Leases

3 Months Ended

Mar. 31, 2026

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring from April 2026 to March 2036. The following table summarizes the lease expense by category in the Consolidated Statements of Income:


(in thousands)	For the Three Months Ended March 31,
	2026		2025
Cost of sales	$	3,538	$	2,185
Research and development expenses	79		79
Selling, general and administrative expenses	61		42
Interest expense	27		14
Total	$	3,705	$	2,320

The following table summarizes the components of lease expense and income:


(in thousands)	For the Three Months Ended March 31,
	2026		2025

Operating lease cost	$	2,949	$	1,598
Finance lease cost
Amortization of right-of-use (“ROU”) asset	96		59
Interest expense	27		15
Short-term lease cost	215		181
Variable lease cost	418		467

Total lease cost, net	$	3,705	$	2,320

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,982	$	1,449
Operating cash flows paid for interest portion of finance leases	27		15
Financing cash flows paid for principal portion of finance leases	86		56
ROU assets obtained in exchange for lease obligations
Operating leases	9,953		18,355
Finance leases	111		904

As of March 31, 2026 and December 31, 2025, the weighted-average remaining lease term was 8.0 years and 7.7 years for operating leases and 4.0 years and 4.4 years for finance leases, respectively. As of March 31, 2026 and December 31, 2025, the weighted-average discount rate was 7.1% and 7.3% for operating leases, respectively. As of both March 31, 2026 and December 31, 2025 weighted-average discount rate was 6.9% for finance leases.

The following table presents supplemental balance sheet information related to leases:


(in thousands)	March 31, 2026		December 31, 2025

Operating lease ROU assets, net	$	61,164	$	52,911

Operating lease liabilities, current	7,351		6,346
Operating lease liabilities, non-current	55,628		49,397
Total operating lease liabilities	$	62,979	$	55,743

Finance lease ROU assets, net 1	$	1,534	$	1,533

Finance lease liabilities, current	364		355
Finance lease liabilities, non-current	1,223		1,224
Total finance lease liabilities	$	1,587	$	1,579

1.Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2026:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2026	$	8,651	$	345
Year ending December 31, 2027	11,642		460
Year ending December 31, 2028	10,612		460
Year ending December 31, 2029	9,803		441
Year ending December 31, 2030	8,448		100
Year ending December 31, 2031	6,471		2
Thereafter	27,669		—
Total undiscounted lease payments	83,296		1,808
Less: imputed interest	20,317		221
Total lease liabilities	$	62,979	$	1,587

Leases


(in thousands)	For the Three Months Ended March 31,
	2026		2025
Cost of sales	$	3,538	$	2,185
Research and development expenses	79		79
Selling, general and administrative expenses	61		42
Interest expense	27		14
Total	$	3,705	$	2,320

The following table summarizes the components of lease expense and income:


(in thousands)	For the Three Months Ended March 31,
	2026		2025

Operating lease cost	$	2,949	$	1,598
Finance lease cost
Amortization of right-of-use (“ROU”) asset	96		59
Interest expense	27		15
Short-term lease cost	215		181
Variable lease cost	418		467

Total lease cost, net	$	3,705	$	2,320

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,982	$	1,449
Operating cash flows paid for interest portion of finance leases	27		15
Financing cash flows paid for principal portion of finance leases	86		56
ROU assets obtained in exchange for lease obligations
Operating leases	9,953		18,355
Finance leases	111		904

The following table presents supplemental balance sheet information related to leases:


(in thousands)	March 31, 2026		December 31, 2025

Operating lease ROU assets, net	$	61,164	$	52,911

Operating lease liabilities, current	7,351		6,346
Operating lease liabilities, non-current	55,628		49,397
Total operating lease liabilities	$	62,979	$	55,743

Finance lease ROU assets, net 1	$	1,534	$	1,533

Finance lease liabilities, current	364		355
Finance lease liabilities, non-current	1,223		1,224
Total finance lease liabilities	$	1,587	$	1,579

1.Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2026:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2026	$	8,651	$	345
Year ending December 31, 2027	11,642		460
Year ending December 31, 2028	10,612		460
Year ending December 31, 2029	9,803		441
Year ending December 31, 2030	8,448		100
Year ending December 31, 2031	6,471		2
Thereafter	27,669		—
Total undiscounted lease payments	83,296		1,808
Less: imputed interest	20,317		221
Total lease liabilities	$	62,979	$	1,587