v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The Company’s lease portfolio includes both real estate and non-real estate type leases, which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms less than one to less than five years.

On June 14, 2026, the Company entered into a corporate office lease agreement (the "Lease") which will commence on the later of (i) March 1, 2027, and (ii) the date of “substantial completion” of the “tenant improvements” (each as defined in the Lease) (the “Contractual Lease Commencement Date”). As of June 30, 2026, the Company has not reached the lease commencement date under ASC 842, which could be earlier than the Contractual Lease Commencement Date. The initial term of the Lease is ten years from the Contractual Lease Commencement Date (the “Initial Term”) with one five-year renewal option. The Company will receive a ten-month rent abatement applied to the first ten months of the third lease year. During the Initial Term, the total base rent over the Initial Term, net of rent abatement, is expected to be approximately $30.7 million. In addition to base rent, the Company will be required to pay certain additional amounts for taxes, insurance, maintenance and other operating expenses. The Landlord will provide the Company with a one-time tenant improvement allowance totaling approximately $6.9 million. To secure its obligations under the Lease, the Company was required to provide to the Landlord an irrevocable $1.2 million letter of credit.

The components of lease expense were as follows (in thousands):
For the three months ended June 30,For the six months ended June 30,
2026202520262025
Operating lease expense:
Operating lease expense(1)
$1,689 $1,792 $3,474 $3,584 
Sublease income(501)(501)(1,003)(1,003)
Total lease expense, net$1,188 $1,291 $2,471 $2,581 
______________________

(1)     Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Based on the nature of the Right-Of-Use (“ROU”) assets, amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive income.

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

AssetsFinancial Statement Line ItemJune 30, 2026
Operating lease assetsOperating lease right-of-use asset$8,074 
Total lease assets$8,074 
Liabilities
Current
Operating lease liabilitiesAccrued expenses$7,304 
Non-current
Operating lease liabilitiesOperating lease liabilities, net of current portion2,204 
Total lease liabilities$9,508 

Supplemental information related to the Company’s leases for the six months ended June 30, 2026 was as follows:

Weighted-average remaining lease term (in years)
   Operating leases1.5
Weighted-average discount rate
Operating leases2.53 %
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
   Operating cash flows used in operating leases$2,307 
The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the six months ended June 30, 2026 for either finance or operating leases.
Leases Leases
The Company’s lease portfolio includes both real estate and non-real estate type leases, which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms less than one to less than five years.

On June 14, 2026, the Company entered into a corporate office lease agreement (the "Lease") which will commence on the later of (i) March 1, 2027, and (ii) the date of “substantial completion” of the “tenant improvements” (each as defined in the Lease) (the “Contractual Lease Commencement Date”). As of June 30, 2026, the Company has not reached the lease commencement date under ASC 842, which could be earlier than the Contractual Lease Commencement Date. The initial term of the Lease is ten years from the Contractual Lease Commencement Date (the “Initial Term”) with one five-year renewal option. The Company will receive a ten-month rent abatement applied to the first ten months of the third lease year. During the Initial Term, the total base rent over the Initial Term, net of rent abatement, is expected to be approximately $30.7 million. In addition to base rent, the Company will be required to pay certain additional amounts for taxes, insurance, maintenance and other operating expenses. The Landlord will provide the Company with a one-time tenant improvement allowance totaling approximately $6.9 million. To secure its obligations under the Lease, the Company was required to provide to the Landlord an irrevocable $1.2 million letter of credit.

The components of lease expense were as follows (in thousands):
For the three months ended June 30,For the six months ended June 30,
2026202520262025
Operating lease expense:
Operating lease expense(1)
$1,689 $1,792 $3,474 $3,584 
Sublease income(501)(501)(1,003)(1,003)
Total lease expense, net$1,188 $1,291 $2,471 $2,581 
______________________

(1)     Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Based on the nature of the Right-Of-Use (“ROU”) assets, amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive income.

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

AssetsFinancial Statement Line ItemJune 30, 2026
Operating lease assetsOperating lease right-of-use asset$8,074 
Total lease assets$8,074 
Liabilities
Current
Operating lease liabilitiesAccrued expenses$7,304 
Non-current
Operating lease liabilitiesOperating lease liabilities, net of current portion2,204 
Total lease liabilities$9,508 

Supplemental information related to the Company’s leases for the six months ended June 30, 2026 was as follows:

Weighted-average remaining lease term (in years)
   Operating leases1.5
Weighted-average discount rate
Operating leases2.53 %
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
   Operating cash flows used in operating leases$2,307 
The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the six months ended June 30, 2026 for either finance or operating leases.