Leases

6 Months Ended

Jun. 30, 2026

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between December 2026 and March 2036. The following table summarizes the lease expense by category in the Consolidated Statements of Income:


(in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Cost of sales	$	3,669	$	2,489	$	7,207	$	4,674
Research and development expenses	79		80		158		160
Selling, general and administrative expenses	139		62		200		104
Interest expense	27		28		54		42
Total	$	3,914	$	2,659	$	7,619	$	4,980

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025

Operating lease cost	$	3,002	$	2,094	$	5,951	$	3,692
Finance lease cost
Amortization of right-of-use (“ROU”) asset	100		94		196		153
Interest expense	27		26		54		42
Short-term lease cost	222		81		437		262
Variable lease cost	563		364		981		831

Total lease cost, net	$	3,914	$	2,659	$	7,619	$	4,980

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	6,829	$	3,456
Operating cash flows paid for interest portion of finance leases	54		42
Financing cash flows paid for principal portion of finance leases	177		142
ROU assets obtained in exchange for lease obligations
Operating leases	9,958		26,247
Finance leases	230		936

As of June 30, 2026 and December 31, 2025, the weighted-average remaining lease term was 7.8 years and 8.0 years for operating leases, respectively, and 3.7 years and 4.2 years for finance leases, respectively. As of June 30, 2026 and December 31, 2025, the weighted-average discount rate was 7.1% for operating leases and 6.9% for finance leases.

The following table presents supplemental balance sheet information related to leases:


(in thousands)	June 30, 2026		December 31, 2025

Operating lease ROU assets, net	$	59,267	$	52,911

Operating lease liabilities, current	7,561		6,346
Operating lease liabilities, non-current	53,676		49,397
Total operating lease liabilities	$	61,237	$	55,743

Finance lease ROU assets, net 1	$	1,553	$	1,533

Finance lease liabilities, current	397		355
Finance lease liabilities, non-current	1,219		1,224
Total finance lease liabilities	$	1,616	$	1,579

1.Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of June 30, 2026:


(in thousands)	Operating Leases		Finance Leases
Six months ending December 31, 2026	$	5,806	$	246
Year ending December 31, 2027	11,645		493
Year ending December 31, 2028	10,612		493
Year ending December 31, 2029	9,803		474
Year ending December 31, 2030	8,448		116
Year ending December 31, 2031	6,471		4
Thereafter	27,670		—
Total undiscounted lease payments	80,455		1,826
Less: imputed interest	19,218		210
Total lease liabilities	$	61,237	$	1,616

Leases


(in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Cost of sales	$	3,669	$	2,489	$	7,207	$	4,674
Research and development expenses	79		80		158		160
Selling, general and administrative expenses	139		62		200		104
Interest expense	27		28		54		42
Total	$	3,914	$	2,659	$	7,619	$	4,980

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025

Operating lease cost	$	3,002	$	2,094	$	5,951	$	3,692
Finance lease cost
Amortization of right-of-use (“ROU”) asset	100		94		196		153
Interest expense	27		26		54		42
Short-term lease cost	222		81		437		262
Variable lease cost	563		364		981		831

Total lease cost, net	$	3,914	$	2,659	$	7,619	$	4,980

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	6,829	$	3,456
Operating cash flows paid for interest portion of finance leases	54		42
Financing cash flows paid for principal portion of finance leases	177		142
ROU assets obtained in exchange for lease obligations
Operating leases	9,958		26,247
Finance leases	230		936

The following table presents supplemental balance sheet information related to leases:


(in thousands)	June 30, 2026		December 31, 2025

Operating lease ROU assets, net	$	59,267	$	52,911

Operating lease liabilities, current	7,561		6,346
Operating lease liabilities, non-current	53,676		49,397
Total operating lease liabilities	$	61,237	$	55,743

Finance lease ROU assets, net 1	$	1,553	$	1,533

Finance lease liabilities, current	397		355
Finance lease liabilities, non-current	1,219		1,224
Total finance lease liabilities	$	1,616	$	1,579

1.Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of June 30, 2026:


(in thousands)	Operating Leases		Finance Leases
Six months ending December 31, 2026	$	5,806	$	246
Year ending December 31, 2027	11,645		493
Year ending December 31, 2028	10,612		493
Year ending December 31, 2029	9,803		474
Year ending December 31, 2030	8,448		116
Year ending December 31, 2031	6,471		4
Thereafter	27,670		—
Total undiscounted lease payments	80,455		1,826
Less: imputed interest	19,218		210
Total lease liabilities	$	61,237	$	1,616