LEASES
We lease office space, warehouses, land, automobiles, buildings, and manufacturing equipment. Some of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Our lease agreements may include options to purchase the leased property. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

The following table presents components of lease cost (in thousands):

 
Twelve Months Ended December 31,
 202520242023
Operating lease costs
$23,059 $21,210 $21,575 
Finance lease costs:
Amortization of assets
6,808 4,559 3,451 
Interest on lease liabilities
1,467 1,108 595 
Total finance lease costs
8,275 5,667 4,046 
Total operating and finance lease costs$31,334 $26,877 $25,621 
The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases (in thousands):
December 31,
Balance Sheet Location
20252024
Operating
Operating lease right of use assets, net
$74,709 $46,569 
Finance
Property and equipment, net
20,106 15,829 
Total lease assets
$94,815 $62,398 
Current operating
Short-term operating lease liabilities19,038 14,921 
Non-current operating
Long-term operating lease liabilities57,509 33,159 
Current finance
Other current liabilities
7,660 5,321 
Non-current finance
Other long-term liabilities
13,223 11,055 
Total lease liabilities$97,430 $64,456 

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

As of December 31, 2025 maturities of lease liabilities are as follows (in thousands):

Finance
Operating
2026$8,894 $24,481 
20277,246 20,671 
20284,839 15,565 
20292,014 12,112 
2030149 9,502 
Thereafter— 10,569 
Total future lease payments
23,142 92,900 
Less: imputed interest2,259 16,353 
Total lease liability balance
$20,883 $76,547 

The following table presents cash paid for leases, assets exchanged for operating and finance leases, and weighted average remaining lease terms, and discount rates:

December 31,
20252024
Cash paid for operating leases
$22,658 $20,886 
Cash paid for finance leases
$6,592 $4,216 
Assets obtained in exchange for operating lease obligations, initial recognition
$23,499 $4,551 
Assets obtained in exchange for finance lease obligations
$10,965 $8,441 
Weighted-average remaining lease term - operating leases
4.8 years
3.9 years
Weighted-average remaining lease term - finance leases
3.0 years3.2 years
Weighted average discount rate - operating leases
8.3%8.1%
Weighted-average discount rate - finance leases
7.5%8.5%

The Company incurred approximately $2.3 million, $1.9 million, and $1.8 million in lease expenses to entities controlled by the Company's Chief Executive Officer and family for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 10, 2025
2023Mar 11, 2024
2022Apr 17, 2023
2021Apr 5, 2022
2020Mar 18, 2021
2019Mar 13, 2020

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.