount rate was 4.2%.