FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The Financial Accounting Standards Board’s authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. Assets and liabilities presented at fair value in our Consolidated Balance Sheets are generally categorized as follows:

Level 1:Quoted prices in active markets for identical assets or liabilities.

Level 2:Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3:Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Such assets and liabilities may have values determined using pricing models, discounted cash flow methodologies, or similar techniques, and include instruments for which the determination of fair value requires significant management judgment or estimation.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy our assets and liabilities that were recorded at fair value as of September 30, 2025:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Fair Value as of September 30, 2025
	Level 1		Level 2		Level 3		Total
Assets (Liabilities):
Equity securities	$	2,721	$	—	$	—	$	2,721
Lumber derivative contracts	(3)		—		—		(3)
BLL acquisition related earnout	—		—		(229)		(229)
Total	$	2,718	$	—	$	(229)	$	2,489

The table below presents a reconciliation for Level 3 liabilities for the period ended September 30, 2025. The Level 3 liabilities consist of an earnout liability associated with SOC's acquisition of Big Lake Lumber (“BLL”) in 2023. The change in the Level 3 liability during the period was primarily due to additional accruals recognized. These changes are included in "Purchases, issuances, and settlements (net)" in the Level 3 rollforward below.

	2025
Acquisition value at August 21, 2025	$	201
Additions (new accruals recognized)	28
Balance as at September 30, 2025	$	229

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

Certain assets acquired and liabilities assumed in connection with the SOC acquisition were measured at fair value on a nonrecurring basis as of the acquisition date.

Additional information regarding the valuation methodologies and assumptions used in determining these fair values is included in Note 5 – Acquisitions, which presents the allocation of purchase consideration and related fair value measurements required under ASC 805, Business Combinations.

No other assets or liabilities were measured at fair value on a nonrecurring basis during the period

Equity Securities

The investment in equity securities consists of common stock of publicly traded companies. The fair value of these securities is based on the closing prices observed on September 30, 2025, and is recorded in “Investments in equity securities” in the condensed Consolidated Balance Sheets.

Gains and losses from investments in equity securities are recorded in other income (expense) in the condensed Consolidated Statements of Operations and included the following for the period ended September 30, 2025.

	Three and Nine Months Ended September 30,
	2025
Unrealized loss on equity securities	$	(75)
Unrealized gain on equity securities	41
Realized gain on equity securities	11
Total loss on equity securities	$	(23)

Lumber Derivative Contracts

We may enter into lumber derivative contracts in order to protect our gross profit margins from fluctuations caused by lumber price volatility. Such contracts, which are generally entered into to protect the gross margins on our wall panel contracts at EdgeBuilder and Glenbrook Building Supply, Inc. (“Glenbrook” and referred to jointly with EdgeBuilder as “EBGL”), are recorded within current assets or liabilities in the Condensed Consolidated Balance Sheets. As of September 30, 2025, we had a net long (buying) position of 220,000 board feet under 8 lumber derivatives contracts with a November 30, 2025 expiration date.

Gains and losses from lumber derivative contracts are recorded in the cost of revenues in the Condensed Consolidated Statements of Operations and included the following for the period ended September 30, 2025:

	Three and Nine Months Ended September 30,
	2025
Unrealized loss on lumber derivatives	$	(30)
Realized loss on lumber derivatives	(32)
Total loss on lumber derivatives	$	(62)