v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases
16. Leases
On June 1, 2026 we commenced an approximately 20 year finance lease for a building space which will be utilized for offices, training, storage and equipment maintenance. The lease provides for annual base payments of $3.0 million with annual fixed rental increases ranging from 2.0% - 2.5%. The lease expires on September 30, 2046 and contains four five-year optional renewal terms which were not deemed to be reasonably certain of exercise and have therefore been excluded from the measurement of the lease liability as of June 30, 2026. As a result, we established a $42.6 million finance lease right of use asset and $42.6 million finance lease liability during the period ended June 30, 2026.
The Company maintains operating leases for certain office space, warehouse facilities, operating locations, and equipment. These leases have remaining lease terms up to 20 years. These leases generally include options to renew or extend the lease term at the Company’s discretion which are reflected in the measurement of lease liabilities only when exercise of such rights is reasonably certain. Maintenance and insurance costs are generally the Company's responsibility under these arrangements, and none of the lease agreements contain material residual value guarantees or material restrictive covenants.
Lease costs are included in either cost of revenues or selling, general and administrative expense depending on the use of the underlying asset.
Leases are presented in our consolidated balance sheet as follows:
(in thousands)ClassificationAs of June 30, 2026As of December 31, 2025
Right-of-use Assets:
Operating leasesOperating lease right-of-use assets, net$41,244$42,218
Finance leasesFinance lease right-of-use assets, net$47,988$6,500
Lease liabilities:
Operating lease liabilities:
CurrentAccrued liabilities$8,426$9,796
NoncurrentOperating lease liabilities39,83339,391
Total operating lease liabilities$48,259$49,187
Finance lease liabilities:
CurrentAccrued liabilities$2,621 $2,224 
NoncurrentFinance lease liabilities45,625 4,405 
Total finance lease liabilities$48,246 $6,629 
The components of total lease cost were as follows:
Three Months EndedSix Months Ended
June 30,June 30,
(in thousands)2026202520262025
Operating lease expense:
Operating lease expense$3,958 $3,967 $7,835 $8,333 
Short-term lease expense875 1,388 1,804 2,990 
Total operating lease expense4,833 5,355 9,639 11,323 
Finance lease expense:
Amortization of leased assets648 666 1,163 8,334 
Interest on lease liabilities98 129 204 296 
Total finance lease expense746 795 1,367 8,630 
Total lease expense$5,579 $6,150 $11,006 $19,953 
The short-term lease cost disclosed above reasonably reflects the Company’s ongoing short-term lease commitments. These lease costs are primarily recorded within cost of operations.
Supplemental information related to the Company’s operating and finance leases were as follows:
Six Months Ended June 30,
(in thousands, except years and percentages)20262025
Other supplemental information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$13,132 $13,710 
Operating cash flows - finance leases403 483 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$5,389 $3,346 
Finance leases42,568 9,938 
Weighted-average remaining lease term:
Operating leases6.2 years5.7 years
Finance leases18.1 years3.4 years
Weighted-average discount rate:
Operating leases8.8 %9.3 %
Finance leases5.7 %6.4 %
Future minimum lease payments, under non-cancelable operating and finance leases with terms in excess of one year, as of June 30, 2026 are as follows:
(in thousands)Operating leasesFinance leases
Year ended December 31,
Remainder of 2026$6,286 $2,427 
202711,119 5,602 
20289,205 4,514 
20298,744 3,944 
20305,914 3,233 
Thereafter25,450 61,121 
Total lease payments66,718 80,841 
Less: imputed interest(18,459)(32,595)
Total lease liabilities$48,259 $48,246 
Leases
16. Leases
On June 1, 2026 we commenced an approximately 20 year finance lease for a building space which will be utilized for offices, training, storage and equipment maintenance. The lease provides for annual base payments of $3.0 million with annual fixed rental increases ranging from 2.0% - 2.5%. The lease expires on September 30, 2046 and contains four five-year optional renewal terms which were not deemed to be reasonably certain of exercise and have therefore been excluded from the measurement of the lease liability as of June 30, 2026. As a result, we established a $42.6 million finance lease right of use asset and $42.6 million finance lease liability during the period ended June 30, 2026.
The Company maintains operating leases for certain office space, warehouse facilities, operating locations, and equipment. These leases have remaining lease terms up to 20 years. These leases generally include options to renew or extend the lease term at the Company’s discretion which are reflected in the measurement of lease liabilities only when exercise of such rights is reasonably certain. Maintenance and insurance costs are generally the Company's responsibility under these arrangements, and none of the lease agreements contain material residual value guarantees or material restrictive covenants.
Lease costs are included in either cost of revenues or selling, general and administrative expense depending on the use of the underlying asset.
Leases are presented in our consolidated balance sheet as follows:
(in thousands)ClassificationAs of June 30, 2026As of December 31, 2025
Right-of-use Assets:
Operating leasesOperating lease right-of-use assets, net$41,244$42,218
Finance leasesFinance lease right-of-use assets, net$47,988$6,500
Lease liabilities:
Operating lease liabilities:
CurrentAccrued liabilities$8,426$9,796
NoncurrentOperating lease liabilities39,83339,391
Total operating lease liabilities$48,259$49,187
Finance lease liabilities:
CurrentAccrued liabilities$2,621 $2,224 
NoncurrentFinance lease liabilities45,625 4,405 
Total finance lease liabilities$48,246 $6,629 
The components of total lease cost were as follows:
Three Months EndedSix Months Ended
June 30,June 30,
(in thousands)2026202520262025
Operating lease expense:
Operating lease expense$3,958 $3,967 $7,835 $8,333 
Short-term lease expense875 1,388 1,804 2,990 
Total operating lease expense4,833 5,355 9,639 11,323 
Finance lease expense:
Amortization of leased assets648 666 1,163 8,334 
Interest on lease liabilities98 129 204 296 
Total finance lease expense746 795 1,367 8,630 
Total lease expense$5,579 $6,150 $11,006 $19,953 
The short-term lease cost disclosed above reasonably reflects the Company’s ongoing short-term lease commitments. These lease costs are primarily recorded within cost of operations.
Supplemental information related to the Company’s operating and finance leases were as follows:
Six Months Ended June 30,
(in thousands, except years and percentages)20262025
Other supplemental information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$13,132 $13,710 
Operating cash flows - finance leases403 483 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$5,389 $3,346 
Finance leases42,568 9,938 
Weighted-average remaining lease term:
Operating leases6.2 years5.7 years
Finance leases18.1 years3.4 years
Weighted-average discount rate:
Operating leases8.8 %9.3 %
Finance leases5.7 %6.4 %
Future minimum lease payments, under non-cancelable operating and finance leases with terms in excess of one year, as of June 30, 2026 are as follows:
(in thousands)Operating leasesFinance leases
Year ended December 31,
Remainder of 2026$6,286 $2,427 
202711,119 5,602 
20289,205 4,514 
20298,744 3,944 
20305,914 3,233 
Thereafter25,450 61,121 
Total lease payments66,718 80,841 
Less: imputed interest(18,459)(32,595)
Total lease liabilities$48,259 $48,246