Leases
The Company records its operating lease ROU assets in "Other long-term assets" and its operating lease liabilities in "Other current liabilities" and "Other long-term liabilities". As of December 31, 2025 and 2024, the Company did not have any finance leases.
Additional information related to the Company’s operating leases is reflected in the tables below:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Operating lease expense | | $ | 4.5 | | | $ | 3.2 | | | $ | 3.6 | |
| Short-term lease expense | | 3.4 | | | 3.1 | | | 2.5 | |
| Cash paid for operating leases included in operating cash flows | | 4.5 | | | 3.2 | | | 3.6 | |
| | | | | | | | | | | | | | |
| | December 31, |
| (in millions) | | 2025 | | 2024 |
| Operating lease right-of-use asset | | $ | 14.9 | | | $ | 7.8 | |
| Operating lease short-term liability | | 5.4 | | | 2.6 | |
| Operating lease long-term liability | | 9.7 | | | 5.5 | |
| Weighted average remaining lease term (in years) | | 3.17 | | 3.61 |
| Weighted average discount rate used in calculating right-of-use asset | | 5.58 | % | | 5.04 | % |
Future annual minimum lease payments as of December 31, 2025 are as follows (in millions):
| | | | | |
| (in millions) | |
| 2026 | $ | 6.1 |
| 2027 | 5.6 |
| 2028 | 2.6 |
| 2029 | 1.4 |
| 2030 | 0.5 |
| 2031 and thereafter | 0.3 |
| Total lease payments | $ | 16.5 |
| Less: Interest | (1.4) |
| Operating lease liabilities | $ | 15.1 |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.