Note 7 - Lease Obligations

6 Months Ended

Jun. 30, 2026

Note 7.

Lease Obligations

The finance leases in effect at June 30, 2026 terminate from June 2028 through November 2033 and contain guarantees of the residual value of the related equipment by us.

A summary of our lease obligations at June 30, 2026 and 2025 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended			Six Months Ended		Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026		June 30, 2025
Finance lease cost:
Amortization of right-of-use assets	$	225		$	218		$	443	$	437
Interest on lease liabilities		101			120			206		243
Operating lease cost		3,645			3,993			7,314		7,834
Variable lease cost		38			17			54		(68	)
Short-term lease cost		1,850			1,473			4,149		2,679
Total lease cost		5,859			5,821			12,166		11,125

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		101			120			206		243
Operating cash flows from operating leases		3,084			3,026			6,139		6,046
Financing cash flows from finance leases		227			185			460		365
Right-of-use assets obtained in exchange for new finance lease liabilities		503			-			503		-
Right-of-use assets obtained in exchange for new operating lease liabilities		-			1,484			818		4,359
Weighted-average remaining lease term—finance leases (in years)		4.0			4.5
Weighted-average remaining lease term—operating leases (in years)		3.2			4.0
Weighted-average discount rate—finance leases		12.3	%		12.8	%
Weighted-average discount rate—operating leases		8.7	%		8.9	%

As of June 30, 2026 and December 31, 2025, right-of-use assets of $30.3 million and $35.5 million for operating leases and $2.9 million and $2.8 million for finance leases, respectively. Finance leases are included in net property and equipment in our condensed consolidated balance sheets. Operating lease right-of-use asset amortization is included in revenue equipment rentals and purchased transportation, communications and utilities, and general supplies and expenses, depending on the underlying asset, in the condensed consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Our future minimum lease payments as of June 30, 2026, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2026 ⁽¹⁾		7,350		$	665
2027		13,216			1,331
2028		7,046			1,050
2029		4,074			459
2030		2,602			333
Thereafter		2,100			321
Total minimum lease payments	$	36,388		$	4,159
Less: amount representing interest		(4,256	)		(923	)
Present value of minimum lease payments	$	32,132		$	3,236
Less: current portion		(12,646	)		(978	)
Lease obligations, long-term	$	19,486		$	2,258

⁽¹⁾ Excludes the six months ended June 30, 2026.