Employee Compensation and Benefits

3 Months Ended

Mar. 31, 2026

Compensation Related Costs [Abstract]

Employee Compensation and Benefits

Employee Compensation and Benefits

Deferred Compensation

Effective January 1, 2023, the Company established a deferred compensation plan for non-partner employees holding the title of Director who are eligible once they have five or more years of service as a Director. On an annual basis, eligible participants are granted an award payable in equal installments starting in March of the following five years. The annual award is based on each eligible participant’s years of service at the Director level and on income allocated to the Management Holdcos prior to the IPO, and to Aggregator after the IPO. The plan can be terminated at any time by the Company at its sole discretion, and payment is contingent upon the continued employment of eligible participants during the five-year payment period. The Company recognized $0.5 million, and $0.5 million of expense in cost of services related to this program for the three months ended March 31, 2026 and 2025 respectively. The Company recognized $0.1 million, and $0.1 million of expense in sales, general, and administrative related to this program for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026 and December 31, 2025, $1.5 million and $2.4 million, respectively, was included in other current liabilities for this program.

The Company pays certain client-serving individuals variable incentive compensation that is typically determined as a fixed bonus percentage based on revenues collected. The Company recognized $0.8 million and $0.3 million of compensation expense in cost of services during the three months ended March 31, 2026 and 2025, respectively. The Company included $1.2 million and $3.5 million in accrued payroll and benefits as of March 31, 2026 and December 31, 2025, respectively.

Defined Contribution Plan

The Company maintains a qualified 401(k) Profit Sharing Plan (the “401(k) Plan”) for eligible employees. In 2026 and 2025, employees could contribute a percentage of their pretax compensation subject to IRS limitations, and the Company matched the participants’ contribution up to 25% of the first 6% of each participant’s contribution (or 1.5% of their total compensation). Total matching contributions made to the 401(k) Plan for the three months ended March 31, 2026 and 2025 was $1.3 million and $1.1 million, respectively. The related expense is recognized as either cost of services or sales, general, and administrative expense based on the nature of service of eligible employees.