The Company recognizes ROU Assets and lease liabilities for automobiles, office buildings, IT equipment and small storage units for the temporary storage of operational equipment. The Company’s leases have remaining lease terms ranging from less than 1 year to 5 years. The Company recognizes extension options as part of the initial lease term for ROU Assets and lease liabilities when it is reasonably certain that the Company will exercise the extension option upon the completion of the initial lease term. Most leases include the option to terminate the lease within 1 year.

The Company uses practical expedients offered under the ASC 842 - Leases to combine lease and non-lease components within leasing arrangements and to recognize the payments associated with short-term leases in earnings on a straight-line basis over the lease term, with the cost associated with variable lease payments recognized when incurred. These accounting policy elections impact the value of the Company’s ROU Assets and lease liabilities. The value of the Company’s ROU Assets is determined as the carrying value of its leasing arrangements and is recorded in “Property and equipment, net” on the Company’s Consolidated Balance Sheets. The value of the Company’s lease liabilities is the present value of fixed lease payments not yet paid, which is discounted using either the rate implicit in the lease contract if that rate can be determined or the Company’s incremental borrowing rate (“IBR”). The Company’s IBR is determined as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment.

Any future lease payments that are not fixed based on the terms of the lease contract, or fluctuate based on a factor other than an index or rate, are considered variable lease payments and are not included in the value of the Company’s ROU Assets or lease liabilities. The Company’s variable lease payments are mostly incurred from automobile leases and relate to miscellaneous transportation costs including repair costs, insurance, and terminal rental adjustment payments due at lease settlement. Such rental adjustment payments may increase or decrease the Company’s total variable lease payments.


	Six Months Ended June 30,
	2026			2025
	(dollar amounts in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,839		$	4,393
Weighted-average remaining lease term — operating leases	5.1 years			2.4 years
Weighted-average discount rate — operating leases	6.5		%	6.9		%

During the three and six months ended June 30, 2026, ROU Assets and lease liabilities were reduced by $0.2 million and $0.6 million, respectively, due to lease cancellations. During the three and six months ended June 30, 2025, ROU Assets and lease liabilities were reduced by $0.3 million and $1.6 million, respectively, due to lease cancellations.


Period/Year	Operating Leases
	(in thousands)
July 1 to December 31, 2026	$	3,428
2027	5,563
2028	3,704
2029	2,134
2030	1,237
2031 and thereafter	4,605
Total minimum lease payments	$	20,671
Less: imputed interest	2,942
Present value of lease liabilities	$	17,729