v3.26.1
Leases
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of March 31, 2026 and December 31, 2025 consisted of the following items:
As of
(in thousands)March 31, 2026December 31, 2025
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$6,108 $6,793 
Operating lease obligations, current$2,933 $2,842 
Long-term operating lease obligations5,220 6,086 
Total operating lease obligations$8,153 $8,928 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$221 $276 
Finance lease obligations, current$236 $231 
Long-term finance lease obligations27 88 
Total finance lease obligations$263 $319 
(1) Operating lease ROU assets are reported net of accumulated amortization of $7.3 million and $6.6 million as of March 31, 2026 and December 31, 2025, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.5 million and $2.8 million as of March 31, 2026 and December 31, 2025, respectively.
Operating leases
ROU assets under operating leases are included in the "Other long-term assets" line item, and operating lease liabilities are included in "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.
Lease expense for operating leases for the three months ended March 31, 2026 was $1.5 million, of which $1.3 million is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.2 million is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Lease expense for operating leases for the three months ended March 31, 2025 was $1.1 million, of which $1.0 million is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.1 million is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
In 2025, the Company renewed its lease of land where the Corbin Facility is located (the "Corbin Lease") through August 31, 2030 in accordance with the Corbin Lease renewal term, which allows for automatic five-year renewals by the Company. As of December 31, 2025 and based on the Company's decision to idle the Corbin Facility indefinitely, the Company revalued the Corbin Lease liability and the related ROU asset (the "Corbin ROU Asset") based on a reduction from its estimated expected termination date of August 31, 2040, to August 31, 2030. The revaluation resulted in a reduction to both the Corbin Lease Liability and the Corbin ROU Asset in the amount of $0.8 million.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item, and finance lease liabilities are included in the "Current portion of long-term debt" and "Long-term debt, net of current portion" line items, respectively, in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.
Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025.
Lease financial information as of and for the three months ended March 31, 2026 and 2025 is provided in the following table:
Three Months Ended March 31,
(in thousands)20262025
Finance lease cost:
Amortization of right-of-use assets$55 $116 
Interest on lease liabilities26 38 
Operating lease cost884 837 
Short-term lease cost544 274 
Variable lease cost (1)
77 9 
Total lease cost$1,586 $1,274 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$26 $38 
Operating cash flows from operating leases$776 $540 
Financing cash flows from finance leases$56 $201 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $1,366 
Weighted-average remaining lease term - finance leases1.0 year1.4 years
Weighted-average remaining lease term - operating leases3.6 years6.7 years
Weighted-average discount rate - finance leases8.9 %6.2 %
Weighted-average discount rate - operating leases9.6 %11.6 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of March 31, 2026 and December 31, 2025 consisted of the following items:
As of
(in thousands)March 31, 2026December 31, 2025
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$6,108 $6,793 
Operating lease obligations, current$2,933 $2,842 
Long-term operating lease obligations5,220 6,086 
Total operating lease obligations$8,153 $8,928 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$221 $276 
Finance lease obligations, current$236 $231 
Long-term finance lease obligations27 88 
Total finance lease obligations$263 $319 
(1) Operating lease ROU assets are reported net of accumulated amortization of $7.3 million and $6.6 million as of March 31, 2026 and December 31, 2025, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.5 million and $2.8 million as of March 31, 2026 and December 31, 2025, respectively.
Operating leases
ROU assets under operating leases are included in the "Other long-term assets" line item, and operating lease liabilities are included in "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.
Lease expense for operating leases for the three months ended March 31, 2026 was $1.5 million, of which $1.3 million is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.2 million is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Lease expense for operating leases for the three months ended March 31, 2025 was $1.1 million, of which $1.0 million is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.1 million is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
In 2025, the Company renewed its lease of land where the Corbin Facility is located (the "Corbin Lease") through August 31, 2030 in accordance with the Corbin Lease renewal term, which allows for automatic five-year renewals by the Company. As of December 31, 2025 and based on the Company's decision to idle the Corbin Facility indefinitely, the Company revalued the Corbin Lease liability and the related ROU asset (the "Corbin ROU Asset") based on a reduction from its estimated expected termination date of August 31, 2040, to August 31, 2030. The revaluation resulted in a reduction to both the Corbin Lease Liability and the Corbin ROU Asset in the amount of $0.8 million.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item, and finance lease liabilities are included in the "Current portion of long-term debt" and "Long-term debt, net of current portion" line items, respectively, in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.
Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025.
Lease financial information as of and for the three months ended March 31, 2026 and 2025 is provided in the following table:
Three Months Ended March 31,
(in thousands)20262025
Finance lease cost:
Amortization of right-of-use assets$55 $116 
Interest on lease liabilities26 38 
Operating lease cost884 837 
Short-term lease cost544 274 
Variable lease cost (1)
77 9 
Total lease cost$1,586 $1,274 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$26 $38 
Operating cash flows from operating leases$776 $540 
Financing cash flows from finance leases$56 $201 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $1,366 
Weighted-average remaining lease term - finance leases1.0 year1.4 years
Weighted-average remaining lease term - operating leases3.6 years6.7 years
Weighted-average discount rate - finance leases8.9 %6.2 %
Weighted-average discount rate - operating leases9.6 %11.6 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.