v3.26.1
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property and Equipment [Abstract]  
Property and Equipment

6. Property and Equipment

 

Property and equipment consisted of the following (in thousands):

 

   As of December 31, 
   2025   2024 
Equipment  $80,999   $70,900 
Equipment in progress   7,218    13,130 
Leasehold improvements   58,862    57,936 
Furniture and fixtures   30,744    32,699 
Office equipment   1,624    1,611 
Total property and equipment   179,447    176,276 
Accumulated depreciation   (101,486)   (82,402)
Property and equipment, net  $77,961   $93,874 

Equipment in progress reflects equipment, primarily related to mattress manufacturing, which is being constructed and was not in service at December 31, 2025 or 2024. Interest capitalized on borrowings during the active construction period of major capital projects totaled $0.7 million, $1.1 million and $1.5 million during the years ended December 31, 2025, 2024 and 2023, respectively. Depreciation expense was $20.8 million, $31.0 million and $19.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Included in depreciation expense for the years ended December 31, 2025 and 2024 were $5.7 million and $11.3 million of accelerated depreciation recorded in conjunction with the Restructuring Plan, respectively. Refer to Note 3— Restructuring and Impairment Charges for more information.