LEASES
The Company leases office space, warehouses and vehicles, in the U.S. and internationally under both operating and finance lease arrangements. Finance leases were not material as of both December 31, 2025 and 2024. Variable lease expense related to operating leases, excluding non-lease components included in total lease costs, did not have a significant impact on the Company's Consolidated Financial Statements.
Operating lease costs for the years ended December 31, 2025, 2024 and 2023 were $5.7 million, $2.1 million and $0.8 million, respectively.
Supplemental cash flow information and non-cash activity were as follows:
| | | | | | | | | | | | | | | | | |
| For the years ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts related to lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 4,099 | | | $ | 1,684 | | | $ | 836 | |
| | | | | |
| Non-cash lease activity: | | | | | |
| Right-of-use assets obtained in exchange for lease obligations | $ | 1,079 | | | $ | 21,934 | | | $ | 1,816 | |
| | | | | |
Weighted-average remaining lease terms and discount rates for operating leases were as follows:
| | | | | | | | | | | | | | | | | |
| For the years ended December 31, |
| 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease terms in years: | | | | | |
| Operating leases | 4.57 | | 5.29 | | 2.89 |
| | | | | |
| Weighted-average discount rate: | | | | | |
| Operating leases | 5.28 | % | | 5.23 | % | | 6.77 | % |
The aggregate annual operating lease obligations at December 31, 2025, were as follows:
| | | | | | | |
| Operating Leases | | |
| 2026 | $ | 5,012 | | | |
| 2027 | 5,189 | | | |
| 2028 | 4,008 | | | |
| 2029 | 3,699 | | | |
| 2030 | 680 | | | |
| Thereafter | 2,018 | | | |
| Total future minimum lease payments | $ | 20,606 | | | |
| | | |
| Less: amounts representing interest | (2,390) | | | |
| Present value of lease liabilities | 18,216 | | | |
| | | |
| Less: current portion | (4,456) | | | |
| Long-term portion | $ | 13,760 | | | |
Subsequent to December 31, 2025, the Company entered into a lease agreement for additional space in its U.S. principal executive office located in Boca Raton, Florida, with an initial lease term of approximately four years. As the lease commenced subsequent to the end of the reporting period, the related right-of-use assets and lease liabilities have not been recognized in the accompanying Consolidated Financial Statements.
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.