LEASES
The Company has various lease agreements related to office space, warehouses, vehicles, and office equipment. The leases expire at various dates through 2037, which are primarily accounted for as operating leases.
The following table presents the components of lease costs (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year-ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 7,428 | | | $ | 7,476 | | | $ | 6,293 | |
| Variable lease costs | | 1,566 | | | 1,379 | | | 1,311 | |
The following table presents lease terms and discount rates:
| | | | | | | | | | | | | | | | | | | | |
| | Year-ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Weighted average remaining lease term | | 10.28 | | 10.14 | | 10.67 |
| Weighted average discount rate | | 8.32 | % | | 8.04 | % | | 7.83 | % |
At December 31, 2025, future lease payments (receipts) under operating leases were as follows (in thousands):
| | | | | | | | | | | |
| Operating Lease Liabilities | | Operating Sublease |
| 2026 | $ | 4,627 | | | $ | (1,035) | |
| 2027 | 3,510 | | | — | |
| 2028 | 3,279 | | | — | |
| 2029 | 3,358 | | | — | |
| 2030 | 3,018 | | | — | |
| Thereafter | 21,529 | | | — | |
| Total lease payments (receipts) | 39,321 | | | (1,035) | |
| Less: Effect of discounting to net present value | (13,631) | | | |
| Present value of lease liabilities | $ | 25,690 | | | |
The following table presents supplemental cash flow information (in thousands):
| | | | | | | | | | | | | | | | | |
| Year-ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash payments used in operating cash flows from lease arrangements | $ | 5,984 | | | $ | 5,806 | | | $ | 6,112 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 9 | | | $ | 376 | | | $ | 40,589 | |
| Derecognition of right-of-use assets due to reassessment of lease term | $ | (32) | | | $ | (276) | | | $ | (33) | |
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.