CCC Intelligent Solutions Holdings Inc.

Previous wording

Revenues increased by $27.8 million to $260.5 million, or 12.0%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The Company's software subscription revenues accounted for $250.6 million and $223.0 million, or 96% of total revenue, during the three months ended June 30, 2025 and 2024.

Current wording

Revenues increased by $28.6 million to $267.1 million, or 12.0%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The Company's software subscription revenues accounted for $256.7 million and $229.4 million, or 96% of total revenue, during the three months ended September 30, 2025 and 2024.

Previous wording

Cost of revenues, exclusive of amortization of acquired technologies, increased by $8.8 million to $62.1 million, or 16.6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily due to a $4.1 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, a $3.5 million increase in personnel-related costs, including a $1.4 million increase in stock-based compensation, partially due to the acquisition of EvolutionIQ in January 2025, and a $1.3 million increase in third party fees and direct costs associated with our revenue growth.

Current wording

Cost of revenues, exclusive of amortization of acquired technologies, increased by $14.9 million to $69.8 million, or 27.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily due to a $6.7 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, and accelerated depreciation due to the discontinuance of an add-on solution. The overall increase was also driven by a $3.8 million increase in information technology ("IT") related costs, a portion of which is related to the EvolutionIQ acquisition, a $2.7 million increase in third party fees and direct costs associated with our revenue growth, and $1.7 million increase in personnel and resource related costs.

Previous wording

Amortization of acquired technologies increased $2.3 million to $4.4 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was due to the amortization of new acquired technology recognized as part of the acquisition of EvolutionIQ in January 2025.

Current wording

Amortization of acquired technologies increased $4.2 million to $4.4 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was due to the amortization of new acquired technology recognized as part of the acquisition of EvolutionIQ in January 2025.

Previous wording

Gross profit increased by $16.7 million to $194.0 million, or 9.4%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Our gross profit margin was 74.5% for the three months ended June 30, 2025, compared to 76.2% for the three months ended June 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements, including the impacts from the acquisition of EvolutionIQ in January 2025.

Current wording

Gross profit increased by $9.6 million to $193.0 million, or 5.2%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Our gross profit margin was 72.2% for the three months ended September 30, 2025, compared to 76.9% for the three months ended September 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements, including the impacts from the acquisition of EvolutionIQ in January 2025, partially offset by higher cost of revenue.

Previous wording

Research and development expense increased by $10.7 million to $59.9 million, or 21.7%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily due to a $14.1 million increase in personnel and resource related costs, including a $3.0 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, partially offset by a $3.7 million decrease in information technology ("IT") related costs.

Current wording

Research and development expense increased by $3.4 million to $52.9 million, or 6.9%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily due to a $11.7 million increase in personnel and resource related costs, including a $1.6 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, partially offset by a $5.6 million decrease in information technology ("IT") related costs, and $2.5 million increase in the amount of capitalized time on platform and customer solution enhancements.

Previous wording

General and administrative expense decreased by $3.6 million to $47.6 million, or 7.1%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The decrease was primarily due to a $4.3 million decrease in stock-based compensation and a $1.8 million decrease in professional service costs, partially offset by a $1.8 million increase in personnel-related costs and a $0.4 million increase in IT and communication related costs.

Current wording

General and administrative expense decreased by $5.6 million to $47.3 million, or 10.6%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease was primarily due to a $8.6 million decrease in stock-based compensation, and a $1.7 decrease in professional service costs, partially offset by a $1.9 million increase in personnel-related costs and a $1.2 million increase in other business taxes.

Previous wording

Interest expense increased by $1.2 million to $17.8 million, or 7.4%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the three months ended June 30, 2025.

Current wording

Interest expense increased by $1.7 million to $18.1 million, or 10.5%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the three months ended September 30, 2025.

Previous wording

Interest income decreased by $1.4 million to $1.2 million, or 53.5%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, mainly due to lower average balances on interest earning deposits and money market funds during the three months ended June 30, 2025.

Current wording

Interest income decreased by $2.3 million to $1.1 million, or 68.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, mainly due to lower average balances on interest earning deposits and money market funds during the three months ended September 30, 2025.

Previous wording

Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the three months ended June 30, 2025. We recognized income of $16.0 million for the three months ended June 30, 2024. The change in fair value of warrant liabilities during the three months ended June 30, 2024 was primarily due to changes in the price of the Company's common stock during the reporting period.

Current wording

Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the three months ended September 30, 2025 and three months ended September 30, 2024.

Previous wording

We recognized other expense—Net of $2.1 million for the three months ended June 30, 2025 compared to other income—Net of $1.3 million for the three months ended June 30, 2024. The expense recognized during the three months ended June 30, 2025 was primarily due to the decrease in the fair value of derivative instruments.

Current wording

We recognized other income (expense)—Net of $0.5 million for the three months ended September 30, 2025 compared to other expense—Net of $2.6 million for the three months ended September 30, 2024. The change during the three months ended September 30, 2025 was primarily due to the change in fair value and decrease in income of derivative instruments, driven by the change in forward curve and secured overnight financing rate ("SOFR").

Previous wording

The Company recognized an income tax benefit of $7.2 million and an income tax provision of $4.3 million for the three months ended June 30, 2025 and 2024, respectively. The income tax benefit during the three months ended June 30, 2025 was primarily due to the Company's year-to-date pre-tax book loss.

Current wording

The Company recognized an income tax provision of $15.4 million and $8.9 million for the three months ended September 30, 2025 and 2024, respectively. The income tax provision during the three months ended September 30, 2025 was primarily due to the Company's year-to-date pre-tax book income, as well as the tax impact related to stock-based compensation expense, partially offset by the tax impact related to estimated research and development credits.

Previous wording

Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024

Current wording

Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024

Previous wording

Revenues increased by $52.2 million to $512.0 million, or 11.3%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The Company's software subscription revenues accounted for $493.1 million and $441.1 million, or 96% of total revenue during the six months ended June 30, 2025 and 2024.

Current wording

Revenues increased by $80.8 million to $779.1 million, or 11.6%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The Company's software subscription revenues accounted for $749.8 million and $670.3 million, or 96% of total revenue during the nine months ended September 30, 2025 and 2024.

Previous wording

The increase in revenue was primarily a result of 4% growth from existing customer upgrades and expanding solution offerings to these existing customers, 4% growth from the acquisition of EvolutionIQ, and 3% growth from new customers.

Current wording

The increase in revenue was primarily a result of 5% growth from existing customer upgrades and expanding solution offerings to these existing customers, 4% growth from the acquisition of EvolutionIQ, and 3% growth from new customers.

Previous wording

Cost of revenues, exclusive of amortization of acquired technologies, increased by $18.2 million to $124.3 million, or 17.2%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily due to a $7.9 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, a $5.9 million increase in personnel-related costs, including a $2.0 million increase in stock-based compensation, partially due to the acquisition of EvolutionIQ in January 2025, and a $3.4 million increase in third party fees and direct costs associated with our revenue growth.

Current wording

Cost of revenues, exclusive of amortization of acquired technologies, increased by $33.1 million to $194.1 million, or 20.6%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to a $14.6 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, and accelerated depreciation due to the discontinuance of an add-on solution. The overall increase was also driven by a $7.4 million increase in personnel-related costs, including a $1.9 million increase in stock-based compensation partially due to the acquisition of EvolutionIQ in January 2025, a $6.0 million increase in third party fees and direct costs associated with our revenue growth, and a $5.9 million increase in IT related costs.

Previous wording

Amortization of acquired technologies was $8.7 million for the six months ended June 30, 2025 and 2024. The amortization recognized on acquired technologies as part of the acquisition of EvolutionIQ in January 2025 was offset by certain acquired technology intangible assets reaching the end of their useful life in April 2024.

Current wording

Amortization of acquired technologies was $13.1 million for the nine months ended September 30, 2025 and 2024. The amortization recognized on acquired technologies as part of the acquisition of EvolutionIQ in January 2025 was offset by certain acquired technology intangible assets reaching the end of their useful life in April 2024.

Previous wording

Gross profit increased by $33.8 million to $379.0 million, or 9.8%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Our gross profit margin was 74.0% for the six months ended June 30, 2025, compared to 75.1% for the six months ended June 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements.

Current wording

Gross profit increased by $43.4 million to $572.0 million, or 8.2%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Our gross profit margin was 73.4% for the nine months ended September 30, 2025, compared to 75.7% for the nine months ended September 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements, including the impacts from the acquisition of EvolutionIQ in January 2025, partially offset by higher cost of revenue.

Previous wording

General and administrative expense increased by $6.4 million to $114.7 million, or 5.9%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase was primarily due to a $7.4 million increase in professional service costs, mainly due to the acquisition of EvolutionIQ in January 2025, and a $2.6 million increase in personal-related costs, partially offset by a $2.8 million decrease in stock-based compensation.

Current wording

General and administrative expense increased by $0.8 million to $162.1 million, or 0.5%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily due to a $5.7 million increase in professional service costs, mainly due to the acquisition of EvolutionIQ in January 2025, a $1.0 million increase in other business taxes, and a $1.0 million increase in IT related costs, partially offset by a $7.0 million decrease in personal-related costs, including a $11.4 million decrease in stock-based compensation.

Previous wording

Interest expense increased by $1.7 million to $34.8 million, or 5.2%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the six months ended June 30, 2025.

Current wording

Interest expense increased by $3.4 million to $52.9 million, or 6.9%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the nine months ended September 30, 2025.

Previous wording

Interest income decreased by $1.9 million to $3.2 million, or 37.8%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to lower average balances on interest earning deposits and money market funds during the six months ended June 30, 2025.

Current wording

Interest income decreased by $4.2 million to $4.2 million, or 49.8%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to lower average balances on interest earning deposits and money market funds during the nine months ended September 30, 2025.

Previous wording

Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the six months ended June 30, 2025. We recognized income of $14.4 million for the six months ended June 30, 2024. The change in fair value of warrant liabilities during the six months ended June 30, 2024 was primarily due to changes in the price of the Company's common stock during the reporting period.

Current wording

Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the nine months ended September 30, 2025. We recognized income of $14.4 million for the nine months ended September 30, 2024. The change in fair value of warrant liabilities during the nine months ended September 30, 2024 was primarily due to changes in the price of the Company's common stock during the reporting period.

Previous wording

We recognized other expense of $7.2 million for the six months ended June 30, 2025 compared to other income $4.2 million for the six months ended June 30, 2024. The expense recognized during the six months ended June 30, 2025 was primarily due to the decrease in the fair value of derivative instruments.

Current wording

We recognized other expense of $6.7 million for the nine months ended September 30, 2025 compared to other income $1.6 million for the nine months ended September 30, 2024. The change during the nine months ended September 30, 2025 was primarily due to the change in fair value and decrease in income of derivative instruments, driven by the change in forward curve and SOFR.

Previous wording

The Company recognized an income tax benefit of $20.5 million and an income tax provision of $0.1 million for the six months ended June 30, 2025 and 2024, respectively. The income tax benefit during the six months ended June 30, 2025 was primarily due to Company's pre-tax book loss.

Current wording

The Company recognized an income tax benefit of $5.1 million and an income tax provision of $9.0 million for the nine months ended September 30, 2025 and 2024, respectively. The income tax benefit during the nine months ended September 30, 2025 was primarily due to Company's pre-tax book loss, as well as the tax rate impact of non-deductible stock-based compensation expense.

Previous wording

The following table reconciles Gross Profit to Adjusted Gross Profit for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles Gross Profit to Adjusted Gross Profit for the three and nine months ended September 30, 2025 and 2024:

Previous wording

We believe that Adjusted Operating Expenses, as defined below, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. Adjusted Operating Expenses is defined as operating expenses adjusted for amortization of intangible assets, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential mergers and acquisitions

Current wording

We believe that Adjusted Operating Expenses, as defined below, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. Adjusted Operating Expenses is defined as operating expenses adjusted for amortization of intangible assets, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential mergers and acquisitions ("M&A"), costs related to equity transactions, including secondary offerings, litigation proceeds and litigation costs for matters in which we are the plaintiff and related antitrust matters and debt refinancing costs.

Previous wording

The following table reconciles operating expenses to Adjusted Operating Expenses for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles operating expenses to Adjusted Operating Expenses for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The following table reconciles operating income to Adjusted Operating Income for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles operating income to Adjusted Operating Income for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The following table reconciles net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles net (loss) income to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The following table reconciles net income (loss) to Adjusted Net Income and Adjusted Earnings Per Share for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles net (loss) income to Adjusted Net Income and Adjusted Earnings Per Share for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The following table reconciles net cash provided by operating activities to Free Cash Flow for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table reconciles net cash provided by operating activities to Free Cash Flow for the three and nine months ended September 30, 2025 and 2024:

Previous wording

We have financed our operations with cash flows from operations. The Company generated $101.5 million of cash flows from operating activities during the six months ended June 30, 2025. As of June 30, 2025, the Company had cash and cash equivalents of $55.1 million, a working capital surplus of $77.2 million and an accumulated deficit totaling $1,272.2 million. As of June 30, 2025, the Company had $996.0 million aggregate principal outstanding on its term loan.

Current wording

We have financed our operations with cash flows from operations. The Company generated $196.3 million of cash flows from operating activities during the nine months ended September 30, 2025. As of September 30, 2025, the Company had cash and cash equivalents of $97.1 million, a working capital surplus of $112.6 million and an accumulated deficit totaling $1,319.1 million. As of September 30, 2025, the Company had $993.5 million aggregate principal outstanding on its term loan.

Previous wording

Prior to the Fourth Amendment, the interest rate per annum applicable to the Incremental Term Loans were based on a fluctuating rate of interest, determined by the Company's leverage ratio, as defined in the 2021 Credit Agreement, as amended. In connection with the Fourth Amendment, the Incremental Term Loans were refinanced together with other term loans outlined in the following paragraphs.

Current wording

Prior to the Fourth Amendment, the interest rate per annum applicable to the Incremental Term Loans were based on a fluctuating rate of interest, determined by the Company's leverage ratio, as defined in the 2021 Credit Agreement. In connection with the Fourth Amendment, the Incremental Term Loans were refinanced together with other term loans outlined in the following paragraphs.

Previous wording

Pursuant to the terms of the Fourth Amendment, the Company incurred incremental term loans in an aggregate principal amount of $225.0 million, which were used to (i) refinance certain outstanding incremental term loans (including the Incremental Term Loans), (ii) extend the maturity of all term loans to January 23, 2032, (iii) remove the credit spread adjustment applicable to Secured Overnight Financing Rate ("SOFR") loans, and (iv) reduce the interest rate margin applicable to all term loans.

Current wording

Pursuant to the terms of the Fourth Amendment, the Company incurred incremental term loans in an aggregate principal amount of $225.0 million, which were used to (i) refinance certain outstanding incremental term loans (including the Incremental Term Loans), (ii) extend the maturity of all term loans to January 23, 2032, (iii) remove the credit spread adjustment applicable to SOFR loans, and (iv) reduce the interest rate margin applicable to all term loans.

Previous wording

Upon execution of the Fourth Amendment, the Company had outstanding borrowings under a term loan of $1,001.0 million (the “Term Loan”) and a revolving credit facility for an aggregate principal amount of $250.0 million (the “2021 Revolving Credit Facility” and together with the Term Loan, the “2021 Credit Facilities”).

Current wording

Upon execution of the Fourth Amendment, the Company had outstanding borrowings under a term loan of $1,001 million (the “Term Loan”) and a revolving credit facility for an aggregate principal amount of $250.0 million (the “2021 Revolving Credit Facility” and together with the Term Loan, the “2021 Credit Facilities”). The 2021 Revolving Credit Facility has a sublimit of $75.0 million for letters of credit.

Previous wording

As of June 30, 2025, the amount outstanding on the Term Loan was $996.0 million, of which, $10.0 million is classified as current.

Current wording

As of September 30, 2025 and December 31, 2024, the amount outstanding on the Term Loan was $993.5 million and $776.0 million, respectively. As of September 30, 2025 and December 31, 2024, $10.0 million and $8.0 million, respectively, was classified as current in the accompanying condensed consolidated balance sheets.

Previous wording

Prior to the Amendments, the interest rate per annum applicable to the loans is based on a fluctuating rate of interest equal to the sum of an applicable rate and term SOFR (other than with respect to Euros, the EURIBOR and with respect to British Pounds Sterling, SONIA) with a term, as selected by the Company, of one, three or six months (subject to (x) in the case of term loans, a 0.50% per annum floor and (y) in the case of revolving loans, a 0.00% per annum floor.

Current wording

Prior to the Amendments, the interest rate per annum applicable to the loans is based on a fluctuating rate of interest equal to the sum of an applicable rate and term SOFR (or EURIBOR or SONIA) with a term, as selected by the Company, of one, three or six months (subject to (x) in the case of term loans, a 0.50% per annum floor and (y) in the case of revolving loans, a 0.00% per annum floor).

Previous wording

During the six months ended June 30, 2025 and 2024, the weighted-average interest rate on the outstanding borrowings under the Term Loan was 6.3% and 7.8%, respectively.

Current wording

During the nine months ended September 30, 2025 and 2024, the weighted-average interest rate on the outstanding borrowings under the Term Loan was 6.3% and 7.8%, respectively.

Previous wording

The Company has outstanding standby letters of credit for $1.1 million which reduces the amount available to be borrowed under the 2021 Revolving Credit Facility. As of June 30, 2025, $248.9 million was available to be borrowed under the 2021 Revolving Credit Facility.

Current wording

As of September 30, 2025 and December 31, 2024, the Company has outstanding standby letters of credit for $1.1 million and $0.7 million, respectively, which reduce the amount available to be borrowed under the 2021 Revolving Credit Facility. As of September 30, 2025 and December 31, 2024, $248.9 million and $249.3 million, respectively, was available to be borrowed.

Previous wording

The terms of the 2021 Credit Agreement include a financial covenant which requires that, at the end of each fiscal quarter, if the aggregate amount of borrowings under the 2021 Revolving Credit Facility exceeds 35% of the aggregate commitments of the Company, the leverage ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries cannot exceed 6.25 to 1.00. Borrowings under the 2021 Revolving Credit Facility did not exceed 35% of the aggregate commitments and the Company was not subject to the leverage test as of June 30, 2025.

Current wording

The terms of the 2021 Credit Agreement include a financial covenant which requires that, at the end of each fiscal quarter, if the aggregate amount of borrowings under the 2021 Revolving Credit Facility exceeds 35% of the aggregate commitments of the Company, the leverage ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries cannot exceed 6.25 to 1.00. Borrowings under the 2021 Revolving Credit Facility did not exceed 35% of the aggregate commitments and the Company was not subject to the leverage test as of September 30, 2025 or December 31, 2024.

Previous wording

Interest Rate Swaps—During the three months ended March 31, 2025, the Company entered into three interest rate swap agreements (the "Swaps") to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt. Pursuant to the terms of the Swaps, beginning on July 31, 2025, the Company will pay an average fixed interest rate of 3.94% on an aggregate notional amount corresponding to borrowings of $750.0 million in exchange for receipts on the same notional amount at a floating interest rate based on the applicable SOFR at the time of payment. The Swaps expire on July 31, 2027.

Current wording

Interest Rate Swaps—In February 2025, the Company entered into three interest rate swap agreements (the "Swaps") to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt. Pursuant to the terms of the Swaps, beginning on July 31, 2025, the Company will pay an average fixed interest rate of 3.94% on an aggregate notional amount corresponding to borrowings of $750.0 million in exchange for receipts on the same notional amount at a floating interest rate based on the applicable SOFR at the time of payment. The Swaps expire on July 31, 2027.