12 unchanged sentences
The interest rate on our Credit Agreement is variable based upon the Prime Rate and SOFR (in each case as defined in the Credit Agreement) and, therefore, is affected by changes in market interest rates.
−Removed: As of September 30, 2025, we had $882.5 million of outstanding borrowings under the Credit Agreement.
−Removed: Based upon average outstanding borrowings during the three months ended September 30, 2025, interest accrued at a rate of approximately 6.6% per annum.
+Added: As of March 31, 2026, we had $889.0 million of outstanding borrowings under the Credit Agreement.
+Added: Based upon average outstanding borrowings during the three months ended March 31, 2026, interest accrued at a rate of approximately 6.9% per annum.
If the Prime Rate or SOFR increased by 100 basis points, there would be an annualized $1.0 million of additional interest expense per $100.0 million of outstanding borrowing under the Credit Agreement.
Foreign Currency Risk
−Removed: Our subsidiaries in the Philippines, Mexico, India, Bulgaria, Colombia, South Africa, Egypt, Honduras and Poland use the local currency as their functional currency for paying labor and other operating costs.
+Added: Our subsidiaries in the Philippines, Mexico, India, Bulgaria, Colombia, South Africa, Egypt and Poland use the local currency as their functional currency for paying labor and other operating costs.
Conversely, revenue for these foreign subsidiaries is derived principally from client contracts that are invoiced and collected in U.S.
1 unchanged sentence
As a result, we may experience foreign currency gains or losses, which may positively or negatively affect our results of operations attributed to these subsidiaries.
−Removed: For the nine months ended September 30, 2025 and 2024, revenue associated with this foreign exchange risk was 23% and 21% of our consolidated revenue, respectively.
+Added: For the three months ended March 31, 2026 and 2025, revenue associated with this foreign exchange risk was 27% and 23% of our consolidated revenue, respectively.
In order to mitigate the risk of these non-functional foreign currencies weakening against the functional currencies of the servicing subsidiaries, which thereby decreases the economic benefit of performing work in these countries, we may hedge a portion, though not 100%, of the projected foreign currency exposure related to client programs served from these foreign countries through our cash flow hedging program.
2 unchanged sentences
To reduce our exposure to foreign currency exchange rate fluctuations associated with forecasted revenue in non-functional currencies, we purchase forward and/or option contracts to acquire the functional currency of the foreign subsidiary at a fixed exchange rate at specific dates in the future.
−Removed: We have designated and account for these derivative instruments as cash flow hedges for forecasted revenue in non-functional currencies.
+Added: We have designated and accounted for these derivative instruments as cash flow hedges for forecasted revenue in non-functional currencies.
While we have implemented certain strategies to mitigate risks related to the impact of fluctuations in currency exchange rates, we cannot ensure that we will not recognize gains or losses from international transactions, as this is part of transacting business in an international environment.
1 unchanged sentence
Failure to successfully hedge or anticipate currency risks properly could adversely affect our consolidated operating results.
−Removed: Our cash flow hedging instruments as of September 30, 2025 and December 31, 2024 are summarized as follows (in thousands).
+Added: Our cash flow hedging instruments as of March 31, 2026 and December 31, 2025 are summarized as follows (in thousands).
All hedging instruments are forward contracts, except as noted.
−Removed: As of September 30, 2025
+Added: As of March 31, 2026
Philippine Peso
−Removed: December 2026
+Added: February 2027
Colombian Peso
2 unchanged sentences
December 2026
+Added: Colombian Peso
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S.
−Removed: dollars on September 30, 2025 and December 31, 2024.
−Removed: The fair value of our cash flow hedges as of September 30, 2025 was assets/(liabilities) (in thousands):
+Added: dollars on March 31, 2026 and December 31, 2025.
+Added: The fair value of our cash flow hedges as of March 31, 2026 was assets/(liabilities) (in thousands):
Maturing in the
−Removed: September 30, 2025
+Added: March 31, 2026
Next 12 Months
2 unchanged sentences
Our cash flow hedges are valued using models based on market observable inputs, including both forward and spot foreign exchange rates, implied volatility, and counterparty credit risk.
−Removed: The increase in fair value from December 31, 2024 reflects changes in the currency translation between the U.S.
+Added: The decrease in fair value from December 31, 2025 reflects changes in the currency translation between the U.S.
dollar and Mexican peso and U.S.
dollar and Philippine pesos.
−Removed: We recorded net gains/(losses) of $0.9 million and $2.7 million for settled cash flow hedge contracts and the related premiums for the nine months ended September 30, 2025 and 2024, respectively.
+Added: We recorded net gains/(losses) of $0.1 million and $(0.2) million for settled cash flow hedge contracts and the related premiums for the three months ended March 31, 2026 and 2025, respectively.
These gains/(losses) were reflected in Revenue in the accompanying Consolidated Statements of Comprehensive Income (Loss).
6 unchanged sentences
We do not currently engage in hedging activities related to these types of foreign currency risks because we believe them to be insignificant as we endeavor to settle these accounts on a timely basis.
−Removed: For the nine months ended September 30, 2025 and 2024, approximately 17% and 15%, respectively, of revenue was derived from contracts denominated in currencies other than the U.S.
+Added: For the three months ended March 31, 2026 and 2025, approximately 18% and 15%, respectively, of revenue was derived from contracts denominated in currencies other than the U.S.
Our results from operations and revenue could be adversely affected if the U.S.
1 unchanged sentence
Fair Value of Debt and Equity Securities
−Removed: We did not have any investments in marketable debt or equity securities as of September 30, 2025 or December 31, 2024.
+Added: We did not have any investments in marketable debt or equity securities as of March 31, 2026 or December 31, 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.