Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. FAIR VALUE measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Interest Rate Swaps—In February 2025, the Company entered into three interest rate swap agreements to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt (see Note 14). The fair value of the interest rate swap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore was classified within Level 2 of the fair value hierarchy as of September 30, 2025.

The Company does not designate its interest rate swap agreements as hedging instruments and records the changes in fair value within other income (expense)—net on the condensed consolidated statements of operations and comprehensive (loss) income. As of September 30, 2025, the interest rate swap agreements had a fair value liability of $7.5 million. The fair value of the interest rate swap agreements is classified within other liabilities in the accompanying condensed consolidated balance sheet as of September 30, 2025.

Interest Rate Caps—In August 2022, the Company entered into two interest rate cap agreements to reduce its exposure to increases in interest rates applicable to its floating rate long-term debt (see Note 14). The fair value of the interest rate cap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore was classified within Level 2 of the fair value hierarchy as of December 31, 2024. The interest rate cap agreements expired in July 2025.

The Company does not designate its interest rate cap agreements as hedging instruments and recorded the changes in fair value within other income (expense)—net on the condensed consolidated statements of operations and comprehensive (loss) income. As of December 31, 2024, the interest rate cap agreements had a fair value of $1.0 million. The fair value of the interest rate cap agreements was classified within other current assets in the accompanying condensed consolidated balance sheets as of December 31, 2024.

The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 (in thousands):

	Fair Value		Level 1		Level 2		Level 3
Liabilities
Interest rate swaps		7,466		—		7,466		—
Total liabilities	$	7,466	$	—	$	7,466	$	—

The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):

	Fair Value		Level 1		Level 2		Level 3
Assets
Interest rate caps		975		—		975		—
Total assets	$	975	$	—	$	975	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis—The Company has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include those associated with acquired

businesses, including goodwill and other intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired. The Company did not recognize any impairment charges related to these assets during the three and nine months ended September 30, 2025 and 2024.

Fair Value of Other Financial Instruments—The following table presents the carrying amounts, net of debt discount, and the estimated fair values of the Company’s financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands):

	September 30, 2025				December 31, 2024
	Carrying		Estimated		Carrying		Estimated
Description	Amount		Fair Value		Amount		Fair Value
Term Loan, including current maturities	$	992,435	$	989,769	$	774,825	$	776,970

The fair value of the Company’s long-term debt, including current maturities, was estimated based on quoted market prices for the same or similar instruments and fluctuates with changes in applicable interest rates among other factors. The fair value of long-term debt is classified as a Level 2 measurement in the fair value hierarchy and is established based on observable inputs in less active markets.