Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2025, the Company had eleven interest rate swaps with a total notional amount of $290.0 million that are used to manage its interest rate risk and fix the SOFR component on the term loans of the Credit Facilities:


Notional Amount ($ in thousands)	Fixed Rate(1)	Effective Date	Maturity Date
$50,000	2.191%	May 2022	January 2027
$25,000	4.137%	May 2022	February 2028
$25,000	4.137%	May 2022	February 2028
$25,000	4.710%	July 2022	February 2028
$40,000	4.852%	December 2022	February 2028
$25,000	5.656%	July 2023	January 2027
$10,000	5.969%	September 2023	February 2028
$40,000	5.191%	October 2024	February 2028
$10,000	5.472%	November 2024	February 2028
$10,000	4.755%	September 2025	January 2030
$30,000	4.723%	September 2025	January 2030

Explanatory Note:

(1)Reflects the all-in effective interest rate for the specified portion of the Term Loans hedged by the interest rate swaps.

The Company’s objectives in using the interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company uses the interest rate swaps as part of its interest rate risk management strategy. The interest rate swaps are designated as cash flow hedges, with any gain or loss recorded in “Accumulated other comprehensive income” on the Consolidated Balance Sheets and subsequently reclassified into interest expense as interest payments are made on the Credit Facilities. During the next twelve months, the Company estimates that an additional $1.2 million will be reclassified from “Accumulated other comprehensive income” as a decrease to interest expense.

The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as cash flow hedges.

The table below presents the effect of the Company’s interest rate swap derivative instruments in the Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2025 and 2024 (in thousands):


	Years Ended December 31,
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps)	2025		2024
Amount of (loss) gain recognized on derivative in "Accumulated other comprehensive income"	$	(2,048)	$	5,809
Amount of income reclassified from "Accumulated other comprehensive income" into interest expense	$	3,428	$	5,074

"Interest expense, net" presented in the Consolidated Statements of Operations and Comprehensive Income, in which the effects of cash flow hedges are recorded, totaled $16.2 million and $12.8 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, the Company also had derivatives in a net liability position and did not post any collateral related to these agreements. If the Company had breached any of these provisions as of December 31, 2025, it could have been required to settle its obligations under the agreements of any interest rate swap in a net liability position for approximately $1.1 million, which is at their termination value.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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