The Company leases power equipment to customers through operating leases. These agreements are short-term with terms ranging from monthly to one year. There are no renewal options that are reasonably certain to be exercised, or early termination options based on established terms specific to the individual agreement.

The following table presents the underlying gross assets and accumulated depreciation of power equipment leases included in property, plant and equipment, net (in thousands):


	March 31, 2026			December 31, 2025
Gross assets	$	49,564		$	41,700
Less: Accumulated depreciation		(7,076	)		(4,344	)
Net assets	$	42,488		$	37,356

Revenues from the leased power equipment for the three months ended March 31, 2026 and 2025, was $17.5 million and $7.3 million, respectively, which is presented as rental revenue on the condensed consolidated statements of operations.

The estimated future undiscounted cash flows from lessor revenue are not expected to be material as our lessor leases are short-term.

We have operating and finance leases primarily for office space, equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset.

Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.

The components of lease cost were as follows (in thousands):



	Three Months Ended March 31,
	2026		2025
Finance lease cost:
Amortization of right-of-use assets	$	2,741	$	877
Interest on lease liabilities		966		68
Operating lease cost		1,725		2,504
Variable lease cost		587		207
Short-term lease cost		26,497		19,687
Total lease cost	$	32,516	$	23,343

Supplemental cash flow and other information related to leases were as follows (in thousands):



	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash inflows from operating leases (a)	$	2,069	$	—
Operating cash outflows from operating leases	$	1,644	$	2,542
Operating cash outflows from finance leases	$	966	$	68
Financing cash outflows from finance leases	$	2,134	$	959
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	3,662	$	5,472
Finance leases	$	26,680	$	1,414

(a) The Company received lease incentives from a landlord of $2.1 million as of March 31, 2026, which is reflected as a reduction of the operating lease liability.

Lease terms and discount rates as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026			December 31, 2025
Weighted-average remaining lease term:
Operating leases	5.0 years			4.5 years
Finance leases	5.8 years			5.5 years
Weighted-average discount rate:
Operating leases		8.3	%		8.5	%
Finance leases		8.5	%		8.3	%

Future minimum lease commitments as of March 31, 2026 are as follows (in thousands):


	Finance		Operating
Remainder of 2026	$	10,359	$	3,443
2027		12,325		4,012
2028		11,076		3,663
2029		10,446		3,492
2030		10,166		3,515
Thereafter		12,999		3,063
Total lease payments	$	67,371	$	21,188
Less imputed interest		14,281		4,393
Total	$	53,090	$	16,795

On February 17, 2025, we entered into two master lease agreements between subsidiaries of the Company as lessees and a counterparty as the lessor in each case, to fund up to $65.0 million of purchases of transportation and logistics equipment. The progress rent for financing on any purchased equipment is based on the monthly equivalent lease rate factor to be determined at execution of each lease schedule.

On December 26, 2025, the Company, entered into a master lease agreement (the “Lease Agreement”) by and between Socorro, as lessee, and Stonebriar, as lessor, and an Interim Funding Agreement (the “Interim Funding Agreement” and, together with the Lease Agreement, the “Lease Documents”), by and between Socorro and Stonebriar, pursuant to which Socorro assigned a reservation agreement (the “Reservation Agreement”) for the manufacture of approximately 240 MW of power generation equipment (the “Equipment”) to Stonebriar and Stonebriar agreed to lease such power generation equipment back to Socorro.

Pursuant to the Lease Documents, Stonebriar will make periodic advances up to $385.0 million and Socorro will make payments to Stonebriar in two phases: (i) monthly rental payments in the amount of the unpaid balance of the aggregate amounts advanced by Stonebriar multiplied by a lease rate factor equal to a per annum rate equal to the sum of one-month Secured Overnight Financing Rate (“SOFR”) plus 635 basis points and (ii) once Equipment (as defined in the Interim Funding Agreement) under the Reservation Agreement is delivered to and accepted by Socorro, monthly rental payments in an amount set forth in the applicable Schedule (as defined in the Interim Funding Agreement) relating to such Equipment. The Lease Agreement provides that Socorro may terminate the Lease Agreement (x) prior to the Term Expiration Date (as defined in the Lease Agreement) for an early termination price set forth on the Schedule for such Equipment or (y) on the Term Expiration Date as set forth on the Schedule for such Equipment, in each case, subject to certain terms and conditions described in the Lease Agreement. The obligations under the Lease Agreement are guaranteed on an unsecured basis by the Company.

As of March 31, 2026, we had $70.6 million of additional leases that have not yet commenced. Certain equipment leases discussed here are a component of the purchase commitments discussed in Note 9 - Commitments and Contingencies.