The Company has various operating leases for fulfillment, pharmacy, and corporate facilities with lease periods expiring between fiscal years 2027 and 2041, including renewal options the Company is reasonably certain to exercise. The operating lease agreements provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. The Company utilizes the reasonably certain threshold criteria in determining which options it will exercise.

During the three months ended March 31, 2026, the Company executed a new operating lease, resulting in an additional operating lease right-of-use (“ROU”) asset of $1.4 million, along with a corresponding increase to operating lease liabilities. Additionally, there were remeasurements of existing operating lease liabilities during the three months ended March 31, 2026 which resulted in an aggregate adjustment of $8.2 million to the carrying amount of the corresponding ROU assets.

For the three months ended March 31, 2026 and 2025, the Company recorded operating lease costs of $5.0 million and $1.3 million, respectively, including variable operating lease costs of $0.4 million and $0.1 million, respectively.

For the three months ended March 31, 2026 and 2025, operating cash flows used for operating leases were $1.9 million and $1.2 million, respectively. As of March 31, 2026, the weighted average remaining lease term and weighted average discount rate, including for renewal options the Company is reasonably certain to exercise, was 12.7 years and 6.0%, respectively.

Future minimum lease payments under the Company's non-cancelable operating leases with an initial lease term in excess of one year subsequent to March 31, 2026 are as follows (in thousands):


The remainder of 2026	$	10,695
2027	16,899
2028	17,114
2029	17,432
2030	17,750
2031 and thereafter	151,625
Gross lease payments	231,515
Less: imputed interest	(73,584)

Present value of net future minimum lease payments	$	157,931

The lease payments above do not include $21.2 million of non-cancelable commitments related to a lease that was signed but had not yet commenced as of March 31, 2026.