The Company has operating leases for office and warehouse space and certain equipment. In certain of the Company’s lease agreements, the rental payments are adjusted periodically based on defined terms within the lease. The Company did not have any finance leases for the six months ended June 30, 2026 and 2025.

Our leases relating to office and warehouse space have lease terms of 87 months to 125 months. Our leases relating to equipment have lease terms of 36 months, with certain of them having automatic renewal clauses.

The Company’s warehouse agreements also contain non-lease components, in the form of payments towards variable logistics services and labor charges, which the Company is obligated to pay based on the services consumed by it. Such amounts are not included in the measurement of the lease liability but are recognized as expenses when they are incurred.

The operating lease expense was $1.3 million and $1.2 million for the three months ended June 30, 2026 and 2025, and $2.6 million and $2.5 million for the six months ended June 30, 2026 and 2025.


	Six months ended June 30,
	2026		2025

Cash paid for amounts included in the measurements of lease liabilities
Operating cash flow used in operating leases	$	2,884	$	3,215

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	19,370	$	—

As of June 30, 2026, the weighted average remaining lease term was 5 years, 4 months and the weighted average discount rate was 4.60%.

The following table presents the maturity of the Company’s operating lease liabilities as of June 30, 2026 (in thousands):


2026 (excluding the six months ended June 30, 2026)	$	3,077
2027	6,548
2028	6,782
2029	4,546
2030	4,208
Thereafter	6,357
Total lease payments	$	31,518
Less: Imputed interest	(3,900)
Total	$	27,618

During the three months ended June 30, 2026, the Company executed an amendment to extend the lease and reduce the square footage for our distribution facility located at 2000 Rock Glenn Boulevard, Havre De Grace, Maryland 21078 with a term of 5 years (the “HdG Lease”). The amendment to the HdG Lease commenced in June 2026, at which time the Company remeasured its right-of-use asset and corresponding lease liability by $12.5 million and $12.7 million, respectively. The future minimum lease commitments related to the HdG Lease are included in the table above.

During the six months ended June 30, 2026, the Company’s lease commenced for a new headquarters office space in 1501 South Clinton Street, Baltimore, Maryland 21224, with a lease term of 8 years and 7 months. The Company recorded an initial right-of-use asset and corresponding lease liability of $6.8 million during the period ended March 31, 2026. The Company did

not renew its office space lease in 100 International Drive, Baltimore, Maryland 21202 which expired in February 2026. The future minimum lease commitments related to this lease are included in the table above.