Leases

9 Months Ended

Sep. 30, 2026

8. Leases

The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 7 years, with a weighted-average remaining lease term of 4 years at both September 30, 2026 and December 31, 2025. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend.

The components of net operating lease costs for the three- and nine-month periods ended September 30, 2026 and 2025 were as follows (in thousands):


			Three Months Ended September 30,						Nine Months Ended September 30,
	Classification		2026			2025			2026			2025
Operating lease costs⁽¹⁾	Cost of revenues		$	854		$	998		$	2,336		$	2,697
Operating lease costs⁽¹⁾	Selling, general and administrative expenses			79			78			237			240
Rental revenues	Revenues			(4)			(104)			(35)			(177)
Rental revenues	Other (income) expense, net			(9)			(7)			(41)			(61)
Net operating lease costs			$	920		$	965		$	2,497		$	2,699

(1)	Includes the costs of leases with a term of one year or less.

As of September 30, 2026, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands):


2026 (excluding the nine months ended September 30, 2026)	$	523
2027		1,669
2028		976
2029		557
2030		532
Thereafter		474
Total future minimum lease payments		4,731
Less imputed interest		(423)
Present value of lease liabilities	$	4,308

Supplemental cash flow information pertaining to the Company’s leasing activity for the nine months ended September 30, 2026 and 2025 is as follows (in thousands):


	Nine Months Ended September 30,
	2026		2025
Cash payments for lease liabilities included in operating cash flows	$	1,424	$	1,510
Right-of-use assets obtained in exchange for operating lease obligations	$	1,497	$	368