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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses interest rate derivative contracts to manage its exposure to changes in interest rates on its variable rate debt. These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in Accumulated Other Comprehensive Income (“AOCI”) and the change is reflected as cash flow hedge changes in fair value in the supplemental disclosures of non-cash investing and financing activities in the consolidated statements of cash flows.

Amounts will subsequently be reclassified to earnings when the hedged item affects earnings. The Company does not enter into derivative contracts for speculative or trading purposes and does not have derivative netting arrangements.

The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company evaluates counterparty credit risk through monitoring the creditworthiness of counterparties, which includes review of debt ratings and financial performance. To mitigate credit risk, the Company enters into agreements with counterparties it considers credit-worthy, such as large financial institutions with favorable credit ratings.
The following table summarizes the terms and fair values of the Company’s interest rate derivative contracts that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Number of Instruments
Aggregate Notional Value
Fair Value of Asset (Liability)(2)
Associated Debt Instrument
December 31, 2025December 31, 2024
Hedge Fixed Rate(1)
Maturity Dates
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
2028 Term Loan
332.63%February 11, 2028$200,000 $200,000 $2,620 $7,971 
2029 Term Loan
443.74%January 3, 2029250,000 250,000 (3,198)2,165 
2030 Term Loan A
442.40%January 23, 2027175,000 175,000 1,806 5,629 
2030 Term Loan B
773.87%January 2, 2030175,000 175,000 (3,467)661 
2031 Term Loan8—3.44%March 1, 2031200,000 — (185)— 
2032 Term Loan8—3.42%September 1, 2032200,000 — 1,140 — 
Total
34 18 $1,200,000 $800,000 $(1,284)$16,426 
(1) Represents the weighted-average hedge fixed rate of the derivative contracts for each associated debt instrument and excludes the associated applicable margin as described in “Note 6 – Debt.”
(2) Derivative contracts in asset positions are included within other assets, net and derivative contracts in liability positions are included within accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets as of December 31, 2025 and 2024.

The following table presents the effect of the Company’s interest rate swaps in the consolidated statements of operations and comprehensive loss (in thousands):

Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships202520242023202520242023
Interest Rate Products$(8,823)$19,408 $1,729 Interest expense, net$6,028 $18,139 $16,551 

The Company did not exclude any amounts from the assessment of hedge effectiveness for the years ended December 31, 2025, 2024, and 2023. During the next twelve months, the Company estimates that an additional $1.6 million will be reclassified as an increase to interest expense.