Lease Arrangements

6 Months Ended

Jun. 30, 2026

We lease property in multiple facilities across the U.S., Italy, and Ireland, including facilities located in El Segundo, CA and the Dunkirk Facility in upstate New York. Substantially all of our operating lease right-of-use assets and operating lease liabilities are related to facilities leases. Our finance leases are related to equipment rentals. See Note 12 “Related-Party Agreements” for more information about our related-party leases.

Our leases generally have initial terms ranging from two to ten years and often include one or more options to renew. These renewal terms can extend the lease term from one to ten years and are included in the lease term when it is reasonably certain that we will exercise the option.

Supplemental balance sheet information related to our leases is as follows (in thousands):




	Classification	June 30, 2026		December 31, 2025

Assets
Operating lease assets (including amounts with related parties)	Operating lease right-of-use assets	$	31,271	$	33,010
Finance lease assets	Other assets	240		271
Total lease assets (including amounts with related parties)		$	31,511	$	33,281

Liabilities
Current:
Operating lease liabilities (including amounts with related parties)	Operating lease liabilities	$	7,508	$	7,535
Finance lease liabilities	Accrued expenses and other liabilities	55		52
Noncurrent:
Operating lease liabilities (including amounts with related parties)	Operating lease liabilities, less current portion	31,203		33,447
Finance lease liabilities	Other liabilities	199		227
Total lease liabilities (including amounts with related parties)		$	38,965	$	41,261

Information regarding our lease terms is as follows:


	June 30, 2026		December 31, 2025


Weighted-average remaining lease term:
Operating leases	4.3 years		4.6 years
Finance leases	3.9 years		4.4 years
Weighted-average discount rate:
Operating leases	11.1	%	11.1	%
Finance leases	11.6	%	11.6	%

Cash paid for amounts included in the measurement of lease liabilities is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025


Cash paid for operating leases (excluding variable lease costs)	$	6,312	$	5,855
Financing cash flow from finance leases	25		4
Operating cash flow from finance leases	14		3

Future minimum lease payments as of June 30, 2026, including $13.0 million related to options to extend lease terms that are reasonably certain of being exercised, are presented in the following table (in thousands). Common area maintenance costs and taxes are not included in these payments.


Years Ending December 31:	Operating Leases		Finance Leases		Total

2026 (excluding the six months ended June 30, 2026)	$	5,607	$	40	$	5,647
2027	11,175		79		11,254
2028	11,349		79		11,428
2029	10,221		79		10,300
2030	7,837		34		7,871
2031	1,523		—		1,523
Thereafter	458		—		458
Total future minimum lease payments	48,170		311		48,481
Less: Interest	9,459		57		9,516


Present value of lease liabilities	$	38,711	$	254	$	38,965

There have been no material changes related to our existing lease agreements from those disclosed in Note 10 “Lease Arrangements” of the “Notes to Consolidated Financial Statements” that appears in Part II, Item 8. “Financial Statements and Supplementary Data” of our Annual Report filed with the SEC on February 23, 2026.

Lease Arrangements

Supplemental balance sheet information related to our leases is as follows (in thousands):




	Classification	June 30, 2026		December 31, 2025

Assets
Operating lease assets (including amounts with related parties)	Operating lease right-of-use assets	$	31,271	$	33,010
Finance lease assets	Other assets	240		271
Total lease assets (including amounts with related parties)		$	31,511	$	33,281

Liabilities
Current:
Operating lease liabilities (including amounts with related parties)	Operating lease liabilities	$	7,508	$	7,535
Finance lease liabilities	Accrued expenses and other liabilities	55		52
Noncurrent:
Operating lease liabilities (including amounts with related parties)	Operating lease liabilities, less current portion	31,203		33,447
Finance lease liabilities	Other liabilities	199		227
Total lease liabilities (including amounts with related parties)		$	38,965	$	41,261

Information regarding our lease terms is as follows:


	June 30, 2026		December 31, 2025


Weighted-average remaining lease term:
Operating leases	4.3 years		4.6 years
Finance leases	3.9 years		4.4 years
Weighted-average discount rate:
Operating leases	11.1	%	11.1	%
Finance leases	11.6	%	11.6	%

Cash paid for amounts included in the measurement of lease liabilities is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025


Cash paid for operating leases (excluding variable lease costs)	$	6,312	$	5,855
Financing cash flow from finance leases	25		4
Operating cash flow from finance leases	14		3


Years Ending December 31:	Operating Leases		Finance Leases		Total

2026 (excluding the six months ended June 30, 2026)	$	5,607	$	40	$	5,647
2027	11,175		79		11,254
2028	11,349		79		11,428
2029	10,221		79		10,300
2030	7,837		34		7,871
2031	1,523		—		1,523
Thereafter	458		—		458
Total future minimum lease payments	48,170		311		48,481
Less: Interest	9,459		57		9,516


Present value of lease liabilities	$	38,711	$	254	$	38,965