Leases
We have operating leases for office space, manufacturing and logistical functions. Operating lease assets and liabilities consisted of the following at December 31, 2025 and December 31, 2024 (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| Leases (in thousands) | | Classification | | December 31, 2025 | | December 31, 2024 |
| Assets | | | | | | |
| Operating lease assets | | Other assets | | $ | 99,513 | | | $ | 44,567 | |
| Liabilities | | | | | | |
| Current | | | | | | |
| Operating | | Other current liabilities | | $ | 6,990 | | | $ | 9,453 | |
| Noncurrent | | | | | | |
| Operating | | Long-term lease liabilities | | $ | 98,942 | | | $ | 41,383 | |
| Total lease liabilities | | | | $ | 105,932 | | | $ | 50,836 | |
The components of operating lease expenses were as follows for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
Total operating lease expense (1) | $ | 20,584 | | $ | 14,568 | | $ | 10,025 |
(1)Includes short-term leases, which are immaterial
Supplemental cash flow information related to operating leases were as follows for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities — operating cash flows | $ | 15,053 | | | $ | 12,284 | | | $ | 8,846 | |
Right-of-use assets obtained in exchange for operating lease liabilities | 62,844 | | | 14,292 | | | 5,927 | |
Weighted-average remaining lease term and discount rate related to operating leases at December 31, 2025 and December 31, 2024 were as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term | 9.2 years | | 7.7 years |
| Weighted average discount rate | 6.78 | % | | 7.60 | % |
Future minimum operating lease payments under non-cancellable leases as of December 31, 2025 were as follows (in thousands):
| | | | | | | | |
| Operating |
| 2026 | $ | 15,094 | |
| 2027 | 14,406 | |
| 2028 | 15,613 | |
| 2029 | 15,797 | |
| 2030 | 14,833 | |
| Thereafter | 76,637 | |
| Total minimum lease payments | 152,380 | |
| Less: Amount representing interest | (46,448) | |
| Present value of lease payments | $ | 105,932 | |
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.