v3.26.1
Property and Equipment, Net
 6 Months Ended
Jun. 30, 2026
Property and Equipment, Net [Abstract]  
Property and Equipment, Net

7. Property and Equipment, Net

 

Property and equipment, net consisted of the following (in thousands):

 

    June 30,     December 31,  
    2026     2025  
Equipment   $ 87,539     $ 80,999  
Equipment in progress     2,158       7,218  
Leasehold improvements     59,428       58,862  
Furniture and fixtures     31,391       30,744  
Office equipment     1,624       1,624  
Total property and equipment     182,140       179,447  
Accumulated depreciation     (108,377 )     (101,486 )
Property and equipment, net   $ 73,763     $ 77,961  

 

Equipment in progress reflects equipment, primarily related to mattress manufacturing, which is being constructed and was not in service at June 30, 2026 or December 31, 2025. Interest capitalized on borrowings during the active construction period of major capital projects was de minimis during the three and six months ended June 30, 2026, respectively, and totaled $0.1 million and $0.3 million during the three and six months ended June 30, 2025, respectively. Depreciation expense was $3.8 million and $7.6 million during the three and six months ended June 30, 2026, respectively, and was $4.1 million and $8.3 million during the three and six months ended June 30, 2025, respectively. Included in depreciation expense for the three and six months ended June 30, 2025, was $0.1 million and $0.4 million, respectively, related to accelerated depreciation associated with the Restructuring Plan. See Note 3— Restructuring and Impairment Charges for further discussion.