v3.26.3
Lease Obligations
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Lease Obligations Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from less than one to eleven years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2026, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
September 30,
2026		December 31,
2025
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$63,304 $42,448 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,464 1,910 
Total right-of-use lease assets$65,768 $44,358 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$14,572 $13,019 
Finance lease obligationsCurrent portion of finance lease obligations1,064 804 
Total current obligations15,636 13,823 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities48,359 29,429 
Finance lease obligationsFinance lease obligations, net of current maturities1,348 1,220 
Total non-current obligations49,707 30,649 
Total lease obligations$65,343 $44,472 
The following is a summary of the lease terms and discount rates:
September 30,
2026		December 31,
2025
Weighted-average remaining lease term - finance leases2.5 years2.5 years
Weighted-average remaining lease term - operating leases4.8 years3.7 years
Weighted-average discount rate - finance leases4.0 %3.9 %
Weighted-average discount rate - operating leases4.0 %4.0 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
September 30,		Nine months ended
September 30,
2026202520262025
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$142 $242 $427 $736 
Interest on lease liabilities25 23 62 77 
Operating lease cost5,877 4,776 16,028 13,750 
Variable lease costs127 109 379 332 
Total lease cost$6,171 $5,150 $16,896 $14,895 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Nine months ended September 30,
(in thousands)20262025
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases$15,936 $13,673 
Right-of-use asset obtained in exchange for new operating lease obligations$34,648 $14,123 
Right-of-use asset obtained in exchange for new finance lease obligations$1,100 $— 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of September 30, 2026 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
Remainder of 2026
$285 $5,946 $6,231 
20271,142 18,743 19,885 
2028678 16,169 16,847 
2029244 12,934 13,178 
2030144 7,992 8,136 
203156 4,090 4,146 
Thereafter— 7,840 7,840 
Total minimum lease payments2,549 73,714 76,263 
Financing component(137)(10,783)(10,920)
Net present value of minimum lease payments2,412 62,931 65,343 
Less: current portion of finance and operating lease obligations(1,064)(14,572)(15,636)
Long-term finance and operating lease obligations$1,348 $48,359 $49,707 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have ongoing operating leases for facilities that were entered into or extended with third-party companies that, are or were, owned in whole or part, by employees of the subsidiaries at the time of the transaction. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $0.7 million and $2.0 million for the three and nine months ended September 30, 2026 and $0.7 million and $1.9 million for the three and nine months ended September 30, 2025. As of September 30, 2026, the minimum lease payments required under these leases totaled $4.9 million, which are due over the next 2.9 years.
Lease Obligations Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from less than one to eleven years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2026, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
September 30,
2026		December 31,
2025
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$63,304 $42,448 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,464 1,910 
Total right-of-use lease assets$65,768 $44,358 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$14,572 $13,019 
Finance lease obligationsCurrent portion of finance lease obligations1,064 804 
Total current obligations15,636 13,823 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities48,359 29,429 
Finance lease obligationsFinance lease obligations, net of current maturities1,348 1,220 
Total non-current obligations49,707 30,649 
Total lease obligations$65,343 $44,472 
The following is a summary of the lease terms and discount rates:
September 30,
2026		December 31,
2025
Weighted-average remaining lease term - finance leases2.5 years2.5 years
Weighted-average remaining lease term - operating leases4.8 years3.7 years
Weighted-average discount rate - finance leases4.0 %3.9 %
Weighted-average discount rate - operating leases4.0 %4.0 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
September 30,		Nine months ended
September 30,
2026202520262025
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$142 $242 $427 $736 
Interest on lease liabilities25 23 62 77 
Operating lease cost5,877 4,776 16,028 13,750 
Variable lease costs127 109 379 332 
Total lease cost$6,171 $5,150 $16,896 $14,895 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Nine months ended September 30,
(in thousands)20262025
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases$15,936 $13,673 
Right-of-use asset obtained in exchange for new operating lease obligations$34,648 $14,123 
Right-of-use asset obtained in exchange for new finance lease obligations$1,100 $— 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of September 30, 2026 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
Remainder of 2026
$285 $5,946 $6,231 
20271,142 18,743 19,885 
2028678 16,169 16,847 
2029244 12,934 13,178 
2030144 7,992 8,136 
203156 4,090 4,146 
Thereafter— 7,840 7,840 
Total minimum lease payments2,549 73,714 76,263 
Financing component(137)(10,783)(10,920)
Net present value of minimum lease payments2,412 62,931 65,343 
Less: current portion of finance and operating lease obligations(1,064)(14,572)(15,636)
Long-term finance and operating lease obligations$1,348 $48,359 $49,707 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have ongoing operating leases for facilities that were entered into or extended with third-party companies that, are or were, owned in whole or part, by employees of the subsidiaries at the time of the transaction. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $0.7 million and $2.0 million for the three and nine months ended September 30, 2026 and $0.7 million and $1.9 million for the three and nine months ended September 30, 2025. As of September 30, 2026, the minimum lease payments required under these leases totaled $4.9 million, which are due over the next 2.9 years.