We lease real estate under operating leases and revenue equipment (tractors and trailers) under both operating and finance leases. The leases have terms which range from 2 years to 18 years, and some include options to renew. Renewal terms are included in the lease term when it is reasonably certain that we will exercise the option to renew.

Operating leases are included in operating lease right-of-use assets, net, current maturities of operating lease liabilities and operating lease liabilities, less current maturities on the consolidated condensed balance sheets. Finance leases are included in finance lease right-of-use assets, net, current maturities of finance lease liabilities and finance lease liabilities, less current maturities on the consolidated condensed balance sheets.

We assess whether an arrangement is a lease or contains a lease at inception. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date (or acquisition date, for leases assumed in a business combination), using our incremental borrowing rate because the rate implicit in each lease is not readily determinable. We have certain contracts for real estate that may contain lease and non-lease components which we have elected to treat as a single lease component. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for operating leases, and any variable lease expense, is reported in rent and purchased transportation on the consolidated statements of income. We recognize the amortization of the right-of-use asset for our finance leases on a straight-line basis over the shorter of the lease term or the useful life of the right-of-use asset in depreciation and amortization expense on the consolidated statements of income. The interest expense related to finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement and is included within interest expense on the consolidated statements of income.


	Operating Leases		Finance Leases
2026 (remaining)	$	36,171	$	21,354
2027	33,709		12,542
2028	20,325		7,471
2029	12,030		4,513
2030	3,680		5,083
Thereafter	5,602		—
Total undiscounted lease payments	$	111,517	$	50,963
Less: Imputed interest	(7,879)		(2,676)
Present value of lease liabilities	$	103,638	$	48,287


	Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	22,402	$	8,758
Operating cash flows for finance leases	619		N/A
Financing cash flows for finance leases	6,838		N/A

Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	9,890	$	2,542
Finance leases	—		N/A


		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Classification	2026		2025		2026		2025
Operating lease cost	Rent and purchased transportation	$	13,524	$	4,478	$	24,630	$	8,980
Short-term lease cost	Rent and purchased transportation	4,353		2,168		7,758		4,280
Variable lease cost	Rent and purchased transportation	—		—		—		—
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	2,585		N/A		4,203		N/A
Interest on lease liabilities	Interest Expense	356		N/A		619		N/A
Total lease cost		$	20,818	$	6,646	$	37,210	$	13,260

We are the lessor of tractors and trailers (revenue equipment) under operating leases with initial terms of 1 year to 10 years. At times, we also lease or sublease real estate to third parties. We recognize revenue for such leases on a straight-line basis over the term of the lease. Revenues were $3.1 million and $6.4 million for the three and six months ended June 30, 2026, respectively, and $2.9 million and $5.5 million for the three and six months ended June 30, 2025, respectively.

The owned assets underlying our leases as lessor primarily consist of revenue equipment. As of June 30, 2026 and December 31, 2025, the gross carrying value of such revenue equipment underlying these leases was $72.9 million and $72.5 million, respectively, and accumulated depreciation was $31.0 million and $32.0 million, respectively. Depreciation expense for these assets was $2.3 million and $4.6 million for the three and six months ended June 30, 2026, respectively, and $2.1 million and $4.1 million for the three and six months ended June 30, 2025, respectively.