LEASES
The following table presents assets and liabilities for leases as of December 31, 2025 and 2024 (in thousands):
2025
2024
Assets
Operating lease right-of-use assets$30,152 $17,298 
Finance lease right-of-use assets5,713 6,173 
Total lease assets$35,865 $23,471 
Liabilities
Operating lease liabilities:
Current (included in accrued expenses and other current liabilities)$3,663 $2,677 
Non-current27,860 15,540 
Total operating lease liabilities31,523 18,217 
Finance lease liabilities:
Current (included in accrued expenses and other current liabilities)753 732 
Non-current5,694 6,013 
Total finance lease liabilities6,447 6,745 
Total lease liabilities$37,970 $24,962 
Lease cost for the years ended December 31, 2025 and 2024 are as follows (in thousands):
2025
2024
Operating lease cost (1)
$5,340 $3,463 
Finance lease cost:
Amortization of right-of-use assets1,031 1,080 
Interest on lease liabilities490 527 
Total lease cost$6,861 $5,070 
Reported in:
Cost of goods sold$6,183 $4,484 
Selling, general and administrative expense678 586 
Total lease cost$6,861 $5,070 
(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial.
As of December 31, 2025 the weighted-average remaining lease term of operating and finance leases were approximately 8.1 years and 5.4 years, respectively, and the weighted-average discount rates applied were 7.0% and 7.5%, respectively.

Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 are as follows (in thousands):
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$4,867 $3,278 
Operating cash flows for finance leases489 501 
Financing cash flows for finance leases875 740 
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$16,215 $3,479 
Finance leases685 884 
Net change in operating right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance$(56)$(34)
As of December 31, 2025, the estimated future minimum payment obligations for non-cancelable operating leases and finance leases are as follows (in thousands):
Years Ending December 31,
Operating LeasesFinance Leases
2026$5,745 $1,209 
20275,657 1,157 
20284,917 1,828 
20294,569 952 
20304,110 552 
Thereafter16,875 2,741 
Total lease payments41,873 8,439 
Less: imputed interest(10,350)(1,992)
Present value of lease liabilities$31,523 $6,447 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Mar 1, 2023

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.