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Long-term Debt | 12 Months Ended
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Dec. 31, 2025
Long-term Debt [Abstract] |
Long-term Debt | Note 5: Long-term Debt Long-term debt, net of debt issuance costs, consisted of the following at December 31:
|  | 2025 |  | 2024
|  | (in thousands)
Total debt obligations |  | $ | 25,000 |  | $ | -
Less: current portion |  |  | - |  |  | -
Debt obligations, net of current portion |  | $ | 25,000 |  | $ | -
On September 30, 2022, Holdings and its operating subsidiary, The Tile Shop, and certain subsidiaries of each entered into a Credit Agreement with JPMorgan Chase Bank, N.A. and the lenders party thereto, including Fifth Third Bank (as amended, the “Credit Agreement”). The Credit Agreement provides the Company with a senior credit facility consisting of a $75.0 million revolving line of credit through September 30, 2027. Borrowings pursuant to the Credit Agreement initially bear interest at a rate per annum equal to: (i) Adjusted Term SOFR Rate (as defined in the Credit Agreement), plus a margin ranging from 1.25% to 1.75%; (ii) Adjusted Daily Simple SOFR (as defined in the Credit Agreement), plus a margin ranging from 1.25% to 1.75%; or (iii) the Alternate Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.25% to 0.75%. The margin is determined based on The Tile Shop’s Rent Adjusted Leverage Ratio (as defined in the Credit Agreement). Borrowings outstanding as of December 31, 2025 were SOFR-based interest rate loans. The SOFR-Based interest rate was 5.72% on December 31, 2025. The Credit Agreement is secured by virtually all of the assets of the Company, including, but not limited to, inventory, accounts receivable, equipment and general intangibles. The Credit Agreement contains customary events of default, conditions to borrowing and restrictive covenants, including restrictions on the Company’s ability to dispose of assets, engage in acquisitions or mergers, make distributions on or repurchases of capital stock, incur additional debt, incur liens or make investments. The Credit Agreement also includes financial and other covenants, including covenants to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of no less than 1.20 to 1.00 and a Rent Adjusted Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.50 to 1.00. The Company was not in compliance with the covenants as of December 31, 2025 but received a waiver by the lenders January 28, 2026, which put the Company in compliance with the covenants. The Company had $25.0 million of borrowings outstanding on its line of credit as of December 31, 2025. The Company has standby letters of credit outstanding related to its workers’ compensation and medical insurance policies. As of December 31, 2025, standby letters of credit totaled $1.2 million. As of December 31, 2025, there was $48.8 million available for borrowing on the revolving line of credit, which may be used for maintaining the Company’s existing stores, purchasing additional merchandise inventory, and general corporate purposes.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent + Details
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