v3.26.1
PROPERTY AND EQUIPMENT
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
(in thousands)March 31, 2026December 31, 2025
Leasehold improvements$222,811 $219,389 
Buildings213,788 213,781 
Furniture, fixtures, and equipment95,234 92,168 
Construction in progress9,873 9,634 
Land5,782 5,782 
Property and equipment, gross547,488 540,754 
Less: accumulated depreciation170,887 158,352 
Property and equipment, net$376,601 $382,402 
Total depreciation expense was $12,535 and $9,860 during the three months ended March 31, 2026 and 2025, respectively. Total depreciation expense capitalized to inventory was $8,387 and $7,019 during the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026 and December 31, 2025, $3,132 and $1,966, respectively, of depreciation expense remained capitalized as part of inventory. Disposals and write-offs of accumulated depreciation during the three months ended March 31, 2026 were not material. During the three months ended March 31, 2026, the Company wrote off a total of $244 of certain construction in progress projects, which is included within “General and administrative expenses” on the unaudited Condensed Consolidated Statements of Operations and within “Other” on the unaudited Condensed Consolidated Statements of Cash Flows.
The table above includes the following amounts related to finance leases:
(in thousands)March 31, 2026December 31, 2025
Buildings$128,859 $128,859 
Vehicles(1)
2,991 2,801 
Equipment(1)(2)
2,321 2,321 
134,171 133,981 
Less: accumulated amortization(3)
7,815 5,249 
Total(4)
$126,356 $128,732 
(1)Included within “Furniture, fixtures, and equipment.”
(2)Equipment leased pursuant to a master lease agreement that was entered into in June 2022, which provided for up to $15,000 in aggregate, pursuant to individual lease agreements.
(3)Included within “Accumulated depreciation.” Disposals and write-offs of accumulated amortization during the three months ended March 31, 2026 were not material.
(4)Refer to Note 10, “Leases,” for additional information regarding our lease arrangements.