To conduct certain of our operations, the Company is a party to leases for office space, warehouses, Company-operated store locations and vehicles.

The presentation of right-of-use assets and lease liabilities in the condensed consolidated balance sheets is as follows (in thousands):


Leases	Classification	March 31, 2026		December 31, 2025
Assets
Right-of-use assets	Other assets(1)	$	15,660	$	15,878
Total leased assets		$	15,660	$	15,878

Liabilities
Current
Operating	Accrued and other liabilities	$	6,109	$	6,207
Noncurrent
Operating	Lease liabilities	15,359		15,483
Total Lease liabilities		$	21,468	$	21,690

(1) Operating right-of-use assets are recorded net of accumulated amortization of $14.6 million and $16.9 million as of March 31, 2026 and December 31, 2025, respectively.

Operating lease cost for the three months ended March 31, 2026 and 2025, respectively, was as follows (in thousands):


	Three Months Ended March 31,
Lease Cost		2026		2025
Operating lease cost (2)		$	1,798	$	1,745

(2) Operating lease cost is included in other selling, general and administrative expenses in the condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2026 and 2025.

As of March 31, 2026 and December 31, 2025, the Company’s weighted-average remaining lease terms on its operating leases is 5.9 and 6.2 years, and the Company’s weighted-average discount rate is 6.36% and 6.48%, respectively, which is the Company’s incremental

borrowing rate. The Company used its incremental borrowing rate for all leases, as none of the Company’s lease agreements provide a readily determinable implicit rate.

Future minimum lease payments for assets under non-cancelable operating lease agreements with original terms of more than one year are as follows (in thousands):


2026	$	5,006
2027	5,170
2028	3,534
2029	2,298
2030	2,226
Thereafter	7,575
Total lease payments	25,809
Less: Imputed interest	(4,341)
Present value of lease liabilities	$	21,468