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Note 6 - Indebtedness | 3 Months Ended
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Jun. 30, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] | Note 6. Indebtedness Credit Facility Our senior secured credit agreement, as previously amended, includes:
(i) |  | A revolving credit facility with an aggregate principal amount of up to $125,000 (the "Revolver"),
(ii) |  | A term loan with a maximum principal amount of $75,000, which is subject to escalating quarterly principal payments (the "Term Loan"),
(iii) |  | A swingline loan with an aggregate principal amount not exceeding $5,000, and
(iv) |  | Letters of credit with an aggregate stated amount not exceeding $2,500 at any time.
We refer to the agreement in whole as the “Credit Facility.” The Credit Facility matures in April 2029 and allows us to use proceeds from borrowings to redeem some or all of our Notes. Amounts borrowed under the Credit Facility bear interest at either a base rate or a SOFR rate plus an applicable spread ranging from 1.5% to 3.5%, depending on our total net leverage ratio. The weighted average interest rate on borrowings under the Credit Facility as of June 30, 2025 was 7.2%. The financial covenants in the Credit Facility include a maximum leverage ratio of 4.0 to 1.0 on each of the testing dates between March 31, 2025 and March 31, 2026 and 3.5 to 1.0 on each testing date thereafter. The Credit Facility also stipulates a minimum fixed charge coverage ratio of 1.25 to 1.0 and a maximum senior net leverage ratio of 3.5 to 1. Other covenants include restrictions on our ability to incur debt, grant liens, make fundamental changes to our business as defined in the contract, engage in certain transactions with affiliates, or conduct asset sales. As of June 30, 2025, we were in compliance with all covenants under the Credit Facility. Term Loan We borrowed $75,000 under the Term Loan on April 5, 2024, to fund the privately negotiated repurchases of a portion of our Notes (see “Convertible Notes” below). During the three months ended June 30, 2025, we made required quarterly principal payments on the Term Loan of $938. We are required to make quarterly principal payments on the Term Loan. For the following fiscal years ending March 31, future debt payments on the Term Loan are required as follows:
Fiscal Year |  | Amount |
Remainder of 2026 |  | $ | 2,813 |
2027 |  |  | 5,625 |
2028 |  |  | 5,625 |
2029 |  |  | 7,500 |
2030 |  |  | 48,750 |
Total principal remaining |  | $ | 70,313 |
The net carrying amount of the Term Loan was as follows:
|  | June 30, 2025 |  |  | March 31, 2025 |
Term Loan |  | $ | 70,313 |  |  | $ | 71,250 |
Less: discount and debt issuance costs |  |  | (561 | ) |  |  | (598 | )
Less: current portion |  |  | (4,219 | ) |  |  | (3,750 | )
Noncurrent portion |  | $ | 65,533 |  |  | $ | 66,902 |
We recognized interest expense on the Term Loan as follows:
|  | Three Months Ended June 30, |
|  | 2025 |  |  | 2024 |
Interest expense (7.2% and 8.4% as of June 30, 2025 and 2024, respectively) |  | $ | 1,292 |  |  | $ | 1,439 |
Amortization of discount and debt issuance costs |  |  | 37 |  |  |  | 35 |
Total interest and amortization of discount and debt issuance costs |  | $ | 1,329 |  |  | $ | 1,474 |
Revolver As of June 30, 2025, the outstanding balance under the Revolver was $14,000, and $111,000 was available for borrowing. Subsequent to June 30, 2025, we repaid an additional $3,000 on the Revolver. We are obligated to pay quarterly unused commitment fees of between 0.20% and 0.35% of the Revolver’s aggregate principal amount, based on our leverage ratio. In July 2025, we paid $77 in unused commitment fees for the three months ended June 30, 2025. The balance of unamortized customary lender fees related to the Revolver was $1,128 and $1,203 as of June 30, 2025 and March 31, 2025, respectively. Convertible Notes On August 12, 2019, we issued an aggregate principal amount of $172,500 of the Notes. The net proceeds from the Notes, after deducting underwriting discounts and commissions and other related offering expenses payable by us, were approximately $167,056. The Notes mature on August 15, 2025, unless earlier repurchased or converted, and bear interest at a rate of 1.375% payable semi-annually in arrears on February 15 and August 15 each year. The Notes are initially convertible, subject to certain conditions, at a conversion rate of 3.5273 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $283.50 per share of common stock. On April 5, 2024, we entered into separate, privately negotiated transactions with certain holders of the Notes to repurchase $75,000 aggregate principal amount of the Notes for an aggregate repurchase price of $71,250 in cash, plus accrued and unpaid interest of $160. We accounted for the partial repurchase of the Notes as a debt extinguishment, which resulted in the recognition of a gain on extinguishment of $2,887 in other income on the unaudited Condensed Consolidated Statements of Income during the three months ended June 30, 2024. As of June 30, 2025, $97,500 in aggregate principal amount of the Notes remained outstanding, which we intend to pay using a combination of cash on hand and a draw on our Revolver. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock, or a combination of both. Under the terms of the indenture, the Notes became convertible April 15, 2025, and will remain convertible until the close of business on the second scheduled trading day immediately preceding the maturity date ( August 13, 2025). No Notes have been converted as of the date of this filing. As of June 30, 2025, the Notes were classified as a current liability on our unaudited Condensed Consolidated Balance Sheets. The if-converted value of the Notes did not exceed the principal balance as of June 30, 2025. The net carrying amount of the Notes was as follows:
|  | June 30, 2025 |  |  | March 31, 2025 |
Principal outstanding |  | $ | 97,500 |  |  | $ | 97,500 |
Unamortized debt issuance costs |  |  | (68 | ) |  |  | (203 | )
Net carrying value |  | $ | 97,432 |  |  | $ | 97,297 |
We recognized interest expense on the Notes as follows:
|  | Three Months Ended June 30, |
|  | 2025 |  |  | 2024 |
Coupon interest expense at 1.375% |  | $ | 335 |  |  | $ | 367 |
Amortization of debt issuance costs |  |  | 135 |  |  |  | 145 |
Total interest and amortization of debt issuance costs |  | $ | 470 |  |  | $ | 512 |
The effective interest rate on the Notes is approximately 1.9%.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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