Leases

6 Months Ended

Jun. 30, 2026

8. Leases

The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 8 years, with a weighted-average remaining lease term of 3 years and 4 years at June 30, 2026 and December 31, 2025, respectively. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend.

The components of net operating lease costs for the three- and six-month periods ended June 30, 2026 and 2025 were as follows (in thousands):


			Three Months Ended June 30,						Six Months Ended June 30,
	Classification		2026			2025			2026			2025
Operating lease costs⁽¹⁾	Cost of revenues		$	776		$	975		$	1,481		$	1,699
Operating lease costs⁽¹⁾	Selling, general and administrative expenses			79			78			158			162
Rental revenues	Revenues			—			(18)			(31)			(73)
Rental revenues	Other (income) expense, net			(6)			(23)			(32)			(54)
Net operating lease costs			$	849		$	1,012		$	1,576		$	1,734

(1)	Includes the costs of leases with a term of one year or less.

As of June 30, 2026, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands):


2026 (excluding the six months ended June 30, 2026)	$	854
2027		1,328
2028		635
2029		217
2030		191
Thereafter		290
Total future minimum lease payments		3,515
Less imputed interest		(269)
Present value of lease liabilities	$	3,246

Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2026 and 2025 is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Cash payments for lease liabilities included in operating cash flows	$	922	$	913
Right-of-use assets obtained in exchange for operating lease obligations	$	—	$	217