v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 
The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease expense$564 $1,256 $1,187 $2,656 
Short-term lease expense198 — 420 — 
Finance lease expense:
Amortization of right-of-use assets19 35 25 70 
Interest on lease liabilities7 4 8 9 
Total lease expense$788 $1,295 $1,640 $2,735 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at June 30, 2026 and December 31, 2025 (in thousands):

June 30,December 31,
20262025
Property, plant and equipment, net$473 $102 
Accrued expenses and other current liabilities109 49 
Other liabilities324 26 

Other supplemental information related to leases for the three and six months ended June 30, 2026 and 2025 and at June 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$729 $1,254 $1,584 $2,670 
Operating cash flows from finance leases7 4 8 9 
Financing cash flows from finance leases23 70 33 138 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$1,949 $2,231 $1,973 $2,492 
Finance leases420 — 395 — 

June 30,December 31,
20262025
Weighted-average remaining lease term:
Operating leases3.3 years3.5 years
Finance leases2.5 years1.5 years
Weighted-average discount rate:
Operating leases9.4 %9.8 %
Finance leases8.8 %10.1 %
Maturities of lease liabilities at June 30, 2026 are as follows (in thousands):
Operating LeasesFinance Leases
Remainder of 2026$1,450 $71 
20272,036 146 
2028546 88 
202952 196 
203052 — 
Thereafter537 — 
Total lease payments4,673 501 
Less: Present value discount697 68 
Present value of lease payments$3,976 $433 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $5.0 million and $8.9 million during the three and six months ended June 30, 2026, respectively, and $1.0 million and $1.2 million during the three and six months ended June 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at June 30, 2026 are as follows (in thousands):
Remainder of 2026$6,270 
20277,998 
20286,212 
20292,638 
20301,315 
Thereafter140 
Total lease payments$24,573 
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 
The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease expense$564 $1,256 $1,187 $2,656 
Short-term lease expense198 — 420 — 
Finance lease expense:
Amortization of right-of-use assets19 35 25 70 
Interest on lease liabilities7 4 8 9 
Total lease expense$788 $1,295 $1,640 $2,735 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at June 30, 2026 and December 31, 2025 (in thousands):

June 30,December 31,
20262025
Property, plant and equipment, net$473 $102 
Accrued expenses and other current liabilities109 49 
Other liabilities324 26 

Other supplemental information related to leases for the three and six months ended June 30, 2026 and 2025 and at June 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$729 $1,254 $1,584 $2,670 
Operating cash flows from finance leases7 4 8 9 
Financing cash flows from finance leases23 70 33 138 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$1,949 $2,231 $1,973 $2,492 
Finance leases420 — 395 — 

June 30,December 31,
20262025
Weighted-average remaining lease term:
Operating leases3.3 years3.5 years
Finance leases2.5 years1.5 years
Weighted-average discount rate:
Operating leases9.4 %9.8 %
Finance leases8.8 %10.1 %
Maturities of lease liabilities at June 30, 2026 are as follows (in thousands):
Operating LeasesFinance Leases
Remainder of 2026$1,450 $71 
20272,036 146 
2028546 88 
202952 196 
203052 — 
Thereafter537 — 
Total lease payments4,673 501 
Less: Present value discount697 68 
Present value of lease payments$3,976 $433 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $5.0 million and $8.9 million during the three and six months ended June 30, 2026, respectively, and $1.0 million and $1.2 million during the three and six months ended June 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at June 30, 2026 are as follows (in thousands):
Remainder of 2026$6,270 
20277,998 
20286,212 
20292,638 
20301,315 
Thereafter140 
Total lease payments$24,573 
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 
The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease expense$564 $1,256 $1,187 $2,656 
Short-term lease expense198 — 420 — 
Finance lease expense:
Amortization of right-of-use assets19 35 25 70 
Interest on lease liabilities7 4 8 9 
Total lease expense$788 $1,295 $1,640 $2,735 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at June 30, 2026 and December 31, 2025 (in thousands):

June 30,December 31,
20262025
Property, plant and equipment, net$473 $102 
Accrued expenses and other current liabilities109 49 
Other liabilities324 26 

Other supplemental information related to leases for the three and six months ended June 30, 2026 and 2025 and at June 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$729 $1,254 $1,584 $2,670 
Operating cash flows from finance leases7 4 8 9 
Financing cash flows from finance leases23 70 33 138 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$1,949 $2,231 $1,973 $2,492 
Finance leases420 — 395 — 

June 30,December 31,
20262025
Weighted-average remaining lease term:
Operating leases3.3 years3.5 years
Finance leases2.5 years1.5 years
Weighted-average discount rate:
Operating leases9.4 %9.8 %
Finance leases8.8 %10.1 %
Maturities of lease liabilities at June 30, 2026 are as follows (in thousands):
Operating LeasesFinance Leases
Remainder of 2026$1,450 $71 
20272,036 146 
2028546 88 
202952 196 
203052 — 
Thereafter537 — 
Total lease payments4,673 501 
Less: Present value discount697 68 
Present value of lease payments$3,976 $433 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $5.0 million and $8.9 million during the three and six months ended June 30, 2026, respectively, and $1.0 million and $1.2 million during the three and six months ended June 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at June 30, 2026 are as follows (in thousands):
Remainder of 2026$6,270 
20277,998 
20286,212 
20292,638 
20301,315 
Thereafter140 
Total lease payments$24,573