The Company has operating leases for office space and a data center and, upon the completion of the merger with TBHC, certain retail store locations. The Company's leases have remaining lease terms of one year to seven years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within one year. Variable lease costs include executory costs, such as taxes, insurance, and maintenance.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	10,091	$	521	$	10,409	$	1,433

Short-term lease cost	226		—		226		—
Variable lease cost	20		308		32		617

The following table provides a summary of other information related to leases (in thousands):


	Six months ended June 30,
	2026		2025

Cash payments included in operating cash flows from lease arrangements	$	11,672	$	1,226


	June 30, 2026		December 31, 2025
Weighted-average remaining lease term—operating leases	3.97 years		6.76 years
Weighted-average discount rate—operating leases	10	%	7	%

Maturity of lease liabilities under non-cancellable operating leases as of June 30, 2026, are as follows (in thousands):


Payments due by period	Amount
2026 (Remainder)	$	17,562
2027	37,546
2028	27,919
2029	19,789
2030	12,199
Thereafter	10,919
Total lease payments	125,934
Less interest	9,301
Present value of lease liabilities	$	116,633

During the three and six months ended June 30, 2026, the Company recognized $5.2 million of impairment expense related to right-of-use assets and related long-lived store assets arising from store-closure decisions. Impairment expense is recognized in the consolidated statement of operations as other operating expense (income), net.