COVENANT LOGISTICS GROUP, INC. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures We have established disclosure controls and procedures to ensure that material information relating to us, including our consolidated subsidiaries, is made known to the officers who certify our financial reports and to other members of senior management and the Board. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2025. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even effective internal control over financial reporting can only provide reasonable assurance of achieving its control objectives. We have confidence in our internal controls and procedures. Nevertheless, our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure procedures and controls or our internal controls will prevent all errors or intentional fraud. An internal control system, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of such internal controls are met. Further, the design of an internal control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. As a result of the inherent limitations in all internal control systems, no evaluation of controls can provide absolute assurance that all our control issues and instances of fraud, if any, have been detected. Management's Annual Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Management, including our Chief Executive Officer and Chief Financial Officer under the oversight of our Board, assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, our management used the criteria for effective internal control over financial reporting described in “Internal Control-Integrated Framework (2013),” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, management believes that, as of December 31, 2025, our internal control over financial reporting is effective based on those criteria. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with GAAP. A company’s internal control over financial reporting includes those policies and procedures that: ● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; ● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and ● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. An internal control system, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of such internal controls are met. Further, the design of an internal control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. As a result of the inherent limitations in all internal control systems, no evaluation of controls can provide absolute assurance that all our control issues and instances of fraud, if any, have been detected. We acquired the assets that are now operating as Star on October 10, 2025 and management excluded from its assessment of the effectiveness of internal control over financial reporting as of December 31, 2025, Star's internal control over financial reporting associated with total assets representing approximately 4.2% and total revenues representing approximately 2.6%, of such amounts in the consolidated financial statements as of and for the year ended December 31, 2025. The Company's internal control over financial reporting as of December 31, 2025, has been audited by Grant Thornton, LLP, an independent registered public accounting firm as stated in its report which is included herein. 44 Table of Contents Changes in Internal Control Over Financial Reporting There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the fourth quarter of fiscal year 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. ITEM 9B. OTHER INFORMATION On November 21, 2025 , James S. Grant , our Executive Vice President and Chief Financial Officer , adopted a Rule 10b5 - 1 trading plan, that is intended to satisfy the affirmative defense of Rule 10b5 - 1 (c) under the Exchange Act, pursuant to which up to 22,388 shares of our Class A common stock may be sold. The plan will terminate on May 28, 2027, subject to early termination for certain specified events set forth in the plan. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 45 Table of Contents PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE The information required by this Item will be included in the Company's definitive proxy statement to be filed with the SEC within 120 days after December 31, 2025 , in connection with the solicitation of proxies for the Company's 2026 Annual Meeting of Stockholders (the "2026 Proxy Statement"), and is incorporated herein by reference. ITEM 11. EXECUTIVE COMPENSATION The information required by this Item will be included in the 2026 Proxy Statement, and is incorporated herein by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The following table provides certain information, as of December 31, 2025, with respect to our compensation plans and other arrangements under which shares of our Class A common stock are authorized for issuance. Equity Compensation Plan Information Plan category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted average exercise price of outstanding options, warrants and rights Number of securities remaining eligible for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders 2,296,960 (1) $ 9.20 1,836,598 Equity compensation plans not approved by security holders - - - Total 2,296,960 $ 9.20 1,836,598 (1) Represents unvested restricted shares and unvested stock options granted under the 2006 Omnibus Incentive Plan, as amended. The weighted average stock price on the date of grant for outstanding restricted share awards was $21.17, which is not reflected in column (b), because restricted share awards do not have an exercise price. The amount in column (b) represents the weighted average exercise price of the outstanding unvested stock options. The remaining information required by this Item will be included in the 2026 Proxy Statement, and is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this Item will be included in the 2026 Proxy Statement, and is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The remaining information required by this Item will be included in the 2026 Proxy Statement, and is incorporated herein by reference. 46 Table of Contents PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) 1. Financial Statements. Our audited consolidated financial statements are set forth at the following pages of this report: Report of Independent Registered Public Accounting Firm - Opinion on the Consolidated Financial Statements (PCAOB ID Number 248 ) 51 Report of Independent Registered Public Accounting Firm - Opinion on Internal Control Over Financial Reporting 52 Report of Independent Registered Public Accounting Firm - Opinion on the Consolidated Financial Statements (PCAOB ID Number 430) 53 Consolidated Balance Sheets 54 Consolidated Statements of Operations 55 Consolidated Statements of Comprehensive Income 56 Consolidated Statements of Stockholders' Equity 57 Consolidated Statements of Cash Flows 58 Notes to Consolidated Financial Statements 59 2. Financial Statement Schedules. Financial statement schedules are not required because all required information is included in the financial statements or is not applicable. 3. Exhibits. The exhibits required to be filed by Item 601 of Regulation S-K are listed under paragraph (b) below and on the Exhibit Index appearing at the end of this report. Management contracts and compensatory plans or arrangements are indicated by an asterisk. (b) Exhibits. The following exhibits are filed with this Form 10-K or incorporated by reference to the document set forth next to the exhibit listed below. Exhibit Number Reference Description 3.1 Fourth Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company's 10-Q, filed August 7, 2025) 3.2 Sixth Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Company's Report on Form 8-K, filed August 9, 2021) 4.1 Fourth Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company's 10-Q, filed August 7, 2025) 4.2 Sixth Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Company's Report on Form 8-K, filed August 9, 2021) 4.3 Description of the Registrant's Securities (Incorporated by reference to Exhibit 4.3 to the Company's Form 10-K, filed February 28, 2023) 10.1 * Form of Indemnification Agreement for Executive Officers and Directors (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed August 5, 2021) 10.2 * Form of Restricted Stock Unit Award (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed August 2, 2024) 10.3 * Form of Performance Restricted Stock Unit Award (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed August 2, 2024) 10.4 Third Amended and Restated Credit Agreement, dated September 23, 2008, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.14 to the Company's Form 10-K, filed March 30, 2010) 10.5 * Covenant Transportation Group, Inc. Third Amended and Restated 2006 Omnibus Incentive Plan (Incorporated by reference to Appendix A to the Company's Schedule 14A, filed April 19, 2013) 10.6 Amendment No. 1 to Third Amended and Restated Credit Agreement, dated March 27, 2009, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed May 15, 2009) 10.7 Second Amendment to Third Amended and Restated Credit Agreement, dated February 25, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed May 17, 2010) 10.8 Third Amendment to Third Amended and Restated Credit Agreement, dated July 30, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2010) 10.9 Fourth Amendment to Third Amended and Restated Credit Agreement, dated August 31, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed November 9, 2010) 10.10 Fifth Amendment to Third Amended and Restated Credit Agreement, dated September 1, 2011, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed October 28, 2011) 47 Table of Contents 10.11 Sixth Amendment to Third Amended and Restated Credit Agreement, dated effective as of October 24, 2011, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Report on Form 8-K, filed October 28, 2011) 10.12 Seventh Amendment to Third Amended and Restated Credit Agreement, dated effective as of March 29, 2012, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed April 2, 2012) 10.13 Eighth Amendment to Third Amended and Restated Credit Agreement, dated effective as of December 31, 2012, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed January 31, 2013) 10.14 Ninth Amendment to Third Amended and Restated Credit Agreement and Related Security Documents, dated effective as of August 6, 2014, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 13, 2014) 10.15 Tenth Amendment to Third Amended and Restated Credit Agreement and Related Security Documents, dated effective as of September 8, 2014, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed November 13, 2014) 10.16 Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement, dated effective as of August 6, 2015, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Covenant Properties, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2015) 10.17 Twelfth Amendment to Third Amended and Restated Credit Agreement, dated effective as of February 25, 2016, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Covenant Properties, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed May 10, 2016) 10.18 Thirteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of December 16, 2016, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.26 to the Company's Form 10-K, filed March 14, 2017) 10.19 Fourteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of November 28, 2017, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.27 to the Company's Form 10-K, filed February 28, 2018) 10.20 Fifteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of June 19, 2018, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed August 8, 2018) 10.21 Sixteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of July 3, 2018, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2018) 10.22 Seventeenth Amendment to Third Amended and Restated Credit Agreement, dated as of September 23, 2020, among Covenant Logistics Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., and Bank of America, N.A. (Incorporated by reference to Exhibit 10.3 to the Company's Form 10-Q, filed November 3, 2020) 10.23 Eighteenth Amendment to Third Amended and Restated Credit Agreement, dated as of October 23, 2020, among Covenant Logistics Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., and Bank of America, N.A. (Incorporated by reference to Exhibit 10.23 to the Company’s Form 10-K, filed March 5, 2021) 10.24 * First Amendment to the Covenant Transportation Group, Inc. Third Amended and Restated 2006 Omnibus Incentive Plan (Incorporated by reference to Appendix A to the Company's Definitive Proxy Statement filed with the SEC on April 8, 2019 in connection with the 2019 Annual Meeting of Stockholders) 10.25 * Second Amendment to the Company’s Third Amended and Restated 2006 Omnibus Incentive Plan (Incorporated by reference to Appendix A to the Company's Schedule 14A, filed June 8, 2020) 48 Table of Contents 10.26 * Form of Restricted Stock Award Notice under the Third Amended and Restated 2006 Omnibus Incentive Plan, as amended (Double Trigger Change in Control) (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed August 10, 2020) 10.27 * Form of Restricted Stock Award Notice under the Third Amended and Restated 2006 Omnibus Incentive Plan, as amended (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q, filed August 5, 2021) 10.28 * Form of Option Award Notice under the Third Amended and Restated 2006 Omnibus Incentive Plan, as amended (Incorporated by reference to Exhibit 10.28 to the Company’s Form 10-K, filed March 5, 2021) 10.29 * Form of Executive Severance Agreement (Incorporated by reference to Exhibit 10.5 to the Company’s Form 10-Q, filed November 3, 2020) 10.30 Nineteenth Amendment to Third Amended and Restated Credit Agreement, dated as of May 4, 2022, among Covenant Logistics Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, LLC, Covenant Transport Solutions, LLC, Star Transportation, LLC, Covenant Logistics, Inc., Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., AAT Carriers, Inc., and Bank of America, N.A. (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed August 5, 2022) 10.31 * Covenant Logistics Group Supplemental Savings Plan, effective July 1, 2022 (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q, filed August 5, 2022) 10.32 * Third Amendment to the Covenant Transportation Group, Inc. Third Amended and Restated 2006 Omnibus Incentive Plan (Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement filed with the SEC on April 14, 2023 in connection with the 2023 Annual Meeting of Shareholders) 10.33 * Amended and Restated Covenant Logistics Group Supplemental Savings Plan, dated as of May 17, 2023 (Incorporated by reference to Exhibit 10.3 to the Company’s Form 10-Q, filed August 9, 2023) 10.34 * Amended and Restated Covenant Logistics Group Supplemental Savings Plan, dated as of August 15, 2023 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed November 9, 2023) 10.35 Twentieth Amendment to Third Amended and Restated Credit Agreement, dated as of December 24, 2024, among Covenant Logistics Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, LLC, Covenant Transport Solutions, LLC, Star Transportation, LLC, Covenant Logistics, Inc., Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., AAT Carriers, Inc., Covenant Logistics Holdings, Inc., and Bank of America, N.A. (Incorporated by reference to Exhibit 10.39 to the Company’s Form 10-K, filed February 28, 2025) 10.36 * Dustin Koehl Offer Letter, dated March 26, 2024 (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed May 7, 2025) 10.37 * Joey Ballard Offer Letter, dated May 23, 2022 (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed May 7, 2025) 19 # Covenant Logistics Group, Inc. Insider Trading Policy 21 # List of Subsidiaries 23.1 # Consent of Independent Registered Public Accounting Firm – Grant Thornton LLP 23.2 # Consent of Independent Registered Public Accounting Firm – Coulter & Justus, P.C. 31.1 ## Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by David R. Parker, the Company's Principal Executive Officer 31.2 ## Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by James S. Grant, the Company's Principal Financial Officer 32.1 ## Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by David R. Parker, the Company's Chief Executive Officer 32.2 ## Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by James S. Grant, the Company's Chief Financial Officer 97 Covenant Logistics Group, Inc. Clawback Policy (Incorporated by reference to Exhibit 97 to the Company's Form 10-K, filed February 28, 2025) 101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) References: # Filed herewith. ## Furnished herewith. * Management contract or compensatory plan or arrangement. ITEM 16. FORM 10-K SUMMARY None. 49 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COVENANT Logistics GROUP, INC. Date: February 27, 2026 By: /s/ James S. Grant James S. Grant Executive Vice President and Chief Financial Officer in his capacity as such and as duly authorized on behalf of the issuer. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature and Title Date /s/ David R. Parker February 27, 2026 David R. Parker Chairman of the Board and Chief Executive Officer (principal executive officer) /s/ James S. Grant February 27, 2026 James S. Grant Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) /s/ Bradley A. Moline February 27, 2026 Bradley A. Moline Director /s/ Rachel Parker-Hatchett February 27, 2026 Rachel Parker-Hatchett Director /s/ Tracy L. Rosser February 27, 2026 Tracy L. Rosser Director /s/ Herbert J. Schmidt February 27, 2026 Herbert J. Schmidt Director /s/ W. Miller Welborn February 27, 2026 W. Miller Welborn Director /s/ D. Michael Kramer February 27, 2026 D. Michael Kramer Director /s/ Benjamin Carson Sr. February 27, 2026 Benjamin Carson Sr. Director /s/ Joey B. Hogan February 27, 2026 Joey B. Hogan Director 50 Table of Contents Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders Covenant Logistics Group, Inc. Opinion on the financial statements We have audited the accompanying consolidated balance sheets of Covenant Logistics Group, Inc. (a Nevada holding company) and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, based on our audits and the report of Coulter & Justus, P.C., the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 27, 2026 expressed an unqualified opinion. We did not audit the financial statements of Transport Enterprise Leasing, LLC, a 49% owned equity method investment. The investment in Transport Enterprise Leasing, LLC was $85.512 million and $77.405 million as of December 31, 2025 and 2024, respectively, and the equity in its net income was $14.709 million, $14.713 million and $21.384 million for the years ended December 2025, 2024 and 2023, respectively. Those financial statements were audited by Coulter & Justus, P.C., whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Transport Enterprise Leasing, LLC, is based solely on the report of Coulter & Justus, P.C. Basis for opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of Coulter & Justus, P.C. provide a reasonable basis for our opinion. Critical audit matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Auto Liability Self-Insurance Reserves As described further in Note 1 to the consolidated financial statements, the Company has significant self-insured amounts related to its auto liability and has exposure to fluctuations in the number and severity of claims and to variations between estimated and actual ultimate payouts. The Company records a liability for the uninsured portion of pending claims and claims related expenses including legal and other direct costs associated with the claim. Estimates require judgment concerning the nature and severity of the claim, historical trends, and other relevant information based on specific facts and circumstances for individual claims. We identified the estimation of the Company’s auto liability accrual subject to self-insured insurance retention amounts as a critical audit matter. Incurred auto liabilities are determined by projecting the estimated ultimate loss related to a claim, less actual costs paid to date, based upon the nature and severity of the claim and historical trends. The principal consideration for our determination that auto liability self-insurance reserve is a critical audit matter is the high level of estimation uncertainty related to determining the severity of these types of claims, as well as the inherent subjectivity in management’s judgment in estimating the total costs to settle or dispose of these claims. Our audit procedures related to the auto liability self-insurance reserves included the following, among others. ● We tested the design and operating effectiveness of key controls over the accrued auto liability, including, but not limited to, controls to validate that claims were reported and recorded accurately and controls related to the review and approval of claim reserves, subsequent changes to claim reserves, and projected claim liabilities. ● We tested a sample of underlying claims through analysis of accident reports and insurance and legal records to validate information utilized by management in determining the accrual was complete and accurate. ● We reconciled claims data to the actuarial software used to determine loss development factors and used in management’s estimation methodology. ● We utilized a specialist in evaluating management’s calculated loss development factors to test that the factors provide a reasonable basis for determining estimated loss reserves. ● We performed a retrospective review of prior year and current year reserves to validate those changes in estimated losses were appropriate and supported by current year claim development. /s/ Grant Thornton LLP We have served as the Company's auditor since 2020. Charlotte, North Carolina February 27, 2026 51 Table of Contents Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders Covenant Logistics Group, Inc. Opinion on internal control over financial reporting We have audited the internal control over financial reporting of Covenant Logistics Group, Inc. (a Nevada holding Company) and subsidiaries (the “Company”) as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2025, and our report dated February 27, 2026 expressed an unqualified opinion on those financial statements. Basis for opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit of, and opinion on, the Company’s internal control over financial reporting does not include the internal control over financial reporting of Star Logistics Solutions, wholly-owned subsidiary, whose financial statements reflect total assets and revenues constituting 4.2 and 2.6 percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2025. As indicated in Management’s Annual Report on Internal Control over Financial Reporting, Star Logistics Solutions was acquired during 2025. Management’s assertion on the effectiveness of the Company’s internal control over financial reporting excluded internal control over financial reporting of Star Logistics Solutions. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Grant Thornton LLP Charlotte, North Carolina February 27, 2026 52 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Members Transport Enterprise Leasing, LLC Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Transport Enterprise Leasing, LLC (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of income and changes in members’ equity and cash flows for each of the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Transport Enterprise Leasing, LLC as of December 31, 2025 and 2024, and the consolidated results of its operations and its cash flows for each of the years then ended in conformity with accounting principles generally accepted in the United States of America (GAAP). Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission (SEC) and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to those charged with governance and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition – Refer to Note 2 to the Consolidated Financial Statements The Company recognized revenue from lease and rental agreements, which totaled $150,987,423 in 2025, based on the classification of the arrangement, as either an operating or sales-type lease. Substantially all the Company’s revenue from lease and rental agreements was derived from rental payments received on operating leases, which were recognized on a straight-line basis over the term of the lease. The Company recognized revenue from equipment sales, which totaled $14,598,674 in 2025, when performance obligations under the terms of a contract with the customer are satisfied. Generally, this occurred when control of the equipment was transferred to the customer. Revenue was measured as the amount of consideration the Company expected to be entitled to receive in exchange for transferring equipment. The Company recognized shop revenue, which totaled $13,245,228 in 2025, when performance obligations under the terms of a contract with the customer were satisfied. Generally, this occurred over time as work was completed on the equipment being serviced. Revenue was measured as the amount of consideration the Company expected to be entitled to receive in exchange for its servicing of the equipment. Due to the volume and different types of transactions related to the Company’s revenues, we evaluated the different types of revenue, individual revenue transactions, and assertions related to the Company’s revenue recognition. The audit effort in evaluating the Company’s revenue recognition was extensive and required a high degree of auditor effort. Our principal audit procedures related to the Company's revenue recognition included the following: ● We evaluated the Company’s significant accounting policies related to revenue recognition for reasonableness. ● We performed substantive tests of details using audit sampling to test whether revenue was recognized in conformity with GAAP and whether the revenue was recognized in the correct period. ● For operating lease revenues and sales-type lease revenues, including selling profit or loss, we selected a sample of lease agreements from 2025 and performed certain procedures to support revenue recognition, including the following procedures: o Obtained and reviewed signed lease agreements and related source documents to support the contractual terms of the lease agreements. o Tested the Company’s identification and treatment of lease terms. o Recalculated 2025 revenues recorded based on the terms of the signed lease agreements and related source documents. o Assessed the terms of the signed lease agreements and related source documents and evaluated the appropriateness of the Company’s application of its accounting policies, along with its use of estimates, in the determination of revenue recognition. ● For equipment sales revenues, we selected a sample of revenues recorded during 2025 and performed certain procedures to support revenue recognition, including the following procedures: o Obtained and reviewed sales invoices and related source documents for each unit sold to support recorded revenue amounts. o Tested the Company’s identification and treatment of sales terms. o Assessed the terms of the sales invoices and related source documents and evaluated the appropriateness of the Company’s application of its accounting policies, along with its use of estimates, in the determination of revenue recognition. o Obtained and reviewed purchase invoices and related source documents for each unit sold to support cost of sales amounts. ● For shop revenues, we selected a sample of revenues recorded during 2025 and performed certain procedures to support revenue recognition, including the following procedures: o Obtained and reviewed service agreements and related source documents for each unit serviced to support recorded revenue amounts. o Assessed the terms of the service agreements and related source documents and evaluated the appropriateness of the Company’s application of its accounting policies, along with its use of estimates, in the determination of revenue recognition. ● We tested the mathematical accuracy of the Company’s calculations of revenue and the associated timing of revenue recognized in the consolidated financial statements. /s/ Coulter & Justus, P.C. We have served as Transport Enterprise Leasing, LLC’s auditor since 2018. Knoxville, Tennessee February 6, 2026 53 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31 , 2025 and 2024 (In thousands, except share data) 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 4,946 $ 35,619 Accounts receivable, net of allowance of $ 2,780 in 2025 and $ 2,360 in 2024 151,803 141,635 Drivers' advances and other receivables, net of allowance of $ 584 in 2025 and $ 593 in 2024 10,214 3,999 Inventory and supplies 6,342 5,648 Prepaid expenses 21,658 19,975 Assets held for sale 26,070 132 Income taxes receivable 11,548 6,499 Other short-term assets 240 343 Total current assets 232,821 213,850 Property and equipment, at cost 753,717 729,404 Less: accumulated depreciation and amortization ( 241,033 ) ( 204,595 ) Net property and equipment 512,684 524,809 Goodwill 80,477 78,941 Other intangibles, net 105,609 90,126 Other receivables 16,531 3,163 Other assets, net 97,426 86,470 Noncurrent assets from discontinued operations - 209 Total assets $ 1,045,548 $ 997,568 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 45,479 $ 31,939 Accrued expenses 62,010 51,328 Current maturities of long-term debt 64,005 64,210 Current portion of finance lease obligations 840 751 Current portion of operating lease obligations 12,182 10,349 Current portion of insurance and claims accrual 25,462 22,700 Total current liabilities 209,978 181,277 Long-term debt 234,046 187,085 Long-term portion of finance lease obligations 2,353 3,192 Long-term portion of operating lease obligations 25,272 31,302 Insurance and claims accrual 36,361 19,134 Deferred income taxes 119,725 117,650 Other long-term liabilities 13,817 18,753 Other long-term liabilities of discontinued operations - 835 Total liabilities 641,552 559,228 Commitments and contingencies - - Stockholders' equity: Class A common stock, $ .01 par value; 40,000,000 shares authorized; 20,370,361 shares issued and outstanding as of December 31, 2025; and 40,000,000 authorized; 21,774,350 shares issued and outstanding as of December 31, 2024 219 218 Class B common stock, $ .01 par value; 5,000,000 shares authorized; 4,700,000 shares issued and outstanding as of December 31, 2025 and December 31, 2024 47 47 Additional paid-in-capital 159,492 158,907 Treasury stock at cost; 1,485,517 and no shares as of December 31, 2025 and December 31, 2024, respectively ( 34,584 ) - Accumulated other comprehensive income 612 1,035 Retained earnings 278,210 278,133 Total stockholders' equity 403,996 438,340 Total liabilities and stockholders' equity $ 1,045,548 $ 997,568 The accompanying notes are an integral part of these consolidated financial statements. 54 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2025, 2024, and 2023 (In thousands, except per share data) 2025 2024 2023 Revenues Freight revenue $ 1,059,235 $ 1,013,941 $ 970,509 Fuel surcharge revenue 105,237 117,535 133,064 Total revenue $ 1,164,472 $ 1,131,476 $ 1,103,573 Operating expenses: Salaries, wages, and related expenses 433,238 423,319 400,491 Fuel expense 112,292 115,981 133,291 Operations and maintenance 69,573 61,696 63,753 Revenue equipment rentals and purchased transportation 286,711 254,302 271,893 Operating taxes and licenses 13,776 11,954 13,409 Insurance and claims 70,125 59,845 50,099 Communications and utilities 6,379 5,407 5,012 General supplies and expenses 59,185 66,053 49,444 Depreciation and amortization 92,726 86,529 69,943 Write-down of held-for-sale assets 6,495 - - Loss (gain) on disposition of property and equipment, net 337 1,630 ( 12,585 ) Impairment of goodwill 10,698 - - Total operating expenses 1,161,535 1,086,716 1,044,750 Operating income 2,937 44,760 58,823 Interest expense, net 12,055 13,576 7,967 Income from equity method investment ( 14,709 ) ( 14,713 ) ( 21,384 ) Income before income taxes 5,591 45,897 72,240 Income tax expense 1,181 10,576 17,611 Income from continuing operations 4,410 35,321 54,629 Income from discontinued operations, net of tax 2,829 600 600 Net income $ 7,239 $ 35,921 $ 55,229 Basic income per share: Income from continuing operations $ 0.17 $ 1.35 $ 2.09 Income from discontinued operations $ 0.11 $ 0.02 $ 0.02 Net income per basic share (1) $ 0.28 $ 1.37 $ 2.12 Diluted income per share: Income from continuing operations $ 0.16 $ 1.28 $ 1.97 Income from discontinued operations $ 0.11 $ 0.02 $ 0.02 Net income per diluted share $ 0.27 $ 1.30 $ 2.00 Basic weighted average shares outstanding 25,648 26,307 26,096 Diluted weighted average shares outstanding 26,909 27,714 27,668 (1) Total may not sum due to rounding. The accompanying notes are an integral part of these consolidated financial statements 55 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31 , 2025, 2024, and 2023 (In thousands) 2025 2024 2023 Net income $ 7,239 $ 35,921 $ 55,229 Other comprehensive (loss) income: Unrealized gain on effective portion of cash flow hedges, net of tax of $ 69 , ($ 205 ), and ($ 36 ) in 2025, 2024, and 2023, respectively ( 197 ) 588 103 Reclassification of cash flow hedge losses into statement of operations, net of tax of $ 79 , $ 129 , and $ 130 in 2025, 2024, and 2023, respectively ( 226 ) ( 369 ) ( 373 ) Total other comprehensive (loss) income ( 423 ) 219 ( 270 ) Comprehensive income $ 6,816 $ 36,140 $ 54,959 The accompanying notes are an integral part of these consolidated financial statements. 56 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, and 2023 (In thousands) Accumulated Additional Other Total Common Stock Paid-In Treasury Comprehensive Retained Stockholders Class A Class B Capital Stock Income Earnings Equity Balances at December 31, 2022 $ 161 $ 24 $ 152,886 $ ( 106,500 ) $ 1,086 $ 329,471 $ 377,128 Net income - - - - - 55,229 55,229 Cash dividend - - - - - ( 5,781 ) ( 5,781 ) Share repurchase - - - ( 25,430 ) - - ( 25,430 ) Other comprehensive loss - - - - ( 270 ) - ( 270 ) Stock-based employee compensation expense - - 7,100 - - - 7,100 Exercise of stock options - - 42 194 - - 236 Issuance of restricted shares, net - - ( 4,182 ) ( 610 ) - - ( 4,792 ) Balances at December 31, 2023 $ 161 $ 24 $ 155,846 $ ( 132,346 ) $ 816 $ 378,919 $ 403,420 Net income - - - - - 35,921 35,921 Cash dividend - - - - - ( 5,796 ) ( 5,796 ) Other comprehensive income - - - - 219 - 219 Stock-based employee compensation expense - - 3,691 - - - 3,691 Stock split through dividend 57 23 ( 80 ) 130,911 - ( 130,911 ) - Exercise of stock options - - 586 1,170 - - 1,756 Issuance of restricted shares, net - - ( 1,136 ) 265 - - ( 871 ) Balances at December 31, 2024 $ 218 $ 47 $ 158,907 $ - $ 1,035 $ 278,133 $ 438,340 Net income - - - - - 7,239 7,239 Cash dividend - - - - - ( 7,162 ) ( 7,162 ) Share repurchase - - - ( 36,571 ) - - ( 36,571 ) Other comprehensive loss - - - - ( 423 ) - ( 423 ) Stock-based employee compensation expense - - 3,570 - - - 3,570 Exercise of stock options 1 - 399 - - - 400 Issuance of restricted shares, net - - ( 3,384 ) 1,987 - - ( 1,397 ) Balances at December 31, 2025 $ 219 $ 47 $ 159,492 $ ( 34,584 ) $ 612 $ 278,210 $ 403,996 The accompanying notes are an integral part of these consolidated financial statements. 57 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 , 2025, 2024, and 2023 (In thousands) 2025 2024 2023 Cash flows from operating activities: Net income $ 7,239 $ 35,921 $ 55,229 Adjustments to reconcile net income to net cash provided by operating activities: Reversal of losses on accounts receivable ( 157 ) ( 23 ) ( 258 ) Reversal of gain on sales to equity method investee, net ( 12 ) ( 40 ) ( 16 ) Depreciation and amortization 92,726 86,529 69,943 Write-down of held-for-sale assets 6,495 - - Impairment of goodwill 10,698 - - Deferred income tax benefit 2,780 4,483 18,701 Income tax expense arising from restricted share vesting and stock options exercised ( 348 ) ( 1,190 ) ( 2,226 ) Stock-based compensation expense 3,570 3,691 7,100 Equity in income of affiliate ( 14,709 ) ( 14,713 ) ( 21,384 ) Return on investment in affiliated company 6,615 3,675 9,800 (Loss) gain on disposition of property and equipment ( 2,600 ) 1,630 ( 12,585 ) Changes in operating assets and liabilities: Receivables and advances ( 9,710 ) 2,749 ( 22,416 ) Prepaid expenses and other assets ( 3,354 ) ( 3,006 ) ( 3,997 ) Inventory and supplies ( 678 ) ( 800 ) ( 317 ) Insurance and claims accrual 5,771 8,401 ( 3,542 ) Accounts payable and accrued expenses 9,322 ( 4,414 ) ( 9,191 ) Net cash flows provided by operating activities 113,648 122,893 84,841 Cash flows from investing activities: Acquisitions, net of cash acquired ( 27,053 ) ( 4,556 ) ( 107,934 ) Other investments ( 956 ) ( 597 ) ( 2,204 ) Acquisition of property and equipment ( 147,570 ) ( 152,962 ) ( 217,607 ) Proceeds from disposition of property and equipment 35,518 50,440 91,824 Net cash flows used by investing activities ( 140,061 ) ( 107,675 ) ( 235,921 ) Cash flows from financing activities: Cash dividend ( 7,162 ) ( 5,796 ) ( 5,781 ) Proceeds from issuance of notes payable 101,307 119,391 154,093 Proceeds from exercise of stock options 399 1,756 236 Repayments of notes payable ( 84,755 ) ( 74,822 ) ( 30,390 ) Repayments of finance lease obligations ( 750 ) ( 2,949 ) ( 5,619 ) Proceeds under revolving credit facility 109,214 57,421 139,837 Repayments under revolving credit facility ( 79,214 ) ( 69,000 ) ( 128,258 ) Payment of minimum tax withholdings on stock compensation ( 1,397 ) ( 871 ) ( 4,792 ) Payment of contingent liability ( 5,331 ) ( 7,023 ) ( 9,187 ) Common stock repurchased ( 36,571 ) - ( 25,430 ) Net cash flows (used in) provided by financing activities ( 4,260 ) 18,107 84,709 Net change in cash and cash equivalents ( 30,673 ) 33,325 ( 66,371 ) Cash and cash equivalents at beginning of year 35,619 2,294 68,665 Cash and cash equivalents at end of year $ 4,946 $ 35,619 $ 2,294 Supplemental disclosure of cash flow information: Cash paid (received) during the year for: Interest, net of capitalized interest $ 13,142 $ 5,674 $ 5,319 Income taxes $ 4,672 $ 7,268 $ 4,186 Non-cash transactions during the year for: Equipment acquired under finance leases $ - $ 815 $ 5,938 Equipment acquired under operating leases $ 7,324 $ 13,753 $ 3,992 Contingent consideration associated with acquisitions $ 5,158 $ - $ 11,802 Non-cash debt reduction $ - $ 26,240 $ - Insurance and claims accrual $ 13,960 $ 635 $ 1,300 Other contingent liabilities $ ( 835 ) $ ( 800 ) $ ( 800 ) The accompanying notes are an integral part of these consolidated financial statements. 58 Table of Contents COVENANT Logistics GROUP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025 and 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Covenant Logistics Group, Inc., a Nevada holding company, together with its wholly owned subsidiaries offers transportation and logistics services to customers throughout the continental United States. Principles of Consolidation The consolidated financial statements include the accounts of Covenant Logistics Group, Inc., a holding company incorporated in the state of Nevada in 1994, and its wholly owned subsidiaries: Covenant Transport, LLC, a Tennessee limited liability company d/b/a Covenant Logistics; Star Logistics Solutions, LLC, a Tennessee limited liability company ("Star"); Covenant Transport Solutions, LLC, a Nevada limited liability company ("Solutions"); Covenant Logistics, Inc., a Nevada corporation; Covenant Asset Management, LLC, a Nevada limited liability company; CTG Leasing Company, a Nevada corporation ("Leasing"); IQS Insurance Risk Retention Group, Inc., a Vermont corporation; Landair Holdings, Inc., a Tennessee corporation (collectively "Landair"); Landair Transport, LLC, a Tennessee limited liability company; Landair Logistics, LLC, a Tennessee limited liability company; Landair Leasing, Inc., a Tennessee corporation; AAT Carriers, Inc., a Tennessee corporation ("AAT"), Lew Thompson & Son Trucking, LLC, an Arkansas limited liability company, Lew Thompson & Son Leasing, LLC, an Arkansas limited liability company, Lew Thompson & Son Dedicated Leasing LLC, an Arkansas limited liability company, Josh Thompson Trucking, LLC, an Arkansas limited liability company, Sims Transport Services LLC, a Georgia limited liability company, and Transport Management Services, LLC, a Tennessee limited liability company. References in this report to "it," "we," "us," "our," the "Company," and similar expressions refer to Covenant Logistics Group, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Our four reportable segments are: ● Expedited: The Expedited reportable segment primarily provides truckload services to customers with high service freight and delivery standards, such as 1,000 miles in 22 hours, or 15 -minute delivery windows. Expedited services generally require two -person driver teams on equipment either owned or leased by the Company. ● Dedicated: The Dedicated reportable segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length. Equipment is either owned or leased by the Company. ● Managed Freight: The Managed Freight reportable segment includes our brokerage and transport management services ("TMS"). Brokerage services provide logistics capacity by outsourcing the carriage of customers' freight to third -parties. TMS provides comprehensive logistics services on a contractual basis to customers who prefer to outsource their logistics needs. ● Warehousing: The Warehousing reportable segment provides day-to-day warehouse management services to customers who have chosen to outsource this function. We also provide shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses. The following table summarizes our revenue by our four reportable segments, at the service offering level, as used by our chief operating decision maker in making decisions regarding allocation of resources, etc., for the years ended December 31, 2025 , 2024 , and 2023 : Year ended December 31, (in thousands) 2025 2024 2023 Revenues: Expedited $ 373,294 $ 416,461 $ 423,820 Dedicated 403,180 364,414 320,287 Managed Freight 286,806 248,939 258,903 Warehousing 100,555 101,662 100,563 Other 637 - - Total revenues $ 1,164,472 $ 1,131,476 $ 1,103,573 Investment in Transport Enterprise Leasing, LLC Transport Enterprise Leasing, LLC ("TEL") is a tractor and trailer equipment leasing company and used equipment reseller. We evaluated our investment in TEL to determine whether it should be recorded on a consolidated basis. Our percentage of ownership interest ( 49 %), an evaluation of control, and whether a variable interest entity ("VIE") existed were all considered in our consolidation assessment. Based on the analysis, the Company is not the primary beneficiary of TEL and TEL should not be consolidated. We have accounted for our investment in TEL using the equity method of accounting given our 49 % ownership interest and ability to exercise significant influence over operating and financial policies. Under the equity method, the cost of our investment is adjusted for our share of equity in the earnings of TEL and reduced by distributions received and our proportionate share of TEL's net income is included in our earnings. 59 Table of Contents On a periodic basis, we assess whether there are any indicators that the fair value of our investment in TEL may be impaired. The investment is impaired only if the estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss would be measured as the excess of the carrying amount of the investment over the fair value of the investment. As a result of TEL's earnings, no impairment indicators were noted that would provide for impairment of our investment during the years ended December 31, 2025 , 2024 , and 2023 . Risks and Uncertainties Our insurance program includes multi-year policies with specific insurance limits that may be eroded over the course of the policy term. If that occurs, we will be operating with less liability coverage insurance at various levels of our insurance tower and may incur additional premiums. For the policy period that ran from April 1, 2018 to March 31, 2021, the aggregate limits available in the coverage layer $ 9.0 million in excess of $ 1.0 million were fully eroded based on claims expense. We replaced our $9.0 million in excess of $1.0 million layer with a new $ 7.0 million in excess of $ 3.0 million policy that we continue to maintain. Due to the erosion of the $9.0 million in excess of $1.0 million layer, any adverse developments in claims filed between April 1, 2018 and March 31, 2021, could result in additional expense accruals. As of December 31, 2025, there were no outstanding claims in this layer. We have maintained our retention and limits set in place during the prior renewal cycle. Due to these developments, we may experience additional expense accruals, increased insurance and claims expenses, and greater volatility in our insurance and claims expenses, which could have a material adverse effect on our business, financial condition, and results of operations. Revenue Recognition Revenue, drivers' wages, and other direct operating expenses generated by our Expedited and Dedicated reportable segments are recognized proportionally as the transportation service is performed based on the percentage of miles completed as of the period end. Revenue is recognized on a gross basis at amounts charged to our customers because we control and are primarily responsible for the fulfillment of the promised service. Revenue includes transportation revenue, fuel surcharges, loading and unloading activities, equipment detention, and other accessorial services. Revenue generated by our Managed Freight reportable segment is recognized proportionally as the services are provided based on the percentage of completion method using the estimated time elapsed as of the period end. Revenue is recorded on a gross basis, without deducting third -party purchased transportation costs, as we act as a principal with substantial risks as primary obligor. Revenue for the Warehousing reportable segment is generally recognized as the service is performed, based upon a weekly rate. There are no assets or liabilities recorded in conjunction with revenue recognized, other than accounts receivable and allowance for credit losses. We recognized in-process revenue of $ 1.1 million, $ 0.7 million, and $ 1.1 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively. We had accounts receivable, net of allowance for credit losses, of $ 151.8 million, $ 141.6 million, and $ 142.5 million at December 31, 2025 , 2024 , and 2023 , respectively. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make decisions based upon estimates, assumptions, and factors we consider as relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may affect the outcomes of our estimates and assumptions. Accordingly, actual results could differ from those anticipated. 60 Table of Contents Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at acquisition to be cash equivalents. Additionally, we are also subject to concentrations of credit risk related to deposits in banks in excess of the Federal Deposit Insurance Corporation limits. At December 31, 2025 , we had $ 5.9 million in excess of the Federal Deposit Insurance Corporation insured limits. Accounts Receivable and Concentration of Credit Risk We extend credit to our customers in the normal course of business, which are generally due within 30 - 45 days of the services performed, however, we have extended terms of up to 120 days with a small number of larger customers. We perform ongoing credit evaluations and generally do not require collateral. Trade accounts receivable are recorded at their invoiced amounts, net of allowance for credit losses. We evaluate the adequacy of our allowance for credit losses quarterly. Accounts outstanding longer than contractual payment terms are considered past due and are reviewed individually for collectability. We maintain reserves for potential credit losses based upon loss history, specific receivables aging analysis, and other factors, including those related to current market conditions and events. Receivable balances are written off when collection is deemed unlikely. Accounts receivable are comprised of a diversified customer base that mitigates the level of concentration of credit risk. During 2025 , 2024 , and 2023 , our top ten customers generated 44 %, 45 %, and 44 % of total revenue, respectively. There was one customer in 2025 , 2024 , and 2023 that accounted for more than 10% of our consolidated revenue. The carrying amount reported in the consolidated balance sheet for accounts receivable approximates fair value based on the fact that the receivables collection averaged approximately 44 days and 49 days in 2025 and 2024 , respectively. The following table provides a summary (in thousands) of the activity in the allowance for credit losses for 2025 , 2024 , and 2023 : Years ended December 31: Beginning balance January 1, (Reversal of) additional provisions to allowance Write-offs and other adjustments Ending balance December 31, 2025 $ 2,360 $ ( 157 ) $ 577 $ 2,780 2024 $ 2,449 $ ( 23 ) $ ( 66 ) $ 2,360 2023 $ 2,934 $ ( 258 ) $ ( 227 ) $ 2,449 Inventories and Supplies Inventories and supplies consist of parts, tires, fuel, and supplies. Tires on new revenue equipment are capitalized as a component of the related equipment cost when the tractor or trailer is placed in service and recognized through depreciation over the life of the vehicle. Replacement tires and parts on hand at year end are recorded at the lower of cost or net realizable value with cost determined using the first -in, first -out (FIFO) method. Replacement tires are expensed when placed in service. Assets Held for Sale Assets held for sale include property and revenue equipment no longer utilized in continuing operations which are available and held for sale. Assets held for sale are no longer subject to depreciation, and are recorded at the lower of depreciated book value or fair market value less selling costs. We periodically review the carrying value of these assets for possible impairment. During the fourth quarter of 2025 we recognized an asset held-for-sale write-down of $ 6.5 million, which is included in write-down of held-for-sale assets in the consolidated statements of operations, reducing assets to their current fair market value less costs to sell. We expect to sell these assets within twelve months. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation for book purposes is determined using the straight-line method over the estimated useful lives of the assets. Depreciation of revenue equipment is our largest item of depreciation. We generally depreciate new tractors over five years to salvage values that range from 0 % to 35 % of their cost, depending on the reportable segment profile of the equipment. We generally depreciate new trailers over seven years for refrigerated trailers and ten years for dry van trailers to salvage values of approximately 20 % and 25 % of their cost, respectively. We annually, or whenever events or circumstances indicate that a review is warranted, review the reasonableness of our estimates regarding useful lives and salvage values of our revenue equipment and other long-lived assets based upon, among other things, our experience with similar assets, conditions in the used revenue equipment market, and prevailing industry practice. During the quarter ended December 31, 2025, we made the decision to sell certain subsets of our revenue equipment and classified such equipment as held-for-sale. As such, we recognized an asset held-for-sale write-down of $ 6.5 million, which is included in write-down of held-for-sale assets in the consolidated statements of operations reducing assets to their current fair market value less costs to sell. We also increased the rate of depreciation on certain units during the quarter ended December 31, 2025, in anticipation of exiting unprofitable business relationships and moderately reducing our total truckload fleet (while growing the most profitable components) which resulted in an additional $ 2.2 million of depreciation expense. During the quarter ended June 30, 2024, we performed a review of our estimates for certain subsets of revenue equipment and, due to a weak used revenue equipment market, we increased the rate of depreciation on these units in the period. This change resulted in an additional $ 6.4 million of depreciation expense during the year ended December 31, 2024. Changes in the useful life or salvage value estimates, or fluctuations in market values that are not reflected in our estimates, could have a material effect on our results of operations. We lease certain revenue equipment under finance and operating leases with terms of approximately 48 to 84 months. Amortization of assets under finance and operating leases are included in depreciation and amortization expense and revenue and equipment rentals and purchased transportation, respectively. 61 Table of Contents A portion of our tractors are protected by binding trade-back agreements with the manufacturers. The remainder of our tractors and substantially all of our owned trailers are subject to fluctuations in market prices for used revenue equipment. Moreover, our trade-back agreements are contingent upon reaching acceptable terms for the purchase of new equipment. Declines in the price of used revenue equipment or failure to reach agreement for the purchase of new tractors with the manufacturers issuing trade-back agreements could result in impairment of, or losses on the sale of, revenue equipment. Goodwill and Other Intangible Assets We classify intangible assets into two categories: (i) goodwill and (ii) intangible assets with finite lives subject to amortization. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement, the history of the asset, our long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have finite lives are amortized, generally on a straight-line basis, over their remaining useful lives, ranging from 3 to 17 years. Impairment of Goodwill and Other Intangible Assets We test goodwill for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. We test intangible assets with finite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. We record an impairment charge when the cost exceeds the fair value of the finite lived intangible asset. We may elect to perform an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the reporting unit's carrying amount, including goodwill. When performing the qualitative assessment, the Company considers the impact of factors including, but not limited to, macroeconomic and industry conditions, overall financial performance of each reporting unit, litigation and new legislation. If based on the qualitative assessments, the Company believes it more likely than not that the fair value of a reporting unit is less than the reporting unit's carrying amount, or periodically as deemed appropriate by management, the Company will prepare an estimation of the respective reporting unit's fair value utilizing a quantitative approach. If the estimation of fair value indicates that impairment potentially exists, the Company will then measure the amount of the impairment, if any. Goodwill impairment exists when the estimated implied fair value of goodwill is less than its carrying value. Changes in strategy or market conditions could significantly impact these fair value estimates and require adjustments to recorded asset balances. The Company conducted its annual impairment assessments and tests of goodwill for each reporting unit as of October 1, 2025 . As a result of the goodwill impairment analysis performed ( October 1, 2025 ), the Company determined that the goodwill was not impaired. However, subsequent to such analysis, we experienced market conditions and changes to capital expenditure expectations that contributed to a reduction in projected future cash flows within our legacy Dedicated reporting unit. As a result of these factors, during the three months ended December 31, 2025, we performed an interim quantitative goodwill impairment test that resulted in a partial impairment of goodwill of $ 10.7 million within the Dedicated reportable segment for the legacy Dedicated reporting unit. Impairment of Long-Lived Assets Pursuant to applicable accounting standards, revenue equipment and other long-lived assets are tested for impairment whenever an event occurs that indicates impairment may exist. Expected future cash flows are used to analyze whether an impairment has occurred. If the sum of expected undiscounted cash flows is less than the carrying value of the long-lived asset, then an impairment loss is recognized. We measure the impairment loss by comparing the fair value of the asset to its carrying value. Fair value is determined based on a discounted cash flow analysis or the appraised value of the assets, as appropriate. There were no events that lead to an impairment of long-lived assets during the years ended December 31, 2025, 2024, and 2023. Accrued Expenses Accrued expenses as of December 31, 2025 , were $ 62.0 million of which $ 27.0 million related to accrued payroll and related items, $ 8.0 million related to accrued insurance premiums, and $ 6.5 million related to accrued purchased transportation. As of December 31, 2024 , accrued expenses were $ 51.3 million of which $ 26.9 million related to accrued payroll and related items and $ 4.7 million related to accrued purchased transportation. Insurance and Other Claims The primary claims arising against us consist of auto liability (personal injury and property damage), workers' compensation, cargo, commercial liability, and employee medical expenses. At December 31, 2025 , our insurance program involves self-insurance with the following risk retention levels (before giving effect to any commutation of an auto liability policy): ● auto liability - $ 7.0 million in excess of $ 3.0 million policy that runs from April 1, 2024 to April 1, 2027 ● workers' compensation - $ 1.5 million ● cargo - $ 0.3 million ● employee medical - $ 0.4 million ● physical damage - 100 % Due to our significant self-insured retention amounts, we have exposure to fluctuations in the number and severity of claims and to variations between our estimated and actual ultimate payouts. We record a liability for the estimated cost of the uninsured portion of pending claims and the estimated allocated loss adjustment expenses including, legal and other direct costs associated with a claim, when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. Estimates require judgments concerning the nature and severity of the claim, historical trends, advice from third -party administrators and insurers, the size of any potential damage award based on factors such as the specific facts of individual cases, the jurisdictions involved, the prospect of punitive damages, future medical costs, and inflation estimates of future claims development, and the legal and other costs to settle or defend the claims. We have significant exposure to fluctuations in the number and severity of claims. If there is an increase in the frequency or severity of claims, or we are required to accrue or pay additional amounts if the claims prove to be more severe than originally assessed, or any of the claims exceed the limits of our insurance coverage, our profitability could be adversely affected by increased insurance and claims expense. In addition to estimates within our self-insured retention layers, we also must make judgments concerning claims where we have third -party insurance and for claims outside our coverage limits. Upon settling claims and expenses associated with claims where we have third -party coverage, we are generally required to initially fund payment to the claimant and seek reimbursement from the insurer. We had $ 5.1 million and $ 1.1 million receivables from insurers for claims and expenses we paid on behalf of insurers at December 31, 2025 and 2024 , respectively, which are included in drivers' advances and other receivables on our consolidated balance sheet. Additionally, we accrue claims above our self-insured retention and record a corresponding receivable for amounts we expect to collect from insurers upon settlement of such claims. We have $ 14.6 million and $ 0.6 million as other long-term assets and as a corresponding accrual in the long-term portion of insurance and claims accruals on our consolidated balance sheet for claims above our self-insured retention for which we believe it is reasonably assured that the insurers will provide their portion of such claims at December 31, 2025 and 2024 , respectively. We evaluate collectability of the receivables based on the credit worthiness and surplus of the insurers, along with our prior experience and contractual terms with each. If any claim occurrence were to exceed our aggregate coverage limits, we would have to accrue for the excess amount. Our critical estimates include evaluating whether a claim may exceed such limits and, if so, by how much. We also make judgments regarding the ultimate benefit versus risk of commuting certain periods within our auto liability policy. If we commute a policy, we assume 100 % risk for covered claims in exchange for a policy refund. Our prior auto liability policies have sometimes included a release premium refund or commutation option that we have sometimes exercised, although we do not have either of these options in our current policies. Management cannot predict whether or not future claims or the development of existing claims will justify a commutation of other policy periods, and accordingly, no related amounts were recorded at December 31, 2025 or 2024 . We carry excess policy layers above the primary auto liability policy described above. 62 Table of Contents Interest We capitalize interest on major projects during construction. Interest is capitalized based on the average interest rate on related debt. Capitalized interest was $ 0.3 million, less than $ 0.1 million, and $ 0.3 million in 2025 , 2024 , and 2023 , respectively. Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, available-for-sale securities, accounts payable, debt, and interest rate swaps. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and current debt approximates their fair value because of the short-term maturity of these instruments. Interest rates that are currently available to us for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of our long-term debt, which primarily consists of revenue equipment installment notes. The fair value of our revenue equipment installment notes approximated the carrying value at December 31, 2025 , as the weighted average interest rate on these notes approximates the market rate for similar debt. Borrowings under our revolving Credit Facility approximate fair value due to the variable interest rate on the facility. The fair value of our interest rate swap agreement is determined using the market-standard methodology of netting the discounted future fixed-cash payments and the discounted expected variable-cash receipts. The variable-cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These analyses reflect the contractual terms of the swap, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. The fair value calculation also includes an amount for risk of non-performance of our counterparties using "significant unobservable inputs" such as estimates of current credit spreads to evaluate the likelihood of default, which we have determined to be insignificant to the overall fair value of our interest rate swap agreements. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We have reflected the net liability after offsetting our deferred tax assets and liabilities in the deferred income taxes line in the accompanying consolidated balance sheets. We believe the future tax deductions will be realized principally through future reversals of existing taxable temporary differences and future taxable income, except for when a valuation allowance has been provided as discussed in Note 12. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Potential accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. Our policy is to recognize income tax benefit arising from the exercise of stock options and restricted share vesting based on the ordering provisions of the tax law as prescribed by the Internal Revenue Code, including indirect tax effects, if any. Lease Accounting At the commencement date of a new lease agreement with contractual terms longer than twelve months, we recognize an asset and a lease liability on the balance sheet and categorize the lease as either finance or operating. Certain lease agreements have lease and non-lease components, and we have elected to account for these components separately. Right-of-use assets and lease liabilities are initially recorded based on the present value of lease payments over the term of the lease. When the rate implicit in the lease is readily determinable, this rate is used for calculating the present value of remaining lease payments; otherwise, our incremental borrowing rate is used. The incremental borrowing rate represents an estimate of the interest rate we would incur at the lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Right-of-use assets also include prepaid lease expenses and initial direct costs of executing the leases, which are reduced by landlord incentives. Options to extend or terminate a lease agreement are included in or excluded from the lease term, respectively, when those options are reasonably certain to be exercised. Right-of-use assets are tested for impairment in the same manner as long-lived assets. Finance lease obligations are utilized to finance a portion of our revenue equipment and are entered into with certain finance companies who are not parties to our Credit Facility and may contain guarantees of the residual value of the related equipment by us. As such, the residual guarantees are included in the related debt balance as a balloon payment at the end of the related term as well as included in the future minimum finance lease payments. These lease agreements require us to pay personal property taxes, maintenance, and operating expenses. Our operating lease obligations do not typically include residual value guarantees or material restrictive covenants. 63 Table of Contents Right-of-use assets are included in net property and equipment. For finance leases, right-of-use assets are amortized on a straight-line basis over the shorter of the expected useful life or the lease term, and the carrying amount of the lease liability is adjusted to reflect interest expense, which is recorded in interest expense, net. Operating lease right-of-use assets are amortized over the lease term on a straight-line basis, and the lease liability is measured at the present value of the remaining lease payments. Variable lease payments not included in the lease liability for mileage charges on leased revenue equipment are expensed as incurred. Operating lease costs are recognized on a straight-line basis over the term of the lease within operating expenses. Capital Structure The shares of Class A and B common stock are substantially identical except that the Class B shares are entitled to two votes per share and immediately convert to Class A shares if beneficially owned by anyone other than our Chief Executive Officer or certain members of his immediate family, while Class A shares are entitled to one vote per share. The terms of any future issuances of preferred shares will be set by our Board. Income Per Share Basic income per share excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. The following table sets forth the calculation of net income per share included in the consolidated statements of operations for each of the three years ended December 31: (in thousands except per share data) 2025 2024 2023 Numerators: Income from continuing operations $ 4,410 $ 35,321 $ 54,629 Income from discontinued operations, net of tax 2,829 600 600 Net income $ 7,239 $ 35,921 $ 55,229 Denominator: Denominator for basic income per share – weighted-average shares 25,648 26,307 26,096 Effect of dilutive securities: Equivalent shares issuable upon conversion of unvested restricted shares 136 161 489 Equivalent shares issuable upon conversion of unvested employee stock options 1,125 1,246 1,083 Denominator for diluted income per share adjusted weighted-average shares and assumed conversions 26,909 27,714 27,668 Basic income per share: Income from continuing operations $ 0.17 $ 1.35 $ 2.09 Income from discontinued operations $ 0.11 $ 0.02 $ 0.02 Net income per basic share (1) $ 0.28 $ 1.37 $ 2.12 Diluted income per share: Income from continuing operations $ 0.16 $ 1.28 $ 1.97 Income from discontinued operations $ 0.11 $ 0.02 $ 0.02 Net income per diluted share $ 0.27 $ 1.30 $ 2.00 ( 1 ) Total may not sum due to rounding. There were no unvested shares excluded from the calculation of diluted earnings per share as the effect of any assumed exercise of the related awards would not have been anti-dilutive for the years ended December 31, 2025 , 2024 , and 2023 . There were no unvested options excluded from the calculation of diluted earnings per share since the effect of any assumed exercise of the related awards would be anti-dilutive for the years ended December 31, 2025 , 2024 , and 2023 , respectively. Stock-Based Employee Compensation We issue several types of stock-based compensation, including awards that vest based on service, market, and performance conditions or a combination of the conditions. Performance-based and market-based awards vest contingent upon meeting certain performance or market criteria, respectively, established by the Compensation Committee of the Board. All awards require future service. For performance-based awards, determining the appropriate amount to expense in each period is based on likelihood and timing of achieving the stated targets for performance-based awards and requires judgment, including forecasting future financial results. The estimates are revised periodically based on the probability and timing of achieving the required performance and adjustments are made as appropriate. Awards that are only subject to time vesting provisions are amortized using the straight-line method. 64 Table of Contents Recent Accounting Pronouncements Accounting Standards not yet adopted In September 2025 , the Financial Accounting Standards Board ("FASB") issued ASU 2025 - 06 , Intangibles - Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for costs related to internal-use software. The amendments in the standard remove all previous references to project stages and clarify the threshold entities apply to begin capitalizing costs. The standard becomes effective for us on January 1, 2028 , for annual and interim periods and may be adopted on a prospective basis, a modified basis for in-process projects, or a retrospective basis. The Company is currently evaluating the effects adoption of this guidance will have on our consolidated financial statements. In July 2025 , the FASB issued ASU 2025 - 05 , Measurement of Credit Losses for Accounts Receivable and Contract Assets. In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company does not expect adoption of this guidance to have a material effect on our consolidated financial statements. In November 2024, the FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses. This guidance requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements. The guidance in this ASU is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The update may be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effects adoption of this guidance will have on our consolidated financial statements. Accounting Standards adopted In December 2023, the FASB issued ASU 2023 - 09, Improvements to Income Tax Disclosures. This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring ( 1 ) consistent categories and greater disaggregation of information in the rate reconciliation and ( 2 ) income taxes paid disaggregated by jurisdiction. This ASU became effective for us for our annual reporting period beginning January 1, 2025. Adoption of the ASU has been applied prospectively. The adoption of this standard had an immaterial impact on our consolidated financial statements. There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements. 2. DISCONTINUED OPERATIONS As of June 30, 2020, our previously identified Factoring reportable segment was classified as discontinued operations as it: (i) was a component of the entity, (ii) met the criteria as held for sale, and (iii) had a material effect on the Company's operations and financial results. On July 8, 2020, we closed on the disposition of substantially all of the operations and assets of Transport Financial Services (“TFS”), which included substantially all of the assets and operations of our Factoring reportable segment. The sale consisted primarily of $ 103.3 million of net accounts receivable, which included $ 108.7 million of gross accounts receivable, less advances and rebates of $ 5.4 million. We have reflected the former Factoring reportable segment as discontinued operations in the consolidated statements of operations for all periods presented. Operating income for the years ended December 31, 2025 , of $ 3.8 million relates to the reimbursement to us from Triumph Bancorp, Inc. ("Triumph") for a portion of the $ 37.3 million of indemnification payments we made pursuant to the TFS Settlement between 2020 and 2023 (the "Indemnification Reimbursement"). For the years ended December 31, 2024 and 2023 , operating income of $ 0.8 million and $ 0.8 million, respectively, relates to the gain on the reversal of our contingent loss liability in the amount of $ 0.8 million and $ 0.8 million, respectively. The reversal of contingent loss liability relates to the reduced exposure of future indemnification by the Company to Triumph as a result of the collection of covered receivables identified in the amended purchase agreement. As of December 31, 2025, there was no remaining contingent loss liability or indemnification obligations. There were $ 3.8 million of operating cash inflows related to the $ 3.8 million Indemnification Reimbursement and $ 1.7 million of operating cash outflows related to the $ 1.7 million payment on the indemnification obligation to Triumph for the years ended December 31 2025 and 2023, respectively, and no net cash flows related to discontinued operations for the year ended December 31, 2024 . 65 Table of Contents 3. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Accordingly, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. The fair value of the commodity contracts, is determined based on quotes from the counterparty which were verified by comparing them to the exchange on which the related futures are traded, adjusted for counterparty credit risk. The fair value of our interest rate swap agreements is determined using the market-standard methodology of netting the discounted future fixed-cash payments and the discounted expected variable-cash receipts. The variable-cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These analyses reflect the contractual terms of the swap, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. The fair value calculation also includes an amount for risk of non-performance of our counterparties using "significant unobservable inputs" such as estimates of current credit spreads to evaluate the likelihood of default, which we have determined to be insignificant to the overall fair value of our interest rate swap agreements. The fair value of the life insurance policies was determined by the underwriting insurance company’s valuation models and represents the guaranteed value we would receive upon surrender of these policies as of the reporting date. A three -tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: ● Level 1. Observable inputs such as quoted prices in active markets; ● Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and ● Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Financial Instruments Measured at Fair Value on a Recurring Basis (in thousands) December 31, 2025 December 31, 2024 Input Level Interest rate swaps $ 826 $ 1,397 2 Contingent consideration $ ( 22,489 ) $ ( 27,794 ) 3 Cash surrender value life insurance policies $ 5,041 $ 3,370 2 Contingent consideration arrangements require us to pay up to $ 20.0 million of additional consideration to AAT's former shareholders based on AAT's results during the first two post-acquisition years, of which the final installment was made during 2024, up to $ 30.0 million of additional consideration to Lew Thompson & Son Trucking, LLC's ("LTST's") former shareholders based on LTST's results during the first three calendar years following closing, up to $ 12.0 million of additional consideration to Sims Transport Services, LLC's ("Sims") former shareholders based on Sims' results during the first four calendar years following closing, and up to $ 5.0 million of additional consideration to the seller of the assets of a small, multi-stop distribution carrier we acquired in February 2025 ( the "Asset Acquisition"). Additionally, the acquisition of assets that are now operating as Star (the "Star Acquisition") requires us to pay additional consideration to the sellers as described in Note 6 "Acquisition of Assets of a Brokerage Business Operating as Star Logistics Solutions". The fair value of the contingent consideration is adjusted at each reporting period based on changes to the expected cash flows and related assumptions. During the year ended December 31, 2025 , there were contingent payments made of $ 12.5 million based on LTST's results for the first calendar year following closing and $ 0.8 million as a result of the Asset Acquisition. During the year ended December 31, 2024 , there were contingent payments made of $ 10.0 million based on AAT's results for the second post-acquisition year. Of the $ 13.3 million paid for the contingent consideration liability during 2025, $ 5.3 million was classified as financing cash flows and $ 8.0 million was classified as operating cash flows within the consolidated statements of cash flows. Of the $ 10.0 million paid for the contingent consideration liability during 2024, $ 7.0 million was classified as financing cash flows and $ 3.0 million was classified as operating cash flows within the consolidated statements of cash flows. The fair value of the contingent consideration increased $ 2.8 million and $ 16.0 million related to a change in the fair value for the LTST contingent consideration for the years ended December 31, 2025 and 2024 , respectively, as well as $ 0.2 million related to a change in the fair value for the Sims contingent consideration for the year ended December 31, 2024 . Additionally, contingent consideration increased $ 5.0 million as a result of the Asset Acquisition and $ 0.2 million for the Star Acquisition for the year ended December 31, 2025 . The adjustment to the fair value of the contingent consideration liability was recorded as a component of general supplies and expenses within the condensed consolidated statements of operations. The contingent consideration liability is included in accounts payable and other long-term liabilities in our condensed consolidated balance sheets. The following table provides a summary (in thousands) of the activity for the contingent consideration liability for 2025 , 2024 , and 2023 : (in thousands) Beginning balance January 1, Additions Adjustments to fair market value Payments Ending Balance December 31, 2025 $ ( 27,794 ) $ ( 5,159 ) $ ( 2,837 ) $ 13,301 $ ( 22,489 ) 2024 $ ( 21,802 ) $ - $ ( 15,992 ) $ 10,000 $ ( 27,794 ) 2023 $ ( 17,023 ) $ ( 11,802 ) $ ( 2,977 ) $ 10,000 $ ( 21,802 ) 66 Table of Contents 4. STOCK-BASED COMPENSATION Our Third Amended and Restated 2006 Omnibus Incentive Plan, as amended (the "Incentive Plan") governs the issuance of equity awards and other incentive compensation to management and members of the Board of Directors (the "Board"). On May 17, 2023, the stockholders, upon recommendation of the Board, approved the Third Amendment (the “Third Amendment”) to our Third Amended and Restated 2006 Omnibus Incentive Plan (the "Incentive Plan"). The Third Amendment (i) increased the number of shares of Class A common stock available for issuance under the Incentive Plan by an additional 1,150,000 shares, (ii) re-set the term of the plan to expire on May 1, 2033, and (iii) made other miscellaneous, administrative and conforming changes as necessary. The Incentive Plan includes (i) a fungible share reserve feature, under which shares subject to stock options and stock appreciation rights will be counted as one share for every share granted and shares subject to all other awards will be counted as 1.80 shares for every share granted, (ii) a double-trigger vesting requirement upon a change in control, and (iii) a maximum award granted or payable to any one participant under the Incentive Plan for a calendar year of 1,000,000 shares of Class A common stock or $ 4,000,000 , in the event the award is paid in cash. The Incentive Plan permits annual awards of shares of our Class A common stock to executives, other key employees, non-employee directors, and eligible participants under various types of options, restricted share awards, or other equity instruments. At December 31, 2025 , 1,836,598 shares were available for award under the Incentive Plan. No awards may be made under the Incentive Plan after May 1, 2033. To the extent available, we have issued treasury stock to satisfy all share-based incentive plans. Included in salaries, wages, and related expenses within the consolidated statements of operations is stock-based compensation expense of $ 2.8 million, $ 2.9 million, and $ 6.5 million in 2025 , 2024 , and 2023 , respectively. Included in general supplies and expenses within the consolidated statements of operations is stock-based compensation expense for non-employee directors of $ 0.8 million, $ 0.8 million, and $ 0.6 million in 2025 , 2024 , and 2023 , respectively. All the stock compensation expense recorded in 2025 , 2024 , and 2023 relates to restricted shares granted, other than $ 0.0 million, $ 0.6 million, and $ 3.9 million in 2025 , 2024 , and 2023 , respectively, which relates to stock options. Associated with stock compensation expense was $ 0.2 million, $ 0.4 million, and $ 2.2 million of income tax benefit in 2025 , 2024 , and 2023 , respectively, related to the exercise of restricted share vesting. We received $ 0.4 million, $ 1.8 million, and $ 0.2 million related to the exercise of stock options during 2025 , 2024 , and 2023 . Associated with the exercise of stock options during 2025 , 2024 , and 2023 was $ 0.1 million, $ 0.8 million, and $ 0.1 million of income tax benefit, respectively. Forfeitures are recognized as they're incurred. The Incentive Plan allows participants to pay the federal and state minimum statutory tax withholding requirements related to awards that vest or allows the participant to deliver to us shares of Class A common stock having a fair market value equal to the minimum amount of such required withholding taxes. To satisfy withholding requirements for shares that vested, certain participants elected to deliver to us 56,090 , 33,286 , and 229,656 Class A common stock shares, which were withheld at weighted average per share prices of $ 24.90 , $ 26.16 , and $ 20.86 , respectively, based on the closing prices of our Class A common stock on the dates the shares vested in 2025 , 2024 , and 2023 , respectively, in lieu of the federal and state minimum statutory tax withholding requirements. We remitted $ 1.4 million, $ 0.9 million, and $ 4.8 million in 2025 , 2024 , and 2023 , respectively, to the proper taxing authorities in satisfaction of the employees' minimum statutory withholding requirements. The payment of minimum tax withholdings on stock compensation are reflected within the issuances of restricted shares from treasury stock in the accompanying consolidated statement of stockholders' equity. The following table summarizes our restricted share award activity for the fiscal years ended December 31, 2025 , 2024 , and 2023 : Number of stock awards (in thousands) Weighted average grant date fair value Unvested at December 31, 2022 978 $ 9.56 Granted 196 $ 19.36 Vested ( 706 ) $ 9.24 Forfeited - $ - Unvested at December 31, 2023 468 $ 14.60 Granted 243 $ 23.80 Vested ( 142 ) $ 15.14 Forfeited ( 77 ) $ 11.09 Unvested at December 31, 2024 492 $ 19.55 Granted 180 $ 23.05 Vested ( 192 ) $ 19.63 Forfeited ( 53 ) $ 18.12 Unvested at December 31, 2025 427 $ 21.17 The unvested shares at December 31, 2025 will vest based on when and if the related vesting criteria are met for each award. All awards require continued service to vest. Unrecognized compensation expense for outstanding shares was $ 4.8 million as of December 31, 2025 , which is probable to be recognized over a weighted average period of approximately 2.1 years. The fair value of restricted share awards that vested in 2025 , 2024 , and 2023 was approximately $ 3.8 million, $ 2.2 million, and $ 6.3 million respectively. 67 Table of Contents The following table summarizes our stock option activity for the fiscal year ended December 31, 2025 , 2024 , and 2023 : Number of options (in thousands) Weighted average exercise price Weighted average grant date fair value Weighted average remaining contractual term Aggregate intrinsic value (in thousands) Outstanding at December 31, 2022 2,174 $ 9.02 $ 4.20 8.0 years $ 17,968 Options granted - $ - $ - Options exercised ( 30 ) $ 7.89 $ 2.45 Options forfeited - $ - $ - Outstanding at December 31, 2023 2,144 $ 9.04 $ 4.22 7.0 years $ 29,978 Options granted - $ - $ - Options exercised ( 223 ) $ 7.89 $ 3.86 Options forfeited - $ - $ - Outstanding at December 31, 2024 1,921 $ 9.17 $ 4.26 6.0 years $ 34,732 Options granted - $ - $ - Options exercised ( 51 ) $ - $ 3.24 Options forfeited - $ - $ - Outstanding at December 31, 2025 1,870 $ 9.20 $ 4.29 5.1 years $ 24,007 Exercisable at December 31, 2025 1,870 $ 9.20 $ 4.29 5.1 years $ 24,007 There was no unrecognized compensation cost for outstanding options at December 31, 2025 . 5. PROPERTY AND EQUIPMENT A summary of property and equipment, at cost, as of December 31, 2025 and 2024 is as follows: (in thousands) Estimated Useful Lives (Years) 2025 2024 Revenue equipment 2 - 20 $ 600,222 $ 575,726 Communications equipment 5 - 10 7,852 6,721 Land and improvements 0 - 15 12,539 12,407 Buildings and leasehold improvements 7 - 40 95,632 97,636 Construction in-progress - 6,753 6,404 Other 2 - 10 30,719 30,510 $ 753,717 $ 729,404 Depreciation expense was $ 81.9 million, $ 77.0 million, and $ 62.4 million in 2025 , 2024 , and 2023 , respectively. This depreciation expense excludes net losses on the sale of property and equipment totaling $ 0.3 million and $ 1.6 million in 2025 and 2024 , respectively, and net gains on the sale of property and equipment totaling $ 12.6 million in 2023 . We lease certain revenue equipment under finance and operating leases with terms of approximately 48 to 84 months. At December 31, 2025 and 2024 , property and equipment included finance and operating leases. Our finance leases had capitalized costs of $ 6.0 million and $ 6.0 million and accumulated amortization of $ 3.2 million and $ 1.4 million at December 31, 2025 and 2024 , respectively. Amortization of these leased assets is included in depreciation and amortization expense in the consolidated statement of operations and totaled $ 0.9 million, $ 0.5 million, and $ 0.7 million during 2025 , 2024 , and 2023 , respectively. See Note 11, "Leases" for additional information about our finance and operating leases. 6. ACQUISITION OF ASSETS OF A BROKERAGE BUSINESS OPERATING AS STAR LOGISTICS SOLUTIONS On October 10, 2025, we acquired the assets of a truckload brokerage business, which we are operating as Star. Star operates in the consumer retail and disaster relief sectors where we historically have lacked exposure. Additionally, the disaster recovery market is highly specialized and synergistic with our Expedited business and offers occasional, high volume and high margin opportunities. The acquisition date fair value of the consideration transferred was $ 27.1 million. The Asset Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions. The Asset Purchase Agreement includes an earnout component based on Star's average adjusted earnings before interest, taxes, depreciation, and amortization reported for the three years ended December 31, 2028 with potential advance payments based on Star's adjusted earnings before interest, taxes, depreciation, and amortization reported for each of the years ended December 31, 2026 and 2027. The total purchase price, including any earnout achieved, is expected to be approximately $ 27.2 million depending on the results achieved by Star. The acquisition date fair value of the consideration transferred consisted of the following: October 10, 2025 (in thousands) Cash paid pursuant to Asset Purchase Agreement $ 27,053 Contingent consideration 159 Net purchase price $ 27,212 We estimated the fair value of the contingent consideration using a probability-weighted model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. Refer to Note 3, "Fair Value of Financial Instruments" for information regarding changes in the contingent consideration arrangement. All goodwill related to the acquisition is deductible for tax purposes, and there are no deferred income taxes arising from the acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. (in thousands) October 10, 2025 Accounts receivable $ 10,466 Driver advances and other receivables 707 Inventory and supplies 16 Prepaid expenses 438 Other short-term assets 250 Net property and equipment 2,169 Other intangibles, net 15,050 Total identifiable assets acquired 29,096 Accounts payable ( 10,077 ) Accrued expenses ( 2,235 ) Current maturities of long-term debt ( 204 ) Current portion of operating lease obligations ( 584 ) Current portion of insurance and claims ( 258 ) Long-term portion of operating lease obligations ( 560 ) Total liabilities assumed ( 13,918 ) Net identifiable assets acquired 15,178 Goodwill 12,034 Net assets acquired $ 27,212 Goodwill and other intangible assets may change upon the finalization of the valuation of the contingent consideration liability and intangible assets as part of the purchase accounting for the acquisition. The goodwill recognized is attributable primarily to expected cost synergies as a result of overhead support. Refer to Note 9, "Goodwill, Intangibles, and Other Assets" for a summary of changes to goodwill during the period as well as information related to the identifiable intangible asset acquired. Star’s results have been included in the consolidated financial statements since the date of acquisition and are reported within our Managed Freight reportable segment. The amounts of revenue and earnings of Star included in the Company’s consolidated results of operations from the acquisition date to the period ended December 31, 2025 are as follows: (in thousands) Year Ended December 31, 2025 Total revenue $ 30,719 Net income $ ( 89 ) The following unaudited pro forma consolidated results of operations assume that the acquisition of Star occurred as of January 1, 2023: (in thousands) Year Ended Year Ended Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Total revenue $ 1,261,183 $ 1,272,892 $ 1,248,491 Net income $ 8,063 $ 35,058 $ 53,465 Basic net income per share $ 0.31 $ 1.33 $ 2.05 Diluted net income per share $ 0.30 $ 1.26 $ 1.93 The pro forma financial information for all periods presented above has been calculated after adjusting the results of Star to reflect the business combination accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets as though the acquisition occurred as of the beginning of the Company’s fiscal year 2023. As noted above, the allocation is preliminary and changes to the value of the contingent consideration and finalization of our valuation could result in changes to the amount of amortization expense from acquired intangible assets included in the pro forma financial information presented above. The Company's historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2023. 7. ACQUISITION OF SIMS TRANSPORT SERVICES LLC On August 18, 2023, we acquired 100 % of the equity interests of Sims, a specialized brokerage company, headquartered in Maysville, GA. The acquisition date fair value of the consideration transferred was $ 9.8 million. The Stock Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions. The Stock Purchase Agreement includes an earnout component of up to an aggregate of $ 12.0 million based on Sims' adjusted earnings before interest, taxes, depreciation, and amortization reported for the first through fourth calendar years following closing. The total purchase price, including any earnout achieved, is expected to range from $ 9.8 million to $ 20.0 million depending on the results achieved by Sims. The acquisition date fair value of the consideration transferred consisted of the following: August 18, 2023 (in thousands) Cash paid pursuant to Stock Purchase Agreement $ 8,573 Cash acquired included in historical book value of Sims' assets and liabilities ( 526 ) Contingent consideration 1,786 Net purchase price $ 9,833 We estimated the fair value of the contingent consideration using a probability-weighted model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. Refer to Note 3, "Fair Value of Financial Instruments" for information regarding changes in the contingent consideration arrangement. All goodwill related to the acquisition is deductible for tax purposes and there are no deferred income taxes arising from the acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. (in thousands) August 18, 2023 Accounts receivable $ 735 Other intangibles, net 6,090 Total identifiable assets acquired 6,825 Accounts payable ( 457 ) Accrued expenses ( 4 ) Total liabilities assumed ( 461 ) Net identifiable assets acquired 6,364 Goodwill 3,469 Net assets acquired $ 9,833 During the year ended December 31, 2024 we recognized measurement period adjustments of $ 1.6 million, primarily related to the deductibility of goodwill and other intangibles, which decreased goodwill from $ 5.1 million as of December 31, 2023 to $ 3.5 million as of December 31, 2024. The goodwill recognized is attributable primarily to expected cost synergies as a result of overhead support. Refer to Note 9, "Goodwill, Intangibles, and Other Assets" for a summary of changes to goodwill during the period as well as information related to the identifiable intangible asset acquired. Sims' results have been included in the consolidated financial statements since the date of acquisition and are reported within our Managed Freight reportable segment. The amounts of revenue and earnings of Sims included in the Company’s consolidated results of operations from the acquisition date to the period ended December 31, 2025 are as follows: (in thousands) Year Ended Year Ended Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Total revenue $ 8,283 $ 10,398 $ 2,924 Net income $ 84 $ 884 $ 555 8. ACQUISITION OF LEW THOMPSON & SON TRUCKING, LLC On April 26, 2023, we acquired 100 % of the outstanding stock of LTST and related entities, headquartered in Huntsville, AR. LTST is a dedicated contract carrier specializing in poultry feed and live haul transportation in Northwest Arkansas and surrounding areas and was acquired to expand the Dedicated reportable segment into this niche market. The acquisition date fair value of the consideration transferred was $ 114.5 million. The Stock Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions. The Stock Purchase Agreement includes an earnout component of up to an aggregate of $ 30.0 million based on LTST's adjusted earnings before interest, taxes, depreciation, and amortization reported for the first, second, and third calendar years following closing. The total purchase, including any earnout achieved, is expected to range from $ 114.5 million to $ 134.5 million depending on the results achieved by LTST. The acquisition date fair value of the consideration transferred consisted of the following: April 26, 2023 (in thousands) Cash paid pursuant to Stock Purchase Agreement $ 105,282 Cash acquired included in historical book value of LTST's assets and liabilities ( 839 ) Contingent consideration 10,016 Net purchase price $ 114,459 We estimated the fair value of the contingent consideration using a probability-weighted model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. Refer to Note 3, "Fair Value of Financial Instruments" for information regarding changes in the contingent consideration arrangement. Because of our 338 (h) 10 election, all goodwill related to the acquisition is deductible for tax purposes, and there are no deferred income taxes arising from the acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. (in thousands) April 26, 2023 Accounts receivable $ 4,848 Driver advances and other receivables 98 Inventory and supplies 1,015 Prepaid expenses 561 Property and equipment 42,277 Other assets 120 Other intangibles 52,870 Total identifiable assets acquired 101,789 Accounts payable ( 565 ) Accrued expenses ( 1,465 ) Current portion of operating lease obligations ( 396 ) Current portion of insurance and claims accrual ( 56 ) Long-term portion of operating lease obligations ( 2,103 ) Total liabilities assumed ( 4,585 ) Net identifiable assets acquired 97,204 Goodwill 17,255 Net assets acquired $ 114,459 Since acquisition we recognized measurement period adjustments which increased goodwill recognized for LTST by $ 4.9 million, primarily related to the Section 338 (h) 10 election to $ 17.3 million as of December 31, 2024. The goodwill recognized is attributable primarily to expected cost synergies in the areas of fuel and purchases of revenue equipment. Refer to Note 9, "Goodwill, Intangibles, and Other Assets" for a summary of changes to goodwill during the period as well as information related to the identifiable intangible asset acquired. LTST's results have been included in the consolidated financial statements since the date of acquisition and are reported within our Dedicated reportable segment. The amounts of revenue and earnings of LTST included in the Company’s consolidated results of operations from the acquisition date to the period ended December 31, 2025 are as follows: (in thousands) Year Ended Year Ended Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Total revenue $ 180,769 $ 126,288 $ 41,838 Net income $ 4,093 $ 3,337 $ 4,726 The following unaudited pro forma consolidated results of operations assume that the acquisition of LTST occurred as of January 1, 2023: (in thousands) Year Ended December 31, 2023 Total revenue $ 1,124,492 Net income $ 57,592 Basic net income per share $ 2.21 Diluted net income per share $ 2.08 The pro forma financial information for all periods presented above has been calculated after adjusting the results of LTST to reflect the business combination accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets as though the acquisition occurred as of the beginning of the Company’s fiscal year 2023. As noted above, the allocation is preliminary and changes to the value of the contingent consideration and finalization of our valuation could result in changes to the amount of amortization expense from acquired intangible assets included in the pro forma financial information presented above. The Company's historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the Company’s fiscal 2023. 68 Table of Contents 9. GOODWILL, INTANGIBLES, AND OTHER ASSETS The Landair trade name has a residual value of $ 0.5 million. Amortization expense of $ 10.8 million, $ 9.5 million, and $ 7.5 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively, was included in depreciation and amortization in the consolidated statements of operations. A summary of other intangible assets, by reportable segment as of December 31, 2025 and 2024 is as follows: (in thousands) December 31, 2025 Gross intangible assets Accumulated amortization Net intangible assets Remaining Life (months) Trade name: Dedicated $ 4,502 $ ( 2,689 ) $ 1,813 Managed Freight 1,089 ( 927 ) 162 Warehousing 999 ( 885 ) 114 Total trade name 6,590 ( 4,501 ) 2,089 86 Non-Compete agreement: Dedicated 4,670 ( 3,113 ) 1,557 Managed Freight 630 ( 238 ) 392 Total non-compete agreement 5,300 ( 3,351 ) 1,949 15 Customer relationships: Dedicated 71,374 ( 16,959 ) 54,415 Managed Freight 22,112 ( 3,264 ) 18,848 Warehousing 12,436 ( 7,772 ) 4,664 Total customer relationships: 105,922 ( 27,995 ) 77,927 131 Credentialing: Expedited 32,000 ( 8,356 ) 23,644 Total credentialing 32,000 ( 8,356 ) 23,644 133 Total other intangible assets $ 149,812 $ ( 44,203 ) $ 105,609 128 69 Table of Contents (in thousands) December 31, 2024 Gross intangible assets Accumulated amortization Net intangible assets Remaining Life (months) Trade name: Dedicated $ 4,502 $ ( 2,479 ) $ 2,023 Managed Freight 1,089 ( 910 ) 179 Warehousing 999 ( 885 ) 114 Total trade name 6,590 ( 4,274 ) 2,316 98 Non-Compete agreement: Dedicated 4,670 ( 1,946 ) 2,724 Managed Freight 380 ( 127 ) 253 Total non-compete agreement 5,050 ( 2,073 ) 2,977 28 Customer relationships: Dedicated 60,172 ( 12,142 ) 48,030 Managed Freight 7,312 ( 1,987 ) 5,325 Warehousing 12,436 ( 6,736 ) 5,700 Total customer relationships 79,920 ( 20,865 ) 59,055 149 Credentialing: Expedited 32,000 ( 6,222 ) 25,778 Total credentialing 32,000 ( 6,222 ) 25,778 145 Total other intangible assets $ 123,560 $ ( 33,434 ) $ 90,126 142 The above finite-lived intangible assets have a weighted average remaining life of 128 months and 142 months as of December 31, 2025 and 2024 , respectively. The expected amortization expense of these assets for the next five years is as follows: (In thousands) 2026 $ 12,001 2027 11,191 2028 10,732 2029 10,705 2030 9,215 Thereafter 51,265 The assignment of goodwill and intangible assets to our reportable segments was not complete as of December 31, 2025 as the result of the October 2025 Star Acquisition. The carrying amount of goodwill was $ 80.5 million at December 31, 2025 , compared to $ 78.9 million at December 31, 2024 . A summary of the changes in carrying amount of goodwill by reportable segment is as follows: (in thousands) Expedited Dedicated Managed Freight Warehousing Total Balance at December 31, 2024 $ 15,699 $ 32,575 $ 8,917 $ 21,750 $ 78,941 Acquired goodwill for Star - - 12,034 - 12,034 Impairment of goodwill - ( 10,698 ) - - ( 10,698 ) Post-acquisition goodwill adjustments - - 200 - 200 Balance at December 31, 2025 $ 15,699 $ 21,877 $ 21,151 $ 21,750 $ 80,477 A summary of other assets as of December 31, 2025 and 2024 is as follows: (in thousands) 2025 2024 Investment in TEL $ 85,512 $ 77,405 Other assets, net 11,914 9,065 Total other assets, net $ 97,426 $ 89,633 Other long-term assets, net primarily represents amounts related to life insurance policies purchased with the intent to fund the future liability related to our nonqualified deferred compensation plan and the long-term portion of our prepaid expenses as of December 31, 2025 , and 2024 . Additionally, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment is recognized on assets classified as held and used when the sum of undiscounted estimated cash flows expected to result from the use of the asset is less than the carrying value. If such measurement indicates a possible impairment, the estimated fair value of the asset is compared to its net book value to measure the impairment charge, if any. As a result of the Dedicated reportable segment goodwill impairment during the three months ended December 31, 2025 , we performed an interim review of the related long-lived assets for impairment with no such impairment identified. 70 Table of Contents 10. DEBT Current and long-term debt and lease obligations consisted of the following at December 31, 2025 and 2024 : (in thousands) December 31, 2025 December 31, 2024 Current Long-Term Current Long-Term Borrowings under Credit Facility $ - $ 30,000 $ - $ - Borrowings under the Draw Note - - - - Revenue equipment installment notes; weighted average interest rate of 5.1 % at December 31, 2025, and 5.4 % December 31, 2024, due in monthly installments with final maturities at various dates ranging from April 2026 to November 2031, secured by related revenue equipment 62,602 189,115 62,860 170,629 Real estate notes; interest rate of 5.6 % at December 31, 2025 and 6.3 % at December 31, 2024 due in monthly installments with a fixed maturity at August 2035, secured by related real estate 1,403 14,931 1,350 16,456 Total debt 64,005 234,046 64,210 187,085 Principal portion of finance lease obligations, secured by related revenue equipment 840 2,353 751 3,192 Principal portion of operating lease obligations, secured by related equipment 12,182 25,272 10,349 31,302 Total debt and lease obligations $ 77,027 $ 261,671 $ 75,310 $ 221,579 We and substantially all of our subsidiaries are parties to the Third Amended and Restated Credit Agreement (the "Credit Facility") with Bank of America, N.A., as agent (the "Agent") and JPMorgan Chase Bank, N.A. (together with the Agent, the "Lenders"). The Credit Facility is a $ 110.0 million revolving credit facility, with an uncommitted accordion feature that, so long as no event of default exists, allows us to request an increase in the revolving credit facility of up to $ 75.0 million subject to Lender acceptance of the additional funding commitment. The Credit Facility includes a letter of credit sub facility in an aggregate amount of $ 105.0 million and a swing line sub facility in an aggregate amount equal to the greater of $ 10.0 million or 10 % of the Lenders' aggregate commitments under the Credit Facility from time-to-time. The Credit Facility matures in May 2027. Borrowings under the Credit Facility are classified as either "base rate loans" or "SOFR loans." Base rate loans accrue interest at a base rate equal to the greater of the Agent’s prime rate, the federal funds rate plus 0.5 %, or SOFR for a one month period as of such day, plus an applicable margin ranging from 0.25 % to 0.75%; while SOFR loans accrued interest at SOFR, plus an applicable margin ranging from 1.25 % to 1.75 %. The applicable rates are adjusted quarterly based on average pricing availability. The unused line fee is the product of 0.25 % times the average daily amount by which the Lenders' aggregate revolving commitments under the Credit Facility exceed the outstanding principal amount of revolver loans and the aggregate undrawn amount of all outstanding letters of credit issued under the Credit Facility. The obligations under the Credit Facility are guaranteed by us and secured by a pledge of substantially all of our assets, with the notable exclusion of any real estate, revenue equipment pledged under other financing agreements, including revenue equipment installment notes and finance leases, and revenue equipment that we do not designate as being included in the borrowing base. 71 Table of Contents Borrowings under the Credit Facility are subject to a borrowing base limited to the lesser of (A) $110.0 million, minus the sum of the stated amount of all outstanding letters of credit; or (B) the sum of (i) 87.5 % of eligible accounts receivable, plus (ii) the least of (a) 85 % of the appraised net orderly liquidation value of eligible revenue equipment, (b) 100 % of the net book value of eligible revenue equipment, (c) 60.0 % of the Lenders' aggregate revolving commitments under the Credit Facility, or (d) $ 65.0 million. We had $ 30.0 million borrowings outstanding under the Credit Facility as of December 31, 2025 , undrawn letters of credit outstanding of approximately $ 19.9 million, and available borrowing capacity of $ 53.3 million. Based on availability as of December 31, 2025 and 2024 , there was no fixed charge coverage requirement. The Credit Facility includes usual and customary events of default for a facility of this nature and provides that, upon the occurrence and continuation of an event of default, payment of all amounts payable under the Credit Facility may be accelerated, and the Lenders' commitments may be terminated. If an event of default occurs under the Credit Facility and the Lenders cause, or have the ability to cause, all of the outstanding debt obligations under the Credit Facility to become due and payable, this could result in a default under other debt instruments that contain acceleration or cross-default provisions. The Credit Facility contains certain restrictions and covenants relating to, among other things, debt, dividends, liens, acquisitions and dispositions outside of the ordinary course of business, and affiliate transactions. Failure to comply with the covenants and restrictions set forth in the Credit Facility could result in an event of default. Pricing for the revenue equipment installment notes is quoted by the respective financial affiliates of our primary revenue equipment suppliers and other lenders at the funding of each group of equipment acquired and include fixed annual rates for new equipment under retail installment contracts. The notes included in the funding are due in monthly installments with final maturities at various dates ranging from April 2026 to November 2031 . The notes contain certain requirements regarding payment, insuring of collateral, and other matters, but do not have any financial or other material covenants or events of default. Additional borrowings from the financial affiliates of our primary revenue equipment suppliers and other lenders are expected to be available to fund new tractors expected to be delivered in 2026, while any other property and equipment purchases, including trailers, are expected to be funded with a combination of available cash, notes, operating leases, finance leases, and/or from the Credit Facility. In August 2015, we financed a portion of the purchase of our corporate headquarters, a maintenance facility, and certain surrounding property in Chattanooga, Tennessee by entering into a $ 28.0 million variable rate note with a third -party lender. Concurrently with entering into the note, we entered into an interest rate swap to effectively fix the related interest rate to 4.2 %. The note contains certain restrictions and covenants that are usual and customary for a note of this nature. Failure to comply with the covenants and restrictions set forth in the note could result in an event of default. We expect to be in compliance with our debt covenants for the next 12 months. As of December 31, 2025 , the scheduled principal payments of debt, excluding finance leases for which future payments are discussed in Note 11 are as follows: (in thousands) 2026 $ 64,005 2027 111,669 2028 73,741 2029 20,976 2030 6,274 Thereafter 21,386 72 Table of Contents 11. LEASES Finance lease obligations are utilized to finance a portion of our revenue equipment and are entered into with certain finance companies who are not parties to our Credit Facility. The leases in effect at December 31, 2025 terminate in June 2028 through November 2033 and contain guarantees of the residual value of the related equipment by us. As such, the residual guarantees are included in the related debt balance as a balloon payment at the end of the related term as well as included in the future minimum finance lease payments. These lease agreements require us to pay personal property taxes, maintenance, and operating expenses. Our operating lease obligations do not typically include residual value guarantees or material restrictive covenants. A summary of our lease obligations for the twelve months ended December 31, 2025 , 2024 , and 2023 are as follows: (dollars in thousands) Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2025 December 31, 2024 December 31, 2023 Finance lease cost: Amortization of right-of-use assets $ 872 $ 491 $ 689 Interest on lease liabilities 470 818 510 Operating lease cost 14,849 14,350 18,296 Short-term lease cost 6,846 4,117 7,514 Variable lease cost ( 48 ) 266 1,024 Total lease cost $ 22,989 $ 20,042 $ 28,033 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 470 $ 818 $ 510 Operating cash flows from operating leases $ 11,541 $ 11,222 $ 13,965 Financing cash flows from finance leases $ 750 $ 2,949 $ 5,619 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 815 $ 5,938 Right-of-use assets obtained in exchange for new operating lease liabilities $ 7,324 $ 13,753 $ 3,992 Weighted-average remaining lease term—finance leases 4.9 years 4.8 years 3.8 years Weighted-average remaining lease term—operating leases 3.6 years 4.4 years 4.6 years Weighted-average discount rate—finance leases 12.4 % 12.7 % 13.2 % Weighted-average discount rate—operating leases 8.6 % 8.7 % 10.1 % At December 31, 2025 and 2024 , right-of-use assets of $ 35.5 million and $ 40.0 million for operating leases, respectively, and $ 2.8 million and $ 4.6 million for finance leases, are included in net property and equipment in our consolidated balance sheets. Operating lease right-of-use asset amortization is included in revenue equipment rentals and purchased transportation, communication and utilities, and general supplies and expenses, depending on the underlying asset, in the consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the consolidated statement of operations. Our future minimum lease payments as of December 31, 2025 , summarized as follows by lease category: (in thousands) Operating Finance 2026 $ 14,572 $ 1,212 2027 12,917 1,212 2028 6,747 930 2029 3,915 340 2030 2,602 214 Thereafter 2,101 317 Total minimum lease payments $ 42,854 $ 4,225 Less: amount representing interest ( 5,400 ) ( 1,032 ) Present value of minimum lease payments $ 37,454 $ 3,193 Less: current portion ( 12,182 ) ( 840 ) Lease obligations, long-term $ 25,272 $ 2,353 Certain leases contain cross-default provisions with other financing agreements and additional charges if the unit's mileage exceeds certain thresholds defined in the lease agreement. Rental expense is summarized as follows for each of the three years ended December 31: (in thousands) 2025 2024 2023 Revenue equipment rentals $ 8,154 $ 5,390 $ 12,735 Building and lot rentals 12,890 12,816 13,721 Other equipment rentals 603 527 378 Total rental expense $ 21,647 $ 18,733 $ 26,834 73 Table of Contents 12. INCOME TAXES Income before provision for income taxes for the years ended December 31, 2025 , 2024 , and 2023 is summarized below: Year Ended Year Ended Year Ended (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 United States $ 5,591 $ 45,897 $ 72,240 Income before provision for income taxes $ 5,591 $ 45,897 $ 72,240 Income tax expense for the years ended December 31, 2025 , 2024 , and 2023 is comprised of: Year Ended Year Ended Year Ended (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Federal, current $ ( 1,417 ) $ 6,332 $ ( 1,132 ) Federal, deferred 2,824 2,762 16,624 State, current 350 2,078 2,575 State, deferred ( 576 ) ( 596 ) ( 456 ) Income tax expense $ 1,181 $ 10,576 $ 17,611 We adopted ASU 2023 - 09 on a prospective basis beginning with the year ended December 31, 2025. The following table presents income tax expense for the year ended December 31, 2025 after adoption of ASU 2023 - 09: Year Ended (dollars in thousands) December 31, 2025 Computed "expected" income tax expense $ 1,172 21.0 % State and local (1) $ ( 213 ) ( 3.8 %) Effect of changes in tax laws or rates $ - 0.0 % Tax credits Work opportunity tax credit $ ( 462 ) ( 8.3 %) General business credit $ ( 240 ) ( 4.3 %) Nontaxable or nondeductible items Per diem $ 773 13.8 % Meals and entertainment $ 158 2.8 % Company owned life insurance $ ( 241 ) ( 4.3 %) Executive compensation disallowance $ 156 2.8 % Excess tax benefit on share based compensation $ ( 299 ) ( 5.3 %) Changes in unrecognized tax benefits $ - 0.0 % Other $ 377 6.7 % $ 1,181 21.1 % ( 1 ) The state and local jurisdictions that contribute to the majority (greater than 50% ) of the tax effect in the category include California, Illinois, Missouri, New Mexico, Pennsylvania, and Tennessee. Income tax expense for the years ended December 31, 2024 and 2023 prior to adoption of ASU 2023 - 09 is summarized below: Year Ended Year Ended (dollars in thousands) December 31, 2024 December 31, 2023 Computed "expected" income tax expense $ 9,631 21.0 % $ 15,170 21.0 % State income taxes, net of federal income tax effect 1,165 2.5 % 1,674 2.3 % Per diem allowances 852 1.9 % 862 1.2 % Tax contingency accruals - 0.0 % ( 287 ) ( 0.4 %) Tax credits ( 496 ) ( 1.1 %) ( 329 ) ( 0.5 %) Excess tax benefits on share-based compensation ( 975 ) ( 2.1 %) ( 1,811 ) ( 2.5 %) Change in prior year estimates ( 398 ) ( 0.9 %) 8 0.0 % Executive compensation disallowance 1,068 2.3 % 2,370 3.3 % Other, net ( 271 ) ( 0.6 %) ( 46 ) ( 0.1 %) Income tax expense $ 10,576 23.0 % $ 17,611 24.4 % The amount of income tax expense allocated to discontinued operations for TFS is $ 1.0 million, $ 0.2 million, and $ 0.2 million for the years 2025 , 2024 , and 2023 , respectively. Income tax expense varies from the amount computed by applying the applicable federal corporate income tax rate of 21 % for 2025 , 2024 , and 2023 , to income before income taxes primarily due to state income taxes, net of federal income tax effect, adjusted for permanent differences, the most significant of which are the effects of the per diem pay structure for drivers, executive compensation disallowance, and excess tax benefits on share-based compensation. Drivers who meet the requirements to receive per diem receive non-taxable per diem pay in lieu of a portion of their taxable wages. This per diem program increases our drivers' net pay per mile, after taxes, while decreasing gross pay, before taxes. As a result, salaries, wages, and benefits are slightly lower and our effective income tax rate is higher than the statutory rate. Generally, as pre-tax income increases, the impact of the driver per diem program on effective tax rate decreases, because aggregate per diem pay becomes smaller in relation to pre-tax income, while in periods where earnings are at or near breakeven, the impact of the per diem program on our effective tax rate is significant. Due to the partially nondeductible effect of per diem pay, our tax rate will fluctuate in future periods based on fluctuations in earnings. The following table presents cash income taxes paid net of refunds for the year ended December 31, 2025 : Year Ended (in thousands) December 31, 2025 US federal $ 4,533 US state and local $ 139 $ 4,672 The temporary differences and the approximate tax effects that give rise to our net deferred tax liability at December 31, 2025 and 2024 are as follows: (in thousands) 2025 2024 Deferred tax assets: Insurance and claims $ 10,208 $ 9,943 Net operating loss carryovers 19,366 4,756 Tax credits 483 487 Leased liability 9,393 10,640 Finance lease obligation 702 906 State bonus 3,257 3,205 Accrued bonus 2,483 3,146 Intangibles 3,916 1,394 Other 4,044 3,055 Total gross deferred tax assets 53,852 37,532 Valuation allowance ( 1,073 ) ( 42 ) Total deferred tax assets, net of valuation allowance 52,779 37,490 Deferred tax liabilities: Property and equipment ( 99,350 ) ( 91,226 ) Investment in partnership ( 58,879 ) ( 48,447 ) ROU Asset- leases ( 8,898 ) ( 10,203 ) Other ( 197 ) ( 343 ) Prepaid expenses ( 5,180 ) ( 4,921 ) Total gross deferred tax liabilities ( 172,504 ) ( 155,140 ) Net deferred tax liability $ ( 119,725 ) $ ( 117,650 ) 74 Table of Contents The net deferred tax liability of $ 119.7 million primarily relates to differences in cumulative book versus tax depreciation of property and equipment, partially offset by net operating loss carryovers and insurance claims that have been reserved but not paid. The carrying value of our deferred tax assets assumes that we will be able to generate, based on certain estimates and assumptions, sufficient future taxable income in certain tax jurisdictions to utilize these deferred tax benefits. The Company concluded that there is sufficient positive evidence to recognize existing deferred tax assets, with the exception of an immaterial amount of state attributes that are deemed unrealizable based on the timing of expiration and limited apportionable income. As of December 31, 2025 , we had less than $ 0.1 million of liability recorded for unrecognized tax benefits, which includes interest and penalties of less than $ 0.1 million. We recognize interest and penalties accrued related to unrecognized tax benefits in tax expense. As of December 31, 2024 , we had a $ 0.1 million liability recorded for unrecognized tax benefits, which included interest and penalties of less than $ 0.1 million. As of December 31, 2023 , we had a $ 0.1 million liability recorded for unrecognized tax benefits, which included interest and penalties of less than $ 0.1 million. Interest and penalties recognized for uncertain tax positions provided for de minimus expense in 2025 , 2024 , and 2023 . The following tables summarize the annual activity related to our gross unrecognized tax benefits (in thousands) for the years ended December 31, 2025 , 2024 , and 2023 : 2025 2024 2023 Balance as of January 1, $ - $ 105 $ 392 Decreases related to lapsing of statue of limitations - ( 105 ) ( 287 ) Balance as of December 31, $ - $ - $ 105 If recognized, approximately $ 0.0 million, $ 0.0 million, and $ 0.1 million of unrecognized tax benefits would impact our effective tax rate as of December 31, 2025 , 2024 , and 2023 , respectively. Any prospective adjustments to our reserves for income taxes will be recorded as an increase or decrease to our provision for income taxes and would impact our effective tax rate. Our 2022 through 2024 tax years remain subject to examination by the IRS for U.S. federal tax purposes, our major taxing jurisdiction. In the normal course of business, we are also subject to audits by state and local tax authorities. We do not anticipate total unrecognized tax benefits to materially change in the next twelve months. We generated a federal net operating loss of $ 60.9 million in 2025 which can be carried forward indefinitely. We have $ 0.7 million of federal tax credits to carry back and offset tax in 2024. Our state operating loss carryforwards and state tax credits of $ 135.7 million and $ 0.6 million, respectively, expire beginning in 2025 and 2033 based on jurisdiction. The American Rescue Plan Act of 2021 (the "ARPA") includes several provisions meant to stimulate the U.S. economy. Of relevance to the Company, ARPA extended the reach of IRC Section 162 (m) to include compensation paid to the eight highest-paid individuals other than the chief executive officer and chief financial officer (rather than the three highest), however, this change is not effective until 2027. There is no material impact to the financial statements at this time. We do not anticipate the Inflation Reduction Act (the "IRA") will have a significant impact on income tax expense or on other taxes. One of the most impactful provisions of the IRA includes the establishment of a Corporate Alternative Minimum Tax ("CAMT"). However, this tax only applies to corporations with three -year average earnings in excess of $1.0 billion. We will continue to monitor the CAMT each year to determine if we will become an applicable corporation. Additionally, the IRA enacted an excise tax on stock buybacks, which imposes a 1% tax on stock buybacks, subject to netting provisions regarding stock awarded to employees as part of their compensation. This did not have a material impact on our stock repurchase programs. The Organization for Economic Co-operation and Development ("OECD") has released the Base Erosion and Profit Shifting framework 2.0 ("Pillar Two") to introduce a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds. As of December 31, 2025, we have no recorded effects for Pillar Two due to our operational jurisdiction being wholly domestic. The United States has not yet enacted legislation to adopt Pillar Two. We will continue to monitor the impact of this legislation going forward. The One Big Beautiful Bill Act of 2025 ("OBBBA"), among other things, includes provisions that permanently restored 100% bonus depreciation, reinstated current deductibility of domestic research and development under Section 174, eased the Section 163 (j) interest limitation through a return to earnings before interest, taxes, depreciation, and amortization, and rolled back certain alternative energy credits. We have considered the effects of OBBBA in our 2025 provision, which was particularly relevant for fixed assets, Section 163 (j), and Section 174. 13. EQUITY METHOD INVESTMENT We own a 49.0 % interest in TEL, a tractor and trailer equipment leasing company and used equipment reseller. There is no loss limitation on our 49.0% interest in TEL. We have not guaranteed any of TEL's debt and have no obligation to provide funding, services, or assets. There are no current put rights to purchase or sell with any owners. TEL’s majority owners are generally restricted from transferring their interests in TEL, other than to certain permitted transferees, without our consent, similarly, we are generally restricted from transferring our interests in TEL, other than to certain permitted transferees, without their consent. There are no third -party liquidity arrangements, guarantees, and/or other commitments that may affect the fair value or risk of our interest in TEL. For the years ended December 31, 2025 and 2023 we sold no tractors and trailers to TEL. For the year ended December 31, 2024 we sold revenue equipment to TEL in exchange for the assumption of the related notes payable of $ 26.2 million and $ 0.5 million of cash. We received $ 0.9 million, $ 1.1 million, and $ 0.9 million respectively, for providing various maintenance services, certain back-office functions, and for miscellaneous equipment. We purchased less than $ 0.1 million of equipment from TEL in 2025 and $ 0.6 million and $ 4.1 million in 2024 and 2023 , respectively. Additionally, we paid $ 2.7 million, $ 1.8 million, and $ 6.8 million to TEL for leases of revenue equipment and maintenance in 2025 , 2024 , and 2023 , respectively. We had operating lease liabilities with TEL of $ 7.8 million and $ 10.1 million at December 31, 2025 and 2024 , respectively, for revenue equipment leased from TEL. We recorded net reversal of gains of less than $ 0.1 million for the years ended December 31, 2025 , 2024 , and 2023 , representing 49 % of the gains on tractors and trailers sold to TEL less any gains previously deferred and recognized when the equipment was sold to a third -party. Deferred gains totaling $ 0.2 million at December 31, 2025 and 2024 , respectively, are being carried as a reduction in our investment in TEL. We have accounted for our investment in TEL using the equity method of accounting and thus our financial results include our proportionate share of TEL's net income, which amounted to $ 14.7 million in 2025 , $ 14.7 million in 2024 , and $ 21.4 million in 2023 . We received an equity distribution from TEL for $ 6.6 million, $ 3.7 million, and $ 9.8 million in 2025 , 2024 , and 2023 , respectively, which was distributed to each member based on its respective ownership percentage. 75 Table of Contents Our accounts receivable and payable from TEL and investment in TEL as of December 31, 2025 and 2024 , are as follows: Description: Balance Sheet Line Item: 2025 2024 Accounts receivable from TEL Driver advances and other receivables $ 13 $ - Accounts payable to TEL Accrued expenses $ 460 $ 275 Investment in TEL Other assets $ 85,512 $ 77,405 Our accounts receivable from TEL related to cash disbursements made pursuant to our performance of certain back-office and maintenance functions on TEL's behalf. Our accounts payable to TEL primarily related to operating lease payments owed to TEL. Our investment in TEL is comprised of $ 4.9 million cash investment and our equity in TEL's earnings since our investment, partially offset by dividends received since our investment for minimum tax withholdings as noted above. Additionally, the abovementioned deferred gains on sales of equipment to TEL are carried as a reduction in our investment in TEL. See TEL's summarized financial information below. (in thousands) As of the years ended December 31, 2025 2024 Current Assets $ 90,924 $ 84,677 Non-current Assets 585,466 575,786 Current Liabilities 124,094 131,137 Non-current Liabilities 387,228 378,933 Total Equity $ 165,068 $ 150,393 (in thousands) As of the years ended December 31, 2025 2024 2023 Revenue $ 179,709 $ 150,538 $ 151,207 Cost of Sales 21,480 11,467 14,768 Operating Expenses 107,267 89,575 79,596 Operating Income 50,962 49,496 56,843 Net Income $ 28,174 $ 31,610 $ 43,107 14. EMPLOYEE BENEFIT PLANS Deferred Profit Sharing Employee Benefit Plan We have a deferred profit sharing and savings plan under which all of our employees with at least six months of service are eligible to participate. Employees may contribute a percentage of their annual compensation up to the maximum amount allowed by the Internal Revenue Code. We may make discretionary contributions as determined by a committee of our Board. We made contributions of $ 2.1 million, $ 2.1 million, and $ 2.2 million in 2025 , 2024 , and 2023 , respectively, to the profit sharing and savings plan. Nonqualified Deferred Compensation Plan The Supplemental Savings Plan (the "SSP") is our nonqualified deferred compensation plan started during 2022 for the benefit of eligible key managerial employees whose contributions to our deferred profit sharing and savings plan are limited because of IRS regulations affecting highly compensated employees. Under the terms of the SSP, participants may elect to defer compensation on a pre-tax basis within annual dollar limits we establish. At December 31, 2025 and 2024 , there were 18 and 17 active participants in the SSP, respectively. We may make discretionary contributions as we so determine each year. Each participant is fully vested in all deferred compensation and earnings; however these amounts are subject to general creditor claims until distributed to the participant. Under current federal tax law, we are not allowed a current income tax deduction for the compensation deferred by participants, but we are allowed a tax deduction when a distribution payment is made to a participant from the SSP. The accumulated benefit obligation was $ 5.1 million and $ 3.5 million as of December 31, 2025 and 2024 , respectively, and is included in accrued expenses and other long-term liabilities in the consolidated balance sheets. We purchased life insurance policies with the intent to fund the future liability. The aggregate market value of the life insurance policies was $ 5.0 million and $ 3.4 million as of December 31, 2025 and 2024 , respectively, and was included in other non-current assets in the consolidated balance sheets. The accumulated benefit obligation and aggregate market value of the life insurance policies were as follows (in thousands): December 31, 2025 2024 Accumulated benefit obligation $ 5,142 $ 3,541 Aggregate market value $ 5,041 $ 3,370 15. RELATED PARTY TRANSACTIONS Other than those associated with TEL, there are no material related party transactions. See Note 13 for discussions of the related party transactions associated with TEL. 16. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time-to-time, we are a party to litigation arising in the ordinary course of business, most of which involves claims for personal injury, workers’ compensation, and/or property damage incurred in connection with the transportation of freight. We record a liability for the estimated cost of the uninsured portion of pending claims and the estimated allocated loss adjustment expenses, including legal and other direct costs associated with a claim, when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. There are inherent uncertainties in these legal matters, some of which are beyond management’s control, making the ultimate outcomes difficult to predict. Moreover, management's views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. The Company’s business, results of operations, financial condition, or liquidity could be materially and adversely affected by the resolution of one or more of these contingencies. In 2025, a third -party trucking company hauling a load brokered by Solutions and using a trailer owned by Leasing was involved in an accident that resulted in five fatalities and injuries to at least one other person. There are several possible defendants in the case, facts are still being developed, alleged damages have not been specified, and there are significant factual and legal issues to be resolved. The Company has concluded that a loss is probable in the case, but given the preliminary nature of the proceedings, the Company cannot reasonably estimate a range of possible losses at this time in excess of the amount accrued for legal costs. As of December 31, 2025, the Company accrued $ 0.7 million for legal costs associated with the accident, but it has not recorded any other liability related to the accident. To the extent Solutions is found to have liability related to the accident, and the damages awarded against the Company exceed the Company’s coverage limits, involve significant aggregate use of the Company’s self-insured retention amounts, or cause increases in the Company’s insurance premiums, the Company’s insurance and claims expense would be volatile and increase. Any resulting increases in such expenses could have a materially adverse effect on the Company’s business, results of operations, financial condition, or liquidity. We maintain insurance to cover liabilities arising from the transportation of freight for amounts in excess of certain self-insured retentions. Refer to Note 1 for information about our insurance program. Other Commitments and Contingencies We had $ 19.9 million and $ 19.8 million of outstanding and undrawn letters of credit as of December 31, 2025 and 2024 , respectively. The letters of credit are maintained primarily to support our insurance programs. We had commitments outstanding at December 31, 2025 , to acquire revenue equipment totaling approximately $ 100.8 million versus commitments at December 31, 2024 of approximately $ 114.0 million. These commitments are cancelable upon stated notice periods, subject to certain adjustments in the underlying obligations and benefits. 17. SEGMENT INFORMATION Our four reportable segments are (i) Expedited, (ii) Dedicated, (iii) Managed Freight, and (iv) Warehousing. Refer to Note 1, for a description of each of our reportable segments. The Company's chief operating decision maker, the Chief Executive Officer, evaluates the operating results through reportable segment operating income, which includes certain corporate overhead allocations directly attributable to each of the segments. We do not report our intersegment revenues by segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments. Each segment uses certain shared infrastructure and each segment is presented with its direct costs and an allocation of certain shared overhead costs. Insurance and claims expense is charged to the segments based on their historic claims experience and an allocation of current insurance premiums. The CODM uses operating income for each segment in the annual budget and strategic planning process. The CODM considers budget-to-actual variances on a quarterly basis as well as month-over-month variances when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees. 76 Table of Contents The following tables summarize our reportable segment information as used by our CODM in making decisions regarding allocation of resources, etc., for 2025 , 2024 , and 2023 : (in thousands) Year Ended December 31, 2025 Expedited Dedicated Managed Freight Warehousing Total Revenues Freight revenue $ 317,218 $ 354,626 $ 286,806 $ 99,948 $ 1,058,598 Fuel surcharge revenue (1) 56,076 48,554 - 607 105,237 Subtotal operating revenues $ 373,294 $ 403,180 $ 286,806 $ 100,555 $ 1,163,835 Other revenues 637 Total revenue $ 1,164,472 Operating expenses: Salaries, wages, and related expenses 123,121 168,340 12,235 49,339 Fuel expense 57,306 54,202 - 656 Operations and maintenance 41,239 45,443 1,702 5,857 Revenue equipment rentals and purchased transportation 68,455 33,287 246,904 4,542 Operating taxes and licenses 1,314 2,807 105 2,141 Insurance and claims 26,056 20,056 1,166 895 Communications and utilities 2 796 62 981 General supplies and expenses 913 2,158 3,571 17,133 Depreciation and amortization 5 17,403 159 1,856 Gain on disposition of property and equipment, net - 249 13 - Total allocated overhead 33,757 38,453 8,723 9,456 Segment operating expenses 352,168 383,194 274,640 92,856 1,102,858 Segment operating income $ 21,126 $ 19,986 $ 12,166 $ 7,699 $ 61,614 Other (2) ( 58,677 ) Total consolidated operating income 2,937 Interest expense, net ( 12,055 ) Income from equity method investment 14,709 Income before income taxes $ 5,591 (in thousands) Year Ended December 31, 2024 Expedited Dedicated Managed Freight Warehousing Total Revenues Freight revenue $ 346,697 $ 317,787 $ 248,939 $ 100,518 $ 1,013,941 Fuel surcharge revenue (1) 69,764 46,627 - 1,144 117,535 Subtotal operating revenues $ 416,461 $ 364,414 $ 248,939 $ 101,662 $ 1,131,476 Other revenues - Total revenue $ 1,131,476 Operating expenses: Salaries, wages, and related expenses 136,453 141,051 9,180 46,299 Fuel expense 64,661 50,063 - 1,473 Operations and maintenance 39,651 36,983 1,421 5,419 Revenue equipment rentals and purchased transportation 65,594 29,890 209,236 4,864 Operating taxes and licenses 1,498 1,648 45 2,351 Insurance and claims 26,321 15,882 913 792 Communications and utilities 2 459 40 882 General supplies and expenses 987 2,243 3,041 16,816 Depreciation and amortization 23 12,238 84 1,759 Gain on disposition of property and equipment, net - ( 107 ) - - Total allocated overhead 35,465 40,750 11,788 10,640 Segment operating expenses 370,655 331,100 235,748 91,295 1,028,798 Segment operating income $ 45,806 $ 33,314 $ 13,191 $ 10,367 $ 102,678 Other (2) ( 57,918 ) Total consolidated operating income 44,760 Interest expense, net ( 13,576 ) Income from equity method investment 14,713 $ 45,897 (in thousands) Year Ended December 31, 2023 Expedited Dedicated Managed Freight Warehousing Total Revenues Freight revenue $ 343,779 $ 268,465 $ 258,903 $ 99,362 $ 970,509 Fuel surcharge revenue (1) 80,041 51,822 - 1,201 133,064 Subtotal operating revenues $ 423,820 $ 320,287 $ 258,903 $ 100,563 $ 1,103,573 Other revenues - Total revenue $ 1,103,573 Operating expenses: Salaries, wages, and related expenses 138,897 116,383 8,534 49,495 Fuel expense 75,671 55,686 - 1,544 Operations and maintenance 45,836 32,061 1,228 5,658 Revenue equipment rentals and purchased transportation 55,064 30,492 221,535 5,974 Operating taxes and licenses 1,679 927 45 2,107 Insurance and claims 25,500 14,929 2,812 1,699 Communications and utilities 65 272 9 927 General supplies and expenses 1,072 2,173 2,282 17,141 Depreciation and amortization 2,074 5,187 388 765 Gain on disposition of property and equipment, net ( 17 ) ( 94 ) - - Total allocated overhead 32,969 35,805 11,617 9,467 Segment operating expenses 378,810 293,821 248,450 94,777 1,015,858 Segment operating income $ 45,010 $ 26,466 $ 10,453 $ 5,786 $ 87,715 Other (2) ( 28,892 ) Total consolidated operating income $ 58,823 Interest expense, net ( 7,967 ) Income from equity method investment 21,384 Income before income taxes $ 72,240 ( 1 ) The CODM does not receive fuel surcharge revenue and fuel expense individually, but is provided with fuel expense less fuel surcharge revenue (other than the fuel surcharge revenue we reimburse to independent contractors and other third parties which is included in purchased transportation), which we refer to as net fuel expense. The CODM uses net fuel expense to measure the effectiveness of our fuel surcharge program. ( 2 ) Other represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, write-down of held-for-sale assets, and contingent consideration liability adjustments, consistent with the information used by our CODM to evaluate the operating results of our reportable segments. Balance sheet data by reportable segment is not maintained by the Company. 77 Table of Contents 18. EQUITY Other Equity On April 23, 2025, our Board approved a stock repurchase authorization of up to $ 50.0 million of our Class A common stock. Under such authorization, we repurchased approximately 1.6 million shares of our Class A common stock for $ 36.2 million (excluding excise taxes) during the year ended December 31, 2025. On December 31, 2024, after market close, the Company effected a 2 for 1 forward split on its Class A common stock and Class B common stock outstanding in the form of a stock dividend, under which each stockholder of the Company's Class A common stock on that date received one additional share of the Company’s $ 0.01 par value Class A common stock for every one share owned and each stockholder of the Company's Class B common stock on that date received one additional share of the Company’s $ 0.01 par value Class B common stock for every one share owned. All share and per share amounts presented in this Annual Report on Form 10 -K, including with respect to dividends and in the financial statement and notes hereto have been adjusted for the stock split, except for the share amounts presented in the stockholders' equity section of our consolidated balance sheets. On May 18, 2022, our Board approved a new stock repurchase authorization of up to $ 75.0 million of our Class A common stock, with any remaining amount available under prior authorizations being excluded and no longer available. Under such authorization, we repurchased 4.1 million shares of our Class A common stock for $ 57.5 million through January 30, 2023. On January 30, 2023, the Board approved an amendment to the Company's stock repurchase program authorizing the purchase of up to an aggregate $ 55.0 million of our Class A common stock. The amendment added an incremental approximately $ 37.5 million to the approximately $ 17.5 million that was then-remaining under the program. Between May 2022 and April 2023, we repurchased a total of 5.4 million shares of our Class A common stock. The program expired on January 31, 2024. Dividends On February 10, 2025 our Board declared a cash dividend of $ 0.07 per share, which was paid on March 28, 2025, to stockholders of record on March 7, 2025. On May 14, 2025, our Board declared a cash dividend of $ 0.07 per share, which was paid on June 27, 2025, to stockholders of record on June 6, 2025. On August 12, 2025, our Board declared a cash dividend of $ 0.07 per share which was paid on September 26, 2025, to stockholders of record on September 5, 2025. On November 20, 2025, our Board declared a cash dividend of $ 0.07 per share which was paid on December 26, 2025, to stockholders of record on December 5, 2025. On February 13, 2024, our Board declared a cash dividend of $ 0.055 per share which was paid on March 29, 2024, to stockholders of record on March 1, 2024. On May 15, 2024, our Board declared a cash dividend of $ 0.055 per share which was paid on June 28, 2024, to stockholders of record on June 7, 2024. On August 14, 2024, our Board declared a cash dividend of $ 0.055 per share which was paid on September 27, 2024, to stockholders of record on September 6, 2024. On November 21, 2024, our Board declared a cash dividend of $ 0.055 per share which was paid on December 27, 2024, to stockholders of record on December 6, 2024. On February 15, 2023, our Board declared a cash dividend of $ 0.055 per share, which was paid on March 31, 2023, to stockholders of record on March 3, 2023. On May 17, 2023, our Board declared a cash dividend of $ 0.055 per share which was paid on June 30, 2023, to stockholders of record on June 2, 2023. On August 16, 2023, our Board declared a cash dividend of $ 0.055 per share which was paid on September 29, 2023, to stockholders of record on September 1, 2023. On November 15, 2023, our Board declared a cash dividend of $ 0.055 per share which was paid on December 29, 2023, to stockholders of record on December 1, 2023. 19. SUBSEQUENT EVENTS On February 5, 2026, our Board declared a cash dividend of $ 0.07 per share, which will be for stockholders of record as of March 6, 2026, and payable on March 27, 2026. 78