Willdan Group, Inc. 10-Q

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk Market risk is the risk of loss to future earnings, to fair values or to future cash flows that may result from changes in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, exchange rates, commodity prices, equity prices and other market changes. Market risk is attributed to all market risk sensitive financial instruments, including long-term debt. As of April 3, 2026, we had cash and cash equivalents of $28.3 million. This amount represents cash on hand in business checking accounts with our banks. We do not engage in trading activities and do not participate in foreign currency transactions. We are subject to interest rate risk in connection with our Term Loan A (“TLA”) and borrowings, if any, under our Revolving Credit Facility, each of which bears interest at variable rates. As of April 3, 2026, the Company had a fully drawn $50.0 million TLA with $48.1 million outstanding, a $100.0 million Revolving Credit Facility with no borrowed amounts, and $1.6 million in letters of credit issued, and a $50.0 million Delayed Draw Term Loan with no borrowed amounts. Each of our TLA, Revolving Credit Facility and Delayed Draw Term Loan mature on May 5, 2030 and are governed by our Amended and Restated Credit Agreement. Based upon the amount of our outstanding indebtedness as of April 3, 2026, a one percentage point increase in the effective interest rate would change our annual interest expense by approximately $0.5 million in fiscal year 2026. ​ ​ 41 Table of Contents