v3.26.1
PROPERTY AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
(in thousands)June 30, 2026December 31, 2025
Leasehold improvements$229,762 $219,389 
Buildings222,268 213,781 
Furniture, fixtures, and equipment98,005 92,168 
Construction in progress8,896 9,634 
Land5,782 5,782 
Property and equipment, gross564,713 540,754 
Less: accumulated depreciation183,153 158,352 
Property and equipment, net$381,560 $382,402 
Total depreciation expense was $12,782 and $9,722 during the three months ended June 30, 2026 and 2025, respectively, and $25,317 and $19,582 during the six months ended June 30, 2026 and 2025, respectively. Total depreciation expense capitalized to inventory was $8,499 and $6,515 during the three months ended June 30, 2026 and 2025, respectively, and $16,886 and $13,534 during the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and December 31, 2025, $1,718 and $1,966, respectively, of depreciation expense remained capitalized as part of inventory. Disposals and write-offs of accumulated depreciation during the six months ended June 30, 2026 were not material, other than as described below related to finance leases. During the three and six months ended June 30, 2026, the Company wrote off a total of $33 and $277, respectively, of certain construction in progress projects, which is included within “General and administrative expenses” on the unaudited Condensed Consolidated Statements of Operations for the respective periods and within “Other” on the unaudited Condensed Consolidated Statements of Cash Flows.
The table above includes the following amounts related to finance leases:
(in thousands)June 30, 2026December 31, 2025
Buildings$137,340 $128,859 
Vehicles(1)
2,853 2,801 
Equipment(1)(2)
2,321 2,321 
142,514 133,981 
Less: accumulated amortization(3)
10,004 5,249 
Total(4)
$132,510 $128,732 
(1)Included within “Furniture, fixtures, and equipment.”
(2)Equipment leased pursuant to a master lease agreement that was entered into in June 2022, which provided for up to $15,000 in aggregate, pursuant to individual lease agreements.
(3)Included within “Accumulated depreciation.” The Company wrote off fully amortized vehicle leases totaling $516 during the six months ended June 30, 2026.
(4)Refer to Note 10, “Leases,” for additional information regarding our lease arrangements.