Derivative and Hedging Instruments

12 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging Instruments

Derivative and Hedging Instruments

The Company is subject to interest rate risk as a result of required interest payments of the Inventory Financing Facility and A&R Credit Facility. The Company has two interest rate swap agreements which are designed to provide a hedge against changes in variable rate cash flows regarding fluctuations in the SOFR and Term SOFR rates which are used in calculating interest payments. The following table provides information on the attributes of each swap as of September 30, 2025:

Inception Date	Hedged Rate	Notional Value at Inception (in thousands)		Maturity Date
September 2024	SOFR	$	200,000	September 2027
September 2024	Term SOFR	$	200,000	September 2027

The fair value of the cash flow swaps is calculated using an income approach. The income approach involves using the quoted price for economically equivalent inputs or valuation methodologies, assumptions and inputs, which in the case of projected future cash flows, discount such cash flows to a single net present value amount. The following table provides information regarding the fair value of the interest rate swap agreements and the impact on the consolidated balance sheets at ($ in thousands):

Balance Sheet Location	September 30, 2025		September 30, 2024
Prepaid expenses and other current assets	$	532	$	1,560
Other long-term liabilities	(1,448)		(3,626)
Net asset (liability)	$	(916)	$	(2,066)

The interest rate swaps qualify for cash flow hedge accounting treatment. The interest rate swaps are marked to market each reporting date and any unrealized gains or losses, and the related income tax effects, are included in accumulated other comprehensive loss and reclassified into earnings in the same period during which the hedged transactions affect earnings. Information about the effect of the interest swap agreements in the accompanying consolidated statements of operations and consolidated statements of comprehensive loss, is as follows ($ in thousands):

Year Ended September 30,	Gain or (Loss) Recognized in Accumulated Other Comprehensive Loss (effective Portion)		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss to Earnings	Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss to Earnings
2025	$	4,926	Interest expense – other and Interest expense – floor plan	$	3,776
2024	(2,066)		Interest expense – other and Interest expense – floor plan	—

	Location and Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss to Earnings
Year Ended September 30,	Interest expense – other		Interest expense – floor plan
2025	$	1,806	$	1,970
2024	—		—

As of September 30, 2025, the amount expected to be reclassified out of accumulated other comprehensive loss into earnings during the next 12 months is a gain of $0.5 million. The ultimate amount recognized will vary based on fluctuations of interest rates through the maturity dates.