v3.26.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Schedule of Supplemental Balance Sheets Information
The following table summarizes the lease amounts included in the Company's condensed consolidated balance sheets:
(in thousands)Classification on the Condensed Consolidated Balance SheetsMarch 31, 2026December 31, 2025
Assets
Operating
Operating lease right-of-use assets(1)(2)
$19,252 $19,792 
Finance
Property and equipment, net(3)(4)
20,509 22,002 
Total lease assets$39,761 $41,794 
Liabilities
Current
   OperatingCurrent operating lease liabilities$4,598 $4,379 
   FinanceCurrent portion of long-term debt4,906 5,031 
Noncurrent
   OperatingLong-term operating lease liabilities15,224 15,925 
   Finance
Long-term debt(5)
19,713 20,890 
Total lease liabilities$44,441 $46,225 
(1)     Operating lease assets are recorded net of accumulated amortization of $19.0 million at March 31, 2026 and $17.9 million at December 31, 2025.
(2)    Includes approximately $0.7 million and $0.8 million at March 31, 2026 and December 31, 2025, respectively, related to a below-market lease recognized as a result of the Industrial Air acquisition, which was recorded as an increase to the Company’s operating lease right-of-use assets on its condensed consolidated balance sheet. The below-market lease will be amortized to amortization expense over the remaining lease term.
(3)    Finance lease vehicle assets are recorded net of accumulated amortization of $8.7 million at March 31, 2026 and $8.2 million at December 31, 2025.
(4)    Includes approximately $2.2 million of net property assets associated with the Company's Pontiac Facility at both March 31, 2026 and December 31, 2025.
(5)    Includes approximately $5.4 million associated with the Company's sale and leaseback financing transaction at both March 31, 2026 and December 31, 2025. See Note 6 for further detail.
Schedule of Lease Costs, Lease Terms and Discount Rates
The following table summarizes the lease costs included in the Company's condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
(in thousands)Classification on the Condensed Consolidated Statement of Operations20262025
Operating lease cost
Cost of revenue(1)
$800 $858 
Operating lease cost
Selling, general and administrative(1)
601 447 
Finance lease cost
   Amortization
Cost of revenue(2)
1,424 929 
   Interest
Interest expense, net(2)
261 176 
Total lease cost$3,086 $2,410 
(1)    Operating lease costs recorded in cost of revenue included $0.1 million of variable lease costs for both the three months ended March 31, 2026 and 2025. In addition, $0.1 million of variable lease costs are included in selling, general and administrative for both the three months ended March 31, 2026 and 2025. These variable costs consist of the Company's proportionate share of operating expenses, real estate taxes and utilities.
(2)     Finance lease costs recorded in cost of revenue includes variable lease costs of $0.8 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively. These variable lease costs consist of fuel, maintenance, and sales tax charges.
The following is a summary of the lease terms and discount rates as of:
March 31, 2026December 31, 2025
Weighted average lease term (in years):
   Operating5.255.43
   Finance (1)
3.763.95
Weighted average discount rate:
   Operating6.17 %6.18 %
   Finance (1)
5.38 %5.41 %
(1)     Excludes the weighted average lease term and weighted average discount rate associated with the aforementioned sale-leaseback financing transaction, which has a Primary Term of 25 years and utilized an implicit rate of 11.11%. See Note 6 for further detail.
Schedule of Future Minimum Commitment for Finance Leases
The future undiscounted minimum finance lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s condensed consolidated balance sheets within current and long-term debt, less interest, and under current and long-term operating leases, less imputed interest, as of March 31, 2026 were as follows (in thousands):
Year ending:VehiclesPontiac FacilityTotal
Finance Lease Obligations		Operating Lease Obligations
Sublease Receipts(1)
Remainder of 2026$4,356 $407 $4,763 $4,191 $854 
20275,171 555 5,726 5,024 495 
20284,491 569 5,060 4,205 14 
20294,659 583 5,242 3,506 — 
20302,700 597 3,297 2,224 — 
Thereafter2 12,552 12,554 3,972 — 
Total minimum lease payments21,379 15,263 36,642 23,122 $1,363 
Financing Component (2)
(2,111)(9,912)(12,023)(3,300)
Net present value of minimum lease payments19,268 5,351 24,619 19,822 
Less: current portion of finance and operating lease obligations(4,906)— (4,906)(4,598)
Long-term finance and operating lease obligations$14,362 $5,351 $19,713 $15,224 
(1)    Primarily associated with the aforementioned third-party sublease agreement.
(2)     The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Schedule of Future Minimum Commitment for Operating Leases
The future undiscounted minimum finance lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s condensed consolidated balance sheets within current and long-term debt, less interest, and under current and long-term operating leases, less imputed interest, as of March 31, 2026 were as follows (in thousands):
Year ending:VehiclesPontiac FacilityTotal
Finance Lease Obligations		Operating Lease Obligations
Sublease Receipts(1)
Remainder of 2026$4,356 $407 $4,763 $4,191 $854 
20275,171 555 5,726 5,024 495 
20284,491 569 5,060 4,205 14 
20294,659 583 5,242 3,506 — 
20302,700 597 3,297 2,224 — 
Thereafter2 12,552 12,554 3,972 — 
Total minimum lease payments21,379 15,263 36,642 23,122 $1,363 
Financing Component (2)
(2,111)(9,912)(12,023)(3,300)
Net present value of minimum lease payments19,268 5,351 24,619 19,822 
Less: current portion of finance and operating lease obligations(4,906)— (4,906)(4,598)
Long-term finance and operating lease obligations$14,362 $5,351 $19,713 $15,224 
(1)    Primarily associated with the aforementioned third-party sublease agreement.
(2)     The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Schedule of Leases Supplemental Cash Flow Information
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Three months ended March 31,
(in thousands)20262025
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash flows from operating leases$1,368 $1,296 
   Operating cash flows from finance leases205 163 
   Financing cash flows from finance leases1,264 851 
Right-of-use assets exchanged for lease liabilities:
   Operating leases589 — 
   Finance leases— 1,318 
Right-of-use assets disposed or adjusted modifying operating leases liabilities— — 
Right-of-use assets disposed or adjusted modifying finance leases liabilities9 —