The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles.

The components of lease expense for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Operating lease expenses(1):
Fixed lease expense	$	6,309	$	4,326	$	16,274	$	12,902
Variable lease expense	1,586		1,600		5,130		5,165
Total	$	7,895	$	5,926	$	21,404	$	18,067

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2026 and 2025 were as follows (in thousands):


	Nine Months Ended September 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	16,932	$	14,636


	Nine Months Ended September 30,
	2026		2025
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	54,885	$	754

During the nine months ended September 30, 2026, the right-of-use assets obtained include the right-of-use asset for the Hagerstown Facility lease, which commenced on April 30, 2026. The lease included a tenant improvement allowance of $5.1 million.

The aggregate future lease payments for operating leases as of September 30, 2026 were as follows (in thousands):


	Operating
2026 (excluding the nine months ended September 30, 2026)	$	5,768
2027	20,296
2028	18,415
2029	13,960
2030	13,131
2031	11,469
Thereafter	97,389
Total lease payments	180,428
Less: Interest	(72,926)
Present value of lease payments	$	107,502

Average lease terms and discount rates were as follows:


	September 30, 2026
Operating leases:
Weighted-average remaining lease term (years)	10.2
Weighted-average discount rate	9.1	%