Fair Value
Fair Value Measurements
Recurring Fair Value Measurements
Financial assets and liabilities measured at fair value on a recurring basis were as follows:
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| December 31, 2025 | | December 31, 2024 |
| (in thousands) | Level 1 | Level 2 | Level 3 | Total | | Level 1 | Level 2 | Level 3 | Total |
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| Liabilities: | | | | | | | | | |
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| Contingent Consideration | $ | — | | $ | — | | $ | 1,908 | | $ | 1,908 | | | $ | — | | $ | — | | $ | 1,942 | | $ | 1,942 | |
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| Total | $ | — | | $ | — | | $ | 1,908 | | $ | 1,908 | | | $ | — | | $ | — | | $ | 1,942 | | $ | 1,942 | |
Contingent consideration is included within Other noncurrent liabilities on the Consolidated Balance Sheets. Refer to Note 17 — “Commitments and Contingencies” for additional information about contingent consideration.
Other Fair Value Disclosures for Financial Instruments
HUF Funds - restricted cash and Certificates of Deposit - Restricted are presented on the Restricted cash line item of the Company’s Consolidated Balance Sheets and are valued at amortized cost, which approximates fair value.
The fair value of outstanding long-term debt is estimated based on interest rates considered available for instruments of similar terms and remaining maturities. Certain premium costs associated with the early settlement of long-term debt are not taken into consideration in determining fair value. These fair value measurements are classified within Level 2 of the fair value hierarchy. The carrying amount and estimated fair values of these financial instruments were as follows:
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| December 31, 2025 | December 31, 2024 |
| (in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value |
| Long-term debt | $ | 133,698 | | $ | 130,840 | | $ | 118,518 | | $ | 118,702 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.