Leases
We lease certain office space, equipment and vehicles. These leases are either non-cancelable, cancellable only by the payment of penalties or cancellable upon notice provided. All lease payments are based on the lapse of time and certain leases are subject to annual escalations for increases in base rents. The Company's lease terms includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised.
Operating and Finance Leases
The Company's operating leases primarily include material leases of buildings (consisting primarily of office lease commitments) and equipment. These leases are classified as operating leases and are recognized as right-of-use assets and operating lease liabilities on the consolidated balance sheets.
The Company's finance leases primarily include equipment and vehicles in certain contracts with payment terms on the lease agreements that range between 30 and 50 months.
The following tables present our operating and finance leases as of December 31, 2025, and 2024:
(Amounts in thousands)Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Assets:
Operating lease assetsOperating lease, right-of-use assets$45,822 $42,085 
Finance lease assetsProperty and equipment, net34,259 25,981 
Total lease assets$80,081 $68,066 
Liabilities:
Current:
Operating lease liabilitiesOperating lease obligation, current portion$(11,951)$(10,979)
Finance lease liabilitiesFinance lease obligation, current portion(13,735)(10,394)
Total current lease liabilities$(25,686)$(21,373)
Non-current:
Operating lease liabilitiesOperating lease obligation, less current portion$(40,430)$(37,058)
Finance lease liabilitiesFinance lease obligation, less current portion(23,718)(17,940)
Total non-current lease liabilities$(64,148)$(54,998)
The following tables present selected financial information for the year ended December 31, 2025, and 2024:
(Amounts in thousands)December 31, 2025December 31, 2024
Operating lease cost
Amortization of right-of-use assets$14,449 $13,219 
Short-term and variable lease cost36 
Finance lease cost:
Amortization of right-of-use assets13,7549,905
Interest on lease liabilities1,9811,714
Sublease income(107)(106)
Total lease cost$30,113 $24,733 

(Amounts in thousands)December 31, 2025December 31, 2024
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from operating leases$14,477 $13,264 
Operating cash flows from finance leases1,981 1,712 
Financing cash flows from finance leases12,808 9,010 
Right-of-use assets obtained in exchange for new operating leases15,236 11,473 
Right-of-use assets obtained in exchange for new finance leases22,340 16,458 

December 31, 2025December 31, 2024
Weighted average remaining lease term (in years):
Operating leases4.594.71
Finance leases2.722.48
Weighted average discount rates:
Operating leases6.8 %6.7 %
Finance leases6.4 %6.7 %
Future minimum commitments under leases for the succeeding years are as follows (in thousands):
(Amounts in thousands)
Year ending December 31,Operating LeaseFinance Lease
2026
$15,004 $13,583 
2027
13,422 9,310 
2028
12,176 6,615 
2029
9,366 3,351 
2030
5,893 
Thereafter5,349 – 
Total lease payments$61,210 $32,868 
Less: Amounts representing interest$(8,853)$(3,809)
Total lease liabilities$52,357 $29,059 
The future minimum commitments for operating leases are inclusive of the $0.2 million sub-lease income associated with the $52.4 million total liability to operating leases as presented on the consolidated balance sheet.
The future minimum commitments for finance leases are exclusive of the $8.4 million bargain purchase price associated with the $37.5 million total liability to finance leases as presented on the consolidated balance sheet.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 12, 2025
2023Mar 12, 2024
2022Mar 15, 2023
2021Mar 23, 2022

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.