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Interest Rate Cap | 12 Months Ended
--- | ---
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Interest Rate Cap | Interest Rate Cap The Company is subject to market risk exposure arising from changes in interest rates on its term loan, which bears interest at a rate that is indexed to one-month Term SOFR. The Company’s objective in using an interest rate derivative is to mitigate its exposure to increases in interest rates. The Company had an interest rate cap which matured on September 30, 2024. During the three months ended March 31, 2025, the Company entered into a new interest rate cap with a scheduled maturity of March 31, 2028. The interest rate cap limits the Company’s exposure to increases in the variable rate index to 4.5% on $1.0 billion of principal outstanding under the term loan, as the interest rate cap provides for payments from the counterparty when interest rates rise above 4.5%. The interest rate cap has a deferred premium that the Company will pay monthly over the term of the agreement. The annual premium is equal to 0.3300% of the notional amount, or approximately $3.3 million. The interest rate cap has been designated as a cash flow hedge and is highly effective at offsetting the changes in cash outflows when the variable rate index exceeds 4.5%. Changes in the fair value of the interest rate cap, net of tax, are recognized in other comprehensive loss and reclassified out of accumulated other comprehensive loss and into interest expense when the hedged interest obligations affected earnings. The following table outlines the changes in accumulated other comprehensive income (loss), net of tax, during the periods presented:
|  | For the Year Ended December 31,
|  | 2023 |  | 2024 |  | 2025
|  | (in thousands)
Balance as of January 1 |  | $ | 88,602 |  |  | $ | 42,907 |  |  | $ | — |
Gain (loss) on interest rate cap contract |  | 15,783 |  |  | 5,723 |  |  | (6,677) |
Amounts reclassified from accumulated other comprehensive income (loss) |  | (61,478) |  |  | (48,630) |  |  | 273 |
Balance as of December 31 |  | $ | 42,907 |  |  | $ | — |  |  | $ | (6,404) |
The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) are as follows:
|  | For the Year Ended December 31,
Statement of Operations |  | 2023 |  | 2024 |  | 2025
|  | (in thousands)
Gains (losses) included in interest expense |  | $ | 80,766 |  |  | $ | 63,987 |  |  | $ | (359) |
Income tax benefit (expense) |  | (19,288) |  |  | (15,357) |  |  | 86 |
Amounts reclassified from accumulated other comprehensive income (loss) |  | $ | 61,478 |  |  | $ | 48,630 |  |  | $ | (273) |
The Company expects that approximately $2.8 million of estimated pre-tax losses will be reclassified from accumulated other comprehensive loss into interest expense within the next twelve months. Refer to Note 11 – Fair Value of Financial Instruments for information on the fair value of the Company’s interest rate cap contract and its balance sheet classification.

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