Record quarter materially beats expectations, with cash flow doing the heavy lifting

The balance sheet is materially healthier than the market likely expected from the prior quarter. Net debt fell to $99.6 million from $185.3 million at December 31, 2025, while total debt declined to $274.6 million from $310.1 million and cash rose to $175.0 million (Reconciliation to Net Debt; Balance Sheet). The net read is clearly positive: a substantial earnings and revenue beat accompanied by expanding margins, strong cash generation, and lower leverage, with the main qualification being that part of the cash-flow surge came from working-capital timing.